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11/15/2023 - Meeting Materials OSBORNE, ROBBINS & BUHLER, P.L.L.C. Certified Public Accountants 4527 South 2300 East, Suite 201 • Salt Lake City, Utah 84117-4480 • Phone: (801)308-0220 • Fax: (801)274-8589 November 1, 2023 To the Board of Trustees Salt Lake Arts Council Foundation We have audited the financial statements of the governmental activities and the general fund of Salt Lake Arts Council Foundation (the Foundation), a component unit of Salt Lake City Corporation for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated June 26, 2023. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Foundation are described in Note A to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during 2023. We noted no transactions entered into by the Foundation during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Management's estimate of the net pension liability is based on information provided to Salt Lake City Corporation by Utah Retirement Systems (URS). Salt Lake City Corporation (the City) disseminates that information to provide the Foundation with its appropriate share of the City's total pension information. The City's net pension liability was calculated by actuaries hired by URS, and details about it and the related deferred inflows and outflows of resources were included in the URS annual report as of December 31, 2022. We traced the information to the URS annual report, as well as to specific other data provided by URS to the Center. We also reviewed the City's allocation of the information provided by the URS to the Foundation. We also noted that URS engaged its auditor to issue a Service Organization Controls (SOC 1) Type 2 report on the design and operating effectiveness regarding census data maintained by URS. This report was intended to meet the needs of the participating employers and their auditors in evaluating the effectiveness of the controls at URS on the URS financial statement assertions. We noted that the opinion of the URS auditors in the SOC 1 Type 2 report was unqualified. The sensitivity of this estimate is described in Note G to the financial statements and the 6.85% assumed investment rate of return is comprised of an inflation rate of 2.5% and a real return of 4.35%. Management's estimate of the depreciation methods and useful lives of the Foundation's property and equipment is based on management's determination of the rate at which the usefulness of the property is expected to deteriorate. We have compared the lives and methods used by the Foundation to independent expectations we have established and have concluded they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated November 1, 2023. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the Foundation's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Foundation's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters Required Supplementary Information We applied certain limited procedures to the Management's Discussion and Analysis, Budgetary Comparison, and Pension Information, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. Restriction on Use This information is intended solely for the use of the board of trustees and management of the Foundation and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, OSBORNE ROBBINS & BUHLER PLLC Ian J Robbins Managing Member Salt Lake Arts Council Foundation 3:18 PM Balance Sheet 11/06/2023 As of October 31, 2023 Accrual Basis Oct 31,23 ASSETS Current Assets Checking/Savings Cash Checking-MACU 652,079.61 Checking-MACU/Grants 210,348.90 Savings-MACU 2,907.71 Savings-MACU/Grants 85.00 Total Cash 865,421.22 Gift Card 3.95 Investments Utah State Treasurer 521,368.97 Total Investments 521,368.97 MACU Express Debit 186.37 Total Checking/Savings 1,386,980.51 Accounts Receivable Accounts Receivable 75,380.50 Total Accounts Receivable 75,380.50 Other Current Assets Other Assets Prepaid Expenses-Other 5,670.00 Prepaid Postage 61.07 Total Other Assets 5,731.07 Sales Tax Receivable 4,256.69 Total Other Current Assets 9,987.76 Total Current Assets 1,472,348.77 Fixed Assets Fixed Assets Electronic Equipment 15,964.00 Event Equipment 18,981.00 Furniture and Equipment 6,019.00 Leasehold Improvements 348,318.00 Total Fixed Assets 389,282.00 Investment in Gnrl Fixed Assets -389,282.00 Total Fixed Assets 0.00 TOTAL ASSETS 1,472,348.77 LIABILITIES&EQUITY Liabilities Current Liabilities Accounts Payable Grants Payable Artist Career Empowerment 38,500.00 Page 1 of 2 Oct 31,23 Artist in the Classroom 21,000.00 General Support 17,000.00 Project Support 41,825.00 Racial Equity and Inclusion 45,262.50 Total Grants Payable 163,587.50 Payables 11,250.00 Total Accounts Payable 174,837.50 Credit Cards MACU Credit Card 5,162.49 MACU Credit Card 0626 550.05 Total Credit Cards 5,712.54 Other Current Liabilities Accrued Liabilities Accrued Payroll Taxes Employee Witholding