2015-05-13T17:43:48-05:00 2014-06-30 910189318 MOSS ADAMS LLP 4747 EXECUTIVE DRIVE SUITE 1300 SAN DIEGO CA 92121 990 2013-07-01 237421224 CITY UNIVERSITY OF SEATTLE CITY 2062394500 521 WALL STREET NO 100 SEATTLE WA 98121 RICHARD CARTER PRESIDENT 2062394500 2015-05-13 1 PATRICIA J MAYER P00188643 8586271400 2013 2016-02-25 16:41:14Z RICHARD CARTER 521 WALL STREET NO 100 SEATTLE WA 98121 35821637 0 X WWW.CITYU.EDU X 1973 WA CITY UNIVERSITY OF SEATTLE IS A PRIVATE, NOT-FOR-PROFIT INSTITUTION OF HIGHER EDUCATION. 20 19 699 40 0 0 48435 4531309 29829961 30254954 21711 13767 1143666 1021607 31043773 35821637 508291 430254 0 0 17814894 19731463 0 0 0 14056906 15555441 32380091 35717158 -1336318 104479 16018576 16533457 12738147 13074264 3280429 3459193 X FOUNDED IN 1973, CITY UNIVERSITY OF SEATTLES MISSION IS TO CHANGE LIVES FOR GOOD BY OFFERING HIGH QUALITY AND RELEVANT LIFELONG EDUCATION TO ANYONE WITH THE DESIRE TO LEARN. CITY UNIVERSITYS VISION IS TO PROVIDE UNDERSERVED INDIVIDUALS AND COMMUNITIES AROUND THE WORLD ACCESS TO HIGH QUALITY, LIFELONG EDUCATION THROUGH A NETWORK OF LOCAL AND INTERNATIONAL PARTNERSHIPS. TO FULFILL ITS MISSION AND WORK TOWARD ACHIEVING ITS VISION, CITY UNIVERSITY OF SEATTLE DETERMINES TO BEFLEXIBLE: DESIGN AND DELIVER PROGRAMS AND SERVICES TO BE CONVENIENT TO STUDENTS; ACCESSIBLE: PROVIDE EDUCATIONAL OPPORTUNITIES TO ANYONE, ANYWHERE; INNOVATIVE: CONTINUALLY CREATE NEW EDUCATIONAL OPPORTUNITIES; RELEVANT: WHAT IS TAUGHT TODAY CAN BE APPLIED TOMORROW; AND GLOBAL: ACT LOCALLY AND THINK GLOBALLY.CITY UNIVERSITY OF SEATTLE IS ACCREDITED BY THE NORTHWEST COMMISSION ON COLLEGES AND UNIVERSITIES (NWCCU), A REGIONAL BODY APPROVED BY THE U.S. DEPARTMENT OF EDUCATION. 0 0 24124130 30254954 CITY UNIVERSITY OF SEATTLE IS A PRIVATE, NOT-FOR-PROFIT UNIVERSITY WITH APPROXIMATELY 6,122 ENROLLMENTS AND AWARDED 1,015 DEGREES DURING THE YEAR ENDED JUNE 30, 2014. ALL GRANTS UNDER FINANCIAL AID GO TO STUDENTS TO FINANCE THEIR EDUCATION. THE UNIVERSITY IS COMPRISED OF THESCHOOL OF MANAGEMENT, THE GORDON ALBRIGHT SCHOOL OF EDUCATION, THE DIVISION OF ARTS AND SCIENCES, THE DIVISION OF DOCTORAL STUDIES AND WASHINGTON ACADEMY OF LANGUAGES. HEADQUARTERED IN THE PACIFIC NORTHWEST, CITY UNIVERSITY OF SEATTLE OFFERS PROFESSIONALCERTIFICATION, ASSOCIATES, BACHELORS, MASTERS AND DOCTORAL PROGRAMS AND CLASSES AT LOCATIONS THROUGHOUT WASHINGTON, CANADA, SLOVAKIA, MEXICO,GREECE, AUSTRALIA, SWITZERLAND, BULGARIA, ROMANIA, THE CZECH REPUBLIC, AND CHINA. 