2023-08-15T16:37:30-05:00 2022-09-30 910189318 MOSS ADAMS LLP 4747 EXECUTIVE DR SUITE 1300 SAN DIEGO CA 92121 990 2021-10-01 237148171 LA JOLLA MUSIC SOCIETY LAJO 8584593724 7600 FAY AVENUE LA JOLLA CA 92037 TODD SCHULTZ PRESIDENT & CEO 8584593724 2023-08-15 1 TODD SCHULTZ 999009999 JANE COLEMAN P01391236 8586271400 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z X THE CONRAD OR THE CONRAD PREBYS PERFORMING ARTS CENTER TODD SCHULTZ 7600 FAY AVENUE LA JOLLA CA 92037 11130401 0 X WWW.THECONRAD.ORG FORMALLY WWW.LJMS.ORG X 1969 CA TO ENHANCE CULTURAL LIFE AND ENGAGEMENT BY PRESENTING AND PRODUCING A WIDE RANGE OF PROGRAMMING OF THE HIGHEST ARTISTIC QUALITY, AND TO MAKE THE CONRAD PREBYS PERFORMING ARTS CENTER A VIBRANT AND INCLUSIVE HUB. 31 31 45 100 0 0 4637754 8299341 383823 2048205 188392 200023 14644 -148132 5224613 10399437 0 0 0 0 2007112 2529420 0 0 810300 3999350 6390105 6006462 8919525 -781849 1479912 84407602 83710828 1076371 947387 83331231 82763441 TO ENHANCE CULTURAL LIFE AND ENGAGEMENT BY PRESENTING AND PRODUCING A WIDE RANGE OF PROGRAMMING OF THE HIGHEST ARTISTIC QUALITY, AND TO MAKE THE CONRAD PREBYS PERFORMING ARTS CENTER A VIBRANT AND INCLUSIVE HUB. 0 0 7201658 2048205 THE CONRAD PREBYS PERFORMING ARTS CENTER (THE CONRAD) OPENED IN APRIL 2019 AND IS THE PERMANENT HOME OF LA JOLLA MUSIC SOCIETY (LJMS). LJMS IS THE LARGEST MULTIDISCIPLINARY PRESENTER IN SAN DIEGO AND ANNUALLY PRODUCES A NATIONALLY RECOGNIZED SUMMER FESTIVAL, SUMMERFEST. THE CONRAD HOSTS WORLD CLASS PERFORMANCES PRESENTED BY LJMS AS WELL AS OTHER SAN DIEGO ARTS PRESENTERS.LA JOLLA MUSIC SOCIETY'S COMMITMENT TO PRESENTING AND PRODUCING PROGRAMMING OF THE HIGHEST ARTISTIC QUALITY EXTENDS BEYOND THE CONCERT HALL AND INTO ITS WORK IN THE SAN DIEGO COMMUNITY. 7201658 1 1 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 1 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 106 0 1 45 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 31 31 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X TODD SCHULTZ 8584593724 7600 FAY AVENUE LA JOLLA CA 92037 TODD SCHULTZ PRESIDENT & CEO 40.00 X 264808 0 14649 HANNES KLING THRU 722 DIR OF OPERATIONS & TECH 40.00 X 118450 0 12035 LEAH ROSENTHAL ARTISTIC DIRECTOR 40.00 X 113718 0 11912 FERDINAND GASANG DIRECTOR OF DEVELOPMENT 40.00 X 114667 0 10850 ADAM THURMAN DIRECTOR OF MARKETING 40.00 X 113370 0 10107 STEPHEN L BAUM CHAIR 5.00 X X 0 0 0 PETER WAGENER VICE CHAIR 5.00 X X 0 0 0 STEPHEN GAMP TREASURER 5.00 X X 0 0 0 SHARON COHEN SECRETARY 5.00 X X 0 0 0 MARY ANN BEYSTER MEMBER 3.00 X 0 0 0 WENDY BRODY MEMBER 3.00 X 0 0 0 RIC CHARLTON MEMBER 3.00 X 0 0 0 BERT CORNELISON MEMBER 3.00 X 0 0 0 ANN DYNES MEMBER 3.00 X 0 0 0 DEBBY FISHBURN MEMBER 3.00 X 0 0 0 LEHN GOETZ MEMBER 3.00 X 0 0 0 JOHN HESSELINK MEMBER 3.00 X 0 0 0 SUSAN HOEHN MEMBER 3.00 X 0 0 0 VIVIAN LIM MEMBER 