2017-11-14T14:19:42-06:00 2017-06-30 420714325 RSM US LLP 1 S Wacker Drive Suite 800 Chicago IL 60606 990 2016-07-01 363930153 Music and Dance Theater Chicago Inc MUSI 3123342400 205 East Randolph Drive Chicago IL 60601 Patricia Barretto President and CEO 3123342400 2017-11-10 1 Zack Fortsch P00052725 3126343400 108.171.131.187 2017-11-10 16:31:47 CS P 4B8E1423B9F197D509CCF13AB357181C17C415CB E8306AB20C0160E8154E0B2ED0E8D71D75EF1DFE 2016 2017-02-10 21:41:12Z Harris Theater for Music and Dance Patricia Barretto 205 East Randolph Drive Chicago IL 60601 10129147 0 X www.HarrisTheaterChicago.org X 1993 IL See Schedule O 29 28 257 358 0 0 3370878 1638923 2619340 2435062 -151685 736912 358898 557528 6197431 5368425 0 0 0 0 3686303 2874481 0 0 435401 7360772 6663127 11047075 9537608 -4849644 -4169183 76774568 71796250 27838290 24771604 48936278 47024646 X See Schedule O. 0 0 6227261 1051334 Resident Company Support and Capacity Building: Limited financial and administrative resources present challenges to the Harris Theater resident companies as they build the administrative capacity necessary for long-term sustainability. To address this need, the Harris Theater has developed a number of services and programs to empower non-profit companies to meet their varied artistic and institutional goals.During the 2016-2017 season, the Harris continued to provide support and capacity building services for resident companies. These services include subsidized and waived rental costs, marketing and audience engagement support, capacity-building resources, and artistic collaboration opportunities for its resident music and dance companies. In total, the Theater's resident companies held 69 performances of 49 productions by 23 companies, welcoming 48,182 audience members to the Harris during the 2016-17 season. These companies each received support from the Theater during their engagements in the form of rental subsidies, in-kind state-of-the-art theatrical equipment, production assistance, patron support staff from the Harris, and access to additional capacity-building programming.The Theater provided all resident companies with a reduced non-profit rental rate, underwriting 68% of the actual daily usage costs. In addition, the Theater provided technical and production timeline counsel on each of its resident companies' performances, and offered access to the International Alliance of Theatrical Stage Employees (I.A.T.S.E.) union sound designers, lighting designers, and stagehands to ensure companies maximized their artistic capabilities at the Theater.The Harris Theater's Learning Lab provides resident companies with venue-specific resources to ensure they are able to maximize their rental of the Theater and professional development workshops. The Theater served 23 individuals from 10 resident companies through the 2016-2017 Learning Lab series.Through the Tessitura Consortium, the Theater provides resident companies with the opportunity to become a sub-licensee of the Tessitura database system for a significantly subsidized fee. During the 2016-17 season, the Theater hosted two Learning Lab workshops specifically for members of the Tessitura Consortium, led by professional Tessitura consultants. The Committee on Resident Companies (CORC) meets quarterly to provide a forum for collective peer exchange among resident companies, Trustee representatives, and staff. Over four meetings in 2016-17, an average of 12 companies participated in each meeting, and 21 companies attended at least one meeting during the grant period. 1849551 1274713 Harris Theater Presents: The purpose of the Harris Theater Presents (HTP) series is to present extraordinary artists, ensembles, and performances which provide programming that uniquely complements Chicago's cultural offerings. HTP performances have a halo effect on resident company audience development efforts, provide an opportunity to collaborate artistically, in community engagement and master class settings and extend the Theater's mission through local and national visibility.The Harris Theater's thirteenth season welcomed an array international acts, groundbreaking dance, and classic music, including 19 world premieres and 4 Harris-commissioned original works. The Theater welcomed 19,332 audience members to the Harris Theater Presents, Exelon Family Series, Beyond the Aria, and Mix at Six performance series. Leading performers included Batsheva Dance Company, Angelique Kidjo, STREB, Joyce DiDonato, Danish Dance Theatre, Lil Buck, Wendy Whelan, Shanghai Jingju Theatre Company, and Jessica Lang Dance. 