2016-05-13T16:03:33-05:00 2015-06-30 420714325 RSM US LLP 1001 LAKESIDE AVE SUITE 200 CLEVELAND OH 441141152 990 2014-07-01 340714468 The Musical Arts Association MUSI 2162317300 11001 Euclid Avenue Cleveland OH 44106 James E Menger Chief Financial Officer 2162317300 2016-05-13 1 Zachary Fortsch P00052725 2165231900 2014 2016-08-17 19:52:53Z The Cleveland Orchestra Gary Hanson 11001 Euclid Avenue Cleveland OH 44106 90085910 0 X www.clevelandorchestra.com X 1925 OH The core purpose of The Musical Arts Association is to provide inspirational experience by serving the art of music at the highest level of artistic excellence. 82 82 583 1313 4344 3344 32485702 38170766 15606593 17033698 9410850 10733431 576930 95070 58080075 66032965 0 0 0 0 32229226 32813473 290726 274162 2462405 18783268 20076795 51303220 53164430 6776855 12868535 263855365 270523784 65000284 70291874 198855081 200231910 X The core purpose of The Musical Arts Association is to provide inspirational experience by serving the art of music at the highest level of artistic excellence. The Musical Arts Association operates The Cleveland Orchestra, Severance Hall, and Blossom Music Center. 0 0 23761292 8101917 Severance Hall and Northeast Ohio:Franz Welser-Most's thirteenth season as music director coincided with hosting the annual national conference of the League of American Orchestras for the first time in Cleveland, at which 1,000 staff members and musicians from orchestras across North America met to share and exchange ideas and solutions, and to learn firsthand of Cleveland's successes. During the 2014-15 season, the Orchestra performed 101 concerts at Severance Hall. These performances included 65 regular subscription concerts, plus the annual Holiday Festival in December, three At the Movies presentations, the Summers@Severance series, and Family Concert series, plus weekday Education Concerts. The Orchestra's annual Gala benefit evening took place on October 11, 2014, featuring pianist Lang Lang performing with the Orchestra and raising funds in support of the institution's education and community programs. All together, these Severance Hall concerts drew in just over 163,500 total admissions. Overall, attendance rose for the 2014-15 season and ticket revenue increased to a new record, achieved not through higher ticket prices but through sales of more tickets to an expanding number of people and households from across the region. 7887037 2543071 Blossom Festival:The Orchestra's 2014 Blossom Music Festival featured 18 concerts across nine weekends in July and August, including 15 by The Cleveland Orchestra. The summer featured five concerts when each evening's attendance topped 10,000 concertgoers, including a performance with Yo-Yo Ma and a Beatles Tribute concert, which garnered record-breaking ticket revenue. The Festival saw unprecedented per concert attendance, averaging a record-breaking statistic of just over 7,000 average admissions for each performance, with total admissions of 126,900. The summer also featured 19 non-Festival concert performances and 6 other events hosted by LiveNation, which operates Blossom Music Center for the Musical Arts Association. 9681903 3603757 Tours and Residencies:Franz Welser-Most led The Cleveland Orchestra on its 2014 European Tour and Vienna Residency in September 2014. This was their fourteenth international tour together and centered on musical works by Johannes Brahms and Jorg Widmann, including an all-Widmann performance as part of the Berlin Festival. Concerts were also presented at the BBC Proms in London, and the Lucerne Festival, and in Linz, Paris, Amsterdam, and Vienna. One concert in London and one in Vienna, featuring symphonies by Brahms, were recorded for future broadcast and DVD release. The tour featured six performances of Widmann's flute concerto, Flute en suite, with Cleveland's principal flute Joshua Smith, who premiered the work in 2011.The Cleveland Orchestra returned to Miami for its ninth season of concerts, presented under the name Cleveland Orchestra Miami in collaboration with the