2013-05-14T15:52:13-05:00 2012-06-30 KPMG LLP 355 S Grand Ave Suite 2000 Los Angeles CA 90071 990 2011-07-01 952096402 Los Angeles Opera Company % FAITH RAIGUEL LOSA 2139727219 135 North Grand Avenue Los Angeles CA 90012 FAITH RAIGUEL 2013-05-13 true 2139724000 2011 2016-03-07 17:11:31Z FAITH RAIGUEL 135 n grand avenue los angeles CA 900123013 34247815 false X www.losangelesopera.com X 1983 CA THE LOS ANGELES OPERA COMPANY (LA OPERA) IS A NON-PROFIT, TAX-EXEMPT ENTITY ORGANIZED TO PROVIDE ALL PERSONS AN OPPORTUNITY TO COLLECTIVELY EXPERIENCE THE RICH EMOTIONAL AND CULTURAL EXPERIENCE OF OPERA. 90 79 847 273 0 0 29582773 22377871 11690095 11066497 300537 358653 -333344 -461613 41240061 33341408 0 0 0 0 20986286 21786362 150338 127364 2422018 16281879 13184687 37418503 35098413 3821558 -1757005 58154490 52921026 36007394 33441330 22147096 19479696 X WE ENVISION AN ENGAGED AND ENLIGHTENED COMMUNITY IN WHICH ALL MEMBERS HAVE THE OPPORTUNITY TO COLLECTIVELY ENJOY THE RICH AESTHETIC, EMOTIONAL, INTELLECTUAL AND CULTURAL EXPERIENCE OF OPERA. SEE SCHEDULE O. false false 26060512 0 10780865 Opera: From July 1, 2011 through June 30, 2012, THE COMPANY PRODUCED 37 PERFORMANCES OF SIX OPERAS FOR OVER 87,000 PEOPLE, including 34,000 attending preshow educational talks. 1004131 0 106612 EDUCATION AND COMMUNITY OUTREACH: LA Opera brought its educational and culturally relevant "In-School Opera" program to 24 public schools and 15,000 students; 2,800 students attended special dress rehearsals and career workshops. The "Opera for Educators" and "Opera 101" programs served over 6,000 students and 190 teachers by providing teachers with the hands-on instruction and tools needed to use opera to enhance educational programs. IN ALL, OVER 31,000 STUDENTS PARTICIPATED IN LA OPERA'S SCHOOL PROGRAMS. OVER 82,000 MEMBERS OF THE PUBLIC PARTICIPATED IN COMMUNITY PROGRAMS THROUGHOUT THE COUNTY. SEE SCHEDULE O. 749131 0 8284 Domingo-Thornton Young Artist Program : Created by Placido Domingo, the Young Artist Program seeks to support and develop the careers of promising singers and pianists. This residency program provides extensive training and performance experience through main-stage roles, cover roles, concerts and other productions. During the year, eight artists were given 31 main-stage roles and performed in 15 recitals throughout the community. 1006001 0 170736 28819775 true true false false false false false false false true true true false true false true true false false false false false false true true false false false false true false false false true false false false false true false false false false false false false false false true 127 0 true 847 true false false false false false true true false false false false X 90 79 true false false false false false false true true false false false true true true true true true true false CA X FAITH RAIGUEL 2139727219 135 N GRAND AVENUE LOS ANGELES CA 900123013 X Marc I Stern 10.0 X X Carol F Henry 10.0 X X BERNARD A GREENBERG 5.0 X X Warner W Henry 5.0 X X SEBASTIAN PAUL MUSCO 2.0 X X Milan Panic 2.0 X X MARILYN ZIERING 5.0 X X Christopher V Walker 5.0 X X Marvin S Shapiro 5.0 X X Alex K Bouzari 2.0 X Leslie A Dorman 5.0 X Mary Hayley 2.0 X Lauren B Leichtman 2.0 X Milton T Okun 2.0 X R Carlton Seaver 2.0 X Eugene P Stein 2.0 X Geraldine Alden PhD 2.0 X Marvin Antonowsky 2.0 X James R Asperger 2.0 X Haig S Bagerdjian 2.0 X Jill C Baldauf 5.0 X Moshe Barkat 2.0 X David