2020-11-10T13:14:53-06:00 2019-12-31 203250475 ESMOND & ASSOCIATES INC 23901 CALABASAS RD 1010 CALABASAS CA 91302 990 2019-01-01 208091013 CENTER FOR EXCELLENCE IN HIGHER EDUCATION INC CENT 8013120078 4021 SOUTH 700 EAST NO 400 SALT LAKE CITY UT 84107 ERIC JUHLIN PRESIDENT 8013120078 2020-11-06 1 LENNY ESMOND CPA P00037472 8186102900 2020-11-07 12.192.44.88 2020-11-06 12:15:30 PS P 304563AD133ADB8C148DCC66A923AFD55399D61E 7E7DE3C7E1C5A8534734ED09E2989ED43A091F3E 2019 2021-01-29 14:40:06Z ERIC JUHLIN 4021 SOUTH 700 EAST 400 SALT LAKE CITY UT 84107 259068615 0 X WWW.CEHE.ORG X 2006 DE POST-SECONDARY EDUCATION 6 5 2540 3 0 0 1000 30000 209407315 258472049 231222 566566 0 0 209639537 259068615 4299874 1151000 0 0 97842248 103294199 0 0 0 95773267 146654878 197915389 251100077 11724148 7968538 256103555 197580667 113836828 48718929 142266727 148861738 X THE PRINCIPAL FUNCTION OF THE ORGANIZATION IS THE PRESENTATION OF FORMAL INSTRUCTION BY ITS REGULARLY MAINTAINED FACULTY AND CURRICULUM TO ITS REGULARLY ENROLLED BODY OF PUPILS OR STUDENTS IN ORDER FOR STUDENTS TO OBTAIN A DEGREE AND OBTAIN EMPLOYMENT. 0 0 1151000 1151000 THE ORGANIZATION MAKES DESIGNATED AND UNDESIGNATED GRANTS TO OTHER CHARITABLE ORGANIZATIONS. THE ORGANIZATION SUPPORTS OTHER INSTITUTIONS WHICH PROMOTE HIGHER EDUCATION AND ECONOMICS. 229108926 258472049 THE ORGANIZATION OWNS AND OPERATES STEVENS-HENAGER COLLEGE, COLLEGEAMERICA ARIZONA, COLLEGEAMERICA DENVER, CALIFORNIA COLLEGE SAN DIEGO, INDEPENDENCE UNIVERSITY, AND TTY CAREER COLLEGES (51%) (THE COLLEGES) AS NONPROFIT COLLEGES ORGANIZED AND OPERATED EXCLUSIVELY FOR EDUCATIONAL PURPOSES. THE PRINCIPAL FUNCTION OF THE ORGANIZATION IS THE PRESENTATION OF FORMAL INSTRUCTION BY ITS REGULARLY MAINTAINED FACULTY AND CURRICULUM TO ITS REGULARLY ENROLLED BODY OF PUPILS OR STUDENTS IN ORDER FOR STUDENTS TO OBTAIN A DEGREE AND OBTAIN EMPLOYMENT. IN JUNE 2019, THE ORGANIZATION SOLD SUBSTANTIALLY ALL OF THE ASSETS OF TTY TO AN UNRELATED PARTY, TTY PRODUCTIONS SERVICES, LLC FOR A DOLLAR IN CONSIDERATION. IN NOVEMBER 2019, THE ORGANIZATION ABANDONED AND DISSOLVED THE LLC, RESULTING IN A LOSS ON ABANDONMENT OF SUBSIDIARY AND THE ELMINATION OF THE NON-CONTROLLING INTEREST, AS PRESENTED ON THE CONSOLIDATED STATEMENT OF ACTIVITIES. 230259926 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 1 0 0 1 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 0 1 1 1 0 0 1 125 0 1 2540 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 6 5 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 CA IN X ERIC JUHLIN 8013120078 4021 SOUTH 700 EAST SUITE 400 SALT LAKE CITY UT 84107 WILLIAM C DENNIS PHD DIRECTOR & TREASURER 1.00 X X 10000 0 0 TODD ZYWICKI JD DIRECTOR 