The Putnam Foundation DBA Timken Museum of Art

“The Form 990 is given to all Audit Committee Members. The Partner from the accounting firm annually attends the Audit committee meeting and reviews the Form 990 with the committee members.”

“A conflict of interest policy is reviewed and signed by each board member and key employee on an annual basis. Each person is required on such policy to disclose any conflicts. Should any conflicts arise, they would be addressed by the Executive Director and the Board of Directors. If there was such a conflict, such person with a conflict wold not be able to vote on the transaction. No such conflicts did arise this year.”

“Compensation was based on internal operations annual results as outlined in the Executive Directors contract and Annual plan, and as reviewed by the Chairman of the board, who is an independent board member. Appropriate performance rewards were reviewed for suggested outcomes that were between the minimum and maximum bonus amounts granted to like museum directors in Balboa Park. Findings were made by the Chairman and recommendations were forwarded to the independent Governance Committee of the board, on which subsequently and independently, the Governance Committee made its own assessment of the recommended level of bonus. After their independent review, the committee approved the award of the bonus to the Executive Director and request that the Chairman communicate the dual outcome to the Executive Director.”

“The organization makes its audited financial statements, governing documents, and conflict of interest policy available to the public upon request and on their website.”

“Change in value of perpetual trust net of distributions = -$1160770”

“The Foundation would like to explain that the operating income totaling $7,273,215 on the Form-990 includes a pledge totaling $7,488,000 net of the pledge discount of $512,000 that is for capital improvements. The Foundation has a net operating loss net of this pledge of ($214,785). This loss is due to certain adjustments to the internal financial statements that are required to be reported differently in the Form 990. The most significant adjustment is due to the treatment of the two endowment funds. The Putnam Foundation has a beneficial interest in the Putnam Foundation Trust (Perpetual Trust) and therefore is able to record the distributions totaling $694,530 as income. However, the Timken Ames Endowment is 100% owned by the Foundation and as such is not able to record the distributions $408,465 as income.”