Miami Music Association. The season's subscription concerts, presented in partnership with Miami's Adrienne Arsht Center for the Performing Arts of Miami-Dade County, drew over 14,800 in paid admissions across four weekends, led by Franz Welser-Most and by Miami principal guest conductor Giancarlo Guerrero. As part of each Cleveland Orchestra Miami season, the Orchestra presents a variety of community and education programs. Free Education Concerts for Miami-Dade County public school students, Musical Rainbow concerts for young children, and various after-school programs, mentoring sessions, and masterclasses for college students served just over 7,000 students in 2014-15. In 2015, the Miami residency's community offerings also included Cleveland Orchestra Miami "Connects" with South Miami-Dade, an initiative to engage with communities surrounding the county's performing arts center in Cutler Bay. Over 1,000 residents took part in this community partnership, which featured two Musical Rainbows at elementary schools and coaching sessions by Cleveland Orchestra musicians at Coral Reef Senior High School. The initiative culminated with a sold-out free community concert on March 4, 2015. 4046714 2784953 Education and Other:The Cleveland Orchestra's Education and Community programs served over 103,810 individuals during the 2014-2015 season. Education programs included Education and Family Concerts at Severance Hall; Youth Orchestra and Youth Chorus programs; in-school concerts at area schools; in-school teaching partnerships with elementary and pre-schools; teacher workshops; master classes, open rehearsals, and a ticket discount program for college students; as well as concert previews and music study groups for adult learners. Free community concerts included a July 4th concert in downtown Cleveland and a Martin Luther King, Jr. Celebration Concert at Severance Hall. The "Slavic Village" Neighborhood Residency included free concerts, in-school partnerships and other community activities. 4046714 2784953 45376946 1 1 0 1 0 0 0 0 0 1 1 1 0 0 0 1 1 0 0 0 1 0 0 1 1 0 0 0 0 1 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 225 0 1 583 1 1 1 1 AU 0 0 0 1 1 0 0 0 0 X 82 82 1 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 OH X James E Menger 2162317300 11001 Euclid Avenue Cleveland OH 44106 Dennis W LaBarre President & Resident Trustee 13.00 X X 0 0 0 Richard J Bogomolny Chairman & Resident Trustee 13.00 X X 0 0 0 The Honorable John D Ong Vice President & Resident Trustee 3.00 X X 0 0 0 Norma Lerner Honorary Chair & Resident Trustee 3.00 X X 0 0 0 Hewitt B Shaw Secretary & Resident Trustee 3.00 X X 0 0 0 Beth E Mooney Treasurer & Resident Trustee 3.00 X X 0 0 0 Dr Jeanette Grasselli Brown Resident Trustee 2.00 X 0 0 0 Matthew V Crawford Resident Trustee 2.00 X 0 0 0 Alexander M Cutler Resident Trustee 2.00 X 0 0 0 David J Hooker Resident Trustee 2.00 X 0 0 0 Michael J Horvitz Resident Trustee 2.00 X 0 0 0 Douglas A Kern Resident Trustee 2.00 X 0 0 0 Virginia M Lindseth Resident Trustee 2.00 X 0 0 0 Alex Machaskee Resident Trustee 2.00 X 0 0 0 Nancy W McCann Resident Trustee 2.00 X 0 0 0 John C Morley Resident Trustee 2.00 X 0 0 0 Larry Pollock Resident Trustee 2.00 X 0 0 0 Alfred M Rankin Jr Resident Trustee 2.00 X 0 0 0 Audrey Gilbert Ratner Resident Trustee 2.00 X 0 0 0 Barbara S Robinson Resident Trustee 2.00 X 0 0 0 George N Aronoff Resident Trustee 1.00 X 0 0 0 Dr Ronald H Bell Resident Trustee 1.00 X 0 0 0 Charles P Bolton Resident Trustee 1.00 X 0 0 0 Helen Rankin Butler Resident Trustee 1.00 X 0 0 0 Scott Chaikin Resident Trustee 1.00 X 0 0 0 Paul G Clark Resident Trustee 1.00 X 0 0 0 Owen M Colligan Resident Trustee (thru 06/03/2015) 1.00 X 0 0 0 Robert D Conrad Resident Trustee 1.00 X 0 0 0 Dr Hiroyuki Fujita Resident Trustee 1.00 X 0 0 0 Paul G Greig Resident Trustee 1.00 X 0 0 0 Robert K Gudbranson Resident Trustee 1.00 X 0 0 0 Iris Harvie Resident Trustee 1.00 X 0 0 0 Jeffrey A Healy Resident Trustee 1.00 X 0 0 0 Stephen H Hoffman Resident Trustee 1.00 X 0 0 0 Marguerite B Humphrey Resident Trustee 