Foundation for Advanced Education in the Sciences Inc.

“Faes has an executive committee (ec), audit committee (ac), and investment committee (ic). The executive committee is composed of the five officers of the governing board, and makes decisions needing board guidance/input, but not a full board vote, such as the review and approval of the chief executive officer's salary. The audit committee is composed of the treasurer and a mix of board directors and outside (non-board, non-employee) members with relevant experience/expertise. In fy2021, the ac had 5 voting members including the treasurer, 1 director and 3 outside members and 3 non-voting members including the president, ceo, and controller. The ac oversees the audit process, including selection of an audit firm. The ac reviews the audited financial statements, auditor communication letters, and the form 990. The investment committee had 5 voting members including the treasurer, 3 board directors, and 1 outside member with relevant experience/expertise and 3 non-voting members including the president, ceo and controller. The ic oversees investment assets, including selection of an investment firm, determination of investment policy/strategy, and execution of investment decisions.”

“Two board members, susan leitman and dennis klinman, have a family relationship.”

“Membership in faes consists of board directors, ex-officio members and all members of faes advisory committees. Only board directors have voting authority, outside of election voting.”

“All members have voting privileges to elect the board of directors and officers.”

“Faes hires an independent accounting firm to prepare the federal form 990. The draft federal form 990 is reviewed by the executive director, the controller, and audit committee. Copies of the federal form 990 are also provided to the board of directors before filing with the internal revenue service.”

“Every director, principal officer and member of a committee with board delegated powers are provided an on-boarding packet which contains the faes conflict of interest policy. The policy requires disclosure of any conflicts. Board and committee members are periodically reminded to disclose new and existing conflicts. If the board or committee members determine that a conflict of interest exists, they recuse themselves from that conversation.”

“On an annual basis, the executive committee reviews and approves compensation for officers and key employees based on performance reviews and comparable data which includes compensation surveys, studies, and the form 990 of other organizations. The president's compensation for substantially participating in the management of the organization and its programs is approved by the executive committee and permitted in the faes by-laws. Any officer or employee on the executive committee is recused from the discussions and decisions regarding their own compensation. The executive committee ensures contemporaneous substantiation of the deliberation and decisions.”

“The audited financial statements, conflict of interest policy, and other governing documents are available upon request.”

“On march 11, 2020, the world health organization declared covid-19 to be a global pandemic. In response to local and state government mandated business closures, faes temporarily closed its offices, the sac, and all retail locations to the public on march 16, 2020. Faes continued operations through remote access and telework. Faes reopened its offices in a limited capacity in january 2021. Demand for online courses and workshops has increased as a result of the covid-19 pandemic. A significant portion of faes academic programs was converted to on-line formats before or during the onset of the covid-19 pandemic. As a result, many courses and workshops have continued with minimal interruption. The faes bookshop and gift store were reopened in a limited capacity during the fiscal year ended may 31, 2021. Faes is unable to estimate the date upon which the third retail store will be open or when all retail stores will again operate at full capacity. The faes support for nih program routinely provides the nih community with support for meetings, events, and music performances. Due to nih prohibitions on gatherings, faes expects a reduction in supporting expenses until the prohibition is eased or removed. Faes owns 4 houses near the nih bethesda, md campus at which faes provides low-cost housing to nih fellows. In the fiscal year ended may 31, 2021, faes began a project to demolish the 4 existing houses and build 6 new houses on faes owned lots. The 6 new houses will be used to provide low-cost housing options to nih fellows and are expected to be completed in summer of 2022. In addition, faes has expanded the housing program by renting several houses and apartments near the nih bethesda, md campus to provide low-cost housing to a greater number of nih fellows.”

“Bad debt expense -15,139.”

“The process has not changed from prior year.”