2016-11-15T12:55:02-06:00 2015-12-31 420714325 RSM US LLP PO BOX 5946 MADISON WI 537050946 990 2015-01-01 271503981 HERZING UNIVERSITY LTD (FORMERLY HERZING EDUCATIONAL FOUNDATION LTD) HERZ 4142718103 W140 N8917 LILLY ROAD MENOMONEE FALLS WI 53051 ROBERT HERZOG CHIEF FINANCIAL OFFICER/TREASU 4142715165 2016-11-15 1 JAMES G GRAHAM P00006111 6088332612 2015 2017-02-10 21:41:12Z RENEE HERZING W140 N8917 LILLY ROAD MENOMONEE FALLS WI 53051 124120322 0 X WWW.HERZING.EDU X 2009 WI HERZING UNIVERSITY IS A REGIONALLY-ACCREDITED, PRIVATE CAREER UNIVERSITY THAT PROVIDES EDUCATIONAL PROGRAMS AT THE CERTIFICATE, UNDERGRADUATE, AND GRADUATE LEVELS FOR A DIVERSE STUDENT POPULATION IN TRADITIONAL, NON-TRADITIONAL AND ONLINE DELIVERY FORMATS. THE ADMINISTRATIVE OFFICES ARE LOCATED IN SUBURBAN MILWAUKEE, WI WITH TWELVE CAMPUSES LOCATED THROUGHOUT THE UNITED STATES. THROUGH QUALITY TEACHING AND LEARNING, THE UNIVERSITY IS COMMITTED TO PROVIDE STUDENTS WITH OPPORTUNITIES TO DEVELOP THE KNOWLEDGE, UNDERSTANDING AND SKILLS NECESSARY FOR SUCCESSFUL EMPLOYMENT. COMMITTED TO THE PHILOSOPHY OF PUTTING STUDENTS AT THE CENTER OF THE UNIVERSITY MISSION, HERZING UNIVERSITY PREPARES GRADUATES FOR CAREERS IN TECHNOLOGY, BUSINESS, HEALTHCARE, DESIGN, AND PUBLIC SAFETY. 10 9 1587 0 0 0 193310 2057519 0 118165662 76689 1155860 5644 0 275643 121379041 128167 9819435 0 0 0 50436346 0 0 0 21853 53722229 150020 113978010 125623 7401031 841865 100284637 7064 93058873 834801 7225764 X IT IS THE MISSION OF HERZING UNIVERSITY TO PROVIDE HIGH-QUALITY UNDERGRADUATE AND GRADUATE DEGREES AND DIPLOMA PROGRAMS TO PREPARE A DIVERSE AND GEOGRAPHICALLY DISTRIBUTED STUDENT POPULATION TO MEET THE NEEDS OF EMPLOYERS IN TECHNOLOGY, BUSINESS, HEALTHCARE, DESIGN, AND PUBLIC SAFETY. CAREER-ORIENTED DEGREE PROGRAMS INCLUDE A COMPLEMENTARY AND INTEGRATED GENERAL EDUCATION CURRICULUM ESTABLISHED TO STIMULATE STUDENTS' INTELLECTUAL GROWTH, TO CONTRIBUTE TO THEIR PERSONAL DEVELOPMENT, AND TO ENHANCE THEIR POTENTIAL FOR CAREER ADVANCEMENT. 1 0 88332264 9819435 118165662 HERZING UNIVERSITY PROVIDES EDUCATIONAL PROGRAMS AT THE CERTIFICATE, UNDERGRADUATE, AND GRADUATE LEVELS FOR A DIVERSE STUDENT POPULATION IN TRADITIONAL, NON-TRADITIONAL AND ONLINE DELIVERY FORMATS. THROUGH QUALITY TEACHING AND LEARNING, THE UNIVERSITY IS COMMITTED TO PROVIDE STUDENTS WITH OPPORTUNITIES TO DEVELOP THE KNOWLEDGE, UNDERSTANDING AND SKILLS NECESSARY FOR SUCCESSFUL EMPLOYMENT. COMMITTED TO THE PHILOSOPHY OF PUTTING STUDENTS AT THE CENTER OF THE UNIVERSITY MISSION, HERZING UNIVERSITY PREPARES GRADUATES FOR CAREERS IN TECHNOLOGY, BUSINESS, HEALTHCARE, DESIGN, AND PUBLIC SAFETY. 