The Rand Corporation

“Rand summarizes the information to be included on the form 990 and provides the support to a third-party tax firm so that a draft return can be compiled. This firm provides tax guidance throughout the year in addition to providing guidance on return preparation. Once the draft form 990 is compiled, it is reviewed by various levels of management within rand, including the cfo. The rand board of trustees has delegated to the audit and risk committee the responsibility for the oversight of the form 990. Therefore, once the form 990 is finalized, it is reviewed by the audit and risk committee (along with the consolidated audited financial statements) and approved for release. The form 990 is then submitted to the irs.”

“New staff members receive copies of several key policies, including institutional principles, conflict of interest, quality assurance, and other essential policies. Conflict of interest, corporate integrity, institutional principles, and ethics policies are posted prominently on rand's intranet. All employees are required to disclose outside professional activities, and all officers, key staff members and staff who work on research projects are required to disclose relationships and financial interests: (i) that are related to their research responsibilities, or (ii) that could bring into question the objectivity of the research. Such disclosures must be made at least annually, and staff also must review and acknowledge compliance with the conflict of interest policy and complete relevant training. Prospective trustees advise key management of any possible conflicts of interest before joining the board of trustees. Moreover, on an annual basis each trustee is asked by the vice president, general counsel, and corporate secretary to provide a list of affiliations in writing that may raise a conflict of interest issue and sign the principles of conduct statement which asserts that they would disqualify themselves from participating in any rand matters which they believe may give rise to a possible conflict of interest. Rand maintains a formal record of all instances where trustees recuse themselves because of a possible conflict of interest. Finally, all rand officers, trustees and key employees are asked to complete an annual related party questionnaire, sent by rand's cfo organization, to support rand's responses to certain questions on the form 990. This questionnaire, which is reviewed by various levels of management, seeks to identify family and business relationships amongst the trustees and officers and represents another opportunity other than the above for potential conflicts to be identified. Per the audit and risk committee charter, the ethics and compliance officer reports regularly to the audit and risk committee. The conflict of interest policy is reviewed by the audit and risk committee. When management proposes material changes. The policy was last updated and approved by the audit and risk committee in april 2024. It was last reviewed by the office of the general counsel in april 2024.”

“The compensation and leadership development committee conducts annual performance reviews for the president and chief executive officer. As part of the yearly evaluation, the committee reviews market data from several salary surveys and employs an independent compensation consultant to review for reasonableness. The committee recommends salary increases and discretionary amounts of the variable compensation program for the upcoming year to the board of trustees who makes the final decision for the president and chief executive officer's compensation. The compensation and leadership development committee conducts the review in the fall and documents the review in the committee minutes which are then approved at the next meeting. Raises are effective in february.”

“The president and chief executive officer reviews the compensation for officers and other research heads. He puts forth salary increase suggestions after examining performance, salary surveys, and benchmark studies. The salary increases for key employees within the research group are suggested by the global research talent vice president. Both sets of recommendations are given to the compensation and leadership development committee, which ultimately decides on the salary increases each year.”

“The annual report and audited financial statements are available on rand's external website: www.rand.org. Moreover, this information, as well as rand's governing documents and form 990, is available upon request and at the santa monica office. Further, this information has been submitted to several states and government agencies as part of various registration processes and is available on those organizations' websites.”

“The rand corporation is a public charity and as such receives a substantial part of its support from the government and the general public (see also schedule a). This support is not considered program service revenue as defined by the irs and thus not reported on part iii, line 4a. However, like all public charities, this support is used to fund rand's program services expenses which are reported on part iii, line 4a.”

“Change in fair value of derivative instruments - -2395272; other components of net periodic post retirement benefit costs - 1437687; adjustment to accrued postretirement benefit - -2748762; foreign exchange gain on revaluation - 665796; elimination - 1159462; misc to tie - 1229; loss on disposition of property and equipment - -6545000;”