2011-11-14T10:26:33-06:00 2011-06-30 RIBIS JONES & MARESCA PA 10500 LITTLE PATUXENT PARKWAY SUITE COLUMBIA MD 21044 990 2010-07-01 562106758 CONSUMER EDUCATION SERVICES INC CONS 9198615324 3700 BARRETT DRIVE RALEIGH NC 27609 DIANE CHEN 9198615324 2011-11-11 1 DAVID JONES 4108840220 2010 2016-03-07 17:11:31Z DIANE CHEN 3700 BARRETT DRIVE RALEIGH NC 27609 34713097 0 X WWW.MYCESI.ORG X 1998 NC TO PROVIDE CREDIT COUNSELING SERVICES TO THE GENERAL PUBLIC. THESE SERVICES INCLUDE EDUCATIONAL ACTIVITIES, CREDIT COUNSELING, CLIENT DEBT MANAGEMENT PROGRAMS AND OTHER ACTIVITIES FOR THE BENEFIT OF THE GENERAL PUBLIC. 5 4 143 0 2237010 558804 6162335 7888564 30984912 26626573 52652 197960 227 0 37200126 34713097 0 0 0 0 4548966 4868319 0 0 0 28827747 22749927 33376713 27618246 3823413 7094851 16676224 22284131 6387544 4817445 10288680 17466686 X TO PROVIDE CREDIT COUNSELING SERVICES TO THE GENERAL PUBLIC. THESE SERVICES INCLUDE EDUCATIONAL PROGRAMS AND ACTIVITIES, CREDIT COUNSELING, CLIENT DEBT MANAGEMENT PROGRAMS AND HOUSING COUNSELING SERVICES FOR THE BENEFIT OF THE GENERAL PUBLIC. 0 0 9262305 24335615 CREDIT COUNSELING AND EDUCATION: THIS PROGRAM ASSISTS CLIENTS IN MANAGING THEIR PERSONAL FINANCES THROUGH THE PROVISION OF DEBT MANAGEMENT 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 SITUATION AND ASSIST THEM IN DEVELOPING A BUDGET IN ORDER TO IMPROVE THEIR OVERALL CREDIT. DURING THE FISCAL YEAR ENDED JUNE 30, 2011, APPROXIMATELY 65,000 FINANCIALLY DISTRESSED INDIVIDUALS RECEIVED CREDIT COUNSELING AND FREE EDUCATIONAL RESOURCE MATERIALS.CESI ALSO OFFERS A WIDE VARIETY OF HOUSING COUNSELING SERVICES TO POTENTIAL HOMEBUYERS AND CURRENT HOMEOWNERS. THESE SERVICES INCLUDE EDUCATION THROUGH GROUP SESSIONS AND ONE-ON-ONE COUNSELING. THE AREAS OF FOCUS ARE PRE-PURCHASE EDUCATION AND COUNSELING, LOSS MITIGATION COUNSELING, FORECLOSURE PREVENTION COUNSELING, AND REVERSE MORTGAGE COUNSELING. 691211 53948 COMMUNITY EDUCATION OUTREACH: CESI SUPPORTS THE ADVANCEMENT OF FINANCIAL LITERACY EDUCATION WITHIN LOCAL AND STATE COMMUNITIES THROUGH A STRONG COMMUNITY OUTREACH PROGRAM. OUTREACH EFFORTS INCLUDE GROUP EDUCATION PROGRAMS, USUALLY IN PARTNERSHIP WITH LOCAL COMMUNITY AGENCIES OR EDUCATIONAL INSTITUTIONS. 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.CESI OFFERS NUMEROUS FINANCIAL EDUCATIONAL RESOURCES, WHICH ARE EASILY ACCESSED BY ALL CONSUMERS AND NOT JUST CESI CUSTOMERS. THESE RESOURCES ARE DESIGNED TO HELP CONSUMERS BETTER MANAGE THEIR FINANCES AND TO ACHIEVE THE GOAL OF BECOMING DEBT FREE.IN ADDITION, CONSUMERS MAY PARTICIPATE IN CESI'S FREE ONLINE COURSES THROUGH CESI DEBT SOLUTIONS UNIVERSITY WHICH PROVIDES A COMPREHENSIVE FINANCIAL LITERACY CURRICULUM THAT OFFERS SELF-PACED INSTRUCTIONAL SESSIONS. THIS PROGRAM ASSISTS CONSUMERS WITH THE NECESSARY SKILLS TO IMPROVE THEIR FINANCIAL MANAGEMENT PRACTICES THAT INCLUDE DEBT MANAGEMENT, MINIMIZING CREDIT CARD SPENDING AND DEVELOPING A BUDGET. CESI ALSO OFFERS A VARIETY OF EDUCATIONAL RESOURCES THAT INCLUDE PERSONAL FINANCIAL CALCULATORS, A BI-MONTHLY E-NEWSLETTER, EDUCATIONAL BLOGS AND ON-LINE COMMUNITY MESSAGE BOARDS, AS WELL AS VARIOUS E-LEARNING RESOURCES SUCH AS VIDEO WEBCASTS. 