HomeMy WebLinkAboutBPW-04-01-15-14 Carmel Symphony OrchestraRESOLUTION NO. BPW- 04- 01 -15 -14
RESOLUTION OF THE CITY OF CARMEL BOARD OF PUBLIC WORKS AND SAFETY
ACKNOWLEDGING RECEIPT OF CONTRACT
WHEREAS, pursuant to Indiana Code 36- 1 -4 -7, the City of Carmel, Indiana ("City"), is authorized to
enter into contracts; and
WHEREAS, pursuant to Indiana Code 36- 4 -5 -3, the City's mayor may enter into contracts on behalf of the
City; and
WHEREAS, pursuant to his authority under Indiana law, the City's mayor, the Honorable James C.
Brainard, has caused to be signed the City contract attached hereto as Exhibit A (the "Contract "); and
WHEREAS, Mayor Brainard now wishes to present the contract to the City's Board of Public Works and
Safety for it to be publicly acknowledged, filed in the Clerk- Treasurer's Office, and made available to the public for
review.
follows:
NOW, THEREFORE, BE IT RESOLVED by the City of Carmel Board of Public Works and Safety as
1. The foregoing Recitals are incorporated herein by this reference.
2. The receipt of the Contract is hereby acknowledged.
3. The Contract shall be promptly filed in the office of the Clerk- Treasurer and thereafter made available to
the public for review.
SO RESOLVED this day of 1 . 2015.
CITY OF CARMEL, INDIANA
By and through its Board of Public Works and Safety
BY:
Jam's Brainard, Presidi 3g Officer
ate:
Ma y An
Date:
Lori S. Watson G
Date: 1�
ATTEST:
ana Cordray, IMCA, Clef- Treasurer
Date: — /-l�
S: \E Bass My Documents \BPW -Resolutions\2015 \CARMEL SYMPHONY ORCHESTRA Resolution-Acknowledge Arts Grant Program Agreement - 2o15.docxy79j20151:05 PM
ARTS GRANT PROGRAM
AGREEMENT
This Grant Agreement (herein referred to as "Agreement ") entered into by and between the City
of Carmel (the "City ") and Carmel Symphony Orchestra (the
"Grantee "), is executed pursuant to the terms and conditions set forth herein. In consideration of
those mutual undertakings and covenants, the parties agree as follows:
1. That on behalf of Grantee, a not - for - profit corporation, I, Alan Davis
an authorized representative of Grantee, have applied for a City of Carmel
( "Grantor ") Arts Grant, said application attached hereto and made a part hereof as
Exhibit "A."
2. Grant Agreement. The City, after review and recommendation by the Mayor and by
the City Council, agrees to grant $ 2 0 0 , 0 0 0 . 0 0 to the Grantee for
the eligible costs of the project (the "Project ") or services as described in Exhibits
"A" and "B" of this Agreement. The funds shall be used exclusively in accordance
with the provisions contained in this Agreement.
3. Design and Implementation of Project. The Grantee agrees to use any and all grant
funds in accordance with the proposal contained within this agreement and any
documents attached to this Agreement, which are incorporated by reference.
4. Warranty of non - profit status. Grantee hereby represents and warrants that it is a
not - for - profit entity with a determination letter from the Internal Revenue Service
declaring that it is exempt from Federal income tax.
5. Payment of Grant Funds by the City. The payment of this Grant by the City to the
Grantee shall be made in accordance with the following conditions:
A. This Agreement must be fully executed and signed by both Grantee and Grantor.
B. Grantee has attached all the following information, which it represents and warrants
to be true and accurate, all which have been incorporated fully by reference:
1. An application and description of the proposed use of the grant funds (EXHIBIT
A);
2. A budget for the calendar or fiscal year for which the grant is requested
(EXHIBIT B);
3. Certified copies of incorporation as a not - for - profit corporation under state law
(EXHIBIT C);
4. A not - for - profit application or determination letter from the U.S. Internal Revenue
Service identifying that it is a not - for - profit corporation that is exempt from
Federal income tax (EXHIBIT D);
5. Any audits, reviews or compilations available describing the financial condition
of the Grantee, including most recent available IRS Form 990, and the attached
Affidavit (EXHIBIT E);
6. A list of the Grantee's board of directors and officers listed (EXHIBIT F);
7. A Year End Report from the previous year IF Grantee received an Arts Grant
from the City of Carmel in the previous calendar year, pursuant to paragraph 7
herein (EXHIBIT G).
C. Any other grant conditions that City requires to be met by Grantee, specifically:
6. Grantor's right to request audit or review. Grantee shall submit to an audit or
review by an independent Certified Public Accountant of funds at the City' s request,
and shall make all books, accounting records and other documents available at all
reasonable times during the term of this Grant Agreement, and for a period of three
(3) years after final payment of funds under this Agreement, for the purpose of an
audit by the City of Carmel, the State of Indiana, or their designees.
7. Year end review. Grantee agrees to provide the City of Carmel a year -end report
( "Year End Report") for each year, describing how the grant was used and the impact
of the dollars received. This Grant award may not exceed one third (1/3) of Grantee's
combined contributed income, revenue of sales, and/or ticket revenue from the
2
previous year. If the Grant amount is in excess of sixty thousand dollars
($60,000.00), the Grantee agrees to provide, at Grantee's cost, a review or audit of the
grantee. Said review or audit shall be performed by a Certified Public Accountant
( "CPA ") who is neither an employee of Grantee nor a member of the Grantee's Board
of Directors, to be provided to the City of Carmel by March 31 of the following year.
8. Funding Credit. Grantee agrees to credit the City of Carmel in the printed materials
associated with a funded program or project. The City of Carmel will supply, upon
request, Grantee with the graphics /logos necessary for compliance.
9. Statutory Authority of Grantee. The Grantee expressly represents and warrants to
the State that it is statutorily eligible to receive these monies and it expressly agrees to
repay all monies paid to it under this Grant, should a legal determination of its
ineligibility be made by any Court of competent jurisdiction.
10. Use of Grant Funds by Grantee. The funds received by the Grantee pursuant to this
Agreement shall be used only to implement the Project or provide the services in
conformance with the Budget and for no other purpose. If it is determined by the
City that misappropriation of funds have occurred, the Grantee must return all funds
received by Grantor and individuals who misuse Grant funds may also be subject to
civil and/or criminal liability under Indiana or Federal law.
