2011-05-12T18:43:16-05:00 2010-06-30 JGD & ASSOCIATES LLP 5355 MIRA SORRENTO PLACE SUITE 700 SAN DIEGO CA 921213825 990 2009-07-01 201269904 SYSTEM MANAGEMENT GROUP SYST 8586428100 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 RICHARD CARTER 8586428100 2011-05-09 1 DANIEL P SCHREIBER 8585871000 2011-05-09 2009 2016-02-24 21:20:13Z RICHARD CARTER 11355 N TORREY PINES RD LA JOLLA CA 92037 3727355 0 X WWW.NUSYSTEM.ORG X 2005 CA PROVIDE ADMINISTRATIVE SERVICES TO THE ORGANIZATION'S AFFILIATED INSTITUTIONS: THE NATIONAL UNIVERSITY SYSTEM ("NUS"). 22 16 4 0 0 0 0 16250477 3727355 0 0 16250477 3727355 0 0 3552924 1605532 0 0 12697553 2121823 16250477 3727355 0 0 5000 5000 0 5000 5000 PROVIDE ADMINISTRATIVE SERVICES TO THE ORGANIZATION'S AFFILIATED INSTITUTIONS: THE NATIONAL UNIVERSITY SYSTEM ("NUS"). 0 0 3727355 3727355 PROVIDE SUPPORT AND SERVICES TO THE ORGANIZATIONS IN THE NATIONAL UNIVERSITY SYSTEM ("NUS"). 3727355 1 0 0 0 0 0 0 0 0 0 0 1 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 0 1 0 0 4 1 0 0 0 0 0 0 0 0 0 22 16 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X MICHELLE BELLO Associate VP Finance 8586428636 11355 NORTH TORREY PINES ROAD LA JOLLA CA 920371011 CARLOS RODRIGUEZ 0.30 X 0 0 0 CHERYL KENDRICK 0.30 X 0 0 0 DR ALEXANDER SHIKHMAN 0.30 X 0 0 0 DR DONALD KRIPKE 0.30 X 0 0 0 DR LEE Rice 0.30 X 0 0 0 FELIPE BECERRA 0.30 X 0 0 0 GERALD CZARNECKI 0.30 X 0 0 0 HERB MEISTRICH 0.30 X 0 0 0 JACQUELINE TOWNSEND KONSTANTUROS 0.30 X 0 0 0 JAY STONE 0.30 X 0 0 0 JEAN LEONARD 0.30 X 0 0 0 JEANNE CONNELLY 0.30 X 0 0 0 Dr JERRY LEE ii see sch o 12.00 X X 293175 0 62526 JOHN BUCHER 0.30 X 0 0 0 JUDITH SWEET 0.30 X 0 0 0 KATE GRACE 0.30 X 0 0 0 MICHAEL R MCGILL 0.30 X 0 0 0 RICHARD CHISHOLM 0.30 X 0 0 0 RUTHANN HEINRICH 0.30 X 0 0 0 STACY ALLISON 0.30 X 0 0 0 THOMAS TOPUZES 0.30 X 0 0 0 W H KNIGHT JR 0.30 X 0 0 0 BETH SCHECHTER 40.00 X 100339 0 0 KENDRA LOSEE 40.00 X 110911 0 0 NANCY ROHLAND 40.00 X 135775 0 7127 PATRICIA POTTER 0.30 X 0 0 0 RICHARD E CARTER 0.30 X 0 0 0 VIRGINIA BENEKE 60.00 X 211906 0 4239 852106 0 73892 3 0 1 0 0 PAYMENT FOR SUPPORT AN 561000 3727355 3727355 3727355 3727355 3727355 0 0 914632 914632 690900 690900 708855 708855 239673 239673 MISCELLANEOUS EXPENSES 1161255 1161255 DATA NETWORKING 12040 12040 3727355 3727355 0 0 5000 5000 5000 5000 0 0 X 0 0 0 0 5000 5000 5000 5000 5000 5000 X 0 0 1 0 X X X X 0 0 0 NATIONAL POLYTECHNIC COLLEGE OF SCIENCE 330681027 BOX 2 1 1 1 80356 NATIONAL UNIVERSITY 237172306 BOX 2 1 1 1 3369291 JOHN F KENNEDY UNIVERSITY 941610694 BOX 2 0 1 1 0 NATIONAL UNIVERSITY ACADEMY 352358696 BOX 2 0 1 1 110144 NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL 562438569 BOX 9 0 1 1 25909 WESTMED COLLEGE 550808619 BOX 2 0 1 1 141654 6 3727354 Schedule A, Part IV, Supplemental Information: SOME MEMBERS OF THE NATIONAL UNIVERSITY SYSTEM, INCLUDING NATIONAL UNIVERSITY AND NATIONAL POLYTECHNIC COLLEGE OF SCIENCE (UNDER ITS FORMER NAME COLLEGE OF OCEANEERING) ARE LISTED IN THE ARTICLES OF INCORPORATION OF SYSTEM MANAGEMENT GROUP AS SUPPORTED ORGANIZATIONS. THE OTHER MEMBERS OF THE NATIONAL UNIVERSITY SYSTEM THAT ARE SUPPORTED ORGANIZATIONS ARE DESCRIBED BY CLASS, WITH REFERENCE TO THEIR EDUCATIONAL MISSION, THEIR AFFILIATION WITH THE NATIONAL UNIVERSITY SYSTEM, AND 501(C)(3) STATUS. AS NOTED IN LINE 