2017-05-15T14:07:39-05:00 2016-09-30 410746749 CLIFTONLARSONALLEN LLP 20 E THOMAS RD STE 2300 PHOENIX AZ 85012 990 2015-10-01 860107517 THE HEARD MUSEUM HEAR 6022510221 2301 N CENTRAL AVE PHOENIX AZ 85004 DAVID ROCHE DIRECTOR AND CEO 6022510221 2017-05-12 1 STEPHEN E LIVINGSTON CPA P00317845 6022662248 2015 2021-01-29 14:40:06Z DAVID ROCHE 2301 N CENTRAL AVE PHOENIX AZ 85004 11080018 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 IT'S INTERSECTION WITH BROADER ARTISTIC AND CULTURAL THEMES. 28 28 123 449 0 0 4290421 4117227 2020012 2013766 107356 200564 1438256 1222998 7856045 7554555 0 0 0 0 3751866 3926238 60000 38838 613870 4867719 4572804 8679585 8537880 -823540 -983325 24713433 23921687 2792834 2783306 21920599 21138381 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 6431370 3333385 SEE SCHEDULE O 6431370 1 1 0 0 0 0 0 1 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 1 1 0 0 0 0 1 0 0 0 0 0 1 0 1 1 1 0 0 0 1 0 0 0 1 157 0 1 123 1 0 0 0 0 0 1 1 1 1 0 0 0 X 28 28 0 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 0 0 AZ X X ROBIN KLUNG 6022528840 2301 N CENTRAL AVE PHOENIX AZ 85004 SUSAN H NAVRAN CHAIR 10.00 X X 0 0 0 MARK SCHIAVONI VICE CHAIR 4.00 X X 0 0 0 JOETTE B SCHMIDT SECRETARY 4.00 X X 0 0 0 PATRICIA K HIBBELER TREASURER 4.00 X X 0 0 0 ARLENE K BEN-HORIN TRUSTEE 1.00 X 0 0 0 HOWARD R BERLIN 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 W DAVID CONNELL 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 RYAN P DESMOND TRUSTEE 1.00 X 0 0 0 ROBERT S DIAMOND TRUSTEE 1.00 X 0 0 0 ALICE DICKEY 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 SUSAN KOLMAN 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 JOHN MELAMED TRUSTEE 1.00 X 0 0 0 SCOTT H O'CONNOR TRUSTEE 1.00 X 0 0 0 LELAND W PETERSON TRUSTEE 1.00 X 0 0 0 WICK PILCHER TRUSTEE 1.00 X 0 0 0 WILLIAM RIDENOUR TRUSTEE 1.00 X 0 0 0 DAVID WILSHIN TRUSTEE 1.00 X 0 0 0 JOHN BULLA INTERIM CEO 40.00 X 176299 0 6002 JOEY STILLMAN DIRECTOR OF FINANCE 40.00 X 99171 0 13755 ANN MARSHALL DIRECTOR OF CURATION & EDUCATION 40.00 X 103220 0 4956 WILLIAM BRUCE MCGEE DIRECTOR OF RETAIL SALES 40.00 X 100441 0 7835 479131 0 32548 3 0 1 0 0 796596 281768 112343 211264 2715256 291261 4117227 ADMISSIONS 611710 1004040 1004040 FAIR INCOME 900099 546623 546623 PRIVATE USE FEES 721000 456243 456243 EDUCATIONAL REVENUE 611710 6860 6860 2013766 188938 188938 14057 14057 951375 939749 11626 11626 11626 38200 281768 174318 -136118 -136118 3731015 2411396 1319619 1319619 MISCELLANEOUS 900099 25440 25440 25440 7554555 3333385 0 103943 312275 51080 176099 85096 3090955 2373090 612921 104944 279810 235149 40257 4404 243198 180120 49784 13294 28208 28208 40449 40449 38838 38838 27484 27484 188843 141662 47181 263639 263639 442112 385109 48763 8240 79928 50834 29094 545735 545735 38407 19919 11822 6666 64388 19379 45009 52088 52088 1621708 1135196 243256 243256 92313 92313 EXHIBITS 598480 598480 OTHER 277664 275068 2596 MEMBER SUPPORT 134299 104822 29477 FUNDRAISING 77059 77059 8537880 6431370 1492640 613870 X 473310 360228 1662719 2196333 355577 439602 31121 23167 2553483 1610461 179788 218663 40163772 23692590 17082033 16471182 2285815 2509350 83041 83973 6546 8728 24713433 23921687 687098 1129239 484386 442043 1500000 1097709 28674 121350 85641 2792834 2783306 X 17030338 15014940 2648541 3560400 2241720 2563041 21920599 21138381 24713433 23921687 X -983325 197541 3566 X X 0 1 X 1 0 X 3025296 3142508 3221987 4290421 4117227 17797439 3025296 3142508 3221987 4290421 4117227 17797439 3055291 14742148 58862 82806 139792 151571 202995 636026 348236 303173 