2019-11-08T16:01:12-06:00 2018-12-31 390859910 Baker Tilly Virchow Krause LLP 225 S 6th St Ste 2300 Minneapolis MN 55402 990 2018-01-01 472237488 Zenith Education Group Inc ZENI 6512210566 111 Washington Ave So 1400 Minneapolis MN 55401 Martin A Scanlon CFO & Treasurer 2019-11-08 true Lawrence H Mohr CPA P00447603 6128764500 2018 2020-01-14 16:20:31Z Altierus Career College Altierus Career Education and WyoTech Todd Steele 111 Washington Ave So 1400 Minneapolis MN 55401 175417441 false X www.zenith.org X 2014 DE From initial career planning and skills assessment, all the way through graduation and finding a job in a chosen field, Zenith Education Group, Inc. helps students succeed. Zenith Education Group, Inc., a nonprofit career education provider, is helping bridge our nation's skills gap and support the U.S. economy. Zenith Education Group, Inc. offers affordable, high-quality programs that are regularly updated to provide students with training for in-demand skills so students are prepared, well-trained and ready to work in fulfilling careers immediately upon graduation. Above all, Zenith Education Group, Inc. is driven to promote the long-term success of our graduates. 9 8 1584 0 0 22177 154403693 139317923 120403255 35979304 125736 -3141561 197395 119676 275130079 172275342 19014254 4699498 0 115383577 55855729 0 0 163346598 151464527 297744429 212019754 -22614350 -39744412 20379979 10990662 81621193 111976288 -61241214 -100985626 To help students succeed in their pursuit of an educational experience that prepares them for the workforce. false false 79263022 0 35979304 Instruction and Student Services. Zenith Education Group, Inc., dba Altierus Career College, Altierus Career Education and WyoTech, offers educational opportunities with an emphasis in allied health, technology and trades. Zenith Education Group, Inc. engages with faculty, industry leaders, and employers to help identify skills, competencies, behaviors and certifications that fit the needs of the marketplace and enhance each graduate's ability to find a job in his or her chosen field. The schools are accredited and, in 2018, granted associate degrees or diplomas and bachelor's degrees. Zenith Education Group, Inc. also offers certifications within degree and diploma programs that allow more students to earn industry-recognized credentials that are valuable and desired by employers. Zenith Education Group, Inc. serves a non-traditional, underserved student population: 84% of Zenith Education Group, Inc. students are eligible for Pell Grants (69% are eligible for full Pell Grants); 71% of Zenith Education Group, Inc.'s student body is female; 83% of students are non-white; 59% of students are more than 25 years old; only 41% of Zenith Education Group, Inc.'s students are first-time, first-year college students; and only 29% of students depend upon their parents' or guardians' financial resources. Zenith Education Group, Inc. delivers services that make a student's transition from high school to a postsecondary institution as easy and straightforward as possible. Zenith Education Group, Inc. provides students with individualized academic support through academic counseling, tutoring, and remedial education services that furnish tools and resources necessary for successful program completion; financial literacy counseling to assist students in managing their student loans and to help minimize their student loan debt; and career counseling to promote meaningful employment after graduation in the student's field of study. Learning resource centers on Zenith Education Group, Inc. campuses support academic programs by providing books, shop and service manuals, periodicals, computers and curriculum-based online resources. The learning resource centers are staffed with trained professionals to assist in the research needs of students and faculty. The education Zenith Education Group, Inc. students receive emphasizes employability and professional accomplishment. The academic and career success of our graduates is paramount. Zenith Education Group, Inc.'s holistic approach focuses on the goal of graduation and job placement, emphasizing student attendance, overall attitude, academic performance and self-directed job search skills