2011-11-09T09:34:21-06:00 2011-06-30 ANDERSON ZURMUEHLEN & CO PC PO BOX 1040 HELENA MT 59624 990 2010-07-01 810393527 MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORPORATION MONT 4064957800 2500 BROADWAY HELENA MT 59601 MICHAEL GREEN 4064957800 2011-11-07 1 DONALD W LAINE 4064421040 2010 2016-03-07 17:11:31Z MICHAEL GREEN 2500 BROADWAY HELENA MT 59601 54009328 0 X WWW.MHESAC.ORG X 1980 MT DEDICATED TO HELPING MONTANA CITIZENS WITH FINANCING THEIR POST-SECONDARY EDUCATION. 7 7 0 0 0 0 0 0 56227491 52857579 1289494 1151749 0 0 57516985 54009328 0 0 0 0 1100 1100 0 0 0 51933061 40507611 51934161 40508711 5582824 13500617 1646444272 1548848559 1620481735 1507992783 25962537 40855776 DEDICATED TO HELPING MONTANA CITIZENS WITH FINANCING THEIR POST-SECONDARY EDUCATION. 0 0 37527047 52857579 ACQUISITION, ORIGINATION AND SERVICING OF GUARANTEED STUDENT LOANS AS A SECONDARY STUDENT LOAN MARKET. BENEFITS PROVIDED TO BORROWERS THROUGH REBATE, INCENTIVE, AND RATE REDUCTION PROGRAMS TOTALED $2.29 MILLION FOR 31,653 BORROWERS IN FISCAL YEAR 2011. $44.1 MILLION IN BENEFITS HAVE BEEN PROVIDED TO BORROWERS SINCE INCEPTION OF BORROWER BENEFIT PROGRAMS IN 1996. SINCE INCEPTION, MHESAC HAS PROVIDED MORE THAN $2.6 BILLION IN STUDENT LOANS TO OVER 211,000 BORROWERS. 37527047 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 1 8 0 1 0 0 0 0 0 0 0 0 0 0 0 X 7 7 1 1 1 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X DJ WHITAKER 4064957800 2500 BROADWAY HELENA MT 59601 X FRED FLANDERS 3.00 X 200 0 0 JUDY CHAPMAN 1.00 X X 0 0 0 MARK SEMMENS 1.00 X 50 0 0 LILA TAYLOR 1.00 X 200 2400 0 BILL THOMAS 1.00 X 200 0 0 SHEILA STEARNS 1.00 X X 0 0 0 MICK ROBINSON 1.00 X X 0 0 0 BRUCE MARKS 1.00 X X 0 0 0 ROB BARNOSKY 1.00 X 100 2400 0 TERESA BORRENPHOL 1.00 X 0 0 0 MICHAEL GREEN 3.00 X 200 0 0 GEORGE OLSEN 1.00 X 100 0 0 JIM PENNER 1.00 X 100 0 0 ROYAL JOHNSON 1.00 X 50 2400 0 JAMES STIPCICH 0.00 X 0 238932 27996 JOLENE SELBY 0.00 X 0 152853 22745 1200 398985 50741 0 0 1 0 STUDENT ASSISTANCE FOUNDATION 2500 BROADWAY HELENA MT 59601 MANAGEMENT AND LOAN SERVICES 14463110 1 INTEREST AND SPECIAL A 611710 45202746 45202746 BOND REPURCHASE 611710 6514000 6514000 LOAN PURCHASE PROGRAM 611710 1140833 1140833 52857579 1151749 1151749 54009328 52857579 0 1151749 1100 1100 13504164 10541602 2962562 295201 295201 1807 1807 10684100 10684100 637948 637948 12600 12600 CONSOLIDATION LOAN FEES 10340418 10340418 LENDER LOAN AND INCENTI 4195801 4195801 AUCTION AGENT/BROKER FE 677677 677677 157895 154300 3595 40508711 37527047 2981664 0 3066168 4420170 48364240 7194445 2060872 1883706 23646603 