1.00 X 0 0 0 David P Hunt Resident Trustee 1.00 X 0 0 0 Christopher Hyland Resident Trustee 1.00 X 0 0 0 James D Ireland III Resident Trustee (thru 01/20/2015) 1.00 X 0 0 0 Trevor O Jones Resident Trustee 1.00 X 0 0 0 Betsy Juliano Resident Trustee 1.00 X 0 0 0 Jean C Kalberer Resident Trustee 1.00 X 0 0 0 Nancy F Keithley Resident Trustee 1.00 X 0 0 0 Christopher M Kelly Resident Trustee 1.00 X 0 0 0 John D Koch Resident Trustee 1.00 X 0 0 0 S Lee Kohrman Resident Trustee 1.00 X 0 0 0 Charlotte R Kramer Resident Trustee 1.00 X 0 0 0 Robert P Madison Resident Trustee (thru 12/2/2014) 1.00 X 0 0 0 Milton S Maltz Resident Trustee 1.00 X 0 0 0 Thomas F McKee Resident Trustee 1.00 X 0 0 0 Donald W Morrison Resident Trustee 1.00 X 0 0 0 Margaret Fulton Mueller Resident Trustee 1.00 X 0 0 0 Gary A Oatey Resident Trustee 1.00 X 0 0 0 Katherine T O'Neill Resident Trustee 1.00 X 0 0 0 Clara T Rankin Resident Trustee 1.00 X 0 0 0 Charles A Ratner Resident Trustee 1.00 X 0 0 0 James S Reid Jr Resident Trustee (thru 12/2/2014) 1.00 X 0 0 0 Zoya Reyzis Resident Trustee (as of 12/02/2014) 1.00 X 0 0 0 Paul A Rose Resident Trustee 1.00 X 0 0 0 Steven M Ross Resident Trustee 1.00 X 0 0 0 Raymond T Sawyer Resident Trustee 1.00 X 0 0 0 Luci Schey Resident Trustee 1.00 X 0 0 0 Richard K Smucker Resident Trustee 1.00 X 0 0 0 James C Spira Resident Trustee (as of 12/02/2014) 1.00 X 0 0 0 R Thomas Stanton Resident Trustee 1.00 X 0 0 0 Joseph F Toot Jr Resident Trustee (as of 12/02/2014) 1.00 X 0 0 0 Daniel P Walsh Resident Trustee 1.00 X 0 0 0 Thomas A Waltermire Resident Trustee 1.00 X 0 0 0 Geraldine B Warner Resident Trustee 1.00 X 0 0 0 Jeffrey J Weaver Resident Trustee (as of 12/02/2014) 1.00 X 0 0 0 Jeffrey M Weiss Resident Trustee 1.00 X 0 0 0 Norman E Wells Resident Trustee 1.00 X 0 0 0 Paul E Westlake Jr Resident Trustee 1.00 X 0 0 0 David A Wolfort Resident Trustee 1.00 X 0 0 0 Virginia Nord Barbato Non-Resident Trustee 1.00 X 0 0 0 Wolfgang C Berndt Non-Resident Trustee 1.00 X 0 0 0 Laurel Blossom Non-Resident Trustee 1.00 X 0 0 0 Richard C Gridley Non-Resident Trustee 1.00 X 0 0 0 Loren W Hershey Non-Resident Trustee 1.00 X 0 0 0 Herbert Kloiber Non-Resident Trustee 1.00 X 0 0 0 Ludwig Scharinger Non-Resident Trustee 1.00 X 0 0 0 Faye A Heston Trustee Ex-Officio 1.00 X 0 0 0 Shirley B Dawson Trustee Ex-Officio 1.00 X 0 0 0 Claire Frattare Trustee Ex-Officio 1.00 X 0 0 0 Carolyn Dessin Trustee Ex-Officio 1.00 X 0 0 0 Beverly J Warren Trustee Ex-Officio (as of 7/1/2014) 1.00 X 0 0 0 Barbara R Snyder Trustee Ex-Officio 1.00 X 0 0 0 James E Menger Asst Treasurer/CFO 50.00 X 237156 0 31050 Rosemary Klena Assistant Secretary/Admin. Assistant 45.00 X 63839 0 15794 Gary Hanson Executive Director 60.00 X 476104 0 153199 William Warren Preucil Musician 40.00 X 466379 0 34776 Franklin Cohen Musician 40.00 X 253005 0 27957 Joshua S Smith Musician 40.00 X 266036 0 21949 Richard King Musician 40.00 X 242032 0 27374 Michael Sachs Musician 40.00 X 242305 0 31075 2246856 0 343174 114 0 1 0 Franz Welser-Most 11001 Euclid Avenue Cleveland OH 44106 Music Directing 1248711 Opus 3 Artists 470 Park Avenue South New York NY 10016 Artist performances 660275 Consolidated Solutions Inc 1614 East 40th Street Cleveland OH 44103 Printing & design 620432 Marriott Business Services PO Box 402642 Atlanta GA 30384 Hotel 388033 Artsmarketing Services Inc 260 East King Street Toronto Ontario CA M5A 4L5 Telefundraising/ Marketing 374690 31 588281 2933622 34648863 2083826 38170766 Concert Revenue 711130 15937291 15937291 Hall Income 711130 711289 613550 97739 Broadcasting/Recording 711130 385118 385118 17033698 9192022 9192022 25022863 23481454 1541409 1541409 1541409 461850 588281 461850 0 200367 109641 90726 90726 Glidden House Partners, Ltd 721000 4344 4344 4344 66032965 16935959 4344 10921896 977142 977142 24823752 22260904 1288621 1274227 3115511 2623707 449157 42647 2307573 1859537 297105 150931 1589495 1368968 137346 83181 526440 478856 47584 133378 133378 108877 108877 100000 100000 274162 274162 541986 541986 3923702 3923702 1856104 1856104 725874 