UNCW Business Affairs - Finance - Associated Entities
Definition of an Associated Entity
The UNC Policy Manual 600.2.5.2 [R] was adopted 11/16/2005 and provides a clear definition of any foundation, association,
corporation, LLC, partnership or other non profit entity that was established by officers of the University, that is controlled by the
University, that raises funds in the name of the University, that has a primary purpose of providing services or conducting activities
in furtherance of the University's mission pursuant to an agreement with the University, or that has a tax exempt status that is based
on being a support organization of the University. This policy is based on General Statute 116-30.20 establishment of nonprofit
corporations.
UNCW Associated Entities
There are 15 separate legal entities that are considered an associated entity. To maintain associated entity status each must abide by
relevant University policies, undergo a periodic review, meet organizational requirements, have a tax exempt status, have at least one
senior officer or designee on the governing board or who sit as ex officio (either voting or non-voting), maintain financial accounting
controls, have independent audits, and submit annual financial reports to the Chancellor and General Administration. The articles of
incorporation include a clause which provides, upon dissolution, all assets will revert to the University, or another University
approved entity unless otherwise designated by the donor of an asset.
University Involvement
The Policy Manual and General Statute have provisions for administrative and other services to be provided by the University.
Memorandums of Understanding signed by the Chancellor and the President of each entity sets forth the terms of the provided
services.
In some instances, the Board of Trustees or the University have designated that University officers hold positions on the board by
virtue of their position with the University. Some University positions may be designated to serve as Executive Director of an entity,
or act as the accountant or staff support to the entity. Other University employees may indirectly be involved through sharing of
reporting systems such as advancement gift processing, purchasing or accounts payable.
Organizational Structure and Financial Reporting
Each entity is unique and provides an important benefit or service to the University. Each entity's classification is based on
Governmental Accounting Standards Board (GASB) guidance. This requires an analysis of their board composition (university and
non university appointed directors), fiduciary control by the University, fiscal dependency, and other criteria to determine if they are
considered a "related party" and have a structure that allows them to act fairly independent, or if they are considered a "component
unit" and are essentially an extended arm of the University.
GASB requires recognition of our connection with these entities in the University's financial statements. The financial contributions
and services the University receives from the related parties is included in our footnotes, however, we do not recognize their
operational activities, assets or liabilities. The component units are more inclusive and their financial activities, assets and liabilities
are blended with the University.
University Control of Associated Entities
UNCW in its sole discretion may remove the approved status of any associated entity at any time for failure to abide by UNCW,
UNC System, and/or applicable policy, procedure, rule, law, and/or regulation. Upon withdrawal of approved status, they shall no
longer conduct activity in the name of the University and distribution of all assets shall be consistent and pursuant to their organizing
articles and by-laws.
UNCW Business Affairs - Finance - Associated Entities
Associated entities: established by the university, board membership controlled by the university, raise money in the name of the university, primary purpose to provide services and activities in support of and in furtherance
of the university's educational, research, and public service missions (501(c) (3) organizations), and /or they possess an IRS recognized tax-exempt status as a supporting organization (509(a)) for the university. LLCs
established to conduct day-to-day activities, managed by university officers or employees and restricted to services and activities in furtherance of the university's mission. The single members hold 100% interest in the
LLCs. Major Associated Entities have annual expenditures of more than $100,000. Minor Associated Entities have annual expenditures of less than $100,000.
Corporation/Foundation
The Foundation of the University
of North Carolina at Wilmington,
Inc. (single member)
Associated Limited
Liability Companies
Organizer
Purpose
University Officers Fundraising in Support of
UNCW
Seahawk Investment
Strategies, LLC
Activities
Fundraising, Property
acquisition
Oversight of $1M
Investment in securities
endowment gift from BB&T, among sectors of S&P
invested by Finance students 500
from CSB as part of their
classroom experience
Board Structure/
Management Structure
Volunteer Board - external to
UNCW
Advisory Board comprised of 5 Equity investments
persons representing BB&T,
UNCW administration, UNCW
Foundation and Cameron
School of Business
Cash
Minor Entity
Volunteer Board - External to
UNCW
Cash
Major Entity
3 Directors are internal to
UNCW and 3 are external
Use Agreement with UNCW
Capital Lease with UNCW,
BBT is the Trustee.
Seahawk Crossing, Parking
Deck and Retail Store
University Officers Property acquisition,
Notes with BBT secured Major Entity
disposition, and development through the LLCs
in support of UNCW.
