2012-05-11T15:17:11-05:00 2011-06-30 ERNST & YOUNG US LLP 401 CONGRESS SUITE 1800 AUSTIN TX 78701 990 2010-07-01 742099402 BRAZOS HIGHER EDUCATION AUTHORITY INC BRAZ 2547530915 PO BOX 1308 WACO TX 76703 Ricky Turman 2012-05-11 5124789881 2010 2016-02-24 21:20:13Z RICKY TURMAN 2600 WASHINGTON AVENUE WACO TX 76710 244097769 false X www.brazos.us.com X 1975 TX Brazos Higher Education Authority, Inc.'s mission is to make education a reality by supporting programs and initiatives to finance educational opportunities. 10 10 0 0 0 0 0 0 252197454 234050977 2412252 9760253 0 286539 254609706 244097769 0 0 0 0 0 0 0 0 0 241240692 242835291 241240692 242835291 13369014 1262478 7909001784 8495044457 7834952049 8418102563 74049735 76941894 Brazos Higher Education Authority, Inc. is a secondary market of college student loans under the Federal Family Education Loan Program (FFELP). Brazos Higher Education Authority's mission is to make education a reality by supporting programs and initiatives to finance educational opportunities. false false 242835291 0 234337516 Brazos Higher Education Authority, Inc. serviced over 911,000 loans totaling over $8 billion under the Title IV Federal Family Education Loan Program (FFELP) program. This included over $1.8 billion of Stafford loans and $6.2 billion of Consolidation loans. These loans were funded through permanent financings. 242835291 true false false false false false false false false false 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 true true true false false true 9 0 true 0 false false false false false false false false false false X 10 10 true true false false false true true true true false false true true true true true true false X RICKY TURMAN CFO EVP 2547530915 2600 Washington Avenue Waco TX 76710 Bob Chambers 1.0 X 0 0 0 John Perry 1.0 X 0 0 0 Paul Marable Jr 1.0 X 0 809 0 Mrs Joyce Packard 1.0 X 0 0 0 Wilton Lanning 1.0 X 0 0 0 David Smith Jr 1.0 X 0 0 0 Larry Smith 1.0 X 0 809 0 Dr Joseph Velez 1.0 X 0 0 0 Tom Chase 1.0 X 0 824 0 John Hatchel 1.0 X 0 0 0 Murray Watson 1.0 X 0 1064568 53391 David Horner 1.0 X 0 405839 49726 Ricky Turman 1.0 X 0 467391 36687 Ray Rushing 1.0 X 0 0 0 James McInnis 1.0 X 0 98957 21740 Susan Davis 1.0 X 0 63378 14820 Tammy Harralson 1.0 X 0 184111 34359 Daniel Reyna 1.0 X 0 130759 22643 Kelli Villarrial 1.0 X 0 239224 34810 Thomas Litle 1.0 X 0 128577 8710 Janice White 1.0 X 0 173874 20968 0 2959120 297854 0 false true false Wiley Rein LLP 1776 K Street NW WASHINGTON DC 20006 Accounting & tax scv 500000 Avant Strategic Partners LP 10010 San Pedro Avenue Suite 520 SAN ANTONIO TX 78216 legal 185700 2 0 YIELD ON STUDENT LOAN NOTES REC 522294 234050977 234050977 234050977 400317 400317 0 0 9359936 0 9359936 9359936 9359936 0 0 0 GIC TERMINATION PAYMENT 522294 127500 127500 MBIA TERMINATION PAYMENT-BOND INSURANCE 522294 99900 99900 WRITE OFF - DEFERRED BORROWER BENEFIT 522294 58625 58625 514 514 286539 244097769 234337516 9760253 0 0 0 0 0 0 0 0 0 0 0 36484 36484 263410 263410 0 0 0 0 0 0 0 0 0 0 0 0 106553098 106553098 0 0 0 DEPT OF EDUCATION FEES 61777227 61777227 AMORT OF LOAN PURCHASE FEES 38174364 38174364 Servicing expense 14406738 14406738 OPERATING EXPENSE 10310476 10310476 LOSS ON EARLY EXTINGUISHMENT 5550375 5550375 5763119 5763119 242835291 242835291 0 0 1556481 221217 185342441 167683978 0 142 7589994173 8195433032 114229 0 131994460 131706088 7909001784 8495044457 14172899 11202093 612050000 0 7187178423 8394620179 21550727 12280291 7834952049 8418102563 X 74049735 76941894 74049735 76941894 7909001784 8495044457 X 1262478 1629681 X false true true X true true X X X false false false City of Waco Texas 746002468 06 true true true 0 1 0 0 Payable to affiliate 89500 Derivative liability 12190791 12280291 244097769 242835291 1262478 1629681 1629681 2892159 144146178 144146178 99951591 99951591 244097769 143383700 143383700 99451591 99451591 242835291 Reconciliation of Change in Net Assets from Form 990 Part XI, Line 8 Transfer from Affiliate - $1,629,681 Reconciliation of Revenue per Audited Financial Statements Part XII, Line 4b DEPT OF EDUCATION FEES - $61,777,227 AMORT OF LOAN PURCHASE FEES - $38,174,364 Total - $ 99,951,591 Reconciliation of Expenses per Audited Financial Statements Part XIII, Line 4b DEPT OF EDUCATION FEES - $61,777,227 AMORT OF LOAN PURCHASE FEES - $38,174,364 MBIA RELEASE PAYMENT ($500,000) Total - $ 99,451,591 Fin 48 (ASC 740) Footnote THE AUTHORITY FOLLOWS THE ACCOUNTING STANDARD RELATED TO THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN THE AUTHORITY'S FINANCIAL STATEMENTS. THE STANDARD PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE AUTHORITY CURRENTLY DOES NOT HAVE ANY POSITIONS RESERVED. false false false false false false false false false Murray Watson 0 547485 0 458231 0 58852 0 24517 0 28874 0 1117959 0 0 David Horner 0 227871 0 146083 0 31885 0 24500 0 25226 0 455565 0 0 Ricky Turman 0 283124 0 163950 0 20317 0 24500 0 12187 0 504078 0 0 Tammy Harralson 0 114858 0 51628 0 17625 0 18600 0 15759 0 218470 0 0 Daniel Reyna 0 85750 0 36404 0 8605 0 13141 0 9502 0 153402 0 0 Kelli Villarrial 0 156488 0 68245 0 14491 0 24151 0 10659 0 274034 0 0 Janice White 0 103445 0 48429 0 22000 0 17164 0 3804 0 194842 0 0 Supplemental Information Form 990, Part VI, Question 2 Business Relationships RAY RUSHING AND MURRAY WATSON, JR. HAVE A BUSINESS RELATIONSHIP. Form 990, Part VI, Question 3 Description of Management Arrangement Brazos Higher Education Authority, Inc. has a contract with Brazos Higher Education Service Corporation to perform management and administration services on Brazos Higher Education Authority's behalf. This includes master servicing administration for the outstanding student loans held by Brazos Higher Education Authority. The services include, but are not limited to: accounting, reporting, servicing, originating, marketing, treasury, and compliance monitoring of the student loans held by Brazos Higher Education Authority. Form 990, Part VI, Question 7a Description of Classes of Persons and the Nature of Their Rights Brazos Higher Education Authority is a supporting organization of the City of Waco, Texas. The Waco City Council approves the appointment of Brazos Higher Education Authority's board of directors. However, the City of Waco does not control the operations of the board and only approves these appointments. The City does not make recommendations for the appointments nor do they appoint specific board members as a representative of the City. Form 990, Part VI, Question 7b Descr Classes of Persons, Decisions Requiring Appr & Type of Voting Rights Brazos Higher Education Authority issues tax-exempt debt as a supporting organization of the City of Waco. Therefore, whenever tax-exempt debt is issued by Brazos Higher Education Authority, the City of Waco approves the issuance. The City of Waco retains no liability for this debt. Brazos Higher Education Authority is solely responsible for the debt liability. Form 990, Part VI, Question 11b Describe the Process used by Management &/or Governing Body to Review 990 The 990 tax return is provided to senior management for their review. After their review, the return is posted on a secure website for review by the board of directors. The Board is notified of the posting and asked to provide comments or questions. Form 990, Part VI, Question 12c Description of Process to Monitor Transactions for Conflicts of Interest Brazos Higher Education Authority's internal audit department prepares and distributes a conflict of interest questionnaire to all board members and employees annually. The internal audit department reviews the questionnaires and compiles a list of potential conflicts for review by the audit committee, senior management, and the board of directors. Potential conflicts are assessed and resolved if determined to be at risk. Form 990, Part VI, Question 19 Avail of Gov Docs, Conflict of Interest Policy, & Fin Stmts to Gen Public The governing documents, conflict of interest policy, and financial statements are available to the public upon request. Form 990, Part XI, Line 5 Other Changes in Net Assets or Fund Balances Transfer from Affiliate - $1,629,681 FORM 990, PART VII, SECTION A AVERAGE HOURS DEVOTED TO RELATED ORGANIZATION *TURMAN, RICKY - 40 HOURS WITH BHESC *HORNER, DAVID - 40 HOURS WITH BHESC *VILLARRIAL, KELLI - 40 HOURS WITH BHESC *HARRALSON, TAMMY - 40 HOURS WITH BHESC *REYNA, DANIEL - 40 HOURS WITH BHESC *DAVIS, SUSAN - 40 HOURS WITH BHESC *WHITE, JANICE - 40 hours with BHESC *McInnis, James - 40 hours with BHESC *Watson, Murray - 