2019-08-15T19:37:34-05:00 2018-09-30 410746749 CLIFTONLARSONALLEN LLP 20 E THOMAS RD STE 2300 PHOENIX AZ 85012 990 2017-10-01 860107517 THE HEARD MUSEUM HEAR 6022528840 2301 N CENTRAL AVE PHOENIX AZ 85004 DAVID ROCHE CEO 6022528840 2019-08-13 1 JACQUELINE ECKMAN P01300648 6022662248 67.137.57.251 2019-08-13 17:13:03 US P 29E0587BA93A6A199F773AE5AB92E6D01B4A8886 F7A542F42EA5511B1F3E0A9626054208C37219FB 2017 2019-02-21 02:37:17Z DAVID ROCHE 2301 N CENTRAL AVE PHOENIX AZ 85004 11487348 0 X WWW.HEARD.ORG X 1929 AZ TO BE THE WORLD'S PREEMINENT MUSEUM FOR THE PRESENTATION, INTERPRETATION AND ADVANCEMENT OF AMERICAN INDIAN ART, EMPHASIZING ITS INTERSECTION WITH BROADER ARTISTIC AND CULTURAL THEMES. 29 29 139 430 0 1581 9484468 4278315 3355911 1899855 282201 480560 1496985 1325400 14619565 7984130 0 0 0 0 3910360 3967323 2235 0 904869 5276399 5300221 9188994 9267544 5430571 -1283414 28968513 27598376 1925390 1568854 27043123 26029522 X THE MISSION OF THE HEARD MUSEUM IS TO BE THE WORLD'S PREEMINENT MUSEUM FOR THE PRESENTATION, INTERPRETATION AND ADVANCEMENT OF AMERICAN INDIAN ART, EMPHASIZING ITS INTERSECTION WITH BROADER ARTISTIC AND CULTURAL THEMES. 0 0 6138135 3225424 SEE SCHEDULE O. 6138135 1 1 0 0 0 0 0 1 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 0 0 1 0 0 0 1 176 0 139 1 1 1 0 0 0 0 1 1 1 2 0 0 0 X 29 29 0 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 0 0 AZ X ROBIN KLUNG 6022528840 2301 N CENTRAL AVE PHOENIX AZ 85004 JOHN MELAMED CHAIR 4.00 X X 0 0 0 WICK PILCHER VICE CHAIR 4.00 X X 0 0 0 LELAND W PETERSON TREASURER 4.00 X X 0 0 0 PATRICIA K HIBBELER SECRETARY 4.00 X X 0 0 0 SUSAN H NAVRAN TRUSTEE 1.00 X 0 0 0 KAREN ABRAHAM TRUSTEE 1.00 X 0 0 0 TONY ASTORGA TRUSTEE 1.00 X 0 0 0 ARLENE K BEN-HORIN TRUSTEE 1.00 X 0 0 0 MARK B BONSALL TRUSTEE 1.00 X 0 0 0 GREGORY BOYCE TRUSTEE 1.00 X 0 0 0 CRAIG COHEN MD TRUSTEE 1.00 X 0 0 0 ROBERT A COWIE TRUSTEE 1.00 X 0 0 0 ELIZABETH MURFEE DECONCINI TRUSTEE 1.00 X 0 0 0 JUDY DWORKIN TRUSTEE 1.00 X 0 0 0 JOHN GRAHAM TRUSTEE 1.00 X 0 0 0 CARRIE L HULBURD TRUSTEE 1.00 X 0 0 0 JAMES R HUNTWORK TRUSTEE 1.00 X 0 0 0 STEPHEN R LEWIS TRUSTEE 1.00 X 0 0 0 MARIGOLD LINTON TRUSTEE 1.00 X 0 0 0 JOHN LOMAX TRUSTEE 1.00 X 0 0 0 ROBERT MEYER TRUSTEE 1.00 X 0 0 0 SCOTT MONTGOMERY TRUSTEE 1.00 X 0 0 0 SCOTT H O'CONNOR TRUSTEE 1.00 X 0 0 0 WILLIAM RIDENOUR TRUSTEE 1.00 X 0 0 0 DON SMITH TRUSTEE 1.00 X 0 0 0 CHRISTY VEZOLLES TRUSTEE 1.00 X 0 0 0 DAVID WILSHIN TRUSTEE 1.00 X 0 0 0 SUE SNYDER