2019-05-15T15:25:32-05:00 2018-06-30 420714325 RSM US LLP 1001 Lakeside Ave Suite 200 Cleveland OH 441141152 990 2017-07-01 340714468 The Musical Arts Association MUSI 2162317300 11001 Euclid Avenue Cleveland OH 44106 James E Menger Chief Financial Officer 2162317300 2019-01-31 1 Zachary Fortsch P00052725 2165231900 66.98.98.9 2019-05-09 16:37:17 ED P 427CB1DADF79ACA5E606B9DCEDE89A8A32B67430 562A18F8DC23C297E42EF16009230818801A988B 2017 2019-02-21 02:37:17Z The Cleveland Orchestra Andre Gremillet 11001 Euclid Avenue Cleveland OH 44106 125578288 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. 71 71 549 1598 2691 91262 31657137 32806554 17557545 18430047 5524817 10924392 -177082 -166548 54562417 61994445 0 0 0 0 34730657 34935892 462739 426465 3244986 20127196 21686555 55320592 57048912 -758175 4945533 277639836 282093303 76196848 64891789 201442988 217201514 X The Cleveland Orchestra inspires and enriches lives by creating extraordinary musical experiences at the highest level of artistic excellence. 0 0 23330448 8493210 Severance Hall and Northeast Ohio2017-18 was The Cleveland Orchestra's 100th season and Franz Welser-Most's sixteenth year as music director. Highlights included encore performances of Janacek's opera The Cunning Little Vixen, first presented in 2014; this innovative production once again juxtaposed live singers with time-lapsed video imagery and was also presented to acclaim on tour in Vienna, the first time a fully-staged opera had been performed in Vienna's premiere concert hall, the Musikverein. Also opening the season was a special multi-media Education Concert created in collaboration with Cleveland's School of the Arts; that six-month project was tied directly to Franz Welser-Most's season-ending "Prometheus Project" concerts, which explored Beethoven's music as commentary and impetus in advocating for justice and human good tying together regular season programming and education offerings to amplify learning opportunities and connections between the arts and everyday life.For the Centennial, Welser-Most had long advocated that, rather than merely celebrating the Orchestra's illustrious history, the season should focus on commemorating the hometown region that has eagerly supported and enjoyed The Cleveland Orchestra in its first hundred years and acknowledge the synergy and symbiosis between city and orchestra, including the Orchestra's role as ambassador for the community's expectations and excellence in all things. As part of this, a special "Around the Region Tour" was featured throughout the season, with the Orchestra and related ensembles (choruses and youth orchestra) performing far and wide in more than twenty programs experienced by over 25,000 and seen by tens of thousands more statewide via telecast, in collaboration with Cleveland-based ideastream, of the ensemble's 2018 Martin Luther King Jr. Celebration concert in January 2018. The season concluded in late spring with two ambitious multi-concert and multi-week festivals. "The Ecstasy of Tristan and Isolde" was built around in-concert performances of Wagner's history-making opera Tristan and Isolde, alongside two additional concerts that explored music's ability to invoke and involve human transcendence, meditation, and understanding. "The Prometheus Project" ended the season in May, with performances of all of Beethoven's symphonies, plus related works, examined (and heard) through the lens of that epochal composer's political views for human justice and individual/community responsibility. The series of concerts was performed on three continents, with sold-out presentations in Vienna and Tokyo following the inaugural sold-out performances in Cleveland at Severance Hall.Overall, more than 165,000 attended Orchestra concerts at Severance Hall between September 2017 and the end of August 2018, including 31 sold-out presentations. (Another 50,000 attended a wide variety of rental events and performances at Severance Hall.) 9380970 2372010 Blossom Music Center2018 marked the 50th anniversary of the opening of Blossom Music Center as the Orchestra's summer home and continued the Centennial celebrations on into the autumn. A Festival season of 19 concerts was presented across ten weekends between the Fourth-of-July and Memorial Day holidays. A special fundraising dinner/event was held in July. Overall, 2018 welcomed than 138,500 music-lovers to the Orchestra's Festival concerts 20,000 more than the year before and the highest total in 20 years. This represented an average of 7,250 per concert, the second-highest average in the Festival's history. (An additional 395,000 attended 28 non-orchestral concerts presented at Blossom by LiveNation.) 