2023-02-22T14:51:46-06:00 2022-06-30 FORVIS LLP 14241 DALLAS PARKWAY SUITE 1100 DALLAS TX 75254 990 2021-07-01 742129255 Brazos Higher Education Service Corporation Inc % RICKY TURMAN EVP/COO/CFO BRAZ 2547530915 5609 Crosslake Pkwy Waco TX 76712 RICKY TURMAN EVP/COO/CFO 2547530915 2023-05-15 true Ricky Turman 999009999 Jeanette Verrelli P00742631 9727028262 3 2021 2023-03-07 01:45:13Z Brazos Higher Education RICKY TURMAN 5609 CROSSLAKE PKWY WACO TX 76712 12631577 false X WWW.STUDENTLOANS.COM X 1980 TX TO PROVIDE MANAGEMENT AND ADMINISTRATIVE SUPPORT FOR AFFILIATED STUDENT LOAN ENTITIES. 8 6 35 6 0 0 0 0 10682596 9391057 2411022 2955369 207941 285151 13301559 12631577 129790 132950 0 0 6647996 6471017 0 0 0 1489959 1004822 8267745 7608789 5033814 5022788 90646531 152724525 13422205 11180803 77224326 141543722 TO PROVIDE MANAGEMENT AND ADMINISTRATIVE SUPPORT FOR AFFILIATED STUDENT LOAN ENTITIES. false false 6534915 132950 9559098 BRAZOS HIGHER EDUCATION SERVICE CORPORATION (BHESC) PROVIDES ADMINISTRATIVE AND MANAGEMENT SERVICES FOR AFFILIATED NON-PROFIT ENTITIES BY SERVING AS MASTER SERVICER/ADMINISTRATOR. THESE SERVICES INCLUDED ADMINISTERING STUDENT LOANS WITH OUTSTANDING PRINCIPAL IN EXCESS OF $2.7 BILLION UNDER THE FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP), HEAL, TERI, AND VARIOUS OTHER ALTERNATIVE LOAN PROGRAMS. 6534915 true false false true false false false false false false true false false true true true false true false false false false false false false false false true false true false false false false false false false false false false false false false true true true false false true 22 0 true 35 true false false false false false false false false false false false false X 8 6 false false false false false false false true true false false true true true true true true true true false X RICKY TURMAN EVPCOOCFO 2547530915 5609 CROSSLAKE PKWY WACO TX 76712 X Thomas Ben Litle PRESIDENT/CEO 29.0 11.0 X X 707065 0 68031 Ricky Turman EVP/COO/CFO 29.0 11.0 X X 593678 0 71273 Kelli Uttech SVP/GENERAL COUNSEL 30.0 10.0 X 341729 0 63567 SAMUEL REDDEN SVP/CIO 39.0 1.0 X 285677 0 64574 ANDREW ELLIS VP HUMAN RESOURCES 39.0 1.0 X 252307 0 54867 Tammy Harralson VP/CONTROLLER 30.0 10.0 X 234378 0 57610 JUSTIN GREEN FINANCIAL SERVICES DIRECTOR 40.0 0.0 X 240089 0 48437 RANDALL LARSON VP SALES 39.0 1.0 X 226544 0 55808 JOHN M WRIGHT BUSINESS ANALYTICS DIRECTOR 40.0 0.0 X 222983 0 58797 Darrell Brooks Treasurer 30.0 10.0 X 186941 0 46110 SARAH MACCARTHY VP COMPLIANCE 40.0 0.0 X 184388 0 39656 MILICENT LARSON EXECUTIVE DIR, BRAZOS FDN 1.0 39.0 X 0 165692 46600 DEBRA URIAS VP CUSTOMER RELATIONS 40.0 0.0 X 169540 0 37801 Susan Davis Corporate Secretary End: 06/21 29.0 11.0 X 131448 0 20232 Tiffany Jones