2015-10-05T09:17:07-05:00 2014-12-31 640414329 HADDOX REID EUBANK BETTS PLLC 188 EAST CAPITOL STREET STE 500 JACKSON MS 39201 990 2014-01-01 640860939 EDUCATION SERVICES FOUNDATION EDUC 6013215555 PO BOX 5008 JACKSON MS 392965008 WILLIAM F ALVIS INTERIM PRESIDENT, INTERIM CEO, CFO 6013215555 2015-09-28 1 PAUL W CALHOUN CPA P00846500 6019482924 2015-09-28 2014 2016-03-07 17:11:31Z WILLIAM F ALVIS PO BOX 5008 JACKSON MS 392965008 4202214 0 X WWW.ESFWEB.COM X 1995 MS ASSISTING PARENTS AND STUDENTS IN OBTAINING KNOWLEDGE REGARDING THE MEANS TO ACHIEVE APPROPRIATE QUALITY EDUCATION. 7 7 36 0 0 0 21400 2892 6015528 4193396 7739 5926 0 0 6044667 4202214 50250 5304000 0 0 2689252 3095013 0 0 0 2999580 2303634 5739082 10702647 305585 -6500433 10466414 3763778 729773 527570 9736641 3236208 X ESF WAS CREATED IN 1995 TO MAKE CERTAIN THAT MISSISSIPPI STUDENTS HAVE ACCESS TO HIGHER EDUCATION. ESF OFFERS A COMPREHENSIVE COLLEGE PLANNING PROGRAM PROVIDING A RANGE OF INFORMATION AND COUNSELING TO STUDENTS AND THEIR FAMILIES ON PLANNING AND PAYING FOR COLLEGE. ESF ALSO SERVES AS THE MANAGING COMPANY FOR MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION (MHEAC), THE NOT-FOR-PROFIT SECONDARY MARKET CORPORATION IN THE STATE OF MISSISSIPPI. 1 0 5250000 5250000 FUNDS CONTRIBUTED TO MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 2018079 4053857 PROVIDING MANAGEMENT SERVICES TO MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 2137566 54000 139539 PROVIDING SERVICES TO STUDENTS AND PARENTS INCLUDING SCHOLARSHIPS, COLLEGE ACCESS AND FINANCIAL AID COUNSELING, AND MENTORING STUDENTS IN MISSISSIPPI. 147848 DEFAULT PREVENTION FOR MISSISSIPPI COMMUNITY COLLEGES AND COLLECTION OF TUITION FOR NONPROFIT EDUCATIONAL INSTITUTIONS. 147848 9553493 1 0 0 1 0 0 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 25 0 1 36 1 0 0 0 0 0 0 0 0 0 0 X 7 7 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MS X WILLIAM F ALVIS 6013215555 PO BOX 5008 JACKSON MS 392965008 DAVID MARTIN DIRECTOR 1.00 X 2125 0 0 ANDREW MULLINS DIRECTOR 1.00 X 2375 0 0 RONNIE G SMITH DIRECTOR 1.00 X 1625 0 0 JACK L WOODWARD DIRECTOR 1.00 X 2375 0 0 W STAN PRATT BOARD CHAIR 1.00 X X 2375 0 0 DR JAYNE B SARGENT SECRETARY/TREASURER 1.00 X X 1625 0 0 J MURRAY UNDERWOOD BOARD VICE CHAIR 1.00 X X 2125 0 0 WILLIAM F ALVIS INTERIM PRESIDENT, INTERIM CEO, CFO 40.00 X 231622 0 34171 SID J SIMS EXECUTIVE DIRECTOR END 6/16/14 40.00 X 303272 0 22128 WILLARD GRAY DIRECTOR OF LOAN OPERATION 40.00 X 149457 0 22911 JAMES MCCULLOUCH MANAGER OF LOAN SERVICES 40.00 X 105938 0 16683 MINETTE D KETCHINGS CONTROLLER 40.00 X 103407 0 17538 ANN HENDRICK DIRECTOR OF GET2COLLEGE DIVISION 40.00 X 132124 0 20821 1040445 0 134252 6 0 1 0 AFFILIATED COMPUTER SYSTEMS PO BOX 201322 DALLAS TX 753201322 SERVICING FEES 892580 ERNST & YOUNG LLP PO BOX 933514 ATLANTA GA 91193 CPA PROFESSIONAL FEES 118322 2 2892 2892 OPERATIONAL FEES 900099 4053857 4053857 COST/EXPENSE REIMBURSE 900099 139539 139539 4193396 5926 5926 4202214 4193396 0 5926 5250000 5250000 54000 54000 618285 173640 444645 1945681 1663219 282462 197152 161784 35368 179894 137271 42623 154001 111843 42158 70614 48710 21904 96750 84750 12000 92549 92549 21627 20814 813 89345 79213 10132 14518 12293 2225 279574 255917 23657 120037 118736 1301 12226 11777 449 60683 52267 8416 177540 94699 82841 DATA