2017-11-02T17:52:23-05:00 2017-06-30 810385940 ANDERSON ZURMUEHLEN & CO PC PO BOX 1040 HELENA MT 59624 990 2016-07-01 810393527 MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORPORATION MONT 4064957800 PO BOX 5209 HELENA MT 59604 MICHAEL GREEN PRESIDENT 4064957800 2017-10-26 1 SUZANNE M SEVERIN P00254608 4064421040 2017-10-04 71.92.235.227 2017-10-26 10:27:40 MD P F8149FE285D31628C0727EC39CE77E5E9500148C AB839DB4A1569C9D606ADD580F5B8BEE8C8604B5 2016 2021-01-29 14:40:06Z X MICHAEL GREEN PO BOX 5209 HELENA MT 59604 29554619 0 X WWW.MHESAC.ORG X 1980 MT DEDICATED TO HELPING MONTANA CITIZENS FINANCE AND ACHIEVE THEIR POST-SECONDARY EDUCATION GOALS. 7 7 0 111 0 0 0 937332 29232697 28192935 314663 424352 0 0 29547360 29554619 0 508339 0 0 12400 11550 0 0 8761 33822172 32955925 33834572 33475814 -4287212 -3921195 965432682 859565581 870074273 768124859 95358409 91440722 X MHESAC OFFERS BORROWER BENEFITS IN THE FORM OF PRINCIPAL AND INTEREST RATE REDUCTIONS TO EXISTING STUDENT LOAN BORROWERS. THROUGH ITS REACH HIGHER MONTANA (RHM) PROGRAMS, IT PROVIDES A RANGE OF SERVICES THAT INCLUDES OUTREACH, SCHOLARSHIPS AND EDUCATION FINANCE PLANNING. 1 0 31133544 28192935 ACQUISITION AND SERVICING OF GUARANTEED STUDENT LOANS AS A SECONDARY STUDENT LOAN MARKET FOR THE FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP). BENEFITS PROVIDED TO BORROWERS THROUGH REBATE, INCENTIVE, AND RATE REDUCTION PROGRAMS TOTALED $1.633 MILLION FOR 19,325 BORROWERS IN FISCAL YEAR 2017. $56 MILLION IN BENEFITS HAVE BEEN PROVIDED TO BORROWERS SINCE INCEPTION OF BORROWER BENEFIT PROGRAMS IN 1996. SINCE INCEPTION, MHESAC HAS PROVIDED MORE THAN $3.7 BILLION IN STUDENT LOANS TO OVER 241,000 BORROWERS. 1135306 508339 COMMUNITY OUTREACH PROGRAMS FOCUS ON CONNECTING HIGH SCHOOL AND COLLEGE STUDENTS TO RESOURCES NECESSARY FOR THE PURSUIT OF POST SECONDARY EDUCATION. 494942 PROVIDE OUTREACH AND SUPPORT TO STUDENTS THROUGH LOCAL OUTREACH OFFICES. 371263 DELIVER AND ADMINISTER SCHOLARSHIPS AND GRANTS TO MONTANA STUDENTS TO HELP FUND THEIR HIGHER EDUCATION. 371263 33135055 1 1 0 1 0 0 0 0 0 1 0 0 1 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 19 0 1 0 0 0 0 0 0 0 0 0 0 0 X 7 7 1 1 1 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X THE ORGANIZATION 4064957800 2500 BROADWAY HELENA MT 59601 FRED FLANDERS DIRECTOR 1.00 X 1800 0 0 LILA TAYLOR DIRECTOR 1.00 X 1800 1800 0 WILLIAM THOMAS VICE-CHAIR 3.00 X 1800 0 0 MICHAEL GREEN BOARD CHAIR/PRESIDENT 3.00 X X 1800 0 0 GEORGE OLSEN DIRECTOR/SECRETARY/TREASURER 1.00 X X 1800 0 0 JIM PENNER DIRECTOR/VICE-PRESIDENT 1.00 X X 1800 0 0 TYLER CHRISTIANSON DIRECTOR/STUDENT MEMBER 1.00 X 600 0 0 CASEY