2018-05-01T17:39:06-05:00 2017-06-30 390859910 Baker Tilly Virchow Krause LLP 225 S 6th St 2300 Minneapolis MN 55402 990 2016-07-01 951644593 Marshall B Ketchum University MARS 7148707226 2575 Yorba Linda Blvd Fullerton CA 92831 shawn k mccown mba cpa VP Admin & Finance, CFO 7144497466 2018-04-28 1 Troy Marine CPA P00187863 6128764500 2018-04-27 98.144.129.138 2018-04-28 14:48:46 CD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 FEC92D491E609460E4EADF77DD98F24500A03922 2016 2021-01-29 14:40:06Z dr KEVIN ALEXANDER 2575 Yorba Linda Blvd Fullerton CA 92831 34742607 0 X www.ketchum.edu X 1904 CA The Mission of Marshall B. Ketchum University is to educate caring, inspired health care professionals who are prepared to deliver collaborative, patient-centric health care in an interprofessional environment. MBKU is home to the Southern California College of Optometry, the School of PA Studies and College of Pharmacy. The Southern California College of Optometry confers a Doctor of Optometry and a Master of Science in Vision Science degree. The School of PA Studies awards a Master of Medical Sciences degree. The College of Pharmacy welcomed its first class in the fall of 2017 and will award a Doctor of Pharmacy degree. MBKU owns and operates two eye and vision care centers: the University Eye Center at Ketchum Health Anaheim and the University Eye Center at Ketchum Health Los Angeles. 20 19 262 20 89615 49580 6214371 3659019 21926550 26410988 322465 2418286 915136 629562 29378522 33117855 305450 288105 0 0 19769027 20348943 5950 3500 608011 7993807 11437202 28074234 32077750 1304288 1040105 95077081 95767916 52624227 51278601 42452854 44489315 X To educate caring, inspired health care professionals who are prepared to deliver collaborative, patient-centric health care in an interprofessional environment. 0 0 13808522 288105 22571973 Graduate Education: The Mission of Marshall B. Ketchum University is to educate caring, inspired health care professionals who are prepared to deliver collaborative, patient-centric health care in an interprofessional environment, and the curriculum has been established to achieve this goal. In addition to the rigorous academic and clinical curriculum on campus, all professional students rotate through several external clinical sites to broaden and diversify their learning experiences to prepare them for careers in health care. In the fall of 2016, our total enrollment was 544 full-time health professional students representing Optometry (399), Physician Assistant (PA) (101), Pharmacy (43), and Master of Vision Science (4). In November of 2016, MBKU conferred 28 Medical Master Science Degrees and PA certificates. In May of 2017, MBKU conferred 98 Doctor of Optometry Degrees and two Master of Science Degrees. Admissions process for fall 2016 enrollment are reported below. At the outset of the application period, the admissions policy committees establish high standards for GPAs, application test scores and academic index point minimums providing thresholds for admissions personnel to carefully screen and select the most qualified applicants to interview.Program: OptometryVerified applications* - 641Interviews conducted - 222Matriculated class - 100Program: Physician AssistantVerified applications* - 1,131Interviews conducted - 177Matriculated class - 40Program: PharmacyVerified applications* - 204Interviews conducted - 107Matriculated class - 43*Verified applications through the centralized application system (i.e., OptomCAS, CASPA, and PharmCAS). 