acquired through working with the career services staff. Zenith Education Group, Inc.'s career services experts provide students with placement assistance, including preparation of resumes and letters of introduction, interviewing techniques and job referrals. Zenith Education Group, Inc. career services professionals also arrange on-campus employer visits, lectures, career fairs and field trips to enhance the likelihood that students will obtain well-paying jobs. Zenith Education Group, Inc. also offers student activities that encourage school spirit and develop student leadership, including intramural sports, clubs, professional development programs, resource fairs and other extracurricular activities planned year-round. On November 8, 2017, Zenith Education Group, Inc. announced that 21 of the 24 Altierus and Wyotech schools would be taught out and would no longer accept enrollments effective immediately. During 2018, Zenith Education Group, Inc. completed the teachout of 20 of the 21 campus and online locations. It is anticipated that the last teachout would be completed during 2019. For the remaining Altierus schools, management is focused on further reducing operating expenses; introducing new programs; and enhancing or establishing partnerships with vendors, employers and other parties to expand placement opportunities for students as well as expand and promote career and technical education. As of December 31, 2018, Zenith Education Group, Inc. enrolls approximately 800 students and operates 3 schools in 3 states, and is completing the teachout of one additional school. 4699498 4699498 0 Grants and Scholarships. Zenith Education Group, Inc. offers the following scholarship and grant programs to make college affordable for our students: Zenith American Dream Scholarships, Zenith Student Grants, Zenith Graduation Financial Assistance and Military Scholarships. Funds are available to pay for tuition, books and fees. The Zenith American Dream Scholarship is a multimillion-dollar institutional scholarship program available to new students and to previously enrolled students at any Zenith Education Group, Inc.-owned Alterius or WyoTech schools. New students who enroll at any Altierus or WyoTech institution with a start date on or after January 1, 2017, and who receive a written reference from a leader in the local community are eligible to apply for a Zenith American Dream New Student Scholarship of $2,000. Students who have not previously been awarded a Zenith American Dream Scholarship, who are in their final term or module, and who receive a written reference from an instructor or externship supervisor, are eligible to apply for a Zenith American Dream Graduation Scholarship of $2,000. In 2018, Zenith Education Group, Inc. distributed approximately $300,000 American Dream Scholarships to 207 students. The Zenith Student Grants are institutional grants of up to $10,000 per student per academic period available to all students who demonstrate financial need and enroll on or after February 2, 2015 in Zenith Education Group, Inc.-owned Altierus and WyoTech schools. In 2018, Zenith Education Group, Inc. distributed approximately $1 million in Student Grants to 1,577 students. Zenith Graduation Financial Assistance is a non-need-based institutional financial assistance award of up to $10,000 per student per academic period, available to students who enrolled prior to February 2, 2015 in Zenith Education Group, Inc.-owned Altierus schools. Upon a student's graduation, the financial assistance provides a 20% tuition reduction. Zenith Education Group, Inc. distributed approximately $7,000 in Graduation Financial Assistance in 2018 to 2 students. Military Scholarships offer up to 50% of tuition per term or academic period for military personnel serving in the Armed Forces, and up to 10% of tuition per term or academic period for their spouses, as well as for veterans and their dependents using VA Education Benefits. In 2018, Zenith Education Group, Inc. distributed more than $70,000 in Military Scholarships to 89 military personnel, veterans and their dependents. On November 8, 2017, Zenith Education Group, Inc. announced that 21 of the 24 Altierus and Wyotech schools would be taught out and would