2018-11-15T15:28:58-06:00 2018-06-30 420714325 RSM US LLP 1 S Wacker Drive Suite 800 Chicago IL 60606 990 2017-07-01 363930153 Music and Dance Theater Chicago Inc MUSI 3123347777 205 East Randolph Drive Chicago IL 60601 Patricia Barretto President and CEO 3123347777 2018-11-15 1 Zeljko Popovic P01795951 3126343400 108.171.131.186 2018-11-15 14:14:49 CS P F6217F2D6ED5C2D75B43E0AF4E216B671259B073 999F6C87408E00F59009FBF12446D70A71867BDA 2017 2019-02-21 02:37:17Z Harris Theater for Music and Dance Patricia Barretto 205 East Randolph Drive Chicago IL 60601 10792978 0 X www.HarrisTheaterChicago.org X 1993 IL See Schedule O 33 32 229 332 0 0 1638923 3799053 2435062 2859159 736912 898941 557528 429332 5368425 7986485 0 0 0 0 2874481 2805226 0 0 615368 6663127 7092192 9537608 9897418 -4169183 -1910933 71796250 67476128 24771604 22270288 47024646 45205840 X See Schedule O. 0 0 5943018 1071215 Resident Company Support and Capacity Building: Limited financial and administrative resources present challenges to the Harris Theater resident companies as they build the administrative capacity necessary for long-term sustainability. To address this need, the Harris Theater has developed a number of services and programs to empower non-profit companies to meet their varied artistic and institutional goals.During the 2017-18 season, the Harris continued to partner with resident companies, serving as a performance venue and providing subsidized rent and technical support, audience engagement support, capacity building programs, and opportunities for collaboration. During the 2017-18 season, 20 resident companies held 63 performances, reaching 48,000 audience members - roughly 47% of total attendance.The Theater provided all resident companies with a reduced non-profit rental rate, underwriting 68% of the actual daily usage costs. In addition, the Theater provided technical and production timeline counsel on each of its resident companies' performances and offered access to the International Alliance of Theatrical Stage Employees (I.A.T.S.E.) union sound designers, lighting designers, and stagehands to ensure companies maximized their artistic capabilities at the Theater.Marketing and promotional support resident companies includes personalized consultation meetings, phone calls, and emails with Harris marketing staff to discuss strategy, content development, e-communications, partnerships, and social media. Resident company performances are featured in direct mail and advertising campaigns, list trades, e-marketing efforts, press communications plans, and on the Harris Theater website. The Theater also deploys a reminder email to attendees of resident company events in order to ensure every patron understands ticketing, parking, and accessibility when they visit the Theater. The Harris Theater's Learning Lab provides resident companies with venue-specific resources to ensure they are able to maximize their rental of the Theater and professional development workshops. The Theater served 23 individuals from 10 resident companies through the 2017-18 Learning Lab series. The Committee on Resident Companies (CORC) meets quarterly to provide a forum for collective peer exchange among resident companies, Trustee representatives, and staff. Over four meetings in 2017-18, an average of 12 companies participated in each meeting, and 19 companies attended at least one meeting during the grant period. 2240155 1667669 Harris Theater Presents: The purpose of the Harris Theater Presents (HTP) series is to present extraordinary artists, ensembles, and performances which provide programming that uniquely complements Chicago's cultural offerings. HTP performances have a halo effect on resident company audience development efforts, provide an opportunity to collaborate artistically, in community engagement and master class settings and extend the Theater's mission through local and national visibility.The Harris Theater's fourteenth season welcomed an array international acts, groundbreaking dance, and classic music. The Theater welcomed 20,097 audience members to the Harris Theater Presents, Exelon Family Series, Beyond the Aria, and Mix at Six performance series. Leading performers included American Ballet Theatre, Mark Morris Dance Group with Silk Road Ensemble, John Eliot Gardiner, Christian Scott aTunde Adjuah, and Chamber Music Society of Lincoln Center. 