2013-02-14T07:20:32-06:00 2012-06-30 560517823 KOONCE WOOTEN & HAYWOOD LLP P O BOX 17806 RALEIGH NC 276197806 990 2011-07-01 566046937 COLLEGE FOUNDATION INC COLL 9198342893 PO BOX 41966 RALEIGH NC 276291966 WENDY H MCALISTER 9198342893 2013-02-13 1 CHRISTOPHER DUFFUS P00171587 9197829265 2011 2016-03-07 17:11:31Z WENDY H MCALISTER PO BOX 41966 RALEIGH NC 276291966 28600355 0 X WWW.CFNC.ORG X 1955 NC OUR WORK TODAY MAKES A BETTER TOMORROW BY EMPOWERING PEOPLE TO ACHIEVE THEIR ACADEMIC GOALS. AT JUNE 30, THE FOUNDATION WAS SERVICING A LOAN PORTFOLIO VALUED AT OVER $3,027 MILLON AND ADMINISTERING THE NC529 PROGRAM WITH A PORTFOLIO VALUED AT OVER $972 MILLION. DURING THE TAX YEAR, STUDENTS USED THE CFNC.ORG WEBSITE TO SUBMIT OVER 482,000 APPLICATIONS TO NC COLLEGES. 9 9 232 0 0 0 8250 10 30233557 28155042 9899 6566 154894 199422 30406600 28361040 8250 0 0 0 14958774 15320054 0 0 0 14824307 14051625 29791331 29371679 615269 -1010639 53394201 50322123 18116028 14452256 35278173 35869867 X OUR WORK TODAY MAKES A BETTER TOMORROW BY EMPOWERING PEOPLE TO ACHIEVE THEIR ACADEMIC GOALS. WE PROVIDE FINANCIAL ASSISTANCE FOR HIGHER EDUCATION TO BENEFIT SOCIETY AND STRENGTHEN THE ECONOMY OF THE STATE OF NORTH CAROLINA. 1 0 15198024 16042087 EDUCATIONAL LOAN PROGRAMS. AS OF JUNE 30, 2012, THE FOUNDATION WAS SERVICING 626,998 LOANS TO 200,824 BORROWERS WITH AN OUTSTANDING PRINCIPAL BALANCE OF $3,027,721,753. THE FOUNDATION SERVICES LOANS FOR HIGHER EDUCATION FOR NORTH CAROLINIANS AT INSTITUTIONS OF HIGHER EDUCATION AND FOR STUDENTS ATTENDING INSTITUTIONS OF HIGHER EDUCATION IN NORTH CAROLINA. THE FOUNDATION SERVICES LOANS MADE UNDER PART B, TITLE IV OF THE HIGHER EDUCATION ACT (HEA) OF 1965, AS AMENDED, LOANS TO UNC CHAPEL HILL STUDENTS THAT HELPED TO FINANCE A COMPUTER PURCHASE, "EXTRA" EDUCATION LOANS TO BORROWERS ATTENDING SCHOOLS IN NC FOR QUALIFIED HIGHER EDUCATION EXPENSES NOT COVERED UNDER NC'S FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP), AND "EXTRA MBA" LOANS TO BORROWERS FROM THE KENAN-FLAGLER BUSINESS SCHOOL MBA OR MAC PROGRAMS AT UNC CHAPEL HILL WHO WERE UNABLE TO SECURE LOANS UNDER NC'S FFELP OR THE EXTRA EDUCATION LOAN PROGRAM. THE FOUNDATION WAS ALSO PREPARING TO BEGIN SERVICING LOANS OWNED BY THE U.S. DEPARTMENT OF EDUCATION, WITH A TENTATIVE START DATE IN FEBRUARY 2013. 