2011-05-12T15:08:46-04:00 2010-06-30 ERNST & YOUNG US LLP 111 MONUMENT CIRCLE SUITE 2600 INDIANAPOLIS IN 46204 990 2009-07-01 742129255 BRAZOS HIGHER EDUCATION SERVICE CORPORATION BRAZ 2547530915 PO BOX 1308 WACO TX 76703 Ricky Turman 2011-05-11 3176817000 2009 2016-02-24 21:20:13Z RICKY TURMAN 2600 WASHINGTON AVENUE WACO TX 76710 16834585 false X www.brazos.us.com X 1980 TX To provide management and administrative support for affiliated entities student loan servicing needs. 9 9 84 0 0 0 0 25556405 15372796 15302 1300438 -15688 -18783 25556019 16654451 67000 185000 0 0 12490501 9610347 0 0 0 9633169 5680134 22190670 15475481 3365349 1178970 35821039 36922110 7898768 7820869 27922271 29101241 To provide management and administrative support for affiliated entities student loan servicing needs. false false 13142762 185000 15450547 Administrative and Management services for affilitated non-profit entities. As master servicer, Brazos Higher Education Service Corporation provided management services for 10 nonprofit student loan companies. This included administering over 1.4 million loans with outstanding principal in excess of $13 billion under the Federal Family Education Loan Program (FFELP). Heal, TERI, and various other alternative loan programs. 13142762 true false false true false false false false false true true false false false false false false false false false false true false true false false false true false true false false false false false false false true true false false true 83 0 true 84 true false false false false false false false false false 9 9 true false false false false false false true true false false true true true true true true true true false X RICKY TURMAN CFO EVP 2547530915 2600 Washington Avenue Waco TX 76710 Bob Chambers 1.0 X 1045 0 0 Lindley Elliott 1.0 X 0 0 0 Paul Marable Jr 1.0 X 0 0 0 Mrs Joyce Packard 1.0 X 0 0 0 Norman Hay Jr 1.0 X 851 0 0 David Smith Jr 1.0 X 779 0 0 John Perry 1.0 X 0 0 0 Dorothy Talbot 1.0 X 0 0 0 Dr Joseph Velez 1.0 X 0 0 0 Tom Chase 1.0 X 0 0 0 Wilton Lanning 1.0 X 0 0 0 Susan Davis 40.0 X 59759 0 12094 Tammy Harralson 40.0 X 171043 0 29598 David Horner 40.0 X 350219 0 47427 Randall Larson 40.0 X 202508 0 34967 Michael Macomber 40.0 X 332782 0 48261 Daniel Reyna 40.0 X 126421 0 19773 Ellis Tredway 40.0 X 295824 0 36096 Ricky Turman 40.0 X 465169 0 29441 kelli Villarrial 40.0 X 200568 0 18960 Murray Watson 40.0 X 1022410 0 29934 Janice White 40.0 X 181192 0 20628 james McInnis 40.0 X 93098 0 18945 Ray Rushing 1.0 X 0 0 0 Suzanne Young 40.0 X 135864 0 18593 Sam Redden 40.0 X 232468 0 35224 Debra Urias 40.0 X 151075 25365 Henry Stoever 40.0 X 172533 0 23539 John M Wright 40.0 X 165815 0 22197 Sarah MacCarthy 40.0 X 153914 0 21548 Mike Abdelnour 40.0 X 143660 0 13716 Milicent Larson 1.0 X 104224 0 16668 4763221 0 522974 24 true true false Ernst Young LLP PO Box 848107 DALLAS TX 75284 Tax & Audit Services 661097 Murray Watson and Associates 2600 Washington Avenue DALLAS TX 76710 Legal 434488 Arnold Porter 555 12th Street NW WASHINGTON DC 20004 Legal 391934 Squire Sanders Dempsey LLP 1300 Huntington Center 41 South Hi COLUMBUS OH 43215 Legal 324729 Anderton Gr IIMailmax Direct Pri PO Box 20113 WACO TX 76702 Specialized printing 231077 6 0 Servicing Fees 522294 45117 45117 CREDIT & COLLECTION FEES 522294 4131 4131 Operating Income (M&O) 522294 15235806 15235806 Financial advisory fees from affiliate 522294 75000 75000 Amortization of deferred income 522294 12742 12742 15372796 1300438 1300438 0 0 83600 180134 -96534 -96534 -96534 0 0 0 0 All other revenue 522294 77751 77751 77751 16654451 15450547 1203904 185000 185000 0 0 0 4062758 3656482 406276 0 4044134 3639721 404413 539035 485132 53903 478995 431095 47900 485425 436882 48543 553061 553061 1819383 1637445 181938 195053 175548 19505 241781 241781 0 0 41066 36959 4107 11067 11067 927143 834429 92714 382007 343806 38201 0 504056 435637 68419 162009 145808 16201 0 46202 41582 4620 0 0 339174 305257 33917 356645 320980 35665 Entertainment expense 41447 41447 Director's expense 37894 37894 All other expenses 22146 19932 2214 15475481 