2021-06-01T17:03:23-05:00 2020-09-30 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2019-10-01 860107517 THE HEARD MUSEUM HEAR 6022528840 2301 N CENTRAL AVE PHOENIX AZ 85004 DAVID ROCHE CEO 6022528840 2021-05-08 1 JACQUELINE ECKMAN P01300648 6022662248 2021-05-08 2019 2022-09-23 18:48:47Z DAVID ROCHE 2301 N CENTRAL AVE PHOENIX AZ 85004 19543261 0 X WWW.HEARD.ORG X 1929 AZ TO BE THE WORLD'S PREEMINENT MUSEUM FOR THE PRESENTATION, INTERPRETATION AND ADVANCEMENT OF AMERICAN INDIAN ART, EMPHASIZING ITS INTERSECTION WITH BROADER ARTISTIC AND CULTURAL THEMES. 37 37 133 349 0 0 4934413 5972794 2046825 1473069 191342 1392544 1863301 1157538 9035881 9995945 0 0 0 0 4530366 3978775 0 0 552632 6118577 5002599 10648943 8981374 -1613062 1014571 26686923 26854068 2177898 2244771 24509025 24609297 X THE MISSION OF THE HEARD MUSEUM IS TO BE THE WORLD'S PREEMINENT MUSEUM FOR THE PRESENTATION, INTERPRETATION AND ADVANCEMENT OF AMERICAN INDIAN ART, EMPHASIZING ITS INTERSECTION WITH BROADER ARTISTIC AND CULTURAL THEMES. 0 0 6090423 2679748 SEE SCHEDULE O. 6090423 1 1 0 0 0 0 0 1 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 0 1 174 0 133 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 37 37 0 0 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X DAVID ROCHE 6022528840 2301 N CENTRAL AVE PHOENIX AZ 85004 DAVID ROCHE CEO 40.00 X 264124 0 7185 JOHN BULLA COO 40.00 X 177450 0 7185 ROBIN KLUNG CFO (LEFT 04/20) 40.00 X 146063 0 15809 DANIEL HAGERTY DIRECTOR STRATEGIC DEVELOPMENT 40.00 X 145276 0 15026 CAROL FORD CFO (STARTED 04/20) 40.00 X 0 0 0 WICK PILCHER CHAIR 4.00 X X 0 0 0 JOHN LOMAX VICE CHAIR 4.00 X X 0 0 0 KAREN ABRAHAM TREASURER 4.00 X X 0 0 0 JIM HUNTWORK SECRETARY 4.00 X X 0 0 0 PATRICIA K HIBBELER SECRETARY (LEFT 09/19) 4.00 X X 0 0 0 LELAND W PETERSON TRUSTEE 1.00 X 0 0 0 JANE PRZESLICA TRUSTEE 1.00 X 0 0 0 SUE SNYDER TRUSTEE (LEFT 05/20) 1.00 X 0 0 0 GREGORY BOYCE TRUSTEE 1.00 X 0 0 0 CRAIG COHEN MD TRUSTEE 1.00 X 0 0 0 ADRIAN COHEN TRUSTEE 1.00 X 0 0 0 GINGER SYKES TORRES TRUSTEE 1.00 X 0 0 0 MARGO SIMONS TRUSTEE 1.00 X 0 0 0 NADINE BASHA TRUSTEE 1.00 X 0 0 0 SHARRON LEWIS TRUSTEE 1.00 X 0 0 0 DAVID HANSEN TRUSTEE 1.00 X 0 0 0 ROBERT A COWIE TRUSTEE 1.00 X 0 0 0 JOHN MELAMED TRUSTEE 1.00 X 0 0 0 SUSAN H NAVRAN TRUSTEE 1.00 X 0 0 0 JOHN FURTH TRUSTEE 1.00 X 0 0 0 SCOTT MONTGOMERY TRUSTEE 1.00 X 0 0 0 STEPHEN R LEWIS TRUSTEE 1.00 X 0 0 0 SUSAN CHANDLER TRUSTEE 1.00 X 0 0 0 ROBERT MEYER TRUSTEE 1.00 X 0 0 0 TRUDY WIESENBERGER TRUSTEE 1.00 