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CITY OF GLENDALE, CALIFORNIA REPORT TO THE:

Joint fl City Council ~ Housing Authority Li GEDC fl Oversight Board ~

February 26, 2019

AGENDA ITEM

Report: Glendale Arts Fiscal Year 2017-2018 Year End Report

(1) Council Motion to note and file the Glendale Arts Year End Report for the period of July 1, 2017 through June 30, 2018

COUNCIL ACTION Public Hearing LI Ordinance fl Consent Calendar fl Action Item ~ Report Only U

Approved for zk*o ~9 calendar

ADMINISTRATIVE ACTION /9 Signature

Submitted by: Philip S. Lanzafame, Director of Community Development U~JL)JQ Prepared by: Tamar Sadd, Senior Administrative Officer

• Approved by: p Yasmin K. Beers, City Manager 1~vY~’

Reviewed by:

Michael J. Garcia, City Attorney

Darlene Sanchez, Asst. Director of Community Development , RECOMMENDATION

It is recommended that the City Council take the following action:

Note and file the Glendale Arts Year End Report for the period of July 1, 2017 through June 30, 2018.

BACKGROUND!ANALYSIS

The 2015 Lease Agreement between the City of Glendale (“City”) and Glendale Arts (“GA”) for the Alex Theatre (‘Theatre”), and the 2015 Management Agreement for operation of the Theatre both require GA to submit reports to the City on the financial and operational status of the Theatre. Exhibit 1 (attached) are GA’s written and financial reports on total GA activity including the community arts programming fund and Alex Theatre performance for Fiscal Year (“FY”) 2017-201 8. This written report provides a summary of information provided in the year end reports, including an analysis. While the Management Agreement is specific to the Alex Theatre, Glendale Arts is the private non-profit organization charged with managing the Alex Theatre and coordinating resources. As such, the two organizations and their financial operations are examined in this report and in the financial reports.

The five year Management Agreement, beginning in 2015 with a five year option to extend, is structured to incrementally move Glendale Arts towards increased self-sufficiency. It transfers the responsibility of funding all Theatre maintenance and improvements to Glendale Arts, while slowly reducing their reliance on City funding by decreasing the management fee from $415,000 to $150,000. This year was the first drop in the management fee from $415,000 to $200,000.

While Glendale Arts shows an $85,416 loss, this deficit is caused not by an exceeded expenses budget, but unattained income budget. The main cause of this income deficit was an early adoption of the new reporting standards set forth by the Fair Accounting Standards Board (FASB) for not-for-profit accounting. This change defers restricted fundraising and grant money from the quarter it is received to the quarter in which the expenses are actually incurred, creating a greater “paper loss” than expected. As the change in accounting occurred this year, there is a gap in the efforts of generating new income by staff and what is reflected in the year end report.

Major examples of this deferred income include Glendale Arts obtaining a $75,000 Digital Cinema Projector grant from the Ahmanson Foundation which arrived at the end of the fiscal year. This project is not slated until the 1st and 2nd Quarter of FY19, and in adherence to the reporting policies, Glendale Arts deferred the revenue to when the money will be spent rather than when it was received. This grant, combined with a $45,000 Parson’s Grant: re~resents $120,000 in Special Projects / Restricted Income for the proiector which was received this fiscal year, but does not appear as income on the Glendale Arts FY 17-18 books.

Like the projector, sponsorship and contributed income received for the 2018 Open Arts & Music Festival & Open Grants Program in FY18 was deferred to the 1st Quarter of FY19 (when the festival actually took place). This represents an additional $75,000 in deferred revenue from FY17-18 to FY 18-19.

Page 2 of 6 Glendale Arts & Alex Theatre Year End — FY 201 7-18 Actuals

GLENDALE ARTS: FIVE YEAR SNAPSHOT FY2013-14 FY2014-15 FY2015-16 P12016-17 FY2017-18 Actual Actual Actual Actual Actual Income $1,447,073 S1,745,176 $2,227,589 $2,379,553 2,208,756 Expenses $1,702,838 $1,760,759 $2,027,938 $2,265,268 2,294,172 Net Surplus! -$255,765 -$15,583 $199,651 $114,285 -$85,416 Deficit

During Fiscal Year 2017-18, Glendale Arts hosted more than 90,000 patrons at the Alex Theatre and 11,000 people at their free community arts events. The Theatre patrons helped generate an estimated $1.7 million in economic activity. This assumes that each patron spent $16.39 in local spending on top of the price of their admission, a formula based on research in the Americans for the Arts & Economic Prosperity Study IV.

In addition to economic activity spurred by Glendale Arts patrons, the organization also provides a direct financial impact to the City of Glendale by way of rent, utilities, parking by staff and patrons, event related expenses, and sponsorship of City programs, totaling over $180,000.

Glendale Arts remains committed to its mission to integrate arts into the identity, growth and economic vitality of the City of Glendale by presenting programming and creating partnerships that benefit youth, patrons, artists, organizations and businesses into the community and the Alex Theatre. When the Council created the Alex Regional Theatre (ART) Board in 1994, one of their mandates was to provide discounts and subsides to assist local non-profit and community groups to rent the Alex Theatre and bring quality and affordable programs to the public. Glendale Arts retained that aspect of the Council’s charge and over the last decade has given over a million dollars in subsides. As the marketplace continues to become more competitive and more non-profit organizations look to host events, Glendale Arts finds itself extending even more discounts to attract and retain rental users. These subsidies and programs include:

• Alex Theatre Rental Subsidy Program: Glendale Arts provided a record amount of rental assistance to resident companies, non-profits and rental users of the Alex Theatre, totaling over $186,000. This is a $45,000 increase over last year.

• Open Arts & Music Festival: This event continues to grow in popularity. With the first year attracting nearly 3,500, and the second year nearly 7,500, the third year (which took place in the first quarter of FY 2018-19) brought in 10,000.

• GAEdu: This is a technical internship program for high school and college students and offers arts education programs in partnership with local non-profits.

• Taste Walk Glendale: Started in 2001 by Glendale Healthy Kids, The Taste of Downtown Glendale highlights the growing and evolving culinary scene in Glendale. This year, Glendale Arts took over as sole producer of the event, rebranding to Taste Walk Glendale. More than 900 people attended and enjoyed food, wine, and beer stations, Page 3 of 6 live music, and family-friendly activities along the route. Glendale Arts used a portion of the raised funds to benefit YWCA’s Camp Y Program to bring arts to youth.

Alex Theatre — Year End Programming Highlights The Alex Theatre’s season concluded with a total of 208 bookings. In previous years, the Alex booked 218 in 2016-17, 225 in 2015-16, and 177 in 2014-15. The booking goal for2017-18 as detailed in the Management Agreement is 235. Since the booking goals were set, the Alex Theatre has focused on attracting larger productions such as television shows and multi-day events. Larger shows are desired because they increase reimbursable labor, concessions, and box office fees. But larger productions are also much more demanding on the staff and the building, and as such, require a reduced number of days the facility is in use to ensure proper maintenance. While the Alex Theatre did not meet its booking goal, it exceeded its revenue goal for rental income by $42,631.

The Alex Theatre also continued to increase its global draw by hosting appearances and performances by high-profile figures, boosting the Theatre’s status as an attractive and highly sought-after venue in the crowded Los Angeles marketplace. Events included a sold-out Evening with Senator Al Franken in Conversation with Chelsea Handler, 50~ Anniversary film screening of Cool Hand Luke, the Miss Philippines USA Pageant, 2-day sold-out event Evolving Out Loud with Kyle Cease, Glendale Youth Orchestra’s ~ Season, The Nutcracker and other holiday classics, 20°~ Annual Three Stooges Big Screen event, Chic Media’s 2-day Rise Conference, 5th Annual Location Managers Guild International Awards, Michael Yo Comedy TV Special, and in collaboration with the City of Glendale and LA County Supervisor Kathryn

Barger, a free screening of documentary film Crows of the Desert — A Hero’s Journey through the Armenian Genocide with a panel discussion with the filmmakers.

Year End Numbers of Note: Actual vs. Budgeted • Actual income came in less than what was budgeted by $182,576. Major factors of note: o Individual donations, seat naming, and donor wall contributions fell lower than budgeted by $131,254. While seat naming was included in the budget and kicked off in FY 17-18, the concerted campaign for this fundraising endeavor will begin in FY 18-19 o Glendale Arts A1ex92 Annual Birthday celebration coincided with the La Tuna Canyon Fires. Forgoing fundraising activities to provide uplifting space for community members resulted in an unrealized fundraising potential of $20,000 • Concession sales exceeded budgeted revenues by $30,283 • Production income exceeded budgeted revenues by $20,730 • Labor income exceeded budgeted revenues by $18,759 • Actual expenses came in less than what was budgeted by $84,073

Year over Year Highlights • Concessions up by $32,537. Since acquiring a liquor license in 2012, Glendale Arts has generated over $400,000 in concessions revenue. In FY18, Glendale Arts invested in a full-time Food & Beverage position and increased the operations product offerings • Rental income up by $15,115 over previous year • Security and front of house (labor) income up by $13,824 and $10,673 respectively Page 4 of 6 Notable 2018 Fiscal Impacts • Following an audit of the FY15 / FY 16 payroll, GA paid an additional $20,000 in premiums this fiscal year for workers’ compensation insurance • Glendale Arts experienced 12 show cancellations (up from 5 in previous year)

Another fiscal finding of note is that Glendale Arts’ Reserve Investment Fund is at $88,732. The Management Agreement outlined that this amount should be at $125,000. It states that if the General Reserve is below $125,000 at the end of any fiscal year, the deficit will be deducted from the next fiscal year Management Fee and used to replenish the General Reserve to its $125,000 target. As Glendale Arts’ Reserves are $36,268 below the required amount stated in the Management Agreement, staff requests Council’s direction on whether that amount should be withheld from next year’s $200,000 fee and deposited directly into the investment account. While Glendale Arts does have other cash and cash equivalent assets totaling $273,352, the money is not specifically in the General Reserve account. This will impact Glendale Arts’ revenue budget for next fiscal year.

SUMMARY

In summary, Glendale Arts continues to evolve and refine their operations to meet the demands of a modern day theatre. Moving away from their own productions and live performances to embracing the television and filming industry, the Alex Theatre is modifying their attraction efforts to bring in a new and more lucrative clientele. They are also transforming their fundraising and income generating operations with new implementations such as the seat naming program and the sale of alcohol in concessions, both of which will continue to ramp up and generate new revenue sources in the coming years. Aside from managing operations for the Alex Theatre, Glendale Arts also continues to support a forthright mission to serve as a strong partner for nonprofit organizations and community based groups. As Glendale Arts moves into the next fiscal year, we will more clearly be able to discern their ability to be self- sufficient. The new accounting practice will be an accurate representation of the full fiscal year (instead of showing gap income as it did this year) and it will be the second year with the reduced management fee.

FISCAL IMPACT

There is no fiscal impact associated with noting and filing the year end report.

ALTER NATIVES

Alternative 1; City Council may note and file the report as is. Alternative 2: City Council may note and file the report with any Council recommended changes. Alternative 3: City Council may choose not to note and file the report. Alternative 4: City Council may consider any other alternative not proposed by staff.

CAMPAIGN DISCLOSURE

Not applicable for this report as no contract item is being considered. Page 5 of 6 EXHIBITS

Exhibit 1: Glendale Arts Fiscal Year 2017-18 Report Exhibit 2: Glendale Arts and Alex Theatre FY 2017-18 Budget vs. Actuals Exhibit 3: Glendale Arts and Alex Theatre FY 201 7-18 Year over Year Exhibit 4: Auditors’ Report Exhibit 5: Auditors’ Notes

Page 6 of 6 MOTION

Moved Council Member ______seconded by Council Member, ______

______that the Council of the City of Glendale has reviewed the Glendale Arts Year End Report for the period of July 1 2017 through June 30, 2018, and hereby notes and files same.

Vote as follows:

Ayes:

Noes:

Absent:

Abstain:

APPROVED AS TO FORM ,PL~Y%scm CIT~trORNEY

DATE ______

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~ :t. Art is Everything is a bold statement but one we believe is true. At face value it’s dance, music, and acting. But at Glendale Arts, it is so much more. Art is food. Art is education. Art is giving. We believe the Arts Matter!

You’ll recognize this over and over as you read through the Annual Report.

You’ll also notice that our mission is evident in everything we do and every action we take: to integrate the arts into the identity, growth, and economic vitality of the City of Glendale by presenting programming and creating partnerships that benefit youth, patrons, artists, organizations, and businesses in the community and at the Alex Theatre!

But our mission is possible only with the support from people like those you’ll find throughout these pages. Like you, they have a deep commitment to Glendale Arts, the Alex Theatre, and the importance of the arts and represent the communities we serve: volunteers, performers, business partners, members, donors, and you!

They, like you, believe in protecting the Alex Theatre’s tower and marquee, building confidence in a child, bridging artists and community, and preserving culture and diversity. We know it’s a lot to believe in, but remember our motto Art is Everything. It’s what connects us to our mission and then back to you!

After reviewing the 2017-2018 Annual Report please reach out to us at [email protected] if you have any questions. And don’t hesitate to stay involved: • Visit our websites for program and outreach information: www.glendalearts.org and www.alextheatre.org.

• Sign up for our eNewsletter - Join us on social media - Stop by the office and say”Hi!” - Volunteer at an event. • Join us on a backstage tour at the Alex.

• Make a donation - Include us in your will - Become a member - Inquire about naming opportunities. Open Arts & Music FestivaL The 2nd annual festival1 held September 17, 2017. built on the core value that there is power in working ,‘ \ together.

The festival connected the community to arts and culture by entertaining ‘-~‘: residents and welcoming visitors alike, w — ~ UIJLN LESTIVAL :: The event attracted both traditional . and new audiences - some that lived ‘ just steps from the stage while others traveled a distance to attend. .. .

r ( 1. Theday long eventtook over

Brand Blvd. from California Ave. to - Wilson Ave. in front of the historic

Alex Theatre. -u -

• -• - Residents, businesses, and local leaders worked collectively and “I came all the way from provided input in the p[anning of one of the City’s signature events. Orange County for the event, The cooperative effort brought a diverse group of people together and it was absolutely worth (ages and cultures) to celebrate, inspire, and be inspired. it! My boyfriend and I came to see Run River North but The festival attracted 7,500 people to Downtown Glendale for fell in love with walking exhibits, workshops, and performances from an eclectic lineup that around the city and meeting included Monalisa (DJ), Boogaloo Assassins, Wondem, Buyepongo, the different artists at the Element Band, DUCKWRTH, and Run River North fair. Thank you so much for putting this on!”

- Festival Attendee ~;t.