430254 430254 CITY UNIVERSITY OF SEATTLE BELIEVES THAT FUNDING SHOULD NOT BE A BARRIER TO EDUCATION. THE UNIVERSITY HAS MULTIPLE SCHOLARSHIP PROGRAMS AVAILABLE FOR STUDENTS WHO ARE LOW-INCOME MINORITIES, UNDERREPRESENTED, EXPERIENCING ECONOMIC HARDSHIP, OR DEPENDENT ON MERIT-BASEDSCHOLARSHIPS AS WELL AS THE ANNUAL $15,000 SEAHAWKS UNDERGRAD SCHOLARSHIP PROGRAM FOR A DESERVING STUDENT LOOKING TO EARN A BACHELORS DEGREE. CITYU HAS AWARDED MORE THAN $2.8 MILLION IN SCHOLARSHIPS TO DATE. CITY UNIVERSITY OF SEATTLE CONTINUES THE LAID-OFF WORKER AND TRANSFER SCHOLARSHIP PROGRAM TO ASSIST STUDENTS THAT WERE IMPACTED BY RECENT POOR ECONOMIC CONDITIONS. CITY UNIVERSITY OF SEATTLE ALSO ADDED INTERNATIONAL STUDENT SCHOLARSHIPS FOR STUDENTS WITH ECONOMIC NEED, NEW STUDENTS AND TRANSFER STUDENTS. 24554384 1 1 0 0 0 0 0 0 0 0 1 0 1 1 1 1 0 1 1 1 1 0 1 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 1 68 0 1 699 1 0 1 CA LO 0 0 0 0 0 0 0 0 X 20 19 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 WA X BRUCE BRYANT CFOVP OF FINANCE 2062394826 521 WALL STREET NO 100 SEATTLE WA 98121 ALEXANDER R SHIKHMAN TRUSTEE 3.00 X 0 0 0 CARLOS RODRIGUEZ TRUSTEE 3.00 X 0 0 0 CHERYL KENDRICK TRUSTEE 3.00 X 0 0 0 DR DONALD KRIPKE TRUSTEE 3.00 X 0 0 0 DR E LEE RICE TRUSTEE 3.00 X 0 0 0 DR JERRY LEE CHANCELLOR EMERITUS, TRUSTEE 0.30 X 0 0 0 FELIPE BECERRA THROUGH 813 TRUSTEE 3.00 X 0 0 0 GERALD CZARNECKI TRUSTEE 3.00 X 0 0 0 HERBERT MEITSTRICH CHAIR, BOARD OF TRUSTEES 10.00 X X 0 0 0 HIEP QUACH TRUSTEE 3.00 X 0 0 0 JACQUELINE TOWNSEND KONSTANTUROS TRUSTEE 3.00 X X 0 0 0 JAY STONE TRUSTEE 3.00 X 0 0 0 JEAN LEONARD TRUSTEE 3.00 X 0 0 0 JEANNE CONNELLY TRUSTEE 3.00 X 0 0 0 JOHN BUCHER TRUSTEE 3.00 X 0 0 0 MICHAEL R MCGILL TRUSTEE 3.00 X 0 0 0 RANDY ALIMENT TRUSTEE 3.00 X 0 0 0 RICHARD CHISHOLM SECRETARY/TRUSTEE 5.00 X 0 0 0 ROBERT FREELEN TRUSTEE 3.00 X 0 0 0 RUTHANN HEINRICH VICE CHAIR, TRUSTEE 5.00 X 0 0 0 STACY ALLISON TRUSTEE 3.00 X 0 0 0 THOMAS TOPUZES TRUSTEE 3.00 X X 0 0 0 WH KNIGHT JR TRUSTEE 3.00 X 0 0 0 BRUCE BRYANT CFO, VP FINANCE AND ADMINISTRATION 50.00 1.00 X 187569 0 16333 RICHARD E CARTER PRESIDENT 50.00 X 369507 0 36253 STEVEN OLSWANG PROVOST 50.00 1.00 X 226707 0 8355 MARIANNE FINGADO VP, ENROLLMENT SERVICES 50.00 X 168736 0 34293 CHRISTOPHER ROSS VP, UNIVERSITY ADVANCEMENT 50.00 1.00 X 116237 0 9929 CRAIG SCHEIBER DEAN, SCHOOL OF EDUCATION/DIVISION OF ARTS AND SCI 50.00 X 104104 0 18433 KEVIN BROWN DIRECTOR, INFORMATION TECHNOLOGY 50.00 X 116549 0 19083 KURT KIRSTEIN DEAN, SCHOOL OF MANAGEMENT 50.00 X 137560 0 14199 MELISSA MECHAM VP , STUDENT SERVICES/REGISTRAR 50.00 X 127449 0 14290 EDWARD L GORSUCH PRESIDENT 50.00 1.00 X 200508 0 5714 1754926 0 176882 10 1 1 0 SIERRA-CEDAR INC PO BOX 402521 ATLANTA GA 30384 SOFTWARE HOSTING AND CONSULTING 782938 SABEY INTERGATE EXCHANGE LLC 12201 TUKWILA INTERNATIONAL BLVD 4 SEATTLE WA 98168 WIRELESS SERVICES 467167 DNA SEATTLE 1301 5TH AVENUE SUITE 2600 SEATTLE WA 98101 ADVERTISING SERVICES 398812 