2015-05-04T13:50:41-05:00 2014-06-30 200427530 RIVES & ASSOCIATES LLP 212 W CENTER ST LEXINGTON NC 272923012 990 2013-07-01 562106758 CONSUMER EDUCATION SERVICES INC CONS 3700 BARRETT DR RALEIGH NC 27609 STEVEN COLE TREASURER 2014-11-26 true JOHN E PARSLEY CPA CVA P00370596 3362488281 2015-02-06 2013 2016-03-07 17:11:31Z X DIANE CHEN 3700 BARRETT DR RALEIGH NC 27609 34193446 false X WWW.CESISOLUTIONS.ORG X 1998 NC CONSUMER EDUCATION SERVICES, INC ("CESI") IS A NON-PROFIT SERVICE PROVIDER OF COMPREHENSIVE PERSONAL FINANCIAL EDUCATION AND SOLUTIONS FOR ALL LIFE STAGES AND FOR ALL LIFE'S MILESTONES OUR GOAL IS ENHANCED ECONOMIC SECURITY FOR EVERYONE WE SERVE. 5 5 107 515455 114562 5000680 3927709 14929986 9613496 658807 1985446 24875 20589473 15551526 0 0 3952912 4200917 0 0 11040370 8895684 14993282 13096601 5596191 2454925 33541823 36346440 2861411 1992829 30680412 34353611 X CONSUMER EDUCATION SERVICES, INC ("CESI") IS A NON-PROFIT SERVICE PROVIDER OF COMPREHENSIVE PERSONAL FINANCIAL EDUCATION AND SOLUTIONS FOR ALL LIFE STAGES AND FOR ALL LIFE'S MILESTONES OUR GOAL IS ENHANCED ECONOMIC SECURITY FOR EVERYONE WE SERVE. false false 5517953 THIS PROGRAM ASSIST CLIENTS IN MANAGING THEIR PERSONAL FINANCES THROUGH THE PROVISION OF DEBT MANAGEMNT SERVICES, CREDIT COUNSELING, EDUCATION AND TRAINING, AND BUDGET PLANNING. CESI OFFERS ASSISTANCE OVER THE PHONE, ONLINE, AND IN PERSON. CERTIFIED CREDIT COUNSELORS DISCUSS VARIOUS OPTIONS WITH CLIENTS REGARDING FINANCIAL DECISIONS. THEY ASSESS INDIVIDUALS' PERSONAL FINANCIAL SITUATIONS AND ASSIST THEM IN DEVELOPING A BUDGET IN ORDER TO IMPROVE THEIR OVERALL CREDIT. DURING THE FISCAL YEAR ENDING JUNE 30, 2014 APPROXIMATELY 154,000 FINANCIALLY DISTRESSED INDIVIDUALS RECEIVED CREDIT COUNSELING AND FREE EDUCATIONAL RESOURCE MATERIALS. 682109 COMMUNITY EDUCATION OUTREACH: CESI SUPPORTS THE ADVANCEMENT OF FINANCIAL LITERACY EDUCATION WITHIN LOCAL AND STATE COMMUNITITES THROUGH A STRONG COMMUNITY OUTREACH PROGRAM. CESI'S OUTREACH EFFORTS INCLUDED GROUP EDUCATION PROGRAMS IN A CLASSROOM SETTING, TYPICALLY IN PARTNERSHIP WITH LOCAL COMMUNITY AGENCIES OR EDUCATIONAL INSTITUTIONS. DURING THE FISCAL YEAR ENDING JUNE 30, 2014 CESI CONDUCTED 329 CLASSES ASSISTING APPROXIMATELY 6,238 INDIVIDUAL OR FAMILIES AT IN-PERSON CLASSROOM SESSIONS COVERING TOPICS SUCH AS: BUDGETING AND SAVING, BANKING, IDENTITY THEFT PROTECTION, UNDERSTANDING YOUR CREDIT REPORT, FINANCES AFTER JOB LOSS, GOAL SETTING, RETIREMENT SAVINGS, CREDIT AND DEBT. THE SECOND PART OF THE CESI OUTREACH PROGRAM EFFORT IS IN THE FORM OF FREE INDIVIDUAL FINANCIAL COUNSELING AT THE