2013-02-27T16:14:18-06:00 2012-09-30 410746749 CLIFTONLARSONALLEN LLP 20 E THOMAS RD STE 2300 PHOENIX AZ 85012 990 2011-10-01 860107517 THE HEARD MUSEUM HEAR 6022510222 2301 N CENTRAL AVE PHOENIX AZ 85004 LELAND W PETERSON 6022510222 2013-02-20 1 PHIL MCCOLLUM P00129716 6022662248 2011 2016-02-25 16:41:14Z LELAND W PETERSON 2301 N CENTRAL AVE PHOENIX AZ 85004 10769873 0 X WWW.HEARD.ORG X 1929 AZ TO EDUCATE THE GENERAL PUBLIC ABOUT ARTS AND CULTURE OF AMERICAN INDIANS, (SEE SCHEDULE O) WITH A FOCUS ON TRIBES OF THE SOUTHWEST USA. 33 33 167 475 0 0 2761013 3025296 1838180 1974108 212564 54592 2291137 1916391 7102894 6970387 0 0 0 0 3969467 4131471 8377 0 894977 4915390 5710323 8893234 9841794 -1790340 -2871407 30272052 28670917 2046655 2947578 28225397 25723339 X TO EDUCATE THE GENERAL PUBLIC ABOUT ARTS AND CULTURE OF AMERICAN INDIANS, WITH A FOCUS ON TRIBES OF THE SOUTHWEST USA. 0 0 7162743 3711783 THE HEARD MUSEUM, LOCATED IN PHOENIX, ARIZONA, WAS FOUNDED IN 1929. THE HEARD IS A WORLD-CLASS AND WORLD-RENOWNED MUSEUM FEATURING MORE THAN 130,000 SQUARE FEET OF EXHIBIT, EVENT, AND RETAIL/ DINING SPACE, AND IS SITED ON 8 ACRES IN THE DOWNTOWN ARTS DISTRICT. THE PRIVATE NON-PROFIT MUSEUM PURSUES AN EDUCATIONAL MISSION OF PRESENTING, PERFORMING AND OFFERING THE PUBLIC THE ARTS AND HISTORY OF THE 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 THEN 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 HISTORY AND HOSTING MORE THAN 12,000 SCHOOL CHILDREN TOURING THE MUSEUM EACH YEAR; SUPPORTING THE CAREERS OF AMERICAN INDIAN ARTISTS WITH AUTHENTIC INDIGENOUS OFFERINGS IN THE HEARD'S RETAIL VENUES, WHICH INCLUDE THE HEARD MUSEUM SHOPS, THE BERLIN GALLERY AND BOOKS & MORE. 7162743 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 0 1 141 0 1 167 1 0 0 0 0 0 1 1 0 0 0 0 X 33 33 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 0 0 AZ X X CARLOS ROJAS 6022510222 2301 N CENTRAL AVE PHOENIX AZ 85004 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 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 OCONNOR 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 RICHARD B WEST III 1.00 X 0 0 0 LETITIA CHAMBERS 40.00 X 198475 0 0 CARLOS L ROJAS 40.00 X 58760 0 1900 STEVEN HEDDEN 40.00 X 116250 0 0 373485 0 1900 2 1 1 0 0 965012 113910 98260 1848114 332280 3025296 ADMISSIONS 611710 997098 997098 FAIR INCOME 900099 585916 585916 PRIVATE USE FEES 721000 364968 364968 EDUCATIONAL REVENUE 611710 26126 26126 1974108 54592 54592 4270 4270 295683 113910 173790 121893 121893 9186 0 9186 9186 5363371 3625696 1737675 1737675 MISCELLANEOUS 900099 43367 43367 43367 6970387 3711783 0 233308 525220 525220 3036937 2479844 253572 303521 312220 230820 68477 12923 257094 184549 48733 23812 161482 161482 43045 43045 37490 37490 284362 171465 86131 26766 424971 351828 73143 348491 292823 51733 3935 84802 48686 28164 7952 791356 791356 12883 4940 2653 5290 57109 24380 27575 5154 37071 37071 2213472 1549758 331857 331857 80871 80871 OTHER PROGRAM EXPENSES 553239 553239 EXHIBIT EXPENSES 413696 413696 FUNDRAISING EXPENSE 87981 87981 MEMBER