2024-07-12T12:13:43-05:00 2023-08-31 991856619 GRANT THORNTON ADVISORS LLC 2001 MARKET STREET SUITE 700 PHILADELPHIA PA 19103 990 2022-09-01 231501159 ACADEMY OF MUSIC OF PHILADELPHIA INC ACAD 2158931900 ONE SOUTH BROAD STREET 14TH FLOOR PHILADELPHIA PA 19107 MARIO MESTICHELLI BD MEMBER/TREASURER 2158931900 2024-07-12 1 MARIO MESTICHELLI 999009999 1 RUSSLEE ARMSTRONG P00288383 2155614200 3 AAL1 IAL1 2022 2023-04-26 12:10:37Z MATIAS TARNOPOLSKY ONE SOUTH BROAD STREET 14TH FLOOR PHILADELPHIA PA 19107 5504710 0 X WWW.ENSEMBLEARTSPHILLY.ORG X 1956 FL TO RAISE FUNDS TO RESTORE AND MAINTAIN THE 166-YEAR-OLD ACADEMY OF MUSIC. 18 15 0 55 0 0 2417145 5221433 0 0 0 0 14867 -342929 2432012 4878504 20000 20000 0 0 561212 561369 0 0 294926 3422164 2951556 4003376 3532925 -1571364 1345579 29102895 27513081 196590 274281 28906305 27238800 X THE ACADEMY'S PRIMARY EXEMPT PURPOSE IS TO RAISE FUNDS THROUGH THE RESTORATION AND PRESERVATION FUND TO RESTORE AND MAINTAIN THE 166-YEAR-OLD ACADEMY OF MUSIC, THE OLDEST KNOWN CONTINUOUSLY OPERATING OPERA HOUSE IN THE UNITED STATES. 0 0 235366 20000 0 THE ORGANIZATION'S PRIMARY PROGRAM SERVICE ACTIVITY IS TO RAISE FUNDS FOR THE RESTORATION OF THE ACADEMY OF MUSIC BUILDING THROUGH SPECIAL EVENTS AND A CAPITAL CAMPAIGN PROGRAM. COMBINED PROCEEDS ARE USED TO FUND NUMEROUS RESTORATION PROJECTS AS APPROVED BY THE ACADEMY BOARD. THE ACADEMY OF MUSIC BUILDING HAS BEEN DESIGNATED AS A NATIONAL HISTORIC LANDMARK AND THEREFORE ITS UPKEEP AND MAINTENANCE IS THE ORGANIZATION'S PRIMARY CONCERN. FOR THE YEAR ENDED AUGUST 31, 2023, THE RESTORATION PROJECTS INCLUDED RESTORATION OF THE BALCONY, AND FACADE LIGHTING UPGRADES. IN ADDITION, THE ACADEMY CONTINUED ITS MULTI-YEAR CAPITAL RENOVATIONS PROJECT VIA THE PILOT PROGRAM WHICH CONSISTED OF EVALUATION, ASSESSMENT AND DESIGN WORK. (CONTINUED IN SCH O)(CONTINUED):THESE PROGRAM SERVICE ACTIVITY EXPENDITURES ARE REPORTED AS PART OF FIXED ASSETS IN SCHEDULE D, PART VI. 235366 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 0 0 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 X 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 X 18 15 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 0 0 0 AL AK AZ AR CA CT DC FL IL KS KY LA ME MD MA MI MN MO MS NH NJ NY NC ND OH OK OR PA RI SC TN UT VA WA WV WI X X MARIO MESTICHELLI 2158931900 ONE SOUTH BROAD STREET 14TH FLOOR PHILADELPHIA PA 19107 X MATIAS TARNOPOLSKY BD