GEM 2021 Annual Report

2020/2021 ANNUAL REPORT

ADVANCING SCIENTIFIC IMPACT

2020/2021 ANNUAL REPORT

OUR VISION

We envision a world where all human capital are valued and empowered to achieve their fullest potential through parity of access to the US STEM workforce, driving global innovation and competitive advantage.

OUR MISSION

PROGRAMMING

GEM GRAD Lab

i4: GEM’s Inclusion in Innovation Initiative

Future Faculty and Professionals

2021 Selection Data - Yearly Outlook

Annual Board Meeting & Conference

FINANCIAL STATEMENTS

Since 1976, the National GEM Consortium has been addressing a critical shortfall in American engineering and scientific talent by increasing the participation of under-represented minorities at the Master’s and Doctoral levels.

Our model is strategic and proven. We provide graduate fellowships to highly qualified individuals from communities where such talent is largely untapped. Working in partnership with leading corporations, U.S. government laboratories, and many of the nation’s top universities and research institutes, we provide GEM Fellows with the much-needed financial support that is often the deciding factor in pursuing graduate education, as well as practical experience through high-level, paid summer internships.

GEM does more than provide financial support, however. We work to ensure student success in these competitive academic and professional environments with effective programs that increase the recruitment, retention, and graduation of GEM Fellows. More than 4,000 GEM Fellows have gone on to successful careers.

Letter from the PRESIDENT

Dear GEM Colleagues,

We are pleased to release the 2021 Annual Report for the National GEM Consortium. Over the last year, we have continued to grow at an accelerated rate in both the number of sponsored fellows and organizations that support the vision and mission of GEM. This is particularly significant given on-going COVID-19 related challenges, and it reflects the hard work and contributions of every member of the GEM community, from corporations and universities to fellows and alums.

Connecting underrepresented individuals pursuing advanced degrees in science and engineering with opportunities in industry is an extraordinary mission. For science and technology industries, the need to attract and retain top talent is vital to long term competitiveness. GEM is uniquely positioned to create strong pathways to meaningful careers while simultaneously contributing to greater innovation through a more inclusive and diverse workforce.

Having completed my first year as Chair of the GEM Board of Directors, I am honored to be part of a movement that both Lam Research and I firmly believe in and support. It has been a pleasure to meet so many individuals from across the GEM community, and I look forward to continuing the positive momentum and expanding the impact in the years to come.

TIM ARCHER CHAIR, GEM BOARD OF DIRECTORS PRESIDENT AND CEO, LAM RESEARCH

Letter from the CHIEF EXECUTIVE OFFICER

Dear GEM Stakeholder,

While the current climate still accounts for a global pandemic, one would be hard pressed to see its impact within the consortium and that is because of all the hard work that we have collectively put into making this organization achieve its fullest potential. Stretch goals are quickly becoming just goals, dreams are becoming reality and the once viewed impossible goal of supporting 1000 GEM fellows every year, is starting to look very attainable. The pandemic worked like an earthquake, it destroyed many businesses when it first hit but then the aftershocks slowly whittled away many others. For GEM though, the pandemic was a wakeup call that forced the organization to become even more aggressive to avoid being dragged down by economic aftershocks. The result of that aggression is a report that we have enjoyed our most successful year to date and are proud to say that we have hit and significantly outperformed all of our major goals.

Our two primary goals while still in our Aggregator (Growth) mode have been 20% growth in employer fellowship support i.e. employers sponsoring more students to pursue their Masters and PhDs in STEM fields and a 66% growth in the number of sponsoring corporations within the consortium, with the latter goal historically being the more elusive of the two. I am proud to say that this year we hit both of our goals. Against our 20% growth in employer fellowship goal, GEM accomplished 50% growth, our highest ever single year growth rate to date. Against our 66% growth in employer fellowships, we hit the nail on the head and came in at 66%. Think about that, we grew 50% in the number of students we support and 66% in our employer population. That is significant growth for any organization and a great start to the tenure of our chair Tim Archer who just completed his first year. Tim coupled with our new board members and consortium members have shown that they are up to the task to make GEM a best in class non-profit.

It has been said that “the future belongs to those who believe in the beauty of their dreams”. If that is the case then the future belongs to us, The National GEM Consortium. Thank you all for not just believing in the beauty of our dreams but waking up, and helping to make those dreams a reality. Let’s continue to dream together, let’s continue to grow together, let’s continue to see and achieve scientific impact.

We look forward to your continued support and participation.

