2020-07-15T21:36:26-05:00 2019-06-30 561750124 BATCHELOR TILLERY & ROBERTS LLP 3605 GLENWOOD AVENUE SUITE 350 RALEIGH NC 27612 990 2018-07-01 237071511 NORTH CAROLINA MUSEUM OF ART FOUNDATION NORT 9198396262 4630 MAIL SERVICE CENTER RALEIGH NC 276994630 VALERIE HILLINGS CEO 9198396262 2020-07-15 1 KEITH A WASSERMAN P00072834 9197878212 204.16.136.178 2020-07-15 21:35:34 ED P E377C45BE84EA85C77F2D8CFF9BB40EB03EE0A53 0969DB63CC74AF5326F6F08A4F95A0EF0B5BC867 2018 2020-09-22 18:59:49Z VALERIE HILLINGS 2100 BLUE RIDGE ROAD RALEIGH NC 27607 17906041 0 X WWW.NCARTMUSEUM.ORG X 1969 NC TO FOSTER AND PROMOTE THE GROWTH, PROGRESS AND GENERAL WELFARE OF THE NC MUSEUM OF ART. 20 20 199 396 340624 -102135 11860785 4819592 5303058 5506380 1164447 1788679 404487 527363 18732777 12642014 134300 0 0 0 5444523 4757351 0 0 1734103 11985345 7775361 17564168 12532712 1168609 109302 63915936 66554402 1220625 5731365 62695311 60823037 X THE NORTH CAROLINA MUSEUM OF ART FOUNDATION INC.'S PRIMARY MISSION IS TO FOSTER AND PROMOTE THE GROWTH, PROGRESS, AND GENERAL WELFARE OF THE NORTH CAROLINA MUSEUM OF ART. THE FOUNDATION IS PRIMARILY RESPONSIBLE FOR FUNDRAISING ON BEHALF OF THE MUSEUM AND A SIGNIFICANT PART OF THE FUNDING REQUIRED TO OPERATE AND PROGRAM THE COMBINED (STATE AND FOUNDATION) ENTITY. IN ADDITION TO BEING THE PRIMARY FUNDRAISING ARM OF THE MUSEUM, THE FOUNDATION ALSO MANAGES A SIGNIFICANT MEMBERSHIP BASE FOR THE MUSEUM, UNDERWRITES ALL PUBLIC PROGRAMMING INCLUDING EXHIBITIONS AND A PERFORMING ARTS & FILM SERIES, OPERATES BOTH A RETAIL SHOP AND A FOOD SERVICE OPERATION (INCLUDING SPECIAL EVENTS CATERING AND RESTAURANTS), AND SERVICES AND MAINTAINS ALL OF THE MUSEUM'S INFORMATION TECHNOLOGY SYSTEMS FOR THE BENEFIT OF THE MUSEUM'S MEMBERS AND VISITORS. 0 0 5300115 2322249 THE MUSEUM OF ART IS PARTIALLY SUPPORTED BY STATE APPROPRIATIONS THAT LARGELY FUND STATE STAFF POSITIONS AND THEIR RELATED BENEFITS, AND A PORTION OF THE OPERATING COSTS OF RUNNING THE MUSEUM. THE NORTH CAROLINA MUSEUM OF ART FOUNDATION, INC. PROVIDES THE MAJORITY OF FINANCIAL SUPPORT NEEDED FOR EDUCATION AND CURATORIAL PROGRAMMING OF THE MUSEUM OF ART INCLUDING SUPPORT FOR STATEWIDE AND MUSEUM-BASED EDUCATION PROGRAMMING, SPECIAL TRAVELING ART EXHIBITIONS, SUPPLEMENTAL ART CONSERVATION FUNDS, AND PUBLIC PROGRAMMING. 3221202 3184131 THE NORTH CAROLINA MUSEUM OF ART FOUNDATION INC. PROVIDES DAY-TO-DAY MANAGEMENT OF THE MUSEUM'S ON-SITE FULL-SERVICE RESTAURANT, CONCESSION FOOD SERVICES, AND RETAIL STORE. IN ADDITION, THE FOUNDATION ALSO PLANS AND MANAGES A PORTFOLIO OF SPECIAL EVENTS INCLUSIVE OF CORPORATE RENTALS, CONFERENCES, WEDDINGS, DONOR CULTIVATION EVENTS, AND MEMBERSHIP PROGRAMMING. 