KPMG LLP DEPT 0922 PO BOX 120922 DALLAS TX 75312 AUDIT SERVICES 289420 ALTIUS EDUCATION INC 101 SPEAR ST SUITE 203 SAN FRANCISCO CA 94105 ADVERTISING SERVICES 250000 5 4219494 311815 236000 4531309 EDUCATIONAL SERVICES 611310 30254954 30254954 30254954 13767 13767 193055 193055 47972 0 47972 47972 47972 AFFILIATION REIMBURSEM 900099 709679 709679 OFFICE SUPPLY CONTRACT 900099 27196 27196 BOOKSTORE COMMISSION 900099 13258 13258 30447 30447 780580 35821637 30254954 0 1035374 389107 389107 41147 41147 920689 696405 224284 15680627 12554962 3125665 185478 129901 55577 1635116 1454360 180756 1309553 1030578 278975 51967 4468 47499 236407 236407 1065169 513317 551852 3012967 89122 2923845 1292185 850278 441907 1519788 45665 1474123 4513144 3797358 715786 581401 396788 184613 43503 36006 7497 35984 35984 1500619 1184174 316445 18259 18259 INSTRUCTIONAL MATERIALS 506528 482982 23546 CREDIT CARD FEES 305650 305650 STUDY/TOUR SEMINAR PROG 290942 290942 BAD DEBT EXPENSE 231902 231902 349026 29272 319754 35717158 24554384 11162774 0 83089 674582 1042231 594248 429430 3336 525870 824322 28912732 19252701 8897504 9660031 1056368 1111000 1111000 89047 54081 2615883 3780011 16018576 16533457 2711498 2371824 1820652 1627492 1611280 1929425 6594717 7145523 12738147 13074264 X 3280429 3459193 3280429 3459193 16018576 16533457 X 104479 74285 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 11927129 5235260 6691869 16985603 14017441 2968162 9660031 SLOVAKIA INVESTMENTS 1111000 C 1111000 INTERCOMPANY RECEIVABLES 1734216 DEPOSITS 860667 DUE FROM AFFILIATE 1185128 3780011 DEFERRED RENT 7145523 7145523 X PART X, LINE 2: THE UNIVERSITY HAS RECEIVED A LETTER OF DETERMINATION FROM THE U.S. INTERNAL REVENUE SERVICE GRANTING AN EXEMPTION FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (THE IRC), EXCEPT TO THE EXTENT OF UNRELATED BUSINESS TAXABLE INCOME AS DEFINED UNDER IRC SECTIONS 511 THROUGH 514. THE UNIVERSITY DID NOT INCUR UNRELATED BUSINESS INCOME TAX DURING THE YEARS ENDED JUNE 30, 2014 AND 2013, AND ACCORDINGLY, THE CONSOLIDATED FINANCIAL STATEMENTS DO NOT INCLUDE A PROVISION FOR FEDERAL INCOME TAXES. MANAGEMENT BELIEVES THAT THE UNIVERSITY ALSO IS EXEMPT FROM STATE INCOME TAXES IN ALL STATES IN WHICH IT OPERATES THAT HAVE A CORPORATE INCOME TAX, EXCEPT TO THE EXTENT OF UNRELATED BUSINESS TAXABLE INCOME. FURTHER, THE UNIVERSITY APPLIES THE PROVISIONS OF FASB INTERPRETATION NO. 48 (FIN 48), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (ASC TOPIC 740, INCOME TAXES). 