2017-05-12T12:17:12-05:00 2016-06-30 420714325 RSM US LLP 1001 LAKESIDE AVE SUITE 200 CLEVELAND OH 441141152 990 2015-07-01 340714468 The Musical Arts Association MUSI 2162317300 11001 Euclid Avenue Cleveland OH 44106 James E Menger Chief Financial Officer 2162317300 2017-05-12 1 Zachary Fortsch P00052725 2165231900 2015 2021-01-29 14:40:06Z The Cleveland Orchestra Andre Gremillet 11001 Euclid Avenue Cleveland OH 44106 122690055 0 X www.clevelandorchestra.com X 1925 OH The core purpose of The Musical Arts Association is to provide inspirational experience by serving the art of music at the highest level of artistic excellence. 81 81 581 1386 6898 5898 38170766 26996186 17033698 17475626 10733431 4517120 95070 97636 66032965 49086568 0 0 0 0 32813473 33653150 274162 246519 2636490 20076795 20412912 53164430 54312581 12868535 -5226013 270523784 258081769 70291874 79193195 200231910 178888574 X The core purpose of The Musical Arts Association is to provide inspirational experience by serving the art of music at the highest level of artistic excellence. The Musical Arts Association operates The Cleveland Orchestra, Severance Hall, and Blossom Music Center. 0 0 22401353 7569006 Severance Hall and Northeast Ohio:Franz Welser-Most's fourteenth season as music director began in September with Richard Strauss's An Alpine Symphony and concluded with Antonin Dvorak's Stabat Mater at Severance Hall in May. In between, The Cleveland Orchestra's performances included Bruckner's Symphony No. 6, Shostakovich's Fourth Symphony, world premieres of Richard Sortomme's Concerto for Two Violas and Bernard Rands's English Horn Concerto, and, with the Cleveland Orchestra Chorus, major choral-orchestral works by Beethoven, Dvorak, Handel, Mahler, and Verdi. From September 2015 through August 2016, the Orchestra performed 106 concerts at Severance Hall. These performances included 68 regular subscription concerts, plus the annual Holiday Festival in December, three At the Movies presentations, the Summers@Severance series, and Family Concert series, plus weekday Education Concerts. The Orchestra's annual Gala benefit evening took place on October 3, 2015, featuring soprano Renee Fleming performing with the Orchestra and conducted by Franz Welser-Most, and raising funds in support of the Institution's education and community programs. The season featured a double bill of staged opera and ballet in four performances at Severance Hall in April. The performances, presented by the Orchestra in collaboration with Chicago's Joffrey Ballet, featured two works by 20th-century Hungarian composer Bela Bartok - the gritty and tragic ballet The Miraculous Mandarin and the operatic psychological thriller Bluebeard's Castle. The world premiere production featured newly commissioned choreography and staging for both Bartok works under the direction of choreographer Yuri Possokhov. All together, these Severance Hall concerts drew in over 165,000 total admissions. Attendance rose for the 2015-16 season at Severance Hall, with record ticket revenue from the sold-out annual Christmas Concerts. The number of households from across the region attending Cleveland Orchestra concerts throughout the year also continued to increase. 8735815 2860911 Blossom Festival:The Orchestra's 2015 Blossom Music Festival featured 17 concerts beginning with two Cleveland Orchestra concerts and a Blossom Festival Band concert, followed by the official Opening Night concert featuring Franz Welser-Most leading a performance of Beethoven's Ninth Symphony. The summer ended nine weeks later with over 25,000 people attending in a single weekend for a program of music by John Williams for Labor Day Weekend. For a second consecutive summer, the Festival broke records for per-concert attendance, with an average of more than 7,500 admissions for each performance and total admissions of nearly 128,000. The summer also featured 21 non-Festival concert performances and 6 other events hosted by LiveNation, which operates Blossom Music Center for the Musical Arts Association. 