159900 THE NORTH CAROLINA MUSEUM OF ART FOUNDATION, INC. PROVIDES ADDITIONAL SUPPORT TO THE MUSEUM OF ART BY CULTIVATING DONORS FOR COMMISSIONED WORKS OF ART AND CONTRIBUTIONS FOR ART ACQUISITIONS. ALL ART PURCHASED OR COMMISSIONED IS GIFTED BY THE FOUNDATION TO THE NORTH CAROLINA MUSEUM OF ART. A LARGE MAJORITY OF THE ARTWORK ADDED TO THE STATE'S ART COLLECTION IS GIFTED BY THE FOUNDATION. 8681217 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 1 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 177 1 1 199 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 X 20 20 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 0 X X VALERIE HILLINGS 9198396262 4630 MAIL SERVICE CENTER RALEIGH NC 276994630 DIANE BASTIAN BOARD DIRECTOR 1.11 X 0 0 0 JAMES B BLACK III BOARD DIRECTOR 1.11 X 0 0 0 ANGELIQUE BOWMAN BOARD DIRECTOR 1.11 X 0 0 0 PETER M BRISTOW BOARD DIRECTOR 1.11 X 0 0 0 DAVID BRODY PRESIDENT 1.11 X X 0 0 0 MARION L JOHNSON CHURCH BOARD DIRECTOR 1.11 X 0 0 0 BRIAN CIAVERELLA VICE-PRESIDENT 1.11 X X 0 0 0 JOE DAVY BOARD DIRECTOR 1.11 X 0 0 0 ANN B GOODNIGHT BOARD DIRECTOR 1.11 X 0 0 0 SAMUEL G HOOKER BOARD DIRECTOR 1.11 X 0 0 0 JESSICA MAYNARD BOARD DIRECTOR 1.11 X 0 0 0 RICHARD L MCNEEL BOARD DIRECTOR 1.11 X 0 0 0 GEORGE W PASCHAL III BOARD DIRECTOR 1.11 X 0 0 0 LARRY E ROBBINS BOARD DIRECTOR 1.11 X 0 0 0 LIZA ROBERTS BOARD DIRECTOR 1.11 X 0 0 0 LAURA ROBINETTE BOARD DIRECTOR 1.11 X 0 0 0 JAMES ROMANO BOARD DIRECTOR 1.11 X 0 0 0 BING SIZEMORE TREASURER 1.11 X X 0 0 0 RENEE SNYDERMAN BOARD DIRECTOR 1.11 X 0 0 0 CAROLE WILSON SECRETARY 1.11 X X 0 0 0 LAWRENCE J WHEELER MUSEUM DIRECTOR 47.00 X 368333 329445 65363 CATERRI M WOODRUM CHIEF EXECUTIVE OFFICER 40.00 X 310807 0 24950 VALERIE HILLINGS MUSEUM DIRECTOR 54.00 X 16383 49438 9484 SHARON L FRANK DIRECTOR OF FINANCE 40.00 X 101578 0 24038 DANIEL P GOTTLIEB DIRECTOR OF PLANNING & DESIGN 40.00 X 186224 0 19097 MARJORIE H HODGES DIRECTOR OF STRATEGIC INITIATIVES 40.00 X 136780 0 15048 1120105 378883 157980 6 0 1 0 MCGUIREWOODS LLP 800 E CANAL STREET RICHMOND VA 232193316 LEGAL FEES 115137 1 2410531 96744 2312317 365812 4819592 CAFE SALES 722514 2164898 305797 1859101 PROGRAM FEES 900099 2061034 2026207 34827 MUSEUM SHOP SALES 453220 1084775 1084775 OTHER OPERATING REVENUE 900099 195673 195673 5506380 1174039 1174039 2201 2201 5638619 5023979 614640 614640 614640 371310 96744 113974 257336 257336 393900 126074 267826 267826 12642014 3110982 340624 4370816 X 913166 248005 390190 274971 2957679 1366089 769850 821740 111473 54007 47616 9850 503638 279648 120444 103546 271395 160966 65799 