2020-05-15T16:35:47-05:00 2019-06-30 910189318 MOSS ADAMS LLP 4747 EXECUTIVE DR SUITE 1300 SAN DIEGO CA 92121 990 2018-07-01 201269904 SYSTEM MANAGEMENT GROUP SYST 8586428100 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 DAVE C LAWRENCE VICE CHANCELLOR, FINANCE 8586428100 2020-05-15 1 PATRICIA J MAYER P00188643 8586271400 70.95.170.83 2020-05-15 15:02:11 PD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 3014993178E79CFC6E937B96CD2BA2E742C85339 2018 2021-01-29 14:40:06Z DAVE C LAWRENCE 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 45695039 0 X WWW.NUSYSTEM.ORG X 2005 CA PROVIDE ADMINISTRATIVE SERVICES TO THE ORGANIZATION'S AFFILIATED INSTITUTIONS: THE NATIONAL UNIVERSITY SYSTEM ("NUS"). 24 23 0 0 0 0 125852236 6821006 41647105 36357409 147955 2516624 0 0 167647296 45695039 2731623 14766708 0 0 23218955 25271197 0 0 0 23785897 46352492 49736475 86390397 117910821 -40695358 152400992 214825769 7791062 184746056 144609930 30079713 X PROVIDE ADMINISTRATIVE SERVICES TO THE ORGANIZATION'S AFFILIATED INSTITUTIONS: THE NATIONAL UNIVERSITY SYSTEM ("NUS"). 1 0 82426957 14766708 36357409 PROVIDE SUPPORT AND SERVICES TO THE ORGANIZATIONS IN THE NATIONAL UNIVERSITY SYSTEM ("NUS"). 82426957 1 1 0 1 0 0 0 0 0 0 1 0 1 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 171 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 X 24 23 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 92037 X CARLOS RODRIGUEZ TRUSTEE 0.30 X 0 0 0 DR DONALD KRIPKE VICE CHAIR, TRUSTEE 0.30 X X 0 0 0 DR E LEE RICE TRUSTEE 0.30 X 0 0 0 DR MICHAEL CUNNINGHAM CHANCELLOR, TRUSTEE 45.00 X X 880000 0 38621 GERALD CZARNECKI CHAIR, TRUSTEE 0.30 X 0 0 0 HAROLD GREENBERG TRUSTEE 0.30 X 0 0 0 HIEP QUACH TRUSTEE 0.30 X 0 0 0 TOM CLEVINGER TRUSTEE 0.30 X 0 0 0 JAY STONE TRUSTEE 0.30 X 0 0 0 JEANNE CONNELLY SECRETARY, TRUSTEE 0.30 X X 0 0 0 MICHAEL R MCGILL TRUSTEE 0.30 X 0 0 0 REBECCA HENDERSON TRUSTEE 0.30 X 0 0 0 RICHARD CHISHOLM TREASURER, TRUSTEE 0.30 X X 0 0 0 ROBERT FREELEN TRUSTEE 0.30 X 0 0 0 KIM FOLSOM TRUSTEE 0.30 X 0 0 0 STACY ALLISON TRUSTEE 0.30 X 0 0 0 THOMAS TOPUZES TRUSTEE 0.30 X 0 0 0 WH KNIGHT JR TRUSTEE 0.30 X 0 0 0 DR ERLINDA MARTINEZ TRUSTEE 0.30 X 0 0 0 JOANNE PASTULA TRUSTEE 0.30 X 0 0 0 DAN PITTARD TRUSTEE 0.30 X 0 0 0 RUTHANN HEINRICH TRUSTEE 0.30 X 0 0 0 THOMAS PAGE TRUSTEE 0.30 X 0 0 0 KIMBERLY MITCHELL TRUSTEE 0.30 X 0 0 0 DAVE LAWRENCE VICE CHANCELLOR, FINANCE; TREASURER 45.00 X 292032 0 42896 MICHELLE BELLO ASSOCIATE VICE CHANCELLOR, FINANCE; ASSISTANT SECR 45.00 X 292032 0 44135 SUSAN DIDOMENICO VICE CHANCELLOR, INNOVATION 45.00 X 375000 0 9849 DAN DEVINE CHIEF OPERATING OFFICER 45.00 X 356270 0 44135 SETH ODELL VICE CHANCELLOR, MARKETING 45.00 X 