2016-11-15T13:24:48-06:00 2015-12-31 203250475 ESMOND & ASSOCIATES INC 23901 CALABASAS RD 1010 CALABASAS CA 91302 990 2015-01-01 208091013 CENTER FOR EXCELLENCE IN HIGHER EDUCATION INC CENT 8013120078 4021 SOUTH 700 EAST NO 400 SALT LAKE CITY UT 84107 ERIC JUHLIN PRESIDENT 8013120078 2016-11-07 1 LENNY ESMOND CPA P00037472 8186102900 2016-11-07 2015 2017-02-10 21:41:12Z ERIC JUHLIN 4021 SOUTH 700 EAST 400 SALT LAKE CITY UT 84107 191628424 0 X WWW.CEHE.ORG X 2006 IN POST-SECONDARY EDUCATION 7 4 2470 3 0 0 3367872 0 190583492 191477903 68175 150521 0 0 194019539 191628424 3530289 3060000 0 0 74393159 88622493 0 0 0 83998512 80792716 161921960 172475209 32097579 19153215 569929222 258400744 472210855 141529162 97718367 116871582 THE PRINCIPAL FUNCTION OF THE ORGANIZATION IS THE PRESENTATION OF FORMAL INSTRUCTION BY ITS REGULARLY MAINTAINED FACULTY AND CURRICULUM TO ITS REGULARLY ENROLLED BODY OF PUPILS OR STUDENTS IN ORDER FOR STUDENTS TO OBTAIN A DEGREE AND OBTAIN EMPLOYMENT. 0 0 3060000 3060000 THE ORGANIZATION MAINTAINS BOTH A RESTRICTED GIFT FUND AND MAKES BOTH DESIGNATED AND UNDESIGNATED GRANTS TO OTHER CHARITABLE ORGANIZATIONS. THE RESTRICTED FUND SUPPORTS PROGRAMS AT DUKE UNIVERSITY, AS DIRECTED BY THE DONORS. THE ORGANIZATION SUPPORTS OTHER INSTITUTIONS WHICH PROMOTE HIGHER EDUCATION AND ECONOMICS. 154150107 191227903 THE ORGANIZATION OWNS AND OPERATES STEVENS-HENAGER COLLEGE, COLLEGEAMERICA ARIZONA, COLLEGEAMERICA DENVER, CALIFORNIA COLLEGE SAN DIEGO, INDEPENDENCE UNIVERSITY, CALIFORNIA FLIGHT ACADEMY (51%) AND TTY CAREER COLLEGES (51%) (THE COLLEGES) AS NONPROFIT COLLEGES ORGANIZED AND OPERATED EXCLUSIVELY FOR EDUCATIONAL PURPOSES. THE PRINCIPAL FUNCTION OF THE ORGANIZATION IS THE PRESENTATION OF FORMAL INSTRUCTION BY ITS REGULARLY MAINTAINED FACULTY AND CURRICULUM TO ITS REGULARLY ENROLLED BODY OF PUPILS OR STUDENTS IN ORDER FOR STUDENTS TO OBTAIN A DEGREE AND OBTAIN EMPLOYMENT. 157210107 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 1 0 1 0 0 0 0 1 1 1 1 0 0 1 162 0 2470 1 0 0 0 0 0 0 0 0 0 0 0 0 X 7 4 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA AZ IN X ERIC JUHLIN 8013120078 4021 SOUTH 700 EAST SUITE 400 SALT LAKE CITY UT 84107 WILLIAM C DENNIS PHD DIRECTOR 1.00 X 9000 0 0 TODD ZYWICKI JD DIRECTOR 1.00 X 9000 0 0 CARL BARNEY CHAIRMAN/DIRECTOR 40.00 X X 8114 0 0 ERIC JUHLIN PRESIDENT/SECRETARY/DIRECTOR 40.00 X X 453942 0 16142 YARON BROOK TREASURER/DIRECTOR 2.00 X 0 0 0 ROY HURD DIRECTOR 1.00 X 9000 0 0 KEN KONESCO DIRECTOR 1.00 X 9000 0 0 MICHAEL MAKI VICE-PRESIDENT 40.00 X 229632 0 9500 ROZANN KUNSTLE REGIONAL DIRECTOR 40.00 X 180947 0 14768 ALAN HANSEN CAMPUS DIRECTOR 40.00 X 180526 0 15986 KODY LARSEN VICE-PRESIDENT 40.00 X 180041 0 7093 MATTHEW GERBER GENERAL COUNSEL 40.00 X 172357 0 7118 SHERRIL MARTIN VP, MARKETING/ADV 40.00 X 203486 0 6972 PAUL GARDNER CHIEF FINANCIAL OFFICER 40.00 X 295514 0 16251 VICKY DEWSNUP REGIONAL DIRECTOR 40.00 X 168446 0 7031 KENNETH PLANT REGIONAL DIRECTOR 40.00 X 194305 0 8364 SUSAN