3.00 X 0 0 0 SUE MAJOR MEMBER 3.00 X 0 0 0 ROBIN NORDHOFF MEMBER 3.00 X 0 0 0 ARMAN ORUC MEMBER 3.00 X 0 0 0 PEGGY PREUSS MEMBER 3.00 X 0 0 0 SYLVIA RE MEMBER 3.00 X 0 0 0 SHERYL SCARANO MEMBER 3.00 X 0 0 0 MARGE SCHMALE MEMBER 3.00 X 0 0 0 MAUREEN SHIFTAN MEMBER 3.00 X 0 0 0 JEANETTE STEVENS MEMBER 3.00 X 0 0 0 STEPHANIE STONE MEMBER 3.00 X 0 0 0 DEBRA TURNER MEMBER 3.00 X 0 0 0 LISE WILSON MEMBER 3.00 X 0 0 0 BEBE ZIGMAN MEMBER 3.00 X 0 0 0 ELEANOR Y CHARLTON MEMBER 3.00 X 0 0 0 MARY ELLEN CLARK MEMBER 3.00 X 0 0 0 TOM RASMUSSEN MEMBER 3.00 X 0 0 0 JENNIFER EVE MEMBER 3.00 X 0 0 0 KARIN BURNS DIR OF FINANCE (AS OF 3/22) 40.00 X 0 0 0 725013 0 59553 5 0 1 0 PRO BACK OFFICE 3655 NOBEL DR SUITE 520 SAN DIEGO CA 92122 ADMINISTRATION, HR, & ACCOUNTING SERVICE 381686 OPUS 3 ARTISTS 348 W 57TH ST SUITE 282 NEW YORK NY 10019 ARTIST FEE 168100 2 1351327 2891004 4057010 140446 8299341 TICKET SALES 711190 1747516 1747516 OTHER PERFORMANCE REVENUE 711190 280583 280583 20106 20106 2048205 291182 291182 223806 23118 293873 0 -70067 23118 -46949 -46949 118127 209286 -91159 -91159 -91159 94675 1351327 227805 -133130 -133130 31947 0 31947 31947 10399437 2048205 0 51891 X 536323 415657 52263 68403 1685882 1306580 164287 215015 27765 21519 2704 3542 116670 90421 11369 14880 162780 126157 15863 20760 16541 16541 59400 59400 62910 62910 2423110 2270932 150710 1468 260340 201767 25369 33204 567444 439776 55298 72370 238568 184892 23249 30427 345085 267445 33628 44012 119290 92452 11624 15214 961 745 94 122 1735966 1345394 169168 221404 119298 92457 11626 15215 MAINTENCE AND REPAIRS 219277 169942 21369 27966 LICENSES AND PERMITS 63645 49326 6202 8117 DUES AND SUBSCRIPTIONS 31015 24037 3022 3956 127255 102159 10871 14225 8919525 7201658 907567 810300 3221530 4627371 442982 389269 1486449 2748167 237434 38053 132380 129171 72282953 6181697 67538242 66101256 10676242 9080853 672343 596688 84407602 83710828 283555 407110 428903 540277 363913 0 1076371 947387 X 80763545 71682689 2567686 11080752 83331231 82763441 84407602 83710828 1479912 -1839420 -208282 0 X 0 1 X 1 0 X 11438760 24798526 4753056 4637754 8299341 53927437 11438760 24798526 4753056 4637754 8299341 53927437 24783127 29144310 66663 471933 336224 269589 538106 1682515 429170 936924 1366094 25388 3401 31947 60736 57036782 6844129 0.51100 0.60270 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2019 AMOUNT: $ 25,388. 2020 AMOUNT: $ 3,401. 2021 AMOUNT: $ 31,947. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2158792 1208514 22451 3344855 1969463 189329 2158792 1869005 129494 29036 1969463 1798702 90936 20633 1869005 1794673 54008 49979 1798702 0.00000 0.96000 0.04000 1 0 12045743 12045743 56621472 4613056 52008416 2796058 1253563 1542495 819680 315078 504602 66101256 X 9130247 -1839420 59746 521678 -1257996 10388243 11194 11194 10399437 9489755 59746 59746 9430009 11194 -521678 -510484 8919525 PART V, LINE 4: THE INTENDED USE OF THE ENDOWMENT FUNDS IS TO SUPPORT THE GENERAL OPERATIONS OF LA JOLLA MUSIC SOCIETY ("LJMS"). PART X, LINE 2: LJMS IS A PUBLIC CHARITY AND IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND SECTION 23701(D) OF THE CALIFORNIA REVENUE AND TAXATION CODE. LJMS BELIEVES THAT 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. LJMS IS NOT A PRIVATE FOUNDATION. PART XI, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 227,805. RENTAL EXPENSES 293,873. PART XII, LINE 4B - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES -227,805. RENTAL EXPENSES -293,873. SUMMERFEST GALA 662570 608771 53799 47197 67845 4643 5192 WINTERFEST GALA 783432 742556 40876 9208 59931 16202 17587 1446002 1351327 94675 56405 127776 20845 22779 227805 -133130 X X X 0 0 0 0 0 0 0 0 0 TODD SCHULTZ PRESIDENT & CEO 264808 0 0 0 0 0 6044 0 8605 0 279457 0 0 0 CHRIS BENAVIDES FORMER DIR. OF FINANCE EMBEZZLEMENT 0 162500 0 SCHEDULE L, PART I: IN FEBRUARY 2021, THE LA JOLLA MUSIC SOCIETY ("LJMS") TERMINATED ITS LONGTIME DIRECTOR OF FINANCE AFTER THE ORGANIZATION DISCOVERED THAT HE HAD DIVERTED LJMS'S FUNDS FOR HIS PERSONAL USE. LJMS REPORTED THIS DISCOVERY TO LAW ENFORCEMENT AND A FORENSIC AUDIT WAS UNDERTAKEN TO DETERMINE THE FULL EXTENT OF THE THEFT AND DISCLOSED THE DIVERSION OF FUNDS ON ITS FORM 990 FOR THE TAX YEAR ENDED SEPTEMBER 30, 2021.IN FEBRUARY 2022, LAW ENFORCEMENT INVESTIGATION AND THE FORENSIC AUDIT WERE COMPLETED. THE FORMER DIRECTOR OF FINANCE PLEADED GUILTY IN FEDERAL COURT TO WIRE FRAUD, ADMITTING THAT WHILE EMPLOYED, HE EMBEZZLED MORE THAN $650,000 OVER A 10 YEAR PERIOD FROM LJMS AND USED THE MONEY TO PAY HIS PERSONAL EXPENSES. HE WAS SENTENCED IN AUGUST 2022 TO 30 MONTHS IN CUSTODY FOLLOWED BY 36 MONTHS OF SUPERVISED RELEASE. THE COURT IMPOSED A RESTITUTION ORDER. LJMS FILED A CIVIL LAWSUIT AGAINST THE FORMER DIRECTOR OF FINANCE TO RECOVER THE $650,000 OF DIVERTED FUNDS BUT DISMISSED THE LAWSUIT ON NOVEMBER 8, 2022 DUE TO APPARENT LACK OF RECOVERABLE ASSETS.LJMS HAS IMPLEMENTED PROCEDURES TO PREVENT A RECURRENCE OF THIS SITUATION INCLUDING:- HIRED AN EXTERNAL FIRM TO OVERSEE ITS ACCOUNTING FOR PRIOR YEAR AND CURRENT YEAR AS WELL TO ADVISE ON THE ORGANIZATION'S INTERNAL CONTROLS AND FINANCE FUNCTIONS- HIRED A NEW FINANCIAL MANAGEMENT TEAM AND A NEW DIRECTOR OF FINANCE - INCREASED THE NUMBER OF AUDIT COMMITTEE MEETINGS - ENGAGED A NEW OUTSIDE AUDIT FIRM X 11 116200 FMV X 33 24246 COST 0 0 1 0 PART I, COLUMN (B): LJMS IS REPORTING IN PART I, COLUMN (B), THE NUMBER OF CONTRIBUTORS. FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION'S BYLAWS WERE AMENDED ON MAY 25, 2022 TO CHANGE THE NAME OF THE ORGANIZATION TO "LA JOLLA MUSIC SOCIETY DOING BUSINESS AS THE CONRAD OR THE CONRAD PREBYS PERFORMING ARTS CENTER." OTHER