2013-11-15T13:03:33-06:00 2012-12-31 203250475 ESMOND & ASSOCIATES INC 23901 CALABASAS RD 1010 CALABASAS CA 91302 990 2012-01-01 208091013 CENTER FOR EXCELLENCE IN HIGHER EDUCATION INC CENT 8013120078 4021 SOUTH 700 EAST NO 400 SALT LAKE CITY UT 84107 ERIC JUHLIN 8013120078 2013-11-13 1 LENNY ESMOND CPA P00037472 8186102900 2013-11-13 2012 2016-02-25 16:41:14Z X ERIC JUHLIN 4021 SOUTH 700 EAST 400 SALT LAKE CITY UT 84107 215595671 0 X WWW.CEHE.ORG X 2007 IN THE CENTER FOR EXCELLENCE IN HIGHER EDUCATION CONTINUED ITS HIGHER EDUCATION REFORM RESEARCH PROGRAM: THE OBJECTIVE WAS TO DEVELOP A DETAILED ROADMAP FOR GOVERNING A BOARD INTERESTED IN IMPLEMENTING HIGHER EDUCATION REFORM. EDUCATION REFORM, FOR THESE PURPOSES, IS DEFINED AS INCREASING ACCESS, REDUCING COSTS, AND IMPROVING THE QUALITY OF HIGHER EDUCATION WITH THE GOAL TO MAKE UNIVERSITIES, SCHOOLS, DEPARTMENTS, AND ULTIMATELY INDIVIDUAL FACULTY MEMBERS ACCOUNTABLE FOR THE QUALITY AND EFFECTIVENESS OF THEIR WORK. IN ORDER TO FURTHER THE MISSION, THE ORGANIZATION HAS RECENTLY UNDERTAKEN A SIGNIFICANT CHANGE IN ITS OPERATIONS, AND HAS DECIDED TO TACKLE THE ISSUE HEAD-ON. AS A RESULT, AS OF DECEMBER 31, 2012, THE ORGANIZATION HAS ACQUIRED AND NOW OWNS AND OPERATES STEVENS-HENAGER COLLEGE, COLLEGEAMERICA ARIZONA, COLLEGEAMERICA DENVER AND CALIFORNIA COLLEGE SAN DIEGO AS NONPROFIT COLLEGES ORGANIZED AND OPERATED EXCLUSIVELY FOR EDUCATIONAL PURPOSES. 11 8 0 3 0 0 1011425 215595671 0 0 36 0 341 0 1011802 215595671 13377 841327 0 0 0 5400 0 0 457 467726 498646 481103 1345373 530699 214250298 558739 512556882 0 481248340 558739 31308542 X PRIOR TO DECEMBER 31, 2012, THE ORGANIZATION'S PURPOSE WAS TO EDUCATE THE PUBLIC ABOUT THE STATE OF HIGHER EDUCATION IN AMERICA AND HELP DONORS PROMOTE EXCELLENCE IN HIGHER EDUCATION THROUGH PHILANTHROPY. THE ORGANIZATION HAS RECENTLY UNDERTAKEN A SIGNIFICANT CHANGE IN ITS OPERATIONS, AND, AS OF DECEMBER 31, 2012, THE ORGANIZATION HAS ACQUIRED AND NOW OWNS AND OPERATES STEVENS-HENAGER COLLEGE, COLLEGEAMERICA ARIZONA, COLLEGEAMERICA DENVER AND CALIFORNIA COLLEGE SAN DIEGO AS NONPROFIT COLLEGES ORGANIZED AND OPERATED EXCLUSIVELY FOR EDUCATIONAL PURPOSES. 1 1 847496 838646 THE FUND FOR INQUIRY INTO THE MORALITY OF CAPITALISM IS A RESTRICTED GIFT PROGRAM. IT IS DESIGNED TO ASSIST PHILANTHROPISTS WHO RECOGNIZE THE IMPORTANCE OF FREE MARKET CAPITALISM TO THE FLOURISHING OF INDIVIDUALS IN THE UNITED STATES AND AROUND THE WORLD. IT SEEKS TO PROVIDE OPPORTUNITIES FOR UNIVERSITY AND COLLEGE STUDENTS TO EXPLORE THE IDEA THAT CAPITALISM IS NOT SIMPLY ABOUT ECONOMICS, BUT RATHER IS FUNDAMENTALLY A MORAL SYSTEM IN WHICH INDIVIDUALS EXERCISE THE UNALIENABLE RIGHT TO PURSUE THEIR OWN HAPPINESS. 2689 2681 THE CENTER FOR EXCELLENCE IN HIGHER EDUCATION (CEHE) PARTNERED WITH A FREE MARKET UNIVERSITY IN GUATEMALA, UNIVERSIDAD FRANCISCO MARROQUIN (UFM), HELPING IT TO ESTABLISH A NEW U.S.- BASED FOUNDATION. 