2016-04-15T13:55:53-05:00 2015-05-31 560574444 CHERRY BEKAERT LLP 1111 METROPOLITAN AVE STE 1000 CHARLOTTE NC 28204 990 2014-06-01 953075415 INSTITUTE FOR SHIPBOARD EDUCATION INST 4342434072 2410 OLD IVY ROAD CHARLOTTESVILLE VA 22903 LARRY D GRANT CFO 4342434072 2016-04-12 1 JANICE A RATICA P00358837 7043771678 2014 2016-08-17 19:52:53Z LARRY D GRANT 2410 OLD IVY ROAD CHARLOTTESVILLE VA 22903 62835234 0 X WWW.SEMESTERATSEA.COM X 1971 DE THE INSTITUTE FOR SHIPBOARD EDUCATION ADMINISTERS THE SEMESTER AT SEA EDUCATIONAL PROGRAM. 22 21 265 21 0 0 2933307 4948696 53875755 50142728 170837 246246 -52667 17721 56927232 55355391 6423344 6880676 0 0 5729252 4505461 0 0 649568 44237829 30330382 56390425 41716519 536807 13638872 19286171 16913270 18924955 2618784 361216 14294486 X THE INSTITUTE FOR SHIPBOARD EDUCATION (THE INSTITUTE) ORGANIZES AND ADMINISTERS THE SEMESTER AT SEA PROGRAM, THE WORLD'S PREMIER PROGRAM FOR STUDY ABROAD. OPEN TO STUDENTS OF ALL MAJORS, SEMESTER AT SEA OFFERS 12 TO 15 TRANSFERABLE CREDIT COLLEGE LEVEL COURSES PER SEMI-ANNUAL VOYAGE, AS WELL AS A 9 TO 12 CREDIT SUMMER VOYAGE, WHICH COINCIDES WITH TRADITIONAL UNIVERSITY SEMESTERS. THE PROGRAM IS ACADEMICALLY SPONSORED BY THE UNIVERSITY OF VIRGINIA. DRIVEN BY THE INTENTION TO EDUCATE INDIVIDUALS WITH THE GLOBAL UNDERSTANDING NECESSARY TO ADDRESS THE CHALLENGES OF AN INTERDEPENDENT WORLD, THE INSTITUTE ALSO SPONSORS SHORT DURATION EDUCATIONAL VOYAGES ATTENDED BY ALUMNI, LIFELONG LEARNERS AND STAFF AS SHIP AVAILABILITY PERMITS. 0 0 37758293 6880676 50142728 THE INSTITUTE FOR SHIPBOARD EDUCATION ORGANIZES & ADMINISTERS THE EDUCATIONAL SEMESTER AT SEA PROGRAM. UNDERGRAD STUDENTS TAKE COLLEGE LEVEL COURSES IN CONJUNCTION WITH TRAVELING THE WORLD FOR A SEMESTER. THE INSTITUTE PLANS TWO VOYAGES TO COINCIDE WITH THE TRADITIONAL SEMIANNUAL SEMESTERS OFFERED BY MOST UNIVERSITIES, AS WELL AS A SUMMER VOYAGE. THE PROGRAM IS ACADEMICALLY SPONSORED BY THE UNIVERSITY OF VIRGINIA AND ADMINISTERED BY THE INSTITUTE. 37758293 1 1 0 0 0 0 0 0 1 1 1 1 0 1 1 1 1 0 1 1 1 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 46 0 265 1 0 1 UK 0 0 0 1 1 0 0 0 0 X 22 21 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 VA AL AK AZ AR CA CO CT FL GA HI IL KS KY ME MD MA MI MN MO MS NH NJ NM NY NC ND OH OK OR PA RI SC TN UT WA WV WI X BOBBY BARBER 4342434070 2410 OLD IVY ROAD CHARLOTTESVILLE VA 22903 DWIGHT ALLISON TRUSTEE 0.50 X 0 0 0 GREG CHAPMAN TRUSTEE 0.50 X 0 0 0 RANDY DAVIS TRUSTEE 0.50 X 0 0 0 DENNIS GERTMENIAN TRUSTEE 0.50 X 0 0 0 JEFF GLAZER TRUSTEE 0.50 X 0 0 0 LEIGH GROSSMAN TRUSTEE 0.50 X 0 0 