2018-05-15T17:05:04-05:00 2017-06-30 910189318 Moss Adams LLP 4747 Executive Drive Suite 1300 San Diego CA 92121 990 2016-07-01 237421224 CITY UNIVERSITY OF SEATTLE CITY 2062394911 521 WALL STREET NO 100 seattle WA 98121 Dave C Lawrence Vice Chancellor, Finance 2062394911 2018-05-14 1 Patricia J Mayer P00188643 8586271400 2016 2022-09-23 18:48:47Z Randy Frisch 521 WALL STREET NO 100 seattle WA 98121 42391844 0 X WWW.CITYU.EDU X 1973 WA CITY UNIVERSITY OF SEATTLE IS A PRIVATE, NOT-FOR-PROFIT INSTITUTION OF HIGHER EDUCATION. 22 21 717 40 0 0 716691 4386636 33808676 37585954 25192 29010 1860054 373152 36410613 42374752 352855 274177 0 0 21038871 21067798 0 0 0 18080838 15353685 39472564 36695660 -3061951 5679092 20141586 33019277 12677124 19833852 7464462 13185425 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 25754768 37585954 CITY UNIVERSITY OF SEATTLE IS A PRIVATE, NOT-FOR-PROFIT UNIVERSITY WITH APPROXIMATELY 6,636 ENROLLMENTS AND AWARDED 1,402 DEGREES DURING THE YEAR ENDED JUNE 30, 2017. 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. 274177 274177 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 $4.1 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. 26028945 1 1 0 0 0 0 0 1 0 0 1 0 0 0 1 1 0 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 77 0 1 717 1 0 1 CA 0 0 0 0 0 0 0 0 X 22 21 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 WA X Christopher Bryan Accounting Manager 2062394911 521 WALL STREET NO 100 seattle WA 98121 Carlos Rodriguez trustee 3.00 X 0 0 0 Dan Pittard trustee 3.00 X 0 0 0 Dr Donald Kripke trustee 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 54310 0 2297 Gerald Czarnecki Trustee 3.00 X 0 0 0 Herbert Meistrich Trustee 3.00 X 0 0 0 Hiep Quach trustee 3.00 X 0 0 0 Jay Stone trustee 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 Michael R McGill trustee 3.00 X 0 0 0 Rebecca Henderson Trustee 3.00 X 0 0 0 Richard Chisholm Trustee 3.00 X 0 0 0 Robert Freelen trustee 3.00 X 0 0 0 Ruthann Heinrich Trustee 3.00 X 0 0 0 Stacy Allison Trustee 3.00 X 0 0 0 Thomas Topuzes Trustee 3.00 X X 0 0 0 Tom Clevinger Trustee 3.00 X 0 0 0 WH Knight Jr trustee 3.00 X 0 0 0 Christopher Bryan Director, Finance 50.00 X 7692 0 0 Dave C Lawrence Vice Chancellor, Finance 45.00 X 4263 0 463 Randy Frisch President 50.00 X 361475 0 47171 Kurt Kristein Provost 50.00 X 175711 0 15996 Matthew Hanusa VP, Enrollment Services 50.00 X 177723 0 23917 Arden Henley VP, University Advancement 50.00 X 118280 0 8556 Kelly Flores Dean, School of Education/ 50.00 X 103537 0 13450 Kevin Brown Director, Information Tech 50.00 X 142690 0 23032 Melissa Mecham VP , Student Services/Regi 50.00 X 144755 0 17627 Thomas Cary Dean, School of Busienss 50.00 X 115841 0 13750 DR JERRY LEE II chancellor emeritus 3.00 X 146858 0 0 Richard E Carter Former, President 50.00 X 220774 0 133007 1773909 0 299266 15 1 1 0 Point IT 151 Western Ave Suite 350 Seattle WA 98119 Internet Marketing Service 792349 Sabey Data Centers 12201 Tukwila Intl Bvld Seattle WA 98168 Network Service 591323 Sierra-Cedar 1255 Alderman Drive Alpharetta GA 30005 Server Hosting Service 501172 Wexley School for Girls 2218 5th Avenue Seattle WA 98121 Advertising Agency 325737 Google Inc 1600 Amphitheatre Pkwy Mountain View CA 94043 Advertising 305407 28 364057 4022579 4386636 educational services 611310 37585954 37585954 37585954 29010 29010 67335 17092 50243 50243 50243 Miscellaneous Income 900099 284447 284447 Meal Plan Revenue 900099 38300 38300 Bookstore commission 900099 162 162 322909 42374752 37585954 0 402162 227984 227984 46193 46193 985928 176911 809017 16351338 13943780 2407558 453433 337418 116015 1959762 1423189 536573 1317337 1068067 249270 22732 596 22136 115550 115550 1017850 350636 667214 1897370 85228 1812142 1022797 709405 313392 1101768 6446 1095322 5485680 4778755 706925 687191 451836 235355 41300 30212 11088 49632 49632 425303 425303 1705317 1047834 657483 18797 18797 Instructional materials 467295 455294 12001 Credit card fees 324842 324842 Bad Debt Expense 222192 222192 748069 342127 405942 36695660 26028945 10666715 0 8954356 2877459 15456020 492977 803215 1277352 1177352 670319 562162 31618193 24213986 7929097 7404207 3934416 9149 808336 804446 20141586 33019277 3023678 2503859 2126911 2857857 516623 6141446 7009912 8330690 12677124 19833852 X 7103997 9270072 360465 3915353 7464462 13185425 20141586 33019277 X 5679092 41871 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 237000 237000 X 0 12376902 7147201 5229701 19241291 17066785 2174506 7404207 deferred rent 2329577 financed leasehold improvement payable 3952802 payable affiliate 2048311 8330690 X 42117667 17092 17092 42100575 274177 274177 42374752 36438575 17092 17092 36421483 274177 274177 36695660 