11. Employment Eligibility Verification. The Grantee affirms under the penalties of
perjury that he /she /it does not knowingly employ an unauthorized alien.
The Grantee affirms under the penalties of perjury that he /she /it has enrolled and is
participating in the E- Verify program as defined in IC 22- 5 -1.7. The Grantee agrees
to provide documentation to the City that he /she /it has enrolled and is participating in
the E- Verify program.
The City may terminate for default if the Grantee fails to cure a breach of this
provision no later than thirty (30) days after being notified by the State.
12. Governing Law; Lawsuits. This Agreement is to be construed in accordance with
and governed by the laws of the State of Indiana, except for its conflict of laws
provisions. The parties agree that, in the event a lawsuit is filed hereunder, they
waive their right to a jury trial, agree to file any such lawsuit in an appropriate court
in Hamilton County, Indiana only, and agree that such court is the appropriate venue
for and has jurisdiction over same.
13. Relationship of Parties. The relationship of the parties hereto shall be as provided
for in this Agreement, and neither Grantee nor any of its compensated officers,
employees, contractors, subcontractors and/or agents are employees of City. The
3
Grant amount set forth herein shall be the full and maximum compensation and
monies required of City to be paid to Grantee under or pursuant to his Agreement.
14. Severability. If any term of this Agreement is invalid or unenforceable under any
statute, regulation, ordinance, executive order or other rule of law, such term shall be
deemed reformed or deleted, but only to the extent necessary to comply with same,
and the remaining provision of this Agreement shall remain in full force and effect.
15. Entire Agreement. This Agreement, together with any exhibits attached hereto or
referenced herein, constitutes the entire agreement between Grantee and City with
respect to the subject matter hereof, and supersedes all prior oral or written
representations and agreements regarding same. Notwithstanding any other term or
condition set forth herein, but subject to paragraph 15 hereof, to the extent any term
or condition contained in any exhibit attached to this Agreement or in any document
referenced herein conflicts with any term or condition contained in this Agreement,
the term or condition contained in this Agreement shall govern and prevail. This
Agreement may only be modified by written amendment executed by both parties
hereto, or their successors in interest.
IN WITNESS WHEROF, the parties hereto have made and executed this Agreement as follows:
Carmel Symphony Orchestra ( "Grantee ")
By:
Printed Name of Officer: Alan Davis
Date: 1/13/2015
ATTEST:
Date: 3/17/2015
Title: President & CEO
CITY OF CAgivir RMEL.( "Grantor ")
By: '�*K
James Brainard, Mayor
Date: 3/17/2015
If you have any question concerning the City of Carmel's 2015 Arts Grant Program, grant writing, guidelines or application materials, contact:
Sharon Kibbe, City of Carmel, One Civic Square, Carmel, IN 46032, Phone: 317 -571 -2483, skibbe n Carmel. in.gov.
4
dxhibit "A"
An application and description
of the prop.sed use of the grant
funds
Exhibit "A"
An Application and Description of the Proposed Use of the Grant Funds
APPLICANT:
Name of organization: Carmel Symphony Orchestra
Address: 760 3rd Ave. SW, Suite 102
Carmel. IN 46032
Telephone: 317 -844 -9717 Fax: 317- 844 -9916
Contact Person: Alan Davis
Email: adavis(c�carmelsvmphonv.ora
APPLICATION AMOUNT: $ 205,000
Not to exceed 1/3 of previous year revenue/income
DESCRIPTION OF THE PROPOSED USE OF THE GRANT FUNDS:
By: •-
Printed Name of Officer:
Title: President & CFO
Date: 1/13/2015
Alan Davis
(Additional pages may be added to Exhibit "A ")
5
CISARMEL
MPHONY
HESTRA
City of Carmel Arts Grant Application
Exhibit A
January 13, 2015
This grant from the city will provide either partial or total funding for these programs:
• Two Sounds Exciting! elementary concerts where all Carmel -Clay fifth grade
students hear orchestral music selected in consultation with elementary music
teachers to supplement state music curriculum and are inspired to join their school's
band or orchestra.
• The CSO's performance at CarmelFest.
• Presenting guest artists of national reputation.
• Music for various civic events such as the Holiday Tree Lighting.
• The YouthPASS program (children and students through high school can attend
CSO concerts for $5).
• Family Fun! — an interactive concert where young and young -at -heart are invited to
sit on stage and experience music being made from a different perspective.
• Increased marketing to heighten awareness of the CSO and the arts in Carmel.
• Keeping concert tickets affordable for all of our community.
During the past year the CSO performed for more than 28,000 adults and children at
subscription concerts, educational concerts, and free public concerts such as CarmelFest.
The CSO's upcoming season marks the CSO's 40' anniversary season of providing
outstanding orchestral concerts to the citizens of Carmel and surrounding communities.
Since the CSO's move to the Palladium, we have expanded our attendance to include
people from outside the Indianapolis metropolitan area and even outside the state.
Throughout its existence the CSO has remained committed to enhancing our community's
quality of life in a fiscally responsible manner through creative, artistically excellent
performances, and educational experiences for diverse audiences of all ages.
Funding from the City of Carmel enabled the CSO to continue presenting guest artists of
national and international reputation such as Sean Chen, Sylvia McNair, the Indianapolis
Children's Choir, the Indiana University Singing Hoosiers, and the Gold, Silver, and Bronze
Medalists from this past fall's International Violin Competition of Indianapolis.
760 3 "Avenue SW, Suite 102, Carmel, IN 46032 -2070 • CarmelSymphony.org • info @carmelsymphony.org • 317.844.9717
City of Carmel
page 2
The CSO is extremely proud of the fact that approximately 23% of our annual budget is
earned income from ticket sales and contracted performances. In addition, 34% of income
comes from individual donors. Furthermore, the CSO is well supported by the business
community through concert sponsorships, gifts, matching contributions, and in -kind
donations of services and office space. We are also proud of the fact that over the past 5
years patron giving (from a donor base made up of people of different socio- economic
backgrounds and age groups) has increased by overl 0% per year until the 2013 -14 fiscal
year when individual donations rose by 44 %. Additionally, 100% of the Board and Staff,
and 100% of the musicians contribute to the annual fund. We are also extremely grateful
to our professional musicians who choose not to be paid for their service to the CSO. Their
contribution of uncompensated talent is valued at $106,000.
