2023-05-12T22:46:52-05:00 2022-06-30 910189318 MOSS ADAMS LLP 4747 EXECUTIVE DR SUITE 1300 SAN DIEGO CA 92121 990 2021-07-01 201269904 SYSTEM MANAGEMENT GROUP SYST 8586428100 9388 LIGHTWAVE AVENUE SAN DIEGO CA 92123 DAVE C LAWRENCE EXEC VP, ADMIN, FINANCE 8586428100 2023-05-12 1 DAVE LAWRENCE 999009999 PATRICIA J MAYER P00188643 8586271400 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z DAVE C LAWRENCE 9388 LIGHTWAVE AVENUE SAN DIEGO CA 92123 142469732 0 X WWW.NUSYSTEM.ORG X 2005 CA PROVIDE ADMINISTRATIVE SERVICES TO THE ORGANIZATION'S AFFILIATED INSTITUTIONS: THE NATIONAL UNIVERSITY SYSTEM ("NUS"). 19 18 300 20 0 0 15967905 28547216 50042532 95089050 2535770 3221344 52977 100000 68599184 126957610 1196773 891217 0 0 26390339 59300443 0 0 0 45413917 81425132 73001029 141616792 -4401845 -14659182 174665064 124033654 178723363 190236161 -4058299 -66202507 X PROVIDE ADMINISTRATIVE SERVICES TO THE ORGANIZATION'S AFFILIATED INSTITUTIONS: THE NATIONAL UNIVERSITY SYSTEM ("NUS"). 0 1 133196012 891217 95089050 PROVIDE SUPPORT AND SERVICES TO THE ORGANIZATIONS IN THE NATIONAL UNIVERSITY SYSTEM ("NUS"). 133196012 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 154 0 1 300 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 AVENUE 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 3.00 X 0 0 0 DR ERLINDA MARTINEZ TRUSTEE 3.00 X 0 0 0 DR MICHAEL CUNNINGHAM CHANCELLOR, TRUSTEE 45.00 X X 886235 0 29297 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 3.00 X 0 0 0 RICHARD CHISHOLM TREASURER, TRUSTEE 3.00 X X 0 0 0 RUTHANN HEINRICH TRUSTEE, CHAIR 3.00 X 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 SECRETARY, TRUSTEE 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 DAVE C LAWRENCE EXEC VP, ADMIN, FINANCE 45.00 X 326237 0 46429 MICHELLE BELLO SR VP, ADMIN, FINANCE 45.00 X 310590 0 39964 CHRIS GRAHAM PRES, WORKFORCE EDUCATION 45.00 X 256664 0 27307 SANDI BEST VP, HR 45.00 X 247520 0 37914 SCOTT PAGE SR VP, SANFORD PROGRAMS 45.00 X 264817 0 40375 TOM STEWART VC, SJEDI 45.00 X 372072 0 42733 CHRIS RUSSO VP, STRATEGY 45.00 X 277485 0 45717 MICHELLE WEISE VP, INNOVATION 45.00 X 229502 0 0 KAREN WHITNEY CHIEF TRANSFORMATION OFFICER 45.00 X 180355 0 23506 JOE PATTERSON VP, WES PARTNERSHIP DEVELOPMENT 45.00 X 210315 0 36127 PABLO FABIAN IN HOUSE COUNSEL 45.00 X 186172 0 42186 MARTIN GALLARDO DIRECTOR, FACILITIES 45.00 X 156771 0 22938 MARK BAILEY WES, PUBLIC SAFETY 45.00 X 166420 0 31450 LINDA OLANDER DIRECTOR, EXECUTIVE SUPPORT AND SPECIAL PROJECTS 45.00 X 166377 0 21182 WILLIAM EDGELL GM MARKETING (THRU 5/21) 45.00 X 111925 0 11929 4349457 0 499054 53 1 1 0 NATIONAL EDUCATION PARTNERS INC 8667 E HARTFORD DR STE 100 SCOTTSDALE AZ 85255 SERVICES 5225314 ARTHUR J GALLAGHER & CO