2021-05-17T14:51:50-05:00 2020-06-30 910189318 MOSS ADAMS LLP 4747 EXECUTIVE DR SUITE 1300 SAN DIEGO CA 92121 990 2019-07-01 237421224 CITY UNIVERSITY OF SEATTLE CITY 2062394911 521 WALL STREET NO 100 SEATTLE WA 98121 DAVE C LAWRENCE VICE CHANCELLOR, FINANCE 2062394911 2021-05-17 1 PATRICIA J MAYER P00188643 8586271400 2019 2022-09-23 18:48:47Z RANDY FRISCH 521 WALL STREET NO 100 SEATTLE WA 98121 42537894 0 X WWW.CITYU.EDU X 1973 WA CITY UNIVERSITY OF SEATTLE IS A PRIVATE, NOT-FOR-PROFIT INSTITUTION OF HIGHER EDUCATION. 19 18 704 40 0 0 164811 4071951 39623516 37900032 199202 288698 373963 277213 40361492 42537894 297641 880154 0 0 24766217 23565066 0 0 0 14593353 14779727 39657211 39224947 704281 3312947 35169500 34780383 18833562 15576059 16335938 19204324 X FOUNDED IN 1973, CITY UNIVERSITY OF SEATTLE'S MISSION IS TO CHANGE LIVES FOR GOOD BY OFFERING HIGH QUALITY AND RELEVANT LIFELONG EDUCATION TO ANYONE WITH THE DESIRE TO LEARN. CITY UNIVERSITY'S VISION IS TO PROVIDE UNDERSERVED INDIVIDUALS AND COMMUNITIES AROUND THE WORLD ACCESS TO HIGH QUALITY, LIFELONG EDUCATION THROUGH A NETWORK OF LOCAL AND INTERNATIONAL PARTNERSHIPS. TO FULFILL ITS MISSION AND WORK TOWARD ACHIEVING ITS VISION, CITY UNIVERSITY OF SEATTLE DETERMINES TO BE FLEXIBLE: DESIGN AND DELIVER PROGRAMS AND SERVICES TO BE CONVENIENT TO STUDENTS; ACCESSIBLE: PROVIDE EDUCATIONAL OPPORTUNITIES TO ANYONE, ANYWHERE; INNOVATIVE: CONTINUALLY CREATE NEW EDUCATIONAL OPPORTUNITIES; RELEVANT: WHAT IS TAUGHT TODAY CAN BE APPLIED TOMORROW; AND GLOBAL: ACT LOCALLY AND THINK GLOBALLY.CITY UNIVERSITY OF SEATTLE IS ACCREDITED BY THE NORTHWEST COMMISSION ON COLLEGES AND UNIVERSITIES (NWCCU), A REGIONAL BODY APPROVED BY THE U.S. DEPARTMENT OF EDUCATION. 0 0 24710829 37900032 CITY UNIVERSITY OF SEATTLE IS A PRIVATE, NOT-FOR-PROFIT UNIVERSITY WITH APPROXIMATELY 5,760 ENROLLMENTS DURING THE YEAR ENDED JUNE 30, 2020. ALL GRANTS UNDER FINANCIAL AID GO TO STUDENTS TO FINANCE THEIR EDUCATION. THE UNIVERSITY IS COMPRISED OF THE SCHOOL OF MANAGEMENT, THE GORDON ALBRIGHT SCHOOL OF EDUCATION, THE DIVISION OF ARTS AND SCIENCES, THE SCHOOL OF APPLIED LEADERSHIP, AND THE DIVISION OF WASHINGTON ACADEMY OF LANGUAGES. HEADQUARTERED IN THE PACIFIC NORTHWEST, CITY UNIVERSITY OF SEATTLE OFFERS PROFESSIONAL CERTIFICATION, ASSOCIATES, BACHELORS, MASTER'S, AND DOCTORAL PROGRAMS. CLASSES ARE HELD AT LOCATIONS THROUGHOUT WASHINGTON, CANADA, MEXICO, GREECE, SWITZERLAND, THE CZECH REPUBLIC, VIETNAM, AND CHINA. 