44630 99845 -7489 107334 38287 38287 60524 5000 55524 236879 236879 1630570 1154306 253367 222897 418876 357332 61544 1301610 1081213 79480 140917 90067 43649 40562 5856 142528 101851 40677 287281 259850 5488 21943 39217 32346 5900 971 20017 20017 645610 610770 34840 39722 63 39659 EARNED INCOME EXPENSE 1173364 1173364 LECTURE, WORKSHOP & ART 730109 728609 1500 PRODUCTION EXPENSES 262695 262695 ART PURCHASES 159900 159900 398260 352147 22375 23738 12532712 8681217 2117392 1734103 X 5321462 7510425 470810 915047 1637665 812411 141107 40123 228141 169364 554823 17817352 2932869 15560891 14884483 34613075 35179739 4247759 4701831 1650000 1650000 45026 136156 63915936 66554402 1220625 758411 0 4972954 1220625 5731365 X 19250222 17744641 12361572 10798151 31083517 32280245 62695311 60823037 63915936 66554402 X 109302 263274 -2244850 X 0 1 X 1 0 X 17878819 5848556 6043601 11777452 4819592 46368020 999996 999996 1000000 83333 0 3083325 18878815 6848552 7043601 11860785 4819592 49451345 16007040 33444305 719661 692579 737099 919135 1176240 4244714 53696059 29215477 0.62280 0.63100 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 60524 0 0 60524 0 PART II-B, LINE 1: LOBBYING ACTIVITY EXPLANATION: DURING THE FISCAL YEAR ENDED 6/30/2019, $60,524 WAS PAID TO THE LAW FIRM OF SMITH, ANDERSON, BLOUNT, DORSETT, MICHELL & JERNIGAN, LLP FOR LOBBYING ASSISTANCE IN SEEKING ADDITIONAL STATE AND LOCAL SUPPORT FOR THE NORTH CAROLINA MUSEUM OF ART. ACTIVITIES INCLUDED MEETING WITH AND CONTACTING GOVERNMENT OFFICIALS AND LEGISLATORS. 38450407 1960293 1989023 1079686 234210 41085827 35301497 974588 2390442 216120 38450407 31152190 204021 4137344 192058 35301497 32396794 -966766 94709 183129 31152190 33005088 35208 -482758 160744 32396794 0.78600 0.21400 0 0 4430574 4430574 1462160 1342920 119240 11924618 1589949 10334669 14884483 ALTERNATIVE INVESTMENTS 4701831 F 4701831 OBLIGATIONS UNDER SPLIT-INTEREST AGREEMENTS 286404 DEFERRED REVENUES 4686550 4972954 12982797 263274 74340 240048 577662 12405135 236879 236879 12642014 12610221 74340 240048 314388 12295833 236879 236879 12532712 PART V, LINE 4: INTENDED USES OF ENDOWMENT FUNDS: THE FOUNDATION HAS ADOPTED INVESTMENT AND SPENDING POLICIES FOR ENDOWMENT ASSETS THAT ATTEMPT TO PROVIDE A PREDICTABLE STREAM OF FUNDING TO PROGRAMS SUPPORTED BY ITS ENDOWMENT. THE INVESTMENT POLICY WAS DEVELOPED WITH THE LONG-TERM INTERESTS OF THE ENDOWMENT IN MIND AND ADHERES TO ACCEPTED INVESTMENT AND FINANCIAL MANAGEMENT PRINCIPLES. THE INVESTMENT POLICY IS DESIGNED TO ENSURE PRUDENT MANAGEMENT OF THE ASSETS IN ORDER TO SERVE THE BEST LONG-TERM INTERESTS OF THE FOUNDATION. THE FOUNDATION