88332264 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 1 0 0 0 1 0 0 0 0 0 1 1 0 0 0 1 0 0 0 1 1 0 0 0 0 1 0 0 0 1 274 0 1 1587 1 0 1 CA 0 0 0 0 0 0 0 0 X 10 9 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 0 1 1 1 0 WI X ROBERT HERZOG 4142715165 W140 N8917 LILLY ROAD MENOMONEE FALLS WI 53051 AVA YOUNGBLOOD CHAIR 1.00 X X 17300 0 0 JOSEPH FROEHLICH VICE CHAIR 1.00 X X 15150 0 0 PATRICIA TODUS SECRETARY 1.00 X X 15100 0 0 ERIN HARENG DIRECTOR 1.00 X 10000 0 0 JOSEPH PETER HEFFERNAN DIRECTOR 1.00 X 12700 0 0 HENRY HERZING DIRECTOR 1.00 X 11500 0 0 CHERYL KING DIRECTOR 1.00 X 13900 0 0 GUS RAMIREZ DIRECTOR 1.00 X 14350 0 0 MARK AMBROSIUS DIRECTOR 1.00 X 3300 0 0 WENDY BAUMANN DIRECTOR 1.00 X 2200 0 0 BLAKE FAULKNER PROVOST 40.00 X 359596 0 25428 RENEE HERZING PRESIDENT/CEO 40.00 X 335414 0 24955 RYAN O'DESKY CFO/TREASURER 40.00 X 336433 0 16853 BRIAN OLSON VP OF OPERATIONS 40.00 X 302853 0 22272 NIGEL LONGWORTH CIO/CAMPUS PRESIDENT 40.00 X 288441 0 24518 MICHAEL WIMER VP OF ADMISSIONS 40.00 X 198262 0 19157 ELIZABETH MARKHAM DEAN OF NURSING 40.00 X 180787 0 12053 JASON MORGAN CAMPUS PRESIDENT 40.00 X 171884 0 11490 KATHERINE KAUTZER VICE PROVOST FOR ACADEMIC AFFAIRS 40.00 X 160096 0 2931 HEATHER ANTONACCI CAMPUS PRESIDENT 40.00 X 157362 0 14971 JACKIE CURTIS ASSOCIATE VP OF STRATEGIC INITIATIVES 40.00 X 156331 0 10232 2762959 0 184860 11 0 1 0 GOOGLE INC 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043 ADVERTISING 3027815 BLACKBOARD INC 1111 19TH STREET NW WASHINGTON DC 20036 SOFTWARE SERVICES 2025989 HIGHER EDUCATIONCOM 1001 MCKINNEY STREET SUITE 400 HOUSTON TX 77002 ADVERTISING 1517675 YAHOO 701 FIRST AVENUE SUNNYVALE CA 94089 ADVERTISING 1056610 TW TELECOM LLC 10475 PARK MEADOWS DRIVE LITTLETON CO 80124 TELECOM SERVICES 793215 47 2057519 2000210 2057519 TUITION INCOME 900099 113126188 113126188 OTHER INCOME 900099 4416417 4416417 LICENSING 900099 623057 623057 118165662 341657 341657 2525484 1030000 2527549 213732 -2065 816268 814203 814203 121379041 118165662 0 1155860 9551883 9551883 267552 267552 1936499 1936499 42806903 41395382 1411521 1972021 1646136 325885 3720923 3474179 246744 538095 265341 272754 427158 423097 4061 373285 20822 352463 1615160 790044 825116 15675780 166906 15508874 2958390 2237430 720960 2018810 1498036 520774 6668225 5290847 