2015MSMAnnualReportFINAL

Changes in Total Net Morehouse School of Medicine, Inc. and Affiliate
Assets are based on the Consolidated Statements of Activities and Changes in Net Assets
activity presented in the
Consolidated Statement of
Activities and Changes in
Net Assets. Year ended June 30, 2015 2014

The purpose of the Revenues and Other Additions
statement is to present the Tuition and fees $14,878,020 $12,759,978
revenues earned, expenses Student aid (2,662,434) (2,244,933)
incurred, and the operating
margin realized for the
fiscal year end. Tuition and fees, net of student aid 12,215,586 10,515,045
Federal, state, and local government grants and contracts 77,628,473 110,056,499
Private gifts, grants, and contracts 44,066,983 8,408,785
Faculty practice plan 9,229,587 8,422,523
Investment income 2,101,016 10,052,651
Other sources 1,743,312 1,577,588
Net assets released from restrictions - -


Total Revenues and Other Additions 146,984,957 149,033,091


Operating Expenditures
Education and general:
Instruction 55,162,321 51,137,992
Research 26,901,140 28,851,320
Public service 8,753,420 8,289,787
Academic support 7,417,736 5,602,973
Student services 2,538,506 2,208,358
Institutional support 22,262,414 21,698,055
Facilities operations and maintenance 4,900,660 4,876,059
Depreciation 5,018,650 5,010,427
Faculty practice plan 9,012,980 10,550,150

Total Operating Expenditures 141,967,827 138,225,121


Other Losses
Loss on disposition of property and equipment 872,101 -

Total Other Losses 872,101 -


Change in Net Assets 4,145,029 10,807,970

Net Assets, beginning of year 153,460,228 142,652,258


Net Assets, end of year 157,605,257 $153,460,228


See accompanying notes to consolidated financial statements.










Morehouse School of Medicine | Annual Report | 2015 47

The Consolidated Morehouse School of Medicine, Inc. and Affiliate
Statements of Cash Consolidated Statements of Cash Flows
Flows present detailed
information about the cash
activity of the institution
during the year. Year ended June 30, 2015 2014

The cash activity reflects Operating Activities $ $
MSM’s commitment Change in net assets 4,145,029 10,807,970
to making strategic Adjustments to reconcile change in net assets to net
investments in order to
sustain and enhance cash (used in) provided by operating activities:
excellence related to our Depreciation 5,018,650 5,010,427
core mission. Net realized and unrealized loss (gain) on investments 403,600 (8,044,901)
Loss on disposition of property and equipment 872,101 -
The financial statements Write-off of portion of notes receivable 217,367 -
presented in this report are Gifts and grants restricted for long-term investment (7,799,222) (5,209,435)
modified statements issued
under reporting guidelines
established by the Change in operating assets and liabilities:
Governmental Accounting Accounts receivable, net (3,964,839) 6,370,472
Standards Board (GASB.) Pledges receivable, net (2,074,773) (1,232,427)
Patient accounts receivable, net (7,878) 618,260
Other receivables (103,383) 83,303
Other assets 310,851 (339,522)
Accounts payable 4,360,244 (4,077,924)
Accrued expenses and other liabilities (4,126,867) (142,020)
Deferred revenue 97,994 150,530

Net cash (used in) provided by operating activities (2,651,126) 3,994,733


Investing Activities
Loans receivable, net 337,832 221,045
Proceeds from note receivable 2,537,927 1,056,698
Purchases of investments (51,084,260) (39,861,141)
Proceeds from sale of investments 46,475,021 36,723,066
Purchases of property and equipment (3,032,403) (2,663,559)

Net cash used in investing activities (4,765,883) (4,523,891)


Cash Flows from Financing Activities
Repayment of borrowings (1,948,333) (790,000)
Repayment of capital leases (73,482) -
Gifts and grants restricted for long-term investment 7,799,222 5,209,435

