2015-11-16T16:32:51-06:00 2014-12-31 640414329 HADDOX REID EUBANK BETTS PLLC 188 EAST CAPITOL STREET STE 500 JACKSON MS 39201 990 2014-01-01 640642776 MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION MISS 6013215555 PO BOX 5008 JACKSON MS 392965008 WILLIAM F ALVIS INTERIM PRESIDENT, INTERIM CEO, CFO 6013215555 2015-11-16 1 PAUL W CALHOUN CPA P00846500 6019482924 2015-11-16 2014 2016-04-25 22:37:26Z WILLIAM F ALVIS PO BOX 5008 JACKSON MS 392965008 132914563 0 X WWW.ESFWEB.COM/MHEAC.HTML X 1980 MS SECONDARY MARKET FOR STUDENT LOANS, APPROXIMATELY 23,232 CLIENTS WERE SERVED IN 2014. 7 7 0 0 0 0 2284752 7024055 18116391 14928200 -346623 1387469 2948314 -1563618 23002834 21776106 0 0 0 0 0 0 0 0 0 20375500 17040206 20375500 17040206 2627334 4735900 494700696 542661534 320814091 366319867 173886605 176341667 X THE CORPORATION MISSION IS TO INCREASE THE LEVEL OF APPROPRIATE QUALITY EDUCATION IN THE STATE OF MISSISSIPPI AND ELSEWHERE. PRIOR TO 2014, THE CORPORATION OPERATED EXCLUSIVELY FOR THE PURPOSE OF ACQUIRING STUDENT LOANS INCURRED UNDER THE HIGHER EDUCATION ACT OF 1965. THE PRIMARY SOURCE OF FUNDS TO ACQUIRE THE STUDENT LOANS WAS THE ISSUANCE OF TAX-EXEMPT BONDS AND TAXABLE NOTES. IN JULY 2014, THE CORPORATION AMENDED ITS ARTICLES OF INCORPORATION EXPANDING ITS EXEMPT PURPOSE AND REFINANCED ITS TAX-EXEMPT BONDS WITH TAXABLE BONDS. THE CORPORATION IS THE PARENT OF EDUCATION SERVICES FOUNDATION (ESF) WHICH PROVIDES ADMINISTRATIVE, STAFFING AND MANAGEMENT SERVICES TO THE CORPORATION. ESF ALSO CURRENTLY MANAGES AND OVERSEES THE CORPORATION'S INVESTMENT PORTFOLIO. IN ADDITION, ESF PROVIDES COLLEGE PLANNING SERVICES TO STUDENTS THROUGH ITS THREE COLLEGE PLANNING CENTERS. 0 0 14776705 13364582 THE CORPORATION SERVICED STUDENT LOANS INCURRED UNDER THE HIGHER EDUCATION ACT OF 1965 AS AMENDED. THE PRIMARY SOURCE OF FUNDS WAS THE ISSUANCE OF TAX-EXEMPT BONDS AND TAXABLE NOTES. IN 2014, THE CORPORATION ISSUED TAXABLE BONDS TO RENFINANCE ITS DEBT AND IS NO LONGER ELIGIBLE TO ISSUE TAX-EXEMPT BONDS. 14776705 1 1 0 1 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 1302 0 1 0 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 0 0 0 X WILLIAM F ALVIS 6013215555 PO BOX 5008 JACKSON MS 392965008 DAVID MARTIN DIRECTOR 1.00 X 0 2125 0 ANDREW MULLINS DIRECTOR 1.00 X 0 2375 0 RONNIE G SMITH DIRECTOR 1.00 X 0 1625 0 JACK L WOODWARD DIRECTOR 1.00 X 0 2375 0 W STAN PRATT BOARD CHAIR 1.00 X X 0 2375 0 DR JAYNE B SARGENT SECRETARY/TREASURER 1.00 X X 0 1625 0 J MURRAY UNDERWOOD BOARD VICE-CHAIR 1.00 X X 0 2125 0 WILLIAM F ALVIS INTERIM PRESIDENT, INTERIM CEO, CFO 1.00 X 0 231622 34171 SID J SIMS EXECUTIVE DIRECTOR END 6/16/14 1.00 X 0 303272 22128 0 549519 56299 0 0 1 0 EDUCATION SERVICES FOUNDATION 2600 LAKELAND TERRACE JACKSON MS 39216 MANAGEMENT FEES 4113245 US DEPARTMENT OF EDUCATION PO BOX 4134 GREENVILLE TX 754034134 REBATE FEES 2887996 AFFILIATED COMPUTER SYSTEMS PO BOX 201322 DALLAS TX 753201322 SERVICING FEES 626364 JONES WALKER LLP 190 E CAPITOL STREET SUITE 800 JACKSON MS 39201 COSTS OF ISSUANCE 325000 AVANT STRATEGIC PARTNERS 10010 SAN PEDRO SUITE 520 SAN ANTONIO TX 78216 EXCESS