6473864 4033785 CLINICAL EDUCATION VISION/PATIENT CARE: AFFILIATED WITH THE EDUCATION PROGRAM, THE UNIVERSITY OPERATES FULL-SERVICE VISION CLINICS ON ITS ORANGE COUNTY CAMPUS AND IN DOWNTOWN LOS ANGELES, PLUS 4 LIMITED-HOUR COMMUNITY CLINICS IN ORANGE COUNTY AND LOS ANGELES, MANY LOCATED IN LOW-INCOME AREAS. THE CLINICS TOGETHER SERVED 28,563 UNIQUE ENCOUNTERS. COMPREHENSIVE VISION SERVICES INCLUDE PRIMARY EYE CARE AND SPECIALIZED PATIENT SERVICES: BASIC VISION EXAMINATION; PEDIATRIC VISION SCREENING, VISION CARE AND VISION THERAPY; OCULAR DISEASE DIAGNOSIS AND TREATMENT AND OPHTHALMOLOGY CONSULTATION; CONTACT LENSES AND PROSTHETICS FITTING; LOW VISION REHABILITATION AND EYEWEAR AND OPTICAL DISPENSING. THE VISION CLINICS PROVIDED $373,154 IN PUBLIC SUPPORT THROUGH DISCOUNTS AND FEE WAIVERS. ALSO, 5,032 PATIENTS WERE SERVED THROUGH OUR 8 SCHOOL SCREENING PROGRAMS. 1446005 RESEARCH: THE UNIVERSITY SUPPORTS THE RESEARCH PROGRAM BY PROVIDING PHYSICAL AND FINANCIAL RESOURCES TO FACULTY WHO ENGAGE IN RESEARCH. EXTERNAL NATIONAL INSTITUTE OF HEALTH (NIH) / NATIONAL EYE INSTITUTE (NEI) GRANTS HAVE INCLUDED SEVERAL MULTI-CENTER STUDIES COORDINATED BY THE PEDIATRIC EYE DISEASE INVESTIGATOR GROUP (E.G. CITT-ART, ATS-20, and IXT-5). IN ADDITION, INDUSTRY CONTRACTS HAVE BEEN AWARDED TO FACULTY RESEARCHERS BY OPHTHALMIC AND PHARMACEUTICAL COMPANIES INCLUDING ALLERGAN, ALCON, JOHNSON AND JOHNSON VISION CARE AND TOPCON. FACULTY MEMBERS HAVE ALSO ACTIVELY PARTICIPATED IN COLLABORATIVE RESEARCH STUDIES OF DRY EYE/OCULAR SURFACE DISEASE, MEIBOMAIN GLAND DYSFUNCTION AND CONTACT LENS DISCOMFORT, AND THE EFFECT OF DIABETES ON RETINAL FUNCTION. RESEARCH ACTIVITIES ARE INTEGRAL TO THE MASTER OF SCIENCE IN VISION SCIENCE GRADUATE PROGRAM WHICH HAS CONTINUED TO EXPAND WITH A TOTAL OF 9 COMPLETED AND 7 ENROLLED STUDENTS. 21728391 1 1 0 0 0 0 0 1 0 1 1 0 0 0 1 1 0 1 1 0 1 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 107 0 1 262 1 1 1 0 0 0 0 1 1 0 0 0 0 X 20 19 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X Shawn K Mccown 7144637540 5460 E La Palma Ave Anaheim CA 92807 Jerome Hunter Chair 2.00 X 0 0 0 Carol Najera Chair Elect 2.00 X 0 0 0 Glenda Secor Past Chair 2.00 X 0 0 0 Rod Tahran Secretary/Treasurer 2.00 X 0 0 0 Charles Luu Trustee 2.00 X 0 0 0 Daniel May Trustee 2.00 X 0 0 0 Dawn Miller Trustee 2.00 X 0 0 0 Duncan Johnson Trustee 2.00 X 0 0 0 Cindy Blancq Trustee 2.00 X 0 0 0 Gaye Breyman Trustee 2.00 X 0 0 0 Gene Calkins Trustee 2.00 X 0 0 0 Lynn Gabriel Trustee 2.00 X 0 0 0 David Gibson Trustee 2.00 X 0 0 0 Frances Hunter Trustee 2.00 X 0 0 0 Joseph Mallinger Trustee 2.00 X 0 0 0 Morris Applebaum Trustee 2.00 X 0 0 0 Richard Jones Trustee 2.00 X 0 0 0 Akio Kanai Trustee 2.00 X 0 0 0 Richard Price II JD Trustee 2.00 X 0 0 0 Robert Kemp Trustee 2.00 X 0 0 0 Warren Harvard Low Trustee 2.00 X 0 0 0 Kevin Alexander President 40.00 2.00 X 319855 0 136370 Shawn McCown CFO 40.00 2.00 X 197759 0 45429 Julie Schornack Senior VP & Chief of Staff 40.00 0.00 X 233576 0 44324 Stanley Woo Dean of Optometry 40.00 0.00 X 227116 0 56894 Arjun Dutta Assoc Dean of Pharmacy 40.00 