While the 2015 -16 season is still being finalized, it will continue to feature six concerts
showcasing the CSO in the Palladium, as well as a separate Family Fun! concert. We
anticipate the upcoming season featuring the Wright Brothers headlining the holiday
concert, a return of teenage violin prodigy, Ariel Horowitz, performing Tchaikovsky's brilliant
Violin Concerto, pianist Frederick Moyer, and a multi -media performance of Holst's Planets
with video incorporating interplanetary NASA footage.
Funding from the City of Carmel helps to underwrite the CSO's subscription series of six
"family- friendly" concerts (families with young children are encouraged to attend and
children are made to feel welcome at all CSO concerts), and educational concerts for all 5'h
grade students in Carmel -Clay Schools, as well as other area school systems, private
schools, and home - schooled students. The separate Family Fun! concert features the
winner of the CSO's Young Artist Competition. This concert also offers "children" from two
to 92 an opportunity to sit among the orchestra musicians to watch music being made up
close. And, after the concert, the excitement spills over into the lobby where the newly
inspired can try out orchestral instruments at a musical petting zoo. City funding also
sponsors the CSO's performance at CarmelFest on the 4th of July and at various other civic
and community events.
The "family- friendly" atmosphere of the Carmel Symphony Orchestra's concerts has
become our brand. As a result, the CSO programs concerts that entertain and educate the
broadest possible audience, including audiences who do not traditionally attend orchestra
concerts. The CSO has been successful in attracting a broader age range than the typical
40 -60 year -old symphony orchestra patron. The eclectic programming, use of multi -media
presentations, affordable ticket price and YouthPASS and CollegePASS programs have
attracted family audiences from broad ethnic and socioeconomic backgrounds. The CSO
has successfully positioned its concerts as accessible, affordable family entertainment in a
way that can compete favorably with movies and other popular forms of family
entertainment. CSO ticket pricing and the YouthPASS means that the most two parents
would pay to attend a concert with their family is around $50. As a result, CSO concerts
draw more children and young adults than most other major Indiana orchestras. As stated
above, last season the CSO performed for more than 28,000 people. Furthermore,
between our two major educational initiatives (Sounds Exciting! concert and the YouthPASS
program) more than 3,500 children and students under the age of eighteen heard the CSO
in concert this past season for just $5 or free.
City of Carmel
page 3
The CSO provides quality orchestral performances that contribute to the artistic growth and
quality of life of Carmel and the surrounding multi - county metropolitan area. The CSO's
focus on "family- friendly" educational programming is attracting new audiences and
educating listeners who will become the arts patrons of this century. The CSO season is
designed to enhance the educational mission of the orchestra. The education program has
three key components: the YouthPASS, the Sounds Exciting! elementary concerts, and the
Young Artists Concerto Competition.
Sounds Exciting! is our signature educational concert designed especially for elementary
school students, who are at the age when they are deciding if they want to play a musical
instrument and participate in school band and orchestra. These concerts draw more than
2,000 students including every 5th grade student in the Carmel -Clay system as well as students
from Westfield- Washington, Heritage Christian, and other local schools to the Palladium for
the performances that showcase a wide range of orchestral repertoire. After this concert,
teachers are surveyed. Additionally, the CSO has developed an advisory committee of music
teachers from the Carmel -Clay Schools to help the orchestra plan future programs and
projects that will be a resource for teachers to use in supplementing the state music
curriculum.
The CSO nurtures the careers of young musicians through its annual Young Artist Concerto
Competition. With support from the CSO League and Meridian Music, the CSO conducts a
juried competition open to any instrumental music student who lives in a county contiguous
to Hamilton or Marion counties. Typically this competition draws applications from more
than 40 talented junior high and high school students. The winner is presented in concert
as a soloist with the orchestra. The winner also receives a $1,000 prize.
In the summer of 2014 the CSO adopted a new three -year strategic plan (included at the
end of this application). At the core of this plan is an emphasis on growing the fundraising
capacity of the CSO. Because of this emphasis, the plan calls for adding a member to the
CSO's staff by hiring a development professional to oversee laying the foundation necessary
to strengthen traditional development initiatives and to build new fundraising initiatives.
This key component of the plan has been met with the hiring of Stephanie Marmon Grabow
as Development Director. Stephanie brings a breadth of experince to the position having
served in high -level development positions with several organizations, most recently in the
major gifts department of St. Jude's Children's Hospital. The plan also outlines the goals
necessary to increase the artistic excellence of the CSO and secure its future in our
community.
As we look ahead to celebrating our 40th Anniversary in the 2015 -16 season, the Carmel
Symphony Orchestra remains committed to this guiding principal — Music has the power to
change lives.
Exhibit `B,>
A budget for the calendar or
fiscal year for which the giant is
requested
2:25 PM
01/13/15
Accrual Basis
Carmel Symphony Orchestra, Inc,
Profit & Loss Budget Overview
July 2014 through June 2015
Jul '14 - Jun 15
Ordinary Income /Expense
Income
Concert Income 226,200.00
Contracted Performances 9,000.00
Concert Sponsorship 85,000.00
Donations 74,800.00
Government 205,000.00
Grants 18,000.00
Program Advertisements 18,000.00
Rebate 0.00
Refund on Expense 0.00
Young Artist 400.00
CD Purchase 1,000.00
Reimbursed Expenses 0.00
In -Kind Contributions 164,175.00
Total Income 801,575.00
Artistic Expenses
Season Concerts
Special & Contracted Concerts
In Kind Contributions
Total Artistic Expenses
256,727.08
52,751.00
164,175.00
473,653.08
Gross Profit 327,921.92
Expense
Advertising and Marketing 67,000.00
CD's for Purchase 480.00
Community Service 1,000.00
Development 7,600.00
Dues and Subscriptions 2,050.00
Equipment Purchase 2,000.00
Equipment Rental (Non - Concert) 3,000.00
Insurance 5,373.00
Internet Expense 480.00
Licenses and Permits 6,010.00
Miscellaneous 600.00
Office Supplies 3,000.00
Payroll Expenses 162,444.64
Postage and Delivery 9,325.00
Printing and Reproduction 28,515.00
Professional Fees 10,090.00
Rent 1,560.00
Repairs 300.00
Page 1 of 2
2:25 PM
01/13/15
Accrual Basis
Carmel Symphony Orchestra, Inc.