880154 880154 0 CITY UNIVERSITY OF SEATTLE BELIEVES THAT FUNDING SHOULD NOT BE A BARRIER TO EDUCATION. THE UNIVERSITY HAS MULTIPLE SCHOLARSHIP PROGRAMS AVAILABLE FOR STUDENTS WHO ARE LOW-INCOME MINORITIES, UNDERREPRESENTED, EXPERIENCING ECONOMIC HARDSHIP, OR DEPENDENT ON MERIT-BASED SCHOLARSHIPS. CITYU HAS AWARDED MORE THAN $5.5 MILLION IN SCHOLARSHIPS TO DATE. CITY UNIVERSITY OF SEATTLE CONTINUES THE LAID-OFF WORKER AND TRANSFER SCHOLARSHIP PROGRAM TO ASSIST STUDENTS THAT WERE IMPACTED BY RECENT POOR ECONOMIC CONDITIONS. CITY UNIVERSITY OF SEATTLE ALSO ADDED INTERNATIONAL STUDENT SCHOLARSHIPS FOR STUDENTS WITH ECONOMIC NEED, NEW STUDENTS AND TRANSFER STUDENTS. 25590983 1 1 0 0 0 0 0 1 0 0 1 0 0 0 1 1 1 1 1 1 1 0 1 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 67 0 1 704 1 0 1 CA 0 0 0 0 0 0 0 0 0 0 X 19 18 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 WA X CHRISTOPHER BRYAN CHIEF FINANCIAL OFFICER 2062394911 521 WALL STREET NO 100 SEATTLE WA 98121 RANDY FRISCH PRESIDENT 50.00 X 367125 0 33259 BRYAN CHRISTOPHER CHIEF FINANCIAL OFFICER 40.00 X 156567 0 18480 CARNZ SCOTT PROVOST 40.00 X 147802 0 9082 BROWN KEVIN DIRECTOR, INFO TECHNOLOGY 40.00 X 154971 0 30453 MECHAM MELISSA VICE PRESIDENT 40.00 X 152479 0 20425 O'LEARY JANET DIRECTOR, HUMAN RESOURCES 40.00 X 124437 0 18858 CHUNG WEON SAM ACADEMIC PROGRAM DIRECTOR 40.00 X 123379 0 12091 CARLOS RODRIGUEZ TRUSTEE 3.00 X 0 0 0 DAN PITTARD TRUSTEE 3.00 X 0 0 0 DAVE LAWRENCE VICE CHANCELLOR, FINANCE 3.00 X 0 0 0 DR DONALD KRIPKE TRUSTEE (THRU 10/2019) 3.00 X 0 0 0 DR E LEE RICE TRUSTEE 3.00 X 0 0 0 DR ERLINDA MARTINEZ TRUSTEE 3.00 X 0 0 0 DR MICHAEL CUNNINGHAM CHANCELLOR, TRUSTEE 10.00 X X 0 0 0 GERALD CZARNECKI TRUSTEE 3.00 X 0 0 0 HAROLD GREENBERG TRUSTEE 3.00 X 0 0 0 HIEP QUACH TRUSTEE 3.00 X 0 0 0 JAY STONE TRUSTEE (THRU 10/2019) 3.00 X 0 0 0 JEANNE CONNELLY TRUSTEE 3.00 X 0 0 0 JOANNE PASTULA TRUSTEE 3.00 X 0 0 0 KIM FOLSOM TRUSTEE 3.00 X 0 0 0 KIMBERLY MITCHELL TRUSTEE (THRU 1/2020) 3.00 X 0 0 0 MICHAEL R MCGILL TRUSTEE 3.00 X 0 0 0 MICHELLE BELLO ASSOCIATE VICE CHANCELLOR, FINANCE 3.00 X 0 0 0 REBECCA HENDERSON TRUSTEE (THRU 4/2020) 3.00 X 0 0 0 RICHARD CHISHOLM TREASURER, TRUSTEE 3.00 X X 0 0 0 RUTHANN HEINRICH CHAIR, TRUSTEE 3.00 X X 0 0 0 STACY ALLISON TRUSTEE 3.00 X 0 0 0 THOMAS PAGE TRUSTEE 3.00 X 0 0 0 THOMAS TOPUZES SECRETARY, TRUSTEE 3.00 X X 0 0 0 TOM CLEVINGER VICE CHAIR, TRUSTEE 3.00 X X 0 0 0 WH KNIGHT JR TRUSTEE 3.00 X 0 0 0 1226760 0 142648 14 0 1 0 SYSTEM MANAGEMENT GROUP 