0.00 X 190448 0 35332 Judy Ortiz Dean of Health Sciences 40.00 0.00 X 191758 0 47769 Edward Fisher Dean of Pharmacy 40.00 0.00 X 273186 0 43917 Gail Deutsch VP of Human Resources 40.00 0.00 X 153765 0 60623 1787463 0 470658 61 0 1 0 Snyder Langston LP 17962 Cowan Irvine CA 92614 Construction - General Contractor 9790522 Meridian Sports Club Fullerton LLC 1101 Fifth Ave Suite 205 San Rafael CA 94901 Fitness Facility: Parking structure rent 124500 PPCN Investment LLC 17528 Rowland Street City of Industry CA 91748 Lessor for rental located at 2501 E. Cha 119870 3 51715 1064552 420172 2122580 66738 3659019 tuition and fees 611600 22145549 22145549 eye care centers 621300 4033785 4033785 continuing education 611430 231654 231654 26410988 510340 510340 467215 151567 315648 315648 315648 2589763 681817 1907946 1907946 1907946 36155 51715 66804 -30649 -30649 832583 724564 108019 79102 28917 parking fees 812930 115668 115668 Advertising 541800 60698 60698 MISCELLANEOUS 900099 60178 60178 236544 33117855 26605758 89615 2763463 288105 288105 914785 914785 15169537 11357080 3573484 238973 1365255 1022133 321614 21508 1820344 1268791 481987 69566 1079022 766899 295986 16137 4928 4928 116488 9375 107113 100575 100575 3500 3500 3084 3084 1216344 655755 507434 53155 275175 8219 265886 1070 1794507 1066512 575735 152260 352774 102453 250321 2082220 1860553 195067 26600 151351 121499 20973 8879 339139 123286 199490 16363 1317000 1317000 2373101 2001629 371472 239342 239342 eye care clinic materia 973560 973560 Clinic charges paid by 85794 85794 UBIT 11820 11820 32077750 21728391 9741348 608011 3084721 2675506 10176137 8425874 628987 343583 624394 739947 8729379 8522404 235316 252631 404293 333348 80302054 29721436 48437384 50580618 18090491 20070034 2537154 2103158 226926 2128825 1493887 95077081 95767916 4991592 4121931 2406272 2325700 35922750 35476750 9303613 9354220 52624227 51278601 X 25946092 27638848 7303041 7438572 9203721 9411895 42452854 44489315 95077081 95767916 X 1040105 1014510 -18154 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1466295 X X 0 19679573 2817149 1400084 261937 23634869 20336981 322891 -190907 272951 516441 19679573 20278302 97613 824582 268250 595266 20336981 19451132 79196 2819202 255797 495000 1320431 20278302 22194032 23185 2974510 255665 1413748 4071182 19451132 0.65000 0.19000 0.16000 0 0 6771257 6771257 53947368 18707226 35240142 16627241 11014210 5613031 2956188 2956188 50580618 federal advances for student loans 8351242 annuities payable 1002978 9354220 X 43738481 1014510 9943000 924781 11882291 31856190 1261665 1261665 33117855 41702020 9943000 942935 10885935 30816085 1261665 1261665 32077750 Part III, Line 4: The library is an essential function of the educational process. Part V, Line 4: THE UNIVERSITY HAS UTILIZED INVESTMENT AND SPENDING POLICIES FOR ENDOWMENT ASSETS THAT ATTEMPT TO PROVIDE A PREDICTABLE STREAM OF FUNDING TO PROGRAMS SUPPORTED BY ITS ENDOWMENT WHILE SEEKING TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS. AS A RESULT, THE ENDOWMENT ASSETS ARE INVESTED IN A MANNER THAT IS INTENDED TO PRODUCE RESULTS THAT, OVER THE LONG-TERM ALLOW IT TO GROW AT A RATE EXCEEDING EXPECTED INFLATION. THIS IS CONSISTENT WITH THE UNIVERSITY'S OBJECTIVE TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS HELD IN PERPETUITY, AS WELL