282500 0 33344 ADRIANA CABRE VICE CHANCELLOR, HUMAN RESOURCES 45.00 X 273750 0 35987 CHRIS KRUG VICE CHANCELLOR, IT 45.00 X 243799 0 42527 CHRIS GRAHAM VICE CHANCELLOR, EXTERNAL RELATIONS 45.00 X 187548 0 21904 NANCY ROHLAND VC, PRE COLLEGE PROGRAMS 45.00 X 247679 0 33736 JOHN GOIN PRESIDENT, NUS ONLINE 45.00 X 237500 0 17837 SCOTT PAGE SR VP, SANFORD PROGRAMS 45.00 X 207480 0 15487 WILLIAM EDGELL GM MARKETING 45.00 X 196500 0 19275 DR JERRY LEE II CHANCELLOR EMERITUS 0.00 X 196863 0 0 4268953 0 399733 36 1 1 0 TRADE INTERNATIONAL GROUP 1505 ELEVATION ROAD SAN DIEGO CA 92110 SALES AND MARKETING SERVICES 3176119 SIERRA-CEDAR INC PO BOX 402521 ATLANTA GA 30384 SOFTWARE HOSTING 1425223 ORACLE AMERICA INC PO BOX 44471 SAN FRANCISCO CA 94144 COMPUTER SOFTWARE 855442 LEVEL 3 COMMUNICATIONS LLC - 304521 PO BOX 910182 DENVER CO 92799 TELECOMMUNICATIONS AND INTERNET 853845 ALLIED UNIVERSAL SECURITY SERVICES PO BOX 31001-2374 PASADENA CA 91110 SECURITY SERVICES 714357 69 6789873 31133 6821006 PAYMENT FOR SUPPORT 900099 35513367 35513367 OTHER INCOME 900099 844042 844042 36357409 1016322 1016322 1500302 0 1500302 1500302 1500302 45695039 36357409 0 2516624 X 10535100 10535100 4231608 4231608 3817475 3817475 16115395 16115395 700886 700886 3188210 3188210 1449231 1449231 538016 9495 528521 108163 108163 247979 247979 13560961 13560961 2513852 2149060 364792 4199316 4199316 6352442 6352442 1762488 1762488 128821 128821 2713985 2713985 2270310 2270310 1248963 1248963 PRINTING - KITS 6417793 6417793 EQUIPMENT MAINTENANCE 1830620 1830620 BANK FEES 1812650 1812650 646133 646133 86390397 82426957 3963440 0 12590 1878230 88000000 3022974 2586013 3626692 1084970 1794320 2541722 52221108 70500135 101409484 7350000 5880000 0 30030185 152400992 214825769 5439196 6132831 65199946 113413279 2351866 0 7791062 184746056 X 36407765 -56751295 108202165 86831008 144609930 30079713 152400992 214825769 X -40695358 104770 -337 -73939292 X 0 1 X 1 0 X X X 5 JOHN F KENNEDY UNIVERSITY 941610694 2 0 0 0 NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL 562438569 10 0 0 0 NORTHCENTRAL UNIVERSITY (FKA WESTMED COLLEGE) 900171867 10 0 0 0 CITY UNIVERSITY OF SEATTLE 237421224 2 0 35100 0 NATIONAL UNIVERSITY 237172306 2 0 10549607 0 5 10584707 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 122560 0 0 122560 0 PART II-B, LINE 1: DOLLAR AMOUNT WAS NEGOTIATED TAKING INTO CONSIDERATION PREVIOUS CONTRACTS WITH NU SYSTEM AFFILIATES, AND SIMILAR CONTRACTS WITH OTHER UNIVERSITIES. AMOUNT IS EQUAL TO OR LESS THAN THOSE CONTRACTS AND IS TYPICAL AMOUNTS CHARGED BY OTHER FIRMS. LOBBYING INVOLVES PROVIDING CLIENT (NU SYSTEM AFFILIATES) WITH TIMELY ADVICE AND INFORMATION AS TO PEOPLE AND POLICIES IN