304006 284743 137125 285137 140177 144960 149806 149806 1203844 1180026 6876 16942 3550966 3520363 6614 23989 286565 75028 185829 25708 150661 150661 2057301 1645841 205730 205730 81854 81854 Direct Concert Expenses 3042474 3042474 Other Admin. Expenses 976087 571708 176616 227763 Media Expenses 375739 375739 53164430 45376946 5325079 2462405 32967 30793 16427657 12699045 40900373 37471609 817313 1023811 87594 48669 434400 518396 297882 282228 4244052 4196728 76736607 35215310 41776759 41521297 123661445 135226255 35174923 37504953 263855365 270523784 31800897 35508750 5049387 6633124 28150000 28150000 65000284 70291874 X 29227442 24882761 31695808 34735365 137931831 140613784 198855081 200231910 263855365 270523784 X 12868535 -5302286 -6189420 X 0 1 X 1 0 X 34099383 28447837 37569213 32485702 38170766 170772901 34099383 28447837 37569213 32485702 38170766 170772901 5310298 165462603 2101533 2415573 2463600 2410576 9192022 18583304 6528 306 4511 6611 4344 22300 189378505 68852374 0.87370 0.88560 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 0 0 1 100 0 0 1 400 0 1 100000 100500 0 Part II-B, Line 1: All activities regarding lobbying activities concentrated on legislative matters only. Direct contact with legislators, their staffs, government officials or legislative bodies by The Musical Arts Association volunteers, employees, trustees, or legal counsel occurred via telephone or an occasional meeting. 178358000 9152000 4953000 7730000 184733000 156907000 6777000 21984000 0 7310000 0 178358000 140545000 6322000 17227000 0 7187000 0 156907000 145322000 4379000 170000 0 9326000 0 140545000 122581000 11582000 20256000 0 9097000 0 145322000 0.22000 0.73000 0.05000 1 0 7802724 7802724 61067821 31237407 29830414 7866062 3977903 3888159 41521297 ABSOLUTE RETURN EQUITY FUND 19566547 F HEDGED EQUITY FUND 13792221 F CHARITABLE PERPETUAL TRUSTS 4146185 F 37504953 X 61322463 -5302286 24637 571491 -4706158 66028621 4344 4344 66032965 59945634 24637 6756567 6781204 53164430 0 53164430 Part V, Line 4: Unrestricted endowment assets consist of funds which have been designated by the Board of Trustees to function as endowment and for which the use of income is not governed by donor-imposed restrictions. Term or temporarily restricted endowments are subject to donor-imposed restrictions that will be met by actions of The Musical Arts Association and/or passage of time. Permanent endowments are subject to donor-imposed restrictions that require the assets be maintained in perpetuity. The use of income and any related appreciation may be subject to restriction by the donor. Part X, Line 2: The Association has been recognized by the Internal Revenue Service as an organization exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code. The Association is a public charity by reason of being described in Internal Revenue Code Section 170(b)(l)(A)(vi). The Association is exempt from federal income taxes except to the extent of income derived from unrelated business activities. Unrelated business income is not material to the financial statements. The Association completed an analysis of its tax positions, in accordance with Accounting Standards Codification (ASC) 740, Income Taxes and determined that no amounts were required to be recognized in the financial statements at June 30, 2015 and 2014. With few exceptions, the Association is no longer subject to examination by the Internal Revenue Service for years ending before 2012. Part XI, Line 2d - Other Adjustments: Cost of goods sold netted against revenue 109,641. Fundraising expenses netted against revenue 461,850. Part XI, Line 4b - Other Adjustments: Partnership Income 4,344. Part XII, Line 2d - Other Adjustments: Cost of goods sold netted against revenue 109,641. Fundraising expenses netted against revenue 461,850. Pension Plan Liability Adjustment 6,185,076. Europe (Including Iceland & Greenland) 0 0 Fundraising 64214 Europe (Including Iceland & Greenland) 0 0 Program Services Foreign Tour 2043575 0 0 0 0 0 0 2107789 0 2107789 0 0 0 0 0 0 Part I, line 3: Foreign touring expenses