Memphis Symphony Orchestra Inc.

“Related party information among officers joe weller george falls trustee trustee brothers-in-law”

“The finance council reviews the 990 in detail. The board receives a copy before it is filed.”

“Enforcement of conflicts policy at least annually, all board members are required to review the organization's conflict of intrest policy and notify management of any conflicts or sign a statement that no such conflicts exist.”

“Compensation process for top official compensation is determined by review and approval by a governing board composed of persons who do not have a conflict of interest with determing the compensation arrangement. The board has relied on appropriate comparable data and documented its actions at the time they were taken.”

“Governing documents disclosure explanation governing documents, conflict of interest policy, and financial statements are made available to the public upon request.”

“Change in value of beneficial interest in assets held by others 1,234,393.”

“The process has not changed from the prior year.”

“In 2019, the symphony entered into an agreement with the university of memphis foundation ("umf") for donors to establish an endowment fund for the benefit and use of the symphony. These funds will be administered by umf; therefore, the symphony will have neither possession nor control over the assets of the funds. Upon notification of the symphony's beneficial interest in these funds, a contribution with donor restrictions was recorded in the statement of activities. The agreement provides for annual distributions to the symphony of approximately 5% of the aggregate fund balances and unlimited spending of fund earnings and/or fund principal at any time, but only after approval of both the president/ceo of the symphony and the president of the university of memphis is given. Additional contributions can be made by donors to the funds any time thereafter. The beneficial interest in these assets is reported at the fair value of the funds' assets in the statement of financial position. Fund distributions and changes in fair value are recognized in the statement of activities. Umf fund distributions to the symphony totaled $50,000 and $35,000, for the years ended june 30, 2021 and 2020, respectively. At june 30, 2021 and 2020, the balance of the umf fund was $2,537,520 and $1,357,567, respectively. In 2019, the symphony entered into an agreement with community foundation of greater memphis ("cfgm") for donors to establish an endowment fund for which the symphony will receive annual distributions of approximately 5% of the aggregate fund balance in perpetuity. The agreement allows for donors to make additional contributions to the fund. At june 30, 2021 and 2020, the balance of this endowment fund was $7,961,715 and $6,065,206, respectively. In 2020, another endowment fund was established at cfgm with an initial gift of $10,000,000, for which the symphony will receive annual distributions of approximately 5% of the aggregate fund balance in perpetuity. Since cfgm maintains variance power over both funds, which allows cfgm to redirect the benefits to another charitable organization if, in the sole judgment of cfgm, the funds' purpose becomes unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the community, the symphony has not recorded an asset for its beneficial interest in either of these funds as they are revocable. Annual distributions from the funds are reported in the statement of activities and totaled $796,477 and $739,368 for the years ended june 30, 2021 and 2020, respectively. On december 2, 2020, the symphony established an endowment fund at christian community fund ("ccf") for the benefit and use of the symphony by transferring $53,025. On december 8, 2020, a donor contributed $646,975 directly to the fund at the ccf to bring the total endowment contributions to $700,000. Since ccf maintains variance power over this fund, which allows ccf to redirect the benefits to another charitable organization if, in the sole judgment of ccf, the fund's purpose becomes unnecessary, incapable of fulfillment, or inconsistent with the charitable needs of the community, the symphony has recorded an asset for its beneficial interest in this fund only to the extent of the initial amount transferred. Changes in the value of the beneficial interest will be reported in the statement of activities on a pro-rata basis based on the symphony's initial investment in the fund as a percentage of the entire fund balance.”

“In april 2020, the symphony qualified for and received a loan pursuant to the paycheck protection program ("ppp"), a program implemented by the u.s. Small business administration ("sba") under the coronavirus aid, relief, and economic security act, from a qualified lender, in the amount of $546,377. In april 2021, the ppp loan was fully forgiven by the sba and reported as a gain in the statement of activities. In february 2021, the symphony received a second draw ppp loan of $546,377 which bears interest at a fixed rate of 1.0% per annum, with the first ten months of principal and interest deferred, is payable over five years beginning in december 2021, and is unsecured and guaranteed by the sba. The second draw ppp loan is also forgivable to the extent the proceeds are used for qualifying expenditures such as payroll costs, covered rent and mortgage obligations, and covered utility payments. In october 2021, the second draw ppp loan was fully forgiven by the sba.”