X 0 0 0 JUDY DWORKIN TRUSTEE 1.00 X 0 0 0 SCOTT H O'CONNOR TRUSTEE 1.00 X 0 0 0 DON SMITH TRUSTEE 1.00 X 0 0 0 CHRISTY VEZOLLES TRUSTEE 1.00 X 0 0 0 DAVID WILSHIN TRUSTEE 1.00 X 0 0 0 JANIS LYON TRUSTEE 1.00 X 0 0 0 JOHN COGGINS TRUSTEE 1.00 X 0 0 0 JOHN GRAHAM TRUSTEE 1.00 X 0 0 0 MARIGOLD LINTON TRUSTEE 1.00 X 0 0 0 ELIZABETH MURFEE DECONCINI TRUSTEE 1.00 X 0 0 0 WILLIAM RIDENOUR TRUSTEE 1.00 X 0 0 0 MARK B BONSALL TRUSTEE (LEFT 09/19) 1.00 X 0 0 0 CARRIE L HULBURD TRUSTEE (LEFT 09/19) 1.00 X 0 0 0 TONY ASTORGA TRUSTEE 1.00 X 0 0 0 ARLENE K BEN-HORIN TRUSTEE 1.00 X 0 0 0 TREVOR REED TRUSTEE 1.00 X 0 0 0 732913 0 45205 3 0 1 0 RIESTER 3344 E CAMELBACK ROAD PHOENIX AZ 85018 MARKETING & PROMOTION 293455 DLR GROUP INC 6225 N 24TH STREET STE 250 PHOENIX AZ 85016 CONSTRUCTION DESIGN CONSULTING 147501 PRO EM LLC 1450 E GRANT STREET PHOENIX AZ 85034 EVENT MANAGEMENT SERVICES 123084 3 956398 287978 122492 177670 4428256 380976 5972794 ADMISSIONS 611710 733776 733776 FAIR INCOME 900099 445015 445015 PRIVATE USE FEES 721000 294238 294238 EDUCATIONAL REVENUE 611710 40 40 1473069 279771 279771 4763 4763 9282283 8169510 1112773 1112773 1112773 104490 287978 176685 -72195 -72195 2407800 1201121 1206679 1206679 OTHER REVENUES 900099 18291 18291 18291 9995945 2679748 0 1343403 558432 182889 273280 102263 2893345 2060481 611415 221449 286370 229695 41823 14852 240628 165209 54272 21147 24476 24476 35688 35688 57448 57448 763154 540293 182491 40370 427080 427080 456747 267822 159180 29745 133407 85539 28923 18945 576418 474086 87297 15035 22124 10109 10865 1150 29159 29159 1660063 1527258 83003 49802 125679 125679 EXHIBITS 405113 405113 DUES, LICENSES, AND SUB 112607 28085 84348 174 OTHER EXPENSES 105180 45588 21892 37700 ART AND LIBRARY ACQUISI 68256 68256 8981374 6090423 2338319 552632 267672 1021463 1355979 2374954 692700 157924 2006 1932 1380685 1622346 135698 93829 44838394 30634973 15453688 14203421 7310076 7293687 87198 84512 1221 0 26686923 26854068 724034 448121 547373 384181 799533 994279 356000 106958 62190 2177898 2244771 X 17508811 17014856 7000214 7594441 24509025 24609297 26686923 26854068 X 1014571 -909603 -4696 X X 0 1 X 1 0 X 4117227 9484468 4278315 4934413 5972794 28787217 4117227 9484468 4278315 4934413 5972794 28787217 7574969 21212248 202995 206577 306536 336926 284534 1337568 63640 32190 20996 34287 18291 169404 30294189 28933514 0.70020 0.67380 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS - 2015 AMOUNT: $ 25,440. 2016 AMOUNT: $ 32,190. 