AMENDMENTS INCLUDE REVISIONS TO: - ARTICLE V, BOARD OF DIRECTORS - ARTICLE VI, OFFICERS - ARTICLE VIII, COMMITTEES FORM 990, PART VI, SECTION B, LINE 11B THE DIRECTOR OF FINANCE REVIEWS THE FORM 990 IN DETAIL. SHE PROVIDES THE AUDIT COMMITTEE WITH A GENERAL OVERVIEW OF THE FORM 990 AND ITS COMPONENT PARTS. SHE ALSO HOLDS A SUMMARY MEETING WITH THE PRESIDENT & CEO WHO PROVIDE FINAL APPROVAL. A COMPLETE COPY OF THE 990 IS PROVIDED TO EACH MEMBER OF THE BOARD, PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES ARE ENCOURAGED TO REPORT ANY CONFLICTS OF INTEREST TO THE PRESIDENT. FAILURE TO REPORT CONFLICTS ARE GROUNDS FOR TERMINATION. THE PRESIDENT MUST REPORT TO THE BOARD ANY CONFLICTS OF INTEREST. IN REGARD TO BOARD MEMBERS, LA JOLLA MUSIC SOCIETY SENDS OUT AN ANNUAL EMAIL TO ALL BOARD MEMBERS ASKING IF ANY CONFLICTS OF INTEREST MAY EXIST. BOARD MEMBERS ARE ALSO ASKED ABOUT CONFLICTS OF INTEREST DURING THE ANNUAL MEETING OR THE FIRST MEETING OF THE NEW FISCAL YEAR. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMMITTEE SUPERVISES AND APPROVES COMPENSATION FOR THE ORGANIZATION'S PRESIDENT. A PERFORMANCE REVIEW EXCERPTED FROM "BOARDROOM DANCING: A PRACTICAL HANDBOOK FOR NONPROFIT BOARDS," PUBLISHED BY COMPASSPOINT NONPROFIT SERVICES WAS USED. COMPENSATION INFORMATION WAS GATHERED FROM ALL OF THE MAJOR ARTS ORGANIZATIONS IN SAN DIEGO AS WELL AS FROM THE EXECUTIVE RECRUITER THAT ASSISTED IN THE HIRING OF PREVIOUS PRESIDENTS. DATA FROM A COMPENSATION STUDY OF PRESIDENTS IN NOT-FOR-PROFIT ORGANIZATIONS WITH SIMILAR BUDGET SIZES WAS USED TO CREATE A FAIR COMPENSATION PACKAGE. THIS PROCESS OCCURRED WHEN THE NEW PRESIDENT WAS HIRED AT THE BEGINNING OF 2021. HIS 2021-22 INCREASE IN JANUARY 2022 CAME FROM HIS ORIGINAL BOARD APPROVED CONTRACT WHICH DID FOLLOW THIS PROCESS. THE ONLY OTHER OFFICER THAT THE ORGANIZATION HAS IS THE ARTISTIC DIRECTOR WHOSE SALARY IS SET BY THE ORGANIZATION'S CEO. THIS PROCESS WAS LAST CONDUCTED IN AUGUST 2022. THE ORGANIZATION DOES NOT HAVE ANY KEY EMPLOYEES. FORM 990, PART VI, SECTION C, LINE 19 LJMS MAKES ITS AUDITED FINANCIAL STATEMENTS, FORM 990, GOVERNING DOCUMENTS AND POLICIES AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G PAYROLL FEES: PROGRAM SERVICE EXPENSES 8,919. MANAGEMENT AND GENERAL EXPENSES 1,121. FUNDRAISING EXPENSES 1,468. TOTAL EXPENSES 11,508. PRODUCTION FEES: PROGRAM SERVICE EXPENSES 156,383. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 156,383. PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 598,354. MANAGEMENT AND GENERAL EXPENSES 149,589. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 747,943. ARTIST FEES: PROGRAM SERVICE EXPENSES 1,507,276. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,507,276. 7600 FAY AVENUE LLC 7600 FAY AVENUE LA JOLLA CA 92067 465723508 REAL ESTATE CA 187413 75402396 LA JOLLA MUSIC SOCIETY