FICA 352.85 Employer FICA 352.85 Federal Tax Withholding 369.64 State Income Tax Withholding 168.06 Total Accrued Payroll Taxes 1,243.40 Total Accrued Liabilities 1,243.40 Deferred Revenue 650.00 Direct Deposit Liabilities 0.44 Total Other Current Liabilities 1,893.84 Total Current Liabilities 182,443.88 Total Liabilities 182,443.88 Equity Unrestricted Net Assets 882,090.23 Net Income 407,814.66 Total Equity 1,289,904.89 TOTAL LIABILITIES&EQUITY 1,472,348.77 Page 2 of 2 8/29/23, 10:59 AM BCA-00512--Salesforce-Unlimited Edition • Close Window E • Print This Page • Expand All Collapse All BCA-00512 BC Boards and BCA-00512 Outcome Commissions Application Name Board Applied For Arts Council Owner SLCCRM Second Choice Library Board Stage New Third Choice Racial Equity and Policing Commission Previous contact with No board or members Profession Social Worker Previous Contact Details How Heard Instagram Applicant Applicant Sabrina Martinez Applicant City Council District Applicant Email utsabby-@gmail.com Contact Sabrina Martinez Applicant Phone 8016803242 Contact Email utsabby-@gmail.com Applicant Address 906 South 1200 East Salt Lake City, UT 84105 Questionaire Reason for interest in I am interested in serving on the Arts Civic/Professional Org National Association of Social Workers this board Council Board to help improve the Memberships Member access of art to salt lake city residents. Community Service Volunteers of America Volunteer(2022- Other Information activ. past/present current) Utah Food Bank,Volunteer (2015-2022)SLC VA Medical Center Diversity Council, Special Emphasis Program Chair(2017-2019)Malihel Free Clinic,Volunteer(2017-2019)SLC VA Medical Center DEMPS Volunteer- Deployed to Puerto Rico (2017) References Reference 1 Name Natalie Reference 3 Name Jenn Reference 1 Last Pugmire Reference 3 Last Mann Name Name Reference 1 Phone 801-718-0598 Reference 3 Phone 801-830-3889 Reference 2 Name Bobbi Reference 2 Last Fosburg Name Reference 2 Phone 435-640-3420 Demographics Ethnic Group Hispanic Gender Identity Female https://slcgov.my.salesforce.com/a7S5G000000wkRjUAI/p 1/2 8/29/23, 10:59 AM BCA-00512--Salesforce-Unlimited Edition Disabled No Veteran No Languages English Housing Own Home ID as LGBTQ No Education Level Masters Degree Created By SLCCRM Site Guest User, 8/24/2023 Last Modified By SLCCRM Site Guest User, 8/24/2023 9:05 AM 9:05 AM Files S. Martinez Resume Last Modified 8/24/2023 9:05 AM Created By SLCCRM Copyright©2000-2023 salesforce.com, inc.All rights reserved. https://slcgov.my.salesforce.com/a7S5G000000wkRjUAI/p 2/2 Sabrina Martinez, LCSW 906 South 1200 East I Salt Lake City, Utah 84105 1 Cell: 801-680-3242 1 Email: utsabby@gmail.com Dedicated licensed clinical social worker with extensive knowledge and background in program development, community outreach and crisis management. Passionate about working towards building partnerships to increase accessibility to mental health services for every individual. Mental Health Specialty Specialist I Salt Lake City VA Medical Center 1 8/2021—Current o Develop and facilitate clinical programming to provide treatment services for women Veterans. o Perform group psychotherapy with women veterans from various socio-economic, cultural, and other diversified backgrounds utilizing evidenced-based practices. o Manages the use of data related to clinical programming functioning and evaluation. o Plans, organizes, and facilitates operational women's health specific clinic and outreach-related veteran events. o Provides education and in-service training to employees on clinical interventions for women veterans' behavioral health needs. o Conduct psychosocial assessments, evaluated, monitored, and recorded veterans progress in accordance with measurable goals in treatment and discharge plans. Lead School Social Worker I Salt Lake City School District 1 2/2019—8/2021 o Research, develop and implement school-based social work program across 37 schools for a team of 7 social workers to establish and meet Student Services' mental health program goals. o Serve as leader among the social work team and as primary consultant to student service administration regarding the needs and direction of the district social work program. o Research and develop curriculum changes targeting behavioral and mental health needs to help improve students social and emotional well-being. o Collaborated with internal team to create district guidelines for students experiencing crisis, which included COVID-19 porch visits and implementation of trauma informed classroom practices. o Deliver trainings to school district personnel on trauma informed practices, as well as social and emotional curriculum, as part of their ongoing professional development training program. o Strengthen partnerships with internal and external community stakeholders to promote and expand mental health services. o Provide crisis management