N Barry 2.0 X Marvin J Barth III 2.0 X AMBASSADOR FRANK E BAXTER 2.0 X Nancy Baxter 2.0 X Dr Gerald Berke 2.0 X Paul Bloch 2.0 X LINDA T BRITTAN 2.0 X SIOBHAN MCBREEN BURKE 2.0 X JOYCE CHERNICK 2.0 X EDWARD E CLARK 2.0 X MARK H DALZELL 2.0 X Edgar Foster Daniels 1.0 X MARI L DANIHEL 2.0 X Kelly Day 2.0 X Laura Donnelley 2.0 X Geoff Emery 2.0 X Don Erik Franzen 5.0 X Gerri Lee Frye 2.0 X Alexander Furlotti 2.0 X Craig Garner 2.0 X Ruth R Gold 2.0 X Brindell Roberts Gottlieb 2.0 X Thomas Gottschalk 1.0 X DIANE GRAY 5.0 X Peter Gray 2.0 X HANY HADDAD 2.0 X CATHERINE H HELM 5.0 X Mrs John F Hotchkis 2.0 X TIM C JOHNSON 2.0 X RICHARD JONES 2.0 X Dr Harold L Karpman 2.0 X GREGORY KEEVER 2.0 X Lawrence A Kern 2.0 X Thomas F Kranz 2.0 X Robert Kuppenheimer 2.0 X Edward A Landry 2.0 X Scott Richard Lord 2.0 X Jennifer Trochez MacLean 2.0 X Claude Mann 2.0 X Donna G Mariash 2.0 X Carlos A Mollura 2.0 X Dr Steven Nagelberg 2.0 X Leslie A Pam PhD 2.0 X Harold B Ray 5.0 X Robert Ronus 2.0 X Jaclyn B Rosenberg 2.0 X Armin M Sadoff MD 2.0 X Barry A Sanders 5.0 X FRED SANDS 2.0 X E Randol Schoenberg 2.0 X Lisa See 2.0 X Joan Seidel 2.0 X Dr Chester Semel 2.0 X MARILYN SHAPIRO 2.0 X Eric L Small 2.0 X JAMES THURMOND SMITHGALL 2.0 X Mrs Dorothy B Straus 2.0 X Dr James A Strauss 2.0 X BARBARA AUGUSTA TEICHERT 2.0 X Sandra W Terner 2.0 X Paul D Tosetti 2.0 X Richard E Troop 2.0 X Brigitta B Troy 2.0 X Alyce Williamson 2.0 X ELLEN ZETCHER 2.0 X Placido Domingo see sch J 20.0 X 1027270 0 0 James Conlon see Sch J 20.0 X 1104563 0 78160 Stephen D Rountree 20.0 X X 210000 0 0 CHRISTOPHER KOELSCH 40.0 X 260480 0 9371 Faith Raiguel 40.0 X 240359 0 14020 John Nuckols 40.0 X 244708 0 4841 DIANE RHODES BERGMAN 40.0 X 155511 0 6400 HAROLD E CONROY 40.0 X 178240 0 37602 GRANT GERSHON 25.0 X 176200 0 2304 RUPERT HEMMINGS 40.0 X 161377 0 13304 PATRICIA MCLEOD 40.0 X 150763 0 10452 JEFF KLEEMAN 40.0 X 136347 0 12922 4045818 0 189376 21 false true false PAUL H LIPPE INC 233 12TH STREET SANTA MONICA CA 90402 Int'l shipping CNSLT 171489 NINO MACHAIDZE VIA RONCAGLIA 3 20146 MILAN 0 IT Artist Fees 126900 RENE PAPE GETHSEMENESTRASSE 4 10437 BERLIN 0 GM artist fees 112000 PAOLO GAVANELLI GREIFENSTRASSE 13 9001 ST. GALEN 0 SZ Artist Fees 108450 LEVI ESTATES LLC 5777 W PICO BLVD LOS ANGELES CA 90019 PROPERTY RENTAL FEES 105914 6 1653855 460275 20263741 351805 22377871 TICKET SALES AND FEES 711190 10780865 10780865 PRODUCTION RENTAL 711190 122799 122799 OUTREACH INCOME 611710 106612 106612 YOUNG ARTIST PROGRAM 711190 8284 8284 MERCHANDISE 900099 46437 46437 1500 1500 11066497 346353 346353 0 257798 257798 12300 0 12300 12300 12300 170849 1653855 906407 -735558 -735558 0 0 REFUNDS & REBATES 900099 13134 13134 OTHER INCOME 900099 3013 3013 16147 33341408 11066497 0 -102960 0 0 0 0 3018033 2284993 478173 254867 0 14595296 12669770 889781 1035745 173189 150855 11991 10343 2499344 2344717 61916 92711 1500500 1319736 88455 92309 0 2109 0 2109 0 105066 0 105066 0 0 127364 127364 35390 35390 3427327 3427327 1321839 1216095 13175 92569 489993 264597 97784 127612 94834 19700 74672 462 113671 113671 0 0 1689258 1444729 239667 4862 773524 629170 92513 51841 0 11596 4743 5063 1790 872919 0 872919 0 0 344240 277102 67138 0 203772 185 203587 0 PHYSICAL PRODUCTION COSTS 1622928 1622243 0 685 CONSULTING FEES 724776 404324 255792 64660 SPECIAL PROGRAMS 605144 117145 105563 382436 CREDIT CARD DISCOUNTS 360880 283917 2290 74673 385421 224756 153576 7089 35098413 