AS, TO PROVIDE ADDITIONAL REAL GROWTH THROUGH NEW GIFTS AND INVESTMENT RETURN. Part X, Line 2: THE INTERNAL REVENUE SERVICE HAS DETERMINED THAT THE UNIVERSITY IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. Accordingly, the University is not subject to federal income taxes except to the extent it derives income from certain activities not substantially related to its tax-exempt purpose (unrelated business trade or business activities). The University is also exempt from state income taxes. The University follows the accounting standards for contingencies in evaluating uncertain tax positions. This guidance prescribes recognition threshold principles for the financial statement recognition of tax positions taken or expected to be taken on a tax return that are not certain to be realized. No liability has been recognized by the University for uncertain tax positions as of June 30, 2017 and 2016. The University's tax returns are subject to review and examination by federal and state authorities. Part XI, Line 2d - Other Adjustments: direct Fundraising expenses 66,804. Direct Rental Expenses 151,567. change in value of annuities -18,154. Cost of Goods Sold 724,564. Part XI, Line 4b - Other Adjustments: eye care center expenses 973,560. tuition discounts 288,105. Part XII, Line 2d - Other Adjustments: direct rental expenses 151,567. Direct Fundraising Expenses 66,804. COST OF GOODS SOLD 724,564. Part XII, Line 4b - Other Adjustments: tuition discounts 288,105. EYE CARE EXPENSES 973,560. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Schedule E, Part I, Line 3 MBKU customarily draws a substantial percentage of its students nationwide, and follows a racially nondiscriminatory policy as to students. So we have satisfied the publicity requirement by complying with section 4.02 Rev. Proc. 75-50, 1975-2 C.B. 587. Schedule E, Part I, Line 6 MARSHALL B. KETCHUM UNIVERSITY RECEIVES AID TO ASSIST STUDENTS WITH TUITION, LIVING EXPENSES, AND BOOKS AND MATERIALS Central America and the Caribbean - Antigua & Barbuda, Aruba, Bahamas, 0 0 INVESTMENT 1580724 0 0 0 0 0 0 1580724 0 1580724 0 0 0 1 0 0 gala 87870 51715 36155 4294 10355 17227 3580 31348 87870 51715 36155 4294 10355 17227 3580 31348 66804 -30649 1 PRIVATE SCHOLARSHIPS 135 288105 Part I, Line 2: Grants and Financial Aid are awarded to students. These funds are then used for tuition and other expenses related to education (books, lab equipment, etc). Funds are generally not actually released to the students, but are used to offset tuition costs by the financial aid office. Part III, Column C: Of this amount, $29,750 are for awards that are released directly to students. X X 1 1 X X X X X X 0 1 0 0 0 0 0 0 0 Kevin Alexander President 304431 0 0 0 15424 0 74276 0 62094 0 456225 0 0 0 Shawn McCown CFO 196383 0 0 0 1376 0 18075 0 27354 0 243188 0 0 0 Julie Schornack Senior VP & Chief of Staff 232160 0 0 0 1416 0 18116 0 26208 0 277900 0 0 0 Stanley Woo Dean of Optometry 225836 0 0 0 1280 0 21619 0 35275 0 284010 0 0 0 Arjun Dutta Assoc Dean of Pharmacy 189428 0 0 0 1020 0 17625 0 17707 0 225780 0 0 0 Judy Ortiz Dean of Health Sciences 190645 0 0 0 1113 0 25672 0 22097 0 239527 0 0 0 Edward Fisher Dean of Pharmacy 265003 0 6556 0 1627 0 23947 0 19970 0 317103 0 0 0 Gail Deutsch VP of Human Resources 152865 0 0 0 900 0 