2023-05-12T22:47:26-05:00 2022-06-30 910189318 MOSS ADAMS LLP 4747 EXECUTIVE DR SUITE 1300 SAN DIEGO CA 92121 990 2021-07-01 900171867 NORTHCENTRAL UNIVERSITY NORT 8586428100 9388 LIGHTWAVE AVE SAN DIEGO CA 92123 DAVE C LAWRENCE EXEC VP, ADMIN, FINANCE 8586428100 2023-05-10 1 DAVE LAWRENCE 999009999 PATRICIA J MAYER P00188643 8586271400 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z JAMES BILLINGS 9388 LIGHTWAVE AVE SAN DIEGO CA 92123 155406788 0 X WWW.NCU.EDU X 2004 CA THE ORGANIZATION IS A POST-SECONDARY LEVEL EDUCATIONAL INSTITUTION. 19 18 816 20 0 0 1096149 395928 162372366 154951146 0 -58779 39033 46318 163507548 155334613 17132407 17788657 0 0 66272635 33363426 0 0 37637 74992677 118405684 158397719 169557767 5109829 -14223154 90871209 54917275 15895421 21973591 74975788 32943684 X NORTHCENTRAL UNIVERSITY EDUCATES STUDENTS THROUGH ACCESS TO INCLUSIVE, PERSONALIZED, AND INNOVATIVE LEARNING-CENTERED EXPERIENCES. WE SUPPORT EVERY STUDENT IN BECOMING LIFE-LONG LEARNERS AND PROMOTE THEIR ABILITY TO MAKE MEANINGFUL CONTRIBUTIONS TO THEIR PERSONAL AND PROFESSIONAL COMMUNITIES. 0 0 130743064 17788657 154951146 PROVIDE EDUCATION AND TRAINING TO PROFESSIONALS LOOKING TO ACHIEVE ACADEMICALLY, PROFESSIONALLY AND BECOME VALUABLE CONTRIBUTORS TO THEIR COMMUNITIES AND WITHIN THEIR PROFESSIONS. 130743064 1 1 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 1 0 0 1 0 1 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 36 0 1 816 1 0 0 0 0 0 0 0 0 0 0 0 0 X 19 18 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X MICHELLE BELLO SR VP ADMIN FINANCE 8586428636 9388 LIGHTWAVE AVE SAN DIEGO CA 92123 ANA GOMEZ CHAPMAN TRUSTEE (AS OF 10/21) 3.00 X 0 0 0 CARLOS RODRIGUEZ TRUSTEE 3.00 X 0 0 0 DAN PITTARD TRUSTEE 3.00 X 0 0 0 DR E LEE RICE TRUSTEE, VICE CHAIR 3.00 X X 0 0 0 DR ERLINDA MARTINEZ TRUSTEE 3.00 X 0 0 0 DR MICHAEL CUNNINGHAM CHANCELLOR, TRUSTEE 3.00 X X 0 0 0 HAROLD GREENBERG TRUSTEE 3.00 X 0 0 0 HIEP QUACH TRUSTEE 3.00 X 0 0 0 JEANNE CONNELLY TRUSTEE 3.00 X 0 0 0 JOANNE PASTULA TRUSTEE 3.00 X 0 0 0 KIM FOLSOM TRUSTEE 3.00 X 0 0 0 LEE WILLS-IRVINE TRUSTEE (AS OF 10/21) 3.00 X 0 0 0 MICHAEL R MCGILL TRUSTEE, CHAIR 3.00 X X 0 0 0 RICHARD CHISHOLM TRUSTEE 3.00 X 0 0 0 RUTHANN HEINRICH TRUSTEE 3.00 X 0 0 0 STACY ALLISON TRUSTEE 3.00 X 0 0 0 TAHJAR ROAMARTINEZ TRUSTEE (AS OF 10/21) 3.00 X 0 0 0 THOMAS PAGE TRUSTEE (THRU 10/21) 3.00 X 0 0 0 THOMAS TOPUZES TRUSTEE, SECRETARY 3.00 X X 0 0 0 TOM CLEVINGER TRUSTEE 3.00 X 0 0 0 WH KNIGHT JR TRUSTEE (THRU 10/21) 3.00 X 