An advanced degree in engineering or science can open doors to even more challenging and responsible careers— especially in the dynamic and sophisticated areas of high technology research. Every year a significant number of underrepresented minorities enter undergraduate engineering and science curricula; however, under-represented minorities represent less than five percent of the recipients of advanced degrees in engineering or science.

It is GEM’s belief that if highly qualified minority students were exposed to the benefits of a career in research and technology innovation, via presentations from individuals from their communities who have received a graduate engineering or science degree and are currently successful in their careers, and were given resources on how to apply to graduate school, more students would apply and successfully matriculate in graduate engineering and science programs.

GEM conducts two signature programs to promote the participation and successful graduation of underrepresented minorities at the graduate level in science and engineering. GEM’s signature undergraduate program, called GRAD

SPONSORED BY:

Lab (Getting Ready for Advanced Degree Laboratory), inspires close to one thousand under-represented STEM undergraduates annually to pursue a graduate degree in engineering or science. The GRAD Lab is currently supported by The Intel Foundation.

GRAD Lab is GEM’s first programmatic offering for undergraduates! Launched at the 30th Anniversary Conference in June 2006 to outstanding participant reviews, GRAD Lab offers under-represented students exposure to the benefits of research and technology careers in a highly interactive one-day event.

GRAD Lab encourages young people of color to consider graduate engineering or science education and applying for the GEM fellowship. Focusing on the global importance of research and innovation, life-long career benefits, and real world role models the symposium will help each student envision his or her future as a technology leader, successfully apply for a GEM fellowship, and gain entry to a graduate program. GRAD Lab is GEM’s portable and scalable solution for developing diverse technical talent with advanced degrees.

The National Science Foundation (NSF) awarded the National GEM Consortium $3.5 million to develop a national diversity and inclusion infrastructure for the NSF Innovation Corps (I-Corps™) Program in September 2019.

GEM’s Inclusion in Innovation Initiative (i4), is a cooperative partnership with the National Science Foundation (NSF) to develop a national diversity and inclusion infrastructure for the Innovation Corps (I-Corps™) Program. This program supports academic researchers in launching successful tech startups through entrepreneurial training providing them with critical skills for translating their research discoveries from the laboratory to the marketplace.

GEMpreneur Workshops, Voices From the Field Panels and PEP (Preparing for Entrepreneurial Pathways) Talks are a part of the i4 programmatic offerings for current GEM Fellows and Alumni. Launched in June 2020, these programs provide underrepresented graduate researchers exposure to entrepreneurial pathways, processes to commercialize their academic research, and access to the GEM network of Founders/Co-Founders who have translated their deep-tech graduate research into successful startup organizations.

GEM’s signature graduate program, FFP Symposium provides comprehensive programming to current graduate students to ensure successful completion of rigorous STEM graduate programs. The goal of the FFP Symposium is to provide graduate students with improved research and career competitiveness, tools and metrics for greater control in career planning, and to gain access to a powerful network of peers and mentors.

GEM Fellows by Program

GEM Fellows by Gender

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GEM 45TH ANNUAL BOARD MEETING AND CONFERENCE

September 9-11, 2021 | JW Marriott Houston by Galleria | Houston, Texas

GEM convened its annual meeting, the 2021 GEM Board of Directors Meeting and National Conference on September 9-11, 2021 at the JW Marriott Houston by the Galleria in Houston, Texas. The conference was a 45th anniversary celebration of GEM’s achievements toward its mission to drive global innovation and competitive advantage in the United States STEM workforce. The workshops, seminars and sessions were related to educating and preparing engineering and scientific talent for leadership careers, particularly among historically underrepresented ethnic. It fulfilled its purpose, to engage GEM Representatives in mission-forward discussions and take action through voting on strategic items during the board meeting; while prospective and current graduate students attended workshops, participated in a

GEM Leadership Awards Gala & Opening Reception

The 2021 GEM Annual Board Meeting and Conference, a prestigious forum for stimulating debate on bold solutions to advance graduate education. The 2021 meeting provides a platform to raise nationwide awareness of the National GEM Consortium mission, vision, Partners, and Fellows while celebrating over 40 years of growth and impact on underrepresentation within the graduate STEM landscape.

technical presentation competition & poster session, engaged with graduate and post-doc programs during the Graduate Resource, Post-Doc and Employer Fair, and took advantage of networking opportunities with representatives during the opening pre-reception. A highlight of this year’s event was the GEM 2021 Leadership Awards Gala and Reception. honoring those GEM alumni, university and employer leaders and champions that have embodied GEM’s forty-five years of achievement toward GEM’s mission or making a scientific impact. This 2021 national conference attendance doubled in size from previous years.