13142762 2332719 0 13566011 11575542 13672591 4371951 82218 268970 375115 426274 201533 364906 5043588 3565622 1744204 1477966 0 12419544 6179367 6016957 35821039 36922110 2598078 2821442 177330 164588 5123360 4834839 7898768 7820869 X 27922271 29101241 27922271 29101241 35821039 36922110 X false true true X false X 60307521 4739016 51262198 25556405 15372796 157237936 60307521 4739016 51262198 25556405 15372796 157237936 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 157237936 1006611 92022 851672 178160 1384038 3512503 1006611 92022 851672 178160 1384038 3512503 39538 0 1675 0 0 41213 0 0 60377 2186 77751 140314 61353670 4831038 52175922 25736751 16834585 160931966 0.97705 0.98440 0.02183 0.01490 X DUE TO A CHANGE IN YEAR-END, A SHORT PERIOD RETURN WAS FILED FOR THE TIME PERIOD JUNE 1, 2007 THROUGH JUNE 30, 2007. THEREFORE, THE YEARS LISTED ON SCHEDULE A, PART III CORRESPOND TO THE TIME FRAMES AS LISTED BELOW: 2009 = JULY 1, 2009 THROUGH JUNE 30, 2010 2008 = JULY 1, 2008 THROUGH JUNE 30, 2009 2007 = JULY 1, 2007 THROUGH JUNE 30, 2008 2006 = JUNE 1, 2007 THROUGH JUNE 30, 2007 2005 = JUNE 1, 2006 THROUGH MAY 31, 2007 false false false false false false true 241781 false false 241781 false Schedule C, Part II-B Lobbying Outside lobbyists were hired to advise Brazos on appropriate strategies and actions regarding legislation that would have a harmful impact on Brazos interests. In addition, lobbyists were charged with monitoring the introduction and the progress on legislation/rules that required Brazos compliance in all areas of the business. Legislation issues included budget reconciliation, reauthorization of the Higher Education Act, tax-exempt issues and privacy issues. 68000 68000 1992630 1109788 882842 2982958 2455834 527124 1477966 ASSETS HELD IN ESCROW 4762521 DUE FROM AFFILIATES 1254245 OTHER ASSETS 191 6016957 0 Servicing resource reserve 56875 PREFUNDED BENEFIT LIABILITY 4762521 Other liabilities 15443 4834839 16654451 15475481 1178970 1178970 16834585 180134 180134 16654451 16654451 15655615 180134 180134 15475481 15475481 Reconciliation of Revenue Per Audited Financial Statements Schedule D, Part XII, Line 2d Rental Expenses - $180,134 Reconciliation of Expenses Per Audited Financial Statements Schedule D, Part XIII, Line 2d Rental Expenses - $180,134 Fin 48 THE COMPANY ADOPTED THE ACCOUNTING STANDARD RELATED TO UNCERTAIN TAX POSITIONS ON JULY 1, 2007, WHICH CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN THE COMPANY'S FINANCIAL STATEMENTS AND 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 ADOPTION OF THIS STANDARD HAD NO EFFECT ON THE COMPANY'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. THE COMPANY FILES FEDERAL INCOME TAX RETURNS IN THE UNITED STATES. THE COMPANY MAY BE SUBJECT TO U.S. FEDERAL INCOME TAX EXAMINATIONS FOR THE TAX YEARS ENDING JUNE 30, 2007 AND LATER BY THE INTERNAL REVENUE SERVICE. THE COMPANY IS NOT CURRENTLY UNDER EXAMINATION FOR ANY OPEN TAX YEAR. true Brazos Education Foundation 2612 washington avenue waco TX 76710 264562436 501(C)(3) 185000 Support 1 0 Form 990, Schedule I Description of Organization's Procedures for Monitoring the Use of Grants Provided related 501(c)(3) organization with grant funds for initial scholarship and administration startup and scholarships to qualified students. Monitoring the use of grant funds is not required. X X X true true X X X X false false false false false false false false false Tammy Harralson 110802 0 49633 0 10608 0 17680 0 11918 0 200641 0 0 0 David Horner 203333 0 124886 0 22000 0 24500 0 22927 0 397646 0 0 0 Randall Larson 143027 0 59481 0 0 0 12300 0 22667 0 237475 0 0 0 Michael Macomber 188149 0 122633 0 22000 0 24500 0 23761 0 381043 0 0 0 Ellis Tredway 168545 0 105279 0 22000 0 24500 0 11596 0 331920 0 0 0 Ricky Turman 283500 0 163950 0 17719 0 24500 0 4941 0 494610 0 0 0 kelli Villarrial 145720 0 50381 0 4467 0 12406 0 6554 0 219528 0 0 0 Murray Watson 534875 0 446138 0 41397 0 24500 0 5434 0 1052344 0 0 0 Janice White 109891 0 47097 0 24204 0 16672 0 3956 0 201820 0 0 0 Suzanne Young 78523 0 38491 0 18850 0 13481 0 5112 