SUPPORT 78002 65359 12643 9841794 7162743 1784074 894977 290220 433483 465034 414708 356598 61790 11346 6713 2206895 2064268 372113 140890 41030743 19022818 23427714 22007925 3060555 3454119 71486 78021 9000 10091 30272052 28670917 783588 978080 502962 433198 413546 1100000 109674 346559 326626 2046655 2947578 X 23128253 20219760 2269400 2600816 2827744 2902763 28225397 25723339 30272052 28670917 X -2871407 369349 X X 0 1 1 X 0 X 4625834 5194720 4156371 2761013 3025296 19763234 115500 130000 130000 375500 4741334 5324720 4286371 2761013 3025296 20138734 931688 19207046 143051 87632 47733 141752 58862 479030 208964 84861 343105 348236 985166 21602930 16971427 0.88910 0.87780 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS FUNDRAISING RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X X 1 4094164 10519 450867 4555550 4162062 129329 -197227 4094164 3093905 849761 318411 100015 4162062 3372853 245885 -168449 356384 3093905 0.36690 0.62070 0.01240 1 1 1 22512378 9007648 13504730 6044672 2293363 3751309 2695759 2313652 382107 9777934 5408155 4369779 22007925 DEPOSITS 87351 GIFT ANNUITY PAYABLE 239275 326626 6970387 9841794 -2871407 318336 307402 625738 -2245669 11243579 318336 59250 3895606 4273192 6970387 0 6970387 13489248 59250 3625696 3684946 9804302 37492 37492 9841794 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 2012 AND 2011 WAS APPROXIMATELY $1,265,000 AND $1,656,000, RESPECTIVELY. PART III, LINE 4: THE CORPORATION MAINTAINS A MUSEUM OF HISTORY AND ART IN THE CITIES OF PHOENIX AND SCOTTSDALE, ARIZONA FOR THE PURPOSE OF EDUCATING THE PUBLIC ABOUT THE HERITAGE, LIVING CULTURES AND ARTS OF INDEGENOUS PEOPLES, WITH AN EMPHASIS ON THE AMERICAN INDIANS OF THE SOUTHWEST. THIS PURPOSE IS ACCOMPLISHED THROUGH THE HEARD 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: 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, 2012 AND 2011. PART XI, LINE 8 - OTHER ADJUSTMENTS: HEARD FAMILY TRUST INCOME 253,242. CHANGE IN GIFT ANNUITY 54,158. ROUNDING 2. TOTAL TO SCHEDULE D, PART XI, LINE 8: 307,402. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 3,625,696. CHANGE IN GIFT ANNUITIES 54,158. ELIMINATE SEPARATE TRUST INCOME 253,242. INVESTMENT FEES NETTED AGAINST REVENUE -37,490. PART XIII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 3,625,696. PART XIII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT FEES 37,490. ROUNDING 2. PART XI, LINE 10: THE 2012 $2.2 MILLION DEFICIT PER THE AUDITED FINANCIAL STATEMENTS INCLUDES A NUMBER OF NON-CASH AND NON-RECURRING EXPENSES SUMMARIZED ON THE TABLE BELOW. REVERSING THE EFFECT OF THESE NON-CASH AND NON-RECURRING EXPENSES BETTER REFLECTS OPERATING RESULTS OF THE MUSEUM'S CORE OPERATIONS. 