2024-01-15T11:53:49-06:00 2023-06-30 261659234 CW ASSOCIATES CPAS 700 BISHOP STREET SUITE 1040 HONOLULU HI 96813 990 2022-07-01 990115665 THE FRIENDS OF IOLANI PALACE FRIE 8085220822 PO BOX 2259 HONOLULU HI 968042259 PAULA LA GUANZON EXECUTIVE DIRECTOR 8085220822 2024-01-15 1 PAULA LA GUANZON 999009999 0 RODNEY M HARANO P00389596 8085311040 2024-01-15 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z PAULA LA GUANZON PO BOX 2259 HONOLULU HI 968042259 7997857 0 X WWW.IOLANIPALACE.ORG X 1966 HI EDUCATION, RESEARCH, RESTORATION, REFURBISHMENT AND OPERATION FOR THE IOLANI PALACE. 19 19 51 79 0 0 1811499 4938257 1581997 2216210 683 24677 184834 209155 3579013 7388299 0 1000 0 0 1228778 1742084 0 0 166165 831000 1155553 2059778 2898637 1519235 4489662 3887957 8400426 788159 866267 3099798 7534159 X TO PRESERVE, RESTORE, INTERPRET, SHARE, AND CELEBRATE THE UNIQUE CULTURAL, HISTORICAL, AND SPIRITUAL QUALITIES OF `IOLANI PALACE AND ITS GROUNDS FOR THE BENEFIT OF NATIVE HAWAIIANS, THE PEOPLE OF HAWAI`I, AND THE WORLD. 0 0 1947047 1000 2152468 MUSEUM OPERATIONS - VISITORS FROM AROUND THE WORLD VISIT THE PALACE. AUDIO TOURS ARE AVAILABLE IN ENGLISH, FRENCH, GERMAN, JAPANESE, KOREAN, MANDARIN CHINESE, SPANISH AND ITALIAN. WE ALSO OFFER A HAWAIIAN-LANGUAGE AUDIO TOUR, PRIMARILY FOR STUDENTS IN HAWAIIAN LANGUAGE IMMERSION SCHOOLS. OUR VISITOR COUNT TOTAL WAS 103,815 FOR THE REPORTING YEAR.WE DESIGNATE THE SECOND SUNDAY OF EVERY MONTH AS "KAMA'AINA SUNDAY," WHERE UP TO 500 RESIDENTS RECEIVE A SELF-GUIDED AUDIO TOUR OF THE PALACE WITHOUT HAVING TO PAY AN ADMISSION FEE. THE MUSEUM SERVES A CONSIDERABLE NUMBER OF FOREIGN DIGNITARIES WHOSE COMPLIMENTARY VISITS TO THE PALACE ARE ARRANGED BY THEIR RESPECTIVE CONSULS GENERAL IN HONOLULU. THE PALACE HAS ALSO WELCOMED IN THE PAST THE HEAD OF STATE FOR THE INDEPENDENT NATION OF SAMOA, THE KING OF AOTEAROA (NEW ZEALAND), THE KING OF TONGA, THE VICE PREMIER OF THE STATE COUNCIL FOR THE PEOPLE'S REPUBLIC OF CHINA, GOVERNORS OF VARIOUS PREFECTURES IN JAPAN, AND HIS HOLINESS THE DALAI LAMA.THE PALACE OFFERS AN EDUCATIONAL PROGRAM THAT FOCUSES ON HAWAIIAN HISTORY AND THE LAST MONARCH OF THE KINGDOM OF HAWAI'I. WE ARE COMMITTED TO PROVIDING STUDENTS WITH A WELL-ROUNDED EDUCATIONAL EXPERIENCE THAT COMBINES HISTORY AND CULTURE. THERE WERE 5783 STUDENT VISITORS THIS YEAR. PALACE SHOPS - PRIMARILY SELLING PRODUCTS DERIVED FROM OR RELATED TO IOLANI PALACE HISTORY, ALONG WITH ITEMS FOR THE CONVENIENCE OF VISITORS. 