are recorded on the accrual basis of accounting in The Musical Arts Association's financial books. X X X X X X X 1 Artsmarketing Services 260 E King St Toronto CA M5A 4L5 Telefunding 0 751962 266077 485885 751962 266077 485885 FL OH Sev Hall Gala 1050131 588281 461850 461850 1050131 588281 461850 461850 461850 0 Schedule G, Part I, Line 2b, Column (v) The Professional fundraising agreement with Artsmarketing Services, Inc. stipulates that payments made are for professional fundraising services ($266,077) based upon the agreed upon revenue rate and reimbursement for campaign materials ($3,675). X X 1 1 X X X 0 1 0 0 0 0 0 0 0 James E Menger Asst Treasurer/CFO 192324 0 0 0 44832 0 10559 0 20491 0 268206 0 0 0 Gary Hanson Executive Director 470331 0 0 0 5773 0 135557 0 17642 0 629303 0 0 0 William Warren Preucil Musician 466379 0 0 0 0 0 19172 0 15604 0 501155 0 0 0 Franklin Cohen Musician 241305 0 0 0 11700 0 22256 0 5701 0 280962 0 0 0 Joshua S Smith Musician 266036 0 0 0 0 0 11770 0 10179 0 287985 0 0 0 Richard King Musician 242032 0 0 0 0 0 11770 0 15604 0 269406 0 0 0 Michael Sachs Musician 242305 0 0 0 0 0 15471 0 15604 0 273380 0 0 0 Part I, Line 1a Charter Travel: The Cleveland Orchestra, on occasion, travels via charter flights when necessary to fulfill foreign or domestic tour concert scheduling requirements. Charter travel is not included in taxable compensation because commercial flights are not always available for domestic and international travel. Travel for Companions: The Executive Director's spouse occassionally travels with him attending concerts and other tour specific functions at the expense of the Musical Arts Association. Companion travel is not included in taxable compensation of the Executive Director in accordance with IRS rules and regulations. Part I, Line 4b The Musical Arts Association contributed $121,479 to a supplemental nonqualified retirement plan for Gary Hanson, Executive Director. Part II Compensation & Fringe Benefits: The compensation and fringe benefits listed for James E. Menger are attributable to his status as a full-time employee of The Musical Arts Association. A County of Cuyahoga Ohio 346000817 232263CE1 2004-01-02 28150000 See Sch K, Part Vi 0 0 0 A 28181772 325105 889523 26967144 2004 1 0 1 1 A 0 0 1 1 0 0.00000 0.03100 0.03100 0 0 1 A 0 0 1 0 1 0 0 0 1 A 1 Schedule K, Part I, Column (f) - Description of Purpose of Bonds Proceeds from The County of Cuyahoga, Ohio Economic Development Revenue Refunding Bonds, Series 2003 Issuance were used to redeem The County of Cuyahoga, Ohio Economic Development Revenue Bonds, Series 1998, due April 1, 2028. The proceeds from the Series 1998 issuance funded certain costs associated with the renovation, expansion and restoration of Severance Hall, The Musical Arts Association's concert hall and principal offices. JAMES E MENGER CFO See Pt V - Retention for multi-year period X 75000 26794 0 1 1 JAMES E MENGER CFO See Pt V - Retention for multi-year period X 61250 21875 0 1 1 48669 X 115 2083826 Cost/Selling price 0 0 1 0 Part I, Column (b): The organization is reporting the number of contributions made. Form 990, Part VI, Section A, line 2 The following Board members have family relationships: Alfred M. Rankin, Jr. and Clara T. Rankin Alfred M. Rankin, Jr. and Helen Rankin Butler Clara T. Rankin and Helen Rankin Butler Charles A. Ratner and Audrey Gilbert Ratner Form 990, Part VI, Section A, line 6 Membership in The Musical Arts Association ("ASSOCIATION") consists of two classes: (1) Voting Members and (2) Sustaining Members. The term "MEMBERS" shall refer only to Voting Members, unless otherwise specifically designated. The Voting Members consist of individuals who, from time to time, are serving as the Trustees of the ASSOCIATION. Sustaining members serve annually for a term of one year on the basis of having paid such level of annual financial support to the Association as the Board of Trustees may, from time to time, prescribe. Sustaining members shall be entitled to notice of, and to attend, the annual meeting. Form 990, Part