2012 DEFICIT (2,245,669) PLUS: DEPRECIATION 2,213,472 RETIREMENT AND SEVERANCE COSTS 351,000 INVENTORY VALUATION ADJUSTMENTS 232,000 BEQUEST SETTLEMENT COSTS 127,000 ----------------------------------------------- 2012 RESULTS AFTER ADJUSTING FOR DEPRECIATION AND NON RECURRING COSTS 677,803 THE MUSEUM BOARD AND STAFF IMPLEMENTED A 2013 BUDGET THAT CALLS FOR EXPENSE REDUCTIONS $650K; THE MUSEUM IS ON TARGET TO MEET THIS 2013 GOAL. MOONDANCE 256335 76510 179825 52681 16395 41015 NORTH GALA 67200 21400 45800 39575 2800 1400 1 86058 16000 70058 10413 4480 5031 409593 113910 295683 102669 23675 47446 173790 121893 X X X 1 0 0 0 0 0 0 0 0 LETITIA CHAMBERS 198475 0 0 0 0 0 0 0 0 0 198475 0 0 0 STEVEN HEDDEN 116250 0 0 0 0 0 0 0 0 0 116250 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 IS MAKING RETIREMENT PAYMENTS OF $16.6K PER MONTH THROUGH JUNE 2013. ROBERT BULLA TRUSTEE 252700 MR BULLA IS ON THE BOARD OF DIRECTORS OF BLUE CROSS/BLUE SHIELD OF AZ (BCBS). BCBS IS THE MUSEUM'S HEALTH INSURANCE PROVIDER. BCBS HAS BEEN THE MUSEUM'S MEDICAL INSURANCE CARRIER FOR THE LAST 10+ YEARS. 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 SUE NAVRAN TRUSTEE 252700 MS. NAVRAN IS THE EXECUTIVE VICE PRESIDENT, EXTERNAL OPERATIONS AT BLUE CROSS/BLUE SHIELD OF AZ (BCBS). BCBS IS THE MUSEUM'S HEALTH INSURANCE PROVIDER. BCBS HAS BEEN THE MUSEUM'S MEDICAL INSURANCE CARRIER FOR THE LAST 10+ YEARS. 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 JOHN BULLA VP OF OPERATIONS 88140 JOHN IS THE SON OF ROBERT BULLA, TRUSTEE. JOHN RECEIVES COMPENSATION FOR HIS DUTIES AS THE VICE PRESIDENT OF OPERATIONS. HIS SALARY IS DETERMINED UNDER THE SAME PROCEDURES THAT APPLY TO ALL OF THE OTHER EMPLOYEES OF THE ORGANIZATION. 0 MARK SCHIAVONI TRUSTEE 360882 MR. SCHIAVONI IS THE EXECUTIVE VICE PRESIDENT OPERATIONS AT ARIZONA PUBLIC SERVICE (APS). APS SUPPLIES THE MUSEUM WITH ALL OF ITS ELECTRIC POWER AT RATES ESTABLISHED BY STATE REGULATORS. 0 X 29 FAIR MARKET VALUE X FAIR MARKET VALUE X 2 7423 FAIR MARKET VALUE X 24 317481 FAIR MARKET VALUE X FUNDRAISER DONATIONS 13 13035 FAIR MARKET VALUE 4 0 1 1 METHOD FOR DETERMINING NUMBER OF CONTRIBUTORS: PART I, COLUMN (B): NUMBER OR CONTRIBUTORS WAS USED. 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 THAT WERE ADDED 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 $1,265,000. 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 FINANCE COMMITTEE PRIOR TO A FINAL REVIEW BY THE BOARD OF TRUSTEES. THE RETURN WILL BE FILED WITH THE IRS AFTER APPROVAL BY 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 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 AN 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 COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES REVIEWS SALARY OF THE EXECUTIVE DIRECTOR ANNUALLY. THE COMMITTEE DISCUSSES THE COMPENSATION OF OTHER LOCAL NOT-FOR-PROFIT ORGANIZATIONS DURING THE REVIEW PROCESS. THE COMPENSATION COMMITTEE IS MADE UP OF THE INDEPENDENT OFFICERS OF THE BOARD OF TRUSTEES. 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 5: NET UNREALIZED GAINS ON INVESTMENTS: 318,336. CHANGE IN GIFT ANNUITY 54,158. ADJUSTMENT TO NET ASSET BEGINNING BALANCE -3,145. TOTAL TO FORM 990, PART XI, LINE 5: 369,349. FORM 990, PART XI, LINE 2C: THE AUDIT COMMITTEE OVERSEES THE AUDITED FINANCIAL STATEMENTS. THERE HAS BEEN NOT CHANGE 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 HEARD FAMILY TRUST C 35954 FAIR MARKET VALUE