19247871 27251524 122237479 1507883431 1362390214 34171434 31474674 1646444272 1548848559 19590735 16648783 1170405000 1093505000 430486000 397839000 1620481735 1507992783 X 21936134 21504404 4026403 19351372 25962537 40855776 1646444272 1548848559 X 13500617 1392622 X X 0 1 1 X 0 X 108957776 94994518 67374974 56227491 52857579 380412338 108957776 94994518 67374974 56227491 52857579 380412338 0 55449890 37160558 10008723 102619171 55449890 37160558 10008723 102619171 277793167 19486814 18294616 6349810 1289495 1168989 46589724 19486814 18294616 6349810 1289495 1168989 46589724 128444590 113289134 73724784 57516986 54026568 427002062 0.65060 0.57660 0.10910 0.12530 X 0 FREDDIE MAC NOTE 340833 F FHLB 630399 F FHLMC 2130348 F BAYERN LB (GIC) 63103788 F UNICREDIT BANK AG (GIC) 9783461 F TRINITY FUNDING CO (GIC) 31224472 F GRAND CENTRAL FUNDING (GIC) 15024178 F 122237479 EDUCATIONAL LOANS RECEIVABLE, NET OF ALLOWANCE 1362390214 C 1362390214 54009328 40508711 13500617 1392622 1392622 14893239 54009328 0 54009328 0 54009328 40508711 0 40508711 0 40508711 PART XI, LINE 8 - OTHER ADJUSTMENTS: ARBITRAGE REBATE 1,460,451. EXCESS INTEREST REBATE -67,829. 0 0 0 0 0 0 0 0 0 JAMES STIPCICH 0 178200 0 47545 0 13187 0 14492 0 13504 0 266928 0 0 JOLENE SELBY 0 116473 0 30418 0 5962 0 9519 0 13226 0 175598 0 0 PART I, LINE 1A DOES NOT APPLY. PART I, LINE 5 THE ORGANIZATION PAYS MANAGEMENT FEES TO STUDENT ASSISTANCE FOUNDATION OF MONTANA (SAF), A RELATED ORGANIZATION. SAF DETERMINES COMPENSATION UTILIZING THE FOLLOWING: A COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, WRITTEN EMPLOYMENT CONTRACT, COMPENSATION SURVEY AND APPROVAL BY THE COMPENSATION COMMITTEE APPOINTED BY THE BOARD OF SAF. THE EXECUTIVE COMPENSATION PLAN INCLUDES AN INCENTIVE PLAN. ONE OF THE TARGETS OF THE INCENTIVE PLAN IS BASED ON THE LEVEL OF ANNUAL GROSS REVENUE EARNED BY STUDENT ASSISTANCE FOUNDATION (SAF). MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORPORATION 810393527 612130HE7 2003-10-15 170300000 ACQUIRE STUDENT LOANS AND REFUND BONDS DATED 09/09/93 & 12/01/98 0 1 0 MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORPORATION 810393527 612130HJ6 2004-11-17 178000000 ACQUIRE STUDENT LOANS AND REFUND BONDS DATED 12/1/98, 12/1/99, & 9/7/00 0 1 0 MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORPORATION 810393527 612130HS6 2006-10-31 234100000 ACQUIRE STUDENT LOANS 0 1 0 5300000 170300000 1438547 168861453 2006 0 0 1 1 33600000 178000000 1405453 176594547 2007 0 0 1 1 12000000 234100000 1443145 232656855 2008 0 0 1 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 