14764810 CLIENT PAYMENT PROCESSING: THIS PROGRAM PROVIDES SERVICES TO ITS DEBT MANAGEMENT PARTICIPANTS WITH RESPECT TO PROCESSING PAYMENTS, WORKING WITH CREDITORS TO SECURE A REDUCTION IN INTEREST RATES, AND EDUCATING AND TRAINING CLIENTS TO BETTER MANAGE THEIR FINANCES. THE CLIENT PAYMENT PROCESSING IS OUTSOURCED TO A THIRD-PARTY SERVICE PROVIDER WITH CESI'S FINAL APPROVAL.EFFECTIVE OCTOBER 31, 2011, CESI'S ARRANGEMENT WITH THE THIRD PARTY SERVICE PROVIDER WILL TERMINATE. AS A RESULT, CESI WILL HANDLE THE CIENT PAYMENT PROCESSING IN-HOUSE ALONG WITH OTHER RELATED CLIENT SERVICES ACTIVITIES. 1914575 MEMBER BENEFITS SERVICES: THIS PROGRAM OFFERS VARIOUS BENEFIT SERVICES TO ITS CLIENTS PARTICIPATING IN THE DEBT MANAGEMENT PROGRAM. SUCH BENEFITS INCLUDE REBATES ON EVERYDAY PURCHASES (E.G., GROCERIES, CLOTHING, ETC.), A DISCOUNT SAVERS CLUB BOOKLET, VISION CARE DISCOUNTS ON EYE EXAMS AND EYE SURGERIES, DISCOUNTS ON PRESCRIPTION MEDICINE, ONLINE COUPONS FOR RESTAURANTS, HOTEL RESERVATIONS, AND TRAVEL, AND AN ARRAY OF OTHER DISCOUNT SERVICES. AS OF JUNE 5, 2011, CESI CEASED OFFERING MEMBER BENEFITS SERVICES TO NEW CLIENTS, HOWEVER, CESI CONTINUES TO PROVIDE MEMBER BENEFITS SERVICES TO CLIENTS WHO WERE ALREADY ENROLLED AT THIS DATE. 1914575 26632901 1 1 0 0 0 0 0 1 0 1 1 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 18 0 1 143 1 1 1 0 0 0 0 0 0 0 0 0 X 5 4 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 1 1 1 1 0 WV NC IA OR X DIANE CHEN 9198615324 3700 BARRETT DRIVE RALEIGH NC 27609 DR EDWARD ERICKSON 15.00 X X 0 0 0 DR JAMES WANG 1.00 X 0 0 0 DR FRED MANGUM 1.00 X 0 0 0 ROBERT FITZGERALD 5.00 X 0 0 0 DR DIANE CHEN 40.00 X 202020 0 34106 202020 0 34106 1 0 1 0 AMERIX CORPORATION 8930 STANFORD BOULEVARD COLUMBIA MD 21045 BACK OFFICE DEBT MANAGEMENT PROCESSING A 15006282 3CI 8930 STANFORD BOULEVARD COLUMBIA MD 21045 MARKETING 4467894 NINEONENINE 102 AVENT FERRY ROAD HOLLY SPRINGS NC 27540 MARKETING & DESIGN 159500 ALPHANUMERIC SYSTEMS DEPT 1233 PO BOX 1070 CHARLOTTE NC 28201 INFORMATION TECHNOLOGY 118089 SUTHERLAND ASBILL & BRENNAN LLP 1275 PENNSYLVANIA AVE WASHNGTON DC 20004 LEGAL 110972 5 7888564 7888564 DEBT MANAGEMENT PROGRA 900099 24335615 24335615 MEMBER BENEFIT SERVICE 812900 2237010 2237010 HOUSING SERVICES 812900 53948 53948 26626573 197960 197960 34713097 24389563 2237010 197960 206126 173146 32980 3730042 3172595 557447 123737 105176 18561 442493 376120 66373 365921 311031 54890 183246 155759 27487 28060 28060 9369 9369 117422 99814 17608 5218523 5218523 898768 838594 60174 343002 291551 51451 39894 33910 5984 47857 43071 4786 7009 7009 193642 164596 29046 32921 27982 4939 INCOME TAXES 237369 237369 PROCESSING FEES 13137483 13137483 CLIENT DISCOUNT BENEFIT 1677206 1677206 LICENSES AND PERMITS 287214 287214 BAD DEBT 103743 103743 187199 171009 16190 27618246 26632901 985345 0 4374932 7838119 4129044 5776313 8370 8107 27331 31002 2428216 746193 1453068 1682023 1018631 5852894 5664848 1095673 16676224 22284131 855248 400024 5532296 4371062 0 46359 6387544 4817445 X 10288680 17466686 10288680 17466686 16676224 22284131 X 7094851 83155 X X 0 1 1 X 0 X 4650072 4901518 5996798 6162335 7888564 29599287 4650072 4901518 5996798 6162335 7888564 29599287 3416509 26182778 644831 503583 169873 52652 183584 1554523 93500 15413 2427 227 111567 31265377 123647793 0.83740 0.86110 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 156896 156896 1127650 33168 1094482 975471 583908 391563 168199 129117 39082 1682023 SECURITIES AND OTHER INVESTMENTS 5852894 C 5852894 NONQUALIFIED