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S. w~J~ Innovation and creativity were also on display at the Alex Theatre. Brewyard Beer Company curated a Craft Beer Garden that included 8one8 Brewing, Eagle Rock Brewery, Lincoln Beer Company, MacLeod ~1 Ale Brewing Co., and Pacific Plate Brewing Co. It was a nod to the changing landscape and (re)discovery of local craft beer. A LocaL multimedia artist group, ‘LNIS (pronounced 7, yO-nes), installed a temporary public art installation in collaboration with a network of ‘I )tl\ ‘ artists. They created an interactive piece that emphasized the intersection of science. technology, engineering. art, and math, otherwise known as STEAM. C.

“Were friends who want to learn how to make cool art and help others do it, too.” Los Angeles artist Nisa Karnsomport. Y_ NIS £ This year we introduced a program called A Open Grant to provide some stabiLity in an tt increasingly competitive arts market. When artists lid are fresh out of school orjump starting a second career, the Lack of funding is something that is a There was paint, games, and music at the Kids Area - but quick reaLity. The Open Grant provided 8 artists not in the way you’d expect with the opportunity to connect with the The Kids Area at the Open community at the festival. Arts & Music Festival included workshops and With a variety of ways to participate, we fostered activities specifically for a welcoming, collaborative, and feedback- children and provided an oriented process for all to participate in. It was, opportunity for active arts engagement for them in a as was hoped, a coLlective effort. fun and educational way. Taste Walk GLendaLe

Taste. Walk. Repeat. This is what more than 900 people came out to do on May 2, 2018 at Taste Walk Glendale (formerly Taste of Downtown Glendale), a fundraiser for the arts, the Alex Theatre, and Glendale Arts’ youth program, GAEdu. The route spanned a half mile on Brand Blvd. and included 45 restaurants offering tastes from their menus, 7 places to sample ,, —.~ drinks, and 5 spots to hear live music. Every bite and every step taken contributed to the $55,000 raised to shape the future. .•ttt

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Downtown GL.endale Association hosted the VIP Lounge, which had additional, food and drink, a comfortable outdoor seating area, ‘_~~ live music, and access to earLy check-in. :~ 1g. Rick Lemmo, President, Executive Committee Chair of Downtown Glendale Association commented, 44 •4the area is pedestrian friendly, and with inexpensive parking options I. at city-owned garages (first 90 minutes free), tickethoLders can enjoy a relaxing culinary adventure and support a worthy cause.”

Proceeds from Taste Walk Glendale benefitted Glendale Arts and the Alex Theatre programs. In addition, this year Glendale Arts joined forces with Glendale YWCA to bring arts education to their CampY Summer Youth Program. By participating in an arts curriculum over the summer, the campers not only explored .6~e singing, dancing, and improv, they subconsicouLy became more 1* confident, tolerant, and compassionate. YWCA’s Executive Director Tara Peterson was extremely happy with the summer program. She shared her excitement and said “Inspiring Lives. Building hope. Creating smiles. One step at a time. Together with our summer camp partner GLendaLe Arts we are transforming Lives with the gift ofmusic, dance and acting.” 2018 SPONSORS AND PARTNERS Top Chef

Downtown GI.endale Association — The Walt Disney Company a’ AM870 The Answer 4 Master Sommetier Capital One Sous Chef Adventist Health Glendale Los Angeles Breakfast Club Foundation -11 Massage Envy Glendale zi,~R Royal Pharmacy Drugs USC Verdugo Hills Hospital SommeLier Kathryn Barger. Los Angeles k County Supervisor, 5th District History For Hire Ys Maid Service Massih Orthodontics K

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Sommelier (continued) Brewmaster Media Partners Beverage Suppliers A special thank Paragon Business Aerospcopic DoLA Brewyard Beer you to the City of Solutions Environmental Glendale Galteria Company GLendaLe’s Stephen & Pamela Dignity Health KCRW Fort Point Beer Community Ropfogel Glendale Memorial Kilter LA Misa Import Services & Parks Wolfe Foundation Etissa Glickman Pasadena Weekly Oak and Vine Department and YWCA Glendale Phil Kubel Street Food Cinema San Antonio Winery GUSD’s F.A.C.T.S. Pegasus Home Heatth The Americana at Program. Care Brand Sync Yoga & Cycle The ILLuminate Dinner On February 24, 2018, Pirch-Glendale was the location for the Illuminate Dinner & Wine Auction. Those that were able to secure a seat at the intimate event, shared a common commitment to the Alex Theatre and its Art Deco 100-foot neon tower, starburst, and marquee. Guests enjoyed a remarkable evening of food and wine in an extraordinary setting, a guided tasting, and a wine-exclusive silent auction. Supporters raised $10,000 for the Illuminate Fund which supports the preservation and ongoing maintenance projects of the Alex Theatre’s iconic spire, starburst, and marquee. Although the Illuminate Fund is a restricted fund available for year-long support, the special evening places an extra spotlight on the importance of preserving the Alex Theatre as not only an historic venue but as a beacon of arts, culture, and the community. J A special thank you those that provided

- their time, talent, and expertise:

— . - Nancy Hathaway, The Wine Vault Giles Marsden, Pirch-Glendale Bob Henry. Wine Consultant • Chef Claudia Balveneda

* And to the generous supporters of The Illuminate Fund: Anoush/LA Banquets Dr. Paul & Barbara Mena Dr. Richard Bardowell Denise Miller 1) & Greg Elmore George & Patricia MiLman Nina Crowe Rosemary Montana Fred & Liz Donham Margarita Navarro Jim & Pam Elyea Tara Peterson

VinceEspinoza& Toni Beck BeatrizPatricia PortoPhillips Lolly Gallup Stephen & Pamela Andrew Garsten & RopfogeL Helen McDonagh John & Karen Saunders a Elissa Glickman Jenny Schwing Greg Grammer Rich & Ellyn Semler Laura Hathaway Jose & Monica Sierra Nancy Hathaway Patty Silversher Harry & Debbie Hull John & Ginny Simpson Ben Karasik Randy Slaughter Bob & Cathy Keen Mike & Karen Swan Ry favorite aspect of the Alex Theatre is the ability to be the Phil & Jackie Kubel Charles & Paula Unger heartbeat of the city and the soul of its people. it is the glue that Victoria Lasken Michael& Mercy holds together the organizational networks of what would otherwise Camille Levee VeLazquez be a fragmented city. It is the thread that seamlessly brings the fabric Mark&Marlene Arlene ~Ln Weir of our town, its life, culture and soul! Giles Marsden Glenn & Katherine

- Michael Velazquez, The Accountancy Abraham Meltzer & Yamada Lybby Carroll Membership

Donors and GA Members directly support our vision of providing affordable and quality entertainment to the community. This is why GA

Members are inspirations of hope and possibility. 4 They invest in creativity and celebrate the importance of culture.

0 In return, GA Members enjoy a range of privileges

like discounts to performances at the Alex, presale , - tickets, eNewsletter, invitations to special events, backstage tours, and a membership card for perks and benefits in the community.

GA Members support everything from youth programs to resident companies to Alex Theatre preservation. Their contributions touch just about every patron and artist we come in contact with:

• A young girl in her pretty new dress going to The Nutcracker for the first time • Best friends laughing until they cry while watching their favorite comedian. • A high school student starting a technical internship program to explore a career in theatre production. • The touch up of paint, repairing of neon, or fixing of a torn seat to ensure the Alex remains well kept and a place that people want to come to see a performance. “GLendaLe Arts provides a valuable service to the community and if my contribution can help it,

I’m all for it!” - Susan Hunt

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,0 Seat Naming

There are 1,413 reasons to contñbute to the Name a Seat Campaign. That’s the number of seats there are in the Alex Theatre. Each one represents a person and their story — a guest who comes to see a show, an artist who performs on the stage or a promoter who brings the performance to the Alex. Naming a seat makes a lasting contribution to the Alex and provides an opportunity to celebrate your passion for the arts, your family, your friends, your business, the memory of a loved one, or an important anniversary or life event If every seat is claimed, $i.~ million will be raised to secure the future of the Theatre. This Spring, two families generously opened their homes to Glendale Arts, gathered their family and friends, and shared why the Alex Theatre is important to them. Through the kindness of Zareh & Lori Sinanyan, Greg Grammer & Simon Wright, and donors throughout the year, $39,000 was raised to help secure the Alex Theatre’s important place in the City ofGlendale’s story.

Thank you to the below donors for Claiming seats, making a generous donation at a house event, and being a part of the Alex Theatre’s story: .~1. Jamie & Polly Anderson Nancy Hathaway Sarkis & Laura Ourfalian Vince & Toni Beck Espinoza Steve Hunt & Karan Davies Beatriz Porto Arthur Charchian Zareh Issakhanian Peter Rusch & Scott Halloran Kevin & Nina Crowe & MeLina Khalaj Vrej Sarkissian ELissa Glickman Berdj & Mary Karapetian & Ani Keshishian Robert & Leslie Gordon Shant & Anahid Koumriqian Zareh & Lori Sinanyan Greg Grammer Philip & MeLinda Lanzafame Randy & Suzonne Slaughter & Simon Wright Mark & Marlene MacCarley Lawrence & Debra Thompson Jon & Cathy Grayson Abraham Meltzer Greg & Caroline Tufenkian Grigor Grigoryan & Lybby Carroll Peter & Allison Weir AWL Gupta & Alan Gelman Bruce & Valerie Merritt Grants The Ahmanson Foundation’s support of $75,000 combined with The RaLph M. Parsons Foundation’s contribution of $45,000 funded the ALex Theatre GLendaLe Arts was DigitaL Cinema Projector Project. The project incLuded renovating the honored to receive projection booth, keeping the two ~~mm projectors intact, and purchasing foundation and the equipment. The digitaL cinema projector wiLL be instaLLed and ready for government grant use by January 2019. support to strengthen our effectiveness and The Community iioundation of the Verdugos granted Si~.ooo for Network advance our mission Improvements a~the A~ex Theatre. Upgrades to the internet and data of serving youth. network system/wiLL provide patror)s, promoters. and staff with a faster and more reLiabLe internet. The project sets the groundwork for future venue arts organization. . . improvements that will upgrade security. Light, and sound systems. businesses, artists, and patrons in the The Los AngeLes County Arts Commission supported the Open Arts & community and Music FestivaL with a two-year S~o,ooo grant to ensure the festivaL can at the ALex Theatre remain free to the attend. In addition to the program grant. GLendaLe Arts received funding for three LACAC Summer Interns in the DeveLopment. Marketing & Events, and SpeciaL Events departments. The Power of the Arts Glendale Arts was created in 2008 to manage the Alex Theatre. Since then, we have redefined what this means. In addition to booking events, we provide guidance, structure, box office, production and technical support from inquiry to performance. We cherish the historic venue and are proud to power it Since 2015, Glendale Arts has hosted a birthday celebration for the Alex Theatre to thank supporters, volunteers, funders, and patrons. This year. the event was planned to launch the 92nd season. Unfortunately, it was a terrible time in our community. The La Tuna Canyon Fire was burning and a lot of people were in the path of danger. It didn’t seem right to be celebrating when so many were worried about their own safety. Glendale Arts made the decision to change the scope of the event. We kept the Alex Theatre open to the public as planned on September 3, 2017. The event remained free with self-guided tours, dinner and drinks.

We did not, however, ask for a donation, hold a raffle, or have what we had hoped would be an inspiring program. Instead, like it had been so many times ~ before since 1925, the Alex Theatre became a place for the community to come together and find comfort with neighbors and friends. The event was validation that the arts have the power to cultivate hope, promote solidarity, and transform tragedy into reminders that good is all around us. in addition to those who Barrett & Suzanne Duff Catherine Jurca Patricia Nearhoff Deb Walsh supported and attended M Out! Elise Kalfayan Ryan & Lauren Nearhoff Steven Warheit events throughout the year, Barbara Duran Ben Karasik Cindy O’Connor & Jean Christensen the below hosts, donors. Brian & Pam Ellis Zaven Kazazian Scott Pafford Gerald Washington Giving Tuesday supporters, GA Jim & Pam Elyea Bob & Cathy Keen Vic Pallos Lauree Weaver Members and GA Partners John & Florine Ernst Judee Kendall Debora Parks Pete & AlLison Weir contributed to making arts Vincent & Toni Beck Espinoza Phyllis Kofoed Louise Peebles Sharon Weisman accessible to all members of Amanda Faissal Natalie Komuro Beatriz Porto Raylene West the community: Roland & Joy Feuer Peter Koplik Rafa Posada Glenn Wiener & Lou & Miryam Finkelberg Joe Kroening Carl Povilaitis Rosemary Montana Justin Akin Ellen Finnigan Phil & Jackie Kubel Ann Ransford Stephen & Sue Wilder Aram & Nvard Atajajian Marie Fish Sarojini Lall Velvet Rhodes Bill & Elaine Wilkerson Elaine Alexander Andrew Fodo Philip & Melinda Lanzafame Laura Richarz Janelle Williams Anahid ArakeLian Margaret Forder Patricia Larrigan Julie Rico Brian & Eileen Wolf Jeanne Armstrong Anita Gabrielian Camille Levee Stephen & Pamela Ropfogel Glenn & Katherine Vamada Amy Asaturyan Andrew Garsten Julie Lister Andrew Roth Lusine Yarian Michael Bain & Nancy Michael & Helen McDonagh Brad Liston Sahak & Angele Sahakian Usa Yeghiayan Judith Baker Michael & Karen Genne Cord Lovelle Maria Sahakian Leo Zalyan Timothy Bamrick Barry & Judith Glickman Mary Anne Lulucki Rodney Salazar Adventist Health Glendale Dr. Richard Bardowell Elissa Glickman Mark & Marlene MacCarley Kurt & Elaine Sawitskas CA Retired Teachers & Greg Elmore Vincent Gold Patricia Magoffin Jenny Schwing Association Sean Bersell & Heather Norris Steve & Dana Goldberg Andre Manukyan Judy Seelig City of Glendale Megan Bhattacharyya Greg Grammer Mary Mardirosian Mike & Belle Shaar City of Glendale Mayor & Shannon Boggs & Simon Wright George Mata Jeff Sielaff City Council Members Carol Ann Burton James & Elizabeth Gray Chad Mats Jose & Monica Sierra City of Glendale’s Community Elsa Chagolta Marion Graydon Julie McNichots Patty Silversher Development Department Russell Cinque. Jr. Dr. Peter Green Stephen Meek Zareh & Lori Sinanyan Comic Cure Eva Cohen David Greenbaum Trey Melson Randy & Suzonne Slaughter Cushman & Wakefleld Alexis Colett Arye Gross & Dawn Shippy Alandy David & Peggy Smith Downtown Glendale Peter & Elaine Colett Ronnie Grzywinski Eileen Merino Jacqueline Smith Association Joy Conder Eleanor Hall Mary-Elizabeth Michaels Ian & Pam Spiszman Eden on Brand Andrew Corcoz Marcia Hanford Denise Miller Deborah Steckling History For Hire Morgan Cowling Nancy Hathaway Joseph Miller Vardan Stepanyan Hutchinson & Bloodgood Jon & Laura Crook Shirley Ann Hill Henry Minuk Marc & Jeanette Stirdivant Los Angeles County Arts Kevin & Nina Crowe & Joyce Briscoe Samantha Montalvo Chip & Nancy Stone Commission Natalie Cueva Bruce & Debbie Hinckley Chris Montalvo Mike & Karen Swan Massage Envy Glendale Jamie Nichols Kimberly Holland Edelman Lido & Lourdes Montalvo Rich Talarico Porto’s Bakery & Café Kevin Dean Peter & Stella Hosharian Michelle Montalvo Sharon Townsend Supervisor Kathryn Barger Richard & Susie Dell Harry & Debbie Hull Javier Mosquera Charles & Paula Unger The Accountancy John DeMartini Susan Hunt Hernan & Aida Mosquera Armen Vartanian The Stone-Beck Group Art & Paula Devine Alex lIes & Sandy Kipp Adam Muto Michael & Mercy Velazquez The Walt Disney Company Movses D’Janbatian Janice Jafari Jacqueline Myers-Cho Gary Vlahakis Wolfe Foundation Kevin Doran Sarah Johnson Geoff Nearhoff Joylene Wagner The ALex Theatre $1.5 million in revenue that season, Glendale Arts contributed The Alex Theatre hosted a supported jobs, generated $180,000 in rental assistance to dynamic 2017-2018 season The income, and grew tourism these and other performance programming attracted 90,000 Resident Companies organizations to ensure their presence at the the Alex Theatre patrons who were diverse in age The Alex Theatre is home and ethnicity. Theatre-goers 0- ~ to six Resident Companies ( - :~ usually dine at restaurants and representing the best that - shop at stores in Downtown Los Angeles has to offer across ‘C Glendale prior to attending the r various arts and entertainment I event, This year arts patrons disciplines hroughout the attending shows contributed

