2016-11-01T13:22:41-05:00 2016-06-30 200427530 RIVES & ASSOCIATES LLP 4515 FALLS OF NEUSE ROAD SUITE 450 RALEIGH NC 27609 990 2015-07-01 562106758 CONSUMER EDUCATION SERVICES INC CONS 9198615340 3700 BARRETT DR RALEIGH NC 27609 DR DIANE CHEN CEO/SECRETARY OF BOA 9198615340 2016-09-23 true THOMAS B CORNWELL CPA P00901347 9198326848 2016-11-01 2015 2017-02-10 21:41:12Z DR DIANE CHEN 3700 BARRETT DRIVE RALEIGH NC 27609 43233322 false X WWW.CESISOLUTIONS.ORG X 1998 NC CONSUMER EDUCATION SERVICES, INC ("CESI") IS A NON-PROFIT SERVICE PROVIDER OF COMPREHENSIVE PERSONAL FINANCIAL EDUCATION AND SOLUTIONS FOR ALL LIFE STAGES AND FOR ALL LIFE'S MILESTONES OUR GOAL IS ENHANCED ECONOMIC SECURITY FOR EVERYONE WE SERVE. 7 7 109 11 33630 7619 2724938 1683888 5998796 5125259 1799204 -299494 23697 70851 10546635 6580504 7415379 0 4264442 4970477 0 0 6493861 6085685 10758303 18471541 -211668 -11891037 36723307 23753463 3755448 3238338 32967859 20515125 X CONSUMER EDUCATION SERVICES, INC ("CESI") IS A NON-PROFIT SERVICE PROVIDER OF COMPREHENSIVE PERSONAL FINANCIAL EDUCATION AND SOLUTIONS FOR ALL LIFE STAGES AND FOR ALL LIFE'S MILESTONES OUR GOAL IS ENHANCED ECONOMIC SECURITY FOR EVERYONE WE SERVE. false false 7049013 6476583 THIS PROGRAM ASSIST CLIENTS IN MANAGING THEIR PERSONAL FINANCES THROUGH THE PROVISION OF DEBT MANAGEMNT SERVICES, CREDIT COUNSELING, EDUCATION AND TRAINING, AND BUDGET PLANNING. CESI OFFERS ASSISTANCE OVER THE PHONE, ONLINE, AND IN PERSON. CERTIFIED CREDIT COUNSELORS DISCUSS VARIOUS OPTIONS WITH CLIENTS REGARDING FINANCIAL DECISIONS. THEY ASSESS INDIVIDUALS' PERSONAL FINANCIAL SITUATIONS AND ASSIST THEM IN DEVELOPING A BUDGET IN ORDER TO IMPROVE THEIR OVERALL CREDIT. DURING THE FISCAL YEAR ENDING JUNE 30, 2016 APPROXIMATELY 19,700 FINANCIALLY DISTRESSED INDIVIDUALS RECEIVED CREDIT COUNSELING AND FREE EDUCATIONAL RESOURCE MATERIALS. 843053 COMMUNITY EDUCATION OUTREACH: CESI SUPPORTS THE ADVANCEMENT OF FINANCIAL LITERACY EDUCATION WITHIN LOCAL AND STATE COMMUNITITES THROUGH A STRONG COMMUNITY OUTREACH PROGRAM. CESI'S OUTREACH EFFORTS INCLUDED GROUP EDUCATION PROGRAMS IN A CLASSROOM SETTING, TYPICALLY IN PARTNERSHIP WITH LOCAL COMMUNITY AGENCIES OR EDUCATIONAL INSTITUTIONS. DURING THE FISCAL YEAR ENDING JUNE 30, 2016 CESI CONDUCTED 380 CLASSES ASSISTING APPROXIMATELY 8,607 INDIVIDUAL OR FAMILIES AT IN-PERSON CLASSROOM SESSIONS COVERING TOPICS SUCH AS: BUDGETING AND SAVING, BANKING, IDENTITY THEFT PROTECTION, UNDERSTANDING YOUR CREDIT REPORT, FINANCES AFTER JOB LOSS, GOAL SETTING, RETIREMENT SAVINGS, CREDIT AND DEBT. THE SECOND