PROCESSING AND LOA 698394 695861 2533 DUES/SUBSCRIPTIONS 93679 71732 21947 PUBLICATIONS & RESOURCE 85987 85951 36 MAINTENANCE 34060 21033 13027 356051 255434 100617 10702647 9553493 1149154 0 247827 376653 9581327 2973465 1186486 1098777 125295 87709 511965 325951 10466414 3763778 729773 527570 729773 527570 X 9736641 3236208 9736641 3236208 10466414 3763778 -6500433 0 X X 0 1 X 1 0 X X 1 MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 501(C)(3) 1 5250000 0 1 5250000 0.99900 0.00100 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 PART IV, SECTION A, LINE 5 THE ORGANIZATION AMENDED ITS ARTICLES OF INCORPORATION AND ITS BYLAWS. THE AMENDMENT PROVIDES THAT EDUCATION SERVICES FOUNDATION WILL BE OPERATED EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, AND TO CARRY OUT THE PURPOSES OF MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION (EIN#64-0642776) THE ORGANIZATION PROVIDES ADMINISTRATIVE, STAFFING AND MANAGEMENT SERVICES TO MISSISSIPPI HIGHER EDUCATION ASSISTANCE (MHEAC). THE ORGANIZATION ADMINISTERS PERSONNEL, INCLUDING THE HIRING AND SUPERVISION OF ALL EMPLOYEES THAT PROVIDE SERVICES TO MHEAC. THE ORGANIZATION PROVIDES A NUMBER OF SUPPORT FUNCTIONS TO HELP ADMINISTER MHEAC'S STUDENT LOAN ACTIVITIES. IN ADDITION, THE ORGANIZATION OVERSEES MHEAC'S INVESTMENT PORTFOLIO AND MANAGES MHEAC'S SPENDING POLICY TO ENSURE THERE IS ENOUGH MONEY TO FUND MHEAC'S EXEMPT PURPOSE ACTIVITIES. 1750 1750 5450897 5452647 422632 105658 0 0 467015 448604 436954 422632 1775205 2662808 3000 2250 2250 1750 9250 116754 112151 109239 105658 443802 665703 1186486 1098777 87709 87709 MISCELLANEOUS RECEIVABLES AND DUE TO/DUE FROM 325951 325951 X PART X, LINE 2: AUDITED FINANCIAL STATEMENT FOOTNOTE DISCLOSURE REGARDING ORGANIZATION'S LIABILITY FOR UNCERTAIN TAX POSITIONS: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ESF IS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, AND IS NOT A PRIVATE FOUNDATION WITHIN THE MEANING OF SECTION 509(A) OF THE INTERNAL REVENUE CODE. ESF BELIEVES IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS. ESF IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE, OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2011. 1 MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION PO BOX 5008 JACKSON MS 39296 640642776 501(C)(3) 5250000 GENERAL OPERATIONS 1 SCHOLARSHIPS 58 54000 PART I, LINE 2: EDUCATION SERVICES FOUNDATION HAS A CONTRACT TO MANAGE MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATIN'S OPERATIONS AND WILL MONITOR THE USE OF THE FUNDS AS PART OF THAT CONTRACT. FOR THE $1,000 AND $1,500 SCHOLARSHIPS GIVEN, THE FUNDS ARE SUBMITTED DIRECTLY TO THE COLLEGE OR UNIVERSITY A STUDENT HAS INDICATED THEY WILL BE ATTENDING. THE COLLEGE OR UNIVERSITY IS RESPONSIBLE FOR APPLYING THE SCHOLARSHIP TO THE STUDENTS ACCOUNT AFTER THEY HAVE VERIFIED THE STUDENT IS OR WILL BE ATTENDING THE COLLEGE OR UNIVERSITY. IF THE COLLEGE OR UNIVERSITY CANNOT VERIFY THE STUDENTS ENROLLMENT, THE FUNDS WILL BE RETURNED TO THE FOUNDATION. FOR THE $500 SCHOLARSHIPS, THE FUNDS ARE GIVEN TO HIGH SCHOOL JUNIORS AND ARE PAID DIRECTLY TO THE STUDENT. X 1 0 0 0 0 0 0 0 0 WILLIAM F ALVIS INTERIM PRESIDENT, INTERIM CEO, CFO 156622 0 75000 0 0 0 24397 0 10536 0 266555 0 0 0 SID J SIMS EXECUTIVE DIRECTOR END 6/16/14 303272 0 0 0 0 0 18015 0 4562 0 325849 0 0 0 WILLARD