for students and their families experiencing emotional distress. o Supervise and support CSW employees to ensure the provision of professional standards and quality care. o Provide individual,family and group counseling with K-12 students and their families from various socio-economic, cultural, and diversified backgrounds utilizing evidenced based practices including mindfulness, play therapy, Cognitive Behavioral Therapy and Dialectical Behavior Therapy. o Evaluate, monitor, and record individual student progress in accordance with measurable goals outlined in social work action plan. HUD/VASH Mental Health Provider I Salt Lake City VA Medical Center 1 1/2017—1/2019 o Expanded strong partnerships with community stakeholders to increase awareness and access for veterans to community services while achieving HUD/VASH program goals. o Performed individual and group psychotherapy with veterans experiencing homelessness from various socio-economic, cultural, and other diversified backgrounds utilizing evidenced-based practices. o Provided effective and compassionate crisis management for veterans experiencing emotional distress. o Completed psychosocial assessments and performed case management services for veterans experiencing mental health concerns and homelessness. o Conferred with multi-disciplinary staff to offer a seamless continuum of care and optimum level of wellness for veterans experiencing homelessness. o Evaluated, monitored, and recorded veterans progress in accordance with measurable goals in treatment and discharge plans. Senior Social Worker/HUD/VASH Coordinator I Sheridan VA Medical Center 1 6/2015—1/2017 o Increased mental health services and programming via telehealth for vulnerable veterans in rural areas o Formed strong working partnerships with internal and external stakeholders to increase veterans' access to community resources while meeting HUD/VASH program goal. o Contributed to CBOC's successful preparation for JCAHO accreditation to ensure rigorous performance standards were achieved. o Supervised and supported social work graduate intern on mental health services,crisis management and HUD/VASH program. o Performed individual, couples, group, and family psychotherapy with veterans from various socio- economic, cultural, and diversified backgrounds including veterans experiencing homelessness utilizing evidenced-based practices. o Provided effective and compassionate crisis management for veterans experiencing emotional distress, o Completed psychosocial assessments and case management services for veterans in need of mental health services and/or experiencing homelessness. o Conferred with multi-disciplinary staff to offer seamless continuum of care and optimum level of wellness for veterans. o Evaluated, monitored, and recorded veterans' progress in accordance with measurable goals in treatment and discharge plans. Assistant Clinical Director of Adolescent Unit I Center for Change Hospital 1 12/2011—5/2015 o Co-developed comprehensive program including policies to promote health and well-being of residents. o Supervised,trained, and supported milieu staff to ensure quality care was provided and policies were followed to meet programming goals. o Provided on-call clinical coverage and crisis management for residents and/or their families experiencing emotional distress. o Provided individual, group and family therapy with female adolescents and adults from various socio- economic, cultural, ethnic, and other diversified backgrounds utilizing evidenced based practices. o Performed psychosocial assessments and diagnostic evaluations for female adolescents and adults. o Evaluated, monitored, and recorded residents progress in accordance with measurable goals outlined in treatment and discharge plans. o Presented on various women-specific mental health care topics including depression, anxiety, post- traumatic stress and eating disorders during therapeutic family week. o Planned and oversaw successful monthly Family Week events for residents and their families. Education Master of Social Work, magna cum laude. Arizona State University, Phoenix, Arizona Bachelor of Arts, philosophy. Westminster College, Salt Lake City, Utah Professional Affiliations and Volunteer National Association of Social Workers Member Volunteers of America Volunteer (2022-current) Utah Food Bank,Volunteer(2015-2022) SLC VA Medical Center Diversity Council, Special Emphasis Program Chair (2017-2019) Malihel Free Clinic,Volunteer(2017-2019) SLC VA Medical Center DEMPS Volunteer- Deployed to Puerto Rico (2017) Sabrina Martinez,LCSW pg.2 9/5/23, 10:52 AM BCA-00529--Salesforce-Unlimited Edition • Close Window E • Print This Page • Expand All I Collapse All BCA-00529 BC Boards and BCA-00529 Outcome Commissions Application Name Board Applied For Arts Council Owner SLCCRM Second Choice Stage New Third Choice Previous contact with Yes board or