0 154457 0 0 0 Sam Redden 145635 0 64833 0 22000 0 23776 0 11448 0 267692 0 0 0 Debra Urias 90331 44244 16500 15480 9885 176440 Milicent Larson 69316 0 34908 0 0 0 10430 0 6238 0 120892 0 0 0 Henry Stoever 155463 0 570 0 16500 0 17265 0 6275 0 196073 0 0 0 John M Wright 101467 0 47823 0 16525 0 16281 0 5916 0 188012 0 0 0 Sarah MacCarthy 112010 0 32667 0 9237 0 15391 0 6157 0 175462 0 0 0 Mike Abdelnour 108534 0 30759 0 4367 0 8891 0 4825 0 157376 0 0 0 Justin Green 101163 0 37264 0 1952 0 6758 0 5400 0 152537 0 0 0 Supplemental Compensation Information Travel for companions - The following individuals received spousal travel benefits which were reported as taxable compensation on Form 1099 - Bob Chambers, David F. Smith and Norman L. Hay, Jr. Social Club dues - Paid for Murray Watson, President & Ellis Treadway, Executive Vice President. These were used for Business meetings. These amounts were not included in taxable compensation. Personal Services - A personal driver is provided for Murray Watson, President. The Company provides a part-time employee to provide transportation during working hours. These amounts were not included in taxable compensation. MURRAY WATSON JR PERSONAL LIFE INSUR X 2340 426274 false true true 426274 MURRAY WATSON Associates Murray Watson, officer 437488 LEGAL FEES false Supplemental Information Form 990, Part VI, Question 2 Description of Relationships Murry Watson, Jr., Randall Larson, Milicent Larson have a family relationship. Ray Rushing and Murray Watson, Jr. have a business relationship. Form 990, Part VI, Question 11 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 The internal audit department annually prepares a conflict of interest survey. This survey is designed for, a) board members, officers, directors, and key employees, and b) all other employees. The internal audit department reviews the responses from each group and identifies potential conflicts based on criteria provided in the Conflict Of Interest (COI) policy. These conflicts, if considered material, are tabulated and provided to the board of directors for review and resolution. If these conflicts are considered immaterial, these are provided to executive management for review and resolution. Form 990, Part VI, Question 15a Offices & Positions for Which Process was Used, & Year Process was Begun Brazos Higher Education Service Corporation's Board of Directors uses an independent third party to review the President's compensation. The third party reviews each element of compensation to ensure it is in compliance with IRS regulations as well as compares the compensation to other comparable entities to determine it is in line with their compensation amounts. The salary is reviewed and approved by the board of directors. Form 990, Part VI, Question 15b Offices & Positions for Which Process was Used, & Year Process was Begun An independent third party reviews the compensation of the officers and key employees to ensure it is within IRS guidelines. The third party also performs comparability studies of related organizations to determine whether salaries are reasonable. The salaries are reviewed and approved by the board of directors. Form 990, Part VI, Question 19 Avail of Gov Docs, Conflict of Interest Policy, & Fin Stmts to Gen Public Governing documents, conflict of interest policy, and financial statements are available to the general public on request. Schedule L, Part II Loans to and/or From Interested Persons Personal life insurance for Mr. Watson and his spouse. BHESC pays premiums for a life insurance policy owned by Murray Watson and his spouse. The agreement between the company and Mr. Watson is the loan is due and payable at the death of both him and his spouse, payable from the estate. Interest on the loan is calculated and included in Mr. Watson's annual W-2 as taxable income. 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. 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 existing FFELP loans held by affiliated entities for which BHESC serves as master servicer. 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