2022-02-09T08:27:16-06:00 2021-06-30 BKD LLP 14241 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254 990 2020-07-01 742129255 Brazos Higher Education Service Corporation Inc % RICKY TURMAN EVP/COO/CFO BRAZ 2547530915 5609 Crosslake Pkwy Waco TX 76712 RICKY TURMAN EVP/COO/CFO 2547530915 2022-05-16 true Ricky Turman 999009999 Jeanette Verrelli P00742631 9727028262 2 2020 2022-09-23 18:48:47Z X RICKY TURMAN 5609 CROSSLAKE PKWY WACO TX 76712 13639401 false X WWW.STUDENTLOANS.COM X 1980 TX TO PROVIDE MANAGEMENT AND ADMINISTRATIVE SUPPORT FOR AFFILIATED STUDENT LOAN ENTITIES. 8 6 35 9 0 0 0 0 8111770 10682596 1299323 2411022 160918 207941 9572011 13301559 155606 129790 0 0 6587804 6647996 0 0 0 1050770 1489959 7794180 8267745 1777831 5033814 84191943 90646531 12575468 13422205 71616475 77224326 X TO PROVIDE MANAGEMENT AND ADMINISTRATIVE SUPPORT FOR AFFILIATED STUDENT LOAN ENTITIES. false true 6744178 129790 10890537 BRAZOS HIGHER EDUCATION SERVICE CORPORATION (BHESC) PROVIDES ADMINISTRATIVE AND MANAGEMENT SERVICES FOR AFFILIATED NON-PROFIT ENTITIES BY SERVING AS MASTER SERVICER/ADMINISTRATOR. THESE SERVICES INCLUDED ADMINISTERING STUDENT LOANS WITH OUTSTANDING PRINCIPAL IN EXCESS OF $2.7 BILLION UNDER THE FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP), HEAL, TERI, AND VARIOUS OTHER ALTERNATIVE LOAN PROGRAMS. 6744178 true false false true false false false false false false true true false true true true false true false false false false false false false false false true false true false false false false false false false false false false false false false true true true false false true 21 0 35 true false false false false false false false false false false false false X 8 6 false false false false false false false true true false false true true true true true true true true false X RICKY TURMAN EVPCOOCFO 2547530915 5609 CROSSLAKE PKWY WACO TX 76712 X THOMAS BEN LITLE President/CEO 29.0 11.0 X X 630234 0 67486 Ricky Turman EVP/COO/CFO 29.0 11.0 X X 576269 0 70564 Kelli Uttech SVP/General Counsel 30.0 10.0 X 324004 0 62677 Samuel Redden SVP/CIO 39.0 1.0 X 271419 0 62367 Andrew Ellis VP Human Resources 39.0 1.0 X 252763 0 57081 Randall Larson VP Special Projects 39.0 1.0 X 219125 0 55074 Justin Green Financial Services Director 40.0 0.0 X 221025 0 41558 John M Wright Business Analytics Director 40.0 0.0 X 200113 0 55230 Tammy Harralson VP/Controller 30.0 10.0 X 210638 0 40453 Darrell Brooks TREASURER 30.0 10.0 X 172811 0 43664 Sarah MacCarthy VP Compliance 40.0 0.0 X 175844 0 38225 Milicent Larson Executive Dir, Brazos Fdn 1.0 39.0 X 159478 0 47017 Debra Urias VP Customer Relations 40.0 0.0 X 164506 0 37169 Susan Davis Corporate Secretary 29.0 11.0 X 96534 0 28681 Vicky Smith Assistant Secretary 30.0 