2017 AMOUNT: $ 20,996. 2018 AMOUNT: $ 34,287. 2019 AMOUNT: $ 18,291. GROSS FUNDRAISING REVENUE - 2015 AMOUNT: $ 38,200. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X X 1 9428253 104073 457948 414133 9576141 9797361 78270 447378 9428253 10020798 6500 759969 989906 9797361 5525931 4260566 617589 383288 10020798 5200409 321321 440944 436743 5525931 0.15400 0.78430 0.06170 1 1 1 22512378 13588360 8924018 7959410 3848871 4110539 4296268 3531454 764814 10070338 9666288 404050 14203421 GIFT ANNUITY PAYABLE 15671 DEPOSITS 46519 62190 X 10312861 -909603 26600 56246 -826757 11139618 57448 -1201121 -1143673 9995945 10151647 26600 1201121 1227721 8923926 57448 57448 8981374 PART III, LINE 1A: THE COLLECTIONS OF THE MUSEUM INCLUDE SEVERAL CATEGORIES OF NATIVE AMERICAN ART, PRIMARILY KACHINA DOLLS, BASKETS, JEWELRY, TEXTILES, CERAMICS, AND FINE ART, AS WELL AS COLLECTIONS FROM OTHER INDIGENOUS PEOPLES OF LATIN AMERICA, AFRICA AND OCEANIA, AND ARE EXPENSED IN THE PERIOD PURCHASED. IN CONFORMITY WITH THE PRACTICE FOLLOWED BY MANY MUSEUMS, ART OBJECTS CONTRIBUTED TO THE MUSEUM ARE NOT INCLUDED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. FURTHERMORE, IN CONFORMITY WITH INDUSTRY PRACTICE, THE MUSEUM HAS NOT RECORDED THE VALUE OF ITS COLLECTIONS ON THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION. THE FAIR VALUE OF CERTAIN COLLECTIONS IS DETERMINED BASED ON THIRD-PARTY EVIDENCE OF COMPARABLE ART SOLD THROUGH AUCTION HOUSES. THE FAIR VALUE OF COLLECTIONS CONTRIBUTED TO THE MUSEUM DURING THE YEAR ENDED SEPTEMBER 30, 2020 WAS $831,695. PART III, LINE 4: THE CORPORATION MAINTAINS A MUSEUM IN THE CITY OF PHOENIX DEDICATED TO THE ADVANCEMENT OF AMERICAN INDIAN ART. THE HEARD MUSEUM ART COLLECTION CONCENTRATES ON THE LIVES OF NATIVE PEOPLES AND CONSISTS OF MORE THAN 40,000 OBJECTS. THE TWO FOCAL AREAS OF THE COLLECTION ARE COMPREHENSIVE CULTURAL COLLECTIONS FROM THE GREATER SOUTHWEST AND CONTEMPORARY NATIVE FINE ART FROM NORTH AMERICA. KEY COLLECTIONS INCLUDE HOPI KATSINA DOLLS; NAVAJO AND ZUNI JEWELRY, NAVAJO TEXTILES, SOUTHWESTERN CERAMICS FROM PREHISTORY TO THE PRESENT, AND BASKETS FROM THE SOUTHWEST, CALIFORNIA, THE GREAT BASIN AND THE NORTHWEST. THE APPROXIMATELY 4,000 FINE ART WORKS IN THE HEARD MUSEUM COLLECTION DOCUMENT THE AMERICAN INDIAN FINE ART MOVEMENT FROM THE 20TH CENTURY TO THE PRESENT, AND INCLUDE WORK BY SOME OF THE FINEST HISTORIC AND CONTEMPORARY AMERICAN INDIAN ARTISTS. PART V, LINE 4: THE INTENDED USE OF THE ENDOWMENT FUNDS