chGA

form 990

vDepartment 01 the Treasuryintemai Revenue Seerce

A\

have to use a co

Return of Organization Exempt From Income TaxUnder section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung

benefit trust or private foundation)of this return to satlsi state re ortln requnements

OMB No. 1545-0047

2003: rOpen to Public. 3

"' I inspection. %

A For the 2003 calendar yearLor tax year beginning 7 / 0 1/ 0 3 , and ending 6 /3 0/ 0 48 Check if applicable C Name of organization D Employer ID number

Addresschange National Governors Association 23 -7391796Name change Center for Best Practices E Telephone number

Initial return Number and street (or P 0 box if mail is not delivered to street address) Room/suite 2 0 2 - 6 2 4 - 5 3 0 0

Final return 4 4 4 N . Capi tol S treat 2 6 7 F Accounting method: D CashAmended return City or town, state or country, and ZIP + 4 E Accrual D Other (specfly)

Application pending (lam Washington DC 2 0 0 0 1 - 1 5 12 I}.Section 501(c)(3) organizations and 4947(a)(1) nonexempt charitable H and I are not applicable to section 527 organizations

trusts must attach a completed Schedule A (Form 990 or 990-EZ). H(a) Is this a group return for affiliates? D Yes IE] No

G Website: > W . nga . org H(b) If 'Yes,‘ enter number 01 affiliates }

J Organization type H(c) Are all affiliates included? E] Yes D No

(check only one) > [El 501 (c) ( 3 ) 2 (insert no.) [_| 4947(a)(1) or [—1 527 (Ii 'No,‘ an a list See instr)K Check here I E] if the organization's gross receipts are normally not more than $25,000 H(d) Is this a separate return filed by an

The organization need not file a return With the IRS; but lithe organization received a organization covered bLagroup ruling'7 fl Yes H No

Form 990 Package in the mail, it should file a return Without finanCIaI data. Some states I Group Exemption Number D

require a complete return. M Check F El if the organization is not reqwred

L Gross receiptS' Add lines 6b, 8b, 9b, and 10b to line 12 I 1 5 , 8 2 5 , 7 9 3 to attach Sch. B (Form 990, 990-EZ, or 990-PF).1. Part I* ’1 Revenue, Expenses, and Changes in Net Assets or Fund Balances (See page 18 of the instructions.)

1 Contributions, gifts, grants, and Similar amounts received' f' R:a Direct public support 1a 7 , 08 6 , 0 8 9 v

b Indirect public support 1b 157 f

g c Government contributions (grants) . 1c 5 , 2 9 8 , 37 0 3 "

N d Total (add lines 1athrough 10) (cash $ 12,384 , 459 noncash $ ) 1d 12 , 384, 459

N 2 Program seerce revenue including government fees and contracts (from Part VII, line 93) 2 64 2 , 7 07

1“" 3 Membership dues and assessments 3

z 4 Interest on savmgs and tempOrary cash investments 4 9 0 , 4 9 0

-CNGAform 990 (2003) National Governors Association 23-7391796 Page 2

E Statement Of All organizations must complete column (A) Columns (B), (C), and (D) are reqUIred tor section 501(c)(3) and (4) organizations

a I .1 Functional Expenses and section 4947(a (1) nonexempt chantabie trusts but optional for others (See age 22 of the instructions)

Do not include amounts reported on line ' (B) Program (C) Management

6b, 8b, 9b, 10b, or 16 of Part i. ~ « “" Tm" services and genera. ‘D’ “""m'smg

22 Grants and allocations (attach schedule) ,3 _. W . j I ,1 A l V ‘ I

(cash 5 '6th $ ) 22 r

23 SpeCitic a33istance to inleiduals 23 ;

24 Benefits paid to or for members 24 , 4",. “ ""2 “’ j " ‘”. ‘ ‘ i 'i a

25 Compensatlon of officers, dlrectors, etc 25 3 7 4 , 7 4 7 3 7 4 , 7 4 7

26 Othersalariesandwages 26 3,689,484 2,800,657 730,588 158,239

27 Pen5lon plancontributions 27 364, 624 250, 643 99,686 14,295

28 Otheremployeebenetits 28 422,963 290,745 115,636 16,582

29 Payrolltaxes 29 292,780 201,258 80,044 11,478

30 Professional fundraismg tees 3031 Accountlngtees 31 50,576 23,915 26,661

32 Legaitees 32 55,844 55,844

33 Supplles 33 46,475 33,693 11,111 1,671

34 Telephone . 34 52,637 40,282 10,866 1,489

35 Postageandshipping 35 36, 171 31,440 3,929 802

36 Occupancy 36 617,087 419,089 174,269 23,729

37 Equrpment rental and malntenance 37 113 , 9 6 1 58 , 82 6 51 , 14 1 3 , 9 94

33 Printing and publications 38 98 , 14 7 87 , 2 2 6 7 , 442 3 , 47 9

39 Travel 39 1,292,652 1,249,348 32,543 10,761

40 Conferences, conventions, and meetlngs _ 40 7 57 , 9 9 3 7 0 1 , 7 9 2 1 5 , 07 0 4 1 , 13 1

41 interest 4‘42 Depreciation, depletion, etc (attach scheduS tatement 3A 8 6 , 9 3 5 5 8 , 9 2 4 2 4 , 6 7 8 3 , 3 3 3

43 Other expenses not covered above (itemize): a 43ab See Statement-14. H 43b 3,165,997 3,034,110 84,955 46,932

c 43cd . . nue . 436

44 Total functional expenses (add lines 22 - 43) Organizationscompletingcolumne(B)-(D),carrythesetoteletolines13-15 44 11, 519, 073 9, 281, 948 1, 899, 210 337, 915

Joint Costs. Check F D It you are foilowmg SOP 98-2.Are any lomt costs from a combined educational campalgn and tundraismg sollcnation reported in (B) Program services?

, (ii) the amount allocated to Program sewices $bDYeeENo

ll 'Yes,‘ enter (i) the aggregate amount 01 these pint costs $(ill) the amount allocated to Management and general $ . and (iv) the amount allocated to Fundraismg $

I Part III 1 Statement of Program Service Accomplishments (See page 25 of the instructions.)

What is the organizatlon's prlmary exempt purpose'7I See Statement 5All organiiatlons must descrlbe their exeth purpose achievements in a clear and con0ise manner State the numberot clients served, publications issued, etc iscuss achievements that are not measurable. (Sectlon 501 (c)(3) and (4organizations and 4947(a)( 1) nonexempt charltable trusts must also enter the amount of qrants and allocatlons to ot ers.)

a See Statement 6

Program ServiceExpenses

(Requwed tor 501(c)(3) &(4) orgs , 8. 4947(a)(1)trusts, but optional for

others.)

) 2,144,453(Grants and allocations $b See Statement 7

(Grants and allocations $ . ) 2 , 3 8 9 , 234

c See Statement 8

(Grants and allocations $ ) 2 , 1 6 1 , 2 6 0

d See Statement. .9

(Grants and allocations s ) 1 , 03 8 , 7 4 0

e Other program serwces (attach schedule) See Stmt 10 (Grants and allocations $ ) 1 , 54 8 , 2 61

1 Total of Program Service Expenses (should equal line 44, column (B), Program seNices) D 9 , 2 8 1 , 94 8DAA Form 990 (2003)

.CNGA

form 990 (2003) . National Governors Association 23 -7391796 Pagea1 I 1

Balance Sheets (See page 25 of the instructions.)

Note Where reqUIred, attached schedules and amounts Within the description (A) (B)

column should be for end-of-year amounts only. Beginnlrm year End of year

45 Cash-non-interest-bearing 45

46 Savings and temporary cash Investments 3 , 6 8 8 , 7 5 8 46 3 , 2 9 2 , 4 4 3

47a Accounts receivable 47a 1 7 1 ‘3"‘3:

b Less: allowance for doubtful accounts 47b 1 6 , 8 7 1 47¢ 17 1

48a Pledges receivable 48ab Less: allowance for doubtful accounts 486

49 Grantsreceivable 3,035,168 4,923,511

50 Receivables from officers, directors, trustees, and key employeesA (attach schedule) 50

s 51a Other notes and loans receivable (attach ' “I”

s schedule) 51 a “T '1e b Less: allowance for doubtful accounts 51 b 51c

t 52 Inventories for sale or use 52

s 53 Prepaid expenses and deferred charges _ 53

54 investments-securities See Stmt 11 I D Cost '2' FMV 5 , 52 9 , 82 9 54 6 , 2 9 8 , 8 8 1

55a Investments-land, butldings, and 715 3

eqUIpment: basis 55a ‘ 1

b Less: accumulated depreCIation (attach M‘ ~

schedule) . 55b 55c

56 Investments-other (attach schedule) 56

57a Land, bUlldlngS, and equtpment. ba5ls 57ab Less- accumulated depreciation (attach

schedule) ‘ . 57b 57c58 Other assets (describe 5 ) 58

59 Total assets (add lines 45 through 58) (must equal line 74) 12 , 2 7 0 , 6 2 6 59 14 , 5 15 , 0 0 6

L 60 Accounts payable and accrued expenses 17 5 , 9 6 8 60 3 6 6 , 53 1

i 61 Grants payable 61

a 62 Deferred revenue . 160, 370 62 100, 751

P 63 Loans from officers, directors, trustees. and key employees (attach L;

: schedule) 53

i 643 Tax-exempt bond liabilities (attach schedule) 64a

: b Mortgages and other notes payable (attach schedule) 64b

6 65 Other liabilities (describe D ) 65

866 Total liabilities (add lines 60 through 65) . 3 3 6 , 3 3 8 es 4 6 7 , 2 8 2

Organizations that follow SFAS 117, check here D I2] and complete llnes j“

67 through 69 and lines 73 and 74 “M‘M

NF 67 Unrestricted 6,228,836 67 6,989,215

t° : 68 Temporarily restricted 5 , 7 05 , 4 52 68 7 , 058,509

d 69 Permanently restricted 69

A Organizations that do not follow SFAS 117, check here F U and A {I A L

s B complete lines 70 through 74. :1 :