1 0.00000 0.00000 0.00000 1 1 1 1 CITIBANK NA 9.800000000000 1 1 1 GRAND CENTRAL FUNDING 33.000000000000 1 0 0 0 1 0 NA 1 BAYERISCHE LANDESBANK 11.000000000000 1 0 0 0 1 0 NA 1 TRINITY FUNDING CO 31.300000000000 1 0 0 SHEILA STEARNS OFFICER NOTED OFFICER IS PRESIDENT OF MHESAC AND EX-OFFICIO NON-VOTING DIRECTOR FOR STUDENT ASSISTANCE FOUNDATION 0 JAMES STIPCICH TOP MANAGEMENT OFFICIAL NOTED TOP MANAGEMENT OFFICIAL FOR MHESAC IS AN OFFICER OF STUDENT ASSISTANCE FOUNDATION 0 LILA TAYLOR BOARD MEMBER NOTED BOARD MEMBER IS A DIRECTOR FOR MHESAC AND VICE CHAIR FOR STUDENT ASSISTANCE FOUNDATION 0 JOLENE SELBY TOP FINANCIAL OFFICIAL NOTED TOP FINANCIAL OFFICIAL FOR MHESAC IS AN OFFICER OF STUDENT ASSISTANCE FOUNDATION 0 ROB BARNOSKY DIRECTOR NOTED BOARD MEMBER IS A DIRECTOR FOR MHESAC AND A DIRECTOR FOR STUDENT ASSISTANCE FOUNDATION 0 FORM 990, PART VI, SECTION A, LINE 2 THREE MHESAC OFFICERS WORK FOR THE SAME ORGANIZATION. DURING THE FISCAL YEAR TWO MHESAC BOARD MEMBERS WERE ALSO MEMBERS OF THE MONTANA BOARD OF REGENTS. FORM 990, PART VI, SECTION A, LINE 3 STUDENT ASSISTANCE FOUNDATION IS A 509(A)(3)SUPPORTING ORGANIZATION ORGANIZED TO PROVIDE MONTANA HIGHER EDUCATION STUDENT ASSISTANCE CORPORATION (MHESAC), WITH ALL THE NECESSARY MANAGEMENT AND ADMINISTRATIVE SERVICES REQUIRED TO OPERATE MHESAC'S STUDENT LOAN PROGRAM, PERFORM ALL THE RESPONSIBILITIES UNDER THE INDENTURES, AND TO SERVICE ALL STUDENT LOANS OWNED BY MHESAC. FORM 990, PART VI, SECTION A, LINE 4 THE CORPORATION AMENDED THE ARTICLES OF INCORPORATION AND THE BYLAWS DURING THE FISCAL YEAR. THE AMENDMENTS WERE APPROVED BY THE BOARD OF DIRECTORS ON APRIL 27TH, 2011. THE CHANGES ARE SUMMARIZED BELOW: THE REFERENCE TO THE BOARD OF DIRECTOR POSITIONS, TERMS, AND APPOINTMENT WAS REMOVED FROM THE ARTICLES OF INCORPORATION AND MOVED TO THE BYLAWS; THE REQUIREMENT THAT THE PRESIDENT OF THE BOARD IS THE COMMISSIONER OF HIGHER EDUCATION WAS REMOVED AND THE PRESIDENT WILL NOW BE APPOINTED BY THE BOARD; CLARIFICATION WAS MADE TO SPECIFY THE RELATIONSHIP AND INVOLVEMENT OF THE BOARD OF REGENTS AS AN ADVISORY ROLE; THE DIRECTORS WILL BE SELECTED FROM A SLATE SUBMITTED BY THE NOMINATIONS COMMITTEE AND APPOINTED BY THE BOARD INSTEAD OF THE BOARD OF REGENTS; A PROVISION WAS ADDED TO ALLOW FOR AN APPOINTMENT OF AN ASSISTANT SECRETARY AND ASSISTANT TREASURER IF CONSIDERED NECESSARY; AND A PROVISION WAS ADDED TO SPECIFY E-MAIL AS AN WAY TO GIVE NOTICE. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OF THE GOVERNING BOARD ARE 1) THE STUDENT MEMBER OF THE MONTANA BOARD OF REGENTS WHO SERVES BY VIRTUE OF THEIR POSITION ON THE REGENTS; AND 2) SIX OTHER MEMBERS WHO ARE APPOINTED BY THE CHAIR OF THE BOARD OF REGENTS OF THE MONTANA UNIVERSITY SYSTEMS. FORM 990, PART VI, SECTION B, LINE 11 THE RETURN IS REVIEWED BY THE AUDIT COMMITTEE AND THEN BY THE FULL BOARD IN A SCHEDULED BOARD MEETING. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS ARE REQUIRED TO DISCLOSE CONFLICTS OF INTEREST PRIOR TO PARTICIPATING IN THE DISCUSSION OF THE TOPIC. THE DISCLOSURE IS NOTED IN THE MINUTES. ALL VOTES HAVE TO BE CARRIED BY A MAJORITY OF DISINTERESTED PARTIES. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION DOES NOT INCUR COMPENSATION OR PAYROLL RELATED EXPENSES. BOARD MEMBERS ARE PAID HONORARIUMS ONLY AND REIMBURSED FOR TRAVEL EXPENDITURES. THE PROCESS FOR DETERMINING EXECUTIVE COMPENSATION BY THE STUDENT ASSISTANCE FOUNDATION, MHESAC'S MANAGEMENT COMPANY, IS AS FOLLOWS: THE SAF BOARD APPOINTS A COMPENSATION COMMITTEE IN CONJUNCTION WITH AN EXTERNAL CONSULTANT TO REVIEW AND RECOMMEND COMPENSATION OF THE CEO FOR BOARD APPROVAL. MARKET CONDITIONS ARE LOOKED AT ANNUALLY VIA A MARKET SURVEY. THE SAF BOARD APPROVES ANY ANNUAL COST OF LIVING ADJUSTMENTS. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS ARE AVAILABLE FROM THE COMPANY'S WEBSITE AND OTHER DOCUMENTS ARE AVAILABLE UPON REQUEST. HOURS FOR RELATED ORGANIZATIONS PART VII, SECTION A, COLUMN B JOLENE SELBY AND JAMES A STIPCICH HOURS PER WEEK FOR RELATED ORGANIZATIONS ARE 44. LILA TAYLOR AND ROB BARNOSKY ARE EACH 1 HR PER WEEK. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: ARBITRAGE REBATE 1,460,451. EXCESS INTEREST REBATE -67,829. TOTAL TO FORM 990, PART XI, LINE 5: 1,392,622. OVERSIGHT OF AUDIT FORM 990, PART XI, LINE 2C THE PROCESS FOR THE OVERSIGHT RESPONSIBILITY OF THE AUDIT IS CONSISTENT WITH PRIOR YEARS. FINANCIAL STATEMENT REPORTING PART XII, LINE 2 B THE FINANCIAL STATEMENTS DO NOT CONTAIN A FOOTNOTE REGARDING A FIN 48 STATEMENT OF UNCERTAIN TAX POSITIONS. NOTE ON CHANGES IN PROGRAMS DUE TO CHANGES IN FEDERAL STUDENT LOAN PROGRAM PART III, QUESTION 3 EFFECTIVE JULY 1, 2010, THE FEDERAL FAMILY EDUCATION PROGRAM WAS ELIMINATED AND REPLACED BY THE FEDERAL DIRECT LOAN PROGRAM. HOWEVER, MHESAC IS STILL RESPONSIBLE FOR THE MANAGEMENT AND SERVICING OF THE LOANS IN ITS PORTFOLIO AS WELL AS WORKING WITH THE GUARANTOR TO REPURCHASE ANY PREVIOUSLY DEFAULTED LOANS THAT HAVE BEEN REHABILITATED. STUDENT ASSISTANCE FOUNDATION OF MONTANA 2500 BROADWAY HELENA MT 59601 810527529 PROVIDE MANAGEMENT AND LOAN SERVICING TO 150(D) ORGANIZATIONS MT 501(C)(3) 11A N/A 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0