28819775 3856620 2422018 751058 540350 4941400 3324162 27903183 24000069 276715 187928 0 0 0 0 0 0 0 0 1800734 1709744 8790850 7766419 1092585 1024431 104406 51280 12488289 11363352 0 0 0 0 8796120 10719710 58154490 52921026 4543581 5015612 0 0 6233892 6225718 0 0 0 0 5229921 6200000 3000000 6000000 17000000 10000000 0 0 36007394 33441330 X -18167785 -21690651 12775381 11624169 27539500 29546178 22147096 19479696 58154490 52921026 X -1757005 -910395 X false true true X false X 40715050 34054679 41170929 29582773 22377871 167901302 18708955 19693551 12624194 11690095 11066497 73783292 59424005 53748230 53795123 41272868 33444368 241684594 12741500 5051040 11700050 20831267 23419819 73743676 12741500 5051040 11700050 20831267 23419819 73743676 167940918 289780 24565 104453 340500 616451 1375749 289780 24565 104453 340500 616451 1375749 609505 445919 321408 153055 186996 1716883 60323290 54218714 54220984 41766423 34247815 244777226 0.68610 0.76160 0.00562 0.00700 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 12488289 65000 -668431 521506 11363352 11110558 17500 1941477 581246 12488289 10418993 15900 1265929 590264 11110558 13611688 16030 -2781074 427651 10418993 0.00000 1.00000 0.00000 true false 967297 935395 31902 7432091 6439562 992529 391462 391462 0 1024431 MUSIC CTR FDTN UNITIZED INV PL 11363352 F 11363352 BENEFICIAL INTEREST IN TRUST 10638031 DEPOSITS 67000 FABRIC INVENTORY 14679 10719710 0 0 33341408 35098413 -1757005 -882174 -28221 -910395 -2667400 33016772 -882174 526585 66343 -289246 33306018 35390 35390 33341408 35684172 526585 94564 621149 35063023 35390 35390 35098413 INTENDED USE OF ENDOWMENT FUNDS FORM 990, SCHEDULE D, PART V, LINE 4 THE OPERA'S INVESTMENT COMMITTEE, A SUBCOMMITTEE OF THE BOARD OF DIRECTORS, HAS ADOPTED INVESTMENT AND SPENDING POLICIES FOR ENDOWMENT ASSETS THAT ATTEMPT TO PROVIDE A PREDICTABLE STREAM OF FUNDING TO PROGRAMS SUPPORTED BY ITS ENDOWMENT WHILE SEEKING TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS. TO SATISFY THE LONG-TERM RATE-OF-RETURN OBJECTIVES, THE OPERA RELIES ON A TOTAL RETURN STRATEGY IN WHICH INVESTMENT RETURNS ARE ACHIEVED THROUGH BOTH CAPITAL APPRECIATION (REALIZED AND UNREALIZED) AND CURRENT YIELD (INTEREST AND DIVIDENDS). IN ORDER TO SUPPORT THE LONG-TERM GROWTH OF THE OPERA, THE INVESTMENT COMMITTEE HAS ESTABLISHED A SPENDING RATE POLICY WHERE THE ENDOWMENT SHALL ANNUALLY DISTRIBUTE 5% OF ITS FAIR VALUE. FOR SPENDING RATE PURPOSES, THE FAIR VALUE OF THE ENDOWMENT SHALL BE CALCULATED AT THE CALENDAR YEAR-END VALUATION OF THE ENDOWMENT PRIOR TO THE START OF THE OPERA'S FISCAL YEAR. FOR FUNDS WITH DONOR-IMPOSED ASSET ALLOCATIONS OR DISTRIBUTIONS, THE DISTRIBUTIONS WILL CONFORM TO THE DONOR'S EXPRESSED WISHES. THIS SPENDING RATE POLICY IS CONSISTENT WITH THE OPERA'S OBJECTIVE TO MAINTAIN THE PURCHASING POWER OF THE ENDOWMENT ASSETS HELD IN PERPETUITY OR FOR A SPECIFIED TERM AS WELL AS TO PROVIDE ADDITIONAL REAL GROWTH THROUGH NET GIFTS AND INVESTMENT RETURN. FIN 48 (ASC 740) FOOTNOTE FORM 990, SCHEDULE D, PART X, LINE 2 THE OPERA FOLLOWS THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION (ASC) SUBTOPIC 740-10, INCOME-TAXES - OVERALL, RELATED TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT ATTRIBUTE FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE INTERPRETATION REQUIRES THAT THE ENTITY ACCOUNT FOR AND DISCLOSE IN THE FINANCIAL STATEMENTS THE IMPACT OF A TAX POSITION IF THAT POSITION WILL MORE LIKELY THAN