2020-07-15T08:25:53-05:00 2019-06-30 420714325 RSM US LLP 1 S WACKER DRIVE STE 800 CHICAGO IL 60606 990 2018-07-01 340714468 THE MUSICAL ARTS ASSOCIATION MUSI 2162317300 11001 EUCLID AVENUE CLEVELAND OH 44106 JAMES E MENGER CHIEF FINANCIAL OFFICER 2162317300 2020-07-14 1 ZACHARY FORTSCH P00052725 3126343400 2020-07-14 66.98.98.6 2020-07-14 10:58:44 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 562A18F8DC23C297E42EF16009230818801A988B 2018 2021-01-29 14:40:06Z THE CLEVELAND ORCHESTRA ANDRE GREMILLET 11001 EUCLID AVENUE CLEVELAND OH 44106 98511699 0 X WWW.CLEVELANDORCHESTRA.COM X 1925 OH THE CLEVELAND ORCHESTRA INSPIRES AND ENRICHES LIVES BY CREATING EXTRAORDINARY MUSICAL EXPERIENCES AT THE HIGHEST LEVEL OF ARTISTIC EXCELLENCE. 73 73 584 1597 1375 308 32806554 29746151 18430047 18968906 10924392 8343363 -166548 -277251 61994445 56781169 0 0 0 0 34935892 34661197 426465 208269 2889241 21686555 23118949 57048912 57988415 4945533 -1207246 282093303 291916435 64891789 80425921 217201514 211490514 X THE CLEVELAND ORCHESTRA INSPIRES AND ENRICHES LIVES BY CREATING EXTRAORDINARY MUSICAL EXPERIENCES AT THE HIGHEST LEVEL OF ARTISTIC EXCELLENCE. 0 0 26242553 8135011 SEVERANCE HALL AND NORTHEAST OHIO2018-19 MARKED THE CLEVELAND ORCHESTRA'S 101ST SEASON AND FRANZ WELSER-MOST'S SEVENTEENTH YEAR AS MUSIC DIRECTOR. IN SEPTEMBER 2019, IT WAS ANNOUNCED THAT WELSER-MOST'S CONTRACT WOULD BE EXTENDED FOR FIVE MORE YEARS TO 2027, MAKING HIM THE LONGEST-SERVING MUSIC DIRECTOR IN THE ORCHESTRA'S HISTORY, SURPASSING THE LEGENDARY GEORGE SZELL WHO SERVED TWENTY-FOUR YEARS FROM 1946 TO 1970.HIGHLIGHTS OF THE PAST YEAR INCLUDED THE ORCHESTRA'S 100TH ANNIVERSARY GALA IN SEPTEMBER 2018 (TELECAST NATIONALLY ON PBS'S "GREAT PERFORMANCES" SERIES), STAGED PERFORMANCES OF RICHARD STRAUSS'S OPERA ARIADNE AUF NAXOS IN JANUARY 2019, AND A SPRING TOUR TO ASIA FEATURING THE ORCHESTRA'S FIRST APPEARANCES IN CHINA IN TWO DECADES. THE CLEVELAND ORCHESTRA AND FRANZ WELSER-MOST PARTNERSHIP CONTINUED TO DRAW ACCLAIM, WITH THE ECONOMIST MAGAZINE STATING THAT THE ORCHESTRA "IS STRONGER THAN EVER. . . . MUCH OF ITS SUCCESS CAN BE CREDITED TO THE LATEST MUSIC DIRECTOR, FRANZ WELSER-MOST, AND THE NEW YORK TIMES COMMENTING THAT "THE CLEVELAND ORCHESTRA FURTHER CEMENTS ITS REPUTATION AS ONE OF AMERICA'S PREMIER ENSEMBLES."OVERALL, MORE THAN 165,000 ATTENDED ORCHESTRA CONCERTS AT SEVERANCE HALL BETWEEN SEPTEMBER 2018 AND THE END OF AUGUST 2019. (MORE THAN 50,000 MORE ATTENDED A WIDE VARIETY OF RENTAL EVENTS AND RENTAL PERFORMANCES AT SEVERANCE HALL.) 10310478 3635083 BLOSSOM MUSIC CENTER2019 MARKED THE 52ND