2019-11-15T13:48:56-06:00 2019-06-30 420714325 RSM US LLP 1 S Wacker Drive Suite 800 Chicago IL 60606 990 2018-07-01 363930153 Music and Dance Theater Chicago Inc MUSI 3123347777 205 East Randolph Drive Chicago IL 60601 Patricia Barretto President and CEO 3123347777 2019-11-12 1 Rebekuh Eley P01247672 3126343400 66.98.98.135 2019-11-12 13:50:00 CS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 8C7237D2AFEDFB09D88626A2D3FB2BC60A40D8C2 2018 2020-03-31 21:24:44Z Harris Theater for Music and Dance Patricia Barretto 205 East Randolph Drive Chicago IL 60601 9131801 0 X www.HarrisTheaterChicago.org X 1993 IL See Schedule O 32 31 282 364 0 17542 3799053 2313660 2859159 3101099 898941 1034745 429332 572613 7986485 7022117 0 0 0 0 2805226 3036494 0 0 581321 7092192 7420111 9897418 10456605 -1910933 -3434488 67476128 63190588 22270288 21687574 45205840 41503014 X See Schedule O. 0 0 4165514 1560864 Harris Theater Presents: The Theater's presenting series brings the highest caliber of artistry from every corner of the world to Chicago. As a vital cultural anchor in the Midwest, the Harris is committed to presenting artists who tell stories of human experiences from diverse points of view.During the 2018-19 season the Theater welcomed 23,567 audience members to performances in the six distinct series presented by the Harris: HTP Mainstage, Chamber Music Series, Exelon Family Series, Mix at Six, Beyond the Aria, and Summer Jazz at the Harris. Leading performers included the English National Ballet, Angelique Kidjo, Ladysmith Black Mambazo, Gauthier Dance Company, Yazz Ahmed, Dayme Arocena, and the Chamber Music Society of Lincoln Center. 3660641 1362185 Collaboration: Serving as a venue and resource for Chicago's music and dance companies is central to the Theater's mission. During the 2018-19 season, 23 resident companies held 57 performances, reaching 48,200 audience members. Founding companies, including Hubbard Street Dance Chicago, Music of the Baroque, and Giordano Dance Chicago, were joined by newer additions to the roster, including Chicago Humanities Festival. Together, they reflected the diversity of art, ideas, and culture coursing through Chicago today.The Theater provides all resident companies with a reduced non-profit rental rate, underwriting 68% of the actual daily usage costs. In addition, the Theater provides technical and production support for each resident company performance to ensure organizations maximize their artistic capabilities at the Theater. Marketing and promotional support includes personalized consultation with Harris marketing staff to discuss strategy, content development, e-communications, partnerships, and social media.The Harris Theater's Committee on Resident Companies (CORC) and the Learning Lab workshop series provide resident companies with venue-specific and professional development workshops. CORC met quarterly to provide a forum for collective peer exchange.The Theater has become a sought-after venue for important civic and cultural events and touring music and dance companies. Organizations hosting their engagements at the Harris Theater bring unique opportunities for collaboration between Chicagoans and the world's leading thinkers, innovators, and artists. Non-profit organizations who rent the Theater's space benefit from a discounted rental cost and all renters partner closely with the Theater's in-house production and front of house staff. This season the Harris hosted important events for Invest for Kids, the Chicago Innovation Awards, Chicago CRED (Creating Real Economic Destiny), and The Kennedy Forum among many others. 1322595 178050 Community Engagement: A community with a foundation of arts, culture, and collaboration nurtures future generations of artists and audiences. The Harris Theater builds bridges between the world's leading artists and people of all ages through essential partnerships with local organizations across the health, human services, and educational sectors. Through partnerships with 45 community organizations, the Theater's Access Tickets program provided 2,561 free tickets to Chicagoans for performances in the 2018-19 season.Ongoing programs offer master classes for Chicago students, educational enrichment activities for all ages, and youth performance opportunities in tandem with the performances presented at the Theater. During the 2018-19 season the Theater facilitated educational engagements for 329 young people including 9 master classes, 3 enrichment activities for families and young children, and 5 youth performances. In addition, roughly 1,071 adults participated in activities, including 4 lectures, 2 panel discussions, and 2 lobby performances by local ensembles. 