9 a 70 Capital stock. trust prlnCIpal, or current funds 70f L 71 Paid-in or capital surplus, or land, butlding, and equment fund 71a n 72 Retained earnings, endowment, accumulated income. or other funds 72

C 73 Total net assets or fund balances (add lines 67 through 69 or lines “ Ef: 70 through 72; t .,

column (A) must equal line 19, column (B) must equal line 21) 1 1 , 93 4 , 2 8 8 73 14 , 04 7 , 7 2 4

74 Total liabilities and net assets / fund balances (add llnes 66 and 73) 12 , 2 7 0 , 6 2 6 74 14 l 515 , 0 O 6

Form 990 Is available for public inspection and, for some people, serves as the primary or sole source of Information about a

paitlcular organization. How the public perceives an organization in such cases may be determined by the information presentedon its return Therefore, please make sure the return is complete and accurate and fully describes, in Pan III, the organization'sprograms and accomplishments.DAA

-CNGA

J=orm 990 (2003) . National Governors Association 23-7391796 Paggg

[LPfiflJAfi Reconciliation of Revenue per Audited _._E_a:tf_?l_lL-;B_I_g Reconciliation of Expenses per Audited

" Financial Statements with Revenue per Financial Statements with Expenses per

Return (See page 27 of the instructions.) Returna Total revenue, gains, and other support w“ i ‘w _“_‘_‘_';"4 a Total expenses and losses per i ‘ ‘ 1 ~

per audited finanCIaI statements D a 13 , 11 , 59 audited finanCIal statements D a 11 , 519 , 073

b Amounts included on linea but not on ' i‘ ‘ g“ u in“: v; 1»: b Amounts included on lines but not :1; '_ = 1 ~- ‘ ‘v

line 12, Form 990: '1": 3‘: f: «1 on line 17, Form 990. H. ‘ "‘ “j ‘ : *

(1) Net unrealized gains on 3.1, " ‘ “M H H H (1) Donated serwces and use a; ‘1 j ‘ ‘ ' ‘yf :V ‘Z

investments 5 213, 187 ; r ottacmties s :52“;:"-, I 1 I l ‘

(2) Donated sewices and use : i r H _ (2) Prior year adjustments , ‘ ’ 1;: :51 1:” j j

olfacmties $ “ ;' reportedonlinezo, g7 I: N: H I "

(3) Recoveries of prior Form 990 $ f I 'M j W l: ‘ 1year grants 3 a w (3) Losses reported On line 20, Z :1; ; i; * * q; '

(4) Other (spemly): 1;“ Form 990 S ‘ " ‘ * 1(4) Other(speCIfy): If? f»; 3 M ' ’ w .. ‘ , :;

3 LI" ~‘._.-:__ : t i - 1, ’ A ' "my \Add amounts on lines (1) through (4) D b 2 13 , 187 $ 2“ Z ' ~ 1

Add amounts on lines (1) through (4) D b

c Line a minus line b D c 13 , 5 9 8 , 07 2 c Line a minus line b D

d Amounts included on line 12, .jfifijfi 1 ~ ‘f~:~ w .1 Z i d Amounts included on line 17, H _ g v |

Form 990 but not on line a: ;;:; d E « ,1 1 Form 990 but not on line a: , Z v 1w ” 3

(1) Investment expenses ' fl 6 H (1) Investment expenses , L a ‘ u

not included on line H , not included on line 3 I»; 3 H M: 3 H 1

6b, Form 990 s f“ mi 7 v «333’ 6b, Form 990$ “'1: H 'M '

OZi‘... 'l-l

‘

.I,01 .tI-IJO "

{to :4 AW

(2) Other (speCIly): ‘ :~ I mu (2) Other (speCIfy). a ~I - :3t :5; z 1" t See Stmt 12 i~ '1: 3

3 ~ Mm“ a, s 178,750:«':~~:w:~' 2:5}

Add amounts on lines (1) and (2) D d Add amounts on lines (1) and (2) F d 17 8 , 750

e Total revenue per line 12, Form 990 e Total expenses per line 17, Form 990(linecpluslined) . D 9 13,598,072 (llhBCplUSllflGd). . , P e 11,697,823

Liam/41; List of Officers, Directors, Trustees, and Key Employees (List each one even if not compensated; see page 27 ofthe instructions.)

D Contnb to(B) Title and average (C) Compensation aggloyee benem (E) Expense(A) Name and address hours per‘xesfiifogevoled ‘0 ('1I "Ow-RF, BMW plggfiqa deferrend accglifg‘tflgp‘gegther

Raymond C. Scheppach ‘ Exec Dir444 N Capitol St Washington DC 20001 40 142,393 21,421 0

John Thomasian H . Director444 N Capitol St Washington DC 20001 40 154,301 21,649 0

Laura W, Shiflett . Dir Admn&Fin444 N Capitol St Washington DC 20001 40 78,053 16,750 0

75 Did any officer, director, trustee, or key employee receive aggregate compensation of more than $100,000 from your

organization and all related organizations, of which more than $10,000 was prowded by the related organizations? D IE Yes D No

If "Yes," attach schedule-see page 28 of the instructions See Stmt 13

Form 990 (2003)

DAA

-CNGA

Form 990 (2003) .National Governors Association 23-7391796 Pages

I 'Pa'r't' Vt.) Other Information (See page 28 of the instructions.) Yes No

76 DId the organization engage In any actIVIty not preVIously reported to the IRS? If "Yes," attach a detaIled descrIptIon ofeach actIVIty I I I I I 76 X

77 Were any changes made in the organIzmg or governIng documents but not reported to the IRS? I I I I I I 77 XIf "Yes," attach a conformed copy of the changeSSee 8 mt 13A Mticles of Incorp I & Bylaw “ — m“

78a DId the organIzatIon have unrelated busmess gross Income 013:1,000 or more aurIng the year covered by MS return! I me A

b It "Yes." has It filed a tax return on Form 990-T for We year? 78b79 Was there a liqUIdatIon, dIssolutIon. termInation, or substantIal contractIon during the year? it "Yes," attach a

statement I I 79 X

803 Is the organIzatIon related (other than by assomahon WIth a stateWIde or natIonWIde organIzatIon) through common 5membershIp, governIng bodies. trustees, ottIcers, etc.. to any other exempt or nonexempt organizatIon? I I 80a X

b If "Yes." enter the name of the organIzatIon P National I Governors Association i ‘ ' 'I

I I I I I and check whether It Is E exempt or D nonexempt. I81a Enter Med and IndIrect polltIcal expendItures. See me 81 InstructIons I 813 0 I _ ‘ I I II I

b DId the organIzatIon file Form 1120-POL for We year? 81b X82:: DId the organIzatIon recere donated serVIces or the use of materials, eqUIpment. or faCIIItIes at no charge

or at substantIally less than faIr rental value? I I I 82:: Xb If "Yes," you may indIcate the value of these items here. Do not Include thIs amount as

revenue In Part I or as an expense In Part II. (See InstructIons In Part III ) III III I 82b I N/A it I I;833 DId the organizatIon comply WIth the publIc Inspectlon reqUIrements for returns and exemptIon applIcatIons? 83a X

b DId the organIzatIon comply WIth the dIsclosure reqUIrements relatIng to qwd pro quo contrIbutIons? 83b X84a DId the organIzatIon when any contrIbutIons or ngts that were not tax deducthle? 84a X

b If "Yes," dId the organIzatIon Include WIth every soliCItatIon an express statement that such contrIbutIons 2‘. . I ‘ " ’ “ ' '

or gifts were not tax deducthle? I I I 84b85 501 (c)(4), (5). or (6) organIzatIons. a Were substantIally all dues nondeductlble by members? N/A 851:

b DId the organIzatIon make only In-house lobbyIng expendItures of $2,000 or less? N/A 85bll "Yes" was answered to other 853 or 85b. do not complete 85c through 85h below unless the organIzatIon ‘ Irecered a waIver for proxy tax owed lor the prIor year. I

c Dues. assessments. and swim amounts from members 85c N/Ad SectIon 162(6) lobbyIng and politIcal expendItures I 85d N/A9 Aggregate nondeducthle amount oi sectIon 6033(e)(1)(A) dues notIces 859 N/A I

t Taxable amount of lobbyIng and polItIcal expendItures (IIne 85d less 85e) 85f N/A m I

9 Does the organIzatIon elect to pay the sectlon 6033(e) tax on the amount on Me 851? I I I N/A __8_59h If sectIon 6033(e)(1)(A) dues notIces were sent. does the organIzatIon agree to add the amount on Me 85f to Its

reasonable estImate of dues allocable to nondeductible lobbyIng and poIItIcal expendItures for the followmg taxyear? N/A 85h

86 501(c)(7) orgs Enter' a lnItIatIon tees and capItal contrIbutIons Included on Me 12 863 N/A

b Gross receipts, included on Me 12, for publIc use of club laCIIItIes 86b N/A87 501(c)(12) orgs Enter' a Gross Income from members or shareholders 87:: N/A

b Gross Income from other sources. (Do not net amounts due or pad to othersources against amounts due or moved from them.) 87b N/A

398

903

91

92

DAA

At any tIme durIng the year, dId the organIzatIon own a 50% or greater Interest In a taxable corporatIon orpartnersz. or an entIty dIsregarded as separate from the organIzatIon under RegulatIons sectIons301.7701-2 and 301 7701-3? If "Yes," complete Part IX I I I I 88 X

501(c)(3) organIzatIons. Enter. Amount of tax Imposed on the organIzatIon durIng the year under-sectIon 4911 D 0 ; sectIon 4912 D 0 ; sectIon 4955 D 0 E, , a M501(c)(3) and 501(c)(4) orgs DId the OrganIzatIon engage In any sectIon 4958 excess beneiIt transactlondunng the year or dId It become aware of an excess beneflt transactIon from a prIor year? If "Yes." attacha statement explaInIng each transactIon 89b XEnter: Amount of tax Imposed on the organIzatIon managers or dIsquaIItIed persons durIng the year undersectlons 4912, 4955. and 4958 D 0