PART OF THE CESI OUTREACH PROGRAM EFFORT IS IN THE FORM OF FREE INDIVIDUAL FINANCIAL COUNSELING AT THE CESI CENTER WITH AN ACCREDITED CESI COUNSELOR. IN THE PAST YEARS, CESI HAS TRACKED THE OUTREACH CLASS INFORMTAION IN A SPREADSHEET, COLLECTING THE DATE, LENGTH, INSTRUCTOR, TOPIC AND LOCATION OF EACH CLASS AS WELL AS A NUMBER OF PERSONS ATTENDING. WE HAVE ALSO COLLECTED PAPER EVALUATIONS FROM OUR STUDENTS TO ALLOW OUR EDUCATORS THE FEEDBACK ON HOW WE CAN IMPROVE OUR EDUCATION. THESE EVALUATIONS HAVE BEEN REVIEWED BUT NOT RECORDED IN A DATABASE. OUR EFFORT TO MONITOR OUR EFFEFTIVENESS IN REACHING THE NEEDS OF CONSUMERS WITH FINANCIAL EDUCATION, WE REDESIGNED OUR TRACKING PROCESS FOR 2014. WE CREATED A DATABASE WHERE EACH CLASS IS ENTERED WITH THE ABILITY TO ADD THE INDIVIDUAL STUDENT INFORMATION FOR EACH CLASS. WE ALSO BEGIN COLLECTING DEMOGRAPHIC AND CONTACT INFORMATION FOR OUR STUDENTS AS WELL AS A PRE AND POST ASSESSMENT AND A COURSE EVALUATION THAT WILL ALLOW US TO REPORT ON THE OUTCOMES OF OUT CLASSES AND EFFECTIVENESS OF OUR COURSES AND INSTRUCTORS. THIS WILL ALLOW US TO DO TARGETED FOLLOW-UP WITH STUDENTS WHO ELECT TO PROVIDE US WITH THEIR EMAIL CONTACT INFORMATION. WE WILL PROVIDE ONGOING EDUCATIONAL RESOURCES THAT MEET THEIR SPECIFIC NEEDS OR ARE TARGETED TO THEIR DEMOGRAPHIC. CESI OFFERS MORE THAT 35 DIFFERENT TOPICS GEARED TOWARD AN ADULT OR A YOUTH AUDIENCE. WE UTILIZE 5 COMMUNITY EDUCATORS TO CONDUCT CLASSES AND ASSIST THE COMMUNITY PARTNERS. CESI CURRENTLY HAS 29 COMMUNITY PARTNERS THAT HAVE RECEIVED EDUCATION SUPPORT IN 2014. 298934 HOUSING: CESI HOMEOWNERSHIP CENTER HAD A PRODUCTIVE YEAR AND EXPERIENCED A 15% INCREASE IN CLIENTS SERVED OVER LAST YEAR. WE PROVIDED A VARIETY OF COUNSELING SERVICES, RANGING FROM FORECLOSURE PREVENTION TO PRE PURCHASE, TO 775 INDIVIDUALS AND FAMILIES. APPROXIMATELY 52% OF CLIENTS RECEIVED FORECLOSURE PREVENTION COUNSELING, 33% RECEIVED REVERSE MORTGAGE COUNSELING AND THE REMAINING 15%, PRE PURCHASE COUNSELING, GROUP EDUCATION WORKSHOPS OR OTHER SERVICES. WE WORKED WITH COMMUNITY PARTNERS, FACILLITATING HOME BUYER GROUP EDUCATION WORKSHOPS FOR COMMUNITY LAND TRUSTEES AND HABITAT FOR HUMANITY OF WAKE COUNTY. CESI STAFF ALSO PARTICIPATED IN OVER A DOZEN COMMUNITY OUTREACH EVENTS, INCLUDING OUR SIGNATURE NATIONAL HOMEOWNERSHIP MONTH COMMUNITY DAY CELEBRATION AND LA FIESTA DE PUEBLO 2014, AN ANNUAL FESTIVAL CELEBRATING LATINO CULTURE. CESI ALSO ASSIST CONSUMERS THROUGH THE NORTH CAROLINA HOUSING FINANCE AGENCY (NCHFA). THE FIRST PROJECT IS STATE HOME FORECLOSURE PREVENTION PROJECT(SHFPP) WHICH