2015-05-15T14:27:33-05:00 2014-06-30 KPMG LLP 550 S Hope St Suite 1500 Los Angeles CA 90071 990 2013-07-01 952096402 Los Angeles Opera Company % FAITH RAIGUEL LOSA 2139727219 135 North Grand Avenue Suite Los Angeles CA 90012 FAITH RAIGUEL CFO 2139727219 2015-05-15 true KPMG LLP P01071312 2139727219 2013 2016-02-25 16:41:14Z FAITH RAIGUEL 135 N GRAND AVENUE LOS ANGELES CA 900123013 63824749 false X laopera.org X 1983 CA THE LOS ANGELES OPERA COMPANY (LA OPERA) IS A NON-PROFIT ENTITY ORGANIZED TO PROVIDE AN OPPORTUNITY FOR ALL TO EXPERIENCE THE RICH EMOTIONAL AND CULTURAL EXPERIENCE OF OPERA. 80 69 909 264 0 0 38789374 47132944 12954757 14780948 1291030 803000 -160592 -192764 52874569 62524128 0 0 0 0 24136749 25558875 130022 140205 2597639 13429193 15618737 37695964 41317817 15178605 21206311 62626099 82455499 27798027 24388473 34828072 58067026 X WE ENVISION AN ENGAGED AND ENLIGHTENED COMMUNITY IN WHICH ALL MEMBERS HAVE THE OPPORTUNITY TO COLLECTIVELY ENJOY THE RICH AESTHETIC, EMOTIONAL, INTELLECTUAL AND CULTURAL EXPERIENCE OF OPERA. SEE SCHEDULE O false false 32321556 0 13957726 OPERA FROM JULY 1, 2013 THROUGH JUNE 30, 2014, THE COMPANY PRODUCED 44 PERFORMANCES OF EIGHT OPERAS FOR OVER 123,000 PEOPLE, INCLUDING 55,000 ATTENDING PRESHOW EDUCATIONAL TALKS. 2136888 0 707299 OTHER ARTISTIC PROGRAMS THE ORGANIZATION PRESENTS OPERA IN A VARIETY OF MEDIA AND AT A VARIETY OF LOCATIONS TO EXPAND AND ENGAGE THE OPERA AUDIENCE, AND PROMOTE THE ART FORM. THESE ACTIVITIES INCLUDE THE "OFF GRAND INITIATIVE" AND THE "YOUNG ARTIST PROGRAM." SEE SCHEDULE O. 1258965 0 115923 EDUCATION AND COMMUNITY OUTREACH OVER 30 UNIQUE EDUCATION AND COMMUNITY PROGRAMS REACHED MORE THAN 140,000 YOUNG CHILDREN, STUDENTS, FAMILIES AND SENIOR CITIZENS ACROSS THE LOS ANGELES REGION. OVER 9,000 SCHOOL STUDENTS ATTENDED PERFORMANCES BOTH AT THE DOROTHY CHANDLER PAVILION AS WELL AS OTHER LOCAL VENUES. SEE SCHEDULE O. 35717409 true true false false false false false false false true true true false true false true true false false false false false false true true false false false false true false false false true false false false false true false false false false false false false false true 155 0 true 909 true false false false false false true true false false false false X 80 69 true false false false false false false true true false false false true true true true true true true false CA X FAITH RAIGUEL 2139727219 135 N GRAND AVENUE LOS ANGELES CA 900123013 X MARC I STERN CHAIRMAN 10.0 X X 0 0 0 CAROL F HENRY CHAIRMAN OF EXECUTIVE COMMITTE 10.0 X X 0 0 0 BERNARD A GREENBERG VICE CHAIRMAN 5.0 X X 0 0 0 WARNER W HENRY VICE CHAIRMAN 5.0 X X 0 0 0 SEBASTIAN PAUL MUSCO VICE CHAIRMAN 5.0 X X 0 0 0 MILAN PANIC VICE CHAIRMAN 5.0 X X 0 0 0 MARILYN ZIERING VICE CHAIRMAN 5.0 X X 0 0 0 ROBERT RONUS TREASURER 5.0 X X 0 0 0 MARVIN S SHAPIRO SECRETARY 5.0 X X 0 0 0 AMBASSADOR FRANK E BAXTER MANAGING DIRECTOR 2.0 X 0 0 0 ALEX K BOUZARI MANAGING DIRECTOR 2.0 X 0 0 0 LESLIE A DORMAN MANAGING DIRECTOR 2.0 X 0 0 0 MARY HAYLEY MANAGING