2017-11-10T15:00:48-06:00 2016-12-31 390859910 Baker Tilly Virchow Krause LLP 225 S 6th St Ste 2300 Minneapolis MN 55402 990 2016-01-01 472237488 Zenith Education Group Inc ZENI 6512210566 111 Washington Avenue South 1400 Minneapolis MN 55401 Jeremy J Wheaton President and CEO 2017-11-10 true Lawrence H Mohr CPA P00447603 6128764500 2016 2017-02-10 21:41:12Z WyoTech Everest College Everest University & Everest Institute Jeremy J Wheaton 111 Washington Avenue South 1400 Minneapolis MN 55401 678816804 false X www.zenith.org X 2014 DE From initial career planning and skills assessment, all the way through graduation and landing a good job, Zenith Education Group, Inc. helps students succeed. Zenith Education Group, Inc., a nonprofit career education provider, is helping bridge our nation's skills gap and support the U.S. economy. Zenith Education Group, Inc. offers affordable, high-quality programs that are regularly updated to provide students with training for in-demand skills so students are prepared, well-trained and ready to work in fulfilling careers immediately upon graduation. Above all, Zenith Education Group, Inc. is driven to promote the long-term success of our graduates. 8 8 3891 0 0 0 7820389 485113823 332409479 193573968 128764 4027725 249 344257593 678816804 35853443 19095985 0 217780439 149819012 0 0 386867164 272810489 640501046 441725486 -296243453 237091318 108564916 42450451 379807444 81077315 -271242528 -38626864 To help students succeed in their pursuit of an educational experience that prepares them for the workforce. false false 328739008 0 193573968 Instruction and Student Services. Zenith Education Group, Inc. (Zenith), dba WyoTech, Everest College, Everest University & Everest Institute (and beginning 08-08-2017, dba Altierus Career College or Altierus Career Education), offers educational opportunities with an emphasis in allied health, business, information technology, and automotive and construction trades. Zenith engages with faculty, industry leaders, and employers to help identify skills, competencies, behaviors and certifications that fit the needs of the marketplace and enhance each graduate's ability to find a job in his or her chosen field. The schools are accredited and grant associate, bachelor's, and master's degrees and diplomas. Zenith also offers certifications within degree and diploma programs that allow more students to earn industry-recognized credentials that are valuable and desired by employers. Zenith serves a non-traditional, underserved student population: 81% of Zenith students are eligible for Pell Grants (69% are eligible for full Pell Grants); 71% of Zenith's student body is female; 70% of students are non-white; 67% of students are more than 25 years old; only 43% of Zenith's students are first-time, first-year college students; and only 15% of students depend upon their parents' or guardians' financial resources. Zenith delivers services that make a student's transition from high school to a postsecondary institution as easy and straightforward as possible. Zenith provides students with individualized academic support through academic counseling, tutoring, and remedial education services that furnish tools and resources necessary for successful program completion; financial literacy counseling to assist students in managing their student loans and to help minimize their student loan debt; and career counseling to promote meaningful employment after graduation in the student's field of study. Learning resource centers on Zenith campuses support academic programs by providing books, shop and service manuals, periodicals, computers, and curriculum-based online resources. The learning resource centers are staffed with trained professionals to assist in the research needs of students and faculty. The education Zenith students receive emphasizes employability and professional accomplishment. The academic and career success of our graduates is paramount. Zenith's holistic approach focuses on the goal of graduation and job placement, emphasizing student attendance, overall attitude, academic performance and self-directed job search skills acquired through working with the career services staff. Zenith's career services experts provide students with placement