1 1 1 1 1 1 1 0 0 0 1 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 THE ORGANIZATIONS NONDISCRIMINATORY POLICY FOR STUDENTS AND EMPLOYEES IS IN THE PUBLISHED HANDBOOK AS WELL AS ON THE ORGANIZATIONS WEBSITE AND IS CONTAINED IN THE STUDENT APPLICATION PACKET. SCHEDULE E, PART I, LINE 5 GORDON ALBRIGHT SCHOOL OF EDUCATION DIVERSITY SCHOLARSHIPS PROMOTE ETHNIC DIVERSITY IN OUR STUDENT BODY AS AN IMPORTANT PART OF THE OVERALL LEARNING EXPERIENCE AT CITY UNIVERSITY OF SEATTLE. WE ALSO WORK HARD TO EDUCATE AND FACILITATE THE PLACEMENT OF DIVERSE TEACHERS IN CLASSROOMS TO SERVE OUR COMMUNITIES. EUROPE 0 0 INVESTMENT 1111000 EAST ASIA AND THE PACIFIC 0 67 PROGRAM SERVICES STUDENT RECRUITING, PROGRAM MANAGEMENT AND INSTRUCTION 160925 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES RECRUITING/TRADE FAIRS, STUDENT MOBILITY SERVICES, INSTRUCTION 103325 NORTH AMERICA 0 121 PROGRAM SERVICES BRANCH LOCATIONS IN CANADA, INSTRUCTION AND PROGRAM MANAGEMENT 40505 NORTH AMERICA 0 0 GRANTMAKING SCHOLARSHIPS 33000 SOUTH ASIA 0 0 PROGRAM SERVICES STUDENT RECRUITING 30274 0 188 0 0 0 188 1479029 0 1479029 GRANTS TO INDIVIDUALS NORTH AMERICA 33 33000 SCHOLARSHIP N/A FMV 1 0 1 0 0 0 PART I, LINE 2: SCHOLARSHIP FUNDS ARE AWARDED TO PROVIDE ASSISTANCE TO STUDENTS AT THE CITY UNIVERSITY OF SEATTLE LOCATIONS IN CANADA AND CHINA. 1 SCHOLARSHIPS, TUITION WAIVERS 196 389107 FMV TUITION IS REDUCED BY THE AMOUNT OF INDIVIDUAL SCHOLARSHIPS AWARDED TO STUDENTS. PART I, LINE 2: CITY UNIVERSITY OF SEATTLE PROVIDES SCHOLARSHIP GRANTS TO STUDENTS IN THE FORM OF TUITION REDUCTION. MONITORING IS DONE INTERNALLY TO ENSURE THE ACCOUNTS ARE CREDITED PROPERLY. X X X X 1 1 X X X 0 0 0 0 0 0 0 0 0 BRUCE BRYANT CFO, VP FINANCE AND ADMINISTRATION 185247 0 0 0 2322 0 5575 0 10758 0 203902 0 0 0 RICHARD E CARTER PRESIDENT 369507 0 0 0 0 0 18060 0 18193 0 405760 0 0 0 STEVEN OLSWANG PROVOST 220705 0 0 0 6002 0 6673 0 1682 0 235062 0 0 0 MARIANNE FINGADO VP, ENROLLMENT SERVICES 168736 0 0 0 0 0 9315 0 24978 0 203029 0 0 0 KURT KIRSTEIN DEAN, SCHOOL OF MANAGEMENT 136801 0 0 0 759 0 3885 0 10314 0 151759 0 0 0 EDWARD L GORSUCH PRESIDENT 148943 0 40385 0 11180 0 5714 0 0 0 206222 0 0 0 PART I, LINE 1A THE PRESIDENTS (LEE GORSUCH) EMPLOYEMENT CONTRACT ALLOWS HIS WIFE TO ACCOMPANY HIM ON TWO INTERNATIONAL BUSINESS TRIPS PER YEAR. AT LEAST ONE OF THESE TRIPS IS USUALLY WHEN THE PRESIDENT ATTENDS GRADUATION CEREMONIES HELD IN THE UNIVERSITYS FOREIGN LOCATIONS. THE UNIVERSITY ALSO PAYS FOR THE PRESIDENTS MEMBERSHIP AT THE BELLEVUE CLUB (HEALTH AND SOCIAL CLUB THAT HAS RESTAURANTS AND A HOTEL WITHIN THE CLUB) WHERE THE PRESIDENT OCCASIONALLY ENTERTAINS BUSINESS ASSOCIATES. THESE BENEFITS ARE TREATED AS TAXABLE COMPENSATION. THE PRESIDENT IS THE ONLY PERSON WHO RECEIVED SUCH BENEFITS. LEE GORSUCH PARTICIPATES IN A 457B RETIREMENT PLAN IN LIEU OF RECEIVING EMPLOYER PAID BENEFITS SUCH AS MEDICAL, DENTAL, VISION,EAP, AND LIFE INSURANCE. THE UNIVERSITY PAID $5,891 INTO THIS PLAN DURING THE CALENDAR YEAR 2013, WHICH IS ALSO INCLUDED IN BOX 5 OF HIS W-2 (TAXABLE WAGES). 