VI, Section A, line 7a The Voting Members shall exercise all the rights and privileges and shall have all the responsibilities of MEMBERS under Ohio nonprofit corporate law. Only Voting Members shall be counted as MEMBERS for voting and quorum purposes. Sustaining members shall not be counted as MEMBERS for voting and quorum purposes. Form 990, Part VI, Section A, line 7b The Board of Trustees shall have general supervision and charge of the property, affairs and finances of the ASSOCIATION. The Board of Trustees may exercise all such powers and do all such things as may be exercised or done by the ASSOCIATION, subject to the provision of law, the articles of incorporation and the code of regulations. Without limiting the generality of the foregoing, the Board of Trustees shall have the following powers: (A) To purchase or otherwise acquire for the ASSOCIATION any property, rights or privileges that the ASSOCIATION is authorized to acquire, at such prices, on such terms and conditions, and for such consideration as it shall see fit, (B) To appoint, remove or suspend, such officers, agents, and employees as it shall see fit, either permanently or temporarily, to terminate the duties of such officers, agents and employees, to change the salaries or emoluments of such officers, agents and employees, (C) To appoint any person or persons to accept or hold in trust for the ASSOCIATION any property belonging to the ASSOCIATION or in which the ASSOCIATION is interested, or for any other purpose, and to execute and do all such duties and things as may be required in relation to any such trust, (D) To determine who shall be authorized to sign, on the ASSOCIATION's behalf, bills, notes, receipts, acceptances, endorsements, checks, leases, releases, mortgages, contracts and other documents, and (E) To present or cause to be presented to each annual meeting and to any special meeting, when required by any resolution thereof, a full and clear statement of the affairs and conditions of the ASSOCIATION. Form 990, Part VI, Section B, line 11 MAA Finance Department supplies all of the information necessary for RSM US LLP to prepare a draft Form 990. The Form 990 is then updated for any agreed upon revisions. The updated Form 990 is circulated to the Audit Committee, with any suggested revisions that weren't agreed upon so noted. At the same time, the Musical Arts Association Trustees are notified that the draft Form 990, in public disclosure form, is available for their review. Trustees are invited to submit any comments they have on the draft Form 990 to Finance Department staff, who will summarize and distribute them to the Audit Committee. The Audit Committee then meets and reviews and discusses the draft Form 990, including the complete Schedule of Contributors (Schedule B), with Management and RSM US LLP. Once final, the Form 990, in public disclosure form, is made available to Musical Arts Association Trustees, and then it is filed with the Internal Revenue Service. Form 990, Part VI, Section B, line 12c Voting members, trustees and committee members (collectively "TRUSTEES"), officers, and senior management of The Musical Arts Association (ASSOCIATION) are covered under the conflict of interest policy. Documented procedures are in place for handling potential conflicts of interest (1) when a transaction or arrangement is considered by the Board or a committee and (2) when a transaction or arrangement is considered by an officer or senior manager. Also, procedures are in place for identification of potential conflicts of interest in connection with Musical Arts Association transactions or arrangements with trustees, officers, or senior managers (i.e. parties-in-interest) where the following relationships exist (1) Parties-in-interest are employed by or have a compensation relationship with the person or entity with which the ASSOCIATION has or is negotiating a transaction or arrangement, (2) Parties-in-interest serve in the capacity of Director, Trustee, Officer, Member, Manager, Committee member, Partner, or other similar position