Attach to Form 990 or 990-EZ.| Identifier | Return Reference | Explanation |
|---|---|---|
| Form 990, Part VI, Section A, line 5 | In 2010, AARP became aware of two diversions of assets that together may have amounted to a "material" diversion. First, an employee was discovered to have embezzled $30,000. The employee was terminated and has executed a restitution agreement agreeing to repay all amounts with interest. Second, AARP discovered that a vendor had been engaged in contractual irregularities including billing issues over a period of years. AARP conducted an investigation and retained outside legal counsel. The vendor acknowledged owing $208,000 to AARP. The overall scope of the contractual irregularities is difficult to establish with certainty. The dispute is being resolved consistent with the advice of outside counsel. | |
| Form 990, Part VI, Section B, line 11 | The Form 990 is prepared and reviewed in AARP's internal tax department. The return is then put through a secondary review which includes the AARP Controller and AARP General Counsel. After this thorough review process, the Form 990 is uploaded to the Board of Directors Sharepoint site and emails are sent to each member to let them know the return is ready for their review. The board then has seven days to review and provide comments or questions. After all issues are addressed the return is reviewed by the Chief Financial Officer prior to electronically filing with the Internal Revenue Service. | |
| Form 990, Part VI, Section B, line 12c | All board members and employees (including officers) are required to review the ethics policy, formally acknowledge their understanding of the policy annually, and disclose any real or potential conflicts of interest. Disclosures are reviewed by appropriate management (or in the case of a board member, the Board Chair, and if necessary, the Governance Committee), and the Chief Ethics & Compliance Officer. The appropriate resolution plan is implemented (for example, recusal from participating in any deliberations and decisions relevant to the disclosure). The Chief Ethics & Compliance Officer monitors compliance with these requirements and ensures proper follow-up as needed. | |
| Form 990, Part VI, Section B, line 15a | AARP considers relevant for-profit and not-for-profit data since this is the landscape in which AARP competes for talent. Establishing the appropriate compensation for positions and jobs considers external market pricing (where possible) from an independent, third party compensation consulting firm, internal criteria, and an individual's actual performance and contribution. Internal criteria is based on a standard approach that measures the internal value of positions, including: complexity and scope of responsibility, skill set and competencies, education and experience, and the reporting relationship of the position. An individual's actual performance and contribution is measured through AARP's performance management approach and then rewarded through AARP's annual base pay merit and incentive awards programs. For the CEO, information from all three areas (external data, internal data, individual performance and contribution) is submitted to the Board of Directors for review and approval. In some cases, the Board may deal directly with the independent, third party compensation consulting firm on external market pricing. The individual in this position may have legal representation and may insist on an employment contract with terms that are mutually agreed upon by the individual and the Board. | |
| Form 990, Part VI, Section C, line 19 | AARP makes its Form 990 available on our website at www.aarp.org or upon request to the General Counsel's Office. AARP's audited financial statements are also available on our website at www.aarp.org. AARP's governing documents and conflict of interest policy will be made available to the public in the event those documents are included in a filing with the Internal Revenue Service. | |
| Changes in Net Assets or Fund Balances: | Form 990, Part XI, line 5: | Net unrealized gains on investments: 62,774,886. |
| Amounts from Sale of Securities | Form 990, Part VIII, Line 7a and 7b, Column (i) | 7a. Gross amount from sales of asset other than inventory $1,383,896,977 7b. Less: cost or other basis and sales expenses $1,374,160,409 |
| Transactions with Related Organizations | Schedule R, Part V, Question 2 | The AARP Insurance Plan is a grantor trust established by an Agreement and Declaration of Trust for the purpose of making group health insurance and other health-related products and services available to AARP, Inc. members. Agreements between AARP, Inc., AARP Services, United HealthCare Corporation, Metropolitan Life Insurance Company, Genworth Life Insurance Company, and Aetna Life Insurance Company make certain types of insurance available to AARP members. At the direction of the third party insurance carriers, the Plan pays AARP, Inc. a portion of the total premiums collected for the use of its intellectual property, which is reported as royalties in the consolidated statements of activities. |
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