10.0 X 72447 0 25035 Bob Chambers Director 1.0 8.0 X 0 0 0 Tom Chase DIRECTOR 1.0 8.0 X 0 0 0 John Hatchel DIRECTOR 1.0 8.0 X 0 0 0 Norman L Hay Jr DIRECTOR 1.0 8.0 X 0 0 0 Dr Terry Maness DIRECTOR 1.0 8.0 X 0 0 0 Mrs Joyce Packard DIRECTOR 1.0 8.0 X 0 0 0 John Perry DIRECTOR 1.0 8.0 X 0 0 0 Dr Joseph Velez DIRECTOR 1.0 8.0 X 0 0 0 Greta Watson DIRECTOR 1.0 8.0 X 0 0 0 3747210 0 732281 17 false true false BKD LLP 510 NORTH VALLEY MILLS DRIVE WACO TX 767106075 AUDIT AND TAX 138698 1 0 Operating Income 551114 8975924 8975924 Beneficial Interest (M&O) 551114 1118000 1118000 Commission Income 551114 588672 588672 10682596 2052671 2052671 0 0 0 0 0 696193 337842 358351 358351 358351 0 0 0 0 0 0 0 0 0 Miscellaneous Revenue 551114 207941 207941 207941 13301559 10890537 2411022 129790 129790 0 0 0 3339327 3005394 333933 0 2161703 1945532 216170 36168 32551 3617 851879 766692 85188 258919 233027 25892 26250 23625 2625 73446 73446 124800 124800 60000 60000 0 0 75934 75934 300 300 225970 203373 22597 129997 116997 13000 0 111537 100383 11154 2213 1992 221 0 414 373 41 9802 8822 980 0 29268 26341 2927 102953 92658 10295 Bad Debt Expense 454488 454488 ADMINISTRATIVE EXPENSE 48868 43981 4887 DEVELOPMENT FEES 12499 11249 1250 SPECIAL EVENT EXPENSE 535 482 54 684 616 68 8267745 6744178 1523567 0 X 2151932 2986887 11492929 19786251 0 0 103284 154070 0 0 0 0 0 0 0 0 90710 78993 697920 39286 427162 658634 21529092 4390744 7774167 7967184 0 0 0 0 40622667 54623768 84191943 90646531 3154461 4454384 0 0 4511835 3518548 0 0 0 0 0 0 811300 811300 0 0 4097872 4637973 12575468 13422205 X 71616475 77224326 0 0 0 0 71616475 77224326 84191943 90646531 X 5033814 723153 -149116 X false true X true X 0 0 0 0 0 0 10867682 9475058 8990511 8270805 10890537 48494593 0 0 0 10867682 9475058 8990511 8270805 10890537 48494593 0 0 0 48494593 920229 1135933 823250 946566 2775824 6601802 0 920229 1135933 823250 946566 2775824 6601802 0 0 0 0 0 0 1076510 634777 0 1753 0 1713040 12864421 11245768 9813761 9219124 13666361 56809435 0.85364 0.88900 0.11621 0.08020 X false false false false false false false false true 60000 60000 false SCHEDULE C, PART II-B, LINE 1I LOBBYING ACTIVITIES: OUTSIDE LOBBYISTS WERE HIRED TO ADVISE BRAZOS ON APPROPRIATE STRATEGIES AND ACTIONS REGARDING LEGISLATION THAT WOULD HAVE A HARMFUL IMPACT ON BRAZOS INTEREST. IN ADDITION, LOBBYISTS WERE CHARGED WITH MONITORING THE INTRODUCTION AND THE PROGRESS ON LEGISLATION/RULES THAT REQUIRED BRAZOS COMPLIANCE IN ALL AREAS OF THE BUSINESS. LEGISLATION ISSUES INCLUDED BUDGET RECONCILIATION, REAUTHORIZATION OF THE HIGHER EDUCATION ACT, TAX-EXEMPT ISSUES AND PRIVACY ISSUES. 