11656799 4334235 Touring and Residencies:Franz Welser-Most led The Cleveland Orchestra on its 2015 European Tour and Vienna Residency in October 2015. This was their fifteenth international tour together and included performances in Brussels, Cologne, Luxembourg, Dortmund, Milan, Munich, Paris (with the ensemble's debut performance at the new Philharmonie de Paris), and Regensburg, and ended with four performances during a weeklong residency at Vienna's Musikverein. The Cleveland Orchestra's annual residency in Miami, Florida, celebrated its tenth anniversary concert season, presented in collaboration with the Miami Music Association and promoted publicly under the name Cleveland Orchestra Miami. The season commemorated the achievements of the first ten seasons and included a Gala benefit performance on January 23rd with soprano Renee Fleming. Four weekends of subscription concerts, led by Franz Welser-Most and Giancarlo Guerrero, were presented in partnership with Miami's Adrienne Arsht Center for the Performing Arts of Miami-Dade County and, together with the Gala, drew just over 13,000 in admissions. Free Education Concerts for Miami-Dade County public school students, Musical Rainbow concerts for young children, and after-school programs and mentoring sessions were also included. 3321285 2711474 Education and Community Programs:The Cleveland Orchestra's Education and Community Programs served over 112,021 individuals during the 2015-2016 season. A community-wide collaboration, "Violins of Hope," featured instruments that survived the Holocaust in a Cleveland Orchestra concert that inaugurated the new Maltz Performing Arts Center in September 2015. Violins of Hope Education Concerts designed for students followed a similar theme. In addition to Education Concerts, education programs included Family Concerts and Musical Rainbows at Severance Hall; Youth Orchestra and Youth Chorus concerts and programs; in-school concerts at area schools; in-school teaching partnerships with elementary and pre-schools; family workshops; teacher workshops; master classes, open rehearsals, and a ticket discount program for college students; as well as concert previews and music study groups for adult learners. Free community concerts included the annual Star-Spangled Spectacular Concert in downtown Cleveland and Martin Luther King, Jr. Celebration Concert at Severance Hall. The "Hough" Neighborhood Residency included free concerts, summer camp instrumental music instruction, community center partnerships, participation in neighborhood festivals, and community service activities. 3321285 2711474 46115252 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 1 195 0 1 581 1 1 1 1 AU 0 0 0 1 1 0 0 0 0 X 81 81 1 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 OH X James E Menger 2162317300 11001 Euclid Avenue Cleveland OH 44106 Dennis W LaBarre President & Resident Trustee 13.00 X X 0 0 0 Richard J Bogomolny Chairman & Resident Trustee 13.00 X X 0 0 0 The Honorable John D Ong Vice President & Resident Trustee 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 2.00 X 0 0 0 Matthew V Crawford Resident Trustee 2.00 X 0 0 0 Alexander M Cutler Resident Trustee 2.00 X 0 0 0 David J Hooker Resident Trustee 2.00 X 0 0 0 Michael J Horvitz Resident Trustee 2.00 X 0 0 0 Douglas A Kern Resident Trustee 2.00 X 0 0 0 Virginia M Lindseth Resident Trustee 2.00 X 0 0 0 Alex Machaskee Resident Trustee 2.00 X 0 0 0 Nancy W McCann Resident Trustee 2.00 X 0 0 0 John C Morley Resident Trustee 2.00 X 0 0 0 Larry Pollock Resident Trustee 2.00 X 0 0 0 Alfred M Rankin Jr Resident Trustee 2.00 X 0 0 0 Audrey Gilbert Ratner Resident Trustee 2.00 X 0 0 0 Barbara S Robinson Resident Trustee 2.00 X 0 0 0 Raymond T Sawyer Resident Trustee 1.00 X 0 0 0 George N Aronoff Resident Trustee 1.00 X 0 0 0 Dr Ronald H Bell Resident Trustee 1.00 X 0 0 0 Charles P Bolton Resident Trustee 1.00 X 0 0 0 Yuval Brisker Resident Trustee (as of 6/17/16) 1.00 X 0 0 0 Helen Rankin Butler Resident Trustee 1.00 X 0 0 0 Irad Carmi Resident Trustee (as of 12/8/15) 1.00 X 0 0 0 