no longer accept enrollments effective immediately. During 2018, Zenith Education Group, Inc. completed the teachout of 20 of the 21 campus and online locations. It is anticipated that the last teachout would be completed during 2019. For the remaining Altierus schools, management is focused on further reducing operating expenses; introducing new programs; and enhancing or establishing partnerships with vendors, employers and other parties to expand placement opportunities for students as well as expand and promote career and technical education. As of December 31, 2018, Zenith Education Group, Inc. enrolls approximately 800 students and operates 3 schools in 3 states, and is completing the teachout of one additional school. 83962520 true true false false false false false false false true false false true true true true true true false false false false false false false false false true true false false false false false false false true false false false false false true false false false true 3745 0 1584 true true true false false false false false true false false false false false X 9 8 false false false false true true true true true false false true true true true true true true true false CA FL GA MI MN OR X Martin A Scanlon 6512210566 111 Washington Ave So Ste 1400 Minneapolis MN 55401 Jeremy J Wheaton President & CEO 0.0 40.0 X X 0 746904 89228 John F DePodesta Board Chair 1.0 16.0 X 0 180500 0 Julia Gouw Director 1.0 6.0 X 0 128000 0 Diana J Ingram Director 1.0 8.0 X 0 122500 0 I King Jordan Director 1.0 6.0 X 0 117500 0 James V McKeon Director 1.0 11.0 X 0 155000 0 Jack O'Connell Director 1.0 7.0 X 0 122500 0 Maurice M Salter Director 1.0 11.0 X 0 140000 0 K Paul Singh Director 1.0 10.0 X 0 124000 0 Daniel S Fisher General Counsel/Corp Secretary 0.0 40.0 X 0 558196 79105 Martin A Scanlon CFO & Treasurer 0.0 40.0 X 0 623772 69806 Mary Ostrye SVP & Provost 40.0 0 X 316539 0 16655 Tom O'Donnell SVP, Operations 40.0 0 X 299228 0 43762 Todd Allard Chief Marketing Officer 40.0 0 X 299605 0 5158 Keith Burkhalter SVP, Admissions 40.0 0 X 325956 0 4944 Jill Cochran VP, Admissions Operations 40.0 0 X 290473 0 40230 Karen Turner SVP, Chief Business Development Officer 40.0 0 X 349320 0 5375 Stuart Vanorny Consultant, Academic Technology (effective 11-02-18) VP, Inst Design & Tech (until 11-01-18) 40.0 0 X 294820 0 38135 Robert Kenyon SVP & Chief Accounting Officer 0.0 0.0 X 0 110625 0 Joshua Susser Interim VP Marketing 0.0 40.0 X 0 299886 31638 John Andrews VP, Accreditation & Licensing 40.0 0 X 223135 0 22314 James G Gilbertson ECMCSS SVP, Finance & Zenith CFO (until 11-08-17) 0.0 40.0 X 0 361131 1325 Gregory A Van Guilder Former Treasurer, Current ECMC Group CIO 0.0 40.0 X 0 898580 92322 Roberta Cooper Ramo Former Director 0.0 0.0 X 0 75000 0 Peter J Taylor Former CEO & President, Current President & Director, ECMC Foundation 0.0 40.0 X 0 560681 120889 2399076 5324775 660886 75 true true false Validated Insights Inc 961 Cumberland Ln Buffalo Grove IL 60089 Marketing Professional Services 2131256 Allied Universal Security Services PO Box 828854 Philadelphia PA 19182 Security Services 1362065 CBRE PO Box 848844 Los Angeles CA 90084 Facility Services 1303118 Ambassador Education Solutions 445 Broad Hollow Rd Ste 206 Melville NY 11747 Bookstore 1089021 Vision Development & Construction Services 120 Interstate N Pkwy SE Ste 130 Atlanta GA 30339 Facility Services 1041047 38 X 138839263 478660 139317923 Instruction 611310 34714029 34714029 Bookstore 611310 1206991 1206991 Student Housing 611310 58284 58284 0 0 0 0 35979304 538 538 0 0 0 3142099 0 -3142099 -3142099 -3142099 119676 0 0 119676 119676 172275342 35979304 0 -3021885 4699498 4699498 676184 342990 333194 42015635 31038619 10977016 2247731 1660488 587243 6963267 5144042 1819225 3952912 2920173 1032739 223393 223393 198148 198148 4865052 3382281 1482771 0 3215326 3213589 1737 2743284 1092646 1650638 3456889 590446 2866443 22243080 22163875 79205 831710 439386 392324 130962 51361 79601 31403 31403 432942 432942 1746806 7858 1738948 1088862 85478 1003384 Impairment 103000853 103000853 Bookstore 1603004 1603004 Housing 2468633 2468633 Unrelated Business Income Tax 2000 2000 3182180 2593808 588372 0 212019754 83962520 128057234 0 4800757 