Department of the Treasury Internal Revenue Service
Public Charity Status and Public Support
Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
Attach to Form 990 or Form 990-EZ. See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
ACADEMY FOR EDUCATIONAL DEVELOPMENT
Employer identification number
13-6110212
Part I
Reason for Public Charity Status
(All organizations must complete this part.) See instructions
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f
If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box
..................................................
g
Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization?
................
11g(i)
(ii)
a family member of a person described in (i) above?
......................
11g(ii)
(iii)
a 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
h
Provide the following information about the supported organization(s).
(i) Name of supported organization
(ii) EIN
(iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions))
(iv) Is the organization in col. (i) listed in your governing document?
(v) Did you notify the organization in col. (i) of your support?
(vi) Is the organization in col. (i) organized in the U.S.?
(vii) Amount of support?
Yes
No
Yes
No
Yes
No
Total
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the
organization failed to qualify under Part III. If the organization fails to
qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
334,975,694
402,461,036
414,841,530
435,246,697
459,704,775
2,047,229,732
2
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3
The value of services or facilities furnished by a governmental unit to the organization without charge..
4
Total. Add lines 1 through 3..
334,975,694
402,461,036
414,841,530
435,246,697
459,704,775
2,047,229,732
5
The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included
on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6
Public Support. Subtract line 5 from line 4.
2,047,229,732
Section B. Total Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
7
Amounts from line 4..
334,975,694
402,461,036
414,841,530
435,246,697
459,704,775
2,047,229,732
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
1,513,294
3,236,082
1,995,767
1,305,802
1,635,441
9,686,386
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
10
Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
113
327,122
719,471
46,488
1,093,194
11
Total support (Add lines 7 through 10).
2,058,009,312
12
Gross receipts from related activities, etc. (See instructions.)
..................
12
127,621,266
13
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here..........................................
Section C. Computation of Public Support Percentage
14
Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f))
.........
14
99.476 %
15
Public Support Percentage for 2009 Schedule A, Part II, line 14
...............
15
99.471 %
16a
33 1/3% support test—2010.
If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization
......................
b
33 1/3% support test—2009.
If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization
.....................
17a
10%-facts-and-circumstances test—2010.
If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization
..................................................
b
10%-facts-and-circumstances test—2009.
If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported organization
..............................................
18
Private Foundation
If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions
...................................................
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization
failed to qualify under Part II. If the organization fails to qualify under
the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2
Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3
Gross receipts from activities that are not an unrelated trade or business under section 513..
4
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5
The value of services or facilities furnished by a governmental unit to the organization without charge..
6
Total. Add lines 1 through 5.
7a
Amounts included on lines 1, 2, and 3 received from disqualified persons...
b
Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c
Add lines 7a and 7b..
8
Public Support (Subtract line 7c from line 6.)
Section B. Total Support
Calendar year (or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
9
Amounts from line 6...
10a
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b
Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c
Add lines 10a and 10b.
11
Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13
Total support (Add lines 9, 10c, 11 and 12.).
14
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.............................................
Section C. Computation of Public Support Percentage
15
Public Support Percentage for 2010 (line 8 column (f) divided by line 13 column (f))
.........
15
16
Public support percentage from 2009 Schedule A, Part III, line 15
...............
16
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2010 (line 10c column (f) divided by line 13 column (f))
......
17
18
Investment income percentage from 2009 Schedule A, Part III, line 17
.............
18
19a
33 1/3% support tests—2010.
If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
..........
b
33 1/3% support tests—2009.
If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
....
20
Private Foundation
If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions
.....
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 4
Part IV
Supplemental Information.
Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
Explanation
Schedule A (Form 990 or 990-EZ) 2010
Additional Data
Software ID:
Software Version:
-
TIN:
SCHEDULE O (Form 990 or 990-EZ)
Department of the Treasury Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
ACADEMY FOR EDUCATIONAL DEVELOPMENT
Employer identification number
13-6110212
Identifier
Return Reference
Explanation
STATEMENT OF PROGRAM SERVICES
FORM 990, PART III, LINE 4D
THE AED U.S. EDUCATION AND WORKFORCE DEVELOPMENT GROUP WORKS IN SEVEN CORE CONTENT AND SERVICE AREAS: EARLY CHILDHOOD; DISABILITIES; MIDDLE GRADES; HIGH SCHOOL AND YOUTH ENGAGEMENT; COLLEGE ACCESS AND POSTSECONDARY SUCCESS; WORKFORCE DEVELOPMENT; AND RESEARCH AND EVALUATION.