DIRECTOR 2.0 X 0 0 0 LAWRENCE A KERN MANAGING DIRECTOR 2.0 X 0 0 0 HAROLD B RAY MANAGING DIRECTOR 2.0 X 0 0 0 BARRY A SANDERS MANAGING DIRECTOR 2.0 X 0 0 0 R CARLTON SEAVER MANAGING DIRECTOR 2.0 X 0 0 0 EUGENE P STEIN MANAGING DIRECTOR 2.0 X 0 0 0 PAUL D TOSETTI MANAGING DIRECTOR 2.0 X 0 0 0 GERALDINE ALDEN PHD DIRECTOR 2.0 X 0 0 0 MARVIN ANTONOWSKY DIRECTOR 2.0 X 0 0 0 JAMES R ASPERGER DIRECTOR 2.0 X 0 0 0 HAIG S BAGERDJIAN DIRECTOR 2.0 X 0 0 0 JILL C BALDAUF DIRECTOR 2.0 X 0 0 0 MOSHE BARKAT DIRECTOR 2.0 X 0 0 0 DAVID N BARRY DIRECTOR 2.0 X 0 0 0 DR GERALD BERKE DIRECTOR 2.0 X 0 0 0 ADELE H BINDER DIRECTOR 2.0 X 0 0 0 PAUL BLOCH DIRECTOR 2.0 X 0 0 0 SIOBHAN MCBREEN BURKE DIRECTOR 2.0 X 0 0 0 JOYCE CHERNICK DIRECTOR 2.0 X 0 0 0 WALTER J CONN DIRECTOR 2.0 X 0 0 0 ROBERT T COOK DIRECTOR 2.0 X 0 0 0 KATHY CRANDALL DIRECTOR 2.0 X 0 0 0 MARK H DALZELL DIRECTOR 2.0 X 0 0 0 MARI L DANIHEL DIRECTOR 2.0 X 0 0 0 GEOFF EMERY DIRECTOR 2.0 X 0 0 0 DON ERIK FRANZEN DIRECTOR 2.0 X 0 0 0 ALEXANDER FURLOTTI DIRECTOR 2.0 X 0 0 0 CRAIG GARNER DIRECTOR 2.0 X 0 0 0 RUTH R GOLD DIRECTOR 2.0 X 0 0 0 BRINDELL ROBERTS GOTTLIEB DIRECTOR 2.0 X 0 0 0 THOMAS GOTTSCHALK DIRECTOR 2.0 X 0 0 0 DIANE GRAY DIRECTOR 2.0 X 0 0 0 MONICA GUTIERREZ-ROPER DIRECTOR 2.0 X 0 0 0 HANY HADDAD DIRECTOR 2.0 X 0 0 0 CATHERINE H HELM DIRECTOR 2.0 X 0 0 0 JUDGE JUDITH HOLLINGER DIRECTOR 2.0 X 0 0 0 MRS JOHN F HOTCHKIS DIRECTOR 2.0 X 0 0 0 TIM C JOHNSON DIRECTOR 2.0 X 0 0 0 RICHARD JONES DIRECTOR 2.0 X 0 0 0 DR HAROLD L KARPMAN DIRECTOR 2.0 X 0 0 0 THOMAS F KRANZ DIRECTOR 2.0 X 0 0 0 ROBERT KUPPENHEIMER DIRECTOR 2.0 X 0 0 0 EDWARD A LANDRY DIRECTOR 2.0 X 0 0 0 CLAUDE MANN DIRECTOR 2.0 X 0 0 0 CATHERINE MARCUS DIRECTOR 2.0 X 0 0 0 BRYAN MOELLER DIRECTOR 2.0 X 0 0 0 CARLOS A MOLLURA DIRECTOR 2.0 X 0 0 0 DR STEVEN NAGELBERG DIRECTOR 2.0 X 0 0 0 DR LESLIE A PAM PHD DIRECTOR 2.0 X 0 0 0 ARMIN M SADOFF MD DIRECTOR 2.0 X 0 0 0 FRED C SANDS DIRECTOR 2.0 X 0 0 0 E RANDOL SCHOENBERG DIRECTOR 2.0 X 0 0 0 LISA SEE DIRECTOR 2.0 X 0 0 0 JOAN SEIDEL DIRECTOR 2.0 X 0 0 0 DR CHESTER SEMEL DIRECTOR 2.0 X 0 0 0 MARILYN SHAPIRO DIRECTOR 2.0 X 0 0 0 ERIC L SMALL DIRECTOR 2.0 X 0 0 0 JAMES THURMOND SMITHGALL DIRECTOR 2.0 X 0 0 0 MRS DOROTHY B STRAUS DIRECTOR 2.0 X 0 0 0 DR JAMES H STRAUSS DIRECTOR 2.0 X 0 0 0 BARBARA AUGUSTA TEICHERT DIRECTOR 2.0 X 0 0 0 SANDRA W TERNER DIRECTOR 2.0 X 0 0 0 BRIGITTA B TROY DIRECTOR 2.0 X 0 0 0 ALYCE WILLIAMSON DIRECTOR 2.0 X 0 0 0 ELLEN ZETCHER DIRECTOR 2.0 X 0 0 0 PLACIDO DOMINGO DIRECTOR, GEN DIR, PERFORMER 20.0 X 943168 0 0 JAMES CONLON EX.OFFICIO DIR,MUSIC DIR,PRFMR 20.0 X 784212 0 78160 CHRISTOPHER KOELSCH EX.OFFICIO DIR, PRES & CEO 40.0 X X 350000 0 10166 JOYCE BLACK DIRECTOR (THRU 10/6/13) 2.0 X 0 0 0 EDWARD CLARK DIRECTOR (THRU 10/1/13) 2.0 X 0 0 0 KELLY DAY DIRECTOR (THRU 12/31/13) 2.0 X 0 0 0 MILTON OKUN DIRECTOR (THRU 8/31/13) 2.0 X 0 0 0 FAITH RAIGUEL VICE PRESIDENT, CFO 40.0 X 250000 0 15385 JOHN NUCKOLS VICE PRESIDENT, ADVANCEMENT 40.0 X 250000 0 5343 DIANE RHODES BERGMAN VICE PRESIDENT, MKTG & COMM 40.0 X 160000 0 