297959 109015 Harris Theater Community Engagement:The Harris Theater's Community Engagement activities aim to build bridges between artists and underserved youth and families from throughout the Chicago region, taking advantage of access to the world's leading musicians and dancers. Activities include Arts Education Partnerships and Access Tickets. In 2016-2017, Harris worked with 27 community partners to provide access to the Theater's world class music and dance. 1. Access Tickets leverages strategic partnerships with over 30 community organizations to provide underwritten tickets to youth and families identified through partner organizations in communities around the city. Each opportunity is strategically aligned with partner organizations to ensure that content will enhance and contribute to their mission and programmatic goals. Access Tickets has a strong relationship with Harris' Exelon Family Series, a regular series of Saturday afternoon programs designed to engage children and families in the live performing arts and foster a deeper incorporation of the arts in children's lives. Each year, Access Tickets provides free tickets to 30%-50% of all audience attending Exelon Family Series performances and tailor-made enrichment activities with Access Tickets partner organizations. During the 2016-2017 season, The Theater worked with 25 community partners to make 1,391 underwritten tickets available to 18 performances across the season.2. Arts Education Partnerships is a youth-artist education and mentoring program that provides aspiring teen artists with small-group engagement opportunities with visiting world-class artists performing at the Theater. Pre-professional opportunities for youth feature progressive levels of engagement, including master classes, collaborations, and observing artists in open rehearsals. These experiences are often paired with opportunities to attend performances through Access Tickets. In 2016-17, Arts Education Partnerships provided opportunities for roughly 200 young people to connect with the world's leading musicians and dancers through 14 events, including 10 master classes and workshops, 2 family enrichment activities for Access Tickets partners, 1 open rehearsal and artist Q&A for middle school students, 1 post-performance artist conversation for all audience members. 8374771 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 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 55 0 1 257 1 0 0 0 0 0 1 1 0 0 0 0 X 29 28 1 0 0 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 Alexandra C Nichols Chairman 20.00 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 Mary Kay Sullivan Vice Chair 5.00 X X 0 0 0 Ms Marilyn Fatt Vitale Secretary 5.00 X X 0 0 0 Mr David Snyder Treasurer 5.00 X X 0 0 0 Mr John W Ballantine Trustee 1.00 X 0 0 0 Ms Lee Blackwell Baur Trustee 1.00 X 0 0 0 Mr Paul S Boulis Trustee 1.00 X 0 0 0 Ms Louise Frank Trustee 1.00 X 0 0 0 Mr Jay Franke Trustee 5.00 X 0 0 0 Mr Robert J Gauch Jr Trustee 1.00 X 0 0 0 Ms Sandra P Guthman Trustee 5.00 X 0 0 0 Ms Joan W Harris Trustee 5.00 X 0 0 0 Ms Christine N Evans Kelly Trustee 1.00 X 0 0 0 Ms Deborah A Korompilas Trustee 1.00 X 0 0 0 Ms Merrillyn J Kosier Trustee 1.00 X 0 0 0 Mr Mac MacLellan Trustee 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 Abby McCormick O'Neil Trustee 5.00 X 0 0 0 Mr Jason Palmquist Past Trustee (Left March 1, 2017) 1.00 X 0 0 0 Mr William Ruffin Trustee 1.00 X 0 0 0 Ms Shannon L Schuyler Trustee 1.00 X 0 0 0 Mr Patrick M Sheahan Past Trustee (Left May 11, 2017) 1.00 X 0 0 0 Mr John Q Smith Trustee 1.00 X 0 0 0 Ms Susan Stark 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 Patricia Barretto Interim President & CEO 40.00 X X 157336 0 17938 Mr Paul Organisak President & CEO (Thru 6/5/17) 40.00 X X 0 0 0 Mr V Michael Tiknis Past President & Managing Director 40.00 X X 331003 0 20380 Ms Laura Hanssel Executive VP & CFO 40.00 X 174950 0 19193 Ms Lori Dimun General Manager 40.00 X 129189 0 6498 Mr Jeffrey Rollinson Head Carpenter/Union Steward 40.00 X 117766 0 41081 Mr Kevin D Sullivan Master Electrician 40.00 X 103812 0 36173 Ms Cheryl Mendelson Former COO & Executive VP 40.00 X 224914 0 14210 1238970 0 155473 7 1 1 0 Turner Construction 55 E Monroe Suite 1430 Chicago IL 60603 Construction 512441 Midway Building Services Ltd 1915 W Hubbard Street Chicago