Enter: Amount of tax on Me 89c. above. reImbursed by the organIzatIon D 0mt the states WIth mm a copy of We return Is fIIed > See Statement 133Number of employees employed In the pay perIod that Includes March 12. 2003 (See InstructIons ) 90b 5 0

Telephone no. D 2 0 2 I-I 5 3 0 0

r l]

Z|P+4 D 20001-1512

....N/A

Form 990 (2003)

The books are in care of D National Governors Assoc .Located at D 444 N . Capitol St . #2 67 Washington , DC

SectIon 4947(a)(1) nonexempt charItable trusts fIIIng Form 990 in lIeu of Form 1041- Check hereand enter the amount of tax-exempt Interest recered or accrued durInq the tax year DI 92I

—CNGA

Form 990 (2003) .National Governors Association 23 -7391796 nge_s

(Part VII' *1 Analysis of Income-Producing Activities (See page 33 of the instructions.)Note: Enter gross amounts unless otherWIse Unrelated bustness Income Excluded by sec. 512. 513, or 514 (E)

Indicated. (A) (B) (o) (D) R° aw“ °rBusmess code Amount Excluston Amount exempl 'Uncmn

93 Program serVIce revenue: code mm:

a Employ. 8: Vocat . Training Fee 498, 900b Meeting Registration Fees 143, 807Cdef Medicare/Medlcatd payments9 Fees and contracts from government agenCIes

94 Membership dues and assessments I95 Interest on saVIngs and temporary cash Investments 14 9 0 , 4 9 0

96 DIVIdends and Interest from securIties 14 13 5 , 2 8 9

97 Net rental Income or (loss) from real estate: 1 A: ' v“ ' ' ‘ ‘ '“ ' 1' ‘ " M M "1' "M" ' ‘ ' "5 ' "" ‘a debt-financed propertyb not debt-financed property

98 Net rental Income or (loss) from personal property99 Other Investment Income

100 GaIn or (loss) from sales of assets other than Inventory 1 8 1 84 , 6 0 1

101 Net Income or (loss) from speCIal events102 Gross profit or (loss) from sales oi Inventory103 Other revenue: a

b Honoraria 5 , 3 50c Reimbursement of Exempt Funct 145 , 682

cl Program Reimbursements 5 , 2009 Miscellaneous 1 4,294

104 Subtotal (add columns (B), (D), and (E)) __ . I“ 0 .2 L 414 , 674 798 , 939105 Total (add line 104, columns (B), (D), and (E)) _ D 1‘ 213 l 6 13

Note: Mm 105 plus lIne 1d, Part I, should equal the amount on Me 12, Part I.I Part Vlll" Relationship of Activities to the Accomplishment of Exempt Purposes (See page 34 of the instructions.)

Line No. ExplaIn how each actIVIty (or thch Income IS reported In column (E) of Part VII contrlbuted Importantly to the accomplIshment

O of the organtzatton's exempt purposes (other than by provtdlmiunds (or such purposes).See Statement 14

I Part IX 3 Information Reflrding Taxable Subsidiaries and Disregarded Entities See page 34 of the instructions.)(A) (B) (C) (D) (E)

Name, address, and ElN of corporatIon, Percentage of Nature of actIVItIes Total Income End-of—yearpartnershrp, or dIsreqarded entity ownershIp Interest assets

N/A %

%%%

I Part X i Information Refldiry Transfers Associated with Personal Benefit Contracts (See page 34 of the Instructions.)(5) Did the organtzatton, durIng the year, recere any funds, dIrectly or Indtrectly, to pay prequms on a personal benefit contract? Yes X No(b) DId the organtzatton, durIng the year, pay prequms, dIrectly or IndIrectly, on a personal benettt contract? Yes NoNote: If "Yes" to (b), file Form 8870 and Form 4720 (see InstructIons).

Under pena hIs return, Includtng accompanylng schedules and statements, and to the best 01 my knowledgeand be parer (other than ofllcer) Is based on all Inlorrnatton 01 thch preparer has any knowledge

Please |Sign > 7

SIonature of 0 Ice DateHere _Raymond C. Scheppach, Executive Director $3420 300‘]

r /Type or prInt name and titlePreparer‘s > ‘ Date Check r1 Preparers SSN or PTIN (See Gen Instr W)

Paid 5.9m.“ QWKW?0m son 12 /10/0 Zfi'gioyed b H P00176056Preparer's FIrm‘s name (or your: Coates & Hutchinson , P . C . am > 52 - 163 97 08

Use Only If self-employed), P . 0 . BOX 5 6 1 Phone

address,andZ|P+4 Odenton, MD 21113 no }DAA Form 990 (2003)

‘CNGA

SICHEDU‘LE A -(Form 990 or 990-EZ)

Department of the Treasurylntemal Revenue Sewice

Organization Exempt Under Section 501(c)(3)(Except Private Foundation) and Section 501(e), 501(t), 501(k),

501(n), or Section 4947(a)(1) Nonexempt Charitable TrustSupplementary Information-(See separate instructions.)

> MUST be completed by the above organizations and attached to their Form 990 or 990-EZ

OMB No 1545-0047

2003

Name of the organizationNational Governors AssociationCenter for Best Practices

Employer identification number

23-7391796

(flag! 1%} Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees(See paqe 1 of the instructions. List each one. If there are none, enter "None.")

(a) Name and address of each employee paid more (b) Title and average hours C (1:1)go2tengg‘rzmlsars & acgzhfiz‘gzgscgherthan $50,000 per week devoted to posmon (c) ompensanon defgrefi compegsafion allowances

Dane Linn Div . Dir .444 N. Capitol St. Washington DC 40 131,733 27,103 0

Stephen Crawford Div . Dir .444 N. Capitol St. Washington DC 40 116,437 25,036 0

Martin Simon _. H Program Dir .444 N. Capitol St. Washington DC 40 94,824 15,594 0

Kevin Silard . . L Div. Dir .444 N. Capitol St. Washington DC. 40 89,406 15,050 0

Susan Golonka . Program Dir .444 N. Capitol St. Washington DC 40 84,483 21,445 0

Total number of other employees paid over 'M'"*"§'"'*3?l" "7":‘33‘ “viii$50,000 } 14

t . 2

gang‘llwi Compensation of the Five Highest Paid Independent Contractors for Professional Services(See page 2 of the instructions. List each one (whether individuals or firms). If there are none, enter "None.")

(a) Name and address of each independent contractor paid more than $ 50,000 (b) Type of seNice (c) Compensation

I Nat. Assoc. of State Workforce Agencies444 N. Capitol St., Washington, DC. Consulting 221,815

Assoc. of State & Territorial Health Officials1275 K St. NW. Washington, DC. Consulting 221,695

JFK School of Government H.1350 Massachusetts Ave., Cambridge, MA. Consulting 143,139

Public Health Institute1204 Preservation Pkwy., Oakland, CA. Consulting 142,271

Nat. Assoc. of Counties440 1st St. NW., Washington, DC. Consulting 137,974

Total number of others receivmg over $50,000 for I" I ‘ ’ " 35m: x "i, 'professmnal serwces D 10 . . .. ‘

For Paperwork Reduction Act Notice, see the Instructions tor Form 990 and Form 990-EZ.

DAA

Schedule A (Form 990 or 990-EZ) 2003

CNGA

Schedule A (Form 990 or 990-EZ) 2003 National Governors Association 2 3 - 7 3 9 17 9 6 Page 2I t

kPal't Statements About Activities (See page 2 of the instructions.) Yes No

1 During the year, has the organization attempted to Influence national, state, or local legislation, including anyattempt to Influence public opinion on a legislative matter or referendum? If "Yes," enter the total expenses paidor incurred in connection With the lobbying actiVities D $ (Must equal amounts on line 38,Part Vl-A, or “he i of Part Vl-B) XOrganizations that made an election under section 501 (h) by filing Form 5768 must complete Part Vl-A. Otherorganizations checking "Yes" must complete Part VI-B AND attach a statement givmg a detailed description ofthe lobbying activmes.

2 During the year, has the organization. either directly or indirectly, engaged in any of the followmg acts With anysubstantial contributors, trustees. directors, officers, creators, key employees, or members of their families, orWith any taxable organization With which any such person is affiliated as an officer, director, trustee, majorityowner, or prinCipal benefICIary? (If the answer to any question is "Yes," attach a detailed statement explaining thetransactions.)

0.009

e Transfer of any part of its income or assets?Do you make grants for scholarships, fellowships, student loans, etc '7 (If "Yes," attach an explanation of howyou determine that reCIpients qualify to receive payments )Do you have a section 403(b) annuny plan for your employees? ‘

4 Did you maintain any separate account for partICIpating donors where donors have the right to prowde adVIceon the use or distribution of funds?

33

3b

Sale, exchange, or leasmg of property?Lending of money or other exten5ion of credit?Furnishing of goods, seNices, or facmties?Payment of compensation (or payment or reimbursement of expiration if more than $1,000)?

M2a

ii.ii

.3:

2b2c2d

See Stmt 1526

3a3b

NMNN

WWW Reason for Non-Private Foundation Status (See pages 3 through 6 of the instructions.)

The or anization is not a private foundation because it IS' (Please check only ONE applicable box.)5

DONG)

A church, convention of churches, or assomation of churches Section 170(b)(1)(A)(i).A school. Section 170(b)(1)(A)(ii). (Also complete Part V.)A hospital or a cooperative hospital seNice organization. Section 170(b)(1)(A)(iii).A Federal, state, or local government or governmental unit Section 170(b)(1)(A)(v).A medical research organization operated in conjunction With a hospital. Section 170(b)(1)(A)(iii). Enter the hospital's name, city,

and state }An organization operated for the benefit of a college or univerSity owned or operated by a governmental unit. Section 170(b)(1)(A)(iv).(Also complete the Support Schedule in Part lV-A.)An organization that normally receives a substantial part of its support from a governmental unit or from the general public.Section 170(b)(1)(A)(Vl). (Also complete the Support Schedule in Part lV-A )A community trust. Section 170(b)(1)(A)(Vi). (Also complete the Support Schedule in Part IV-A.)An organization that normally receives: (1) more than 33 1l3% of its support from contributions, membership fees, and grossreceipts from actIVities related to its charitable, etc., functions-subject to certain exceptions, and (2) no more than 33 1/3% ofits support from gross investment income and unrelated busmess taxable income (less section 511 tax) from busmesses acqurredby the organization after June 30, 1975 See section 509(a)(2) (Also complete the Support Schedule in Part lV-A.)An organization that is not controlled by any disqualified persons (other than foundation managers) and supports organizationsdescribed in: (1) lines 5 through 12 above; or (2) section 501(c)(4), (5), or (6), if they meet the test of section 509(a)(2). (Seesection 509(a)(3).)

