2014-05-14T13:06:38-05:00 2013-06-30 231144520 TAIT WELLER & BAKER LLP 1818 MARKET STREET SUITE 2400 PHILADELPHIA PA 19103 990 2012-07-01 231352256 PENNSYLVANIA ACADEMY OF THE FINE ARTS PENN 2159727600 128 NORTH BROAD STREET PHILADELPHIA PA 19102 JOHN J BERG 2159727600 2014-05-14 1 STACY CULLEN P00974308 2159798800 2014-05-12 2012 2015-11-30 17:44:51Z DAVID R BRIGHAM 128 NORTH BROAD STREET PHILADELPHIA PA 19102 20260676 0 X WWW.PAFA.ORG X 1805 PA THE ACADEMY OPERATES A POST-SECONDARY EDUCATIONAL PROGRAM IN FINE ARTS AS WELL AS A MUSEUM COLLECTION OF AMERICAN ART. IN ADDITION, THE ACADEMY SPONSORS FINE ARTS CLASSES FOR ALL AGES AND FREE ART PROGRAMS. 41 41 352 57 133724 -53848 4696375 3595532 12448744 11572279 786701 1229309 378711 225257 18310531 16622377 3229744 3200841 0 0 7203572 6986498 0 0 861995 9197872 7988400 19631188 18175739 -1320657 -1553362 75919521 75067943 24316596 23537135 51602925 51530808 THE PENNSYLVANIA ACADEMY OF THE FINE ARTS (PAFA) IS A NATIONAL LEADER IN FINE ARTS EDUCATION THAT BRINGS TOGETHER ARTISTS AND THE PUBLIC THROUGH EXCEPTIONAL TEACHING PROGRAMS, A WORLD-CLASS COLLECTION OF AMERICAN ART, MAJOR EXHIBITIONS AND WIDELY ACCESSIBLE PUBLIC PROGRAMS. 0 0 11589090 3200841 9842581 THE ACADEMY'S POST-SECONDARY FINE ARTS PROGRAM OFFERS PROGRAMS IN PAINTING, PRINT-MAKING, SCULPTING AND DRAWING. THE SCHOOL GRANTS A FOUR YEAR CERTIFICATE, A BACHELOR OF FINE ARTS DEGREE, AND A MASTER OF FINE ARTS DEGREE. 3037965 1165209 THE ACADEMY OPERATES A GALLERY THAT DISPLAYS GREAT WORKS OF AMERICAN ART. IT IS THE OLDEST SUCH GALLERY IN THE U.S. AND ITS PRINCIPAL BUILDING IS A HISTORICAL STRUCTURE. THE SCHOOL ALSO HOSTS SEVERAL SPECIAL EXHIBITIONS EACH YEAR. 1124641 778602 THE ACADEMY'S LIFELONG EDUCATION AND COMMUNITY PROGRAMS DIVISION SPONSORS FINE ARTS CLASSES FOR ALL AGES, ADULTS, SPECIAL PRE-SCHOOL, ELEMENTARY, MIDDLE SCHOOL AND HIGH SCHOOL CLASSES AND PROGRAMS, SUMMER CAMPS, FAMILY AND FREE ART PROGRAMS. 15751696 1 1 0 0 0 0 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 1 151 0 1 352 1 1 1 0 0 0 0 1 1 0 0 0 0 X 41 41 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X JOHN J BERG 2159722007 128 N BROAD STREET PHILADELPHIA PA 19102 KEVIN F DONOHOE 5.00 X X 0 0 0 THOMAS L BENNETT CFA 5.00 X X 0 0 0 HERBERT S RIBAND JR ESQ 5.00 X X 0 0 0 THOMAS N PAPPAS 5.00 X X 0 0 0 JAMES C BIDDLE 5.00 X X 0 0 0 ROGER H BALLOU 5.00 X 0 0 0 ANNE E MCCOLLUM 5.00 X X 0 0 0 SALLY J BELLET ESQ 5.00 X X 0 0 0 MAX N BERRY ESQ 5.00 X 0 0 0 KARL E BUPP 5.00 X 0 0 0 DONALD R CALDWELL 5.00 X 0 0 0 KENNETH CATANELLA 5.00 X 0 0 0 CHARLES E CHASE 5.00 X 0 0 0 LYNN NOWICKI CLARKE 5.00 X 0 0 0 JONATHAN L COHEN 5.00 X 0 0 0 MONICA DUVALL DILELLA MD 5.00 X 0 0 0 PAULETTE EBERHART 5.00 X 0 0 0 JOHN A FRY 5.00 X 0 0 0 EDWARD T HARVEY 5.00 X 0 0 0 JOEL M KOPPELMAN 5.00 X 0 0 0 MARGUERITE LENFEST 5.00 X 0 0 0 FRANCIS J LETO 5.00 X 0 0 0 WINSTON I LOWE ESQ 5.00 X 0 0 0 FRANCES M MAGUIRE 