Gay Men’s Chorus of Los Angeles Los Angeles Ballet dazzled Musical Theatre Guild continued entertained and inspired during audiences with favorites such as its 22-season tradition of its 39th season with Music The Nutcracker and Swan Lake in presenting Broadway’s forgotten From the ‘gos and a concert its 12th season. gems and undiscovered showcasing the depiction LGBTQ Los Angeles Chamber Orchestra treasures, performed by some of culture on The Silver Screen. presented a milestone 50th the finest musical theatre artists Glendale Youth Orchestra marked anniversary season of in the Los Angeles area. 29 years of presenting high- performances, along with its Alex Film Society treated classic caliber performances as one of educational program Meet the film fans to some of their favorites Los Angeles County’s leading Music designed for elementary on the big screen, including the youth orchestras. school students. 20th edition of its annual The Three Stooges® Big Screen Event! Music Alex took on the music of Music from all corners of the Buffalo Springfield. The yearly Comedy world across an eclectic mix fundraiser for the Autism Think The Alex served up plenty of laughs of genres could be heard on Tank featured a collective of throughout the year the Alex stage throughout rock musicians and a special Presented by Comic Cure in the season. guest from Buffalo Springfield association with Glendale Arts, The Theatre hosted the 85th itself,RichiefoundingFuray. member 92nd92 Jokesbirthdaycelebratedwith a thespecialTheatre’s birthday celebration for composer, conductor, pianist, Additional highlights included club-style show on the stage and a and jazz musician Lab Schifrin, a performance by 19505 vocal [ineup of ao6 comedians delivering known for writing classic pop trio The Lettermen; their best one—liners, breaking the television theme music and Malkhas Jazz Band featuring previously held Guinness World over 100 film scores such as a collective of Armenian jazz record for the most number of Mission: Impossible. performers, and numerous comics performing in a single show The Wild Honey Orchestra’s topincludingLatin AmericanGianmarcoartists,and OrkianBritish-Armeniankicked off hiscomedianNorth AmericanKey fourth annual concert at the Eva Ayllon. tour in support of his new show, The Guilty Tour, delighting the

. I stand-upaudience comedywith his sidesplittingand masterful

1’ piano playing. .. The Alex also hosted several 4J}~ stand-up specials presented by ‘~‘~N %~ : ~ ri Company,Comedy Dynamics/Theincluding SteveNacelleLemme

, ii and Kevin Heffernan, creators of Super Troopers; the first episodic TV shoots and network the HBO comedy. In addition stand-up special for Michael Yo, specials. to the show’s stars Larry David co-host of CBS’s The Insider; This year, the Alex was the host and Jeff Garlin, this episode Saturday Night Live alum Finesse venue for the Pentatonix holiday featured a lineup of guest stars, Mitchell’s Showtime special The special, A Very Pentatonix including Lin-Manuel Miranda, Spirit Told Me To Tell You; and Christmas. The GRAM MY’~ Nick Offerman (Parks and Rec), Kevin Smith’s Showtime special Award-winning acapella group F Murray Abraham, Chris Silent But Deadly, filmed on the was joined by Jennifer Hudson, Sullivan (This Is Us), and Marc night when he famously survived America’s Got Talent winner Platt (prbducer of La La Land), a heart attack backstage Darci Lynne Farmer, and country with music composed by following the first set. music singer Brett Eldredge for Academy Award-winning Film & Television Shoots the festive occasion watched by La La Land composer Justin millions on NBC. Hurwitz and choreography by The Alex is a go-to venue for a Tony Award-winning director of variety of film and television Viewers of Curb Your Enthusiasm The Producers, Susan Stroman. productions, from the previously might have recognized the Alex mentioned comedy specials to in the Season g finale episode of Awards Ceremonies In tandem with the high volume of filming activity at th Theatre, this season saw the return of the Location Managers Guild International (LMGI) Awards t th Alex, which honors professionals working in locations for feature films, television programs, and commercials around the globe The Hollywood & African Prestigious Awards (HAPAwards), formerly known as the NAFCA Honors returned for the second year to award recipients for achievements in the film and music industries The event, designed to promote African cinema and culture, featured special guest of honor His Imperial Majesty Ooni of Ife, of Nigeria. I. ‘4 a

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- I,’ “I could not have asked for a better place to put my album release show together The Alex is an incredible theatre with a wonderful staff wonderful crew, wonderful energy. Everyone at Glendale Arts has nothing but love and passion for the arts, something that is very near and dear to my heart”

- Jacob Armen, Drum Prodigy / Multi-Instrumentalist

On-Stage Conversations and Community Events Motivational Conferences Glendale Arts partnered with the City of Glendale The LA Times Festival of Books presented the Los throughout the year to host a number of events. Angeles stop on the book tour for John Green The second annual Glendale Tech Week made the (The Fault in Our Stars) in support of his new novel. Alex Theatre its central hub once again for an array Turtles A!! the Way Down, with an on-stage of programs and activities, including a Shark conversation and multi-media event featuring his Tank-style Pitchfest and the closing party. brother Hank Green. The annual Armenian Genocide Commemorative New York Times best-selling author Rachel Hollis event featured a keynote address by Dean Cain, held her two-day conference Rise, bringing producer of Architects of Denial. as well as an together women from all over the world and address by Congressman Adam Schiff and a variety different walks of life under one roof to be inspired of choir and dance performances. and feel empowered to pursue their dreams and goals. The event was followed the next night by a

screening of Crows of the Desert - A Hero’s Journey through the Armenian Genocide, presented in association with Los Angeles County “My life has become so much more meaningful Supervisor Kathryn Barger since becoming a volunteer a few years ago... Thank you from the bottom of my heart for VoLunteers allowing me the pleasure to serve my community in such a splendid landmark Volunteers are the backbone of support with such an amazing group of volunteers at Glendale Arts. They make the loftiest and staff” ambitions of our organization a reality. Volunteers usher at the historic Alex Dotty Stevens, Theatre, assist at the administrative offices, 2018 VolunteerAmbassador of the Year serve on the Glendale Arts Board, Advisory Board or committee, and help at Glendale Arts events like Taste Walk Glendale and a’ the Open Arts & Music Festival as well as work on special projects. 125 volunteers generously contributed .1 thousands of hours to ensure pleasant and enjoyable experiences for more than 100,000 patrons this year. Their contributions are important to the continued growth of Glendale Arts. Types of Events at the ALex

12~ 12~

Film/TV Community International Shoots Events

13~’0 13~

Concerts Dance Musical Theatre/Variety 8~ 13~° 5% Youth Events & Speaker/ Fitm Performances Comedy/Awards Screenings Who Visits the ALex? The Alex Theatre attracts people Greater from around the world. This year, patrons came from Africa, Asia, Los Angeles Australia, Europe, South America. and North America with a majority of guests hailing from Southern S California. Here are the Top 25 cities according to ticket sales 0 information. How does your city © fare in comparison to others? C 0

1. Glendale 14. Mt. Washington 2. Burbank 15. Echo Park & C® 0 3. La Crescenta/ Silverlake Montrose 16. Granada Hills 4. West Hollywood 17. Altadena 5. Los Feliz 18. Van Nuys S 6. Atwater 19. Pasadena 7. Sherman Oaks 20. Toluca Lake 8. Studio City 21. North Hollywood 9. Encino 22. Lake Balboa 0 10. Tujunga 23. Tarzana 11. Valley Village 24. Reseda 12. Highland Park 25. La Canada 1 13. Hollywood Flintridge FinanciaL Data

Organizational Expenses Distribution

8g% 88% 85% Program Program Program Services Services Services 2015-2016 io% 11 14% General & 2016-2017 General & 2017-2018 General & Total. $2,079,347 Administrative Adm nistrat ye Administrative Total. $2,270,373 Total. $2,294,172

1% Fundraising Fundraising Fundraising

Earned & Unearned Income Revenue

68% 72% 83% Rental Rental Rental Income Income Income

2015-2016 30% 2016-2017 25% 2017-2018 15% contributions Contributions Contributions Total. $2,238,210 Total. $2,387,903 Total. $2,208,756 1% 1% Miscellaneous Miscellaneous Miscellaneous & In-Kind & In-Kind

2% In-kind Spec aL Events Special Events FinanciaL Data Program Revenue as a Percentage Total. Net Assets of Program Expenses For the years ending 2016, 2017 and 2018 2017-2018 Total: $570732

2.000.000 go% 500.000

i,800,000 80% 450,000 —

i,600.000 70% 400,000 —

1.400.000 60% 350.000

1.200.000 50% 300.000 1.000.000 40% 250,000

8oo,ooo 30% 200.000 6oo,ooo 20% 150,000

400,000 10% 100.000

200.000 0% 50.000

0 0 2015-2016 2016-2017 2017-2018 2015-2016 2016-2017 2017-2018

2015-2016 2016-2017 2017-2018 2017 2018 Program Revenue: $1,859,215 Program Revenue: $1,999,486 Program Revenue: $1950956 current Assets: $458,079 Program Expenses: $1,543,209 Program Expenses: $1.714,764 Program Expenses: $1,842,381 Long-Term Assets: $112,653 Percentage Covered: 83% Percentage Covered: 86% Percentage Covered: 95% Unrestricted Net Assets: $127,628 Restricted Net Assets: $104,495 As a friend and supporter of Glendale Arts, you deserve to take a bow! Because of you, 90,000 people attended an Alex Theatre event during one of our busiest seasons. Your support also made community events like the Open Arts & Music Festival, Taste Walk Glendale, PopUp! and GA Edu Technical Internship programs possible. Bravo! Encore!

As good as this year was, we faced some challenges. A decade ago, when the City of Glendale approved the creation of Glendale Arts to manage the Alex Theatre, we never imagined we’d have to weather a great recession, survive the elimination of the State’s Redevelopment Agency or see a reduction in public funding. And yet these are just some of the challenges we have experienced. We’ve conquered each of these thanks to the dedication and generosity of the board of directors and volunteers, staff, promoters, artists, and donors.

As you know, our vision for the arts is bold. Despite some challenges, we managed to grow, bring the Alex Theatre alive with patrons and productions, and provide exciting events to the community. Your support provided encouragement to fulfill our mission and helped deliver $180,000 in rental assitance so non-profit organizations and Resident Companies could perform at the Alex Theatre.

Although we celebrated many accomplishments this year, the financials do show a loss (the first in several years). It can be attributed to the following:

Financial Responsibility • Glendale Arts changed its accounting procedures from FY17 to FY18 for donor restricted, program and other liability accounts, so income received in these areas is now deferred until the expenses are incurred. For instance, although we raised $75,000 in FY18 for the Open Arts & Music Festival, this income will not be accounted for until the event (which will be September of FY19).

• Glendale Arts saw a significant increase in workers compensation insurance. The organization paid $20,000 in premiums after an insurance audit of our FY15 / FY16 payroll.

