2020-02-28T11:12:56-06:00 2019-06-30 363990892 Capin Crouse LLP 3050 Saturn Street Suite 104 Brea CA 92821 990 2018-07-01 956001907 The Master's University and Seminary MAST 6612593540 21726 Placerita Canyon Road Santa Clarita CA 913211200 Todd Kostjuk CFO & VP of Administration 6612593540 2020-02-28 1 Ted R Batson Jr P00721951 7145770988 139.146.132.42 2020-02-28 12:12:35 ES P 335F641087C3E7976C2C0E247FF46BFCA50F55A8 19F412DC166A22492C92E6EB526D42AA09DB72DA 2018 2020-09-23 17:36:50Z John Stead 21726 Placerita Canyon Road Santa Clarita CA 913211200 94335391 0 X www.masters.edu; www.tms.edu X 1927 CA Christian liberal arts college and theological seminary existing to advance the Kingdom of the Lord 18 13 1234 50 0 0 12632633 12355609 46576385 39724488 1151533 2954295 192292 430720 60552843 55465112 14586750 8746327 0 0 26658602 27120610 0 0 2230158 15106241 14894552 56351593 50761489 4201250 4703623 94710308 95671483 34841788 32725512 59868520 62945971 X The Master's University and Seminary (TMUS) exists to advance the Kingdom of the Lord Jesus Christ through education. This is accomplished through unreserved commitment to worshipping God, authority of Scripture, personal holiness, serving the local church, and penetrating the world with the Truth. 0 0 34920738 8746327 30786991 Undergraduate liberal arts academic program - approximately 900 students; MABC and Credential programs - approximately 150 students; Online Degree programs - approximately 500 students; Seminary advance degrees - approximately 500 students.The mission of The Master's University is to empower students for a life of enduring commitment to Christ, biblical fidelity, moral integrity, intellectual growth and lasting contribution to the Kingdom of God worldwide. The Master's Seminary equips godly men to be pastors or trainers of pastors for excellence in service to Christ in strategic fields of Christian ministry. This is accomplished through unreserved commitment to worshipping God, authority of Scripture, personal holiness, serving the local church, and penetrating the world with the Truth. 8617321 9228187 Dormitory Facilities, Food Service Operations, Bookstore for student use. 43538059 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 1 1 1 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 1 1 0 1 1 1 0 0 0 0 0 0 0 0 1 2832 0 1 1234 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 18 13 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA CO NH OR SC AK X John Russell Controller 6612593540 21726 Placerita Canyon Road Santa Clarita CA 913211200 X John Stead Interim President 40.00 X X 99365 0 80512 John MacArthur President (part year) 15.00 X X 38811 0 27154 Jonathan Rourke Chair / Vice Chair (part year) 1.00 X X 0 0 0 Randy Kirkland Chair (part year) 1.00 X X 0 0 0 Brad Armstrong Vice Chair 1.00 X X 0 0 0 Mark Shackelford Secretary 1.00 X X 0 0 0 Bradley Wetherell - Treasurer and Development Consultant 5.00 X X 13500 0 0 Scott Ardavanis Board Member & Faculty 1.00 X 5300 0 13950 Philip DeCourcy Board Member 1.00 X 0 0 0 Richard Dewey Board Member 1.00 X 0 0 9775 Bryan Hughes Board Member 2.00 X 0 0 0 George Jackson Board Member 1.00 X 0 0 0 Jesse Johnson Board Member 1.00 X 2500 0 0 Steve Lawson Board Member & Faculty 8.00 X 49438 0 0 Felix Martin del Campo Board Member 1.00 X 0 0 0 Robert Provost Board Member 1.00 X 0 0 0 Richard Riddle Board Member 1.00 X 0 0 0 George Sanders Board Member 1.00 X 0 0 0 John van Windergen Board Member 1.00 X 0 0 0 David Wismer Board Member 1.00 X 0 0 0 Tom Pennington Board Member & Faculty (part year) 2.00 X 7500 0 18275 James W Rickard Board Member (part year) 1.00 X 0 0 0 Todd Kostjuk CFO and VP of Administration 40.00 X 5416 0 103175 Mark Zhakevich VP of Finance (part year) 40.00 X 25099 0 145890 Lucas Cherry University VP of Development 40.00 X 171896 0 26203 Richard Gregory Seminary Senior VP 40.00 X 72956 0 119090 Michael Grisanti Seminary Professor of Old Testament 40.00 X 82075 0 156808 Kevin Hill University Dean of Faculty & School of Business 40.00 X 181176 0 25307 Brian Morley University Professor of Biblical Studies 40.00 X 113428 0 77291 868460 0 803430 