5.00 X 0 0 0 FRANK MARTUCCI 5.00 X 0 0 0 FRANCIS P NEWELL ESQ 5.00 X 0 0 0 JAMES E O'NEILL ESQ 5.00 X 0 0 0 STEVE K RITTER 5.00 X 0 0 0 GRETCHEN E ROEDE 5.00 X 0 0 0 THEODORE O ROGERS JR ESQ 5.00 X 0 0 0 LINDA SALIGMAN 5.00 X 0 0 0 STEVEN L SANDERS 5.00 X 0 0 0 WILLIAM H SCHORLING ESQ 5.00 X 0 0 0 HENRY B DUPONT SMITH 5.00 X 0 0 0 MARTHA MCGEARY SNIDER 5.00 X 0 0 0 JULIE D SPAHR 5.00 X 0 0 0 BARBARA A SYLK 5.00 X 0 0 0 ROBERT M TURNER 5.00 X 0 0 0 RICHARD W VAGUE 5.00 X 0 0 0 JAMES ALEXANDRE 5.00 X 0 0 0 SARAH LOMAX-REESE 5.00 X 0 0 0 DAVID R BRIGHAM 40.00 X 336505 0 23534 JOHN J BERG 40.00 X 168931 0 11731 HARRY L PHILBRICK 40.00 X 201444 0 8791 JEFFREY CARR 40.00 X 147522 0 14750 MELISSA D KAISER 40.00 X 143664 0 10753 EDWARD POLETTI 40.00 X 105419 0 9217 1103485 0 78776 6 0 1 0 ALLIED BARTON SECURITY 161 WASHINGTON ST STE 600 CONSHOHOCKEN PA 19428 SECURITY SERVICES 419252 APOLLO SECURITY 2150 BOSTON-PROVIDENCE HWY WALPOLE MA 02081 SECURITY SERVICES 378089 CLEAN TECH SERVICES 114 CHESTNUT STREET 5TH FLR PHILADELPHIA PA 19106 CLEANING/HOUSEKEEPING SERVICES 264752 3 253889 93796 3247847 279909 3595532 TUITION AND FEES 900099 9829735 9829735 CONTINUING EDUCATION 900099 778602 778602 RENTALS FOR EXEMPT ACT. 900099 411841 411841 MUSEUM ADMISS/COLLECT 900099 336627 202903 133724 WOMENS BOARD REVENUE 900099 215474 215474 11572279 892315 892315 3596189 3259195 336994 336994 336994 269910 253889 258766 11144 11144 321605 120338 201267 201267 MISCELLANEOUS 900099 12846 12846 12846 16622377 11652668 133724 1240453 3200841 3200841 561671 561671 5410777 4515349 413218 482210 117541 85680 20558 11303 469383 342154 82094 45135 427126 311350 74704 41072 31114 9364 21750 33500 33500 61972 61972 106879 47751 48661 10467 406808 387917 15000 3891 875774 764813 51495 59466 41582 41582 866833 866833 138922 84498 3946 50478 15561 15226 120 215 692575 692575 1675228 1675228 302445 302445 OUTSIDE AND CONTRACT LA 1662488 1494270 165286 2932 SPECIAL PROJECTS AND EV 245305 89516 36048 119741 FACILITY RENTAL EXPENSE 172565 172565 RECEPTIONS AND ENTERTAI 151656 96982 24596 30078 507193 492785 9401 5007 18175739 15751696 1562048 861995 3522705 3354733 890748 608358 468425 191214 654143 651867 296970 252763 394558 272781 62510644 16484039 47385932 46026605 12952015 14009868 8590981 8988997 763044 710757 75919521 75067943 1472737 902207 1300455 1247154 19773000 19275000 975000 1700000 253843 85127 541561 327647 24316596 23537135 X 27163388 26729548 526000 388908 23913537 24412352 51602925 51530808 75919521 75067943 X -1553362 1040881 440364 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X X X 0 21930512 100799 2201301 799909 23432703 23689144 3374 -605016 1156990 21930512 20379549 2858 4174513 867776 23689144 19490389 1320 1921841 1034001 20379549 26154434 -5558606 1145409 19490389 1.00000 0 0 2500000 2500000 57056216 14063272 42992944 2774085 2420767 353318 180343 180343 46026605 BENEFICIAL