2017-05-15T13:51:15-05:00 2016-06-30 910189318 MOSS ADAMS LLP 4747 EXECUTIVE DRIVE SUITE 1300 SAN DIEGO CA 92121 990 2015-07-01 237172306 NATIONAL UNIVERSITY NATI 8586428100 11355 NORTH TORREY PINES ROAD LA JOLLA CA 920371013 DAVE C LAWRENCE VICE CHANCELLOR, FINANCE 8586428100 2017-05-15 1 PATRICIA J MAYER P00188643 8586271400 2015 2021-01-29 14:40:06Z DAVE C LAWRENCE 11355 NORTH TORREY PINES ROAD LA JOLLA CA 920371013 351090112 0 X WWW.NU.EDU X 1971 CA NATIONAL UNIVERSITY IS A POST SECONDARY LEVEL EDUCATIONAL INSTITUTION. 20 19 3541 0 -1315437 -1315437 13147444 8763619 217182209 221232533 30961452 7432260 2498403 1856988 263789508 239285400 11925890 5984285 0 0 123615345 130794258 0 0 914616 92920816 88351200 228462051 225129743 35327457 14155657 803661194 790688144 70481306 66157584 733179888 724530560 THE ORGANIZATIONS MISSION IS TO MEET THE CHANGING NEEDS OF DIVERSE LEARNERS WITHIN OUR NATION AND AROUND THE GLOBE. SEE SCHEDULE O. 0 0 156944048 5984285 221232533 NATIONAL UNIVERSITY, AN ACCREDITED UNIVERSITY, PROVIDES POST SECONDARY INSTRUCTION AND EDUCATION AT THE UNDERGRADUATE AND GRADUATE LEVELS AT 27 SITES WITHIN THE STATES OF CALIFORNIA AND NEVADA. THE UNIVERSITY OFFERS OVER 100 DEGREE PROGRAMS AND 80 CREDENTIAL AND CERTIFICATE PROGRAMS. APPROXIMATELY 214,000 INDIVIDUALS HAVE GRADUATED FROM THE UNIVERSITY SINCE ITS INCEPTION IN 1971. APPROXIMATELY 28,800 INDIVIDUALS ATTENDED CLASSES DURING THE TAX YEAR ENDED JUNE 30, 2016. 156944048 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 1 1 1 1 0 1 0 0 0 0 0 0 1 1 1 0 0 0 0 1 0 0 0 0 0 0 0 1 1 1 1 0 0 1 586 0 3541 1 1 1 1 OC 0 0 0 0 0 0 0 0 X 20 19 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X MICHELLE BELLO ASSOCIATE VC FINANCE 8586428636 11355 NORTH TORREY PINES ROAD LA JOLLA CA 920371011 CARLOS RODRIGUEZ TRUSTEE 0.30 X 0 0 0 DAN PITTARD TRUSTEE 0.30 X 0 0 0 DR DONALD KRIPKE VICE CHAIR, TRUSTEE 0.30 X 0 0 0 DR E LEE RICE TRUSTEE 0.30 X 0 0 0 DR MICHAEL CUNNINGHAM CHANCELLOR, TRUSTEE 45.00 X X 513073 0 11091 GERALD CZARNECKI CHAIR, TRUSTEE 0.30 X 0 0 0 HERBERT MEISTRICH TRUSTEE 0.30 X 0 0 0 HIEP QUACH TRUSTEE 0.30 X 0 0 0 JAY STONE TRUSTEE 0.30 X 0 0 0 JEAN LEONARD TRUSTEE 0.30 X 0 0 0 JEANNE CONNELLY SECRETARY/TRUSTEE 0.30 X 0 0 0 KIM FOLSOM TRUSTEE 0.30 X 0 0 0 MICHAEL R MCGILL TRUSTEE 0.30 X 0 0 0 REBECCA HENDERSON TRUSTEE 0.30 X 0 0 0 RICHARD CHISHOLM TREASURER/TRUSTEE 0.30 X 0 0 0 ROBERT FREELEN TRUSTEE 0.30 X 0 0 0 STACY ALLISON TRUSTEE 0.30 X 0 0 0 THOMAS TOPUZES TRUSTEE 0.30 X 0 0 0 TOM CLEVINGER TRUSTEE 0.30 X 0 0 0 WH KNIGHT JR TRUSTEE 0.30 X 0 0 0 DAVID ANDREWS PRESIDENT, NATIONAL UNIVERSITY 45.00 X 0 0 0 RANDY FRISCH VICE CHANCELLOR, BUS & ADMIN 45.00 X 217774 0 28271 CAROL RICHARDSON DEAN, COLS 45.00 X 179346 0 30266 CHRISTOPHER KRUG VP, IT 45.00 X 214221 0 40047 GANGARAM SINGH PROVOST 45.00 X 194853 0 32240 GARY KLEINMAN THRU 