17659 RUPERT HEMMINGS SENIOR DIRECTOR, PRODUCTION 40.0 X 176803 0 16488 HAROLD E CONROY STAGEHAND 40.0 X 163546 0 35558 GRANT GERSHON RESIDENT CONDUCTOR 25.0 X 158000 0 2400 PATRICIA MCLEOD SENIOR DIRECTOR, DEVELOPMENT 40.0 X 155000 0 17024 JEFF KLEEMAN TECHNICAL DIRECTOR 40.0 X 146255 0 16849 3536984 0 215032 24 false true false KPMG LLP 550 S HOPE ST SUITE 1500 LOS ANGELES CA 90071 AUDIT & TAX PREP FEE 148908 LEVI ESTATES LLC 5777 W PICO BLVD LOS ANGELES CA 90019 PROPERTY RENTAL FEES 127609 RONNITA MILLER 6464 30TH ST S ST PETERSBURG FL 33712 ARTIST FEES 117900 SPECIAL OCCASIONS EVENT PLANNING 357 S ROBERTSON BLVD BEVERLY HILLS CA 90211 EVENT PLANNING 105643 STUDIO SERENO 5015 ALHAMBRA AVE LOS ANGELES CA 90032 PROD. DESIGN BUILD 102690 7 X 1402121 1969340 43761483 712533 47132944 TICKET SALES AND FEES 711190 13957726 13957726 CO-PRODUCTION & PRODUCTION RENTAL 711190 256999 256999 OUTREACH INCOME 611710 115923 115923 OFF-GRAND INITIATIVE 711190 186186 186186 RECITALS 711190 264114 264114 14780948 805793 805793 0 54373 54373 0 0 0 708941 800 712534 -3593 800 -2793 0 0 -2793 157999 1402121 588087 -430088 -430088 0 0 OTHER INCOME 900099 104472 104472 WORKERS COMPENSATION REBATE 900099 55571 55571 YOUNG ARTIST APPLICATION FEES 900099 15431 15431 7477 7477 182951 62524128 14780948 0 610236 0 0 0 0 2864094 2343366 265385 255343 0 17702424 15635316 890386 1176722 218930 190594 10762 17574 3012643 2858561 65028 89054 1760784 1569687 84135 106962 0 5051 0 0 5051 121566 0 121566 0 0 140205 140205 36564 36564 3922000 3922000 1579958 1502071 3370 74517 501124 319780 93553 87791 133054 16307 115819 928 498834 498834 1711662 1485683 222693 3286 936145 776229 115207 44709 0 21712 13467 3120 5125 313100 313100 0 338971 272044 66927 212274 212274 PHYSICAL PRODUCTION COSTS 2940194 2940194 0 0 CONSULTING FEES 699307 446556 166579 86172 SPECIAL PROGRAMS 644064 183807 26749 433508 CREDIT CARD DISCOUNTS 477887 408115 2250 67522 525270 334798 187302 3170 41317817 35717409 3002769 2597639 X 725319 995752 10120 10149 35884752 54127533 233558 94214 0 0 0 0 0 0 0 0 1949088 1290782 8883144 8402229 696808 480915 491 491 12216859 13496165 0 0 0 0 10909104 11959498 62626099 82455499 4290058 5028186 0 0 7819271 6943589 0 0 0 0 9188698 7166698 4500000 4250000 2000000 1000000 0 0 27798027 24388473 X -20333469 -19356813 23030431 42920045 32131110 34503794 34828072 58067026 62626099 82455499 X 21206311 998905 1033738 X false true X true false X 41170929 29582773 22377871 38789374 47132944 179053891 12624194 11690095 11066497 12954757 14780948 63116491 0 0 0 53795123 41272868 33444368 51744131 61913892 242170382 11700050 20831267 23419819 31809698 22424381 110185215 0 11700050 20831267 23419819 31809698 22424381 110185215 131985167 104453 340500 616451 1277472 860166 3199042 0 104453 340500 616451 1277472 860166 3199042 0 321408 153055 186996 313036 340950 1315445 54220984 41766423 34247815 53334639 63115008 246684869 0.53504 0.59378 0.01297 0.00994 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 12216859 697000 1666737 