40 hours with BHESC *Litle, Thomas - 40 hours with BHESC *Marable, Paul - 1 hour with BHESC *Chase, Tom - 1 hour with BHESC *Smith, Larry - 0 hours with BHESC Additional Information Recent Legislative Developments On March 30, 2010, President Obama signed into law the Reconciliation Act of 2010. Effective July 1, 2010, this law prohibits new loan originations under the FFELP and requires that all new federal loan originations be made through the Direct Loan Program. As a result, the Authority is essentially precluded from originating any new student loans. In the event that a first disbursement has been made on a FFELP loan prior to July 1, 2010, subsequent disbursements of that loan may still be made under the FFELP. Additionally, the new law does not alter or affect the terms and conditions of the Authority's existing FFELP loans. Acapita Education Finance Corporation PO BOX 1308 WACO TX 76703 742542435 fund std lns TX 501(c)(3) 9 NA Atlantic Student Finance Corporation 2600 WASHINGTON AVENUE WACO TX 76710 205412189 fund std lns FL 501(c)(3) 7 NA Trinity Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 742534486 fund std lns TX 501(c)(3) 9 NA Angelina Higher Education Authority 2600 WASHINGTON AVENUE WACO TX 76710 200115078 fund std lns TX 501(c)(3) 9 NA Concho Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 203870081 fund std lns TX 501(c)(3) 9 NA Frio Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 203870120 fund std lns TX 501(c)(3) 9 NA Lavaca Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 203870153 fund std lns TX 501(c)(3) 9 NA Leon Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 203870176 fund std lns TX 501(c)(3) 9 NA Llano Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 203870219 fund std lns TX 501(c)(3) 9 NA Neches Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 203868073 fund std lns TX 501(c)(3) 9 NA Paluxy Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 203868139 fund std lns TX 501(c)(3) 9 NA Rozell Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 203867891 fund std lns TX 501(c)(3) 9 NA Sabine Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 203868185 fund std lns TX 501(c)(3) 9 NA Texoma Higher Education Authority Inc 2600 WASHINGTON AVENUE WACO TX 76710 203868230 fund std lns TX 501(c)(3) 9 NA Brazos Education Foundation Inc 2612 WASHINGTON AVENUE WACO TX 76710 264562436 grant making TX 501(c)(3) 7 NA Academic Finance Corporation PO BOX 1308 WACO TX 76703 742540458 fund std lns TX 501(c)(3) 9 NA Education Servicing Mgmt Corporation 2600 WASHINGTON AVENUE WACO TX 76710 203870046 fund std lns TX 501(c)(3) 9 NA Brazos Education Finance Corporation In 2600 WASHINGTON AVENUE WACO TX 76710 742539632 fund std lns TX 501(c)(3) 11 type 1 NA Bosque Higher Education Authority Inc PO BOX 1308 WACO TX 76703 742534099 fund std lns TX 501(c)(3) 9 NA Brazos Student Finance Corporation PO BOX 1308 WACO TX 76703 742356109 fund std lns TX 501(c)(3) 9 NA EdInvest Company 2600 WASHINGTON AVENUE WACO TX 76710 742537669 fund std lns TX 501(c)(3) 9 NA Educational Funding Services Inc PO BOX 1308 WACO TX 76703 330947525 fund std lns CA 501(c)(3) 9 NA Federated Student Finance Corporation 2600 WASHINGTON AVENUE WACO TX 76710 742536239 fund std lns TX 501(c)(3) 9 NA Brazos Higher Education Service Corp PO BOX 1308 WACO TX 76703 742129255 fund std lns TX 501(C)(3) 9 na false false true false true true true false false false false true false false false false true true Brazos Student Finance Corporation c 715812 EdInvest Company c 97148 Academic Finance Corporation c 222223 Educational Funding Services Inc c 573444 Brazos Higher Education Service Corporation e 3500000 Brazos Higher Education Service Corporation l 10310476 Bosque Higher Education Authority f 624379 Brazos Student Finance Corporation f 118300 Educational Funding Services f 105572 Federated Student Finance Corporation f 135458 Acapita Education Finance Corporation f 112983 Acapita Education Finance Corporation g 114646 Academic Finance Corporation g 67907511 Brazos Student Finance Corporation g 586520531 Edinvest Company g 202435062 Educational Funding Services g 512227571 Trinity Higher Education Authority g 37589075 Brazos Higher Education Service Corporation q 164796 Brazos Higher Education Service Corporation r 254296