395437 0 EFFECTIVE DECEMBER 31, 2012, ACQUIRED AND NOW OWNS AND OPERATES STEVENS-HENAGER COLLEGE, COLLEGEAMERICA ARIZONA, COLLEGEAMERICA DENVER AND CALIFORNIA COLLEGE SAN DIEGO (THE COLLEGES) AS NONPROFIT COLLEGES ORGANIZED AND OPERATED EXCLUSIVELY FOR EDUCATIONAL PURPOSES. THE PRINCIPAL FUNCTION OF THE COLLEGES OWNED AND OPERATED BY THE ORGANIZATION HAS BEEN THE PRESENTATION OF FORMAL INSTRUCTION AND EACH OF THE COLLEGES MAINTAINS A REGULAR FACULTY AND CURRICULUM AND HAS A REGULARLY ENROLLED BODY OF PUPILS IN ATTENDANCE AT THE PLACE WHERE ITS EDUCATIONAL ACTIVITIES ARE REGULARLY CARRIED ON. THE EXPENSES REPORTED FOR THIS SECTION ARE COMPUTED AS THE AMOUNT FOR THE ONE DAY DURING THE TAX YEAR WHICH THE ORGANIZATION OWNED THE COLLEGES. 1245622 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 1 0 1 1 0 0 0 0 1 0 0 0 1 X 10 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 X 11 8 1 0 1 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 CA AZ IN X ERIC JUHLIN 8013120078 4021 SOUTH 700 EAST SUITE 400 SALT LAKE CITY UT 84107 GM CURTIS III PHD 1.00 X 1800 0 0 WILLIAM C DENNIS PHD 1.00 X 1800 0 0 TODD ZYWICKI JD 1.00 X 1800 0 0 CARL BARNEY 40.00 X X 0 0 0 ERIC JUHLIN 40.00 X X 0 0 0 YARON BROOK 2.00 X 0 0 0 LENNY ESMOND 5.00 X X 0 0 0 ROY HURD 1.00 X 0 0 0 KEN KONESCO 1.00 X 0 0 0 TERRY BROWN 1.00 X 0 0 0 WILLIAM CLOHAN 1.00 X 0 0 0 5400 0 0 0 0 0 0 0 215595671 205147213 215595671 215595671 0 0 0 841327 841327 5400 5400 1750 1750 39171 39171 16998 16998 500 500 1865 34 1374 457 2234 763 1471 142 61 81 750 750 OPERATING EXPENSES FOR 395437 395437 CONTRACTS 39000 8000 31000 MEMBERSHIP DUES 695 695 MISCELLANEOUS EXPENSES 104 104 1345373 1245622 99294 457 18739 6902258 540000 414338 0 79076109 15490468 9436054 0 6054414 0 419042664 0 1067099 558739 512556882 6958585 383646 37982485 431000000 0 4923624 0 481248340 X 551582 30894204 7157 414338 0 0 558739 31308542 558739 512556882 X 214250298 -183500495 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2157241 1590280 566961 13333227 7845774 5487453 6054414 EXCESS STUDENT FUNDS 1952584 DEFERRED RENT 2971040 4923624 X 10448458 0 10448458 205147213 205147213 215595671 949936 0 949936 395437 395437 1345373 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE ORGANIZATION'S FORM 990, RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX, FOR THE YEARS ENDING DECEMBER 31,2012, 2011, 2010, AND 2009 ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES REQUIRE TAX EFFECTS FROM UNCERTAIN TAX POSITION TO BE RECOGNIZED IN THE FINANCIAL STATEMENT ONLY IF THE POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLEY ON THE TECHINCAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. IF AN UNCERTAIN TAX POSITION MEETS THE MORE-LIKLEY-THAN-NOT THRESHOLD, THE LARGEST AMOUNT OF TAX BENEFIT THAT IS GREATER THAN 50% LIKELY TO BE RECOGNIZED UPON ULTIMATE SETTLEMENT WITH THE TAXING AUTHORITY IS RECORDED. THE ORGANIZATION'S PRIMARY