5609239 5792777 INFORMATION DISSEMINATION INITIATIVE. THE FOUNDATION ADMINISTERS THE COLLEGE FOUNDATION OF NORTH CAROLINA (CFNC) PROGRAM TO COORDINATE INFORMATION DISSEMINATION EFFORTS TO INCREASE ACCESS TO HIGHER EDUCATION IN NORTH CAROLINA AND PROVIDE INFORMATION ON PLANNING, APPLYING, AND PAYING FOR COLLEGE THROUGH A COMPREHENSIVE WEBSITE (WWW.CFNC.ORG), CALL CENTER AND PROGRAM INFORMATION SERVICES TO SCHOOLS, COLLEGES AND BUSINESSES. THE CFNC CALL CENTER RECEIVED 127,015 CALLS IN THE YEAR ENDED JUNE 30, 2012. THE PROGRAM PROVIDED 2,637 SPECIFIC PROGRAMS TO COLLEGES, K-12 SCHOOLS AND BUSINESSES, 88 NEWS RELEASES AND PUBLIC SERVICE ANNOUNCEMENTS, 1 COMMUNIQUE AND 1 OTHER NEWSLETTER IN THE YEAR ENDED JUNE 30, 2012. 3658119 3407307 NC 529 COLLEGE SAVINGS PROGRAM. THE FOUNDATION ACTS AS AGENT FOR THE NC STATE EDUCATION ASSISTANCE AUTHORITY IN THE ADMINISTRATION OF THE STATE'S COLLEGE SAVINGS AND INVESTMENT PROGRAM WHICH IS DESIGNED TO MEET THE REQUIREMENTS OF A "QUALIFIED" TUITION PROGRAM UNDER SECTION 529 OF THE INTERNAL REVENUE CODE. NORTH CAROLINA'S NATIONAL COLLEGE SAVINGS PROGRAM (NCSP) HAD 105,290 ACCOUNTS FOR 98,252 BENEFICIARIES AND A VALUE OF $972,144,303 AT JUNE 30, 2012. THE NCSP RECEIVED SAVINGS PLAN CONTRIBUTIONS OF $196,616,526 AND DISTRIBUTED WITHDRAWALS IN THE AMOUNT OF $57,484,166 FOR THE YEAR ENDED JUNE 30, 2012. 2845284 2912871 SCHOOL SERVICES, NC COMMUNITY COLLEGE GRANT PROGRAM, UNC NEED-BASED GRANT PROGRAM, EDUCATION LOTTERY SCHOLARSHIP PROGRAM, COLLEGE FUNDS INSTALLMENT PAYMENT PLAN, VICTOR E. BELL, JR. SCHOLARSHIP PROGRAM, MANAGEMENT AND COMPUTER SERVICES, AND MISCELLANEOUS SCHOLARSHIP PROGRAMS. 2845284 2912871 27310666 1 0 0 0 0 0 0 0 1 1 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 53296 0 1 232 1 0 0 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NC X X WENDY H MCALISTER 9198342893 2917 HIGHWOODS BLVD RALEIGH NC 27604 CHARLES J STEWART 1.00 X 0 0 0 ROBERT F LOWE 1.00 X 0 0 0 STEPHEN G ASHWORTH 1.00 X 0 0 0 JAMES O FRYE 1.00 X 0 0 0 ROBERT E HAMMERSLEY JR 1.00 X 0 0 0 HILDA PINNIX-RAGLAND 1.00 X 0 0 0 ME VALENTINE JR 1.00 X 0 0 0 A HOPE WILLIAMS 1.00 X 0 0 0 QUANTELLA WILLIAMS 1.00 X 0 0 0 JAMES I AVETT III 47.00 X 196811 0 27269 WENDY H MCALISTER 47.00 X 167792 0 18227 CLIFTON E DILLARD 40.00 X 98979 0 13338 SHERA J HUBE 44.00 X 138603 0 19920 PATRICK J KAISER 51.00 X 77167 0 5369 KARL D VASS 44.00 X 108027 0 18627 RICHARD H FERNEYHOUGH 42.00 X 116186 0 12983 DAWN S HARRIS 44.00 X 109310 0 18980 TOM E AUGUSTINE 41.00 X 101833 0 18382 1114708 0 153095 7 0 1 0 KOONCE WOOTEN & HAYWOOD LLP 4060 BARRETT DRIVE RALEIGH NC 27609 AUDITING 164785 EASY BLUE SOLUTIONS LLC 7324 BARHAM HOLLOW WAKE FOREST NC 27587 COMPUTER PROGRAMMING 161000 ATBS CONSULTING 537 RAINBOW ROAD ADVANCE NC 27006 IT CONSULTING 145389 