416 VICE CHANCELLOR, MARKETING 45.00 X 161795 0 18249 GLORIA MCNEAL DEAN, SHHS 45.00 X 242831 0 18485 JOHN CICERO DEAN, SETM 45.00 X 209200 0 20620 JUDY MANTLE DEAN, SOE 45.00 X 182751 0 21551 LOUIS CRUZ AVP, SOUTHERN REGION 45.00 X 157236 0 33813 MAHVASH YADEGARPOUR AVP, LOS ANGELES REGION 45.00 X 161575 0 34078 MICHELLE BELLO ASSOC VICE CHANCELLOR, FINANCE 45.00 X 227808 0 32603 NANCY ROHLAND EVP, NATIONAL UNIVERSITY 45.00 X 212134 0 33209 STEVEN LORENZET DEAN, SOBM 45.00 X 169607 0 19827 VERNON TAYLOR ASSOC. V.P. MILITARY REGIO 45.00 X 193514 0 31847 ALLYSON HUGHES HANDLEY EXECUTIVE DIRECTOR, SEC 45.00 X 170057 0 7765 BOB BENSON VP, INT'L OPS 45.00 X 182301 0 38068 SHARON LIGHTNER PROFESSOR 45.00 X 171868 0 938 TYLER SMITH PROFESSOR 45.00 X 177866 0 37630 WILLIAM BRUVOLD PRESIDENT, SDIPR 45.00 X 199476 0 13774 DR JERRY LEE II CHANCELLOR EMERITUS, TRUSTEE 8.00 X 516733 0 0 RICHARD CARTER EX VP 40.00 X 150000 0 0 PATRICIA POTTER FORMER PRESIDENT 0.10 X 260000 0 0 5066019 0 504372 187 1 1 0 INITIATIVE MEDIA WORLDWIDE PO BOX 7247-6591 PHILADELPHIA PA 191706591 MARKETING & CONSULTING 10392579 INTERNET MARKETING INC 10620 TREENA STREET SAN DIEGO CA 92131 MARKETING & CONSULTING 4863742 BLACKBOARD INC BOX 200154 PITTSBURGH PA 152510154 SOFTWARE HOSTING 1832469 CAMBRIDGE ASSOCIATES LLC PO BOX 83232 CHICAGO IL 606910232 INVESTMENT MANAGEMENT 1185748 SIERRA-CEDAR INC PO BOX 402521 ATLANTA GA 303842521 IT HOSTING 1107209 138 2047418 6716201 8763619 STUDENT TUITION 611710 221232533 221232533 221232533 5665187 5665187 2725819 82695 1099533 60861 1626286 21834 1648120 21834 1626286 110504376 1907015 108803155 1841163 1701221 65852 1767073 1767073 OTHER REVENUE 900099 1546139 1546139 K-1 PASS-THROUGH 900099 -1337271 -1337271 208868 239285400 221232533 -1315437 10604685 789317 789317 5194968 5194968 3813789 3813789 99693819 76941290 22175197 577332 3836377 2685464 1150913 15822902 10983609 4637587 201706 7627371 6229678 1356590 41103 1464356 857398 606958 190838 190838 2395786 2395786 8789471 3186857 5597527 5087 19143220 13323681 5815910 3629 6742289 2911601 3820823 9865 7353866 5118291 2219857 15718 16178108 11259963 4907545 10600 2654406 1338185 1299915 16306 1452331 736300 708387 7644 12494 186 12308 12892496 8973177 3919319 1323855 1323855 BAD DEBT 3178690 2212368 966322 LIBRARY SUBSCRIPTIONS 1688229 1687337 892 2890765 2514378 351653 24734 225129743 156944048 67271079 914616 46204282 60946768 29247674 28586171 7239531 7696681 217088910 122949801 103345737 94139109 186562978 163001237 409321475 410826451 21739517 25491727 803661194 790688144 17660892 17139343 31179389 31129930 21641025 17888311 70481306 66157584 X 702820679 692388279 13390704 11820928 16968505 20321353 733179888 724530560 803661194 790688144 X 14155657 -24142256 1337271 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 135300 0 0 135300 0 PART