LIST OF FOREIGN COUNTRIES WITH FINANCIAL TRANSACTIONS
FORM 990, PART V, LINE 4B
Barbados, Dominican Rep, El Salvador, Guatemala, Haiti, Honduras, Nicaragua, Indonesia, Laos, Philippines, Thailand, Vietnam, Albania, Kosovo, Macedonia, Montenegro, Djibouti, Eqypt, Jordan, Morocco, West Bank, Yemen, Armenia, Georgia, Moldova, Peru, Afghanistan, Bangladesh, India, Nepal, Pakistan, Angola, Botswana, Chad, Congo, Equator Guinea, Ethiopia, Ghana, Guinea, Kenya, Liberia, Madagascar, Malawi, Mali, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, South Africa, Sudan, Tanzaniz, Uganda, Zambia
FORM 990 REVIEW
FORM 990, PART VI, SECTION A, LINE 11A
AFTER AED'S FORM 990 WAS REVIEWED BY KPMG AND THE AED CFO, A SIGNED COPY OF THE RETURN WILL BE DISTRIBUTED TO THE FULL BOARD. THE RETURN WILL THEN BE FILED WITH THE IRS AND STATE AUTHORITIES.
MONITORING AND ENFORCING COMPLIANCE WITH POLICIES
FORM 990, PART VI, SECTION B, LINE 12C
CONSISTENT WITH ITS MISSION TO INCREASE ACCESS TO LEARNING, TRANSFER SKILLS AND TECHNOLOGY, AND SUPPORT INSTITUTIONAL DEVELOPMENT, AED HAS ESTABLISHED A CODE OF ETHICS POLICY FOR THE AED STAFF AND A CONFLICT OF INTEREST POLICY FOR THE BOARD OF DIRECTORS WHICH DEMAND THE HIGHEST PROFESSIONAL ABILITY, PERSONAL INTEGRITY, AND CULTURAL SENSITIVITY FOR AED'S STAFF AND BOARD OF DIRECTORS. THESE TWO POLICES ARE DESIGNED TO SERVE AS A SET OF ETHICAL AND LEGAL PRINCIPLES TO PROVIDE GUIDANCE REGARDING DECISIONS AND JUDGMENTS THAT AED'S STAFF AND BOARD OF DIRECTORS ARE BEING ASKED TO MAKE. IT REPRESENTS THE PRINCIPLES UPON WHICH AED WAS ESTABLISHED AND THAT CONTINUE TO GOVERN ITS OPERATIONS. WHEN AN OFFICER IS HIRED, THEY ARE GIVEN THE CODE OF ETHICS POLICY WHICH THEY ARE REQUIRED TO SIGN ACKNOWLEDGING THAT THEY HAVE READ THE POLICY, UNDERSTAND ITS CONTENTS AND WILL BEHAVE ACCORDING TO THE CODE. EACH YEAR AED OFFICERS ARE REQUIRED TO RECERTIFY THAT THEY HAVE READ THE CODE OF ETHICS, UNDERSTAND IT, HAVE DISCUSSED IT WITH THEIR STAFF MEMBERS, AND WILL BEHAVE ACCORDING TO THE CODE. A COPY OF THEIR CERTIFICATION IS MADE PART OF THE OFFICER'S PERSONNEL FILE AT AED' HR DEPARTMENT. WHEN A NEW BOARD MEMBER IS APPOINTED TO THE BOARD OF DIRECTORS, THE BOARD MEMBER IS ASKED TO SIGN A CONFLICT OF INTEREST STATEMENT. EACH YEAR, THE PRESIDENT AND CHIEF EXECUTIVE OFFICER REQUEST THAT THE MEMBERS OF THE BOARD REVIEW THE CONFLICT OF INTEREST POLICY AND RECERTIFY THAT THERE HAS BEEN NO CHANGE IN THEIR POSITION.