LOZAR DIRECTOR 1.00 X 0 0 0 KIM CUNNINGHAM DIRECTOR 1.00 X 0 1800 0 TERRY COSGROVE DIRECTOR 1.00 X 0 0 0 CLAYTON CHRISTIAN EX OFFICIO DIRECTOR 1.00 X 0 0 0 JOLENE SELBY CFO 8.00 44.00 X 0 176072 31496 JAMES STIPCICH CEO 6.00 41.00 X 0 244474 25405 DONNIE J WHITAKER SAF TOP FINANCIAL OFFICIAL 0.00 32.00 X 0 28901 2055 RON MUFFICK VICE-PRESIDENT 1.00 X 0 0 0 11400 453047 58956 0 0 1 0 STUDENT ASSISTANCE FOUNDATION PO BOX 5209 HELENA MT 59604 MGMT & LOAN SERVICES, PROGRAMS DELIVERY 10196668 DORSEY & WHITNEY LLP PO BOX 1680 MINNEAPOLIS MN 554801680 LEGAL COUNSEL 164547 2 245618 691714 19404 937332 INTEREST & SPECIAL ALLOWANCE 611710 28489383 28489383 LOAN PURCHASE PROGRAM 611710 7476 7476 LOSS ON BOND REDEMPTION 611710 -303924 -303924 28192935 424352 424352 29554619 28192935 0 424352 255000 255000 253339 253339 11550 11550 6529587 6529587 54403 6390 48013 207152 201045 5757 350 81452 81452 44972 44972 29045 29045 72899 70329 2570 96564 95044 1520 14692669 14692669 2369893 2369893 15726 15726 CONSOLIDATION LOAN FEES 7289947 7289947 PROGRAM COSTS 1257590 1032573 216606 8411 LENDER LOAN AND INCENTI 103662 103662 OTHER GRANTS 65188 65188 45176 14920 30256 33475814 33135055 331998 8761 2253662 3743491 29429731 20565063 48900 5736823 1502000 1247739 647605 916972552 811682756 15225837 15942104 965432682 859565581 4573708 3398802 865500565 764726057 870074273 768124859 X 95358409 91440722 95358409 91440722 965432682 859565581 -3921195 -4256 7764 0 X X 0 1 X 1 0 X 937331 937331 41453894 34690949 30891017 29232697 28192935 164461492 41453894 34690949 30891017 29232697 29130266 165398823 0 0 0 165398823 308847 275605 277779 314663 424352 1601246 308847 275605 277779 314663 424352 1601246 41762741 34966554 31168796 29547360 29554618 167000069 0.99040 0.77430 0.00960 0.00770 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 1420 0 1 3224 4644 0 PART II-B, LINE 1: EDUCATION FINANCE COUNCIL PORTION OF NONDEDUCTIBLE DUES PAID TO EDUCATION FINANCE COUNCIL THAT WERE ATTRIBUTABLE TO LOBBYING ACTIVITIES. MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORPORATION IS NOT INVOLVED IN THE MANAGEMENT OF, CONTROLLED BY OR RELATED TO THE EDUCATION FINANCE COUNCIL. $3,224 STRATEGIES 360 - $1,420 645448 2157 647605 1.00000 0.00000 0.00000 0 0 0 EDUCATIONAL LOANS RECEIVABLE, NET OF ALLOWANCE 811682756 C 811682756 X 29558127 -4256 7764 3508 29554619 0 29554619 33475814 0 33475814 0 33475814 PART V, LINE 4: FUNDS TO BE USED FOR PROGRAMS. PART X, LINE 2: MHESAC IS A NOT-FOR-PROFIT CORPORATION EXEMPT FROM TAXATION UNDER INTERNAL REVENUE CODE 501(C)(3). ACCORDINGLY, NO PROVISION FOR INCOME TAXES IS NECESSARY IN THE ACCOMPANYING FINANCIAL STATEMENTS. 