NOT BE SUSTAINED UPON EXAMINATION, INCLUDING RESOLUTION OF ANY RELATED APPEALS OR LITIGATION PROCESSES, BASED ON THE TECHNICAL MERITS OF THE POSITION. AS OF JUNE 30, 2012 AND 2011, THE OPERA HAD NO UNCERTAIN TAX POSITIONS REQUIRING ACCRUAL OR DISCLOSE. RECONCILIATION OF CHANGE IN NET ASSETS FORM 990, SCHEDULE D, PART XI, LINE 8 CHANGE IN VALUE OF BENEFICIAL INTEREST IN PERPETUAL TRUST $ 66,343 uncollectible pledges on receivables $(94,564) ------------ TOTAL $(28,221) RECONCILIATION OF REVENUE FORM 990, SCHEDULE D, PART XII, LINE 2D CHANGE IN VALUE OF BENEFICIAL INTEREST IN PERPETUAL TRUST $ 66,343 RECONCILIATION OF EXPENSE FORM 990, SCHEDULE D, PART XIII, LINE 2D uncollectible pledges on receivables $ 94,564 X X X X X X X true SDA Teleservices Inc 5757 WEST CENTURY BLVD STE 300 LOS ANGELES CA 90045 Telefunding false 320838 127364 193474 320838 127364 193474 CA OPEN NIGHT GALA 639137 581928 57209 97211 15768 419182 on stage gala 636250 601000 35250 58947 85275 165301 2 549317 470927 78390 23529 41194 1824704 1653855 170849 179687 101043 625677 906407 -735558 ADDRESS OF FUNDRAISER FORM 990, SCHEDULE G, PART I, LINE 2B SD&A TELESERVICES, INC. 5757 WEST CENTURY BLVD., STE 300 LOS ANGELES, CA 90045 X X X true true X X X X false false false false false false false false false Placido Domingo see sch J 1027270 0 0 0 0 0 0 0 0 0 1027270 0 375000 0 James Conlon see Sch J 1102500 0 0 0 2063 0 0 0 78160 0 1182723 0 0 0 Stephen D Rountree 210000 0 0 0 0 0 0 0 0 0 210000 0 0 0 CHRISTOPHER KOELSCH 260480 0 0 0 0 0 4000 0 5371 0 269851 0 0 0 Faith Raiguel 240359 0 0 0 0 0 4000 0 10020 0 254379 0 0 0 John Nuckols 244708 0 0 0 0 0 4000 0 841 0 249549 0 0 0 DIANE RHODES BERGMAN 155511 0 0 0 0 0 0 0 6400 0 161911 0 0 0 HAROLD E CONROY 178240 0 0 0 0 0 18973 0 18629 0 215842 0 0 0 GRANT GERSHON 176200 0 0 0 0 0 2304 0 0 0 178504 0 0 0 RUPERT HEMMINGS 161377 0 0 0 0 0 3151 0 10153 0 174681 0 0 0 PATRICIA MCLEOD 150763 0 0 0 0 0 310 0 10142 0 161215 0 0 0 compensation information FORM 990, SCHEDULE J, PART I, LINE 1A FIRST CLASS TRAVEL IS SOMETIMES PROVIDED TO PLACIDO DOMINGO AND JAMES CONLON. THIS TRAVEL IS CONDUCTED FOR BUSINESS PURPOSES AND IS NOT TREATED AS TAXABLE COMPENSATION TO DOMINGO OR CONLON AS IT IS A BUSINESS EXPENSE OF THE ORGANIZATION. LIMITED TRAVEL FOR COMPANIONS IS PROVIDED TO MEMBERS OF CONLON'S FAMILY SUBJECT TO RESTRICTIONS. TRAVEL FOR CONLON'S FAMILY IS INCLUDED IN HIS 1099 REPORTABLE COMPENSATION. HOUSING PROVIDED TO CONLON IN LOS ANGELES IS NOT TREATED AS TAXABLE COMPENSATION BECAUSE IT IS NOT HIS PRIMARY RESIDENCE BUT IS A REQUIREMENT OF HIS EMPLOYMENT WITH THE ORGANIZATION. FORM 990, SCHEDULE J, PART II TOTAL COMPENSATION FOR PLACIDO DOMINGO INCLUDES GENERAL DIRECTOR FEES OF $906,820, INCLUDING $375,000 THAT WAS DEFERRED FROM PRIOR YEARS. IN ADDITION, DOMINGO RECEIVED PERFORMANCE FEES OF $120,450. TOTAL COMPENSATION FOR JAMES CONLON INCLUDES MUSIC DIRECTOR FEES OF $322,500 AND PERFORMANCE FEES OF $780,000. Marc Stern - Temp Finance of Ops X 2100000 2044445 false false true WARNERCAROL HENRY - Temp Finance of Ops X 2000000 1000000 false false true MARILYN ZIERING - Temp Finance of Ops X 2100000 1044445 false false true ROBERT RONUS - TEMP FINANCE OF OPS X 2050000 2022222 false false true SELIM ZILKHA - TEMP FINANCE OF OPS X 100000 44444 false false true FRANK BAXTER - TEMP FINANCE OF OPS X 50000 22222 false false true BERNARD GREENBERG - TEMP FINANCE OF OPS X 50000 22222 false false true 6200000 