MEMBER (PRESIDENT-POA) 5.00 45.00 X X 0 910907 67456 RYAN FLEUR BD MEMBER/SECRETARY (EXEC-DIR POA) 5.00 45.00 X X 0 383765 54416 MARIO MESTICHELLI BD MEMBER/TREASURER (CFO-POA) 5.00 45.00 X X 0 319970 53116 CAROLINE B ROGERS CHAIR 10.00 6.00 X X 0 0 0 ADELE K SCHAEFFER CHAIR EMERITUS 2.00 2.00 X X 0 0 0 RALPH W MULLER BOARD MEMBER (CO-CHAIR POA) 5.00 15.00 X X 0 0 0 MICHAEL ZISMAN BOARD MEMBER (CO-CHAIR POA) 5.00 15.00 X X 0 0 0 KATE ALLISON BOARD MEMBER 2.00 0.00 X 0 0 0 JAMES P BRANDAU BOARD MEMBER 2.00 2.00 X 0 0 0 LISA BETTINGER-BUCKINGHAM BOARD MEMBER 2.00 0.00 X 0 0 0 HARRY EDWARD HILL III BOARD MEMBER 2.00 0.00 X 0 0 0 LINDA FYNES SIEGFRIED BOARD MEMBER 2.00 0.00 X 0 0 0 ANNE F HAMILTON BOARD MEMBER 2.00 0.00 X 0 0 0 SCOTT S JOHNSON BOARD MEMBER 2.00 0.00 X 0 0 0 TERESA C KENNY BOARD MEMBER 2.00 0.00 X 0 0 0 BRUCE G LETO BOARD MEMBER 2.00 2.00 X 0 0 0 JOHN H MCFADDEN BOARD MEMBER 2.00 2.00 X 0 0 0 JOHN R SALER BOARD MEMBER 2.00 0.00 X 0 0 0 0 1614642 174988 0 0 1 0 HAVERSTICK-BORTHWICK COMPANY 400 STENTON AVENUE PLYMOUTH MEETING PA 19462 CONSTRUCTION 266731 ELLIOTT-LEWIS CORPORATION 2900 BLACK LAKE PLACE PHILADELPHIA PA 19154 CONSTRUCTION 184698 2 599846 1059897 3561690 91992 5221433 283277 599846 626206 -342929 -342929 4878504 0 0 -342929 X 20000 20000 559780 330000 229780 1589 1589 550 550 30539 30539 61590 54090 7500 9452 9452 383297 212036 171261 2413663 2413663 1491 1491 FUNDRAISING CAMPAIGN 39994 39994 MISCELLANEOUS EXPENSE 7650 7650 BAD DEBT EXPENSE 3330 3330 3532925 235366 3002633 294926 2694910 3262994 570029 181972 4762 5100 88337477 64274462 25833194 24063015 29102895 27513081 50462 88018 146128 186263 196590 274281 X 28364305 27096800 542000 142000 28906305 27238800 29102895 27513081 X 1345579 -3013084 X X 0 1 X 1 0 X X X 1 THE PHILADELPHIA ORCHESTRA ASSOCIATION 231352289 10 1 297667 0 1 297667 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 1 1 1 1 1 1 0 1 1 629610 629610 86712405 63281197 23431208 995462 993265 2197 24063015 DUE TO AFFILIATE 139144 POSTRETIREMENT BENEFIT OBLIGATION 47119 186263 X 6703137 22500 1173387 1195887 5507250 -628746 -628746 4878504 4181631 22500 626206 648706 3532925 0 3532925 PART X, LINE 2: FIN 48 (ASC 740) FOOTNOTE UNDER PROVISIONS OF THE INTERNAL REVENUE CODE, SECTION 501(C)(3), AND THE APPLICABLE INCOME TAX REGULATIONS OF PENNSYLVANIA, THE ASSOCIATION IS EXEMPT FROM TAXES ON INCOME OTHER THAN UNRELATED BUSINESS