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 benefits and/or liabilities are recognized for income tax positions taken or expected to be taken in a tax return, only when it is determined that the income tax position will more-likely-than-not be sustained upon examination by taxing authorities. NUS has analyzed the tax positions taken in its filings with the Internal Revenue Service and the California Franchise Tax Board. NUS believes that its income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on NUS's financial condition, changes in net assets, or cash flows. Accordingly, NUS has not recorded any reserves, or related accruals for interest and penalties for uncertain income tax positions at June 30, 2017 and 2016. Part XI, Line 2d - Other Adjustments: rental expenses 17,092. Part XI, Line 4b - Other Adjustments: SCHOLARSHIP EXPENSE 274,177. Part XII, Line 2d - Other Adjustments: rental expenses 17,092. Part XII, Line 4b - Other Adjustments: SCHOLARSHIP EXPENSE 274,177. 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. 1 East Asia and the Pacific 0 3 Program services Student recruiting 141279 North America 4 4 Program Services Student recruiting, program management and instruction 219458 North America Grantmaking Scholarships 22188 North America 4 23 Program services Branch locations in Canada, instruction and program management 3553649 South Asia 0 3 Program services Student recruiting, program management and instruction 452909 East Asia and the Pacific - Australia, Brunei, Burma, Cambodia, Grantmaking Grantmaking 24005 8 33 0 0 8 33 4413488 0 4413488 GRANTS TO INDIVIDUALS North America 46 22188 Scholarship 0 n/a fmv GRANTS TO INDIVIDUALS East Asia and the Pacific 6 24005 Scholarship 0 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: Method of Accounting - Accrual Basis 1 scholarships, TUITION WAIVERS 456 0 227984 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 1 0 0 0 0 0 1 0 Randy Frisch President 361475 0 0 0 0 0 20213 0 26958 0 408646 0 0 0 Kurt Kristein Provost 175711 0 0 0 0 0 5234 0 10762 0 191707 0 0 0 Matthew Hanusa VP, Enrollment Services 177723 0 0 0 0 0 0 0 23917 0 201640 0 0 0 Kevin Brown Director, Information Tech 142690 0 0 0 0 0 4185 0 18847 0 165722 0 0 0 Melissa Mecham VP , Student Services/Regi 144755 0 0 0 0 0 4322 0 13305 0 162382 0 0 0 DR JERRY LEE II chancellor emeritus 0 0 0 0 146858 0 0 0 0 0 146858 0 0 0 Richard E Carter Former, President 206530 0 14244 0 0 0 75000 0 58007 0 353781 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 Richard Carter's Employment contract, he was reimbursed for certain expenses for housing receptions and conducting university related business in his residence. Part I, Line 4b DR. JERRY LEE PARTICIPATED IN A 457(B) SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN DURING FISCAL YEAR ENDING JUNE 30, 2017. INCLUDED AS TAXABLE COMPENSATION WAS $146,858 FOR DR. JERRY LEE FOR THE YEAR ENDING 6/30/17. 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 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 periodically 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 council. 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 council and was reviewed by the board during the year ended June 30, 2017. 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 MAY 2017. 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 41,871. FORM 990, PART VII, COMPENSATION: COMPENSATION: RELATED PARTY ALL COMPENSATION FOR CERTAIN OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES IS ALLOCATED BY SMG TO NUS AFFILIATES PURSUANT TO THE AFFILIATION AGREEMENT. FOR A COMPLETE LISTING OF RELATED PARTY ALLOCATION OF COMPENSATION AND BENEFITS PLEASE REFER TO SMG FORM 990, SCHEDULE O DISCLOSURE. SYSTEM MANAGEMENT GROUP 11355 NORTH TORREY PINES ROAD LA JOLLA CA 92037 201269904 PROVIDE ADMINISTRATIVE SERVICES TO AFFILIATED INSTITUTIONS CA 501(c)(3) Line 12a, I 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 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 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 0 0 1 0 1 0 0 0 0 0 0 0 1 1 1 1 0 0 0 national university C 364057 cash national university E 2048311 CASH SYSTEM MANAGEMENT GROUP M 387926 CASH national university M 2354882 cash national university P 1400000 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 LONG-TERM 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 NON-PROFIT ORGANIZATIONS EXEMPT UNDER IRC SECTION 501(C)(3): NATIONAL UNIVERSITY, NATIONAL UNIVERSITY VIRTUAL HIGH SCHOOL, WESTMED COLLEGE, JOHN F. KENNEDY UNIVERSITY, CITY UNVIVERSITY 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 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, WESTMED COLLEGE, JOHN F. KENNEDY UNIVERSITY, CITY UNIVERSITY OF SEATTLE, AND SYSTEM MANAGEMENT GROUP.