members Profession Attorney Previous Contact I've volunteered for events organized by Details the Arts Council. How Heard Instagram Applicant Applicant Lana Taylor Applicant City Council District Applicant Email ItayLorl031@gmail.com Contact Lana Taylor Applicant Phone 3852497650 Contact Email ItayLorl031@gmail.com Applicant Address 350 S 200 E 416 SLC, LIT 84111 Questionaire Reason for interest in The performing and visual arts have Civic/Professional Org this board always been a big part of my life and I Memberships really appreciate the contribution that the Arts Council makes to the quality of life here in SLC. I regularly participate in events sponsored by the Council and very much enjoy the art installations and exhibits produced by the Council. Community Service I currently volunteer for Salt Lake Other Information activ. past/present County Arts and Culture as an usher at the Eccles Theater,Abravanel Hall, the Capitol Theater, and the Rose Wagner Performing Arts Center. I also volunteer at shows at Pioneed Theatre Company and Red Butte Gardens.And occassionally I volunteer at community activies such as the Arts Festival, Living Traditions, and the Blues Festival. References Reference 1 Name Melissa Reference 3 Name Marissa Reference 1 Last Murphy Reference 3 Last Sowards Name Name Reference 1 Phone 801-707-8897 Reference 3 Phone 801-836-8803 Reference 2 Name Joann Reference 2 Last Eckstrom Name https://slcgov.my.salesforce.com/a7S5G000000wlrYUAQ/p 1/2 9/5/23, 10:52 AM BCA-00529--Salesforce-Unlimited Edition Reference 2 Phone 801-916-1605 Demographics Ethnic Group White/Caucasian/Anglo Gender Identity Female Disabled No Veteran No Languages English Housing Own Home ID as LGBTQ No Education Level Advanced Education Degree Created By SLCCRM Site Guest User, 9/4/2023 Last Modified By SLCCRM Site Guest User, 9/4/2023 12:39 PM 12:39 PM Files Lana Taylor Resume Last Modified 9/4/2023 12:40 PM Created By SLCCRM Copyright©2000-2023 salesforce.com, inc.All rights reserved. https://slcgov.my.salesforce.com/a7S5G000000wlrYUAQ/p 2/2 Lana Taylor ltaylor1031@gmail.com 1 (385) 249-7650 WORK EXPERIENCE UTAH ATTORNEY GENERAL'S OFFICE - February, 2005 to Present Assistant Attorney General,Agency Counsel • Provide legal advice to the Commission on Criminal and Juvenile Justice on a wide variety of criminal justice issues, draft legislation and administrative rules, and assist with requests for governmental records. • Seek restitution on behalf of the Office for Victims of Crime in criminal cases before the district,justice and juvenile courts; represent the Office in civil subrogation matters; and advise the Office regarding policy and personnel issues. • Previously provided legal assistance to the Indigent Defense Commission,the Office of Inspector General of Medicaid Services,the Department of Public Safety, and the Department of Corrections. Section Chief of the Special Prosecutions Section • Prosecuted complex criminal cases involving government corruption, white-collar crime, and mortgage fraud. • Responded to record requests from the public, governmental entities, and the media. Insurance Fraud Prosecutor • Prosecuted heath care, insurance, and prescription fraud cases in state and federal court. • Assisted investigators with subpoenas and search warrants in complex fraud cases. • Trained officers and prosecutors about insurance and prescription fraud. Special Assistant United States Attorney at the DEA Metro Narcotics Force • Prosecuted complex drug distribution and manufacturing cases in federal court. • Reviewed state and federal search warrants and pen register applications. • Assisted prosecutors and law enforcement officers with asset forfeiture proceedings. SALT LAKE COUNTY DISTRICT ATTORNEY'S OFFICE - May, 1997 to February, 2005 Deputy District Attorney, Prosecutor • Prosecuted a variety of criminal offenses in the district,justice and juvenile courts. • Assisted detectives with narcotic investigations at the Salt Lake City and West Valley City Police Department. • Provided child endangerment training to prosecutors, law enforcement officers, and child protective services workers in Utah and across the country. EDUCATION S.J. QUINNEY COLLEGE OF LAW • Juris Doctorate, May 1996 UNIVERSITY OF UTAH • Honors Bachelor's Degree of Science,June 1993 • Political Science Major, English Minor, Practical Politics Certificate Reserve Fund Funding Request SALT LAKE Bloomberg Philanthropies Public Art Challenge Grant CITY Wake: the Great Salt Lake RT November 15, 2023 AI is Wake: the Great Salt Lake Project Description: Over the course of 2024 and 2025,the Arts Council will lead the curation and installation of several temporary artworks in Salt Lake City that all have a connection to the Great Salt Lake.This will include the installation of 1-2 large scale nationally and internationally renowned artists'work.Additionally,temporary artworks by diverse