IS TO PROVIDE FOR THE FUTURE FINANCIAL STRENGTH OF THE ORGANIZATION. PART V, LINE 1, COLUMN (E): THE PRIOR YEAR BEGINNING BALANCE IN THE ENDOWMENT FUNDS HAS BEEN INCREASED TO INCLUDE THE ASSETS HELD AS AN ENDOWMENT BY THE HEARD FAMILY ENDOWMENT TRUST (SEE SCHEDULE R) THAT IS AN IRREVOCABLE TRUST CREATED BY THE HEARD FAMILY FOR THE BENEFIT OF THE HEARD MUSEUM. SINCE THESE ASSETS ARE CURRENTLY HELD AS AN ENDOWMENT BY THE TRUST FOR THE BENEFIT OF THE MUSEUM, THEY ARE NOW INCLUDED ON THIS SCHEDULE. IN ADDITION, THERE WAS A RESTATEMENT OF THE ENDOWMENT BALANCE DUE TO THE CORRECTION OF AN ERROR AS EXPLAINED BELOW: DURING FISCAL YEAR 2016 MANAGEMENT OF THE MUSEUM DETERMINED THAT THE BALANCE OF THE ENDOWMENT AS OF OCTOBER 1, 2015 WAS INCORRECT. MANAGEMENT DETERMINED THAT A PORTION OF A CHARITABLE GIFT ANNUITY HAD BEEN INCLUDED IN THE ENDOWMENT AT THE INCORRECT AMOUNT. THIS RESULTED IN A CORRECTION TO THE ENDOWMENT BY REMOVING $415,657. ADDITIONALLY, MANAGEMENT OF THE MUSUEM DETERMINED THAT THE CAPITAL APPRECIATION OF A PERPETUAL TRUST DATING BACK TO 1932 WAS IMPROPERLY REFLECTED AS UNRESTRICTED NET ASSETS AND SHOULD HAVE BEEN PERMANENTLY RESTRICTED NET ASSETS. THIS RESULTED IN A CORRECTION OF AN ERROR BY DECREASING UNRESTRICTED NET ASSETS AND INCREASING PERMANETLY RESTRICTED NET ASSETS BY $2,567,288. THIS ERROR DID NOT HAVE AN IMPACT ON THE TOTAL ENDOWMENT BALANCE. HOWEVER, THE ERROR CAUSED A DEFICIT IN THE UNRESTRICTED PORTION OF THE ENDOWMENT BALANCE THAT WAS SUBSIDIZED BY A TRANSFER IN TOTALING $744,825 TO MAKE THE ENDOWMENT BALANCE WHOLE. THE REVISED ENDOWMENT BALANCE AS OF OCTOBER 1, 2015 WAS $5,200,409. ACCORDINGLY, SCHEDULE D, PART V, LINE 1A (E) DOES NOT AGREE TO THE FISCAL 2015 ENDING BALANCE AS FOLLOWS: FISCAL 2015 ENDING BALANCE $4,796,241 LESS CHARTIABLE GIFT ANNUITY CORRECTION ($415,657) PLUS DEFICIT CORRECTION $744,825 PLUS PERPETUAL TRUST ADJUSTMENT $75,000 ----------- LINE 1A(E) $5,200,409 PART X, LINE 2: THE HEARD MUSEUM QUALIFIES AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC) AND, ACCORDINGLY, THERE IS NO PROVISION FOR INCOME TAXES. IN ADDITION, THE HEARD MUSEUM QUALIFIES FOR THE CHARITABLE CONTRIBUTION DEDUCTION UNDER SECTION 170 OF THE IRC AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT DEEMED TO BE A PRIVATE FOUNDATION. INCOME DETERMINED TO BE UNRELATED BUSINESS TAXABLE INCOME (UBTI) WOULD BE TAXABLE. THE MUSEUM EVALUATES ITS UNCERTAIN TAX POSITIONS, IF ANY, ON A CONTINUAL BASIS THROUGH REVIEW OF ITS POLICIES AND PROCEDURES, REVIEW OF ITS REGULAR TAX FILINGS, AND DISCUSSIONS WITH OUTSIDE EXPERTS. MANAGEMENT BELIEVES THAT THE HEARD MUSEUM HAS NO UNCERTAIN TAX POSITIONS AS OF SEPTEMBER 30, 2020. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN GIFT ANNUITIES -4,696. ELIMINATE SEPARATE TRUST ACTIVITIES INCLUDED IN REVENUES 60,942. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD -1,201,121. SPECIAL EVENT EXPENSES MOVED FROM FUNCTIONAL EXPENSE SCHEDULE PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 1,201,121. SPECIAL EVENT EXPENSES MOVED FROM FUNCTIONAL EXPENSE SCHEDULE MOONDANCE 392468 287978 104490 89326 3116 84243 392468 287978 104490 89326 3116 84243 176685 -72195 X X 0 0 0 0 0 0 0 0 0 DAVID ROCHE CEO 264124 0 0 0 0 0 0 0 7185 0 271309 0 0 0 JOHN BULLA COO 177450 0 0 0 0 0 0 0 7185 0 184635 0 0 0 ROBIN KLUNG CFO (LEFT 04/20) 146063 0 0 0 0 0 0 0 15809 0 161872 0 0 0 DANIEL HAGERTY DIRECTOR STRATEGIC DEVELOPMENT 145276 0 0 0 0 0 0 0 15026 0 160302 0 0 0 X 18 EXPLANATION-LINE 33 X EXPLANATION-LINE 33 X 3 33720 FMV X 14 291256 FMV PER DONOR X CATERED FOOD 4 35000 FMV X GUILD DONATION 2 21000 FMV 0 0 1 1 PART I, COLUMN (B): COLUMN B INCLUDES THE NUMBER OF CONTRIBUTIONS. PART I, LINE 32B: A BROKER IS USED FOR LIQUIDATION OF SECURITIES PART I, LINE 33: DURING THE YEAR, THE ORGANIZATION RECEIVED $831,695 OF WORKS OF ART, DONATED TO ITS COLLECTION DURING THE YEAR ENDED SEPTEMBER 30, 2020. IN CONFORMITY WITH THE PRACTICE FOLLOWED BY MANY MUSEUMS, OBJECTS CONTRIBUTED TO THE ORGANIZATION ARE NOT INCLUDED AS REVENUE OR EXPENSE ON FORM 990, PARTS VIII OR IV. FORM 990, PART III, LINE 4A SINCE ITS FOUNDING IN 1929, THE HEARD MUSEUM HAS GROWN IN SIZE AND STATURE TO BECOME RECOGNIZED INTERNATIONALLY FOR THE QUALITY OF ITS COLLECTIONS, WORLD-CLASS EXHIBITIONS, EDUCATIONAL PROGRAMMING AND ITS UNMATCHED FESTIVALS. DEDICATED TO THE ADVANCEMENT OF AMERICAN INDIAN ART, THE HEARD SUCCESSFULLY PRESENTS THE STORIES OF AMERICAN INDIAN PEOPLE FROM A FIRST-PERSON PERSPECTIVE, AS WELL AS EXHIBITIONS THAT SHOWCASE THE BEAUTY AND VITALITY OF TRADITIONAL AND CONTEMPORARY ART. THE HEARD MUSEUM SETS THE STANDARD FOR COLLABORATING WITH AMERICAN INDIAN ARTISTS AND TRIBAL COMMUNITIES TO PROVIDE VISITORS WITH A DISTINCTIVE PERSPECTIVE ABOUT THE ART OF NATIVE PEOPLE, ESPECIALLY THOSE FROM THE SOUTHWEST. THE HEARD ACCOMPLISHES ITS MISSION BY: ORGANIZING EXHIBITS THAT SHOWCASE BOTH ITS COLLECTION OF MORE THAN 40,000 FINE ARTWORKS AND CULTURAL ARTIFACTS IN ITS PERMANENT COLLECTION AND