584431 13996165 11363352 197000 1154124 497617 12216859 12488289 65000 -668431 521506 11363352 11110558 17500 1941477 581246 12488289 10418993 15900 1265929 590264 11110558 0.00000 0.92644 0.07356 true false 967297 967297 0 7524385 7043470 480915 391463 391463 0 480915 MUSIC CTR FDTN UNITIZED INV PL 13496165 F 13496165 BENEFICIAL INTEREST IN TRUST 11884494 DEPOSITS 67000 FABRIC INVENTORY 8004 11959498 0 0 X 65652638 998905 998575 1167594 3165074 62487564 36564 36564 62524128 42413684 998575 133856 1132431 41281253 36564 36564 41317817 FORM 990, SCHEDULE D, PART V, LINE 4 THE FINANCE COMMITTEE OF THE BOARD OF DIRECTORS HAS ADOPTED INVESTMENT AND SPENDING POLICIES FOR ENDOWMENT ASSETS THAT ATTEMPT TO PROVIDE A PREDICTABLE STREAM OF FUNDING TO ITS PROGRAMS WHILE SEEKING TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS. TO SATISFY THE LONG-TERM RATE-OF-RETURN OBJECTIVES, THE OPERA 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). IN ORDER TO SUPPORT THE LONG-TERM GROWTH OF THE OPERA, THE FINANCE COMMITTEE HAS ESTABLISHED A SPENDING RATE POLICY WHERE THE ENDOWMENT SHALL ANNUALLY DISTRIBUTE A PERCENTAGE OF THE 12-QUARTER ROLLING AVERAGE FAIR VALUE ENDING ON MARCH 30 OF THE PRIOR FISCAL YEAR. IN 2013, THE PERCENTAGE RATE USED WAS 5%. FOR FUNDS WITH DONOR-IMPOSED ASSET ALLOCATIONS OR DISTRIBUTIONS, THE DISTRIBUTIONS CONFORM TO THE DONOR'S EXPRESSED WISHES. THIS SPENDING RATE POLICY IS CONSISTENT WITH THE OPERA'S OBJECTIVE TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS HELD IN PERPETUITY OR FOR A SPECIFIED TERM AS WELL AS TO PROVIDE ADDITIONAL REAL GROWTH THROUGH NET GIFTS AND INVESTMENT RETURN. FIN 48 (ASC 740) FOOTNOTE THE OPERA FOLLOWS THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION (ASC) SUBTOPIC 740-10, INCOME-TAXES - OVERALL, RELATED TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE INTERPRETATION REQUIRES THAT THE ENTITY ACCOUNT FOR AND DISCLOSE IN THE FINANCIAL STATEMENTS THE IMPACT OF A TAX POSITION IF THAT POSITION WILL MORE LIKELY THAN NOT BE SUSTAINED UPON EXAMINATION, INCLUDING RESOLUTION OF ANY RELATED APPEALS OR LITIGATION PROCESSES, BASED ON THE TECHNICAL MERITS OF THE POSITION. AS OF JUNE 30, 2014 AND 2013, THE OPERA HAD NO UNCERTAIN TAX POSITIONS REQUIRING ACCRUAL OR DISCLOSURE. FORM 990, SCHEDULE D, PART XI, LINE 2D CHANGE IN VALUE OF BENEFICIAL INTEREST IN PERPETUAL TRUST $ 558,889 PLEDGE DISCOUNT ADJUSTMENT $ 608,705 ------------ $1,167,594 RECONCILIATION OF EXPENSE FORM 990, SCHEDULE D, PART XII, LINE 2D ADJUSTMENT FOR uncollectible pledges on receivables $ 133,856 X X X X X X X true SDA Teleservices Inc Telefunding false 301833 140205 161628 301833 140205 161628 CA OPEN NIGHT GALA 708542 630782 77760 600 119560 16700 382060 DOMINGO AWARDS 168146 150600 17546 32480 1000 35687 1 683432 620739 62693 1560120 1402121 157999 600 152040 17700 417747 588087 -430088 ADDRESS OF FUNDRAISER FORM 990, SCHEDULE G, PART I, LINE 2B SD&A TELESERVICES, INC. 5757 WEST CENTURY BLVD., STE 300 LOS ANGELES, CA 90045 X X X true true X X X X X false false false