336846 120275 Harris Theater Community Engagement:The Harris Theater's community engagement activities aim to build bridges between artists and youth and families from throughout the Chicago region, taking advantage of access to the world's leading musicians and dancers. Activities include Arts Education Partnerships and Access Tickets. In 2017-18, Harris worked with 31 community partners to provide access to the Theater's world class music and dance. 1. During the 2017-18 season, the Harris Theater worked with 25 community partners to disburse a total of 1,825 free tickets for children, students, and family members at 15 performances. Each opportunity was strategically aligned with partner organizations to ensure that content will enhance and contribute to their mission and programmatic goals.2. Arts Education Partnerships is a youth-artist education and mentoring program that provides aspiring teen artists with small-group engagement opportunities with visiting world-class artists performing at the Theater. Pre-professional opportunities for youth feature progressive levels of engagement, including master classes, collaborations, and observing artists in open rehearsals. These experiences are often paired with opportunities to attend performances through Access Tickets. During the 2017-18 season, the Harris Theater provided opportunities for 261 young people to connect with the world's leading musicians and dancers through 21 events, including 13 master classes and workshops, 1 open rehearsal, 4 lectures, and 3 youth performances. 8520019 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 56 0 1 229 1 0 0 0 0 0 1 1 0 0 0 0 X 33 32 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X Laura Hanssel 3123347777 205 East Randolph Drive Chicago IL 60601 Ms Alexandra C Nichols Chairman 20.00 X X 0 0 0 Ms Mary Kay Sullivan Executive Vice Chair 5.00 X X 0 0 0 Ms Elizabeth Hartigan Connelly Vice Chair 5.00 X X 0 0 0 Mr Peter M Ellis Vice Chair 5.00 X X 0 0 0 Ms Caryn Harris Vice Chair 5.00 X X 0 0 0 Dr Ricardo T Rosenkranz Vice Chair 5.00 X X 0 0 0 Ms Marilyn Fatt Vitale Secretary 5.00 X X 0 0 0 Mr David Snyder Treasurer 5.00 X X 0 0 0 Mr John W Ballantine Trustee 1.00 X 0 0 0 Ms Lee Blackwell Baur Trustee 1.00 X 0 0 0 Mr Paul S Boulis Trustee 1.00 X 0 0 0 Ms Louise Frank Trustee 1.00 X 0 0 0 Mr Jay Franke Trustee 5.00 X 0 0 0 Mr Robert J Gauch Jr Trustee 1.00 X 0 0 0 Ms Sandra P Guthman Trustee 5.00 X 0 0 0 Ms Joan W Harris Trustee 5.00 X 0 0 0 Ms Christine N Evans Kelly Trustee 1.00 X 0 0 0 Ms Deborah A Korompilas Trustee 1.00 X 0 0 0 Mr Jeffrey Korzenik Trustee 1.00 X 0 0 0 Ms Merrillyn J Kosier Trustee 1.00 X 0 0 0 Mr Mac MacLellan Trustee 1.00 X 0 0 0 Mr Michael McStraw Trustee (ex-officio) 1.00 X 0 0 0 Mr Zarin Mehta Trustee 1.00 X 0 0 0 Mr Kenneth R Norgan Trustee 1.00 X 0 0 0 Mr Gregory J O'Leary Trustee 1.00 X 0 0 0 Ms Abby McCormick O'Neil Trustee 5.00 X 0 0 0 Mr William Ruffin Trustee 1.00 X 0 0 0 Ms Shannon L Schuyler Trustee 1.00 X 0 0 0 Mr John Q Smith Trustee 1.00 X 0 0 0 Ms Susan Stark Trustee 1.00 X 0 0 0 Ms Dori Wilson Trustee 1.00 X 0 0 0 Ms Maria Zec Trustee 1.00 X 0 0 0 Ms Patricia Barretto President & CEO 40.00 X X 189043 0 18626 Ms Laura Hanssel Chief Financial Officer 40.00 X 173270 0 18927 Ms Lori Dimun Chief Operating Officer 40.00 X 133799 0 6930 Mr Jeffrey M Rollinson Head Carpenter/Union Steward 40.00 X 131597 0 47300 Mr Kevin D Sullivan Master Electrician 40.00 X 105582 0 37939 Mr Paul Organisak Former President & CEO 0.00 X 196215 0 7441 929506 0 137163 6 1 1 0 Turner Construction 55 E Monroe Suite 1430 Chicago IL 60603 Construction 501558 Midway Building Services