II-B, LINE 1: DOLLAR AMOUNT WAS NEGOTIATED TAKING INTO CONSIDERATION PREVIOUS CONTRACTS WITH NU, AND SIMILAR CONTRACTS WITH OTHER UNIVERSITIES. AMOUNT IS EQUAL TO OR LESS THAN THOSE CONTRACTS AND IS TYPICAL AMOUNTS CHARGED BY OTHER FIRMS. LOBBYING INVOLVES PROVIDING CLIENT (NU) WITH TIMELY ADVICE AND INFORMATION AS TO PEOPLE AND POLICIES IN WASHINGTON BY A FULL TIME FIRM WITH 30 YEARS EXPERIENCE IN UNIVERSITY LOBBYING. FIRM MAKES RECOMMENDATIONS FOR MEETINGS FOR CHANCELLOR, PRESIDENTS, AND GOVERNMENT AFFAIRS VICE CHANCELLOR WITH VARIOUS MEMBERS OF CONGRESS, THEIR STAFFS, AND EXECUTIVE BRANCH AGENCIES. THEN, IT SCHEDULES THE MEETINGS, PROVIDES TALKING POINTS AND ATTENDS TO FACILITATE THE DISCUSSIONS. THEN, FOLLOW UP ACTIONS ARE TAKEN, SUCH AS WRITING LETTERS, MAKING PHONE CONTACTS AND SUGGESTING FURTHER SUCH CONFERENCES AND MEETINGS. ANOTHER PART OF THE CONTRACT DOES NOT INVOLVE LOBBYING, BUT ASSISTS NU IN PREPARING COMPETITIVE BIDS FOR VARIOUS GOVERNMENT AGENCY CONTRACTS. 557241139 3352848 -18088557 1426743 541078687 551797347 3434806 2008986 557241139 466322821 10206593 75281301 13368 551797347 408140254 13966821 44239610 23864 466322821 406211736 10567143 -8638625 408140254 0.94880 0.03760 0.01370 0 0 32583153 32583153 82727657 36805271 45922386 17652270 14105272 3546998 53790025 43823327 9966698 30335805 28215931 2119874 94139109 ALTERNATIVE ASSETS 322758436 F PRIVATELY HELD INVESTMENTS 88068015 F 410826451 LOAN TO NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL 3586404 REFUNDABLE PERKINS LOAN PROGRAM 3945201 DEFERRED COMPENSATION 2350910 DEFERRED RENT 3229917 AMOUNTS HELD ON BEHALF OF OTHERS 4775879 17888311 X 209984203 -24142256 1160394 -22981862 232966065 6319335 6319335 239285400 218633531 1160394 1160394 217473137 7656606 7656606 225129743 PART V, LINE 4: TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS AS WELL AS ENSURING NATIONAL UNIVERSITY'S ABILITY TO SUSTAIN AND ENHANCE QUALITY AND COST EFFECTIVE EDUCATION OPPORTUNITIES FOR FUTURE ADULT LEARNERS. THE ENDOWMENT WILL BE USED TO STRENGTHEN NATIONAL UNIVERSITY'S ABILITY TO SUSTAIN AND ENHANCE QUALITY AND COST EFFECTIVE EDUCATION OPPORTUNITIES FOR FUTURE ADULT LEARNERS. INVESTMENT EARNINGS ARE GENERALLY REINVESTED, INASMUCH AS NATIONAL UNIVERSITY DOES NOT OPERATE AT A DEFICIT. SPECIFIC GIFTS TO THE TRUE ENDOWMENT CAN BE DIRECTED TOWARDS SPECIFIC PURPOSES SUCH AS SCHOLARSHIPS, THE LIBRARY, OR ENDOWED CHAIRS. PART X, LINE 2: NATIONAL UNIVERSITY (NU) IS A NON-PROFIT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE 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. 