5230708 1985 1790979 488078 0 0 0 480879 81673 7298090 3062761 18443011 17788604 3574049 654407 0 0 591491 1841749 1473035 20379979 10990662 24996319 96576102 8309859 1514396 0 48315015 13885790 81621193 111976288 X -61241214 -100985626 -61241214 -100985626 20379979 10990662 -39744412 0 X false true X true true true X 3558355 3558355 0 14610207 14230249 379958 274449 274449 654407 Other Receivables Deposits 1472720 Due From Foundation 315 1473035 2000 Capital Leases Accrued Rent Lease Incentive Obligation 27044 Operating Lease FMV Adjustment Federal Perkins Loans Earn Out Agreement Liability with ED 7764721 Due to ECMC Foundation Deferred Grant Revenue 2797350 State Grant Funds Liability Notes payable to ECMC Group, Inc. Due to ECMC Group, Inc. 580526 Due to Educational Credit Management Corporation 494047 Deferred Compensation Plan Liability Due to ECMC Shared Services Company, LLC 2219739 Due to ECMC Holdings Corporation 363 13885790 X 36733000 -693 -693 36733693 135541649 135541649 172275342 210477000 -1105 -1105 210478105 1541649 1541649 212019754 Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote The FIN 48 (ASC 470) disclosure in the Zenith Education Group, Inc. (Zenith) financial statements reads as follows: "The Internal Revenue Service has determined that Zenith is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. Zenith is also exempt from state income tax. However, any unrelated business income may be subject to taxation. Zenith follows the accounting standards in evaluating uncertain tax positions. This guidance prescribes recognition threshold principles for the financial statement recognition of tax positions taken or expected to be taken on a tax return that are not certain to be realized. No liability has been recognized by Zenith for uncertain tax positions as of December 31, 2018 or 2017. Zenith's tax returns are subject to review and examination by federal and state authorities." Schedule D, Part XI, Line 2(d) Other revenues in audited financial statements not in form 990 Rounding adjustment because dollars are reported in thousands on the audited financial statements - -693 Schedule D, Part XI, Line 4(b) Other revenues in form 990 not in audited financial statements Cash contribution from ECMC Group, Inc. - 134000000 Zenith Education Group, Inc. scholarships and financial assistance - 4683748 Loss on disposal of fixed assets - -3142099 Schedule D, Part XII, Line 2(d) Other expenses in audited financial statements not in form 990 Rounding adjustment because dollars are reported in thousands on the audited financial statements - -1105 Schedule D, Part XII, Line 4(b) Other expenses in form 990 not in audited financial statements Zenith Education Group, Inc. scholarships and financial assistance - 4683748 Loss on disposal of fixed assets - -3142099 true true true true true true false false false false false false false false false true false true Schedule E, Part I, Line 3 RACIALLY NONDISCRIMINATORY POLICY Zenith Education Group, Inc.'s racially nondiscriminatory policy is published in the school catalog, in materials provided to prospective students and to registering students, and in marketing communications. Zenith Education Group, Inc. draws students from diverse populations and does not discriminate against any race, color, ethnicity, national origin, or any other protected class. Schedule E, Part I, Line 4(d) RECORDS AND COPIES MAINTAINED BY THE ORGANIZATION No contributions are solicited. Schedule E, Part I, Line 6(a) FINANCIAL AID OR ASSISTANCE FROM A GOVERNMENT Zenith Education Group, Inc. participates in U.S. Department of Education Supplemental Educational Opportunity Grant, Pell grant and Federal Work Study programs. true Student Scholarships and Financial Assistance 1919 4699498 Schedule I, Part III Student Scholarships and Financial Assistance Zenith Education Group, Inc. provides scholarship and financial assistance to students for tuition, books, fees and housing. Scholarship and grant programs include Zenith American Dream Scholarships, Zenith Student Grants, Zenith Graduation Financial Assistance and Military Scholarships. Awards are based on eligibility and are credited to each student's account. Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. A variety of student financing options are available to help students finance their education costs. Information about programs and eligibility requirements is available through the Student Finance Office. Enrollment and eligibility in Zenith Education Group, Inc. scholarships and grants are monitored internally. Other awards are monitored by the respective granting agencies. X true true X X X X true true false false true false true false false Peter J Taylor Former CEO & President, Current President & Director, ECMC Foundation 0 390609 0 80000 0 90072 0 112238 0 8651 0 681570 0 76984 Jeremy J Wheaton President & CEO 0 543354 0 200833 0 2717 0 59800 0 29428 0 836132 0 208 Roberta Cooper Ramo Former Director 0 75000 0 0 0 0 0 0 0 0 0 75000 0 0 John F DePodesta Board Chair 0 180500 0 0 0 0 0 0 0 0 0 180500 0 0 James V McKeon Director 0 155000 0 0 0 0 0 0 0 0 0 155000 0 0 John Andrews VP, Accreditation & Licensing 220522 0 0 0 2613 0 13360 0 8954 0 245449 0 0 0 James G Gilbertson ECMCSS SVP, Finance & Zenith CFO (until 11-08-17) 0 9879 0 56200 0 295052 0 624 0 701 0 362456 0 0 Gregory A Van Guilder Former Treasurer, Current ECMC Group CIO 0 372132 0 506000 0 20448 0 69447 0 22875 0 990902 0 18000 Daniel S Fisher General Counsel/Corp Secretary 0 306273 0 230949 0 20974 0 48099 0 31006 0 637301 0 7413 Martin A Scanlon CFO & Treasurer 0 323571 0 87500 0 212701 0 40326 0 29480 0 693578 0 0 Mary Ostrye SVP & Provost 303544 0 0 0 12995 0 16500 0 155 0 333194 0 0 0 Tom O'Donnell SVP, Operations 231744 0 66000 0 1484 0 14750 0 29012 0 342990 0 0 0 Robert Kenyon SVP & Chief Accounting Officer 0 0 0 0 0 110625 0 0 0 0 0 110625 0 0 Joshua Susser Interim VP Marketing 0 107908 0 72084 0 119894 0 12329 0 19309 0 331524 0 0 Todd Allard Chief Marketing Officer 14639 0 0 0 284966 0 1793 0 3365 0 304763 0 0 0 Keith Burkhalter SVP, Admissions 15435 0 0 0 310521 0 2760 0 2184 0 330900 0 0 0 Jill Cochran VP, Admissions Operations 143315 0 39400 0 107758 0 6749 0 33481 0 330703 0 0 0 Karen Turner SVP, Chief Business Development Officer 16447 0 0 0 332873 0 2972 0 2403 0 354695 0 0 0 Stuart Vanorny Consultant, Academic Technology (effective 11-02-18) VP, Inst Design & Tech (until 11-01-18) 142477 0 36300 0 116043 0 10120 0 28015 0 332955 0 0 0 Schedule J, Part I, Line 1a Tax indemnification and gross-up payments Certain taxable benefits are grossed up to make the employee whole. Schedule J, Part I, Line 4a Severance or change-of-control payment The following received a severance payment in 2018: Karen Turner - $300,407 Keith Burkhalter - $280,407 James G. Gilbertson - $273,729 Todd Allard - $270,407 Robert Kenyon - $110,625 Joshua Susser - $97,405 Jill Cochran - $88,888 Stuart Vanorny - $82,704 Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan ECMC Group, Inc. maintains a supplemental nonqualified retirement plan described in section 457(f), and a Supplemental Employee Retirement Plan (SERP), to attract and retain employees, typically in management positions. In 2018, Gregory A. Van Guilder participated in the 457(f) plan, and received employer contributions of $2,400, and Peter J. Taylor participated in the SERP plan, and received an employer contribution of $54,800. Schedule J, Part I, Line 5b Compensation contingent on revenues of a related organization ECMC Group, Inc.'s annual officer incentive plan requires achievement of stated primary financial goals, which includes revenues, before any payment to any officer is made. Schedule J, Part I, Line 6b Compensation contingent on net earnings of a related organization ECMC Group, Inc.'s annual officer incentive plan requires achievement of stated key performance metrics, which includes net earnings, before any payment to any officer is made. Richard J Boyle Mr. Boyle is a director and president of a company contracted with ECMC Group, Inc., a related org. 40000 See description of transaction in Part V false James F Ostrye Spouse of Dr. Mary Ostrye, SVP and Provost and Chief Academic Officer 186000 Consulting contract for Pharmacy Tech Dean services to Zenith Education Group, Inc. Dr. Ostrye was not a party to the contract negotiation, and does not review or authorize payments under the contract. The contract ended in 2018. false Schedule L, Part IV, Column (d) Description of Transaction Part IV, Line (1)-ECMC Group, Inc., a related organization, has a consulting contract with a company owned by a former director and president. For transparency of operation, the contract is reported in this Form 990 filing as ECMC Group, Inc. is the parent and supporting entity of Educational Credit Management Corporation and Zenith Education Group, Inc. and the parent organization of ECMC Foundation. The contract is for advisory services to ECMC Group, Inc. and began after the officer retired from the organization on February 1, 2014. The proposed terms of the contract were reviewed by the Governance & Compensation Committee of the ECMC Group, Inc. Board of Directors, which is wholly comprised of independent, outside directors. The Committee reviewed the business terms, tasks, duration of the proposed agreement and comparability data. They also heard from compensation consultants and outside counsel. The Committee made a recommendation that was then approved by the full ECMC Group, Inc. Board of Directors. The contract ended in 2018. Form 990, Part VI, Line 13 Whistleblower Policy The Zenith Education Group, Inc. whistleblower policy requires directors, officers and employees to observe high standards of business and personal ethics in the conduct of their duties and responsibilities. Employees and representatives of the Corporation are to practice honesty and integrity in fulfilling their responsibilities and comply with all applicable laws and regulations. The policy provides for reporting mechanisms of potential illegal practices or violations of corporate policies, and prohibits repercussions for good faith reporting of suspected violations under the policy. In addition, ECMC Group, Inc. has a code of ethics and business conduct policy that is affirmed annually by all ECMC Group, Inc. and affiliated companies' officers and employees. There is a provision incorporated into the code of ethics and business conduct policy that binds all employees that states there can be no repercussions for good faith reporting of potential illegal practices or violations of corporate policies. ECMC Group, Inc. has established an anonymous telephone hotline and website administered by an outside vendor to report concerns. The hotline and website are available and accessible to Zenith Education Group, Inc. directors, officers, employees and vendors. Form 990, Part VI, Line 6 Classes of members or stockholders Zenith Education Group, Inc. has one member. The member is ECMC Group, Inc. a Delaware, non-stock, nonprofit Corporation exempt under section 501(c)(3). There are no stockholders. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body ECMC Group, Inc. has the right to elect and/or approve all the directors of the Zenith Education Group, Inc. Board of Directors. Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders ECMC Group, Inc., the sole member of Zenith Education Group, Inc., retains the following authority over Zenith Education Group, Inc.: 1. To authorize amendments to the Articles of Incorporation and Bylaws. 2. To approve the strategic and financial plans. 3. To elect and/or approve the members of the Board of Directors. 4. To oversee coordination of programs and services offered. 5. To authorize formation, governance and dissolution. Form 990, Part VI, Line 11b Review of form 990 by governing body All members of the Board of Directors and executive management are provided a copy of Form 990 to review and provide comments prior to filing. All members of the Board of Directors and executive management are provided with a copy of the final version of Form 990 before it has been filed. Form 990, Part VI, Line 12c Conflict of interest policy Officers, directors and all employees are required to reaffirm on an annual basis their understanding of the company's Code of Ethics and Business Conduct. The affirmation specifically references that the individual will comply with the directives of the Code of Ethics and Business Conduct. Conflicts of Interest and disclosure of potential conflicts are included in the Code of Ethics and Business Conduct. Monitoring and enforcement of the policy are accomplished through the reaffirmation process. In cases where a potential