1.00 X 10000 0 0 CARL BARNEY CHAIRMAN & DIRECTOR 10.00 X X 0 0 0 ERIC JUHLIN PRESIDENT & CEO 40.00 X X 723323 0 16847 ROY HURD DIRECTOR 1.00 X 10000 0 0 KEN KONESCO DIRECTOR 1.00 X 10000 0 0 TAL TSFANY DIRECTOR 1.00 X 3000 0 0 JOHN ALLISON DIRECTOR 1.00 X 3000 0 0 WALTER BROWN DIRECTOR 1.00 X 3000 0 0 JOHN ALLISON DIRECTOR 1.00 X 3000 0 0 ROZANN KUNSTLE VICE-PRESIDENT/ONGROUND 40.00 X 227088 0 16706 ALAN HANSEN EXECUTIVE DIRECTOR 40.00 X 232117 0 13820 KODY LARSEN CHIEF OPERATING OFFICER 40.00 X 294750 0 11303 SUSAN G REED VP COMPLIANCE 40.00 X 245169 0 0 MATTHEW GERBER GENERAL COUNSEL 40.00 X 218919 0 8267 PAUL GARDNER CHIEF FINANCIAL OFFICER 40.00 X 381524 0 19484 SHERRIE KASCHMITTER VP ADVERTISING 40.00 X 247068 0 6880 VICKY DEWSNUP REGIONAL DIRECTOR 40.00 X 157500 0 6972 KENNETH PLANT REGIONAL DIRECTOR 40.00 X 178750 0 3195 BRUCE PILEGGI REGIONAL DIRECTOR 40.00 X 147917 0 1668 SCOTT SCHULER VP FINANCIAL AID 40.00 X 150000 0 12640 MICHAEL MAKI FORMER VICE-PRESIDENT 40.00 X 161759 0 0 3417884 0 117782 34 1 1 0 EDUFFICIENT LLC 6 FOREST AVENUE 2ND FL PARAMUS NJ 07652 ADVERTISING MANGEMENT 20338822 GOOGLE INC 1600 AMPITHEATRE PARKWAY MOUNTAIN VIEW CA 94043 ADVERTISING SERVICES 7067724 FACEBOOK 1 HACKER WAY MENLO PARK CA 94025 ADVERTISING SERVICES 5178445 CENTERFIELD MEDIA HOLDINGS LLC 12130 MILLENIUM DRIVE SUITE 600 LOS ANGELES CA 90094 ADVERTISING SERVICES 4569703 DIRECTMAILCOM LLC 5351 KETCH ROAD PRINCE FREDERICK MD 20678 MARKETING SERVICES 3523642 8 30000 30000 TUITION AND FEES 611310 257739429 257739429 732620 732620 258472049 566566 566566 259068615 258472049 0 566566 1151000 1151000 2621958 723323 1898635 82992505 75994450 6998055 228853 199024 29829 10498231 9934545 563686 6952652 6343769 608883 2492978 1792177 700801 2061764 2061764 104794 16330 88464 53795149 53795149 1621657 1462080 159577 6982644 2686357 4296287 13177219 12562868 614351 1724646 1311130 413516 356093 164462 191631 404408 404408 10705530 9930451 775079 406213 3452 402761 ADMINISTRATIVE 44993996 44618935 375061 STUDENT SUPPORT 5430365 5411284 19081 LOSS ON ABANDONMENT 1759825 1759825 ACCREDITATION 637597 399315 238282 251100077 230259926 20840151 0 55847601 21653839 16751116 16668418 89894857 59618233 1005300 8424657 30316257 22840942 7732863 7475315 83198489 81487664 1673329 2252541 256103555 197580667 6941400 6985773 2000874 1471701 43860357 28435755 49548949 0 11485248 11825700 113836828 48718929 X 142266727 148861738 142266727 148861738 256103555 197580667 X 7968538 -1373527 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3136294 2422077 714217 27179963 20418865 6761098 7475315 EXCESS STUDENT FUNDS 1784768 DEFERRED RENT 5496254 ACCRUED LIABILITIES 4544678 11825700 X 