0 TOM HUDNUT TRUSTEE 0.50 X 0 0 0 TOMMY KNAPP TRUSTEE 0.50 X 0 0 0 SARA KUTLER TRUSTEE 0.50 X 0 0 0 ERIN LASTINGER TRUSTEE 0.50 X 0 0 0 TODD MILLER TRUSTEE 0.50 X 0 0 0 JONATHAN MURRAY TRUSTEE 0.50 X 0 0 0 GARY RANSDELL TRUSTEE 0.50 X 0 0 0 STUART SAUNDERS TRUSTEE 0.50 X 0 0 0 MICHAEL SEGAL TRUSTEE 0.50 X 0 0 0 LARRY SILVER TRUSTEE 0.50 X 0 0 0 LISA SLAVID TRUSTEE 0.50 X 0 0 0 DESMOND TUTU TRUSTEE 0.50 X 0 0 0 JOHN TYMITZ TRUSTEE 0.50 X 0 0 0 RICH WOLF TRUSTEE 0.50 X 0 0 0 KENN GAITHER PRESIDENT/ CEO/TRUSTEE 40.00 X X 110550 0 0 LOREN CRABTREE V.P. OF ACADEMIC AFFAIRS, AS OF 4/22/15 40.00 X X 0 0 0 LES MCCABE FORMER PRESIDENT UNTIL 6/14 40.00 X X 387008 0 12219 LARRY GRANT V.P. OF FINANCE / CFO 40.00 X 193486 0 18311 SALVATORE MOSCHELLA V.P. OF OPERATIONS/ COO 40.00 X 157648 0 9765 BETH MCCARTHY V.P. OF ENROLLMENT MANAGEMENT 40.00 X 128928 0 11452 MICHAEL ZOLL V.P. OF PROGRAM ADMIN 40.00 X 131149 0 21994 RICHARD WATKINS V.P. OF ADVANCEMENT UNTIL 2/15 40.00 X 166424 0 17130 LUKE JONES V.P. OF STRATEGIC INITATIVES UNTIL 12/14 40.00 X 108373 0 21467 1383566 0 112338 8 0 1 0 TUMLARE VESTERBROGADE 6D COPENHAGEN DK 1620 DA FIELD PROGRAM OPERATOR 957185 V-SHIPS 24 AV DE FONTVIELLE BP 639 MC 98013 MN MANAGES SHIP OPERATIONS 612852 DESTINATION ASIA ROPPONGI OG BUILDING 5F 1-3-4 NISH MINATO-KU TOKYO 106-0031 JA FIELD PROGRAM OPERATOR 575913 ABERCROMBIE & KENT 1411 OPUS PLACE EXECUTIVE TOWERS W DOWNERS GROVE IL 60515 FIELD PROGRAM OPERATOR 448134 NIXON PEABODY PO BOX 28012 NEW YORK NY 10087 LEGAL SERVICES 105170 5 4948696 123552 4948696 PROGRAM FEES 611600 45675084 45675084 FIELD PROGRAM 611710 4056736 4056736 CAMPUS STORE 451211 389333 389333 BOOKS AND VIDEOS 451211 21575 21575 50142728 145123 145123 7568803 7467680 101123 101123 101123 29884 12163 17721 17721 55355391 50142728 0 263967 6880676 6880676 322347 322347 3496604 2180571 909641 406392 419100 255010 136293 27797 267410 179329 60444 27637 511583 511583 557801 83382 463496 10923 314635 28001 217028 69606 286702 286702 720362 687680 32682 161008 154322 3701 2985 6164 6164 176234 176234 512691 379553 133138 COST OF SHIP OPERATIONS 19982627 19982627 COST OF FIELD PROGRAMS 3925637 3925637 COST OF CREDITS PROGRAM 896636 896636 PUBLIC RELATIONS/ RECRU 685052 598125 3631 83296 1593250 1198233 374085 20932 41716519 37758293 3308658 649568 7472322 5137156 1414828 2870084 32544 374444 2160822 236561 1395324 165444 1651309 1435917 685374 215392 5849425 6138137 275532 1776052 19286171 16913270 4845049 915634 7433821 1400218 6164 6646085 296768 18924955 2618784 X -5370475 6968310 3779088 5228566 1952603 2097610 