Department of the Treasury Internal Revenue Service
Public Charity Status and Public Support
Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
Attach to Form 990 or Form 990-EZ. See separate instructions.
OMB No. 1545-0047
2012
Open to Public Inspection
Name of the organization
Association of American Medical Colleges
Employer identification number
36-2169124
Part I
Reason for Public Charity Status
(All organizations must complete this part.) See instructions.
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f
If the organization received a written determination from the IRS that it is a Type I, Type II, or Type III supporting organization, check this box
..................................................
g
Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(i) A person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the supported organization?
................
11g(i)
(ii)
A family member of a person described in (i) above?
......................
11g(ii)
(iii)
A 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
h
Provide the following information about the supported organization(s).
(i) Name of supported organization
(ii) EIN
(iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions))
(iv) Is the organization in col. (i) listed in your governing document?
(v) Did you notify the organization in col. (i) of your support?
(vi) Is the organization in col. (i) organized in the U.S.?
(vii) Amount of monetary support
Yes
No
Yes
No
Yes
No
Total
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2012
Schedule A (Form 990 or 990-EZ) 2012
Page 2
Part II
Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the
organization failed to qualify under Part III. If the organization fails to
qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year (or fiscal year beginning in)
(a) 2008
(b) 2009
(c) 2010
(d) 2011
(e) 2012
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3
The value of services or facilities furnished by a governmental unit to the organization without charge..
4
Total. Add lines 1 through 3
5
The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included
on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6
Public support. Subtract line 5 from line 4.
Section B. Total Support
Calendar year
(or fiscal year beginning in)
(a) 2008
(b) 2009
(c) 2010
(d) 2011
(e) 2012
(f) Total
7
Amounts from line 4..
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources...
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
10
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)..
11
Total support (Add lines 7 through 10).
12
Gross receipts from related activities, etc. (see instructions)
..................
12
13
First five years.
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here........................................
Section C. Computation of Public Support Percentage
14
Public support percentage for 2012 (line 6, column (f) divided by line 11, column (f))
.........
14
15
Public support percentage for 2011 Schedule A, Part II, line 14
...............
15
16a
33 1/3% support test—2012.
If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization
.......................
b
33 1/3% support test—2011.
If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization
.....................
17a
10%-facts-and-circumstances test—2012.
If the organization did not check a box on line 13, 16a, or 16b, and line 14
is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization
.....................................................
b
10%-facts-and-circumstances test—2011.
If the organization did not check a box on line 13, 16a, 16b, or 17a, and line
15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported organization
................................................
18
Private foundation.
If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see
instructions
.....................................................
Schedule A (Form 990 or 990-EZ) 2012
Schedule A (Form 990 or 990-EZ) 2012
Page 3
Part III
Support Schedule for Organizations Described in Section 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization
failed to qualify under Part II. If the organization fails to qualify under
the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year (or fiscal year beginning in)
(a) 2008
(b) 2009
(c) 2010
(d) 2011
(e) 2012
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
16,332,899
15,874,833
15,469,123
15,192,117
15,308,246
78,177,218
2
Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
86,835,250
93,227,187
100,473,138
104,225,360
130,418,053
515,178,988
3
Gross receipts from activities that are not an unrelated trade or business under section 513..
0
4
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
0
5
The value of services or facilities furnished by a governmental unit to the organization without charge..
0
6
Total. Add lines 1 through 5.
103,168,149
109,102,020
115,942,261
119,417,477
145,726,299
593,356,206
7a
Amounts included on lines 1, 2, and 3 received from disqualified persons...
0
b
Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
0
c
Add lines 7a and 7b..
0
8
Public support (Subtract line 7c from line 6.)
593,356,206
Section B. Total Support
Calendar year (or fiscal year beginning in)
(a) 2008
(b) 2009
(c) 2010
(d) 2011
(e) 2012
(f) Total
9
Amounts from line 6...