Profit & Loss Budget Overview
July 2014 through June 2015
Jul '14 - Jun 15
Telephone 1,800.00
Travel & Ent 5,430.00
Utilities 0.00
Young Artist Competition 2,900.00
Total Expense 320,957.64
Net Ordinary Income 6,964.28
Other Income /Expense
Other Income
Interest Income
Total Other Income
Other Expense
Bank Service Charges
Total Other Expense
3,708.00
3,708.00
2,100.00
2,100.00
Net Other Income 1,608.00
Net Income 8,572.28
Page 2 of 2
Exhibit "C"
Certified copies of
incorporation as anot- for - profit
corporation under state law
SS -0O2
STATE OF INDIANA
OFFICE OF THE SECRETARY OF STATE
To Whom These Presents Come, Greeting:
CERTIFICATE OF .INCORPORATION
CARMEL SYMPHONY ORCHESTRA, INC.
1, LARRY A. CONRAD, Secretary of State of the State of Indiana, hereby certify that Articles of
Incorporation of the above not-for-profit corporation, in the form prescribed by this Office, prepared and
signed in duplicate by the Incorporator(s) and acknowledged and verified by the same before a Notary
Public, have been presented to me at this office accompanied by the fees prescribed by law; that I have
found such Articles conform to law; that I have endorsed my approval upon the duplicate copies of such
Articles; that all fees have been paid as required by law; that one copy of such Articles has been filed in this
office; and that the remaining copy(ies) of such Articles bearing the endorsement of my approval and filing
has (have) been returned-by me to the incorporator(s) or his (their) representatives; all as prescribed by the
Indiana Not - For - Profit Corporation Act of 1971.
NOW, THEREFORE, I hereby issue to such Corporation this Certificate of Incorporation, and further
certify that its corporate existance has begun.
In Witness Whereof, I have hereunto set my hand and
affixed the seal of the State of Indiana, at the City of
10th
Indianapolis, this day of
December _ 76
"Not- for - Profit" as applied to corporations
means, " ... any corporation which does not
engage in any activities for ,the profit of its
members and which is organized and conducts
it affairs for the purposes other than the
pecuniary gain of its members ". (Indiana
Code, 23- 7- 1.1 -2[d])
TANri
FILED
DEC 101976
SECRETARY OF
STATE OF INDIANA
Corporate Form No. 364 -1 (April 1976)
Page One
ARTICLES OF INCORPORATION
(Not for Profit)
Prescribed by Larry A. Conrad,
Secretary of State of Indiana
INSTRUCTIONS:
Use 81 x 11 Inch Paper for Inserts
Present 2 Executed Copies to Secretary of
State, Room 155, State House, Indianapolis,
Indiana 46204
The recording of a third executed copy with the
County Recorder is no longer statutorily
required.
FILING FEE is $26.00
ARTICLES OF INCORPORATION
OF
. . . . . . . . . . . . CtI .s.'zP?'. I2cP,P'FA➢ . 41
.............. . .
The undersigned incorporator or incorporators, desiring to form a corporation (hereinafter referred to
as the "Corporation ") pursuant to the provisions of the Indiana Not - For- Profit Corporation Act of 1971,
(hereinafter referred to as the "Act "), execute the following Articles of Incorporation:
ARTICLE I
Name
The name of the Corporation is .e'armrt ' � ?' t �3 5 +, Inc..
(The name shall include the word "Corporation" or "Incorporated ", or one of the abbreviations thereof.)
ARTICLE II
Purposes
The purposes for which the Corporation is formed are:
To transact any or all lawful business for which
corporations may . incorporated under the Indiana
Not-For-Profit Corporation Act, IC 23-7-1.1-1, but
said corporation shall be limited exclusively to
Charitable, Religious, Educational or Scientific
Purposes within the meaning of Section 501(c) (3)
of the Internal Revenue Code of 1954.
Corporate Form No. 364 -1 Page Two
Prescribed by Larry A. Conrad,
Secretary of State (April 1976)
ARTICLE III
Period of Existence
The period during which the Corporation shall continue is . . pqrpetual
(will either be "Perpetual ", or, if to be limited, some definite period of time.)
ARTICLE IV
Resident Agent and Principal Office
Section 1. Resident Agent. The name and address of the Resident Agent in charge of the Corporation's
principal office is Viktors 31rl s
(Name)
529 Arthur Drive Carmel INDIANA 46280
(Number and Street or Building) (City) (State) (Zip Code)
Section 2. Principal Office. The post office address of the principal office of the Corporation is
,9 A..rthi . WaYr v
INDIANA
(Number and Street or Building) (City) (State) (Zip Code)
ARTICLE V
Membership
(A minimum of three (3) persons shall have signed the membership list. Directors or Trustees or Incorporators
may be included in the Membership.)
Section 1. Classes. (If any)
4ss' < Ii.ys :.? in
•
Section 2. Rights, Preferences, Limitations, and Restrictions of Classes.
Shall establis 2 +a ?s.
Section 3. Voting Rights of Classes.
shala :..: in
PLEASE NOTE : The Corporation shall confer upon every member a certificate signed by the President (or
Vice - President) and Secretary (or Assistant Secretary), stating that he is a member of the Corporation.
Corporate Form No. 364 -1 Page Three
Prescribed by Larry A. Conrad,
Secretary of State (April 1976)
ARTICLE VI
Directors
Section 1. Number of Directors. The initial Board of Directors is composed of
members. If the exact number of Directors is not stated, the minimum number shall be
and the maximum number shall be Provided, however, that the exact number of
directors shall be prescribed from time to time in the By -Laws of the Corporation: AND PROVIDED
FURTHER THAT UNDER NO CIRCUMSTANCES SHALL THE MINIMUM NUMBER BE LESS THAN
THREE (3).