1377378 1815878 1674649 141229 3452261 3452261 8098558 6124939 1973619 3145394 3142709 2685 TEXTBOOKS 4366457 4366457 ASSESSMENT EXPENSE 1165710 1165710 STUDENT EXPENSES 1014612 1014612 DUES & MEMBERSHIPS 254192 243364 10828 134264 119908 14356 113978010 88332264 25645746 0 0 15569038 243737 0 3300 0 0 1065368 0 41029 0 1541864 18150873 2079797 0 16071076 594828 14488690 0 51507572 841865 100284637 7064 8237336 0 1092325 83205556 0 10229 0 513427 7064 93058873 X 78171 6460764 214554 231000 542076 534000 834801 7225764 841865 100284637 7401031 -1010068 0 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 589943 20736 8915 601764 579878 10065 589943 267820 240982 71076 579878 25971 274719 -32870 267820 25000 971 25971 0.88850 0.11150 0 0 1390392 1390392 5566084 222497 5343587 5380805 997279 4383526 5481744 860021 4621723 331848 331848 16071076 CAPITAL LEASE PAYABLE 288535 DEFERRED RENT 224892 513427 X 110527698 -1010068 -9841275 -10851343 121379041 0 121379041 104136735 0 104136735 9841275 9841275 113978010 PART X, LINE 2: THE UNIVERSITY HAS RECEIVED NOTIFICATION THAT IT QUALIFIES AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE U.S. INTERNAL REVENUE CODE AND CORRESPONDING PROVISIONS OF STATE LAW AND, ACCORDINGLY, IS NOT SUBJECT TO FEDERAL OR STATE INCOME TAXES. THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, THE UNIVERSITY MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. EXAMPLES OF TAX POSITIONS INCLUDE THE TAX-EXEMPT STATUS OF THE UNIVERSITY AND VARIOUS POSITIONS RELATED TO THE POTENTIAL SOURCES OF UNRELATED BUSINESS TAXABLE INCOME. AS OF DECEMBER 31, 2015, THERE WERE NO UNRECOGNIZED TAX BENEFITS IDENTIFIED OR RECORDED AS LIABILITIES. THE UNIVERSITY WILL ANNUALLY FILE FORM 990 IN THE U.S. FEDERAL JURISDICTION AND IN THE STATE OF WISCONSIN. THE UNIVERSITY IS NO LONGER SUBJECT TO U.S. FEDERAL INCOME TAX EXAMINATIONS FOR YEARS ENDING THROUGH DECEMBER 31, 2011. THE UNIVERSITY IS NO LONGER SUBJECT TO WISCONSIN INCOME TAX EXAMINATIONS FOR YEARS ENDING THROUGH DECEMBER 31, 2010. PART XI, LINE 2D - OTHER ADJUSTMENTS: GRANTS TO INDIVIDUALS -9,819,435. FOREIGN EXCHANGE LOSS -21,840. PART XII, LINE 4B - OTHER ADJUSTMENTS: GRANTS TO INDIVIDUALS 9,819,435. FOREIGN EXCHANGE LOSS 21,840. 