Gala Chair

Dr. Felicia Benton - Johnson Assistant Dean, College of Engineering Georgia Institute of Technology

Friday Morning Plenary

The Friday breakfast plenary session was comprised of a panel of 3M’s Executive leadership team and was moderated by GEM’s Chief Executive Officer, Brennon Marcano. At this opening plenary, a 9-minute video tribute showcased GEM and its history of excellence throughout the past 45 years.

Sponsored by:

Friday Lunch Plenary

The Friday lunch plenary session featured a panel of space experts from The Aerospace Corporation and NASA and was moderated by the amazing Lesia L. Crumpton-Young, President of Texas Southern University and GEM Alum. Panelists reviewed movie clips of sci-fi scenes and opined on what was fiction, reality and close to reality.

Sponsored by:

Student-Focused Programming

Session: “Why Gradate School”

This session is designed to break some of the common myths about pursuing an advanced degree and set undergraduates STEM students on course of achieving their fullest potential.

Sponsored by:

Session: “FFP: Navigating Graduate School-Managing Your Time and Staying Motivated to the Finish Line!”

• “The Big “D”: How to Write Your Dissertation and Live to Tell About It”

• “How to Succeed in Graduate School: Understanding the Graduate School Lingo”

• “Composing Your Graduate School Life”

Sponsored by:

Session: “Engaging in Entrepreneurial Pathways”

Sponsored by:

Session: “i4 to I-Corps Pathway”

Sponsored by:

Session: “Why Entrepreneurship? And Voices From the Field Panel”

Sponsored by:

GEM Alumni Association Reunion and Networking Party

GEM 45th Anniversary Salute and Alumni Networking Party was held at the House of Blues. The opening GEM Alumni session was an amazing opportunity for members of the GEM Alumni Association, GEM Fellows and other conference participants to network with each other, and our sponsor representative. Participants also got to learn about Amazon’s current partnership with GEM and new and exciting plans to come.

Session:

A GEM nascent and current founders engaged in the social and peer-to-peer advisory aspects toward developing a robust GEM entrepreneurial network, while helping GEM researchers understand what are the barriers and challenges as well as the successes associated with your current/future venture.

Sponsored by:

2021 Graduate Resource, Post Doc and Employer Fair

GEM hosted a graduate resource, post doc and employer fair that allowed undergraduate and graduate attendees to interact with University and Employer representatives in attendance on postdoc and graduate opportunities.

Sponsored by:

Technical Presentation Competition

Sponsored by National Renewable Energy Laboratory:

The 2021 GEM Technical Presentation Competition was initially developed to showcase the technical and research assignments of prospective and current GEM Fellows during their summer internship/summer research experiences and has been expanded for all students to showcase their skills in technical writing and presentations. Science, Technology, Engineering and Mathematics (STEM) professionals, like all professionals, must possess a well-developed ability to communicate, both orally and in writing. This competition is designed to emphasize the value of an ability to conduct research, engage in a high level of technology and to deliver oral presentations. This year’s winners by category are:

2nd Year PhD and Beyond Level

1st Place

Terrell Glenn Electrical Engineering, Purdue University, Intel Corporation

Master’s and 1st Year PhD Level

1st Place

Joseph Schmidt Physics, University of TexasAustin, Oak Ridge Laboratory

The National GEM Consortium Poster Presentation

Sponsored by Lam Research

2nd Place

Nyesa Enakaya Chemistry, Howard University, Brookhaven National Laboratory

3rd Place

Collin Muniz Chemistry, University of Southern California, Lam Research Corporation

2nd Place

Promise AdebayoIge Nuclear Engineering, University of Tennessee –Knoxville, Princeton Plasma Physics Laboratory

The poster was a hybrid between a research paper and an oral presentation. The primary purpose of a poster is to communicate what was done, what data was obtained, the researcher’s conclusions and recommendation for future research. A poster is more concise since the author is present to explain and elaborate on the research work.