TRUSTEE 1.00 X 0 0 0 JANIS LYON TRUSTEE 1.00 X 0 0 0 MARY ENDORF TRUSTEE (LEFT 4/18) 1.00 X 0 0 0 MARK SCHIAVONI TRUSTEE (LEFT 6/18) 1.00 X 0 0 0 DAVID ROCHE CEO 40.00 X 254460 0 6409 ROBIN KLUNG CFO 40.00 X 104696 0 14428 JOHN BULLA COO 40.00 X 173655 0 7454 WILLIAM BRUCE MCGEE DIRECTOR OF RETAIL SALES 40.00 X 100192 0 6486 DAN HAGERTY DIR STRAT DEV & PROGRAMMING 40.00 X 146633 0 7332 779636 0 42109 5 0 1 0 OWENS HARKEY & ASSOCIATES LLC 3550 N CENTRAL AVENUE SUITE 1900 PHOENIX AZ 85012 MARKETING & PROMOTION 294195 PRO PRODUCTION SERVICES 3532 E ELWOOD STREET PHOENIX AZ 85040 AUDIO/VISUAL PRODUCTION SERVICES 130941 PRO EM LLC 1450 E GRANT STREET PHOENIX AZ 85034 EVENT MANAGEMENT SERVICES 114846 3 851700 583545 129370 294164 2419536 195312 4278315 ADMISSIONS 611710 893208 893208 FAIR INCOME 900099 505650 505650 PRIVATE USE FEES 721000 499067 499067 EDUCATIONAL REVENUE 611710 1930 1930 1899855 301952 301952 4584 4584 1224316 1045708 178608 178608 178608 72072 583545 97821 -25749 -25749 3685258 2359689 1325569 1325569 20996 20996 20996 7984130 3225424 0 480391 604520 604520 2858179 2137705 360093 360381 260791 190119 44670 26002 243833 159199 59096 25538 22463 22463 45045 45045 70298 70298 640978 493726 136954 10298 209158 209158 417587 349200 55097 13290 135829 48121 45818 41890 528969 370981 79922 78066 32293 13256 18932 105 79880 49784 29149 947 27285 27285 1778729 1245441 266644 266644 122829 122829 EXHIBITS 719168 719168 MEMBER SUPPORT 171330 137612 33718 FUNDRAISING 46847 46847 251533 223823 26567 1143 9267544 6138135 2224540 904869 461830 269461 1455283 1552754 271915 751219 15075 8788 1252997 1274074 135164 221076 42896287 27192352 17171766 15703935 8111338 7725274 89601 89354 3544 2441 28968513 27598376 527609 482828 504112 533516 800536 469000 93133 83510 1925390 1568854 X 20729960 18875219 1590123 2424762 4723040 4729541 27043123 26029522 28968513 27598376 X -1283414 276339 -6526 X X 0 1 X 1 0 X 3221987 4290421 4117227 9484468 4278315 25392418 3221987 4290421 4117227 9484468 4278315 25392418 7547543 17844875 139792 151571 202995 206577 306536 1007471 306269 72808 63640 32190 20996 495903 26895792 31966737 0.66350 0.66110 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS GROSS FUNDRAISING REVENUE X X X 1 10020798 6500 759969 989906 9797361 5525931 4260566 617589 383288 10020798 5200409 321321 440944 436743 5525931 5056041 20003 -279803 4796241 4943781 40005 72255 5056041 0.16720 0.75250 0.08030 1 1 1 22512378 12443181 