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. X 1 236000 FMV 1 0 0 0 PART I, COLUMN (B): THE NUMBER OF CONTRIBUTIONS IS BASED ON THE NUMBER OF ITEMS RECEIVED. FORM 990, PART VI, SECTION A, LINE 2 TRUSTEE JOHN BUCHER AND TRUSTEE, FELIPE BECERRA HAD A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 11 THE DRAFT FORM 990 WAS DISTRIBUTED TO SENIOR MANAGEMENT AND THE AUDIT COMMITTEE. THE FINAL VERSION OF FORM 990 WAS DISTRIBUTED FOR REVIEW BY EMAIL TO THE TRUSTEES BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, BOARD OF GOVERNORS AND OFFICERS ARE REQUIRED TO COMPLETE A NEW OR UPDATED CONFLICT OF INTEREST STATEMENT, WHICH REINFORCES THE NEED TO DISCLOSE ANY CONFLICTS THAT MAY EXIST. IF A CONFLICT OF INTEREST ARISES, THE CONFLICTED BOARD OF GOVERNOR MEMBER EXCUSES HIMSELF OR HERSELF. ADDITIONALLY, ANY NEW BOARD OF GOVERNOR MEMBERS ARE BRIEFED ON THE CONFLICT POLICY DURING BOARD ORIENTATION. COPIES OF THE SIGNED CONFLICT OF INTEREST STATEMENTS ARE MAINTAINED BY THE CORPORATE SECRETARY. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION REVIEWS ARE COORDINATED BY THE HUMAN RESOURCES DEPARTMENT AND GENERALLY INVOLVE THE USE OF OUTSIDE AGENCIES FOR SALARY COMPARISONS. ONCE MARKET VALUE COMPENSATION IS DETERMINED, THAT WILL BE USED TO SET THE RANGE OF COMPENSATION. THEREAFTER, ANNUAL ADJUSTMENTS ARE MADE BASED UPON CPI MOVEMENTS, MARKET INDICATORS AND THE OVERALL FINANCIAL CONDITION OF THE INSTITUTION. THE NATIONAL UNIVERSITY SYSTEM CHANCELLOR AND CITY UNIVERSITY BOARD SET THE ANNUAL COMPENSATION FOR THE PRESIDENT. THE PROCESS IS DOCUMENTED AND WAS LAST COMPLETED JUNE 20, 2014. FORM 990, PART VI, SECTION C, LINE 19 COPIES OF THE ANNUAL TAX RETURN AND AUDITED FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST AS NOTED IN THE ANNUAL COURSE CATALOG WHICH IS AVAILABLE ELECTRONICALLY ON THE UNIVERSITY WEBSITE OR IN HARD COPY. GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY ARE ALSO AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: FOREIGN CURRENCY TRANSLATION 74,285. FORM 990, PART VII, COMPENSATION: 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. VYSOKA SKOLA MANAZMENTU PANONSKA CESTA 17 BRATISLAVA LO 851 04 SLOVAKIAN INSTITUTION OF HIGHER EDUCATION LO LINE 2 CITY UNIVERSITY OF SEATTLE BELLEVUE USA SPOL SRO 0 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 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 9 N/A 1 NATIONAL UNIVERSITY 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 237172306 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 2 N/A 1 NATIONAL UNIVERSITY INTERNATIONAL INC 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 