Scott Chaikin Resident Trustee (thru 12/8/15) 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 Paul G Greig Resident Trustee 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 1.00 X 0 0 0 Christopher Hyland Resident Trustee (thru 12/8/15) 1.00 X 0 0 0 Trevor O Jones Resident Trustee (thru 12/8/15) 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 S Lee Kohrman Resident Trustee 1.00 X 0 0 0 Charlotte R Kramer Resident Trustee (thru 12/8/15) 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 (as of 12/8/15) 1.00 X 0 0 0 Donald W Morrison Resident Trustee 1.00 X 0 0 0 Margaret Fulton Mueller Resident Trustee 1.00 X 0 0 0 Gary A Oatey Resident Trustee (thru 12/8/15) 1.00 X 0 0 0 Katherine T O'Neill Resident Trustee 1.00 X 0 0 0 Rich Paul Resident Trustee (as of 12/8/15) 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 Trustee 1.00 X 0 0 0 Steven M Ross Resident Trustee 1.00 X 0 0 0 Luci Schey Spring Resident Trustee 1.00 X 0 0 0 Richard K Smucker 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 Joseph F Toot Jr Resident Trustee 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 (as of 12/8/15) 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 1.00 X 0 0 0 Herbert Kloiber Non-Resident Trustee 1.00 X 0 0 0 Ludwig Scharinger Non-Resident Trustee (thru 12/8/15) 1.00 X 0 0 0 Faye A Heston Trustee Ex-Officio 1.00 X 0 0 0 Dr Patricia Moore Smith Trustee Ex-Officio 1.00 X 0 0 0 Elisabeth Hugh Trustee Ex-Officio (as of 10/1/15) 1.00 X 0 0 0 Claire Frattare Trustee Ex-Officio (thru 10/1/15) 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 James E Menger Asst Treasurer/CFO 50.00 X 255599 0 31463 Rosemary Klena Asst Sec./Admin. Asst (thru 7/29/15) 45.00 X 46482 0 11570 Gary Hanson Executive Director (thru 12/31/15) 60.00 X 481198 0 32146 Andre Gremillet Executive Director (as of 1/4/16) 60.00 X 0 0 0 William Warren Preucil Musician 40.00 X 584733 0 36777 Joshua S Smith Musician 40.00 X 247317 0 18421 Michael Sachs Musician 40.00 X 257958 0 32934 Donald Miller Musician 40.00 X 251923 0 29430 Robert Vernon Musician 40.00 X 256793 0 40855 2382003 0 233596 114 0 1 0 Franz Welser-Most 11001 Euclid Avenue Cleveland OH 44106 Music Directing 1406143 Independence Excavating 5720 E Schaaf Road Independence OH 44131 Site development 868266 Consolidated Solutions Inc 1614 East 40th Street Cleveland OH 44103 Direct mail advertising 801781 WVIZ Ideastream 1375 Euclid Avenue Cleveland OH 44115 Advertising & production 624771 Opus 3 Artists 470 Park Avenue South New York NY 10016 Artist performances 561000 25 887708 3051157 23057321 2305576 26996186 Concert Revenue 711130 16654749 16654749 Hall Income 711130 691142 655715 35427 Broadcasting/Recording 711130 129735 129735 17475626 8115622 8115622 68988973 72587475 -3598502 -3598502 -3598502 913245 887708 913245 0 193505 102767 90738 90738 Glidden House Partners, Ltd 721000 6898 6898 6898 49086568 17440199 6898 4643285 858458 858458 25691243 22712211 1706012 1273020 2797393 2585482 194915 16996 2656987 2108792 416312 131883 1649069 1418154 148523 82392 618134 437992 67112 113030 91949 91949 89003 89003 105000 105000 246519 246519 747234 747234 4441866 4441866 1865578 1865578 707651 343532 181116 183003 330190 173614 156576 158516 158516 1311736 1286544 6876 18316 3943192 3903036 16430 23726 151095 74146 34427 42522 270408 270408 2002892 1602314 200289 200289 61640 61640 Direct Concert Expenses 2441594 2441594 Other Admin. Expenses 1056853 543500 208559 304794 Media Expenses 18381 18381 54312581 46115252 5560839 2636490 30793 228542 12699045 6320206 37471609 37016742 1023811 752791 48669 9744 518396 620813 282228 283325 4196728 4102088 78375243 37109408 41521297 41265835 135226255 124709799 37504953 42771884 270523784 258081769 35508750 44993122 6633124 6050073 28150000 28150000 70291874 79193195 X 24882761 4626478 34735365 30070971 140613784 144191125 200231910 178888574 270523784 258081769 X -5226013 -6403378 -9713945 X 0 1 X 1 0 X 28447837 37569213 32485702 38170766 26996186 163669704 28447837 37569213 32485702 38170766 26996186 163669704 1411469 162258235 2415573 2463600 2410576 9192022 8115622 24597393 306 4511 6611 4344 6898 22670 188289767 87434750 0.86170 0.87370 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 0 0 1 100 0 0 1 400 0 1 105000 105500 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. 