WASHINGTON BY A FULL TIME FIRM WITH 30 YEARS EXPERIENCE IN UNIVERSITY LOBBYING. FIRM MAKES RECOMMENDATIONS FOR MEETINGS FOR CHANCELLOR, PRESIDENTS, AND GOVERNMENT AFFAIRS VICE CHANCELLOR WITH VARIOUS MEMBERS OF CONGRESS, THEIR STAFFS, AND EXECUTIVE BRANCH AGENCIES. THEN, IT SCHEDULES THE MEETINGS, PROVIDES TALKING POINTS AND ATTENDS TO FACILITATE THE DISCUSSIONS. THEN, FOLLOW UP ACTIONS ARE TAKEN, SUCH AS WRITING LETTERS, MAKING PHONE CONTACTS AND SUGGESTING FURTHER SUCH CONFERENCES AND MEETINGS. ANOTHER PART OF THE CONTRACT DOES NOT INVOLVE LOBBYING, BUT ASSISTS NU SYSTEM AFFILIATES IN PREPARING COMPETITIVE BIDS FOR VARIOUS GOVERNMENT AGENCY CONTRACTS. 102168 12597 89571 3524524 1072373 2452151 2541722 INVESTMENTS IN AFFILIATES 101409484 F 101409484 DUE FROM AFFILIATES 30030185 30030185 X PART X, LINE 2: THE CONSOLIDATED FINANCIAL STATEMENTS WILL REFLECT A TAX BENEFIT OR LIABILITY ONLY IF IT IS MORE LIKELY THAN NOT THE TAX POSITION WOULD BE SUSTAINED IN A TAX EXAMINATION, WITH A TAX EXAMINATION BEING PRESUMED TO OCCUR. THE AMOUNT RECOGNIZED WILL BE THE LARGEST AMOUNT OF TAX BENEFIT OR LIABILITY THAT IS GREATER THAN 50% LIKELY OF BEING REALIZED ON EXAMINATION. FOR TAX POSITIONS NOT MEETING THE MORE-LIKELY-THAN-NOT TEST, NO TAX BENEFIT OR LIABILITY WOULD BE RECORDED. SMG AND NEP HAVE ANALYZED THEIR TAX POSITIONS TAKEN IN ITS FILINGS WITH THE INTERNAL REVENUE SERVICE AND VARIOUS STATE JURISDICTIONS. SMG AND NEP BELIEVE THAT THEIR INCOME TAX FILING POSITIONS WILL BE SUSTAINED UPON EXAMINATION AND DO NOT ANTICIPATE ANY ADJUSTMENTS THAT WOULD RESULT IN A MATERIAL ADVERSE EFFECT ON THE CONSOLIDATED FINANCIAL CONDITION, CHANGES IN NET ASSETS, OR CASH FLOWS. ACCORDINGLY, NO RESERVES OR RELATED ACCRUALS FOR INTEREST AND PENALTIES FOR UNCERTAIN INCOME TAX POSITIONS HAVE BEEN RECORDED AT JUNE 30, 2019 AND 2018. 1 CITY UNIVERSITY OF SEATTLE 521 WALL STREET SEATTLE WA 98121 237421224 501(C)(3) 35100 OPERATIONS NATIONAL UNIVERSITY 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 237172306 501(C)(3) 10549607 OPERATIONS 2 SANFORD PROGRAMS VARIOUS SCHOLARSHIPS 37 4231608 PART I, LINE 2: SYSTEM MANAGEMENT GROUP IDENTIFIES ELIGIBLE GRANTEES RELATED TO EDUCATIONAL AND COMMUNITY PURPOSES. GRANTEES ARE MONITORED AS APPROPRIATE THROUGH PERIODIC REPORTS AND SITE INSPECTIONS. X 1 1 X X X X 1 1 0 0 0 0 0 1 0 DR MICHAEL CUNNINGHAM CHANCELLOR, TRUSTEE 750000 0 100000 0 30000 0 19250 0 19371 0 918621 0 0 0 DAVE LAWRENCE VICE CHANCELLOR, FINANCE; TREASURER 267032 0 25000 0 0 0 19250 0 23646 0 334928 0 0 0 MICHELLE BELLO ASSOCIATE VICE CHANCELLOR, FINANCE; 267032 0 25000 0 0 0 19250 0 24885 0 336167 0 0 0 SUSAN DIDOMENICO VICE CHANCELLOR, INNOVATION 225000 0 150000 0 0 0 0 0 9849 0 