PO BOX 742886 LOS ANGELES CA 900742886 CONSULTANTS 1717891 ORACLE AMERICA INC PO BOX 44471 SAN FRANCISCO CA 941444471 CLOUD PLATFORM SERVICES 1542737 SIERRA-CEDAR INC PO BOX 402521 ATLANTA GA 30384 SOFTWARE HOSTING 1190848 LEARNING POLICY INSTITUTE 1530 PAGE MILL RD STE 200 PALO ALTO CA 94304 RESEARCH SERVICES 900000 56 28547033 183 28547216 PAYMENT FOR SUPPORT 900099 95072472 95072472 16578 16578 95089050 315547 315547 100000 0 100000 100000 100000 18405860 12059 15512122 0 2893738 12059 2905797 2905797 126957610 95089050 0 3321344 X 62664 62664 828553 828553 3931593 3931593 42173352 42173352 1894743 1894743 7722313 7722313 3578442 3578442 666905 666905 140315 140315 96253 96253 35600528 35600528 1100676 882795 217881 85426 5529 79897 7079308 7079308 7593880 7593880 1405146 1405146 1069078 1069078 7219529 7219529 6805664 6805664 2130984 2130984 EQUIPMENT MAINTENANCE 1667764 1667764 BANK FEES 1494997 1494997 7268679 7268679 141616792 133196012 8420780 0 6509045 9760615 3931343 6041895 5244589 3656462 1109255 1588127 56783180 44182895 89312032 0 2940000 57667065 14080209 4793057 174665064 124033654 6164375 11378050 65760818 65211166 106798170 103774232 0 9872713 178723363 190236161 X -4058300 -66202507 -4058300 -66202507 174665063 124033654 X -14659182 -5762640 -41722085 X 0 1 X 1 0 X X X 5 JOHN F KENNEDY UNIVERSITY 941610694 2 0 62664 0 NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL 562438569 10 0 0 0 NORTHCENTRAL UNIVERSITY 900171867 10 0 0 0 CITY UNIVERSITY OF SEATTLE 237421224 2 0 0 0 NATIONAL UNIVERSITY 237172306 2 0 0 0 5 62664 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2411595 1407584 1004011 2832994 2248878 584116 1588127 DUE TO AFFILIATES, NET 4097643 OPERATING LEASE LIABILITY 5775070 9872713 X PART X, LINE 2: SMG IS A NON-PROFIT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC) AND RELATED STATE PROVISIONS, AND AS SUCH, IS NOT SUBJECT TO FEDERAL AND STATE INCOME TAXES. ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN REFLECTED IN THE ACCOMPANYING FINANCIAL STATEMENTS. THE FINANCIAL STATEMENTS WILL REFLECT A TAX BENEFIT OR LIABILITY ONLY IF IT IS MORE-LIKELY-THAN-NOT THE TAX POSITION WOULD BE SUSTAINED IN A TAX EXAMINATION, WITH A TAX EXAMINATION BEING PRESUMED TO OCCUR. THE AMOUNT RECOGNIZED WILL BE THE LARGEST AMOUNT OF TAX BENEFIT OR LIABILITY THAT IS GREATER THAN 50% LIKELY OF BEING REALIZED ON EXAMINATION. FOR TAX POSITIONS NOT MEETING THE MORE-LIKELY-THAN-NOT TEST, NO TAX BENEFIT OR LIABILITY WOULD BE RECORDED. SMG AND NEP HAVE ANALYZED THEIR TAX POSITIONS TAKEN IN ITS FILINGS WITH THE INTERNAL REVENUE SERVICE AND VARIOUS STATE JURISDICTIONS. SMG AND NEP BELIEVE THAT THEIR INCOME TAX FILING POSITIONS WILL BE SUSTAINED UPON EXAMINATION AND DO NOT ANTICIPATE ANY ADJUSTMENTS THAT WOULD RESULT IN A MATERIAL ADVERSE EFFECT ON THE FINANCIAL CONDITION, CHANGES IN NET ASSETS, OR CASH FLOWS. ACCORDINGLY, NO RESERVES OR RELATED ACCRUALS FOR INTEREST AND PENALTIES FOR UNCERTAIN INCOME TAX POSITIONS HAVE BEEN RECORDED AT JUNE 30, 2022 AND 2021. 