TAX POSITIONS RELATE TO ITS STATUS AS A NOT-FOR-PROFIT ENTITY EXEMPT FROM INCOME TAXES AND CLASSIFICATION OF ACTIVITIES RELATED TO ITS EXEMPT PURPOSE. MANAGEMENT HAS EVALUATED THE TAX POSITIONS REFLECTED IN THE ORGANIZATION'S TAX FILING AND DOES NOT BELIEVE THAT ANY MATERIAL UNCERTAIN TAX POSITIONS EXIST. PART XI, LINE 4B - OTHER ADJUSTMENTS: DONATED ACCOUNTS RECEIVABLE AND DONATED ASSETS NOT INCLUDED FOR GAAP 205,147,213. PART XII, LINE 4B - OTHER ADJUSTMENTS: PROGRAM EXPENSES FOR ONE DAY AFTER MERGER NOT INCLUDED PER GAAP STANDARDS 395,437. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 SEE SCHEDULE O. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 THE COLLEGES PARTICIPATE IN THE TITLE IV FEDERAL FINANCIAL AID PROGRAM THAT INCLUDES FEDERAL PELL GRANTS, FEDERAL PARENT LOANS FOR UNDERGRADUATE STUDY, THE FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT, AND THE FEDERAL DIRECT STUDENT LENDING PROGRAM. 1 THE AYN RAND INSTITUTE - THE CENTER FOR THE ADVANCEMENT OF OBJECTIVISM 2121 ALTON PARKWAY SUITE 250 IRVINE CA 92606 222570926 501 (C) 3 355000 N/A N/A TO FURTHER THE IMPORTANCE OF CAPITALISM IN THE UNITED STATES AND IN THE WORLD. TRUSTEES OF TUFTS COLLEGE 169 HOLLAND STREET SOMMERVILLE MA 02144 042103634 501 (C) 3 100000 N/A N/A TO FURTHER THE IMPORTANCE OF CAPITALISM IN THE UNITED STATES AND IN THE WORLD. 2 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE BOARD OF DIRECTORS MONITOR USE OF ALL GRANTS. CARL BARNEY MEMBER SEE SCHEDULE O FOR EXPLANATION X 431000000 431000000 0 1 1 431000000 CARL BARNEY CHAIRMAN/DIRECTOR/MEMBER AND NOTE HOLDER 431000000 NOTE PAYABLE IN CONNECTION WITH MERGER OF STEVENS-HENAGER COLLEGE, INC., COLLEGEAMERICA SERVICES, AND COLLEGEAMERICA ARIZONA, INC. WITH AND INTO THE ORGANIZATION IN A BARGAIN SALE TRANSACTION. 0 CARL BARNEY CHAIRMAN/DIRECTOR/MEMBER AND REAL PROPERTY LESSOR 17497 CARL BARNEY OWNS THREE DISREGARDED ENTITIES WHICH LEASE REAL PROPERTY TO THE ORGANIZATION FOR COMMERCIALLY REASONABLE AMOUNTS VERIFIED BY THIRD PARTIES (AMOUNT OF TRANSACTION REPORTED REFLECTS ONE DAYS RENT BASED ON THE MERGER TRANSACTION DATE OF DECEMBER 31, 2012) 0 X ACCOUNTS RECEIVABLE 4 24225000 APPRAISAL X 100% OF THE COMPANY ASSETS 5 180922213 APPRAISAL 9 0 1 0 METHOD FOR DETERMINING NUMBER OF CONTRIBUTORS: PART I, COLUMN (B): LINE 25 - THE ORGANIZATION RECEIVED A DONATION OF 100% OF THE ASSETS OF FIVE CORPORATIONS IN CONNECTION WITH A MERGER TRANSACTION ON DECEMBER 31, 2012. LINE 26 - THE ORGANIZATION RECEIVED A DONATION OF ACCOUNTS RECEIVABLE FROM FOUR DONORS. THE ACCOUNTS RECEIVABLE INCLUDE MULTIPLE SEPARATE ACCOUNTS. NEW PROGRAM SERVICES FORM 990, PART III, LINE 2 EFFECTIVE DECEMBER 31, 2012, THE PRINCIPAL FUNCTION OF THE ORGANIZATION HAS BEEN THE PRESENTATION OF FORMAL INSTRUCTION AND EACH OF THE COLLEGES, STEVENS-HENAGER COLLEGE, COLLEGEAMERICA ARIZONA, COLLEGEAMERICA DENVER AND CALIFORNIA COLLEGE SAN DIEGO, MAINTAINS A REGULAR