G REED VICE-PRESIDENT 40.00 X 177639 0 12023 KEN WEBB REGIONAL DIRECTOR 40.00 X 178492 0 9767 TIMOTHY SMITH CEO, TTY 40.00 X 136968 0 17567 2796409 0 148582 25 0 1 0 EDUFFICIENT LLC 6 FOREST AVENUE 2ND FL PARAMUS NJ 07652 ADVERTISING MANGEMENT 20579997 DIRECTMAILCOM LLC 5351 KETCH ROAD PRINCE FREDERICK MD 20678 MARKETING SERVICES 5839652 GOOGLE INC 1600 AMPITHEATRE PARKWAY MOUNTAIN VIEW CA 94043 ADVERTISING SERVICES 3039017 VITAL SOURCE TECHNOLOGY ONE INGRAM BOULEVARD LAVERGNE TN 37086 ONLINE BOOK SERVICE 2245459 YAHOO TECHNOLOGIES 10650 TOEBBEN DRIVE INDEPENDENCE KY 41051 ADVERTISING SERVICES 1328033 7 TUITION AND FEES 611310 191006438 191006438 471465 471465 191477903 150521 150521 191628424 191477903 0 150521 3060000 3060000 2479700 2479700 75117937 69407809 5710128 148173 129100 19073 4354160 4051481 302679 6522523 6095925 426598 2596310 2356088 240222 3146311 8652 3137659 273822 273822 35189488 35189488 1831826 1648859 182967 3482151 1730690 1751461 11166901 10742822 424079 859447 584768 274679 55719 50093 5626 1432917 1432917 9619882 9619882 574848 22978 551870 STUDENT SUPPORT 9045206 9045206 0 ADMINISTRATIVE 988274 522102 466172 ACCREDITATION 529614 464464 65150 172475209 157210107 15265102 0 16949294 9939207 43660034 216000 108000 116379193 109802282 779627 619148 28462069 19284356 11457751 9177713 421386029 83831029 2761328 1263331 569929222 258400744 8078940 6906103 732500 332500 40385243 32013944 412555000 91000000 10459172 11276615 472210855 141529162 X 97502367 116763582 216000 108000 97718367 116871582 569929222 258400744 19153215 0 X X 0 1 X 1 1 1 X 1966538 1406664 559874 26495531 17877692 8617839 9177713 EXCESS STUDENT FUNDS 2134728 DEFERRED RENT 4844799 ACCRUED LIABILITIES 4297088 11276615 X 191477903 0 191477903 150521 150521 191628424 172475209 0 172475209 0 172475209 PART X, LINE 2: THE ORGANIZATION'S FORMS 990, RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX, FOR THE YEARS ENDING DECEMBER 31, 2015, 2014, 2013,& 2012, ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES REQUIRE TAX EFFECTS FROM AN UNCERTAIN TAX POSITION TO BE RECOGNIZED IN THE FINANCIAL STATEMENT ONLY IF THE POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLEY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. IF AN UNCERTAIN TAX POSITION MEETS THE MORE-LIKLEY-THAN-NOT THRESHOLD, THE LARGEST AMOUNT OF TAX BENEFIT THAT IS GREATER THAN 50% LIKELY TO BE RECOGNIZED UPON ULTIMATE SETTLEMENT WITH THE TAXING AUTHORITY IS RECORDED. THE ORGANIZATION'S PRIMARY TAX POSITIONS RELATE TO ITS STATUS AS A NOT-FOR-PROFIT ENTITY EXEMPT FROM INCOME TAXES AND CLASSIFICATION OF ACTIVITIES RELATED TO ITS EXEMPT PURPOSE. MANAGEMENT HAS EVALUATED THE TAX POSITIONS REFLECTED IN THE ORGANIZATION'S TAX FILINGS AND DOES NOT BELIEVE THAT ANY MATERIAL UNCERTAIN TAX POSITIONS EXIST. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 SEE SCHEDULE O. 1 GEORGE MASON UNIVERSITY LAW AND ECONOMICS CENTER 4400 UNIVERSITY DRIVE MS 1A3 FAIRFAX VA 22201 541603842 501 (C) 3 50000 N/A N/A TO FURTHER THE UNDERSTANDING OF LAW AND ECONOMICS COLORADO CIVIL JUSTICE LEAGUE 3700 QUEBEC STREET UNIT 100-117 DENVER CO 802071639 841547639 501 (C) 6 10000 N/A N/A TO CURB THE RISE OF FRIVOLOUS LAWSUITS IN COLORADO VANGUARD CHARITABLE ENDOWMENT FUND PO BOX 55766 BOSTON MA 022055766 232888152 501 (C) 3 3000000 N/A N/A TO SUPPORT GENERAL CHARITABLE ENDEAVORS PART I, LINE 2: THE BOARD OF DIRECTORS MONITOR USE OF ALL GRANTS. 1 X X X 0 0 0 0 0 0 0 0 0 ERIC JUHLIN PRESIDENT/SECRETARY/DIRECTOR 323942 0 130000 0 0 0 0 0 16142 0 470084 0 0 0 MICHAEL MAKI VICE-PRESIDENT 202965 0 26667 0 0 0 0 0 9500 0 239132 0 0 0 ROZANN KUNSTLE REGIONAL DIRECTOR 170514 0 10433 0 0 0 0 0 14768 0 195715 0 0 0 ALAN HANSEN CAMPUS DIRECTOR 161714 0 18812 0 0 0 1400 0 14586 0 196512 0 0 0 KODY LARSEN VICE-PRESIDENT 179229 0 812 0 0 0 0 0 7093 0 187134 0 0 0 MATTHEW GERBER GENERAL COUNSEL 146924 0 25433 0 0 0 0 0 7118 0 179475 0 0 0 SHERRIL MARTIN VP, MARKETING/ADV 188486 0 15000 0 0 0 729 0 6243 0 210458 0 0 0 PAUL GARDNER CHIEF FINANCIAL OFFICER 275514 0 20000 0 0 0 1042 0 15209 0 311765 0 0 0 VICKY DEWSNUP REGIONAL DIRECTOR 147347 0 21099 0 0 0 0 0 7031 0 175477 0 0 0 KENNETH PLANT REGIONAL DIRECTOR 164872 0 29433 0 0 0 1246 0 7118 0 202669 0 0 0 SUSAN G REED VICE-PRESIDENT 148706 0 28933 0 0 0 0 0 12023 0 189662 0 0 0 KEN WEBB REGIONAL DIRECTOR 143055 0 35437 0 0 0 0 0 9767 0 188259 0 0 0 TIMOTHY SMITH CEO, TTY 136968 0 0 0 0 0 1500 0 16067 0 154535 0 0 0 FORM 990, PART VII, OFFICER #6 LENNY ESMOND LENNY ESMOND RESIGNED AS A OFFICER AND BOARD MEMBER EFFECTIVE NOVEMBER 6, 2015 CARL BARNEY MEMBER SEE SCHEDULE O FOR EXPLANATION X 431000000 75000000 0 1 1 PROMETHEUS FOUNDATION RELATED ORGANIZATION SEE SCHEDULE O FOR EXPLANATION X 16000000 16000000 0 1 1 91000000 CARL BARNEY CHAIRMAN/DIRECTOR/MEMBER AND NOTE HOLDER 337555000 REDUCTION IN THE DEBT RELATED TO THE 2012 MERGER AGREEMENTS OF STEVENS-HENAGER COLLEGE, INC., COLLEGEAMERICA SERVICES, AND COLLEGEAMERICA ARIZONA, INC. WITH AND INTO THE ORGANIZATION. ON NOVEMBER 6, 2015 THE ORGANIZATION AND THE TRUST ENTERED INTO A SETTLEMENT FOR THE SURRENDER OF NOTE B OF $231,000,000 AND A REDUCTION IN NOTE A FROM $181,555,000 TO $75,000,000 BY AMENDMENT AND RESTATEMENT OF THIS NOTE. 0 CARL BARNEY CHAIRMAN/DIRECTOR/MEMBER AND REAL PROPERTY LESSOR 3458226 CARL BARNEY OWNS THREE DISREGARDED ENTITIES WHICH LEASE REAL PROPERTY TO THE ORGANIZATION FOR COMMERCIALLY REASONABLE AMOUNTS VERIFIED BY THIRD PARTIES 0 CARL BARNEY CHAIRMAN/DIRECTOR/MEMBER AND NOTE HOLDER 1432917 INTEREST PAYMENT ON NOTES PAYABLE IN CONNECTION WITH MERGER OF STEVENS-HENAGER COLLEGE, INC., COLLEGEAMERICA SERVICES, AND COLLEGEAMERICA ARIZONA, INC. WITH AND INTO THE ORGANIZATION IN A BARGAIN SALE TRANSACTION. 0 ESMOND AND ASSOCIATESINC ESMOND&ASSOCINC IS MORE THAN 35% OWNED BY LENNY ESMOND FORMER DIR & OFFICER 221875 ESMOND & ASSOCIATES, INC PROVIDES TAX AND CONSULTING SERVICES TO THE ORGANIZATION. SERVICES ARE PROVIDED ON AN ARM'S LENGTH BASIS USING STANDARD BILLING RATES. 