2014-02-21T10:43:12-06:00 2013-09-30 410746749 CLIFTONLARSONALLEN LLP 20 E THOMAS RD STE 2300 PHOENIX AZ 85012 990 2012-10-01 860107517 THE HEARD MUSEUM HEAR 6022510222 2301 N CENTRAL AVE PHOENIX AZ 85004 JAMES PEPPER HENRY 6022510222 2014-02-12 1 PHIL MCCOLLUM P00129716 6022662248 2012 2016-02-25 16:41:14Z JAMES PEPPER HENRY 2301 N CENTRAL AVE PHOENIX AZ 85004 11965731 0 X WWW.HEARD.ORG X 1929 AZ TO EDUCATE THE GENERAL PUBLIC ABOUT ARTS AND CULTURE OF AMERICAN INDIANS, WITH A FOCUS ON TRIBES OF THE SOUTHWEST USA. 32 32 157 425 0 0 3025296 3142508 1974108 1995899 54592 169202 1916391 1812268 6970387 7119877 0 0 0 0 4131471 3751589 0 0 726770 5710323 5216089 9841794 8967678 -2871407 -1847801 28670917 25958741 2947578 1778109 25723339 24180632 X TO EDUCATE THE GENERAL PUBLIC ABOUT ARTS AND CULTURE OF AMERICAN INDIANS, WITH A FOCUS ON TRIBES OF THE SOUTHWEST USA. 0 0 6812544 3691451 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 TRIBES OF THE SOUTHWEST. THE HEARD ACCOMPLISHES THIS TASK 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 OTHER INSTITUTIONS AND INDIVIDUALS; HOLDING SPECIAL EVENTS THAT HIGHLIGHT ONE OR MORE ASPECTS OF NATIVE ART, CULTURES AND/OR HISTORY; HOSTING MORE THAN 12,000 SCHOOLCHILDREN TOURING THE MUSEUM EACH YEAR; SUPPORTING THE CAREERS OF AMERICAN INDIAN ARTISTS IN THE HEARD MUSEUM SHOPS, THE BERLIN GALLERY OF CONTEMPORARY NATIVE ART AND BOOKS & MORE, A BOUTIQUE BOOKSTORE AND GIFT SHOP; OFFERING INDIGENOUS FOODS IN THE MENU OF THE MUSEUM'S CAFES AND CASUAL DINING VENUE, THE COFFEE CANTINA; AND BY OFFERING PROGRAMMING SUCH AS LECTURES, BOOK SIGNINGS AND PRESENTATIONS BY BOTH AMERICAN INDIAN AND NON-INDIAN EXPERTS IN ART, HISTORY AND CULTURES. IN ADDITION TO ITS FLAGSHIP LOCATION, THE HEARD MUSEUM ALSO OPERATES A COMMUNITY MUSEUM IN NORTH SCOTTSDALE. APROXIMATELY 101,000 PEOPLE VISITED THE MUSEUM DURING THE YEAR. THE $3,691,451 REVENUE REPRESENTS ONLY EARNED INCOME AND EXCLUDES CONTRIBUTIONS, GIFTS, FUNDRAISING PROCEEDS AND INVESTMENT INCOME. FOR THE YEAR, TOTAL REVENUES WERE $7.1 MILLION; TOTAL EXPENSES WERE $8.9 MILLION. 6812544 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 1 1 1 1 0 0 0 1 0 0 0 1 127 0 1 157 1 0 0 0 0 0 1 1 0 0 0 0 X 32 32 1 0 1 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AZ X X CARLOS ROJAS 6022510222 2301 N CENTRAL AVE PHOENIX AZ 85004 SHIRLEY AVERY 1.00 X 0 0 0 EDDIE BASHA 1.00 X 0 0 0 ARLENE K BEN-HORIN 1.00 X 0 0 0 HOWARD R BERLIN 1.00 X 0 0 0 ROBERT B BULLA 1.00 X 0 0 0 STEVEN R CHANEN 1.00 X 0 0 0 ROBERT A COWIE 1.00 X 0 0 0 CHRISTOPHER CLARK DESCHENE 1.00 X 0 0 0 RYAN P DESMOND 1.00 X 0 0 0 ROBERT S DIAMOND 1.00 X 0 0 0 PETER S FINE 1.00 X 0 0 0 PATRICIA K HIBBELER 1.00 X 0 0 0 CARRIE L HULBURD 1.00 X 0 0 0 JAMES R HUNTWORK 1.00 X 0 0 0 JEFFREY H KAHN 1.00 X 0 0 0 WILLIAM LAVIDGE 1.00 X 0 0 0 STEPHEN R LEWIS 1.00 X 0 0 0 VALERIE MANNING 1.00 X 0 0 0 JOHN MELAMED 1.00 X 0 0 0 ALICE AJ MONONGYE 1.00 X 0 0 0 ELIZABETH MURFEE DECONCINI 1.00 X 0 0 0 SUSAN H NAVRAN 1.00 X 0 0 0 SCOTT H O'CONNOR 1.00 X 0 0 0 ARTHUR L PELBERG MD 1.00 X 0 0 0 WICK PILCHER 1.00 X 0 0 0 MARK SCHIAVONI 1.00 X 0 0 0 JOETTE B SCHMIDT 1.00 X 0 0 0 JOHN B STITELER 