IL 60622 Janitorial Services 327017 Hamburgische Staatsoper GmbH GroBe TheaterstraBe 25 Hamburg GM Talent Manager 300976 DISCALCED Inc 3 Lafayette Avenue Brooklyn NY 11217 Talent Manager 216119 OPUS 3 Artists LLC 470 Park Avenue South 9th Floor No New York NY 10016 Talent Manager 166200 19 1638923 128231 1638923 Theater Box Office 711190 1383728 1383728 Usage Fees 711190 1051334 1051334 2435062 422940 422940 552151 0 552151 552151 552151 5074694 4760722 313972 313972 313972 5377 5377 5377 5368425 2435062 0 1294440 X 720800 595237 53994 71569 1650227 1362758 123617 163852 107082 74947 20402 11733 229226 160436 43673 25117 167146 139124 13949 14073 27816 25034 2782 46334 41701 4633 58740 52866 5874 1271792 1247766 20726 3300 538289 489261 13321 35707 198473 170191 18910 9372 505134 454621 50513 317884 306560 5605 5719 734896 661406 73490 1646206 1481585 164621 230528 207475 23053 Repairs & Maintenance 837966 689659 66927 81380 Cultivation Events 18307 16476 1831 230762 197668 19515 13579 9537608 8374771 727436 435401 1760201 647053 43269 17911 10376225 6410543 22192 61054 8147 8144 79518 226897 60103836 19298970 42326598 40804866 16094393 17880809 5885112 5564536 178913 174437 76774568 71796250 1145044 473191 442661 601810 20000000 20000000 5000000 3000000 1250585 696603 27838290 24771604 X 32968084 33193566 10468194 8331080 5500000 5500000 48936278 47024646 76774568 71796250 X -4169183 1703569 553982 X 0 1 X 1 0 X 2774071 11572557 4803036 3370878 1638923 24159465 2774071 11572557 4803036 3370878 1638923 24159465 10106999 14052466 1108792 779980 689906 1002139 975091 4555908 95715 9168 488 6037 5377 116785 28832158 12912688 0.48740 0.52640 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 5500000 520065 520065 5500000 5500000 -182052 -182052 5500000 5500000 -51094 -51094 5500000 500000 5000000 115422 115422 5500000 500000 42846 42846 500000 1.00000 1 0 57780743 17139101 40641642 2316481 2159869 156612 6612 6612 40804866 Alternative Investments 2258577 F Investment in Limited Liability Company 3305959 F 5564536 Fair Value of Swap Agreement 696603 696603 X 7666506 2257551 40530 2298081 5368425 0 5368425 9578138 40530 40530 9537608 0 9537608 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 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, 2017 and 2016, 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. The Theater is generally no longer subject to examination by the Internal Revenue Service for tax years before 2013. Part XI, Line 2d - Other Adjustments: Advertising 40,530. Part XII, Line 2d - Other Adjustments: Advertising 40,530. X 1 1 X X X X 1 0 0 0 0 0 0 1 0 Ms Patricia Barretto Interim President & CEO 152336 0 5000 0 0 0 6700 0 11238 0 175274 0 0 0 Mr V Michael Tiknis Past President & Managing Director 331003 0 0 0 0 0 10600 0 9780 0 351383 0 0 0 Ms Laura Hanssel Executive VP & CFO 164950 0 10000 0 0 0 7400 0 11793 0 194143 0 0 0 Mr Jeffrey Rollinson Head Carpenter/Union Steward 117766 0 0 0 0 0 14584 0 26497 0 158847 0 0 0 Ms Cheryl Mendelson Former COO & Executive VP 94914 0 0 0 130000 0 3571 0 10639 0 239124 0 0 0 Part I, Line 1a Social club dues were paid on behalf of Michael Tiknis in the amount of $700 for Theater related business. The social club dues are non-taxable. Part I, Line 4a Cheryl Mendelson, former Chief Operating Officer and Executive Vice President of External Affairs, received $130,000 as severance compensation in calendar year 2016. Part I, Line 7 The bonus payments received by Laura Hanssel, Patricia Barretto, and Lori Dimun are non-fixed and discretionary in nature. The bonuses are awarded on the basis of a merit system, as reviewed by the President of the Theater. Bonus payments are not guaranteed or contracted. Furthermore, Patricia Barretto's bonus was assessed while she served in her role as Executive Vice President of External Affairs in fiscal year 2017, and not in her later role as Interim President and CEO. Form 990, Schedule J: Patricia Barretto's calendar year 2016 compensation reported on Part VII was for her roles as Vice President of Marketing and Executive Vice President of External Affairs, and not for her later role towards the end of fiscal year 2017 as Interim President and CEO. 