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 HERZING UNIVERSITY LTD. HAS ADOPTED A RACIALLY NONDISCRIMINATORY POLICY THAT COMPLIES WITH REVENUE PROCEDURE 75-50, AND HAS PUBLICIZED THE POLICY AS REQUIRED BY THE REVENUE PROCEDURE. THE UNIVERSITY'S RACIALLY NONDISCRIMINATORY POLICY IS INCLUDED IN ALL COURSE CATALOGS AND THE ADMISSION APPLICATION FORM. A LINK TO THE POLICY APPEARS ON EACH WEB PAGE IN THE UNIVERSITY'S WEBSITE, WWW.HERZING.EDU. SCHEDULE E, PART I, LINE 4 NO CONTRIBUTIONS ARE SOLICITED. 1 0 0 0 0 0 0 0 0 0 INSTITUTIONAL SCHOLARSHIPS EUROPE (INCLUDING ICELAND & GREENLAND) 3 12790 TUITION DISCOUNTS INSTITUTIONAL SCHOLARSHIPS NORTH AMERICA 5 34390 TUITION DISCOUNTS INSTITUTIONAL SCHOLARSHIPS EAST ASIA AND THE PACIFIC 40 91530 TUITION DISCOUNTS INSTITUTIONAL SCHOLARSHIPS SOUTH ASIA 48 115772 TUITION DISCOUNTS INSTITUTIONAL SCHOLARSHIPS CENTRAL AMERICA AND THE CARIBBEAN 2 12070 TUITION DISCOUNTS INSTITUTIONAL SCHOLARSHIPS SOUTH AMERICA 1 1000 TUITION DISCOUNTS 0 0 0 0 0 0 1 SCHOLARSHIPS 49 38803 INSTITUTIONAL SCHOLARSHIPS 11086 9513080 FORM 990, SCHEDULE I, PART III: INSTITUTIONAL SCHOLARSHIPS ARE TRACKED THROUGH THE UNIVERSITY'S STUDENT INFORMATION SYSTEM. MOST, IF NOT ALL STUDENT SCHOLARSHIPS, ARE CREDITED TO THE STUDENTS' ACCOUNTS WITHOUT FUNDS PASSING THROUGH THE STUDENTS' HANDS. X X X 0 0 0 0 0 0 0 0 0 BLAKE FAULKNER PROVOST 271496 0 87900 0 200 0 14070 0 11358 0 385024 0 0 0 RENEE HERZING PRESIDENT/CEO 268814 0 66600 0 0 0 13597 0 11358 0 360369 0 0 0 RYAN O'DESKY CFO/TREASURER 192100 0 144333 0 0 0 5504 0 11349 0 353286 0 0 0 BRIAN OLSON VP OF OPERATIONS 236646 0 66000 0 207 0 12066 0 10206 0 325125 0 0 0 NIGEL LONGWORTH CIO/CAMPUS PRESIDENT 225091 0 63000 0 350 0 13160 0 11358 0 312959 0 0 0 MICHAEL WIMER VP OF ADMISSIONS 198262 0 0 0 0 0 8742 0 10415 0 217419 0 0 0 ELIZABETH MARKHAM DEAN OF NURSING 180498 0 0 0 289 0 6500 0 5553 0 192840 0 0 0 JASON MORGAN CAMPUS PRESIDENT 146534 0 25000 0 350 0 6078 0 5412 0 183374 0 0 0 KATHERINE KAUTZER VICE PROVOST FOR ACADEMIC AFFAIRS 160096 0 0 0 0 0 2735 0 196 0 163027 0 0 0 HEATHER ANTONACCI CAMPUS PRESIDENT 137012 0 20000 0 350 0 4525 0 10446 0 172333 0 0 0 JACKIE CURTIS ASSOCIATE VP OF STRATEGIC INITIATIVE 124731 0 31250 0 350 0 4839 0 5393 0 166563 0 0 0 HERZING HOLDINGS II OWNED BY DIRECTOR HENRY HERZING AND PRESIDENT/CEO RENEE HERZING PART OF MERGER TRANSACTION X 86150000 83205556 0 1 1 83205556 HERZING HOLDINGS II INC OWNED BY DIRECTOR HENRY HERZING AND PRESIDENT/CEO RENEE HERZING 86150000 HERZING UNIVERSITY PURCHASED THE UNIVERSITY OPERATIONS FROM HERZING HOLDINGS II, INC. BASED ON APPRAISED VALUE OF $86,150,000. 