9148750 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 123 0 1 282 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 X 32 31 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X Laura Hanssel 3123347777 205 East Randolph Drive Chicago IL 60601 Ms Mary Kay Sullivan Chairman 10.00 X X 0 0 0 Ms Elizabeth Hartigan Connelly Vice Chair 5.00 X X 0 0 0 Mr Peter M Ellis Vice Chair 5.00 X X 0 0 0 Ms Caryn Harris Vice Chair 5.00 X X 0 0 0 Dr Ricardo T Rosenkranz Vice Chair 5.00 X X 0 0 0 Ms Marilyn Fatt Vitale Secretary 5.00 X X 0 0 0 Ms Merrillyn J Kosier Treasurer 5.00 X X 0 0 0 Ms Patricia Barretto President & CEO 40.00 X X 285830 0 37307 Ms Sandra P Guthman Past Chairman 5.00 X 0 0 0 Ms Joan W Harris Past Chairman 5.00 X 0 0 0 Ms Alexandra C Nichols Past Chairman 10.00 X 0 0 0 Ms Abby McCormick O'Neil Past Chairman 5.00 X 0 0 0 Ms Pamela Baker Trustee (ex-officio) 1.00 X 0 0 0 Mr Paul S Boulis Trustee 1.00 X 0 0 0 Ms Christine N Evans Kelly Trustee 1.00 X 0 0 0 Ms Louise Frank Trustee 1.00 X 0 0 0 Mr Robert J Gauch Jr Trustee 1.00 X 0 0 0 Ms Deborah A Korompilas Trustee 1.00 X 0 0 0 Mr Jeffrey Korzenik Trustee 1.00 X 0 0 0 Mr Michael McStraw Trustee (ex-officio) 1.00 X 0 0 0 Mr Zarin Mehta Trustee 1.00 X 0 0 0 Mr Kenneth R Norgan Trustee 1.00 X 0 0 0 Ms Claire O'Grady Trustee 1.00 X 0 0 0 Mr Gregory J O'Leary Trustee 1.00 X 0 0 0 Ms Nancy Santi Trustee 1.00 X 0 0 0 Ms Shannon L Schuyler Trustee 1.00 X 0 0 0 Mr John Q Smith Trustee 1.00 X 0 0 0 Mr David Snyder Trustee 1.00 X 0 0 0 Ms Susan Stark Trustee 1.00 X 0 0 0 Ms Sunitha Thomas Trustee 1.00 X 0 0 0 Ms Dori Wilson Trustee 1.00 X 0 0 0 Ms Maria Zec Trustee 1.00 X 0 0 0 Ms Laura Hanssel Chief Financial Officer 40.00 X 182386 0 34198 Ms Lori Dimun Chief Operating Officer 40.00 X 161049 0 11643 Mr Jefferey M Rollinson Head Carpenter/ Union Steward 40.00 X 117094 0 0 746359 0 83148 4 0 1 0 Midway Building Services Ltd 1915 W Hubbard Street Chicago IL 60622 Janitorial Services 368577 Miami City Ballet 220 Liberty Ave Miami Beach FL 33139 Artists Fee - Miami City Ballet 252816 Discalced Inc 3 Lafayette Ave Brooklyn NY 11217 Artists Fee - Mark Morris Dance 195000 Switchfast Technologies 4043 N Ravenswood 203 Chicago IL 60613 IT Consulting Services 150503 Tessitura Network Inc PO Box 203410 Dallas TX 75320 Arts Enterprise Software & Service 137068 9 298250 68771 1946639 34822 2313660 Theater Box Office 711190 2028149 2028149 Usage Fees 711190 1072950 1072950 3101099 762300 762300 608541 0 608541 608541 608541 2324451 2052006 272445 272445 272445 21750 298250 57678 -35928 -35928 7022117 3101099 0 1607358 X 539721 421093 55709 62919 1924367 1501399 198629 224339 157350 98660 37369 21321 229817 144098 54579 31140 185239 156075 8416 20748 20125 12205 7920 37391 37391 55670 55670 1867952 1858971 8981 708068 623941 21853 62274 127369 107790 6640 12939 504638 475356 29282 385499 371495 3781 10223 730182 687813 42369 1631879 1537189 94690 250238 235718 14520 Repairs & Maintenance 783265 745044 38221 Cultivation Events 118366 118366 Sales Tax 20813 19605 1208 Bad Debt Expense 2496 2496 176160 152298 9306 14556 10456605 9148750 726534 581321 1123519 508074 18031 14149 4599676 2990432 18737 29824 122185 101742 60646428 22568093 39493836 38078335 18633147 17763371 3297035 3534177 169962 170484 67476128 63190588 337537 504462 567517 646350 20000000 20000000 1000000 365234 536762 22270288 21687574 X 33102949 31508601 6602891 4494413 5500000 5500000 45205840 41503014 67476128 63190588 X -3434488 -96810 -171528 X 0 1 X 1 0 X 4803036 3370878 1638923 3689053 2313660 15815550 4803036 3370878 1638923 3689053 2313660 15815550 4847674 10967876 689906 1002139 975091 1012459 1370841 5050436 488 6037 5377 1590 13492 20879478 13953018 0.52530 0.48680 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 5500000 242057 242057 5500000 5500000 186322 186322 5500000 5500000 520065 520065 5500000 5500000 -182052 -182052 5500000 5500000 -51094 -51094 5500000 1.00000 1 0 58241579 20291517 37950062 2379370 2276576 102794 25479 25479 38078335 Investment in Limited