2011-08-04T12:08:20-05:00 2010-09-30 DELOITTE TAX LLP 111 MONUMENT CIRCLE STE 2000 INDIANAPOLIS IN 462045108 990 2009-10-01 911068278 NORTHWEST EDUCATION LOAN ASSOCIATION NORT 3178061231 PO Box 6028 INDIANAPOLIS IN 462066028 STEPHEN C HAM 3178061231 2011-08-04 1 Jeffrey D Frank 3174648600 2009 2016-02-24 21:20:13Z NELA Carl Dalstrom 9998 Crosspoint Blvd Ste 400 Indianapolis IN 462563307 21006420 0 X www.nela.net X 1978 WA NELA'S MISSION IS TO ENHANCE POSTSECONDARY EDUCATION PREPAREDNESS, ACCESS AND SUCCESS. 5 1 26 0 0 0 400057 506132 19464910 20317543 78465 32745 0 19943432 20856420 434123 453850 0 1030936 1167391 0 10188 18644788 18205626 20109847 19826867 -166415 1029553 40460757 38268937 33712215 30477827 6748542 7791110 NELA'S MISSION IS TO ENHANCE POSTSECONDARY EDUCATION PREPAREDNESS, ACCESS AND SUCCESS BY PROVIDING AND SUPPORTING FINANCIAL AND OTHER VALUED SERVICES. 0 1 10259843 13463666 COLLECTION ON DEFAULTED LOANS - NELA SUCCESSFULLY COLLECTED OVER $70.5 MILLION ON DEFAULTED EDUCATIONAL LOANS IN THE CURRENT YEAR. 4727306 4237046 GUARANTEE SERVICES - NELA GUARANTEED OVER $358 MILLION OF EDUCATIONAL LOANS AND MAINTAINS A PORTFOLIO OVER $4.9 BILLION IN OUTSTANDING EDUCATIONAL LOANS IN ACCORDANCE WITH THE HIGHER EDUCATION ACT OF 1965, AS AMENDED. 1737715 2030928 DEFAULT AVERSION - NELA WORKED WITH BORROWERS AND SUCCESSFULLY AVERTED DEFAULTS ON OVER $1.07 MILLION OF DELINQUENT EDUCATIONAL LOANS REPORTED BY LENDERS IN THE CURRENT YEAR. 1824441 453850 585903 Primarily includes guarantor revenues, as defined by the U.SHigher Education Act. 1824441 453850 585903 18549305 1 1 0 0 0 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 12 0 1 26 1 0 0 0 0 0 0 0 0 0 5 1 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 CA OR WA X Deborah L McCloud 3178061231 9998 Crosspoint Blvd Suite 400 Indianapolis IN 462563307 Carl C Dalstrom 40.00 X X 0 582330 192229 Denise B Feser 40.00 X X 0 289182 76194 Karen L DeVilla 40.00 X X 163714 0 62205 Rev William Beauchamp 1.00 X 0 41550 0 David B Boodt 40.00 X 0 293349 90562 Stephen C Ham 40.00 X 0 314406 84370 Joni M Anderson 40.00 X 0 150097 41554 Danette L Knudson 40.00 X 119302 0 20493 283016 1670914 567607 2 0 1 0 Sallie Mae 11100 USA Parkway Fishers IN 46038 Guarantor Services 14481571 Student Assistance Corporation 11100 USA Parkway Fishers IN 46038 Default Aversion Activities 1789131 USA Funds 9998 Crosspoint Blvd Ste 400 Indianapolis IN 46256 Administrative Fees 434794 WIPFLI LLP PO Box 3160 Milwaukee WI 532013160 Consulting Services 294207 4 300000 206132 506132 Collections on Default 522000 13463666 13463666 Guarantee Services 522000 4237046 4237046 Default Aversion Fees 522000 2030928 2030928 585903 585903 20317543 32745 32745 150000 150000 0 0 20856420 20317543 0 32745 153350 153350 300500 300500 175139 175139 852507 548541 294959 9007 67965 43306 24146 513 71780 27445 43667 668 18427 15700 2727 64686 64686 1116617 660618 455999 127986 90864 37122 30198 11779 18419 285751 281151 4600 126996 126996 116702 60189 56513 41271 30146 11125 8025 4178 3847 3763 2509 1254 Collection Expense 10259843 10259843 Acct. Maint. & Issuance 3648157 3648157 Default Aversion Fees 1737715 1737715 Default Fee Expense 364726 364726 254763 181592 73171 19826867 18549305 1267374 10188 7030206 5330858 5399675 3009472 4003883 3577558 60971 15388 37421 45583 3371589 171308 23818264 22933877 40460757 38268937 6712550 4915171 3835362 3757056 23164303 21805600 33712215 30477827 X 6596991 7757777 151551 33333 6748542 7791110 40460757 38268937 X 0 1 1 X 1 1 X 6549360 7243205 785000 400057 506132 15483754 6549360 7243205 785000 400057 506132 15483754 15483754 327760 395769 281975 78465 32745 1116714 16600468 107549920 0.93270 0.95050 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 17529 2632 14897 43442 12756 30686 45583 Receivable from Fed Fund 1220452 Assets held on behalf of Fed Reserve 21713425 22933877 PART IV, LINE 2B: NELA HOLDS FEDERAL RESERVE FUNDS IN TRUST FOR THE U.S. DEPARTMENT OF EDUCATION. NELA ALSO HOLDS ASSETS AS ESCROW ON BEHALF OF THE WASHINGTON SCHOLARSHIP COALITION. 