Provrde the followmg information about the supported organizations. (See page 5 of the instructions.)

(a) Name(s) of supported organization(s)(b) Line number

from above

14 n An orq_anization orqa_nized and operated to test for public safety Section 509(a)(4). (See page 6 of the instructions.)Schedule A (Form 990 or 990-EZ) 2003

DAA

CNGA

Schedule A (Form 990 or 990-52) 2003 National Governors Ae sociation 2 3 - 7 3 9 17 9 6 Page—3

Support Schedule (Complete only It you checked a box on line 10, 11, or 12.) Use cash method of accounting.

Note: You maILuse the worksheet In the instructions for convertIng from the accrual to the cash method of accountingCalendar year (or fiscal year beginnan In) D (a) 2002 (b) 2001 (c) 2000 (d) 1999 (e) Total

15 GItts, grants. and contributIonsrecered (Do not Include unusualgrants SeeIIneze.), 9,479,914 9,680,976 9,256,423 8,400,085 36,817,398

16 MembershIp tees received 0

17 Gross receIpts from admIsswns, merchandisesold or serVIces performed. or lumIshIng oifacIIItIes In any actlvrty that IS related to theorganIzatIon'schantable,etc,ptflaosa

18 Gross Income from Interest, dIVIdends,amounts recered from payment on secuntIesloans (sectIon 512(a)(5)), rents, royaltIes, andunrelated busmess taxable income (lesssectIon 511 taxes) from busmesses achIredbytheorganIzatIonatterJuneSO,1975 1,

19 Net Income from unrelated busmessactIVItIes not Included in Me 18 0

20 Tax revenues leVIed for the organIzatIon'sbenefits and erther paid to It or expended onIts behalf . 0

21 The value 01 servrces or facrlities furnished tothe organIzatIon by a governmental unrtwrthout charge Do not Include the value 01serVIces or tacflrtles generally lumIshed to the

public WIthout charge 022 Other Income Attach a schedule Do not

E§Eflt§§$fl§§é§ifiéfmm Stmt 16 163,053 162,251 136,703 140,176 602,183

23 Totalotllnes15through22 10,633,197 10,959,164! 10,005,932 9,025,834 40,624,127

24 LIne23minuslIne17 9,937,627 10,144,292 9,710,721 8,779,868 38,572,508

25 Enter1%ollIne23 106,332 109,5921 100,05990,253; u ~ u E

26 Organizations described on lines 10 or 11: a Enter 2% of amount In column (e), We 24 D 26a 7 7 1 , 4 50

b Prepare a Net for your records to show the name of and amount contributed by each person (other than a w“ i N” 1‘ “ ’ R‘ “5 ’ $1governmental unIt or publIcly supported organIzatIon) whose total gItts for 1999 through 2002 exceeded theamount shown In lIne 26a Do not file this list with your return. Enter the total of all these excess amounts D 26b 6 , 93 0 , 2 6 8

c Total support for section 509(a)(1) test: Enter Me 24, column (e) _ D 26c 3 8 , 57 2 , 508

d Add' Amounts from column (e) for Mes 18 1 l 152 , 9 2 7 19 :4“ " ’L " i 5‘ 1i ’ “7 i

22 602,183 26b 6,930,268 b 26d 8,685,378

e Public support (lIne 26c minus lIne 26d total) D 26e 2 9 L887 , 13 0

1 Public support Eercentage (line 26e (numerator) divided by line 26c (denominator)) } 261 7 7 . 4 8 3 0 °/o

27 Organizations described on line 12: a For amounts Included In lines 15, 16, and 17 that were received from a "dIsqualIlIed

person," prepare a list for your records to show the name of. and total amounts recered In each year from, each "dIsqualItIed person "

Do not tile this list with your return. Enter the sum of such amounts for each year: N/A

(2002) (2001) (2000) (1999)b For any amount included In line 17 that was recered from each person (other than "dIsqualIlIed persons"), prepare a list for your records to

show the name of, and amount recered for each year, that was more than the larger of (1) the amount on “no 25 for the year or (2) $5,000.(include In the “st organIzatIons descnbed In lines 5 through 11, as well as IndIVIduals.) Do not tile this list with your return. After computIngthe dIllerence between the amount recered and the larger amount described In (1) or (2), enter the sum of these dIfferences (the excessamounts) for each year: N/A

(2002) (2001) (2000) (1999)c Add. Amounts from column (9) for “ms. 15 16

17 20 21 b 27cd Add' LIne 27a total and Me 27b total D 27d9 PublIc support (lIne 27c total mInus lIne 27d total) D 27s1 Total support for section 509(a)(2) test Enter amount on lIne 23. column (e) b I 271 I ‘= 5 ' » i9 Public support percentage (line 27e (numerator) divided by line 271 (denominator)) } 27 "/o

h Investment income percentage (line 16, column (e) (numerator) divided by line 271‘ (denominator)) D m: %

28

DAA

Unusual Grants: For an organization descrIbed In lIne 10, 11, or 12 that received any unusual grants during 1999 through 2002,

prepare a “st for your records to show, for each year, the name of the contributor, the date and amount of the grant, and a brIel

descrIptIon of the nature of the grant Do not file this list with your return. Do not Include these grants In line 15.Schedule A (Form 990 or 990-EZ) 2003

CNGA

Schedule A (Form 990 or 990-EZ) 2003 National Governors As sociation 2 3 - 7 3 9 17 9 6 Page 4

Lmliamrtygj Private School Questionnaire (See page 7 of the instructions.)

(To be completed ONLY by schools that checked the box on line 6 in Part IV)

29 Does the organization have a raCIally nondIscrImInatory polIcy toward students by statement In Its charter, bylaws, N/A Yes No

other governIng Instrument, or In a resolutIon of Its governIng body? . . I . 29

30 Does the organIzatIon Include a statement of Its raCIally nondIscrImInatory poIIcy toward students In all Itsbrochures, catalogues, and other when communications WIth the publIc deaIIng WIth student admlSSIOr‘IS,programs. and scholarshIps? . ' ' . . . . . 30

31 Has the organIzatIon pubIICIzed Its raCIally nondIscrImInatory poIIcy through newspaper or broadcast medIa during a;

the perIod of soIICItatIon for students. or durIng the regIstratIon perIod if It has no soIICItatIon program, In a way _; v ‘ I

that makes the poIIcy known to all parts of the general communIty it serves? . 31If "Yes," please descrIbe; If "No," please epraIn. (If you need more space, attach a separate statement.) mm M, 2 M,

r“I

’5“ N13, i

32 Does the organIzatIon maIntaIn the followmg' _,_,,_ ‘ 43;;

a Records IndIcatIng the raCIaI composmon of the student body, faculty, and admInIstratIve staff? 32a

b Records documentlng that scholarshIps and other fInanCIaI aSSIstance are awarded on a raCIally nondIscriminatorybaSIs? _ . ‘ ‘ 32b

c CopIes of all catalogues, brochures, announcements, and other when communIcations to the publIc dealIng

WIth student admlSSIOnS, programs, and scholarshIps? 32c

d CopIes of all materIaI used by the organIzatIon or on its behalf to soth contrIbutIons? 32d

If you answered "No" to any of the above, please explaIn (If you need more space, attach a separate statement) a

33 Does the organIzatIon dIscrImInate by race In any way WIth respect to. fl; 3

3 Students' rIghts or prIVIIeges? 333

b AdmiSSlonS polICIes? 33b

c Employment of faculty or admInIstratIve staff? 33c

d ScholarshIps or other fInanCIal aSSIstance? 33d

e EducatIonal policies? 339

f Use of faCIlItIes? 33!

g AthletIc programs? . 33

h Other extracurrIcular actIVItIes? 33h

.. M ,If you answered "Yes" to any of the above, please epraIn. (If you need more space, attach a separate statement.) “I,

3:, "N T H

348 Does the organlzatlon recere any fInanCIal aId or aSSIstance from a governmental agency? 348

b Has the Organization's rIght to such aId ever been revoked or suspended? 34bIf you answered "Yes" to eIther 34a orb, please explaIn usmg an attached statement ;

35 Does the organIzatIon certify that it has complIed WIth the appIIcabIe reqmrements of sectIons 4 01 through 4 05of Ftev. Proc. 75-50, 1975-2 CB. 587, coverInq raCIaI nondIscrImInatIon? If "No," attach an expla_natIon 35

DAA

Schedule A (Form 990 or 900-EZ) 2003

CNGA

Schedule A (Form 990 or 990-EZ) 2003 National Governors Association 2 3 - 7 3 9 17 9 6 Page 5

LEE]:1&3:,, Lobbying Expenditures by Electing Public Charities (See page 9 of the instructions.)