FACULTY AND CURRICULUM AND HAS A REGULARLY ENROLLED BODY OF PUPILS IN ATTENDANCE AT THE PLACE WHERE ITS EDUCATIONAL ACTIVITIES ARE REGULARLY CARRIED ON. CHANGES IN PROGRAM SERVICES FORM 990, PART III, LINE 3 EFFECTIVE DECEMBER 31, 2012, THE NEW PROGRAM SERVICES DESCRIBED IN PART III, QUESTION 2, ARE THE PRIMARY PROGRAM SERVICES. THE NON-COLLEGE OR UNIVERSITY ACTIVITIES PREVIOUSLY CARRIED ON BY THE ORGANIZATION (PRINCIPALLY GRANT-MAKING TO SECTION 501(C)(3) ORGANIZATIONS) WILL BE DE MINIMIS RELATIVE TO THE SUBSTANTIAL ACTIVITIES AND OPERATIONS OF THE COLLEGES (STEVENS-HENAGER COLLEGE, COLLEGEAMERICA ARIZONA, COLLEGEAMERICA DENVER AND CALIFORNIA COLLEGE SAN DIEGO), AND IN ANY CASE WILL BE MERELY INCIDENTAL TO THE FURTHERANCE OF THE ORGANIZATION'S PRIMARY EDUCATIONAL ACTIVITIES AND PURPOSE. EXPLANATION OF PUBLICIZING NONDISCIMINATION POLICY SCHEDULE E, PART I, ITEM 3 1. THE ORGANIZATION'S NONDISCRIMINATION POLICY CAN BE FOUND UNDER "TITLE IX AND VI OF THE CIVIL RIGHTS ACT" OF ITS PRINCIPAL PUBLICATION, THE CATALOGUE, FOR EACH COLLEGE, STEVENS-HENAGER COLLEGE, COLLEGEAMERICA DENVER, COLLEGEAMERICA ARIZONA, AND CALIFORNIA COLLEGE SAN DIEGO. 2. THE COLLEGES HAVE PUBLISHED A NOTICE OF ITS NONDISCRIMINATION POLICY IN THE FOLLOWING NEWSPAPERS OF GENERAL CIRCULATION THAT COLLECTIVELY SERVE ALL RACIAL SEGMENTS OF THE COMMUNITY IN ACCORDANCE WITH REVENUE PROCEDURE 75-50: STEVENS HENAGER COLLEGE: STANDARD-EXAMINER, PAGE C-7 (1/17/2013); THE SPECTRUM, PAGE D-6 (1/18/2013); DAILY HERALD, C-11 (1/18/2013); DESERET NEWS, PAGE B-4 (1/17/2013); THE SALT LAKE TRIBUNE, B-3 (1/17/2013); PART REGISTER, PAGE D-10 (1/18/2013); AND THE IDAHO STATESMAN, PAGE A-10 (1/23/2013); COLLEGEAMERICA DENVER: THE TRIBUNE, PAGE D-2 (1/17/2013); THE COLORADO SPRINGS GAZETTE, PAGE A-4 (1/17/2013); THE DENVER POST, PAGE B-12 (1/17/2013); FORT COLLINS COLORADOAN, PAGE B-6 (1/18/2013); AND WYOMING TRIBUNE EAGLE, PAGE C-4 (1/18/2013); COLLEGEAMERICA ARIZONA: THE HERALD JOURNAL, PAGE B-9 (1/17/2013); THE ARIZONA DAILY SUN, PAGE C-4 (1/18/2013); AND THE ARIZONA REPUBLIC, PAGE C-7 (1/22/2013); AND CALIFORNIACOLLEGE SAN DIEGO: NORTH COUNTY TIMES, PAGE 15 (1/18/2013) AND U-T SAN DIEGO, PAGE C-5 (1/18/2013). NOTIFICATION TO DONOR OF THE VALUE OF GOODS OR SERVICES PROVIDED: FORM 990, PART V, LINE 7B PRIOR TO THE DECEMBER 31, 2012 (THE "EFFECTIVE DATE"), THE COLLEGES WERE OPERATED BY STEVENS-HENAGER COLLEGE, INC., A UTAH CORPORATION ("STEVENS-HENAGER COLLEGE") AND COLLEGEAMERICA ARIZONA, INC., A COLORADO CORPORATION ("COLLEGEAMERICA ARIZONA"). COLLEGEAMERICA SERVICES, INC., A NEVADA CORPORATION ("CASI"), PROVIDED MANAGEMENT AND ADMINISTRATIVE SERVICES TO THE COLLEGES. THROUGH FORWARD MERGERS, EACH OF THE AFOREMENTIONED ENTITIES MERGED WITH AND INTO THE ORGANIZATION ON THE EFFECTIVE DATE IN A BARGAIN SALE TRANSACTION. PROMISSORY NOTES WERE ISSUED FOR A PORTION OF THE FAIR MARKET VALUE AS CONSIDERATION FOR ITS ACQUISITION