Ltd 1915 W Hubbard Street Chicago IL 60622 Janitorial Services 354349 Ballet Theatre Foundation Inc 890 Broadway 3rd Floor New York NY 10003 Talent Manager 175000 Switchfast Technologies 4043 N Ravenswood Avenue 203 Chicago IL 60613 IT Consulting Services 114496 Knudsen Construction Inc 1440 Huntington Drive Calumet City IL 60409 Construction 112470 6 1001350 17600 2780103 192468 3799053 Theater Box Office 711190 1787944 1787944 Usage Fees 711190 1071215 1071215 2859159 440249 440249 572210 0 572210 572210 572210 3024217 2565525 458692 458692 458692 96500 1001350 240968 -144468 -144468 1590 1590 1590 7986485 2859159 0 1328273 X 399866 312637 37322 49907 1869638 1461782 174506 233350 126392 83406 26477 16509 237926 157008 49841 31077 171404 137248 13449 20707 8870 7983 887 41981 37783 4198 59430 53487 5943 1870093 1856459 13634 564104 491151 33630 39323 141912 118676 13186 10050 489136 440222 48914 298601 280844 6601 11156 699223 629301 69922 1641720 1477548 164172 254507 229056 25451 Repairs & Maintenance 853129 615677 59437 178015 Cultivation Events 26448 23803 2645 143038 105948 11816 25274 9897418 8520019 762031 615368 647053 1123519 17911 18031 6410543 4599676 61054 18737 8144 0 226897 122185 60434526 20940690 40804866 39493836 17880809 18633147 5564536 3297035 174437 169962 71796250 67476128 473191 337537 601810 567517 20000000 20000000 3000000 1000000 696603 365234 24771604 22270288 X 33193566 33102949 8331080 6602891 5500000 5500000 47024646 45205840 71796250 67476128 X -1910933 -196712 288839 X 0 1 X 1 0 X 11572557 4803036 3370878 1638923 3689053 25074447 11572557 4803036 3370878 1638923 3689053 25074447 10685471 14388976 779980 689906 1002139 975091 1012459 4459575 9168 488 6037 5377 1590 22660 29556682 13335202 0.48680 0.48740 X 5500000 186322 186322 5500000 5500000 520065 520065 5500000 5500000 -182052 -182052 5500000 5500000 -51094 -51094 5500000 500000 5000000 115422 115422 5500000 0.00000 1.00000 0.00000 1 0 58079313 18717265 39362048 2342961 2223425 119536 12252 12252 39493836 Fair Value of Swap Agreement 365234 365234 X 7835653 -196712 45880 -150832 7986485 0 7986485 9985828 45880 42530 88410 9897418 0 9897418 Part V, Line 4: The intended use of the organization's endowment funds is for general operating costs. Part X, Line 2: The Theater is a not-for-profit corporation as described in Section 501(c)(3) of the Internal Revenue Code (the Code) and is exempt from income taxes on related income pursuant to Section 501(a) of the Code. The accounting standard on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the Theater may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Examples of tax positions include the tax-exempt status of the Theater, the continued tax-exempt status of the bond issued by the Theater, and various positions related to the potential sources of unrelated business taxable income. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes and accounting in interim periods. At June 30, 2018 and 2017, management has determined that there are no uncertain tax positions. The Theater files annual information returns in the U.S. federal jurisdiction and the state of Illinois. The Theater is generally no longer subject to examination by the Internal Revenue Service for tax years before 2014. Part XII, Line 2d - Other Adjustments: Rescinded Pledge 42,530. Gala 1097850 1001350 96500 79247 68316 93405 1097850 1001350 96500 79247 68316 93405 240968 -144468 X X X X 1 0 0 0 0 0 0 1 0 Ms Patricia Barretto President & CEO 189043 0 0 0 0 0 8083 0 10543 0 207669 0 0 0 Ms Laura Hanssel Chief Financial Officer 163270 0 10000 0 0 0 7540 0 11387 0 192197 0 0 0 Mr Jeffrey M Rollinson Head Carpenter/Union Steward 131597 0 0 0 0 0 17108 0 30192 0 178897 0 0 0 Mr Paul Organisak Former President & CEO 78159 0 0 0 118056 0 3147 0 4294 0 203656 0 0 0 Part I, Line 4a Paul Organisak, former President and Chief Operating Officer, received $118,056 as severance compensation in calendar year 2017. Part I, Line 7 The bonus payment received by Laura Hanssel