CESI CENTER WITH AN ACCREDITED CESI COUNSELOR. IN THE PAST YEARS, CESI HAS TRACKED THE OUTREACH CLASS INFORMTAION IN A SPREADSHEET, COLLECTING THE DATE, LENGTH, INSTRUCTOR, TOPIC AND LOCATION OF EACH CLASS AS WELL AS A NUMBER OF PERSONS ATTENDING. WE HAVE ALSO COLLECTED PAPER EVALUATIONS FROM OUR STUDENTS TO ALLOW OUR EDUCATORS THE FEEDBACK ON HOW WE CAN IMPROVE OUR EDUCATION. THESE EVALUATIONS HAVE BEEN REVIEWED BUT NOT RECORDED IN A DATABASE. OUR EFFORT TO MONITOR OUR EFFEFTIVENESS IN REACHING THE NEEDS OF CONSUMERS WITH FINANCIAL EDUCATION, WE REDESIGNED OUR TRACKING PROCESS FOR 2014. WE CREATED A DATABASE WHERE EACH CLASS IS ENTERED WITH THE ABILITY TO ADD THE INDIVIDUAL STUDENT INFORMATION FOR EACH CLASS. WE ALSO BEGIN COLLECTING DEMOGRAPHIC AND CONTACT INFORMATION FOR OUR STUDENTS AS WELL AS A PRE AND POST ASSESSMENT AND A COURSE EVALUATION THAT WILL ALLOW US TO REPORT ON THE OUTCOMES OF OUT CLASSES AND EFFECTIVENESS OF OUR COURSES AND INSTRUCTORS. THIS WILL ALLOW US TO DO TARGETED FOLLOW-UP WITH STUDENTS WHO ELECT TO PROVIDE US WITH THEIR EMAIL CONTACT INFORMATION. WE WILL PROVIDE ONGOING EDUCATIONAL RESOURCES THAT MEET THEIR SPECIFIC NEEDS OR ARE TARGETED TO THEIR DEMOGRAPHIC. CESI OFFERS MORE THAT 35 DIFFERENT TOPICS GEARED TOWARD AN ADULT OR A YOUTH AUDIENCE. WE UTILIZE 5 COMMUNITY EDUCATORS TO CONDUCT CLASSES AND ASSIST THE COMMUNITY PARTNERS. CESI CURRENTLY HAS 29 COMMUNITY PARTNERS THAT HAVE RECEIVED EDUCATION SUPPORT IN 2014. 532954 HOUSING: CESI HOMEOWEERSHIP CENTER HAD A PRODUCTIVE YEAR AND EXPERIENCED A 15% INCREASE IN CLIENTS SERVED OVER LAST YEAR. WE PROVIDED A VARIETY OF COUNSELING SERVICES, RANGING FROM FORECLOSURE PREVENTION TO PRE PURCHASE, TO 775 INDIVIDUALS AND FAMILIES. APPROXIMATELY 52% OF CLIENTS RECEIVED FORECLOSURE PREVENTION COUNSELING, 33% RECEIVED REVERSE MORTGAGE COUNSELING AND THE REMAINING 15%, PRE PURCHASE COUNSELING, GROUP EDUCATION WORKSHOPS OR OTHER SERVICES. WE WORKED WITH COMMUNITY PARTNERS, FACILLITATING HOME BUYER GROUP EDUCATION WORKSHOPS FOR COMMUNITY LAND TRUSTEES AND HABITAT FOR HUMANITY OF WAKE COUNTY. CESI STAFF ALSO PARTICIPATED IN OVER A DOZEN COMMUNITY OUTREACH EVENTS, INCLUDING OUR SIGNATURE NATIONAL HOMEOWNERSHIP MONTH COMMUNITY DAY CELEBRATION AND LA FIESTA DE PUEBLO 2014, AN ANNUAL FESTIVAL CELEBRATING LATINO CULTURE. CESI ALSO ASSIST CONSUMERS THROUGH THE NORTH CAROLINA HOUSING FINANCE AGENCY (NCHFA). THE FIRST PROJECT IS STATE HOME FORECLOSURE PREVENTION PROJECT(SHFPP) WHICH HELPS NORTH CAROLINA HOMEOWNERS WHO HAVE RECEIVED A 45 DAY LETTER FROM THEIR SERVICER TO AVOID FORCLOSURE BY PUTTING THEM IN CONTACT