(To be completed ONLY by an eliqible organization that filed Form 5768) N/A

Check 5 a N If the organIzatIon belongs to an alfIlIated group. Check D b 1—] It you checked "8" and "mum control" prOVISIons apply.. . . . (a) (b)

L'm'ts 0" Labbymg Expend'tures AflIlIated group totals To be completed10r ALLIelectIng

organIzatIons0'he term "expendItures" means amounts mm or Incurred )36 Total lobbying expenditures to Influence publIc opInIon (grassroots lobbying)37 Total lobbying expendltures to Influence a legIslatIve body (direct lobbyIng)38 Total lobbyIng expendItures (add “ms 36 and 37)39 Other exempt purpose expenditures40 Total exempt purpose expendItures (add lInes 38 and 39)41 LobbyIng nontaxable amount. Enter the amount from the followmg table-

lt the amount on line 40 ie- The lobbying nontaxable amount is-Not over $500,000 20% of the amount on lIna 40 W * m” d 7‘

Over $500,000 but not over $1,000,000 . $100,000 plus 15% of the excess over $500,000 A m _ NOver $1,000,000 but not over $1,500,000 $175,000 plus 10% 01 the excess over $1,000,000 41Over $1,500,000 but not over $17,000,000 $225,000 plus 5% of the excess over $1,500,000 " ' _ V W M 4‘Over $17,000,000 $1,000,000 m u 2 N W” 2'

Grassroots nontaxable amount (enter 25% of Me 41)Subtract We 42 from Me 36. Enter -0- It Me 42 Is more than “no 36Subtract IIne 41 from Me 38. Enter -0- Il Me 41 Is more than Me 3838$

Caution: If there Is an amount on eIther Me 43 or lIne 44, you must file Form 4720. ‘ '. . .4-Year Averaging Period Under Section 501(h)

(Some organIzatIons that made a sectIon 501 (h) electron do not have to complete all of the five columns below.See the InstructIons for Mes 45 throuqh 50 on page 11 of the InstructIons.)

Lobbying Expenditures During 4-Year Averaging Period

Calendar year (or (a) (b) (c) (d) (9)fiscal year beginning in) b 2003 2002 2001 2000 Total

45 Lobbying nontaxable amount46 Lobbying ceIling amount(150°/o ot “' i "i":1‘"'“.‘ “'3 ' I. 5’ ‘5 “ 1;“ .. w": . d , ,. .i ..

Ime 45(e)) H . .2: :l . j v”. 0'.“ 2 . . 4.. WT. :V‘ p“ .2 1‘: .g “,1 i w. . , .

47 Total lobbylng expendItures

48 Grassroots nontaxable amount49 Grassroots ceIIIng amount (150% of l M h A M I w F

une4eIe» . . .4 c ' *V" t “" 1". « »»‘I' I v'=t é »£ ‘3 .I . »1 v 4 : 031w” x17.

50 Grassroots lobbyInq expendIturesLfgliyl-EWE Lobbying Activity by Nonelecting Public Charities

(For reporting only by organizations that did not complete Part Vl-A) (See pace 12 of the instructions.)DurIng the year, dId the organIzatIon attempt to Influence natIonal, state or local legIslatIon, includIng anyattempt to Influence publIc opInIon on a legIslatIve matter or referendum, through the use 01‘

a Volunteers . _PaId staff or management (Include compensatIon In expenses reported on IInes 0 through h.)MedIa advemsementsMaIlIngs to members, legIslators, or the pubIIcPublIcatIons, or publIshed or broadcast statements IGrants to other organIzations for lobbyIng purposesDIrect contact WIth legIslators, theIr staffs, government oflICIals, or a legIslatIve bodyRallies, demonstratIons, semInars, conventIons, speeches, lectures, or any other meansTotal lobbyIng expendItures (Add IInes c through h.)It "Yes" to anv ol the above, also att_ach a statement qwmq a detaIled descrIptIon of the lobbyan actIVItIes.

z0Yes Amount

3Q‘0QOU‘Exxxxxxxx

Schedule A (Form 990 or 990-EZ) 2003

BM

CNGA

ScheduleA (FOrm 990 or 990-52) 2003 National Governors Association 23 —7391796 Page—6

(“fiajtfiyllgj Information Regarding Transfers To and Transactions and Relationships With NoncharitableExempt Oflanizations (See page 12 of the instructions.)

51 Did the reporting organization directly or Indirectly engage in any of the followmg with any other organization described in section501 (c) of the Code (other than section 501(c)(3) organizations) Orin section 527, relating to political organizations'7

a Transfers from the reporting Organization to a noncharitable exempt organization of:(i) Cash(ii) Other assets

b Other transactions:(i) Sales or exchanges Of assets With a noncharitable exempt Organization . .(ii) Purchases of assets from a noncharitable exempt Organization(iii) Ftental of laCilities, equment. or other assets(iv) Reimbursementarrangements(v) Loans or loan guarantees .(vi) Performance of serwces or membership or fundraismg solicnations

c Sharing of faculties, eqUIpment, mailing lists, other assets, or paid employeesd If the answer to any of the above is "Yes," complete the followmg schedule Column (b) should always show the fair market value of the

goods, other assets, or seNices given by the reporting organization it the organization received less than fair market value in anytransaction or show in column the value of the or seNices received:

(a) (b) (c) (d)Line no Amount involved Name of noncharitable of

NoXX

XXXXXXX

NA

52a Is the organization directly or indirectly affiliated With, or related to, one or mOre tax-exempt organizationsdescribed in section 501(c) of the Code (other than section 501(c)(3)) or in section 527? D [:1 Yes [XI No

b If “Y " the -

(a) (b) (c)Name of T of of

NA

DAA Schedule A (Form 990 or 990-EZ) 2003

CNGANationalGovernorsAssociation‘ - 23-7391796FederalStatements FYE:6/30/2004

fltement1-Form990.figrtI.Line8c-S_aleofAssetsOtherThanInventorv-Securities; Desc HowWhomDateDateSaleCost&Gain/ Rec'dSoldAcquiredSoldPriceExpenseDeprec-Loss

PubliclyTradedSecurities

$2,412,322$2,227,721$$184,601

Total$2,412,322$2,227,721$0$184,601

fltementg-Form990.PartI.Line16-ngmentstoaffiliates

BusName

AddrPurposeAmount

NationalGovernorsAssociation

444NorthCapitolSt.#267TransfrtopayforAnnual&WinterMtgregfees$

Total$

178,750 178,750

— CNGA National Governors Association

'23-7391796 Federal Statements

. FYE: 6/30/2004

Statement 3 - Form 990, Line 20 - Other Changes in Net Assets or Fund Balances

Description Amount

Net unrealized gains on investments $ 213,187

Total $ 213,187

NationalGovernors'AssociationCenterforBestPractices EIN:23-7391796 YearEnded:June30,2004 Form990,

Statement3A

PartII,Line42-Depreciation,depletion,etc. NationalGovernorsAssociationCenterforBestPractices(theCenter)sharesinthecostsofanIndirectcostpool managedbyNationalGovernorsAssociation(NGA).Costssuchassalariesandbenefitsformanagementand administration,supplies,postage,deprecration,telephone,printing,etc.areaccumulatedbyNGAandallocated betweenNGAandtheCenterbasedonthedirectlaborcostsoftherespectiveorganizations.NGArecordsallfixed assetsonitsbooks.Asaresult,althoughtheCenterhasnofixedassetsonitsbooks.Itdoesbearadeprecratlon chargeforfixedassetsusedduringtheyear.NGA'sindirectcostpoolandtheratesusedforallocationbetweenthe twoorganizationsarereviewedandapprovedannuallybytheUSDepartmentofLabor,theCenter'scognizant agency. BelowISasummaryofNGA'sfixedassetscheduledetailingtheallocationofdepreciationbetween NGAandtheCenter.

DepreciationExpense

AccDeprNGACenter

AssetTypeMethodLifeCost6/30/04FY04FY04

Furniture&EqurpmentSL5years434.645225.53622,22239,505 ComputerEqu1p&SoftwareSL3-5years789,015754,99314,13025,296 LeaseholdlmprSLvarious454,792123,27912,45022,134

1,678,4521,103,80848,80286,935

Book Value 6/30/04 209,10934,022

331,513 574,644

. CNGA National Governors Association

'23-7391796 Federal Statements

' FYE: 6/30/2004

Statement 4 - Form 990I Part II. |=ine 43 - cher anctional Expenses

Total Program Mgt & Fund-Description Expenses Service General Raising

$ $ $ $Expenses

PC Usage Fees 54,925 42,494 10,529 1,902Online Computer Services 22,804 6,467 15,971 366Consultants Fees, Subcontract 2,978,328 2,936,956 3,810 37,562Insurance 59,763 40,587 16,878 2,298Recruitment, Pro. Deve1.Train 36,797 3,900 32,237 660Filing Fees & Miscellaneous 13,380 3,706 5,530 4,144

Total $ 3,165,997 $ 3,034,110 $ 84,955 $ 46,932

Statement 5 - Form 990, Part III - Organization's Primary Exempt Purpose

National Governors Association Center for Best Practices(the Center) helps governors and their key policy staffdevelop and implement innovative solutions to challengesfacing their states. Through the staff of the Center,governors and their policy advisors can:— quickly learn about what works, what doesn't and whatlessons can be learned from other governors grappling withthe same problems;— obtain assistance in designing and implementing newprograms or in making current programs more effective; and— receive up-to—date, comprehensive information about whatis happening in other state capitals and in Washington,D.C., so governors are better prepared to react to emergingissues.

Statement 6 - Form 990I Part IllI Line a - Statement of Program Service Accomplishments

THE EDUCATION DIVISION - supports the Governors'leadership roles in education reform, providinginformation on best practices in early childhood,elementary and secondary, and post—secondary education,including issues of accountability, extra learningopportunities, and the use of technology in classrooms.

Statement 7 - Form 990I Part IIII Line b - Statement of Program Service Accomplishments

THE SOCIAL, ECONOMIC, AND WORKFORCE PROGRAMS DIVISION -works with states to identify, share and implement bestpractices in the areas of welfare reform, workforcedevelopment, children and families, and youthdevelopment.

— CNGA National Governors Association

‘ 23-7391796 Federal Statements

FYE: 6/30/2004

Statement 8 - Form 990I Part III. l_.ine c - Siajement of Proggm Service Accomplishments

THE HEALTH DIVISION — provides technical assistance andinformation on a broad range of health financing, servicedelivery, and policy issues, including areas such ashealth insurance costs and trends, state initativesresulting from the national tobacco settlement,children's health insurance program implementation,rural health and primary care, and cancer prevention andcontrol.