1 South Puget Sound Community College Foundation 2011 Mottman Road SW Olympia WA 985126292 911174940 501c3 34000 2009 All-Washington Academic Team Ceremony. NELA as Escrow for Scholarship Coalition 309 23rd Ave S Seattle WA 98144 911068278 501c3 10000 Washington Scholarship Coalition Grant Northwest Dollars for Scholars 12711 58th Dr SE Snohomish WA 98296 042296967 501c3 15000 Light the Fire for Education Alliance for Education 509 Olive Way Suite 500 Seattle WA 98101 911508191 501c3 5000 Black and Orange Ball City Year Inc 2203 23rd Ave S 101 Seattle WA 98144 222882549 501c3 5000 Ripples of Hope Annual Benefit Gala College Success Foundation 1605 NW Sammamish Road Suite 100 Issaquah WA 98027 912036088 501C3 58400 Know How To Go 6 SCHOLARSHIPS 205 300500 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: NELA's grant-making is limited to WA, OR, ID, AND AK. NELA monitors the use of grant funds by requiring the grantee to send in a final accounting report describing how the funds were used. This report will include actual expenses that would be compared to the budget sent in with the original grant request. In addition, NELA staff have routine meetings with grantees, some on their site and others at our site. X X X X X X 0 1 0 0 0 0 0 1 0 Carl C Dalstrom 0 374505 0 172000 0 35825 0 174482 0 17747 0 774559 0 0 Denise B Feser 0 179393 0 78700 0 31089 0 67900 0 8294 0 365376 0 0 Karen L DeVilla 116271 0 23579 0 23864 0 40248 0 21957 0 225919 0 0 0 David B Boodt 0 201971 0 80500 0 10878 0 67900 0 22662 0 383911 0 0 Stephen C Ham 0 204195 0 86100 0 24111 0 64623 0 19747 0 398776 0 0 Joni M Anderson 0 104866 0 28055 0 17176 0 33105 0 8449 0 191651 0 0 Part I, Line 4b: United Student Aid Funds, Inc. has a plan for the CEO of NELA. No payments have been made under the plan. Part I, Line 7 All officers and all employees of the company participate in the "Employee Incentive Plan." Annual payments are based on overall corporate performance in the accomplishment of the Corporate objectives, as evaluated by the Board of Trustees of United Student Aid Funds, Inc., and individual performance. The amount of the payment is a percentage of annual salary, varying by the salary grade of the individual position. Form 990, Part III, line 3 Changes in Program Services THERE WAS A LEGISLATIVE CHANGE EFFECTIVE JULY 1, 2010 WHICH ELIMINATED THE ORIGINATION OF NEW LOANS UNDER THE FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP) PER THE HIGHER EDUCATION ACT OF 1965, AS AMENDED. THEREFORE, NORTHWEST EDUCATION LOAN ASSOCIATION HAD NO NEW GUARANTEES OF LOANS AFTER JUNE 30, 2010. Form 990, Part VI, Section A, line 2 The following are officers and board members of Northwest Education Loan Association, Inc. which are also officers, board members, or employees of United Student Aid Funds, Inc. and other related organizations. Carl Dalstrom Denise Feser Rev. William Beauchamp Stephen Ham Joni Anderson Karen Devilla David Boodt Form 990, Part VI, Section A, line 6 United Student Aid Funds, Inc. is the sole member of NELA and appoints the board. Form 990, Part VI, Section A, line 7a United Student Aid Funds, Inc. (USA Funds) is the parent corporation and sole member of NELA. As the member, USA Funds has the right to (a) Elect and remove the members of the Board of Trustees of NELA, and (b) Fill any vacancy on the Board of Trustees. Form 990, Part VI, Section A, line 7b While the Board of Trustees of NELA is granted certain powers with respect to operations, as the member, United Student Aid Funds, Inc. retains approval rights with respect to certain corporate actions such as (I) Adoption of the organization's financial plans, (II) Expenditures for non-budgeted items in excess of certain dollar limits set from time to time by the member, (III) Expenditures for items which are included in the organization's annual budgets but which exceed the budgeted amount by an amount in excess of certain dollar limits set from time to time by the member, (IV) Incurrence, assumption or guarantee of any indebtedness, and (V) Any merger, consolidation, reorganization, dissolution or liquidation. Form 990, Part VI, Section B, line 11 Once the Form 990 is prepared by the Company, with assistance from the external tax accounting firm, the Form and all applicable Schedules are provided to the Audit Committee of the Board of Trustees of United Student Aid Funds, Inc. for review. After the Audit Committee has completed their review, the Form and all applicable Schedules are provided to the full Northwest Education Loan Association Board in advance of the Form being filed with the IRS, allowing time for review and comment by the full Board. Form 990, Part VI, Section B, line 12c Annually, a conflict of interest and disclosure questionnaire is required to be completed by all