WITH A HUD HOUSING COUNSELING AGENCIES WHO CAN ASSIST THEM WITH LOSS MITIGATION OPTIONS. OTHER PROJECTS ARE HARDEST HIT FUND (HHF), NORTH CAROLINA FORECLOSURE PREVENTION FUND (FPF), OR MORTGAGE PAYMENT PROGRAM (MPP). THESES PROJECT HELP NORTH CAROLINA HOMEOWNERS WHO HAVE LOST THEIR JOBS OR HAVE EXPERIENCED SOME OTHER TYPE OF EMPLOYMENT RELATED FINANCIAL HARDSHIP TO MAKE THEIR MORTGAGE PAYMENTS WHILE THEY LOOK FOR JOB OR RETRAIN FOR A NEW JOB. BETWEEN JULY 1, 2013 AND JUNE 30, 2014 CESI HANDLED 104,658 PHONE CALLS WITH CONSUMERS THAT EITHER RECEIVED LETTERS FROM NCHFA OR WHO HAVE LEARNED ABOUT THE FPF PROGRAM VIA THE WEBSITE NCFORECLOSUREPREVENTION.GOV OR OTHER TYPES OF MARKETING THAT HAS BEEN DONE FOR THE PROGRAM. 4732563 CLIENT PAYMENT PROCESSING- THIS PROGRAM PROVIDES SERVICES TO ITS DEBT MANAGEMNT PARTICIPANTS WITH RESPEST TO PROCESSING PAYMENTS, WORKING WITH CREDITORS TO SECURE A REDUCTION IN INTEREST RATES, AND EDUCATION AND TRAINING CLIENTS TO BETTER MANAGE THEIR FINANCES. FOR THE LEGACY PORTOFOLIO, CLIENT PAYMENT PROCESSING IS OUTSOURCED TO A THIRD PARTY SERVICE WITH CESI'S FINAL APPROVAL. 4732563 10932625 true true false false false false false false true false true false false false true true true false false false false false false false false false false false false true false false false false false false false false false false false false false false false false false true 1 0 true 107 true true true false false false false false X 5 5 false false false false false false false true true false false false true true true true true true true false NC WV IL OR X X DIANE CHEN 9198615330 3700 BARRETT DRIVE RALEIGH NC 27609 ROBERRT J FITZGERALD CHAIRMAN 10.00 X X 0 0 0 DR FRED MANGUM BOARD MEMBER 1.00 X 0 0 0 AMY BLACKWELL BOARD MEMBER 5.00 X 0 0 0 WAYNE STALLINGS BOARD MEMBER 1.00 X 0 0 0 DR DIANE CHEN CEO/SECRETAR 40.00 X 172448 0 48187 STEVE COLE TREASURER 40.00 X 75737 0 21146 248185 69333 1 false true false AMERIX CORPORATION 9755 PATUXENT WOODS DRIVE COLUMBIA MD 21046 THIRD PARTY PRO 3673041 NATIONAL DEBT RELIEF 11 BROADWAY 16TH FLOOR NEW YORK NY 10004 MARKETING 531603 CAROLINA IT 1600 HILLSBOROUGH STREET RALEIGH NC 27605 INFORMATION TEC 243671 FREEDOM FINANCIAL 1875 S GRANT STREET SAN MATEO CA 94402 MARKETING 210479 GOOGLE PO BOX 39000 SAN FRANCISCO CA 94139 MARKETING 188365 5 3927709 3927709 DEBT MANAGEMENT PROGRAM 8565087 8565087 HOUSING SERVICES 532954 532954 MEMBER BENEFIT SERVICES 900099 515455 515455 9613496 666492 666492 19960874 18641920 1318954 1318954 1318954 CHANGE IN VALUE LIFE INS POLI 24875 24875 24875 15551526 11108362 515455 