11A, SYSTEM MANAGEMENT GROUP IS A TYPE I SUPPORTING ORGANIZATION THAT IS OPERATED, SUPERVISED, OR CONTROLLED BY THE SUPPORTED ORGANIZATIONS. X X 1 1 X X X X X X 0 1 0 1 1 0 0 0 0 Dr JERRY LEE (ii) see sch o 120000 0 75000 0 98175 0 50926 0 11600 0 355701 0 0 0 VIRGINIA BENEKE 211906 0 0 0 0 0 0 0 4239 0 216145 0 0 0 Part I, Line 1a UNDER DR. LEE'S EMPLOYMENT CONTRACT, HE IS PROVIDED THE CHANCELLOR'S RESIDENCE, WHERE HE CAN HOST RECEPTIONS AND CONDUCT OTHER BUSINESS. DR. LEE IS A PART-OWNER OF THE RESIDENCE. CERTAIN EXPENSES ARE PRORATED BETWEEN THE OWNERS. UNDER DR. LEE'S EMPLOYMENT CONTRACT, HE HAS THE USE OF A MEMBERSHIP AT A COUNTRY CLUB, THOUGH HE PAYS FOR MEALS AND INCIDENTAL EXPENSES. Part I, Line 4a BOTH DR. JERRY LEE AND RICHARD CARTER PARTICIPATED IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN DURING FISCAL YEAR ENDING JUNE 30, 2010; HOWEVER, THEY DID NOT RECEIVE ANY PLAN DISTRIBUTIONS. Part I, Line 5 DR. LEE IS ELIGIBLE EACH YEAR, BASED ON PERFORMANCE METRICS THAT INCLUDE NEW REVENUES, INCREASE IN GROSS REVENUES, AND CHANGES IN THE EXPENSE/REVENUE RATIO OF NATIONAL UNIVERSITY, AND OTHER MEMBERS OF THE NATIONAL UNIVERSITY SYSTEM ("NUS"), FOR AN ANNUAL INCENTIVE AWARD THAT IS CONTRIBUTED TO A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. OTHER AWARD METRICS INCLUDE STUDENT ENROLLMENTS, ENDOWMENTS, AND FACILITIES DEVELOPMENT/UTILIZATION. THE DOLLAR AMOUNT OF THE AWARD DEPENDS ON WHETHER EACH METRIC REACHES A THRESHOLD LEVEL, A TARGET LEVEL, OR A MAXIMUM LEVEL. THE AWARD IS NOT COMPUTED AS A PERCENTAGE OF REVENUE. THE PERFORMANCE METRICS, AWARD LEVELS, AND THE MAXIMUM DOLLAR AMOUNTS ARE SET ANNUALLY IN ADVANCE BY THE BOARD OF TRUSTEES OR ITS DELEGATED COMMITTEE. Form 990, Part VI, Section B, line 11 THE DRAFT FORM 990 WAS DISTRIBUTED TO SENIOR MANAGEMENT. THE FINAL VERSION OF FORM 990 WAS DISTRIBUTED TO THE EXECUTIVE COMMITTEE ON A PASSWORD-PROTECTED WEBSITE, LINKED TO AN E-MAIL SENT TO THE TRUSTEES. Form 990, Part VI, Section B, line 12c THE BOARD OF TRUSTEES HAS PERIODICALLY REVIEWED AND APPROVED (BY A MAJORITY OF DISINTERESTED TRUSTEES) THE BUSINESS TRANSACTIONS WITH TRUSTEES OR THEIR AFFILIATED PROFESSIONAL SERVICE FIRMS. SUCH REVIEWS INCLUDE CONSIDERATION OF DATA ON COMPARABLE SERVICE PROVIDERS. THE INTERESTED TRUSTEES WERE EXCUSED FROM BOARD SESSIONS DURING WHICH THOSE BUSINESS TRANSACTIONS WERE DISCUSSED, AND ABSTAINED FROM VOTING ON SUCH TRANSACTIONS. THE MOST RECENT SUCH REVIEW OCCURRED DURING FISCAL YEAR 2010 - 11. THE CONFLICT OF INTEREST POLICY WAS REVIEWED AND UPDATED BY THE BOARD IN OCTOBER, 2009. QUESTIONNAIRES HAVE BEEN DISTRIBUTED. COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY WAS REVIEWED BY THE BOARD AT THE FEBRUARY, 2011 MEETING. Form 990, Part VI, Section B, line 15 COMPENSATION OF THE CHANCELLOR OF THE organization IS REVIEWED BY THE BOARD AT THE TIME OF HIRING AND AS NECESSARY THEREAFTER. COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS DETERMINED OR REVIEWED BY THE CHANCELLOR. IN BOTH CASES, COMPENSATION IS DETERMINED WITH REGARD TO COMPENSATION PAID TO SENIOR EXECUTIVES OF COMPARABLE NON-PROFIT AND PROPRIETARY INSTITUTIONS IN EDUCATION AND OTHER FIELDS. Form 990, Part VI, Section C, line 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 2C: THE ORGANIZATION DOES HAVE