is non-fixed and discretionary in nature. The bonus is awarded on the basis of a merit system as reviewed by the President of the Theater. Bonus payments are not guaranteed or contracted. A Illinois Finance Authority 861091967 45200BLT3 2005-05-11 20000000 Refinance of construction loan payable 0 0 0 A 20000000 371884 19628116 2005 0 0 1 1 A 0 0 0 0 1 0 0 A 0 0 0 0 1 0 0 0 0 A 0 X 7 97328 FMV X Airfare 1 50000 Selling Price of don X Hotel Lodging 1 45140 FMV 0 0 0 0 Part I, Column (b): is the number of contributions and the number of items received. Form 990, Part I, Line 1: Description of Organization's Mission: The mission of the Harris Theater is to be Chicago's primary residence for music and dance, connecting diverse audiences with outstanding artists from across the city, the nation, and the world. The Theater supports this mission through three strategies: support for local music and dance companies, presentation of national and international artists, and community engagement and educational programs. Today, the Harris Theater's original group of 12 resident companies has grown to include roughly 30 diverse music and dance companies, including Chicago Gay Men's Chorus, Chicago Symphony Orchestra's MusicNow, Giordano Dance Chicago, Hubbard Street Dance Chicago, and Music of the Baroque. The Theater supports resident companies with subsidized rental, technical expertise, marketing support, and professional development opportunities, allowing the organizations to focus on what they do best - bringing the finest in music and dance performances to the public. The Harris Theater is also dedicated to presenting the highest quality artistic programming, bringing celebrated artists and ensembles from throughout the world to Chicago through the Harris Theater Presents series. The Theater has achieved widespread recognition as a vital cultural anchor in Chicago, bringing artists such as Daniel Barenboim, Mikhail Baryshnikov, Joshua Bell, Renee Fleming, Angelique Kidjo, Hamburg Ballet, Paris Opera Ballet, and Stephen Sondheim to the Elizabeth Morse Genius Stage. The Harris Theater's community engagement initiatives take advantage of access to the world's leading musicians and dancers, building bridges to people from throughout the Chicago region and nurturing the next generation of artists and audiences. Ongoing programs include Arts Education Partnerships, which offers master classes and artist talks, and Access Tickets, which has provided over 13,000 free tickets to youth and families from more than 35 partner organizations. Form 990, Part VI, Section A, line 2 Joan W. Harris and Louise Frank have a family relationship. Form 990, Part VI, Section B, line 11b On September 20, 2018 the Board of Trustees of the Harris Theater approved a resolution that, with the Fiscal year ended June 30, 2018, gives the Audit Committee of the Board the authority to review the federal Form 990 and Illinois Form AG990-IL on the Board's behalf. On November 1, 2018, the Audit committee of the Board of Trustees met with representatives of RSM US LLP, who prepared the Form 990 and conducted that review. The extent of that review includes covering key issues. The complete Form 990 was then made available to all Board members who had ample time to review, ask question and/or suggest revisions before the Form 990 was filed with the IRS. Form 990, Part VI, Section B, line 12c Music and Dance Theater Chicago, Inc.'s ("MADTC") conflict of interest policy addresses transactions and arrangements involving MADTC's trustees, officers and any other managers or supervisors identified by the Board of Trustees or the President as exercising substantial influence over the operations of MADTC ("Covered Persons"). Each Covered Person upon becoming such shall prepare, sign and submit a Conflict of Interest Questionnaire. In addition, each Covered Person shall promptly and fully disclose all material facts of every actual or potential conflict of interest: (I) That arises while he/she is a Covered