453997908 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 2 N/A 1 CITY UNIVERSITY OF SEATTLE BELLEVLUE USA SPOL SRO PANONSKA CESTA 17 BRATISLAVA LO 851 04 HIGHER EDUCATION LO CITY UNIVERSITY OF SEATTLE TUITION 112604 1965159 0 1 1.00000 CU PROPERTIES AS PANONSKA CESTA 17 BRATISLAVA LO 851 04 PROPERTY MANAGEMENT LO N/A C 224674 3105266 1.00000 1 0 0 1 0 0 0 0 0 0 0 0 1 0 1 1 0 1 1 1 VYSOKA SKOLA MANAZMENTU L 192937 CASH TRANSFER NATIONAL UNIVERSITY C 4219494 CASH SCHEDULE R, RELATED ORGANIZATIONS: THE NUS IS AN ALLIANCE OF EDUCATIONAL INSTITUTIONS, SERVING DIVERSE LEARNERS FROM HIGH SCHOOL TO DOCTORAL PROGRAMS. THE NUS INCLUDES 8 INDEPENDENT NON-PROFIT ORGANIZATIONS EXEMPT UNDER IRC SECTION 501(C)(3): NATIONAL UNIVERSITY, NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL, WESTMED COLLEGE, JOHN F. KENNEDY UNIVERSITY, SPECTRUM PACIFIC LEARNING, INC., NATIONAL UNIVERSITY INTERNATIONAL INC., CITY UNVIVERSITY 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. SPECTRUM PACIFIC LEARNING COMPANY LLC AND NATIONAL UNIVERSITY INTERNATIONAL LLC ARE WHOLLY-OWNED BY NATIONAL UNIVERSITY, AND ARE TREATED AS DISREGARDED ENTITIES FOR TAX PURPOSES. ANOTHER MEMBER OF THE NUS IS NATIONAL UNIVERSITY ACADEMY, A K-12 CHARTER SCHOOL ORGANIZATION. THE BOARD OF TRUSTEES OF EACH NU SYSTEM 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 THE NU SYSTEM. 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, SPECTRUM PACIFIC LEARNING, INC., NATIONAL UNIVERSITY INTERNATIONAL INC., CITY UNIVERSITY OF SEATTLE, AND SYSTEM MANAGEMENT GROUP. SCHEDULE R STATEMENT: IN FEBRUARY 2013, THE UNIVERSITY ENTERED INTO A CONTRACT OF AFFILIATION (THE CONTRACT) WITH THE NATIONAL UNIVERSITY SYSTEM (NUS), WHICH IS AN ALLIANCE OF OPERATIONALLY INDEPENDENT AND SEPARATELY ACCREDITED NONPROFIT EDUCATIONAL INSTITUTIONS, A PUBLIC CHARTER SCHOOL, AND TWO NONPROFIT SERVICE PROVIDERS. THE AFFILIATION AGREEMENT PROVIDES FOR CERTAIN FINANCIAL BENEFITS TO THE UNIVERSITY FOR CURRENT AND FUTURE CAPITAL PROJECT FUNDING AND EXPENSE REIMBURSEMENTS TO PROVIDE ADDITIONAL WORKING CAPITAL TO FUND EXPECTED FUTURE REQUIREMENTS AND NEEDS OF THE UNIVERSITY. ADDITIONALLY, THE CONTRACT INCLUDES A GUARANTEE BY NUS OF ALL OUTSTANDING OBLIGATIONS OF THE UNIVERSITY UNDER THE AFFILIATION. THE UNIVERSITY BOARD OF GOVERNORS ELECTED IN ITS STEAD THE PERSONS WHO ARE ALSO BOARD MEMBERS OF THE OTHER NUS AFFILIATES. THE UNIVERSITY RETAINS ITS NAME, IDENTITY, AND STANDING AS AN INDEPENDENT FULLY ACCREDITED NONPROFIT UNIVERSITY, AS WELL AS ITS COMMITMENT TO ITS CORE MISSION, VISION AND VALUES. THE UNIVERSITYS AFFILIATION WITH NUS WILL SIGNIFICANTLY STRENGTHEN THE UNIVERSITYS RESOURCES AND PROVIDE FOR THE LONG-TERM FUTURE OF THE UNIVERSITY.