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. NU HAS ANALYZED THE TAX POSITIONS TAKEN IN ITS FILINGS WITH THE INTERNAL REVENUE SERVICE AND THE CALIFORNIA FRANCHISE TAX BOARD. NU 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 NU'S FINANCIAL CONDITION, RESULTS OF OPERATIONS OR CASH FLOWS. ACCORDINGLY, NU HAS NOT RECORDED ANY RESERVES, OR RELATED ACCRUALS FOR INTEREST AND PENALTIES FOR UNCERTAIN INCOME TAX POSITIONS AT JUNE 30, 2016 AND 2015. PART XI, LINE 2D - OTHER ADJUSTMENTS: FACILITY AND LAB RENTAL EXPENSES 1,160,394. PART XI, LINE 4B - OTHER ADJUSTMENTS: GAIN ON DISPOSAL OF ASSETS 65,852. MERIT SCHOLARSHIPS 5,194,968. INVESTMENT ADVISORY AND CUSTODIAL FEES 2,395,786. K-1 PASS-THROUGH -1,337,271. PART XII, LINE 2D - OTHER ADJUSTMENTS: FACILITY AND LAB RENTAL EXPENSES 1,160,394. PART XII, LINE 4B - OTHER ADJUSTMENTS: GAIN ON DISPOSAL OF ASSETS 65,852. MERIT SCHOLARSHIPS 5,194,968. INVESTMENT ADVISORY AND CUSTODIAL FEES 2,395,786. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 ADVERTISING PLACED IN MEDIA AND ON NU EXTERNAL FACING WEBSITE GENERALLY CONTAIN THE FOLLOWING STATEMENT: ADMISSION IS OPEN TO QUALIFIED APPLICANTS WITHOUT REGARD TO RACE, RELIGION, SEX, AGE, PHYSICAL DISABILITY, OR ETHNIC ORIGIN. SCHEDULE E, PART I, LINE 6 THE UNIVERSITY RECEIVES SEOG, PELL AND TEACH GRANTS FROM THE UNITED STATES GOVERNMENT AND ALSO PARTICIPATES IN STUDENT LOAN PROGRAMS THROUGH THE DEPARTMENT OF EDUCATION'S DIRECT LENDING AND PERKINS LOAN PROGRAMS. 1 CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, INVESTMENT 10064525 CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, SENDING AGENTS OF THE ORGANIZATION TO ATTEND AND SPEAK AT SEMINARS AND CONFER 1633 EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, SENDING AGENTS OF THE ORGANIZATION TO ATTEND AND SPEAK AT SEMINARS AND CONFER 10788 EUROPE (INCLUDING ICELAND & GREENLAND) - ALBANIA, ANDORRA, AUSTRIA, BELGIUM SENDING AGENTS OF THE ORGANIZATION TO ATTEND AND SPEAK AT SEMINARS AND CONFER 15239 MIDDLE EAST AND NORTH AFRICA - ALGERIA, BAHRAIN, DJIBOUTI, EGYPT, SENDING AGENTS OF THE ORGANIZATION TO ATTEND AND SPEAK AT SEMINARS AND CONFER 4777 NORTH AMERICA - CANADA AND MEXICO, BUT BUT NOT THE UNITED STATES SENDING AGENTS OF THE ORGANIZATION TO ATTEND AND SPEAK AT SEMINARS AND CONFER 4574 SOUTH AMERICA - ARGENTINA, BOLIVIA, BRAZIL, CHILE, COLUMBIA, ECUADOR, SENDING AGENTS OF THE ORGANIZATION TO ATTEND AND SPEAK AT SEMINARS AND CONFER 13168 SUB SAHARAN AFRICA SENDING AGENTS OF THE ORGANIZATION TO ATTEND AND SPEAK AT SEMINARS AND CONFER 424 0 0 0 0 0 0 10115128 0 10115128 1 0 0 1 1 0 PART I, LINE 3: ACCRUAL BASIS METHOD OF ACCOUNTING 1 WESTMED COLLEGE 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 900171867 501 (C) (3) 500000 OPERATIONS CITY UNIVERSITY OF SEATTLE 521 WALL STREET SEATTLE WA 98121 237421224 501 (C) (3) 167250 OPERATIONS JOHN F KENNEDY UNIVERSITY 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 941610694 501 (C) (3) 109567 OPERATIONS USO OF SAN DIEGO 303 A STREET STE 100 SAN DIEGO CA 92101 951644030 501 (C) (3) 7500 OPERATIONS SAN DIEGO CITY COLLEGE 1313 PARK BOULEVARD SAN DIEGO