assistance, including preparation of resumes and letters of introduction, interviewing techniques and job referrals. Zenith career services professionals also arrange on-campus employer visits, lectures, career fairs and field trips to enhance the likelihood that students will obtain well-paying jobs. Zenith also offers student activities that encourage school spirit and develop student leadership, including intramural sports, clubs, professional development programs, resource fairs and other extra curricular activities planned year-round. As of December 31, 2016, Zenith enrolls approximately 7,400 students and operates 24 schools in 13 states and online, and is in varying stages of consolidating and teaching out seven additional schools. 19095985 19095985 0 Grants and Scholarships. Zenith offers the following scholarship and grant programs to make college affordable for our students: Zenith American Dream Scholarships, Zenith Student Grants, Zenith Graduation Financial Assistance and Military Scholarships. Funds are available to pay for tuition, books and fees. The Zenith American Dream Scholarship is a multimillion-dollar institutional scholarship program for students who enroll in a WyoTech or Everest institution for the first time on or after August 24, 2015. Students who receive a written reference from a leader in the local community are eligible to apply for scholarship awards of up to $5,000 per student per academic year. Zenith distributed 2,032 American Dream scholarships in 2016 totaling approximately $7.5 million. The Zenith Student Grants are institutional grants of up to $10,000 per student per academic year to WyoTech or Everest students who demonstrate financial need and enroll on or after February 2, 2015 and July 25, 2016 for the applicable academic periods. In 2016, Zenith distributed more than $7.1 million in Student Grants to 3,941 students. Zenith Graduation Financial Assistance is a non-need-based institutional financial assistance award of up to $10,000 per student per academic program available to students enrolled in Everest programs prior to February 2, 2015. Upon a student's graduation, the financial assistance provides a 20 percent tuition reduction. Zenith distributed more than $2.8 million in Graduation Financial Assistance in 2016 to 910 students. Military Scholarships offer up to 50 percent of tuition per term or academic period for military personnel serving in the Armed Forces, and up to 10 percent of tuition per term or academic period for their spouses, as well as for veterans and their dependents using VA Education Benefits. In 2016, Zenith distributed over $500,000 in Military Scholarships to 737 military personnel, veterans, and their dependents. 347834993 true true false false false false false false false false true false false true true true true true true false false false false false false false false false true true false false false false false false false true true false false false false true false false false true 27908 0 3891 true false false false false false false false false false false X 8 8 false false false false true true true true true false false true true true true true true true true false CA GA OR MN X Jeremy J Wheaton 6512210566 111 Washington Avenue S Suite 1400 Minneapolis MN 55401 JOHN DEPODESTA Board Chair 3.0 17.0 X 0 183000 0 GARY COOK Director 2.0 11.0 X 0 130000 0 ROBERTA COOPER RAMO Director 3.0 13.0 X 0 145500 0 Julia Gouw Director 1.0 7.0 X 0 130500 0 I KING JORDAN Director 2.0 7.0 X 0 125000 0 JAMES MCKEON Director 2.0 12.0 X 0 167500 0 JACK O'CONNELL Director 2.0 8.0 X 0 120000 0 MAURICE SALTER Director 1.0 9.0 X 0 147500 0 Diana Scherer SVP and Deputy General Counsel 0.0 40.0 X 9231 288237 45168 Keith Burkhalter SVP Admissions 50.0 0 X 244040 0 38557 Karen Turner SVP Chief Business Development Officer 50.0 0 X 361614 0 33958 Kimberly Sue Pugh Dean SVP Student Finance Ops 50.0 0 X 561144 0 4178 Tom O'Donnell VP Operations 50.0 0 X 164265 0 2087 David L Hawn CEO & President (until 07-31-16) 0.0 59.0 X 0 1083898 42998 Peter J Taylor Zenith CEO & President (effective 08-01-16) and Foundation President & Director 0.0 41.0 X 0 592526 161867 Daniel S Fisher General Counsel/Corp Secretary 0.0 50.0 X 0 516779 50781 Gregory A Van Guilder Treasurer 0.0 56.0 X 0 