10868298 4328326 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 extend and enhance the Orchestra's worldwide reputation.The Orchestra performed on the road on several occasions several occasions throughout the 2017-18 Centennial Season, including two overseas tours, a two-week residency in Miami, and a pair of concerts at New York's famed Carnegie Hall. Franz Welser-Most conducted all of these concerts, including a fall European Tour (12 concerts) and "The Prometheus Project" performances (5 concerts each in Vienna and Tokyo) in the spring. The Miami residency featured four public concerts and two education presentations for schools, performed across two weeks at the end of January and beginning of February. As part of this tour, the Cleveland Orchestra Youth Orchestra and Youth Chorus visited the Ohio Statehouse in Columbus to perform for legislators and other officials. 3530487 3205754 Community and EducationThe Cleveland Orchestra continued engaging with more people across Northeast Ohio throughout the 2017-18 Centennial 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 Musical Rainbows (now renamed as Music Explorers), new programs included Mindful Music Moments, an innovative tool for social and emotional well-being that provides a four-minute daily dose of classical music coupled with mindfulness exercises delivered via schools' daily morning announcements. In addition to the "Around the Region Tour and Prometheus Project Education Concert mentioned in the season overview, a special Education Concert for schools was also created around the 50th anniversary of the death of Martin Luther King Jr. and presented in Cleveland, Akron, and Miami. 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.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. 3530487 3205754 47110203 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 1 209 0 1 549 1 1 1 1 AU 0 0 0 1 1 0 0 0 0 X 71 71 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 President & Resident Trustee 13.00 X X 0 0 0 Dennis W LaBarre Chairman & Resident Trustee 13.00 X X 0 0 0 Richard J Bogomolny Chairman Emeritus & Resident Trustee 13.00 X X 0 0 0 The Honorable John D Ong VP & Resident Trustee (Thru 12/17) 3.00 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 Alex Machaskee Resident Trustee (Thru 12/17) 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 Dr Ronald H Bell Resident Trustee (Thru 12/17) 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 Steven J McHale Resident Trustee (as of 12/17) 1.00 X 0 0 0 Robert K Gudbranson Resident Trustee 1.00 X 0 0 0 Iris Harvie Resident Trustee 1.00 X 0 0 0 Jeffrey A Healy Resident Trustee 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 David P Hunt Resident Trustee (Thru 12/17) 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 Resident Trustee 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 Margaret Fulton Mueller Resident Trustee 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 Paul A Rose Resident (Thru 12/17) Non-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 Dr Russell A Trusso Resident Trustee (as of 12/17) 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 1.00 X 0 0 0 Richard C Gridley Non-Resident Trustee 1.00 X 0 0 0 Loren W Hershey Non-Resident Trustee (Thru 12/17) 1.00 X 0 0 0 Herbert Kloiber Non-Resident Trustee 1.00 X 0 0 0 Faye A Heston Trustee Ex-Officio 1.00 X 0 0 0 Elizabeth McCormick Trustee Ex-Officio (as of 10/17) 1.00 X 0 0 0 Elisabeth Hugh Trustee Ex-Officio (Pres to 10/17) 