384849 0 0 0 DAN DEVINE CHIEF OPERATING OFFICER 315000 0 23400 0 17870 0 19250 0 24885 0 400405 0 0 0 SETH ODELL VICE CHANCELLOR, MARKETING 262500 0 20000 0 0 0 18420 0 14924 0 315844 0 0 0 ADRIANA CABRE VICE CHANCELLOR, HUMAN RESOURCES 253750 0 20000 0 0 0 18422 0 17565 0 309737 0 0 0 CHRIS KRUG VICE CHANCELLOR, IT 232299 0 11500 0 0 0 17066 0 25461 0 286326 0 0 0 CHRIS GRAHAM VICE CHANCELLOR, EXTERNAL RELATIONS 174988 0 12560 0 0 0 13128 0 8776 0 209452 0 0 0 NANCY ROHLAND VC, PRE COLLEGE PROGRAMS 230659 0 17020 0 0 0 16665 0 17071 0 281415 0 0 0 JOHN GOIN PRESIDENT, NUS ONLINE 237500 0 0 0 0 0 1250 0 16587 0 255337 0 0 0 SCOTT PAGE SR VP, SANFORD PROGRAMS 190000 0 17480 0 0 0 8299 0 7188 0 222967 0 0 0 WILLIAM EDGELL GM MARKETING 182500 0 14000 0 0 0 0 0 19275 0 215775 0 0 0 DR JERRY LEE II CHANCELLOR EMERITUS 0 0 0 0 196863 0 0 0 0 0 196863 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. PART I, LINES 4A-B DR. JERRY LEE PARTICIPATED IN A 457(B) SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN DURING FISCAL YEAR ENDING JUNE 30, 2019. PLAN DISTRIBUTIONS WERE MADE DURING THE FISCAL YEAR ENDING JUNE 30, 2019 OF $79,412. 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. A CALIFORNIA MUNICIPAL FINANCE AUTHORITY 201563466 13048VGJ1 2019-02-21 67103172 ACQUISITION OF NATIONAL EDUCATION PARTNERS (FKA NORTHCENTRAL UNIVERSITY) 0 0 0 A 67103172 579403 66523768 2019 0 1 1 1 A 0 0 0 0 0 0 1 A 0 0 0 1 0 0 0 0 1 A 1 SCHEDULE K, PART II, LINE 11: OTHER AMOUNTS OF PROCEEDS SPENT: PROCEEDS USED TO REFUND PRIOR TAXABLE BONDS $64,555,000 OTHER PROCEEDS USED FOR INTEREST EXPENSE $1,968,768 FORM 990, PART III, LINE 2 IN DECEMBER 2018, SMG'S NEWLY FORMED FOR PROFIT SUBSIDIARY, NCU, INC., ENTERED INTO AN AGREEMENT TO ACQUIRE ALL THE OUTSTANDING EQUITY SECURITIES OF NCU HOLDINGS, LLC (HOLDINGS), WHICH WAS THE PARENT COMPANY OF THE CORPORATION THAT OWNED NORTHCENTRAL UNIVERSITY, INC. AS PART OF ONE TRANSACTION, ON DECEMBER 31, 2018, NCU, INC. ACQUIRED HOLDINGS (AND ALL ITS SUBSIDIARIES) TO EXPAND ITS OPERATIONS AND CHANGE THE NAME OF NORTHCENTRAL UNIVERSITY INC. TO NATIONAL EDUCATION PARTNERS (NEP). ON JANUARY 1, 2019, WESTMED COLLEGE (WMC), AN AFFILIATE OF NUS, CHANGED ITS NAME TO NORTHCENTRAL UNIVERSITY (NCU) AND NEP DONATED ALL ITS ACADEMIC ASSETS TO NCU. NCU IS A NONPROFIT, HIGHER EDUCATION INSTITUTION OFFERING BACHELOR, MASTER, AND DOCTORAL DEGREES TO AN ONLINE POPULATION AND IS AN AFFILIATE OF THE NATIONAL UNIVERSITY SYSTEM. IN CONJUNCTION WITH THE ACQUISITION OF NEP, SMG THROUGH THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY ISSUED REVENUE BONDS SERIES 2019 A (TAX EXEMPT) AND SERIES 2019B (TAXABLE) TOTALING $178.6 MILLION, NET OF PREMIUM/DISCOUNTS AND ISSUANCE COSTS. THE BONDS MATURE AT VARIOUS DATES FROM OCTOBER 2019 APRIL 2039. FORM 990, PART VI, SECTION B, LINE 11B THE DRAFT FORM 990 WAS DISTRIBUTED TO SENIOR MANAGEMENT AND THE AUDIT COMMITTEE. THE FINAL VERSION OF FORM 990 WAS DISTRIBUTED FOR REVIEW BEFORE FILING TO THE TRUSTEES BY EMAIL. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF TRUSTEES HAS ANUALLY 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, 2019. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION OF THE CHANCELLOR OF THE NUS 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. THE PROCESS IS DOCUMENTED AND WAS LAST COMPLETED IN JUNE 2019. 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 IX, LINE 11G CONSULTING FEES: PROGRAM SERVICE EXPENSES 13,560,961. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 13,560,961. FORM 990, PART XI, LINE 9: EQUITY EARNINGS IN AFFILIATE -73,939,292. FORM 990, PART VII AND SCHEDULE J, PART II THE CHANCELLOR IS A TRUSTEE OF NATIONAL UNIVERSITY AND OF EACH OTHER AFFILIATE OF THE NUS, EXCEPT NATIONAL UNIVERSITY ACADEMY. HIS COMPENSATION IS ALLOCATED AMONG THE NUS AFFILIATES AS FOLLOWS: NATIONAL UNIVERSITY IS A 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. DR JERRY LEE: (B)(I) $0; (B)(II) $0; (B)(III) $147,647; (C) $0; (D) $0; (E) $0 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. DR JERRY LEE: (B)(I) $0; (B)(II) $0; (B)(III) $83,667; (C) $0; (D) $0; (E) $0 NORTHCENTRAL UNIVERSITY, FORMERLY WESTMED COLLEGE, OFFERED CERTIFICATION PROGRAMS FOR VOCATIONAL NURSES AND PARAMEDICS. ITS CAMPUSES WERE IN SAN JOSE, CA AND MERCED, CA. IN APRIL 2017, THE BOARD VOTED TO TEACH OUT THE REMAINING STUDENTS AND TERMINATE OPERATIONS. WESTMED TRANSFERRED ITS REMAINING NET ASSETS TO AN AFFILIATED ENTITY IN DECEMBER 2018; THEREFORE, THERE WAS NO ALLOCATION OF AMOUNTS FOR FISCAL 2019. DR JERRY LEE: (B)(I) $0; (B)(II) $0; (B)(III) $0; (C) $0; (D) $0; (E) $0 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. DR JERRY LEE: (B)(I) $0; (B)(II) $0; (B)(III) $27,069; (C) $0; (D) $0; (E) $0 CITY UNIVERSITY OF SEATTLE, FOUNDED IN 1973, OFFERS OVER 60 PROGRAMS INCLUDING UNDERGRADUATE AND GRADUATE DEGREES AND CERTIFICATES. THE UNIVERSITY HAS OVER 30 CAMPUSES. IT HAS ABOUT 7,000 STUDENTS IN CLASS AND ABOUT 50 EMPLOYEES. DR JERRY LEE: (B)(I) $0; (B)(II) $0; (B)(III) $36,912; (C) $0; (D) $0; (E) $0 FINANCIAL STATEMENTS: EXPLANATION: SYSTEM MANAGEMENT GROUP IS INCLUDED IN A COMBINED REPORT WITH THE NATIONAL UNIVERSITY SYSTEM. 