15049 0 45574 0 214388 0 0 0 Part I, Line 1a AS A CONDITION OF EMPLOYMENT, THE MBKU PRESIDENT LIVES IN A HOME OWNED BY THE UNIVERSITY AT NO COST. THE UNIVERSITY PAYS FOR UTILITIES AND MAINTENANCE OF THE GROUNDS. THE HOUSE SERVES AS A VENUE FOR MANY UNIVERSITY FUNCTIONS AND EVENTS AND HAS AN OFFICE FOR THE USE OF THE PRESIDENT AFTER REGULAR WORK HOURS AND WEEKENDS. THE VALUE OF THE HOUSING PROVIDED TO THE PRESIDENT IS $44,114 AND IS INCLUDED IN THE COMPENSATION INFORMATION PRESENTED IN PART VII OF THE FORM 990 AND IN SCHEDULE J. The University provided performance based bonus to one employee during the 2016 tax year. The bonus was specified as a fixed amount, after tax withholdings and other deductions. The full amounts, before tax withholdings and other deductions, were treated as taxable compensation to the employee. Part I, Line 4b The President of the University, Kevin Alexander, participates in a supplemental nonqualified retirement plan. There was an accrual amount of $50,426 related to this plan in the calendar year 2016. A City of Fullerton Public Financing Authority Tax-Exempt Bond 956000711 noneavail 2015-01-23 25536000 See Part VI 0 0 0 A 455000 25536000 512000 18696851 6327149 2016 0 1 1 1 A 0 0 0 0 0 0 0 A 0 1 0 0 0 0 0 0 0 A 0 Schedule K, Part I, Description of purpose: Refund 6/2/2004 prior issue bonds $6,327,149; Finance purchase, renovation, and equip of educational facility $18,696,851. X Marchon Eyewear, Inc. 1 60738 FMV X Digital Business Solutions 1 6000 FMV 0 1 1 Part I, Line 32b: Gala auctioneer; Broker if stocks are donated. Form 990, Part VI, Section B, line 11b THE BOARD OF TRUSTEES FINANCE COMMITTEE REVIEWS AND APPROVES THE FORM 990. PRIOR TO SUBMITTING TO IRS, THE FINAL FORM 990 IS SENT TO THE ENTIRE BOARD OF TRUSTEES. Form 990, Part VI, Section B, line 12c A CONFLICT OF INTEREST QUESTIONNAIRE IS DISTRIBUTED TO THE BOARD OF DIRECTORS TO BE COMPLETED ANNUALLY. UPON THE DISCLOSURE OF ANY CONFLICT OF INTEREST, THE MATTER IS DISCUSSED WITH THE CHAIRMAN OF THE BOARD. Form 990, Part VI, Section B, line 15 UNIVERSITY PRESIDENT SALARY IS REVIEWED ANNUALLY BY THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES. IN ADDITION, THE PRESIDENT'S CONTRACT IS ESTABLISHED AND REVIEWED BY THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES. OTHER OFFICERS AND KEY EMPLOYEES SALARIES ARE DETERMINED AND APPROVED BY THE UNIVERSITY PRESIDENT. Form 990, Part VI, Section C, line 19 THE DETERMINATION LETTER, ARTICLES OF INCORPORATION, BY-LAWS, AND FORM 990 ARE AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST AT THE MARSHALL B. KETCHUM UNIVERSITY 95-1644593 UNIVERSITY'S MAIN OFFICE. Form 990, Part XI, line 9: change in value of annuities -18,154. Form 990, Part XII, Line 2c The organization did not change its oversight or selection process for the audit of the financial statements. scco college properties inc 2575 yorba linda blvd fullerton CA 92831 953549243 Title Holding Company CA 501(c)(2) n/a Marshall B Ketchum University 1 The foundation for the preservation of sight 2575 yorba linda blvd fullerton CA 92831 300075351 Support MBKU Eyecare CA 501(c)(3) Line 12a, I marshall B Ketchum University 1 Charitable Remainder Unitrust (1) Charitable Trust CA T 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 scco college properties inc C 1064552 Cash