10069197 6886322 2773937 4112385 3783883 3205147 578736 9713704 8770087 943617 15703935 GIFT ANNUITY PAYABLE 20904 DEPOSITS 62606 83510 X 10690570 276339 70000 70710 417049 10273521 70298 -2359689 -2289391 7984130 11626935 70000 2359689 2429689 9197246 70298 70298 9267544 PART III, LINE 1A: THE COLLECTIONS OF THE MUSEUM INCLUDE SEVERAL CATEGORIES OF NATIVE AMERICAN ART, PRIMARILY KACHINA DOLLS, BASKETS, JEWELRY, TEXTILES, CERAMICS, AND FINE ART, AS WELL AS COLLECTIONS FROM OTHER INDIGENOUS PEOPLES OF LATIN AMERICA, AFRICA AND OCEANIA, AND ARE EXPENSED IN THE PERIOD PURCHASED. IN CONFORMITY WITH THE PRACTICE FOLLOWED BY MANY MUSEUMS, ART OBJECTS CONTRIBUTED TO THE MUSEUM ARE NOT INCLUDED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. FURTHERMORE, IN CONFORMITY WITH INDUSTRY PRACTICE, THE MUSEUM HAS NOT RECORDED THE VALUE OF ITS COLLECTIONS ON THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION. THE FAIR VALUE OF CERTAIN COLLECTIONS IS DETERMINED BASED ON THIRD-PARTY EVIDENCE OF COMPARABLE ART SOLD THROUGH AUCTION HOUSES. THE FAIR VALUE OF COLLECTIONS CONTRIBUTED TO THE MUSEUM DURING THE YEARS ENDED SEPTEMBER 30, 2018 AND 2017 WERE $417,376 AND $446,780, RESPECTIVELY. PART III, LINE 4: THE CORPORATION MAINTAINS A MUSEUM IN THE CITY OF PHOENIX DEDICATED TO THE ADVANCEMENT OF AMERICAN INDIAN ART. THE HEARD MUSEUM ART COLLECTION CONCENTRATES ON THE LIVES OF NATIVE PEOPLES AND CONSISTS OF MORE THAN 40,000 OBJECTS. THE TWO FOCAL AREAS OF THE COLLECTION ARE COMPREHENSIVE CULTURAL COLLECTIONS FROM THE GREATER SOUTHWEST AND CONTEMPORARY NATIVE FINE ART FROM NORTH AMERICA. KEY COLLECTIONS INCLUDE HOPI KATSINA DOLLS; NAVAJO AND ZUNI JEWELRY, NAVAJO TEXTILES, SOUTHWESTERN CERAMICS FROM PREHISTORY TO THE PRESENT, AND BASKETS FROM THE SOUTHWEST, CALIFORNIA, THE GREAT BASIN AND THE NORTHWEST. THE APPROXIMATELY 4,000 FINE ART WORKS IN THE HEARD MUSEUM COLLECTION DOCUMENT THE AMERICAN INDIAN FINE ART MOVEMENT FROM THE 20TH CENTURY TO THE PRESENT, AND INCLUDE WORK BY SOME OF THE FINEST HISTORIC AND CONTEMPORARY AMERICAN INDIAN ARTISTS. PART V, LINE 4: THE INTENDED USE OF THE ENDOWMENT FUNDS IS TO PROVIDE FOR THE FUTURE FINANCIAL STRENGTH OF THE ORGANIZATION. PART V, LINE 1, COLUMN (C): THE PRIOR YEAR BEGINNING BALANCE IN THE ENDOWMENT FUNDS HAS BEEN INCREASED TO INCLUDE THE ASSETS HELD AS AN ENDOWMENT BY THE HEARD FAMILY ENDOWMENT TRUST (SEE SCHEDULE R) THAT IS AN IRREVOCABLE TRUST CREATED BY THE HEARD FAMILY FOR THE BENEFIT OF THE