HELPS NORTH CAROLINA HOMEOWNERS WHO HAVE RECEIVED A 45 DAY LETTER FROM THEIR SERVICER TO AVOID FORCLOSURE BY PUTTING THEM IN CONTACT WITH A HUD HOUSING COUNSELING AGENCIES WHO CAN ASSIST THEM WITH LOSS MITIGATION OPTIONS. OTHER PROJECTS ARE HARDEST HIT FUND (HHF), NORTH CAROLINA FORECLOSURE PREVENTION FUND (FPF), OR MORTGAGE PAYMENT PROGRAM (MPP). THESE PROJECTS HELP NORTH CAROLINA HOMEOWNERS WHO HAVE LOST THEIR JOBS OR HAVE EXPERIENCED SOME OTHER TYPE OF EMPLOYMENT RELATED FINANCIAL HARDSHIP TO MAKE THEIR MORTGAGE PAYMENTS WHILE THEY LOOK FOR JOB OR RETRAIN FOR A NEW JOB. BETWEEN JULY 1, 2013 AND JUNE 30, 2014 CESI HANDLED 104,658 PHONE CALLS WITH CONSUMERS THAT EITHER RECEIVED LETTERS FROM NCHFA OR WHO HAVE LEARNED ABOUT THE FPF PROGRAM VIA THE WEBSITE NCFORECLOSUREPREVENTION.GOV OR OTHER TYPES OF MARKETING THAT HAS BEEN DONE FOR THE PROGRAM. 8748644 7415379 CLIENT PAYMENT PROCESSING- THIS PROGRAM PROVIDES SERVICES TO ITS DEBT MANAGEMNT PARTICIPANTS WITH RESPEST TO PROCESSING PAYMENTS, WORKING WITH CREDITORS TO SECURE A REDUCTION IN INTEREST RATES, AND EDUCATION AND TRAINING CLIENTS TO BETTER MANAGE THEIR FINANCES. FOR THE LEGACY PORTOFOLIO, CLIENT PAYMENT PROCESSING IS OUTSOURCED TO A THIRD PARTY SERVICE WITH CESI'S FINAL APPROVAL.CESI DISCONTINUED THE THIRD PARTY PROCESSING SERVICES ON JUNE 24, 2016. ENDOWMENT TO INSTITUTE OF CONSUMER MONEY MANAGEMENT MARCH 11, 2016 CESI'S BOARD APPROVED AND SIGNED GRANT AGREEMENT FOR TRANSFER OF GRANT IN THE AMOUNT OF 7,415,379 TO THE INSTITUTE OF CONSUMER MONEY MANAGEMENT, A NONPROFIT TAX EXEMPT 501C3 AGENCY. AGREEMENT CONTAINS TERMS AND CONDITIONS, INCLUDING WHAT THE FUNDS COULD BE USED FOR, THE REQUIREMENT OF ANNUAL REPORT ON THE INSTITUTE'S ACTIVITIES AND SPENDING, UPDATE ON THE INSTITUTE'S INVESTMENT PORTFOLIO, AND THEIR RIGHT TO COMMISSION A QUALIFIED THIRD PARTY TO AUDIT THE INSTITUTE'S BOOKS IF THEY HAVE CONCERNS ON HOW FUNDS ARE BEING USED AND/OR MANAGED. THE INSTITUTE OF CONSUMER MONEY MANAGEMENT'S BOARD APPROVED AND SIGNED THE GRANT AGREEMENT. BOTH CESI AND INSTITUTE OF CONSUMER MONEY MANAGEMENT HAVE ITS SEPARATE AND INDEPENDENT BOARDS OF DIRECTORS. 8748644 7415379 16640710 true true false false false false false false true false true false false true true true true false 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 false false false false true 19 0 true 109 true true true false false false false false X 7 7 false false false false false false false true true false false false true true true true true true true false NC WV IL OR X X DIANE CHEN 9198615340 3700 BARRETT