852414 59520 James G Gilbertson Zenith CFO 0.0 46.0 X 0 229036 48599 Mary Ostrye SVP and Provost and Chief Academic Officer 50.0 0 X 300115 0 1519 Todd Allard Chief Marketing Officer 50.0 0 X 68411 0 187 Joshua Susser Interim VP Marketing 0.0 43.0 X 0 283973 46786 Robert Kenyon SVP & Chief Accounting Officer 0.0 50.0 X 11346 286625 51227 Michael Stiglich SVP Campus Operations 50.0 0 X 281369 0 985 John Andrews VP Accreditation & Licensing 50.0 0 X 765593 0 17508 Paul De Giusti VP Legislative Affairs 0.0 0 X 511330 0 0 David Beaver VP Procurement & Sourcing 0.0 0 X 190257 0 0 Christopher Lynn RVP Operations 50.0 0 X 186599 0 14681 Michael Jenkins Division AVP Admissions HS 0.0 0 X 181601 0 0 3836915 5282489 620605 76 false true false Horizon Media Inc PO Box 10409 Newark NJ 071930409 Marketing Professional Services 42905733 Zumatel LP 877 Main Street Dallas TX 97338 Call Center Services 4517339 Universal Protection Service LP PO Box 101034 Pasadena CA 911891034 Security Services 2303405 Cossette Communication US Inc 30 N Racine Ave 300 Chicago IL 60607 Marketing Professional Services 2114695 USA800 Inc 9808 East 66th Terrace Raytown MO 64133 Call Center Services 1523330 72 481097274 4016549 446270902 485113823 Instruction 611310 181335463 181335463 Bookstore 611310 11283491 11283491 Student Housing 611310 955014 955014 0 0 0 0 193573968 0 0 128764 0 0 128764 128764 128764 Services provided under transition services agreement 249 249 0 0 0 0 249 678816804 193573968 0 129013 19095985 19095985 1920507 1760796 159711 114477193 103393135 11084058 2711231 2507214 204017 22438357 19122435 3315922 8271724 6942738 1328986 4615 4615 803442 803442 17282782 14967952 2314830 0 45051434 45051434 8137589 7815805 321784 7369514 7323809 45705 55268490 51535405 3733085 3964501 3170359 794142 202820 187792 15028 9673477 9673477 1635370 1635370 17075602 13584127 3491475 2199921 2199921 Impairment 64144901 64144901 Bad Debt 13629754 13629754 Classroom Supplies 7961796 7961796 Bookstore 8244520 8244520 10159961 10231090 -71129 0 441725486 347834993 93890493 0 9487600 13325669 9701746 12130121 0 0 0 10100000 0 356184 294940 19356423 9204742 51162563 48067939 52185353 3094624 0 0 4087500 818000 3290110 3582355 108564916 42450451 44009010 26201238 25759550 19511775 310038884 35364302 379807444 81077315 X -271242528 -38626864 -271242528 -38626864 108564916 42450451 X 237091318 -4475654 X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2867396 2859396 8000 14514763 13789134 725629 33780404 31419409 2360995 3094624 Other Receivables 1764395 Deposits 1817960 3582355 Capital Leases 11461612 Accrued Rent 887641 Lease Incentive Obligation 343662 Operating Lease FMV Adjustment 8892793 Federal Perkins Loans 50000 Earn Out Agreement Liability with ED 7610000 Due to ECMC Foundation 117832 Deferred Grant Revenue 5179590 State Grant Funds Liability 821172 Notes payable to ECMC Group, Inc. Due to ECMC Group, Inc. Due to Educational Credit Management Corporation Deferred Compensation Plan Liability 35364302 X 181320000 -1153 -1153 181321153 497495651 497495651 678816804 422503000 2263 2263 422500737 19224749 19224749 441725486 Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote The FIN 48 (ASC 470) disclosure in the Zenith Education Group, Inc. Financial Statements reads as follows: "The Internal Revenue Service has determined that Zenith is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. It is also exempt from state income tax. However, any unrelated business income may be subject to taxation. Zenith follows the accounting standards for contingencies in evaluating uncertain tax positions. This guidance prescribes recognition threshold principles for the financial statement recognition of tax positions taken or expected to be taken on a tax return that are not certain to be realized. No liability has been recognized by Zenith for uncertain tax positions as of December 31, 2016 and 2015. Zenith's tax returns are subject to review and examination by federal and state authorities." Schedule D, Part XI, Line 2(d) Other revenues in audited financial statements not in form 990 Rounding adjustment because dollars are reported in thousands on the audited financial statements - -1153 Schedule D, Part XI, Line 4(b) Other revenues in form 990 not in