SEASON OF CONCERTS AT BLOSSOM MUSIC CENTER. A FESTIVAL SEASON OF 20 CONCERTS WAS PRESENTED ACROSS TEN WEEKENDS BETWEEN THE MEMORIAL DAY AND LABOR DAY HOLIDAYS, PLUS ONE ADDITIONAL SPECIAL EVENT RADIO TAPING FOR "WAIT, WAIT, DON'T TELL ME." OVERALL, THE 2019 FESTIVAL WELCOMED THAN 123,500 MUSIC-LOVERS TO THE ORCHESTRA'S FESTIVAL CONCERTS,. WITH ATTENDANCE LOWER THAN RECENT SEASONS DUE TO A RAINY SUMMER. NEVERTHELESS, ATTENDANCE REPRESENTED AN AVERAGE OF 6,200 PER CONCERT, THE SIXTH-HIGHEST AVERAGE IN THE FESTIVAL'S HISTORY. (AN ADDITIONAL 299,000 ATTENDED TWO-DOZEN NON-ORCHESTRAL CONCERTS PRESENTED AT BLOSSOM BY LIVENATION.) 7155940 3082658 TOURING AND RESIDENCIESEACH YEAR, THE ORCHESTRA APPORTIONS SEVERAL WEEKS OF ITS PERFORMANCE SCHEDULE TO RESIDENCIES AND TOURING ACTIVITIES BEYOND NORTHEAST OHIO. THESE ARE DESIGNED TO ENHANCE BOTH THE ARTISTIC AND FINANCIAL STRENGTH OF THE ORGANIZATION OVERALL, AND TO EXTEND AND ENHANCE THE ORCHESTRA'S WORLDWIDE REPUTATION. RECENT PERFORMANCES INCLUDED A TWO-WEEK RESIDENCY IN MIAMI (JANUARY-FEBRUARY 2019), A PAIR OF CONCERTS AT NEW YORK'S FAMED CARNEGIE HALL (OCTOBER 2019), AND THE PREVIOUSLY MENTIONED TOUR TO ASIA IN SPRING 2019, WHICH FEATURED 11 CONCERTS (IN TAIPEI, MACAU, SHENZHEN, SHANGHAI, NANJING, WUHAN, AND BEIJING). FRANZ WELSER-MOST CONDUCTED ALL OF THESE PUBLIC CONCERTS. 4021016 4090314 COMMUNITY AND EDUCATIONTHE CLEVELAND ORCHESTRA CONTINUED ENGAGING WITH MORE PEOPLE ACROSS NORTHEAST OHIO THROUGHOUT THE 2018-19 SEASON, BUILDING ON AN EXPANSIVE VARIETY OF EDUCATION AND COMMUNITY PROGRAMS AND PRESENTATIONS. IN ADDITION TO SUCH ONGOING PROGRAMS AS FAMILY CONCERTS, EDUCATION CONCERTS (FOR SCHOOLS), AND MUSIC EXPLORERS (FOR THE YOUNGEST CHILDREN), THE NEW MINDFUL MUSIC MOMENTS PROGRAM CONTINUED TO EXPAND, WITH THIS INNOVATIVE TOOL FOR SOCIAL AND EMOTIONAL WELL-BEING PROVIDING A FOUR-MINUTE DAILY DOSE OF CLASSICAL MUSIC COUPLED WITH MINDFULNESS EXERCISES DELIVERED VIA A GROWING NUMBER OF SCHOOLS' DAILY MORNING ANNOUNCEMENTS. ALTOGETHER, OVER 100,000 CHILDREN, STUDENTS, AND ADULTS, PARTICIPATED IN THE WIDE VARIETY OF PRESENTATIONS, PROGRAMS, AND TICKET OPPORTUNITIES THAT THE ORCHESTRA OFFERS TO MAKE MUSIC AVAILABLE, AFFORDABLE, AND AFFECTING. IN OCTOBER 2019, A NEW GENEROUS ENDOWMENT GIFT MADE IT POSSIBLE TO EXTEND THE ORCHESTRA'S PIONEERING "UNDER 18S FREE" PROGRAM TO ALL OF ITS SCHOOL CONCERTS EACH YEAR.OVERALL, THE ORCHESTRA'S COMMUNITY AND MUSIC PROGRAMS FOCUS ON FOUR PRIMARY AREAS: 1) TO EXPAND ACCESS, SO THAT EVERY CHILD IN THE CLEVELAND AREA, REGARDLESS OF RACE OR SOCIOECONOMIC BACKGROUND, CAN EXPERIENCE THE