Staff and administrative overhead increased because of the addition of new positions to generate earned and contributed income: Fundraising, Events, Concessions, Box Office, and Volunteer Services. GLENDALE ARTS 2017-2018 BOARD OF DIRECTORS Making the Alex a Haven for the Community Executive Committee The Alex Theatre’s 92nd birthday celebration coincided with the La Tuna Canyon Fire. We Vincent Espinoza, Chair decided to forgo all fundraising, and instead simply offered a distraction from the fires with Peter D. Weir, Vice Chair a free meal, drinks, and tours. It was right to change the scope of the event but because we Mark MacCarley, Treasurer did not ask for donations, we missed our target of raising $20,000 at the celebration. Randy Slaughter, Secretary Elissa Glickman, CEO Doing More with Less Dr. Richard Bardowell Phil Kubel Per our Lease and Management Agreement with the City of Glendale, Glendale Arts saw a Pamela Elyea Abraham Mettzer $215,000 reduction in our management fee. The City of Glendale has contributed $415,000 Dr. Peter Greene Charles Moore annually to Glendale Arts since 2001 to offset maintenance, staff costs, and equipment Ronald Grzywinski Paula Unger necessary to operate the 93-year-old venue. In 2018, the City contributed $200,000. Harry Hull Jill Vasant Susan Hunt Lisa Yeghiayan Ani iKeshishian The good news is our losses would have been far greater had it not been for the donation of time, talents and support of our board, staff, donors, supporters, and partners like you! Advisory CounciL Jeanne Armstrong Max Howard It’s only with your continued assistance that we can create a more vibrant creative, and Alex Baroian Rick Lemmo William Boyd, Jr. Betty Porto healthy community with significant and enriching programs in the City and at the Alex Marco Brambilla Jose Sierra Theatre. The question is, are you ready for your encore? Patrick Campbell Gene “Chip” Stone Randy Carter Michael Velazquez Sincerely, Eileen Givens Joylene Wagner Vincent Espinoza and Elissa Glickman Jeero Habeshian Jim Wilke Board Chair and CEO Bruce Hinckley Elaine Wilkerson Glendale Arts 116 W California Ave Glendate, CA 91203

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BUDGET vs ACTUAL OPERATIONS GENERAL RENTALS ‘ iMPROVEMENTS TOTAL FY18 COMPARISON Jul’17- Jun10 undoes Lover B58got % or Budget Jul’17 -Jun10 Budget $ Over Budgot % of Budget Jot”? -Jan18 Budget $ Over Budget 04°f Budget Jul’17 ‘Jan10 Budget $ Deer Budget 0408 Budget Jail? -Jun10 Eudgot $ Over Budget 0400 Ondgot Otdinory lncomelEtponne iecome 4000 Contributions

4050 Management Fee 125,000.00 125,00000 - 1000% - - 75,00000 75.00000 - 100.0% 200.000,00 200.00000 - 100.0%

4190’ ltd trtduott 29,511.01 504500.00 125.988 99) 53 17% . . . 00% 2.00 - 2.00 1000% — 00% 25,51301 55,500.00 25,086 991 53 18% 4200 MembershIps 450.00 450.00 • 100.0% - 45000 45000 - 1000’A 4300-Grants 3.78000 2.780,00 1,000,00 13597% 960.00 725,00000 1124,040 00) 0.77% 4,740 00 127.790,00 (123,040 001 3.71% 4400 - Campaigns! SpecIal Proj008s

4401 - soot Naming 32,993.50 191,000.00 1118.006 607 11.95% - - 0.0% . - - . 00% 32.95350 151,00000 (118.00056) 2185% 4402- tttamtnote - 6.50920 5,000.00 1,50020 13016% 6508.20 5.000,00 1.508,20 13010% 4403 - Capital Projects 0.0%

4404- Donor Walt - - 0.0% - - 00% 15,000,00 15,00000) 0.0% - 05,000.00 (15.00000) 00% 4405- Open Grotto 4,751.61 540000 (240 39) 95 03% - 4.751 61 5,000 00 (248 39) 9503% 4408 - CSP Other 1350 00 (1.750 007 0,0% - - 1,75000 (1.750 007 0.0% l’otol 4400- Camps(~ns?5pec(at P,cdcctn 32992.50 151.00000 (116.00056) 21 85% - — — 00% 4,751 61 6.75000 (1,899 391 70 35% 6.50820 20.00000 (13,490 80) 32.54% 44.253,31 177.75000 (1304496.697 24.9% 4000 SpecIal Eeents 40000 - The Taste

450001 - Sponnorships - TheToste 00% - - _ . 00% 400002 Tiokot Soles - The 10500 00% - - - . 00%

Total 45000 ThE Taste 00% - - _ . 0.0% 4501 - SE Tiokois 23.06390 5,30300 28,967 70 . 2046? 70 100.0% 4502 - SE Donutions 5000 00.00 50.00 1000% 4503 - SE Auction 200.00 20000 200.00 1000% 4500 - Special Events - Other - - - 00% - - - 00% 1. 560. 00 11,500 00) 0.0% - - 00% 1.500. 00 (1,50000) 00% Total 4500 - Special Evonns - - - 00% - - - 00% 23.91390 1,50000 22.41390 1.59429% 5.003,80 - 8,30380 1000% 29,21770 1.50000 27,71770 1,947.85% 4600 - In-Kind 8.45961 9.70000 1.230.39) 97.32% 2,641 16 10,310 77 9.700. 00 1,610.77 116.81% 4799 - Sponnorships 5,585.00 . 5,595.00 0000% 28,75000 35,000 00 (6.25000i 6214% 25,00000 25,000.001 00% 34.33500 15.00000 (40.665 007 45 75% 4805 - Other 6.158 05 6.15605 6.105,05 100 .0% 4050- Coniribotions -Other - - - 0.0% ------0.0%

4000 - Corirlbutlonu 203.475,55 334,730.00 (131,264441 60.79% . - - 0.0% 66.94712 177.95000 (111.102 081 37.57% 89.65316 120,00000 730.346.947 74.71% 359.97504 647,68000 (287,704 167 55.50% 4910 - Rental income 4511 - Alet Theatre Rental trcome 572,e30.25 630,00000 42,830 25 106 77% 672.63125 630,000.00 42,631.25 106 77% 4512 Programming Fund income - - 1005% 0.0% 4513 - Rental Subsidies (161.245.50) (125.000 007 (35.245 507 9 18% (161.245.50) 1125.000001 (38,245 507 120.0% 4514 - Sonlement Redaction (11.46558) (11.469 99) - (11.466 95) 1000% 4510 Rental Income- Other - - - 00% - 0.0% 4510 Rtntai income 490,516.77 505.00000 (5,083.237 90.99% - 459.91677 505.00000 (5.093 23) 9899% 4520 - Labor incomo 4521 - Stage Lobor 296,717.25 393.35000 3.39725 10086% 256.717,25 353,35000 3,36725 000.86% 4521 - Security incomo 67,67107 55.600,00 12571.67 121.7 1% 67,671 67 55,600.00 12,071.97 121.7 0% 4523 - Front 00 10009° incom a eo,517.7n 60.75000 5.76771 10949% 06,517 71 60.75000 5,78771 TOO 45% 4524 - Conteact Labor Income 2,255 56 2.000,00 358.56 0 17.93% 2,358 56 04000.00 355 56 117 93% 4525 - Molnttcnonco income 104684.00 20.60000 (04916. 007 90.7% 10.60400 20.60000 71.916 007 80.7% 4526 Boo 0101cc Income 359.00 350.00 900 102 57% 8000 43900 350.00 89.00 125 43% 4528 - Labor St,bnldlcn (27500) (275.00) - 1000% (4.578.757 (4,000.011 l879.~~l 124.47% (5,252 75) (4.275.01) (578.74) 122. 99% 4520 Labor Income 94.00 75.00 900 112.0% 547,000.44 528.29999 18.75045 103.55% 547.03444 528,374 89 18,75945 103 95% 4530 - Production income 4531 FrodocUon Equlpmrnt 90,620.62 67.00000 23,62002 13526% 90.62062 87,00000 23,52062 13529% 4532 Prodsotion Sorvices 00% 1.62500 1.625 00 . 1,625.00 1000% 4933 - Production SubsIdIes (8.315.00) (3,900 00) 14,51556) 216 82% (0.315 00) (3.800 001 74,515 00) 219 82% 4530 - Production Income - Other - - 00% - - - 00% - - 0.0% 0.0% 4530 - Production income - - - 0.0% 62,305.62 63.20000 19.109,62 130 23% 1,62500 - 1.62596 100. 0% 63,93062 63,200.00 20.73082 132. 0% 4539 - Programs Tioknt Income 27.50096 (27,500 00) 0.0% 27,500.00 727500 00) 0.0% 4535 - Vendor Fee income 95800 558.00 - 1000% 55800 55800 1000% 4540 TIcket ServIce income

4545 OA.TiX 3,084.00 90000 2.194 00 343 78% - 3,00400 900. 00 2, 194,00 343 78%

4542-Cced(tCardFeolncome 1.113,79 700.00 413.79 159.11% 63.792,18 54,30560 9,54259 117.6% - 25000 (250001 0 0% - 64,86505 55.15900 9,70638 117.6% 4543-Internet Phone Tickot Fees 80,402.83 80,000.00 402.83 100.45% - 90,402 83 804000.00 402.83 100 46% 4544 - Tichetleg Sore(ce F00ISABO Fee 39,466.60 00,00001 710.033 41) 7983% 0.0% - 09,46660 50,00001 (10, 533 41) 78. 92% 4540-Restoration Feeinoome - 00% 90,407.77 95.000,00 (4.512 23) 9525% 00,40777 95.06000 (4,51223) 95. 25% 4549 - Frogr010i Fee Income 80,487.77 55.00000 74.512.23) 9525% - 90.49777 95,000.00 (4.512 23) 9525% 4047 - Arts Fee incomu 47.74432 55.00000 7.255 60) 8681% 00% 47,744.32 55,000.00 (7355 68) 9681% 4540-Walk UpTioket Fee income 9-564.96 9,89599 (435 43) 95.65% 8.56456 9,989. 89 7439 437 8595% 4645 - Tickot Sorelce income - Other 2,627 74 2,627.74 1000% 2,827 74 2.627,74 1000% 4557 - 00145101 Foe - 0.0% - . 0.0% 4558 - ConsIgnment TicIiats 34 25 - 34 25 100.0% 3425 - 34.25 100 0% 4540 - Ticket Service income - Otho, - - - - 00% - - - - - 00%

4540 - TIcket Service income 51,052.11 56500400 (4.647.99) 51.75% 296.325,94 295,20960 (2,87366) 99.04% - 25000 (250001 0.0% 90.487 77 904000 00 (4.512.231 85.25% 438.77582 451,05960 (12,283 78) 97 28% 4500 - Coaconnloec 4551 - Coocesn Ions Sales 150,035.55 120.00000 30.10855 125.12% 384497 250000 14497 101.14% 153,78352 123.50000 30,28352 12452% 4552 - Conecnnlonn TIps 17,59452 - 17,594.52 100.0% 17,59452 - 17,594.52 100 0% 4554 - Cotating income 49940 - Catering Labor Incense 2.79225 5000.00 12,247.751 55.05% 2,75225 5.000,00 (2,247.75) 95.05% 46546 - Catering Product 7,908.13 2,50001 5,408.12 21632% 7,908 13 2,500 01 5,408.12 31632% 4554C - ReceptIon Fees 7,73000 6,525.96 1.20900 116.47% 7,73000 6,525.00 1,205.00 11847% 4554D . Cat~ri nn Subsidies (1,433 401 (700.001 (733.40) 204,77% 11.433 40) 1700.001 1733. 401 204. 77% 4554. CaterIng Income Olsen 00% 0.0% local 4554 Coloring Income 16,656.98 03,32501 3.621 97 127.26% 16,956.98 13,325.01 3.631,67 127 26%

4550 . Con~es~Ions 184,69005 133.32501 51005.04 136.53% 3,54457 3,500.00 14497 104.14% - 188,30502 126,825.01 51,510.07 137.65% 4960 . Merchandise 4561 ONAicix Merchandise 10000 (100001 0.0% 5900 3035 35.00 1,29 000.57% 95.25 135.00 (39,76) 7056% 4562 ShowiPrem000, Merchandise 23,073.30 16.00000 7.673 30 147 96% 23.67330 19,00000 7,67330 147 56% 4560 . Morchandisa - Ocher 0.0% 0,0% 4580 Merchandise 10000 (10000) 0.0% 23,73230 16.000-00 7,732,30 149.32% 3925 35.00 1.25 102.57% 23,768 55 16,135.00 7,632.59 047 31% 4570 . OAEde income 4571 ACT OUT TUITION 00% 0.0% 4572 Art Works - 0.0% 00%

4570 . GAEdu Income 00% 00% - 0.0% 4560 MarketIng Revenue 4581 Marketing Services 00% 00% 4602 . Athxreis)rg Renanue - 0.0% 0.0% 4583 . Event Services Par Inn,. 00% ‘ 0.0% 4585 Morkeilng Rev. Other 100,00 100.00 . 100.00 100.009

4580’ Marketing Revenue 0.0% 100.00 100.00 . 100 00 100.0% 4590 Miscellaneous Revenun