INCOME. THE ACADEMY RECOGNIZES OR DERECOGNIZES A TAX POSITION BASED ON A "MORE LIKELY THAN NOT" THRESHOLD. THIS APPLIES TO POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE ACADEMY DOES NOT BELIEVE ITS CONSOLIDATED FINANCIAL STATEMENTS INCLUDE ANY MATERIAL UNCERTAIN TAX POSITIONS. INTERNAL REVENUE SERVICE REGULATIONS STIPULATE TAX YEARS ARE OPEN FOR THREE YEARS FROM THE DATE OF FILING AND REMAIN SUBJECT TO EXAMINATION. PART XI, LINE 2D - OTHER ADJUSTMENTS: INVESTMENT GAIN - AOM ENDOWMENT FUND 1,173,387. PART XI, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING DIRECT EXPENSES -626,207. OTHER BENEFIT CHANGES PER FS -2,539. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING DIRECT EXPENSES 626,206. ENDOWMENT FUNDS ACADEMY OF MUSIC OF PHILADELPHIA, INC. ("THE ACADEMY") HAS ANSWERED YES TO PART IV, LINE 10, BUT HAS REPORTED NO FINANCIAL DATA IN SCHEDULE D, PART V WITH RESPECT TO ITS ENDOWMENT FUND. THIS IS BECAUSE THE ACADEMY'S ENDOWMENT FUND IS SET UP AS A SEPARATE LEGAL ENTITY. THIS SEPARATE LEGAL ENTITY (TRUST), THE ACADEMY OF MUSIC ENDOWMENT FUND (EIN#: 23-2108123), HAS ITS OWN TAX EXEMPTION UNDER IRC SECTION 501(C)(3), IS RECOGNIZED AS AN IRC SECTION 509(A)(3) SUPPORTING ORGANIZATION OF THE ACADEMY AND ACCORDINGLY, FILES ITS OWN FEDERAL FORM 990. THE ACADEMY RECEIVED FUNDS WHICH IT SET ASIDE IN THIS ENDOWMENT TO BE HELD AND ADMINISTERED BY PNC BANK IN THE NAME OF THE ACADEMY OF MUSIC ENDOWMENT FUND. THE VALUE OF THE TRUST ASSETS WAS $25,318,000 AND $21,135,000,000 IN FY23 AND FY22, RESPECTIVELY. SCHEDULE D, PART V, LINE 4 THESE ENDOWMENT FUNDS ARE INTENDED TO PROVIDE FUNDING FOR VARIOUS RESTORATION PROJECTS UNDERTAKEN BY THE ACADEMY. THE ACADEMY BOARD OF DIRECTORS CAN DRAW DOWN REVENUE FROM THE TRUST PURSUANT TO THE APPLICATION OF THE BOARD APPROVED SPENDING POLICY IN ACCORDANCE WITH PENNSYLVANIA LAW AND SPECIFIC ELECTION BY THE BOARD. THE DRAW IS SUBJECT TO ALL DONOR IMPOSED RESTRICTIONS. THIS DRAW DOWN IS REPRESENTED AS A CHARITABLE CONTRIBUTION FROM THE ENDOWMENT FUND ON THE ACADEMY'S FORM 990. SCHEDULE D, PART V DUE TO CONSTRAINTS WITH THE TAX SOFTWARE, AT LEAST $1 MUST BE SHOWN IN ORDER TO PRESENT THE NARRATIVES REGARDING THE ACADEMY'S UNIQUE ENDOWMENT FUND SITUATION. AL AK AZ AR CA CT DC FL IL KS KY LA ME MD MA MI MN MO MS NH NJ NY NC ND OH OK OR PA RI SC TN UT VA WA WV WI GREAT STAGES GALA 883123 599846 283277 153105 216931 256170 883123 599846 283277 