Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1f · All other contributions, gifts and grants

  $742,900

• 2a · Program service revenue: EDUCATIONAL ASSESSMENT

  total $209,385,389 · related or exempt $209,385,389

• 2b · Program service revenue: WORKFORCE DEVELOPMENT

  total $21,720,302 · related or exempt $21,468,700 · unrelated business $251,602

• 2c · Program service revenue: EDU ASSESSMENT-ENCOURA

  total $3,136,947 · related or exempt $3,136,947

• 3 · Investment income

  total $3,338,766 · excluded $3,338,766

• 6a · Gross rents

  real property $457,931

• 6b · Less rental expenses

  real property $120,417

• 6c · Rental income or loss

  real property $337,514

• 6d · Net rental income or loss

  total $337,514 · excluded $337,514

• 7a · Gross sales of assets other than inventory

  securities $62,279,239 · other assets $12,064,234

• 7b · Less cost or other basis and sales expenses

  securities $63,924,464 · other assets $8,347,293

• 7c · Gain or loss

  securities -$1,645,225 · other assets $3,716,941

• 7d · Net gain or loss

  total $2,071,716 · excluded $2,071,716

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $532,083 · program services $532,083

• 2 · Grants to domestic individuals

  total $3,963 · program services $3,963

• 5 · Compensation of officers, directors and key employees

  total $3,693,658 · program services $1,532,652 · management and general $2,161,006

• 7 · Other salaries and wages

  total $84,313,801 · program services $74,004,023 · management and general $10,309,778

• 8 · Pension plan contributions

  total $4,370,615 · program services $3,786,105 · management and general $584,510

• 9 · Other employee benefits

  total $11,272,766 · program services $9,566,485 · management and general $1,706,281

• 10 · Payroll taxes

  total $6,208,413 · program services $5,378,122 · management and general $830,291

• 11b · Fees: legal

  total $1,490,019 · program services $3,266 · management and general $1,486,753

• 11c · Fees: accounting

  total $337,420 · program services $295 · management and general $337,125

• 11d · Fees: lobbying

  total $114,910 · program services $114,910

• 11f · Fees: investment management

  total $199,407 · management and general $199,407

• 11g · Fees: other

  total $43,717,328 · program services $42,645,883 · management and general $1,071,445

• 12 · Advertising and promotion

  total $2,747,363 · program services $2,712,035 · management and general $35,328

• 13 · Office expenses

  total $17,698,800 · program services $17,031,945 · management and general $666,855

• 14 · Information technology

  total $10,396,066 · program services $9,282,086 · management and general $1,113,980

• 15 · Royalties

  total $73,738 · program services $73,738

• 16 · Occupancy

  total $1,708,347 · program services $1,537,512 · management and general $170,835

• 17 · Travel

  total $1,924,715 · program services $1,676,418 · management and general $248,297

• 19 · Conferences, conventions and meetings

  total $1,070,812 · program services $947,282 · management and general $123,530

• 20 · Interest

  total $365,058 · program services $365,058

• 22 · Depreciation, depletion and amortization

  total $6,561,777 · program services $6,282,241 · management and general $279,536

• 23 · Insurance

  total $1,912,223 · management and general $1,912,223

• 24a · Other expenses: TEST ADMINISTRATION

  total $18,877,787 · program services $18,877,625 · management and general $162

• 24b · Other expenses: MEMBERSHIP FEES

  total $373,452 · program services $292,223 · management and general $81,229

• 24c · Other expenses: LITIGATION SETTLEMENT

  total $45,000 · management and general $45,000

• 24d · Other expenses: STATE TAXES

  total $300 · management and general $300

• 24e · All other expenses

  total $14,615 · program services $14,565 · management and general $50

Balance sheet

Part X, book values.