4501 . Fiscal Agent Revenue 537,46 53749 1000% 53749 . 53748 1000% 4592 - ConceIratlon Fee 00% 00% 4593 . BanhjFlnancla I Service Foe 79,10 2,951.90 2,95190 100.0% 2.03050 3,03060 1000% 4594’ Oamage&t.ens 4.69150 4,59190 4,591.50 1000% 4599 Misc. Subsidies 150.001 1300. 001 1350.00) 135500) 100 0% 4599 Miscellaneous Rtvrnnje- Oiher 0,649,71 12,350.29) 41 24% 2,701,08 10,00000 (7.298.021 27 01% 24690 1,00000 (754 201 24 59% 4,925 46 15,00000 110,174 ~ 3217% 4590 . Miscellaneous Rnnunue. Other ‘ ‘ 0.0% . , 0.0% . 0,0% - . 0.0% 4509, Miscellaneous Revenue 2,215.90 4,000.00 11,764.10) 554% 9,8—48 10,000.00 155.52) 99.45% 245.80 1,00000 (764 20) 24,66% 12,63505 15.000,00 (2.084.95) 84 23% Tonal Income 257,72787 395,50500 (137,777.431 65 16% 1,644,07690 1,555,034,60 69,041.00 105.73% 72,997.14 210,753.00 i137,835,86i 34,61% 180,140.93 215,000.00 154.95907) 0379% 2,155,130.11 2,251,332.80 (236.202.49) 90 12% 9.26619 Expense 10000 ‘ Purlial Senlement 00% 0.0% 90900 ‘ R000nciliallon O(sctopsnclos . ‘ ‘ 0,0% ‘ - 0.0% 7000 ‘ Salaries and Wages 134,014 93 139,151.04 (5,136.111 00.31% 218,879,72 245,454 54 (6,774 82) 57 24% 15,83800 15,839 56 ‘ 1000% 62,57853 69,56692 (4,010.20) 03.08% 451. 10624 467,02945 115.021231 6659% 7200 ‘ Hourly Wages 33,431.18 28,087 50 5,343.98 119 03% 656,09290 570,30631 120,213.41) 90.51% 61,02659 77,942.25 (10,415,65) 76.94% 23,652.65 26,231.83 (2,579.191 50 17% 678,703 32 710,587,99 )33,854,57( 9523% 7300 ‘ EE Guy000 )VscaootnSanetance) ‘ 3,884.90 ‘ 3.884 90 100,0% ‘ . 3.994 90 3,88490 100, 0% 7500’ AccountinglPayroil Charges 14,43247 15,141 00 1707 s~1 95 33% 92,15341 75,64570 16,707 62 12209% 1.03586 925.00 110.60 111.96% 29.93 . 2690 100,0% 107,64567 61,711.79 16,137 88 117 6% 7980’ ltsntance 22,534.14 22,221.27 10,687,13) 60,94% 95,045.76 87,59292 (2,547 16) 9709% ‘ ‘ 0.0% ‘ 107,579 00 110,814 19 112.234204 89. 79% 7700’ MarketIng 17,904 51 11,594.07 112,690 56) 56 78% 23,662 17 30,00001 l6.03’-8~) 78,87% 56,671 50 56,120,00 551,50 100.99% 1,524 16 7,500,00 (6,475 841 13,66% 99,35242 125,314,09 (25,851.65) 7928% 8000 ‘ Duos and Subscriptions 3,575,65 4,300,21 (723.56) 83 17% 250,52 20000 50 52 125 28% , 12500 112500) 0 0% . 3,827 17 4,82521 (798 04( 8275% Enuinnneel Exee,mn 8110’ Equlpmetl LesEe 3,14681 1,479,70 1,507,11 21267% 2.270,73 3,46000 209 271 0399% , . 6,417 54 4,95870 1,45784 120 39% 8120 ‘Equipment General 7.54255 9,20000 1,442 59 123 27% 601 37 ‘ 601.37 1000% 274,96 5,721 00 6,500 00 (769001 88 17% 14,249 92 12,700.00 1,549,92 112 2% 0183 ‘ Equipment MenIal 993,60 1,000.00 16.400 90.38% 11,072.11 9,03000 2.04231 122 62% 27,80266 27,40000 47759 101 74% 67592 40,54401 37,45500 3.08501 106 25% 9150’ Special P00(0099 ‘ ‘ ‘ ‘ ‘ 0,0% 6,065,51 26,859,00 (20,823.19) 23,56% 6,565.81 26,09900 120,823.16i 22.58% 9100 ‘ Equlpnienl Expense 11,78309 5,679 70 3.10310 135 75% 14,94441 12,81000 2,414,41 119.46% 25.17754 27.42500 702,54 102.74% 12,372 33 33,159,00 (21,016 97) 37 06% 67,27725 62,003,70 (14,72542( 8204% 6200 ‘ 1916,600 Expense 754,18 ‘ 784.18 100,0% . . 76418 78408 100.0% 9300 ‘Ticketing Syslem Fees Eupensa 368 15 75000 1381 85) 40 00% 30,80822 44,500,00 (13,691.781 69. 23% - 050,00 (850 00) 0 0% 31,176 37 46,100,00 (14,921 eli 67 61% 8490 ‘ Oevc)opmont and Fstdralslng 11,789,49 10,kOO,00 1,189,40 111,22% . , , 00% , 75000 (756001 0,0% 25,50000 (25,500,00) 00% 11.759,49 36.85000 (25.05051) II 99% 8430’ Volunteer Coondinatlon 62 00 1,000 00 (929.00) 6,2% 58497 4,00000 (3,415,031 1 4.92% 2505 , 25,96 0000% , 87293 5,000,00 14,327.071 1345% 8580’ Pnofxst(onal Fees 11,757,00 7,590.00 4,177,00 155,03% 200.00 ‘ 200 00 1 00, 0% 6,92500 7.00000 I’S 001 95 93% 1,332 00 20,224 00 14,59000 5,63400 1386209 8500’ Contiact Labor 2,70000 2,40003 30000 1125% 69,60745 59,698,04 8,609,45 114.92% 5,630,50 6,82000 10,50 100.19% ‘ 76,93790 67.718,04 9.219,95 11362% 8559 ‘Artists Fees 550.00 ‘ 550,00 100,0% . 12,550,00 37,89000 14.500 001 87 05% ‘ 33,500 00 37.85000 (4.359 00) 86.51% 9800 ‘ Postage and Delivery 1,831 47 1.500,00 331,47 122 1% 1.423 92 1,50000 176 08) 94. 93% , . 3,255 35 3,000.00 255. 19 108 51% 9900 ‘ Rent aed Lease 7,542,86 7,54656 (1 981 99 95% 26,158,31 26,09005 66.23 100 25% ‘ 3,000,00 13,000 001 00% 33,70126 36.63904 12,937 751 01 98% 9000 ‘ Teiephoneiln cornet 9,461 20 17,272.00 17.808 60) 54 70% 26,36045 20,34000 5,040,45 124 78% 27000 708,00 (dOS 00) 38,14% . 35.11365 38.320,00 (3,206 251 91 63% 6100 ‘ 099109 SuppllesiFutnllore 2,666,66 2,15000 81686 137 99% 5,047.83 5,55000 1802171 8629% 17771 56500 (322 29) 15 54% ‘ 9,15677 8,50009 1301 23) 8643% 9200 ‘ Utilities 6.716 59 7,500.00 1703,421 8958% 119,16038 129,34000 110,219 92) 82 1% . ‘ 125,67666 158,660,00 (11,003 041 91 66% 9300 ‘ Theatre Maintenance 153.00 . 153 00 100.0% 41,906.33 55,414 04 (13,410,711 7579% 21.81567 13,000 04 8,615,63 167.51% 63,967 00 68.41408 (4,447 081 93.5% 9400 ‘ 7009k 45006 650,00 (95.941 61 83% 16,242 16 00,00000 6,242 16 nez 4200 , . 16,99222 10,550.00 6.142,22 1 58 22% 9500 ‘ Employee Expenses 42,133,99 57,386,26 114,262 271 7515% 143,292,67 116,50260 26,38017 122 58% 3,65743 6.27922 (2.620 ‘Si 5626% . 190,05406 150,57699 9,50711 105 27% 9700’ Depreciation Expense ‘ . ‘ 00% 00% ‘ 00% 9900 ‘Travel & Enlorlainmeel 2,251.21 2,495,90 (243 70) 90 23% 8,406.93 7,95000 51693 1066% ‘ ‘ ‘ 00% 8.40 10,726.54 10,44500 281.54 1027% 9910’ Hospitality Expense 10,652,62 10,450,00 233,82 102 24% 3,433 10 00000 2.533,10 572.18% 6,230 55 6,50000 1,710 95 126.83% 2,651 95 5,000 00 12,148 051 53 04% 27,72568 22,560.00 5,165.65 1225% 9920 ‘ PenmilslLlcenses 34550 1,07475 5,28300 6,00000 . 10,70375 6,000.00 4,701,75 178 4% 9930 ‘ Coroesnions Expense 112,76 48,482,05 35,10000 9.19205 12239% 25660 20000 2 40) 98 69% , 48,851 44 39,56000 9,291 44 122 49% 8940 ‘ Mntoliundlso Expense ‘ 20000 (200 00) 0.0% 1,10411 ‘ 1,104 13 100.0% 02112 ‘ 2,02545 1,125,00 900,45 180 04% 0 9950 ‘ Bad Debt Expense 033 013 100.0% - 022 033 100004 8900 ‘ Leon Repayment 00% 00% 9990 ‘ Mlkceoaneouo 802.52 3,000.00 )2,107,49( 2975% 42405 ‘ 424.05 100,00% 1,225.00 3,500,00 (2,295.00) 35.29% 22.53 2,584 40 6,500.66 13.915.601 36.76% Tonal Expense 352,34318 391,68501 119,14183) 80.90% 1.558,80388 1,551.236,23 7,567.63 100.49% 232,810 11 255,113,53 (25.201 421 902% 125,405.45 177,20069 151,714,241 70.82% 2,272.172.81 2,178,244.46 1106.071.65) 9554% root Ordinary Income 194,615.610 2.819,99 (88,425501 ‘2,476,66% 85,271,74 3,79837 kl,472 07 2.244 96% 1159,85297) 147,320 63) (112,53244) 237.81% 54,84546 37,76631 16,855.17 1446% (117,042,70) 12,06614 (130,130941 ‘89420% txllrnIT s

YEAR OVERYEAR OPERATIONS GENERAL RENTALS PROGRAMGS IMPROVEMENTS TOTAL FY18 COMPARISON Jul 17-Jun10 Jul16 -Jun17 S Change % Change Jul’17 -Jun10 Jul’16 -Jun17 $ Change 14 Change Jul17 -Jun16 Jul’16 -Jun17 $ Change 14 Change J51’17 - Jun10 Jul’16 - Jun17 S Change 14 Change Jul17 - Jun18 Jul’16 - Jun17 $ Change 14 Change Ordinary IncounulEspenue Income 4000 ContributIons

4050 - Management Fee 125,000.00 132.500,00 17,500.00) ‘5.68% - 207,500.00 (207.500,00) .100,0% - - - 0,0% 75,000.00 75,000.00 - 0.0% 200.000,00 415,000.00 (215,000.00) -51.81%

418 O’Indivlduulu 25,511.01 19.847,66 9.663,35 48.69% ‘ - 0,0% 2.00 1,197.55 (1.195.551 -99.83% - . - 0.0% 29.513,01 21,045.21 8,467,80 40.24%

4200 Menlberohipo 460.00 7,410.00 18,960,00) -93,93% . - ‘ 0,0% ‘ - - 0,0% • . - 0,0% 450.00 7,410.00 (6.980,00) •93,93%

4300 Grunts 3,700.00 13.080,00 (9,300.00) -71,1% - - - 0,0% 963.00 6,400.00 (5,440.001 ‘95.0% . . 0.0% 4,740.00 19,400.00 (14.740.00) -75,67%

4400 ‘ CampaIgns I Special Projects

—91 ‘ Seat Naming 32,993.50 10,575.00 22,415.50 212.0% 4,325.00 (4.325.00) ‘100.0% - ‘ - 0.0% • . . 0,0% 32,993.50 14,900.00 19,093.60 121.43% 4402’ IllumInate - - - 0.0% - - 0.0% . , - 0.0% 6,606.20 8,700.00 (191.80) -2.80% 6.508,20 6,700.00 (191.80) ‘2.88%

4403- Cupitut Projects - . - 0.0% - - - 0.0% - . - 0.0% - ‘ ‘ 0.0% 75,000.00 - 76,000.00 100.0%

4404’ Donor Wult - 13,500.00 (13,6(0.001 ‘100.0% , 0.0% - . , 0.0% - . - 0.0% - 13,500.00 (13,500.66) ‘100.0% 4405’ Open Grants . . - 0.0% - . - 0.0% 4,751.61 ‘ 4,761,81 100.0% . ‘ ‘ 0,0% 4,751.61 - 4,751.61 100.0%

Total 4400’ CampaIgns I Special Projectt 32,993.50 24,075,00 6,918.50 37.05% - 4,325.00 (4,326.00) -100.0% 4,751.61 , 4.761,01 100.0% 6,505.20 6,700.00 (191.80) ‘2,56% 119,253.31 35.100,00 84,153,31 239.75%

4500 ‘ Spec’tal Events

4580A ‘ The Taste

4590A1 ‘ Sponsoruhipu - The Taste - • 0.0% - - - 0.0% - 25,581.00 125.581,00) ‘100,0% - - 0.0% 25.651,00 125,6t1 .00) .100.0% 4800A2 ‘ licket Sales- The Taute - - - 0.0% - - - 0.0% - 13,043,81 113.043,81) -‘00,0% . - - 0,0% - 13,043,61 (13.043.61) ‘100.0%

Total 4500A ‘ Tht Tuett - . - 0.0% - • - 0.0% - 38,624.61 (38,624.611 ‘100.0% - - - 0.0% - 38,624.61 (38,624.61) -100.0%

4501 ‘ SE Ticktts - . - 0.0% - . . 0.0% 23,663.90 - 23,663,90 100.0% 5,3(3.80 - 5,303.80 100.0% 25,967.70 - 28,967.70 100.0%

4502’ SE Oonutlons , - - 0.0% - , . 0.0% 50.00 - §0.60 100.0% - - - 0.0% 50.00 - 50.00 100.0%

4503’ SE Auction - , • 0.0% - - - 0.0% 200.00 - 200.00 100.0% - • 0.0% 200.00 200.00 100.0% 4500- Special Events- Other . - - 0.0% - - 0.0% - 20,000.00 (20,000.00) -100.0% - - - 0.0% - 20,000.00 120,000,00) -100.0%

Total 4509’ special Events . . • 0,0% - - - 0.0% 23,913.90 58,624.51 (34,710.711 ‘59.21% 6,303,80 - 5,303.80 100.0% 29,217,70 58,624.61 129,406,91) ‘50.16%

4690’ In-Kind - 2,000.00 (2,000.00) ‘100.0% 8,6(0.00 (8,000.00) ‘100.0% 8,459.61 7,909.63 659,95 7.05% 2,841,16 4,500.00 (1.655.841 -36,86% 11,310.77 22,409,63 111,090.56) -49.53% 4700’ Sponsorshlpe 5,585.00 53,563.17 (47,976.17) ‘89.67% - - - 0.0% 28,750.00 33.000,00 (4,250.00) ‘12.58% - - - 0.0% 34,335.00 86,563.17 (52,228.17) -60.34%

4t50 ‘ GIber 6,156.05 - 6,156.05 100.0% - . 0,0% . 350.00 (350.001 ‘100.0% - . - 0.0% 8,156.05 350.00 5,806.05 1,655.87% 4000 ‘ Contributions - Other - 0.0% . - - 0.0% - - - 0.0% • . - 0.0% . ‘ 0,0%

Total 4009’ contributions 203,475.66 252,475,03 (49,000.27) ‘19.41% - 219.825,00 1219,825.00) ‘100.0% 66,847.12 107,481.79 (40,634,671 -37.51% 89,653,16 86,200,00 3,453,16 4.01% 359,975,54 665,982.62 1306,006.75) 45.95% 4910’ Rentut Income 4511 ‘ Alet Theatre Rental Income - - 0,0% 672,631.25 614,241.00 55,390.26 9.61% - - - 0.0% • - - 0,0% 672,631.25 614,241.00 58,390.25 8.51% 4513’ Rental Subsidies - - - 0,0% (161 .24S. 53) (12 9,439. 321 131.806.16) -24.67% - - - 0,0% . - 0.0% (161,245,50) (129,439,32) (31,606,18) ‘24.57% 4514’ Settlement Rtduction . - - 0.0% (11,468.951 (11,468,95) ‘100,0% . . - 0,0% - - - 0.0% (11,468.98) - (I 0,468.95) -103.0% Total 4510’ Rental Income - - - 0.0% 499018,77 404,801.68 15,115.09 3.12% - , - 0.0% - , - 0.0% 499,916.77 484,801.68 15,115.09 3.12% 4520 ‘ Lab or Income

4621’ Stage Labor - . - 0.0% 398,717,25 380,945.59 5,771.66 1.48% . - - 0.0% - - - 0.0% 3)6,717.25 390,945.59 5,771.66 1.48% 4522 Security Income - - • 0,0% 67,671.67 53,849.04 13,824.73 25.67% - - - 0,0% - - - 0,0% 67,671.67 63,846,94 13,624.73 25.67%

4523 - Front of House Income - . - 0.0% 86.517,71 55 .844 .67 10,673.04 19.11% - - - 0.0% - - - 0,0% 66,517,71 55,844.67 10.673,04 19,11%

