Civic Intelligence

Interlochen Center for the Arts

990 • Fiscal year 2015 • EIN 38-1689022

Jun 01, 2014 to May 31, 2015 • Filed on Mar 31, 2016

PO Box 199Interlochen, MI 49643

(231) 276-7200

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

41st percentile

0.24x

Higher debt load relative to assets than 41% of similar nonprofits.

2015 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2015

Liabilities / Revenue

60th percentile

0.66x

Higher debt load relative to revenue than 60% of similar nonprofits.

2015 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2015

Net Margin

82nd percentile

23%

Higher net margin than 82% of similar nonprofits.

2015 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2015

Top Officer Pay

60th percentile

$585,952

Higher top officer pay than 60% of similar nonprofits.

Top officer pay equals 0.9% of source-year revenue.

2015 filings • 501(c)3 • $100M-$250M nonprofits • Source year 2015

Asset Growth

80th percentile

9.9%

Faster asset growth than 80% of similar nonprofits.

2015 filings • 501(c)3 • $100M-$250M nonprofits • Annualized from 2014 to 2015

Revenue Growth

45th percentile

2.8%

Faster revenue growth than 45% of similar nonprofits.

2015 filings • 501(c)3 • $100M-$250M nonprofits • Annualized from 2014 to 2015

Assets

Up

$180,804,187

Up $16,305,608 (+9.9%) from 2014

Net Assets

Up

$136,523,247

Up $14,915,922 (+12%) from 2014

Liabilities

Up

$44,280,940

Up $1,389,686 (+3.2%) from 2014

Revenue

Up

$67,384,287

Up $1,814,889 (+2.8%) from 2014

Expenses

Up

$51,763,832

Up $2,390,984 (+4.8%) from 2014

Net Income

Down

$15,620,455

Down $576,095 (-3.6%) from 2014

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$400M$300M$200M$100M$0Assets 2010: $114,923,695Liabilities 2010: $38,536,240Net Assets 2010: $76,387,4552010Assets 2011: $131,438,102Liabilities 2011: $39,743,047Net Assets 2011: $91,695,0552011Assets 2012: $128,705,664Liabilities 2012: $40,162,789Net Assets 2012: $88,542,8752012Assets 2013: $146,966,475Liabilities 2013: $40,457,777Net Assets 2013: $106,508,6982013Assets 2014: $164,498,579Liabilities 2014: $42,891,254Net Assets 2014: $121,607,3252014Assets 2015: $180,804,187Liabilities 2015: $44,280,940Net Assets 2015: $136,523,2472015Assets 2016: $181,343,605Liabilities 2016: $44,569,283Net Assets 2016: $136,774,3222016Assets 2017: $203,412,607Liabilities 2017: $43,092,149Net Assets 2017: $160,320,4582017Assets 2018: $216,420,556Liabilities 2018: $46,017,047Net Assets 2018: $170,403,5092018Assets 2019: $225,671,804Liabilities 2019: $48,184,361Net Assets 2019: $177,487,4432019Assets 2020: $234,270,312Liabilities 2020: $45,374,194Net Assets 2020: $188,896,1182020Assets 2021: $269,104,599Liabilities 2021: $49,471,903Net Assets 2021: $219,632,6962021Assets 2022: $306,348,404Liabilities 2022: $48,869,728Net Assets 2022: $257,478,6762022Assets 2023: $313,081,859Liabilities 2023: $51,606,513Net Assets 2023: $261,475,3462023Assets 2024: $322,782,174Liabilities 2024: $29,414,828Net Assets 2024: $293,367,3462024

Highlighted filing

2015

Assets$180,804,187
Liabilities$44,280,940
Net Assets$136,523,247

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$150M$100M$50M$0Expenses 2010: $36,926,6372010Expenses 2011: $40,879,3522011Expenses 2012: $44,845,6742012Revenue 2013: $55,652,691Expenses 2013: $46,295,921Net Income 2013: $9,356,7702013Revenue 2014: $65,569,398Expenses 2014: $49,372,848Net Income 2014: $16,196,5502014Revenue 2015: $67,384,287Expenses 2015: $51,763,832Net Income 2015: $15,620,4552015Revenue 2016: $59,471,547Expenses 2016: $54,014,303Net Income 2016: $5,457,2442016Revenue 2017: $68,984,183Expenses 2017: $55,453,968Net Income 2017: $13,530,2152017Revenue 2018: $62,436,677Expenses 2018: $58,323,079Net Income 2018: $4,113,5982018Revenue 2019: $74,834,815Expenses 2019: $63,866,508Net Income 2019: $10,968,3072019Revenue 2020: $77,699,935Expenses 2020: $68,663,665Net Income 2020: $9,036,2702020Revenue 2021: $61,094,031Expenses 2021: $56,748,697Net Income 2021: $4,345,3342021Revenue 2022: $112,118,953Expenses 2022: $66,830,445Net Income 2022: $45,288,5082022Revenue 2023: $91,841,304Expenses 2023: $83,450,726Net Income 2023: $8,390,5782023Revenue 2024: $65,975,420Expenses 2024: $26,892,062Net Income 2024: $39,083,3582024