PROCESS FOR DETERMINING COMPENSATION
FORM 990, PART VI, SECTION B, LINES 15A AND 15B
EVERY YEAR THE PERFORMANCE OF THE OFFICERS IS REVIEWED BY THEIR SUPERVISOR AND SALARY RECOMMENDATIONS AND INCENTIVE PAYMENT FOR THEIR ANNUAL BASE SALARY IS MADE TO THE PRESIDENT'S OFFICE. ALL THE RECOMMENDATIONS PRESENTED ARE ANALYZED FOR PARITY AND EQUITY BETWEEN MEN AND WOMEN, AND BETWEEN MINORITY AND NON-MINORITY EMPLOYEES. THE RECOMMENDATIONS AND ALL BENEFIT COMPENSATION AMOUNTS ARE THEN SUBMITTED TO AN OUTSIDE ORGANIZATION, CBIZ HUMAN CAPITAL SERVICES, WHICH PROVIDE ASSISTANCE WITH EXECUTIVE COMPENSATION INTERMEDIATE SANCTIONS REGULATIONS COMPLIANCE. THEY ASSIST AED IN MEETING THE REQUIREMENTS OF SECTION 4958 OF THE INTERNAL REVENUE CODE AND THE REGULATIONS ON INTERMEDIATE SANCTIONS BY EXAMINING THE TOTAL COMPENSATION PACKAGE OF EACH OFFICER AND ISSUING A REASONABLE COMPENSATION OPINION. CBIZ ANNUALLY CONDUCTS A SURVEY ANALYSIS TO COLLECT COMPETITIVE DATA FOR SIMILAR POSITIONS IN COMPARABLE ORGANIZATIONS PAYING EMPLOYEES TO PERFORM SIMILAR FUNCTIONS. CBIZ THEN RECONCILES THE RESULTS OF THE MARKET SURVEY AND A PEER ANALYSIS TO DETERMINE FAIR MARKET VALUE RANGES FOR TOTAL COMPENSATION OF EACH OFFICER. THEIR FINDINGS ARE THEN PRESENTED IN WRITING TO THE COMPENSATION COMMITTEE OF AED'S BOARD OF DIRECTORS BEFORE THE NOVEMBER MEETING. MINUTES ARE KEPT OF THE DISCUSSIONS HELD BY THE COMMITTEE MEMBERS. THE MEMBERS THEN PRESENT THEIR RECOMMENDATIONS TO THE FULL BOARD OF DIRECTORS FOR RATIFICATION AND FINAL APPROVAL. ONCE THE SALARIES ARE RATIFIED, THEY BECOME EFFECTIVE ON JANUARY 1ST OF THE FOLLOWING YEAR.
AVAILABILITY OF GOVERNING DOCUMENTS TO THE PUBLIC
FORM 990, PART VI, SECTION C, LINES 18 AND 19
A CONDENSED VERSION OF AED'S FINANCIAL STATEMENTS IS AVAILABLE ON THE AED.ORG WEBSITE. UPON REQUEST, AED WILL SEND A COMPLETE SET OF FINANCIAL STATEMENTS, FORM 990 AND THE AED CONFLICT OF INTEREST POLICY TO THE REQUESTOR. AED'S FORM 990 IS ALSO AVAILABLE ON THE GUIDESTAR.ORG WEBSITE. AED'S A-133 REPORT IS AVAILABLE ON THE HARVESTER.CENSUS.GOV WEBSITE.
IDENTIFICATION OF RELATED TAX-EXEMPT ORGANIZATIONS PRIMARY ACTIVITY
SCHEDULE R, PART II
AED SOCIAL AND EDUCATIONAL DEVELOPMENT FUND: SUPPORT ACTIVITIES AND PROGRAMS IN THE AREAS OF EDUCATION, HEALTH, THE ENVIRONMENT, AND OTHER AREAS OF HUMAN DEVELOPMENT TO MEET THE NEEDS OF DISADVANTAGE POPULATIONS THROUGHOUT THE UNITED STATES AND THE WORLD. AED-GHANA: CEDEM: IMPROVING THE QUALITY OF TEACHING AND THE EFFECTIVENESS OF LEARNING IN GHANA'S PRIMARY SCHOOLS. ADE-BRAZIL: IMPROVING PEOPLE'S STANDARDS OF LIVING BY ADDRESSING CRITICAL SOCIAL, EDUCATIONAL, AND HUMAN DEVELOPMENT NEEDS IN BRAZIL AND DEVELOPING COUNTRIES.