0 0 0 DAVID HARPOOL THRU 1122 PRESIDENT 45.00 X 528314 0 31743 JAMIE NICKEL CFO 45.00 X 173164 0 10711 DAVE C LAWRENCE EXEC VP, ADMIN, FINANCE 3.00 X 0 0 0 MICHELLE BELLO SR VP, ADMIN, FINANCE 3.00 X 0 0 0 JOHN LANEAR PROVOST (THRU 7/1/21) 45.00 X 560704 0 10287 COLIN MARLAIRE SR. VICE PRESIDENT, ACADEMIC AFFAIRS 45.00 X 194809 0 5803 ROBERT SAPP DEAN, SCHOOL OF TECHNOLOGY 45.00 X 189745 0 4461 JAMES BILLINGS THRU 1122 DEAN, SCHOOL OF SOCIAL AND 45.00 X 178569 0 21198 ANDREW RIGGLE DEAN, SCHOOL OF EDUCATION 45.00 X 175586 0 10733 LISA HUTTON DEAN, SCHOOL OF LAW 45.00 X 168376 0 17751 2169267 0 112687 36 0 1 0 NATIONAL EDUCATION PARTNERS INC 8667 E HARTFORD DR STE 100 SCOTTSDALE AZ 85255 ADMIN BACK OFFICE AND STUDENT SUPPORT 65817533 SYSTEM MANAGEMENT GROUP 9388 LIGHTWAVE AVE SAN DIEGO CA 92123 ADMINISTRATIVE AND BACK OFFICE SERVICES 29217773 OGLETREE DEAKINS 50 INTERNATINAL DRIVE STE 300 GREENVILLE SC 29615 ATTORNEY 123938 3 280962 114966 395928 EDUCATIONAL SERVICES 611310 154951146 154951146 154951146 58779 -58779 -58779 -58779 30051 13396 16655 16655 29663 29663 29663 155334613 154951146 0 -12461 17687555 17687555 101102 101102 1239989 463391 776598 27457084 26235768 1183679 37637 551221 523068 28153 2273678 2089129 184549 1841454 1741866 99588 170271 170271 15724170 11367559 4356611 38179744 38126561 53183 989724 656015 333709 393039 261735 131304 80367 80367 1195577 1123787 71790 555970 449226 106744 82262 82262 44301912 20142552 24159360 9406132 3345568 6060564 15034 15034 BAD DEBT 4888830 4112176 776654 COURSE MATERIALS AND LI 2422652 2235639 187013 169557767 130743064 38777066 37637 18959654 12343133 11384381 16381658 1686546 1743875 13047404 7516128 5683867 5531276 52547250 18917333 609511 0 90871209 54917275 2885665 2691331 12179266 12419354 830490 6862906 15895421 21973591 X 74975788 32943684 74975788 32943684 90871209 54917275 X -14223154 -27808950 X 0 1 X 1 1 1 X 68960781 1125239 1096154 395928 71578102 60901757 144120950 162372366 154951146 522346219 129862538 145246189 163468520 155347074 593924321 68960781 18200 9100 68988081 0 68960781 18200 9100 68988081 524936240 28752 39028 59714 127494 129862538 145274941 163507548 155406788 594051815 0.88370 0.84270 0.00000 0.00040 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2019 AMOUNT: $ 28,752. 2020 AMOUNT: $ 39,028. 