HEARD MUSEUM. SINCE THESE ASSETS ARE CURRENTLY HELD AS AN ENDOWMENT BY THE TRUST FOR THE BENEFIT OF THE MUSEUM, THEY ARE NOW INCLUDED ON THIS SCHEDULE. IN ADDITION, THERE WAS A RESTATEMENT OF THE ENDOWMENT BALANCE DUE TO THE CORRECTION OF AN ERROR AS EXPLAINED BELOW: DURING FISCAL YEAR 2016 MANAGEMENT OF THE MUSEUM DETERMINED THAT THE BALANCE OF THE ENDOWMENT AS OF OCTOBER 1, 2015 WAS INCORRECT. MANAGEMENT DETERMINED THAT A PORTION OF A CHARITABLE GIFT ANNUITY HAD BEEN INCLUDED IN THE ENDOWMENT AT THE INCORRECT AMOUNT. THIS RESULTED IN A CORRECTION TO THE ENDOWMENT BY REMOVING $415,657. ADDITIONALLY, MANAGEMENT OF THE MUSUEM DETERMINED THAT THE CAPITAL APPRECIATION OF A PERPETUAL TRUST DATING BACK TO 1932 WAS IMPROPERLY REFLECTED AS UNRESTRICTED NET ASSETS AND SHOULD HAVE BEEN PERMANENTLY RESTRICTED NET ASSETS. THIS RESULTED IN A CORRECTION OF AN ERROR BY DECREASING UNRESTRICTED NET ASSETS AND INCREASING PERMANETLY RESTRICTED NET ASSETS BY $2,567,288. THIS ERROR DID NOT HAVE AN IMPACT ON THE TOTAL ENDOWMENT BALANCE. HOWEVER, THE ERROR CAUSED A DEFICIT IN THE UNRESTRICTED PORTION OF THE ENDOWMENT BALANCE THAT WAS SUBSIDIZED BY A TRANSFER IN TOTALING $744,825 TO MAKE THE ENDOWMENT BALANCE WHOLE. THE REVISED ENDOWMENT BALANCE AS OF OCTOBER 1, 2015 WAS $5,200,409. ACCORDINGLY, SCHEDULE D, PART V, LINE 1A (C) DOES NOT AGREE TO THE LINE 1G (D) AS FOLLOWS: LINE 1G(D) $4,796,241 LESS CHARTIABLE GIFT ANNUITY CORRECTION ($415,657) PLUS DEFICIT CORRECTION $744,825 PLUS PERPETUAL TRUST ADJUSTMENT $75,000 ----------- LINE 1A(C) $5,200,409 PART X, LINE 2: THE MUSEUM EVALUATES ITS UNCERTAIN TAX POSITIONS, IF ANY, ON A CONTINUAL BASIS THROUGH REVIEW OF ITS POLICIES AND PROCEDURES, REVIEW OF ITS REGULAR TAX FILINGS, AND DISCUSSIONS WITH OUTSIDE EXPERTS. MANAGEMENT BELIEVES THAT THE HEARD MUSEUM HAVE NO UNCERTAIN TAX POSITIONS AS OF SEPTEMBER 30, 2018 AND 2017. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN GIFT ANNUITIES -6,526. ELIMINATE SEPARATE TRUST ACTIVITIES INCLUDED IN REVENUES 77,236. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD -2,359,689. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 2,359,689. MOONDANCE 655617 583545 72072 45048 40023 12750 655617 583545 72072 45048 40023 12750 97821 -25749 X X 0 0 0 0 0 0 0 1 0 DAVID ROCHE CEO 248460 0 6000 0 0 0 0 0 6409 0 260869 0 0 0 JOHN BULLA COO 167655 0 6000 0 0 0 0 0 7454 0 181109 0 0 0 DAN HAGERTY DIR STRAT DEV & PROGRAMMING 146633 0 0 0 0 0 0 0 7332 0 153965 0 0 0 