Section 2. Names and Post Office Addresses of the Directors. The name and post office addresses of
the initial Board of Directors are:
Name Number and Street or Building
s A. 5adington R. 1, 130x 180
John Carter
City State
Zip Code
Fountasntown, Indiana 46130
3431 Backmeyer Rd. x 2ch*mon d . nd ana 47374
-,.i.aa eth Jackson 10828 Lakeshore Dr.W. Carmel
Y
Indiana 6032
11612 E. 10th St. Indianapolis, Indiana /6229
ARTICLE VII
Incorporator(s)
Section 1. Names and Post Office Addresses,
incorporator(s) of the Corporation is (are) as follows:
Name
Number and Street or Building
The names and post office address(es) of the
City
State Zip Code
Harry D. Andrews 19002 North Brookview Place, Westfield, ins iana 46074
Corporate Form No. 364-1 Page Four
Prescribed by Larry A. Conrad,
Secretary of State (April 1976)
ARTICLE VIII
Statement of Property (If any)
A statement of the property and an estimate of the value thereof, to be taken over by this corporation
at or upon its incorporation are as follows:
NONE
ARTICLE IX
Provisions for Regulation and Conduct
Of the Affairs of Corporation
(Can be the "By Laws")
Other provisions, consistent with the laws of this state, for the regulation and conduct of the affairs of
this corporation, and creating, defining, limiting or regulating the powers of this corporation, of the
directors or of the members or any class or classes of members are as follows:
Said corporation is organized exclusively for charitable,
religious, educational, and scientific purposes, including, for
such purposes, the making of distributions to organizations
that qualify as exempt organizations under section 501 (c) (3)
of the Internal Revenue Code of 1954 (or the corresponding
provision of any future United States Internal Revenue Law).
No part of the net earnings of the corporation shall
inure to the benefit of, or be distributable to, its member,
trustees, officers, or other private persons, except that the
corporation shall be authorized and empowered to pay reasonable
compensation for services rendered and to make payments and
distributions in furtherance of the ourposes set forth in
ARTICLE IX (continue0)
Article Third hereof. No substantial part of the activities
of the corporation shall be th.. carrying on of propaganda,
or otherwise attempting, to influence legislation, and the
corporation shall not participate in, or intervene in,
(including the publishing or distribution or statements)
any political campaign on behalf of any candidate for
public office. Notwithstanding any other provision of these
articles, the corporation shall not carry on any other
activities not permitted to be carried on (a) by a corpora-
tion exempt from Federal Income Tax under section 501 (c) (3)
of the Internal Revenue Code of 1954 (or the corresponclinc
provision of any future United 3tates Int€rna. ReTionue Law)
or by a corporation, contributions to which
crier sectirm 170 (c) (2) of the Internal Revenue Cod o
1954 (cr the co'frc:.spon-5ing pro7ision of any futurP-, United
71-71tr;=rnnl Reenue La,v).
Upon the 6issolution of t3- orort ion te Board
o'F. Trustees shall, nfter pavir C making pr0 v3.!Aion thp
paymnt of all of the liabilities of the oorporatAnn, &isposE
of iL c the assets of th,7,,, r,-.=orporation qi3xclus:Ive1y or the
purposes of tk ox'poration in such: manner, or to guch
organization or organization organized and operated
excluively for charitah)Le,eucationaI, r0Agious, or
scientJfic purposes as 'shall at tl-oe time 711E115fY M5. an
amempt orqanintion l'',rorganirzatinns tnelet.- 'ection (c)
▪ Tntern& 1,Zevenucornf'1(354- (or the corre*,1.pondi.nq •
prouisi2n
o anv future dt States intermo Reme Lai'.7)e
F?.3 tb,F, board of Trustes Shall 6etermine. Any of such assets
rst so dit4posed of shall be disposed'of by the tircuit Court
oi t ▪ County in which the principal office of the corpora-
tion is then located, exclusielv for such purposes or to
such. organization or cxganizations, as Said Oourt shall
trine wic c:Yrganized and operateclusiv,el.y
for such purposes..
Otherwise, the corporation will be governed by rules
and regulations as adopted in the By-Laws.
However, the corporation shall not do any acts in
discrimination -of race, sex or creed.
Corporate Form No. 364 -1 Page Five
Prescribed by Larry A. Conrad,
Secretary of State (April 1976)
The undersigned, being one or more persons, do hereby adopt these Articles of Incorporation,
representing beforehand to the Secretary of State of the State of Indiana and all persons whom it may
concern that a membership list or lists of the above named corporation for which a Certificate of
Incorporation is hereby applied for, have heretofore been opened in accordance with the law and that at
least three (3) persons have signed such membership list.
IN WITNESS WHEREOF, I (we) the undersigned do hereby execute these Articles of Incorporation and
certify the truth of the facts herein stated, this day of , 19. . .
ritten Signature
/%fiie� D av cY ,(2-u) �-
(Printed Signature)
(Written Signature)
(Printed Signature)
(Written Signature)
(Printed Signature)
NOTARY ACKNOWLEDGEMENT
(required)
State of Indiana
SS:
County of . 1`?ARION. . . . .
Before me, Mary Ann Polk , a Notary Public in and for said county and
State, personally appeared the above incorporator(s) and (severally) acknowledged the execution of the
foregoing Articles of Incorporation.
Notary Seal
Required
7)7 a} GCS
(Wr'- ten Signature)
Mary Ann Polk . , Notary Public
(Printed Signature)
My commission expires: . June 1, 1980
This instrument was prepared by . .
WITNESS my hand and Notarial
Seal this // day of December
19.7.6.
x
(Name)
. . . u s a . : r . .? . z ! 1 0 Cons( n e } : wn t ,Z
' _1
(Number and Street or Building) (City) (State) (Zip Code)
Exhibit "D"
IRS Determination better
Internal Revenue Service Department of the Treasury
District Director
Date: MAY 11 1979
Carmel Symphony Orchestra, Inc.
410 Second Avenue NE
Carmel, IN 46032
Gentlemen:
Our Letter bated:
November 17, 1977
Person to Contact:
Delores A. Dunn:sah
Contact Telephone Number:
513- 684 -3578
CIN: EO: '7,91 0 8 U
This modifies our letter of the above date in which we stated that
you would be treated as an organization wh` ';h is not a private foundation
until the expiration of your advance ruling, period.