Statement 9 - Form 990I Part IllI Line d - Statement of Program Service Accomplishments

THE ENVIRONMENT, ENERGY, AND NATURAL RESOURCES DIVISION -conducts analysis of state and federal policies affectingagriculture, emergency management, domestic terrorism,state smart growth strategies, energy, cleanup anddisposition of nuclear materials, environmentalprotection, natural resources, and pollution prevention.

Statement 10 - Form 990. Part lllI Line e - Other Program Services

THE HOMELAND SECURITY AND TECHNOLOGY DIVISION — informsstates of best practices in emergency responsiveness toterrorism and natural disasters including bioterrorism,critical infrastructure protection, nuclear andradiological terrorism, information sharing, and disasterrelief, and also advises states on science andtechnology, telecommunications, and informationtechnolgy.OTHER PROGRAM COSTS — include meeting expenses for anannual governors' policy advisors conference,communications division expenses, and miscellaneousexpenses.

8-10

' CNGA National Governors Association

‘23-7391796 Federal Statements

' FYE: 6/30/2004

fltement 11 - Fgrm 990. Part IV. Line 54 - Investments in Securities

BeFinning End of Basis ofDescription 0 Year Year Valuation

US Government Debt Securities 943 , 181 938 , 443 MarketCorporate Debt Securities 1,226,072 1,228,338 MarketCorporate Equity Securities 3, 184,608 3, 930, 920 MarketMoney Market Funds 175 , 968 201 , 180 Market

5,529,829 6,298,881E g

11

' CNGA National Governors Association

A 23-7391796 Federal Statements

' FYE: 6/30/2004

Statement 12 - Form 990I Part lV-B - Other Exgenses Included on Return

Description Amount

Payment to Affilate $ 178,750

Total $ 178 , 750

CNGANationalGovernorsAssociation 23-7391796 FYE:6/30/2004

FederalStatements

S_tatement1;Form990.flrtV.gne75-InformationonComensationExceedin

Payee Name

RelatedOrganization

Organization

EINCompensationBenefits

RaymondC.ScheppachNatl.Govern.Assoc

52-102038180,09612,049

LauraW.ShiflettNatl.Govern.Assoc

52-102038143,9059,422

Expenses

2,049 13

0

GOVERNMENT OF THE DISTRICT OF COLUMBIA

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

* at air

_

—

CERTIFICATE

THIS IS TO CERTIFY that all applicable provisions of the District of Columbia

NonProfit Corporation Act have been complied with and accordingly, this

CERTIFICATE OF AMENDMENT is hereby issued to:

NATIONAL GOVERNORS ASSOCIATION CENTER FOR BEST PRACTICES

IN WITNESS WHEREOF I have hereunto set my hand and caused the seal of this

office to be affixed as of the 27th day of April ,2004.

David Clark

DIRECTOR

Winnie R. Huston

Acting Adminstrator

Business and Professional Licensing Administration

Patricia E. Grays (L'OH

Superintendent of Corporations

Corporations Division

Anthony A. WilliamsMayor

NATIONAL GOVERNORS ASSOCIATION CENTER FOR BEST PRACTICES

ARTICLES OF INCORPORATION

We, the undersigned natural persons of the age of twenty-one years or more, acting as

incorporators of a corporation adopt the following Articles of Incorporation for a corporation

pursuant to the District of Columbia Non-profit Corporation Act:

ARTICLE I

The name of the corporation is the National Governors Association Center for Best Practices

(hereinafter, the “Center”).

ARTICLE H

The Center shall exist in perpetuity.

ARTICLE III

The Center is organized for the general purpose of establishing and maintaining a center for state

government policy research and analysis. The corporation is organized and designed to be

eligible for exemption from federal taxation under 26 U.S.C. Section 501 (c)(3). As such its

purposes are limited to those set forth in the statutes and regulations governing organizations

exempt under Section 501(c)(3). In order to carry out its general purpose, the Center shall have

the power to receive state and private contributions; grants from government and private

organizations, and to enter into contracts. The Center shall possess all other powers and

privileges afforded non-profit corporations under the District of Columbia Non-profit

Corporation Act which are not inconsistent with exemption under Section 501(c)(3). No part of

the activities of the Center shall consist of carrying on propaganda, or otherwise attempting to

influence legislation, and the Center shall not participate in, or intervene in (including the

publishing or distributing of statements) any political campaign on behalf of or in opposition to

any candidate for public office. Notwithstanding any other provision of these Articles, the

Center shall not carry on any activity not permitted to be carried on (a) by a corporation exempt

from federal income tax under 26 U.S.C. Section 501 (c)(3) and (b) by a corporation,

contributions to which are deductible under 26 U.S.C. Section 170. No part of the net earnings

of the Center shall inure to the benefit of any individual.

5203/54096-004 NYWORD/137115v5

ARTICLE IV

The Center shall have members. Membership shall be determined in accordance with the Bylaws

adopted pursuant to Article VIII. There are no classes of membership, and all members shall

possess voting rights.

ARTICLE V

The Board of Directors, other than the first board, shall be selected in accordance with the

Bylaws adopted pursuant to Article VIII.

ARTICLE VI

The number of Directors constituting the initial Board of Directors is nine, and the names and

addresses of the 1973-74 Executive Committee of the National Governors Association who are

to serve as Directors until their successors shall be elected or appointed are:

Governor Dolph Briscoe

State Capitol

Austin, TX 78711

Governor Dale Bumpers

State Capitol

Little Rock, AR 72201

Governor Robert B. Docking

State House

Topeka, KS 66612

Governor James E. Holshouser,

Jr.

Administration Building

Raleigh, NC 27611

5203/54096-004 NYWORD/137115v5

Governor Daniel J. Evans

State Capitol

Olympia, WA 98501

Governor Patrick J. Lucey

State Capitol

Madison, WI 53702

Governor William G. Milliken

State Capitol

Lansing, MI 48903

Governor Philip W. Noel

State House

Providence, RI 02903

Governor Francis W. Sargent

State House

Boston, MA 02133

ARTICLE VII

The membership may amend these Articles of Incorporation by a two-thirds vote of all members

present and voting. Notice, of not less than ten (10) or more than fifty (50) days, as provided for

in the District of Columbia Non-profit Corporation Act, shall be given to all members and said

notice shall advise of the specific proposed amendments, together with an explanatory statement

regarding the proposed amendments.

ARTICLE VIII

Subject to the continuing will of the membership as may be expressed at any annual meeting, the

Board of Directors shall adopt Bylaws for the governance of the Center. Bylaws shall be adopted

at the first board meeting which shall be called for that purpose. Adoption of the Bylaws and

amendments thereto shall require a majority vote of the Directors at any annual or special

meeting. Bylaws and amendments thereto shall be consistent with the language and intent of

these Articles of Incorporation.

ARTICLE IX

The Chairman of the Board of Directors of the Center shall be selected in accordance with the

provisions of the Bylaws adopted pursuant to Article VH1 and shall have the powers and duties

enumerated therein.

ARTICLE X

The Board of Directors of the Center shall meet annually at a time and place selected by the

Chairman in consultation with the Board. The annual meeting of the Board shall normally be

held in conjunction with the annual meeting of the National Governors Association. Special

meetings of the Board may be held at the call of the Chairman in accordance with the Bylaws to

be adopted pursuant to Article VIII above.

ARTICLE XI

The annual and special meetings of the membership shall be held in accordance with the

provisions of the Bylaws adopted pursuant to Article VIII.

ARTICLE XH

Upon the dissolution of the Center, the Board of Directors shall, after paying or making provision

for the payment of all liabilities of the Center, dispose of all of the assets of the Center consistent

35203/54096-004 NYWORD/137115v5

with the purposes of the Center as set forth in Article HI above, or to such organization or

organizations organized and operated exclusively for charitable, educational, or scientific

purposes as shall at the time qualify as an exempt organization or organizations under 26 U.S.C.

Section 501 (c)(3), or to each State of which a member is Governor in the proportion which each

member, or the State which he governs, contributed to the Center in the fiscal year preceding

dissolution, but this shall be for a public purpose.

ARTICLE XIII

The name and address of the initial registered agent and office is The CT Corporation System,

1030-15‘h Street, N.W., Washington, DC. 20005

ARTICLE XIV

The signatures and addresses of the incorporators are:

(List of incorporators is on file in the Offices of the Center)

Incorporated on May 3, 1974. Articles of Incorporation as amended by the membership on

September, 1977, July 10, 1979, February 4, 1996, August 4, 1998 in Milwaukee, Wisconsin,

and February 22, 2004 in Washington, DC.

5203/54096—004 NYWORD/137115v5

NATIONAL GOVERNORS ASSOCIATION CENTER FOR BEST PRACTICES

AMENDED AND RESTATED

BYLAWS

ARTICLE I

PURPOSES

Section 1: Relationship to National Governors Association:

The National Governors Association Center for Best Practices (hereafter, the “Center”) is

the tax-exempt research arm of the National Governors Association (hereafter, the

“Association”). It was created and incorporated by the 1973-74 Executive Committee of the

Association in order to establish an organization for which federal and foundation funds as well

as tax deductible contributions from private sources could be sought, in addition to available

Association funds, to sponsor research and analysis in furtherance of the Association's purpose.

Section 2: Purposes:

The Center is designed to be eligible for exemption from federal taxation under 26 U.S.C.

Section 501 (c)(3), and contributions to the Center are to be deductible under 26 U.S.C. Section

170. The Center's purposes and activities are expressly limited in Article [[I of its Articles of

Incorporation to those permitted by the statutes and regulations governing such organizations.

Accordingly, the Center is organized exclusively for these charitable, scientific, and

educational purposes:

Generally, to provide research and analysis for Governors as directed by the membership

through the Board of Directors.

To track and disseminate "best practices" developed by sister states.

To assist Governors in implementation and improvement ofjoint federal and state programs.

To provide a forum where Governors and their key personnel can systematically analyze the

changing state role in the federal system.

To assist Governors in the assessment of the interrelationships between and among public

issues.