audited financial statements Zenith Education Group, Inc. Scholarships and Financial Assistance - 19095985 Gain on disposal of fixed assets - 128764 Cash and Noncash Contributions from ECMC Group, Inc. - XXX-XX-XXXX Schedule D, Part XII, Line 2(d) Other expenses in audited financial statements not in form 990 Rounding adjustment because dollars are reported in thousands on the audited financial statements - 2263 Schedule D, Part XII, Line 4(b) Other expenses in form 990 not in audited financial statements Zenith Education Group, Inc. Scholarships and Financial Assistance - 19095985 Gain on disposal of fixed assets - 128764 true true true true true true false false false false false false false false false true false true Schedule E, Part I, Line 3 RACIALLY NONDISCRIMINATORY POLICY Zenith Education Group, Inc.'s racially nondiscriminatory policy is published in the school catalog, in materials provided to prospective students and to registering students, and in TV and radio advertising and marketing communications. Zenith Education Group, Inc. draws students from diverse populations and does not discriminate against any race, color, ethnicity, national origin, or any other protected class. Schedule E, Part I, Line 4(d) RECORDS AND COPIES MAINTAINED BY THE ORGANIZATION No contributions are solicited. Schedule E, Part I, Line 6(a) FINANCIAL AID OR ASSISTANCE FROM A GOVERNMENT Zenith Education Group, Inc. participates in U.S. Department of Education Supplemental Educational Opportunity Grant, Pell grant and Federal Work Study programs. true Student Scholarships and Financial Assistance 8616 19095985 Schedule I, Part III Student Scholarships and Financial Assistance Zenith Education Group, Inc. provides scholarship and financial assistance to students for tuition, books, fees and housing. Scholarship and grant programs include Zenith American Dream Scholarships, Zenith Student Grants, Zenith Graduation Financial Assistance and Military Scholarships. Awards are based on eligibility and are credited to each student's account. Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. A variety of student financing options are available to help students finance their education costs. Information about programs and eligibility requirements is available through the Student Finance Office. Enrollment and eligibility in Zenith Education Group, Inc. scholarships and grants are monitored internally. Other awards are monitored by the respective granting agencies. X true true X X X X true true false false true false true false false JOHN DEPODESTA Board Chair 0 183000 0 0 0 0 0 0 0 0 0 183000 0 0 JAMES MCKEON Director 0 167500 0 0 0 0 0 0 0 0 0 167500 0 0 Diana Scherer SVP and Deputy General Counsel 9231 189250 0 98000 0 987 0 23850 0 21318 9231 333405 0 0 Keith Burkhalter SVP Admissions 234040 0 10000 0 0 0 0 0 38557 0 282597 0 0 0 Karen Turner SVP Chief Business Development Officer 263614 0 98000 0 0 0 0 0 33958 0 395572 0 0 0 Kimberly Sue Pugh Dean SVP Student Finance Ops 103495 0 10000 0 447649 0 0 0 4178 0 565322 0 0 0 Tom O'Donnell VP Operations 163308 0 0 0 957 0 0 0 2087 0 166352 0 0 0 David L Hawn CEO & President (until 07-31-16) 0 519553 0 560722 0 3624 0 23850 0 19148 0 1126896 0 44472 Peter J Taylor Zenith CEO & President (effective 08-01-16) and Foundation President & Director 0 478163 0 111958 0 2405 0 151461 0 10406 0 754394 0 11856 Daniel S Fisher General Counsel/Corp Secretary 0 311679 0 199457 0 5642 0 31800 0 18981 0 567560 0 19052 Gregory A Van Guilder Treasurer 0 455680 0 393608 0 3126 0 31800 0 27720 0 911934 0 35531 James G Gilbertson Zenith CFO 0 226185 0 102 0 2749 0 24083 0 24515 0 277635 0 0 Mary Ostrye SVP and Provost and Chief Academic Officer 265000 0 22083 0 13032 0 0 0 1519 0 301634 0 0 0 Joshua Susser Interim VP Marketing 0 197124 0 81866 0 4983 0 31800 0 14986 0 330759 0 9764 Robert Kenyon SVP & Chief Accounting Officer 11346 285180 0 104 0 1341 0 24580 0 26647 11346 337852 0 0 Michael Stiglich SVP Campus Operations 0 0 9615 0 271754 0 0 0 985 0 282354 0 0 0 John Andrews VP Accreditation & Licensing 214759 0 4500 0 546333 0 0 0 17508 0 783101 0 0 0 Paul De Giusti VP Legislative Affairs 0 0 0 0 511330 0 0 0 0 0 511330 0 0 0 David Beaver VP Procurement & Sourcing 0 0 0 0 190257 0 0 0 0 0 190257 0 0 0 Christopher Lynn RVP Operations 110107 0 27192 0 49300 0 0 0 14681 0 201280 0 0 0 Michael Jenkins Division AVP Admissions HS 0 0 0 0 181601 0 0 0 0 0 181601 0 0 0 Schedule J, Part I, Line 1a Tax indemnification and gross-up payments Certain taxable benefits are grossed up to make the employee whole. Schedule J, Part I, Line 4a Severance or change-of-control payment The following received a severance payment in 2016: Kimberly Sue Pugh Dean - $141,625. Michael Stiglich - $57,692. Christopher Lynn - $49,300. Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan ECMC Group, Inc. maintains a supplemental nonqualified retirement plan described in section 457(f), and a Supplemental Employee Retirement Plan (SERP), to attract and retain employees, typically in management positions. In 2016, Gregory Van Guilder and Peter J. Taylor participated in the 457(f) plan, and received employer contributions of $15,179 and $1,595, respectively, and Peter J. Taylor participated in the SERP plan, and received an employer contribution of $119,661. Schedule J, Part I, Line 5b Compensation contingent on revenues of a related organization ECMC Group, Inc.'s annual officer incentive plan requires achievement of stated primary financial goals, which includes revenues, before any payment to any officer is made. Schedule J, Part I, Line 6b Compensation contingent on net earnings of a related organization ECMC Group, Inc.'s annual officer incentive plan requires achievement of stated key performance metrics, which includes net earnings, before any payment to any officer is made. Richard J Boyle Mr. Boyle is a director and president of a company contracted with ECMC Group, Inc., a related org. 180000 See description of transaction in Part V false Schedule L, Part IV, Column (d) Description of Transaction ECMC Group, Inc., a related organization, has a consulting contract with a company owned by a former director and president. For transparency of operation, the contract is reported in this Form 990 filing as ECMC Group, Inc. is the parent and supporting entity of Educational Credit Management Corporation and Zenith Education Group, Inc. and the parent organization of ECMC Foundation. The contract is for advisory services to ECMC Group, Inc. and began after the officer retired from the organization on February 1, 2014. The proposed terms of the contract were reviewed by the Governance & Compensation Committee of the ECMC Group, Inc. Board of Directors which is wholly comprised of independent, outside directors. The Committee reviewed the business terms, tasks, duration of the proposed agreement and comparability data. They also heard from compensation consultants and outside counsel. The Committee made a recommendation that was then approved by the full ECMC Group, Inc. Board of Directors. X ECMC Group, Inc. converted amounts due from Zenith to a contribution in support of its mission. 1 446270902 Other - Book Value 0 false false false Schedule M, Part I Explanations of reporting method for number of contributions Other - ECMC Group, Inc. converted amounts due from Zenith to a contribution in support of its mission. The number reported in Part I, Line 25, Column (b) is based on the number of contributions received. Form 990, Heading, Item C - Doing Business As (DBA) On August 8, 2017, Zenith Education Group, Inc. announced the launch of DBA Altierus Career College or Altierus Career Education, and retirement of DBAs Everest College, Everest University and Everest Institute. The new DBA name reflects the college's updated and expanded offerings in high-demand medical, trades, technology and business industries, including efforts to ensure that students are well-matched with career choices and develop the soft skills local employers value most. [www.altierus.org] Form 990, Part VI, Line 13 Whistleblower Policy The Zenith Education Group, Inc. whistleblower policy requires directors, officers and employees to observe high standards of business and personal ethics in the conduct of their duties and responsibilities. Employees and representatives of the Corporation are to practice honesty and integrity in fulfilling their responsibilities and comply with all applicable laws and regulations. The policy provides for reporting mechanisms of potential illegal