EXPECTS ITS ENDOWMENT FUNDS, OVER TIME, TO PROVIDE A TOTAL REAL RATE OF RETURN OF 5%, NET OF FEES, OVER A THREE-YEAR ROLLING AVERAGE. ACTUAL RETURNS IN ANY GIVEN YEAR MAY VARY FROM THIS AMOUNT. THE FOUNDATION'S HISTORICAL SPENDING POLICY REFLECTS AN INTENDED APPROPRIATION OF 5% OF THE ENDOWMENT FUNDS FOR DISTRIBUTION EACH YEAR IN KEEPING WITH THE ANTICIPATED INVESTMENT RETURN. THE BOARD CLOSELY MONITORS ANTICIPATED INVESTMENT RETURNS RELATIVE TO CURRENT MARKET CONDITIONS EACH YEAR. ANY INVESTMENT RETURNS IN EXCESS OF THE ANNUAL DISTRIBUTION WILL REMAIN INVESTED IN THE ENDOWMENT AND WILL EARN ADDITIONAL RETURNS UNTIL APPROPRIATED IN FUTURE YEARS. PART XI, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES 113,974. RAFFLE EXPENSES 126,074. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES 113,974. RAFFLE EXPENSES 126,074. ART IN BLOOM 443438 96744 346694 8855 88066 PURIM EVENT 24616 24616 16692 361 468054 96744 371310 25547 88427 113974 257336 393900 114609 11465 0 393900 114609 11465 126074 267826 NC 0 THE NC MUSEUM OF ART FOUNDATION IS A NONPROFIT ORGANIZATION RECOGNIZED IN NC UNDER G.S. 105-130.11(A). THE ORGANIZATION CONDUCTED A RAFFLE IN JUNE 2019 IN ACCORDANCE WITH NC G.S. 14-309.15, AND IS NOT REQUIRED TO OBTAIN A GAMING LICENSE. 0 1 0 1.00000 JOANNE ZACH 4630 MAIL SERVICE CENTER RALEIGH NC 276994630 0 0 X X X X 0 0 0 0 0 0 0 0 0 LAWRENCE J WHEELER MUSEUM DIRECTOR 368333 329445 0 0 0 0 36376 23502 3332 2153 408041 355100 0 0 CATERRI M WOODRUM CHIEF EXECUTIVE OFFICER 256623 0 48000 0 6184 0 10922 0 15318 0 337047 0 0 0 DANIEL P GOTTLIEB DIRECTOR OF PLANNING & DESIGN 179638 0 0 0 6586 0 7447 0 12940 0 206611 0 0 0 MARJORIE H HODGES DIRECTOR OF STRATEGIC INITIATIVES 136200 0 0 0 580 0 5460 0 10849 0 153089 0 0 0 SCHEDULE J, PART II COMPENSATION INFORMATION: DR. LAWRENCE J. WHEELER WAS THE DIRECTOR OF THE NORTH CAROLINA MUSEUM OF ART, A STATE ENTITY ORGANIZED UNDER THE DEPARTMENT OF CULTURAL RESOURCES. THE NORTH CAROLINA MUSEUM OF ART FOUNDATION, INC. IS A NON-PROFIT ORGANIZATION IN SUPPORT OF THE STATE MUSEUM. GIVEN THE COMMON GOALS OF THESE TWO ORGANIZATIONS, DR. WHEELER EXERCISED SIGNIFICANT INFLUENCE RELATIVE TO BOTH ENTITIES AND HIS PRIMARY COMPENSATION THROUGH THE STATE OF NORTH CAROLINA WAS SUPPLEMENTED SIGNIFICANTLY BY THE NORTH CAROLINA MUSEUM OF ART FOUNDATION, INC. IN ADDITION TO SALARY SUPPLEMENTS, THE FOUNDATION MAINTAINED A CONSULTING AGREEMENT WITH DR. WHEELER WHICH PROVIDED ADDITIONAL COMPENSATION IN EXCHANGE FOR HIS EXPERTISE AND INVOLVEMENT IN VARIOUS FUNDRAISING ACTIVITIES, PARTICULARLY AS THEY RELATED TO THE CULTIVATION AND SOLICITATION OF COLLECTORS AND