1 JOHN F KENNEDY UNIVERSITY 9388 LIGHTWAVE AVENUE SAN DIEGO CA 92123 941610694 501C3 62664 0 GENERAL SUPPORT 1 SANFORD PROGRAMS VARIOUS GRANTS 99 828553 PART I, LINE 2: SYSTEM MANAGEMENT GROUP 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 X 0 0 0 0 0 0 0 1 0 DR MICHAEL CUNNINGHAM CHANCELLOR, TRUSTEE 750485 0 75750 0 60000 0 19600 0 9697 0 915532 0 0 0 TOM STEWART VC, SJEDI 320712 0 31360 0 20000 0 15581 0 27152 0 414805 0 0 0 DAVE C LAWRENCE EXEC VP, ADMIN, FINANCE 294220 0 32017 0 0 0 19277 0 27152 0 372666 0 0 0 MICHELLE BELLO SR VP, ADMIN, FINANCE 280869 0 29721 0 0 0 19600 0 20364 0 350554 0 0 0 CHRIS RUSSO VP, STRATEGY 250485 0 27000 0 0 0 18565 0 27152 0 323202 0 0 0 SCOTT PAGE SR VP, SANFORD PROGRAMS 236910 0 27907 0 0 0 13223 0 27152 0 305192 0 0 0 SANDI BEST VP, HR 225331 0 22189 0 0 0 16023 0 21891 0 285434 0 0 0 CHRIS GRAHAM PRES, WORKFORCE EDUCATION 231485 0 25179 0 0 0 16883 0 10424 0 283971 0 0 0 JOE PATTERSON VP, WES PARTNERSHIP DEVELOPMENT 190365 0 19950 0 0 0 6939 0 29188 0 246442 0 0 0 MICHELLE WEISE VP, INNOVATION 204502 0 25000 0 0 0 0 0 0 0 229502 0 0 0 PABLO FABIAN IN HOUSE COUNSEL 173485 0 12687 0 0 0 12998 0 29188 0 228358 0 0 0 KAREN WHITNEY CHIEF TRANSFORMATION OFFICER 180355 0 0 0 0 0 10500 0 13006 0 203861 0 0 0 MARK BAILEY WES, PUBLIC SAFETY 166420 0 0 0 0 0 11624 0 19826 0 197870 0 0 0 LINDA OLANDER DIRECTOR, EXECUTIVE SUPPORT AND SPEC 166377 0 0 0 0 0 11584 0 9598 0 187559 0 0 0 MARTIN GALLARDO DIRECTOR, FACILITIES 156771 0 0 0 0 0 12514 0 10424 0 179709 0 0 0 WILLIAM EDGELL GM MARKETING (THRU 5/21) 111790 0 0 0 135 0 0 0 11929 0 123854 0 0 0 PART I, LINE 1A FIRST CLASS TRAVEL IS MADE AVAILABLE TO BOARD MEMBERS IF THE FLIGHT IS OVER 3 HOURS. THIS IS NOT INCLUDED AS TAXABLE INCOME TO SUCH BOARD MEMBERS IF UTILIZED. PART I, LINE 7 OFFICERS AND KEY EMPLOYEES ARE ELIGIBLE FOR BONUSES. BONUSES ARE AWARDED WITHIN A SPECIFIED RANGE IN THE DISCRETION OF THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES AND ARE BASED ON ACHIEVING GOALS. A CALIFORNIA MUNICIPAL FINANCE AUTHORITY 201563466 13048VGJ1 2019-02-21 67103172 ACQUISITION OF NATIONAL EDUCATION PARTNERS (FKA NORTHCENTRAL UNIVERSITY) 0 0 0 A 67103172 579403 66523768 2019 0 1 1 1 A 0 0 0 0 0 0 1 A 0 0 0 1 0 0 0 0 1 A 1 FORM 990, PART III, LINE 3 ON DECEMBER 31, 2021, NATIONAL EDUCATIONAL PARTNERS ('NEP") MERGED ITS OPERATIONS INTO SYSTEM MANAGEMENT GROUP ("SMG") AND NEP WAS DISSOLVED. NEP'S MERGE WITH AND INTO SMG WAS DONE IN ORDER TO MAXIMIZE OPERATIONAL EFFICIENCIES. THE FORM 990 PREPARED FOR SMG FOR THE YEAR ENDED JUNE 30, 2022 INCLUDE THE RESULTS OF SMG AND ACTIVITIES POST-MERGER. 