259068615 0 259068615 0 259068615 251100077 0 251100077 0 251100077 PART X, LINE 2: THE ORGANIZATION IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501 (C)(3) OF THE U.S. INTERNAL REVENUE CODE (IRC) AND FROM STATE INCOME TAXES UNDER SIMILAR PROVISIONS. THE ORGANIAZATION COULD BE LIABLE FOR UNRELATED BUSINESS INCOME TAX, SHOULD IT HAVE ANY INCOME FROM TRADE OR BUSINESS ACTIVITIES REGULARLY CARRIED ON THAT ARE UNRELATED TO THE PURPOSES FOR WHICH IT WAS GRANTED TAX EXEMPTION. MANAGEMENT DOES NOT BELIEVE THE ORGANIZATION HAS ANY UNRELATED BUSINESS INCOME. THE ENTITIES, PRIOR TO THE MERGER INTO CEHE, WERE SUBCHAPTER "S" CORPORATIONS AND WERE TAXED AT THE STOCKHOLDER LEVEL. SINCE THE MERGER, THE IRS AUDITED THE ENTITIES FOR THE 2012 TAX YEAR. IN ADDITION, THE STATE OF CALIFORNIA AUDITED THE 2012 TAX YEAR OF CCI AND THE STATE OF UTAH AUDITED THE 2012 TAX YEAR OF SHC. MANAGEMENT BELIEVES THAT SINCE THE ENTITIES WERE TAXED AT THE STOCKHOLDER LEVEL BY THE FORMER OWNER, CEHE WILL NOT BE LIABLE FOR ANY OF THE OPEN TAX AUDITS. U.S. GAAP REQUIRES THE ORGANIZATION'S MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE ORGANIZATION AND RECOGNIZE A TAX LIABILITY IF THE ORGANIZATION HAS TAKEN AN UNCERTAIN POSITION TAHT MORE LIKELY THAN NOT WOULD BE SUSTAINED UPON EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS). THE ORGANIZATION HAS ANALYZED THE TAX POSITIONS TAKEN BY THE ORGANIAZATION, AND BELIEVES THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE FINANCIAL STATEMENTS. U.S. GAAP ALSO REQUIRES THAT ALL ENTITIES DISCLOSE THE YEARS FOR WHICH ITS TAX RETURNS REMAIN OPEN FOR EXAMINATION BY THE IRS. THE IRS DOES REQUIRE THE ORGANIZATION TO FILE TAX RETURNS ON FORM 990, "RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX". IN ADDITION TO THE AUDIT BY THE IRS OF THE ORGANIZATION FOR 2012 THRU 2015, THE IRS COULD AUDIT THE ORGANIZATION WITH RESPECT TO YEARS NO EARLIER THAN 2016. THE IRS AUDIT OF THE YEARS 2012 THRU 2015 YEARS WAS RESOLVED IN 2019 WITH NO CHANGE AND A CONFIRMATION OF THE ORGANIZATION'S STATUS AS TAX EXEMPT UNDER SECTION 501(C)(3) OF THE U.S. IRC. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 SEE SCHEDULE O. SCHEDULE E, PART I, LINE 6 THE INSTITUTION PARTICIPATES IN TITLE IV PROGRAMS OFFERED BY THE U.S. DEPARTMENT OF EDUCATION. THE INSTITUTION MUST COMPLY WITH THE HIGHER EDUCATION ACT AND THE U.S. DEPARTMENT OF EDUCATION'S EXTENSIVE REGULATIONS REGARDING INSTITUTIONAL ELIGIBILITY. 