Secretary 29.0 11.0 X 84031 0 18574 Vicky Smith Assistant Secretary 30.0 10.0 X 77501 0 21878 Robert B Chambers DIRECTOR 1.0 8.0 X 0 0 0 John Hatchel DIRECTOR 1.0 8.0 X 0 0 0 dr terry maness DIRECTOR 1.0 8.0 X 0 0 0 John Perry DIRECTOR 1.0 8.0 X 0 0 0 Dr Joseph Velez DIRECTOR 1.0 8.0 X 0 0 0 Greta Watson DIRECTOR 1.0 8.0 X 0 0 0 3938299 165692 773815 18 true true false FORVIS LLP 510 N VALLEY MILLS DRIVE WACO TX 767106075 AUDIT AND TAX 138900 BWC EDUCATION GROUP LLC 9635 LOOP 340 WACO TX 76706 CONSTR. CONTRACTOR 1377713 RBC CAPITAL MARKETS 30 HUDSON STREET JERSEY CITY NJ 07302 UNDERWRITER 303302 3 0 Operating Income 551114 7958143 7958143 Beneficial Interest (M&O) 551114 1105000 1105000 Commission Income 551114 327914 327914 9391057 2955369 2955369 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3RD PARTY MARKETING FEE INCOME 551114 2210 2210 FINANCIAL ADVISORY FEES 551114 158100 158100 SETTLEMENT INCOME 551114 117110 117110 7731 7731 285151 12631577 9559098 3072479 132950 132950 0 0 0 3512143 3160929 351214 151680 136512 15168 2248959 2024063 224896 7208 6487 721 269111 242200 26911 281916 253724 28192 18225 16403 1823 69019 69019 132925 132925 55000 55000 0 0 105604 105604 36 36 155440 139895 15543 168226 151403 16823 0 97764 87988 9776 12782 11504 1278 0 5715 5144 572 178 160 18 0 21809 19628 2181 90317 81285 9032 Special Event Expense 512 461 51 Administrative Expense 53856 48470 5386 . 0 . 0 17414 15673 1741 7608789 6534915 1073874 0 X 2986887 6045669 19786251 18283506 0 0 154070 73584 0 0 0 0 0 0 0 0 78993 27321 2781361 61094 658634 2720267 4390744 84904467 7967184 97349 0 0 0 0 54623768 40572362 90646531 152724525 4454384 4138796 0 0 3518548 2541546 0 0 0 0 0 0 811300 0 0 0 4637973 4500461 13422205 11180803 X 77224326 141543722 0 0 0 0 77224326 141543722 90646531 152724525 X 5022788 -3366783 62663391 X false true X true false X 0 0 0 0 0 0 9475058 8990511 8270805 10890537 9559098 47186009 0 0 0 9475058 8990511 8270805 10890537 9559098 47186009 0 0 0 47186009 1135933 823250 946566 2775824 2955369 8636942 0 1135933 823250 946566 2775824 2955369 8636942 0 0 0 0 0 0 634777 0 1753 0 117110 753640 11245768 9813761 9219124 13666361 12631577 56576591 0.83402 0.85364 0.15266 0.11621 X false false false false false false false false true 55000 55000 false SCHEDULE C, PART II-B, LINE 1I LOBBYING ACTIVITIES: OUTSIDE LOBBYISTS WERE HIRED TO ADVISE BRAZOS ON APPROPRIATE STRATEGIES AND ACTIONS REGARDING LEGISLATION THAT WOULD HAVE A HARMFUL IMPACT ON BRAZOS INTEREST. IN ADDITION, LOBBYISTS WERE CHARGED WITH MONITORING THE INTRODUCTION AND THE PROGRESS ON LEGISLATION/RULES THAT REQUIRED BRAZOS COMPLIANCE IN ALL AREAS OF THE BUSINESS. LEGISLATION ISSUES INCLUDED BUDGET RECONCILIATION, REAUTHORIZATION OF THE HIGHER EDUCATION ACT, TAX-EXEMPT ISSUES AND PRIVACY ISSUES. 