conflict exists at the officer and key employee levels, the issue is disclosed to the General Counsel and/or Board Chair. For potential or real conflicts involving the CEO or a member of the Board of Directors, the disclosure is made to the Board Chair. The Board member or CEO will be required to excuse themselves from deliberation and voting on matters where they may have a conflict of interest. Form 990, Part VI, Line 15a Process to establish compensation of top management official The following describes the Educational Credit Management Corporation (ECMC), Zenith Education Group, Inc. and ECMC Group, Inc. executive compensation methodology. The Governance & Compensation Committee of the ECMC Group, Inc. Board of Directors is wholly comprised of independent, outside directors. In 2018, the Committee retained executive compensation experts from Grant Thornton, a global compensation consulting organization, through Arnold & Porter LLP to identify appropriate CEO and senior executive compensation packages. Arnold & Porter LLP provided an opinion on the reasonableness of this compensation. The market analysis performed by Grant Thornton for Arnold & Porter LLP includes salary and incentive data from an appropriate peer group under IRS regulations and includes both nonprofit and for-profit entities. Form 990, Part VI, Line 15b Process to establish compensation of other employees The following describes the Educational Credit Management Corporation (ECMC), Zenith Education Group, Inc. and ECMC Group, Inc. executive compensation methodology. The Governance & Compensation Committee of the ECMC Group, Inc. Board of Directors is wholly comprised of independent, outside directors. In 2018, the Committee retained executive compensation experts from Grant Thornton, a global compensation consulting organization, through Arnold & Porter LLP to identify appropriate CEO and senior executive compensation packages. Arnold & Porter LLP provided an opinion on the reasonableness of this compensation. The market analysis performed by Grant Thornton for Arnold & Porter LLP includes salary and incentive data from an appropriate peer group under IRS regulations and includes both nonprofit and for-profit entities. Form 990, Part VI, Line 19 Required documents available to the public No documents are made available to the public. Form 990, Part VII, Section A Consulting Roberta Cooper Ramo, a former Director, had a consulting agreement in 2018. Form 990, Part VIII, Line 11d Other Miscellaneous Revenue Miscellaneous - Total Revenue: 119676, Related or Exempt Function Revenue: , Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: 119676; ECMC Group Inc 111 Washington Ave So Ste 1400 Minneapolis MN 55401 411991995 Education Finance DE 501(c)(3) Type II NA false Educational Credit Management Corporation 111 Washington Ave So Ste 1400 Minneapolis MN 55401 411778617 Guarantor MN 501(c)(3) 10 ECMC Group Inc false ECMC Foundation 111 Washington Ave So Ste 1400 Minneapolis MN 55401 411990628 Promote Education DE 501(c)(3) Type II ECMC Group Inc false ECMC Revenue Management Corporation 111 Washington Ave So Ste 1400 Minneapolis MN 55401 831761663 Student Loan Default Resolution DE Educational Credit Management Corporation false ECMC Services Inc 111 Washington Ave So Ste 1400 Minneapolis MN 55401 831763915 Student Loan Repayment Services DE 501(c)(3) 10 Educational Credit Management Corporation false Oakdale Investment Management Corporation 111 Washington Ave So Ste 1400 Minneapolis MN 55401 352085743 Holding Investments DE ECMC Group Inc C Corporation false ECMC Holdings Corporation 111 Washington Ave So Ste 1400 Minneapolis MN 55401 411991992 Strategic Oversight DE ECMC Group Inc C Corporation false Educational Credit Services Co 111 Washington Ave So Ste 1400 Minneapolis MN 55401 411992001 Private Loans DE NA C Corporation false ECMC Records & Rec Mgmt Corporation 111 Washington Ave So Ste 1400 Minneapolis MN 55401 411989959 Document Management DE NA C Corporation false ECMC Management Services Corporation 111 Washington Ave So Ste 1400 Minneapolis MN 55401 411989960 Management Services DE NA C Corporation false ECMC Technology Services Corporation 111 Washington Ave So Ste 1400 Minneapolis MN 55401 411989958 Technology Services DE NA C Corporation false ECMC Servicing Corporation 10370 Peter A McCuen Blvd Mather CA 95655 471154366 Loan Servicing DE NA C Corporation false false false true false true false false false false false false false true true false true false false false Schedule R, Part I Disregarded Entities of Related Organizations 1(a)-Name. Oakdale Student Loan Funding, LLC (27-1914648), 111 Washington Ave So, Ste 1400, Minneapolis, MN 55401. 