1 0 0 0 0 0 0 0 0 0 EUROPE TO FURTHER THE UNDERSTANDING OF LAW AND ECONOMICS 40000 CHECK 1 0 0 0 0 0 0 PART I, LINE 2: THE BOARD MONITORS USE OF ALL GRANTS. PART III ACCOUNTING METHOD: 1 COLORADO CIVIL JUSTICE LEAGUE 3700 QUEBEC STREET UNIT 100-117 DENVER CO 802071639 841547639 501 (C) 3 5000 N/A N/A TO FURTHER THE UNDERSTANDING OF LAW AND ECONOMICS CATO INSTITUTE 1000 MASSACHUSETTS AVENUE NW WASHINGTON DC 200015403 237432162 501 (C) 3 550000 N/A N/A SUPPORT EDUCATIONAL SERVICES EUDAMONIA INSTITUTE 2599 REYNOLDA ROAD WINSTON SALEM NC 27106 560532138 501 (C) 3 200000 N/A N/A SUPPORT EDUCATING PEOPLE ABOUT CAPITALISM CECU 900 W LAKE AVENUE PEORIA IL 61614 621469595 501 (C) 3 -44000 N/A N/A TO SUPPORT RESEARCH ON THE CAREER COLLEGE SECTOR. UNIVERSITY OF MARYLAND MITCHELL BUILDING COLLEGE PARK MD 20742 526002033 501 (C) 3 400000 N/A N/A SUPPORT EDUCATIONAL SERVICES PART I, LINE 2: THE BOARD OF DIRECTORS MONITOR USE OF ALL GRANTS. 1 X X X 0 0 0 0 0 0 0 0 0 ERIC JUHLIN PRESIDENT & CEO 373073 0 350250 0 0 0 0 0 16847 0 740170 0 0 0 ROZANN KUNSTLE VICE-PRESIDENT/ONGROUND 172088 0 55000 0 0 0 0 0 16706 0 243794 0 0 0 ALAN HANSEN EXECUTIVE DIRECTOR 168117 0 64000 0 0 0 1681 0 12139 0 245937 0 0 0 KODY LARSEN CHIEF OPERATING OFFICER 204750 0 90000 0 0 0 2048 0 9255 0 306053 0 0 0 SUSAN G REED VP COMPLIANCE 158169 0 87000 0 0 0 0 0 0 0 245169 0 0 0 MATTHEW GERBER GENERAL COUNSEL 168919 0 50000 0 0 0 0 0 8267 0 227186 0 0 0 PAUL GARDNER CHIEF FINANCIAL OFFICER 271524 0 110000 0 0 0 2715 0 16769 0 401008 0 0 0 SHERRIE KASCHMITTER VP ADVERTISING 190068 0 57000 0 0 0 77 0 6803 0 253948 0 0 0 VICKY DEWSNUP REGIONAL DIRECTOR 135000 0 22500 0 0 0 0 0 6972 0 164472 0 0 0 KENNETH PLANT REGIONAL DIRECTOR 130000 0 48750 0 0 0 1300 0 1895 0 181945 0 0 0 SCOTT SCHULER VP FINANCIAL AID 150000 0 0 0 0 0 1313 0 11327 0 162640 0 0 0 MICHAEL MAKI FORMER VICE-PRESIDENT 161759 0 0 0 0 0 0 0 0 0 161759 0 0 0 CARL BARNEY MEMBER SEE SCHEDULE O FOR EXPLANATION X 75000000 0 0 1 1 CARL BARNEY CHAIRMAN/DIRECTOR/MEMBER AND REAL PROPERTY LESSOR 1138427 CARL BARNEY OWNS ONE DISREGARDED ENTITY WHICH LEASES REAL PROPERTY TO THE ORGANIZATION FOR COMMERCIALLY REASONABLE AMOUNTS VERIFIED BY THIRD PARTIES 0 CARL BARNEY CHAIRMAN/DIRECTOR/MEMBER AND NOTE HOLDER 49709180 PRINCIPAL AND INTEREST PAYMENT ON NOTES PAYABLE IN CONNECTION WITH MERGER OF STEVENS-HENAGER COLLEGE, INC., COLLEGEAMERICA SERVICES, AND COLLEGEAMERICA ARIZONA, INC. WITH AND INTO THE ORGANIZATION IN A BARGAIN SALE TRANSACTION. 0 SCHEDULE E, PART I, ITEM 3 EXPLANATION OF PUBLICIZING NONDISCRIMINATION POLICY THE ORGANIZATION'S COLLEGES CUSTOMARILY DRAW THEIR STUDENTS FROM LOCAL COMMUNITIES AND FOLLOW A RACIALLY NONDISCRIMINATORY POLICY AS TO STUDENTS. THE ORGANIZATION'S NONDISCRIMINATION POLICY CAN BE FOUND UNDER "TITLE IX AND VI OF THE CIVIL RIGHTS ACT" OF ITS PRINCIPAL CATALOGUE GIVEN TO EACH PROSPECTIVE STUDENT THAT INTERVIEWS WITH AN ADMISSIONS CLERK AT A CAMPUS. THE POLICY IS