535000 535000 2002098 16684 1985414 244263 44410 199853 0 2720267 Accrued Investment Interest 846451 DUE FROM AFFILIATES 33789887 OTHER ASSET 5936024 40572362 0 Prefunded Benefit Payable 4500461 4500461 X SCHEDULE D, PART X, LINE 2 LIABILITY FOR UNCERTAIN TAX POSITIONS: BHESC IS A NOT-FOR-PROFIT PUBLIC BENEFIT CORPORATION THAT IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(A) OF THE INTERNAL REVENUE CODE AS AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3). THE COMPANY IS ALSO EXEMPT FROM STATE INCOME TAX. INCOME WHICH IS NOT RELATED TO ITS EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL INCOME TAXES. THE COMPANY HAD NO NET UNRELATED BUSINESS INCOME FOR THE YEARS ENDED JUNE 30, 2022 AND 2021. AS SUCH, NO PROVISION FOR FEDERAL OR STATE INCOME TAXES HAS BEEN PROVIDED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. THE COMPANY FILES FEDERAL INFORMATION RETURNS IN THE UNITED STATES. THE COMPANY MAY BE SUBJECT TO EXAMINATIONS FOR THE TAX YEARS ENDED JUNE 30, 2019 AND LATER BY THE INTERNAL REVENUE SERVICE. THE COMPANY IS NOT CURRENTLY UNDER EXAMINATION FOR ANY OPEN TAX YEAR. THE COMPANY FOLLOWS THE ACCOUNTING STANDARD RELATED TO THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. 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 HAS NO UNCERTAIN TAX POSITIONS. true Waco Scottish Rite Charitable Foundation 2801 West Waco Drive Waco TX 76707 742581354 501(C)(3) 15000 Further Exempt Purpose of Recipient Texas State Technical College 3801 Campus Drive Waco TX 767051695 741646989 GOVT 25000 Contribution to Endowment Baylor University One Bear Place 97043 Waco TX 767987043 741159753 501(C)(3) 50000 Contribution to endowment McLennan Community College Foundation 1400 College Drive Waco TX 76708 741541260 501(C)(3) 40100 Contribution to endowment 4 SCHEDULE I, PART I, LINE 2 PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS IN THE U.S.: THE ORGANIZATION PROVIDES DONATIONS TO OTHER CHARITABLE AND GOVERNMENTAL ORGANIZATIONS. THESE ARE SIMPLE CHARITABLE CONTRIBUTIONS TO THE OTHER ORGANIZATIONS, SO THERE IS NO NEED TO MONITOR THE USE OF THE FUNDS. X X X true false false false false false false true false Thomas Ben Litle PRESIDENT/CEO 591764 56759 58542 64143 3888 775096 Ricky Turman EVP/COO/CFO 511102 49918 32658 64587 6686 664951 Kelli Uttech SVP/GENERAL COUNSEL 308473 32684 572 60468 3099 405296 SAMUEL REDDEN SVP/CIO 241192 24970 19515 61236 3338 350251 ANDREW ELLIS VP HUMAN RESOURCES 227935 23745 627 53606 1261 307174 Tammy Harralson VP/CONTROLLER 199480 21115 13783 51302 6308 291988 RANDALL LARSON VP SALES 204499 22045 0 50051 5757 282352 Darrell Brooks Treasurer 163227 17092 6622 41194 4916 233051 Susan Davis Corporate Secretary End: 06/21 