184733000 5494000 -2569000 8101000 179557000 178358000 9152000 4953000 7730000 184733000 156907000 6777000 21984000 7310000 178358000 140545000 6322000 17227000 7187000 156907000 145322000 4379000 170000 9326000 140545000 0.19000 0.77000 0.04000 1 0 7860680 7860680 62105108 32713811 29391297 8409455 4395597 4013858 41265835 ABSOLUTE RETURN EQUITY FUND 19073081 F HEDGED EQUITY FUND 19430535 F CHARITABLE PERPETUAL TRUSTS 4268268 F 42771884 X 43741732 -6403378 49428 1016012 -5337938 49079670 6898 6898 49086568 65085068 49428 10723059 10772487 54312581 0 54312581 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, 2016 and 2015. With few exceptions, the Association is no longer subject to examination by the Internal Revenue Service for years ending before 2013. Part XI, Line 2d - Other Adjustments: Cost of goods sold netted against revenue 102,767. Fundraising expenses netted against revenue 913,245. Part XI, Line 4b - Other Adjustments: Partnership Income 6,898. Part XII, Line 2d - Other Adjustments: Cost of goods sold netted against revenue 102,767. Fundraising expenses netted against revenue 913,245. Pension Plan Liability Adjustment 9,707,047. Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium 0 0 Fundraising 78836 Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium 0 0 Program Services Foreign Tour 2259164 Europe (Including Iceland & Greenland) - Albania, Andorra, Austria, Belgium 0 0 Program Services Project with media partner Central America and the Caribbean 0 0 Investments 31175383 0 0 0 0 0 0 33513383 0 33513383 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 711630 245019 466611 711630 245019 466611 FL OH Sev Hall Gala 1200458 650645 549813 48698 239819 133244 128052 Miami Gala 600495 237063 363432 29916 91319 95000 147197 1800953 887708 913245 78614 331138 228244 275249 913245 0 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 ($245,019) based upon the agreed upon revenue rate and reimbursement for campaign materials ($1,500). Total Fundraising Expenses For the year ending June 30, 2016, the Musical Arts Association incurred total fundraising expenses of $2,636,490 (reported on Form 990, Part IX, line 25, column (D)), which represented 9.7% of the total contributions and grants revenue of $26,996,186 (reported on Form 990, Part VIII, line 1h). X X 1 1 X X X 0 1 0 0 0 0 0 1 0 James E Menger Asst Treasurer/CFO 196190 0 14500 0 44909 0 10747 0 20716 0 287062 0 0 0 Gary Hanson Executive Director (thru 12/31/15) 475263 0 0 0 5935 0 14329 0 17817 0 513344 0 0 0 William Warren Preucil Musician 584733 0 0 0 0 0 19709 0 17068 0 621510 0 0 0 Joshua S Smith Musician 247317 0 0 0 0 0 12227 0 6194 0 265738 0 0 0 Michael Sachs Musician 257958 0 0 0 0 0 15866 0 17068 0 290892 0 0 0 Donald Miller Musician 251923 0 0 0 0 0 23236 0 6194 0 281353 0 0 0 Robert Vernon Musician 256793 0 0 0 0 0 22802 0 18053 0 297648 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 occassionally 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. Part I, Line 4b Gary Hanson, Executive Director, participated in a supplemental non-qualified retirement plan. The Musical Arts Association did not make a contribution to Mr. Hanson's plan during 2015. Part I, Line 7 The bonus paid to James E. Menger, Assistant Treasurer/CFO, was discretionary. 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 5369 0 1 1 JAMES E MENGER CFO See Pt V - Retention for multi-year period X 61250 4375 0 1 1 9744 X 153 2305576 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 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 11 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 2016. 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 2016. 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 Revenue -6,898. Pension Plan Liability Adjustment -9,707,047.