2013-09-25T10:43:02-05:00 2012-12-31 640414329 HADDOX REID BURKES & CALHOUN PLLC 188 EAST CAPITOL STREET SUITE 500 JACKSON MS 39201 990 2012-01-01 640642776 MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION MISS 6013215555 PO BOX 5008 JACKSON MS 392965008 SID J SIMS 6013215555 2013-09-23 1 PAUL W CALHOUN CPA P00846500 6019482924 2012 2016-02-24 21:20:13Z SID J SIMS 2600 LAKELAND TERRACE JACKSON MS 39216 64613409 0 X WWW.ESFWEB.COM/MHEAC.HTML X 1980 MS SECONDARY MARKET FOR STUDENT LOANS, APPROXIMATELY 32,839 CLIENTS WERE SERVED IN 2012. 6 6 0 0 0 0 4409550 3676726 13039563 25986847 11479356 239003 0 34710833 28928469 64613409 0 0 0 0 0 0 0 0 0 20010441 32064958 20010441 32064958 8918028 32548451 1114008439 650088488 975297619 478829217 138710820 171259271 X THE CORPORATION WAS ORGANIZED IN JANUARY, 1980, FOR THE EXCLUSIVE PURPOSE OF ACQUIRING STUDENT LOANS INCURRED UNDER THE HIGHER EDUCATION ACT IN ACCORDANCE WITH SECTION 103(E) OF THE INTERNAL REVENUE CODE OF 1954 (SUBSEQUENTLY RECODIFIED AS SUBSECTION 150(D) OF THE INTERNAL REVENUE CODE OF 1986.) APPROXIMATELY 32,839 CLIENTS WERE SERVED IN 2012, NO PUBLICATIONS WERE ISSUED, AND NO GRANTS OR ALLOCATIONS TO OTHERS WERE MADE. NO ACHIEVEMENTS WERE MADE THAT WERE NOT MEASURABLE. 0 0 29419658 60697680 ACQUISITION AND SERVICING OF ELIGIBLE STUDENT LOANS INCURRED UNDER THE HIGHER EDUCATION ACT OF 1965 AS AMENDED. 29419658 1 1 0 1 0 0 0 0 0 0 0 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 325 0 0 0 0 0 0 0 0 0 0 0 0 X 6 6 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 0 0 0 X SID J SIMS 6013215555 2600 LAKELAND TERRACE JACKSON MS 39216 WILLIAM M JONES 1.00 X 0 0 0 RONNIE G SMITH 1.00 X 0 0 0 JACK L WOODWARD 1.00 X 0 0 0 W STAN PRATT 1.00 X X 0 0 0 DR JAYNE B SARGENT 1.00 X X 0 0 0 J MURRAY UNDERWOOD 1.00 X X 0 0 0 WILLIAM F ALVIS 1.00 X 0 142945 19052 SID J SIMS 1.00 X 0 295051 37563 0 437996 56615 0 0 1 0 EDUCATION SERVICES FOUNDATION 2600 LAKELAND TERRACE JACKSON MS 39216 MANAGEMENT FEES 7640178 US DEPARTMENT OF EDUCATION PO BOX 4134 GREENVILLE TX 754034134 REBATE FEES 5342911 AVANT STRATEGIC PARTNERS 10010 SAN PEDRO SUITE 520 SAN ANTONIO TX 78216 EXCESS INT/REBATE CALCULATION FEES 169700 3 3676726 3676726 STUDENT LOAN INTEREST 900099 25608630 25608630 LATE FEES 900099 378217 378217 25986847 239003 239003 GAINS ON BOND REPURCHASES 900099 34710833 34710833 34710833 64613409 60697680 0 239003 7460534 7460534 3976353 3976353 ADMINISTRATION AND LOAN 7800524 5155224 2645300 SPECIAL ALLOWANCE 6084010 6084010 CONSOLIDATION REBATE 5342910 5342910 EXCESS INTEREST 575252 575252 825375 825375 32064958 29419658 2645300 0 489245 478085 131315168 58652933 907712215 534199060 54269140 45558992 20222671 11199418 1114008439 650088488 1362964 1304951 962250000 470175000 11684655 7349266 975297619 478829217 X 138710820 171259271 138710820 171259271 1114008439 650088488 32548451 0 X X 0 1 X 1 0 X 9005789 10549368 6932904 5315680 3676726 35480467 57663543 45191099 38796276 34033889 25986847 201671654 66669332 55740467 45729180 39349569 29663573 237152121 0 0 0 237152121 14096289 2718180 1295173 525754 239003 18874399 14096289 2718180 1295173 525754 239003 18874399 80765621 