4524 ConIract Labor Income - • 0,0% 2,358,56 2,300.00 58.66 2.55% ‘ - 0,0% • ‘ ‘ 0.0% 2,358.56 2,300.00 55.56 2.55% 4525 Maintenance Income . • 0,0% 18,684.00 19,231,00 (547.00) ‘2.04% - - - 0.0% • - - 0.0% 18,654.00 19,231.02 (547,00) -2.84%

4526 Boo Office Income 359.00 - 359,00 100.0% 80,00 soDa 100.0% - - - 0.0% • - - 0,0% 439.00 • 439,00 103.0% 4528 LaborSuboidien (275.00) - (275,00) -100,0% (4.978.75) (2,697.50) (2,281.25) -64.67% ‘ - - 0,0% . , 0,0% (5,253,75) (2,697,50) (2,556,25) .94,76%

Total 4520 Labor Income 84.00 - 04.00 100,0% 547,050.44 519,470,70 27,579.74 5.31% ‘ - - 0.0% - - - 0.0% 547,134.44 519,470.70 27,683.74 5.33% 4530 ProductIon Income 4531 ‘ Production Equipment • • - 0,0% 90.620,62 90 ,36~ .76 253.87 0.28% - ‘ - 0.0% - - - 0.0% 90,620.62 90,366,75 253.87 0.28%

4522 ‘ Production Servicee ‘ 4,242.35 (4,242,35) -100,0% ‘ 0.0% 1,625.00 20,400.00 (16,775.00) ‘92.03% ‘ - - 0,0% 1,625.03 24,642.35 123,017.35) -93.41% 4533 ‘ Producelon Subeldiet ‘ 0,a% (8,316.00) 16 .907 .75) (1,327,25) 18,99% - - 0.0% - - - 0.0% (8,315.00) 16,957.75) (1,327.25) -18.99% Total 4530 - Production Income - 4,242,35 (4,242.35) -100,0% 82,305,52 83,379.00 (1,073.381 ‘1.29% 1,626.00 20,400,00 (16,775,00) .9203% ‘ - - 0.0% 03,930.62 108,021,35 (24,090,73) ‘22.3% 4536 - Vendor Fee Income - - - 0,0% ‘ 0.0% 555.00 600.00 34200) ‘38.0% ‘ ‘ - 0.0% 556.00 900.00 1342.00) -3t.0% 4640 - lOcket Service Income

4e41 - GA-TOO 3,094.00 3,538.00 444.00) -12,55% . - 0.0% - - - 0.0% ‘ - - 0.0% 3,094.63 3,539.00 (444.00) -12.55%

4542 - Credit Card Fee Income 1,113.79 1,502.85 389.06) -25,85% 63,752.19 51,300.29 12,461.90 24.27% - . - 0.0% - - - 0.0% 84,865.55 52,803.14 12,082.64 22.85% 4843-Internet Phone Ticket Fees . - 0,0% 90,402.03 85,na2,75 1,800.08 2.03% . - - 0.0% - - - 0.0% 90,402.83 88,602.75 1,800.08 2.03% 4544 - TIcketIng Service FeeISABO Fee . - - 0,0% 39,466.66 36,600.50 3,866.10 10.88% . . - 0.0% ‘ - - 0.0% 39,466.60 35,600.50 3,866.10 10.06% 4545 - Reetorueloe Fee Income . - 0,0% , . 0.0% . - - 0.0% 93,487.77 83,471.20 7,018.57 8.41% 90,487.77 83,471.20 7,016.57 8.41% 4546 ‘ Progmm Fee Income - - 0,0% 90,487,77 83,471.20 7,016,57 8.41% . - - 0.0% - - - 0.0% 90,457,77 83,471.20 7,016.57 8.41% 4547 ‘ Arts Fee Income 47,744,32 38,050,60 9,693.72 25,48% - - 0.0% - - • 0.0% - - - 0.0% 47,744,32 36,050,60 9,693,72 25.48%

4540’ Walk Up Ticket Fee Income . - - 0,0% 9,564,56 6,199.00 365.56 3.97% - • - 0.0% - - - 0,0% 9,564.56 6,199.00 365.56 3,97%

4545- lOcket Service Income - Other - . - 0.0% 2 .627, 74 5,361.01 2,734.17) ‘50.99% - 182.04 (182,04) .100,0% - - - 0,0% 2,627,74 5,543.95 12,916,21) ‘52,6% 4557- Goldstar Fee - - . 0.0% - 646.78 1845.78) -100.0% - 80,00 160,00) -100,0% . - - 0.0% - 705,78 (705.7t) -100.0% 4556’ Contignmenu Tickets ‘ . - 0.0% 34.25 - 24,25 100.0% - - - 0.0% - - - 0.0% 34.25 - 34,25 100.0%

Total 4540’ ‘nckel Service Income 51,952.11 43,091.45 8,880.86 20,56% 298,335.94 274,161.43 22,154.51 8,06% - 242.04 6242.04) ‘100.0% 90,487.77 83,471.20 7,016.67 8.41% 438,775.02 400,986.12 37,789.70 9.42%

4550 ‘ ConcessIons

4551 ‘ Concettions Selet - - ‘ 0.0% 150,136.55 118,746.99 31,391.56 26,44% 3,644.97 2,490.00 1,145.97 45.88% - . - 0.0% 153,783.52 121,245.99 32,537.53 26.84%

4552’ ConcessIons 11ps - - 0.0% 17,594.52 11,754,62 5,839.90 49.60% - , - 0.0% - - - 0.0% 17,594.52 11,754.62 5,839.90 49.68%

4654 ‘ Cuteri ng tecome

4554A Cu tori ng Lab or Income - - 0.0% 2,752.25 0,163.75 (3,401,50) -55.28% - • - 0.0% - . - 0.0% 2,752.25 6,153.75 (3,401.66) -55.28%

4554B- Catering Product - - 0.0% 7,900.13 3,051.58 4,556.55 159.15% - - - 0.0% - . - 0.0% 7,900.13 3,051.58 4,856.55 159.15%

4554C ‘ Reception Foes - - - 0.0% 7,730.06 6,450,00 1,280.00 19.85% - - - 0.0% - - - 0.0% 7,730.00 6,450.00 1,280.00 19.85% 45540 Catering Subsidies . - - 0.0% (1,433.43) (605,00) (748.40) .109.26% . - - 0.0% - - - 0.0% 11,433.40) (685.00) (748.40) ‘109.26% l’otal 4554 . Catering Income - - 0,0% 16,956,90 14,970.33 1950.55 13.27% . . - 00% - - - 0.0% 16956.00 14,970.33 1900.05 13.27% Total 4050 Concessions - . 0.0% 184,ego.ss 145471,04 39218.11 26.00% 3,644.97 2,495.00 1.145,07 45.86% . ‘ 0,0% 88.335,02 147,970.94 40,364,00 27.28% 4560 Merchandise 4561 . GAIAIex Merchandise 0.0% 50.03 117.00 (58.02) 40.57% 36.25 101.00 (54.75) ‘64.11% 0.0% 95,25 215.00 (122.75) ‘56.31% 4562 ShowlPropltotor Merchandise 0,0% 23,873.33 17,245.70 6,427.54 37.27% . . 0.0% - - - 0,0% 23.673,30 (7,245,76 6,427.54 37.27% Total 4560 MerchandIse 0.0% 23,732.33 17,362.78 e,3e9.54 36.69% 36.25 101.00 104.75) -64.11% 0.0% 23,760,55 (7,483.78 6,304,79 36.1% 4570 GASdu Income 4571 ACT OUT TUITION - . - 0.0% - ‘ ‘ 0,0% - 25,00 (25.00) ‘100.0% - . - 0.0% 25.00 (25.08) -100,0% Total 4570 GAEdu Income - - 0.0% ‘ - - 0.0% - 25.00 (25.00) ‘100,0% - - - 0.0% 25.00 (25.06) -100.0% 4580 Marketing Revenue

4561 - Marketing ServIces 0,0% 2,500.00 (2,500.001 ‘100.0% ‘ . . 0.0% ‘ . ‘ 0.0% - 2,500.00 (2,500,00) ‘(00.0% 4502 Advenlsing Revenue 300.60 1300.02) -100,0% 000.00 (000.00) ‘100,0% - - - 0.0% ‘ . - 0.0% - 1,000.00 (1,100.00) -(00.0% 4083 Event Services Partners 0.0% - 0.0% - 1,696.00 (1,696.00) ‘100.0% ‘ . - 0.0% ‘ 1,698,60 (1,608.00) -100.0% 4585 Marketing Rev. Other 0.0% 100.06 4,318,54 (4,210,04) ‘97.69% ‘ . . 6.0% - - - 0,0% 100.00 4,318.54 14218,84) ‘97.69% Total 4580 Marketing Revenue 300.00 (300.00) ‘100.0% 100.00 7,618,04 (7,518.84) ‘96.89% ‘ 1,608.00 (1,695,00) -100.0% - . ‘ 0.0% 100.00 9,614.54 19,514.84) -08.08% 4550 Miecellaneosls Revenue 4551 Fiscal Agent Revanee 537.49 5,453.14 14.915.65) -00.14% - - 0.0% - - - 0.0% - . - 0.0% 537.49 5,453.14 (4,915.651 ‘00.14% 4552 . Cancellation Fee 0.0% 200.60 (200,00) ‘100.0% - - - 0,9% - - - 0.0% ‘ 200.00 (200.001 ‘100.0% 4503 . eenlafinancisl Service Fee 76.70 1.00 77.70 7.770,0% 2,951.90 1,680.55 1,271.35 75.65% - . 6.0% - . , 0,0% 3,030,60 1,681.55 1,349.05 80.23% 4554’ Damage & Loss . - - 6,6% 4,591.50 . 4,591.50 100.0% - . . 0.0% - . - 0.0% 4,591,50 4,501,50 100.0%

4580’ Misc. SubsIdies (50.00) (700,00) 550.00 92.96% (300.00) (1,634.001 1,334.00 01,64% . . - 0.0% - - - 0.0% (350,00) (2,334,0 0) 1,084.00 65,0% 4500- Miscellaneous Revenue- Other 1,849.71 3,372.65 (1722,94) ‘51.00% 2,701.08 18,719.87 (14,009.59) -03.84% 245.00 228.00 19.80 8.70% - 200,00 (200.06) ‘100.0% 4,825.46 20,505 .32 (15,683.881 ‘75.47% Total 4590- Miscellaneous Revenue 2,215.00 8,126,70 (5,910.89) ‘72.73% 5,944.48 16,057,22 (7.012.741 -41.35% 245.00 226.00 19.80 8.76% - 200.00 1200.061 -100.0% 12,635,05 25.510,01 (12,674.96) ‘50.47% Total Income 257.727,57 308.236,42 (50,508.05) ‘16,30% 1,644,075.66 1,769.068.57 (124.992.97) ‘7.07% 72,057.14 133,570,93 (60,613.69) ‘45.38% 160,140.03 180,671.20 10,269.73 6.05% 2,155,1 30,11 2,280,747.02 1225,616.91) -0.48% 26,089.04 Expense

10000- PartIal Settlement - . - 0,0% - . - 0,0% - . . 0.0% - . - 6.0% - - - 0.0% Total 7000’ eataries and Wages 104,014.93 55,354.11 75.660,82 129,65% 238,579,72 316,434.15 (70,754.43) ‘25.05% 15,639.06 31,986.67 ((6,151.51) ‘50.5% 62,576.58 62,580.92 (2.30) ‘0.0% 451,168,24 471,355.85 (20,247.51) -4,3% Total 7200’ Hourly wages 08,431.18 38,639.45 (5.208.271 -13.46% 558,692,00 547.153,37 10,939.53 2,0% 6(526,59 67,782.27 (6,255.65) ‘9.23% 23,552.65 5,358.03 18,294.62 341,44% 675,703.32 658,933,12 17,770.20 2.7%

7300’ SE Buyout (Vacation(Severance) - - - 0,0% 3,004.90 - 3,804.90 100,0% - - 0.6% - . - 0,6% 3,084.00 - 3,804.90 100.0%

Total 7500- Accounel nglPayroll Charges 14,483.47 11,773.67 2,659.60 22.59% 02,353.41 68,687.12 23,716,20 84.55% 1035.06 1560.70 (524,03) -33,63% 26.93 - 26.98 (00.0% 107.849,67 01,971.78 25,877.80 31.57%

Total 7600- Insurance 22.534,14 15,008,34 7,425.80 49.15% 85,045.70 69,132,23 15,913.53 23.02% - . - 0.0% - - - 0.0% 107,579,00 84,240.57 23,339.80 27.71% Total 7700’ Marketing 17.904,51 19,754,76 (1.760.25) ‘8.91% 23,862.17 15,452.89 8,209.28 53.13% 58,671.59 82,000.87 15,425.28) ‘8.74% 1,024.18 (88.05 835.31 442.01% 90,352.48 97,496.37 1856.06 1.9%

8000’ Dues and Subacriptions 0,575.85 4,298.92 (722.27) ‘16.8% 250.52 2(0.82 30.70 13.97% - 125.00 (125.001 ‘100,0% - - - 0,0% 0.827,17 4,645.74 1816.57) ‘17.56% 8100’ Equipment eapente

Total SilO- equIpment Lease 3.145,81 2,545.30 601,51 25,63% 3.270,73 4,273.06 (1,002.33) ‘23,46% - - - 0.0% . . 0,0% 6,417.54 6,018.36 (400,82) ‘5.05%

8120’ EquIpment Maintenance - 76.10 (76,19) ‘100.0% - - ‘ 0,0% - - . 0.0% - . - 0.0% - 76.10 (76,19) ‘000.0%

Total 8130’ Equlpnient General 7,642.59 5,510.79 2,131.50 38.68% 600.37 5,1 75.82 (4.574.45) ‘08.38% 274.06 2,084,91 12.050.951 ‘88.22% 5,731.60 . 5,731.00 100.0% 14,240,92 13,021,52 1,228.40 9,40%

Total 0140’ EquIpment Rental 983.60 1.117,18 (123.08) -11,06% 11.072,31 18,744.17 (7,671.86) 40.95% 27,002.56 31,856,89 (3.954.311 ‘12.41% 575.52 . 575.52 100.0% 45,544,01 51,718.24 (11,174.23) ‘21,61%

Total 8150’ SpecIal Projects - - - 0.0% ‘ - - 0.0% - - - 0.0% 6,665.81 26,195.67 (20.127.861 ‘76.04% 6,065.81 26,193.67 (20,127.08) -76.94% Total 8100- Equipment Expense 11,703.00 9,240.45 2.535,54 27.39% 14,044.41 28,103,05 (13,245.641 -46.98% 28,177.54 34,101.66 (8,014.26) ‘17.50% 12,372.03 26.190,67 (13.820.34) ‘52.77% 67,277.28 97,027.95 (30,550.76) ‘31.23%

