SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
MediumBullet Attach to Form 990 or 990-EZ.
MediumBullet Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.
OMB No. 1545-0047
2014
Open to Public
Inspection
Name of the organization
HULT INTERNATIONAL BUSINESS SCHOOL INC
 
Employer identification number

04-3348440
Return Reference Explanation
FORM 990, PART VI, SECTION A, LINE 2 EDWARD HULT AND PHILIP HULT ARE BROTHERS AND ARE MEMBERS OF THE BOARD OF DIRECTORS.
FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE ANY COMMITTEES WITH THE AUTHORITY TO ACT ON BEHALF OF THE BOARD OF DIRECTORS.
FORM 990, PART VI, SECTION B, LINE 11 THE ORGANIZATION'S PRESIDENT, TREASURER AND OTHER MEMBERS OF THE BOARD OF DIRECTORS REVIEW A DRAFT OF THE FORM 990, WHICH IS PREPARED BY THE ORGANIZATION'S INDEPENDENT ACCOUNTANTS. ANY RESULTANT COMMENTS AND CHANGES ARE DISCUSSED WITH THE INDEPENDENT ACCOUNTANTS AND IF APPROPRIATE, INCORPORATED INTO THE FINAL VERSION OF FORM 990 PRIOR TO ITS FILING WITH THE IRS.
FORM 990, PART VI, SECTION B, LINE 12C ALL DIRECTORS, OFFICERS AND EMPLOYEES ARE PROVIDED WITH COPIES OF THE CONFLICT OF INTEREST POLICY. DIRECTORS AND OFFICERS ARE REQUIRED TO DISCLOSE CONFLICTS OF INTEREST AT BOARD MEETINGS. EMPLOYEES ARE REQUIRED TO DISCLOSE CONFLICTS OF INTEREST DURING THEIR ANNUAL REVIEW.
FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR TOP OFFICIALS IS BASED UPON APPROVAL BY THE BOARD OF DIRECTORS. FOR OTHER KEY EMPLOYEES AND OFFICERS, COMPENSATION IS BASED ON A FIXED SUM AGREED UPON AT THE TIME OF EMPLOYMENT. THIS SUM REFLECTS AN EMPLOYEE'S LEVEL OF EXPERIENCE AND EXPERTISE WHEN (S)HE JOINS THE ORGANIZATION. SALARIES WITHIN THE ORGANIZATION ARE STRICTLY CONFIDENTIAL AND NEGOTIATED INDIVIDUALLY.
FORM 990, PART VI, SECTION C, LINE 19 THE SCHOOL'S AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO THE GENERAL PUBLIC VIA THE MASSACHUSETTS ATTORNEY GENERAL'S OFFICES AND UPON REQUEST. THE SCHOOL'S GOVERNING DOCUMENTS AND CONFLICTS OF INTEREST POLICY ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST.
FORM 990, PART XII, QUESTION 2C THE ENTIRE BOARD ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE FOUNDATION'S ANNUAL AUDIT AND THE SELECTION OF THE FOUNDATION'S AUDITORS.
FORM 990, OTHER RELEVANT INFORMATION AND DISCLOSURES THE SCHOOL'S PRINCIPAL REVENUE SOURCE IS INSTITUTIONAL FEES EARNED FROM ITS SERVICES AGREEMENT WITH HULT INTERNATIONAL BUSINESS SCHOOL LTD., A SWISS CORPORATION (THE "RECRUITER"), THAT SUPPORTS THE SCHOOL IN MARKETING ITS PROGRAMS TO PROSPECTIVE STUDENTS FROM AROUND THE WORLD. THE RECRUITER PAYS THE SCHOOL INSTITUTIONAL FEES TO PROVIDE EDUCATIONAL, ACADEMIC AND ADMINISTRATIVE SERVICES TO THE STUDENTS IT HAS RECRUITED. INSTITUTIONAL FEES FROM THE RECRUITER TOTALED $42,509,680 FOR THE YEAR ENDED SEPTEMBER 30, 2015. THE RECRUITER INCURRED EXPENSES ON BEHALF OF OR MADE NON-INTEREST BEARING ADVANCES TO THE SCHOOL IN THE NORMAL COURSE OF OPERATIONS. AT SEPTEMBER 30, 2015, THE SCHOOL OWED THE RECRUITER $436,045. THE SCHOOL HAS AN AGREEMENT WITH EF INSTITUTE FOR CULTURAL EXCHANGE, INC. ("EF INSTITUTE"), WHEREBY EF INSTITUTE PROVIDES CERTAIN GENERAL AND ADMINISTRATIVE SERVICES TO THE SCHOOL AT OR BELOW FAIR MARKET VALUE. THESE SERVICES