DRIVE RALEIGH NC 27609 DR DIANE CHEN CEO/SECRETAR 40.00 X X 170282 0 19219 AMY BLACKWELL BOARD MEMBER 5.00 X 0 0 0 ROBERT J FITZGERALD CHAIRMAN 10.00 X X 0 0 0 DR FRED MANGUM BOARD MEMBER 1.00 X 0 0 0 WAYNE STALLINGS BOARD MEMBER 1.00 X 0 0 0 ALEXIS NELSON BOARD MEMBER 1.00 X 0 0 0 NAVEED IFTIKAR BOARD MEMBER 1.00 X 0 0 0 STEVE COLE TREASURER 40.00 X 84020 0 12548 254302 31767 1 false true false NATIONAL DEBT RELIEF 11 BROADWAY 16TH FLOOR NEW YORK NY 10004 MARKETING 1132650 GOOGLE PO BOX 39000 SAN FRANCISCO CA 94139 MARKETING 726950 AMERIX CORPORATION 9755 PATUXENT WOODS DRIVE COLUMBIA MD 21046 PROCESSOR 452345 3CI 9755 PATUXENT WOODS DRIVE COLUMBIA MD 21046 MARKETING 313420 CAROLINA IT 1600 HILLSBOROUGH STREET RALEIGH NC 27605 INFORMATION TEC 310939 5 1683888 1683888 DEBT MANAGEMENT PROGRAM 3838709 3838709 COUNSELING PROGRAMS 953986 953986 HOUSING SERVICES 298934 298934 MEMBER BENEFIT SERVICES 900099 33630 33630 5125259 959195 959195 35182835 211294 36429376 223442 -1246541 -12148 -1258689 -1258689 OTHER INCOME 70851 70851 70851 6580504 5162480 33630 -299494 7415379 7415379 4059519 3450591 608928 553820 470747 83073 357138 303567 53571 206281 175339 30942 24814 24814 223581 223581 2556029 2556029 484139 429680 54459 528121 448903 79218 51069 45962 5107 13836 11761 2075 44304 44304 97122 82554 14568 55061 46802 8259 BAD DEBT 514731 3333 511398 PROCESSING FEES 427334 427334 BANKRUPTCY 355748 302386 53362 BANK FEES 158626 114662 43964 344889 355681 -10792 18471541 16640710 1830831 0 1636525 3621624 1086648 1086254 74128 1090000 952852 82872 70440 2638699 1482869 1476395 1155830 27229882 14378487 4046857 2487976 36723307 23753463 499482 488259 877885 806693 2096672 1679723 281409 263663 3755448 3238338 X 32967859 20515125 32967859 20515125 36723307 23753463 -11891037 -561697 X false true X true false X 6106233 5000680 3927709 2724938 1683888 19443448 6106233 5000680 3927709 2724938 1683888 19443448 5181352 14262096 100434 1717659 1631220 890075 959195 5298583 132282 215706 7619 355607 25097638 125788731 0.56830 0.61100 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true X 156896 156896 1127650 193138 934512 1271439 1232946 38493 82714 56785 25929 1155830 INTANGIBLE PROPERTY 2200000 NONQUALIFIED RETIREMENT PLAN ASSETS 263663 SECURITY DEPOSITS 24313 ESCROW BONDS NOTE RECEIVABLE CASH SURRENDER VALUE OF LIFE INS POL 2487976 NONQUALIFIED RETIREMENT PLAN LIABILI 263663 263663 X 6018807 -561697 -561697 6580504 6580504 18471541 18471541 18471541 SCHEDULE D, PAGE 2, PART IV, LINE 2B CESI OFFERS DEBT MANAGEMENT PROGRAMS TO ASSIST