58458647 47024353 39875323 29902576 256026520 0.92630 0.88090 0.07370 0.11910 X SCHEDULE A, PART IV, SUPPLEMENTAL INFORMATION: FOR THE 2012 TAX YEAR, MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION ("THE ORGANIZATION") QUALIFIES FOR PUBLIC CHARITY STATUS PURSUANT TO INTERNAL REVENUE CODE SECTIONS 170(B)(1)(A)(VI) AND 509(A)(2). THE ORGANIZATION BELIEVES THAT INTERNAL REVENUE CODE SECTION 509(A)(2) IS A CLEAR REFLECTION OF ITS CURRENT SOURCES OF REVENUE AND ACTIVITIES. SEE FORM 990, SCHEDULE A, PART I, LINE 9 AND FORM 990, SCHEDULE A, PART III. THE ORGANIZATION'S PUBLIC SUPPORT PERCENTAGE FOR 2012 IS 92.63%. FOR THE 2011 TAX YEAR, THE ORGANIZATION QUALIFIED FOR PUBLIC CHARITY STATUS PURSUANT TO INTERNAL REVENUE CODE SECTION 170(B)(1)(A)(VI). SEE FORM 990, SCHEDULE A, PART I, LINE 7. THE ORGANIZATION'S PUBLIC SUPPORT PERCENTAGE FOR 2011 WAS 51.17%. FOR THE 2011 TAX YEAR, THE ORGANIZATION WOULD HAVE ALSO QUALIFIED FOR PUBLIC CHARITY STATUS PURSUANT TO INTERNAL REVENUE CODE SECTION 509(A)(2) WITH A PUBLIC SUPPORT PERCENTAGE OF 88.09%. THE ORGANIZATION HAS QUALIFIED FOR PUBLIC CHARITY STATUS SINCE ITS INCEPTION IN 1980. GAINS ON REPURCHASES OF $34,710,833 REPORTED ON FORM 990, PART I, LINE 11 DID NOT RESULT IN GROSS RECEIPTS AND HAVE THEREFORE BEEN EXCLUDED FROM FORM 990, SCHEDULE A, PART III. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 632 632 15997011 15997643 949882 237471 0 0 1000000 1000000 1000000 949882 3949882 5924823 735 758 1062 632 3187 250000 250000 250000 237471 987471 1481207 0 REPURCHASE AGREEMENT - SOCIETE GENERALE 1779000 C REPURCHASE AGREEMENT - WESTDEUTCHE LANDESBANK 16619500 C REPURCHASE AGREEMENT - BAYERISCHE LANDESBANK 27160492 C 45558992 ACCRUED INTEREST PAYABLE 418166 EXCESS INTEREST AND REBATE PAYABLE 6931100 7349266 X 48804197 0 48804197 15809212 15809212 64613409 16255746 0 16255746 15809212 15809212 32064958 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: 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 2009. PART XI, LINE 4B - OTHER ADJUSTMENTS: EXPENSES NETTED AGAINST REVENUES IN AUDITED FINANCIAL STATEMENTS (SEE BELOW) PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES NETTED AGAINST REVENUES IN AUDITED FINANCIAL STATEMENTS (SEE BELOW) EXPENSES NETTED AGAINST REVENUES IN AUDITED FINANCIAL STATEMENTS: AMORTIZATION $ 3,807,040 CONSOLIDATION REBATES 5,342,910 SPECIAL ALLOWANCES 6,084,010 EXCESS INTEREST 575,252 TOTAL $15,809,212 0 0 0 0 0 0 0 0 0 WILLIAM F ALVIS 0 142945 0 0 0 0 0 9990 0 9785 0 162720 0 0 SID J SIMS 0 295051 0 0 0 0 0 30000 0 8461 0 333512 0 0 A MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354EPO 2004-06-30 45000000 STUDENT LOAN FINANCING 0 1 0 B MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354EQ8 2004-06-30 5000000 STUDENT LOAN FINANCING 0 1 0 C MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354EX3 2005-10-13 68700000 STUDENT LOAN FINANCING 0 1 0 D MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354EY1 2005-10-13 37500000 STUDENT LOAN FINANCING 0 1 0 A 22500000 55846251 450000 270000 55126251 2005 0 0 1 1 B 2500000 6205139 50000 30000 6125139 2005 0 0 1 1 C 65952000 81206114 54960 412200 80738954 2007 0 0 