3rd Place

Caira Anderson Applied Mathematics, Rice University, Princeton Plasma Physics Laboratory

Winner

Vanessa Awate Aerospace, University IllinoisUrbana Champaign, MIT Lincoln Laboratory

THANK YOU TO OUR 2021 CONFERENCE SPONSORS

Visionary Sponsor

Innovator Sponsors

Encourager Sponsors

Educator Sponsors

Supporter Sponsors

Gala Sponsors

FINANCIAL STATEMENTS

Years Ended June 30, 2021 and 2020

INDEPENDENT AUDITORS’ REPORT

To the Board of Directors

National Consortium for Graduate Degrees for Minorities in Engineering and Science, Inc. Alexandria, Virginia

We have audited the accompanying financial statements of the National Consortium for Graduate Degrees for Minorities in Engineering and Science, Inc. (GEM), which comprise the statements of financial position as of June 30, 2021 and 2020, and the related statements of activities, functional expenses and cash flows for the years then ended and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the National Consortium for Graduate Degrees for Minorities in Engineering and Science, Inc. as of June 30, 2021 and 2020, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Our audit was conducted for the purpose of forming opinions on the financial statements as a whole. The Schedule of Expenditures of Federal Awards, as required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and other supplementary information as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The schedule of expenditures of federal awards and other supplementary information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards and other supplementary information are fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standard

In accordance with Government Auditing Standards, we have also issued our report dated November 29, 2022, on our consideration of the National Consortium for Graduate Degrees for Minorities in Engineering and Science, Inc.’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the National Consortium for Graduate Degrees for Minorities in Engineering and Science, Inc.’s internal control over financial reporting and compliance.

Limerick, Pennsylvania

November 29, 2022

STATEMENTS OF FINANCIAL POSITION

STATEMENT OF ACTIVITIES

Year Ended June 30, 2021

STATEMENT OF ACTIVITIES

Year Ended June 30, 2020

STATEMENT OF FUNCTIONAL EXPENSES

Years Ended June 30, 2021 and 2020

See accompanying notes.

STATEMENT OF CASH FLOWS

NOTES TO FINANCIAL STATEMENTS

NOTE A ORGANIZATION

The National Consortium for Graduate Degrees for Minorities in Engineering and Science, Inc. (GEM) is a separately incorporated notfor-profit organization whose purpose is to provide aid and support to minority students pursuing graduate degrees in the field of engineering and science. Revenue consists of corporate contributions and membership fees from corporate and university members.

NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the accounting policies adopted by GEM, which have a significant effect on the financial statements.

Basis of Accounting

The financial statements have been prepared on the accrual basis of accounting, whereby revenues are recognized when earned and expenses when incurred.

Financial Statement Presentation

The financial statements of GEM have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”), which require GEM to report information regarding its financial position and activities according to the following net asset classifications:

Net Assets without Donor Restrictions: Net assets that are not subject to donor imposed restrictions and may be expended for any purpose in performing the primary objectives of GEM. These net assets may be used at the discretion of GEM’s management and the board of directors.

Net Assets with Donor Restrictions: Net assets subject to stipulations imposed by donors, and grantors. Some donor restrictions are temporary in nature; those restrictions will be met by actions of GEM or by the passage of time. Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity.

Donor restricted contributions are reported as increased in net assets with donor restrictions. When a restriction expires, net assets are reclassified from net assets with donor restrictions to net assets without donor restrictions in the statement of activities.

Support that is restricted by the donor is reported as an increase in net assets without donor restrictions if the restriction expires in the same reporting period in which the support is received and recognized.

Cash and Temporary Cash Investments

Resources invested in money market funds and short-term investments with maturities of three months or less at date of purchase are classified as temporary cash investments.

Accounts Receivable

Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a provision for bad debt expense and an adjustment to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. At June 30, 2021 and 2020, there was no valuation allowance.

Investments

Investments in marketable securities with readily determinable fair value are reported at their fair values in the statements of financial position. Unrealized gains (losses) are included in the change in net assets.

Contributions

In accordance with FASB ASC 958-605, unconditional contributions are recognized immediately and classified as either net assets with donor restrictions or net assets without donor restrictions. Conditional contributions received are accounted for as a liability or are unrecognized initially, that is, until the barriers to entitlement are overcome, at which point the transaction is recognized as unconditional and classified as either net assets with restrictions or net assets without restrictions.

Treatment of Paycheck Protection Program (PPP) Loan

GEM has elected to apply the FASB ASC 958-605 conditional contribution model to account for the PPP loan. Under this model, conditional contributions received are accounted for as a liability or are unrecognized initially, that is, until the barriers to entitlement are overcome, at which point the transaction is recognized as income.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The general capitalization policy is that all equipment and other fixed assets costing in excess of $1,000 will be recorded as an asset.

Tax Status

GEM is a not-for-profit organization as described in Section 501(c)(3) of the Internal Revenue Code and is exempt from federal income taxes on related income pursuant to Section 501(a) of the Internal Revenue Code.

GEM takes the position that it has no net income derived from unrelated business activities and believes it has appropriate support for any tax positions taken and, as such, does not have any uncertain tax positions that are material to the financial statements.