1.00 X 0 0 0 IVAN MAKIL 1.00 X 0 0 0 WILLIAM RIDENOUR 1.00 X 0 0 0 MARK B BONSALL 10.00 X X 0 0 0 LELAND W PETERSON 40.00 X X 0 0 0 DR GEORGE BLUE SPRUCE JR 4.00 X X 0 0 0 F WESLEY CLELLAND III 4.00 X X 0 0 0 ROD PASSMORE 4.00 X 0 0 0 RICHARD WEST 1.00 X 0 0 0 JAMES PEPPER HENRY 40.00 X 0 0 0 CARLOS L ROJAS 40.00 X 120000 0 3612 WILLIAM BRUCE MCGEE 40.00 X 104100 0 3612 LAURA BURGIS 40.00 X 110460 0 0 LETITIA CHAMBERS 0.00 X 212821 0 0 547381 0 7224 4 1 1 0 0 921927 74096 159168 1987317 222706 3142508 ADMISSIONS 611710 990481 990481 FAIR INCOME 900099 513115 513115 PRIVATE USE FEES 721000 467352 467352 EDUCATIONAL REVENUE 611710 24951 24951 1995899 80271 80271 2535 2535 1434240 1345309 88931 88931 88931 258064 74096 188992 69072 69072 10617 0 10617 10617 5007105 3311553 1695552 1695552 MISCELLANEOUS 900099 34492 34492 34492 7119877 3691451 0 285918 191706 191706 3028964 2432751 430006 166207 291363 216846 60444 14073 239556 180857 46234 12465 11752 11752 39466 39466 41442 41442 250661 126277 74321 50063 182887 182762 125 328632 270913 52322 5397 93830 29722 38103 26005 749549 749549 18926 12375 4471 2080 52205 36853 15352 31608 31608 2252471 1576729 337871 337871 84874 84874 OTHER PROGRAM EXPENSES 592165 589169 2996 EXHIBIT EXPENSES 357827 357827 FUNDRAISING EXPENSE 97521 97521 MEMBER SUPPORT 30273 18306 11967 8967678 6812544 1428364 726770 433483 412721 414708 21674 61790 248824 6713 10605 2064268 1957575 140890 173850 41504798 21275018 22007925 20229780 3454119 2808995 78021 85989 9000 8728 28670917 25958741 978080 697468 433198 407121 1100000 499800 109674 45738 326626 127982 2947578 1778109 X 20219760 19859577 2600816 1398686 2902763 2922369 25723339 24180632 28670917 25958741 X -1847801 99198 205896 X X 0 1 X 1 0 X 5194720 4156371 2761013 3025296 3142508 18279908 130000 130000 260000 5324720 4286371 2761013 3025296 3142508 18539908 1040160 17499748 87632 47733 141752 58862 82806 418785 208964 84861 343105 348236 303173 1288339 20247032 33873333 0.86430 0.88910 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS - 2008 AMOUNT: $ 13,052. 2009 AMOUNT: $ 16,061. 2010 AMOUNT: $ 16,407. 2011 AMOUNT: $ 43,367. 2012 AMOUNT: $ 34,492. GROSS FUNDRAISING REVENUE - 2008 AMOUNT: $ 195,912. 2009 AMOUNT: $ 68,800. 2010 AMOUNT: $ 326,698. 2011 AMOUNT: $ 304,869. 2012 AMOUNT: $ 268,681. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X X 1 4555550 46570 341661 4943781 4094164 10519 450867 4555550 4162062 129329 -197227 4094164 3093905 849761 318411 100015 4162062 3372853 245885 -168449 356384 3093905 0.37000 0.58000 0.05000 1 1 1 22512378 9580237 12932141 6540981 3286301 3254680 2786489 2420871 365618 9664950 5987609 3677341 20229780 DEPOSITS 94603 GIFT ANNUITY PAYABLE 33379 127982 X 10970926 99198 80609 3712684 3892491 7078435 41442 41442 7119877 12318398 80609 3311553 3392162 8926236 41442 41442 8967678 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 2013 AND 2012 WAS APPROXIMATELY $631,522 AND $1,265,000, RESPECTIVELY. PART III, LINE 4: THE CORPORATION MAINTAINS A MUSEUM OF ANTHROPOLOGY AND ART IN THE CITIES OF PHOENIX AND SCOTTSDALE 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. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE INTENDED USE OF THE ENDOWMENT FUNDS ARE TO PROVIDE FOR THE FUTURE FINANCIAL STRENGTH OF THE ORGANIZATION. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE INCOME TAX PORTION OF THE MUSEUM'S FINANCIAL STATEMENT FOOTNOTE CONTAINS A DESCRIPTION OF THE ORGANIZATION'S QUALIFICATION AS A TAX EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IT THEN CONTAINS THE FOLLOWING TEXT REGARDING UNCERTAIN TAX POSITIONS UNDER FIN 48 (ASC 740): 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 HAS NO UNCERTAIN TAX POSITIONS AS OF SEPTEMBER 30, 2013 AND 2012. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 3,311,553. CHANGE IN GIFT ANNUITIES 205,896. ELIMINATE SEPARATE TRUST INCOME 195,235. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 3,311,553. FORM 990, SCH D, PART XI & PART XII: THE 2013 $1.3 MILLION 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. 2013 DEFICIT (1,347,472) PLUS: DEPRECIATION 2,252,471 ADJUSTED 2013 RESULTS 904,999 THE MUSEUM BOARD AND STAFF IMPLEMENTED A 2014 BUDGET THAT CALLS FOR A CONTINUATION OF THE EXPENSE REDUCTIONS INITIATED IN FISCAL YEAR 2013. MOONDANCE 212565 46315 166250 65641 43043 25971 SONORAN SKIES 64220 15301 48919 2009 4604 24328 1 55375 12480 42895 8568 7877 6951 332160 74096 258064 76218 55524 57250 188992 69072 X X X 1 0 0 0 0 0 0 0 0 LETITIA CHAMBERS 125000 0 0 0 87821 0 0 0 0 0 212821 0 0 0 PART I, LINE 4A ON JULY 31, 2012 THE MUSEUM'S PRESIDENT LETITIA CHAMBERS RETIRED; IN ACCORDANCE WITH THE TERMS OF THE EMPLOYMENT AGREEMENT THE HEARD MUSEUM MADE RETIREMENT PAYMENTS OF $16.6K PER MONTH THROUGH JUNE 2013. BLUE CROSS BLUE SHIELD OF AZ TWO TRUSTEES HAVE RELATIONSHIP WITH BLUE CROSS BLUE SHIELD SEE DESCRIPTION 243543 ROBERT BULLA IS A TRUSTEE OF THE MUSEUM. HE ALSO SERVES ON THE BOARD OF DIRECTORS OF BLUE CROSS BLUE SHIELD OF AZ (BCBS). MR. BULLA RESIGNED FROM THE MUSEUM'S BOARD EFFECTIVE JULY 22, 2013. SUE NEVRAN IS A TRUSTEE OF THE MUSEUM. SHE ALSO SERVES AS THE EXECUTIVE VICE PRESIDENT, EXTERNAL OPERATIONS OF BCBS. 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 ARIZONA PUBLIC SERVICE TRUSTEE IS THE EXECUTIVE VP OF OPERATIONS AT ARIZONA PUBLIC SERVICE 373714 MARK SCHIAVONI IS A TRUSTEE OF THE MUSEUM. HE ALSO SERVES AS THE EXECUTIVE VICE PRESIDENT OPERATIONS OF ARIZONA PUBLIC SERVICE (APS). APS SUPPLIES THE MUSEUM WITH ALL OF ITS ELECTRIC POWER AT RATES ESTABLISHED BY STATE REGULATORS. 0 JOHN BULLA COO 124590 JOHN BULLA SERVES AS THE MUSEUM'S CHIEF OPERATING OFFICER (COO). JOHN IS THE SON OF ROBERT BULLA, TRUSTEE. MR. ROBERT BULLA RESIGNED FROM THE MUSEUM'S BOARD EFFECTIVE JULY 22, 2013. JOHN RECEIVES COMPENSATION FOR HIS DUTIES AS THE COO. HIS SALARY IS DETERMINED UNDER THE SAME PROCEDURES THAT APPLY TO ALL OF THE OTHER EMPLOYEES OF THE ORGANIZATION. 