DONORS. THE MOST RECENT CONSULTING AGREEMENT COMMENCED ON JULY 1, 2017 AND WAS FOR A PERIOD OF FIFTEEN MONTHS ENDING SEPTEMBER 30, 2018. UNDER THIS AGREEMENT, DR. WHEELER RECEIVED QUARTERLY CONSULTING FEES OF $85,000 PAID BY THE FOUNDATION. DR. WHEELER RETIRED AS DIRECTOR OF THE NORTH CAROLINA MUSEUM OF ART IN NOVEMBER 2018. X 18 353103 STOCK QUOTE X SUPPLIES 3 5078 FAIR MARKET VALUE X COMPUTER EQUIPMENT 1 4150 FAIR MARKET VALUE X OFFICE FURNITURE 1 3481 FAIR MARKET VALUE 0 1 0 FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS: THE NCMA FOUNDATION'S GOVERNANCE INCLUDES AN AUDIT COMMITTEE OPERATING UNDER A FORMAL CHARTER. THE AUDIT COMMITTEE SERVES AS AN INDEPENDENT AND OBJECTIVE PARTY TO MONITOR THE FOUNDATION'S FINANCIAL REPORTING PROCESS INCLUDING OVERSIGHT OF THE 990 TAX FILING. THE AUDIT COMMITTEE MEETS WITH EXTERNAL AUDITORS AND FOUNDATION MANAGEMENT TO REVIEW THE RESULTS OF THE ANNUAL AUDIT AND RELATED FINANCIAL STATEMENTS. FORM 990, PART VI, SECTION B, LINE 12C MONITORING CONFLICTS OF INTEREST: THE AUDIT COMMITTEE ALSO SERVES AS THE ETHICS COMMITTEE FOR THE FOUNDATION, OVERSEEING THE WHISTLEBLOWER, RECORDS RETENTION, CONFLICTS OF INTEREST AND CONFIDENTIALITY POLICIES. THE AUDIT COMMITTEE CHAIRMAN IS THE INDEPENDENT PARTY TO WHICH EMPLOYEES AND BOARD MEMBERS MAY REPORT ANY ETHICS CONCERNS OR POSSIBLE CONFLICTS OF INTEREST. THE COMMITTEE MEETS AT LEAST TWICE PER YEAR AND MORE OFTEN AS NECESSARY. POTENTIAL CONFLICTS OF INTEREST ARE REVIEWED WITH THE FOUNDATION'S CHIEF DEPUTY DIRECTOR AND CHIEF FINANCIAL OFFICER AS NEEDED FOR RESOLUTION. AN ANNUAL ACKNOWLEDGEMENT PROCESS OCCURS WITH ALL BOARD MEMBERS AND STAFF WHEREBY THEY FORMALLY CERTIFY RECEIPT OF ALL GOVERNANCE POLICIES AND AGREEMENT TO COMPLY WITH THEM. FORM 990, PART VI, SECTION B, LINE 15 PROCESS FOR DETERMINING COMPENSATION: THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS HAS THE PRIMARY GOVERNING RESPONSIBILITY OF OVERSEEING HUMAN RESOURCE MATTERS AND ALSO WORKS IN CONJUNCTION WITH THE FINANCE COMMITTEE AS IT RELATES TO ANY FINANCIAL IMPACT OF DECISIONS TAKEN. THE EXECUTIVE COMMITTEE EVALUATES THE PERFORMANCE OF THE FOUNDATION'S CHIEF EMPLOYEES AND SETS THEIR COMPENSATION LEVELS BASED ON THE RESULTS OF THIS EVALUATION. THE PRIOR MUSEUM DIRECTOR WAS A STATE EMPLOYEE WHOSE COMPENSATION WAS SUPPLEMENTED BY THE FOUNDATION. THE PRIOR DIRECTOR ALSO HAD A CONSULTING AGREEMENT WITH THE NORTH CAROLINA MUSEUM OF ART FOUNDATION, EIN 23-7071511, UNDER WHICH HE RECEIVED CERTAIN ADDITIONAL COMPENSATION UNDER CONTRACT. THE EXECUTIVE COMMITTEE HAD RESPONSIBILITY FOR EVALUATING THE PRIOR MUSEUM DIRECTOR'S PERFORMANCE UNDER THIS AGREEMENT