153105 216931 256170 626206 -342929 1 THE KIMMEL CENTER INC 300 SOUTH BROAD STREET PHILADELPHIA PA 19102 232865855 501(C)(3) 20000 0 SEAT REPLACEMENT PROJECT 1 0 PART I, LINE 2: THE ORGANIZATION DOES NOT USUALLY MAKE GRANTS TO OTHER ORGANIZATIONS. THE GRANT TO THE KIMMEL CENTER IS A SPECIAL ARRANGEMENT THAT WAS AGREED TO AND DOCUMENTED IN A PLEDGE AGREEMENT. THE TOTAL PLEDGE IS $100,000 AND $20,000 IS BEING PAID EACH YEAR FOR FIVE YEARS. THE KIMMEL CENTER IS USING THE GRANT TO PAY FOR NEW SEATS IN THE ACADEMY OF MUSIC BUILDING. THE MONITORING OF THIS GRANT WILL BE ACCOMPLISHED BY OBSERVING THAT THE ACADEMY OF MUSIC BUILDING HAS NEW SEATS. 0 1 0 0 0 0 0 0 0 MATIAS TARNOPOLSKY BD MEMBER (PRESIDENT-POA) 0 735217 0 175000 0 690 0 37525 0 29931 0 978363 0 0 RYAN FLEUR BD MEMBER/SECRETARY (EXEC-DIR POA) 0 383075 0 0 0 690 0 24400 0 30016 0 438181 0 0 MARIO MESTICHELLI BD MEMBER/TREASURER (CFO-POA) 0 319280 0 0 0 690 0 24400 0 28716 0 373086 0 0 PART I, LINE 3 THE ACADEMY DOES NOT HAVE ANY PAID EMPLOYEES; ALL COMPENSATION TO THE OFFICERS REPORTED ON PART VII OF THE FORM 990 WAS PAID BY A RELATED ORGANIZATION, THE PHILADELPHIA ORCHESTRA ASSOCIATION (ASSOCIATION). ASSOCIATION UNDERTAKES A THOROUGH PROCESS TO ENSURE THAT THE EXECUTIVE COMPENSATION IT PAYS TO ITS TOP MANAGEMENT OFFICIALS AND ALL OF ITS OFFICERS AND KEY EMPLOYEES OF THE ASSOCIATION IS REASONABLE GIVEN THE MARKET IN WHICH THE ASSOCIATION OPERATES. THE ASSOCIATION CHECKS THE FOLLOWING BOXES FOR QUESTION 3 ON ITS FORM 990: COMPENSATION COMMITTEE FORM 990 OF OTHER ORGANIZATIONS WRITTEN EMPLOYMENT CONTRACT COMPENSATION SURVEY OR STUDY APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE IN RELEVANT PART, THE BOARD OF DIRECTORS HAS ESTABLISHED A COMPENSATION COMMITTEE OF INDEPENDENT PERSONS THAT HAVE NO PERSONAL INTEREST IN THE PROPOSED COMPENSATION AGREEMENT. THE COMPENSATION COMMITTEE OBTAINS A MARKET ASSESSMENT AND COMPETITIVE POSITION ANALYSIS FOR THE ASSOCIATION'S TOP EXECUTIVES. THE COMPENSATION COMMITTEE WILL THEN SET THE COMPENSATION FOR THE RELEVANT EXECUTIVE AND DOCUMENT THE DECISION IN BOARD MINUTES. PART I, LINE 4B ACADEMY OF MUSIC OF PHILADELPHIA BOARD MEMBER, MATIAS TARNOPOLSKY, IS THE PRESIDENT/CEO OF THE PHILADELPHIA ORCHESTRA ASSOCIATION (POA). AS PART OF HIS EMPLOYMENT AGREEMENT, MR. TARNOPOLSKY PARTICIPATES IN A NONQUALIFIED DEFERRED COMPENSATION PLAN. AMOUNTS ARE CREDITED TO THE PLAN EACH YEAR AND PLAN