1 UNIVERSITY OF MONTANA - WESTERN 710 S ATLANTIC DILLION MT 59725 816001713 GOVERNMENT 8500 STEM SCHOLARSHIPS MONTANA STATE UNIVERSITY - BOZEMAN PO BOX 174160 BOZEMAN MT 59717 816010045 GOVERNMENT 75000 STEM SCHOLARSHIPS UNIVERSITY OF MONTANA - MISSOULA LOMMASSON RM 218 MISSOULA MT 59812 816001713 GOVERNMENT 52000 STEM SCHOLARSHIPS MONTANA TECH OF THE UM & COLLEGE OF TECHNOLOGY 1300 W PARK ST BUTTE MT 59701 816001654 GOVERNMENT 58000 STEM SCHOLARSHIPS MONTANA STATE UNIVERSITY - BILLINGS 1500 UNIVERSITY DR BILLINGS MT 59101 816001642 GOVERNMENT 11500 STEM SCHOLARSHIPS GOVERNOR'S OFFICE OF COMMUNITY SERVICE PO BOX 200801 HELENA MT 59620 810302402 GOVERNMENT 50000 YOUTH SERVICE MONTANA SCHOLARSHIPS 6 0 FOSTER CARE - ETV 32 149839 REACH HIGHER MONTANA SCHOLARSHIPS 75 75000 CIRCLE OF SUCCESS 29 28500 SCHEDULE I; PART III A REACH HIGHER MONTANA DELIVERS FUNDS TO THE STUDENTS THROUGH ITS REACH HIGHER MONTANA SCHOLARSHIPS. THESE AWARDS ARE $1,000 EACH, AND THE INTENT OF THE PROGRAM IS TO AWARD A SCHOLARSHIP IN HONOR OF AT LEAST ONE STUDENT FROM EACH OF MONTANA'S 56 COUNTIES. REACH HIGHER MONTANA SCHOLARSHIPS ARE AWARDED BASED ON APPLICATIONS SUBMITTED BY STUDENTS. STUDENT ENROLLMENT IS VERIFIED AND CHECKS ARE ISSUED TO SCHOOL'S IN THE STUDENT'S NAME. 0 0 0 0 0 0 0 0 0 JOLENE SELBY CFO 0 140901 0 35171 0 0 0 9476 0 22020 0 207568 0 0 JAMES STIPCICH CEO 0 194314 0 50160 0 0 0 12387 0 13018 0 269879 0 0 PART I, LINE 1A DOES NOT APPLY. PART I, LINE 1B DOES NOT APPLY PART I, LINE 3 DOES NOT APPLY PART I, LINE 8 THE ORGANIZATION PAYS MANAGEMENT FEES TO STUDENT ASSISTANCE FOUNDATION OF MONTANA (SAF), A RELATED ORGANIZATION. SAF DETERMINES COMPENSATION UTILIZING THE FOLLOWING: BONUSES ARE FIXED PAYMENTS BY CONTRACT. THE FIXED PAYMENTS WERE MADE UNDER AN INITIAL CONTRACT SO ARE NOT SUBJECT TO SECTION 4958. THERE IS BOARD APPROVAL, DISCUSSION, AND ACTION AS TO APPROPRIATENESS. JAMES STIPCICH MHESAC CEO AND TOP MANAGEMENT OFFICIAL NOTED CEO AND TOP MANAGEMENT OFFICIAL FOR MHESAC IS AN OFFICER OF STUDENT ASSISTANCE FOUNDATION 0 LILA TAYLOR BOARD MEMBER NOTED BOARD MEMBER IS ON BOTH STUDENT ASSISTANCE FOUNDATION AND MHESAC BOARDS. 0 JOLENE SELBY MHESAC CFO AND TOP FINANCIAL OFFICIAL NOTED CFO AND TOP FINANCIAL OFFICIAL FOR MHESAC IS AN OFFICER OF STUDENT ASSISTANCE FOUNDATION 0 KIM CUNNINGHAM BOARD MEMBER NOTED BOARD MEMBER IS CHAIR ON STUDENT ASSISTANCE FOUNDATION BOARD 0 TERRY COSGROVE BOARD MEMBER NOTED BOARD MEMBER IS ON BOTH STUDENT ASSISTANCE FOUNDATION AND MHESAC BOARDS 0 FORM 990, PART III, LINE 2 MHESAC HAS ASSUMED THE PUBLIC BENEFIT ACTIVITIES OF A RELATED ORGANIZATION, STUDENT ASSISTANCE FOUNDATION (SAF) EFFECTIVE 7/1/16. THESE ACTIVITIES ARE PROVIDED THROUGH MHESAC'S REACH HIGHER MONTANA. SERVICES INCLUDE OUTREACH, SCHOLARSHIPS AND EDUCATION FINANCE PLANNING. FORM 990, PART VI, SECTION A, LINE 2 THREE MHESAC OFFICERS AND/OR KEY EMPLOYEES WORK FOR THE SAME ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 3 STUDENT ASSISTANCE FOUNDATION IS A 509(A)(3)SUPPORTING ORGANIZATION ORGANIZED TO PROVIDE MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORPORATION (MHESAC), WITH ALL THE NECESSARY MANAGEMENT AND ADMINISTRATIVE SERVICES REQUIRED TO OPERATE MHESAC'S STUDENT LOAN PROGRAM, PERFORM ALL THE RESPONSIBILITIES UNDER THE INDENTURES, AND TO SERVICE ALL STUDENT LOANS OWNED BY MHESAC. FORM 990, PART VI, SECTION A, LINE 4 AMENDMENTS WERE MADE TO THE ORGANIZATIONS BYLAWS RELATED TO THE BOARD OF DIRECTORS/OFFICERS AND THEIR CONDUCT OF BUSINESS. THE AMENDMENT ADDRESSES THE BOARD COMPOSITION, QUALIFICATIONS, TERMS, ACTIONS, COMPENSATION, AND CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION A, LINE 7A THE CHAIR OF THE BOARD OF REGENTS CAN NOW APPOINT A VOTING MEMBER. FORM 990, PART VI, SECTION B, LINE 11B THE RETURN IS MADE AVAILABLE TO THE FULL BOARD AND REVIEWED BY THE AUDIT COMMITTEE PRIOR TO FILING. THE AUDIT COMMITTEE PRESENTS THE RETURN TO THE FULL BOARD AT THE NEXT SCHEDULED MEETING. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS ARE REQUIRED TO DISCLOSE CONFLICTS OF INTEREST PRIOR TO PARTICIPATING IN THE DISCUSSION OF THE TOPIC. THE DISCLOSURE IS NOTED IN THE MINUTES. ALL VOTES HAVE TO BE CARRIED BY A MAJORITY OF DISINTERESTED PARTIES. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION DOES NOT INCUR COMPENSATION OR PAYROLL RELATED EXPENSES. BOARD MEMBERS ARE PAID HONORARIUMS ONLY AND REIMBURSED FOR TRAVEL EXPENDITURES. THE PROCESS FOR DETERMINING EXECUTIVE COMPENSATION BY THE STUDENT ASSISTANCE FOUNDATION, MHESAC'S MANAGEMENT COMPANY, IS AS FOLLOWS: WHEN EXECUTIVE AND OFFICER EMPLOYMENT CONTRACTS ARE RENEWED, THE SAF BOARD APPOINTS A COMPENSATION COMMITTEE TO REVIEW AND RECOMMEND COMPENSATION OF THE CEO FOR BOARD APPROVAL. THE SAF BOARD APPROVES ANY ANNUAL COST OF LIVING ADJUSTMENTS. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE AVAILABLE FROM THE COMPANY'S WEBSITE AND OTHER DOCUMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XII, LINE 2C - OVERSITE OF AUDIT THE PROCESS FOR THE OVERSIGHT RESPONSIBILITY OF THE AUDIT IS CONSISTENT WITH PRIOR YEARS. STUDENT ASSISTANCE FOUNDATION OF MONTANA PO BOX 5209 HELENA MT 59604 810527529 PROVIDE MANAGEMENT, STUDENT LOAN SERVICING & PROGRAMS DELIVERY MT 501(C)(3) 11A N/A 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0