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 ADMIN & BACK OFFICE SUPPORT 2683764 SIERRA-CEDAR INC 1255 ALDERMAN DRIVE ALPHARETTA GA 30005 SERVER MANAGEMENT 448645 SYNOPTEK LLC 412 E PARKCENTER BLVD SUITE 300 BOISE ID 83706 NETWORK MANAGEMENT 200056 ORACLE AMERICA INC 500 ORACLE PARKWAY REDWOOD SHORES CA 94065 SYSTEM TECH SUPPORT SERVICES 128879 OATRIDGE SECURITY GROUP 2111 SOUTH 90TH STREET TACOMA WA 98444 CYBER SECURITY 127796 7 500000 3526462 45489 4071951 EDUCATIONAL SERVICES 611310 37900032 37900032 37900032 288698 288698 5232 0 5232 5232 5232 271981 271981 271981 42537894 37900032 0 565911 741004 741004 139150 139150 594644 594644 20462196 14580736 5881460 556050 415084 140966 476351 163579 312772 1475825 1142816 333009 97047 97047 109905 109905 839807 530015 309792 2578908 116266 2462642 704939 419490 285449 1296472 7546 1288926 5568210 4919808 648402 509462 295104 214358 35857 34270 1587 45964 45964 1420385 775719 644666 22499 22499 INSTRUCTIONAL MATERIALS 534720 520766 13954 BAD DEBT EXPENSE 490903 490903 STUDY/TOUR SEMINAR/PROG 126003 126003 CREDIT CARD MERCHANT FE 4763 4763 393883 167961 225922 39224947 25590983 13633964 0 6130390 8369243 9748872 6247800 891718 1153204 968530 877708 574519 666238 34104022 28741726 6228665 5362296 9817288 11325881 809518 778013 35169500 34780383 2884878 2720065 2990701 989698 5659354 4974607 7298629 6891689 18833562 15576059 X 11511878 15030124 4824060 4174200 16335938 19204324 35169500 34780383 X 3312947 -63045 -381516 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 237000 0 237000 X 0 20498420 19599644 898776 13605602 9142082 4463520 5362296 DEFERRED RENT 2612464 FINANCED LEASEHOLD IMPROVEMENT PAYABLE 2668671 PAYABLE AFFILIATE 1610554 6891689 X 41213179 -63045 -381516 -444561 41657740 880154 880154 42537894 38344793 0 38344793 880154 880154 39224947 PART III, LINE 4: SMALL ART COLLECTION DONATED BY FORMER UNIVERSITY STUDENT AND INSTRUCTOR FOR PUBLIC DISPLAY SO ALL STUDENTS CAN ENJOY THE ART. PART X, LINE 2: INCOME TAX BENEFIT AND /OR LIABILITIES ARE RECOGNIZED FOR INCOME TAX POSITIONS THAT WILL MORE-LIKELY-THAN-NOT BE SUSTAINED UPON EXAMINATION BY TAXING AUTHORITIES. THE UNIVERSITY HAS ANALYZED THE TAX POSITIONS TAKEN IN ITS FILLINGS WITH THE INTERNAL REVENUE SERVICES (IRS). THE UNIVERSITY BELIEVES THAT ITS INCOME TAX FILLING POSITIONS WILL BE SUSTAINED UPON EXAMINATION AND DOES NOT ANTICIPATE ANY ADJUSTMENTS THAT WOULD RESULT IN A MATERIAL ADVERSE EFFECT ON THE UNIVERSITY'S FINANCIAL CONDITION, CHANGES