CLIENTS IN PAYING THEIR UNSECURED DEBTS FUNDS RECIEVED FROM CLIENTS PARTICIPATING IN THE DEBT MANAGEMENT PROGRAM ARE DEPOSITED INTO VARIOUS DEPOSITORY ACCOUNTS AND IN TO A SEPARATE FOR THE BENEFIT OF OTHER ACCOUNT (THE "FBO ACCOUNT") ON A DAILY BASIS. FUNDS RESIDING IN THE FBO ACCOUNTS ARE DISBURSED TO CESI'S OPERATING ACCOUNT AS CONTRIBUTIONS MADE TO CESI BY CREDITORS AND/OR CLIENTS. CERTAIN STATES REQUIRE THAT CLIENTS FUNDS BE HELD IN A DEPOSITORY ACCOUNT WITHIN THAT STATE UNTIL THE RESPECTICVE CREDITORS ARE PAID. IN THIS SITUATION CREDITORS ARE PAID FROM MONIES FROM THIS STATE'S DEPOSITORY ACCOUNT. INTEREST INCOME EARNED ON FUNDS HELD IN THE VARIOUS RESTRICTED ACCOUNTS IS USED TO PAY FOR BANK FEES AND OTHER EXPENSES. CESI IS RESPONSIBLE FOR ANY EXCESS EXPENSE ARISING FROM THE ACTIVITIES OF THESE ACCOUNTS. SCHEDULE D, PAGE 3, PART X CESI HAS ADOPTED THE PROVISIONS OF FASB ASX 740-10-25, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. UNDER THIS PROVISION, AN ORGANIZATION MUST RECOGNIZE THE TAX BENEFIT ASSOCIATED WITH TAX PROVISIONS FOR THE TAX RETURN PURPOSES WHEN IT IS MORE LIKELY THAN NOT THE POSITION WILL BE SUSTAINED. THE IMPLEMENTATION OF THIS STANDARD HAS HAD NO IMPACT ON CESI'S FINANCIAL STATEMENT. CURRENTLY, THE 2013, 2014, AND 2015 TAX YEARS ARE OPEN AND SUBJECT TO EXAMINATION BY THE TAXING AUTHORITIES. CESI DOES NOT BELIEVE THERE ARE ANY MATERIAL UNCERTAIN TAX POSITIONS AND, ACCORDINGLY, IT HAS NOT RECOGNIZED ANY LIABILITIES FOR THE UNRECOGNIZED TAX BENEFIT. true INSTITUTE OF CONSUMER MONEY MANAGEM 3700 BARRETT DRIVE RALEIGH NC 27609 471524248 3 7415379 LAUNCH ORGANIZATION 1 SCHEDULE I, PAGE 1, PART I, LINE 2 CESI'S BOARD OF DIRECTORS APPROVES THE USE OF FUNDS, THEN THE ORGANIZATION MONITORS THE GRANTEES USE OF FUNDS. SCHEDULE I, PAGE 4, PART IV MARCH 11, 2016 CESI'S BOARD APPROVED AND SIGNED GRANT AGREEMENT FOR TRANSFER OF GRANT IN THE AMOUNT OF 7,415,379 TO THE INSTITUTE OF CONSUMER MONEY MANAGEMENT, A NONPROFIT TAX EXEMPT 501C3 AGENCY. AGREEMENT CONTAINS TERMS AND CONDITIONS, INCLUDING WHAT THE FUNDS COULD BE USED FOR, THE REQUIREMENT OF ANNUAL REPORT ON THE INSTITUTE'S ACTIVITIES AND SPENDING, UPDATE ON THE INSTITUTE'S INVESTMENT PORTFOLIO, AND THEIR RIGHT TO COMMISSION A QUALIFIED THIRD PARTY TO AUDIT THE INSTITUTE'S BOOKS IF THEY HAVE CONCERNS ON HOW FUNDS ARE BEING USED AND/OR MANAGED. THE INSTITUTE OF CONSUMER MONEY MANAGEMENT'S BOARD APPROVED AND SIGNED THE GRANT AGREEMENT. BOTH CESI AND INSTITUTE OF CONSUMER MONEY MANAGEMENT HAVE ITS SEPARATE AND INDEPENDENT BOARDS OF DIRECTORS. false false false false