0 USI SERVICES LLC TRUSTEE IS A MANAGER AT USI SERVICES, LLC 91493 WICK PILCHER IS A TRUSTEE OF THE MUSEUM. HE ALSO MANAGES USI SERVICES, LLC, FORMERLY PILCHER INSURANCE BROKER, IN PHOENIX. USI SERVICES IS THE MUSEUM'S GENERAL AND PROFESSIONAL INSURANCES BROKER. ANNUALLY, ALL GENERAL AND PROFESSIONAL INSURANCES ARE COMPETITIVELY BID. 0 X 122 0 FAIR MARKET VALUE X FAIR MARKET VALUE X 3 40221 FAIR MARKET VALUE X 3 112034 FAIR MARKET VALUE X FUNDRAISER DONATIONS 40 75539 FAIR MARKET VALUE X OTHER 9 14892 FAIR MARKET VALUE 13 0 1 1 METHOD FOR DETERMINING NUMBER OF CONTRIBUTIONS: PART I, COLUMN (B): NUMBER OF CONTRIBUTORS THIRD PARTY USE: PART I, LINE 32B: A BROKER FOR LIQUIDATION OF SECURITIES. NON REPORTING OF REVENUE: PART I, LINE 33: DURING THE YEAR, THE ORGANIZATION RECEIVED WORKS OF ART, BOOKS, AND PUBLICATIONS DONATED TO ITS COLLECTION. 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 AS MORE FULLY EXPLAINED IN SCHEDULE D. THE FAIR MARKET VALUES OF CERTAIN COLLECTIONS IS DETERMINED BASED ON THIRD-PARTY EVIDENCE OF COMPARABLE ART SOLD THROUGH AUCTION HOUSES AND WERE VALUED AT APPROXIMATELY $631,522. FORM 990, PART VI, SECTION A, LINE 2 ROBERT BULLA, TRUSTEE AND SUE NEVRAN, TRUSTEE HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 4 IN APRIL 2013, THE BOARD OF TRUSTEES UNANIMOUSLY APPROVED CHANGES TO ITS BYLAWS. THE GENERAL EFFECTS OF THE REVISIONS WERE TO SIMPLIFY AND CLARIFY THE BYLAWS GENERALLY, INCLUDING THE ELIMINATION OF AMBIGUITIES AND INCONSISTENCIES. THE REVISIONS FOCUS THE BYLAWS ON PRINCIPLES AND MECHANISMS RELATING TO GOVERNANCE POLICY WHILE MINIMIZING BOARD INTERFERENCE WITH MANAGEMENT OF THE MUSEUM. ADDITIONALLY, THE REVISIONS ADDED THE PRESIDENT OF THE HEARD MUSEUM GUILD AS A BOARD MEMBER, EX OFFICIO, WITH FULL VOTING RIGHTS. THE REVISIONS WERE BASED PARTIALLY UPON THE MANUAL "NATIONAL STANDARDS AND BEST PRACTICES" PUBLISHED BY THE AMERICAN ALLIANCE OF MUSEUMS, THE LEADING INDUSTRY GROUP. 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 THE MEMBERS SHALL ELECT THE BOARD OF TRUSTEES TO OVERSEE THE BUSINESS OF THE CORPORATION. FORM 990, PART VI, SECTION A, LINE 7B MEMBERS ELECT THE OPERATING BOARD MEMBERS. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY AN OUTSIDE ACCOUNTING FIRM. THE RETURN WILL BE REVIEWED BY THE CFO AND AUDIT COMMITTEE PRIOR TO A FINAL REVIEW BY THE BOARD OF TRUSTEES. THE RETURN WILL BE FILED WITH THE IRS AFTER DISTRIBUTION TO THE BOARD. 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 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) UNDERSTAND 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 15 THE HR COMMITTEE OF THE BOARD OF TRUSTEES OR ITS DESIGNATE REVIEWS SALARY OF THE EXECUTIVE DIRECTOR ANNUALLY. THE COMMITTEE DISCUSSES THE COMPENSATION OF OTHER LOCAL NOT-FOR-PROFIT ORGANIZATIONS DURING THE REVIEW PROCESS. THE HR COMMITTEE IS MADE UP OF THE INDEPENDENT OFFICERS OF THE BOARD OF TRUSTEES. THE 2013 REVIEW WAS DESIGNATED TO AND COMPLETED BY THE EXECUTIVE SEARCH COMMITTEE. THE MUSEUM DIRECTOR/CEO COMPARES THE SALARIES OF TOP MANAGEMENT TO INDUSTRY COMPARABLE DATA FOR THE REGION. 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: CHANGE IN GIFT ANNUITY 205,896. FORM 990, PART XII, LINE 2C: THE AUDIT COMMITTEE OVERSEES THE FINANCIAL STATEMENT AUDIT. THERE HAVE NOT BEEN ANY CHANGES TO THE PROCESS FROM THE PREVIOUS YEAR. HEARD MUSEUM ENDOWMENT TRUST JP MORGAN CHASE BANK 270 PARK NEW YORK NY 10017 946095432 INVESTMENT AZ 4947(A)(1) N/A 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0