Functional Allocation of Expenses

The cost of providing program services and other activities has been summarized on a functional basis in the statements of activities. Directly identifiable expenses are charged to programs and supporting services. Costs that constitute an appeal for financial support are charged to fundraising expenses. Expenses related to more than one function are charged to programs and supporting services based on estimates of time/expense incurred in each area. Management and general expenses include those expenses that are not directly identifiable with any other specific function but provide the overall support and direction of GEM. Such costs are expensed as incurred. These expenses are allocated based on a pro-rata share of the total payroll charged to each function.

Membership Fees

Membership fees, which are billed in advance, are recognized as revenue when earned. Unearned fee revenue represents membership fees billed for periods extending beyond year-end.

Awarded Fellowships, Net

As GEM fellowships are awarded, the amounts associated with each award are transferred to Board-designated net assets. These amounts are net of fellowship offers declined and amounts related to students who have withdrawn from a GEM fellowship program or who have graduated without expending the full designated amounts.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Reclassifications

Certain amounts represented in the prior year have been reclassified in order to be consistent with the current year’s presentation.

Date of Management’s Review Management has evaluated subsequent events through November 29, 2022, the date which the financial statements were available to be issued.

NOTE C FINANCIAL INSTRUMENTS AND CONCENTRATIONS OF CREDIT RISK

Financial Instruments

The carrying values of GEM’s financial instruments approximate their estimated fair values. The following methods and assumptions were used to estimate the fair value of each class of financial instruments:

• Cash and Temporary Cash Investments - The carrying amount approximates fair value due to the short-term maturity of these instruments.

• Marketable Securities and Investments - The fair value of marketable securities and investments held for investment purposes is based on quoted market prices.

Concentrations of Credit Risk

Financial instruments which potentially subject GEM to concentrations of credit risk consist principally of cash and accounts receivable. GEM places its cash with high credit quality institutions. At times, such amounts may be in excess of the FDIC insurance limits.

Concentrations of credit risk with respect to trade accounts receivable are generally diversified due to the large number of individuals comprising GEM’s customer base.

NOTE D INVESTMENTS

Investments are carried at market. The following summarizes the relationship between cost and carrying values at market value at June 30, 2021 and 2020, and the related investment income included in the statements of activities.

NOTES TO FINANCIAL STATEMENTS

June 30, 2021 and 2020

NOTE E FAIR VALUE MEASUREMENTS

FASB ASC 820-10 establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.

Level 1 i1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that GEM has the ability to access.

Level 2 inputs are other than quoted market prices that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.

Level 3 inputs are unobservable inputs based on GEM’s assumptions used to measure assets and liabilities at fair value. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The assets of GEM for which fair values are determined on a recurring basis are summarized as follows:

Mutual funds are valued at quoted market prices, which represent the fair values of shares held by GEM at year end.

NOTE F PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

The composition of investment return consists of:

It is GEM’s intent to hold investments for long-term purposes.

See accompanying notes.

NOTES TO FINANCIAL STATEMENTS

June 30, 2021 and 2020

NOTE G LONG-TERM DEBT

Long-term debt is as follows:

Mortgage payable, interest at 4.25%, monthly payments of $4,952, payable to maturity in November 2024, secured by building

Future maturities of long-term debt are as follows:

Year Ending June 30,

NOTE H NET ASSETS WITHOUT DONOR RESTRICTIONS

The board has committed to the following fellowships:

Spending Policy and How the Investment Objectives Relate to Spending Policy

As of June 30, 2021, GEM’s net asset endowment is invested in a diversified portfolio of mutual funds and fixed income mutual funds. GEM intends to use endowment net assets to support operations. Each year, the investment committee recommends expenditures based on portfolio growth and earnings. Half of the portfolio earnings, up to 3% of the portfolio value, may be distributed to the general operating accounts of GEM.

Endowment net assets consist of the following:

Net assets of $4,691,152 and $535,816 respectively are designated for operations and fellowship expenses by the board for the years ended June 30, 2021 and 2020.

Endowment

GEM classifies as endowment net assets (1) the original value of gifts donated to the endowment, (2) the original value of subsequent gifts to the endowment and (3) enhancements or diminishments of the fund from investment income, loss and spending allowance.

Return Objectives and Risk Parameters

GEM has adopted investment and spending policies for endowment assets that attempt to provide a relatively predictable and growing stream of annual distributions in support of the institution while preserving the longterm, real purchasing power of assets.