1 1 D 36000000 44326481 30000 225000 44071481 2007 0 0 1 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0 0 1 C 0 0 0 0 0 0 1 D 0 0 0 0 0 0 1 A 0 0 0 1 1 0 1 FSA CAPITAL MANAGMENT 10.200000000000 1 0 1 B 0 0 0 1 1 0 1 FSA CAPITAL MANAGMENT 10.200000000000 1 0 1 C 1 1 0 1 SOCIETE GENERALE 29.800000000000 1 0 1 D 1 1 0 1 SOCIETE GENERALE 29.800000000000 1 0 1 A 1 B 1 C 1 D 1 SCHEDULE K, GENERAL INFORMATION: THE 12 MONTH PERIOD USED FOR PREPARING SCHEDULE K ENDS ON 10/31/2012. TOTAL PROCEEDS IN PART II #3 DO NOT EQUAL THE ISSUE PRICE LISTED IN PART 1, COLUMN (E) DUE TO INVESTMENT EARNINGS. PART IV QUESTION 2C BOND A: FOR THE SERIES 2004 BOND, THERE WAS NO REBATE LIABILITY DUE AT THE FIVE YEAR DATE OF 05/31/2009. PART IV QUESTION 2C BOND C: FOR THE SERIES 2006 BOND, THERE WAS NO REBATE LIABILITY DUE AT THE FIVE YEAR DATE OF 10/31/2011. PART IV QUESTION 2C BOND D: FOR THE SERIES 2007 BOND, THERE WAS NO REBATE LIABILITY DUE AT THE FIVE YEAR DATE OF 10/31/2011. A MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354EZ8 2005-10-13 18800000 STUDENT LOAN FINANCING 0 1 0 B MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354FA2 2006-11-30 85700000 STUDENT LOAN FINANCING 0 1 0 C MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354FC8 2006-11-30 42900000 STUDENT LOAN FINANCING 0 1 0 D MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354FB0 2006-11-30 14300000 STUDENT LOAN FINANCING 0 1 0 A 18048000 22222343 15040 112800 22094503 2007 0 0 1 1 B 35263541 94673445 1008729 514200 93150516 2007 0 0 1 1 C 17652344 47391958 504953 257400 46629605 2007 0 0 1 1 D 5884115 15797319 168318 85800 15543201 2007 0 0 1 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0 0 1 C 0 0 0 0 0 0 1 D 0 0 0 0 0 0 1 A 1 1 0 1 SOCIETE GENERALE 29.800000000000 1 0 1 B 0 0 0 1 1 0 0 0 1 C 0 0 0 1 1 0 0 0 1 D 0 0 0 1 1 0 0 0 1 A 1 B 1 C 1 D 1 A MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354FD6 2007-06-28 73800000 STUDENT LOAN FINANCING 0 1 0 B MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354FE4 2007-06-28 36900000 STUDENT LOAN FINANCING 0 1 0 C MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION 640642776 605354FF1 2007-06-28 12300000 STUDENT LOAN FINANCING 0 1 0 A 39090000 79945601 347100 442800 79155701 2009 0 0 1 1 B 19545000 39972801 173550 221400 39577851 2009 0 0 1 1 C 6515000 13324267 57850 73800 13192617 2009 0 0 1 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0 0 1 C 0 0 0 0 0 0 1 A 0 0 0 1 1 0 1 SOCIETE GENERALE 29.700000000000 1 0 1 B 0 0 0 1 1 0 1 SOCIETE GENERALE 29.700000000000 1 0 1 C 0 0 0 1 1 0 1 SOCIETE GENERALE 29.700000000000 1 0 1 A 1 B 1 C 1 FORM 990, PART VI, SECTION A, LINE 3 MISSISSIPPI HIGHER EDUCATION ASSISTANCE CORPORATION ("THE ORGANIZATION") CONTRACTS WITH AND PAYS A MANAGEMENT FEE TO EDUCATION SERVICES FOUNDATION FOR ALL OF ITS ADMINISTRATIVE FUNCTIONS. THE ORGANIZATION MAINTAINS NO EMPLOYEES. 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 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 XI, 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 9 N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 EDUCATION SERVICES FOUNDATION M 7640178 FAIR MARKET VALUE