BALANCES ARE SUBJECT TO FORFEITURE AND/OR PAYMENT IF CERTAIN CONDITIONS ARE MET. AMOUNTS ACCRUED UNDER THE PLAN IN THE CURRENT YEAR ARE INCLUDED IN SCHEDULE J, PART II, COLUMN (C). NO PAYMENTS WERE MADE TO MR. TARNOPOLSKY UNDER THE PLAN IN CALENDAR YEAR 2022. X 3 79992 FMV X 1 12000 COST 0 1 1 PART I, COLUMN (B): NUMBER OF CONTRIBUTIONS THE ORGANIZATION IS REPORTING THE NUMBER OF CONTRIBUTIONS IN COLUMN (B). PART I, LINE 32B: TO THE EXTENT THAT THE ORGANIZATION RECEIVES DONATIONS OF SECURITIES, ITS INVESTMENT BROKER/MANAGER IS TASKED WITH SELLING THOSE SECURITIES IN EXCHANGE FOR CASH. FORM 990, PART V, LINES 1A AND 2A FORMS 1096/W-3 REPORTING FORM 1096 AND FORM W-3 FOR THE FILING ORGANIZATION IS PROCESSED AND REPORTED BY ITS RELATED ORGANIZATION PHILADELPHIA ORCHESTRA ASSOCIATION (EIN: 23-1352289). FORM 990, PART VI, SECTION A, LINE 6 THE ACADEMY OF MUSIC OF PHILADELPHIA, INC.'S SOLE MEMBER IS THE PHILADELPHIA ORCHESTRA ASSOCIATION. PRIOR TO 12/2/21, THE PHILADELPHIA ORCHESTRA ASSOCIATION'S MEMBERS/STOCKHOLDERS WERE AS FOLLOWS: THE MEMBERSHIP OF THE PHILADELPHIA ORCHESTRA ASSOCIATION SHALL CONSIST OF LIFE AND ANNUAL MEMBERS. LIFE MEMBERS SHALL BE THOSE PERSONS WHO ON OR BEFORE SEPTEMBER 22, 1958 PAID INTO THE ENDOWMENT FUND OR ANY OTHER FUND ESTABLISHED BY THE ASSOCIATION NOT LESS THAN THE SUM OF FIVE HUNDRED DOLLARS. ANNUAL MEMBERS SHALL CONSIST OF THOSE PERSONS (INDIVIDUAL OR CORPORATE) WHO FROM TIME TO TIME SHALL CONTRIBUTE TO THE PHILADELPHIA ORCHESTRA ASSOCIATION NOT LESS THAN SUCH AMOUNT AS THE BOARD OF DIRECTORS MAY FROM TIME TO TIME DESIGNATE AS THE AMOUNT OF THE CONTRIBUTION BY WHICH A PERSON SHALL BECOME A MEMBER. A MEMBER, BY VIRTUE OF A CONTRIBUTION OF NOT LESS THAN THE AMOUNT THUS FIXED, SHALL BE A MEMBER UNTIL THE ADJOURNMENT OF THE ANNUAL MEETING NEXT FOLLOWING THE CLOSE OF THE FISCAL YEAR OF THE ASSOCIATION TO THE ACCOUNTS OF WHICH THE CONTRIBUTION WAS APPLIED. IN ALL ELECTIONS AND AT ALL MEETINGS OF THE ASSOCIATION EACH MEMBER OF RECORD ON THE TENTH DAY PRECEDING THE DATE OF AN ELECTION OR OF A MEETING SHALL BE ENTITLED TO ONE VOTE AND TO NOTICE OF THE ELECTION OR MEETING. VOTING BY MEMBERS SHALL BE IN PERSON OR BY PROXY. THE BOARD OF DIRECTORS MAY FROM TIME TO TIME ESTABLISH CLASSIFICATIONS OF MEMBERS WHO ARE MEMBERS BY VIRTUE OF CONTRIBUTING TO THE ASSOCIATION AS PROVIDED FOR IN THIS ARTICLE AND MAKE AVAILABLE TO SUCH MEMBERS SUCH SPECIAL PRIVILEGES AS THE