UNCW Business Affairs - Finance - Associated Entities
FY 12/13
FY 12/13
Assets
Liabilities
FY 12/13
Net
Assets/Position
Related Parties
The Foundation of the University of North Carolina
at Wilmington, Inc. (single member of the LLC)
$
8,864,247
$
4,313,018
$
4,551,229
$
$
1,247,057
10,111,304
$
$
4,313,018
$
$
1,247,057
5,798,286
$
650,886
$
-
$
650,886
The Alumni Association of the University of
North Carolina at Wilmington
$
641,759
$
75
$
641,684
Friends of the University of North Carolina
at Wilmington, Inc.
$
15,722
$
-
$
15,722
$
11,419,671
$
4,313,093
$
7,106,578
UNCW Corporation (single member of the LLCs)
UNCW Corporation Housing I, LLC
UNCW Corporation Housing II, LLC
$
$
$
$
59,923,021
28,999,751
39,046,383
127,969,155
$
$
$
$
59,923,021
28,999,751
39,046,383
127,969,155
$
$
$
$
-
UNCW Corporation II (single member of the LLCs)
UNCW Corporation Oleander One LLC
UNCW Corporation Pepys One LLC
UNCW Corporation College Station LLC
$
$
$
$
$
2,439,437
1,392,505
3,831,942
$
$
$
$
$
2,406,873
1,547,100
3,953,973
$
$
$
$
$
32,564
(154,595)
(122,031)
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
$
$
$
$
$
$
$
$
$
$
$
$
28,986
198
17,944
47,128
$
$
$
$
$
$
45,907
2,165
58,473
(200)
151,593
257,938
The Donald R. Watson Foundation, Inc.
$
1,466,807
$
-
$
1,466,807
Total Component Units
$
133,572,970
$
131,970,256
$
1,602,714
Total Associated Entities
$
144,992,641
$
136,283,349
$
8,709,292
Seahawk Investment Strategies, LLC
UNCW Student Aid Association, Inc. (AKA Seahawk
Club)
Total Related Parties
Component Units
74,893
2,165
58,671
(200)
169,537
305,066
Audited Financial information of 06/30/13. (With the exception of Foundation and Friends of UNCW which will be finalized by 10/31/13.
We anticipate no change in the financial information provided in this schedule.)
UNCW Business Affairs - Finance - Associated Entities
Defined as entities that have been established by the university, board membership controlled by the university; raise money in the name of the university, have as a primary purpose the provision of 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 poses 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 Entity annual expenditures of more than $100,000, Minor Associated Entity annual expenditures of less than $100,000.
Corporation/Foundation
Associated Limited Liability
Companies
The Foundation of the University
of North Carolina at Wilmington,
Inc. (single member)
Organizer
Purpose
University Officers
Fundraising in
Fundraising, Property
Support of UNCW acquisition
Seahawk Investment Strategies, LLC
Activities
Category
Board Structure/
Management Structure
Major Entity
Officers External to UNCW
Cash, real estate, insurance
policies and investments
Student and Faculty managed
Investments
Student Investment Group
Assets
UNCW Student Aid Association,
Inc. (A,K.A. Seahawk Club)
University Officers
Support UNCW
Athletics
Fundraising, selfliquidating projects
Major Entity
Officers External to UNCW
Cash
The Alumni Association of the
University of North Carolina at
Wilmington
University Officers
Support UNCW
Goodwill, Fundraising,
Special Projects
Minor Entity
Officers External to UNCW
Cash, Investments
Friends of the University of North
Carolina at Wilmington Inc.
Marian Rippy, et al.
Support UNCW
Fundraising
Minor Entity
Officers External to UNCW
Cash
UNCW Corporation (single
member of the LLC's)
University Officers
Development of
Debt issued through
UNCW student
Corporation and the
housing, Ground LLC's.
Lease, Operating
Agreement back to
University.
Major Entity
3 Officers Internal to UNCW,
and 3 are External
100% interest in LLC's,
Capital Lease with UNCW,
Debt issued through BBT.
Use Agreement with UNCW
Use Agreement with UNCW
Use Agreement with UNCW
Seahawk Village
Seahawk Landing
Seahawk Crossing
UNCW Corporation Housing I, LLC
UNCW Corporation Housing II, LLC
*UNCW Corporation Housing III, LLC
(Dissolved, debt issued through Corp)
UNCW Corporation II (single
member of the LLC's)
University Officers
Major Entity
4 Officers Internal to UNCW,
100% interest in LLC's,
and 3 are External to operations Management Service
Agreements with UNCW,
Notes with BBT.
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 Pepys One, LLC
Multi-family rental
property
Manager - VCBA
SOLD 04/15/13. 4922 Pepys
Lane, University Arms Apts.,
72 units, 10 bldgs, 6.54 acres
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,
4 voting Officers 3 non voting
Ex Officio - all Internal to
UNCW
Cash
UNCW Research Foundation
(single member of the LLC's)
The Donald R. Watson
Foundation, Inc.
Property
Notes with BBT secured
acquisition,
through the LLC's.
disposition, and
development in
support of UNCW.
Management
Service
Agreements with
UNCW.
University Officers
Supporting
organization for
the development of
IP created at
UNCW.
Major Entity
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 EC Center, Executive
Director Chief of Staff
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 Cash
Technology Officer
Donald Watson
Support UNCW, Provides funds for
Duke Medical and scholarships
St. Johns Episcopal
Church
Minor Entity
3 Officers Internal to UNCW
Operations, and 2 are External
Cash and Investments
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 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.
How many Associated Entities does the University have?
There are 18 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's 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 allows 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 Universities 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 it's 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.