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 233507 0 39510 Andre Gremillet Executive Director 60.00 X 468766 0 109851 Dave Stokley - Asst SecLegacy Giving Officer 40.00 X 83649 0 18853 William Warren Preucil Musician 40.00 X 589842 0 44435 Joshua S Smith Musician 40.00 X 258472 0 21321 Donald Miller Musician 40.00 X 278063 0 33140 Paul Yancich Musician 40.00 X 267318 0 38514 Frank Rosenwein Musician 40.00 X 260178 0 27338 2439795 0 332962 117 0 1 0 Franz Welser-Most 11001 Euclid Avenue Cleveland OH 44106 Music Directing 1698759 Consolidated Solutions Inc 1614 East 40th Street Cleveland OH 44103 Direct Mail Advertising 755668 DLR Group Inc PO Box 933078 Cleveland OH 44193 Design 726007 Vincent Lighting Systems PO Box 6202 Hermitage PA 16148 Lighting 442565 Opus 3 Artists 470 Park Avenue South New York NY 10016 Artist Performances 174392 22 1083625 2581799 29141130 1951828 32806554 Concert Revenue 711130 17758754 17758754 Hall Income 711130 577639 546892 30747 Broadcasting/Recording 711130 93654 93654 18430047 5303548 5303548 68712179 63091335 5620844 5620844 5620844 190563 1083625 418844 -228281 -228281 132706 73664 59042 59042 Partnerships 721000 2691 2691 2691 61994445 18399300 2691 10785900 893483 893483 27469802 24128909 1658134 1682759 2643171 2270910 319336 52925 2181239 1778393 211369 191477 1748197 1500884 140398 106915 999543 754590 229852 15101 78649 78649 63546 63546 105000 105000 426465 426465 985033 985033 4384218 4384218 2042555 2042555 567573 317496 121285 128792 399240 185954 213286 152254 152254 1222434 1195256 7585 19593 3829817 3747700 34871 47246 139138 65675 16616 56847 1160243 1160243 2059371 1647497 205937 205937 101577 38281 63296 Direct Concert Expenses 2358246 2259110 73876 25260 Other Admin. Expenses 1011604 614007 111928 285669 Media Expenses 26514 26514 57048912 47110203 6693723 3244986 36408 42689 6287137 3926064 39522922 33818304 550307 7399331 118347 88786 681447 640902 228195 228913 4241364 4147525 83871537 41127635 40025623 42743902 146074339 143107644 39873747 45949243 277639836 282093303 41129649 28990634 6917199 7751155 28150000 28150000 76196848 64891789 X 12154928 20020727 36237070 43063132 153050990 154117655 201442988 217201514 277639836 282093303 X 4945533 6428242 4384751 X 0 1 X 1 0 X 32485702 38170766 26996186 31657137 32806554 162116345 32485702 38170766 26996186 31657137 32806554 162116345 17723477 144392868 2410576 9192022 8115622 4080317 5303548 29102085 6611 4344 6898 5323 2691 25867 191244297 89708394 0.75500 0.80000 X 1 0 0 1 100 0 0 1 11963 0 1 105000 117063 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, or legal counsel occurred via telephone or an occasional meeting. 200650000 2832000 16418000 8644000 211256000 179557000 5647000 23760000 8314000 200650000 184733000 5494000 -2569000 8101000 179557000 178358000 9152000 4953000 7730000 184733000 156907000 6777000 21984000 7310000 178358000 0.17000 0.77000 0.06000 1 0 11250319 11250319 63859503 35864676 27994827 8761715 5262959 3498756 42743902 Absolute Return Equity Fund 18268570 F Hedged Equity Fund 23183980 F Charitable Perpetual Trusts 4496693 F 45949243 X 68028743 6428242 23300 492508 6944050 61084693 907061 2691 909752 61994445 52266217 23300 492508 515808 51750409 907061 4391442 5298503 57048912 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)(l)(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, 2018 and 2017. Part XI, Line 2d - Other Adjustments: Cost of goods sold netted against revenue 73,664. Fundraising expenses netted against revenue 418,844. Part XI, Line 4b - Other Adjustments: Partnership Income 2,691. Part XII, Line 2d - Other Adjustments: Cost of goods sold netted against revenue 73,664. Fundraising expenses netted against revenue 418,844. Part XII, Line 4b - Other Adjustments: Pension Plan Liability Adjustment 4,391,442. Europe 0 0 Program Services Foreign Tour 3447381 East Asia and the Pacific 0 0 Program Services Foreign Tour 816299 Central America and the Caribbean 0 0 Investments 34643588 0 0 0 0 0 0 38907268 0 38907268 1 0 1 0 0 0 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 721987 227740 494247 