2021 AMOUNT: $ 59,714. PART I: NORTHCENTRAL UNIVERSITY HAS REQUESTED RECLASSIFICATION OF PUBLIC CHARITY STATUS TO A SCHOOL AS DEFINED IN SECTION 170(B)(1)(A)(III). RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 35483 15630 19853 5854896 3195177 2659719 7157025 4305321 2851704 5531276 PROGRAM RELATED INVESTMENTS 18917333 F 18917333 STUDENT CREDIT BALANCES 269085 TITLE IV STUDENT CREDIT BALANCES 837507 DUE TO AFFILIATES 5756314 6862906 X 137337169 0 137337169 17997444 17997444 155334613 179369273 27881125 27881125 151488148 18069619 18069619 169557767 PART X, LINE 2: NORTHCENTRAL IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND RELATED STATE PROVISIONS AND FROM STATE INCOME TAXES UNDER RELEVANT PROVISIONS OF STATE LAW. ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN REFLECTED IN THE ACCOMPANYING FINANCIAL STATEMENTS. INCOME TAX BENEFITS AND/OR LIABILITIES ARE RECOGNIZED FOR INCOME TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, ONLY WHEN IT IS DETERMINED THAT THE INCOME TAX POSITION WILL MORE-LIKELY-THAN-NOT BE SUSTAINED UPON EXAMINATION BY TAXING AUTHORITIES. NORTHCENTRAL HAS ANALYZED THE TAX POSITIONS TAKEN IN ITS FILINGS. NORTHCENTRAL BELIEVES THAT ITS INCOME TAX FILING POSITIONS WILL BE SUSTAINED UPON EXAMINATION AND DOES NOT ANTICIPATE ANY ADJUSTMENTS THAT WOULD RESULT IN A MATERIAL ADVERSE EFFECT ON ITS FINANCIAL CONDITION, CHANGES IN ITS NET ASSETS, OR CASH FLOWS. ACCORDINGLY, NORTHCENTRAL HAS NOT RECORDED ANY RESERVES, OR RELATED ACCRUALS FOR INTEREST AND PENALTIES FOR UNCERTAIN INCOME TAX POSITIONS AT JUNE 30, 2022 AND 2021. PART XI, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS 17,788,657. GAIN/LOSS ON DISPOSAL OF FIXED ASSETS -58,779. COGS -13,396. CONTRIBUTION FROM AFFILIATE 280,962. PART XII, LINE 2D - OTHER ADJUSTMENTS: GAIN/LOSS ON DISOSAL OF FIXED ASSETS 58,779. COGS 13,396. IMPAIRMENT LOSS 27,808,950. PART XII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIPS 17,788,657. CONTRIBUTION FROM AFFILIATE 280,962. 1 EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 0 0 PROGRAM SERVICES PROGRAM MANAGEMENT AND INSTRUCTION 240824 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 SENDING AGENTS OF THE ORGANIZATION TO ATTEND AND SPEAK AT SEMINARS AND CONFERENCES 3798 CENTRAL AMERICA AND THE CARIBBEAN 0 0 SCHOLARSHIPS 17898 EAST ASIA AND THE PACIFIC 0 0 SCHOLARSHIPS 10402 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 0 SCHOLARSHIPS 9669 MIDDLE EAST AND NORTH AFRICA 0 0 SCHOLARSHIPS 411 NORTH AMERICA (CANADA AND MEXICO) 0 0 SCHOLARSHIPS 39817 SUB-SAHARAN AFRICA 0 0 SCHOLARSHIPS 5685 SOUTH AMERICA 0 0 SCHOLARSHIPS 17220 0 0 0 0 0 0 328504 17220 345724 FINANCIAL AID TO STUDENTS NORTH AMERICA (CANADA AND MEXICO) 14 SCHOLARSHIPS 39817 TUITION CHARGE REDUCTION FMV FINANCIAL AID TO STUDENTS CENTRAL AMERICA AND THE CARIBBEAN 8 SCHOLARSHIPS 17898 TUITION CHARGE REDUCTION FMV FINANCIAL AID TO STUDENTS EUROPE (INCLUDING ICELAND AND GREENLAND) 5 SCHOLARSHIPS 9669 TUITION CHARGE REDUCTION FMV FINANCIAL AID TO STUDENTS SUB-SAHARAN AFRICA 2 SCHOLARSHIPS 5685 TUITION CHARGE REDUCTION FMV FINANCIAL AID TO STUDENTS MIDDLE EAST AND NORTH AFRICA 1 SCHOLARSHIPS 411 TUITION CHARGE REDUCTION FMV FINANCIAL AID TO STUDENTS EAST ASIA AND THE PACIFIC 9 SCHOLARSHIPS 10402 TUITION CHARGE REDUCTION FMV FINANCIAL AID TO STUDENTS SOUTH AMERICA 1 SCHOLARSHIPS 17220 TUITION CHARGE REDUCTION FMV 0 0 0 0 0 0 PART I, LINE 2: NORTHCENTRAL UNIVERSITY IDENTIFIES ELIGIBLE GRANTEES RELATED TO EDUCATIONAL AND COMMUNITY PURPOSES. GRANTEES ARE MONITORED AS APPROPRIATE THROUGH PERIODIC REPORTS AND SITE INSPECTIONS. PART I, LINE 3: ACCRUAL BASIS PART III ACCOUNTING METHOD: PART III, (ACCOUNTING METHOD): ACCRUAL BASIS 1 FINANCIAL AID TO STUDENTS 9801 17687555 FMV TUTION CHARGES ARE REDUCED BY THE AMOUNT OF THE INDIVIDUAL SCHOLARSHIP OR DISCOUNT AWARDED TO STUDENTS PART I, LINE 2: NORTHCENTRAL UNIVERSITY IDENTIFIES ELIGIBLE GRANTEES RELATED TO EDUCATIONAL AND COMMUNITY PURPOSES. GRANTEES ARE MONITORED AS APPROPRIATE THROUGH PERIODIC REPORTS AND SITE INSPECTIONS. X 1 1 X X X 1 0 0 0 0 0 0 1 0 JOHN LANEAR PROVOST (THRU 7/1/21) 221704 0 0 0 339000 0 6651 0 3636 0 570991 0 0 0 DAVID HARPOOL THRU 1122 PRESIDENT 437358 0 45956 0 45000 0 13000 0 18743 0 560057 0 0 0 COLIN MARLAIRE SR. VICE PRESIDENT, ACADEMIC AFFAIRS 177448 0 17361 0 0 0 5324 0 479 0 200612 0 0 0 JAMES BILLINGS THRU 1122 DEAN, SCHOOL OF SOCIAL AND 162883 0 15686 0 0 0 3485 0 17713 0 199767 0 0 0 ROBERT SAPP DEAN, SCHOOL OF TECHNOLOGY 172747 0 16998 0 0 0 3982 0 479 0 194206 0 0 0 ANDREW RIGGLE DEAN, SCHOOL OF EDUCATION 160490 0 15096 0 0 0 4435 0 6298 0 186319 0 0 0 LISA HUTTON DEAN, SCHOOL OF LAW 153276 0 15100 0 0 0 0 0 17751 0 186127 0 0 0 JAMIE NICKEL CFO 157423 0 15741 0 0 0 4403 0 6308 0 183875 0 0 0 PART I, LINE 1A UNDER DAVID HARPOOL'S EMPLOYMENT CONTRACT, HE WAS PAID ADDITIONAL PAYROLL PAYMENTS FOR HOUSING ALLOWANCE. SUCH AMOUNT IS INCLUDED AS TAXABLE COMPENSATION. PART I, LINE 4A: JOHN LANEAR, KEY EMPLOYEE, RECEIVED SEVERANCE OF $339,000 DURING 2021. PART I, LINE 7: NON-FIXED PAYMENTS RECEIVED BY LISTED PERSONS ON SCHEDULE J, PART II, REPRESENT DISCRETIONARY BONUSES NOT BASED ON A FORMULA SPECIFIED IN CONTRACTS. FORM 990, PART VI, SECTION B, LINE 11B THE DRAFT FORM 990 WAS DISTRIBUTED TO SENIOR MANAGEMENT AND THE AUDIT COMMITTEE. THE FINAL VERSION OF FORM 990 WAS DISTRIBUTED FOR REVIEW BEFORE FILING TO THE TRUSTEES BY EMAIL. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES HAS ANNUALLY REVIEWED AND APPROVED (BY A MAJORITY OF DISINTERESTED TRUSTEES) THE BUSINESS TRANSACTIONS WITH TRUSTEES OR THEIR AFFILIATED PROFESSIONAL SERVICE FIRMS. SUCH REVIEWS INCLUDE CONSIDERATION OF DATA ON COMPARABLE SERVICE PROVIDERS COLLECTED BY UNIVERSITY COUNSEL. THE INTERESTED TRUSTEES WERE EXCUSED FROM BOARD SESSIONS DURING WHICH THOSE BUSINESS TRANSACTIONS WERE DISCUSSED AND DID NOT PARTICIPATE IN VOTING ON SUCH TRANSACTIONS. QUESTIONNAIRES ARE DISTRIBUTED EVERY JANUARY. COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY IS MONITORED BY UNIVERSITY COUNSEL AND WAS REVIEWED BY THE BOARD DURING THE YEAR ENDED JUNE 30, 2022. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION OF THE PRESIDENT OF THE UNIVERSITY IS REVIEWED BY THE BOARD AT THE TIME OF HIRING AND AS NECESSARY THEREAFTER. COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS REVIEWED BY THE HUMAN CAPITAL AND COMPENSATION COMMITEE. COMPENSATION IS DETERMINED WITH REGARD TO COMPENSATION PAID TO SENIOR EXECUTIVES OF COMPARABLE NON-PROFIT AND PROPRIETARY INSTITUTIONS IN EDUCATION AND OTHER FIELDS. THE PROCESS IS DOCUMENTED AND WAS LAST COMPLETED IN JUNE 2022. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES IT GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST VIA EMAIL. FORM 990, PART XI, LINE 9: IMPAIREMENT LOSS -27,808,950. OTHER INFORMATION: ON JULY 30, 2021, NORTHCENTRAL'S BOARD OF TRUSTEES APPROVED A PLAN OF MERGER BETWEEN NORTHCENTRAL AND NATIONAL UNIVERSITY, WITH NATIONAL UNIVERSITY TO BE THE SURVIVING ENTITY. THE EFFECTIVE DATE OF THE MERGER IS EXPECTED TO BE NOVEMBER 1, 2022. THE OPERATIONS OF NORTHCENTRAL WILL CONTINUE UNDER THE NATIONAL UNIVERSITY NAME. CITY UNIVERSITY OF SEATTLE 521 WALL STREET NO 100 SEATTLE WA 98121 237421224 EDUCATIONAL INSTITUTION WA 501(C)(3) LINE 2 N/A 1 JOHN F KENNEDY UNIVERSITY 9388 LIGHTWAVE AVE SAN DIEGO CA 92123 941610694 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 2 N/A 1 NATIONAL UNIVERSITY 9388 LIGHTWAVE AVE SAN DIEGO CA 92123 237172306 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 2 N/A 1 NATIONAL UNIVERSITY INTERNATIONAL INC 9388 LIGHTWAVE AVE SAN DIEGO CA 92123 453997908 INACTIVE CA 501(C)(3) LINE 2 N/A 1 NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL 9388 