AND MAKING RECOMMENDATIONS TO THE FULL BOARD WITH RESPECT TO COMPENSATION. TO ENSURE ANY COMPENSATION RECOMMENDATIONS WERE REASONABLE, THE EXECUTIVE COMMITTEE MET AND DISCUSSED THE PERFORMANCE OF BOTH THE PRIOR MUSEUM DIRECTOR AND THE FOUNDATION'S CHIEF DEPUTY DIRECTOR/CHIEF FINANCIAL OFFICER BASED UPON SPECIFIC GOALS AND ACCOMPLISHMENTS OUTLINED FOR THE YEAR. THE COMMITTEE REVIEWED THE LATEST AMERICAN ASSOCIATION OF MUSEUM'S (AAM) ANNUAL SALARY SURVEY AS A BASIS FOR COMPARISON OF COMPENSATION REASONABLENESS. THE AAM SURVEY PROVIDED BENCHMARK DATA OF US MUSEUMS BY GEOGRAPHIC AREA, POPULATION, AND BUDGET SIZE FOR KEY MUSEUM POSITIONS. FINAL RECOMMENDATIONS WERE SUBMITTED TO THE FULL BOARD FOR APPROVAL AND INCLUSION IN THE FOUNDATION'S OPERATING BUDGET. WITH THE RETIREMENT OF THE CHIEF DEPUTY DIRECTOR/CHIEF FINANCIAL OFFICER ON SEPTEMBER 30, 2018 AND THE PRIOR MUSEUM DIRECTOR ON NOVEMBER 1, 2018, THE FOUNDATION'S EXECUTIVE COMMITTEE MADE THE DECISION TO (I) MERGE THE ROLES OF MUSEUM DIRECTOR AND THE FOUNDATION'S NEW CHIEF EMPLOYEE UNDER A SINGLE INDIVIDUAL AND (II) RESTRUCTURE PRIOR EXECUTIVE COMPENSATION AGREEMENTS. FORM 990, PART VI, SECTION C, LINE 19 MAKING INFORMATION AVAILABLE TO THE PUBLIC: THE FOUNDATION'S ARTICLES OF INCORPORATION ARE ON FILE WITH THE NORTH CAROLINA SECRETARY OF STATE AND ARE PUBLICLY AVAILABLE. THE FOUNDATION'S OTHER GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE NOT GENERALLY MADE AVAILABLE TO THE GENERAL PUBLIC EXCEPT BY SPECIFIC REQUEST FOR PURPOSES CLEARLY IDENTIFIED AND APPROVED BY THE BOARD. ALL FOUNDATION EMPLOYEES HAVE ACCESS TO THESE DOCUMENTS AS APPROPRIATE ON A SHARED INTRANET DRIVE AND INDEPENDENT CONTRACTORS ARE PROVIDED WITH CERTAIN OF THESE DOCUMENTS AS APPROPRIATE TO THEIR LEGAL RELATIONSHIP WITH THE FOUNDATION (EXAMPLE, CONFLICTS OF INTEREST POLICY AND SEXUAL HARASSMENT POLICY) AS SPECIFICALLY APPROVED BY THE BOARD. THE FOUNDATION OTHERWISE PROVIDES THE DOCUMENTS INCLUDING THE FORM 990 AS REQUIRED FOR TAX EXEMPT ORGANIZATIONS. THE FOUNDATION'S LATEST 990 TAX FILING IS POSTED ON A PUBLIC WEBSITE, GUIDESTAR. FORM 990, PART IX, LINE 11G OTHER FEES: PROGRAM SERVICE EXPENSES 1,154,306. MANAGEMENT AND GENERAL EXPENSES 253,367. FUNDRAISING EXPENSES 222,897. TOTAL EXPENSES 1,630,570. FORM 990, PART X, LINE 13 INVESTMENTS - PROGRAM RELATED: DURING 2015, THE FOUNDATION BECAME THE BENEFICIARY OF ARTWORK HAVING AN APPRAISED VALUE OF $1,650,000. THE ARTWORK IS BEING HELD AS AN INVESTMENT AS OF JUNE 30, 2019. FORM 990, PART XI, LINE 9: REVERSAL OF GRANTS CONSIDERED TO BE CONDITIONAL -1,965,500. REVERSAL OF EVENT/PROGRAM REVENUE, NET OF EXPENSE -279,350.