practices or violations of corporate policies, and prohibits repercussions for good faith reporting of suspected violations under the policy. In addition, ECMC Group, Inc. has a code of ethics and business conduct policy that is affirmed annually by all ECMC Group, Inc. and affiliated companies' officers and employees. There is a provision incorporated into the code of ethics and business conduct policy that binds all employees that states there can be no repercussions for good faith reporting of potential illegal practices or violations of corporate policies. ECMC Group, Inc. has established an anonymous whistleblower telephone hotline and website administered by an outside vendor. The hotline and website are available and accessible to Zenith Education Group, Inc. directors, officers, employees and vendors. Form 990, Part VI, Line 6 Classes of members or stockholders Zenith Education Group, Inc. HAS ONE MEMBER. THE MEMBER IS ECMC GROUP, INC. A DELAWARE, non-stock, nonprofit CORPORATION EXEMPT UNDER SECTION 501(C)(3). THERE ARE NO STOCKHOLDERS. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body ECMC GROUP, INC. HAS THE RIGHT TO ELECT AND/OR APPROVE ALL THE DIRECTORS OF THE Zenith Education Group, Inc. BOARD OF DIRECTORS. Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders ECMC GROUP, INC., THE SOLE MEMBER OF Zenith Education Group, Inc., RETAINS THE FOLLOWING AUTHORITY OVER Zenith Education Group, Inc.: 1. TO AUTHORIZE AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS. 2. TO APPROVE THE STRATEGIC AND FINANCIAL PLANS. 3. TO ELECT AND/OR APPROVE THE MEMBERS OF THE BOARD OF DIRECTORS. 4. TO OVERSEE COORDINATION OF PROGRAMS AND SERVICES OFFERED. 5. TO AUTHORIZE FORMATION, GOVERNANCE AND DISSOLUTION. Form 990, Part VI, Line 11b Review of form 990 by governing body ALL MEMBERS OF THE BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT ARE PROVIDED A COPY OF FORM 990 TO REVIEW AND PROVIDE COMMENTS PRIOR TO FILING. ALL MEMBERS OF THE BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT ARE PROVIDED WITH A COPY OF THE FINAL VERSION OF FORM 990 BEFORE IT HAS BEEN FILED. Form 990, Part VI, Line 12c Conflict of interest policy OFFICERS, DIRECTORS AND Key EMPLOYEES ARE REQUIRED TO REAFFIRM ON AN ANNUAL BASIS THEIR UNDERSTANDING OF THE COMPANY'S Conflict of Interest Policy. THE AFFIRMATION SPECIFICALLY REFERENCES THAT THE INDIVIDUAL WILL COMPLY WITH THE DIRECTIVES OF THE Corporation's Conflict of Interest Policy. It also references the individual's fiduciary duty to the corporation, responsibility not to disclose confidential, proprietary information and understanding that as a charitable organization the corporation must diligently avoid in fact and in appearance any conflict of interest in order to maintain the trust of the public. The policy is reviewed annually. MONITORING AND ENFORCEMENT OF THE POLICY are ACCOMPLISHED THROUGH THE REAFFIRMATION PROCESS. IN CASES WHERE A POTENTIAL CONFLICT IS DISCLOSED TO THE Board, Committee or Board's Designee, procedures are in place to determine whether a conflict of interest exists and to address a conflict of interest. THE BOARD member WILL BE REQUIRED TO EXCUSE THEMSELVES FROM the process ON MATTERS WHERE THEY MAY HAVE A CONFLICT OF INTEREST. Form 990, Part VI, Line 15a Process to establish compensation of top management official The following describes the Educational Credit Management Corporation (ECMC), Zenith Education Group, Inc. and ECMC Group, Inc. executive compensation methodology. The Governance & Compensation Committee of the ECMC Group, Inc. Board of Directors is wholly comprised of independent, outside directors. In 2016, the Committee retained executive compensation experts from Grant Thornton, a global compensation consulting organization, through Arnold & Porter LLP to identify appropriate CEO and senior executive compensation packages. Arnold & Porter LLP provided a written opinion on the reasonableness of this compensation. The market analysis performed by Grant Thornton for Arnold & Porter LLP includes salary and incentive data from an appropriate peer group under IRS regulations and includes both nonprofit and for-profit entities. Form 990, Part VI, Line 15b Process to establish compensation of other employees The following describes the Educational