IN NET ASSETS, OR CASH FLOWS. ACCORDINGLY, THE UNIVERSITY HAS NOT RECORDED ANY RESERVES, OR RELATED ACCRUALS FOR INTEREST AND PENALTIES FOR UNCERTAIN INCOME TAX POSITIONS AS JUNE 30, 2020 AND 2019. MANAGEMENT BELIEVES THE UNIVERSITY IS ALSO EXEMPT FROM STATE INCOME TAXES IN ALL STATES IN WHICH IT OPERATES, EXCEPT TO THE EXTENT OF UNRELATED BUSINESS TAXABLE INCOME. PART XI, LINE 2D - OTHER ADJUSTMENTS: FOREIGN CURRENCY TRANSLATION -385,587. CHANGE IN BENEFICIAL INTEREST 4,071. PART XI, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIP EXPENSE 880,154. PART XII, LINE 4B - OTHER ADJUSTMENTS: SCHOLARSHIP EXPENSE 880,154. 1 1 1 1 1 1 1 0 0 0 1 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 ADVERTISING PLACED IN MEDIA AND ON NU EXTERNAL FACING WEBSITE GENERALLY CONTAIN THE FOLLOWING STATEMENT: ADMISSION IS OPEN TO QUALIFIED APPLICANTS WITHOUT REGARD TO RACE, RELIGION, SEX, AGE, PHYSICAL DISABILITY, OR ETHNIC ORIGIN. SCHEDULE E, PART I, LINE 5 GORDON ALBRIGHT SCHOOL OF EDUCATION DIVERSITY SCHOLARSHIPS PROMOTE ETHNIC DIVERSITY IN OUR STUDENT BODY AS AN IMPORTANT PART OF THE OVERALL LEARNING EXPERIENCE AT CITY UNIVERSITY OF SEATTLE. WE ALSO WORK HARD TO EDUCATE AND FACILITATE THE PLACEMENT OF DIVERSE TEACHERS IN CLASSROOMS TO SERVE OUR COMMUNITIES. 0 EAST ASIA AND THE PACIFIC 0 3 PROGRAM SERVICES STUDENT RECRUITING, PROGRAM MANAGEMENT AND INSTRUCTION 363016 EUROPE 0 0 PROGRAM SERVICES RECRUITING/TRADE FAIRS, STUDENT MOBILITY SERVICES, INSTRUCTION 28806 NORTH AMERICA 4 23 PROGRAM SERVICES BRANCH LOCATIONS IN CANADA, INSTRUCTION AND PROGRAM MANAGEMENT 4560589 NORTH AMERICA 4 4 PROGRAM SERVICES STUDENT RECRUITING, PROGRAM MANAGEMENT AND INSTRUCTION 230409 SOUTH ASIA 0 3 PROGRAM SERVICES STUDENT RECRUITING 110091 EAST ASIA AND THE PACIFIC 0 0 GRANTMAKING PROGRAMS 12002 NORTH AMERICA 0 0 GRANTMAKING PROGRAMS 126348 EUROPE 0 0 GRANTMAKING PROGRAMS 800 8 33 0 0 8 33 5432061 0 5432061 GRANTS TO INDIVIDUALS (MERIT-BASED) NORTH AMERICA - CANADA AND MEXICO, BUT NOT THE UNITED STATES 223 69348 SCHOLARSHIP N/A FMV GRANTS TO INDIVIDUALS (NEED-BASED) NORTH AMERICA 80 57000 SCHOLARSHIP N/A FMV GRANTS TO INDIVIDUALS EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 4 12002 SCHOLARSHIP N/A FMV GRANTS TO INDIVIDUALS EUROPE (INCLUDING ICELAND & GREENLAND) 2 800 SCHOLARSHIP N/A FMV 0 0 0 0 0 0 PART I, LINE 2: SCHOLARSHIP FUNDS ARE AWARDED TO PROVIDE ASSISTANCE TO STUDENTS AT THE CITY UNIVERSITY OF SEATTLE LOCATIONS IN CANADA AND CHINA. PART I, LINE 3: THE ACCRUAL METHOD WAS USED TO ACCOUNT FOR PROGRAM SERVICES AND COST FOR INVESTMENTS. PART III ACCOUNTING METHOD: PART III: METHOD OF ACCOUNTING ACCRUAL BASIS 1 SCHOLARSHIPS, TUITION WAIVERS 1014 0 741004 FMV TUITION IS REDUCED BY THE AMOUNT OF INDIVIDUAL SCHOLARSHIPS AWARDED TO STUDENTS. PART I, LINE 2: CITY UNIVERSITY OF SEATTLE PROVIDES SCHOLARSHIP GRANTS TO STUDENTS IN THE FORM OF TUITION REDUCTION. MONITORING IS DONE INTERNALLY TO ENSURE THE ACCOUNTS ARE CREDITED PROPERLY. X X 0 0 X X X X 0 0 0 0 0 0 0 1 0 RANDY FRISCH PRESIDENT 291750 0 22500 0 52875 0 14700 0 18559 0 400384 0 0 0 BRYAN CHRISTOPHER CHIEF FINANCIAL OFFICER 156567 0 0 0 0 0 8769 0 9711 0 175047 0 0 0 CARNZ SCOTT PROVOST 147802 0 0 0 0 0 0 0 9082 0 156884 0 0 0 BROWN KEVIN DIRECTOR, INFO TECHNOLOGY 154971 0 0 0 0 0 10443 0 20010 0 185424 0 0 0 MECHAM MELISSA VICE PRESIDENT 152479 0 0 0 0 0 10600 0 9825 0 172904 0 0 0 PART I, LINE 1A FIRST CLASS TRAVEL IS MADE AVAILABLE TO BOARD MEMBERS IF THE FLIGHT IS OVER 3 HOURS. THIS IS NOT INCLUDED AS TAXABLE INCOME TO SUCH BOARD MEMBERS IF UTILIZED. UNDER RANDY FRISCH'S EMPLOYMENT CONTRACT, HE WAS REIMBURSED FOR CERTAIN EXPENSES FOR HOUSING RECEPTIONS AND CONDUCTING UNIVERSITY RELATED BUSINESS IN HIS RESIDENCE. SUCH AMOUNT IS INCLUDED AS TAXABLE COMPENSATION. PART I, LINE 7 OFFICERS AND KEY EMPLOYEES ARE ELIGIBLE FOR BONUSES. BONUSES ARE AWARDED WITHIN A SPECIFIED RANGE IN THE DISCRETION OF THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES AND ARE BASED ON ACHIEVING GOALS. FORM 990, PART VI, SECTION B, LINE 11B THE 990 IS REVIEWED BY THE CFO, PRESIDENT, AND THE BOARD. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES HAS ANNUALLY 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 COLLECTED BY UNIVERSITY COUNSEL. THE INTERESTED TRUSTEES WERE EXCUSED FROM BOARD SESSIONS DURING WHICH THOSE BUSINESS TRANSACTIONS WERE DISCUSSED AND DID NOT PARTICIPATE IN VOTING ON SUCH TRANSACTIONS. QUESTIONNAIRES ARE DISTRIBUTED EVERY JANUARY. COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY IS MONITORED BY UNIVERSITY COUNSEL AND WAS REVIEWED BY THE BOARD DURING THE YEAR ENDED JUNE 30, 2020. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION OF THE PRESIDENT OF THE UNIVERSITY IS REVIEWED BY THE BOARD AT THE TIME OF HIRING AND AS NECESSARY THEREAFTER. COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS REVIEWED BY THE BOARD (OR ITS COMMITTEE). 