48217 2500 80731 20076 156 151680 JUSTIN GREEN FINANCIAL SERVICES DIRECTOR 209278 22021 8790 45331 3106 288526 JOHN M WRIGHT BUSINESS ANALYTICS DIRECTOR 201543 21440 0 44956 13841 281780 SARAH MACCARTHY VP COMPLIANCE 163199 17746 3443 35918 3738 224044 DEBRA URIAS VP CUSTOMER RELATIONS 147806 16338 5396 32885 4916 207341 MILICENT LARSON EXECUTIVE DIR, BRAZOS FDN 148155 17537 0 33905 12695 212292 SCHEDULE J, PART I, LINE 4A Severance Payment: SEVERANCE IS A VOLUNTARY AGREEMENT THAT SET FORTH AGREED UPON TERMS. THESE TERMS INCLUDE BEING AN EMPLOYEE OF BRAZOS THROUGH A SPECIFIED TERMINATION DATE, CONTINUING TO PERFORM DUTIES OF EMPLOYMENT DURING THE PERIOD BETWEEN APPLICATION AND SPECIFIED TERMINATION DATE, COOPERATING WITH USUAL AND CUSTOMARY SEPARATION/TERMINATION PROCESS OF BRAZOS, EXECUTING A VALID "RELEASE OF WAIVER" TO DELIVER TO THE CEO, AND NOT REVOKING THE RELEASE AND WAIVER WITHIN THE ALLOWABLE TIME. SEVERANCE PAY IS BASED ON POSITION OF EMPLOYMENT, BASE PAY, AND YEARS OF SERVICE. THE PAYMENT WILL BE PAID IN A LUMP SUM WITHIN 60 DAYS OF THE DATE THAT THE EMPLOYEE FILES THEIR RELEASE AND WAIVER. SUSAN DAVIS STEPPED DOWN AS SECRETARY DURING THE FISCAL YEAR 2021 AND RECEIVED A SEVERANCE PAYMENT OF $74,075. SCHEDULE J, PART I, LINE 7 NONFIXED PAYMENTS: WHILE PART OF THE BONUSES GIVEN TO EMPLOYEES ARE CALCULATED USING A FIXED FORMULA, THE OTHER PART OF THE BONUS IS CALCULATED BY A SET PERCENTAGE DETERMINED AT THE DISCRETION OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 11B PROCESS FOR REVIEWING FORM 990: THE FORM 990 IS PROVIDED TO SENIOR MANAGEMENT FOR REVIEW. AFTER THIS 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. COMMENTS OR QUESTIONS ARE INVESTIGATED AND RESOLVED OR DISCLOSED TO THE BOARD. UPON COMPLETION OF THE PROCESS, THE RETURN IS FILED. FORM 990, PART VI, SECTION B, LINE 12C PROCESS FOR MONITORING COMPLIANCE WITH CONFLICT OF INTEREST POLICY: THE COMPLIANCE DEPARTMENT PREPARES AND DISTRIBUTES A CONFLICT OF INTEREST QUESTIONNAIRE TO ALL BOARD MEMBERS AND EMPLOYEES ANNUALLY. THE COMPLIANCE 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. IF A CONFLICT IS FOUND TO EXIST, THE CONFLICTED BOARD MEMBER ABSTAINS FROM VOTING. FORM 990, PART VI, SECTION B, LINE 15A & 15B PROCESS FOR DETERMINING COMPENSATION: BRAZOS HIGHER EDUCATION SERVICE CORPORATION'S BOARD OF DIRECTORS USES AN INDEPENDENT THIRD PARTY TO REVIEW THE COMPENSATION OF THE PRESIDENT, OFFICERS, AND KEY EMPLOYEES. THE THIRD PARTY REVIEWS EACH ELEMENT OF COMPENSATION TO ENSURE IT IS IN COMPLIANCE WITH IRS GUIDELINES AS WELL AS PERFORMS COMPARABILITY STUDIES TO DETERMINE WHETHER SALARIES ARE REASONABLE. THE MOST RECENT REVIEW WAS CONDUCTED DURING FISCAL YEAR 2021 BY AN INDEPENDENT CONSULTANT AND IS DOCUMENTED IN THE BOARD'S MEETING