103,168,149
109,102,020
115,942,261
119,417,477
145,726,299
593,356,206
10a
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
3,958,323
6,830,880
5,169,452
4,832,159
5,298,270
26,089,084
b
Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
0
c
Add lines 10a and 10b.
3,958,323
6,830,880
5,169,452
4,832,159
5,298,270
26,089,084
11
Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
0
12
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
..
1,694,743
2,951,938
2,684,745
2,521,104
207,068
10,059,598
13
Total support. (Add lines 9, 10c, 11, and 12.)..
108,821,215
118,884,838
123,796,458
126,770,740
151,231,637
629,504,888
14
First five years.
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.............................................
Section C. Computation of Public Support Percentage
15
Public support percentage for 2012 (line 8, column (f) divided by line 13, column (f))
.........
15
94.258 %
16
Public support percentage from 2011 Schedule A, Part III, line 15
...............
16
92.281 %
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2012 (line 10c, column (f) divided by line 13, column (f))
......
17
4.144 %
18
Investment income percentage from 2011 Schedule A, Part III, line 17
.............
18
4.387 %
19a
33 1/3% support tests—2012.
If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
........
b
33 1/3% support tests—2011.
If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
.....
20
Private foundation.
If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions
.....
Schedule A (Form 990 or 990-EZ) 2012
Schedule A (Form 990 or 990-EZ) 2012
Page 4
Part IV
Supplemental Information.
Complete this part to provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
Explanation
Schedule A (Form 990 or 990-EZ) 2012
Additional Data
Software ID:
Software Version:
-
TIN:
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 to provide any additional information.
Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2012
Open to Public Inspection
Name of the organization
Association of American Medical Colleges
Employer identification number
36-2169124
Identifier
Return Reference
Explanation
Program Service Accomplishments
Form 990, Part III, line 4d. Membership and constituent services: maintains the association's membership and constituent database, plans and provides logistical support for meetings and conferences, operates the association's reference center and archives, and manages publications ordering and fulfillment. Form 990, Part III, line 4e. Healthcare affairs: this cluster develops programs and services to help support member institutions focus on the interface between healthcare delivery system and academic medicine, paying particular attentions to how healthcare in academic settings can address quality of care and patient-centered care. Form 990, Part III, line 4f. MEDICAL EDUCATION: PROMOTES CURRICULAR REFORM AND FOSTERS INTEGRATION ACROSS THE CONTINUUM OF MEDICAL EDUCATION FROM UNDERGRADUATE AND GRADUATE MEDICAL EDUCATION. Form 990, Part III, line 4g. Diversity policy and programs: this unit leads efforts to help our members advance health equity in patient care, education and research through the organization's ability to use diversity for institutional excellence. Programs include research and professional development to increase under-represented minorities in academic medicine. Form 990, Part III, line 4H. Scientific affairs (formerly known as biomedical research and health sciences research): this cluster works to ensure an environment in which biomedical and behavioral research can flourish. The supply of scientific manpower, funding for research, scientific integrity, the responsible and humane use of animals in research and education, and relations with industry are among this cluster's concerns. Form 990, Part III, line 4H. professional development to increase under-represented minorities in academic medicine. Significant Changes to Bylaws Form 990, Part VI, Section A, Line 4 In November 2012, the AAMC's bylaws were amended to reconstitute the Council of Academic Societies into the Council of Faculty and Academic Societies.