0200- Interest Expense 704,15 47.75 736.43 1,542.26% - - . 0.0% - . - 0,0% - . . 0.0% 784.18 47.75 736.43 1,542.26%

0300’ llcketing system Fees Expense 368,15 755.50 (390,35) ‘51.46% 30,805.22 29,214,08 1,594.14 5.46% - . - 0.0% . ‘ 0.0% 31,176,37 29,072,59 1,200.79 4.62%

Total 0400’ Development and Fundraisina 11,769.40 (0,264.86 1,524.63 14.85% . 525.00 (525.001 ‘100,0% ‘ . - 0.0% 79854 (795,54) ‘100,0% 11,789.49 11,588.40 201,69 1.74%

6430’ Volunteer CoordinatIon 62.60 62,00 100,0% 504.97 444.13 140,84 31.71% 25.96 1,200.00 (1,174.04) ‘97.84% . . - 0.0% 672.93 1,644.10 1971.20) ‘59.67%

Total 8000’ Prorettlonal Fees 11,767.60 5,593,50 6,173.00 110.37% 200.00 22,374.60 (22,174.00) ‘99.11% 6.025,00 14,100.00 (7,175.06) ‘50.89% 1,332.00 - 1,332.00 100.0% 20,224,00 42,667,80 121,043,56) ‘51,00%

Total 6600’ Contract Labor 2,700.60 12,329.51 (0.820.311 ‘78,1% 68,607,49 57.262,61 11,324.08 19.77% 5,630.50 14,779,35 (9,145.88) ‘61,9% . 1,500.00 (1.500.00) ‘100.0% 76,037.99 85,891.50 (8,953.31) ‘10.42%

Total 8650’ Anuses Fees 550,00 (8,475.00) 4,025.00 115.83% - - - 0.0% 32,950.00 51,422,74 (16,472.74) ‘35.92% . - - 0.0% 33,560.00 47,047.74 (14.447.74) ‘30,13%

8900’ Postage and Delivery 1.031,47 900.30 931.17 103.43% 1,423.02 2.043,36 (619.46) ‘30.02% ‘ . 0,0% . . . 0.0% 3,255.39 2,843.58 511.71 10.59%

Total 8900’ Rent and Lease 7,542,96 5,953.63 1,589.35 26.7% 25,188.31 26,075,65 82,66 6.02% ‘ 7,475.50 (7,475,50) ‘000.0% - 3,000.00 (3,000.00) ‘100.0% 53,701.29 42,504.78 (6,603.40) ‘20.71%

Total 9000’ Telepllonellnternel 8,463.20 13,678.40 (4,215.20) ‘30.82% 25.380,45 17,503.66 7,876,79 45.0% 270.00 630.00 (360.00) ‘57.14% - - - 0.0% 50,1 03.65 31,012.80 3,301.59 10.38%

Total 9100- Office SuppllealFttrnlture 2,966.66 2.518,62 445.24 17.8% 5,047.83 5,331.66 (203.85) ‘5.32% 177.71 540.59 (362.88) 47.13% - - - 0.0% 0,196.77 8,000.89 (194,12) -2.51%

Total 9200’ Utilities 6,716.58 8,412.18 304.40 4.75% 110,160.38 168.137,04 11,023.34 10.19% . - - 0.0% - - . 0.0% 125,876,96 114,54922 11,027.74 9.09%

Total 9300’ ‘Theatre MaIntenance 153.00 732.07 (579.37) -79.11% 41,998.33 46,346.08 (4,348.65) ‘9.38% . 439.32 (439.32) ‘100.0% 21,815.67 1,851,38 10,964.29 1.070.35% 63,907,00 49,370.05 14,596,95 29.57%

5408’ Taxes 450.06 544.74 (04.68) -17,35% 16,242,16 6.539,35 9,702.81 148.38% . - ‘ 0.0% - - - 0.0% 16,602.22 7,064.00 0,608.13 035.83%

Total 5500’ Employer Eepenses 43,1)0.99 37,480.22 5,653.” 15,09% 143,292.67 130.556,29 12,786.38 9.76% 3,657,43 1,125.00 2,532.43 225,11% - . . 0.0% 180,084.09 169,161.51 20,822.58 12,07%

9700’ DeprecIation Expense - 478.00 (478,00) ‘100,0% - 16,709.00 (16,789.000 ‘100.0% . , - 0,6% ‘ - - 0.0% - 17,267.80 (17,267.00) ‘(00.0%

Total 5800’ Travel & EntertaInment 2,251 .20 2,773.72 (522.51) ‘10.04% 0,486.93 7,8(8.44 1,448.40 20.64% , 94.13 (94,1)) ‘100.0% 6.40 - 8.40 100.0% 10,726.54 9,886.28 840.25 0.5% Total 0918’ Hospisality Expense 10,683.82 10,380.01 313.80 3.02% 3,433.10 2,855,07 1,348.6) 04.65% 6,230.05 4,493.08 3,737,07 93.19% 2,651.95 3,234,59 (502.641 ‘18.01% 27,725.66 20,192.75 7,532.01 37.31%

9920’ Permitsiucenses 346.80 20.00 326.00 1,630.0% 1,074.75 1,448.00 (370.25) ‘25.78% 9,253.00 11,144.26 (1,561.261 ‘16.7% - - - 0.0% 10,703.75 12,612.26 (1,908.51) -15.13%

Total 9530’ Concessions Expense 112,70 - 112.79 100.0% 46.482,05 44,248.21 4,233.84 9,57% 256.60 1,761.98 11.505.381 -85.44% - . - 0.0% 48,851.44 46,010.19 2,841.25 6.18%

Total 9940’ Merchandlee Expense ‘ . - 0.0% 1,154,13 - 1,104.13 000,0% 821.32 5,363.00 (4.441,681 ‘82,82% ‘ . - 0.0% 2,025.45 5,063.00 (3,337.55) -62.23%

5550’ Bad Debt Espeese , . - 0,0% 0.33 0.50 (0.17) ‘34.0% . - - 0.0% . . - 0.8% 0,33 0.50 (0.17) ‘34.0% Total 5990’ Miscellaneous 092,52 1,667.40 (974.96) ‘52.21% 424,05 1,166,07 (742.021 -63,63% 1,235.00 3,582.97 (2.327.97) ‘65,14% 32.85 1.897,33 (1,064.5)) ‘87.01% 2,584,40 7,693.85 (5,109.45) 46,41% Total Eepense 352,343.18 266.437,50 85,905.68 32.24% 1,558,803.56 0,572.351.77 (13.547,91) ‘0.60% 232,610.11 30 5,878.35 (83,065.24) ‘26,3% 125,49545 105.503,31 19,692.14 18.61% 2,272,172.81 2,260.476.93 11.701,58 0.52%

Net OrdInary Income (94,605.61) 41,758.92 (136,414,53) -326,36% 85.271,74 195,716.80 (III .445.05) -56.65% (159,852.97) (102.307,52) 22,454,55 12.32% 54.645,48 64,067.00 (9,422.41) -14.71% (117.042.78) 120,276.09 (237,318.79) -197.31% ExuifilT 4

S. ‘4,t1 THE ACCOUNTANCY forward thinking br your Financial future

GLENDALE ARTS

FINANCIAL. STATEMENTS FOR THE YEARS ENDED JUNE 30, 2018 AND JUNE 30, 2017

330 North Brand Bouleya,d • Suite 200. Glendale, CA 91203

T: 818.547.5701 • 818,550.8222 • F: 818.547.5708 • 818.556,8333. www.svbscpas.com AICPA Tax & Personal Financial Planning Sections • Caflkrnia Society of Certified Public &countants GLENDALE ARTS TABLE OF CONTENTS

Page(s)

Independent Accountants’ Auditors’ Report

Statements of Financial Position 3

Statements of Activities 4

Statements of Cash Flows 5

Notes to the Financial Statements 6-12

Statements of Functional Expenses 13 INDEPENDENT AUDITORS’ REPORT

To the Board of Directors Glendale Arts Glendale, California

We have audited the accompanying financial statements of Glendale Arts (a California Nonprofit Corporation) which comprises the statements of financial position as of June 30, 2018 and June 30, 2017, and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United State of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimated made by management as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to prove a basi for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Glendale Arts as of June 30, 2018 and June 30, 2017, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United State of America.

Report on Supplementary Information

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The Schedule of Functional Expenses on page 13 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

THE ACCOUNTANCY

Glendale, California November 13, 2018 GLENDALE ARTS (A California Non-Profit Organiztion)

Statements of Financial Position As of June 30, 2018 and June 30, 2017

ASSETS 2018 2017 Current assets:

Cash and cash equivalents $ 273,352 $ 366,296 Investments 88,732 81,912 Accounts receivable 91,567 44,863 Inventory 4,428 Total current assets 458,079 493,071

Long term assets: Leasehold improvements and equipment net of accumulated depreciation 112,653 139,951

Total assets S 570,732 $ 633,022

LIABILITIES AND NET ASSETS

Current liabilities:

Accounts payable and accrued expenses $ 169,020 $ 179,990 Deferred revenue, deposits, and other 94,589 135,493 Deferred revenue, grants 75,000 Total current liabilities 338,609 315,483

Net assets: Net assets without donor restrictions 127,628 . 151,686 Net assets with donor restrictions 104,495 165,853

Total net assets 232,123 317,539

Total liabilities and net assets S 570,732 S 633,022

See accompanying notes to financial statements 3 GLENDALE ARTS (A California Non-Profit Organization)

Statement of Activities For the Years ended June 30, 2018 and June 30, 2017

Without Donor Restrictions Donor restricted TOTAL TOTAL 2018 2017 Public support and revenue Booking income 1,842,381 - $ 1,842,381 $ 1,714,764 Management fee 200,000 - 200,000 415,000 Contributions, sponsorships, and grants 102,924 16,523 119,447 169,948 In-kind contributions 11,445 - 11~445 22,410 Investment return, net 6,265 - 6,265 7,156 Special events 29,218 - 29,218 58,625 Net assets released from restrictions 77,881 (77,881) Total public support and revenue $ 2,270,114 $ (61,358) 2,208,756 $ Z387,903

Expenses:

Program services 1,950,956 1,950,956 1,999,486 General and administrative 331,427 331,427 259,299 Fundraising 11,789 11,789 11,588 Total expenses $ 2,294,172 $ $ 2,294,172 $ 2,270,373

Increase (decrease) in net assets (24,058) (61,358) (85,416) 117,530

Net assets, beginning of year 151,686 165,853 317,539 200,009 Net assets, end of year $ 127,628 $ 104,495 $ 232,123 $ 317,539

See accompanying notes to financial statements 4 GLENDALE ARTS (A California Non-Profit Organization)

Statement of Cash Flows For the Years Ended June 30, 2018 and June 30, 2017 2018 2017 Cash flow5 from operating activities Increase (decrease) in net assets $ (85,416) $ 117,530 Adjustments to reconcile change in net assets to net cash provided by operations: Depreciation expense 27,298 17,267 Unrealized losses (gains) (5,210) (5,234) (Increase) decrease in accounts receivable (46,704) (15,030)

(Increase) decrease in inventory (4,428) - Increase (decrease) in accounts payable 29,462 13,230 Increase (decrease) in credit card liabilities (1,639) 2,921 Increase (decrease) in accrued expenses (7,276) 41,114

Increase (decrease) in other liabilities 2,579 -

Increase (decrease) in other assets - 3,757 Net cash provided by Operating Activities (91,335) 175,555

Cash flows from investing activities

Payments for leasehold improvements and equipment - (4,500) Purchases of investments (1,609) (5,000) Proceeds from investments (532) Net cash provided by Investing Activities (1,609) (10,032)

Cash flows from financing activities

Net cash provided by Financing Activities - -

Net increase(decrease) in cash and cash equivalents (92,944) 165,523

Cash and cash equivalents, beginning of year 366,296 200,773

Cash and cash equivalents, end of year $ 273,352 $ 366,296

Supplemental disclosure of cash flows information: Cash paid for interest 784 $ 48

See accompanying notes to financial statements 5 GLENDALE ARTS bit (A California Non-Profit Corporation)

Notes to Financial Statements NOTE 1- ORGANIZATION Glendale Arts (the Organization)1 is a nonprofit charitable organization incorporated in California. The mission of the Organization is to integrate the arts into the identity and economic vitality of the City of Glendale by presenting programming and creating partnerships that benefit youth, patrons, artists, organizations and businesses in the community events as well as at the Alex Theatre. Since 2008, Glendale Arts has grown beyond the walls of the Alex Theatre and has generated over $13 million dollars in earned income and hosted more than 1,850 community and professional performances both inside and outside the theatre. The Organization has also launched several programs and services such as: Popup!; Open Shows; the Open Arts and Music Festival; GA Tickets; GA Members; GA Partners and community website (www.glendalearts.org). All of these projects are designed to promote Glendale’s unique arts community as well as generate additional revenue streams, enabling the Organization to help build business and Glendale’s brand as a destination for “living, working, and playing.” In 2015, Glendale Arts signed a lease and management agreement with the City of Glendale to operate and manage the historic Alex Theatre. Both agreements are set to expire in 2020 with a 5 year option for renewal. As a part of the organization’s strategic plan, Glendale Arts plans to begin negotiations in early 2019 with an agreement in place by the end of the year. The goal is to extend the contract for 10 years, taking the partnership between the City and Glendale Arts through 2030. The Organization funds its operations through rental fees, box office fees, sponsorships, and contributions through donations and grants as well as ticket sales on Glendale Arts produced events. Glendale Arts receives a management fee from the GEDC to help support its operations. The management fee is a tiered fee plan further described in Note 8.

NOTE 2-SUMMARY OP SIGNIFICANT ACCOUNTING POLICIES Basis ofAccounting The financial statements of the Organization have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America and with the provisions of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 958, Not-for-profit Entities, which requires the organization to classify its net assets into two categories; net assets without donor imposed restrictions and net assets with donor imposed restrictions. Glendale Arts has elected early adoption of this ASC. Prior to the fiscal year ending June 30, 2018, the organization presented net assets in the previously accepted accounting standards classifications which included unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Basis ofPresentation Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows:

6 GLENDALE ARTS (A California Non-Profit Corporation) 0 Notes to Financial Statements 41CJ. NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Net assets without donor restrictions - Net assets that are not subject to donor-imposed stipulations. These assets are available to support the Organization’s activities and operations at the direction of the Board.