BOARD MAY DETERMINE, DEPENDING UPON THE CLASSIFICATION OF MEMBERSHIP. EFFECTIVE DECEMBER 2, 2021, THE BYLAWS OF THE PHILADELPHIA ORCHESTRA ASSOCIATION WERE AMENDED AND RESTATED TO REFLECT A NUMBER OF CHANGES COINCIDENT WITH THE CREATION OF THE PHILADELPHIA ORCHESTRA AND KIMMEL CENTER INC. (THE "POKC"). THE SOLE MEMBER OF THE ORCHESTRA WITHIN THE MEANING OF SECTION 5103(A) OF THE PENNSYLVANIA NONPROFIT CORPORATION LAW OF 1988 (THE NPCL) SHALL BE THE POKC. THE POKC SHALL HAVE THE RIGHT TO VOTE AND SHALL ACT THROUGH THE EXECUTIVE COMMITTEE OF ITS BOARD OF DIRECTORS." FORM 990, PART VI, SECTION A, LINE 7A SEE NARRATIVE UNDER FORM 990, PART VI, SECTION A, LINE 6 FORM 990, PART VI, SECTION A, LINE 7B SEE NARRATIVE UNDER FORM 990, PART VI, SECTION A, LINE 6 FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 WAS PREPARED BY AN INTERNATIONAL ACCOUNTING FIRM IN CONJUNCTION WITH THE ORGANIZATION'S FINANCIAL DEPARTMENT. A COPY OF THE FORM 990 IS CIRCULATED TO THE BOARD BEFORE IT IS FILED. HOWEVER, SCHEDULE B IS REDACTED FROM THE FORM 990 BEFORE IT IS CIRCULATED TO THE BOARD TO PROTECT THE IDENTITY OF CERTAIN DONORS WHO WISH TO REMAIN ANONYMOUS. AS SUCH, THE ORGANIZATION HAS CHECKED 'NO' TO PART VI, QUESTION 11A. SCHEDULE B WILL BE MADE AVAILABLE TO THOSE BOARD MEMBERS WHO WISH TO INSPECT IT INDIVIDUALLY. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION MONITORS AND ENFORCES COMPLIANCE BY FOLLOWING THESE PROCEDURES: 1. ANY INTERESTED PERSON HAS A DUTY TO DISCLOSE THE TRANSACTION OR ARRANGEMENT; 2. THE INTERESTED PERSON PRESENTS THIS POTENTIAL CONFLICT OF INTEREST TO THE BOARD/COMMITTEE; 3. THE BOARD/COMMITTEE DETERMINES WHETHER THERE IS A CONFLICT OF INTEREST; 4. BOARD/COMMITTEE/INTERESTED PERSON FOLLOWS PREDETERMINED PROCEDURES TO ADDRESS THE ISSUE IF ONE EXISTS; 5. THE ABOVE WILL BE RECORDED IN THE MINUTES OF THE MEETINGS OF THE BOARD/COMMITTEE. EACH DIRECTOR, OFFICER AND MEMBER OF A COMMITTEE WITH BOARD-DELEGATED POWERS SHALL ANNUALLY RESPOND TO A QUESTIONNAIRE AND SIGN A STATEMENT WHICH AFFIRMS SUCH PERSON: A. HAS RECEIVED A COPY OF THE CONFLICT OF INTEREST POLICY, B. HAS READ AND UNDERSTANDS THE POLICY, C. HAS AGREED TO COMPLY WITH THE POLICY, D. UNDERSTANDS THE ORGANIZATION IS CHARITABLE AND IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES; AND E. PROVIDES SUCH INFORMATION AS THE AOM REQUIRES TO PREPARE THE AOM'S ANNUAL IRS FORM 990. FORM 990, PART VI, LINES 13 