National University Foundation

“The draft form 990 was distributed to senior management and the audit committee. The final version of form 990 was distributed for review before filing to the trustees by email.”

“The board of trustees has anually reviewed and approved (by a majority of disinterested trustees) the business transactions with trustees or their affiliated professional service firms. Such reviews include consideration of data on comparable service providers collected by university counsel. The interested trustees were excused from board sessions during which those business transactions were discussed and did not participate in voting on such transactions. Questionnaires are distributed every january. Compliance with the conflict of interest policy is monitored by university counsel and was reviewed by the board during the year ended june 30, 2019.”

“Compensation of the chancellor of the nus is reviewed by the board at the time of hiring and as necessary thereafter. Compensation of other officers and key employees is determined or reviewed by the chancellor. In both cases, compensation is determined with regard to compensation paid to senior executives of comparable non-profit and proprietary institutions in education and other fields. The process is documented and was last completed in june 2019.”

“The organization's governing documents, conflict of interest policy, and financial statements are available upon request.”

“The chancellor is a trustee of national university and of each other affiliate of the nus, except national university academy. His compensation is allocated among the nus affiliates as follows: national university is a private nonprofit university in california, with over 30 campuses. Serving about 132,000 students in class (22,000 fte) and staffed by about 1,000 employees, it offers more than 100 accredited undergraduate and graduate degrees and credential programs in five schools. Dr jerry lee: (b)(i) $0; (b)(ii) $0; (b)(iii) $147,647; (c) $0; (d) $0; (e) $0 john f. Kennedy university, founded in 1964, offers doctoral, master's, bachelor's degrees, and operates a law school at its campuses in pleasant hill, ca and berkeley, ca. It has about 1,600 students and about 225 employees. Dr jerry lee: (b)(i) $0; (b)(ii) $0; (b)(iii) $83,667; (c) $0; (d) $0; (e) $0 northcentral university, formerly westmed college, offered certification programs for vocational nurses and paramedics. Its campuses were in san jose, ca and merced, ca. In april 2017, the board voted to teach out the remaining students and terminate operations. Westmed transferred its remaining net assets to an affiliated entity in december 2018; therefore, there was no allocation of amounts for fiscal 2019. Dr jerry lee: (b)(i) $0; (b)(ii) $0; (b)(iii) $0; (c) $0; (d) $0; (e) $0 national university virtual high school, which together with the charter school national university academy, constitutes the division of pre-college programs and provides interactive, media-rich educational opportunities to diverse high-school students. It serves about 1,300 students, and has about 5 employees. It has articulation agreements with over 400 schools, allowing its online courses to supplement classroom instruction. Dr jerry lee: (b)(i) $0; (b)(ii) $0; (b)(iii) $27,069; (c) $0; (d) $0; (e) $0 city university of seattle, founded in 1973, offers over 60 programs including undergraduate and graduate degrees and certificates. The university has over 30 campuses. It has about 7,000 students in class and about 50 employees. Dr jerry lee: (b)(i) $0; (b)(ii) $0; (b)(iii) $36,912; (c) $0; (d) $0; (e) $0 financial statements: explanation: system management group is included in a combined report with the national university system.”

“In december 2018, smg's newly formed for profit subsidiary, ncu, inc., entered into an agreement to acquire all the outstanding equity securities of ncu holdings, llc (holdings), which was the parent company of the corporation that owned northcentral university, inc. As part of one transaction, on december 31, 2018, ncu, inc. Acquired holdings (and all its subsidiaries) to expand its operations and change the name of northcentral university inc. To national education partners (nep). On january 1, 2019, westmed college (wmc), an affiliate of nus, changed its name to northcentral university (ncu) and nep donated all its academic assets to ncu. Ncu is a nonprofit, higher education institution offering bachelor, master, and doctoral degrees to an online population and is an affiliate of the national university system. In conjunction with the acquisition of nep, smg through the california municipal finance authority issued revenue bonds series 2019 a (tax exempt) and series 2019b (taxable) totaling $178.6 million, net of premium/discounts and issuance costs. The bonds mature at various dates from october 2019 april 2039.”

“Consulting fees: program service expenses 13,560,961. Management and general expenses 0. Fundraising expenses 0. Total expenses 13,560,961.”

“Equity earnings in affiliate -73,939,292.”