Credit Management Corporation (ECMC), Zenith Education Group, Inc. and ECMC Group, Inc. executive compensation methodology. The Governance & Compensation Committee of the ECMC Group, Inc. Board of Directors is wholly comprised of independent, outside directors. In 2016, the Committee retained executive compensation experts from Grant Thornton, a global compensation consulting organization, through Arnold & Porter LLP to identify appropriate CEO and senior executive compensation packages. Arnold & Porter LLP provided a written opinion on the reasonableness of this compensation. The market analysis performed by Grant Thornton for Arnold & Porter LLP includes salary and incentive data from an appropriate peer group under IRS regulations and includes both nonprofit and for-profit entities. Form 990, Part VI, Line 19 Required documents available to the public NO DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC. Form 990, Part XI, Line 9 Other changes in net assets $4,475,654. On January 1, 2016 approximately 175 Zenith Education Group, Inc. employees in the information technology, finance and accounting, human resources, and other corporate support departments were hired into ECMC Shared Services Company, LLC, a wholly owned subsidiary of ECMC Group, Inc. Additionally, the related property, equipment, and leasehold improvements of approximately $2.91 million and prepaid expenses and other assets of approximately $1.57 million were transferred into ECMC Shared Services Company, LLC, a wholly owned subsidiary of ECMC Group, Inc. Form 990, Part XI, Line 9 Other changes in net assets or fund balances Transfer of net assets. - -4475654; ECMC Group Inc 111 Washington Avenue South Suite 1400 Minneapolis MN 55401 411991995 Education Finance DE 501(c)(3) Type II NA false Educational Credit Management Corporation 111 Washington Avenue South Suite 1400 Minneapolis MN 55401 411778617 Guarantor MN 501(c)(3) 10 ECMC Group Inc false ECMC Foundation 111 Washington Avenue South Suite 1400 Minneapolis MN 55401 411990628 Promote Education DE 501(c)(3) Type II ECMC Group Inc false Oakdale Investment Management Corporation 111 Washington Avenue South Suite 1400 Minneapolis MN 55401 352085743 Holding Investments DE ECMC Group Inc C Corporation false ECMC Holdings Corporation 111 Washington Avenue South Suite 1400 Minneapolis MN 55401 411991992 Strategic Oversight DE ECMC Group Inc C Corporation false Educational Credit Services Co 111 Washington Avenue South Suite 1400 Minneapolis MN 55401 411992001 Private Loans DE NA C Corporation false ECMC Records & Rec Mgmt Corporation 111 Washington Avenue South Suite 1400 Minneapolis MN 55401 411989959 Document Management DE NA C Corporation false ECMC Management Services Corporation 111 Washington Avenue South Suite 1400 Minneapolis MN 55401 411989960 Management Services DE NA C Corporation false ECMC Technology Services Corporation 111 Washington Avenue South Suite 1400 Minneapolis MN 55401 411989958 Technology Services DE NA C Corporation false ECMC Servicing Corporation 10370 Peter A McCuen Blvd Mather CA 95655 471154366 Loan Servicing DE NA C Corporation false false false true false true false false false false false false false true true false true true true false Schedule R, Part I Disregarded Entities of Related Organizations 1(a)-Name. Oakdale Student Loan Funding, LLC (27-1914648), 111 Washington Avenue South, Suite 1400, Minneapolis, MN 55401. 1(b)-Primary activity. Holding FFELP Loans. 1(c)-Legal domicile. DE. 1(f)-Direct controlling entity. ECMC Group, Inc. 2(a)-Name. ECMC Shared Services Company, LLC (81-0690960), 111 Washington Avenue South, Suite 1400, Minneapolis, MN 55401. 2(b)-Primary activity. Support Services Functions. 2(c)-Legal domicile. DE. 2(f)-Direct controlling entity. ECMC Group, Inc. 3(a)-Name. Patriot Student Loan Capital, LLC (81-3501777) 111 Washington Avenue South, Suite 1400, Minneapolis, MN 55401. 3(b)-Primary Activity. Trust Student Loans. 3(c)-Legal Domicile. DE. 3(f)-Direct Controlling Entity. ECMC Group, Inc. 4(a)-Name. Premiere Credit of North America, LLC (35-2085743), 2002 Wellesley Blvd, #100, Indianapolis, IN 46219. 4(b)-Primary activity. Accounts Receivable Management. 4(c)-Legal domicile. IN. 4(f)-Direct controlling entity. ECMC Holdings Corporation. 