ARTWORKS FROM OTHERS; HOLDING SPECIAL EVENTS THAT HIGHLIGHT ONE OR MORE ASPECTS OF NATIVE ART, CULTURES, AND/OR HISTORY; HOSTING APPROXIMATELY 8,500 SCHOOL CHILDREN TOURING THE MUSEUM EACH YEAR; SUPPORTING THE CAREERS OF AMERICAN INDIAN ARTISTS IN THE HEARD MUSEUM SHOPS AND BOOKS & MORE, A BOUTIQUE BOOKSTORE AND GIFT SHOP; OFFERING INDIGENOUS INGREDIENTS WITHIN THE MENU OF THE MUSEUM'S CAFE AND COFFEE CANTINA; AND OFFERING PROGRAMMING SUCH AS LECTURES, BOOK SIGNINGS AND PRESENTATIONS BY EXPERTS IN ART, HISTORY, AND CULTURES. APPROXIMATELY 78,000 PEOPLE VISITED THE MUSEUM DURING THE YEAR. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE SHALL CONSIST OF THE BOARD OFFICERS, THE IMMEDIATE PAST BOARD CHAIR, IF STILL A TRUSTEE, AND THE COMMITTEE CHAIR OF EACH STANDING COMMITTEE OTHER THAN THE AUDIT COMMITTEE. WHENEVER, IN THE JUDGMENT OF THE BOARD CHAIR, BOARD ACTION IS NECESSARY OR APPROPRIATE AND IT IS NOT PRACTICAL TO CALL A SPECIAL MEETING OF THE BOARD, THE EXECUTIVE COMMITTEE SHALL HAVE AND MAY EXERCISE ALL THE AUTHORITY OF THE BOARD, EXCEPT THAT THE EXECUTIVE COMMITTEE SHALL NOT HAVE AUTHORITY TO: (I) APPOINT OR REMOVE THE DIRECTOR; (II) ELECT OR REMOVE TRUSTEES; (III) AMEND THE BYLAWS; (IV) SELL, LEASE OR OTHERWISE DISPOSE OF REAL OR PERSONAL PROPERTY WITH A VALUE IN EXCESS OF $1,000,000; OR (V) INCUR ANY DEBT OR OTHER OBLIGATION OR LIABILITY IN EXCESS OF $500,000. IN ADDITION, BEFORE TAKING ANY ACTION WHICH THE EXECUTIVE COMMITTEE KNOWS (A) WOULD BE CONTROVERSIAL IF CONSIDERED BY THE FULL BOARD OR (B) MIGHT ADVERSELY AFFECT THE STANDING OR REPUTATION OF THE MUSEUM, THE EXECUTIVE COMMITTEE SHOULD DETERMINE WHETHER THERE IS AN EMERGENCY OR OTHER CIRCUMSTANCE REQUIRING SUCH ACTION TO BE TAKEN BY THE EXECUTIVE COMMITTEE RATHER THAN THE FULL BOARD AND REPORT SUCH FINDINGS IN THE MINUTES REGARDING SUCH ACTION. FORM 990, PART VI, SECTION A, LINE 6 MEMBERSHIP IN THE HEARD MUSEUM SHALL BE OPEN TO ALL PERSONS UPON PAYMENT OF SUCH DUES AS THE BOARD OF TRUSTEES MAY FROM TIME TO TIME ESTABLISH. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY AN OUTSIDE ACCOUNTING FIRM AND REVIEWED BY THE CFO, COO AND DIRECTOR/CEO, WITH A FINAL REVIEW BY THE AUDIT COMMITTEE AND DISTRIBUTION TO THE BOARD OF TRUSTEES BEFORE FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE AND NATURE OF HIS OR HER FINANCIAL INTEREST TO THE TRUSTEES AND MEMBERS OF COMMITTEES WITH BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER DISCLOSURE OF THE FINANCIAL INTEREST, THE