of influence with a for-profit person or entity with which the ASSOCIATION has or is negotiating a transaction or arrangement, and (3) Parties-in-interest have an actual or potential ownership or investment interest in a person or entity with which the ASSOCIATION has or is negotiating a transaction or arrangement. Parties-in-interest are required to submit to the ASSOCIATION an annual statement acknowledging receipt and review of the conflict of interest policy and disclosure of potential conflicts of interest. When a Trustee, Officer, or Senior Manager is participating in the consideration of a transaction or other arrangement of the ASSOCIATION by the Board of Trustees or a Board committee, and a potential conflict of interest exists, with respect to such transaction or other arrangement, the Trustee, Officer, or Senior Manager (1) shall disclose to the Trustees or Committee thereof considering the transaction or other arrangement his or her potential conflict of interest, (2) shall present any relevant information to the Trustees or Committee thereof and answer any questions posed by them, and (3) shall excuse himself or herself from the meeting for the discussion and vote by the disinterested trustees or committee members on the transaction or arrangement and all matters related thereto. When an officer or a Senior Manager is handling a transaction or other arrangement of the ASSOCIATION that will not be placed before the Board or a Board Committee, and the Officer or senior Manager has a potential conflict of interest, the Officer or Senior Manager (1) shall disclose the potential conflict of interest to the ASSOCIATION's Executive Director, in the case of a Senior Manager, or to the Executive Committee, in the case of an Officer, (2) shall present any relevant information to, and answer any questions posed by, the Executive Director or the Executive Committee, and (3) shall not authorize or approve such transaction or other arrangement, and the authorization or approval shall be undertaken by the Executive Director or the Executive Committee. When the Senior Manager with the potential conflict is the Executive Director, the foregoing procedures shall be followed except that the ASSOCIATION's President shall assume the oversight, authorization, and approval of the transaction or arrangement. Form 990, Part VI, Section B, line 15 The compensation subcommittee functions as a subcommittee of the personnel committee and shall evaluate annually and recommend periodically the compensation of the ASSOCIATION's Executive Director and Music Director. Responsibilities include evaluating the Executive Director's and Music Director's performance annually, recommending the annual goals and objectives for the Executive Director, setting the Executive Director's and Music Director's compensation and any bonus, and relying upon appropriate data as to comparability (including compensation levels paid by similarly situated organizations for functionally comparable positions) prior to making its compensation determination. This process was last undertaken in 2015. The compensation subcommittee reviews the overall compensation program for the Senior Management of the ASSOCIATION established and recommended by the Executive Director. Compensation and any bonuses are set relying upon appropriate data based on comparability (including compensation levels paid by similarly situated organizations for functionally comparable positions). This process was last undertaken in 2015. Form 990, Part VI, Section C, line 19 The ASSOCIATION's audited financial statements are made public upon request, for the same period of time as set forth in the Internal Revenue Code section 6104(d), to grant-making institutions as part of the grant application request process. Additionally, summary financial information is included in the annual report. The Musical Arts Association's articles of incorporation are on file with the Secretary of State in Ohio. Form 990, Part XI, line 9: Partnership Revenue -4,344. Pension Plan Liability Adjustment -6,185,076.