BIENNIAL REPORT
2009–2011
FINANCE AND LEGAL AFFAIRS
Financial Matters:
The Committee recommended a proposal—which was approved by the
Board— to raise candidate service fees by a three-year average of the Consumer Price Index for
Services (CPI-S) rather than the previous method of using the annual CPI-S, which was LSAC’s
practice since 2004. The committee reviewed the FY2011 budget and recommended its approval
by the Board. The committee began a “cost exercise” to try to estimate the revenues and
expenses from the many activities of LSAC.
Legal Matters:
The Committee continued to monitor a number of legal issues, including LSAC’s
data-release policy, data security and privacy issues, test-taker policies, intellectual property, and a
review of IRS Form 990.
The Chairs of the Audit Committee, Misconduct and Irregularities Subcommittee, and Investment
Policy Oversight Group met with the Finance and Legal Affairs Committee and provided updates
on each group’s activities.