INTERESTED PERSON SHALL LEAVE THE BOARD OR COMMITTEE MEETING WHILE THE FINANCIAL INTEREST IS DISCUSSED AND VOTED UPON. THE REMAINING BOARD OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. IN ANY CASE WHERE THE HEARD ENTERS INTO A TRANSACTION IN WHICH A TRUSTEE IS AN INTERESTED PARTY, THE TRUSTEE SHALL NOT PARTICIPATE IN ANY DECISIONS CONCERNING THE SOURCE OF THE CONFLICT. THIS PROVISION SHALL ALSO APPLY IN ANY CASE WHERE A FAMILY MEMBER OF A TRUSTEE IS EMPLOYED BY OR IS A CONTRACTOR TO THE MUSEUM AND SHALL INCLUDE ANY DISCUSSIONS OR DECISIONS RELATED TO EMPLOYMENT OR OTHER ASSOCIATION, PERFORMANCE EVALUATION OR COMPENSATION OF A FAMILY MEMBER. EACH TRUSTEE AND MEMBER OF A COMMITTEE WITH BOARD DELEGATED POWERS SHALL ANNUALLY SIGN A STATEMENT WHICH AFFIRMS THAT SUCH PERSON (A) HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY,(B) HAS READ AND UNDERSTANDS THE POLICY,(C) HAS AGREED TO COMPLY WITH THE POLICY, AND(D) UNDERSTANDS THAT THE HEARD IS A TAX-EXEMPT ORGANIZATION AND THAT IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. THE MINUTES OF THE BOARD AND ALL COMMITTEES WITH BOARD DELEGATED POWERS SHALL CONTAIN A RECORD OF ANY VOTES TAKEN IN CONNECTION THEREWITH. FORM 990, PART VI, SECTION B, LINE 15A THE SEARCH AND EXECUTIVE COMMITTEES OF THE BOARD OF TRUSTEES REVIEWED THE SALARY OF THE DIRECTOR/CEO PRIOR TO EMPLOYMENT INITIATIONS. EXECUTIVE COMPENSATION WAS REVIEWED AGAINST THE MOST RECENT AMERICAN ALLIANCE OF MUSEUMS NATIONAL MUSEUM SALARY SURVEY REPORT AND AGAINST COMPENSATION OF OTHER NON-PROFIT ORGANIZATIONS. THE DIRECTOR/CEO'S SALARY REMAINED UNCHANGED THROUGH THE FISCAL YEAR ENDED SEPTEMBER 30, 2020. A REVIEW WAS PERFORMED PRIOR TO THE END OF THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 TO DETERMINE COMPENSATION FOR THE UPCOMING FISCAL YEAR. THE DIRECTOR/CEO REVIEWS SALARY OF KEY EMPLOYEES ANNUALLY INCLUDING A COMPARISON OF THE COMPENSATION OF OTHER LOCAL NOT-FOR-PROFIT ORGANIZATIONS. THE PROCESS WAS LAST REVIEWED IN 2020. FORM 990, PART VI, SECTION C, LINE 19 THE ARTICLES OF INCORPORATION, BY-LAWS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN GIFT ANNUITY -4,696. FORM 990, PART XII, PG 12, LINE 2C: THERE HAS BEEN NO CHANGE IN EITHER THE OVERSIGHT PROCESS OR THE SELECTION PROCESS DURING THE TAX YEAR. HEARD FAMILY ENDOWMENT TRUST JP MORGAN CHASE 270 PARK NEW YORK NY 10017 946095432 INVESTMENT AZ 4947(A)(1) 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 HEARD FAMILY ENDOWMENT TRUST C 122492 CASH TRANSFERRED