employees. The purpose of the questionnaire is to solicit information about relationships that may constitute a potential conflict of interest. Each member of the Board of Trustees signs an annual conflict of interest disclosure statement that discloses actual or potential conflicts of interest as set forth in the approved Conflicts of Interest Policy for Trustees. The disclosure statements are reviewed by the Audit Committee of the Board of Trustees. When any such conflict of interest is relevant to a matter requiring action by the Board of Trustees or the Audit Committee, the interested person shall call it to the attention of the chair of the Audit Committee, and such person shall not vote on the matter. Moreover, the person having the conflict shall leave the room in which the meeting is held and not participate in the final deliberations or decision regarding the matter under consideration. A board member shall advise the chair of the Audit Committee and the Corporate Secretary in writing of any potential conflicts of interest which arise after signing the conflict of interest disclosure statement. Form 990, Part VI, Line 15: NELA's CEO is compensated by United Student Aid Funds, Inc (USA Funds), a related tax-exempt organization. Compensation determinations for USA Funds are made by a compensation committee of USA Funds whose members have no conflict of interest within the meaning of Treas. Reg. 53.4958-6(C)(1)(III). The compensation committee establishes the compensation philosophy, and with comparability data provided by an independent compensation consultant, annually evaluates the performance of the CEO, and determines in advance the reasonableness of compensation paid to and benefits provided to such individual. As part of the annual performance evaluation, the compensation committee solicits the views of the chairs of the other board committees. The determinations made and the basis of such determinations are contemporaneously documented in written minutes. Final determinations are reported to the full board of trustees of USA Funds. Form 990, Part VI, Section C, line 19 The organization makes any document open to public inspection available upon request. Form 990, Part VII, Line 1A, Column B: TRACKING OF HOURS BY ENTITIES OFFICERS OF NORTHWEST EDUCATION LOAN ASSOCIATION PROVIDE SERVICES TO UNITED STUDENT AID FUNDS, INC. AND AFFILIATES. HOURS WORKED ARE NOT TRACKED SEPARATELY FOR EACH ENTITY. THEREFORE, HOURS FOR ALL OFFICERS REPORTED ON FORM 990, PART VII, COMPENSATION OF OFFICERS, DIRECTORS, TRUSTEES, AND KEY EMPLOYEES REPRESENT AGGREGATE HOURS WORKED PER WEEK FOR ALL ENTITIES. Form 990, Part XI, Line 2a & b: THE ORGANIZATION IS INCLUDED IN THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF UNITED STUDENT AID FUNDS, INC., WHICH ARE AUDITED BY AN INDEPENDENT ACCOUNTING FIRM. THE AUDIT COMMITTEE OF UNITED STUDENT AID FUNDS, INC. PROVIDES ASSISTANCE TO THE BOARD OF TRUSTEES IN FULFILLING ITS FIDUCIARY RESPONSIBILITIES, MAINTAINS FREE AND OPEN COMMUNICATION BETWEEN THE COMMITTEE, THE DIRECTOR OF INTERNAL AUDIT/COMPLIANCE, THE INDEPENDENT AUDITORS, AND MANAGEMENT, AND ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT. MAJOR RESPONSIBILITIES INCLUDE: -ANNUALLY, APPROVE THE ENGAGEMENT OF THE EXTERNAL AUDITORS, INCLUDING RELATED SCOPE, FEES AND REPORTS. -REVIEW WITH MANAGEMENT AND THE INDEPENDENT AUDITORS THE ANNUAL FINANCIAL STATEMENTS AND RESULTS OF THE AUDIT, INCLUDING REQUIRED MATTERS TO BE COMMUNICATED TO THE COMMITTEE BY THE INDEPENDENT AUDITORS UNDER GENERALLY ACCEPTED AUDITING STANDARDS. -DISCUSS WITH THE EXTERNAL AUDITORS THEIR INDEPENDENCE FROM MANAGEMENT AND THE ORGANIZATION AND THE MATTERS INCLUDED IN WRITTEN DISCLOSURE REQUIRED BY THE INDEPENDENCE BOARD. -OVERSEE MANAGEMENT ACTION PLANS RESULTING FROM EXTERNAL MANAGEMENT LETTER. United Student Aid Funds Inc 9998 Crosspoint Blvd Indianapolis IN 462563307 946050341 Student Loan Guarantor DE Section 501(c)(3) 7 N/A USA Funds Education Endowment Inc PO Box 6028 Indianapolis IN 462066028 202392907 Support Organization DE Section 501(c)(3) 11A, I USA Funds Secondary Market Services Corp - HAWAII PO Box 6028 Indianapolis IN 462066028 351876688 Student Loan Secondary Mkt HI Section 501(c)(3) 7 USA Funds 0 0 1 1 0 0 0 0 0 0 0 1 0 0 1 0 0 0 United Student Aid Funds Inc C 300000 Secondary Market Services Corp - Hawaii D 683612 United Student Aid Funds Inc L 434794 United Student Aid Funds Inc O 1415312