2013-11-11T13:53:55-08:00 2012-12-31 BAKER TILLY VIRCHOW KRAUSE LLP 225 S 6TH ST STE 2300 MINNEAPOLIS MN 55402 990 2012-01-01 411991995 ECMC GROUP INC ECMC 6512210566 1 IMATION PLACE BUILDING 2 OAKDALE MN 551283422 GREGORY VAN GUILDER 6512210566 2013-11-11 true LAWRENCE H MOHR CPA 6128764500 2013-11-11 2012 2016-02-24 21:20:13Z GREGORY VAN GUILDER 1 IMATION PLACE BUILDING 2 OAKDALE MN 551283422 347076249 false X N/A X 2000 DE ECMC Group, Inc. supports the furtherance of the exempt purpose of Educational Credit Management Corporation by providing management/planning services that are in support of higher education finance and college access, retention and success. ECMC Group, Inc. also funds the programs and initiatives of ECMC Foundation. 11 10 31 0 0 119053498 337911123 19680939 9079185 29213 85941 0 138763650 347076249 65058498 53523229 0 5299204 9341084 0 0 6482831 11649587 76840533 74513900 61923117 272562349 179596471 577254653 55316505 180412338 124279966 396842315 X The mission of ECMC Group, Inc. is to help students recognize and realize false false 53496229 53496229 CONTRIBUTIONS MADE TO ECMC FOUNDATION TO FUND INNOVATIVE OUTREACH PROGRAMS AND SCHOLARSHIP PROGRAMS TO CONVEY TO STUDENTS THE IMPORTANCE OF COMPLETING HIGH SCHOOL AND TO DEVELOP AND DISTRIBUTE PROGRAMS THAT FOCUS ON ACCESS, RETENTION AND SUCCESS IN HIGHER EDUCATION, THEREBY HELPING LOW-INCOME INDIVIDUALS AS WELL AS THOSE WHO MAY BE THE FIRST IN THEIR FAMILY TO ATTEND COLLEGE FURTHERING THEIR EDUCATION GOALS. 1537079 9079185 LOAN PORTFOLIO SERVICING: ECMC GROUP, INC. HAS AN ELIGIBLE LENDER TRUST AGREEMENT WITH US BANK NATIONAL ASSOCIATION. US BANK SERVES AS AN ELIGIBLE LENDER TRUST (ELT) FOR ECMC GROUP, INC. THROUGH THE ELT, ECMC GROUP, INC. PURCHASES FFELP REHABILITATED STUDENT LOANS FROM EDUCATIONAL CREDIT MANAGEMENT CORPORATION, A RELATED ENTITY, AND OTHER GUARANTY AGENCIES. 711744 THROUGH THE PUBLIC POLICY PROGRAM, ECMC GROUP, INC. SHARES INFORMATION AMONG ECMC GROUP-RELATED MEMBERS ON LEGISLATIVE PROPOSALS AND GOVERNMENTAL REGULATIONS THAT IMPACT THEIR OPERATIONS. THE PROGRAM ENABLES ECMC GROUP, INC. AFFILIATES TO MONITOR PUBLIC POLICY MATTERS AND PROVIDE NONPARTISAN ANALYSIS AND RESEARCH TO POLICYMAKERS, THOUGHT LEADERS AND THE GENERAL PUBLIC. 27000 27000 Continued on Schedule O. 27000 27000 55772052 true true false false false false false false false false true false true false true true false true false false false false false false false false false true false true false false false false false false false false false false false false true true true true false true 62 0 31 true false false false false false false false false false false X 11 10 false false false false true true true true true false false true true true true true true true true false NM X GREGORY VAN GUILDER 6512210566 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 X ROBERT STEIN 9.00 X 93667 24500 0 GARY COOK 4.00 X 74654 14000 0 ROBERTA COOPER RAMO 4.00 X 75000 16000 0 JOHN DEPODESTA 9.00 X 86654 26000 0 EDWARD JENNINGS 2.00 X 56500 11500 0 I KING JORDAN 3.00 X 67000 12000 0 JAMES MCKEON 5.00 X 80500 18000 0 JACK O'CONNELL 3.00 X 59000 12000 0 MAURICE SALTER 6.00 X 65000 16000 0 PETER TAYLOR 4.00 X 50667 0 0 RICHARD BOYLE 69.00 X X 907210 0 47049 GREGORY VAN GUILDER 51.00 X 617270 0 74681 DANIEL FISHER 38.00 X 468092 0 69732 DAVID HAWN 57.00 X 570479 0 59180 HEIDI JOHNSON 13 X 405682 66081 HEATHER RENNER 41 X 