false false false false false false PLACIDO DOMINGO DIRECTOR, GEN DIR, PERFORMER 943168 0 0 0 0 0 0 0 0 0 943168 0 0 0 JAMES CONLON EX.OFFICIO DIR,MUSIC DIR,PRFMR 781667 0 0 0 2545 0 0 0 78160 0 862372 0 0 0 CHRISTOPHER KOELSCH EX.OFFICIO DIR, PRES & CEO 350000 0 0 0 0 0 4000 0 6166 0 360166 0 0 0 JOHN NUCKOLS VICE PRESIDENT, ADVANCEMENT 250000 0 0 0 0 0 4000 0 1343 0 255343 0 0 0 FAITH RAIGUEL VICE PRESIDENT, CFO 250000 0 0 0 0 0 4000 0 11385 0 265385 0 0 0 DIANE RHODES BERGMAN VICE PRESIDENT, MKTG & COMM 160000 0 0 0 0 0 3200 0 14459 0 177659 0 0 0 RUPERT HEMMINGS SENIOR DIRECTOR, PRODUCTION 176803 0 0 0 0 0 3536 0 12952 0 193291 0 0 0 HAROLD E CONROY STAGEHAND 163546 0 0 0 0 0 18490 0 17068 0 199104 0 0 0 GRANT GERSHON RESIDENT CONDUCTOR 158000 0 0 0 0 0 2400 0 0 0 160400 0 0 0 PATRICIA MCLEOD SENIOR DIRECTOR, DEVELOPMENT 155000 0 0 0 0 0 3100 0 13924 0 172024 0 0 0 JEFF KLEEMAN TECHNICAL DIRECTOR 146255 0 0 0 0 0 2925 0 13924 0 163104 0 0 0 COMPENSATION INFORMATION FORM 990, SCHEDULE J, PART I, LINE 1A FIRST CLASS TRAVEL IS SOMETIMES PROVIDED TO PLACIDO DOMINGO AND JAMES CONLON. THIS TRAVEL IS CONDUCTED FOR BUSINESS PURPOSES AND IS NOT TREATED AS TAXABLE COMPENSATION TO DOMINGO OR CONLON AS IT IS A BUSINESS EXPENSE OF THE ORGANIZATION. LIMITED TRAVEL IS PROVIDED TO MEMBERS OF CONLON'S FAMILY SUBJECT TO RESTRICTIONS. TRAVEL FOR CONLON'S FAMILY IS INCLUDED IN HIS 1099 REPORTABLE COMPENSATION. HOUSING PROVIDED TO CONLON IN LOS ANGELES IS NOT TREATED AS TAXABLE COMPENSATION BECAUSE IT IS NOT HIS PRIMARY RESIDENCE BUT IS A REQUIREMENT OF HIS EMPLOYMENT WITH THE ORGANIZATION. FORM 990, SCHEDULE J, PART II TOTAL COMPENSATION FOR PLACIDO DOMINGO INCLUDES GENERAL DIRECTOR FEES OF $641,688, AND PERFORMANCE FEES OF $301,500. IN ADDITION, $133,334 IN GENERAL DIRECTOR FEES WERE DEFERRED TO CALENDAR YEAR 2014. TOTAL COMPENSATION FOR JAMES CONLON INCLUDES MUSIC DIRECTOR FEES OF $301,667, CONDUCTING FEES OF $480,000 AND OTHER REPORTABLE COMPENSATION WAS $2,545. IN ADDITION, $158,333 IN MUSIC DIRECTOR FEES WERE DEFERRED TO CALENDAR YEAR 2014. MARC STERN BOARD MEMBER Temp Finance of Ops X 4028000 2611142 false false true ROBERT RONUS BOARD MEMBER Temp Finance of Ops X 2950000 2422222 false false true MARILYN ZIERING BOARD MEMBER TEMP FINANCE OF OPS X 1500000 1044444 false false true PETER GRAY BOARD MEMBER TEMP FINANCE OF OPS X 500000 500000 false false true FRED SANDS BOARD MEMBER TEMP FINANCE OF OPS X 500000 500000 false false true SELIM ZIKHA BOARD MEMBER TEMP FINANCE OF OPS X 100000 44444 false false true FRANK BAXTER BOARD MEMBER TEMP FINANCE OF OPS X 50000 22222 false false true BERNARD GREENBERG BOARD MEMBER TEMP FINANCE OF OPS X 50000 22222 false false true 7166696 Form 990, Schedule L, Part II, Column (f) Loans from donors or board members do not require Finance Committee or full Board approval. The Board Chair approves all such transactions as well as the President and Chief Executive Officer and Chief Financial Officer. X 16 712533 See Part II 0 false true false FORM 990, SCHEDULE M, PART