false false false false false DR DIANE CHEN CEO/SECRETARY OF BOA 170282 13846 5373 189501 FORM 990 - ORGANIZATION'S MISSION CONSUMER EDUCATION SERVICES, INC ("CESI") IS A NON-PROFIT SERVICE PROVIDER OF COMPREHENSIVE PERSONAL FINANCIAL EDUCATION AND SOLUTIONS FOR ALL LIFE STAGES AND FOR ALL LIFE'S MILESTONES OUR GOAL IS ENHANCED ECONOMIC SECURITY FOR EVERYONE WE SERVE. FORM 990, PAGE 2, PART III, LINE 4B INDIVIDUAL FINANCIAL COUNSELING AT THE CESI CENTER WITH AN ACCREDITED CESI COUNSELOR. IN THE PAST YEARS, CESI HAS TRACKED THE OUTREACH CLASS INFORMTAION IN A SPREADSHEET, COLLECTING THE DATE, LENGTH, INSTRUCTOR, TOPIC AND LOCATION OF EACH CLASS AS WELL AS A NUMBER OF PERSONS ATTENDING. WE HAVE ALSO COLLECTED PAPER EVALUATIONS FROM OUR STUDENTS TO ALLOW OUR EDUCATORS THE FEEDBACK ON HOW WE CAN IMPROVE OUR EDUCATION. THESE EVALUATIONS HAVE BEEN REVIEWED BUT NOT RECORDED IN A DATABASE. OUR EFFORT TO MONITOR OUR EFFEFTIVENESS IN REACHING THE NEEDS OF CONSUMERS WITH FINANCIAL EDUCATION, WE REDESIGNED OUR TRACKING PROCESS FOR 2014. WE CREATED A DATABASE WHERE EACH CLASS IS ENTERED WITH THE ABILITY TO ADD THE INDIVIDUAL STUDENT INFORMATION FOR EACH CLASS. WE ALSO BEGIN COLLECTING DEMOGRAPHIC AND CONTACT INFORMATION FOR OUR STUDENTS AS WELL AS A PRE AND POST ASSESSMENT AND A COURSE EVALUATION THAT WILL ALLOW US TO REPORT ON THE OUTCOMES OF OUT CLASSES AND EFFECTIVENESS OF OUR COURSES AND INSTRUCTORS. THIS WILL ALLOW US TO DO TARGETED FOLLOW-UP WITH STUDENTS WHO ELECT TO PROVIDE US WITH THEIR EMAIL CONTACT INFORMATION. WE WILL PROVIDE ONGOING EDUCATIONAL RESOURCES THAT MEET THEIR SPECIFIC NEEDS OR ARE TARGETED TO THEIR DEMOGRAPHIC. CESI OFFERS MORE THAT 35 DIFFERENT TOPICS GEARED TOWARD AN ADULT OR A YOUTH AUDIENCE. WE UTILIZE 5 COMMUNITY EDUCATORS TO CONDUCT CLASSES AND ASSIST THE COMMUNITY PARTNERS. CESI CURRENTLY HAS 29 COMMUNITY PARTNERS THAT HAVE RECEIVED EDUCATION SUPPORT IN 2014. FORM 990, PAGE 2, PART III, LINE 4C FESTIVAL CELEBRATING LATINO CULTURE. CESI ALSO ASSIST CONSUMERS THROUGH THE NORTH CAROLINA HOUSING FINANCE AGENCY (NCHFA). THE FIRST PROJECT IS STATE HOME FORECLOSURE PREVENTION PROJECT(SHFPP) WHICH HELPS NORTH CAROLINA HOMEOWNERS WHO HAVE RECEIVED A 45 DAY LETTER FROM THEIR SERVICER TO AVOID FORCLOSURE BY PUTTING THEM IN CONTACT WITH A HUD HOUSING COUNSELING AGENCIES WHO CAN ASSIST THEM WITH LOSS MITIGATION OPTIONS. OTHER PROJECTS ARE HARDEST HIT FUND (HHF), NORTH CAROLINA FORECLOSURE PREVENTION FUND (FPF), OR MORTGAGE PAYMENT PROGRAM (MPP). THESE PROJECTS HELP NORTH CAROLINA HOMEOWNERS WHO HAVE LOST THEIR JOBS OR HAVE