UNCW Business Affairs – Finance – Associated Entities What is 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 as a support organization of the University. This policy is based on General Statute 116‐30.20, establishment of non‐profit corporations. How many Associated Entities does the University have? There are 17 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 sits 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. How is the University involved in their activities? 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. Is their organizational structure and connection to the University the same? 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 based on a materiality threshold established by the University. Does the University have ultimate control over these 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 activities 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
University Officers
Purpose
Activities
Fundraising in Support Fundraising, Property
of UNCW
acquisition
Category
Major Entity
Student Investment Group
Seahawk Investment
Strategies, LLC
Board Structure/ Management
Structure
Assets
Volunteer Board - external to
Cash, real estate, insurance
UNCW
policies and investments
Student and Faculty managed
Investments
UNCW Student Aid Association,
Inc. (A.K.A. Seahawk Club)
University Officers
Support UNCW
Athletics
Fundraising, selfliquidating projects
Major Entity
Volunteer Board - External to
UNCW
Cash
The Alumni Association of the
University of North Carolina at
Wilmington
University Officers
Support UNCW
Alumni Outreach
Goodwill, Fundraising,
Special Projects
Major Entity
Volunteer Board - External to
UNCW
Cash, Investments
Friends of the University of North
Carolina at Wilmington Inc.
Marian Rippy, et al.
Support UNCW
Fundraising
Minor Entity
Volunteer Board - External to
UNCW
Cash
UNCW Corporation (single
member of the LLCs)
University Officers
Development of UNCW Debt issued through
Major Entity
Student Housing,
Corporation and the LLCs.
Ground Lease,
Operating Agreement
back to University
3 Directors are internal to
UNCW, and 3 are external
Use Agreement with UNCW
100% interest in LLCs,
Capital Lease with UNCW,
Debt issued through BBT.
Seahawk Crossing, Parking
Deck and Retail Store
UNCW Corporation
Housing I, LLC
Use Agreement with UNCW
Seahawk Village
UNCW Corporation
Housing II, LLC
Use Agreement with UNCW
Seahawk Landing
4 Directors are internal to
UNCW, and 3 are external to
operations
100% interest in LLCs,
Management Service
Agreements with UNCW,
Notes with BBT.
UNCW Corporation II (single
member of the LLCs)
University Officers
Major Entity
UNCW Corporation
Oleander One, LLC
Used for Auxiliary parking
Manager - VCBA
5335 Oleander Drive, old
Carmike Cinema property,
5.80 acres, 1 - 2 story
building, 19,800 sq ft
UNCW Corporation
College Station, LLC
Used by Public Service
Osher Life Long Learning
Institute
Manager - VCBA
620 S College Road, 1.06
acres, building 3,246 sq ft
UNCW Research Foundation
(single member of the LLCs)
The Donald R. Watson
Foundation, Inc.
Property acquisition,
Notes with BBT secured
disposition, and
through the LLCs
development in support
of UNCW.
Management Service
Agreements with
UNCW
University Officers
Supporting organization
for the development of
IP created at UNCW
Major Entity
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 06/30/12
MARBIONC Development
Group, LLC
Development of UNCW
originated intellectual
property
Manager - VCBA/ CMS Senior
Technology Officer
Cash
3 Directors are internal to
UNCW Operations, and 2 are
external
Cash and Investments
Donald Watson
Support UNCW, Duke Provides funds for
Medical and St. Johns scholarships
Episcopal Church
Major Entity
UNCW Business Affairs - Finance - Associated Entities
FY 13/14
FY 13/14
Assets
Liabilities
FY 13/14
Net
Assets/Position
Related Parties
The Foundation of the University of North Carolina
at Wilmington, Inc. (single member of the LLC)
$
4,696,301
$
108,582
$
4,587,719
$
$
1,476,417
6,172,718
$
$
108,582
$
$
1,476,417
6,064,136
$
872,570
$
72,500
$
800,070
The Alumni Association of the University of
North Carolina at Wilmington
$
710,260
$
-
$
710,260
Friends of the University of North Carolina
at Wilmington, Inc.
$
14,243
$
-
$
14,243
$
7,769,791
$
181,082
$
7,588,709
UNCW Corporation (single member of the LLCs)
UNCW Corporation Housing I, LLC
UNCW Corporation Housing II, LLC
$
$
$
$
59,499,976
28,669,693
38,718,031
126,887,700
$
$
$
$
59,499,976
28,669,693
38,718,031
126,887,700
$
$
$
$
-
UNCW Corporation II (single member of the LLCs)
UNCW Corporation Oleander One LLC
UNCW Corporation College Station LLC
$
$
$
$
2,395,330
1,382,638
3,777,968
$
$
$
$
2,250,581
1,460,953
3,711,534
$
$
$
$
144,749
(78,315)
66,434
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
$
$
$
$
$
$
$
$
$
$
$
$
49,692
49,692
$
$
$
$
$
$
108,656
2,436
75,885
(400)
141,706
328,283
The Donald R. Watson Foundation, Inc.
$
1,606,396
$
-
$
1,606,396
Total Component Units
$
132,650,039
$
130,648,926
$
2,001,113
Total Associated Entities
$
140,419,830
$
130,830,008
$
9,589,822
Seahawk Investment Strategies, LLC
UNCW Student Aid Association, Inc. (AKA
Seahawk Club)
Total Related Parties
Blended Component Units
158,348
2,436
75,885
(400)
141,706
377,975
Audited Financial information of 06/30/14. (With the exception of Friends of UNCW, which is in progress, we anticipate no change in the
financial information provided in this schedule.)