Highlighted filing

2015

Revenue$67,384,287
Expenses$51,763,832
Net Income$15,620,455
Jump To
Filing Snapshot
Filing Period
Jun 1, 2014 to May 31, 2015
Signed
Mar 31, 2016
Return Version
2014v6.0
Gross Receipts
$70,202,133
Mission and Program Overview

Mission

Interlochen center for the arts ("ica"), through its support of the interlochen arts group and the interlochen arts camp, engages and inspires people worldwide through excellence in educational, artistic, and cultural programs, enhancing the quality of life through the universal language of the arts.

Engage and inspire people worldwide through excellence in educational, artistic and cultural programs, enhancing the quality of life through the universal language of arts.

Balance Sheet Detail
LineBeginningEndChange
Assets
Investments in Publicly Traded Securities$65,269,743$85,589,222▲ $20,319,479
Land, Buildings, and Equipment, Net$39,402,607$39,601,770▲ $199,163
Investments Other Securities$43,816,986$31,414,987▼ $12,401,999
Cash and Non-Interest-Bearing Accounts$10,186,366$13,356,137▲ $3,169,771
Pledges and Grants Receivable$2,349,651$7,389,479▲ $5,039,828
Inventories for Sale or Use$1,050,155$987,499▼ $62,656
Prepaid Expenses and Deferred Charges$531,292$476,364▼ $54,928
Savings and Temporary Cash Investments$253,349$258,460▲ $5,111
Accounts Receivable$126,167$188,379▲ $62,212
Other Notes and Loans Receivable, Net$0$0→ $0
Receivable From Disqualified Prsn$0$0→ $0
Receivables From Officers Etc$0$0→ $0
Investments Program Related$0$0→ $0
Intangible Assets$0$0→ $0
Loans From Officers Directors$0$0→ $0
Total Assets$164,498,579$180,804,187▲ $16,305,608
Other Assets Total$1,512,263$1,541,890▲ $29,627
Liabilities
Tax Exempt Bond Liabilities$26,300,000$26,300,000→ $0
Deferred Revenue$13,202,319$14,269,673▲ $1,067,354
Accounts Payable and Accrued Expenses$2,699,823$2,946,714▲ $246,891
Other Liabilities$689,112$764,553▲ $75,441
Grants Payable$0$0→ $0
Mortgage Notes Payable Secured by Investment Property$0$0→ $0
Unsecured Notes Loans Payable$0$0→ $0
Escrow Account Liability$0$0→ $0
Total Liabilities$42,891,254$44,280,940▲ $1,389,686
Net Assets / Fund Balance
Unrestricted Net Assets$79,898,565$82,612,017▲ $2,713,452
Permanently Rstr Net Assets$25,751,061$26,977,913▲ $1,226,852
Temporarily Rstr Net Assets$15,957,699$26,933,317▲ $10,975,618
Total Net Assets Fund Balance$121,607,325$136,523,247▲ $14,915,922
Total Liabilities and Net Assets / Fund Balance$164,498,579$180,804,187▲ $16,305,608

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$26,878,597$30,140,151$57,018,748
Equipment$10,167,877$11,401,687$21,569,564
Leasehold Improvements$1,777,072$1,992,708$3,769,780
Land$479,781-$479,781
Other Land Buildings$298,443$0$298,443
Other Securities$9,720,206--