CLEVELAND ORCHESTRA AND BE TOUCHED BY THE POWER OF MUSIC; 2) TO ENABLE MORE CHILDREN TO PLAY MUSIC, IN ORDER TO REAP THE LIFE-LONG COGNITIVE, ACADEMIC, AND SOCIAL-EMOTIONAL BENEFITS THAT QUALITY MUSIC-STUDY PROVIDES; 3) TO ADVOCATE AND PROMOTE WHY MUSIC MATTERS, LEVERAGING THE ORCHESTRA'S BRAND TO RAISE AWARENESS OF THE WELL-DOCUMENTED BENEFITS OF MUSIC EDUCATION AND MUSIC-MAKING, AND TO ADVOCATE ON THE LOCAL, STATE, AND NATIONAL LEVEL FOR POLICIES THAT MAKE MUSIC PART OF A WELL-ROUNDED EDUCATION FOR EVERY CHILD, HELPING TO DEVELOP CREATIVE AND CRITICAL THINKERS AND ENGAGED CITIZENS; AND 4) TO UNITE THE CLEVELAND ORCHESTRA'S DIVERSE COMMUNITY ACROSS NORTHEAST OHIO THROUGH MUSIC, BY CONNECTING CITIZENS OF ALL AGES TO EACH OTHER AND TO THE ORCHESTRA. 4021016 4090314 47729987 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 1 195 0 1 584 1 1 1 1 AU 0 0 0 1 1 0 0 0 0 0 0 X 73 73 1 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 OH FL X JAMES E MENGER 2162317300 11001 EUCLID AVENUE CLEVELAND OH 44106 RICHARD K SMUCKER CHAIR & RESIDENT TRUSTEE 13.00 X X 0 0 0 DENNIS W LABARRE IMMEDIATE PAST CHAIR & RESIDENT TRUSTEE 5.00 X X 0 0 0 RICHARD J BOGOMOLNY CHAIR EMERITUS & RESIDENT TRUSTEE 5.00 X X 0 0 0 NORMA LERNER HONORARY CHAIR & RESIDENT TRUSTEE 3.00 X X 0 0 0 BETH E MOONEY TREASURER & RESIDENT TRUSTEE 3.00 X X 0 0 0 HEWITT B SHAW SECRETARY & RESIDENT TRUSTEE 3.00 X X 0 0 0 DR JEANETTE GRASSELLI BROWN RESIDENT TRUSTEE 1.00 X 0 0 0 MATTHEW V CRAWFORD RESIDENT TRUSTEE 1.00 X 0 0 0 ALEXANDER M CUTLER RESIDENT TRUSTEE 1.00 X 0 0 0 DAVID J HOOKER RESIDENT TRUSTEE 1.00 X 0 0 0 MICHAEL J HORVITZ RESIDENT TRUSTEE 1.00 X 0 0 0 DOUGLAS A KERN RESIDENT TRUSTEE 1.00 X 0 0 0 VIRGINIA M LINDSETH RESIDENT TRUSTEE 1.00 X 0 0 0 NANCY W MCCANN RESIDENT TRUSTEE 1.00 X 0 0 0 JOHN C MORLEY RESIDENT TRUSTEE 1.00 X 0 0 0 LARRY POLLOCK RESIDENT TRUSTEE 1.00 X 0 0 0 ALFRED M RANKIN JR RESIDENT TRUSTEE 1.00 X 0 0 0 AUDREY GILBERT RATNER RESIDENT TRUSTEE 1.00 X 0 0 0 BARBARA S ROBINSON RESIDENT TRUSTEE 1.00 X 0 0 0 ROBIN BLOSSOM RESIDENT TRUSTEE (AS OF 12/18) 1.00 X 0 0 0 YUVAL BRISKER RESIDENT TRUSTEE 1.00 X 0 0 0 HELEN RANKIN BUTLER RESIDENT TRUSTEE 1.00 X 0 0 0 IRAD CARMI RESIDENT TRUSTEE 1.00 X 0 0 0 PAUL G CLARK RESIDENT TRUSTEE 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 ROBERT GLICK RESIDENT TRUSTEE (AS OF 12/18) 1.00 X 0 0 0 ROBERT K GUDBRANSON RESIDENT TRUSTEE 1.00 X 0 0 0 DEE HASLAM RESIDENT TRUSTEE (AS OF 12/18) 1.00 X 0 0 0 STEVEN J MCHALE RESIDENT TRUSTEE 1.00 X 0 0 0 IRIS HARVIE RESIDENT TRUSTEE 1.00 X 0 0 0 JEFFREY A HEALY RESIDENT TRUSTEE (THRU 6/19) 