Page 31 - msmannualreport_3_14_17

Message from the Sr. Vice President for FY17 Highlights
Operations and Chief Financial Officer
F. John Case, Ed.D. • In October 2016, the annual financial and compliance audit was presented
and approved by the Board of Trustees, within the required timeframe.
• The annual financial statement and Office of Management and Budget
At Morehouse School of Medicine, the financial and operational results for
Fiscal Year 2016 continued to be strong and contribute to the execution of the (OMB) A-133 audit received a clean (unmodified) opinion on the
MSM strategic plan. Our continued effort to review the operational activities consolidated financial statements for MSM and its affiliates (Morehouse
and create efficiencies while generating new ideas for business opportunities Healthcare) in accordance with generally accepted accounting principles.
highlighted the academic, research and clinical activities this year. The State • MSM recorded operating revenues of $185M, an increase of 26% largely
investment of a one-time grant of $35 million enabled Morehouse School of due to the receipt of a one-time $35M State grant to enhance the
Medicine to think strategically about its commitment to health equity and the education environment for our medical students.
citizens of Georgia and begin a process to enhance the education of our • A net operating margin of 17% highlighted the FY 2016 year. This included
students in primary care and other community endeavors. a write-off of $6.1M in uncollectable accounts receivable and accrued
liabilities.
• Continued growth in the student body resulted in a 9% increase in tuition
As an organization, we continued the emphasis on three themes: people,
process and technology. Each thematic area incorporates the current state of revenue. In addition, MSM continued its goal to increase scholarships for all
our business, the need to implement best practices in all we do, and investing programs, investing an additional $.5M (or 19%).
in our finance and operations for long-term, sustained growth. In FY 2016, we • Contributions to the endowment for MSM increased by $5.1M in FY16 due
implemented a timely balanced budget, created additional metrics and to federal, corporate and individual contributions to fund research,
scorecards to monitor that budget, and started a process to systematically scholarships and other mission activities. This helped offset some of the
enhance the reporting to our Board and our various community constituencies challenges in the portfolio based on market conditions and the economy.
to bring transparency and success in telling the MSM story. • The balance sheet reflected continuous improvements in the following
critical areas – increased cash/accounts receivable, an increase in net assets,
and a decrease in the long-term debt of the organization.
Strengthening the balance sheet and income statement were critical in FY16 as
we look forward to a successful “Road to 100” - growing our 1st year medical
student class to 100 students - in July 2017.