CA 92101 952644299 501 (C) (3) 5000 OPERATIONS 5 VARIOUS SCHOLARSHIPS TO NU STUDENTS 3004 5194968 PART I, LINE 2: NATIONAL 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 X 1 1 0 0 0 0 0 1 0 DR MICHAEL CUNNINGHAM CHANCELLOR, TRUSTEE 513073 0 0 0 0 0 180 0 10911 0 524164 0 0 0 RANDY FRISCH VICE CHANCELLOR, BUS & ADMIN 217774 0 0 0 0 0 12058 0 16213 0 246045 0 0 0 CAROL RICHARDSON DEAN, COLS 179346 0 0 0 0 0 13104 0 17162 0 209612 0 0 0 CHRISTOPHER KRUG VP, IT 214221 0 0 0 0 0 15441 0 24606 0 254268 0 0 0 GANGARAM SINGH PROVOST 194853 0 0 0 0 0 7297 0 24943 0 227093 0 0 0 GARY KLEINMAN THRU 416 VICE CHANCELLOR, MARKETING 161795 0 0 0 0 0 0 0 18249 0 180044 0 0 0 GLORIA MCNEAL DEAN, SHHS 242831 0 0 0 0 0 300 0 18185 0 261316 0 0 0 JOHN CICERO DEAN, SETM 209200 0 0 0 0 0 14376 0 6244 0 229820 0 0 0 JUDY MANTLE DEAN, SOE 182751 0 0 0 0 0 12845 0 8706 0 204302 0 0 0 LOUIS CRUZ AVP, SOUTHERN REGION 157236 0 0 0 0 0 8870 0 24943 0 191049 0 0 0 MAHVASH YADEGARPOUR AVP, LOS ANGELES REGION 161575 0 0 0 0 0 9135 0 24943 0 195653 0 0 0 MICHELLE BELLO ASSOC VICE CHANCELLOR, FINANCE 227808 0 0 0 0 0 14418 0 18185 0 260411 0 0 0 NANCY ROHLAND EVP, NATIONAL UNIVERSITY 212134 0 0 0 0 0 15024 0 18185 0 245343 0 0 0 STEVEN LORENZET DEAN, SOBM 169607 0 0 0 0 0 1372 0 18455 0 189434 0 0 0 VERNON TAYLOR ASSOC. V.P. MILITARY REGIO 193514 0 0 0 0 0 13662 0 18185 0 225361 0 0 0 ALLYSON HUGHES HANDLEY EXECUTIVE DIRECTOR, SEC 149957 0 20100 0 0 0 510 0 7255 0 177822 0 0 0 BOB BENSON VP, INT'L OPS 182301 0 0 0 0 0 13125 0 24943 0 220369 0 0 0 SHARON LIGHTNER PROFESSOR 171868 0 0 0 0 0 938 0 0 0 172806 0 0 0 TYLER SMITH PROFESSOR 177866 0 0 0 0 0 13024 0 24606 0 215496 0 0 0 WILLIAM BRUVOLD PRESIDENT, SDIPR 199476 0 0 0 0 0 13774 0 0 0 213250 0 0 0 DR JERRY LEE II CHANCELLOR EMERITUS, TRUSTEE 5760 0 0 0 510973 0 0 0 0 0 516733 0 0 0 RICHARD CARTER EX VP 0 0 0 0 150000 0 0 0 0 0 150000 0 0 0 PATRICIA POTTER FORMER PRESIDENT 0 0 0 0 260000 0 0 0 0 0 260000 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, LINES 4A-B DR. JERRY LEE, PATRICIA POTTER, AND RICHARD CARTER PARTICIPATED IN A 457(B) SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN DURING FISCAL YEAR ENDING JUNE 30, 2016. PLAN DISTRIBUTIONS WERE MADE DURING THE YEAR ENDING 6/30/16 (DR. JERRY LEE $516,733. PATRICIA POTTER $260,000 AND RICHARD CARTER $150,000). 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. 33878 SCHOLARSHIP REDUCE TUITION FORM 990, PART VI, SECTION B, LINE 11 THE DRAFT 990 IS REVIEWED INTERNALLY BY THE CONTROLLER, AVC OF FINANCE, AND VC OF FINANCE TO ENSURE IT IS BEING REPORTED CORRECTLY. SCHEDULES AND AMOUNTS ARE REVIEWED AND VETTED AGAINST SOURCE DOCUMENTS AND THE AUDITED FINANCIAL STATEMENTS. ONCE THIS REVIEW IS COMPLETED, THE DRAFT 990 IS SENT TO THE BOARD OF TRUSTEES' AUDIT COMMITTEE FOR THE FINAL REVIEW. EACH AUDIT COMMITTEE MEMBER REVIEWS AND PROVIDES THEIR FEEDBACK TO THE NU TAX PREPARATION TEAM; ONCE THE AUDIT COMMITTEE HAS FINISHED THEIR REVIEW, THE DRAFT IS FINALIZED AFTER CHANGES, IF ANY, ARE UPDATED THROUGH THIS FINAL REVIEW, MADE AVAILABLE TO ALL BOARD MEMBERS, AND SUBMITTED FOR SIGNING AND FILING BY THE VC OF FINANCE. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES HAS PERIODICALLY 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 COUNCIL. THE INTERESTED TRUSTEES WERE EXCUSED FROM BOARD SESSIONS DURING WHICH THOSE BUSINESS TRANSACTIONS WERE DISCUSSED AND DID NOT PARTICIPATE IN VOTING ON SUCH TRANSACTIONS. THE MOST RECENT SUCH REVIEW OCCURRED DURING FISCAL YEAR 2013-2014. THE CONFLICT OF INTEREST POLICY WAS REVIEWED AND UPDATED BY THE BOARD IN 2010. QUESTIONNAIRES HAVE BEEN DISTRIBUTED. COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY IS MONITORED BY UNIVERSITY COUNCIL AND WAS REVIEWED BY THE BOARD AT THE FEBRUARY, 2014 MEETING 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 FOR OTHER OFFICERS AND KEY EMPLOYEES IS REVIEWED BY THE BOARD (OR ITS COMMITTEE). IN BOTH CASES, 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 JUNE 20, 2015. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: K-1 PASS-THROUGH 1,337,271. FORM 990, PART III, LINE 1: ORGANIZATION'S MISSION- THE ORGANIZATION PURSUES ITS MISSION WITH DUE REGARD TO ITS LEVELS OF ACCREDITATION. THE BOARD OF TRUSTEES UPDATED ITS MISSION AT A MEETING IN 2010. FORM 990, PART VIII, LINE 1E, GRANTS: GRANTS DESCRIPTION- THE UNIVERSITY RECEIVES SEOG, PELL, SMART, AND ACG GRANTS FROM THE U.S. GOVERNMENT. THESE GRANTS ARE DISBURSED TO A LARGE NUMBER OF STUDENTS. DETAILED LISTS ARE MAINTAINED BY THE UNIVERSITY. FORM 990, PART VII, COMPENSATION: DR. LEE COMPENSATION- AS CHANCELLOR OF THE NATIONAL UNIVERSITY SYSTEM ("NUS") PURSUANT TO THE AFFILIATION AGREEMENT, DR. LEE GUIDED THE STRATEGIC DIRECTION OF THE NU AFFILIATES. HE SPEARHEADED THE CREATION AND GROWTH OF THE NUS SINCE ITS INCEPTION IN 2001 THROUGH HIS RETIREMENT IN SEPTEMBER 2013. DURING THE FISCAL YEAR 2008-2009, HE LED THE NEGOTIATIONS THAT CULMINATED IN JOHN F. KENNEDY UNIVERSITY BECOMING AN AFFILIATE OF THE NUS. THANKS TO THAT AFFILIATION, THE NUS NOW INCLUDES AN INSTITUTION THAT IS ACCREDITED TO AWARD DOCTORAL DEGREES. DURING THE FISCAL YEAR 2012-2013, HE LED THE NEGOTIATIONS THAT CULMINATED IN CITY UNIVERSITY OF SEATTLE BECOMING AN AFFILIATE OF NUS. THANKS TO THAT AFFILIATION, NUS ADDED 30 ADDITIONAL CAMPUSES AND OVER 7,000 STUDENTS. SEE STATEMENT ON SCHEDULE O THAT REFERENCES SCHEDULE R, FOR A DESCRIPTION OF THE NUS. THE CHANCELLOR'S COMPENSATION IS PAID BY SYSTEM MANAGEMENT GROUP ("SMG") AND IS ALLOCATED AMONG OTHER NUS AFFILIATES. SEE FORM 990 FILED BY SMG. NONE OF DR. LEE'S COMPENSATION IS ALLOCATED TO ANY OTHER ORGANIZATION OUTSIDE THE NUS. FORM 990, PART VII AND SCHEDULE J, PART II: COMPENSATION: RELATED PARTY- ALL COMPENSATION FOR CERTAIN OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES IS ALLOCATED BY SMG TO NUS AFFILIATES PURSUANT TO THE AFFILIATION AGREEMENT. FOR A COMPLETE LISTING OF RELATED PARTY ALLOCATION OF COMPENSATION AND BENEFITS PLEASE REFER TO SMG FORM 990, SCHEDULE O DISCLOSURE. SPECTRUM PACIFIC LEARNING COMPANY 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 237172306 E-LEARNING SOLUTION AND SERVICE PROVIDER CA 0 0 NATIONAL UNIVERSITY NATIONAL UNIVERSITY INTERNATIONAL 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 237172306 GLOBAL MARKETING AND DISTRIBUTION CHANNEL FOR APPILIATES ONLINE PROGRAMS CA 0 0 NATIONAL UNIVERSITY SYSTEM MANAGEMENT GROUP 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 201269904 PROVIDE ADMINISTRATIVE SERVICES TO AFFILIATED INSTITUTIONS CA 501 (C) (3) LINE 11A, I N/A 1 NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 562438569 EDUCATIONAL INSTITUTION CA 501 (C) (3) LINE 9 N/A 1 WESTMED COLLEGE 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 900171867 EDUCATIONAL INSTITUTION CA 501 (C) (3) LINE 9 N/A 1 JOHN F KENNEDY UNIVERSITY 100 ELLINWOOD WAY PLEASANT HILL CA 945234817 941610694 EDUCATIONAL INSTITUTION CA 501 (C) (3) LINE 2 N/A 1 SPECTRUM PACIFIC LEARNING INC 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 453996682 INACTIVE CA 501 (C) (3) LINE 9 N/A 1 NATIONAL UNIVERSITY INTERNATIONAL INC 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 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 1 1 0 1 0 0 0 0 0 1 0 1 0 1 1 1 1 1 0 CITY UNIVERSITY OF SEATTLE B 167250 CASH CITY UNIVERSITY OF SEATTLE D 705503 CASH JOHN F KENNEDY UNIVERSITY L 4155210 CASH JOHN F KENNEDY UNIVERSITY Q 5197342 CASH JOHN F KENNEDY UNIVERSITY B 109567 CASH JOHN F KENNEDY UNIVERSITY J 601718 CASH JOHN F KENNEDY UNIVERSITY A 292601 CASH JOHN F KENNEDY UNIVERSITY D 13427858 CASH NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL A 12308 CASH NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL Q 1944272 CASH NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL L 1197481 CASH NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL E 3586404 CASH SYSTEM MANAGEMENT GROUP L 3476 CASH SYSTEM MANAGEMENT GROUP Q 0 CASH WESTMED COLLEGE D 699244 CASH WESTMED COLLEGE A 13412 CASH WESTMED COLLEGE J 0 CASH WESTMED COLLEGE B 500000 CASH WESTMED COLLEGE L 2845768 CASH SCHEDULE R, RELATED ORGANIZATIONS: THE NU SYSTEM (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, WESTMED COLLEGE, JOHN F. KENNEDY UNIVERSITY (WHICH OFFERS DOCTORAL PROGRAMS AS WELL AS A LAW SCHOOL), 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. 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 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, WESTMED COLLEGE, JOHN F. KENNEDY UNIVERSITY, CITY UNIVERSITY OF SEATTLE, AND SYSTEM MANAGEMENT GROUP.