INTERESTS IN PERPETUAL TRUSTS 8988997 F 8988997 SWAP MARKET VALUATION 327647 327647 X 14659211 1040881 258766 1299647 13359564 61972 3200841 3262813 16622377 15171692 258766 258766 14912926 61972 3200841 3262813 18175739 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE ACADEMY HAS REVIEWED ITS TAX POSITIONS AND HAS CONCLUDED THAT NO LIABILITY FOR UNRECOGNIZED TAX BENEFITS SHOULD BE RECORDED RELATED TO UNCERTAIN TAX POSITIONS TAKEN ON FEDERAL AND STATE TAX RETURNS FOR THE OPEN TAX YEARS (2010-2012) OR IS EXPECTED TO BE TAKEN IN THE CURRENT YEAR. PART XI, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES 258,766. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFICATION OF SCHOLARSHIPS 3,200,841. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES 258,766. PART XII, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFICATION OF SCHOLARSHIPS 3,200,841. PART III - LINE 1A - WORKS OF ART - FOOTNOTE FROM FINANCIAL STATEMENT THE ACADEMY MAINTAINS A COLLECTION OF RARE AMERICAN ART THAT IS HELD FOR PUBLIC EXHIBITION. THE COLLECTION IS KEPT UNDER CURATORIAL CARE AND IS SUBJECT TO THE ACADEMY'S POLICY THAT REQUIRES THE PROCEEDS FROM THE SALES OF ACCESSIONED COLLECTION ITEMS TO BE USED ONLY TO ACQUIRE OTHER ITEMS FOR COLLECTION. THE ACADEMY DOES NOT RECOGNIZE THE CONTRIBUTIONS OF DONATED COLLECTION ITEMS, AS ITS COLLECTIONS ARE NOT CAPITALIZED. DURING THE YEAR ENDED JUNE 30, 2013 AND 2012, THE ACADEMY HAD DONATED ACCESSIONS WITH APPROXIMATE APPRAISED VALUES TOTALING $1,016,895 AND $1,736,200, RESPECTIVELY. COLLECTION ITEMS PURCHASED BUT NOT CAPITALIZED TOTALED $180,266 AND $2,201,563 DURING THE YEARS ENDED JUNE 30, 2013 AND 2012, RESPECTIVELY. IN ADDITION, THE ACADEMY RECEIVED $8,700 FOR ART ACQUISITION DURING THE YEAR ENDED JUNE 30, 2013. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 THE ACADEMY INCLUDES STATEMENTS IN ITS ADVERTISING THAT THEIR POLICY IS TO NOT DISCRIMINATE AGAINST ANY MINORITY DUE TO RACE,CREED, OR COLOR. EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 THE PENNSYLVANIA ACADEMY OF FINE ARTS RECEIVES FROM TIME TO TIME FINANCIAL ASSISTANCE FROM GOVERNMENT PROGRAMS. WINE AUCTION 523799 253889 269910 3196 94624 86054 15432 59460 523799 253889 269910 3196 94624 86054 15432 59460 258766 11144 1 SCHOLARSHIPS 298 3200841 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE AMOUNT OF FUNDS DISTRIBUTED IS COMPARED WITH INDIVIDUAL STUDENT ACCOUNTS TO INSURE A BALANCE OF FUNDS. STUDENT FINANCIAL NEED IS EVALUATED TO INSURE STUDENTS DO NOT RECEIVE AN OVER AWARD ACCORDING TO THE GUIDELINES OF THE FEDERAL GOVERNMENT. STUDENTS RECEIVING GRANT FUNDS ARE MONITORED FOR ACADEMIC PROGRESS CONCERNING GRADE POINT AVERAGE AND COMPLETED NUMBER OF COURSES ONCE A YEAR. X 1 1 X X X X X 0 0 0 0 0 0 0 0 0 DAVID R BRIGHAM 311145 0 25000 0 360 0 12446 0 11088 0 360039 0 0 0 JOHN J BERG 168003 0 0 0 928 0 6720 0 5011 0 180662 0 0 0 HARRY L PHILBRICK 201030 0 0 0 414 