1(b)-Primary activity. Holding FFELP Loans. 1(c)-Legal domicile. DE. 1(f)-Direct controlling entity. ECMC Group, Inc. 2(a)-Name. ECMC Shared Services Company, LLC (81-0690960), 111 Washington Ave So, Ste 1400, Minneapolis, MN 55401. 2(b)-Primary activity. Support Services Functions. 2(c)-Legal domicile. DE. 2(f)-Direct controlling entity. ECMC Group, Inc. 3(a)-Name. Patriot Student Loan Capital, LLC (81-3501777) 111 Washington Ave So, Ste 1400, Minneapolis, MN 55401. 3(b)-Primary Activity. Trust Student Loans. 3(c)-Legal Domicile. DE. 3(f)-Direct Controlling Entity. ECMC Group, Inc. 4(a)-Name. Premiere Credit of North America, LLC (35-2085743), 2002 Wellesley Blvd, #100, Indianapolis, IN 46219. 4(b)-Primary activity. Accounts Receivable Management. 4(c)-Legal domicile. IN. 4(f)-Direct controlling entity. ECMC Holdings Corporation. 5(a)-Name. Healthcare Billing Administrators, LLC (81-4038009) 2002 Wellesley Blvd, #100, Indianapolis, IN 46219. 5(b)-Primary Activity. Provider of Contingent Collections in the Healthcare Provider Market. 5(c)-Legal Domicile. IN. 5(f)-Direct Controlling Entity. Premiere Credit of North America, LLC. Schedule R, Part V, Line 1c Gift, grant, or capital contribution from related organization(s) $4,839,263 grants made by ECMC Foundation to Zenith Education Group, Inc. to fund programs with a focus on career readiness in support of it's ECMC Foundation's mission to inspire and to facilitate improvements that affect educational outcomes, especially among underserved populations, through evidence-based innovation. Schedule R, Part V, Line 1m Performance of services by related organization(s) $432,942 for default aversion services were paid to Educational Credit Management Corporation. Schedule R, Part V, Line 1c Gift, grant, or capital contribution from related organization(s) $134,000,000 contribution made by ECMC Group, Inc. to Zenith Education Group, Inc. to support its mission to help students succeed in their pursuit on an educational experience that prepares them for the workforce. Schedule R, Part V, Line 1e Loans or loan guarantees by related organization(s) $1,500,000 contingent liability. Zenith Education Group, Inc. and ECMC Group, Inc., as co-applicants, established a letter of credit. The letter of credit expired in March 2018. In March 2019, the letter of credit was amended for $150,000 and expires in March 2020. Schedule R, Part V, Line 1p Reimbursement Paid to Related Organization(s) for Expenses $8,819,882 Paid to ECMC Shared Services Company, LLC, a wholly owned subsidiary of ECMC Group, Inc., a related organization, for expenses. Schedule R, Part V, Line 1p Reimbursement Paid to Related Organization(s) for Expenses $495,185 Paid to Educational Credit Management Corporation for Expenses. Schedule R, Part V, Line 1n Sharing of Facilities, Equipment, or Other Assets with Related Org(s) $174,098 allocated expenses for Facilities, Equipment, Mailing Lists or Other Assets shared with ECMC Group, Inc. Schedule R, Part V, Line 1p Reimbursement Paid to Related Organization(s) for Expenses $3,632,132 Paid to ECMC Group, Inc. for Expenses. Schedule R, Part V, Line 1e Loans or loan guarantees by related organization(s) Other guarantees: Zenith Education Group, Inc. leases facilities under non-cancelable operating leases expiring at various dates through 2027 which are guaranteed by ECMC Group, Inc. ECMC Group, Inc. has committed to continue to provide financial support in the amount of $50 million which is projected to cover cash flow needs through March 31, 2020. In the event of an unanticipated liquidity need, the Board of Directors of ECMC Group, Inc. has approved additional financial support in the amount of $5 million conditioned on the request of the Chief Financial Officer and the approval of the Finance Committee Chair.