MINUTES. FORM 990, PART VI, SECTION C, LINE 19 PROCESS TO MAKE DOCUMENTS AVAILABLE: THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VI, SECTION A, LINE 1A DELEGATION OF AUTHORITY: THE EXECUTIVE COMMITTEE SHALL CONSIST OF FIVE MEMBERS OF THE BOARD OF DIRECTORS. THE EXECUTIVE COMMITTEE SHALL, BETWEEN MEETINGS OF THE BOARD, HAVE ADMINISTRATIVE CONTROL OVER ALL MATTERS OF THE CORPORATION FORM 990, PART XI, LINE 9 OTHER CHANGES IN FUND BALANCES: ESTATE DISTRIBUTION $ (580,000) ESTATE CONTRIBUTION $ 63,243,391 ----------------- TOTAL $ 62,663,391 BRAZOS ACADEMIC LENDING CORPORATION 5609 Crosslake Pkwy WACO TX 76712 742540458 STUD LOANS TX 501(C)(3) 10 NA true ACAPITA EDUCATION FINANCE CORPORATION 5609 Crosslake Pkwy WACO TX 76712 742542435 STUD LOANS TX 501(C)(3) 10 NA true BOSQUE HIGHER EDUCATION AUTHORITY INC 5609 Crosslake Pkwy WACO TX 76712 742534099 STUD LOANS TX 501(C)(3) 10 NA true BRAZOS HIGHER EDUCATION AUTHORITY INC 5609 Crosslake Pkwy WACO TX 76712 742099402 STUD LOANS TX 501(C)(3) 10 NA true BRAZOS EDUCATION LOAN AUTHORITY INC 5609 CROSSLAKE PKWY WACO TX 76712 203868073 STUD LOANS TX 501(C)(3) 10 NA true BRAZOS STUDENT FINANCE CORPORATION 5609 CROSSLAKE PKWY WACO TX 76712 742356109 STUD LOANS TX 501(C)(3) 10 NA true BRAZOS EDUCATION FOUNDATION INC 5609 Crosslake Pkwy WACO TX 76712 264562436 GRANT MAKING TX 501(C)(3) 7 BHESC true BRAZOS EDUCATION LENDING CORPORATION 5609 CROSSLAKE PKWY WACO TX 76712 203870081 STUD LOANS TX 501(C)(3) 10 NA true FEDERATED STUDENT FINANCE CORPORATION 5609 CROSSLAKE PKWY WACO TX 76712 742536239 STUD LOANS TX 501(C)(3) 10 NA true BRAZOS ASSET CORPORATION (BAC) 5609 CROSSLAKE PKWY WACO TX 76712 300835799 INVESTMENT TX SEE PART VII C-CORPORATION -4599 93090 1.00000 true false true true true false false false false false false false true false false false false false false false BRAZOS EDUCATION FOUNDATION B 579000 CASH ACAPITA EDUCATION FINANCE CORPORATION C 13448385 CASH BRAZOS EDUCATION LOAN AUTHORITY INC C 48711006 CASH BOSQUE HIGHER EDUCATION AUTHORITY C 124000 CASH BRAZOS HIGHER EDUCATION AUTHORITY INC D 17954424 CASH BRAZOS STUDENT FINANCE CORPORATION D 12712970 CASH BRAZOS EDUCATION LENDING CORPORATION D 3122493 CASH BRAZOS HIGHER EDUCATION AUTHORITY INC L 1883885 CASH BRAZOS STUDENT FINANCE CORPORATION L 627526 CASH FEDERATED STUDENT FINANCE CORPORATION L 69729 CASH BRAZOS EDUCATION LOAN AUTHORITY INC L 5051681 CASH BOSQUE HIGHER EDUCATION AUTHORITY L 272442 CASH FORM 990, SCHEDULE R, PART IV IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS CORP OR TRUST: NAME OF RELATED ORGANIZATION: BRAZOS ASSET CORP PRIMARY ACTIVITY: FINANCE TRANS INVOLVING CREATION/LIQUIDATION/OWNERSHIP OF FINANCIAL ASSETS DIRECT CONTROLLING ENTITY: BRAZOS HIGHER EDUCATION SERVICE CORPORATION