3339532 2838602 500930 542919 461481 81438 318466 270696 47770 425744 361883 63861 32014 32014 1503617 1503617 336128 273528 62600 359272 305382 53890 78125 70313 7812 17188 14610 2578 253682 215630 38052 72799 61879 10920 PROCESSING FEES 3223194 3223194 SETTLEMENT 1000000 1000000 BANK FEES 461184 261949 199235 CLIENT DISCOUNT BENEFIT 382173 382173 750564 687688 62876 13096601 10932625 2163976 0 5330421 1977334 2967378 2179750 1626 478997 1550000 1550000 66347 102478 2872416 1257959 1860398 1614457 20545413 27099916 1220240 1343508 33541823 36346440 376207 410369 2321665 1329402 163539 253058 2861411 1992829 X 30680412 34353611 30680412 34353611 33541823 36346440 2454925 964728 253546 X false true X true false X 6162335 7888564 6106233 5000680 3927709 29085521 6162335 7888564 6106233 5000680 3927709 29085521 13567673 15517848 52652 183584 100434 1717659 1631220 3685549 114562 114562 227 227 32885859 130415659 0.47190 0.70530 X PART II, LINE 10 227 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true X 156896 156896 1378399 149963 1228436 1262111 1070443 191668 75010 37553 37457 1614457 NONQUALIFIED RETIREMENT PLAN LIABILI 253058 253058 X 16516254 964728 964728 15551526 15551526 13096601 13096601 13096601 SCHEDULE D, PAGE 2, PART IV, LINE 2B CESI OFFERS DEBT MANAGEMENT PROGRAMS TO ASSIST CLIENTS IN PAYING THEIR UNSECURED DEBTS FUNDS RECIEVED FROM CLIENTS PARTICIPATING IN THE DEBT MANAGEMENT PROGRAM ARE DEPOSITED INTO VARIOUS DEPOSITORY ACCOUNTS AND IN TO A SEPARATE FOR THE BENEFIT OF OTHER ACCOUNT (THE "FBO ACCOUNT") ON A DAILY BASIS. FUNDS RESIDING IN THE FBO ACCOUNTS ARE DISBURSED TO CESI'S OPERATING ACCOUNT AS CONTRIBUTIONS MADE TO CESI BY CREDITORS AND/OR CLIENTS. CERTAIN STATES REQUIRE THAT CLIENTS FUNDS BE HELD IN A DEPOSITORY ACCOUNT WITHIN THAT STATE UNTIL THE RESPECTICVE CREDITORS ARE PAID. IN THIS SITUATION CREDITORS ARE PAID FROM MONIES FROM THIS STATE'S SEPOSITORY ACCOUNT. INTEREST INCOME EARNED ON FUNDS HELD IN THE VARIOUS RESTRICTED ACCOUNTS IS USED TO PAY FOR BANK FEES AND OTHER EXPENSES. CESI IS RESPONSIBLE FOR ANY EXCESS EXPENSE ARISING FROM THE ACTIVITIES OF THESE ACCOUNTS. SCHEDULE D, PAGE 3, PART X CESI HAS ADOPTED THE PROVISIONS OF FASB ASX 740-10-25, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. UNDER THIS PROVISION, AN ORGANIZATION MUST RECOGNIZE THE TAX BENEFIT ASSOCIATED WITH TAX PROVISIONS FOR THE TAX RETURN PURPOSES WHEN IT IS MORE LIKELY THAN NOT THAT THE POSITION WILL BE SUSTAINED. THE IMPLEMENTATION OF THIS STANDARD HAS HAD NO IMPACT ON CESI'S FINANCIAL STATEMENTS. CURRENTLY, THE 2011, 2012, 2013 TAX YEARS ARE OPEN AND