RETIREMENT PLAN LIABILITY 46359 46359 34713097 27618246 7094851 59826 23329 83155 7178006 34796252 59826 23329 83155 34713097 0 34713097 27618246 0 27618246 0 27618246 PART IV, LINE 2B: CESI OFFERS DEBT MANAGEMENT PROGRAMS TO ASSIST CLIENTS IN PAYING THEIR UNSECURED DEBTS. FUNDS RECEIVED FROM CLIENTS PARTICIPATING IN THE DEBT MANAGEMENT PROGRAM ARE DEPOSITED INTO VARIOUS DEPOSITORY ACCOUNTS. FUNDS ARE THEN TRANSFERRED FROM THE DEPOSITORY ACCOUNTS INTO A SEPARATE FOR THE BENEFIT OF OTHERS ACCOUNT (THE FBO ACCOUNT) ON A DAILY BASIS. FUNDS RESIDING IN THE FBO ACCOUNTS ARE DISBURSED TO CREDITORS AND PORTIONS OF THE FUNDS ARE DISBURSED TO CESI'S OPERATING ACCOUNT AS CONTRIBUTIONS MADE TO CESI BY CREDITORS AND/OR CLIENTS. CERTAIN STATES REQUIRE THAT CLIENT FUNDS BE HELD IN A DEPOSITORY ACCOUNT WITHIN THAT STATE UNTIL THE RESPECTIVE CLIENTS CREDITORS ARE PAID. IN THIS SITUATION CREDITORS ARE PAID FROM MONIES FROM THIS STATES DEPOSITORY ACCOUNT. INTEREST INCOME EARNED ON FUNDS HELD IN THE VARIOUS RESTRICTED CASH ACCOUNTS IS USED TO PAY FOR BANK FEES AND OTHER EXPENSES. CESI IS RESPONSIBLE FOR ANY EXCESS EXPENSES ARISING FROM THE ACTIVITIES OF THESE ACCOUNTS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: OVER THE PAST SEVERAL YEARS, THE INTERNAL REVENUE SERVICE (IRS) HAS ENGAGED IN AUDITING A LARGE NUMBER OF TAX-EXEMPT ORGANIZATIONS THAT PROVIDE CREDIT COUNSELING AND DEBT MANAGEMENT SERVICES TO THE PUBLIC TO DETERMINE IF THEY, IN FACT, QUALIFY FOR TAX-EXEMPT STATUS. CESI WAS ONE OF THE ORGANIZATIONS SELECTED TO BE EXAMINED, WHICH BEGAN IN 2004. CERTAIN STATE LICENSING REGULATIONS REQUIRE A FEDERAL TAX-EXEMPT STATUS IN ORDER TO OFFER CREDIT COUNSELING SERVICES AND THIS WOULD ACCORDINGLY AFFECT OPERATIONS IN THOSE JURISDICTIONS. MANAGEMENT BELIEVES THE ORGANIZATION IS IN COMPLIANCE WITH CURRENT AND PREVIOUS RULES GOVERNING THESE TYPES OF ENTITIES AND HAS MADE SEVERAL DIFFERENT APPEALS OF THIS DECISION. AT THIS TIME, CESIS EXEMPT STATUS IS STILL IN EFFECT AND AWAITING A FINAL RESOLUTION. PART XI, LINE 8 - OTHER ADJUSTMENTS: UNREALIZED GAIN ON CASH SURRENDER VALUE OF LIFE INSURANCE 23,329. PART XII, LINE 2D - OTHER ADJUSTMENTS: GAIN ON CASH SURRENDER VALUE OF LIFE INSURANCE 23,329. X 0 0 0 0 0 0 0 0 0 DR DIANE CHEN 202020 0 0 0 0 0 30000 0 4106 0 236126 0 0 0 FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION'S BOARD OF DIRECTORS HAS NO SEPARATE COMMITTEES. THE BOARD OF DIRECTORS CONSISTS OF FIVE MEMBERS. FORM 990, PART VI, SECTION B, LINE 11 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, PART VI, SECTION B, 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 INTEREST REQUIRE IMMEDIATE DISCLOSURE. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS DETERMINES THE SALARY OF THE PRESIDENT & CEO AND KEY EMPLOYEES ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION C, LINE 19 CESI MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. THE ORGANIZATION'S FORM 990 IS ALSO AVAILABLE ON GUIDESTAR.COM. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 59,826. UNREALIZED GAIN ON CASH SURRENDER VALUE OF LIFE INSURANCE 23,329. TOTAL TO FORM 990, PART XI, LINE 5: 83,155. FORM 990, PART XII, LINE 2C THE ORGANIZATION HAS NOT CHANGED ITS OVERSIGHT PROCESS OR SELECTION PROCESS DURING THE TAX YEAR. NUVITA LLC 3700 BARRETT DRIVE RALEIGH NC 27609 TO PROVIDE OFFICE SPACE. NC CONSUMER EDUCATION SERVICES INC