361216 14294486 19286171 16913270 X 13638872 -129194 423592 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1000304 1000304 0 0 1921505 108991 64444 2094940 1927788 112972 -75620 34248 9387 1921505 4625168 51068 33806 2627223 155031 1927788 4897680 17283 289795 4625168 4937439 250291 290050 4897680 0.00000 1.00000 0.00000 0 0 201838 200254 1584 1449471 1235663 213808 215392 SECURITIES 6138137 F 6138137 OTHER CURRENT ASSETS 1507150 REMAINDER INTEREST IN LIFE ESTATE 268902 1776052 STUDENT DEPOSIT 1121 OTHER CURRENT LIABILITIES 295647 296768 X 49405549 -129194 -5832811 -5962005 55367554 -12163 -12163 55355391 35472279 636436 636436 34835843 6880676 6880676 41716519 PART X, LINE 2: MANAGEMENT HAS EVALUATED THE EFFECT OF THE GUIDANCE PROVIDED BY U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. MANAGEMENT BELIEVES THAT THE INSTITUTE CONTINUES TO SATISFY THE REQUIREMENTS OF A TAX-EXEMPT ORGANIZATION AT MAY 31, 2015. MANAGEMENT HAS EVALUATED ALL OTHER TAX POSITIONS THAT COULD HAVE A SIGNIFICANT EFFECT ON THE FINANCIAL STATEMENTS AND DETERMINED THAT THE INSTITUTE HAD NO UNCERTAIN INCOME TAX POSITIONS AT MAY 31, 2015 AND 2014. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF LIFE ESTATE 7,678. SCHOLARSHIP EXPENSE RECORDED AS OFFSET AGAINST REVENUE IN AUDIT -6,880,676. DEBT RESTRUCTURING GAIN 1,040,187. PART XI, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES RECORDED AS OFFSET AGAINST REVENUE ON TAX RETURN -12,163. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES RECORDED AS OFFSET AGAINST REVENUE ON TAX RETURN 12,163. LOSS ON FOREIGN CURRENCY TRANSACTIONS 26,240. UVA PROFIT SHARE 250,000. IMPAIRMENT LOSS ON ERP SYSTEM 348,033. PART XII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIP EXPENSES RECORDED AS OFFSET AGAINST REVENUE IN AUDIT 6,880,676. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 SEMESTER AT SEA IS A LEARNING EXPERIENCE DESIGNED TO TRANSFORM STUDENTS OF EVERY RACE, COLOR, AND CREED INTO A CITIZEN AND SCHOLAR OF THE WORLD. THE EMPLOYEE HANDBOOK, VOYAGER HANDBOOK AND ALL JOB DESCRIPTIONS FOR HIRING CONTAIN NONDISCRIMINATORY LANGUAGE. 1 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES FIELD TRIPS 115263 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES FIELD TRIPS 1949972 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES FIELD TRIPS 320801 SOUTH ASIA 0 0 PROGRAM SERVICES FIELD TRIPS 15566 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES FIELD TRIPS 572628 0 0 0 0 0 0 2974230 0 2974230 0 0 0 0 0 0 PART I, LINE 2: ALL OF THE ORGANIZATION'S FOREIGN PROGRAM EXPENSES ARE FOR FIELD