535000 535000 39286 39286 0 123634 123634 658634 Investments- Stocks 7874094 F Investments- BAC 93090 C 7967184 Accrued Investment Interest 1508608 Assets held in Escrow 4637973 Due from Affiliates 41232750 Other Asset 7244437 54623768 0 Prefunded Benefit Payable 4637973 4637973 X SCHEDULE D, PART X, LINE 2 LIABILITY FOR UNCERTAIN TAX POSITIONS: BHESC IS A NOT-FOR-PROFIT PUBLIC BENEFIT CORPORATION THAT IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(A) OF THE INTERNAL REVENUE CODE AS AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3). THE COMPANY IS ALSO EXEMPT FROM STATE INCOME TAX. INCOME WHICH IS NOT RELATED TO ITS EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL INCOME TAXES. THE COMPANY HAD NO NET UNRELATED BUSINESS INCOME FOR THE YEARS ENDED JUNE 30, 2021 AND 2020. AS SUCH, NO PROVISION FOR FEDERAL OR STATE INCOME TAXES HAS BEEN PROVIDED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. THE COMPANY FILES FEDERAL INFORMATION RETURNS IN THE UNITED STATES. THE COMPANY MAY BE SUBJECT TO EXAMINATIONS FOR THE TAX YEARS ENDED JUNE 30, 2018 AND LATER BY THE INTERNAL REVENUE SERVICE. THE COMPANY IS NOT CURRENTLY UNDER EXAMINATION FOR ANY OPEN TAX YEAR. THE COMPANY FOLLOWS THE ACCOUNTING STANDARD RELATED TO THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THE STANDARD PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE COMPANY CURRENTLY HAS NO UNCERTAIN TAX POSITIONS. true Waco Scottish Rite Charitable Foundation 2801 West Waco Drive Waco TX 76707 742581354 501(C)(3) 7500 Further Exempt Purpose of Recipient Texas State Technical College 3801 Campus Drive Waco TX 767051695 741646989 GOVT 25000 Contribution to Endowment Baylor University One Bear Place 97043 Waco TX 767987043 741159753 501(C)(3) 50000 Contribution to endowment McLennan Community College Foundation 1400 College Drive Waco TX 76708 741541260 501(C)(3) 41000 Contribution to endowment 4 SCHEDULE I, PART I, LINE 2 PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS IN THE U.S.: THE ORGANIZATION PROVIDES DONATIONS TO OTHER CHARITABLE AND GOVERNMENTAL ORGANIZATIONS. THESE ARE SIMPLE CHARITABLE CONTRIBUTIONS TO THE OTHER ORGANIZATIONS, SO THERE IS NO NEED TO MONITOR THE USE OF THE FUNDS. X X X false false false false false false false true false THOMAS BEN LITLE President/CEO 574560 0 54986 0 688 0 63405 0 4081 0 697720 0 0 0 Ricky Turman EVP/COO/CFO 496248 0 48543 0 31478 0 63845 0 6719 0 646833 0 0 0 Kelli Uttech SVP/General Counsel 287415 0 29241 0 7348 0 59840 0 2837 0 386681 0 0 0 Samuel Redden SVP/CIO 234150 0 24322 0 12947 0 58896 0 3471 0 333786 0 0 0 Andrew Ellis VP Human Resources 221329 0 23087 0 8347 0 54234 0 2847 0 309844 0 0 0 Randall Larson VP Special Projects 197644 0 21481 0 0 0 49023 0 6051 0 274199 0 0 0 Tammy Harralson VP/Controller 190059 0 20579 0 0 0 32940 0 7513 0 251091 0 0 0 Darrell Brooks TREASURER 151351 0 16673 0 4787 0 38745 