AND 14: THE ACADEMY OPERATES UNDER THE WHISTLEBLOWER AND DOCUMENT RETENTION POLICIES OF ITS RELATED ORGANIZATION, PHILADELPHIA ORCHESTRA ASSOCIATION. FORM 990, PART VI, SECTION B, LINE 15 THE ACADEMY DOES NOT HAVE ANY PAID EMPLOYEES; ALL COMPENSATION TO OFFICERS REPORTED ON PART VII OF THE FORM 990 WAS PAID BY A RELATED ORGANIZATION, THE PHILADELPHIA ORCHESTRA ASSOCIATION. THE PROCESS USED TO DETERMINE COMPENSATION FOR THESE INDIVIDUALS IS REPORTED ON THAT ORGANIZATION'S FORM 990. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS FORM 990 AVAILABLE TO THE PUBLIC BY RETAINING A COPY AT ITS PLACE OF BUSINESS AND ON ITS WEBSITE AT WWW.PHILORCH.ORG. THE FORM 990 IS LIKEWISE PUBLISHED ON THE INTERNET AT WWW.GUIDESTAR.ORG. THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT ORDINARILY MADE AVAILABLE TO THE PUBLIC, BUT, IF REQUESTED, WILL BE PROVIDED AT MANAGEMENT'S DISCRETION. THE ACADEMY OF MUSIC'S FINANCIAL OPERATIONS ARE REPORTED IN THE CONSOLIDATED FINANCIAL STATEMENTS OF ITS PARENT ORGANIZATION, THE PHILADELPHIA ORCHESTRA ASSOCIATION. THESE FINANCIAL STATEMENTS ARE, LIKEWISE, PUBLISHED ANNUALLY ON THE ORGANIZATION'S WEBSITE. FORM 990, PART VII: THE ACADEMY SHARES CERTAIN EMPLOYEES WITH RELATED ORGANIZATIONS, THE PHILADELPHIA ORCHESTRA ASSOCIATION, KIMMEL CENTER INC AND PHILADELPHIA ORCHESTRA AND KIMMEL CENTER INC. THE FULL TIME OFFICERS ALLOCATE THEIR TIME BETWEEN THE ORGANIZATIONS. ACCORDINGLY, 5 HOURS PER WEEK ARE REPORTED FOR EACH OF THE OFFICERS. FORM 990, PART IX: LINES 7 & 9: THE SALARY EXPENSES REPORTED ON LINES 7 & 9 REPRESENT AN ALLOCATION OF SALARY EXPENDITURES INCURRED BY PHILADELPHIA ORCHESTRA ASSOCIATION FOR EMPLOYEES PROVIDING SERVICES ON BEHALF OF THE ACADEMY. PROGRAM SERVICE EXPENSES: PLEASE NOTE THERE IS ONLY A SMALL AMOUNT OF EXPENSES REFLECTED IN PART IX, COLUMN B, PROGRAM SERVICE EXPENSES; THE REASON FOR THIS PRESENTATION IS AS FOLLOWS: THE ORGANIZATION'S PRIMARY PROGRAM SERVICE ACTIVITY IS TO RAISE FUNDS FOR THE RESTORATION OF THE ACADEMY OF MUSIC BUILDING. THE EXPENSES ASSOCIATED WITH FUNDRAISING EVENTS ARE REPORTED ON THE DIRECT EXPENSES FROM FUNDRAISING EVENTS LINE (PART VIII, LINE 8) AND THE EXPENSES ASSOCIATED WITH BUILDING RESTORATIONS ARE CAPITALIZED AND REPORTED WITHIN FIXED ASSETS ON PART X, LINE 10. FORM 990, PART XI, LINE 9: OTHER -6,509. ENDOW CONTRIBUTION NOT INCLUDED IN INVESTMENTS -3,006,575. GENERAL STATEMENT OF INFORMATION: THE