MEMBERS OF THE CORPORATION
FORM 990, PART VI, LINES 6 AND 7
PURSUANT TO ARTICLES OF INCORPORATION, THE MEMBERS OF THE CORPORATION ANNUALLY MEET, PURSUANT TO NOTICE, FOR THE ELECTION OF THE BOARD OF DIRECTORS.
IDENTIFICATION OF RELATED TAX-EXEMPT ORGANIZATIONS PRIMARY ACTIVITY
SCHEDULE R, PART I
THE MISSION OF APPLIED RESEARCH AND TECHNICAL SERVICES IS SUPPORT ACTIVITIES AND PROGRAMS IN THE AREAS OF EDUCATION; HEAKTH, POPULATION AND NUTRITION; ENVIROMENT AND AGRICULTURE; CIVIL SOCIETY AND OTHER AREAS OF HUMAN DEVELOPMENT TO MEET THE NEEDS OF DISADVANTAGED POPULATIONS AND THROUGHOUT THE UNITED STATES AND THE AROUND THE WORLD.
Audited Financial Statements and A-133 Audit
Return Reference - Form 990 Part IV, Lines 12 & 12a, Part XII, Lines 2b-3b, and Schedule D, Part X, Line 2 The Academy for Educational Development is currently undergoing a financial statement audit for the year ended December 31, 2010. At the time of return preparation, the final audited statements were not complete. As such, this return was prepared using unaudited financial information. Once the 2010 financial statement audit has been completed, the organization will undergo an A-133 audit. The organization will file an amended Form 990 once these audits are complete.
Settlement with US Department of Justice and Sale of Substantially All of
the assets, programs and liabilities of AED
On December 8, 2010, the United States Agency for International Development (USAID) suspended AED from receiving new Federal contracts, grants and cooperative agreements. The United States Government contends that AED failed to properly control certain of its employees, sub-contractors and programs, causing the United States Government to be overcharged for certain billings for project work in Pakistan and Afghanistan. Following December 8, 2011, USAID refused to lift AED's suspension. On March 3, 2011, AED's Board of Directors announced that the organization would pursue a process to transfer its programs and assets to another organization, with a preference for a single acquirer. The Board directed management to identify a single organization that believed in AED's mission, held similar values to AED, had the financial capacity to acquire all, or substantially all, of AED's assets as to ensure program integrity and continuity, and had the resources to accomplish a transaction by June 1, 2011. It was further determined that in light of the absence of similar transactions, the most advisable way to ensure the transaction occurred at a fair price was through a private auction process. After entertaining offers from a number of bidders, and an extensive review and exploration process, AED's Board of Directors, through a special committee, and based on the recommendations of senior management, agreed that the offer from FHI was the strongest on which to move forward. On June 6, 2011, AED and FHI Development 360 LLC (a wholly owned subsidiary of FHI) entered into an Asset Purchase Agreement, and the planned transaction was announced on June 8, 2011, by Albert J. Siemens, PhD, FHI Chair and Chief Executive Officer, and Gregory R. Niblett, AED President and Chief Executive Officer. AED and FHI closed the transaction on June 30, 2011. To avoid the delay, uncertainty, and expense of protracted litigation of the United States Government's claims, AED entered into a settlement agreement with the United States Department of Justice. The Terms and Conditions of that agreement: 1) On June 30, 2011 AED paid the US Government a substantial sum of money. 2) AED will pay additional amounts to the United States Government over the next several years after it has paid or made appropriate provision for the orderly liquidation of its remaining liabilities and obligations. 3) On June 30, 2011, AED ceased all program operations including billing and accepting donations. Under the Transition Services Agreement, AED will continue to operate programs overseas in name only where FHI owns the assets and oversees all staff and program activities until such time that the programs are able to operate under FHI's in-country registration. FHI currently is in the process of completing local registrations throughout the world. 4) AED has various restrictions and reporting requirements over the next several years. Violation of any of those requirements could void the settlement agreement and reinstate the Government's claims. AED does not admit, concede, or agree with either the general or specific contentions of the United States or the legal theories upon which the United States has sought to base many of its claims.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.