242132 41740 EDWARD SPEAR 0 X 420940 57898 KATHLEEN KING 48 X 287799 47393 FRED CHAMBERS 0 X 194614 48327 MATTHEW MIKULSKI 37 X 248474 49863 GERALDINE GJESDAHL 38 X 199908 24490 HUGH MCSHERRY 2 X 210263 36737 STEVEN WELLVANG 0 X 432699 58887 JAMES MURRAY 0 X 46684 5122507 988381 682058 11 true true false BAKER TILLY VIRCHOW KRAUSE LLP 115 SOUTH 84TH ST STE 400 MILWAUKEE WI 53214 Accounting 463880 EMC 176 SOUTH ST HOPKINTON MA 01748 IT Consulting 439506 E CAPITAL ADVISORS 7700 FRANCE AVE SOUTH STE 370 MINNEAPOLIS MN 55435 Consulting 390912 ICE MILLER LLP ONE AMERICAN SQUARE STE 2900 INDIANAPOLIS IN 46282 Legal 360884 TRU STUDENT 2500 BROADWAY HELENA MT 59601 Loan Portfolio Servicing 340462 16 337911123 337911123 Student Loan Portfolio 900099 9079185 9079185 85941 85941 347076249 9079185 85941 53523229 53523229 3390723 238003 3152720 0 4379191 9433 4369758 0 499707 1067 498640 0 750637 1603 749034 0 320826 684 320142 0 102942 51723 51219 0 215889 42 215847 0 2922658 867304 2055354 0 31 1 30 0 462231 36374 425857 0 138350 2542 135808 0 1151085 16183 1134902 0 425787 26961 398826 0 21162 2027 19135 0 506992 506992 0 0 460609 416667 43942 0 147680 1871 145809 0 Loss on subsidiary 4576000 0 4576000 0 Loss on student loans held 110004 57948 52056 0 Usage on shared assets 408167 11398 396769 0 74513900 55772052 18741848 0 17082947 155154304 2501948 159546499 28457 221655 942926 1683945 768826 44159 12705 724667 124553171 19164031 20276281 112564790 108871276 166667 27132000 6222855 179596471 577254653 3726779 127794453 28450000 23139726 52617885 55316505 180412338 X 124279966 396842315 124279966 396842315 179596471 577254653 272562349 X false true X true false X X X false false false EDUCATIONAL CREDIT MGMT CORP 411778617 9 true true true 771744 1 771744 0 0 0 0 0 0 OTHER ADDL INFO: PART I, LINE 11.; AS THE PARENT COMPANY BUT ALSO A SUPPORTING ORGANIZATION, ECMC GROUP, INC.; WAS PREVIOUSLY REPORTED AS A TYPE I SUPPORTING ORGANIZATION. HOWEVER, IN; REVIEW OF THE NATURE OF THE RELATIONSHIP ECMC GROUP, INC. HAS WITH ITS; SUPPORTED ORGANIZATION, EDUCATIONAL CREDIT MANAGEMENT CORPORATION, WE HAVE UPDATED; THE SUPPORTING ORGANIZATION CLASSIFICATION TO TYPE II. PER THE INSTRUCTIONS FOR; SCHEDULE A (FORM 990 OR 990-EZ), ECMC GROUP, INC. CAN ANSWER "YES" TO THE FOLLOWING; QUESTION "DO THE SAME PERSONS, SUCH AS DIRECTORS, TRUSTEES, AND OFFICERS, SUPERVISE OR; CONTROL THE SUPPORTED ORGANIZATION(S) AND THE SUPPORTING ORGANIZATION?"; ---; ECMC GROUP, INC., THE SUPPORTING ORGANIZATION, RETAINS THE FOLLOWING AUTHORITY; OVER EDUCATIONAL CREDIT MANAGEMENT CORPORATION, THE SUPPORTED ORGANIZATION,; AND, THEREFORE, HAS CONTROL OVER EDUCATIONAL CREDIT MANAGEMENT CORPORATION:; 1. TO AUTHORIZE AMENDMENTS TO THE ARTICLES OF INCORPORATION AND BYLAWS.; 2. TO APPROVE THE STRATEGIC AND FINANCIAL PLANS.; 3. TO ELECT AND/OR APPROVE THE MEMBERS OF THE BOARD OF DIRECTORS.; 4. TO OVERSEE COORDINATION OF PROGRAMS AND SERVICES OFFERED.; 5. TO AUTHORIZE FORMATION, GOVERNANCE AND DISSOLUTION.; ---; RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 18592 9606 8986 750234 34553 715681 724667 Student loan receivable 108871276 F 108871276 Due to ECMC Foundation 50344399 Due to ECMC Holdings Corporation 1357237 Due to Educational Credit Management Corporation 805299 Due to ECMC Solutions 63244 Due to Federal Services Bureau 47706 52617885 X Pt X Line 2 The FIN 48 (ASC 470) disclosure in the ECMC Group, Inc. and SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS READS AS FOLLOWS: "ECMC GROUP, ECMC AND THE FOUNDATION ARE NONPROFIT 501(C)(3) CORPORATIONS AND ARE EXEMPT FROM FEDERAL AND STATE INCOME TAXES. --- HOLDINGS AND ITS SUBSIDIARIES ARE TAXABLE ENTITIES AND ACCOUNT FOR DEFERRED TAX ASSETS AND LIABILITIES UNDER THE LIABILITY METHOD. DEFERRED TAX LIABILITIES ARE RECOGNIZED FOR TEMPORARY DIFFERENCES THAT WILL RESULT IN TAXABLE AMOUNTS IN FUTURE YEARS. DEFERRED TAX ASSETS ARE RECOGNIZED FOR DEDUCTIBLE TEMPORARY DIFFERENCES AND TAX OPERATING LOSS AND TAX CREDIT CARRYFORWARDS. DEFERRED TAX ASSETS ARE REDUCED BY A VALUATION ALLOWANCE WHEN, IN THE OPINION OF MANAGEMENT, IT IS MORE LIKELY THAN NOT THAT SOME PORTION OR ALL OF THE DEFERRED TAX ASSETS WILL NOT BE REALIZED. --- WITH FEW EXCEPTIONS, GROUP IS NO LONGER SUBJECT TO U.S. FEDERAL, STATE OR LOCAL INCOME TAX EXAMINATIONS BY TAX A true ECMC FOUNDATION 1 IMATION PLACE BLDG 2 OAKDALE MN 55128 411990628 501(c)(3) 53496229 Gen Support EDUCATION GROWTH ADVISORY ONE LANDMARK SQUARE 21ST FLOOR STAMFORD CT 06901 800563613 LLC 15000 Education ARIZONA STATE UNIVERSITY FOUNDATION 1475 N SCOTTSDALE RD STE 200 SCOTTSDALE AZ 85257 866051042 501(c)(3) 10000 Sponsorship 2 1 Pt I Line 2 ECMC Group, Inc. is the sole member of ECMC Foundation and closely monitors the use of the cash grants through reports to management and the Board of Directors on a regular basis. --- The remainder of the grants and assistance to the other organizations listed in Part II are minimal in nature and generally are issued in support of student financial aid conferences and organizations and do not require monitoring. X X true true X X X X false true false false true false true false false RICHARD BOYLE 477959 422078 7173 32000 15049 954259 GREGORY VAN GUILDER 306665 308771 1834 53387 21294 691951 DANIEL FISHER 245266 220799 2027 43037 26695 537824 DAVID HAWN 305721 262983 1775 37940 21240 629659 HEIDI JOHNSON 200366 203781 1535 39487 26594 471763 HEATHER RENNER 152246 87752 2134 29107 12633 283872 EDWARD SPEAR 221959 194580 4401 41849 16049 478838 KATHLEEN KING 181138 103128 3533 32344 15049 335192 FRED CHAMBERS 135665 52290 6659 21782 26545 242941 MATTHEW MIKULSKI 149665 96915 1894 26568 23295 298337 GERALDINE GJESDAHL 149021 49513 1374 23895 595 224398 HUGH MCSHERRY 145281 57750 7232 15442 21295 247000 STEVEN WELLVANG 309721 114546 8432 35647 23240 491586 JAMES MURRAY 46684 46684 Pt I Line 1a Certain taxable benefits are grossed up to make the employee whole. This has been approved by the board of directors. --- ECMC Group, Inc.'s travel policy requires that the least costly class of airfare be utilized whenever possible. Due to a lack of flight availability and schedule restrictions, ECMC Group, Inc. did allow for the reimbursement of one first class seat for a board member in one instance in 2012 because it was the only option available. --- Pt I Line 4b ECMC Group, Inc. maintains a supplemental nonqualified retirement plan described in section 457(f) to attract and retain employees, typically in management positions. In 2012, two employees, David Hawn and Gregory Van Guilder, participated in the plan. No payments were made from the plan. --- Pt I Line 5b ECMC Group, Inc.'s annual officer incentive plan requires achievement of stated primary financial goals, which includes revenues, before any payment to any officer is made. --- Pt I Line 6b ECMC