INCLUDE PAYROLL PROCESSING, ADMINISTRATION OF THE SCHOOL'S HEALTH INSURANCE PLAN AND OTHER BASIC ADMINISTRATIVE SERVICES. THE AGREEMENT EXPIRED SEPTEMBER 30, 2014 AND WAS RENEWED THROUGH SEPTEMBER 30, 2015. THE SCHOOL WAS CHARGED $1,471,174 BY EF INSTITUTE FOR THESE SERVICES DURING THE YEAR ENDED SEPTEMBER 30, 2015. DURING THE YEAR ENDED SEPTEMBER 30, 2015, THE SCHOOL INCURRED EXPENSES OF $3,605,213 RELATED TO SERVICES THAT IT RECIEVED FROM HULT BUSINESS CONSULTING SERVICES LTD. IN THE UNITED KINGDOM. AT SEPTEMBER 30, 2015, THE SCHOOL OWED HULT BUSINESS CONSULTING SERVICES LTD. $165,709. DURING THE YEAR ENDED SEPTEMBER 30, 2015, THE SCHOOL ENTERED INTO A COOPERATION AGREEMENT WITH ASHRIDGE TRUST, ("ASHRIDGE"), A CHARITABLE INSTITUTION BASED IN THE UNITED KINGDOM. THE SCHOOL AND ASHRIDGE WORK IN COOPERATION WITH ONE ANOTHER WITH RESPECT TO CERTAIN OF THEIR EDUCATIONAL OFFERINGS, AND HAVE AGREED TO PRESENT THEMSELVES UNDER A COMMON BRAND. ASHRIDGE INCURRED COSTS ON BEHALF OF THE SCHOOL TOTALING $245,720 DURING THE YEAR ENDED SEPTEMBER 30, 2015 THAT REMAINED OUTSTANDING AS OF SEPTEMBER 30, 2015. THE SCHOOL HAS HAD A LEASE AGREEMENT FOR CLASSROOM AND ADMINISTRATIVE SPACE IN CAMBRIDGE, MA WITH EFEKTA SCHOOLS, INC. ("EFEKTA") SINCE 2006. THE LEASE AGREEMENT WAS AMENDED AND EXTENDED ON JUNE 1, 2014 TO ALLOW THE SCHOOL TO ADD THREE ADDITIONAL NEWLY RENOVATED FLOORS TO THE LEASE. DUE TO THE RENOVATIONS, THERE WAS A REBATE ON THE RENT DURING FY 2014. RENT EXPENSE UNDER THE AGREEMENT TOTALED $3,638,933 FOR THE YEAR ENDED SEPTEMBER 30, 2015. THE TERMS OF THE LEASE HAVE BEEN CONFIRMED TO BE BELOW FAIR MARKET VALUE. EFEKTA HAS ALSO SUPPORTED THE SCHOOL IN SECURING CLASSROOM SPACE AND STUDENT DORMITORIES FROM LANDLORDS IN CALIFORNIA. DUE TO ITS STRONG FINANCIAL POSITION, EFEKTA WAS ABLE TO NEGOTIATE THE CONTRACTS AND ACTS AS AN INTERMEDIARY BETWEEN THE CALIFORNIA LANDLORDS AND THE SCHOOL. EFEKTA PASSES ON THE COSTS FROM THE CALIFORNIA LANDLORDS WITHOUT CHARGING ANY COSTS FOR ITS SUPPORT TO THE SCHOOL. THE SCHOOL ENTERED INTO A SUBLEASE AGREEMENT WITH EFEKTA TO LEASE CLASSROOM SPACE IN SAN FRANCISCO, CALIFORNIA. RENT EXPENSE FOR THE SAN FRANCISCO CAMPUS WITH EFEKTA TOTALED $4,622,542 FOR THE YEAR ENDED SEPTEMBER 30, 2015. IN ADDITION TO THE BASE RENT PAID FOR ITS SAN FRANCISCO CAMPUS, THE SCHOOL PAYS EFEKTA ADDITIONAL AMOUNTS TO COVER THE COST OF TENANT IMPROVEMENTS MADE BY EFEKTA ON THE SCHOOL'S BEHALF. AMOUNTS PAID FOR TENANT IMPROVEMENTS TOTALED $ 1,474,827 OR THE YEAR ENDED SEPTEMBER 30, 2015. TENANT IMPROVEMENT PAYMENTS ARE SCHEDULED TO BE REQUIRED THROUGH 2022. THE SCHOOL IS REQUIRED TO MAINTAIN A LETTER OF CREDIT WITH A BANK TOTALING $475,000. THE LETTER OF CREDIT EXPIRES SEPTEMBER 1, 2016, AT WHICH TIME MANAGEMENT EXPECTS TO RENEW THE LETTER OF CREDIT FOR ANOTHER YEAR. ONE OF THE SCHOOL'S DIRECTORS IS EMPLOYED BY A LAW FIRM THAT PERIODICALLY PROVIDES LEGAL SERVICES TO THE SCHOOL. DURING THE YEAR ENDED SEPTEMBER 30, 2015, THE SCHOOL INCURRED LEGAL FEES AND EXPENSES TOTALING $ 286,744 FROM THE LAW FIRM. NONE OF THOSE FEES RELATE TO THE BOARD MEMBER'S SERVICE AS A DIRECTOR.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2014

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