OF STEVENS-HENAGER COLLEGE, COLLEGEAMERICA ARIZONA AND CASI. THE ORGANIZATION NOTIFIED THE DONOR OF THE AMOUNT OF THE PROMISSORY NOTES ISSUED. FORM 990, PART VI, SECTION A, LINE 2 LENNY ESMOND, DIRECTOR, TREASURER AND SECRETARY, OF THE ORGANIZATION IS A CPA THAT PROVIDES TAX AND CONSULTING SERVICES THRU HIS WHOLLY OWNED CORPORATION TO THE ORGANIZATION, THE MEMBER (CARL BARNEY), AND OTHER ENTITIES OWNED BY THE MEMBER, INCLUDING THOSE ACQUIRED BY MERGER ON DECEMBER 31, 2012. SERVICES ARE PROVIDED ON AN ARM'S LENGTH BASIS USING STANDARD BILLING RATES. FORM 990, PART VI, SECTION A, LINE 4 CONCURRENT WITH THE MERGER TRANSACTIONS, THE ORGANIZATION AMENDED ITS ARTICLES OF INCORPORATION AND BYLAWS TO INCREASE THE SIZE OF ITS BOARD, ELECT NEW OFFICERS (INCLUDING MR. CARL BARNEY AS CHAIRMAN), AND ESTABLISH MR. BARNEY AS THE SOLE STATUTORY MEMBER OF THE ORGANIZATION, ALL SUBJECT TO AND EFFECTIVE UPON THE CLOSING OF THE MERGER TRANSACTIONS WHICH TOOK PLACE ON DECEMBER 31, 2012. THE AMENDED ARTICLES AND BYLAWS WERE APPROVED, ALONG WITH THE MERGER TRANSACTIONS AND NUMEROUS RELATED RESOLUTIONS, PURSUANT TO THE UNANIMOUSLY ADOPTED RESOLUTIONS OF THE ORGANIZATION'S INDEPENDENT BOARD OF DIRECTORS AS COMPOSED PRIOR TO THE EFFECTIVE DATE OF DECEMBER 31, 2012. FORM 990, PART VI, SECTION A, LINE 6 CARL BARNEY IS A MEMBER OF CENTER FOR EXCELLENCE IN HIGHER EDUCATION, INC. EFFECTIVE DECEMBER 31, 2012. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBER HAS THE POWER TO APPOINT MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN GOVERNANCE DECISIONS OF THE ORGANIZATION ARE RESERVED FOR ITS SOLE MEMBER. FORM 990, PART VI, SECTION B, LINE 11 PRESIDENT AND SELECTED BOARD OF DIRECTORS MEMBERS REVIEW THE FORM BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C OFFICERS AND BOARD MEMBERS ARE REQUIRED TO SIGN A CONFLICT OF INTEREST POLICY ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15 THREE BOARD MEMBERS WERE GIVEN A HONORARIA FOR THEIR TIME TOTALING $5,400. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE AT ITS OFFICE DURING REGULAR BUSINESS HOURS. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: RETAINED EARNINGS OF DONATED AND MERGED COMPANIES 21,251,281. ELIMINATION OF DONATED NON CASH ITEMS FOR GAAP -205,147,213. ELIMINATION OF PROGRAM EXPENSES FOR GAAP 395,437. CHANGE IN OVERSIGHT PROCESS FORM 990, PART XII, LINE 2C ON DECEMBER 31, 2012, THE ORGANIZATION EXPANDED ITS BOARD OF DIRECTORS AND AUDIT COMMITTEE. PURPOSE OF LOAN: FORM 990, SCHEDULE L, PART II, COLUMN (C) NOTE PAYABLE RELATING TO THE MERGER OF COMPANIES WITH AND INTO THE ORGANIZATION IN A BARGAIN SALE TRANSACTION. PROMETHEUS FOUNDATION PO BOX 1157 CRYSTAL BAY NV 89402 271456655 PRIVATE FOUNDATION WHICH MAKES CHARITABLE GRANTS NV 501(C)(3) PF CARL BARNEY 0 STRATEGIC DIRECTIONS LLC PO BOX 1157 CRYSTAL BAY NV 89402 272913702 SERVICES NV CARL BARNEY S 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0