Mingei International Inc.

“An outside accounting firm prepares the form 990 with information provided by the organization. The completed draft of the 990 is sent to the cfo of the organization for review. The cfo reviews the 990 and distributes it to the audit committee and the executive director for review and questions. Upon completion of the review, and approval by the audit committee, a draft of the 990 is provided to the board prior to filing.”

“The museum requires each of its trustees, committee members and key employees to execute on an annual basis an acknowledgement of the conflict of interest policy and complete a conflict of interest questionnaire. Whenever a matter arises for action by the board, or the museum engages in an activity where there is a possible conflict or the appearance of conflict between the interests of the museum and an outside or personal interest of a board member or that of a person close to him or her, the outside interest of the member should be made a matter of record. If the member is present when a vote is taken in connection with such a question, that member should abstain. In some circumstances, the member should avoid discussing any planned actions, formally or informally, where there might appear to be personal benefit. If a case arises in which neither disclosure nor abstention appears to be sufficient, the only appropriate solution may be resignation.”

“Compensation was benchmarked against similar organization sizes and roles for all employees in the organization. Ceo and cfo compensation comparisons were provided to the compensation committee. Based on review and discussions by the committe a recommendation was made to the executive committee regarding the ceo and cfo's compensation.”

“The organization's articles of incorporation, by-laws, conflict of interest policy and financial statements are made available to the public upon request. The form 990 and audited financials are also made available on mingei's own website.”

“The organization used a professional employer organization (peo) to provide employer-related administrative functions for payroll and benefit services through december 31, 2018. The museum as of january 1, 2019 has direct employees and will issue w-2's beginning in 2019. All payroll related functions for 2018 were provided by the peo. The organization had 55 employees through its peo.”

“Professional services: program service expenses 81,190. Management and general expenses 450,662. Fundraising expenses 5,910. Total expenses 537,762. Collection services: program service expenses 48,308. Management and general expenses 268,144. Fundraising expenses 3,517. Total expenses 319,969. Catering services: program service expenses 4,734. Management and general expenses 26,276. Fundraising expenses 345. Total expenses 31,355. Graphic design: program service expenses 4,287. Management and general expenses 23,798. Fundraising expenses 312. Total expenses 28,397. Other fees: program service expenses 3,637. Management and general expenses 20,186. Fundraising expenses 265. Total expenses 24,088.”

“Change in method of accounting for collections -15,247,388.”

“During 2019, the museum elected to change its policy of capitalizing its permanent collection. The new method of accounting for collections, as outlined above, was adopted as it was deemed best practice and not due to any changes in the elements of the collection. The financial statements of prior years have been adjusted to reflect the new method retrospectively. As a result of the accounting change, net assets without donor restrictions as of july 1, 2018 decreased from $24,121,197, as originally reported, to $8,873,809 and total net assets decreased from $41,324,039, as originally reported, to $26,076,651 under the newly adopted policy.”