1947047 1 1 0 0 0 0 0 1 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 37 0 51 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 19 19 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 HI X PAULA LA GUANZON 8085220822 364 S KING STREET HONOLULU HI 96813 BILLY PIEPER PRESIDENT 2.00 X X 0 0 0 ASHLEY ONO FIRST VICE PRESIDENT 2.00 X X 0 0 0 BRIAN KEALOHA SECOND VICE PRESIDENT 2.00 X X 0 0 0 LEILANI WILLIAMS-SOLOMON TREASURER 2.00 X X 0 0 0 KUHIO LEWIS SECRETARY 2.00 X X 0 0 0 ISAIAH AINA DIRECTOR 2.00 X 0 0 0 GERARD AKAKA DIRECTOR 2.00 X 0 0 0 DONNE DAWSON DIRECTOR 2.00 X 0 0 0 ELENA FARDEN DIRECTOR 2.00 X 0 0 0 ALLEN HOE DIRECTOR 2.00 X 0 0 0 MALCOLM INAMINE DIRECTOR 2.00 X 0 0 0 RICHARD KENNEDY DIRECTOR 2.00 X 0 0 0 PATTI LOOK DIRECTOR 2.00 X 0 0 0 JAMES MONIZ DIRECTOR 2.00 X 0 0 0 BRENNON MORIOKA DIRECTOR 2.00 X 0 0 0 ALISA ONISHI DIRECTOR 2.00 X 0 0 0 MAHINA PAISHON-DUARTE DIRECTOR 2.00 X 0 0 0 KAULANA PARK DIRECTOR 2.00 X 0 0 0 RON WALKER DIRECTOR 2.00 X 0 0 0 PAULA GUANZON EXECUTIVE DIRECTOR 40.00 X 118852 0 10614 118852 0 10614 1 0 0 0 0 87832 1950 2420257 2428218 4938257 PALACE TOURS 900099 2216210 2216210 2216210 24798 24798 31753 4357 27396 27396 27396 191 312 -121 -121 -121 307862 1950 62361 245501 245501 477525 542528 -65003 -65003 MISCELLANEOUS INCOME 900099 1261 1261 1261 7388299 2152468 0 297574 1000 1000 161511 161511 1223964 1003521 120281 100162 237264 181227 37949 18088 119345 87133 23515 8697 54542 54542 190 190 200164 49190 150974 42994 42994 108570 91823 13386 3361 277310 235973 30521 10816 7488 4357 3131 13891 1058 11001 1832 13981 13981 41261 41261 21068 17543 2508 1017 MAINTENANCE AND REPAIR 267918 201125 53563 13230 MERCHANT SERVICES FEES 49384 45158 4226 TAXES AND FEES 19386 19386 DUES AND SUBSCRIPTIONS 16226 8392 3098 4736 21180 19547 1633 2898637 1947047 785425 166165 3366646 5252669 50164 1673273 201756 1126325 75611 128862 55370 572666 468965 85737 103701 108043 8942 0 51284 3887957 8400426 168583 211072 65683 104071 44618 0 509275 499840 0 51284 788159 866267 X 2790347 5868675 309451 1665484 3099798 7534159 3887957 8400426 X 4489662 -375 -54926 X X 0 1 X 1 0 X 1299238 1552429 800512 1811499 4938257 10401935 1299238 1552429 800512 1811499 4938257 10401935 1908181 8493754 2458 5759 409 56551 65177 1606 1336 410186 7143 1261 421532 10888644 10334448 0.78010 0.88360 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER REVENUE - 2018 AMOUNT: $ 1,606. 2019 AMOUNT: $ 1,336. 2020 AMOUNT: $ 410,186. 2021 AMOUNT: $ 7,143. 2022 AMOUNT: $ 1,261. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X X X 0 377698 340851 36847 194968 128114 66854 103701 OPERATING LEASE LIABILITY 51284 51284 X 7068906 -375 -375 7069281 190 318828 319018 7388299 3445332 546885 546885 2898447 190 190 2898637 PART III, LINE 1A: THE HISTORICAL COLLECTION CONSISTS OF ORIGINAL FURNISHINGS AND OTHER ITEMS FOR THE IOLANI PALACE COMPLEX. THE COLLECTION IS CONTINUOUSLY CATALOGED, CARED FOR AND PRESERVED. THE COLLECTION ITEMS, WHICH WERE ACQUIRED THROUGH PURCHASES AND CONTRIBUTIONS, ARE NOT RECOGNIZED IN THE ACCOMPANYING FINANCIAL STATEMENTS BECAUSE THEY HAVE NO ALTERNATIVE