Person, at the time such actual or potential conflict arises; and; (II)Annually by preparing, signing and submitting a Conflict of Interest Questionnaire. All disclosures involving a transaction or arrangement being considered at a meeting of the Board of Trustees or of a board committee shall be made to all members present at such meeting. All other disclosures shall be made to the President (who shall disclose his or her conflicts to the Board of Trustees). A Covered Person who is in doubt as to the existence of a conflict of interest is encouraged to disclose all facts pertaining to the transaction or arrangement before undertaking the transaction or arrangement or making any decision in the matter. Each Covered Person shall sign a statement acknowledging that he or she has received a copy of this Policy, has read and understands it, and agrees to comply with it. If the Board of Trustees has reasonable cause to believe that a Covered Person has failed to comply with this Policy, the Board may counsel the Covered Person regarding such failure and, if the issue is not resolved to the Board's satisfaction, may consider additional corrective action as appropriate. Conflict of interest information is collected annually and throughout the year when new trustees come on. Form 990, Part VI, Section B, line 15 With respect to compensation of the CEO/Executive Director on an ongoing basis, post-hiring, the Board of Trustees has delegated overall responsibility for establishing such compensation to the Executive Committee. To carry out this assignment, the Executive Committee utilizes an ad hoc compensation sub-committee ("the compensation sub-committee"), consisting of former and current Board Chairs, along with board members bearing special expertise in the area of compensation, to review and determine the compensation of the CEO/Executive Director. To determine the compensation of the CEO/Executive Director, the compensation sub-committee has successfully employed a number of tools and resources, including without limitation, a review of compensation for similar positions at similar organizations, drawing upon data from Form 990's for such organizations; the compensation committee, as a matter of policy, retains the option of utilizing independent compensation consultants and compensation surveys or studies, when it determines that it is appropriate to supplement data from other resources. Each year, the compensation sub-committee reviews the compensation of the CEO/Executive Director in conjunction with the review of the performance of the CEO/Executive Director, including accomplishments, achievement of goals, and opportunities for improvement. After the completion of such review, the compensation sub-committee reports its findings and recommendations to the Executive Committee, which then determines the compensation of the CEO/Executive Director for the ensuing year. At the beginning of each fiscal year, the Board Chair reports to the Board of Trustees the actions taken by the Executive Committee. Form 990, Part VI, Section C, line 19 The Theater makes its governing documents, conflict of interest policy, and financial statements available to the public upon request for the same period of disclosure as set forth in section 6104(d). In addition, the Theater participates in the Cultural Data Project which provided detailed information on the organization, including financial data. The Theater applies for numerous grants from foundations as well as governmental bodies and provides such documents in that application process. Web sites such as GuideStar also have relevant documents of the theater. Form 990, Part IX, line 11g Artist Fee: Program service expenses 1,733,755. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,733,755. Consulting: Program service expenses 122,704. Management and general expenses 13,634. Fundraising expenses 0. Total expenses 136,338. Form 990, Part XI, line 9: Change in Unrealized Gain on Swap Agreement 331,369. Rescinded Pledge -42,530.