Net assets with donor restrictions - Net assets subject to donor-imposed stipulations that will be met either by actions of the donor, the Organization and/or the passage of time. Donor-restricted contributions for which the restriction has been satisfied in the same reporting period as the contribution was received are recorded as unrestricted support. The Organization had donor restricted assets of $104,495 as of June 30, 2018 and $165,853 as of June 30, 2017. Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Inventory

Inventory consists of alcohol purchased for concessions use and is recorded at cost. Periodic evaluation for impairment is made by management to identify if inventory needs to be written down because of obsolescence, damage, or loss. Management deemed that there was no inventory adjustment as of June 30, 2018 and June 30, 2017. The inventory balance was $4,428 and $0 at June 30, 2018 and 2017.

Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Expense Allocation The direct costs of providing various programs and other activities have been summarized on a functional basis in the statement of activities. Accordingly, certain indirect costs have been allocated among the programs and supporting services benefited based on estimated usage. Cash and Cash Equivalents For purposes of financial statement presentation, the Organization considers all highly-liquid financial instruments with an original maturity of three months or less to be cash equivalents. Accounts Receivable Accounts receivable are reported at the amount management expects to collect from outstanding balances. Difference between the amount due and the amount management expects to collect are reported in the results of operations of the year in which those differences are determined, with an offsetting entry to a valuation allowance for trade accounts receivable. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. At June 30, 2018 and June 30, 2017, there was no allowance for doubtful accounts.

7 GLENDALE ARTS (A California Non-Profit Corporation)

Notes to Financial Statements

NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Investments Investments in marketable securities with readily determinable fair values are valued at their fair values in the statements of financial position. Unrealized gains or losses are included in the change in net assets. Realized gains or losses are recognized based on the difference between the security’s value at receipt date and the sales proceeds less the unrealized gain or loss previously recognized. The Organization has an investment policy which outlines the various policies on prudent investment and spending. Fair Value Measurements Accounting standards establish a fair market hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Accordingly, when market observable data is not readily available, the Organization’s own assumptions are set to reflect those that market participants would be presumed to use in pricing the asset or liability at the measurement date. Financial assets and financial liabilities recorded in the statements of financial position at fair value are categorized based on the reliability of inputs to the valuation techniques as follows:

Level 1 Inputs — Financial assets and financial liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in active markets that the Organization can access. The total amount of investments as of June 30, 2018 and June 30, 2017 was deemed to be Level 1 Inputs.

Level 2 Inputs — Financial assets and financial liabilities whose values are based on (a) quoted prices for similar assets or liabilities in active markets, (b) quoted prices for identical or similar assets or liabilities in non-active markets, or (c) valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3 Inputs — Financial assets and financial liabilities who~e values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect the Organization’s estimates of the assumptions that market participants would use in valuing the financial assets and financials liabilities.

Public Support and Revenue All resources are considered to be available for unrestricted use according to the Organization’s charter unless specifically stipulated by the donor. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities accordingly. Contributions that are restricted by the donor are reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the cash is received.

8 GLENDALE ARTS (A California Non-Profit Corporation)

Notes to Financial Statements NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Contributions are recognized in the period when the contribution is received or unconditional promise to give is made. Contributions of donated services that create or enhance non-financial assets or that require specialized skill, are provided by the individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recorded at their fair values in the period received. Investments and other noncash contributions are recorded, when received and measured at the fair value of the asset at the time of transfer. Unconditional pledges for contributions are recorded when made. An allowance is provided for those pledges estimated to be uncollectible, as necessary. Booking income includes all income sources related to the events that are held at the Alex Theatre. Revenue is recognized when events have been closed out and settled for any amounts due from the client or due to the client Rental income includes the following:

2018 Rental income $ 499,917 $ 484,802 Labor income 547,134 519,471 Production income 84,489 108,021 Ticket service income 439,646 400,986 Concessions income 188,335 141,520 Merchandise Income 23,769 17~4~4 TOTAL $ ~j~2~j $ ~2~4LZ~

LeaseholdImprovements and Equipment Leasehold Improvements and equipment are reported at cost if purchased, or fair value if contributed. Major additions and betterments are added to the property accounts, while maintenance and repairs, which do not appreciably extend the useful lives of the related assets, are charged to expense as incurred. Depreciation is computed using the straight-line method over the estimated lives of the related assets; 3 to 15 years for equipment and the shorter of 10 to 25 years or the life of the lease for leasehold improvements. Management of the Organization assesses the recoverability of leasehold improvements and equipment whenever a triggering event occurs. In the event that there is a decline in value, the Organization performs an analysis to determine if the decline in value may not be recoverable. Management has determined that no unrecoverable declines in the market values of property and equipment exist at June 30, 2018 and June 30, 2017. Deferred Revenue and Deposits Deferred event revenue consists of rental deposits, advance ticket sales. Recognition of event revenues is recorded at the time of the performance. Deferred grants revenue is recognized once expenses are incurred. Income Taxes The Organization is a public charity that has obtained an exemption from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and California state income taxes under Section 23701(d) of the California Revenue and Taxation Code, Accordingly, no provision has been made for federal or state 9 GLENDALE ARTS

(A California Non-Profit Corporation) -.. Notes to Financial Statements 7 NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) income taxes. The Organization is subject however to Federal and California income taxes on unrelated business income as stipulated in Internal Revenue Code Section Code 511 and Regulation Section 1.511. For the fiscal year ended June 30, 2018 and June 30, 2017, the Organization had no unrelated business income. Advertising and Marketing Expenses Advertising and marketing costs were expensed as incurred. Advertising and marketing expenses for the year ended June 30, 2018 was $99,074 and for June 30, 2017 was $97,496.

NOTE 3 - INVESTMENTS The following schedule summarizes the components of investment return and their corresponding classification in the statement of activities for the years ended June 30.

Unrealized gains (losses) $ 3,496 $ 5,234 Investment dividends 1,280 1,716

Realized gains iL4~ 116 Total $ 6.265

NOTE 4— LEASEHOLD IMPROVEMENTS AND EQUIPMENT

Leasehold improvements and equipment as of June30 are as follows:

2018 2017

Leasehold improvements $ 762,115 $ 762,115 Equipment 549,320 549,320 Total $ 1311435 1,311.435 Less accumulated depreciation (1,198,782) (1,171,484) Net $ 112.653 S 139,951

Depreciation expense for the year ended June 30, 2018 was $ 27,298 and June 30, 2017 was $ 17,267. The increased amount was due to a prior period calculation error and has been corrected,

NOTES- DEFINED CONTRIBUTION PLAN The Organization has a 401(K) plan that covers all full-time employees who have completed one year of service, Employees may contribute up to the allowable Internal Revenue Service limits. The Organization matches employee contributions up to 3% of annual compensation for eligible participants. Contributions by the Organization to the plan amounted to $ 11,637 for the year ended June 30, 2018 and $16,121 for the year ended June 30, 2017.

10 GLENDALE ARTS 0 (A California Non-Profit Corporation)

Notes to Financial Statements

NOTE 6-NETASSETS Net assets without donor restrictions includes amounts which are Board designated funds for general reserves and for funding capital expenditures, maintenance, and repairs at the Alex Theatre to comply with the management agreement. These funds are maintained in separate bank and investment accounts and amounted to $127,628 for the year ended June 30, 2018 and $165,853 for the year ended June 30, 2017. Net assets with donor restrictions for the year ended June 30, 2018 include the following funds and amounts:

Restriction Value Stone Beck Reserve $89,572 Illuminate Fund 7,553 Program Sponsorship 5,000 Open Grants 2,370 il04.495

The organization received a donor restricted grant of $75,000 in June 2018 which is classified as deferred revenue and has not yet been booked as income.

NOTE 7-OPERATING LEASE AND MANAGEMENT AGREEMENT The Organization entered into an operating lease agreement for the Alex Theatre with the Glendale Economic Development Corporation on August 13, 2015. The lease contains one, five-year renewal option, The Organization must provide “Notice of Intent to Renew” nine months prior to the termination of each leased period (November 2019). According to the lease, the Landlord has the right and option to accept or reject this notice. No lease payments are required as long as the Organization operates and maintains a performing arts center on the property and complies with the terms, covenants, and conditions of the lease agreement. The Organization entered into an operating lease agreement with the City of Glendale for its administrative offices. The lease commenced on August 13, 2015 and will expire on June 30, 2020. The Organization also has an operating lease agreement for a copier machine used in the administration office. At June 30, 2018, the Organization is obligated for the following minimum lease commitments:

Year Ending June 30, Office S~ç~ Copier Total 2019 32~697 2,184 34,881 2020 32.697 ~

$ 65.394 ~ $ 6g.216 The total rent expense for the year ended June 30, 2018 was $ 33,701 and for June 30, 2017 was $35,724.

11 GLENDALE ARTS 0 (A California Non-Profit Corporation)

Notes to Financial Statements NOTES- CONCENTRATIONS Financial instruments that subject the Organization to a concentration of credit risk consist of cash held at financial institutions, which from time to time, may exceed federally insured amounts. The Organization has not experienced any losses in such accounts and has its funds in a financial institution that carries insurance in excess of federal insured limits. The Organization believes it is not exposed to any significant risk relative to its cash accounts.

Included in total public support and revenue were $200,000 for 2018 and $415,000 for 2017 of management fees from the Glendale Economic Development Corporation. These amounts are approximately 9% and 17% of total public support. Also included in total public support and revenue is rental income earned from operating the Alex Theatre. These amounts are approximately 88% for the year ended June 30, 2018 and 81% of total support and revenue for the year ended June 30, 2017. As described in Note 1, this management agreement is to end on June 30, 2020. The management fees under the arrangement are as follows:

Year Ending June 30. Amount

2019 $200,000 2020 $150,000 NOTE 9—SUBSEQUENT EVENTS

Management has evaluated subsequent events through November 13, 2018 which is the date the financial statements were available to be issued. No events, other than those disclosed elsewhere in these financial statements, have occurred subsequent to June 30, 2018 requiring recording or disclosure in these financial statements.

12 SUPPLEMENTARY INFORMATION GLENDALE ARTS (A California Non-Profit Organization) 0dp44fr7 Statement of Functional Expenses For the Year Ended June 30, 2018 General and Program Services Administrative Fund Raising Total Salaries and Wages 309,818— $ 134,015 $ - $ 443,833 Hourly Wages 640,828 33,431 - 674,259 Accounting/Payroll Charges 93,417 14,433 - 107,851 Insurance 85,046 22,534 - 107,580 Marketing 81,080 17,995 - 99,074 Dues and Subscriptions 131 3,697 - 3,827 Equipment Expense 55,494 11,783 - 67,277 Interest Expense 784 - 784 SABO Fees 30,808 368 31,176 Development and Fundraising 11,789 11,789 Volunteer Coordination 611 62 673 Professional Fees 17,457 2,767 20,224 Contract Labor 80,566 2,700 83,266 Artists Fees 32,950 550 33,500 Postage and Delivery 1,424 1,831 3,255 Rent and Lease 26,158 7,543 33,701 Telephone/Internet 25,650 9,463 35,114 Office Supplies 5,230 2,967 8,197 Utilities 119,160 6,717 125,877 Theatre Maintenance 63,813 153 63,966 Taxes 16,242 450 16,692 Employer Expenses 147,197 42,887 190,084 Travel and Entertainment 8,475 2,251 10,727 Hospitality Expense 17,032 10,694 27,726 Permits/Licenses 10,358 346 10,704 Concessions Expense 44,310 113 44,423 Merchandise Expense 2,025 2,025 Miscellaneous 1,694 893 2,586 Bad Debt Expense 6,682 6,682 Depreciation 27,298 27,298 $ 1,950,956 $ 331,427 $ 11,789 $ 2,294,172

See accompanying notes to the financial statements 13 GLENDALE ARTS (A California Non-Profit Corporation) fib

Statement of Functional Expenses For the Year Ended June 30, 2017 General and Program Services Administrative Fund Raising Total

Salaries and Wages 408,009 $ 63,347 - $ 471,356

Hourly Wages 620,294 38,639 - 658,933

Accounting/Payroll Charges 70,198 11,774 - 81,972

Insurance 69,132 15,108 - 84,241

Marketing 77,742 19,755 - 97,496

Dues and Subscriptions 345 4,299 - 4,644

Equipment Expense 88,579 9,249 - 97,828

Interest Expense - 48 - 48

SABO Fees 29,214 759 - 29,973

Development and Fundraising - - 11,588 11588

Volunteer Coordination 1,644 - - 1,644

Professional Fees 36,474 5,594 - 42,068

Contract Labor 73,562 12,329 - 85,891

Artists Fees 51,423 (3,475) - 47,948

Postage and Delivery 2,043 900 - 2,944

Rent and Lease 36,551 5,954 - 42,505

Telephone/Internet 18,134 13,678 - 31,812

Office Supplies 5,872 2,519 - 8,391

Utilities 108,137 6,412 - 114,549

Theatre Maintenance 48,638 732 - 49,370

Taxes 6,539 545 - 7,084

Employer Expenses 131,681 37,480 - 169,162

Travel and Entertainment 7,113 2,774 - 9,886

Hospitality Expense 9,813 10,380 - 20,193

Permits/Licenses 12,592 21 - 12,612

Concessions Expense 46,010 - - 46,010

Merchandise Expense 5,363 - - 5,363

Miscellaneous 17,596 - - 17,596

Depreciation 16,789 478 - 17,267 $ 1,999,486 $ 259,299 $ 11,588 $ 2,270,373 See accompanying notes to the financial statements 14 1~XH1B!T 5

FY18 Audit Notes:

Glendale Arts was given a commendation from the auditor on transparency, accuracy, and compliance.

Due to the organization’s early adoption of new reporting standards set forth by the Fair Accounting Standards Board for not-for-profit accounting, Glendale Arts will take a deeper “paper loss” than anticipated (details in notes below).

In compliance with the aforementioned standards, Glendale Arts transferred designated ticket fees from temporarily restricted to wlo donor restriction under the new reporting structure.

As a result of our growing concessions operation, The Accountancy recommended we report our liquor inventory assets on our balance sheet and change the reporting for cost of goods sold to be released from inventory per item sales. More details upon request.

The $75,000 Digital Cinema Projector (DCP) grant from the Ahmanson Foundation arrived at the very end of the fiscal year. Since the project was slated for the 1s1 and 2~ Quarter of FY19 and in adherence to our reporting policies, Glendale Arts deferred the revenue to when it would be spent rather than received. This combined with the $45,000 Parson’s Grant, represents $120,000 in Special Projects! Restricted Income for the DCP.

Like the DCP, sponsorship and contributed income received for the 2018 Open Arts & Music Festival & Open Grants Program in FY18 was deferred to the 1st Quarter of FY19. This represents roughly $75,000 in deferred revenue in FY18.