PUBLISHED ON THE SCHOOL'S WEBSITE OPERATED BY THE SCHOOL. THE POLICY IS ALSO DISCLOSED IN ALL OF THE ORGANIZATION'S ADVERTISING MATERIALS. THE ORGANIZATION THEREFORE MEETS THE CRITERIA UNDER REV. PROC. 75-50, SECTION 4.03-2(C) FOR EXEMPTION FROM THE PUBLICITY REQUIREMENTS OF SECTION 4.03-1. FORM 990, PART VI, SECTION A, LINE 6 CARL BARNEY IS A MEMBER OF CENTER FOR EXCELLENCE IN HIGHER EDUCATION, INC. FORM 990, PART VI, SECTION A, LINE 7A THE ONLY SPECIFIC POWERS GRANTED TO THE MEMBER ARE THE RIGHTS TO ELECT BOARD MEMBERS AND TO REMOVE DIRECTORS WITH CAUSE. CERTAIN OTHER ACTIONS REQUIRE MEMBER APPROVAL, BUT MUST BE INITIATED BY THE BOARD. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN GOVERNANCE DECISIONS OF THE ORGANIZATION ARE RESERVED FOR ITS MEMBER. FORM 990, PART VI, SECTION B, LINE 11B PRESIDENT, CHIEF FINANCIAL OFFICER AND BOARD OF DIRECTORS MEMBERS REVIEW THE FORM BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C OFFICERS AND BOARD MEMBERS ARE REQUIRED TO SIGN A CONFLICT OF INTEREST POLICY ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15 ORGANIZATION HAS A COMPENSATION COMMITTEE THAT FACTORS IN EXPERIENCE, EDUCATION, BACKGROUND, AND OTHER RELEVANT FACTORS IN DETERMINING THEIR SALARY. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE AT ITS OFFICE DURING REGULAR BUSINESS HOURS. FORM 990, PART XI, LINE 9: IMPACT OF ADOPTION OF ASC 606 -1,373,527. FORM 990, PART XII, LINE 2C EXPLANATION DURING 2019, THE ORGANIZATION ADOPTED FASB ASC 606, REVENUE FROM CONTRACTS, USING THE MODIFIED RETROSPECTIVE ADOPTION METHOD WITH A DATE OF INITIAL APPLICATION OF JANUARY 1, 2019. IN ACCORDANCE WITH THE MODIFIED RETROSPECTIVE ADOPTION METHOD, THE ORGANIZATION CHANGED THE RECOGNITION OF REVENUE ASSOCIATED WITH TABLET FEES, REFUND LIABILITIES, AND THE RECOGNITION AND PRESENTATION OF TUITION AND SCHOLARSHIPS OFFERED TO EMPLOYEES. SCHEDULE L, PART II LOANS TO AND/OR FROM INTERESTED PERSONS NOTE PAYABLE RELATING TO THE MERGER OF COMPANIES WITH AND INTO THE ORGANIZATION IN A BARGAIN SALE TRANSACTION. PROMETHEUS FOUNDATION PO BOX 1157 CRYSTAL BAY NV 89402 271456655 PRIVATE FOUNDATION WHICH MAKES CHARITABLE GRANTS NV 501(C)(3) CARL BARNEY 0 TTY PRODUCTIVITY SERVICES LLC 4021 SOUTH 700 EAST SUITE 400 SALT LAKE CITY UT 84107 383937115 CAREER TRAINING ORGANIZATION AZ CENTER FOR EXCELLENCE IN HIGHER EDUCATION INC RELATED -959870 0 1 0.51000 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TTY LLC D 692664 ACCOUNTING RECORDS PART III - IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS A PARTNERSHIP THE ORGANIZATIONS INTEREST IN THE PARTNERSHIP WAS SOLD ON NOVEMBER 31, 2019 TO TTY PRODUCTIVITY SERVICES, LLC ( EIN# 84-1888481) FOR THE SALES PRICE OF $1.