PHILADELPHIA ORCHESTRA ASSOCIATION (POA) AND KIMMEL CENTER INC. (KCI), AFTER RECEIVING A NO OBJECTION LETTER FROM THE PENNSYLVANIA ATTORNEY GENERAL DATED OCTOBER 15, 2021, ENTERED INTO A PARTNERSHIP AND AFFILIATION AGREEMENT ON OCTOBER 21, 2021 THAT WILL ENABLE POA AND KCI TO OPERATE IN A STRATEGICALLY ALIGNED AND COORDINATED MANNER IN ORDER TO CREATE A MORE POWERFUL AND EXPANSIVE ARTISTIC FOOTPRINT BY ESTABLISHING A NEW 501(C)(3) ORGANIZATION - THE PHILADELPHIA ORCHESTRA AND KIMMEL CENTER, INC. (POKC) - TO SERVE AS THE COMMON CONTROLLING MEMBER/PARENT OF POA AND KCI, WITH FULL REPRESENTATION FROM THE EXISTING POA AND KCI BOARDS. THE TRANSACTION WAS CLOSED ON DECEMBER 2, 2021, AND ASSOCIATED FILINGS WERE MADE ON DECEMBER 3, 2021. THE POA AND KCI WILL REMAIN SEPARATE LEGAL ENTITIES EACH OPERATING AS TAX-EXEMPT ORGANIZATIONS AND SHALL CONTINUE TO OPERATE IN ACCORDANCE WITH AND TO FURTHER ITS RESPECTIVE TAX-EXEMPT MISSION AND PURPOSES. EACH WILL MAINTAIN SEPARATE FINANCIAL STATEMENTS AND PERFORM AN ANNUAL AUDIT, NOTWITHSTANDING THAT THE PARTIES' FINANCIAL STATEMENTS MAY BE CONSOLIDATED WITH POKC'S. EACH OF THE ORCHESTRA AND THE KIMMEL CENTER SHALL CONTINUE TO HOLD, MANAGE, AND USE ITS ENDOWED AND OTHERWISE DONOR-RESTRICTED ASSETS (INCLUDING THOSE HELD BY ITS RESPECTIVE SUBORDINATE ORGANIZATIONS, INCLUDING THE ACADEMY) CONSISTENT WITH THE RESTRICTIONS THAT APPLY TO SUCH ASSETS AND PURSUANT TO THE TERMS OF THEIR RESPECTIVE GIFT INSTRUMENTS. THE ACADEMY OF MUSIC OF PHILADELPHIA, INC. WILL CONTINUE TO BE A WHOLLY OWNED SUBORDINATE ENTITY OF THE POA, AND ITS OPERATIONS WILL BE MANAGED BY THE SENIOR MANAGEMENT OF POKC AND THEIR DESIGNEES AT THE POA AND KCI CONSISTENT WITH THE ACADEMY'S MISSION TO OPERATE, MANAGE AND MAINTAIN THE ACADEMY OF MUSIC BUILDING. PHILADELPHIA ORCHESTRA ASSOCIATION ONE SOUTH BROAD ST 14TH FLOOR PHILADELPHIA PA 19107 231352289 ORCHESTRA PA 501(C)(3) LINE 10 POKC 0 THE ACADEMY OF MUSIC ENDOWMENT FUND 1600 MARKET ST 4TH FLOOR PHILADELPHIA PA 19103 232108123 SUPPORT AOM PA 501(C)(3) LINE 12A, I AOM 1 KIMMEL CENTER INC 300 SOUTH BROAD STREET PHILADELPHIA PA 19102 232865855 PERFORMING ARTS PA 501(C)(3) LINE 7 POKC 0 THE PHILADLELPHIA ORCHESTRA AND KIMMEL CENTER INC 300 SOUTH BROAD STREET PHILADELPHIA PA 19102 874303823 ORCHESTRA MGMT PA 501(C)(3) LINE 7 N/A 0 0 1 1 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 THE ACADEMY OF MUSIC ENDOWMENT FUND C 1059897 FMV