PRICEWATERHOUSECOOPERS LLP 1800 TYSONS BLVD MCLEAN VA 22102 AUDITING 142184 4 10 10 EDUCATIONAL LOAN PROGR 611710 16042087 16042087 INFORMATION DISSEMINAT 611710 5792777 5792777 NC529 COLLEGE SAVINGS 611710 3407307 3407307 2912871 2912871 28155042 6566 6566 438737 239315 199422 199422 199422 28361040 28155042 0 205988 928789 863933 64856 10443989 9710069 733920 352865 328068 24797 2752947 2559493 193454 841464 782333 59131 7814 6450 1364 187180 88120 99060 1085244 1036987 48257 2796686 2796686 2246980 2191840 55140 3549268 3042731 506537 499129 465011 34118 150104 139535 10569 9923 9923 2521493 2344303 177190 105192 98153 7039 COMPUTERIZED SERVICES 739591 699701 39890 STAFF TRAINING & DEVELO 56672 53524 3148 MM SUBSIDY COSTS 32261 32261 PROF ORGANIZATION MEMBE 27373 25449 1924 36715 36096 619 29371679 27310666 2061013 0 2393 485541 24196198 19916645 6541671 8051649 2055 1980281 1814246 47670051 29627069 19521679 18042982 925906 1794406 226073 214599 53394201 50322123 2246686 3315721 1936563 1137718 6373 12795061 11130162 18116028 14452256 X 34692998 35281166 36997 36997 548178 551704 35278173 35869867 53394201 50322123 X -1010639 1602333 X 0 1 1 X 1 1 X X X 0 0 0 STATE OF NC 566172047 6 0 1 1 0 1 0 SCHEDULE A, PART IV, SUPPLEMENTAL INFORMATION: PART 1, LINE 11H, COLUMN (IV): THE FOUNDATION HAS A HISTORIC AND CONTINUING RELATIONSHIP WITH THE STATE OF NORTH CAROLINA AND A SUBSTANTIAL IDENTITY OF INTERESTS EXISTS BETWEEN THE ORGANIZATIONS. PART 1, LINE 11H, COLUMN (VII): THE FOUNDATION SERVICES THE LOANS THAT WERE ORIGINATED UNDER NORTH CAROLINA'S FEDERAL FAMILY EDUCATION LOAN PROGRAM AND ADMINISTERS VARIOUS PROGRAMS FOR THE NORTH CAROLINA STATE EDUCATION ASSISTANCE AUTHORITY, A POLITICAL SUBDIVISION OF THE STATE OF NORTH CAROLINA. 1 6990893 1261784874 1260194852 8580915 1 3698109 10 25333 15452 3708000 3679457 24187 5535 3698109 3669596 16660 6799 3679457 3609919 65480 5803 3669596 1.00000 0 0 961308 1302882 2264190 3862067 12429317 4282901 12008483 18159436 14935227 3224209 10955041 10408941 546100 18042982 CONTINGENCY FOR UNINSURED LOANS 6100000 ACCRUED POSTRETIREMENT BENEFIT COST 4848052 DEFERRED COMPENSATION PAYABLE 146819 PAYABLE TO RELATED ORGANIZATION 35291 11130162 28361040 29371679 -1010639 1602333 1602333 591694 28361040 0 28361040 0 28361040 29371679 0 29371679 0 29371679 PART IV, LINE 1B: THE FOUNDATION SERVES AS TRUSTEE OR AGENT FOR THE NC STATE EDUCATION ASSISTANCE AUTHORITY LOAN FUND, BANKS PARTICIPATING IN THE ASSIGNED LOAN FUND, AND PARTICIPANTS IN THE SPECIAL LOAN FUND. AS LOAN PROCEEDS