A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. DURING THE FISCAL YEAR 2009 - 2010, THE ORGANIZATION DID NOT CHANGE ITS OVERSIGHT OR SELECTION PROCESS. FORM 990, PART XI, LINE 2C: THE ORGANIZATION DOES HAVE A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. DURING THE FISCAL YEAR 2009-2010, THE ORGANIZATION DID NOT CHANGE ITS OVERSIGHT OR SELECTION PROCESS. FORM 990, Schedule A LINE 11h: Supported Organizations: JOHN F. KENNEDY UNIVERSITY RECEIVED ADMINISTRATIVE AND NON-FINANCIAL SUPPORT. (ii) 94-1610694; (iii) BOX 2; (iv) NO; (v) YES; (vi) YES; (vii) $0. FORM 990, PART VII, COMPENSATION DR. LEE COMPENSATION AS CHANCELLOR OF THE NATIONAL UNIVERSITY SYSTEM ("NUS") PURSUANT TO THE AFFILIATION AGREEMENT, DR. LEE GUIDES THE STRATEGIC DIRECTION OF THE NU AFFILIATES. HE HAS SPEARHEADED THE CREATION AND GROWTH OF THE NUS SINCE ITS INCEPTION IN 2001. DURING THE FISCAL YEAR 2008-2009, HE LED THE NEGOTIATIONS THAT CULMINATED IN JOHN F. KENNEDY UNIVERSITY BECOMING AN AFFILIATE OF THE NUS. THANKS TO THAT AFFILIATION, THE NUS NOW INCLUDES AN INSTITUTION THAT IS ACCREDITED TO AWARD DOCTORAL DEGREES. SEE STATEMENT ON SCHEDULE O THAT REFERENCES SCHEDULE R, FOR A DESCRIPTION OF THE NUS. THE CHANCELLOR'S COMPENSATION IS ALLOCATED AMONG OTHER NUS AFFILIATES. SEE OTHER SCHEDULES IN THIS RETURN FOR FURTHER DETAILS. NONE OF DR. LEE'S COMPENSATION IS ALLOCATED TO ANY OTHER ORGANIZATION OUTSIDE THE NUS. SCHEDULE R, RELATED ORGANIZATIONS NATIONAL UNIVERSITY SYSTEM The National University System ("NUS") is an alliance of educational institutions, serving diverse learners from high school to doctoral programs. The NUS includes 6 independent non-profit organizations exempt under IRC section 501(c)(3): National University, National Polytechnic College of Science, National University Virtual High School, WestMed College, John F. Kennedy University (which offers doctoral programs as well as a law school), and SMG. SMG is a Supporting Organization exempt under IRC section 509(a)(3) which provides support and services to its tax-exempt affiliates in the NUS. Spectrum Pacific Learning Company LLC and National University International LLC are wholly-owned by National University, and are treated as disregarded entities for tax purposes. Another affiliate of the NUS is National University Academy, a charter school. FORM 990, PART VII AND SCHEDULE J, PART II COMPENSATION: RELATED PARTY ALL COMPENSATION FOR CERTAIN OFFICERS AND EMPLOYEES IS ALLOCATED THROUGH SMG. SMG EXISTS TO ALLOCATE SUPPORT AMONGST THE VARIOUS NUS AFFILIATES. As Chancellor of the National University System ("NUS") pursuant to the Affiliation Agreement, Dr. Lee guides the strategic direction of the NU affiliates. The Chancellor has spearheaded the creation and growth of the NUS since its inception in 2001. During this fiscal year 2009-2010, he led the negotiations that culminated in John F. Kennedy University becoming an affiliate of the NUS. Thanks to that affiliation, the NUS now includes an institution that is accredited to award doctoral degrees. The Chancellor is a Trustee of National University and of each other corporate AFFILIATE of the NUS, except National University Academy. Although employed by SMG, some of his compensation is allocated among the following NUS AFFILIATES: National University is the second-largest private nonprofit