Strategies Employed for Achieving Objectives

To satisfy its long-term rate-of-return objectives, GEM relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). GEM’s current assets allocation for endowment funds is structured to achieve the appropriate level of investment return.

Endowment net assets are designated for the following purposes as of June 30, 2021 and 2020.

NOTE I PROGRAM INFORMATION

GEM presently operates the following programs:

GEM M.S. Engineering Fellowship Program - The objective of the master’s program is to increase the pool of minority M.S. engineering graduates. Each participant is afforded a summer internship experience and a portable academic fellowship of tuition, fees and stipend. Fellows are supported for three semesters or four quarters.

GEM Ph.D. Engineering Fellowship Program - This program’s objective is to offer post-master’s fellowships to under-represented minority students. Fellowships may be used at any participating GEM member university. Tuition, fees and an academic year stipend are provided, and the students are afforded a summer internship experience before the start of the first academic year under the program. Fellows may also be required to accept a research or teaching assistantship.

GEM Ph.D. Science Fellowship Program - The goal of this program is to increase the number of minority students pursuing doctoral degrees in the natural, physical and life sciences (chemistry, physics, mathematics and computer science, as well as the earth, biological and pharmaceutical sciences). Fellowships are portable to any participating GEM member university and include a stipend, tuition and fees, along with an opportunity for a summer internship experience before the start of the first academic year under the program. Fellows may be required to accept a research or teaching assistantship.

For the years ended June 30, 2021 and 2020, a GEM employer or university member pays a non-refundable annual membership fee of $2,500 or $5,000, respectively, to belong to the National GEM Consortium.

The membership fees and additional contributions are recorded as revenue for the purpose of funding GEM programs and extensions.

NOTE J FUNCTIONAL CLASSIFICATION OF EXPENSES

The functional classification of expenses is as follows:

NOTES TO FINANCIAL STATEMENTS

June 30, 2021 and 2020

NOTE N REVENUE FROM CONTRACTS WITH CUSTOMERS

Performance Obligations and Significant Judgements - TThe Organization recognizes revenue from membership dues over the membership period. The performance obligation consists of providing members aid and support while the pursue graduate degrees in the field of engineering and science and is recognized ratably as services are simultaneously received and consumed by the members.

The following revenues from contacts with customers are recognized over time as the performance obligation is satisfied:

NOTE K 401(k) PLAN

GEM has a defined contribution plan (i.e., Section 401(k) under the Internal Revenue Code). GEM contributions are discretionary and determined annually by management. The plan also allows employee contributions through salary reduction. GEM’s contributions for the years ended June 30, 2021 and 2020, were $20,158 and $15,322, respectively.

NOTE L LIQUIDITY

As part of the National Consortium for Graduate Degrees for Minorities’ liquidity management, GEM’s strategy is to structure financial assets to be available to satisfy cash needs for general expenditures and current liabilities with a goal to meet at least 30 days of normal operating expenses, which are on average $11,400 per day. GEM’s financial assets available to meet cash needs for general expenditure include:

Contact Assets and Liabilities - Contract assets arise when the Organization recognizes revenue for amounts that cannot be billed under the terms of the contract with the customer. The Organization did not report any contract assets at June 30, 2021, 2020 or 2019. Contract receivables include when the participating employers sponsor a fellow and are reported on the Statement of Financial Position as membership fees and other receivables and were $1,914,750, $1,157,250 and $851,005 at June 30, 2021, 2020 and 2019, respectively.

Contract liabilities arise when the Organization receives payments from customers in advance of recognizing revenues. Contract liabilities included nonrefundable advance payments for fellows sponsored and are reported on the Statement of Financial Position in accounts and fellowship payables and were $1,249,002, $427,430 and $0 at June 30, 2021, 2020 and 2019, respectively.

NOTE O PRIOR PERIOD ADJUSTMENT

The Organization has restated the beginning net assets, without donor restrictions, as of July 1, 2019 from $178,646 to $789,218 to reflect adjustments to account payable. The result of this change for 2019 increased net position as of July 1, 2020 from ($174,822) to $435,750.

In addition, GEM has investments which may be drawn upon in the event of immediate liquidity need resulting from events outside the typical life cycle of converting financial assets or settling financial liabilities.

NOTE M PAYCHECK PROTECTION PROGRAM LOAN

In February 2021, GEM, received a Paycheck Protection Program loan from a local bank in the amount of $130,100. The loan was to be used for payroll, rent, utilities and other costs incurred in the 24-week period following receipt of the funds in accordance with the Paycheck Protection Program established under the Coronavirus Aid, Relief, and Economic Security Act.