5(a)-Name. Healthcare Billing Administrators, LLC (81-4038009) 2002 Wellesley Blvd, #100, Indianapolis, IN 46219. 5(b)-Primary Activity. Provider of Contingent Collections in the Healthcare Provider Market. 5(c)-Legal Domicile. IN. 5(f)-Direct Controlling Entity. Premiere Credit of North America, LLC. Schedule R, Part V, Line 1c Gift, grant, or capital contribution from related organization(s) $2,826,372 contribution made by ECMC Foundation to Zenith Education Group, Inc. to fund qualified expenses of the Zenith Campaign for Innovation; a career readiness initiative in support of ECMC Foundation's mission to inspire and to facilitate improvements that affect education outcomes, especially among underserved populations, through evidence-based innovation. Schedule R, Part V, Line 1e Loans or loan guarantees by related organization(s) $381,200,000. Zenith Education Group, Inc. had two unsecured credit arrangements with ECMC Group, Inc. The funds were to be used for operations and capital improvements. In September 2016, the Board of Directors of ECMC Group, Inc. adopted a resolution to convert all outstanding principal and interest on notes receivable from Zenith Education Group, Inc. to a contribution to Zenith Education Group, Inc. The total amount converted to a contribution on September 22, 2016 was $423,006,357. Schedule R, Part V, Line 1m Performance of services by related organization(s) $1,635,370 for default aversion services were paid to Educational Credit Management Corporation. Schedule R, Part V, Line 1q Reimbursement paid by related organization(s) for expenses $2,219,533 reimbursement paid by ECMC Shared Services Company, LLC, a wholly owned subsidiary of ECMC Group, Inc., a related organization, for expenses. Schedule R, Part V, Line 1c Gift, grant, or capital contribution from related organization(s) $478,270,902 contributions made by ECMC Group, Inc. to Zenith Education Group, Inc. In September 2016, the Board of Directors of ECMC Group, Inc. adopted a resolution to convert all outstanding principal and interest on notes receivable from Zenith Education Group, Inc. to a contribution to Zenith Education Group, Inc. In addition, the Board resolved that all outstanding intercompany liabilities (net) due from Zenith Education Group, Inc. as of December 31, 2016 would be converted to contributions. The conversion of outstanding principal, interest, and other outstanding intercompany liabilities amounted to $446,270,902. Cash contributions of $32,000,000 were also made to Zenith Education Group, Inc. to support its mission to help students succeed in their pursuit on an educational experience that prepares them for the workforce. Schedule R, Part V, Line 1e Loans or loan guarantees by related organization(s) $2,800,000 contingent liability. Zenith Education Group, Inc. and ECMC Group, Inc., as co-applicants, established two letters of credit. The letters of credit expired in February and March, 2017, respectively. Schedule R, Part V, Line 1r Other transfer of cash or property to related organization(s) $4,475,654. On January 1, 2016 approximately 175 Zenith Education Group, Inc. employees in the information technology, finance and accounting, human resources, and other corporate support departments were hired into ECMC Shared Services Company, LLC, a wholly owned subsidiary of ECMC Group, Inc., a related organization. Additionally, the related property, equipment, and leasehold improvements of approximately $2.91 million and prepaid expenses and other assets of approximately $1.57 million were transferred into ECMC Shared Services Company, LLC, a wholly owned subsidiary of ECMC Group, Inc., a related organization. Schedule R, Part V, Line 1n Sharing of Facilities, Equipment, or Other Assets with Related Org(s) $1,423,084 allocated expenses for Facilities, Equipment, Mailing Lists, or Other Assets shared with ECMC Shared Services Company, LLC, a wholly owned subsidiary of ECMC Group, Inc., a related organization. Schedule R, Part V, Line 1p Reimbursement Paid to Related Organization(s) for Expenses $17,821,288 Paid to ECMC Group, Inc. for Expenses. Schedule R, Part V, Line 1p Reimbursement Paid to Related Organization(s) for Expenses $658,795 Paid to Educational Credit Management Corporation for Expenses.