0 8041 0 750 0 210235 0 0 0 JEFFREY CARR 146760 0 0 0 762 0 5870 0 8880 0 162272 0 0 0 MELISSA D KAISER 143552 0 0 0 112 0 5742 0 5011 0 154417 0 0 0 PART I, LINE 1A SOCIAL CLUB DUES ARE PAID FOR THE PRESIDENT. A PHILADELPHIA AUTHORITY FOR INDUSTRIAL DEVELOPMENT 232237287 NONEAVAIL 2010-03-05 19773000 REFINANCE DEBT 0 0 0 A 2010 0 0 1 1 A 0 0 0 0 0 0 0 A 0 0 0 0 1 0 PNC BANK 5.000000000000 0 0 0 0 0 DAVID BRIGHAM SUITABLE HOUSING X 200000 140000 0 1 1 140000 X 107 0 X 4 88159 AVERAGE HIGH/LOW X WINE AUCTION ITEMS 142 191750 AUCTION SALE VALUE 0 1 0 NON REPORTING OF REVENUE: PART I, LINE 33: COLLECTION OR ARTWORK IS NOT CAPITALIZED. PLEASE REFER TO FOOTNOTE FROM FINANCIAL STATEMENT FOUND IN SCHEDULE D, PART XIV WHICH CORRESPONDS TO SCHEDULE D, PART III - LINE 1A. FORM 990, PART VI, SECTION A, LINE 2 THE ACADEMY USES THE SERVICES OF A TRUST COMPANY WHERE A BOARD MEMBER OF THE ACADEMY IS AN EMPLOYEE, HENRY B. DUP. SMITH, AND THREE BOARD MEMBERS ARE PAID DIRECTORS, DONALD R. CALDWELL, THOMAS N. PAPPAS AND WINSTON I. LOWE, ESQUIRE. ASSETS UNDER MANAGEMENT WITH THIS INVESTMENT COMPANY TOTALED APPROXIMATELY $16,948,000 AND $15,757,000 AS OF JUNE 30, 2013 AND 2012, RESPECTIVELY. FOR THE YEAR ENDED JUNE 30, 2013, THE ACADEMY WAS CHARGED A 0.4% FEE FOR THIS SERVICE. FOR THE YEAR ENDED JUNE 30, 2013, THIS FEE WAS APPROXIMATELY $55,000. IN ADDITION, THIS TRUST COMPANY PROVIDES A LINE OF CREDIT FOR THE ACADEMY; INTEREST EXPENSE PAID DURING THE YEAR FOR THIS LINE OF CREDIT WAS APPROXIMATELY $52,000. ALTHOUGH THE TRUST COMPANY IN QUESTION CHARGES THE ACADEMY FOR ITS SERVICES, IT ALSO MADE SUBSTANTIAL GIFTS TO THE ACADEMY. THE NET CHARGES AFTER SUCH GIFTS RESULTED IN THIS FEE BEING QUITE SMALL. THE QUESTION OF THE TRUST COMPANY'S CHARGES TO THE ACADEMY WAS SUBMITTED TO THE FINANCE COMMITTEE, AND THEN TO THE FULL BOARD OF TRUSTEES. AFTER CONSIDERATION OF THE TRUST COMPANY'S CHARGES, THE TRUST COMPANY'S GIFTS TO THE ACADEMY, AND THE PERFORMANCE OF THE TRUST COMPANY, THE BOARD DECIDED THAT THE RELATIONSHIP WITH THE TRUST COMPANY WAS QUITE BENEFICIAL TO THE ACADEMY. THE ACADEMY WAIVED ANY TECHNICAL CONFLICT WITH THE TRUST COMPANY. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY TAIT, WELLER & BAKER LLP. THE INITIAL REVIEW IS PERFORMED BY THE EXECUTIVE VP OF FINANCE AND ADMINISTRATION AND THE DIRECTOR OF FINANCE. THE FORM 990 IS THEN SENT TO THE BOARD OF TRUSTEES FOR REVIEW. BEFORE FILING FORM 990, THE BOARD OF TRUSTEES IS REQUESTED TO REVIEW THE RETURN AND SUBMIT ANY CORRECTIONS, COMMENTS OR QUESTIONS. FORM 990, PART VI, SECTION B, LINE 12C DURING THE FISCAL YEAR, EACH MEMBER OF THE BOARD OF TRUSTEES AND EACH SENIOR KEY EMPLOYEE COMPLETES A FORM SETTING FORTH, IF ANY, ANY POTENTIAL CONFLICT OF INTEREST HE/SHE HAS WITH THE ACADEMY. SUCH COMPLETED FORMS ARE RETAINED BY THE VICE-CHAIR/SECRETARY OF THE BOARD. IF ANY CONFLICT OF INTEREST IS IDENTIFIED, IT IS REFERRED TO THE APPROPRIATE