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. THE PROCESS IS DOCUMENTED AND WAS LAST COMPLETED IN JUNE 2020. FORM 990, PART VI, SECTION C, LINE 19 COPIES OF THE ANNUAL TAX RETURN AND AUDITED FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST AS NOTED IN THE ANNUAL COURSE CATALOG WHICH IS AVAILABLE ELECTRONICALLY ON THE UNIVERSITY WEBSITE OR IN HARD COPY. GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY ARE ALSO AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: FOREIGN CURRENCY TRANSLATION -385,587. CHANGE IN BENEFICIAL INTERESTS 4,071. SYSTEM MANAGEMENT GROUP 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 201269904 PROVIDE ADMINISTRATIVE SERVICES TO AFFILIATED INSTITUTIONS CA 501(C)(3) LINE 12B, II N/A 1 NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 562438569 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 10 N/A 1 NORTHCENTRAL UNIVERSITY 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 900171867 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 10 N/A 1 JOHN F KENNEDY UNIVERSITY 100 ELLINWOOD WAY PLEASANT HILL CA 945234817 941610694 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 2 N/A 1 SPECTRUM PACIFIC LEARNING INC 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 453996682 INACTIVE CA 501(C)(3) LINE 10 N/A 1 NATIONAL UNIVERSITY 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 237172306 EDUCATIONAL INSTITUTION CA 501(C)(3) LINE 2 N/A 1 NATIONAL UNIVERSITY INTERNATIONAL INC 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 453997908 INACTIVE CA 501(C)(3) LINE 2 N/A 1 NCU INC 8667 E HARTFORD DR STE 100 SCOTTSDALE AZ 85255 832721678 HOLDING COMPANY CA SYSTEM MANAGEMENT GROUP C 0 INNOVA MANAGEMENT GROUP INC 8667 E HARTFORD DR STE 100 SCOTTSDALE AZ 85255 010898917 HOLDING COMPANY AZ NCU HOLDINGS LLC C 0 NATIONAL EDUCATION PARTNERS INC 8667 E HARTFORD DR STE 100 SCOTTSDALE AZ 85255 860930587 SERVICE PROVIDER AZ INNOVA MANAGEMENT GROUP INC C 0 NCU HOLDINGS LLC 8667 E HARTFORD DR STE 100 SCOTTSDALE AZ 85255 263309860 HOLDING COMPANY DE NCU INC C 0 0 0 1 0 1 0 0 0 0 0 0 0 1 1 1 1 1 0 0 NATIONAL UNIVERSITY C 500000 CASH NATIONAL UNIVERSITY P 1821059 CASH NATIONAL UNIVERSITY M 3418627 CASH NATIONAL UNIVERSITY P 6300000 CASH NATIONAL UNIVERSITY E 1379383 CASH SYSTEM MANAGEMENT GROUP E 231114 CASH SYSTEM MANAGEMENT GROUP M 2773357 CASH SYSTEM MANAGEMENT GROUP P 3956414 CASH SCHEDULE R STATEMENT: IN FEBRUARY 2013, THE UNIVERSITY ENTERED INTO A CONTRACT OF AFFILIATION (THE CONTRACT) WITH THE NATIONAL UNIVERSITY SYSTEM (NUS), WHICH IS AN ALLIANCE OF OPERATIONALLY