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 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 JR RESIDENT TRUSTEE 1.00 X 0 0 0 RICHARD KRAMER RESIDENT TRUSTEE (AS OF 12/18) 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 LORETTA J MESTER RESIDENT TRUSTEE 1.00 X 0 0 0 DR TOMISLAV MIHALJEVIC RESIDENT TRUSTEE (AS OF 5/19) 1.00 X 0 0 0 MARGARET FULTON MUELLER RESIDENT TRUSTEE (THRU 6/19) 1.00 X 0 0 0 KATHERINE T O'NEILL RESIDENT TRUSTEE 1.00 X 0 0 0 RICH PAUL 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 ZOYA REYZIS RESIDENT TRUSTEE 1.00 X 0 0 0 STEVEN M ROSS RESIDENT TRUSTEE 1.00 X 0 0 0 LUCI SCHEY RESIDENT TRUSTEE 1.00 X 0 0 0 JAMES C SPIRA RESIDENT TRUSTEE 1.00 X 0 0 0 R THOMAS STANTON RESIDENT TRUSTEE 1.00 X 0 0 0 RICHARD STOVSKY RESIDENT TRUSTEE (AS OF 12/18) 1.00 X 0 0 0 DR RUSSELL A TRUSSO RESIDENT TRUSTEE 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 1.00 X 0 0 0 MEREDITH SMITH WEIL RESIDENT TRUSTEE 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 (THRU 9/18) 1.00 X 0 0 0 MARY JO EATON NON-RESIDENT TRUSTEE (AS OF 12/18) 1.00 X 0 0 0 RICHARD C GRIDLEY NON-RESIDENT TRUSTEE 1.00 X 0 0 0 HERBERT KLOIBER NON-RESIDENT TRUSTEE 1.00 X 0 0 0 PAUL A ROSE NON-RESIDENT TRUSTEE 1.00 X 0 0 0 FAYE A HESTON TRUSTEE EX-OFFICIO (THRU 12/18) 1.00 X 0 0 0 ELIZABETH MCCORMICK TRUSTEE EX-OFFICIO (THRU 10/18) 1.00 X 0 0 0 CAROLYN DESSIN TRUSTEE EX-OFFICIO 1.00 X 0 0 0 BEVERLY J WARREN TRUSTEE EX-OFFICIO 1.00 X 0 0 0 BARBARA R SNYDER TRUSTEE EX-OFFICIO 1.00 X 0 0 0 PATRICIA K SOMMER TRUSTEE EX-OFFICIO 1.00 X 0 0 0 JAMES E MENGER ASST TREASURER/CFO 50.00 X 253100 0 44600 ANDRE GREMILLET PRESIDENT & CEO 60.00 X 831987 0 120536 DAVE STOKLEY - ASST SECLEGACY GIVING OFFICER 40.00 X 86187 0 24133 WILLIAM WARREN PREUCIL MUSICIAN (THRU 10/18) 40.00 X 434950 0 37497 JOSHUA S SMITH MUSICIAN 40.00 X 279443 0 25221 DONALD MILLER MUSICIAN/ASSISTANT LIBRARIAN 40.00 X 281010 0 35220 MICHAEL SACHS MUSICIAN 40.00 X 272964 0 41545 FRANK ROSENWEIN MUSICIAN 40.00 X 260408 0 32423 2700049 0 361175 122 0 1 0 CAVANAUGH BUILDING CORP 1744 COLLIER ROAD AKRON OH 44320 CONSTRUCTION MANAGEMENT 2476476 FRANZ WELSER-MOST 11001 EUCLID AVENUE CLEVELAND OH 44106 MUSIC DIRECTING 1485371 INFINITY CONSTRUCTION 18440 CRANWOOD PARKWAY WARRENSVILLE HTS OH 44128 CONSTRUCTION MANAGEMENT 1314348 CONSOLIDATED SOLUTIONS INC 1614 EAST 40TH STREET CLEVELAND OH 44103 DIRECT MAIL ADVERTISING 722524 OPUS 3 ARTISTS 470 PARK AVENUE SOUTH NEW YORK NY 10016 ARTIST PERFORMANCES 432500 22 1418188 2405562 25922401 2424050 29746151 CONCERT REVENUE 711130 18050115 18050115 HALL INCOME 711130 716114 690274 