• 2 · Savings and temporary cash investments

  beginning of year $35,531,564 · end of year $70,259,864

• 4 · Accounts receivable

  beginning of year $25,898,463 · end of year $18,741,359

• 7 · Other notes and loans receivable

  beginning of year $5,221,126 · end of year $1,177,948

• 8 · Inventories for sale or use

  beginning of year $5,204,360 · end of year $4,106,247

• 9 · Prepaid expenses and deferred charges

  beginning of year $2,736,868 · end of year $3,572,259

• 10a · Land, buildings and equipment: cost or other basis

  $64,721,809

• 10b · Land, buildings and equipment: accumulated depreciation

  $30,638,313

• 10c · Land, buildings and equipment, net

  beginning of year $43,711,246 · end of year $34,083,496

• 11 · Investments: publicly traded securities

  beginning of year $74,164,129 · end of year $80,720,097

• 12 · Investments: other securities

  beginning of year $104,416,735 · end of year $97,060,951

• 13 · Investments: program-related

  beginning of year -$26,156,355 · end of year -$28,198,109

• 14 · Intangible assets

  beginning of year $11,801,314 · end of year $9,095,507

• 15 · Other assets

  beginning of year $10,346,418 · end of year $7,505,432

• 17 · Accounts payable and accrued expenses

  beginning of year $36,389,928 · end of year $20,351,657

• 19 · Deferred revenue

  beginning of year $17,608,502 · end of year $18,507,283

• 20 · Tax-exempt bond liabilities

  beginning of year $11,840,000 · end of year $10,070,000

• 23 · Secured mortgages and notes payable

  end of year $53,970

• 25 · Other liabilities

  beginning of year $2,136,191 · end of year $2,200,998

• 27 · Net assets without donor restrictions

  beginning of year $224,751,954 · end of year $246,576,733

• 28 · Net assets with donor restrictions

  beginning of year $149,293 · end of year $364,410

The filer's explanations (Part III)

PART I, LINE 1A

ACT'S TRAVEL POLICY GENERALLY PROHIBITS FIRST CLASS TRAVEL AT ACT'S EXPENSE. THE POLICY DOES ALLOW LIMITED EXCEPTIONS FOR FIRST CLASS TRAVEL AT ACT'S EXPENSE UNDER CIRCUMSTANCES REQUIRING EXTENDED UNINTERRUPTED FLIGHTS. IN ADDITION, TEAM MEMBERS ARE ELIGIBLE TO FLY FIRST CLASS IF THERE IS NO ADDITIONAL EXPENSE TO ACT (I.E., USE OF TRAVEL POINTS). ONE KEY EMPLOYEE WAS PROVIDED WITH FIRST CLASS TRAVEL. NO AMOUNT WAS TREATED AS TAXABLE COMPENSATION TO THE LISTED PERSONS.

PART I, LINES 4A-B

ACT MAINTAINS A NON-QUALIFIED DEFERRED COMPENSATION PLAN UNDER SECTION 457(F) OF THE INTERNAL REVENUE CODE FOR CERTAIN LISTED PERSONS. THE PLAN DOES NOT ALLOW ELIGIBLE EMPLOYEES TO MAKE ELECTIVE CONTRIBUTIONS BUT DOES PROVIDE FOR ACT TO MAKE DISCRETIONARY CONTRIBUTIONS TO ELIGIBLE EMPLOYEES. ACT MADE NO SUCH CONTRIBUTIONS DURING THE YEAR. ACT MAINTAINS SEVERANCE/TERMINATION AGREEMENTS WITH CERTAIN LISTED PERSONS. SEVERANCE AGREEMENTS GENERALLY PROVIDE FOR EITHER A LUMP SUM PAYMENT OR A SERIES OF PAYMENTS OVER TIME UPON THE TERMINATION OF THE LISTED PERSON. THE SPECIFIC TERMS AND CONDITIONS OF EACH SEVERANCE AGREEMENT ARE DETERMINED ON AN INDIVIDUAL BASIS. DURING THE YEAR THERE WERE SEVERANCE PAYMENTS MADE PURSUANT TO A CONFIDENTIAL AGREEMENT. ALL AMOUNTS PAID HAVE BEEN PROPERLY REPORTED ON FORM W-2 AND REPORTED IN FORM 990, PART VII, COLUMN D, AND ALSO IN SCHEDULE J, PART II, COLUMN B(III). THE AGREEMENT IS AVAILABLE TO THE INTERNAL REVENUE SERVICE UPON REQUEST. OTHER LISTED PERSONS MAY BE ELIGIBLE FOR SIMILAR SEVERANCE ARRANGEMENTS.