Diversion of Assets
Form 990, Part VI, Section A, line 5
IN JULY 2013, THE ASSOCIATION DISCOVERED A DIVERSION OF ASSETS THROUGH A FRAUDULENT BILLING SCHEME INVOLVING FICTITIOUS VENDORS AND INVOICING. THE DIVERSION WAS COMMITTED BY A LONG-TENURED ADMINISTRATIVE EMPLOYEE WHO WORKED IN A UNIT THAT PROVIDES SERVICES TO SUPPORT AAMC MEMBERS. BASED ON AN INVESTIGATION CONDUCTED BY INDEPENDENT LEGAL COUNSEL, WITH THE ASSISTANCE OF A FORENSIC ACCOUNTING FIRM, THE DIVERSION RESULTED IN A FINANCIAL LOSS OF APPROXIMATELY $5.3 MILLION, OVER A 12 YEAR PERIOD FROM JUNE 2001 UNTIL IT WAS DISCOVERED IN JULY 2013. IMMEDIATELY AFTER DISCOVERY OF THE DIVERSION, THE ASSOCIATION TERMINATED THE EMPLOYEE, NOTIFIED LAW ENFORCEMENT, ENGAGED ITS BOARD OF DIRECTORS, AND RETAINED INDEPENDENT COUNSEL AND A FORENSIC ACCOUNTING FIRM TO DETERMINE THE SCOPE AND AMOUNT OF THE LOSS. THE ASSOCIATION COOPERATED WITH THE INVESTIGATIONS, IMPLEMENTED MEASURES TO STRENGTHEN INTERNAL CONTROLS, AND CONDUCTED STAFF TRAINING ON INTERNAL CONTROLS, AND FRAUD AND DETECTION AND PREVENTION. THE ASSOCIATION ALSO FILED A CLAIM WITH ITS INSURANCE CARRIER AND EXPECTS TO RECOVER A SIGNIFICANT PORTION OF THE LOSS THROUGH THAT MEANS. THE ASSOCIATION FILED A CIVIL LAW SUIT IN JULY 2013 TO ASSIST IN RECOVERING THE LOSS. THE FORMER EMPLOYEE WAS CHARGED WITH FELONY COUNTS OF THEFT AND MONEY LAUNDERING, AND ENTERED A PLEA OF GUILTY IN THE U.S. DISTRICT COURT IN NOVEMBER 2013. SHE WAS ORDERED TO FORFEIT CERTAIN ASSETS. SENTENCING IS SCHEDULED FOR FEBRUARY 2014.
Members or Stockholders
Form 990, Part VI, Section A, line 6
AAMC is a 501(c)(3) membership organization whose mission is to advance medical education.
Decisions of Governing Body
Form 990, Part VI, Section A, line 7b
Members may be called from time to time to modify the dues structure, make changes to the by-laws and possibly remove board members.
Review of Form 990
FORM 990, PART VI, SECTION A, LINE 11A
The AAMC's Form 990 is reviewed in detail by the audit committee. During this review management and the independent tax preparer describe entries in each section of the Form 990 and answer any questions posed by the audit committee. The audit committee approves the Form 990 for distribution to the full board. The form 990 is distributed to each board member for review and comment. After the distribution and upon expiration of the comment period, the form 990 is signed by an appropriate AAMC officer and filed with the IRS, and state governments as required.
Conflict of Interest Policy
Form 990, Part VI, Section B, line 12c
The AAMC has a comprehensive conflict of interest policy. Each board member and designated employee are required to acknowledge in writing, annually, that he or she has received a copy of the policy, has read and understands its contents, and agrees to comply with the policy. The policy describes procedures for determining when a conflict exists, procedures for addressing and ameliorating the conflict, if any, and procedures for addressing violations of the policy.
Compensation Process
Form 990, Part VI, Section B, lines 15a and 15b
The compensation committee of the board of directors is responsible for determining the compensation of the CEO and other officers and key employees. The committee is made up of independent members and uses independent compensation consultants. Comparable market surveys and data from other independent sources are used to develop its recommendations. The compensation committee approves and documents the process for setting the compensation in advance of any payments.
Governing Documents
Form 990, Part VI, Section C, line 19
The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.
OTHER FEES FOR SERVICES (NON EMPLOYEES)
FORM 990, PART IX, LINE 11g
CONSULTING FEES $1,309,780 TEMPORARY HELP $1,815,607 CONTRACTED SERVICES $28,633,684 BANK SERVICE FEES $2,444,297 MISCELLANEOUS OTHER SERVICES $239,333 PRINTING AND PUBLICATIONS $641,128 ........... $35,083,829
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.