The funds have accounted for under the FASB ASC 958-605 Conditional Contribution model. Although loan forgiveness has not been granted by the Small Business Administration (SBA) as of June 30, 2021, management determined that the conditions for forgiveness under the loan have been substantially met and therefore recognized the entire amount as income in the accompanying Statement of Activities.

In March 2022, the Organization received notification from the SBA that the loan was forgiven in full.

University Members

Arizona State University

Auburn University

Binghamton University

Boston University

Brown University

California Institute of Technology

Carnegie Mellon University

Case Western Reserve University

Clemson University

Colorado School of Mines

Columbia University

Cornell University

Curators of the University of Missouri

DePaul University

Drexel University

Duke University

Emory University

Florida International University

Florida State University

Georgia Institute of Technology

Harvard University

Howard University

Illinois Institute of Technology

Indiana University

Iowa State University

Johns Hopkins University

Lehigh University

Louisiana State University

Massachusetts Institute of Technology

Michigan State University

Michigan Technological University

Mississippi State University

Missouri University of Science and Technology

Morgan State University Foundation

New Jersey Institute of Technology

New York UniversityTandon School of Engineering

NMSU College of Engineering

Norfolk State University

North Carolina A&T State University

North Carolina State University

Northeastern University

Northwestern University

Old Dominion University

Oregon State University

Pennsylvania State University

Prairie View A&M University

Princeton University

Purdue University

Rensselaer Polytechnic Institute

Rice University

Rochester Institute of Technology

Rutgers University

Southern University / A&M College

Stanford University

Stevens Institute of Technology

Stony Brook University

Syracuse University

Texas A&M University

Texas Tech University

The City College of New York

The Ohio State University

Tufts University

Tulane University

Tuskegee University

University of Alabama

University of Alabama, Huntsville

University of Arizona

University of Arkansas

University of California, Berkeley

University of California, Los Angeles

University of California, Merced

University of California, Riverside

University of California, San Diego

University of California, Santa Barbara

University of California, Santa Cruz

University of Central Florida

University of Chicago

University of Cincinnati

University of Colorado Boulder

University of Connecticut

University of Delaware

University of Florida

University of Georgia

University of Houston

University of Illinois at Urbana-Champaign

University of Illinois Chicago

University of Iowa

University of Kansas

University of Kentucky

University of Maryland, Baltimore County

University of Maryland, College Park

University of Massachusetts, Amherst

University of Michigan

University of Minnesota

University of New Mexico

University of Notre Dame

University of Oklahoma

University of Pennsylvania

University of Pittsburgh

University of Puerto Rico, Mayaguez Campus

University of Rochester

University of South Carolina

University of South Florida

University of Southern California

University of Tennessee, Knoxville

University of Texas - Austin

University of Texas at Arlington

University of Texas at El Paso

The University of Texas at San Antonio

University of Virginia

University of Washington

University of Wisconsin, Madison

Vanderbilt University

Virginia Commonwealth University

Virginia Polytechnic Institute & State University

Wake Forest University

Washington State University

Washington University in Saint Louis

Worcester Polytechnic Institute

Yale University

Employer Members

Adobe

Advanced Micro Devices (AMD)

Aerospace Corporation CA

Amazon

Apple

Argonne National Laboratory

Arlo Technogolies

Brookhaven National Laboratory

Cadence Design Systems, Inc.

Cargill

Chevron Corporation

Colgate-Palmolive Company

Commonwealth Edison Company (ComEd)

Corning, Inc.

DOE-BTO

Draper Laboratory

ExxonMobil

Facebook

Fermi National Accelerator Laboratory

Ford Motor Company

General Motors Corporation

Georgia Tech Research Institute

Hess Corporation

Human Language Technology Center of Excellence (HLTCOE)

IBM Corporation

Idaho National Laboratory Institute for Defense Analyses

Alumni & General Giving

Over $1,000

Edward Garcia

Johney Green, Jr., PhD

Enrique Silva

Allyson Yarbrough

Andrew Robinson

Wayne Hewett

Karolyn Young

Araba Lamouse-Smith, PhD

HelpSystems

Tony and Cathy

Tarango-Flores

Jorge R. Leis, PhD

Sara Perkovic

Tim Archer

Intel Corporation

InterActiveCorp

John Hopkins U./Applied Physics Laboratory

Johnson & Johnson

Lam Research Corporation

Lawrence Berkeley National Laboratory

Lawrence Livermore

Lexmark International, Inc.

Los Alamos National Labatory

Medtronic, Inc.