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 ANUALLY 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'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G CONSULTING FEES: PROGRAM SERVICE EXPENSES 24,130,083. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 24,130,083. OTHER PROFESSIONAL FEES : PROGRAM SERVICE EXPENSES 11,470,445. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 11,470,445. FORM 990, PART XI, LINE 9: EQUITY EARNINGS IN AFFILIATE -12,483,810. EQUITY INVESTMENT IN AFFILIATE 742,260. IMPAIRMENT LOSS -29,980,535. NATIONAL UNIVERSITY 9388 LIGHTWAVE AVENUE SAN DIEGO CA 92123 237172306 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 2 N/A 1 NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL 9388 LIGHTWAVE AVENUE SAN DIEGO CA 92123 562438569 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 10 N/A 1 NORTHCENTRAL UNIVERSITY 9388 LIGHTWAVE AVENUE SAN DIEGO CA 92123 900171867 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 10 N/A 1 JOHN F KENNEDY UNIVERSITY 9388 LIGHTWAVE AVENUE SAN DIEGO CA 92123 941610694 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 2 N/A 1 NATIONAL UNIVERSITY ACADEMY 9388 LIGHTWAVE AVENUE SAN DIEGO CA 92123 352358696 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 2 N/A 1 SPECTRUM PACIFIC LEARNING INC 9388 LIGHTWAVE AVENUE SAN DIEGO CA 92123 453996682 INACTIVE CA 501(C)(3) LINE 10 N/A 1 NATIONAL UNIVERSITY INTERNATIONAL INC 9388 LIGHTWAVE AVENUE SAN DIEGO CA 92123 453997908 INACTIVE CA 501(C)(3) LINE 2 N/A 1 CITY UNIVERSITY OF SEATTLE 521 WALL STREET SEATTLE WA 98121 237421224 EDUCATIONAL INSTITUTION WA 501(C)(3) LINE 2 N/A 1 NATIONAL EDUCATION PARTNERS INC 8667 E HARTFORD DR STE 100 SCOTTSDALE AZ 85255 860930587 SERVICE PROVIDER AZ SYSTEM MANAGEMENT GROUP C 51012638 1.00000 1 0 1 1 1 1 0 0 0 0 0 0 1 0 1 1 1 1 1 1 CITY UNIVERSITY OF SEATTLE Q 1983386 CASH CITY UNIVERSITY OF SEATTLE L 1983396 CASH JOHN F KENNEDY UNIVERSITY B 62664 CASH JOHN F KENNEDY UNIVERSITY S 700000 CASH NATIONAL UNIVERSITY E 8915990 CASH NATIONAL UNIVERSITY E 57505000 CASH NATIONAL UNIVERSITY E 105400000 CASH NATIONAL UNIVERSITY L 39595938 CASH NATIONAL UNIVERSITY P 135015958 CASH NATIONAL UNIVERSITY C 28547033 CASH NATIONAL UNIVERSITY L 39595938 CASH NATIONAL UNIVERSITY R 46730265 CASH NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL L 145743 CASH NORTHCENTRAL UNIVERSITY L 71556250 CASH NORTHCENTRAL UNIVERSITY D 4942194 CASH SCHEDULE R, RELATED ORGANIZATIONS: NATIONAL UNIVERSITY SYSTEM 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.