local and regional artists will be commissioned to activate all seven council districts as part of the project. Projects will be structured around major themes such as: • water conservation • air quality • agriculture • industry • environmental justice • ecology of the Lake • social justice-including indigenous rights The goal of the project is to educate and inspire both residents and visitors to identify possible solutions and act on a local and national level. Projects will occur in both urban settings and some site-specific installations.We have established initial partners throughout City Departments,local nonprofits, artists, and are working to create partnerships with local tribal communities, scientists, diverse local community members and others. Executive Background: On June 21, 2023,the Salt Lake City Arts Council Foundation Board of Directors unanimously approved a Board-Designated Operating Reserve Policy.The purpose of this policy was to establish written guidance from the Board to the Staff of the Salt Lake City Arts Council Foundation regarding the expenditure of cash on hand referred to as"the Reserve"which can cover both short-term and long-term funding shortfalls, gaps,unexpected/unbudgeted expenses, and other circumstances described in the policy. In the late summer of this year,the Salt Lake City Arts Council Foundation submitted to Bloomberg Philanthropies for the project described above and were subsequently announced as the winner of a $1,000,00o grant.The proposed budget submitted in our application was bolstered by the inclusion of additional financial support,both monetary and in kind,from varied sources including private family foundations, corporations, and the Salt Lake City Arts Council Foundation Operating Reserve Fund. Request Summary: This document serves as our staffs official request to draw$150,000 from"the Reserve"to support our Bloomberg Philanthropies Public Art Challenge Grant Project, Wake: the Great Salt Lake. Project Budget: Several foundations have committed to supporting the project.With the committed funds,in- kind support from partner organizations and staff the total project budget is approximately$1.8 million.We have allocated$350,000 for grants to local/regional artists projects to support and uplift the artist community in Salt Lake City. Over the past two years the Arts Council has seen growing numbers of applications with projects addressing this crisis. Financial Summary(as proposed to Bloomberg Philanthropies) Period 1 Period 2- Budget 1/1/202-4 1/1/2-025 Total 12 1 024 12 1 202 Personnel Salaries 225,150 217,049 442,199 Fringe Benefits 24,668 21,428 46,096 Contracts/Consulting 180,000 620,000 800,000 Travel&Events 12,750 17,750 30,500 Advertising/Media/Communications 106,000 - 106,00 0 Supplies 250 750 1,000 Grants 90,000 260,000 350,000 Equipment Other Direct Operating Costs 5,0001 20,0001 25,000 Total Direct Costs 1 643,8181 1,156,9711,800,795 Total Indirect Costs I I N/ Total Costs 643,8181 19156,97 1,800,795 Project Income(as proposed to Bloomberg Philanthropies) Project Income Notes Amount Total Committed Funds TBA Family Foundation Private Foundation 50,000 TBA Business Contribution Private Business 10,000 Salt Lake City Arts Council Foundation SLCACF Reserve Funds 150,000 Subtotal 210,000 Additional Project Support to be Secured Matching funds from grantee =magtchiall zations will be required to organizations funds at a minimum of 1:1. 150,000 Other Corporate Partners&Private Foundations 77,500 Subtotal 227,500 In-kind Support(if any) Salt Lake City Corporation In-kind Salaries 307,625 Marketing&Communications In-kind ads and feature stories in Partner Contributions print and radio 50,000 TBA Lodging Partner Accommodations for artists 6,000 Subtotal 363,625 Amount Requested from Bloomberg Philanthropies 1,000,000 Total Project Income 8oi,i25 Reserve Fund Analysis and Staff Recommendation: As stated in our Operating Reserve Policy,"The Reserve Fund target balance will be calibrated as a minimum of 2596, a maximum of 35%, with the optimal or desired calibration of Reserve fund balance at approximatehy,,3o%of operating expenses less Salt Lake City Division related expenses for the most recently approved fiscal year budget, including amendments." An analysis with a this logic applied to our currently approved FY24 budget would result in a recommended minimum balance of the Reserve fund as follows; $329,028.75 (25%) $394,834.50 (3o%), and$46o,640.25 (35%)•It is the recommendation of the staff that the calibration of our Reserve guaranteed minimum be$46o,640.25 or 35% of operating expenses less Salt Lake City Division related expenses. Our FY23 Financial Audit's Financial Analysis of the Foundation's Net Position shows a total net position of$853,839 as of June 30, 2023. If the staff recommended minimum Reserve were maintained in relationship with our current Net Position as