MIT Lincoln Laboratory

MITRE Corporation

NASA Headquarters - Office of STEM Engagement

National Renewable Energy Laboratory

NOV Corporate

Oak Ridge National Laboratory

Owens Corning

Pacific Northwest National Laboratory

Princeton Plasma Physics Laboratory

Qualcomm, Inc.

Riverside Research

Sandia National Laboratories

SAP America Inc.

Space Exploration Corporation

Synopsys, Inc.

From $200 - $999

Hector G. Trevino

Neil Bomberger

Roderick Gee

Ernesto Morales-Perea

Terita Norton

Sonia Henry

Michael Matthews

Joleen White

Andres Esparza

Christopher Sanabria

Gerard Andrews

Rodney Bryant

Daniel Chenet

Kelley DuBois

Gerald T. Charles Jr.

Sara Perkovic

Frank Schimmoller

Lawrence Livermore

National Lab.

Wesley Thompson

Neil Bomberger

Tori L. Bailey

Wesley Thompson

James Garret PhD

William Albright

Kayleen Helms

Marilee Wheaton

Christopher Schroeder

Neil Bomberger

Alumni Association

Fund Donation

Andre Chase Randall

David Alexander

From $1 - $199

Kendall Parker

Hana Gabrielle Bidon

Raymond Daniels

Dmarkus Simpson

Latane Brackett

Diana Lopez

Amazon Smile Foundation

Kevin Mahoney

Pledgeling Fund

H Bryan Riley

Lauwanzer Quince

David Kluskiewicz

Sameer Hamdan

C Powell

Duke Energy Foun. Corp.

Ramon Accosta

Maria Diaz Figueroa

Megan Hamilton

Amelia Henderson

Jose Roman, PhD

Gabriel Sacripanti

Kimberly SinclairHolmes

Wesley Thompson

Mariangeli Zerbi

Romayne Botti

John R. Morales

Wesley,Thompson

Doherty Rosen Family Fund

Erick Jones PhD

Sameer Hamdan

Jomo L. McClean

Amazon Smile Foundation

Karl W. Reid Ed.D.

CHAIR

Tim Archer

President and CEO Lam Research

VICE CHAIR

Johney B. Green, Jr., PhD Associate Laboratory Director of Mechanical and Thermal Engineering Sciences National Renewable Energy Laboratory

VICE CHAIR

Felicia Benton - Johnson, EdD Assistant Dean, College of Engineering Director for the Center for Engineering Education and Diversity Georgia Institute of Technology

TREASURER

Anthony “TJ” Jackson Senior Engineer, Applied Physics Laboratory Johns Hopkins University

SECRETARY

Mark Vaughn, PhD Technical Talent Pipelining Manager Lead Technology Community Office of STEM Corning Incorporated

Sharnnia Artis, PhD

Assistant Dean & Director of the Center for Diversity in Engineering University of Virginia

Romayne Botti Vice Chancellor for Finance Rutgers University

Terrence Buck

Sr. Talent Acquisition Diversity Lead, Human Resources Idaho National Laboratory

Avery H. Demond, PhD Professor, Civil and Environmental Engineering University of Michigan

Sheri Depp Director, Global Talent Management Diversity, Community, and Corp Business Partners Lexmark International

James H. Garrett, PhD Provost, Technology Thomas Lord Professor, Civil and Env. Engineering Development Carnegie Mellon University

Percy Gilbert, PhD Vice President, Enterprise Systems Development and Flash/Memory IBM Corporation

Melvin Greer, PhD Senior Principal Engineer Chief Data Scientist Americas, Intel Corporation

Cordell Hardy

Senior Vice President 3M Corporate R&D Operations

Richard Harris

Assistant Dean, Academic Scholarship Northeastern University

Jorge Leis, PhD Parnter Bain & Company

Bruce Lindvall, PhD Assistant Dean of Graduate Studies, McCormick School of Engineering Northwestern University

Sara Perkovic, PhD Director, Adobe Research Adobe

GEM STAFF

Brennon Marcano

Chief Executive Officer

Sima Hassassian Chief Operation Officer

Marcus A. Huggans, PhD

Executive Director, Client Relations

Valerie D. Washington

Executive Assistant to the CEO

Jamie D. Hicks

Senior Manager, Accounting

Antonio Storey

Fellowship Manager

Joann Ransom

Program Coordinator, Internal Operations

Carrine Todman-Lewis

Client Relations Manager

Latane E. Brackett, CEFP, SSH Principal Manager, Innovation Programs, GEM I4

Talmesha Richards, PhD. Principal Manager, Innovation Relationships, GEM I4

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