2008 Financial Statements
HESAA Audited Financial Statements – Description of Reporting Entities
Attached are the three separate June 30, 2007 financial reports audited by the Authority’s accounting firm, Mercadien, PC, of each HESAA component unit that was required to issue audited financial statements as of that date under applicable laws and regulations. These reports are described in (1), (2) and (3), below. Also attached are the June 30, 2007 Audited Combined Financial Statements of the NJBEST Trust, which are audited on behalf of the NJBEST Programs by Ernst & Young. They are more fully described in item (4) below.
Amounts reported in these financial statements are “off-system,” meaning they are not recorded on the New Jersey Comprehensive Financial System. However, all funds included or referenced in these financial statements are also included in the consolidated HESAA financial information reported in the Combining Statements of Net Assets and Revenues and Expenses of Non-Major Component Units – Authorities within the New Jersey Comprehensive Annual Financial Report.
The New Jersey Comprehensive Annual Financial Report is published by the State of New Jersey, Department of the Treasury, Office of Management and Budget.
(1) The NJCLASS/FFELP Loan Program
This reporting entity is comprised of the New Jersey College Loans to Assist State Students (“NJCLASS”) Loan Program and the Federal Family Education Loan Program (“FFELP”), as described below.
The NJCLASS Loan Program is a supplemental student loan program initiated by the Authority in September 1991. It offers an alternative source of financial support to students and their parents, spouses, legal guardians, or other relatives in meeting the costs of the student’s education at a degree-granting college or university. Since 1991, the Authority has issued bonds to fund student loans through this program.
FFELP Loan Program
In 2001, the Authority expanded the use of its NJCLASS Program bond proceeds to purchase portfolios of existing FFELP loans, rehabilitated defaulted FFELP loans and to consolidate New Jersey nexus FFELP loans issued by other lenders.
NJCLASS FFELP Loan Programs Financial Statements
(2) Other HESAA Programs and Funds
The funds and accounts included in these financial statements were established by HESAA in accordance with legal, regulatory and operational requirements of its programs, to enable it to fulfill its mission.
Other HESAA Programs and Funds Financial Statements
(3) World Trade Center Scholarship Fund
New Jersey Acting Governor Bennett signed the law which established the New Jersey World Trade Center Scholarship Fund, in the Higher Education Student Assistance Authority. The Act further required that the fund be administered by a board of trustees.
The purpose of the Fund is to award scholarships for the costs of undergraduate study to the dependent children or surviving spouses of persons who were New Jersey residents on September 11, 2001, and who were killed in the terrorist attacks on the United States on September 11, 2001. Support of the Fund consists of annual New Jersey Legislature appropriations from the State of New Jersey’s General Fund; investment earnings of the Fund; and moneys contributed to the Fund by public and private sources. The solicitation and raising of private funds are included in the duties of the Board members.
NJ World Trade Center Scholarship Fund Financial Statements
(4) NJBEST Trust
The NJBEST Trust includes investment portfolios managed by the New Jersey Department of Treasury, Division of Investments, for NJBEST 529 College Savings Plan accounts opened before March 17, 2003, and portfolios managed by Franklin Templeton Investments, which include all accounts opened after this date. Consequently, the financial data for the NJBEST Trust is contained in two separate audited financial reports titled as follows:
New Jersey Better Educational Savings Trust – New Jersey Division of Investment Managed Options
New Jersey Better Educational Savings Trust – Franklin Templeton Managed Investment Options