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2015$84,054,567$18,390,891▲ $4,178,019$2,011,887$103,592,159
2014$76,035,014$2,617,734▲ $8,348,449$2,066,006$84,054,567
2013$62,910,318$4,408,170▲ $11,005,485$1,544,397$76,035,014
2012$65,938,366$2,033,608▼ $2,996,047$1,431,756$62,910,318
2011$53,899,936$3,506,552▲ $10,513,097$1,363,805$65,938,366
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Jeffrey KimptonPresident Ex Officio TrusteeFT$424,673$161,279$585,952
Timothy DoughertyVP AdvancementFT$298,786$76,872$375,658
Patrick KesselVP Finance & OPERATIONSFT$287,483$78,407$365,890
Edward FarradayVP Education PROGRAMSFT$207,473$45,480$252,953
Kedrik MerwinDirector MusicFT$132,952$27,114$160,066
Kim ZubrickasEXEC Director HUMAN/INST'L RESOURCEFT$127,951$30,517$158,468
Timothy WadeVP Student AffairsFT$132,468$25,150$157,618
Daniel BesselsenAVP FinanceFT$119,368$34,158$153,526
Christopher GruitsExec Director Interlochen PresentsFT$137,571$11,781$149,352
Kristina NicholsAVP Camp ProgramsFT$102,531$22,447$124,978
Jenie AltrudaVP Communications and EngagemeFT$117,551$6,079$123,630
Thomas MackeyVP Student AffairsFT$85,115$10,095$95,210
Heather CovaCorp SecretaryFT$68,530$4,012$72,542

Highest Paid Contractors

ContractorServicesLocationCompensation
ElmersExcavating3600 RENNIE SCHOOL ROAD, Traverse City, MI 49686$386,831
Goldman Sachs And CoInvestment Manager71 S WACKER DR SUITE 500, Chicago, IL 60614$343,065
Fedewa INCPainting4315 E M-79 HWY, Hastings, MI 49058$167,136
Kendall Electric INCElectrical840 HASTINGS STREET, Traverse City, MI 49684$146,317
William Morris Endeavor EntertainmeArtist Mgmt Company1600 DIVISION ST SUITE 300, Nashville, TN 37203$135,000
Revenue and Support

Revenue Composition

Contributions and Grants
$14,915,943
Program Service Revenue
$43,244,994
Investment Income
$7,633,504
Other Revenue
$1,589,846
All Other Contributions
$14,689,429
Change in Net Assets
$15,620,455

Noncash Contribution Practices

Property subject to holding requirements
No
Reviewed unusual noncash gifts
Yes
Third parties used for noncash contributions
No

Noncash Contributions

Contribution TypeContribution CountReported AmountValuation Method
Securities Publicly Traded139$997,570See Supplemental
Total Noncash Contributions139$997,570-

Audited Revenue Reconciliation

Revenue per Audited Statements
$68,867,423
Revenue Not Reported on Financial Statements
$-1,483,136
Revenue Not Reported on Form 990
$-12,955,723
Other Revenue Adjustments
$-1,820,276
Total Revenue per Audited Statements
$55,911,700
Total Revenue per Form 990
$67,384,287
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$24,632,787
Other Expenses$14,879,855
Grants and Similar Amounts Paid$12,251,190
Total Fundraising Expense$2,065,001
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$14,357,930$2,384,162$983,571$17,725,663
Grants to Domestic Individuals$10,610,945--$10,610,945
Office Expenses$2,639,824$889,224$100,775$3,629,823
Current Officers, Directors, Trustees, and Key Employees$610,970$1,166,597$378,989$2,156,556
Other Employee Benefits$1,379,717$478,309$86,628$1,944,654
Depreciation Depletion$1,440,156$360,039-$1,800,195
Foreign Grants$1,640,245--$1,640,245
Fees for Services Other$805,060$526,083$96,147$1,427,290
Payroll Taxes$1,054,152$276,441$81,066$1,411,659
Pension Plan Contributions$1,033,648$265,922$94,685$1,394,255
Information Technology-$1,059,255-$1,059,255
Travel$631,194$192,879$127,920$951,993
Occupancy$751,143$105,803$35,769$892,715
Advertising$5,843$546,095$35,094$587,032
All Other Expenses$256,881$153,822$160$410,863
Other Expenses$315,089$36,478$22,894$374,461
Fees for Service Investment Mgmnt Fees-$359,140-$359,140
Insurance-$310,489-$310,489
Conferences and Meetings$65,326$52,220$11,281$128,827
Fees for Services Accounting-$69,426-$69,426
Fees for Services Legal-$67,966$459$68,425
Fees for Services Lobbying-$8,300-$8,300
Interest-$-9,924-$-9,924
Total Functional Expenses$40,360,029$9,338,802$2,065,001$51,763,832

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Form 990$51,763,832
Total Expenses per Audited Statements$40,995,778
Expenses per Audited Statements$39,175,502
Expenses Not Reported on Financial Statements$12,588,330
Other Expense Adjustments$12,251,190
Expenses Not Reported on Form 990$1,820,276
International Activity