INT/REBATE FEE 171000 5 5250000 1774055 7024055 STUDENT LOAN INTEREST 900099 14614341 14614341 LATE FEES 900099 313859 313859 14928200 1182066 1182066 111343860 111138457 205403 205403 205403 GAINS/LOSSES ON BOND REPURCHASES 900099 -1563618 -1563618 -1563618 21776106 13364582 0 1387469 2851024 2851024 2249623 2249623 ADMINISTRATION AND LOAN 4570207 2306706 2263501 SPECIAL ALLOWANCE 3545102 3545102 CONSOLIDATION REBATE 3133871 3133871 PROVISION FOR LOAN LOSS 214607 214607 475772 475772 17040206 14776705 2263501 0 54197 15492 56829409 11829709 427539965 368337031 124070919 2089000 30757095 8188125 7651288 494700696 542661534 724427 767867 315450000 365552000 4639664 0 320814091 366319867 X 173886605 176341667 173886605 176341667 494700696 542661534 4735900 -2280838 0 X X 0 1 X 1 0 X 6932904 5315680 3676726 2284752 7024055 25234117 38796276 34033889 25986847 18116391 14928200 131861603 45729180 39349569 29663573 20401143 21952255 157095720 0 0 0 157095720 1295173 525754 239003 44190 1182066 3286186 1295173 525754 239003 44190 1182066 3286186 47024353 39875323 29902576 20445333 23134321 160381906 0.97950 0.97540 0.02050 0.02460 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 356 356 7941162 7941518 547076 136769 0 0 1000000 949882 607095 547076 3104053 4656080 1062 632 501 356 2551 250000 237471 151774 136769 776014 1164021 0 U.S. BANK COMMERCIAL PAPER 6523513 C FEG PRIVATE OPPORTUNITIES FUND II LP SERIES A 2130823 F FEG ABSOLUTE ACCESS TEI FUND LLC 15753597 F FEG EQUITY ACCESS FUND LTD SERIES A 6349162 F 30757095 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 MHEAC 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. MHEAC 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 COMBINED FINANCIAL STATEMENTS. MHEAC IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE, OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2011. CAYMAN ISLANDS INVESTMENTS 18750000 0 0 0 0 0 0 18750000 0 18750000 1 0 1 0 0 0 1 0 0 0 0 0 0 0 0 WILLIAM F ALVIS INTERIM PRESIDENT, INTERIM CEO, CFO 0 156622 0 75000 0 0 0 24397 0 10536 0 266555 0 0 SID J SIMS EXECUTIVE DIRECTOR END 6/16/14 0 303272 0 0 0 0 0 18015 0 4562 0 325849 0 0 PART I, LINE 4A SID J. SIMS SEVERANCE PAYMENT - $156,000 FORM 990, PART VI, SECTION A, LINE 4 MHEAC CEASED OPERATING AS A QUALIFIED STUDENT LOAN FUNDING CORPORATION AND FILED AN AMENDMENT TO ITS ARTICLES OF INCORPORATION ON JULY 30, 2014. THE AMENDMENT PROVIDES THAT MHEAC WILL BE OPERATED EXCLUSIVELY FOR CHARITABLE AND EDUCATIONAL PURPOSES. 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 PROCESS OF DETERMINING COMPENSATION IS MANAGED BY RELATED ORGANIZATION EDUCATION SERVICES FOUNDATION. CURRENTLY THE ORGANIZATION HAS NO 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, LINE 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. EDUCATION SERVICES FOUNDATION PO BOX 5008 JACKSON MS 392965006 640860939 HIGHER EDUCATION SERVICES MS 501(C) 3 11 MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 1 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 EDUCATION SERVICES FOUNDATION M 4113245 FAIR MARKET VALUE EDUCATION SERVICES FOUNDATION C 5250000 FAIR MARKET VALUE