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La Performing Arts Center Essay

2897 words - 12 pages


HISTORY
The Performing Arts Center of Los Angeles County or Music Center is one of the largest performing arts centers in the United States. In 1955, Dorothy Buffum Chandler was named by the Los Angeles County Board of Supervisors to build a permanent home for the Los Angeles Philharmonic. Dorothy raised $18.7 million in private donations and the country provided the site and $14 million. The construction of the original complex lasted for five years from 1962 to 1967. The original complex was comprised of three venues: Dorothy Chandler Pavilion, Mark Taper Forum, and Ahmanson Theatre. In 2003, the Music Center added the Walt Disney Concert Hall to there list of venues. Other venues ...view middle of the document...

The Act is mainly enforced on publicly traded companies and not on nonprofit organizations. However, nonprofits should provide information on public officials, policies, and any disclosures to accurately portray their financial position. Almost all charitable organizations must file a Form 990 with the IRS, but it depends on the size of the organization and their gross receipts of $50,000.
Since, the Music Center is a large nonprofit organization with gross receipts of $52.3 million it is required for them to file Form 990. Part VI of Form 990 pertains to SOX and the related disclosures. The Music Center identified 42 out of the 43 individuals of the governing body as independent. In fact, some individuals in the governing body has a family or business relationship with another individual. SOX also provided new protections for whistle blowers and criminal penalties for actions taken in retaliation against whistle blowers. Thus, Form 990 Part VI line 13 identifies if the organization have a written whistleblower policy. The Music Center indicated that they do indeed have a policy in regards to whistleblowers. Lastly, SOX address destruction of litigation-related documents, which is a crime to alter, cover up, falsify, or destroy and documents. Thus, the Music Center has a written document retention and destruction policy.

PEER BENCHMARKING
The Music Center’s national taxonomy of exempt entities (NTEE) code is A61. Both the IRS and NCCS use these NTEE codes to classify each nonprofit organization into a respective category. Based on the NTEE classification system, any code that begins with the letter “A” is a nonprofit involved with arts, culture, and humanities. The number 61 further distinguished the Music Center as performing arts center. In order to analyze the Music Center’s financial performance and position, it is essential to compare the organization to other similar nonprofit organizations. The two other nonprofit organizations chosen for this comparison is the Wallis Annenberg Center for the Performing Arts and the Santa Barbara Center for the Performing Arts Inc.
All three nonprofit organizations are located on the west coast of California and with the NTEE code of A61. It was a coincidence that the Music Center is the center between the other two nonprofit organizations. The Wallis Annenberg Center is located in Beverly Hills and the Santa Barbara Center is located in Santa Barbara. The distance between all three locations are within 175 miles, which is about 3 hours in drive time. Based on total assets and total revenue of 2014, these two organizations had the closest figure amount to the Music Center. Nonprofit organizations from different states were not taken into account because the diversity and population in California affects the organization significantly.
One of the most sought out performance measure by stakeholders is the organization’s total margin. The total margin defines the organizations bottom-line...

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