USE. PURCHASES OF COLLECTION ITEMS ARE RECORDED AS DECREASES IN UNRESTRICTED NET ASSETS IN THE YEAR ACQUIRED OR AS TEMPORARILY OR PERMANENTLY RESTRICTED NET ASSETS IF PURCHASED WITH DONOR-RESTRICTED FUNDS. CONTRIBUTED COLLECTION ITEMS ARE NOT REFLECTED IN THE FINANCIAL STATEMENTS. PROCEEDS FROM THE DISPOSITION OF COLLECTION ITEMS, IF ANY, ARE REFLECTED AS INCREASES IN THE APPROPRIATE NET ASSET CLASSES. PART III, LINE 4: THERE ARE OVER 6,000 OBJECTS IN THE COLLECTIONS AT 'IOLANI PALACE. THEY INCLUDE FURNITURE, DECORATIVE OBJECTS, HOUSEHOLD ITEMS AND PERSONAL FURNISHINGS OF THE HAWAIIAN ROYAL FAMILY. THE COLLECTING FOCUS IS OBJECTS THAT WERE PRESENT IN THE PALACE FROM THE TIME IT WAS BUILT IN 1882 TO WHEN THE MONARCHY WAS OVERTHROWN IN 1893. PERIOD SUBSTITUTES ARE USED TO COMPLETE THE FURNISHINGS OF PERIOD ROOMS, WHEN THE ORIGINAL ARTIFACTS ARE NOT AVAILABLE. OBJECTS RECEIVED AS STATE PRESENTATION GIFTS FROM OTHER MONARCHS AND GOVERNMENTS SIGNIFY INTERNATIONAL RECOGNITION OF HAWAII'S INDEPENDENCE AND THE BONDS OF FRIENDSHIP THAT EXISTED BETWEEN HAWAII AND OTHER NATIONS AROUND THE WORLD. OTHER ITEMS ARE IMPORTANT AS ANCIENT INHERITED SYMBOLS OF CHIEFLY AUTHORITY THAT SHOWCASE THE SKILLS OF NATIVE HAWAIIAN ARTISANS. THE PALACE MAINTAINS ONE OF THE FINEST COLLECTIONS OF AMERICAN GOTHIC REVIVAL FURNITURE MANUFACTURED BY THE A.H. DAVENPORT COMPANY OF BOSTON. THE ORIGINAL ORDER TO FURNISH THE NEW PALACE IN 1882 CONSISTED OF OVER 200 PIECES. TODAY THERE ARE 200 PIECES OF A.H. DAVENPORT FURNITURE AT THE PALACE FROM THAT ORDER WHICH ARE ON LOAN FROM THE STATE OF HAWAII, BISHOP MUSEUM, OR HAVE BEEN DONATED TO IOLANI PALACE OR PURCHASED FOR THE COLLECTION. BI-CULTURAL OBJECTS CRAFTED OUT OF NATIVE HARDWOODS ACCORDING TO WESTERN DESIGNS AND CHINA TRADE ITEMS IN THE COLLECTIONS ARE NOTEWORTHY IN ILLUSTRATING THE CULTURAL DIVERSITY AND TRADE THAT EXISTED IN NINETEENTH CENTURY HAWAII. OVER 1,000 PIECES OF ORIGINAL CHINA AND GLASSWARE HAVE RETURNED TO THE PALACE. THERE ARE OVER 1,000 PIECES OF ORIGINAL PALACE STATIONERY, PHOTOGRAPHS, INVITATIONS AND MENUS. OVER 100 ORIGINAL TEXTILES ARE IN THE COLLECTION. PAINTINGS INCLUDE WORKS BY PROMINENT ARTISTS WORKING IN HAWAII IN THE LATE NINETEENTH CENTURY, SUCH AS WILLIAM COGSWELL, JULES TAVERNIER, PAUL PETROVITS, CHARLES FURNEAUX, AND ROBERT BARNFIELD. THE PALACE COLLECTIONS OF FURNITURE AND FURNISHINGS ARE USED THROUGHOUT THE BUILDING TO RECREATE PERIOD ROOM INTERIORS OF THE HAWAIIAN MONARCHY ERA. COLLECTION PIECES ARE ALSO EXHIBITED WITH INTERPRETIVE TEXT IN MODERN GALLERY SPACES IN THE PALACE BASEMENT. THE COLLECTION IS AN INVALUABLE FOR EDUCATING VISITORS FROM HAWAII AND AROUND THE WORLD. PART X, LINE 2: U.S. GAAP REQUIRES UNCERTAIN TAX POSITIONS TO BE RECOGNIZED IN THE FINANCIAL STATEMENTS IF THEY ARE MORE LIKELY THAN