Group, Inc.'s annual officer incentive plan requires achievement of stated key performance metrics, which includes net earnings, before any payment to any officer is made. Pt I, Line 1 ECMC Group, Inc. is a nonprofit corporation that provides services in support of higher education finance. Our work spans several business lines, but at the core of our nonprofit activities is providing support for the administration of federal student loan programs as well as promoting financial literacy and college access, retention and success. ECMC Group, Inc. also funds the programs and initiatives of ECMC Foundation; ECMC Foundation helps low-income individuals as well as those who may be the first in their family to attend college. --- Pt III, Line 4d Continued from Part III, Line 4d. Support and services supplied to ECMC Group, Inc. related organizations to further tax exempt purposes. Expenses $27,000 including grants of $27,000. Revenue $0. --- Pt VI, Line 6 Each Director of the ECMC Group, Inc.'s Board of Directors is a member of ECMC Group, Inc. In 2012, there were eleven members of the Board of Directors and, therefore, eleven members of the corporation. Membership terminates upon the termination of such member's director status on the Board of Directors. There are no stockholders. --- Pt VI, Line 7a The members of ECMC Group, Inc. Board of Directors are nominated by the Governance & Compensation Committee of the Board and elected by the Board of Directors. The Governance & Compensation Committee consists of such independent members Form 990, Part III, Line 4d CONTINUED ON SCHEDULE O. 27000. 27000. 0. appointed to it by the ECMC Group, Inc. Board of Directors. --- Pt VI, Line 7b The governing body and the members are the same individuals. --- Pt VI, Line 11a All members of the Board of Directors and executive management are provided a copy of Form 990 to review and provide comments prior to filing. All members of the Board of Directors and executive management are provided with a copy of the final version of Form 990 before it has been filed. --- Pt VI, Line 12c Officers, Directors, and all employees are required to reaffirm on an annual basis their understanding of the company's Code of Ethics and Business Conduct. The affirmation specifically references that the individual will comply with the directives of the Code of Ethics and Business Conduct. Conflicts of Interest and disclosure of potential conflicts is included in the Code of Ethics and Business Conduct. Monitoring and enforcement of the policy is accomplished through the reaffirmation process. --- In cases where a potential conflict exists at the officer and key employee levels, the issue is disclosed to the CEO and Director of Corporate Compliance. For potential or real conflicts involving the CEO or a member of the Board of Directors, the disclosure is made to the Board Chairman. The Board member or CEO will be required to excuse themselves from deliberation and voting on matters which they may have a conflict of interest. --- Pt VI, Line 13 Whistleblower Policy - ECMC Group, Inc. has a Code of Ethics and Business Conduct policy that is affirmed annually by all ECMC Group, Inc. and affiliated companies' officers, directors, and employees. While there is not a specific whistleblower policy, there is a provision incorporated into the Code of Ethics and Business Conduct policy that binds all employees. The provision