Net cash provided by financing activities 5,777,407 4,419,435


Net (Decrease) Increase in Cash and Cash Equivalents (1,639,602) 3,890,277

Cash and Cash Equivalents, beginning of year 7,513,156 3,622,879


Cash and Cash Equivalents, end of year 5,873,554 7,513,156







Morehouse School of Medicine | Annual Report | 2015 48

The Consolidated Balance Morehouse School of Medicine, Inc. and Affiliate
Sheets present the assets, Consolidated Balance Sheets
liabilities, and net position
of MSM as of the end of the
fiscal year.
June 30, 2015 2014
The purpose of the
Consolidated Balance Assets $ $
Sheets is to present a Cash and cash equivalents 5,873,554 7,513,156
financial condition Accounts receivable, net 18,153,892 14,189,053
snapshot of Morehouse
School of Medicine as of Pledges receivable, net 4,025,950 1,951,177
June 30, 2015. Loans receivable, net of allowance for doubtful
accounts of $160,918 and $178,400, respectively 1,434,270 1,772,102
The Consolidated Balance Patient accounts receivable, net 740,986 733,108
Sheets are prepared Other receivables 243,023 139,640
under the accrual basis Investments, at fair value 96,081,433 91,875,794
of accounting, which
requires revenue and Note receivable - 2,755,294
asset recognition when Other assets 283,252 594,103
the service is provided, Property and equipment, net 57,150,088 60,008,436
and expense and liability
recognition when goods Total Assets 183,986,448 181,531,863
or services are rendered
despite when cash is
actually exchanged. Liabilities and Net Assets

Liabilities
Accounts payable 7,501,388 3,141,144
Accrued expenses and other liabilities 4,166,768 8,293,635
Deferred revenue 248,524 150,530
Capital leases payable 239,573 313,055
Long-term debt payable 12,674,667 14,623,000
Government advances for student loans 1,550,271 1,550,271

Total Liabilities 26,381,191 28,071,635

Net Assets
Unrestricted 47,948,867 49,733,096
Temporarily restricted 14,277,865 16,147,829
Permanently restricted 95,378,525 87,579,303

Total Net Assets 157,605,257 153,460,228


Total Liabilities and Net Assets 183,986,448 181,531,863

See accompanying notes to consolidated financial statements.


















Morehouse School of Medicine | Annual Report | 2015 49

The charts below detail the income and spending patterns of Morehouse School of Medicine in
FY 2015. MSM continues its strategy to increase class size in all programs, resulting in a positive
impact on annual revenue increases. As a result of our commitment to our defined strategies, we
continue to grow our research revenue, state, local and private gifts and grants in all educational
and research departments and centers. Salary and wages contribute to 67% ($95.8M) of the
organizational expenses, while other operating expenditures total $46.2M. Our goal over the
next five years is to review all operations and create increased efficiencies, which will enable the
organization to invest in its mission areas – education, research and clinical services.





Total Assets Total Liabilities



15.8% Accrued Expenses &
Other Liabilities
Investments at Fair Value 52.2%
28.4% Accounts Payable
Cash & Cash Equivalents 3.2%
Accounts Receivable 9.9%
Government Advances
5.9% for Student Loans
Property & Equipment 31.1%
0.9% Deferred Revenue
48.0% Long Term Debt Payable





FY15 - Revenue FY15 - Expenditures


Federal, State & $77,628,473
Local Government $26,901,140 Research
Student Aid $(2,662,434) $8,753,420 Public Service

Tuition & Fees $14,878,020
$7,417,736 Academic Suport
Other Sources $1,743,312 $2,538,506 Student Services
$22,262,414 Institutional Support
Investment Income $2,101,016
$4,900,660 Facilities Operations
Faculty Practice Plan $9,229,587 & Maintenance
Private Gifts, $44,066,983 $9,012,980 Faculty Practice Plan
Grants & $5,018,650 Depreciation
Contracts
$55,162,321 Instruction















Morehouse School of Medicine | Annual Report | 2015 50

MSM Faculty & Alumni






Visionary Educators, MSM Alumni Community
Key Influencers & Leaders Advances the Mission
A relatively young institution, MSM’s legacy of Since 1975, our 1,600+ alumni represent the institution on a global
national leadership is unprecedented. Among our platform as conscientious physicians, researchers, and health care
notable faculty and alumni are two U.S. Surgeon professionals. They are unquestionably among the nation’s best that
Generals, one National Secretary of Health & Human continue to make meaningful contributions in clinical care, medical
Services, and seven members of the distinguished education, government service, health care, and research. Our alumni
National Academy of Medicine. community holds steadfast to the rich mission and traditions of this
great institution and are the driving force behind MSM’s #1 social
The exemplary talents of an outstanding faculty mission rank.
that has earned a national reputation for leadership
and innovative thinking fuel MSM’s engine. Our Many of our alumni are prominent leaders in their respective
256 faculty members are visionary educators who communities and are committed to serving the underserved. In 2015,
tirelessly prepare and inspire our most important five distinguished alumni were recognized for their achievements
asset: our students. In addition to the role of teacher in “living the MSM mission” and were presented with Outstanding
and mentor, they are leaders of medical associations Service Awards at the MSM National Alumni Association’s Alumni
and highly sought-after key influencers in all facets of (MSMNAA) Reunion, a first for Morehouse School of Medicine. This
health care. elite group included:


Our faculty epitomizes excellence in biomedical W. Steen James, M.D. ’83 A lifetime MSMNAA member and past
science, education, policy, and patient care and president was recognized for her steadfast commitment to MSM and
continues to receive prestigious recognition as such. training MSM medical students and residents as they rotate through
her clinic.
The scope and breadth of our faculty Woodrow W. McWilliams III, M.D. ’01 Recognized for his ongoing
accomplishments are outstanding. Many faculty service to MSM, the alumni, and medical community at large and his
members and department chairs currently serve service as Trustee.
at the national & regional levels of medical
organizations including: American Public Health Keri L. Norris, Ph.D., M.P.H. ’04 Honored for her extensive
Association; Advisory Council of the NINDS; experience in eliminating health disparities in vulnerable populations
American Heart Association; NIH BRAIN Initiative in the U.S.
working group; NIH’s National Center for Advancing Bonnie Simpson-Mason, M.D. ’96 American Academy of Orthopaedic
Translational Science collaboration and engagement Surgeons’ 2015 Diversity Award recipient who was recognized for
domain task force.
outstanding commitment to recruiting and supporting women
and minority medical students interested in pursuing careers in
In 2015, MSM faculty members presented research orthopedics.
at national conferences; published manuscripts in
peer-reviewed journals; delivered lectures at other Kevin B. Williams, Ph.D., M.P.H. ’98 Honored for his advocacy for
institutions and scientific meetings; and conducted persons with disabilities and research focused on African American
interviews for various national media outlets on students living with learning disabilities and the health and education
diverse health topics. outcomes of those students.



“As alumni, we stand with pride as we live out the vision, mission and
charge set forth by the founders of this historic institution.”
Kevin Thomas, M.D., ’92, President, MSM National Alumni Association & Trustee






Morehouse School of Medicine | Annual Report | 2015 51

Executive Leadership Team





Valerie Montgomery Rice, M.D. Bennie Harris, Ph.D.
President and Dean Senior Vice President, Institutional Advancement
and Marketing & Communications
Sandra Harris-Hooker, Ph.D.
Vice President and Executive Vice Dean Almeta Cooper, J.D.
Research and Academic Administration Senior Vice President, General Counsel &
Corporate Secretary
Derrick Beech, M.D.
Senior Associate Dean for Clinical Affairs Daniel Dawes, J.D.
Executive Director, Government Relations,
Martha Elks, M.D., Ph.D. Policy & External Affairs
Senior Associate Dean for Educational Affairs
Desiree Ramirez, C.H.C.
F. John Case, Ed.D. Chief Compliance Officer
Senior Vice President, Finance and Operations
and Chief Financial Officer David Hefner, Ed.D.
Chief of Staff
Vice President, Strategic Planning
























































Morehouse School of Medicine | Annual Report | 2015 52

720 Westview Drive, SW
Atlanta, GA 30310-1495

www.msm.edu



Published internally by
Morehouse School of Medicine
Office of Institutional Advancement and
Marketing & Communications.
©2016.

EDITORIAL DIRECTION
Pamela Simmons
Allison D. Mitchell

DESIGN
Christina Nkirote Mugambi

WRITING
Jennifer Jiles

www.msm.edu












720 Westview Drive, SW
Atlanta, GA 30310-1495 MOREHOUSE













Social Mission SCHOOL


OF





Public Health Community-Focused
MEDICINE |


Health Equity Opportunity Academically Diverse ADVANCING THE


Research Enterprise Compassion Rooted in Tradition
Innovation Education MISSION |







High-Tech Health Transformative Medicine ANNUAL

Cutting-Edge Rich Heritage REPORT 2015






Healthy Outcomes Patient-Centered Care Biomedical Sciences

Embracing Change Discovery Scholarship

Primary Care