INDEPENDENT AND SEPARATELY ACCREDITED NONPROFIT EDUCATIONAL INSTITUTIONS, A PUBLIC CHARTER SCHOOL, AND TWO NONPROFIT SERVICE PROVIDERS. THE AFFILIATION AGREEMENT PROVIDES FOR CERTAIN FINANCIAL BENEFITS TO THE UNIVERSITY FOR CURRENT AND FUTURE CAPITAL PROJECT FUNDING AND EXPENSE REIMBURSEMENTS TO PROVIDE ADDITIONAL WORKING CAPITAL TO FUND EXPECTED FUTURE REQUIREMENTS AND NEEDS OF THE UNIVERSITY. ADDITIONALLY, THE CONTRACT INCLUDES A GUARANTEE BY NUS OF ALL OUTSTANDING OBLIGATIONS OF THE UNIVERSITY UNDER THE AFFILIATION. THE UNIVERSITY BOARD OF GOVERNORS ELECTED IN ITS STEAD THE PERSONS WHO ARE ALSO BOARD MEMBERS OF THE OTHER NUS AFFILIATES. THE UNIVERSITY RETAINS ITS NAME, IDENTITY, AND STANDING AS AN INDEPENDENT FULLY ACCREDITED NONPROFIT UNIVERSITY, AS WELL AS ITS COMMITMENT TO ITS CORE MISSION, VISION AND VALUES. THE UNIVERSITY'S AFFILIATION WITH NUS WILL SIGNIFICANTLY STRENGTHEN THE UNIVERSITY'S RESOURCES AND PROVIDE FOR THE LONGTERM FUTURE OF THE UNIVERSITY. SCHEDULE R, RELATED ORGANIZATIONS: THE NUS IS AN ALLIANCE OF EDUCATIONAL INSTITUTIONS, SERVING DIVERSE LEARNERS FROM HIGH SCHOOL TO DOCTORAL PROGRAMS. THE NUS INCLUDES 6 INDEPENDENT NONPROFIT ORGANIZATIONS EXEMPT UNDER IRC SECTION 501(C)(3): NATIONAL UNIVERSITY, NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL, NORTHCENTRAL UNIVERSITY, JOHN F. KENNEDY UNIVERSITY, CITY UNVIVERSITY OF SEATTLE, AND SYSTEM MANAGEMENT GROUP (SMG). SMG IS A SUPPORTING ORGANIZATION EXEMPT UNDER IRC SECTION AFFILIATES IN THE NUS. SPECTRUM PACIFIC LEARNING COMPANY LLC AND NATIONAL UNIVERSITY INTERNATIONAL LLC ARE WHOLLYOWNED BY NATIONAL UNIVERSITY, AND ARE TREATED AS DISREGARDED ENTITIES FOR TAX PURPOSES. THE BOARD OF TRUSTEES OF EACH NUS AFFILIATE GOVERNS EACH AFFILIATE INDEPENDENTLY. THE BOARD OF TRUSTEES HAS NO AUTHORITY TO REMOVE, REPLACE OR APPOINT A MAJORITY OF THE GOVERNING BODY OF THOSE OTHER AFFILIATES. THE BOARD OF TRUSTEES OF EACH AFFILIATE, ACTING IN ITS INDEPENDENT CAPACITY, PERIODICALLY APPOINTS ITS OWN NEW TRUSTEES. THE BOARD OF TRUSTEES HAS A MAJORITY OVERLAPPING COMPOSITION BETWEEN EACH AFFILIATE OF NUS. IN ADDITION, THE NUS AUDIT FIRM PREPARES A SET OF "COMBINED NOT "CONSOLIDATED" AUDITED FINANCIAL STATEMENTS THAT INCLUDE THE EIGHT INDEPENDENT NONPROFIT ORGANIZATIONS EXEMPT UNDER IRC SECTION 501(C)(3): NATIONAL UNIVERSITY, NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL, NORTHCENTRAL UNIVERSITY, JOHN F. KENNEDY UNIVERSITY, CITY UNIVERSITY OF SEATTLE, AND SYSTEM MANAGEMENT GROUP.