Form 990, Schedule L, Part II, Column (f) Loans from donors or board members do not require Finance Committee or full Board approval. The Board Chair approves all such transactions as well as the Chief Executive Officer and Chief Financial Officer. X 17 351805 See Part II false true false NUMBER OF CONTRIBUTIONS FORM 990, SCHEDULE M, PART I, COLUMN B This equals the number of contributions received. METHOD OF DETERMINING REVENUES FORM 990, SCHEDULE M, PART I, COLUMN D CONTRIBUTED PROPERTY IS RECORDED AS INCOME AT THE FAIR VALUE OF THE PROPERTY ON THE DATE OF DONATION. THE FAIR VALUE OF PUBLICLY TRADED SECURITIES IS BASED ON QUOTED MARKET PRICES. FORM 990, PART III, LINE 1 ORGANIZATION'S MISSION WE WILL ACHIEVE THIS BY PRODUCING WORLD-CLASS OPERA THAT PRESERVES, PROMOTES AND ADVANCES THE ART FORM WHILE EMBODYING THE DIVERSITY, PIONEERING SPIRIT AND ARTISTIC SENSIBILITY UNIQUE TO LOS ANGELES. FORM 990, PART III, LINE 4B PROGRAM SERVICE The Speakers Bureau provided informative talks covering a variety of opera-related topics to over 7,200 citizens throughout Los Angeles County. Touring programs designed to teach children and families about opera while entertaining them reached 10,000. Another 6,000 residents attended free opera performances at the Cathedral of Our Lady of Angels. FORM 990, PART III, LINE 4D PROGRAM SERVICE OTHER PROGRAMS: LA Opera has many community outreach initiatives in addition to these three primary programs. Each year the Company produces a community opera that combines the talents of professional artists and musicians with non-professional adults and children to produce family-friendly and free public opera performances. LA Opera also has a series of radio broadcasts both locally and nationally. IL POSTINO, THE WORLD PREMIERE IN 2010, WAS BROADCAST ON THE PBS SERIES "GREAT PERFORMANCES." VOTING MEMBERS OF THE GOVERNING BODY FORM 990, PART VI, SECTION A, LINE 1A The Executive Committee is empowered to exercise all the duties of the Board between meetings of the Board and when the Board is not in session, except those matters precluded under Section 5212 of the California Nonprofit Corporation law. FAMILY RELATIONSHIP FORM 990, PART VI, SECTION A, LINE 2 There are two married couples on the Board: WARNER AND CAROL HENRY & Peter and Diane Gray. REVIEW OF FORM 990 FORM 990, PART VI, SECTION B, LINE 11A The final draft of the Form 990 is reviewed by the CFO and COO of the LA Opera, and edited if required. Prior to presentation to the Audit Committee, the Chair of the Board reviews the draft and proposes edits, if required. It is the practice of the LA Opera to circulate the public inspection copy without Schedule B, confidential donor list, to the Audit Committee for discussion, review and approval prior to filing. Further, the public inspection copy without Schedule B is made available to the full board subsequent to filing by electronic or other means. Monitoring and enforcing compliance with Conflict of Interest FORM 990, PART VI, SECTION B, LINE 12C The organization has a written conflict of interest policy adopted by the board for board members, officers and key employees. ANY BUSINESS RELATIONSHIP THAT IS, OR MAY BE PERCEIVED TO BE, A CONFLICT OF INTEREST IS DISCUSSED AND APPROVED BY THE BOARD. Also, a personalized letter to each board member, signed by the Chairman of the Board, was circulated specifically requesting review of the policy which was attached, as well as requesting response to a questionnaire. Each board member, officer and key employee sends a completed questionnaire to the Chief Financial Officer. Questionnaires not responded to are followed up with a phone call. Any disclosed conflict was discussed with the Chairman of the Board and the Chief Operating Officer. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, SECTION B, LINE 15A AND 15B The Compensation Committee of the Board meets to review and approve the compensation, or change in compensation, of the following positions, and other Key Employees (definition below): " General Director " Music Director " Senior Vice President and Chief Operating Officer " Chief Financial Officer " Vice Presidents The Compensation Committee is composed of board members independent with regard to the compensation arrangement. In its efforts to compensate employees fairly for their services, the Committee may utilize any of the following in determining appropriate levels of compensation: " Independent compensation consultant " Compensation surveys or studies of comparable organizations " Industry group surveys (i.e. Opera America) " Form 990 of comparable organizations COMPENSATION AGREEMENTS WERE APPROVED BY THE COMMITTEE AND THE BOARD OF DIRECTORS. DOCUMENTATION INCLUDES THE TERMS OF THE TRANSACTION AND THE DATE IT WAS APPROVED, April 25, 2012, MEMBERS PRESENT DURING DEBATE AND THOSE WHO VOTED ON IT, THE COMPARABILITY DATA RELIED UPON AND HOW IT WAS OBTAINED, AND ANY ACTIONS TAKEN WITH RESPECT TO CONSIDERATION OF THE TRANSACTION BY ANYONE WHO IS OTHERWISE A MEMBER OF THE AUTHORIZED BODY BUT WHO HAD A CONFLICT OF INTEREST WITH RESPECT TO THE TRANSACTION. JOINT VENTURE POLICY FORM 990, PART VI, SECTION C, LINE 16A AND 16B Any proposed joint venture must be submitted for approval by a member of the Legal Committee in accordance with the Policy Statement regarding Contract Signing Authorization adopted by the Board of Directors on January 7, 2008. The joint venture shall also comply with all other requirements of the Policy Statement. It is the policy of the LA Opera to enter into a joint venture arrangements only if it is consistent with the mission of the organization; And it does not jeopardize the tax exempt status of the organization; And specifically the operation of the joint venture must not result in any prohibited private benefit. If a joint venture is contemplated, it is disclosed to the Finance Committee for action in accordance with this Policy, and, if deemed appropriate, advice of legal counsel or tax advisors secured before entering into the joint venture or other arrangement. Sample joint ventures include television broadcasts, dvds & cds. Before making any decision to participate in a joint venture, LA Opera will ensure that the joint venture furthers LA Opera's exempt purposes and will negotiate at arm's length contractual and other terms of participation that safeguard LA Opera's exemption from federal and state income tax. Process for disclosing governing documents FORM 990, PART VI, SECTION C, LINE 19 The LA Opera makes its governing documents, tax exemption letter, conflict of interest policy and audited financial statements available to the public upon request. RECONCILIATION OF NET ASSETS FORM 990, PART XI, LINE 5 NET UNREALIZED GAINS (LOSSES) ON INVESTMENTS $ (882,174) CHANGE IN VALUE OF BENEFICIAL INTEREST IN PERPETUAL TRUST $ 66,343 BAD DEBT EXPENSES $ (94,564) -------------- TOTAL $ (910,395)