SUBJECT TO EXAMINATION BY TAXING AUTHORITIES. CESI DOES NOT BELIEVE THERE ARE ANY MATERIAL UNCERTAIN TAX POSITIONS AND, ACCORDINGLY, IT HAS NOT RECOGNIZED ANY LIABILITIES FOR UNRECOGNIZED TAX BENEFIT. IN NOVEMBER 2013, CESI AND THE INTERNAL REVENUE SERVICE REACHED A SETTLEMENT AGREEMENT REGARDING CESI'S TAX-EXEMPT STATUS AS 501(C)(3)AND THE 2004 IRS EXAMININATION. UNDER THE SETTLEMENT, THE IRS WILL NOT REVOKE CESI'S TAX-EXEMPT STATUS AND BOTH, THE IRS AND CESI, AGREE TO DISMISS THE ONGOING LITIGATION CASE. IN ADDITION, CESI WILL MAKE A ONE TIME PAYMENT OF 1,000,000 AND MUST OPERATE UNDER THE STANDARDS DICTATED BY THE SETTLEMENT AGREEMENT. false false false false false false false false false DR DIANE CHEN CEO/SECRETARY OF BOA 172448 30000 18187 220635 FORM 990, PAGE 1, ITEM B THE ORIGINAL RETURN REPORTED AMOUNTS PAID TO NORTH CAROLINA DEPARTMENT OF REVENUE ON 990-T LINE 44A. THIS AMENDED RETURN REFLECTS THE ACCURATE ESTIMATED FEDERAL TAXES PAID. FORM 990 - ORGANIZATION'S MISSION CONSUMER EDUCATION SERVICES, INC ("CESI") IS A NON-PROFIT SERVICE PROVIDER OF COMPREHENSIVE PERSONAL FINANCIAL EDUCATION AND SOLUTIONS FOR ALL LIFE STAGES AND FOR ALL LIFE'S MILESTONES OUR GOAL IS ENHANCED ECONOMIC SECURITY FOR EVERYONE WE SERVE. FORM 990, PAGE 2, PART III, LINE 4B THE SECOND PART OF THE CESI OUTREACH PROGRAM EFFORT IS IN THE FORM OF FREE INDIVIDUAL FINANCIAL COUNSELING AT THE CESI CENTER WITH AN ACCREDITED CESI COUNSELOR. IN THE PAST YEARS, CESI HAS TRACKED THE OUTREACH CLASS INFORMTAION IN A SPREADSHEET, COLLECTING THE DATE, LENGTH, INSTRUCTOR, TOPIC AND LOCATION OF EACH CLASS AS WELL AS A NUMBER OF PERSONS ATTENDING. WE HAVE ALSO COLLECTED PAPER EVALUATIONS FROM OUR STUDENTS TO ALLOW OUR EDUCATORS THE FEEDBACK ON HOW WE CAN IMPROVE OUR EDUCATION. THESE EVALUATIONS HAVE BEEN REVIEWED BUT NOT RECORDED IN A DATABASE. OUR EFFORT TO MONITOR OUR EFFEFTIVENESS IN REACHING THE NEEDS OF CONSUMERS WITH FINANCIAL EDUCATION, WE REDESIGNED OUR TRACKING PROCESS FOR 2014. WE CREATED A DATABASE WHERE EACH CLASS IS ENTERED WITH THE ABILITY TO ADD THE INDIVIDUAL STUDENT INFORMATION FOR EACH CLASS. WE ALSO BEGIN COLLECTING DEMOGRAPHIC AND CONTACT INFORMATION FOR OUR STUDENTS AS WELL AS A PRE AND POST ASSESSMENT AND A COURSE EVALUATION THAT WILL ALLOW US TO REPORT ON THE OUTCOMES OF OUT CLASSES AND EFFECTIVENESS OF OUR COURSES AND INSTRUCTORS. THIS WILL ALLOW US TO DO TARGETED FOLLOW-UP WITH STUDENTS WHO ELECT TO PROVIDE US WITH THEIR EMAIL CONTACT INFORMATION. WE WILL PROVIDE ONGOING EDUCATIONAL RESOURCES THAT MEET THEIR SPECIFIC NEEDS OR ARE TARGETED TO THEIR DEMOGRAPHIC. CESI OFFERS