To develop improved advance warning procedures to aid Governors in early identification of

5203/54096-004 NYWORD/1371 17v4

public issues to which state government can and should respond.

To enable Governors to achieve improved policy development by developing systematic

methods of evaluating policy options.

To enable Governors to better evaluate the impact of federal initiatives upon the structure,

policies, and procedures of state government.

To provide technical assistance to the states in designing and implementing Governors’

initiatives in these areas.

To do any and all lawful acts which may be necessary to accomplish the purposes of the

Center.

Section 3: Political and Legislation Related Activity Prohibited:

No part of the activities of the Center shall consist of carrying on propaganda, or otherwise

attempting to influence legislation, and the Center shall not participate in, or intervene in

(including the publishing or distributing of statements) any political campaign on behalf of or in

opposition to any candidate for public office. Notwithstanding any other provision of these

Bylaws, the Center shall not carry on any activity not permitted to be earned on (a) by a

corporation exempt from federal income tax under 26 U.S.C. Section 501 (c)(3) and (b) by a

corporation, contributions to which are deductible under 26 U.S.C. Section 170. Such activities

are prohibited for the Center by Article III of its Articles of Incorporation.

Section 4: Earnings:

No part of the net earnings of the Center shall inure to the benefit of any individual. The

Center shall, however, be authorized and empowered to pay reasonable compensation for

services rendered; to make grants to other organizations or individuals to carry out the Center's

charitable purposes; and to receive grants, awards, and contributions in furtherance of its

purposes.

ARTICLE II

BOARD OF DIRECTORS

Section 1: Number and Qualifications:

The number of Directors 15 four, con51sting of the Vice Chairman or acting Vice Chairman

of the Association, his or her designee, and two designees of the Chairman of the Association.

Not more than two Directors can be from the same political party.

5203/54096—004 NYWORD/137117v4

Section 2: Tenure:

Directors shall serve until their successor is elected or appointed. Directors may be

reelected to successive terms.

Section 3: General Powers:

The affairs of the Center shall be managed by the Board of Directors and all corporate

powers shall be exercised by the Board of Directors, except as otherwise specified in the Articles

of Incorporation. The Board of Directors shall have authority to act for the membership of the

Center in the interim between Annual Meetings.

Section 4: Annual Meeting:

The Annual Meeting of the Board of Directors of the Center shall be held in conjunction

with the Annual Meeting of the Executive Committee of the Association which is held in

conjunction with the Annual Meeting of the Association.

Section 5: Special Meetings:

Special meetings of the Board may be held at the call of the Chairman. To the maximum

extent possible, special meetings of the Board of Directors shall be called by the Chairman in

conjunction with meetings of the Executive Committee of the Association.

Section 6: Notice:

The Chairman shall notify, in writing, each Director of the time and place of the Annual or a

Special meeting of the Board either by mail, received not less than forty—eight (48) hours before

the time of the meeting, or by facsimile transmission or electronic mail, with a confirmatory

telephone call, on at least twenty-four (24) hours notice. No other notice is required. Attendance

of any Director at any meeting shall constitute a waiver of notice, except where a Director attends

for the express purpose of objecting to the transaction of business because the meeting has not

been lawfully called.

Section 7: Quorum:

At any meeting of the Board, a quorum shall exist when the Chairman and two (2)

additional members are present.

5203/54096—004 NYWORD/137117v4

Section 8: Meetings by Means of Conference Telephone:

Members of the Board may participate in a Board meeting by means of a conference

telephone or similar communications equipment by means of which all persons participating in

the meeting can communicate with each other. Participation in a meeting pursuant to this

Section 8 shall constitute presence in person at such meeting.

Section 9: Action of Board of Directors Without a Meeting:

Any action required to be taken at a Board meeting, or any action which may be taken at a

Board meeting, may be taken without a meeting if the Board members consent in writing, setting

forth the action so taken. Such consent shall be signed by all of the Board members entitled to

vote With respect to the subject matter thereof. Such consent shall have the same force and effect

as a unanimous vote, and may be stated as such in any articles or documents filed with the Office

of the Recorder of Deeds of the District of Columbia.

Section 10: Adjournment of Meetings:

A majority of the Board members present, whether or not a quorum is present, may adjourn

any meeting to another time and place. Notice of the adjournment shall be given to all Board

members who are absent at the time of the adjournment. Notice of the adjourned meeting need

not be given to any Board members who were present at the time of the adjournment only if the

time and place are fixed at the meeting adjouming and if the period of adjournment does not

exceed thirty (30) days in any one adjournment.

Section 11: Vacancies:

If a vacancy occurs on the Board, such vacancy shall be filled in accordance with the

procedures for selection of Directors provided for in Article II, Section 1 above.

Section 12: Voting By Proxy:

There is not voting by proxy in the Board.

Section 13: Mail Ballots:

Unless otherwise expressly stated herein, members may vote by mail ballot, distributed by

the Secretary of the Center through facsimile transmission, electronic mail, or the United States

Postal Service. Each mail ballot shall contain the facsimile number to which such mail ballot

shall be returned, together with an appropriate Center contact telephone number. Members‘ votes

are deemed cast when received by the Center.

5203/54096-004 NYWORD/137117v4

To approve any matter by mail ballot, in lieu of, or in conjunction with, a meeting by

members of the Center, the same proportion of affirmative votes is required of the full number of

Center members as would otherwise be required to approve the same matter at a meeting of

Center members where quorum exists.

To approve any matter by mail ballot, in lieu of, or in conjunction with, any Board of

Directors or committee meeting, the same proportion of affirmative votes is required of the full

number of committee members, as would otherwise be applied to a meeting of committee

members on the same matter where quorum exists.

ARTICLE III

OFFICERS

Section 1: Chairman:

The Vice Chairman of the Association shall be the Chairman of the Center. The Chairman

shall preside and vote at meetings of the Board of Directors and of the membership.

Section 2: President and Executive Director:

The Executive Director of the Association shall be the Executive Director and President

(hereinafier the "Executive Director") of the Center.

The Executive Director shall be the primary administrative officer of the Center and shall

have responsibility for the administration of all Center functions and activities. The Executive

Director shall employ, fix the salaries of, and direct such personnel as may be required to carry

out the purposes of the Center in accordance with budgets to be adopted by the Board of

Directors.

In addition to personnel service contracts, the Executive Director shall have the general

authority to contractually obligate the Center in furtherance of its purposes.

Section 3: Secretary:

The Secretary of the Association shall be the Secretary of the Center. The Secretary shall

attend and maintain a correct record of all meetings of the Board of Directors.

5203/54096004 NYWORD/1371 17v4

Section 4: The Treasurer:

The Treasurer of the Association shall be the Treasurer of the Center. Subject to the

authorization of the Board of Directors, the Treasurer shall have custody of the fimds of the

Center. He shall deposit the funds of the Center in its name, or in the name of the Association,

whichever is appropriate, annually reporting to the Board of Directors all receipts, disbursements,

and balances on hand; and he shall perform such other fiscal agent responsibilities as shall be

assigned to him by the Board of Directors. He shall furnish a bond with sufficient sureties

conditioned for the faithful perfomlance of his duties.

ARTICLE IV

MEMBERSHIP

Section 1: Annual and Special Meetings:

The Annual Meeting of the Center membership shall be held in conjunction with the Annual

Meeting of the Association. Special Meetings of the Center membership shall be held in

conjunction with any Special Meeting of the Association.

Section 2: Notice:

Notice of the Annual or any Special Meeting of the Association shall constitute notice of the

Annual or any Special Meeting of the Center.

Section 3: Quorum:

Twenty-five members present at the Annual or a Special Meeting shall constitute a quorum.

Section 4: Rules of Procedure:

The Rules of Procedure of the Association are hereby incorporated and made a part of these

Bylaws. Those rules shall govern the Annual and any Special meetings of the Center insofar as

they are not inconsistent with the Articles of Incorporation and these Bylaws.

Section 5: Qualification for Membership

Membership in the Center shall be restricted to the Governors of the several States of the

United States, the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, and the

Commonwealth of Puerto Rico.

5203/54096-004 NYWORD/137117v4

ARTICLE V

DISSOLUTION

Dissolution of the Center will be in accordance with Article XII of the Articles of

Incorporation.

ARTICLE VI

AMENDMENTS

Section 1: Articles of Incorporation:

The membership may amend the Articles of Incorporation in accordance with Article VH of

the Articles.

Section 2: Bylaws:

The Board of Directors may amend these Bylaws by a majority vote provided that notice of

a proposed amendment in the form of the text thereof be given not less than ten (10) days prior to

the Annual or Special Meeting at which the amendment is voted upon.

*The Amended and Restated Bylaws were adopted on January 30, 2004 in Washington, DC.