25840 BROADCASTING/RECORDING 711130 202677 202677 18968906 6573549 6573549 42762437 40992623 1769814 1769814 1769814 313295 1418188 652798 -339503 -339503 145986 85109 60877 60877 PARTNERSHIPS 721000 1375 1375 1375 56781169 18943066 1375 8090577 1664743 1664743 26075810 24082239 719452 1274119 2379301 2053707 293008 32586 2801377 2320358 304978 176041 1739966 1496257 150635 93074 980035 733606 83665 162764 602666 458130 144536 77325 77325 105000 105000 208269 208269 987918 987918 4613232 4613232 1892173 1892173 574163 240094 133317 200752 342421 161671 180750 166215 166215 1190684 1163166 7173 20345 2820473 2663409 86136 70928 121859 41882 41698 38279 1735008 1735008 2675519 2140415 267552 267552 84380 9261 75119 DIRECT CONCERT EXPENSES 2858967 2776108 69515 13344 OTHER ADMIN. EXPENSES 1282900 710053 241659 331188 MEDIA EXPENSES 8011 8011 57988415 47729987 7369187 2889241 42689 111821 3926064 12988441 33818304 28766406 7399331 2914032 88786 74375 640902 549179 228913 238078 4147525 4145428 85011840 43300242 42743902 41711598 143107644 159978683 45949243 40438394 282093303 291916435 28990634 37038382 7751155 7932730 28150000 35454809 64891789 80425921 X 20020727 9375727 43063132 46228566 154117655 155886221 217201514 211490514 282093303 291916435 X -1207246 2222548 -6726302 X 0 1 X 1 0 X 38170766 26996186 31657137 32806554 29746151 159376794 38170766 26996186 31657137 32806554 29746151 159376794 20898345 138478449 9192022 8115622 4080317 5303548 6573549 33265058 4344 6898 5323 2691 1375 20631 192662483 92455102 0.71880 0.75500 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 0 0 1 100 0 0 1 3900 0 1 105000 109000 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, LEGISLATIVE OR LEGAL COUNSEL OCCURRED VIA TELEPHONE OR AN OCCASIONAL MEETING. 211256000 8271621 9632589 16697929 212462281 200650000 2832000 16418000 8644000 211256000 179557000 5647000 23760000 8314000 200650000 184733000 5494000 -2569000 8101000 179557000 178358000 9152000 4953000 7730000 184733000 0.21000 0.74000 0.05000 1 0 11671279 11671279 64377998 37629781 26748217 8962563 5670461 3292102 41711598 ABSOLUTE RETURN EQUITY FUND 19947852 F HEDGED EQUITY FUND 15939970 F CHARITABLE PERPETUAL TRUSTS 4550572 F 40438394 X 58894009 2222548 69600 737908 3030056 55863953 915841 1375 917216 56781169 64604431 69600 737908 807508 63796923 915841 -6724349 -5808508 57988415 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)(I)(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, 2019 AND 2018. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD NETTED AGAINST REVENUE 85,109. FUNDRAISING EXPENSES NETTED AGAINST REVENUE 652,799. PART XI, LINE 4B - OTHER ADJUSTMENTS: PARTNERSHIP INCOME 1,375. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD NETTED AGAINST REVENUE 85,109. FUNDRAISING EXPENSES NETTED AGAINST REVENUE 652,799. PART XII, LINE 4B - OTHER ADJUSTMENTS: PENSION PLAN LIABILITY ADJUSTMENT -6,724,349. EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 0 0 PROGRAM SERVICES FOREIGN TOUR 2066945 CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, 0 0 INVESTMENTS 27020242 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES FOREIGN TOUR - COYO 181193 EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 0 0 PROGRAM SERVICES FOREIGN TOUR EUROPE (INCLUDING ICELAND & GREENLAND) - ALBANIA, ANDORRA, AUSTRIA, BELGIUM 0 0 FUNDRAISING 0 0 0 0 0 0 29268380 0 29268380 1 0 1 0 0 1 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 ONTARIO CA M5A 4L5 TELEFUNDING 0 465964 208269 257695 ANNE REISS 110 WASHINGTON AVE 2512 MIAMI BEACH FL 33139 CONSULTING 0 0 122496 -122496 465964 330765 135199 FL OH SEV HALL GALA 1731483 1418188 313295 102766 166292 99292 284448 1731483 1418188 313295 102766 166292 99292 284448 652798 -339503 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 ($208,269) BASED UPON THE AGREED UPON REVENUE RATE. TOTAL FUNDRAISING EXPENSES FOR THE YEAR ENDING JUNE 30, 2019, THE MUSICAL ARTS ASSOCIATION INCURRED TOTAL FUNDRAISING EXPENSES OF $2,889,241 (REPORTED ON FORM 990, PART IX, LINE 25, COLUMN (D)), WHICH REPRESENTED 9.7% OF CONTRIBUTIONS AND GRANTS REVENUE OF $29,949,140 (REPORTED ON PART VIII, LINE 1H). X X 1 1 X X X 0 1 0 0 0 0 0 0 0 JAMES E MENGER ASST TREASURER/CFO 234714 0 0 0 18386 0 9818 0 34782 0 297700 0 0 0 ANDRE GREMILLET PRESIDENT & CEO 517921 0 0 0 314066 0 80761 0 39775 0 952523 0 172743 0 WILLIAM WARREN PREUCIL MUSICIAN (THRU 10/18) 434287 0 0 0 663 0 17529 0 19968 0 472447 0 0 0 JOSHUA S SMITH MUSICIAN 278966 0 0 0 477 0 13044 0 12177 0 304664 0 0 0 DONALD MILLER MUSICIAN/ASSISTANT LIBRARIAN 279861 0 0 0 1149 0 24409 0 10811 0 316230 0 0 0 MICHAEL SACHS MUSICIAN 272319 0 0 0 645 0 17096 0 24449 0 314509 0 0 0 FRANK ROSENWEIN MUSICIAN 259961 0 0 0 447 0 11017 0 21406 0 292831 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 PRESIDENT & CEO'S SPOUSE OCCASIONALLY 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 PRESIDENT & CEO PER IRS REGULATIONS. PART I, LINE 4B ANDRE GREMILLET, PRESIDENT & CEO, PARTICIPATES IN A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN. IN 2018, HE VESTED IN $304,200 OF THAT PLAN'S BENEFIT, COVERING AN INITIAL MULTI-YEAR PERIOD, OF WHICH $172,743 HAD PREVIOUSLY BEEN REPORTED AS RETIREMENT AND OTHER DEFERRED COMPENSATION. AS A RESULT, THE TOTAL NEW COMPENSATION AND BENEFITS REPORTED FOR THIS PERIOD IS $779,780. 