LIGHTWAVE AVE SAN DIEGO CA 92123 562438569 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 10 N/A 1 SPECTRUM PACIFIC LEARNING INC 9388 LIGHTWAVE AVE SAN DIEGO CA 92123 453996682 INACTIVE CA 501(C)(3) LINE 10 N/A 1 SYSTEM MANAGEMENT GROUP 9388 LIGHTWAVE AVE SAN DIEGO CA 92123 201269904 PROVIDE ADMINISTRATIVE SERVICES TO AFFILIATED INSTITUTIONS CA 501 (C)(3) LINE 12B, II N/A 1 NATIONAL EDUCATION PARTNERS INC 8667 E HARTFORD DR STE 100 SCOTTSDALE AZ 85255 860930587 SERVICE PROVIDER AZ SYSTEM MANAGEMENT GROUP C 0 0 0 1 0 1 0 0 0 0 0 0 0 1 0 0 1 0 1 0 NATIONAL UNIVERSITY R 4959840 CASH NATIONAL UNIVERSITY P 5808232 CASH NATIONAL UNIVERSITY M 814120 CASH NATIONAL UNIVERSITY E 814120 CASH NATIONAL UNIVERSITY C 280962 CASH SYSTEM MANAGEMENT GROUP M 71556250 CASH SYSTEM MANAGEMENT GROUP E 4942194 CASH NATIONAL EDUCATION PARTNERS M 26082916 CASH SCHEDULE R, RELATED ORGANIZATIONS: THE NUS IS AN ALLIANCE OF EDUCATIONAL INSTITUTIONS, SERVING DIVERSE LEARNERS FROM HIGH SCHOOL TO DOCTORAL PROGRAMS. THE NUS INCLUDES 6 INDEPENDENT NON-PROFIT ORGANIZATIONS EXEMPT UNDER IRC SECTION 501(C)(3): NATIONAL UNIVERSITY, NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL (WHICH CEASED OPERATIONS IN JUNE 2022), NORTHCENTRAL UNIVERSITY, JOHN F. KENNEDY UNIVERSITY (WHICH CEASED OPERATIONS IN DECEMBER 2020), CITY UNIVERSITY OF SEATTLE, AND SYSTEM MANAGEMENT GROUP (SMG). SMG IS A SUPPORTING ORGANIZATION EXEMPT UNDER IRC SECTION 509(A)(3) WHICH PROVIDES SUPPORT AND SERVICES TO ITS TAX-EXEMPT AFFILIATES IN THE NUS. SPECTRUM PACIFIC LEARNING COMPANY LLC AND NATIONAL UNIVERSITY INTERNATIONAL LLC ARE WHOLLY-OWNED BY NATIONAL UNIVERSITY, AND ARE TREATED AS DISREGARDED ENTITIES FOR TAX PURPOSES. THE BOARD OF TRUSTEES OF EACH NUS AFFILIATE GOVERNS EACH AFFILIATE INDEPENDENTLY. THE BOARD OF TRUSTEES HAS NO AUTHORITY TO REMOVE, REPLACE OR APPOINT A MAJORITY OF THE GOVERNING BODY OF THOSE OTHER AFFILIATES. THE BOARD OF TRUSTEES OF EACH AFFILIATE, ACTING IN ITS INDEPENDENT CAPACITY, PERIODICALLY APPOINTS ITS OWN NEW TRUSTEES. THE BOARD OF TRUSTEES HAS A MAJORITY OVERLAPPING COMPOSITION BETWEEN EACH AFFILIATE OF THE NUS. IN ADDITION, THE NUS AUDIT FIRM PREPARES A SET OF "COMBINED NOT "CONSOLIDATED" AUDITED FINANCIAL STATEMENTS THAT INCLUDE THE EIGHT INDEPENDENT NON-PROFIT ORGANIZATIONS EXEMPT UNDER IRC SECTION 501(C)(3): NATIONAL UNIVERSITY, NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL, NORTHCENTRAL UNIVERSITY, JOHN F. KENNEDY UNIVERSITY, CITY UNIVERSITY OF SEATTLE, AND SYSTEM MANAGEMENT GROUP.