NOT TO FAIL UPON REGULATORY EXAMINATION. MANAGEMENT HAS EVALUATED THE FRIENDS' TAX POSITIONS AS OF JUNE 30, 2023 AND 2022 AND FOR THE YEARS THEN ENDED AND DETERMINED THAT THE FRIENDS HAD NO UNCERTAIN TAX POSITIONS REQUIRED TO BE REPORTED IN ACCORDANCE WITH U.S. GAAP. THE FRIENDS IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS IN PROGRESS FOR ANY OPEN TAX PERIODS. PART XI, LINE 4B - OTHER ADJUSTMENTS: PALACE SHOP COST OF GOODS SOLD -542,528. INCREASE IN NET ASSETS WITH DONOR RESTRICTIONS 865,713. DIRECT RENTAL EXPENSES -4,357. PART XII, LINE 2D - OTHER ADJUSTMENTS: PALACE SHOP COST OF GOODS SOLD 542,528. DIRECT RENTAL EXPENSES 4,357. KINGS BIRTHDAY 309812 1950 307862 14653 20365 1500 25843 309812 1950 307862 14653 20365 1500 25843 62361 245501 X 38 0 0 0 0 PART I, LINE 33: A ZERO AMOUNT WAS REPORTED ON FORM 990, PART VIII, STATEMENT OF REVENUE, LINE 1G, BECAUSE THE ORGANIZATION DID NOT CAPITALIZE ITS HISTORICAL COLLECTIONS, AS ALLOWED UNDER SFAS 116 (ASC 958-360-25). FORM 990, PART VI, SECTION B, LINE 11B FOIP PROVIDES INFORMATION NECESSARY TO COMPILE DATA TO COMPLETE FORM 990 TO CW ASSOCIATES, AUDITOR AND PREPARER FOR FORM 990. CW ASSOCIATES PROVIDES FOIP WITH A DRAFT OF FORM 990. FOIP CFO REVIEWS ALL ITEMS FOR ACCURACY. CEO PERFORMS OVERALL REVIEW TO ALL DESCRIPTIONS AND ANSWERS. THE BOARD TREASURER CONDUCTS A FINAL REVIEW BEFORE THE FILING. FORM 990, PART VI, SECTION B, LINE 12C BOARD AND STAFF MEMBERS ARE COVERED BY THE CONFLICT OF INTEREST POLICY. BOARD MEMBERS MUST ANNUALLY DISCLOSE, BUSINESS AND ORGANIZATIONAL INTEREST AND AFFILIATIONS THAT MAY BE CONSTRUED AS RELATED TO THE FRIENDS. WHENEVER THERE IS A POTENTIAL OR ACTUAL CONFLICT, IT MUST BE MADE A MATTER OF RECORD AND THE DIRECTOR MUST ABSTAIN FROM A VOTE. SOMETIMES THE CONFLICT MAY REQUIRE THE DIRECTOR'S RESIGNATION. THE BOARD WOULD RESOLVE CONFLICTS OF INTEREST, INCLUDING APPROVAL OF ANY LOAN OF OBJECTS TO EXHIBIT. IF A STAFF MEMBER IS UNABLE TO RESOLVE A POTENTIAL CONFLICT OF INTEREST, IT MUST BE BROUGHT TO THE ATTENTION OF THE SUPERVISOR OR EXECUTIVE DIRECTOR FOR RESOLUTION. FORM 990, PART VI, SECTION B, LINE 15A THE EXECUTIVE DIRECTOR'S COMPENSATION WAS INITIALLY DETERMINED BY THE BOARD OF DIRECTORS USING COMPARATIVE DATA INCLUDING BUT NOT LIMITED TO THE PUBLISHED COMPENSATION OF OTHER MUSEUM EXECUTIVE DIRECTORS IN HAWAII. SUBSEQUENT ADJUSTMENTS ARE MADE WITH CONSIDERATIONS TO ECONOMIC FACTORS, FINANCIAL HEALTH OF THE ORGANIZATION, AND PERFORMANCE EVALUATIONS. ANY INCREASE IN COMPENSATION OF THE EXECUTIVE DIRECTOR IS DOCUMENTED IN THE BOARD MEETING MINUTES AND PERSONNEL FILE. THE MOST RECENT ADJUSTMENT TOOK PLACE IN AUGUST 2023. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: PRIOR PERIOD ADJUSTMENT -54,926. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PREVIOUS YEAR.