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 8 19591 FMV X Airfare 1 50000 Selling price of don X Hotel Lodging 1 45140 FMV X Photobooth 1 13500 FMV 0 0 0 0 Part I, Column (b): is the number of contributions and the number of items received. Form 990, Part I, Line 1: Description of Organization's Mission: The mission of the 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: support for local music and dance companies, presentation of national and international artists, and community engagement and educational programs. Today, the Harris Theater's original group of 12 resident companies has grown to include roughly 30 diverse music and dance companies, including Chicago Gay Men's Chorus, Chicago Symphony Orchestra's MusicNow, Giordano Dance Chicago, Hubbard Street Dance Chicago, and Music of the Baroque. The Theater supports resident companies with subsidized rental, technical expertise, marketing support, and professional development opportunities, allowing the organizations to focus on what they do best - bringing the finest in music and dance performances to the public. The Harris Theater is also dedicated to presenting the highest quality artistic programming, bringing celebrated artists and ensembles from throughout the world to Chicago through the Harris Theater Presents series. The Theater has achieved widespread recognition as a vital cultural anchor in Chicago, bringing artists such as Daniel Barenboim, Mikhail Baryshnikov, Joshua Bell, Renee Fleming, Angelique Kidjo, Hamburg Ballet, Paris Opera Ballet, and Stephen Sondheim to the Elizabeth Morse Genius Stage. The Harris Theater's community engagement initiatives take advantage of access to the world's leading musicians and dancers, building bridges to people from throughout the Chicago region and nurturing the next generation of artists and audiences. Ongoing programs include Arts Education Partnerships, which offers master classes and artist talks, and Access Tickets, which has provided over 13,000 free tickets to youth and families from more than 35 partner organizations. Form 990, Part III, Line 1: Description of Organization's Mission: The mission of the 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: support for local music and dance companies, presentation of national and international artists, and community engagement and educational programs. Today, the Harris Theater's original group of 12 resident companies has grown to include roughly 30 diverse music and dance companies, including Chicago Gay Men's Chorus, Chicago Symphony Orchestra's MusicNow, Giordano Dance Chicago, Hubbard Street Dance Chicago, and Music of the Baroque. The Theater supports resident companies with subsidized rental, technical expertise, marketing support, and professional development opportunities, allowing the organizations to focus on what they do best - bringing the finest in music and dance performances to the public. The Harris Theater is also dedicated to presenting the highest quality artistic programming, bringing celebrated artists and ensembles from throughout the world to Chicago through the Harris Theater Presents series. The Theater has achieved widespread recognition as a vital cultural anchor in Chicago, bringing artists such as Daniel Barenboim, Mikhail Baryshnikov, Joshua Bell, Renee Fleming, Angelique Kidjo, Hamburg Ballet, Paris Opera Ballet, and Stephen Sondheim to the Elizabeth Morse Genius Stage. The Harris Theater's community engagement initiatives take advantage of access to the world's leading musicians and dancers, building bridges to people from throughout the Chicago region and nurturing the next generation of artists and audiences. Ongoing programs include Arts Education Partnerships, which offers master classes and artist talks, and Access Tickets, which has provided over 13,000 free tickets to youth and families from more than 35 partner organizations. Form 990, Part VI, Section A, line 2 Joan W. Harris and Louise Frank have a family relationship. Form 990, Part VI, Section B, line 11b On October 12, 2017 the Board of Trustees of the Harris Theater approved a resolution that, with the Fiscal year ended June 30, 2017, 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 October 25, 2017, 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. Each board member received an electronic copy of the final version of Form 990 prior to its filing. 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 1,061,236. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,061,236. Consulting: Program service expenses 186,530. Management and general expenses 20,726. Fundraising expenses 3,300. Total expenses 210,556. Form 990, Part XI, line 9: Change in Unrealized Gain on Swap Agreement 553,982.