INCLUDING PRINCIPAL AND INTEREST PAYMENTS ARE COLLECTED FROM BORROWERS AND OTHER PAYERS, THE FUNDS ARE PROMPTLY REMITTED TO THE APPLICABLE FUNDING SOURCE. THE FOUNDATION SERVES AS AGENT FOR THE NC STATE EDUCATION ASSISTANCE AUTHORITY IN THE ADMINISTRATION OF VARIOUS GRANT AND SCHOLARSHIP PROGRAMS. FUNDS PROVIDED BY THE AUTHORITY ARE DISBURSED TO THE COLLEGES AND UNIVERSITIES PARTICIPATING IN THE PROGRAMS FOR AWARD TO ELIGIBLE STUDENTS. THE FOUNDATION ALSO SERVES IN A SIMILAR CAPACITY FOR THE NC COMMUNITY COLLEGE SYSTEM IN ADMINISTERING THE NC COMMUNITY COLLEGE GRANT PROGRAM. AS AGENT FOR THE NC STATE EDUCATION ASSISTANCE AUTHORITY IN THE ADMINSTRATION OF THE NC COLLEGE SAVINGS AND INVESTMENT PROGRAM, THE FOUNDATION RECEIVES CONTRIBUTIONS FROM PARTICIPANTS AND PASSES THE FUNDS TO THE APPROPRIATE INVESTMENT FUND MANAGER. FUNDS ARE ALSO OBTAINED BACK FROM THE INVESTMENT FUND MANAGERS IN ORDER TO DISTRIBUTE THEM AS DIRECTED BY PARTICIPANTS. PART IV, LINE 2B: THE FOUNDATION OPERATES THE COLLEGE FUNDS INSTALLMENT PAYMENT PLAN. STUDENTS ENROLLED IN NC COLLEGES AND UNIVERSITIES THAT PARTICIPATE IN THE PLAN MAKE INTEREST-FREE MONTLY PAYMENTS THAT THE FOUNDATION, ACTING AS AGENT, COLLECTS AND FORWARDS TO THE APPROPRIATE SCHOOL. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: ENDOWMENT FUNDS ARE FOR USE AS STUDENT LOANS OR SCHOLARSHIPS. PART XI, LINE 8 - OTHER ADJUSTMENTS: PENSION-RELATED CHANGES OTHER THAN NET PERIODIC POST RETIREMENT BENEFITS 1,602,333. COSTS AS CALCULATED CONSISTENT WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. X 0 1 X X X 0 0 0 0 0 0 0 0 0 JAMES I AVETT III 195227 0 0 0 1584 0 15156 0 12438 0 224405 0 0 0 WENDY H MCALISTER 167432 0 0 0 360 0 10560 0 7992 0 186344 0 0 0 SHERA J HUBE 137019 0 0 0 1584 0 11253 0 8992 0 158848 0 0 0 PART I, LINE 1A THE FOUNDATION REIMBURSED PATRICK KAISER FOR CERTAIN TAXABLE VISIT AND MOVING EXPENSES RELATED TO HIS BEING HIRED AS VP OF LOAN OPERATIONS AND TECHNOLOGY SERVICES. THESE EXPENSES WERE GROSSED UP AND INCLUDED IN TAXABLE COMPENSATION ON HIS 2011 W2. PART I, LINE 1B SENIOR VP AND PRESIDENT REVIEWED AND APPROVED SUPPORTING DOCUMENTATION FOR EXPENSES TO BE REIMBURSED AND CALCULATION OF GROSS UP SO THAT PATRICK KAISER'S NET OUT-OF-POCKET EXPENSE RELATED TO HIS VISIT AND MOVING EXPENSES WOULD BE ZERO. NEW PROGRAM SERVICES FORM 990, PART III, LINE 2 THE FOUNDATION BEGAN WORK IN THE SPRING OF 2012 ON A PILOT PROGRAM OFFERING VERIFICATION AND C-CODE RESOLUTION SERVICES TO ASSIST THE FINANCIAL AID OFFICES AT FIVE NC COMMUNITY COLLEGES. A LIMITED NUMBER OF SERVICES WERE PERFORMED FOR FOUR OF THESE SCHOOLS DURING THE YEAR ENDED JUNE 30, 2012. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS COMPLETED BY THE FINANCIAL SERVICES MANAGER AND IS THEN REVIEWED BY THE VICE PRESIDENT OF FINANCIAL SERVICES AND GENERAL COUNSEL PRIOR TO BEING SUBMITTED TO THE CEO FOR HER REVIEW. COPIES OF THE APPROVED FORM ARE THEN SENT TO ALL MEMBERS OF THE BOARD OF TRUSTEES PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE FOUNDATION REQUIRES OFFICERS AND TRUSTEES TO ANNUALLY COMPLETE A "CERTIFICATION OF COMPLIANCE WITH THE CODE OF ETHICS AND CONFLICT OF INTEREST POLICY" FORM AND MONITORS FOR THE TIMELY COMPLETION OF THE CERTIFICATION BY ALL OFFICERS AND TRUSTEES. FORM 990, PART VI, SECTION B, LINE 15 ALL JOBS IN THE FOUNDATION, INCLUDING THOSE OF THE CEO AND OTHER EXECUTIVES, ARE ASSIGNED JOB GRADES BASED ON LEVEL OF RESPONSIBILITY AND SIGNIFICANCE OF DUTIES PERFORMED. JOB GRADES ARE BENCHMARKED BY EVALUATING JOBS WITH SIMILAR JOB FUNCTIONS IN ORGANIZATIONS LOCATED PRINCIPALLY IN CENTRAL AND EASTERN NORTH CAROLINA. ANNUALLY SALARY RANGES FOR EACH JOB GRADE ARE COMPARED AGAINST THOSE PROVIDED BY PEERS IN THIS GEOGRAPHIC AREA. THIS IS ACCOMPLISHED VIA SURVEYS PROVIDED BY CAPITAL ASSOCIATED INDUSTRIES AND OTHER HUMAN RESOURCE FIRMS. THE COMPENSATION FOR THE OFFICERS AS WELL AS THE REST OF THE STAFF IS DETERMINED BY THOSE SALARY REVIEWS, INDIVIDUAL JOB PERFORMANCE, ECONOMIC CONDITIONS, AND APPROVAL BY THE BOARD OF TRUSTEES. PERIODICALLY AN OUTSIDE CONSULTING FIRM IS HIRED TO PROVIDE AN INDEPENDENT REVIEW OF JOB GRADES AND SALARY RANGES. FORM 990, PART VI, SECTION C, LINE 19 THE FOUNDATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC BY PROVIDING COPIES OR ALLOWING FOR INSPECTION UPON REQUEST. CORPORATE FILINGS MAY BE VIEWED ON THE WEBSITE OF THE NC SECRETARY OF STATE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: PENSION-RELATED CHANGES OTHER THAN NET PERIODIC POST RETIREMENT BENEFITS 1,602,333. COSTS AS CALCULATED CONSISTENT WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. TOTAL TO FORM 990, PART XI, LINE 5: 1,602,333. STATE OF NORTH CAROLINA (NC STATE EDUCATION ASSISTANCE AUTH) PO BOX 14103 RALEIGH NC 27709 566172047 PROMOTING ACCESS TO HIGHER EDUCATION NC N/A 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 NORTH CAROLINA STATE EDUCATION ASSISTANCE AUTHORITY K 27255189 SERVICE FEE REVENUE NORTH CAROLINA STATE EDUCATION ASSISTANCE AUTHORITY P 10908974 CASH REIMB RECD FOR AR EXPS NORTH CAROLINA STATE EDUCATION ASSISTANCE AUTHORITY Q 216653 CASH TRANSFERRED