I, COLUMN B This equals the number of contributions received. FORM 990, SCHEDULE M, PART I, COLUMN D NONCASH CONTRIBUTIONS ARE RECORDED AS INCOME AT THE FAIR VALUE OF THE CONTRIBUTIONS ON THE DATE OF DONATION. THE FAIR VALUE OF PUBLICLY TRADED SECURITIES IS BASED ON QUOTED MARKET PRICES. ORGANIZATION'S MISSION, CONTINUED FORM 990, PART III, LINE I LA OPERA WILL ACHIEVE ITS MISSION BY PRODUCING WORLD-CLASS OPERA THAT PRESERVES, PROMOTES AND ADVANCES THE ART FORM WHILE EMBODYING THE DIVERSITY, PIONEERING SPIRIT AND ARTISTIC SENSIBILITY UNIQUE TO LOS ANGELES. PROGRAM SERVICE, CONTINUED FORM 990, PART III, LINE 4B OFF GRAND THE LA OPERA "OFF GRAND" INITIATIVE IS DESIGNED TO BRING PERFORMANCES TO A BROADER GEOGRAPHIC AREA, INCREASE THE DIVERSITY OF THE COMPANY'S AUDIENCE AND EXPAND THE RANGE OF EXPERIENCES AVAILABLE TO EXISTING AUDIENCES. THE COMPANY ALSO PARTNERS WITH OTHER LOCAL ARTS ORGANIZATIONS TO PRESENT CONCERT PERFORMANCES OF CURRENT SEASON OPERAS AS WELL AS CO-PRODUCE OPERA AT VARIOUS PERFORMANCE VENUES. DOMINGO-COLBURN-STEIN YOUNG ARTIST PROGRAM CREATED BY PLACIDO DOMINGO, THE YOUNG ARTIST PROGRAM SEEKS TO SUPPORT AND DEVELOP THE CAREERS OF PROMISING SINGERS AND PIANISTS. THIS RESIDENCY PROGRAM PROVIDES EXTENSIVE TRAINING AND PERFORMANCE EXPERIENCE THROUGH MAIN-STAGE ROLES, COVER ROLES, CONCERTS AND OTHER PRODUCTIONS. DURING THE YEAR, TEN ARTISTS WERE GIVEN 46 MAIN-STAGE ASSIGNMENTS (ROLES, COVERS) AND PERFORMED IN MORE THAN 15 RECITALS THROUGHOUT THE COMMUNITY. CATHEDRAL PROJECT DURING THE YEAR THE COMPANY PRESENTED TWO WORLD PREMIERE PERFORMANCES OF "JONAH & THE WHALE" AT THE CATHEDRAL OF OUR LADY OF THE ANGELS. A TOTAL OF 382 COMMUNITY MEMBERS OF ALL AGES WERE ENGAGED AS SINGERS AND MUSICIANS ALONG WITH PROFESSIONALS. THREE PERFORMANCES WERE PRESENTED FREE OF CHARGE TO APPROXIMATELY 6,000 ATTENDEES. RADIO BROADCASTS "LA OPERA ON AIR" FEATURED ALL SIX MAINSTAGE PRODUCTIONS VIA KUSC REGIONALLY AND THE WFMT NETWORK NATIONALLY. THESE PRODUCTIONS INCLUDED "CARMEN," "FALSTAFF," "THE MAGIC FLUTE," "BILLY BUDD," "LUCIA DI LAMMERMOOR" AND "THAIS," STARRING PLACIDO DOMINGO. "LA OPERA ON AIR" WAS BROADCAST TO 343 STATIONS IN 203 MARKETS IN 37 STATES, AND TOTAL LISTENERSHIP WAS OVER 4.5 MILLION. PROGRAM SERVICE, CONTINUED FORM 990, PART III, LINE 4C THE LA OPERA TEACHING ARTISTS PERFORMED AT FOUR SCHOOLS IN THE "SING OUT LOUD PROGRAM," WHICH REACHED 1,100 STUDENTS. "IN SCHOOL OPERA" BROUGHT WEEKLY WORKSHOPS TO 20 ELEMENTARY AND SECONDARY SCHOOLS, WHERE OVER 1,200 STUDENTS LEARNED TO PERFORM IN AND PRODUCE OPERA, AND THEN PERFORMED THE OPERA AT THEIR SCHOOL ALONGSIDE PROFESSIONAL ARTISTS FOR FELLOW STUDENTS AND THEIR FAMILIES. "VOICES FOR TOLERANCE," A YEAR LONG PROGRAM FOR MORE THAN 300 STUDENTS, PROVIDED WEEKLY SESSIONS THAT TEACH CHORAL MUSIC AND PERFORMANCE, AS WELL AS DISCUSS DIVERSITY AND TOLERANCE. MORE THAN 2,000 STUDENTS, TEACHERS AND FAMILY WATCHED THE FINAL PERFORMANCES. MORE THAN 2,300 STUDENTS AND TEACHERS ATTENDED REHEARSALS AT THE DOROTHY CHANDLER PAVILION, WHICH INCLUDED WORKSHOPS