TOUR TRIPS. FIELD TOUR OPERATORS ARE VETTED FOR HEALTH, SAFETY AND ORGANIZATIONAL STRENGTH. THE ORGANIZATION IS CONFIDENT BEFORE THEY BEGIN WORKING WITH A PROVIDER THAT IT IS A REPUTABLE ORGANIZATION. ALSO, THE ORGANIZATION'S POOL OF PROVIDERS IS FAIRLY STABLE AS THEY OFTEN RETURN TO THE SAME DESTINATIONS. THE ORGANIZATION HAS NUMEROUS LONG TERM PARTNERSHIPS OF 5 YEARS OR MORE. MOST SERVICES ARE PAID FOR AFTER SERVICES HAVE BEEN PROVIDED ALTHOUGH WE DO USE DEPOSITS FROM TIME TO TIME. THE ORGANIZATION TAKES SEVERAL STEPS TO SAFEGUARD PAYMENTS MADE TO FOREIGN SUPPLIERS. 1.) ISE ESTIMATES AND TRACKS ALL EXPECTED PAYMENTS BASED ON PLANNED PROGRAMS AND THEN ACTUAL SALES. 2.) ISE MAKES SOME DEPOSITS IN ADVANCE, BUT FULL PAYMENT IS NOT MADE UNTIL AFTER THE SERVICE HAS BEEN DELIVERED. 3.) ISE USES ISE REPRESENTED LIAISONS ON EACH FIELD TRIP IN ORDER TO ENSURE SAFETY AND THAT ALL TRIPS PROVIDE PROMISED SERVICES. 4). ISE STAYS IN CONTACT WITH ALL PROVIDERS AFTER PAYMENT TO ENSURE THAT THE FUNDS HAVE BEEN SUCCESSFULLY RECEIVED ON THEIR END. ROCK THE DOCK EVENT 29884 29884 12163 29884 29884 12163 12163 17721 1 SCHOLARSHIPS FOR COLLEGE EDUCATION 1804 6880576 PART I, LINE 2: THE MONIES ARE CREDITED DIRECTLY TO THE STUDENT ACCOUNTS AND NEVER EXCEED THE COSTS CHARGED. X 1 1 X X X 1 0 0 0 0 0 0 0 0 LES MCCABE FORMER PRESIDENT UNTIL 6/14 135892 0 0 0 251116 0 2858 0 9361 0 399227 0 0 0 LARRY GRANT V.P. OF FINANCE / CFO 193486 0 0 0 0 0 3326 0 14985 0 211797 0 0 0 SALVATORE MOSCHELLA V.P. OF OPERATIONS/ COO 105000 0 0 0 52648 0 1750 0 8015 0 167413 0 0 0 MICHAEL ZOLL V.P. OF PROGRAM ADMIN 131149 0 0 0 0 0 1634 0 20360 0 153143 0 0 0 RICHARD WATKINS V.P. OF ADVANCEMENT UNTIL 2/15 166424 0 0 0 0 0 2040 0 15090 0 183554 0 0 0 PART I, LINE 1A THE COMPANION OF THE PRESIDENT OF ISE IS PERMITTED TO TRAVEL WITH HIM AS PART OF THE PRESIDENT'S EMPLOYMENT CONTRACT. FROM TIME TO TIME, A COMPANION MAY ACCOMPANY THE ACADEMIC DEAN, EXECUTIVE DEAN, OR DIRECTOR DURING ONE OF THE SEMESTER OR ENRICHMENT VOYAGES. PART I, LINE 4A LES MCCABE AND SALVATORE MOSCHELLA BOTH RECEVIED SERVANCE PAYMENTS DURING THE FISCAL YEAR. LES MCCABE RECEIVED $251,116 AND SALVATORE MOSCHELLA RECEIVED $52,648. X 13302 FMV X 10 110250 MEAN PRICE X SHARES 0 0 0 1 PART I, LINE 32B: NON-CASH "STOCK" CONTRIBUTIONS ARE RECEIVED INTO ONE OF ISE'S BROKERAGE ACCOUNTS HELD AT WELLS FARGO ADVISORS. THE SPECIFIC STOCK CONTRIBUTION IS THEN EITHER LIQUIDATED OR HELD UPON THE RECOMMENDATION OF THE INVESTMENT ADVISOR AT WELLS FARGO. FORM 990, PART VI, SECTION A, LINE 7A ON JUNE 4TH, 2014 THE INSTITUTE AMENDED THEIR AGREEMENT WITH UNIVERSITY OF VIRGINIA. THE UNIVERSITY NO LONGER HAS ANY OBLIGATIONS TO PROVIDE MEMBERS TO THE BOARD OF TRUSTEES, BUT CAN APPOINT TWO DESIGNATED NON-VOTING REPRESENTATIVES OF THE UNIVERSITY TO ATTEND INSTITUTE BOARD OF TRUSTEE MEETINGS AND SHALL HAVE FULL ACCESS TO INFORMATION FROM THESE MEETINGS. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY A CERTIFIED PUBLIC ACCOUNTING FIRM. A DRAFT IS SUBMITTED TO MANAGEMENT FOR THEIR REVIEW. UPON APPROVAL BY MANAGEMENT, THE 990 IS SUBMITTED TO THE AUDIT COMMITTEE FOR THEIR REVIEW AND APPROVAL. THE FORM IS THEN MADE AVAILABLE TO THE ENTIRE BOARD PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ISE DEVOTES THREE PAGES OF ITS EMPLOYEE POLICY MANUAL TO THE AREA OF "CONFLICT OF INTEREST AND BUSINESS ETHICS." EVERY FULL TIME EMPLOYEE OF ISE RECEIVES A COPY OF THIS MANUAL WHEN THEY ARE HIRED AND MUST BE ACCOUNTABLE AND ADHERE TO ALL POLICIES DURING THE EMPLOYMENT TENURE. EACH DEPARTMENT VICE PRESIDENT IS RESPONSIBLE TO ENSURE THAT ALL ISE POLICIES ARE FOLLOWED IN THEIR SPECIFIC DEPARTMENT. IN THE EVENT OF A POTENTIAL CONFLICT, THE INTERESTED PERSON REFRAINS FROM ALL DISCUSSIONS AND VOTE ON THE MATTER. ISE BOARD MEMBERS ARE REQUIRED TO FILL OUT A CONFLICT OF INTEREST QUESTIONNAIRE ON A ROUTINE BASIS. THE BOARD THEN REVIEWS ANY CONFLICTS OF INTEREST AND THE PARTY WITH A CONFLICT IS ABSTAINED FROM VOTING IN ANY MATTERS RELATED. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR THE PRESIDENT AND OTHER EMPLOYEES INVOLVES PERFORMING AN ANALYSIS BASED ON VARIOUS SALARY SURVEY PUBLICATIONS, SUCH AS THE COLLEGE AND UNIVERSITY PERSONNEL ASSOCIATION ("CUPA") AND THE CHRONICLE OF HIGHER EDUCATION SALARY SURVEY. THE PRESIDENT AND BOARD OF TRUSTEES EXECUTIVE COMMITTEE APPROVE ALL SALARY INCREASES FOR ALL EMPLOYEES. THE PRESIDENT/CEO'S CONTRACT WAS PREPARED BY A HIGHER EDUCATION ATTORNEY WHO SPECIALIZES IN SENIOR MANAGEMENT CONTRACTS. IT WAS REVIEWED BY THE FULL BOARD. THE FULL BOARD APPOVES THE CONTRACT OF THE PRESIDENT AND THE MINUTES FROM THE MEETING ARE DOCUMENTED. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION PROVIDES COPIES OF ITS GOVERNING INSTRUMENTS, CONFLICT OF INTEREST POLICY AND OTHER MATTERS TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: LOSS ON FOREIGN CURRENCY TRANSACTION -26,240. CHANGE IN VALUE OF LIFE ESTATE 7,678. IMPAIRMENT LOSS ON ERP SYSTEM -348,033. DEBT RESTRUCTURING GAIN 1,040,187. UVA PROFIT SHARE -250,000. EXPLORER MARITIME LLC 2410 OLD IVY ROAD CHARLOTTESVILLE VA 22903 261598279 OWNS SHIP USED FOR THE INSTITUTE FOR SHIPBOARD EDUCATION'S MISSION DE 96 0 N/A