Museum Associates

“The museum's bylaws establish an executive committee as one of its standing committees elected annually by the board of trustees. The executive committee has the authority to act, between meetings of the board of trustees, on behalf of the board of trustees, subject to certain exceptions, including those set forth in applicable state law. The scope of the committee's authority, including the exceptions thereto, is set forth in the bylaws of the museum, which are published on the museum's website. The committee is comprised of the co-chairs of the board, the chairs of each standing committee of the board and other trustees elected by the board. All members of the committee are voting trustees.”

“The form 990 is reviewed by outside tax accountants and reviewed and approved by the audit committee of the board of trustees. Once approved by the audit committee, the audit committee reports to the full board of trustees and the return is made available to the rest of the board before it is electronically filed.”

“The chairman of the audit committee sends an annual conflict of interest disclosure form to each trustee, and, with the office of general counsel, monitors responses and follows up with trustees to achieve as high a response rate as possible. The office of general counsel reviews these forms and reports significant conflicts to the audit committee, which reviews any specific transactions that might involve a conflict of interest with a trustee. The director of the museum sends key employees an annual conflict of interest form, which key employees are required to complete and return to the general counsel, who reviews such forms for possible conflicts and monitors compliance with the lacma's ethics policy including the conflict of interest policies contained in the ethics policy.”

“The compensation of the ceo and director of lacma is determined by the executive committee of the board of trustees, within the parameters established by the employment agreement entered into by lacma and the ceo and director in 2010. The director annually determines the compensation of each of the other officers and key employees. In each case, the compensation is based on (1) the employee's performance during the prior year; (2) the context of lacma's overall operating budget; and (3) comparability data for persons holding similar positions in similar organizations. Such comparability data is generally prepared by senior management, including the chief financial officer and the director of human resources and includes a review of publicly filed forms 990 of other institutions. Once compensation of the ceo is approved by the executive committee, based on the information and comparability data described above, the executive committee's recommendation, as well as the proposed compensation for all other officers and key employees, the underlying data, including the performance reviews and comparability analyses, are presented to the audit committee, to determine whether, in the audit committee's judgment, such proposed compensation is appropriate, fair and reasonable to lacma. The final recommendation of the executive committee and audit committee is reported to the full board of trustees at its next regularly scheduled meeting and submitted to the full board for approval. All members of the audit committee are independent trustees of lacma. Note that lacma does not have a separate "compensation committee."”

“All governing documents, conflict of interest policy, informational returns and financial statements are available to the public upon request and on the museum's website.”

“Although the county of los angeles is not a "related organization", compensation paid by the county of los angeles to certain officers and employees of the museum listed in part vii and schedule j is included in the interest of transparency and full disclosure.”

“Proceeds from sale of stocks: lacma has investment accounts and hedge funds with many stock transactions. Due to the large quantity of stock transactions, this information is not included in the return, but is available upon request.”

“To serve the public through the collection, conservation, exhibition and interpretation of significant works of art from a broad range of cultures and historical periods, and through translation of these collections into meaningful educational, aesthetic, intellectual and cultural experiences for the widest array of audiences. The los angeles county museum of art (the "museum") is the premier encyclopedic art museum in the western united states. The museum's collection of more than 120,000 artworks from around the world spans the history of art, from ancient to contemporary times, including especially strong collections of asian, latin american, european, and american art. Through its varied collections, the museum is both a resource to and a reflection of the many cultural communities and heritages in southern california and throughout the world. This fiscal year, the museum mounted 38 exhibitions and permanent collection installations, acquired 1,431 new works of art, provided programs for 96,848 school children. Total attendance at the museum was 1,299,146.”

“While revenue less expenses for line 19 reads as a surplus of $4,132,975, the museum's cash flows were actually considerably better than this, since this number reflects $14,932,824 of bond interest, fees, and amortization costs which were more than covered by cash payments on outstanding gift pledges, $8,598,134 of depreciation expense and bond amortization costs which are non-cash accounting charges, and excludes $29,409,158 of unrealized investment gains, part of which was used to support operations as inter-mediated by cash flows between the museum's investment portfolio and working capital.”

“The increase in other liabilities is principally tied to an unrealized drop in the value of an interest rate swap. This swap will self liquidate over the duration of museum debt and therefore does not represent an immediate non-discretionary claim on museum resources.”

“The organization has an audit committee that assumes responsibility for the oversight of the audit.”

“Net unrealized gains (losses) on investments $29,007,643 unrealized gains (losses) on interest rate swap ($4,103,232) total to form 990, part xi, line 5 $24,904,411”