BY MUSICIANS AND PRODUCTION STAFF. OPERA 101 AND OPERA FOR EDUCATORS OFFERED OVER 180 TEACHERS THE OPPORTUNITY TO LEARN A BROAD FOUNDATION IN OPERA. LA OPERA'S COMMUNITY ENGAGEMENT PROGRAMS BROUGHT UNDERSERVED COMMUNITY GROUPS TO MAIN STAGE PERFORMANCES AT LITTLE OR NO COST. THE TOTAL ENGAGED IN THESE PROGRAMS EXCEEDED 110,000 COMMUNITY MEMBERS. VOTING MEMBERS OF THE GOVERNING BODY FORM 990, PART VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE IS EMPOWERED TO EXERCISE ALL THE DUTIES OF THE BOARD BETWEEN MEETINGS OF THE BOARD AND WHEN THE BOARD IS NOT IN SESSION, EXCEPT THOSE MATTERS PRECLUDED UNDER SECTION 5212 OF THE CALIFORNIA NONPROFIT CORPORATION LAW. FAMILY RELATIONSHIP FORM 990, PART VI, SECTION A, LINE 2 THERE IS ONE MARRIED COUPLE ON THE BOARD: WARNER & CAROL HENRY. REVIEW OF THE FORM 990 FORM 990, PART VI, SECTION B, LINE 11A THE FINAL DRAFT OF THE FORM 990 IS REVIEWED BY THE CHIEF FINANCIAL OFFICER AND THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE LA OPERA, AND EDITED IF REQUIRED. PRIOR TO PRESENTATION TO THE AUDIT COMMITTEE, THE CHAIR OF THE BOARD REVIEWS THE DRAFT AND PROPOSES EDITS, IF REQUIRED. IT IS THE PRACTICE OF THE LA OPERA TO CIRCULATE THE PUBLIC INSPECTION COPY WITHOUT SCHEDULE B, CONFIDENTIAL DONOR LIST, TO THE AUDIT COMMITTEE FOR DISCUSSION, REVIEW AND APPROVAL PRIOR TO FILING. FURTHER, THE PUBLIC INSPECTION COPY WITHOUT SCHEDULE B IS MADE AVAILABLE TO THE FULL BOARD SUBSEQUENT TO FILING BY ELECTRONIC OR OTHER MEANS. MONITORING AND ENFORCING COMPLIANCE WITH CONFLICT OF INTEREST FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS A WRITTEN CONFLICT OF INTEREST POLICY ADOPTED BY THE BOARD FOR BOARD MEMBERS, OFFICERS AND KEY EMPLOYEES. ANY BUSINESS RELATIONSHIP THAT IS, OR MAY BE PERCEIVED TO BE, A CONFLICT OF INTEREST WITH A BOARD MEMBER IS DISCUSSED AND APPROVED BY THE BOARD. A CONFLICT OF INTEREST WITH A STAFF MEMBER IS REVIEWED AND APPROVED BY THE PRESIDENT AND CHIEF EXECUTIVE OFFICER. ALSO, A PERSONALIZED LETTER TO EACH BOARD MEMBER, SIGNED BY THE CHAIRMAN OF THE BOARD, WAS CIRCULATED SPECIFICALLY REQUESTING REVIEW OF THE POLICY WHICH WAS ATTACHED, AS WELL AS REQUESTING RESPONSE TO A QUESTIONNAIRE. EACH BOARD MEMBER, OFFICER AND KEY EMPLOYEE SENDS A COMPLETED QUESTIONNAIRE TO THE CHIEF FINANCIAL OFFICER. QUESTIONNAIRES NOT RESPONDED TO ARE FOLLOWED UP WITH A PHONE CALL. ANY DISCLOSED CONFLICT WAS DISCUSSED WITH THE CHAIRMAN OF THE BOARD AND THE PRESIDENT AND CHIEF EXECUTIVE OFFICER. THE CFO AND BOARD SECRETARY DETERMINE WHETHER THERE IS A CONFLICT. IF A CONFLICT DOES EXIST, THE BOARD CHAIR AND FULL BOARD REVIEW AND TAKE ACTION. THE INDIVIDUAL WITH THE CONFLICT ABSTAINS FROM DELIBERATION AND ANY ACTION. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, SECTION B, LINE 15A AND 15B THE COMPENSATION COMMITTEE OF THE BOARD MEETS TO REVIEW AND APPROVE THE COMPENSATION, OR CHANGE IN COMPENSATION, OF THE FOLLOWING POSITIONS, AND OTHER KEY EMPLOYEES (DEFINITION BELOW): " GENERAL DIRECTOR " MUSIC DIRECTOR " PRESIDENT AND CHIEF EXECUTIVE OFFICER " CHIEF FINANCIAL OFFICER " VICE PRESIDENTS THE COMPENSATION COMMITTEE IS COMPOSED OF BOARD MEMBERS INDEPENDENT WITH REGARD TO THE COMPENSATION ARRANGEMENT. IN ITS EFFORTS TO COMPENSATE EMPLOYEES FAIRLY FOR THEIR SERVICES, THE COMMITTEE UTILIZES THE FOLLOWING IN DETERMINING APPROPRIATE LEVELS OF COMPENSATION: " INDEPENDENT COMPENSATION CONSULTANT " COMPENSATION SURVEYS OR STUDIES OF COMPARABLE ORGANIZATIONS " INDUSTRY GROUP SURVEYS (OPERA AMERICA) " FORM 990 OF COMPARABLE ORGANIZATIONS COMPENSATION AGREEMENTS ARE APPROVED BY THE COMMITTEE AND THE BOARD OF DIRECTORS. DOCUMENTATION INCLUDES THE TERMS OF THE AGREEMENTS AND THE DATE APPROVED, MEMBERS PRESENT DURING DEBATE AND THOSE WHO VOTED ON IT, THE COMPARABILITY DATA RELIED UPON AND HOW IT WAS OBTAINED, AND ANY VOTING MEMBER WHO HAS A CONFLICT OF INTEREST WITH RESPECT TO A TRANSACTION ISN'T PERMITTED TO VOTE OR INFLUENCE THE VOTE WITH RESPECT TO THAT TRANSACTION AND SUCH DECISION IS DOCUMENTED ACCORDINGLY IN THE MEETING MINUTES. WHILE NO COMPENSATION COMMITTEE MEETING WAS HELD DURING THE FISCAL YEAR 2013-2014, ANY AGREEMENTS WHICH EXPIRED IN 2013-2014 WERE ADDRESSED RETROACTIVELY AT A MEETING ON SEPTEMBER 4, 2014. JOINT VENTURE POLICY FORM 990, PART VI, SECTION C, LINE 16A AND 16B ANY PROPOSED JOINT VENTURE MUST BE SUBMITTED FOR APPROVAL BY A MEMBER OF THE LEGAL COMMITTEE IN ACCORDANCE WITH THE POLICY STATEMENT REGARDING CONTRACT SIGNING AUTHORIZATION ADOPTED BY THE BOARD OF DIRECTORS ON JANUARY 7, 2008. THE JOINT VENTURE SHALL ALSO COMPLY WITH ALL OTHER REQUIREMENTS OF THE POLICY STATEMENT. IT IS THE POLICY OF THE LA OPERA TO ENTER INTO A JOINT VENTURE ARRANGEMENT ONLY IF IT IS CONSISTENT WITH THE MISSION OF THE ORGANIZATION; AND IT DOES NOT JEOPARDIZE THE TAX EXEMPT STATUS OF THE ORGANIZATION; AND SPECIFICALLY THE OPERATION OF THE JOINT VENTURE MUST NOT RESULT IN ANY PROHIBITED PRIVATE BENEFIT. IF A JOINT VENTURE IS CONTEMPLATED, IT IS DISCLOSED TO THE FINANCE COMMITTEE FOR ACTION IN ACCORDANCE WITH THIS POLICY, AND, IF DEEMED APPROPRIATE, ADVICE OF LEGAL COUNSEL OR TAX ADVISORS IS SECURED BEFORE ENTERING INTO THE JOINT VENTURE OR OTHER ARRANGEMENT. SAMPLE JOINT VENTURES INCLUDE TELEVISION BROADCASTS, DVDS & CDS. BEFORE MAKING ANY DECISION TO PARTICIPATE IN A JOINT VENTURE, LA OPERA WILL ENSURE THAT THE JOINT VENTURE FURTHERS LA OPERA'S EXEMPT PURPOSES AND WILL NEGOTIATE AT ARM'S LENGTH CONTRACTUAL AND OTHER TERMS OF PARTICIPATION THAT SAFEGUARD LA OPERA'S EXEMPTION FROM FEDERAL AND STATE INCOME TAX. PROCESS FOR DISCLOSING GOVERNING DOCUMENTS FORM 990, PART VI, SECTION C, LINE 19 THE LA OPERA MAKES ITS GOVERNING DOCUMENTS, TAX EXEMPTION LETTER, CONFLICT OF INTEREST POLICY AND AUDITED FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. RECONCILIATION OF NET ASSETS FORM 990, PART XI, LINE 9 CHANGE IN VALUE OF BENEFICIAL INTEREST IN PERPETUAL TRUST $ 558,889 UNCOLLECTIBLE PLEDGES RECEIVABLE $(133,856) PLEDGE DISCOUNT ADJUSTMENT* $ 608,705 -------------- TOTAL $ 1,033,738 *DISCOUNT TO PRESENT PLEDGES RECEIVABLE AT PRESENT VALUE, UNDER GAAP.