2013-05-09T18:14:58-05:00 2012-06-30 ERNST & YOUNG US LLP 401 CONGRESS AVE SUITE 1800 AUSTIN TX 78701 990 2011-07-01 203870176 Leon Higher Education Authority Inc % RICKY TURMAN CFO EVP LEON 2547530915 PO BOX 1308 WACO TX 76703 RICKY TURMAN 2013-05-09 5124789881 2011 2016-02-25 16:41:14Z RICKY TURMAN 2600 WASHINGTON AVENUE WACO TX 76710 735786 false X www.brazos.us.com X 2005 TX LEON HIGHER EDUCATION AUTHORITY, INC.'S MISSION IS TO MAKE EDUCATION A REALITY BY SUPPORTING PROGRAMS AND INITIATIVES TO FINANCE EDUCATIONAL OPPORTUNITIES. 8 8 0 0 0 0 0 0 735691 0 95 0 0 0 735786 0 0 0 0 0 0 0 0 0 0 968542 0 968542 0 -232756 0 165520257 0 172655618 0 -7135361 X Leon Higher Education Authority, Inc. is a secondary market of college student loans under the Federal Family Education Loan Program (FFELP). LEON's mission is to make education a reality by supporting programs and initiatives to finance educational opportunities. true true 968542 0 735691 LEON HIGHER EDUCATION AUTHORITY, INC. serviced over 16,500 loans totaling over $161 million. This included over $150 million under the Title IV Federal Family Education Loan Program (FFELP) of which included $57 million of consolidation loans. These loans were funded through temporary financings. 968542 true false false false false false false false false false false false false false false true true false false false false false false false false false false false false true false false false false false false false false false false false false false true true true false false true 0 0 0 false false false false false false false false false false X 8 8 true true false false false false false true true false false true true true true true true false false false X RICKY TURMAN CFO EVP 2547530915 2600 WASHINGTON AVENUE WACO TX 76710 X Mrs Jane Allen 1.0 X 0 814 0 Bob Chambers 1.0 X 0 0 0 Scott Felton 1.0 X 0 814 0 Wilton Lanning 1.0 X 0 861 0 Dr Terry Maness 1.0 X 0 703 0 Dr Dennis Michaelis 1.0 X 0 814 0 Clement Milam 1.0 X 0 0 0 Mrs Joyce Packard 1.0 X 0 0 0 Murray Watson 1.0 X 0 1183043 32770 David Horner 1.0 X 0 454978 40649 Ellis Treadway 1.0 X 0 338722 38101 Ricky Turman 1.0 X 0 493810 43883 Ray Rushing 1.0 X 0 0 0 James McInnis 1.0 X 0 101285 17820 Susan Davis 1.0 X 0 73656 14026 Tammy Harralson 1.0 X 0 202037 31284 Daniel Reyna 1.0 X 0 142909 17620 Kelli Villarrial 1.0 X 0 270736 30872 Thomas Litle 1.0 X 0 239578 28098 0 3504760 295123 0 false true false 0 0 Yield on student loan notes receivable 522294 735691 735691 735691 95 95 0 0 0 0 0 0 0 735786 735691 95 0 0 0 0 0 0 0 0 0 0 0 1298 1298 0 0 0 0 0 0 0 0 0 0 0 0 0 552867 552867 0 0 0 DEPT OF EDUCATION FEES 207329 207329 SERVICING EXPENSE 137417 137417 OPERATING EXPENSE 42503 42503 BAD DEBT EXPENSE 17353 17353 9775 9775 968542 968542 0 0 0 0 0 5813837 0 0 0 3182247 0 0 0 0 0 156524173 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 165520257 0 226618 0 0 0 0 0 0 0 0 0 0 0 172429000 0 0 0 0 0 172655618 X 0 0 0 0 0 -7135361 0 -7135361 0 165520257 X -232756 -6902605 X false true true X true true X 0 0 0 0 735691 735691 0 0 0 0 735691 735691 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 735691 0 0 0 0 95 95 0 0 0 0 95 95 0 0 0 0 735786 735786 0.99987 0.00000 0.00013 0.00000 X 0 0 735786 968542 -232756 -6902605 -6902605 -7135361 3647472 3119015 3119015 528457 207329 207329 735786 5624175 4862962 4862962 761213 207329 207329 968542 Supplemental Information Reconciliation of Change in Net Assets Schedule D, Part XI, Line 8 Transfer to Affiliate - $(3,579,862) Valuation Allowance - $(3,322,743) Total - $(6,902,605) Reconciliation of Revenue per Audited Financial Statements Schedule D, Part XII, Line 2D Revenue Reclassed from other entities for audit - $3,119,015 Schedule D, Part XII, Line 4B Dept of Education Fees - $ 207,329 Reconciliation of Expenses per Audited Financial Statements Schedule D, Part XIII, Line 2D Expenses Reclassed from other entities for audit - $1,540,219 Valuation Allowance on SLNR - $3,322,743 Total - $4,862,962 Schedule D, Part XIII, Line 4B Dept of Education Fees - $207,329 Fin 48 Footnote THE COMPANY FOLLOWS THE ACCOUNTING STANDARD RELATED TO THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN THE COMPANY'S FINANCIAL STATEMENTS. THE STANDARD PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE COMPANY CURRENTLY DOES NOT HAVE ANY POSITIONS RESERVED. false false false false false false false false false Murray Watson 0 554135 0 561918 0 66990 0 24500 0 8270 0 1215813 0 0 David Horner 0 242206 0 179124 0 33648 0 24500 0 16149 0 495627 0 0 Ellis Treadway 0 174439 0 134399 0 29884 0 24500 0 13601 0 376823 0 0 Ricky Turman 0 276657 0 200653 0 16500 0 24500 0 19383 0 537693 0 0 Tammy Harralson 0 119209 0 66328 0 16500 0 20753 0 10531 0 233321 0 0 Daniel Reyna 0 89496 0 44919 0 8494 0 14157 0 3463 0 160529 0 0 Kelli Villarrial 0 168376 0 86036 0 16324 0 24500 0 6372 0 301608 0 0 Thomas Litle 0 199793 0 23285 0 16500 0 23898 0 4200 0 267676 0 0 SUPPLEMENTAL INFORMATION FORM 990, PART III, QUESTIONS 2 & 3 THE ORGANIZATION HAS BEEN INACTIVE FROM ITS 2005 INCEPTION THROUGH 2010. DURING 2011 THE ORGANIZATION COMMENCED THE PROGRAM SERVICES NOTED IN PART III LINE 4. FORM 990, PART VI, QUESTION 2 RAY RUSHING AND MURRAY WATSON JR. HAVE A BUSINESS RELATIONSHIP. Form 990, Part VI, Question 3 Description of Management Arrangement Leon Higher Education Authority has a contract with Brazos Higher Education Service Corporation to perform management and administration services on Leon Higher Education Authority's behalf. This includes master servicing administration for the outstanding student loans held by Leon Higher Education Authority. The services include, but are not limited to: accounting, reporting, servicing, originating, marketing, treasury, and compliance monitoring of the student loans held by Leon Higher Education Authority. Form 990, Part VI, Question 11b Describe the Process used by Management &/or Governing Body to Review 990 The 990 tax return is provided to senior management for their review. After their review, the return is posted on a secure website for review by the board of directors. The Board is notified of the posting and asked to provide comments or questions. Form 990, Part VI, Question 12c Description of Process to Monitor Transactions for Conflicts of Interest The internal audit department prepares and distributes a conflict of interest questionnaire to all board members and employees annually. The internal audit department reviews the questionnaires and compiles a list of potential conflicts for review by the audit committee, senior management, and the board of directors. Potential conflicts are assessed and resolved if determined to be at risk. Form 990, Part VI, Question 15a & 15b Compensation Determination Process The compensation of the CEO (or Executive Director, as applicable), Officers, and Key Employees of Leon Higher Education Authority is paid by a related organization, and is determined under the policies of the respective related organization. Form 990, Part VI, Question 19 Avail of Gov Docs, Conflict of Interest Policy, & Fin Stmts to Gen Public Governing documents, conflict of interest policy, and financial statements are available to the public upon request. Form 990, Part XI, Line 5 Other Changes in Net Assets or Fund Balances Transfer to Affiliate - $ (3,579,862) Valuation Allowance - $ (3,322,743) TOTAL - $(6,902,605) ADDITIONAL INFORMATION RECENT LEGISLATIVE DEVELOPMENTS On March 30, 2010, President Obama signed into law the Reconciliation Act of 2010. Effective July 1, 2010, this law prohibits new loan originations under the FFELP and requires that all new federal loan originations be made through the Direct Loan Program. In the event that a first disbursement has been made on a FFELP loan prior to July 1, 2010, subsequent disbursements of that loan may still be made under the FFELP. Additionally, the new law does not alter or affect the terms and conditions of the Companys existing FFELP loans. HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Mrs. Jane Allen TITLE:Director HOURS:2 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Bob Chambers TITLE:Chairman HOURS:6 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Scott Felton TITLE:Director HOURS:1 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Wilton Lanning TITLE:Vice Chairman HOURS:6 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Dr. Terry Maness TITLE:Director HOURS:2 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Dr. Dennis