university in California, with OVER 30 campuses. Serving about 132,000 students IN CLASS (22,000 FTE) and staffed by ABOUT 1,000 EMPLOYEES, it offers more than 100 accredited undergraduate and graduate degrees and credential programs in five schools. Specialized divisions include the NUS Institute for Policy Research and the Center for Integrative Health. Allocation: (B)(i) $150,000; (B)(ii) $93,750; (B)(iii) $122,718; (C) $63,658; (D) $14,500. National Polytechnic College of Science includes an Engineering Technology Division and a Security Management Division. With about 1,000 students and 31 employees, it offers certification in commercial diving at two facilities in Wilmington, CA and San Diego, CA. THIS ORGANIZATION WAS WOUND DOWN BY THE END OF THE TAX YEAR. Allocation: (B)(i) $90,000; (B)(ii) $56,250; (B)(iii) $73,631; (C) $38,195; (D) $8,700. John F. Kennedy University, founded in 1964, offers doctoral, master's, bachelor's degrees, and operates a Law School at its campuses in Pleasant Hill, CA and Berkeley, CA. It has about 1,600 students and ABOUT 225 employees. Allocation: (B)(i) $120,000; (B)(ii) $75,000; (B)(iii) $98,175; (C) $50,926; (D) $11,600. WestMed College, considered together with California Medical Institute, offers certification programs for vocational nurses and paramedics. Its campuses are in San Jose, CA and Merced, CA. It has about 2,600 students IN CLASS and ABOUT 50 employees. Allocation: (B)(i) $90,000; (B)(ii) $56,250; (B)(iii) $73,631; (C) $38,195; (D) $8,700. National University Virtual High School, which together with the charter school National University Academy, constitutes the Division of Pre-College Programs and provides interactive, media-rich educational opportunities to diverse high-school students. It serves about 1,300 students, and has about 5 employees. It has articulation agreements with over 400 schools, allowing its online courses to supplement classroom instruction. Allocation: (B)(i) $30,000; (B)(ii) $18,750; (B)(iii) $24,543; (C) $12,732; (D) $2,900. NATIONAL UNIVERSITY ACADEMY IS A PUBLIC CHARTER SCHOOL THAT BLENDS THE CUTTING EDGE TECHNOLOGY OF AN "ONLINE SCHOOL" WITH THE BENEFITS OF ONSITE PROGRAMS AND HANDS-ON LABS. THE ACADEMY ALSO OFFERS THE CAREER PATH PROGRAM, AN INDEPENDENT STUDY PROGRAM DESIGNED FOR YOUTH AGES 14-25. IT HAS ABOUT 700 STUDENTS IN CLASS AND ABOUT 50 EMPLOYEES. ALLOCATION: None. NATIONAL UNIVERSITY 11355 NORTH TORREY PINES ROAD LA JOLLA CA 920371011 237172306 EDUCATIONAL INSTITUTION CA 501(C)(3) 170(b)(1)(a)(ii) N A NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL 11355 NORTH TORREY PINES ROAD LA JOLLA CA 920371011 562438569 EDUCATIONAL INSTITUTION CA 501(C)(3) 509(a)(2) N A WESTMED COLLEGE FKA CALIFORNIA MEDICAL INSTITUTE 11355 NORTH TORREY PINES ROAD LA JOLLA CA 920371011 900171867 EDUCATIONAL INSTITUTION CA 501(C)(3) 509(a)(2) N A JOHN F KENNEDY UNIVERSITY 100 ELLINWOOD WAY PLEASANT HILL CA 945234817 941610694 EDUCATIONAL INSTITUTION CA 501(C)(3) 509(a)(2) N A NATIONAL POLYTECHNIC COLLEGE OF SCIENCE 3580 AERO COURT SAN DIEGO CA 92123 330681027 EDUCATIONAL INSTITUTION CA 501(C)(3) 170(b)(1)(a)(ii) N A NATIONAL UNIVERSITY ACADEMY 11355 NORTH TORREY PINES ROAD LA JOLLA CA 920371011 352358696 EDUCATIONAL INSTITUTION CA 501(C)(3) 170(b)(1)(a)(ii) N A 0 0 0 0 0 0 0 0 0 1 1 0 1 1 0 1 0 0