Based on the information you submittec' we have determined that you
are not a private foundation within the mePn.tng of section 509(a) of the
Internal. Revenue Code, because you are an 1 *.anizatioii of the type described
in section _,.509_(a)_(1)_.*._.___....• Your exempt s .,t!;us under section 501(c) (3) of the
code is still in effect.
Grantors and contributors may rely on ;iis determination nnLi.l the
Internal. Revenue Service publishes notice '., the contrary. Howovrr, a
grantor or a contributor may not rely on tI .:n determination if he or she was
in part responsible for, or was aware of, not or failure to act that
resulted in your :Loss of section .. 50.9..(a).(0.._ * status, or acquired
knowledge that the Internal Revenue Serv.io‘ 1-ad given notice thr.t you would
be removed from classification as n sectic,
..___..50.9..(.a).(.1.)._t_.., organization.
Because this letter could help reso.iv ,tny questions about your private
foundation status, please keep it in your 1 3.manent records.
If you have any questions, please con..tot the person whose name and
telephone number are shown above,
* & 170(b) (1) (A) (vi)
cc: Alan J. Dansker
2700 Indiana Tower
One Indiana Square
Indianapolis, IN 46204
Sincerely yours,
Js
D. L. James, Jr.
District Director
This modification letter supersedes rur letter dated January 15, 1979, which
classified you as a private foundat:.-,n.
P.O. Box 2500, Cincinnati, Ohio 45201 Letter 1050 (DO) (7-77)
F1xhibit "E"
Any audits, reviews or
compilations available
describing the financial
condition of the Grantee,
including most recent available
I S Form 990, and the
Affidavit
STATE OF INDIANA
) SS:
COUNTY OF HAMILTON )
1, Alan Davis
of Carmel Symphony Orchestra ( "Grantee "), being first duly sworn upon
my oath, state that pursuant to paragraph 7 of the City of Carmel Arts Grant Program Agreement,
all income of Grantee, including a City of Carmel arts grant, if applicable, revenue of sales,
and /or ticket revenue, etc., in the Grantee's year ending in 2014 totaled $ 723,052
AFFIDAVIT
, an authorized representative
Signature
Printed Name Alan Davis
Subscribed and sworn to before me, the undersigned Notary Public, this 111/441 - day of
JO►v1uOr1A , 20 t5.
Signature - Notary Public
Printed Name
Resident of Elam'Inn County, Indiana
My Commission Expires: dull L [ A aO 1,
'
• 1 7 ,
_kJ- '
7-•-•
CARMEL SYMPHONY ORCHESTRA, INC.
FINANCIAL STATEMENTS AND
INDEPENDENT AUDITOR'S REPORT
For the Year Ended
June 30, 2014
� Sikichm
Carmel Symphony Orchestra, Inc.
Table of Contents
TABLE OF CONTENTS
INDEPENDENT AUDITOR'S REPORT 1 -2
FINANCIAL STATEMENTS:
STATEMENT OF ASSETS
AND NET ASSETS — MODIFIED CASH BASIS 3
STATEMENT OF SUPPORT, REVENUES,
EXPENSES, AND CHANGES IN NET ASSETS — MODIFIED CASH BASIS 4
STATEMENT OF FUNCTIONAL EXPENSES — MODIFIED CASH BASIS. 5
NOTES TO FINANCIAL STATEMENTS 6 -10
� Siki
8555 N. River Rd., Suite 300
Indianapolis, Indiana 46240
317.842.4466 // www.sikich.com
Certified Public Accountants & Advisors
Members of American Institute of Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors of
Carmel Symphony Orchestra, Inc.:
We have audited the accompanying financial statements of the Carmel Symphony Orchestra,
Inc. (a nonprofit organization), which comprise the statement of assets and net assets —
modified cash basis of as of June 30, 2014 and the related statements of support, revenues,
expenses, and changes in net assets — modified cash basis and the statement of functional
expenses — modified cash basis for the year then ended and the related notes to the financial
statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with the modified cash basis of accounting as described in Note 1;
this includes determining that the modified cash basis of accounting is an acceptable basis for
the preparation of the financial statements in the circumstances. Management is also
responsible for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
1
Basis for Qualified Opinion
As more fully described in Note 2 to the financial statements, in fiscal year 2013, the
Organization recorded a receivable for grant revenue awarded in fiscal year 2013, but received
in fiscal year 2014. As a result, the cash received for this grant is not reflected as revenue in
the current year financial statements. In our opinion, the modified cash basis of accounting
requires that amounts received during the current year be included in revenue for the period
ending June 30, 2014.
Qualified Opinion
In our opinion, except for the effects of excluding the grant revenue as discussed above in the
Basis for Qualified Opinion paragraph, the financial statements referred to in the first paragraph
present fairly, in all material respects, the statement of assets and net assets of Carmel
Symphony Orchestra, Inc. as of June 30, 2014, and the related statements of support,
revenues, expenses, and changes in net assets for the years then ended in accordance with the
modified cash basis of accounting described in Note 1.
Basis of Accounting
We draw attention to Note 1 of the financial statements, which describes the basis of
accounting. The financial statements are prepared on the modified cash basis of accounting,
which is a basis of accounting other than accounting principles generally accepted in the United
States of America. Our opinion is not modified with respect to that matter.
�.LP
Sikich LLP
Indianapolis, Indiana
January 16, 2015
2
CARMEL SYMPHONY ORCHESTRA, INC.
STATEMENT OF ASSETS AND
NET ASSETS — MODIFIED CASH BASIS
JUNE 30, 2014
ASSETS
CURRENT ASSETS:
Cash
Total Current Assets
OTHER ASSETS:
Beneficial interest in assets held by others
Total Other Assets
NET ASSETS
$ 288,792
288,792
73,612
73,612
$ 362,404
NET ASSETS:
Unrestricted $ 288,792
Permanently restricted 73,612
Total Net Assets 362,404
$ 362,404
See accompanying notes to the financial statements
3
CARMEL SYMPHONY ORCHESTRA, INC.
STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN NET ASSETS - MODIFIED CASH BASIS
JUNE 30, 2014
Permanently
Unrestricted Restricted Total
SUPPORT AND REVENUES:
Contributions $ 92,823 $ - $ 92,823
Indiana Arts Commission grant 12,912 - 12,912
City of Carmel grant 190,240 - 190,240
Concert and performance income 182,242 182,242
Corporate sponsorship 81,500 - 81,500
Program advertisements 19,115 - 19,115
In -kind contributions 126,175 - 126,175
Rental income 4,000 - 4,000
Net change in beneficial interest in 4,388 5,603 9,991
assets held by others
Music sales 1,274 - 1,274
Interest income 126 - 126
Miscellaneous income 2,654 - 2,654
Total Support and Revenues 717,449 5,603 723,052
EXPENSES:
Program services 597,996 - 597,996
Management and
general services 126,951 126,951
Total Expenses 724,947 724,947
CHANGE IN NET ASSETS (7,498) 5,603 (1,895)
NET ASSETS, beginning of year 296,290 68,009 364,299
NET ASSETS, end of year $ 288,792 $ 73,612 $ 362,404
See accompanying notes to the financial statements
4
CARMEL SYMPHONY ORCHESTRA, INC.
STATEMENT OF FUNCTIONAL EXPENSES - MODIFIED CASH BASIS
JUNE 30, 2014
Management
Program and General Total
Services Services Expenses
Salaries $ 235,144 $ 24,600 $ 259,744
Contract services - musicians 133,948 - 133,948
Payroll taxes 28,015 1,867 29,882
Professional services 7,169 10,217 17,386
Concert expenses 94,892 - 94,892
Young artist awards 2,450 2,450
Advertising and marketing 51,872 - 51,872
Program book sales 2,312 2,312
Office supplies 14,665 14,665
Postage and delivery 6,303 6,303
Travel and entertainment 4,745 4,745
Meetings - 15,362 15,362
Licenses and permits 2,624 - 2,624
Due and subscriptions - 2,515 2,515
Printing and reproduction - 33,961 33,961
Insurance 5,045 5,045
Occupancy 39,570 2,631 42,201
Community service 1,250 1,250
Bank charges - 2,342 2,342
N6scellaneous 1,448 1,448
$ 597,996 $ 126,951 $ 724,947
See accompanying notes to the financial statements
5
CARMEL SYMPHONY ORCHESTRA, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business - Carmel Symphony Orchestra, Inc. (the "Organization ") is a non - profit
organization organized in the state of Indiana and is primarily engaged to provide orchestral
experience for all age groups, to train younger musicians, to create an interest in musical
careers by performing in schools and in public concerts and to generally entertain and improve
the cultural experiences available to all citizens in Hamilton County and nearby areas.
Basis of Accounting - The accompanying financial statement have been prepared on the
modified cash basis, which is a comprehensive basis of accounting other than accounting
principles generally accepted in the United States of America. This basis differs from generally
accepted accounting principles primarily because the Organization had not recognized
receivables for dues and other revenues, accounts payable to vendors, and deferred revenues,
and their related effects on the change in unrestricted net assets. Additionally, the Organization
does not capitalize and depreciate purchases of furniture, equipment and music collections.
Except for the modification discussed below, financial transactions are recorded when the actual
cash transactions occur irrespective of when revenue is earned or expense obligations are
incurred.
The Organization has modified the cash basis of accounting to recognize investments at fair
value in the statements of assets and net assets — modified cash basis with the related
unrealized gain (loss) reflected in the statements of revenues and expense - modified cash basis.
Basis of Presentation - As required by Financial Statement Presentation Disclosure Topic of
FASB ASC, the Organization is required to report information regarding its financial position and
activities according to three classes of net assets: unrestricted net assets, temporarily restricted
net assets, and permanently restricted net assets.
Net Assets
The financial statements report amounts separately by class of net assets:
Unrestricted net assets - Unrestricted amounts are those which are currently available
by the Board for use in the Organization's activities.
Temporarily restricted net assets - Temporarily restricted net assets are those which
have donor - imposed restrictions as to time, purpose or both. The Organization had no
temporarily restricted net assets at June 30, 2014.
Permanently restricted net assets - Permanently restricted amounts are those which
are subject to donor - imposed stipulations that require that they be maintained
permanently by the Organization. Generally, the donors of these assets permit the use
of all or part of the income earned on the related investments for general or specific
purposes. Permanently restricted net assets consist of endowment -type funds and
investments that are required by the donors to be invested in perpetuity.
6
Carmel Symphony Orchestra, Inc.
Notes to Financial Statements (continued)
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Public Support and Revenue - Contributions are generally available for unrestricted use
unless specifically restricted by the donor. Grants and other contributions of cash and other
assets are reported as temporarily restricted support if they are received with donor stipulations
that limit the use of the donated assets. When a donor restriction expires, that is, when a
stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net
assets are reclassified to unrestricted net assets and reported in the statement of activities as
net assets released from restrictions.
Contributions of donated services that create or enhance non - financial assets or that require
specialized skills, are provided by individuals possessing those skills and would typically need to
be purchased if not provided by donation, are recorded at their fair values in the period
received.
Corporate Sponsorships — The Organization's five sponsorship levels are: supporting sponsor
- $1,000; associate sponsor - $3,000; guest artist sponsor - $5,000; concert sponsor - $10,000;
and season sponsor - $50,000. Depending on the level of sponsorship, the corporate sponsor
receives various year -round benefits. The Organization received $81,500 in corporate
sponsorships for the year ended June 30, 2014.
Of this amount, $35,000 is related to the Organization's three year sponsorship agreement with
Indiana University (IU) Health North. Under the terms of this agreement, IU Health North will
contribute a cash contribution of $17,500 per year and in return the Organization will provide IU
Health North with a package of benefits valued at $9,680. In 2014 the Organization received
$35,000 which represents the installment for year 1 and an advance for year 2 payment from IU
Health North.
Cash and Cash Equivalents - For purposes of the statement of cash flows, the Organization
considers all investments with a maturity of three months or Tess to be cash equivalents.
In the normal course of business, the Organization may maintain cash held at financial
institutions in excess of the Federal Deposit Insurance Corporation (FDIC) limit of $250,000.