Management Service
Agreements with UNCW
4 Directors are internal to
UNCW and 3 are external to
operations
100% interest in LLCs,
Management Service
Agreements with UNCW,
Notes with BBT
5335 Oleander Drive, old
Carmike Cinema property,
5.80 acres, 1 - 2 story
building, 19,800 sq ft
620 S College Road, 1.06
acres, building 3,246 sq ft
University Officers Support UNCW Athletics
University Officers Support UNCW Alumni
Outreach
Fundraising, Selfliquidating projects
Goodwill, Fundraising,
Special Projects
Friends of the University of
North Carolina at Wilmington
Inc.
UNCW Corporation
Marian Rippy, et al. Support UNCW
Fundraising
UNCW Corporation II (single
member of the LLCs)
University Officers Development of UNCW
Debt issued through
Student Housing, Ground
Corporation
Lease, Operating Agreement
back to University
Major Entity
Major Entity
UNCW Corporation
Oleander One, LLC
Used for Auxiliary
parking
Manager - VCBA
UNCW Corporation
College Station, LLC
Used by Public Service
Osher Life Long Learning
Institute
Manager - VCBA
UNCW Research Foundation
(single member of the LLCs)
Assets
Cash, real estate, insurance
policies, gift annuities and
investments
Volunteer Board - External to
UNCW
Volunteer Board - External to
UNCW
UNCW Student Aid Association,
Inc. (Seahawk Club)
The Alumni Association of the
University of North Carolina at
Wilmington
The Donald R. Watson
Foundation, Inc.
Category
Major Entity
University Officers Supporting organization for
the development of IP
created at UNCW
Major Entity
Cash, Investments
4 voting Directors and 3 non
Cash
voting Ex Officio - all Internal
to UNCW
UNCW Corporation
Research I ,LLC
Development of UNCW
originated intellectual
property
Manager - VCBA
Cash and 20% Equity
interest in Mobile Ed, LLC
(unaffiliated entity; faculty
start-up)
UNCW Entrepreneurship
Center, LLC
Act as the go-to resource
for entrepreneurship and
job creation in the
Wilmington region
Director CIE
Cash
The CREST Millennial
Campus, LLC
Lease up and manage the
operations of millennial
campus locations
Manager - VCBA
None as of 06/30/15
MARBIONC
Development Group, LLC
Development of UNCW
originated intellectual
property
Manager - VCBA/ CMS Senior Cash
Technology Officer
Donald Watson
Support UNCW, Duke
Medical and St. Johns
Episcopal Church
Provides funds for
scholarships
Major Entity
3 Directors are internal to
UNCW Operations and 2 are
external
Cash and Investments
UNCW Business Affairs - Finance - Associated Entities
FY 14/15
Assets
FY 14/15
Deferred
Outflows of
Resources
FY 14/15
FY 14/15
Deferred
Inflows of
Resources
Liabilities
FY 14/15
Net Assets /
Position
Related Parties
The Foundation of the University of North Carolina
at Wilmington, Inc. (single member of the LLC)
Seahawk Investment Strategies, LLC
$
UNCW Student Aid Association, Inc.
(Seahawk Club)
$
-
$
$
-
$
4,699,737
-
104,907
-
1,514,297
6,214,034
1,293,787
-
250,055
-
1,043,732
89
-
710,353
-
-
12,893
12,893
$
104,907
1,514,297
6,318,941
710,442
The Alumni Association of the University of
North Carolina at Wilmington
Friends of the University of North Carolina
at Wilmington, Inc.
Total Related Parties
4,804,644
8,336,063
$
-
$
355,051
$
-
$
7,981,012
$
-
Blended Component Units
UNCW Corporation
UNCW Corporation II (single member of the LLCs)
UNCW Corporation Oleander One LLC
UNCW Corporation College Station LLC
UNCW Research Foundation (single member of the LLCs)
UNCW Corporation Research I LLC
MARBIONC Development Group LLC
The CREST Millennial Campus, LLC
UNCW Entrepreneurship Center, LLC
The Donald R. Watson Foundation, Inc.
Total Component Units
Total Associated Entities
$ 125,320,634
$ 1,413,128
$ 125,320,634
$ 1,413,128
2,365,467
1,372,412
3,737,879
-
2,105,830
1,373,354
3,479,184
-
259,637
(942)
258,695
-
16,542
90
16,632
-
185,977
2,214
90,589
(600)
170,551
448,731
1,540,558
$ 131,064,434
$ 1,413,128
$ 128,816,450
$ 1,413,128
$
$ 139,400,497
$ 1,413,128
$ 129,171,501
$
$ 10,228,996
202,519
2,214
90,679
(600)
170,551
465,363
1,413,128
Audited Financial information of 06/30/15. (With the exception of Friends of UNCW, which is in progress, we anticipate no change in the financial
information provided in this schedule.)
1,540,558
2,247,984