0 4919 0 216475 0 0 0 Justin Green Financial Services Director 199567 0 21458 0 0 0 37969 0 3589 0 262583 0 0 0 John M Wright Business Analytics Director 181361 0 18752 0 0 0 41141 0 14089 0 255343 0 0 0 Sarah MacCarthy VP Compliance 158478 0 17127 0 239 0 34683 0 3542 0 214069 0 0 0 Debra Urias VP Customer Relations 143534 0 15941 0 5031 0 32250 0 4919 0 201675 0 0 0 Milicent Larson Executive Dir, Brazos Fdn 142373 0 17105 0 0 0 33271 0 13746 0 206495 0 0 0 SCHEDULE J, PART I, LINE 7 Nonfixed payments: While part of the bonuses given to employees are calculated using a fixed formula, the other part of the bonus is calculated by a set percentage determined at the discretion of the board. FORM 990, PART III, LINE 3 Significant Program changes: BHESC no longer provides support by underwriting the administrative expenditures of the foundation. The Foundation now reimburses BHESC for expenditures. FORM 990, PART VI, SECTION A, LINE 1A DELEGATION OF AUTHORITY: THE EXECUTIVE COMMITTEE SHALL CONSIST OF FIVE MEMBERS OF THE BOARD OF DIRECTORS. THE EXECUTIVE COMMITTEE SHALL, BETWEEN MEETINGS OF THE BOARD, HAVE ADMINISTRATIVE CONTROL OVER ALL MATTERS OF THE CORPORATION. FORM 990, PART VI, SECTION B, LINE 11B PROCESS FOR REVIEWING FORM 990: THE FORM 990 IS PROVIDED TO SENIOR MANAGEMENT FOR REVIEW. AFTER THIS REVIEW, THE RETURN IS POSTED ON A SECURE WEBSITE FOR REVIEW BY THE BOARD OF DIRECTORS. THE BOARD IS NOTIFIED OF THE POSTING AND ASKED TO PROVIDE COMMENTS OR QUESTIONS. COMMENTS OR QUESTIONS ARE INVESTIGATED AND RESOLVED OR DISCLOSED TO THE BOARD. UPON COMPLETION OF THE PROCESS, THE RETURN IS FILED. FORM 990, PART VI, SECTION B, LINE 12C PROCESS FOR MONITORING COMPLIANCE WITH CONFLICT OF INTEREST POLICY: THE COMPLIANCE DEPARTMENT PREPARES AND DISTRIBUTES A CONFLICT OF INTEREST QUESTIONNAIRE TO ALL BOARD MEMBERS AND EMPLOYEES ANNUALLY. THE COMPLIANCE DEPARTMENT REVIEWS THE QUESTIONNAIRES AND COMPILES A LIST OF POTENTIAL CONFLICTS FOR REVIEW BY THE AUDIT COMMITTEE, SENIOR MANAGEMENT, AND THE BOARD OF DIRECTORS. POTENTIAL CONFLICTS ARE ASSESSED AND RESOLVED IF DETERMINED TO BE AT RISK. IF A CONFLICT IS FOUND TO EXIST, THE CONFLICTED BOARD MEMBER ABSTAINS FROM VOTING. FORM 990, PART VI, SECTION B, LINE 15A & 15B PROCESS FOR DETERMINING COMPENSATION: BRAZOS HIGHER EDUCATION SERVICE CORPORATION'S BOARD OF DIRECTORS USES AN INDEPENDENT THIRD PARTY TO REVIEW THE COMPENSATION OF THE PRESIDENT, OFFICERS, AND KEY EMPLOYEES. THE THIRD PARTY REVIEWS EACH ELEMENT OF COMPENSATION TO ENSURE IT IS IN COMPLIANCE WITH IRS GUIDELINES AS WELL AS PERFORMS COMPARABILITY STUDIES TO DETERMINE WHETHER SALARIES ARE REASONABLE. THE MOST RECENT REVIEW WAS CONDUCTED DURING FISCAL YEAR 2021 BY AN INDEPENDENT CONSULTANT AND IS DOCUMENTED IN THE BOARD'S