states that there can be no repercussions for good faith reporting of potential illegal practices or violations of corporate policies. ECMC Group, Inc. has established an anonymous whistleblower telephone hotline and website administered by an outside vendor. --- Pt VI, Line 15 The following describes the ECMC and ECMC Group, Inc. executive compensation methodology. --- The Governance & Compensation Committee of the ECMC Group, Inc. Board of Directors is wholly comprised of independent, outside directors. In 2012, the Committee retained executive compensation experts from Grant Thornton, a global compensation consulting organization, through Arnold & Porter LLP to identify appropriate CEO and senior executive compensation packages. Arnold & Porter LLP provided a written opinion on the reasonableness of this compensation. The market analysis performed by Grant Thornton for Arnold & Porter LLP includes salary and incentive data from an appropriate peer group under IRS regulations and includes both nonprofit and for profit entities. --- Pt VI, Line 17 States to file Form 990: New Mexico. --- Pt VI, Line 19 No documents are made available to the public. --- Pt VII-A James Murray, a former Director, had a consulting agreement in 2012. --- OAKDALE STUDENT LOAN FUNDING LLC 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 271914648 Holding FFELP Loans DE 554342 2774 ECMC GROUP INC PREMIERE CREDIT OF NORTH AMERICA LLC 2002 WELLESLEY BLVD 100 INDIANAPOLIS IN 46219 352085743 Accounts Receivable Management IN ECMC HOLDINGS CORP EDUCATIONAL CREDIT MGMT CORP 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 411778617 GUARANTOR MN 501(c)(3) Line 9 ECMC GROUP INC true ECMC FOUNDATION 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 411990628 Promote Education DE 501(c)(3) Line 11B II ECMC GROUP INC true OAKDALE INVESTMENT MANAGEMENT CORPORATION 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 461549752 Holding Investments DE ECMC GROUP INC C 1000 1.00000 ECMC HOLDINGS CORPORATION 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 411991992 Strategic Oversight DE ECMC GROUP INC C 53385308 43712270 1.00000 EDUCATIONAL CREDIT SERVICES CO 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 411992001 Private Loans DE NA C ECMC RECORDS & REC MGMT CORPORATION 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 411989959 Document Management DE NA C ECMC MANAGEMENT SERVICES CORPORATION 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 411989960 Management Services DE NA C ECMC TECHNOLOGY SERVICES CORPORATION 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 411989958 Technology Services DE NA C ECMC SOLUTIONS CORPORATION 1 IMATION PLACE BLDG 2 OAKDALE MN 551283422 271854584 Default Prevention DE NA C false true true false false false false false false false false false true true true true true false false ECMC FOUNDATION b 53496229 Allocation ECMC FOUNDATION m 749152 Allocation ECMC FOUNDATION p 123360 Allocation EDUCATIONAL CREDIT MANAGEMENT CORPORATION c 337911123 Allocation EDUCATIONAL CREDIT MANAGEMENT CORPORATION m 27036450 Allocation EDUCATIONAL CREDIT MANAGEMENT CORPORATION n 25159601 EDUCATIONAL CREDIT MANAGEMENT CORPORATION p 9797177 ECMC HOLDINGS CORPORATION m 2102128 ECMC HOLDINGS CORPORATION n 102179 ECMC HOLDINGS CORPORATION p 572203 ECMC SOLUTIONS CORPORATION m 3276719 ECMC SOLUTIONS CORPORATION n 1365839 ECMC SOLUTIONS CORPORATION p 751661