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 232263KR3 2019-06-13 35657985 SEE SCH K, PART VI 0 0 0 A 35657985 506865 28150000 7001120 2004 1 0 0 1 A 0 0 1 1 0 0.03100 0.03100 0 0 1 A 0 0 1 0 0 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 BONDS, SERIES 2019 BONDS (SERIES 2019 BONDS) WITH MATURITY DATES RANGING FROM JANUARY 1, 2029 THROUGH JANUARY 1, 2041, WERE USED TO (I) REFUND THE $28,150,000 SERIES 2003 BONDS, WHICH WERE DUE DECEMBER 1, 2028, AND (II) PAY COSTS OF ISSUANCE, AND WILL BE USED TO (III) PAY COSTS OF CERTAIN CAPITAL IMPROVEMENTS AT SEVERANCE HALL, THE MUSICAL ARTS ASSOCIATION'S CONCERT HALL AND PRINCIPAL OFFICES. THE PROCEEDS FROM THE SERIES 2003 BONDS WERE USED TO REDEEM COUNTY OF CUYAHOGA, OHIO ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1998, WHICH WERE DUE APRIL 1, 2028. THE PROCEEDS FROM THE SERIES 1998 ISSUANCE FUNDED CERTAIN COSTS ASSOCIATED WITH THE RENOVATION, EXPANSION AND RESTORATION OF SEVERANCE HALL. JAMES E MENGER CFO SEE PT V - RETENTION FOR MULTI-YEAR PERIOD X 61250 13125 0 1 1 JAMES E MENGER CFO SEE PT V - RETENTION FOR MULTI-YEAR PERIOD X 61250 61250 0 1 1 74375 X 112 2424050 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 THE FOLLOWING BOARD MEMBERS HAVE BUSINESS RELATIONSHIPS: JEFFREY J. WEAVER, BETH E. MOONEY, AND ALEXANDER M. CUTLER DENNIS LABARRE AND ALFRED M. RANKIN, JR. RICHARD STOVSKY AND DANIEL P. WALSH 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 11B 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 PRESIDENT & CEO, 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 PRESIDENT & CEO 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 PRESIDENT & CEO OR THE EXECUTIVE COMMITTEE. WHEN THE SENIOR MANAGER WITH THE POTENTIAL CONFLICT IS THE PRESIDENT & CEO, 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 PRESIDENT & CEO AND MUSIC DIRECTOR. RESPONSIBILITIES INCLUDE EVALUATING THE PRESIDENT & CEO'S AND MUSIC DIRECTOR'S PERFORMANCE ANNUALLY, RECOMMENDING THE ANNUAL GOALS AND OBJECTIVES FOR THE PRESIDENT & CEO, SETTING THE PRESIDENT & CEO'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 2018. THE COMPENSATION SUBCOMMITTEE REVIEWS THE OVERALL COMPENSATION PROGRAM FOR THE SENIOR MANAGEMENT OF THE ASSOCIATION ESTABLISHED AND RECOMMENDED BY THE PRESIDENT & CEO. 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 2018. 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 AND OTHER -1,953. PENSION PLAN LIABILITY ADJUSTMENT -6,724,349.