Community Counselling Service Co LLC PO Box 824885 Philadelphia PA 19182 Fundraising campaign strategy consulting 0 0 78423 -78423 Anne Reiss 110 Washington Ave 2512 Miami Beach FL 33139 Consulting 0 0 120905 -120905 721987 427068 294919 FL OH Sev Hall Gala 1274188 1083625 190563 54196 165943 27904 170801 1274188 1083625 190563 54196 165943 27904 170801 418844 -228281 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 ($227,740) based upon the agreed upon revenue rate. Total Fundraising Expenses For the year ending June 30, 2018, the Musical Arts Association incurred total fundraising expenses of $3,244,986 (reported on Form 990, Part IX, line 25, column (D)), which represented 9.9% of contributions and grants revenue of $32,806,554 (reported on Part VIII, line 1h). X X X 1 1 X X X 0 1 0 0 0 0 0 0 0 James E Menger Asst Treasurer/CFO 232862 0 0 0 645 0 8635 0 30875 0 273017 0 0 0 Andre Gremillet Executive Director 448726 0 0 0 20040 0 74476 0 35375 0 578617 0 0 0 William Warren Preucil Musician 589197 0 0 0 645 0 21259 0 23176 0 634277 0 0 0 Joshua S Smith Musician 257995 0 0 0 477 0 12764 0 8557 0 279793 0 0 0 Donald Miller Musician 276914 0 0 0 1149 0 23914 0 9226 0 311203 0 0 0 Paul Yancich Musician 266535 0 0 0 783 0 22688 0 15826 0 305832 0 0 0 Frank Rosenwein Musician 259737 0 0 0 441 0 10779 0 16559 0 287516 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 Executive Director'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 Executive Director in accordance with IRS rules and regulations. Health or social club dues or initiation fees: The Cleveland Orchestra pays dues for the Executive Director's membership at the Union Club of Cleveland. This membership is used by the Executive Director solely for business purposes and is therefore not treated as taxable compensation to the Executive Director. The Cleveland Orchestra also pays gym membership dues for the Executive Director, which is treated as taxable compensation to the Executive Director. The organization is no longer providing after June 30, 2018. Part I, Line 4b Andre Gremillet, Executive Director, participates in a supplemental non-qualified retirement plan. The Musical Arts Association credited his account for $67,223 in 2017. 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 232263CE1 2004-01-02 28150000 See Sch K, Part VI 0 0 0 A 28181772 325105 889523 26967144 2004 1 0 1 1 A 0 0 1 1 0 0.03100 0.03100 0 0 1 A 0 0 1 0 1 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 Refunding Bonds, Series 2003 Issuance were used to redeem The County of Cuyahoga, Ohio Economic Development Revenue Bonds, Series 1998, due April 1, 2028. The proceeds from the Series 1998 issuance funded certain costs associated with the renovation, expansion and restoration of Severance Hall, The Musical Arts Association's concert hall and principal offices. James E Menger CFO See Pt V - Retention for multi-year period X 75000 58161 0 1 1 James E Menger CFO See Pt V - Retention for multi-year period X 61250 30625 0 1 1 88786 X 111 1951828 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. 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 Executive Director, 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 Executive Director 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 Executive Director or the Executive Committee. When the Senior Manager with the potential conflict is the Executive Director, 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 Executive Director and Music Director. Responsibilities include evaluating the Executive Director's and Music Director's performance annually, recommending the annual goals and objectives for the Executive Director, setting the Executive Director'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 2017. The compensation subcommittee reviews the overall compensation program for the Senior Management of the ASSOCIATION established and recommended by the Executive Director. 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 2017. 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 -6,691. Pension Plan Liability Adjustment 4,391,442.