Michaelis TITLE:Director HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Mrs. Joyce Packard TITLE:Director HOURS:8 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Murray Watson TITLE:President HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:David Horner TITLE:First Vice President HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Ellis Treadway TITLE:Second Vice President HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Ricky Turman TITLE:EVP / CFO HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Ray Rushing TITLE:Secretary HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:James McInnis TITLE:Treasurer HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Susan Davis TITLE:Assistant Secretary HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Tammy Harralson TITLE:Controller/VP HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Daniel Reyna TITLE:Internal Audit Director HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Kelli Villarrial TITLE:Associate General Counsel HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Thomas Litle TITLE:VP Legal Affairs/Inden Ovrsght HOURS:39 ACAPITA EDUCATION FINANCE CORPORATION PO BOX 1308 WACO TX 76703 742542435 FUND STD LNS TX 501(C)(3) 9 NA true BRAZOS EDUCATION LOAN AUTHORITY INC 2600 WASHINGTON AVENUE WACO TX 76710 203868073 FUND STD LNS TX 501(c)(3) 9 NA true PALUXY HIGHER EDUCATION AUTHORITY INC 2600 WASHINGTON AVENUE WACO TX 76710 203868139 FUND STD LNS TX 501(c)(3) 9 NA true ROZELL HIGHER EDUCATION AUTHORITY INC 2600 WASHINGTON AVENUE WACO TX 76710 203867891 FUND STD LNS TX 501(c)(3) 9 NA true SABINE HIGHER EDUCATION AUTHORITY INC 2600 WASHINGTON AVENUE WACO TX 76710 203868185 FUND STD LNS TX 501(c)(3) 9 NA true TEXOMA HIGHER EDUCATION AUTHORITY INC 2600 WASHINGTON AVENUE WACO TX 76710 203868230 FUND STD LNS TX 501(c)(3) 9 NA true BRAZOS EDUCATION FOUNDATION INC 2612 WASHINGTON AVENUE WACO TX 76710 264562436 GRANT MAKING TX 501(c)(3) 7 NA true ACADEMIC FINANCE CORPORATION PO BOX 1308 WACO TX 76703 742540458 FUND STD LNS TX 501(c)(3) 9 NA true EDUCATION SERVICING MGMT CORPORATION 2600 WASHINGTON AVENUE WACO TX 76710 203870046 FUND STD LNS TX 501(c)(3) 9 NA true BRAZOS EDUCATION FINANCE CORPORATION IN 2600 WASHINGTON AVENUE WACO TX 76710 742539632 FUND STD LNS TX 501(c)(3) 11 TYPE 1 NA true BRAZOS HIGHER EDUCATION AUTHORITY INC PO BOX 1308 WACO TX 76703 742099402 FUND STD LNS TX 501(c)(3) 11 TYPE 1 NA true ATLANTIC STUDENT FINANCE CORPORATION 2600 WASHINGTON AVENUE WACO TX 76710 205412189 FUND STD LNS FL 501(c)(3) 7 NA true BOSQUE HIGHER EDUCATION AUTHORITY INC PO BOX 1308 WACO TX 76703 742534099 FUND STD LNS TX 501(c)(3) 9 NA true BRAZOS STUDENT FINANCE CORPORATION PO BOX 1308 WACO TX 76703 742356109 FUND STD LNS TX 501(c)(3) 9 NA true EDINVEST COMPANY 2600 WASHINGTON AVENUE WACO TX 76710 742537669 FUND STD LNS TX 501(c)(3) 9 NA true EDUCATIONAL FUNDING SERVICES INC PO BOX 1308 WACO TX 76703 330947525 FUND STD LNS CA 501(c)(3) 9 NA true BRAZOS HIGHER EDUCATION SERVICE CORP PO BOX 1308 WACO TX 76703 742129255 FUND STD LNS TX 501(c)(3) 9 NA true TRINITY HIGHER EDUCATION AUTHORITY INC 2600 WASHINGTON AVENUE WACO TX 76710 742534486 FUND STD LNS TX 501(c)(3) 9 NA true ANGELINA HIGHER EDUCATION AUTHORITY 2600 WASHINGTON AVENUE WACO TX 76710 200115078 FUND STD LNS TX 501(c)(3) 9 NA true CONCHO HIGHER EDUCATION AUTHORITY INC 2600 WASHINGTON AVENUE WACO TX 76710 203870081 FUND STD LNS TX 501(c)(3) 9 NA true FRIO HIGHER EDUCATION AUTHORITY INC 2600 WASHINGTON AVENUE WACO TX 76710 203870120 FUND STD LNS TX 501(c)(3) 9 NA true LAVACA HIGHER EDUCATION AUTHORITY INC 2600 WASHINGTON AVENUE WACO TX 76710 203870153 FUND STD LNS TX 501(c)(3) 9 NA true FEDERATED STUDENT FINANCE CORPORATION 2600 WASHINGTON AVENUE WACO TX 76710 742536239 FUND STD LNS TX 501(c)(3) 9 NA true LLANO HIGHER EDUCATION AUTHORITY INC 2600 WASHINGTON AVENUE WACO TX 76710 203870219 FUND STD LNS TX 501(c)(3) 9 NA true false true false false false false true false false false false true false false false false false false BOSQUE HIGHER EDUCATION AUTHORITY INC B 1795383 FMV EDINVEST COMPANY B 1288467 FMV EDUCATIONAL FUNDING SERVICES INC B 496012 FMV BOSQUE HIGHER EDUCATION AUTHORITY INC G 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