MORE THAT 35 DIFFERENT TOPICS GEARED TOWARD AN ADULT OR A YOUTH AUDIENCE. WE UTILIZE 5 COMMUNITY EDUCATORS TO CONDUCT CLASSES AND ASSIST THE COMMUNITY PARTNERS. CESI CURRENTLY HAS 29 COMMUNITY PARTNERS THAT HAVE RECEIVED EDUCATION SUPPORT IN 2014. FORM 990, PAGE 2, PART III, LINE 4C FESTIVAL CELEBRATING LATINO CULTURE. CESI ALSO ASSIST CONSUMERS THROUGH THE NORTH CAROLINA HOUSING FINANCE AGENCY (NCHFA). THE FIRST PROJECT IS STATE HOME FORECLOSURE PREVENTION PROJECT(SHFPP) WHICH HELPS NORTH CAROLINA HOMEOWNERS WHO HAVE RECEIVED A 45 DAY LETTER FROM THEIR SERVICER TO AVOID FORCLOSURE BY PUTTING THEM IN CONTACT WITH A HUD HOUSING COUNSELING AGENCIES WHO CAN ASSIST THEM WITH LOSS MITIGATION OPTIONS. OTHER PROJECTS ARE HARDEST HIT FUND (HHF), NORTH CAROLINA FORECLOSURE PREVENTION FUND (FPF), OR MORTGAGE PAYMENT PROGRAM (MPP). THESES PROJECT HELP NORTH CAROLINA HOMEOWNERS WHO HAVE LOST THEIR JOBS OR HAVE EXPERIENCED SOME OTHER TYPE OF EMPLOYMENT RELATED FINANCIAL HARDSHIP TO MAKE THEIR MORTGAGE PAYMENTS WHILE THEY LOOK FOR JOB OR RETRAIN FOR A NEW JOB. BETWEEN JULY 1, 2013 AND JUNE 30, 2014 CESI HANDLED 104,658 PHONE CALLS WITH CONSUMERS THAT EITHER RECEIVED LETTERS FROM NCHFA OR WHO HAVE LEARNED ABOUT THE FPF PROGRAM VIA THE WEBSITE NCFORECLOSUREPREVENTION.GOV OR OTHER TYPES OF MARKETING THAT HAS BEEN DONE FOR THE PROGRAM. FORM 990, PAGE 2, PART III, LINE 4D CLIENT PAYMENT PROCESSING- THIS PROGRAM PROVIDES SERVICES TO ITS DEBT MANAGEMNT PARTICIPANTS WITH RESPEST TO PROCESSING PAYMENTS, WORKING WITH CREDITORS TO SECURE A REDUCTION IN INTEREST RATES, AND EDUCATION AND TRAINING CLIENTS TO BETTER MANAGE THEIR FINANCES. FOR THE LEGACY PORTOFOLIO, CLIENT PAYMENT PROCESSING IS OUTSOURCED TO A THIRD PARTY SERVICE WITH CESI'S FINAL APPROVAL. FORM 990, PAGE 6, PART VI, LINE 11B THE PRESIDENT & CEO AND THE DIRECTOR OF FINANCE ARE RESPONSIBLE FOR REVIEWING AND APPROVING THE FORM 990 AND THE FORM 990-T BEFORE IT IS FILED. FORM 990, PAGE 6, PART VI, LINE 12C OFFICERS, DIRECTORS, AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE ANY POTENTIAL CONFLICTS OF INTEREST ANNUALLY ON A CONFLICT OF INTEREST FORM. ANY KNOWN CONFLICTS OF INTREST REQUIRE IMMEDIATE DISCLOSURE. FORM 990, PAGE 6, PART VI, LINE 15A THE BOARD OF DIRECTORS GENERALLY DETERMINES AND REVIEWS THE SALARY OF THE PRESIDENT AND CEO. FORM 990, PAGE 6, PART VI, LINE 15B THE BOARD OF DIRECTORS GENERALLY DETERMINES AND REVIEWS THE SALARY OF KEY EMPLOYEES. FORM 990, PAGE 6, PART VI, LINE 19 CESI MAKES IT GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. THE ORGANIZATION FORM 990 IS ALSO AVAILABLE ON GUIDESTAR.ORG.