described in our audit, $393,198.75 Would be available for draw.As stated in our Operating Reserve Policy, "Determination of need requires analysis of the sufficiency of the current level offunds, the availability of any other sources of funds before using reserves, and evaluation of the time period for which the funds will be required and replenished." As a staff, we recommend the allocation of 15o,000 of Reserve Funds to be dedicated to our Bloomberg Philanthropies Public Art Challenge Grant, Wake: the Great Salt Lake. We feel this project represents a unique opportunity for our Reserve funds to be leveraged for a one-time expense that will have a monumental impact on our Arts and Cultural Industries while also not creating a funding cliff or gap in funding for existing priorities. Of course, should any sudden or unforeseen circumstances negatively impact the financial position of the Arts Council, the general operations of the organization and the core functions of our programs would be prioritized over this project. The financial impact is described below; FY23 Audit Net Position("the Reserve") $853,839.00 Bloomberg Public Art Challenge Grant Funds ($150,000.00) Projected Net Position $703,839.00 StafRecommended Reserve Minimum Calibration(35%) $460,640.00 Excess to Reserve Minimum Calibration $243,199.00 Finally,because this draw of Reserve Funds is beyond the minimum calibration requirement of the Operating Reserve Policy,there is no stated requirement that the funds be returned to the Reserve.Additionally,the current projection of our Net Position with this draw accounted for would result in approximately 54%of existing expenses minus Division related expenses being accounted for in the Reserve,nearly 20% above our minimum expectations. Salt Lake Arts Council Foundation Profit & Loss Budget vs. Actual July 1 through November 6, 2023 Jul 1 -Nov 6,23 Budget $Over Budget Ordinary Income/Expense Income REVENUE CITY In-Kind SLC Dept DED Exp. 0.00 53,805.00 -53,805.00 In-Kind SLC Dept Salaries&Ben 0.00 1,117,004.31 -1,117,004.31 SLC Nondepartmental 800,000.00 800,000.00 0.00 CITY-Other 0.00 0.00 0.00 Total CITY 800,000.00 1,970,809.31 -1,170,809.31 CONTRIBUTIONS Corporate 0.00 50,000.00 -50,000.00 Foundations 0.00 30,000.00 -30,000.00 In-Kind 0.00 70,000.00 -70,000.00 Individuals 5,660.00 8,700.00 -3,040.00 CONTRIBUTIONS-Other 0.00 0.00 0.00 Total CONTRIBUTIONS 5,660.00 158,700.00 -153,040.00 EARNED INCOME Beverage Sales Alcohol 0.00 28,000.00 -28,000.00 Non Alcohol 0.00 0.00 0.00 Beverage Sales-Other 0.00 0.00 0.00 Total Beverage Sales 0.00 28,000.00 -28,000.00 Commissions 9,718.75 3,200.00 6,518.75 Merchandise Sales 0.00 0.00 0.00 Other Fees 7,082.50 8,450.00 -1,367.50 Rental Fees 0.00 3,000.00 -3,000.00 Ticket Sales 0.00 30,000.00 -30,000.00 Vendor Fees 0.00 13,200.00 -13,200.00 Workshop Fees 0.00 0.00 0.00 EARNED INCOME-Other 0.00 0.00 0.00 Total EARNED INCOME 16,801.25 85,850.00 -69,048.75 GOVERNMENT GRANTS County 11,535.00 125,800.00 -114,265.00 Federal 0.00 50,000.00 -50,000.00 State 0.00 50,400.00 -50,400.00 GOVERNMENT GRANTS-Other 0.00 0.00 0.00 Total GOVERNMENT GRANTS 11,535.00 226,200.00 -214,665.00 OTHER REVENUE Contracted Services Rendered 0.00 0.00 0.00 Interest 0.00 0.00 0.00 Miscellaneous Income 400.00 0.00 400.00 Page 1 of 8 Jul 1 -Nov 6,23 Budget $Over Budget Public Art.General 0.00 0.00 0.00 OTHER REVENUE-Other 0.00 0.00 0.00 Total OTHER REVENUE 400.00 0.00 400.00 REVENUE-Other 0.00 0.00 0.00 Total REVENUE 834,396.25 2,441,559.31 -1,607,163.06 Uncategorized Income 0.00 0.00 0.00 Total Income 834,396.25 2,441,559.31 -1,607,163.06 Cost of Goods Sold Cost of Goods Sold 0.00 0.00 0.00 Total COGS 0.00 0.00 0.00 Gross Profit 834,396.25 2,441,559.31 -1,607,163.06 Expense EXPENSES General&Adminstrative Bank Fees Interest Expense 0.00 0.00 0.00 Bank Fees-Other 300.10 500.00 -199.90 Total Bank Fees 300.10 500.00 -199.90 Benefits 258.00 1,760.00 -1,502.00 CED Expenses 0.00 0.00 0.00 Conference Fees 0.00 1,350.00 -1,350.00 Contracted Services 61,320.50 283,875.00 -222,554.50 Credit Card Fees 322.83 1,000.00 -677.17 Depreciation 0.00 0.00 0.00 Dues/Subscriptions/Publications 3,769.22 12,870.00 -9,100.78 Employee Screenings 0.00 200.00 -200.00 General Insurance 2,361.12 12,750.00 -10,388.88 In-Kind SLC Dept DED Expenses 0.00 53,805.00 -53,805.00 In-Kind SLC Dept Salaries&Ben 0.00 1,117,004.31 -1,117,004.31 Parking/Mileage 0.00 1,600.00 -1,600.00 Payroll Taxes Federal Unemployment Tax 0.00 0.00 0.00 FICA 0.00 0.00 0.00 State Unemployment Tax 0.00 0.00 0.00 Payroll Taxes-Other 0.00 0.00 0.00 Total Payroll Taxes 0.00 0.00 0.00 Permits&Licenses 0.00 0.00 0.00 Rent 0.00 0.00 0.00 Salaries&Wages 0.00 0.00 0.00 Travel 0.00 0.00 0.00 Utilities 2,929.55 8,500.00 -5,570.45 General&Adminstrative-Other 0.00 0.00 0.00 Total General&Adminstrative 71,261.32 1,495,214.31 -1,423,952.99 Program Expenses Page 2 of 8 Jul 1 -Nov 6,23 Budget $Over