35 0 1 0 Bon Appetit 21726 Placerita Canyon Road Santa Clarita CA 91321 Food Service 1838951 Victory Builders 28150 Ave Crocker 222 Valencia CA 91355 Construction 461758 WeKreative 23030 Lyons Ave Suite 209 Santa Clarita CA 91321 Marketing 234825 Wescott Press Inc 1121 West Isabel Street Burbank CA 91506 Printing 196258 Adventure Farther 1512 Frankfort St San Diego CA 92110 Travel agent 155140 10 77700 184965 12092944 164898 12355609 Student Tuition & Fees 611710 30786991 30786991 Auxiliary Enterprises 611710 8406656 8406656 530841 530841 39724488 791304 791304 33730 33730 244989 125474 119515 119515 119515 40325191 490086 38200108 452178 2125083 37908 2162991 2162991 10800 77700 24015 -13215 -13215 99122 68504 30618 30618 Property Tax Refund 531390 188530 188530 Workers Comp Refund 524298 61947 61947 9595 9595 260072 55465112 40015178 0 3094325 X 8746327 8746327 747150 221099 521551 4500 432619 334883 97736 20155618 17135209 1801038 1219371 558886 458245 54234 46407 4039342 3457114 416941 165287 1186995 951049 158954 76992 127563 5586 121884 93 63775 63775 161697 161697 1083663 776852 283813 22998 585698 298914 214851 71933 1580916 1080059 331639 169218 755483 438558 227541 89384 38242 38242 2217178 2112780 82494 21904 1606616 1263567 135228 207821 928744 831434 53585 43725 851954 789640 44510 17804 2240287 2078083 115860 46344 640883 604000 26345 10538 Food Service Charges 1989815 1894380 79596 15839 22038 22038 50761489 43538059 4993272 2230158 X 1427454 2590770 4501716 3103480 610923 510267 133000 100000 90000 1091255 1039427 2019487 2076645 82143675 35764465 45971668 46379210 28412981 29632554 3071925 3088427 7369899 7160703 94710308 95671483 1055664 1367881 2432887 2483690 22349054 21902324 4376703 2368373 162736 108065 4464744 4495179 34841788 32725512 X 26214166 27575406 33654354 35370565 59868520 62945971 94710308 95671483 X 4703623 -1725232 99060 X X 0 1 X 1 1 1 X 9973392 8042360 11288434 12632633 12355609 54292428 9973392 8042360 11288434 12632633 12355609 54292428 3586749 50705679 826242 763292 880079 1037351 1070023 4576987 53238 90312 48782 58745 270872 521949 59391364 217284451 0.85380 0.85170 X Schedule A, Part II, Line 10, Explanation of Other Income: Other Miscellaneous - 2014 Amount: $ 27,863. 2015 Amount: $ 2,594. 2016 Amount: $ 5,082. 2017 Amount: $ 5,781. 2018 Amount: $ 9,595. Workmans Comp Rebate - 2015 Amount: $ 43,468. 2017 Amount: $ 30,564. 2018 Amount: $ 61,947. Gross Fundraising event fees - 2014 Amount: $ 25,375. 2015 Amount: $ 44,250. 2016 Amount: $ 43,700. 2017 Amount: $ 22,400. 2018 Amount: $ 10,800. Property Tax Refund - 2018 Amount: $ 188,530. Part II The organization is a school as described under 170(b)(1)(A)(ii) and is not required to complete a public support schedule. Schedule A, Part II is completed to verify the School can qualify under public charity status section 170(b)(1)(A)(vi) and qualifies to use the first listed special rule for Schedule B reporting. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 28308383 1630656 1213330 742557 177934 215568 30016310 26174768 1262243 1849288 596206 185966 195744 28308383 21734755 3219487 2476249 511083 558641 185999 26174768 22265244 528604 -369664 447979 75120 166330 21734755 21598860 1744603 -225301 697826 155092 22265244 1.00000 1 0 3024496 3024496 53444672 26893956 26550716 1016634 280735 735899 12133163 8589774 3543389 12524710 12524710 46379210 Future interest in split agreement 3546242 Asset held for sale 396500 Asset held for investment 3217961 7160703 Due to Annuitants 4130558 Due to Trustors and Other Remainderman under Trust Agreements 278892 Interest rate swap agreement 85729 4495179 45027811 -1725232 -8768365 -10493597 55521408 161697 -217993 -56296 55465112 42049420 217993 217993 41831427 161697 8768365 8930062 50761489 Part V, Line 4: Student scholarships, faculty support, and general operating expenses. Part XI, Line 2d - Other Adjustments: Student financial aid netted with tuition revenue -8,746,327. Other expenses netted against revenue -22,038. Part XI, Line 4b - Other Adjustments: Rent expense -125,474. Special event expense -24,015. Cost of goods sold -68,504. Part XII, Line 2d - Other Adjustments: Rent expense 125,474. Special event expense 24,015. Cost of goods sold 68,504. Part XII, Line 4b - Other Adjustments: Student financial aid netted with tuition revenue 8,746,327. Expenses netted against revenue 22,038. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Schedule E, Part I, Line 6 Federal financial aid funds are received from the U.S. Department of Education under Title IV of the Higher Education Act. The grants are provided to the institution to award student assistance under the following programs: Federal Work Study (FWS) and Supplemental Educational Opportunity Grant (SEOG). Middle East and North Africa 1 4 Program Services Academic studies 703302 Europe 0 4 Program services Academic Studies 77231 1 8 0 0 1 8 780533 0 780533 0 0 0 0 0 0 Part I, line 3: The organization tracked expenditures in accordance with accrual basis of accounting. Foreign expenditures were tracked using expense reports and other appropriate documentation. Golf Tournament 88500 77700 10800 9442 10481 511 3581 88500 77700 10800 9442 10481 511 3581 24015 -13215 1 Institutional Scholarships 1229 8746327 Part I, Line 2: Master's University and Seminary awards financial aid grants to students in accordance with the University's institutional financial aid policies. All scholarships are awarded to current students of the institution, thus enabling the institution to track their academic performance and use of all scholarship funds. Scholarships funds are directly applied to the student accounts, with no cash changing hands. X X 1 1 X X X 0 0 0 0 0 0 0 1 0 John Stead Interim President 98747 0 0 0 618 0 16000 0 64827 0 180192 0 0 0 Mark Zhakevich VP of Finance (part year) 25054 0 0 0 45 0 20890 0 125406 0 171395 0 0 0 Lucas Cherry University VP of Development 145591 0 10754 0 15551 0 5733 0 20900 0 198529 0 0 0 Richard Gregory Seminary Senior VP 72860 0 0 0 96 0 19650 0 99888 0 192494 0 0 0 Michael Grisanti Seminary Professor of Old Testament 31670 0 50050 0 355 0 32210 0 124920 0 239205 0 0 0 Kevin Hill University Dean of Faculty & School of Business 106036 0 75036 0 104 0 4837 0 20826 0 206839 0 0 0 Brian Morley University Professor of Biblical Studies 35091 0 78021 0 316 0 28100 0 49477 0 191005 0 0 0 Part I, Line 1a Charter travel benefit provided for President John MacArthur for safety and health reasons. This was not included in taxable compensation. Nontaxable housing allowances for the following individuals were reported on Part VII: Mark Zhakevich - $125,000 Brian Morley - $29,100 Michael Grisanti - $44,100 Richard Gregory - $76,492 John Stead - $48,796 Todd Kostjuk - $74,809 Part I, Line 7 The following individuals recieved discretionary bonuses during the reporting period: Lucas Cherry Michael Grisanti Kevin Hill Brian Morley A California Statewide Communities Development Authority 680164610 2014-12-19 24000000 Campus buildings and refinance of long term debt 0 0 0 A 24000000 24000000 1 0 1 1 A 0 0 1 1 0 0.04000 0.00000 0.04000 0 0 1 A 0 0 0 0 1 1 US Bank National Association 0 0 0 0 1 A 1 Iosif Zhakevich Family member of Board Officer Home purchase X 100000 90000 0 1 1 90000 31520 Need-Based Scholarships Recruitment and retention scholarships 43000 Academic Scholarships Scholarship for academic performance James M Rickard Family member of Board Member 122448 Compensation and benefits 0 WeKreative Entity more than 35% owned by family members of John MacArthur, President 200000 Graphic and creative design 0 Iosif Zhakevich Family member of Board Member 136037 Compensation and benefits 0 Kory Welch Family member of John MacArthur, President 97736 Compensation and benefits 0 Lauren Mason Family member of Board Member 76398 Compensation and benefits 0 X 1664 University estimate X 10 143456 Market Value X 1 10000 Realtor estimate X Furniture & Office Equip 2 5079 Fair Market Value X Piano 1 3500 cost X Telescope 1 1199 Cost 0 0 1 0 Part I, Column (b): The number of contributions represent the number of contributions received, not the number of items donated. Form 990, Part VI, Section A, line 1 The organization has an Executive Committee which functions on behalf of the Board