306269 72808 63640 1094126 19527591 33000690 0.75490 0.79050 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS GROSS FUNDRAISING REVENUE RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X X 1 5200409 321321 440944 436743 5525931 5056041 20003 -279803 4796241 4943781 40005 72255 5056041 4555550 46570 341661 4943781 4094164 10519 450867 4555550 0.04430 0.94200 0.01370 1 1 1 22512378 11298003 11214375 4136202 1862031 2274171 3303016 2886729 416287 10212176 7645827 2566349 16471182 DEPOSITS & GIFT CERTIFICATES 59055 GIFT ANNUITY PAYABLE 26586 85641 X 10235336 197541 79041 276582 9958754 27484 -2431683 -2404199 7554555 10942079 2431683 2431683 8510396 27484 27484 8537880 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 STATEMENT 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 YEAR ENDED SEPTEMBER 30, 2016 WAS APPROXIMATELY $1,221,022. PART III, LINE 4: THE CORPORATION MAINTAINS A MUSEUM OF ANTHROPOLOGY AND ART IN THE CITY OF PHOENIX FOR THE PURPOSE OF EDUCATING THE PUBLIC ABOUT THE HERITAGE, LIVING CULTURES AND ARTS OF NATIVE PEOPLES, WITH AN EMPHASIS ON THE PEOPLES OF THE SOUTHWEST. THIS PURPOSE IS ACCOMPLISHED THROUGH THE MUSEUM'S PROGRAMS OF EDUCATION, EXHIBITION, COLLECTION, RESEARCH, AND PUBLICATION. PART V, LINE 4: THE INTENDED USE OF THE ENDOWMENT FUNDS ARE TO PROVIDE FOR THE FUTURE FINANCIAL STRENGTH OF THE ORGANIZATION. PART V, LINE 1, COLUMN (A): THE CURRENT 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 (A) DOES NOT AGREE TO THE LINE 1G (B) AS FOLLOWS: LINE 1G(B) $4,796,241 LESS CHARTIABLE GIFT ANNUITY CORRECTION ($415,657) PLUS DEFICIT CORRECTION $744,825 PLUS PERPETUAL TRUST ADJUSTMENT $75,000 ----------- LINE 1A(A) $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 AND THE TRUST HAVE NO UNCERTAIN TAX POSITIONS AS OF SEPTEMBER 30, 2016. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN GIFT ANNUITIES 3,566. ELIMINATE SEPARATE TRUST INCOME 75,475. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD -2,411,396. FUNDRAISING COST MOVED FROM EXPENSES -20,287. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 2,411,396. FUNDRAISING COST MOVED TO REVENUE 20,287. FORM 990, SCH D, PART XI & XII THE 2016 $700 THOUSAND DEFICIT PER THE AUDITED FINANCIAL STATEMENTS INCLUDES NON-CASH DEPRECIATION EXPENSE SUMMARIZED ON THE TABLE BELOW. REVERSING THE EFFECT OF THIS NON-CASH EXPENSE BETTER REFLECTS OPERATING RESULTS OF THE MUSEUM'S CORE OPERATIONS. 2016 DEFICIT (706,743) PLUS: DEPRECIATION 1,621,708 ---------- ADJUSTED 2016 RESULTS 914,965 X X X X X X 1 DIANNE BAKER 19943 N GREENVIEW DRIVE SUN CITY WEST AZ 87375 CONTRACTED GRANT WRITER 0 336000 38838 297162 336000 38838 297162 AZ MOONDANCE 299923 261723 38200 55270 91957 6804 GOLF CLASSIC 20045 20045 20287 319968 281768 38200 55270 91957 27091 174318 -136118 SCHEDULE G, GOLF CLASSIC EVENT #2: GOLF CLASSIC IN 2016 WAS FREE FOR VETERAN PARTICIPANTS, WHOSE ENTRY FEES WERE UNDERWRITTEN BY VARIOUS CORPORATE SPONSORS WHOSE SPONSORSHIP PAYMENTS WERE REPORTED AS CONTRIBUTIONS ON SCH G. SINCE NO PAYMENTS WERE MADE BY THE PARTICIPANTS FOR THE GOLF, NO AMOUNTS WERE REPORTABLE ON LINE 3 FOR THIS EVENT. X X 0 0 0 0 0 0 0 0 0 JOHN BULLA INTERIM CEO 163799 0 12500 0 0 0 0 0 6002 0 182301 0 0 0 MARK SCHIAVONI TRUSTEE - HE ALSO SERVES AS THE EXEC VP AND COO OF APS 363875 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 WICK PILCHER TRUSTEE - HE ALSO MANAGES USI SERVICES, LLC, FORMERLY PILCHER INSURANCE 100936 WICK PILCHER IS A TRUSTEE OF THE MUSEUM. HE ALSO MANAGES USI SERVICES, LLC, FORMERLY PILCHER INSURANCE BROKER, IN PHOENIX. USI SERVICES AS THE MUSEUM'S GENERAL AND PROFESSIONAL INSURANCE BROKER. ANNUALLY, ALL GENERAL AND PROFESSIONAL INSURANCES ARE COMPETITIVELY BID. 0 X 19 0 SEE EXPLANATION X 0 SEE EXPLANATION X 7 81449 FMV X 11 46953 FMV X FR ITEMS 22 97859 FMV X CATERING 7 65000 FMV 8 0 1 1 PART I, COLUMN (B): NUMBER OF CONTRIBUTORS PART I, LINE 32B: A BROKER IS USED FOR LIQUIDATION OF SECURITIES PART I, LINE 33: THE FAIR VALUE OF OF THE ARTWORK CONTRIBUTED TO THE MUSEUM DURING THE YEAR ENDED SEPTEMBER 30, 2016 WAS APPOXIMATELY $626,097. 