0 PROMETHEUS FOUNDATION RELATED PRIVATE FOUNDATION & NOTE HOLDER 16000000 THE ORGANIZATION ENTERED INTO THREE PROMISSORY NOTES WITH A RELATED PRIVATE FOUNDATION DURING THE YEAR. THE NOTES WERE ISSUED IN JUNE ($9 MILLION), SEPTEMBER ($2 MILLION) AND DECEMBER 2015 ($5 MILLION), ALL ARE AT 5% INTEREST PAYABLE QUARTERLY AND ALL THREE NOTES MATURE JANUARY 2017. 0 PROMETHEUS FOUNDATION RELATED PRIVATE FOUNDATION & NOTE HOLDER 145788 INTEREST PAYMENT ON THE PROMISSORY NOTES PAYABLE WITH A RELATED PRIVATE FOUNDATION. 0 SCHEDULE E, PART I, ITEM 3 EXPLANATION OF PUBLICIZING NONDISCRIMINATION POLICY THE ORGANIZATION'S COLLEGES CUSTOMARILY DRAW THEIR STUDENTS FROM LOCAL COMMUNITIES AND FOLLOW A RACIALLY NONDISCRIMINATORY POLICY AS TO STUDENTS. THE ORGANIZATION'S NONDISCRIMINATION POLICY CAN BE FOUND UNDER "TITLE IX AND VI OF THE CIVIL RIGHTS ACT" OF ITS PRINCIPAL CATALOGUE GIVEN TO EACH PROSPECTIVE STUDENT THAT INTERVIEWS WITH AN ADMISSIONS CLERK AT A CAMPUS. THE POLICY IS PUBLISHED ON THE SCHOOL'S WEBSITE OPERATED BY THE SCHOOL. THE POLICY IS ALSO DISCLOSED IN ALL OF THE ORGANIZATION'S ADVERTISING MATERIALS. THE ORGANIZATION THEREFORE MEETS THE CRITERIA UNDER REV. PROC. 75-50, SECTION 4.03-2(C) FOR EXEMPTION FROM THE PUBLICITY REQUIREMENTS OF SECTION 4.03-1. FORM 990, PART VI, SECTION A, LINE 2 LENNY ESMOND, FORMER DIRECTOR, TREASURER AND SECRETARY OF THE ORGANIZATION IS A CPA WHO PROVIDES TAX AND CONSULTING SERVICES THROUGH HIS WHOLLY OWNED CORPORATION TO THE ORGANIZATION, THE MEMBER (CARL BARNEY), AND OTHER ENTITIES OWNED BY THE MEMBER. SERVICES ARE PROVIDED ON AN ARM'S LENGTH BASIS USING STANDARD BILLING RATES. MR. ESMOND RESIGNED FROM THE BOARD EFFECTIVE NOVEMBER 6, 2016. FORM 990, PART VI, SECTION A, LINE 6 CARL BARNEY IS A MEMBER OF CENTER FOR EXCELLENCE IN HIGHER EDUCATION, INC. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBER HAS THE POWER TO APPOINT MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN GOVERNANCE DECISIONS OF THE ORGANIZATION ARE RESERVED FOR ITS MEMBER. FORM 990, PART VI, SECTION B, LINE 11 PRESIDENT, CHIEF FINANCIAL OFFICER AND BOARD OF DIRECTORS MEMBERS REVIEW THE FORM BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C OFFICERS AND BOARD MEMBERS ARE REQUIRED TO SIGN A CONFLICT OF INTEREST POLICY ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15 ORGANIZATION HAS A COMPENSATION COMMITTEE THAT FACTORS IN EXPERIENCE, EDUCATION, BACKGROUND, AND OTHER RELEVANT FACTORS IN DETERMINING THEIR SALARY. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE AT ITS OFFICE DURING REGULAR BUSINESS HOURS. PART XII, LINE 2C WITH THE RESIGNATION OF LENNY ESMOND, THE CHAIR OR THE AUDIT COMMITTEE WAS VACATED. THE BOARD APPOINTED YARON BROOK TO CHAIR THE AUDIT COMMITTEE EFFECTIVE NOVEMBER 6, 2015. SCHEDULE L, PART II LOANS TO AND/OR FROM INTERESTED PERSONS NOTE PAYABLE RELATING TO THE MERGER OF COMPANIES WITH AND INTO THE ORGANIZATION IN A BARGAIN SALE TRANSACTION. 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