at such times as the Board is not in session. The Chairman of the Board shall serve as the Chairman of the Committee. The Executive Committee shall consist of the officers of the Board and the President. The Executive Vice Presidents of the University and Seminary shall convene with the Executive Committee at the pleasure of the Chairman. Additional members may be designated by the Chairman as long as the total number does not exceed twelve (12). A majority of the members of the Executive Committee shall constitute a quorum for the transaction of business. Special meetings may be called by the Chairman of the Board or by any three members through the Chairman of the Board. Conference telephone meetings are permissible in emergencies, but any action taken must be ratified at the next stated meeting of the Board. The Executive Committee shall: 1. Conduct Director business between regular Board meetings if necessary. 2. Act in emergency situations. 3. Present nominations for election to the Board and for officers of the Board. 4. Annually review salaries of executive staff members. Form 990, Part VI, Section B, line 11b The Form 990 is prepared by an independent CPA firm and is reviewed in detail by the CFO and Controller. The reviewed 990 is then sent to the board of directors for review prior to filing. Form 990, Part VI, Section B, line 12c The Conflict of Interest Policy is signed annually by all board members and corporate officers. The Finance Committee reviews all documents and recommends any necessary action. The Finance Committee follows up during the year to ensure the policy is enforced. Should any potential conflicts of interest be disclosed, the board member or officer would be asked to refrain from participation in any deliberation or decision with regard to matters affected by the relationship. Form 990, Part VI, Section B, line 15 Annual compensation evaluations for the President as well as other officers and key employees are done by the Finance Committee, which is made up of independent persons, using comparative data obtained from outside sources. The results of the evaluations are documented in the Finance Committee minutes. Form 990, Part VI, Section C, line 19 The organization makes its articles of incorporation, bylaws, conflict of interest policy, annual audited financial statements, and Form 990 (except for donor information) available to all individuals or companies when requested through the accounting office. Form 990, Part VII, Section A Two ministers on the board of directors are paid as adjunct faculty for the seminary, teaching classes involving pastoral ministries. Part VII, column (F) and Schedule J, Part II, column (C) Compensation reported in Part VII, column D and Schedule J, Part II, column B is the amount reported on the individual's W-2, box 1 or 5 (whichever amount is greater) per the IRS instructions. In the case of minister's compensation when box 5 of the W-2 is not applicable, box 1 compensation is used. Employee deferrals to qualified retirement plans are normally captured in box 5, not box 1 of Form W-2. For reporting purposes we have included the minister's retirement plan deferrals in Part VII, column F and Schedule J, Part II, column C. Form 990, Part IX, Line 11f Investment management fees are deducted from gross investment income prior to the recording of investment income. The fees deducted this reported year were $161,697. Form 990, Part X, Lines 27 - 29 In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 06/30/2019. The 2018 Form 990 and its associated schedules were not updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Part X, Lines 27-29: Line 27 - Net assets without donor restrictions $27,575,406 Line 29 - Net assets with donor restrictions 35,370,565 ----------- Total net assets $62,945,971 Form 990, Part XI, line 9: Net change in split interest agreements 333,608. Unrealized Loss on Interest Rate Swap -234,548. Form 990, Part XII, Line 2c: The organization's Board assumes responsibility of the audit of its financial statements and selection of its independent accountant. This process has not changed since the prior year.