Liability Company 3534177 F 3534177 Fair Value of Swap Agreement 536762 536762 X 6927115 -96810 1808 -95002 7022117 0 7022117 10458413 1808 1808 10456605 0 10456605 Part V, Line 4: The intended use of the organization's endowment funds is for general operating costs. Part X, Line 2: The Theater is a not-for-profit corporation as described in Section 501(c)(3) of the Internal Revenue Code (the Code) and is exempt from income taxes on related income pursuant to Section 501(a) of the Code. The accounting standard on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the Theater may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Examples of tax positions include the tax-exempt status of the Theater, the continued tax-exempt status of the bond issued by the Theater, and various positions related to the potential sources of unrelated business taxable income. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes and accounting in interim periods. At June 30, 2019 and 2018, management has determined that there are no uncertain tax positions. The Theater files annual information returns in the U.S. federal jurisdiction and the state of Illinois. Founders' Dinner 320000 298250 21750 24754 10341 22583 320000 298250 21750 24754 10341 22583 57678 -35928 X X X X 0 0 0 0 0 0 0 1 0 Ms Patricia Barretto President & CEO 250830 0 35000 0 0 0 11000 0 26307 0 323137 0 0 0 Ms Laura Hanssel Chief Financial Officer 170386 0 12000 0 0 0 7869 0 26329 0 216584 0 0 0 Ms Lori Dimun Chief Operating Officer 149049 0 12000 0 0 0 6570 0 5073 0 172692 0 0 0 Part I, Line 7 The bonus payment received by Laura Hanssel, Lori Dimun, and Patricia Barretto are non-fixed and discretionary in nature. Bonus payments are not guaranteed or contracted. The bonuses to Hanssel and Dimun are awarded on the basis of a merit system as reviewed by the President of the Theater. The compensation committee of the Board of Trustees conducted Barretto's annual review and determined Barretto's bonus. The commitee reviews Form 990s of similar organizations and also looks at past precedent when determining the bonus for President Barretto. A Illinois Finance Authority 861091967 45200BLT3 2005-05-11 20000000 Refinance of construction loan payable 0 0 0 A 20000000 371884 19628116 2005 0 0 1 1 A 0 0 0 0 1 0 0 A 0 0 0 0 1 0 0 0 0 A 0 X 1 4999 Appraisal from Donor X Airfare - Porter Airlines 1 21376 List price X Catering - The Peninsula 1 4772 Vendor price X Videography - HMS 1 2685 Vendor price X Floral Arrangements - Green Inc. 1 990 Vendor price 0 0 0 0 Form 990, Part I, Line 1: Description of Organization's Mission: The mission of the Joan W. and Irving B. Harris Theater is to be Chicago's primary residence for music and dance, connecting diverse audiences with outstanding artists from across the city, the nation, and the world. The Theater supports this mission through three strategies: curating a presenting series designed to offer an engaging array of genres and styles, collaborating with companies in residence at the Harris and serving as a venue for cultural and civic events, and providing educational and accessible opportunities for everyone. Form 990, Part VI, Section A, line 2 Joan W. Harris and Louise Frank have a family relationship. Form 990, Part VI, Section A, line 4 The Board passed a resolution on May 9, 2019 to change the range of Board membership from 25 to 30 members, to 27 to 32 members. Form 990, Part VI, Section B, line 11b On September 26, 2019 the Board of Trustees of the Harris Theater approved a resolution that, with the Fiscal year ended June 30, 2019, gives the Audit Committee of the Board the authority to review the federal Form 990 and Illinois Form AG990-IL on the Board's behalf. On November 7, 2019, the Audit committee of the Board of Trustees met with representatives of RSM US LLP, who prepared the Form 990 and conducted that review. The extent of that review includes covering key issues. The complete Form 990 was then made available to all Board members who had ample time to review, ask question and/or suggest revisions before the Form 990 was filed with the IRS. Form 990, Part VI, Section B, line 12c Music and Dance Theater Chicago, Inc.'s ("MADTC") conflict of interest policy addresses transactions and arrangements involving MADTC's trustees, officers and any other managers or supervisors identified by the Board of Trustees or the