PART I, LINE 7 BONUSES ARE PAID OUT ON A DISCRETIONARY BASIS MARK SCHIAVONI TRUSTEE - HE ALSO SERVES AS THE EXEC VP AND COO OF APS 349341 MARK SCHIAVONI IS A TRUSTEE OF THE MUSEUM. HE ALSO SERVES AS THE EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF ARIZONA PUBLIC SERVICE (APS). APS SUPPLIES THE MUSEUM WITH ALL OF ITS ELECTRIC POWER AT RATES ESTABLISHED BY STATE REGULATORS. 0 KAREN ABRAHAM TRUSTEE - SHE ALSO SERVES AS EXECUTIVE VP AND CFO OF BCBS INSURANCE 307536 ALSO SERVED AS EXECUTIVE VP AND CFO AT BCBS THROUGH FEBRUARY 2018. BCBS IS THE MUSEUM'S HEALTH INSURANCE PROVIDER AND HAS BEEN FOR OVER A DECADE. ANNUALLY THE INSURANCE COVERAGE IS COMPETITIVELY BID BY THE MUSEUM'S HEALTH INSURANCE BROKER, FRINGE BENEFIT GROUP. IN THE PAST BCBS HAS BEEN SELECTED AS A RESULT OF HAVING A COMPETITIVE BID PLUS A VERY BROAD NETWORK OF CARE PROVIDERS IN PHOENIX. 0 X 18 SEE EXPLANATION X SEE EXPLANATION X 3 107374 FMV X 17 58293 FMV X GUILD DONATIONS 3 29645 FMV 2 0 1 1 PART I, COLUMN (B): COLUMN B INCLUDES THE NUMBER OF CONTRIBUTIONS. PART I, LINE 32B: A BROKER IS USED FOR LIQUIDATION OF SECURITIES PART I, LINE 33: DURING THE YEAR, THE ORGANIZATION RECEIVED $417,376 OF WORKS OF ART, BOOKS, AND PUBLICATIONS DONATED TO ITS COLLECTION DURING THE YEAR ENDED SEPTEMBER 30, 2018. IN CONFORMITY WITH THE PRACTICE FOLLOWED BY MANY MUSEUMS, OBJECTS CONTRIBUTED TO THE ORGANIZATION ARE NOT INCLUDED AS REVENUE OR EXPENSE ON FORM 990, PARTS VIII OR IV. FORM 990, PART III, LINE 4A SINCE ITS FOUNDING IN 1929, THE HEARD MUSEUM HAS GROWN IN SIZE AND STATURE TO BECOME RECOGNIZED INTERNATIONALLY FOR THE QUALITY OF ITS COLLECTIONS, WORLD-CLASS EXHIBITIONS, EDUCATIONAL PROGRAMMING AND ITS UNMATCHED FESTIVALS. DEDICATED TO THE ADVANCEMENT OF AMERICAN INDIAN ART, THE HEARD SUCCESSFULLY PRESENTS THE STORIES OF AMERICAN INDIAN PEOPLE FROM A FIRST-PERSON PERSPECTIVE, AS WELL AS EXHIBITIONS THAT SHOWCASE THE BEAUTY AND VITALITY OF TRADITIONAL AND CONTEMPORARY ART. THE HEARD MUSEUM SETS THE STANDARD FOR COLLABORATING WITH AMERICAN INDIAN ARTISTS AND TRIBAL COMMUNITIES TO PROVIDE VISITORS WITH A DISTINCTIVE PERSPECTIVE ABOUT THE ART OF NATIVE PEOPLE, ESPECIALLY THOSE FROM THE SOUTHWEST. THE HEARD ACCOMPLISHES ITS MISSION BY: ORGANIZING EXHIBITS THAT SHOWCASE BOTH ITS COLLECTION OF MORE THAN 40,000 FINE ARTWORKS AND CULTURAL ARTIFACTS IN ITS PERMANENT COLLECTION AND ARTWORKS FROM OTHERS; HOLDING SPECIAL EVENTS THAT HIGHLIGHT ONE OR MORE ASPECTS OF NATIVE