Budget Advertising&Publicity 1,749.60 1 -17,300.40 Artist Commissions 1,802.50 2,240.00 -437.50 Artist Emergency Fund 0.00 0.00 0.00 Beverages Purchased Alcohol 0.00 3,500.00 -3,500.00 Non Alcohol 0.00 5,500.00 -5,500.00 Beverages Purchased-Other 0.00 0.00 0.00 Total Beverages Purchased 0.00 9,000.00 -9,000.00 Equipment Rental 14,275.82 140,400.00 -126,124.18 Equipment Repairs&Maintenance 0.00 0.00 0.00 Food&Beverage 690.70 6,900.00 -6,209.30 Grant Expense Artist Career Empowerment 0.00 0.00 0.00 Artist in the Classroom 21,000.00 21,000.00 0.00 Arts Learning 0.00 0.00 0.00 General Support 213,000.00 231,500.00 -18,500.00 Mini Grant 0.00 0.00 0.00 Project Support 69,338.00 130,000.00 -60,662.00 Racial Equity and Inclusion 0.00 0.00 0.00 Grant Expense-Other 0.00 0.00 0.00 Total Grant Expense 303,338.00 382,500.00 -79,162.00 Graphics/Design Work 400.00 9,500.00 -9,100.00 Honoraria&Artist Fees 10,550.00 87,850.00 -77,300.00 In-Kind Goods&Services 0.00 70,000.00 -70,000.00 Lodging 0.00 0.00 0.00 Mailing 170.32 600.00 -429.68 Meals 0.00 0.00 0.00 Merchandise 0.00 2,750.00 -2,750.00 Miscellaneous Charge 557.49 11,500.00 -10,942.51 Payroll Taxes Federal Unemployment Tax 26.55 0.00 26.55 FICA 1,485.25 0.00 1,485.25 State Unemployment Tax 0.00 0.00 0.00 Payroll Taxes-Other 0.00 11,320.00 -11,320.00 Total Payroll Taxes 1,511.80 11,320.00 -9,808.20 Permits&Licenses 0.00 18,750.00 -18,750.00 Postage 17.05 2,400.00 -2,382.95 Printing 1,907.42 18,550.00 -16,642.58 Public Art 0.00 0.00 0.00 Salaries&Wages 18,223.05 141,500.00 -123,276.95 Security 763.46 41,000.00 -40,236.54 Supplies 1,896.35 15,400.00 -13,503.65 Unemployment 0.00 500.00 -500.00 Program Expenses-Other 0.00 0.00 0.00 Page 3 of 8 Jul 1 -Nov 6,23 Budget $Over Budget Total Program Expenses 357,853.56 99 -633,856.44 EXPENSES-Other 0.00 0.00 0.00 Total EXPENSES 429,114.88 2,486,924.31 -2,057,809.43 Payroll Expenses 0.00 0.00 0.00 Reconciliation Discrepancies 0.00 0.00 0.00 Total Expense 429,114.88 2,486,924.31 -2,057,809.43 Net Ordinary Income 405,281.37 -45,365.00 450,646.37 Other Income/Expense Other Expense Program Startup Cash 0.00 0.00 0.00 Total Other Expense 0.00 0.00 0.00 Net Other Income 0.00 0.00 0.00 Net Income 405,281.37 -45,365.00 450,646.37 Page 4 of 8 Salt Lake Arts Council Foundation 3:11 PM Profit & Loss Budget vs. Actual 11/06/2023 July 1 through November 6, 2023 Accrual Basis %of Budget Ordinary Income/Expense Income REVENUE CITY In-Kind SLC Dept DED Exp. 0.0% In-Kind SLC Dept Salaries&Ben 0.0% SLC Nondepartmental 100.0% CITY-Other 0.0% Total CITY 40.59% CONTRIBUTIONS Corporate 0.0% Foundations 0.0% In-Kind 0.0% Individuals 65.06% CONTRIBUTIONS-Other 0.0% Total CONTRIBUTIONS 3.57% EARNED INCOME Beverage Sales Alcohol 0.0% Non Alcohol 0.0% Beverage Sales-Other 0.0% Total Beverage Sales 0.0% Commissions 303.71% Merchandise Sales 0.0% Other Fees 83.82% Rental Fees 0.0% Ticket Sales 0.0% Vendor Fees 0.0% Workshop Fees 0.0% EARNED INCOME-Other 0.0% Total EARNED INCOME 19.57% GOVERNMENT GRANTS County 9.17% Federal 0.0% State 0.0% GOVERNMENT GRANTS-Other 0.0% Total GOVERNMENT GRANTS 5.1% OTHER REVENUE Contracted Services Rendered 0.0% Interest 0.0% Miscellaneous Income 100.0% Page 5 of 8 %of Budget Public Art.General 0.0% OTHER REVENUE-Other 0.0% Total OTHER REVENUE 100.0% REVENUE-Other 0.0% Total REVENUE 34.18% Uncategorized Income 0.0% Total Income 34.18% Cost of Goods Sold Cost of Goods Sold 0.0% Total COGS 0.0% Gross Profit 34.18% Expense EXPENSES General&Adminstrative Bank Fees Interest Expense 0.0% Bank Fees-Other 60.02% Total Bank Fees 60.02% Benefits 14.66% CED Expenses 0.0% Conference Fees 0.0% Contracted Services 21.6% Credit Card Fees 32.28% Depreciation 0.0% Dues/Subscriptions/Publications 29.29% Employee Screenings 0.0% General Insurance 18.52% In-Kind SLC Dept DED Expenses 0.0% In-Kind SLC Dept Salaries&Ben 0.0% Parking/Mileage 0.0% Payroll Taxes Federal Unemployment Tax 0.0% FICA 0.0% State Unemployment Tax 0.0% Payroll Taxes-Other 0.0% Total Payroll Taxes 0.0% Permits&Licenses 0.0% Rent 0.0% Salaries&Wages 0.0% Travel 0.0% Utilities 34.47% General&Adminstrative-Other 0.0% Total General&Adminstrative 4.77% Program Expenses Page 6 of 8 %of Budget Advertising&Publicity 9.18% Artist Commissions 80.47% Artist Emergency Fund 0.0% Beverages Purchased Alcohol 0.0% Non Alcohol 0.0% Beverages Purchased-Other 0.0% Total Beverages Purchased 0.0% Equipment Rental 10.17% Equipment Repairs&Maintenance 0.0% Food&Beverage 10.01% Grant Expense Artist Career Empowerment 0.0% Artist in the Classroom 100.0% Arts Learning 0.0% General Support 92.01% Mini Grant 0.0% Project Support 53.34% Racial Equity and Inclusion 0.0% Grant Expense-Other 0.0% Total Grant Expense 79.3% Graphics/Design Work 4.21% Honoraria&Artist Fees 12.01% In-Kind Goods&Services 0.0% Lodging 0.0% Mailing 28.39% Meals 0.0% Merchandise 0.0% Miscellaneous Charge 4.85% Payroll Taxes Federal Unemployment Tax 100.0% FICA 