President as exercising substantial influence over the operations of MADTC ("Covered Persons"). Each Covered Person upon becoming such shall prepare, sign and submit a Conflict of Interest Questionnaire. In addition, each Covered Person shall promptly and fully disclose all material facts of every actual or potential conflict of interest: (I) That arises while he/she is a Covered Person, at the time such actual or potential conflict arises; and; (II)Annually by preparing, signing and submitting a Conflict of Interest Questionnaire. All disclosures involving a transaction or arrangement being considered at a meeting of the Board of Trustees or of a board committee shall be made to all members present at such meeting. All other disclosures shall be made to the President (who shall disclose his or her conflicts to the Board of Trustees). A Covered Person who is in doubt as to the existence of a conflict of interest is encouraged to disclose all facts pertaining to the transaction or arrangement before undertaking the transaction or arrangement or making any decision in the matter. Each Covered Person shall sign a statement acknowledging that he or she has received a copy of this Policy, has read and understands it, and agrees to comply with it. If the Board of Trustees has reasonable cause to believe that a Covered Person has failed to comply with this Policy, the Board may counsel the Covered Person regarding such failure and, if the issue is not resolved to the Board's satisfaction, may consider additional corrective action as appropriate. Conflict of interest information is collected annually and throughout the year when new trustees come on. Form 990, Part VI, Section B, line 15 With respect to compensation of the CEO/Executive Director on an ongoing basis, post-hiring, the Board of Trustees has delegated overall responsibility for establishing such compensation to the Executive Committee. To carry out this assignment, the Executive Committee utilizes an ad hoc compensation sub-committee ("the compensation sub-committee"), consisting of former and current Board Chairs, along with board members bearing special expertise in the area of compensation, to review and determine the compensation of the CEO/Executive Director. To determine the compensation of the CEO/Executive Director, the compensation sub-committee has successfully employed a number of tools and resources, including without limitation, a review of compensation for similar positions at similar organizations, drawing upon data from Form 990's for such organizations; the compensation committee, as a matter of policy, retains the option of utilizing independent compensation consultants and compensation surveys or studies, when it determines that it is appropriate to supplement data from other resources. Each year, the compensation sub-committee reviews the compensation of the CEO/Executive Director in conjunction with the review of the performance of the CEO/Executive Director, including accomplishments, achievement of goals, and opportunities for improvement. After the completion of such review, the compensation sub-committee reports its findings and recommendations to the Executive Committee, which then determines the compensation of the CEO/Executive Director for the ensuing year. At the beginning of each fiscal year, the Board Chair reports to the Board of Trustees the actions taken by the Executive Committee. Form 990, Part VI, Section C, line 19 The Theater makes its governing documents, conflict of interest policy, and financial statements available to the public upon request for the same period of disclosure as set forth in section 6104(d). In addition, the Theater participates in the Cultural Data Project which provided detailed information on the organization, including financial data. The Theater applies for numerous grants from foundations as well as governmental bodies and provides such documents in that application process. Web sites such as GuideStar also have relevant documents of the theater. Form 990, Part IX, line 11g Artist Fee: Program service expenses 1,713,170. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,713,170. Consulting: Program service expenses 145,801. Management and general expenses 8,981. Fundraising expenses 0. Total expenses 154,782. Form 990, Part XI, line 9: Change in Unrealized Gain on Swap Agreement -171,528.