International Summary

Offices
0
Employees
0
Spending
$7,593,328

International Compliance

Foreign grant records maintained
Yes
Activity in boycott countries
No
Foreign corporation ownership
Yes
Foreign partnership interest
No
Interest in foreign trust
No
Passive foreign investment company interest
Yes
Transfers to foreign corporations
Yes

International Activities

RegionActivityServicesOfficesEmployeesSpending
Central America and the CaribbeanInvestments-00$5,953,083
East Asia and the PacificProgram ServicesScholarships and Aid00$593,555
Europe (Including Iceland and Greenland)Program ServicesScholarships and Aid00$300,540
North AmericaProgram ServicesScholarships and Aid00$257,400
Central America and the CaribbeanProgram ServicesScholarships and Aid00$233,950
Russia and the Newly Independent StatesProgram ServicesScholarships and Aid00$107,500
South AmericaProgram ServicesScholarships and Aid00$105,900
Sub-Saharan AfricaProgram ServicesScholarships and Aid00$41,400
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
Yes
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
Katharine DoughertyWife of Vp of AdvancementManager of Intl Student/familyNo$17,572

Loans and Receivables

Line ItemBeginningEndChange
Loans from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Receivables from Disqualified Persons$0$0→ $0
Receivables from Officers, Directors, Trustees, and Key Employees$0$0→ $0
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Annuities Payable$764,553

Bond Issues

BondIssuerIssuedIssue PricePurpose
AEcon Development Corp of the Twnshp of Green Lake2004-08-11$26,300,000See schedule k, supplemental info

Bond Proceeds

BondTotal ProceedsSpentRetiredIssuance Costs
A$26,494,241$18,999,416$0$319,656

Bond Financing Compliance

No rebate due
No
Rebate not yet due
No
Form 8038-T filed
No
Gross proceeds invested
No
Gross proceeds invested in GIC
Yes
Exception to rebate
Yes
Corrective action procedures
No
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Business relationship with family members
Yes
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
No
Conflict-of-interest policy
Yes
Audited financial statements prepared
No
Key decisions subject to board approval
No
Management duties delegated
No

Governance Explanations

Form 990, Part VI, Line 11B

The form 990 is prepared by Interlochen Center for the Arts ("ICA") external accounting firm, BDO. By board of trustee policy, the draft of the form 990 is reviewed by the vice president of finance, president, and the chair of board of trustees. A final draft of the form 990 is posted on an ICA intranet website that is accessible to all Board of Trustee members. The Board of Trustee members are informed via email of the draft form 990's availability online for review prior to the filing with the IRS.

Form 990, Part VI, Line 12C

Interlochen Center for the Arts ("ICA") conflict of interest policy and annual disclosure requirements cover all board of trustee members (elected and ex-officio) and officers. The annual disclosures are accumulated and maintained by the corporate secretary. They are available for review by the ICA president and chair of the board of trustees. If a board of trustee member had a conflict involving a matter before the board then they would remove themselves from the deliberation and decision making process.

Form 990, Part VI, Line 15A

The board of trustees creates an ad hoc presidential review committee which annually reviews the compensation of Interlochen Center for the Arts ("ICA") president. There are a variety of inputs for the committee, including a self-evaluation, goals completion, and the balance between various employee classes. In addition, the committee reviews national compensation comparisons with non-profits of similar size and stature to Interlochen Center for the Arts. Once the reviews are complete, the committee makes a salary recommendation to the full board of trustees which then votes on the matter. This process was last undertaken in October 2014. The board of trustees annually creates an ad hoc presidential review committee. ICA'S president makes compensation recommendations for ICA's officers to the presidential review committee. The president's recommendations are based on self-evaluations, goals completion, and the balance between various employee classes. The president also reviews national compensation comparisons with non-profits of similar size and stature to ICA. The president's compensation recommendations are discussed and reviewed by the presidential review committee however they are not formally voted upon. This process was last undertaken in October 2014 for the following ICA employee positions: Vice President of Finance, Vice President of Advancement, Vice President of Media and Engagement, Vice President of Student Affairs and Vice President of Education Programs.

Form 990, Part VI, Line 19

Interlochen center for the art's ("ica") governing documents and conflict of interest policy are not available to the public. The annual audited financial statements are posted on ica's website.