ART, CULTURES, AND/OR HISTORY; HOSTING APPROXIMATELY 8,500 SCHOOL CHILDREN TOURING THE MUSEUM EACH YEAR; SUPPORTING THE CAREERS OF AMERICAN INDIAN ARTISTS IN THE HEARD MUSEUM SHOPS AND BOOKS & MORE, A BOUTIQUE BOOKSTORE AND GIFT SHOP; OFFERING INDIGENOUS INGREDIENTS WITHIN THE MENU OF THE MUSEUM'S CAFE AND COFFEE CANTINA; AND OFFERING PROGRAMMING SUCH AS LECTURES, BOOK SIGNINGS AND PRESENTATIONS BY EXPERTS IN ART, HISTORY, AND CULTURES. APPROXIMATELY 131,000 PEOPLE VISITED THE MUSEUM DURING THE YEAR. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE SHALL CONSIST OF THE BOARD OFFICERS, THE IMMEDIATE PAST BOARD CHAIR, IF STILL A TRUSTEE, AND THE COMMITTEE CHAIR OF EACH STANDING COMMITTEE OTHER THAN THE AUDIT COMMITTEE. WHENEVER, IN THE JUDGMENT OF THE BOARD CHAIR, BOARD ACTION IS NECESSARY OR APPROPRIATE AND IT IS NOT PRACTICAL TO CALL A SPECIAL MEETING OF THE BOARD, THE EXECUTIVE COMMITTEE SHALL HAVE AND MAY EXERCISE ALL THE AUTHORITY OF THE BOARD, EXCEPT THAT THE EXECUTIVE COMMITTEE SHALL NOT HAVE AUTHORITY TO: (I) APPOINT OR REMOVE THE DIRECTOR; (II) ELECT OR REMOVE TRUSTEES; (III) AMEND THE BYLAWS; (IV) SELL, LEASE OR OTHERWISE DISPOSE OF REAL OR PERSONAL PROPERTY WITH A VALUE IN EXCESS OF $1,000,000; OR (V) INCUR ANY DEBT OR OTHER OBLIGATION OR LIABILITY IN EXCESS OF $500,000. FORM 990, PART VI, SECTION A, LINE 6 MEMBERSHIP IN THE HEARD MUSEUM SHALL BE OPEN TO ALL PERSONS UPON PAYMENT OF SUCH DUES AS THE BOARD OF TRUSTEES MAY FROM TIME TO TIME ESTABLISH. FORM 990, PART VI, SECTION A, LINE 7A THERE IS A SUPPORT ORGANIZATION WITHIN THE HEARD MUSEUM, THE HEARD MUSEUM GUILD, THAT ELECTS ITS OFFICERS. THE PRESIDENT OF THE GUILD IS DESIGNATED AS A TRUSTEE OF THE MUSEUM PER THE GOVERNING DOCUMENTS. THE PRESIDENT OF THE GUILD IS THE ONLY MEMBER OF THE MUSEUM BOARD THAT IS NOT ELECTED BY THE TRUSTEES OF THE MUSEUM. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY AN OUTSIDE ACCOUNTING FIRM AND REVIEWED BY THE CFO, COO AND PRESIDENT/CEO, WITH A FINAL REVIEW BY THE AUDIT COMMITTEE AND DISTRIBUTION TO THE BOARD OF TRUSTEES BEFORE FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE AND NATURE OF HIS OR HER FINANCIAL INTEREST TO THE TRUSTEES AND MEMBERS OF COMMITTEES WITH BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER DISCLOSURE OF THE FINANCIAL INTEREST, THE INTERESTED PERSON SHALL LEAVE THE BOARD OR COMMITTEE MEETING WHILE THE FINANCIAL INTEREST IS DISCUSSED AND VOTED UPON. THE REMAINING BOARD OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. IN ANY CASE WHERE THE HEARD ENTERS INTO A TRANSACTION IN WHICH A TRUSTEE IS AN INTERESTED PARTY, THE TRUSTEE SHALL NOT PARTICIPATE IN ANY DECISIONS CONCERNING THE SOURCE OF THE CONFLICT. THIS PROVISION SHALL ALSO APPLY IN ANY CASE WHERE A FAMILY MEMBER OF A TRUSTEE IS EMPLOYED BY OR IS A CONTRACTOR TO THE MUSEUM AND SHALL INCLUDE ANY DISCUSSIONS OR DECISIONS RELATED TO EMPLOYMENT OR OTHER ASSOCIATION, PERFORMANCE EVALUATION OR COMPENSATION OF A FAMILY MEMBER. EACH TRUSTEE AND MEMBER OF A COMMITTEE WITH BOARD DELEGATED POWERS SHALL ANNUALLY SIGN A STATEMENT WHICH AFFIRMS THAT SUCH PERSON (A) HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY,(B) HAS READ AND UNDERSTANDS THE POLICY,(C) HAS AGREED TO COMPLY WITH THE POLICY, AND(D) UNDERSTANDS THAT THE HEARD IS A TAX-EXEMPT ORGANIZATION AND THAT IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. THE MINUTES OF THE BOARD AND ALL COMMITTEES WITH BOARD DELEGATED POWERS SHALL CONTAIN A RECORD OF ANY VOTES TAKEN IN CONNECTION THEREWITH. FORM 990, PART VI, SECTION B, LINE 15A THE SEARCH AND EXECUTIVE COMMITTEES OF THE BOARD OF TRUSTEES REVIEW THE SALARY OF THE DIRECTOR/CEO PRIOR TO EMPLOYMENT INITIATIONS. EXECUTIVE COMPENSATION IS REVIEWED AGAINST THE MOST RECENT AMERICAN ALLIANCE OF MUSEUMS NATIONAL MUSEUM SALARY SURVEY REPORT AND AGAINST COMPENSATION OF OTHER NON-PROFIT ORGANIZATIONS. THE COMMITTEES REVIEWED THE DIRECTOR'S SALARY IN 2015 PRIOR TO THE HIRING OF THE NEW DIRECTOR/CEO WHO STARTED JANUARY 2016. AFTER DISCUSSION WITH THE DIRECTOR/CEO, IT WAS DECIDED THAT THE SALARY OF THE DIRECTOR/CEO WOULD REMAIN UNCHANGED THROUGH SEPTEMBER 2018 AND THAT A REVIEW WOULD BE PERFORMED BEFORE THE END OF THE FISCAL YEAR ENDING SEPTEMBER 2019. THE DIRECTOR/CEO REVIEWS SALARY OF KEY EMPLOYEES ANNUALLY INCLUDING A COMPARISON OF THE COMPENSATION OF OTHER LOCAL NOT-FOR-PROFIT ORGANIZATIONS. THE PROCESS WAS LAST REVIEWED IN 2018. FORM 990, PART VI, SECTION C, LINE 19 THE ARTICLES OF INCORPORATION, BY-LAWS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN GIFT ANNUITY -6,526. FORM 990, PART XII, PG 12, LINE 2C: THERE HAS BEEN NO CHANGE IN EITHER THE OVERSIGHT PROCESS OR THE SELECTION PROCESS DURING THE TAX YEAR. HEARD FAMILY ENDOWMENT TRUST JP MORGAN CHASE 270 PARK NEW YORK NY 10017 946095432 INVESTMENT AZ JP MORGAN CHASE TRUSTEE T 110508 2960880 1.00000 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 HEARD FAMILY ENDOWMENT TRUST C 129370 CASH TRANSFERRED