5203/54096—004 NYWORD/137117v4

, National Governors Association Center for Best Practices

23-7391796

FYE: 6/30/2004 Federal Statement

Statement 138 - Form 990LPart VI, Line 903 — List of Registered States

Re istration . .State Agency g Registration

. DateInformation Number

1999AK Alaska Dept of Law Attorney General 1031 West 4th Ave None Assrgned

Surte 200 Anchorage AK 99501-1994

2000AL Office Of Attorney General Consumer Affairs DIVISIOn 11 AL00-176

South Union Street Montgomery AL 36130-210319 1

AR Office of Attorney General Consumer Protection Division 9 None Assigned323 Center Street Surte 200 Little Rock AR 72201-2610

1991AR Office of Attorney General Consumer Protection Divrsron None Assigned

323 Center Street Surte 200 Little Rock AR 72201-2610

1991AZ Secretary of State 1700 West Washington 7th Floor 20166

Phoenix AZ 85007-2808

19 1CA Ca Secretary of State Statement of Information PO. Box 9 C1625084

944230 Sacramento CA 94244-23001

CA Franchise Tax Board P O Box 942857 Sacramento CA 991 162508494257-0701

1991CA Register of Charitable Trust Office of Attorney General 080454

PO Box 903447 Sacramento CA 94203-4470

2003CO Secretary of State 1560 Broadway, Surte 200 Denver CO 20033007122

80202

1991CT Office Of Attorney General, Public Charities Unit 55 Elm 3003-03077

Street Hartford CT 06106-17461 91

DC Dept of Consumer 8. Reg Affairs 941 North Capitol Street. 9 None AssrgnedNE Room 7205 Washington DC 20002

1991DC Dept of Consumer 8. Reg Affairs 941 North Capitol Street. 39806501

NE Room 7205 Washington DC 20002

1991FL Department of Agriculture 8. Consumer Servrces P O Box CH-693

6700 Tallahassee FL 323146700

1GA Secuntres & Busrness Regulations 2 Martaln Luther King 991 CH-2158

Jr Dr .SE Suite 802 West Tower Atlanta GA 303341 91

IL Attorney General Charitable Compliance Section 100 West 9 01018964Randolph 3rd Floor Chicago IL 60601-3175

1KS Kansas Secretary of State First Floor, Memonal Hall 999 281-411-9

120 SW 10th Avenue Topeka KS 66612-15941

KY Attorney General DIVISlon of Consumer Protection 1024 991 714Capitol Center Drive Frankfort KY 40601-8204

Monday, October I3. 2003Page I of3

RegistrationS'mn' lgmu‘t' RegistrationDiltt’ ,Iii/ornmrimi Number

1991MA Attorney General DiViSion of Public Charities 1 Ashburton 023519Place Room 1413 Boston MA 02108

1991MD Secretary of State Charitable DIVISIOI‘I State House 4986Annapolis MD 21401

1991ME Charitable Solicnations Department of ProfeSSional 8. Fin C0966Reg 35 State Station Augusta ME 02108

0MI Department of Consumer 8 Industry Serwce Bureau of 900236ICommerical Serwces Corporation DIVlSlon PO Box 30481Lansmg MI 48909—7981

1991Mt Attorney General Charitable Trust Section P O Box 30214 MIC823470Lansmg MI 48909

1991MN Office Of Attorney General. Charitable DiViSion Swte 1200, None A35ignedNCL Tower 445 Minnesota Street St Paul MN55101-2130

1991MS Secretary of State PO Box 136 Jackson MS 39205 C-1097

1991NC Department of the Secretary of State Solicnation Licensing SL000934Section Box 29622 Raleigh NC 27626-0622” 1999

ND Secretary of State Licensmg DIVISton 600 E Boulevard 3453100Ave Dept 108 Bismarck ND 58505-0500

2 1999ND Secretary of State Annual Report 14.004Processmg Center PO Box 5513 Bismarck ND 58506—5513

1991NH Dept Of Justice, Charitable Trust Unit 33 Capitol Street 11905Concord NH 03301—6397

1991NJ N J DiViSion of Consumer Affairs, Charities Regulation CH0387800Section P O Box 45021 Newark NJ 07101

1999NM Attorney General Charitable Org Registry 111 Lomas None A55igned

Blvd NW SUite 300 Albuquerque NM 87102

1991NY Attorney General NYS Department of Law 120 Broadway 043121New York NY 10271

1991OH Ohio Attorney General Charitable Law Section 101 East None As5igned

Town Street 4th Floor Columbus OH 43215-51481991

OK Secretary of State 2300 North Lincoln Blvd Oklahoma City None A55ignedCK 73105

2000OR Department of Justice Charitable ActIVIties Section 1515 28225

SW 5th Avenue SUIte 410 Portland OR 97201-5451

1991PA Bureau of Charitable Organizations 207 North Office 5506Budding Hamsburg PA 17120-0103

1991R! Department of Busrness Reg Charitable Organization None A55igned

Section 233 Richmond Street. Suite 232 Prowdence RI02903-4232

P 2 3llimilin'. October I}. 2003 age of

RegistrationState Agency Date Registration

Information Number

. . 1991SC Secretary of State Dstron of Public Chantles PO. Box 273411350 Columbia SC 29211

1991SC Secretary of State DIVIslon of Public Chantles P O Box 2734

11350 Columbia SC 29211

. . . 1991TN Tennessee Drvrsron of Charitable Solucntatlons 312 Eighth 1049Ave. North. 8th Floor William R. Snodgrass TowerNashvrlle TN 37243

1991UT Dmsron of Consumer Protection 160 East 300 02026

South SM Box 146704 Salt Lake City UT 84114-6704

1991VA Virginia Department of Agnculture 8. Consumer Servrces None Assrgned

P O. Box 526 Richmond VA 23218-05261991

WA Secretary of State Chantles Dwusron P.O Box 40234 5743Olympia WA 98504

. 1991WI Department of Regulation 8. Licensmg Chantable Org P.O. 903-800

Box 8935 Madison WI 53708-89351991

WI Department of Regulation & Licensing Chantable Org P 0 903Box 8935 Madison WI 53708-8935

1991WV Secretary of State Office Bunldmg 1, Surte 157-K None Assugned

1900 Kanawha Blvd East Charleston WV 25305-0770

Types ofSoliciations Conducted: Mail, Corporate and FoundationGranm ALL SOLICITA TIONS ARE ONGOING,

Thursday. November [3. 2003Page 3 of3

' CNGA National Governors Association

'23-7391796 Federal Statements

' FYE: 6/30/2004

Statement 14 - Form 990l Part VIII - Relationship of Activities

Line No. Description

93a The Employment and Vocational Training (EVT) programprovides information analysis and state service activitiesrelated to a broad range of workforce development policyand operational issues. Specific areas of focus are:state workforce development policy initatives; stateadministration of WIA, vocational education, and relatedemployment and training programs; the financing of theunemployment insurance system; the structure and operationof the employment services; and the relationship of thesesystems to economic development, education, income supportand social service programs.

93b Holding conferences at which research and best practicesare discussed is an integral part of the Center's purpose.

103b Honoraria received by staff for speaking at the meetingsof other organizations.

103c Reimbursements received for meetings, conference calls,etc.

103d Reimbursements received for exempt function expenses.

14

‘ pNGA National Governors Association

2317'301796 Federal Statements

' FYE: 6/30/2004

Statement 15 - Sched_ule AI Part III. Line 2_d - PaLvment of Compensation I Reimbursement of

Q2

The employees listed in Schedule A, Part I and the officers and keyemployee listed in Form 990, Part V are employed by the National GovernorsAssociation. The officers and employees carry out assigned duties onbehalf of National Governors Association Center for Best Practices andtheir time is allocated accordingly.

15

' ’CNGA National Governors Association

‘ 23-7391796 Federal Statements

FYE: 6/30/2004

Statement 16 - Schedule AJflrt lV-A_,_Line g - Other Income

Description 2002 2001 2000 1999

Reimb. — Exempt Function Expense $ 136,605 $ 160,064 $ 131,650 $ 129,025Reimb. - Program Expenses 18,676 4,102Miscellaneous 7,772 2,187 5,053 7,049

Total $ 163,053 $ 162,251 $ 136,703 $ 140,176

16

Ol

I I 0

Form(December 2000)Department at the Treasurylntemal Revenue Servrce

Application for Extension of Time To File an

Exempt Organization Return

> File a separate application for each return

OMB No 1545-1709

0 If you are filing for an Automatic 3-Month Extension, complete only Part I and check this box . . . . . . >o if you are filing for an Additional (not automatic) 3-Month Extension, complete only Part II (on page 2 of this form).Note: Do not complete Part II unless you have already been granted an automatic 3-month extension on a previously filedForm 8868.

Automatic 3-Month Extension of Time—Only submit original (no copies needed)Note: Form 990-T corporations requesting an automatic 6-month extenSIon—check this box and complete Part I only . P C]All other corporations (including Form 990—C filers) must use Form 7004 to request an extension of time to file income taxreturns. Partnerships, REM/Cs and trusts must use Form 8736 to request an extension of time to file Form 1065, 1066, or 1041.

Type or Name Of Exempt organization Employer identification numberprim National Governors Association Center for Best Practices 23 5 7391796File b the Number. street, and room or Suite no. If a PO. box, see Instructions“"9 3‘9 '°' 444 N. Capitol Street, NW, Suite 267filing yourmum see City, town or post office, state. and ZIP code For a foreign address, see instructions.

Washington, DC 20001-1 512instructions

Check type of return to be filed (file a separate application for each return):

Form 990 Ci Form 990-T (corporation)El Form 990-BL El Form 990-T (sec. 401(a) or 408(a) trust)[1 Form 990-EZ El Form 990-T (trust other than above) [1 Form 6069El Form 990-PF [3 Form 1041-A El Form 8870

0 If the organization does not have an office or place of busmess in the United States, check this box . . . > Do If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) . If this isfor the whole group, check this box > [:I . If it is for part of the group, check this box > I] and attach a list with thenames and Ele of all members the extension will cover.

1 I request an automatic 3-month (6-month, for 990-T corporation) exten5ion of time until ..................... ..to file the exempt organization return for the organization named above. The extenSion is for the organization's return for:> [:1 calendar year 20 or> [2 tax year beginning .t’.‘.‘!¥._1....................... .. , 209?, and ending H.993? ...................... .. , 20.9.4.

El Form 4720El Form 5227

February 15 20 95

2 If this tax year is for less than 12 months, check reason: El Initial return [:1 Final return El Change in accounting period

3a If this application is for Form 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax, less anynonrefundable credits. See instructions

b If this application is for Form 990-PF or 990-1’, enter any refundable credits and estimated tax paymentsmade. Include any prior year overpayment allowed as a credit . . . . . . . . 5

c Balance Due. Subtract line 3b from line 3a. Include your payment with this form, or. if required. depositWith FTD coupon or, if reqwred, by using EFTPS (Electronic Federal Tax Payment System). Seeinstructions

Signature and Verificationed this form, including accompanying schedules and statements, and to the best of my knowledge and belief.d to prepare this form

Dale ’ It [IO/0‘1Forin 8868((12-2000)

Under penalties of peijury, I declare that I have e .it is true. correct. and complete, and that I am .

Signature > ‘ . (6 _ we > Executive Director

For Papenivork Reduction Act Notice, see Instruction Cat No 27916D