100.0% State Unemployment Tax 0.0% Payroll Taxes-Other 0.0% Total Payroll Taxes 13.36% Permits&Licenses 0.0% Postage 0.71% Printing 10.28% Public Art 0.0% Salaries&Wages 12.88% Security 1.86% Supplies 12.31% Unemployment 0.0% Program Expenses-Other 0.0% Page 7 of 8 %of Budget Total Program Expenses 36.08% EXPENSES-Other 0.0% Total EXPENSES 17.26% Payroll Expenses 0.0% Reconciliation Discrepancies 0.0% Total Expense 17.26% Net Ordinary Income -893.38% Other Income/Expense Other Expense Program Startup Cash 0.0% Total Other Expense 0.0% Net Other Income 0.0% Net Income -893.38% Page 8 of 8 OSBORNE, ROBBINS & BUHLER, P.L.L.C. Certified Public Accountants 4527 South 2300 East, Suite 201 • Salt Lake City, Utah 84117-4480 • Phone: (801)308-0220 • Fax: (801)274-8589 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Trustees Salt Lake Arts Council Foundation We have audited, in accordance with the auditing standards generally accepted in the United State of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the general fund of Salt Lake Arts Council Foundation (the Foundation), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Foundation's basic financial statements and have issued our report thereon dated November 1, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Foundation's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Foundation's internal control. Accordingly, we do not express an opinion on the effectiveness of the Foundation's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and responses that we consider to be significant deficiencies. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Foundation's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Salt Lake Arts Council Foundation's Response to Findings The Foundation's response to the findings identified in our audit is described in the accompanying schedule of findings and responses. The Foundation's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose November 1, 2023 SCHEDULE OF FINDINGS AND RESPONSES Internal Control over Financial Reporting Management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair presentation in the financial statements of financial position and results of operations, including the notes to the financial statements, in conformity with U.S. generally accepted accounting principles (GAAP). At times management may choose to outsource certain accounting functions due to cost or training considerations. Such accounting functions and service providers must be governed by the control policies and procedures of the Foundation. Management is as responsible for outsourced functions performed by a service provider as it would be if its personnel performed such function. Specifically, management is responsible for management decisions and functions; for designating an individual with suitable skill, knowledge, or experience to oversee any outsourced services; and for evaluating the adequacy and results of those services and accepting responsibility for them. As part of the audit, management requested us to prepare a draft of the Foundation's financial statements, including the related notes to the financial statements. Management reviewed, approved, and accepted responsibility for those financial statements prior to their issuance; however, management does not currently have the ability to 1) evaluate the completeness of the financial statement disclosures, 2) recognize instances when reclassification of financial statement items may be required by GAAP, or 3)evaluate the appropriateness of information with regard to GASB Statement No. 68 as provided by service organizations. The absence of the ability to perform these control procedures is considered a significant deficiency because the potential exists that a more than inconsequential but less than material misstatement of the financial statements could occur and not be prevented or detected by the Foundation's internal control. The existence of this significant deficiency is already known to management and represents a conscious decision by management or those charged with governance to accept that degree of risk because of cost or other considerations. Management is responsible for making decisions concerning costs and the related benefits. We are responsible to communicate significant deficiencies and material weaknesses in accordance with professional standards regardless of management's decisions. Recommendation We recommend that Management and those charged with governance evaluate the ongoing risks associated with the above finding and compare it to the costs of additional training and or staff required to mitigate or eliminate those risks. Management Response We have considered the costs and benefits associated with addressing the risks noted in the above finding and have determined the costs to be prohibitive. We are comfortable with the risk levels associated with this finding.