PART I, LINE 6

ACT MAINTAINS AN ANNUAL INCENTIVE PLAN WHICH PAYS OUT BONUSES YEARLY TO CERTAIN LISTED PERSONS. THE PLAN IS REEVALUATED AND UPDATED EVERY FISCAL YEAR. THE PAYOUT OF THE PLAN IS PARTLY BASED UPON THE FINAL FISCAL YEAR OPERATING INCOME RESULTS OF THE ORGANIZATION AND IS TYPICALLY PAID OUT FOLLOWING THE END OF THE FISCAL YEAR. ALL AMOUNTS PAID HAVE BEEN PROPERLY REPORTED ON FORM W-2 AND REPORTED IN FORM 990, PART VII, COLUMN D, AND ALSO IN SCHEDULE J, PART II, COLUMN B(II).

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• ENCOURA LLC (FKA NRCCUA LLC) (DIRECT)

  RELATED · TESTING SERVICES · DE · 100% owned · share of income $3,136,947 · share of assets $171,342,577

  Directly controlled by ACT INC

• ENCOURA LLC (FKA NRCCUA LLC) (INDIRECT)

  RELATED · TESTING SERVICES · DE · 22.59% owned · share of assets $2,983,098

  Directly controlled by STERLING NRCCUA HOLDINGS INC

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• MY COLLEGE OPTIONS INC

  C · TESTING SERVICES · DE · 100% owned · share of assets $92,547 · controlled entity

  Directly controlled by ENCOURA LLC

• ACT ASSESSMENT TECHNOLOGIES INC (FKA ACT BRIDGE INC)

  C · TESTING SERVICES · DE · 100% owned · share of income $1,293,922 · share of assets $121,173,356 · controlled entity

  Directly controlled by ACT INC

• STERLING NRCCUA HOLDINGS INC

  C · TESTING SERVICES · DE · 100% owned · share of assets $2,983,098 · controlled entity

  Directly controlled by ACT ASSESSMENT TECHNOLOGIES INC

• ACT INTERNATIONAL BV

  C · HOLDING COMPANY · NL · 100% owned · share of income $4,342,083 · share of assets $12,577,605 · controlled entity

  Directly controlled by ACT INC

• ACT BUSINESS SOLUTIONS BV

  C · TESTING SERVICES · NL · 100% owned · share of assets $110,126 · controlled entity

  Directly controlled by ACT INTERNATIONAL BV

• ACT INFORMATION CONSULTING (SHANGHAI) CO LTD

  C · TESTING SERVICES · CH · 100% owned · share of income $6,204,621 · share of assets $2,528,984 · controlled entity

  Directly controlled by ACT EDUCATION SOLUTIONS LTD (HONG KONG)

• ACT EDUCATION SOLUTIONS LTD (HONG KONG)

  C · TESTING SERVICES · HK · 100% owned · share of income $2,690,977 · share of assets $8,712,634 · controlled entity

  Directly controlled by ACT INTERNATIONAL BV

• ACT EDUCATION SOLUTIONS (AUSTRALIA) PTY LTD

  C · TESTING SERVICES · AS · 100% owned · share of assets $33,835 · controlled entity

  Directly controlled by ACT EDUCATION SOLUTIONS LTD (HONG KONG)