0 HERZING HOLDINGS II INC OWNED BY DIRECTOR HENRY HERZING AND PRESIDENT/CEO RENEE HERZING 1030000 HERZING UNIVERSITY SOLD TRADEMARK RIGHTS BACK TO HERZING HOLDINGS II, INC. 0 HERZING HOLDINGS II INC OWNED BY DIRECTOR HENRY HERZING AND PRESIDENT/CEO RENEE HERZING 732922 ADMINISTRATIVE SERVICES AGREEMENT 0 HENRY HERZING (LLC DISREGARDED ENTITIES) DIRECTOR 864000 LEASE AGREEMENTS 0 S&R PROPERTY LLC OWNED BY DIRECTOR HENRY HERZING AND PRESIDENT/CEO RENEE HERZING 457000 LEASE AGREEMENTS 0 S&R PROPERTY II LLC OWNED BY DIRECTOR HENRY HERZING AND PRESIDENT/CEO RENEE HERZING 289000 LEASE AGREEMENTS 0 X 1 2000210 FMV ON DATE OF TRANSFER 0 0 0 FORM 990, PART III, LINE 2 ON JANUARY 1, 2015, THE ORGANIZATION ACQUIRED THE EDUCATIONAL OPERATIONS AND ASSETS OF HERZING INC., A FOR-PROFIT INSTITUTION, BY MEANS OF A MERGER TRANSACTION AND BEGAN OPERATING AS A NONPROFIT HIGHER EDUCATION INSTITUTION RENAMED HERZING UNIVERSITY, LTD. PART III, LINE 4A NOW DESCRIBES THE NEW PROGRAM SERVICE ACCOMPLISHMENTS OF THE ORGANIZATION. MORE DETAILS OF THE TRANSACTION AND CHANGE IN OPERATIONS WERE REPORTED ON THE 2014 FORM 990, SCHEDULE O. FORM 990, PART VI, SECTION A, LINE 2 HENRY HERZING, A DIRECTOR, AND RENEE HERZING THE PRESIDENT AND CEO, ARE FATHER AND DAUGHTER, RESPECTIVELY. FORM 990, PART VI, SECTION A, LINE 4 HERZING UNIVERSITY ADOPTED AMENDED AND RESTATED ARTICLES OF INCORPORATION. 1) THE NAME OF CORPORATION WAS CHANGED TO HERZING UNIVERSITY, LTD FROM HERZING EDUCATIONAL FOUNDATION, LTD. THE BYLAWS OF THE UNIVERSITY WERE ALSO REVISED, BY THE DIRECTORS, TO MORE ACCURATELY REFLECT ITS MISSION AND STATUS AS A NON-PROFIT HIGHER EDUCATION INSTITUTION. FORM 990, PART VI, SECTION B, LINE 11 A COPY OF THE 990 IS PROVIDED TO EACH BOARD MEMBER FOR REVIEW PRIOR TO SUBMITTING IT TO THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C ALL CONFLICT OF INTEREST STATEMENTS WERE REVIEWED BY THE BOARD'S GOVERNANCE/NOMINATING COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION IS REVIEWED ANNUALLY BY BOARD OF DIRECTORS COMPENSATION COMMITTEE. FORM 990, PART VI, SECTION C, LINE 19 THIS INFORMATION IS NOT MADE PUBLIC. FORM 990, PART XII, LINE 2C THE SELECTION OF HERZING UNIVERSITY'S INDEPENDENT ACCOUNTANT IS REVIEWED BY THE AUDIT/RISK/COMPLIANCE COMMITTEE OF THE BOARD OF DIRECTORS AND IT IS APPROVED ANNUALLY BY THE BOARD OF DIRECTORS. MEDICAL TECHNOLOGY MANAGEMENT INSTITUTE W140 N8917 LILLY ROAD MENOMONEE FALLS WI 53051 391658622 EDUCATIONAL SEMINARS AND VIDEOS WI HERZING UNIVERSITY LTD C 2231944 539765 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0