COMMITTEE OF THE BOARD, WHICH EXAMINES IT AND REFERS IT TO THE ENTIRE BOARD FOR ACTION. THE BOARD DECIDES WHETHER SUCH CONFLICT IS TO BE WAIVED, ON THE GROUNDS THAT THE TRANSACTION OR RELATIONSHIP IN QUESTION IS FAVORABLE TO THE ACADEMY NOTWITHSTANDING THE CONFLICT, OR WHETHER SUCH RELATIONSHIP OR TRANSACTION IS TO BE NEGATED. FORM 990, PART VI, SECTION B, LINE 15 THE SEVEN OFFICERS OF THE BOARD OF TRUSTEES (PAFA'S GOVERNING BODY) CONSISTING OF: THE CHAIR OF THE BOARD; THE VICE-CHAIR AND TREASURER; THE VICE-CHAIR AND SECRETARY; THE VICE-CHAIR AND ASSISTANT SECRETARY; THE VICE-CHAIR; ASSISTANT TREASURER AND ASSISTANT SECRETARY COLLECTIVELY CONSTITUTE THE COMPENSATION COMMITTEE WHICH DELIBERATES AND DECIDES ON THE COMPENSATION OF THE PRESIDENT/CEO OF THE ORGANIZATION. THE COMMITTEE STUDIES COMPARABILITY DATA OBTAINED FROM SEVERAL SOURCES AND IT MAINTAINS CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION IN THE FORM OF NOTES AND MINUTES MADE BY THE BOARD CHAIR WHICH ARE MAINTAINED IN THE PRIVATE OFFICE OF THE BOARD CHAIR. IN THE PRESIDENT/CEO'S FIRST YEAR IN OFFICE, THE PRESIDENT/CEO AND PAFA ENTER INTO A WRITTEN EMPLOYMENT AGREEMENT WHICH EMBODIES THE DECISIONS ON COMPENSATION. IN EACH SUCCEEDING YEAR OF THE PRESIDENT/CEO'S TENURE, THE COMPENSATION COMMITTEE REVIEWS THE COMPENSATION AND MAKES ANY NECESSARY ADJUSTMENTS. WITH RESPECT TO COMPENSATION OF OTHER OFFICERS OR KEY EMPLOYEES OF PAFA, RECOMMENDATIONS ARE FIRST MADE BY THE PRESIDENT/CEO (AFTER HIS INTERNAL PROCESS OF CONSULTATION WITH SENIOR STAFF, INCLUDING THE EXECUTIVE VICE-PRESIDENT OF FINANCE AND ADMINISTRATION) WHICH ARE EMBODIED IN THE ANNUAL BUDGET, AND REVIEWED BY THE COMPENSATION COMMITTEE OF THE BOARD AND BY THE BOARD'S FINANCE COMMITTEE (WHICH IS CHAIRED BY THE VICE-CHAIR AND TREASURER OF THE BOARD). THE ANNUAL BUDGET, WHICH EMBODIES THE COMPENSATION OF THE PRESIDENT/CEO (AS INITIALLY PROPOSED BY THE BOARD'S COMPENSATION COMMITTEE) AND THE COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES (AS INITIALLY PROPOSED BY THE PRESIDENT/CEO) IS ULTIMATELY PRESENTED TO THE ENTIRE BOARD OF TRUSTEES BY THE BOARD'S FINANCE COMMITTEE FOR CONSIDERATION, POSSIBLE AMENDMENT, AND FINALLY ADOPTION. FORM 990, PART VI, SECTION C, LINE 19 THE DOCUMENTS ARE MAINTAINED IN THE FINANCE OFFICE AND ARE AVAILABLE TO THE PUBLIC UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: CHANGE IN BENEFICIAL INTEREST IN PERPETUAL TRUSTS 398,016. COLLECTION ITEMS PURCHASED BUT NOT CAPITALIZED -180,266. CHANGE IN MARKET VALUE OF SWAP 213,914. FUNDS RECEIVED FOR ART ACQUISITION 8,700. FORM 990, PART XII, LINE 2C THE AUDIT COMMITTEE OF THE BOARD OF TRUSTEES APPROVES THE ENGAGEMENT LETTER OF THE INDEPENDENT ACCOUNTANT, MEETS WITH AUDITORS ON A PERIODIC BASIS THROUGHOUT THE YEAR, AND RECEIVES AND REVIEWS THE AUDIT REPORT, WHICH IT PASSES ON FOR REVIEW TO THE FINANCE COMMITTEE OF THE BOARD AND TO THE ENTIRE BOARD WITH ITS COMMENTS.