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 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 (FKA WESTMED COLLEGE) 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 NATIONAL UNIVERSITY ACADEMY 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 352358696 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 INTERNATIONAL INC 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 453997908 INACTIVE CA 501(C)(3) LINE 2 N/A 1 CITY UNIVERSITY OF SEATTLE 521 WALL STREET SEATTLE WA 98121 237421224 EDUCATIONAL INSTITUTION WA 501(C)(3) LINE 2 N/A 1 NCU INC 8667 E HARTFORD DR STE 100 SCOTTSDALE CA 85255 832721678 HOLDING COMPANY CA SYSTEM MANAGEMENT GROUP C 1.00000 0 INNOVA MANAGEMENT GROUP INC 8667 E HARTFORD DR STE 100 SCOTTSDALE CA 85255 010898917 HOLDING COMPANY AZ SYSTEM MANAGEMENT GROUP C 1.00000 0 NATIONAL EDUCATION PARTNERS INC 8667 E HARTFORD DR STE 100 SCOTTSDALE CA 85255 860930587 EDUCATIONAL INSTITUTION CA SYSTEM MANAGEMENT GROUP C 33582930 128250297 1.00000 0 NCU HOLDINGS LLC 8667 E HARTFORD DR STE 100 SCOTTZDALE AZ 85255 263309860 HOLDING COMPANY DE SYSTEM MANAGEMENT GROUP C 1.00000 0 0 1 1 1 1 0 0 0 0 0 0 1 0 1 1 1 1 1 1 NATIONAL UNIVERSITY L 29312212 CASH JOHN F KENNEDY UNIVERSITY L 1421340 CASH NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL L 385395 CASH CITY UNIVERSITY OF SEATTLE L 2594172 CASH NATIONAL UNIVERSITY C 6789873 CASH NATIONAL UNIVERSITY P 3420490 CASH CITY UNIVERSITY OF SEATTLE B 35100 CASH NATIONAL UNIVERSITY Q 51026652 CASH NORTHCENTRAL UNIVERSITY L 1800000 CASH NATIONAL UNIVERSITY B 10549607 CASH NATIONAL UNIVERSITY R 1066558 CASH NATIONAL UNIVERSITY D 46344225 CASH NATIONAL UNIVERSITY E 57205000 CASH NATIONAL UNIVERSITY E 113520000 CASH NORTHCENTRAL UNIVERSITY D 134798 CASH CITY UNIVERSITY OF SEATTLE D 1414172 CASH JOHN F KENNEDY UNIVERSITY D 312400 CASH NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL D 597038 CASH NATIONAL UNIVERSITY D 23745062 CASH NORTHCENTRAL UNIVERSITY L 21433817 CASH NATIONAL UNIVERSITY S 186000000 CASH NATIONAL UNIVERSITY R 182886256 CASH SCHEDULE R, RELATED ORGANIZATIONS NATIONAL UNIVERSITY SYSTEM THE 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 UNIVERSITY VIRTUAL HIGH SCHOOL, NORTHCENTRAL UNIVERSITY (FKA WESTMED COLLEGE), JOHN F. KENNEDY UNIVERSITY (WHICH OFFERS DOCTORAL PROGRAMS AS WELL AS A LAW SCHOOL), CITY UNIVERSITY OF SEATTLE AND SYSTEM MANAGEMENT GROUP (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. 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 THE NUS. IN ADDITION, THE NUS AUDIT FIRM PREPARES A SET OF "COMBINED NOT "CONSOLIDATED" AUDITED FINANCIAL STATEMENTS THAT INCLUDE THE EIGHT INDEPENDENT NON-PROFIT ORGANIZATIONS EXEMPT UNDER IRC SECTION 501(C)(3): NATIONAL UNIVERSITY, NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL, NORTHCENTRAL UNIVERSITY (FKA WESTMED COLLEGE), JOHN F. KENNEDY UNIVERSITY, CITY UNIVERSITY OF SEATTLE, AND SYSTEM MANAGEMENT GROUP.