GRAY DIRECTOR OF LOAN OPERATION 149457 0 0 0 0 0 18145 0 5493 0 173095 0 0 0 ANN HENDRICK DIRECTOR OF GET2COLLEGE DIVISION 132124 0 0 0 0 0 16055 0 5406 0 153585 0 0 0 PART I, LINE 4A SID J. SIMS SEVERANCE PAYMENT - $156,000 N/A 0 0 0 0 PART II ESF TRANSFERRED MORE THAN 25% OF THEIR NET ASSETS AS A RESULT OF GRANTS OR OTHER ASSISTANCE MADE IN THE ORDINARY COURSE OF THE ORGANIZATION'S EXEMPT ACTIVITIES TO ACCOMPLISH THE ORGANIZATION'S EXEMPT PURPOSES. THEREFORE, THIS IS NOT REQUIRED TO BE REPORTED IN PART II. FORM 990, PART III, LINE 2 THE PUBLIC CHARITY STATUS OF ESF WAS RECLASSIFIED TO THAT OF A SUPPORTING ORGANIZATION TO MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION (MHEAC). ACCORDING TO ITS AMENDED ARTICLES OF INCORPORATION, ESF WILL OPERATE EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, AND TO CARRY OUT THE PURPOSES OF MHEAC. FORM 990, PART VI, SECTION A, LINE 4 ON JULY 30, 2014, EDUCATION SERVICES FOUNDATION (ESF) AMENDED ITS ARTICLES OF INCORPORATION AND ITS BYLAWS. THE AMENDMENT PROVIDES THAT ESF WILL BE OPERATED EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, AND TO CARRY OUT THE PURPOSES OF MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION (MHEAC). THERE IS NOW A PARENT-SUBSIDIARY RELATIONSHIP BETWEEN MHEAC AND ESF, WITH MHEAC SERVING AS THE PARENT, AND ESF SERVING AS A SUBSIDIARY SUPPORTING ORGANIZATION OF MHEAC. FORM 990, PART VI, SECTION B, LINE 11 THE EXECUTIVE DIRECTOR DISTRIBUTES A COPY OF THE TAX RETURN TO THE BOARD AT THEIR REGULAR MEETING. ALL BOARD MEMBERS REVIEW THE RETURN AND CHECK FOR ANY CHANGES OR ADDITIONS THAT NEED TO BE MADE. ONCE IT HAS BEEN DECIDED THAT NO FURTHER CHANGES ARE NECESSARY, THE RETURN IS FINALIZED AND FILED. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REQUIRES ALL DIRECTORS, PRINCIPAL OFFICERS AND MEMBERS OF COMMITTEES WITH GOVERNING BOARD-DELEGATED POWERS ("INTERESTED PARTIES") TO COMPLETE AN ANNUAL CONFLICT OF INTEREST STATEMENT DISCLOSING ANY RELATIONSHIPS THAT MIGHT POSE A CONFLICT OF INTEREST. THE AUDIT COMMITTEE OF THE BOARD REVIEWS ANY POTENTIAL CONFLICTS OF INTEREST. IF THE COMMITTEE DETERMINES THERE IS AN ACTUAL CONFLICT OF INTEREST, THEY TAKE APPROPRIATE ACTIONS TO DETERMINE WHETHER THE TRANSACTION OR ARRANGEMENT IS IN THE ORGANIZATION'S BEST INTEREST AND IS FAIR AND REASONABLE. IF THE AUDIT COMMITTEE DETERMINES THAT AN INTERESTED PERSON HAS FAILED TO DISCLOSE AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST, THE AUDIT COMMITTEE HAS THE AUTHORITY TO TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION'S BOARD OF DIRECTORS MAINTAINS A COMPENSATION COMMITTEE WHICH ASSUMES THE RESPONSIBILITY FOR DETERMINING FAIR AND COMPETITVE COMPENSATION FOR THE ORGANIZATION'S OFFICERS AND EMPLOYEES. THE BOARD OF DIRECTORS APPROVES THE COMPENSATION OF THE ORGANIZATION'S OFFICERS AND EMPLOYEES. 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 XII, 2C, ORGANIZATION COMMITTEE OVERSIGHT OF AUDIT: THE ORGANIZATION MAINTAINS AN AUDIT COMMITTEE WHICH ASSUMES THE RESPONSIBILITY FOR OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION PO BOX 5008 JACKSON MS 392965008 640642776 HIGHER EDUCATION ASSISTANCE MS 501(C)3 9 N/A 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION L 4113245 FAIR MARKET VALUE MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION B 5250000 FAIR MARKET VALUE