MEETING MINUTES. FORM 990, PART VI, SECTION C, LINE 19 PROCESS TO MAKE DOCUMENTS AVAILABLE: THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9 OTHER CHANGES IN Fund balances: ESTATE Distribution $(705,116) ESTATE CONTRIBUTION 556,000 ----------------- TOTAL $(149,116) BRAZOS ACADEMIC LENDING CORPORATION 5609 Crosslake Pkwy WACO TX 76712 742540458 STUD LOANS TX 501(C)(3) 10 NA true ACAPITA EDUCATION FINANCE CORPORATION 5609 Crosslake Pkwy WACO TX 76712 742542435 STUD LOANS TX 501(C)(3) 10 NA true BRAZOS EDUCATION LOAN AUTHORITY INC 5609 Crosslake Pkwy WACO TX 76712 203868073 STUD LOANS TX 501(C)(3) 10 NA true BOSQUE HIGHER EDUCATION AUTHORITY INC 5609 Crosslake Pkwy WACO TX 76712 742534099 STUD LOANS TX 501(C)(3) 10 NA true BRAZOS STUDENT FINANCE CORPORATION 5609 Crosslake Pkwy WACO TX 76712 742356109 STUD LOANS TX 501(C)(3) 10 NA true BRAZOS HIGHER EDUCATION AUTHORITY INC 5609 Crosslake Pkwy WACO TX 76712 742099402 STUD LOANS TX 501(C)(3) 10 NA true BRAZOS EDUCATION LENDING CORPORATION 5609 Crosslake Pkwy WACO TX 76712 203870081 STUD LOANS TX 501(C)(3) 10 NA true FEDERATED STUDENT FINANCE CORPORATION 5609 Crosslake Pkwy WACO TX 76712 742536239 STUD LOANS TX 501(C)(3) 10 NA true LLANO HIGHER EDUCATION AUTHORITY INC 5609 Crosslake Pkwy WACO TX 76712 203870219 STUD LOANS TX 501(C)(3) 10 NA true TEXOMA HIGHER EDUCATION AUTHORITY INC 5609 Crosslake Pkwy WACO TX 76712 203868230 STUD LOANS TX 501(C)(3) 10 NA true BRAZOS EDUCATION FOUNDATION INC 5609 Crosslake Pkwy WACO TX 76712 264562436 GRANT MAKING TX 501(C)(3) 7 BHESC true BRAZOS ASSET CORPORATION (BAC) 5609 Crosslake Pkwy WACO TX 76712 300835799 INVESTMENT TX SEE PART VII C-CORPORATION -1106083 93851 1.00000 true false true true true false false false false false false false true false false false false false false false BRAZOS EDUCATION FOUNDATION B 705116 cash ACAPITA EDUCATION FINANCE CORPORATION C 256000 Cash BRAZOS HIGHER EDUCATION AUTHORITY INC d 17326834 Cash BRAZOS STUDENT FINANCE CORPORATION D 11873297 Cash Bosque Higher Education Authority D 9851125 Cash BRAZOS EDUCATION LENDING CORPORATION D 1981493 Cash BRAZOS STUDENT FINANCE CORPORATION C 2181493 CASH ACAPITA EDUCATION FINANCE CORPORATION L 476532 CASH BRAZOS HIGHER EDUCATION AUTHORITY INC L 2107469 CASH BRAZOS STUDENT FINANCE CORPORATION L 648130 CASH FEDERATED STUDENT FINANCE CORPORATION L 76356 CASH BRAZOS EDUCATION LOAN AUTHORITY INC L 5320549 CASH BOSQUE HIGHER EDUCATION AUTHORITY L 316691 CASH FORM 990, SCHEDULE R, PART IV IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS CORP OR TRUST: NAME OF RELATED ORGANIZATION: BRAZOS ASSET CORP PRIMARY ACTIVITY: FINANCE TRANS INVOLVING CREATION/LIQUIDATION/OWNERSHIP OF FINANCIAL ASSETS DIRECT CONTROLLING ENTITY: BRAZOS HIGHER EDUCATION SERVICE CORPORATION