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 THE HEARD MUSEUM IS A PRIVATE NON-PROFIT MUSEUM THAT PURSUES AN EDUCATIONAL MISSION OF EDUCATING THE PUBLIC ABOUT THE ARTS AND HISTORY OF AMERICAN INDIANS AND OTHER INDIGENOUS PEOPLES OF THE AMERICAS WITH AN EMPHASIS ON PEOPLES OF THE SOUTHWEST USA. THE HEARD ACCOMPLISHES THIS TASK BY: ORGANIZING EXHIBITS THAT SHOWCASE BOTH ITS COLLECTION OF MORE THAN 44,000 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 MORE THAN 7,500 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 BY OFFERING PROGRAMMING SUCH AS LECTURES, BOOK SIGNINGS AND PRESENTATIONS BY EXPERTS IN ART, HISTORY, AND CULTURES. APPROXIMATELY 108,000 PEOPLE VISITED THE MUSEUM DURING THE YEAR. 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. THIS IS THE ONLY MEMBER OF THE MUSEUM BOARD THAT IS ELECTED BY MEMBERSHIP. FORM 990, PART VI, SECTION B, LINE 11 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 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. FORM 990, PART VI, SECTION B, LINE 15A THE SEARCH AND EXECUTIVE COMMITTEES OF THE BOARD OF TRUSTEES REVIEW THE SALARY OF THE DIRECTOR PRIOR TO EMPLOYMENT INITIATIONS. EXECUTIVE COMPENSATION IS REVIEWED AGAINST THE MOST RECENT AMERICAN ALLIANCE OF MUSEUMS NATIONAL MUSEUM SALARY SURVEY REPORT. THE COMMITTEES DISCUSS THE COMPENSATION OF OTHER NON-PROFIT ORGANIZATIONS IN THE PROCESS. THE COMMITTEES LAST REVIEWED THE DIRECTOR'S SALARY IN 2015 PRIOR TO THE HIRING OF THE NEW DIRECTOR/CEO WHO STARTED JANUARY 2016. THE CEO/MUSEUM DIRECTOR REVIEWS THE SALARIES OF KEY EMPLOYEES PERIODICALLY INCLUDING A COMPARISON OF THE COMPENSATION OF OTHER LOCAL NOT-FOR-PROFIT ORGANIZATIONS. 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 X, PG 11, COLUMN A, LINES 27-29: DURING FISCAL 2016, MANAGEMENT OF THE MUSEUM DETERMINED THAT A PORTION OF CHARITABLE GIFT ANNUITY HAD BEEN IMPROPERLY INCLUDED IN PERMANENT RESTRICTED NET ASSETS IN THE AMOUNT OF $665,657 DATING BACK TO 2010. THERE WERE NO RESTRICTIONS ASSOCIATED WITH THE CHARITABLE GIFT ANNUITY. THIS CORRECTION OF AN ERROR RESULTS IN DECREASING PERMANENTLY RESTRICTED NET ASSETS AND INCREASING UNRESTRICTED NET ASSETS BY $665,657 AS OF SEPTEMBER 30, 2015. THE RESTATEMENT HAD NO EFFECT ON THE CHANGE IN NET ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 2015. DURING FISCAL 2016, MANAGEMENT OF THE MUSEUM DETERMINED THAT A PERPETUAL TRUST DATING BACK TO 1932, IN THE ORIGINAL AMOUNT OF $75,000 WAS IMPROPERLY REFLECTED AS UNRESTRICTED NET ASSETS AND SHOULD HAVE BEEN PERMANENTLY RESTRICTED. ADDITIONALLY, THE PERPETUAL TRUST IS CONSOLIDATED FOR AUDITED FINANCIAL STATEMENT PURPOSE, BUT IS EXCLUDED FOR FORM 990 PURPOSES. ACCORDINGLY, THE $75,000 WAS REMOVED FROM THE BEGINNING PERMANTELY RESTRICTED NET ASSET COLUMN. THE RESTATEMENT HAD NO EFFECT ON THE CHANGE IN NET ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 2015. FORM 990, PART XI, LINE 9: CHANGE IN GIFT ANNUITY 3,566. 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 64035 2717763 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 112343 CASH TRANSFERRED