Contributed Materials and Services - Contributed services are recognized as contributions in
accordance with Contributions Disclosure Topic of FASB ASC, if the services (a) create or
enhance non - financial assets or (b) require specialized skills, are performed by people with
those skills, and would otherwise be purchased by the Organization. Contributions of tangible
assets are recognized at fair value when received. The amounts reflected in the accompanying
financial statements as in -kind contributions are offset by like amounts included in expenses or
additions to fixed assets.
7
Carmel Symphony Orchestra, Inc.
Notes to Financial Statements (continued)
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Contributed Materials and Services (Continued) - The Organization received contributed
professional services related to rehearsal space, volunteer musicians, accounting duties,
printing services, graphic design, and payroll services during the year ending June 30, 2014,
with a fair market value on the dates of donation of $126,175.
Non - musician volunteers provide program and fund - raising services throughout the year that
are not recognized as contributions in the financial statements since they do not meet the
recognition criteria under Contributions Disclosure Topic of FASB ASC.
Advertising Costs - The Organization expenses advertising as paid. Advertising expense was
$51,872 for the year ended June 30, 2014.
Estimates - Management uses estimates and assumptions in preparing financial statements.
Those estimates and assumptions affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities at the date of the financial statements, and the
reported amounts of revenues, expenses, gains, losses, and other changes in net assets during
the reporting period. It is at least reasonably possible that the significant estimates used will
change within the next year. Actual results could differ from those estimates.
Income Taxes - The Organization is a not - for - profit organization exempt from income taxes
under Section 501(c)(3) of the Internal Revenue Code. The Organization is not considered to be
a private foundation. Accordingly, no provision for income taxes has been reflected in the
Organization's financial statements.
The Organization has adopted the provisions of Uncertain Tax Positions Disclosure Topics of
FASB ASC, which prescribes a recognition threshold of more - likely- than -not to be sustained
upon examination. Measurement of the tax uncertainty occurs if the recognition threshold has
not been met. This guidance also addresses de- recognition, classification, interest and
penalties, disclosure, and transition. In the normal course of business, the Organization is
subject to examination by taxing authorities. The Organization's tax returns for years
subsequent to fiscal 2010 are open, by statute, for review by authorities. However, at present,
there are no ongoing income tax audits or unresolved disputes with the various tax authorities
that the Organization currently files or has filed with.
NOTE 2 — City of Carmel Grant
During the year ended June 30, 2013 the Organization was awarded a $205,000 grant from the
City of Carmel. The grant represents a significant portion of the Organization's support and had
typically been received before the Organization's fiscal year end. However, in 2013 the City of
Carmel did not issue payment of awards until after June 30, 2013. The Organization elected to
record a receivable for the $205,000 awarded and recognize the revenue for the period ending
June 30, 2013. The Organization reported the revenue for the period ending June 30, 2013 to
be consistent with prior periods and reflective of when the money was expended. As a result,
grant revenue received from the City of Carmel during fiscal year 2014 excludes the $205,000
that was recorded as a receivable and revenue in fiscal year 2013.
8
Carmel Symphony Orchestra, Inc.
Notes to Financial Statements (continued)
NOTE 3 — BENEFICIAL INTEREST IN ASSETS HELD BY OTHERS
The Organization has a donor - designated endowment (the Endowment) held in pooled
investment funds with Central Indiana Community Foundation (the Foundation).
Should the purpose for which the Endowment at the Foundation was created ever become
obsolete or incapable of fulfillment, or should the Organization cease to exist, the Foundation
will disperse any distributions from the Endowment to a similar charity comparable to the
Organization for purposes as similar as possible to those set forth in the Organization's
agreement with the Foundation.
The Endowment is invested by and held at the Foundation. The investment policy governing
the underlying investments is established by the Board of the Foundation. Distributions from the
Endowment are committed, granted or expended in accordance with the current spending policy
of the Foundation.
The Organizations' agreement with the Foundation calls for 5% of the calendar year -end fund
balance to be available for distribution to the Organization. 5% of the Endowment's December
31, 2013 balance was $3,680 and is considered an increase to unrestricted net assets since
these funds were expended by the Organization in the current year. Investment fees are paid
out by the fund. In the current year, investment fees of $708 were paid using current
Endowment earnings and are included as an addition to unrestricted net assets during the year.
The remaining Endowment earnings of $5,063 are added to the Endowment balance and
permanently restricted assets.
The Organization reports its beneficial interest in the assets of the Foundation at fair value. The
change in fair value at each reporting date is reflected in the Statement of Revenues, Expenses,
and Changes in Net Assets — Modified Cash Basis, as an increase or decrease in the value of
the beneficial interest.
Activity in the donor - designated endowment fund for the year ended June 30, 2014 was as
follows:
2014
Beginning balance, July 1 $ 68,009
Earnings 9,991
Subtotal 78,000
5% of 12/31/13 fund balance distribution (3,680)
Investment fees (708)
Ending balance, June 30 $ 73,612
9
Carmel Symphony Orchestra, Inc.
Notes to Financial Statements (continued)
NOTE 4 — OPERATING LEASE
The Organization currently leases a copier for $117 per month with a monthly maintenance fee
of $73. The lease term is for 5 years and expires on August 31, 2018. Lease expense was
$3,850 for the year ended June 30, 2014. The pervious copier lease expired on August 31,
2013 and called for payments of $465 a month.
Future minimum lease payments are as follows:
Year Amount
2015 $ 2,284
2016 2,284
2017 2,284
2018 2,284
2019 498
$ 9,634
NOTE 5 — BARTERING TRANSACTION
The Organization leases office space in monthly installments of $3,378. The lease term is for
five years with the option to renew the lease for an additional five year term at its expiration date
of March 1, 2018.
In lieu of annual rent of $40,536, the landlord accepts in exchange the following items measured
at their fair market values: 700 performance vouchers - $22,918; a two page color ad in the
program book - $1,700; a concert sponsorship - $10,000; 6 season tickets to Box P - $1,918;
and the use of the Founders Room for at least two concerts per year - $4,000. This $40,536
rent expense is included in occupancy expense on the Statement of Functional Expenses —
Modified Cash Basis.
NOTE 6 — SUBSEQUENT EVENT
In preparing these financial statements, the Organization has evaluated subsequent events and
transactions for potential recognition or disclosure through January 16, 2015, the date the
financial statements were available to be issued.
10