Filing and Contact Details

Filer

Filer Name
Interlochen Center for the Arts
EIN
38-1689022
In Care Of
% PATRICK M KESSEL VP FINANCE
Phone
2312767200
Address
PO BOX 199, INTERLOCHEN, MI 49643

Signing Officer

Name
PATRICK m KESSEL
Title
VP Finance & Operations
Phone
2312767345
Signed
2016-03-31
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Patrick M Kessel
Formed
1927
Legal Domicile
Mi
Voting Board Members
28
Independent Board Members
27
Employees
1,455
Volunteers
424

Preparer

Firm
Bdo USA Llp
Address
200 OTTAWA AVE NW STE 300, GRAND RAPIDS, MI 49503
Preparer
Jacob Cook
Phone
6167747000
Supplemental Narrative

Additional Explanations

Form 990, Part III, Line 4A - Continued

roles in a whole universe of professional endeavors. During school year 2014/2015 there were 514 students; 373 students received grants. FORM 990, PART III, LINE 4D EXPENSES: 2,018,001 REVENUE: 42 Interlochen Public Radio ("IPR") through two listener-supported broadcast services, connects northwest lower Michigan with arts, news and culture on a global scale. IPR also gives significant focus to local and regional news, information and artists, providing a trusted context for community discussion and showcasing the vitality and diversity of the grand traverse region. Serving listeners all over northern Michigan - and all over the world via the internet - IPR values its potential to impact individual lives every day, 24 hours a day. Coverage area includes most of the northern two-thirds of lower Michigan and the eastern third of the upper peninsula of Michigan. EXPENSES: 403,600 REVENUE: 557,979 Interlochen College of Creative Arts offers an engaging - and evolving - series of classes and programs for adults called "Interlochen for life." Members of the Interlochen community - of all ages - thrive on opportunities to learn and express themselves creatively and on the strong relationships that result from such meaningful endeavors.

Financial Statement Notes

Schedule D, Part III, Line 1

In 1969, leland b greenleaf, president of the conn corporation, donated a large collection of musical instruments to interlochen center for the arts. The collection consists of 250 instruments and a complete set of brass mouth pieces. Many of the instruments were made before 1900. The leland b greenleaf collection was appraised recently with a value of approximately $275,000

Schedule D, Part III, Line 4

As an educational institution focused on the arts, the Leland B Greenleaf collection furthers our exempt purpose by exposing our students to the early history of music and musical instruments.

Schedule D, Part V, Line 4

The organization's endowment funds are used to support annual scholarships, operations and capital needs. The Board of Trustees of Interlochen Center for the Arts has adopted a policy of appropriating for distribution each year 4.5 percent of its endowment funds' average fair market value over the prior three years.

Schedule D, Part XI, Line 2D

(12,251,190) - financial aid

Schedule D, Part XI, Line 4B

(1,820,276) - cost of goods sold

Schedule D, Part XII, Line 2D

1,820,276 - cost of goods sold

Schedule D, Part XII, Line 4B

12,251,190 - financial aid

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Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2024Detailed filing. Detailed filing data is available for this year.$323$29.4$293$66.0$26.9$39.1
2023Detailed filing. Detailed filing data is available for this year.$313$51.6$261$91.8$83.5$8.39
2022Detailed filing. Detailed filing data is available for this year.$306$48.9$257$112$66.8$45.3
2021Detailed filing. Detailed filing data is available for this year.$269$49.5$220$61.1$56.7$4.35
2020Detailed filing. Detailed filing data is available for this year.$234$45.4$189$77.7$68.7$9.04
2019Detailed filing. Detailed filing data is available for this year.$226$48.2$177$74.8$63.9$11.0
2018Detailed filing. Detailed filing data is available for this year.$216$46.0$170$62.4$58.3$4.11
2017Detailed filing. Detailed filing data is available for this year.$203$43.1$160$69.0$55.5$13.5
2016Detailed filing. Detailed filing data is available for this year.$181$44.6$137$59.5$54.0$5.46
2015Detailed filing. Detailed filing data is available for this year.$181$44.3$137$67.4$51.8$15.6
2014Detailed filing. Detailed filing data is available for this year.$164$42.9$122$65.6$49.4$16.2
2013Facts available. Structured filing facts are available, but richer extracted sections are limited.$147$40.5$107$55.7$46.3$9.36
2012Facts available. Structured filing facts are available, but richer extracted sections are limited.$129$40.2$88.5$44.8
2011Facts available. Structured filing facts are available, but richer extracted sections are limited.$131$39.7$91.7$40.9
2010Facts available. Structured filing facts are available, but richer extracted sections are limited.$115$38.5$76.4$36.9
Peer Organizations

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