EXPERIENCED SOME OTHER TYPE OF EMPLOYMENT RELATED FINANCIAL HARDSHIP TO MAKE THEIR MORTGAGE PAYMENTS WHILE THEY LOOK FOR JOB OR RETRAIN FOR A NEW JOB. BETWEEN JULY 1, 2013 AND JUNE 30, 2014 CESI HANDLED 104,658 PHONE CALLS WITH CONSUMERS THAT EITHER RECEIVED LETTERS FROM NCHFA OR WHO HAVE LEARNED ABOUT THE FPF PROGRAM VIA THE WEBSITE NCFORECLOSUREPREVENTION.GOV OR OTHER TYPES OF MARKETING THAT HAS BEEN DONE FOR THE PROGRAM. FORM 990, PAGE 2, PART III, LINE 4D CLIENT PAYMENT PROCESSING- THIS PROGRAM PROVIDES SERVICES TO ITS DEBT MANAGEMNT PARTICIPANTS WITH RESPEST TO PROCESSING PAYMENTS, WORKING WITH CREDITORS TO SECURE A REDUCTION IN INTEREST RATES, AND EDUCATION AND TRAINING CLIENTS TO BETTER MANAGE THEIR FINANCES. FOR THE LEGACY PORTOFOLIO, CLIENT PAYMENT PROCESSING IS OUTSOURCED TO A THIRD PARTY SERVICE WITH CESI'S FINAL APPROVAL.CESI DISCONTINUED THE THIRD PARTY PROCESSING SERVICES ON JUNE 24, 2016. ENDOWMENT TO INSTITUTE OF CONSUMER MONEY MANAGEMENT MARCH 11, 2016 CESI'S BOARD APPROVED AND SIGNED GRANT AGREEMENT FOR TRANSFER OF GRANT IN THE AMOUNT OF 7,415,379 TO THE INSTITUTE OF CONSUMER MONEY MANAGEMENT, A NONPROFIT TAX EXEMPT 501C3 AGENCY. AGREEMENT CONTAINS TERMS AND CONDITIONS, INCLUDING WHAT THE FUNDS COULD BE USED FOR, THE REQUIREMENT OF ANNUAL REPORT ON THE INSTITUTE'S ACTIVITIES AND SPENDING, UPDATE ON THE INSTITUTE'S INVESTMENT PORTFOLIO, AND THEIR RIGHT TO COMMISSION A QUALIFIED THIRD PARTY TO AUDIT THE INSTITUTE'S BOOKS IF THEY HAVE CONCERNS ON HOW FUNDS ARE BEING USED AND/OR MANAGED. THE INSTITUTE OF CONSUMER MONEY MANAGEMENT'S BOARD APPROVED AND SIGNED THE GRANT AGREEMENT. BOTH CESI AND INSTITUTE OF CONSUMER MONEY MANAGEMENT HAVE ITS SEPARATE AND INDEPENDENT BOARDS OF DIRECTORS. FORM 990, PAGE 6, PART VI, LINE 11B THE PRESIDENT & CEO AND THE DIRECTOR OF FINANCE ARE RESPONSIBLE FOR REVIEWING AND APPROVING THE FORM 990 AND THE FORM 990-T BEFORE IT IS FILED. FORM 990, PAGE 6, PART VI, LINE 12C OFFICERS, DIRECTORS, AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE ANY POTENTIAL CONFLICTS OF INTEREST ANNUALLY ON A CONFLICT OF INTEREST FORM. ANY KNOWN CONFLICTS OF INTREST REQUIRE IMMEDIATE DISCLOSURE. FORM 990, PAGE 6, PART VI, LINE 15A THE BOARD OF DIRECTORS GENERALLY DETERMINES AND REVIEWS THE SALARY OF THE PRESIDENT AND CEO. FORM 990, PAGE 6, PART VI, LINE 15B THE BOARD OF DIRECTORS GENERALLY DETERMINES AND REVIEWS THE SALARY OF KEY EMPLOYEES. FORM 990, PAGE 6, PART VI, LINE 19 CESI MAKES IT GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. THE ORGANIZATION FORM 990 IS ALSO AVAILABLE ON GUIDESTAR.ORG.