HomeMy WebLinkAbout12/17/2025 - Meeting Materials Salt Lake Arts Council Foundation 3:15 PM
Profit & Loss Budget vs. Actual 12/05/2025
July through November 2025 Accrual Basis
Jul-Nov 25 Budget
Ordinary Income/Expense
Income
REVENUE
CITY
In-Kind SLC Dept DED Exp. 0.00 53,805.00
In-Kind SLC Dept Salaries&Ben 0.00 1,306,787.01
SLC Nondepartmental 1,025,000.00 1,025,000.00
Total CITY 1,025,000.00 2,385,592.01
CONTRIBUTIONS
Corporate 15,000.00 55,000.00
Foundations 930,690.33 955,690.00
In-Kind 0.00 165,000.00
Individuals 4,320.00 6,300.00
Total CONTRIBUTIONS 950,010.33 1,181,990.00
EARNED INCOME
Beverage Sales
Alcohol 0.00 29,000.00
Total Beverage Sales 0.00 29,000.00
Commissions 16,378.75 5,500.00
Merchandise Sales 120.00
Other Fees 15,149.25 8,600.00
Rental Fees 1,010.00 3,500.00
Ticket Sales 30,000.00 30,000.00
Vendor Fees 0.00 14,000.00
Total EARNED INCOME 62,658.00 90,600.00
GOVERNMENT GRANTS
County 35,884.00 200,000.00
Federal 0.00 30,000.00
State 46,500.00 46,500.00
Total GOVERNMENT GRANTS 82,384.00 276,500.00
OTHER REVENUE
Interest 13,955.62 30,000.00
Miscellaneous Income 1,947.25
Total OTHER REVENUE 15,902.87 30,000.00
Total REVENUE 2,135,955.20 3,964,682.01
Total Income 2,135,955.20 3,964,682.01
Gross Profit 2,135,955.20 3,964,682.01
Expense
EXPENSES
Page 1 of 3
Jul-Nov 25 Budget
General&Adminstrative
Bank Fees 207.55 700.00
Benefits 344.00 1,795.00
Conference Fees 0.00 500.00
Contracted Services 323,502.01 1,252,781.00
Credit Card Fees 802.24 1,600.00
Dues/Subscriptions/Publications 2,832.05 13,800.00
Employee Screenings 0.00 500.00
General Insurance 1,638.45 9,700.00
In-Kind SLC Dept DED Expenses 0.00 53,805.00
In-Kind SLC Dept Salaries&Ben 0.00 1,306,787.01
Parking/Mileage 110.88 1,800.00
Travel 25.00 5,881.00
Utilities 3,293.62 10,000.00
Total General&Adminstrative 332,755.80 2,659,649.01
Program Expenses
Advertising&Publicity 6,425.56 62,583.00
Artist Commissions 13,223.00 3,850.00
Beverages Purchased
Alcohol 0.00 8,000.00
Non Alcohol 0.00 5,500.00
Total Beverages Purchased 0.00 13,500.00
Equipment Rental 15,200.61 171,750.00
Food&Beverage 2,477.84 8,250.00
Grant Expense
Artist in the Classroom 21,000.00 21,000.00
General Support 324,050.00 333,000.00
Project Support 86,000.00 146,000.00
Total Grant Expense 431,050.00 500,000.00
Graphics/Design Work 16.50 9,400.00
Honoraria&Artist Fees 224,000.00 119,850.00
In-Kind Goods&Services 0.00 165,000.00
Mailing 249.28 700.00
Merchandise 0.00 3,500.00
Miscellaneous Charge 1,348.43 8,711.00
Payroll Taxes
Federal Unemployment Tax 20.05
FICA 1,901.12
Payroll Taxes-Other 0.00 11,260.00
Total Payroll Taxes 1,921.17 11,260.00
Permits&Licenses 0.00 37,030.00
Postage 156.00 2,400.00
Page 2 of 3
Jul-Nov 25 Budget
Printing 1,639.50 22,900.00
Salaries&Wages 22,665.41 143,665.00
Security 463.50 56,250.00
Supplies 8,268.95 20,752.00
Unemployment 351.36 5,000.00
Total Program Expenses 729,457.11 1,366,351.00
Total EXPENSES 1,062,212.91 4,026,000.01
Payroll Expenses 0.00
Total Expense 1,062,212.91 4,026,000.01
Net Ordinary Income 1,073,742.29 -61,318.00
Net Income 1,073,742.29 -61,318.00
Page 3 of 3
Salt Lake Arts Council Foundation
(A Non-profit organization and a
component unit of Salt Lake City Corporation)
Basic Financial Statements and
Report of Independent Certified Public Accountants
June 30, 2025
Osborne, Robbins, & Buhler, PLLC
Page
Independent Auditor's Report 1
Required supplementary information
Management's discussion and analysis 4
Basic financial statements
Government-wide financial statements:
Statement of net position 12
Statement of activities 13
Fund financial statements
Balance sheet-governmental fund 14
Statement of revenues, expenditures and changes in fund
balance -governmental fund 15
Notes to the basic financial statements 17
Required supplementary information
Schedule of revenues, expenditures and changes in fund
balance - budget and actual -general fund 33
Schedule of the Proportionate Share of the Net Pension
Liability- Utah Retirement Systems 34
Schedule of Contributions - Utah Retirement Systems 35
Notes to Required Supplementary Information 36
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
Board of Trustees
Salt Lake Arts Council Foundation
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying 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, 2025, and the related notes to the financial statements, which collectively comprise the
Foundation's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities and the general fund of Salt Lake
Arts Council Foundation June 30, 2025, and the changes in financial position for the year then
ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the Foundation
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and
for 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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the
Foundation's ability to continue as a going concern for twelve months beyond the financial
statement date, including any currently known information that may raise substantial doubt shortly
thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but
is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with generally accepted auditing standards and Government Auditing Standards will always
1
detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the
audit.
• Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to
those risks. Such procedures include examining, on a test basis, evidence regarding the
amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 Foundation's internal control.
Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Foundation's ability to continue as a
going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on page 4 through 10, the budgetary comparison
information on page 33 and the pension information on pages 34-36 be presented to supplement
the basic financial statements. Such information is the responsibility of management and,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about 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 do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 3, 2025, on our consideration of the Foundation's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is solely to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
2
that testing, and not to provide an opinion on the effectiveness of the Foundation's internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Foundation's internal control
over financial reporting and compliance.
November 3, 2025
3
Salt Lake Arts Council Foundation
Management's Discussion and Analysis (Unaudited)
June 30, 2025
Our discussion and analysis of the Foundation's financial performance provides an overview of
the Foundation's financial activities for the fiscal year ended June 30, 2025. Please read it in
conjunction with the Foundation's financial statements which begin on page 12.
FINANCIAL HIGHLIGHTS
• The Foundation's net position at June 30, 2025 is $1,895,172 consisting of $3,095
net investment in capital assets, $719,339 restricted net position and unrestricted net
position of $1,172,738. As of June 30, 2024, the Foundation's net position was
$963,045, consisting of $3,191 net investment in capital assets and unrestricted net
position of$959,854.
• The restricted net position consists of cash and grants receivable restricted for use in
the Foundation's Wake the Great Salt Lake program. During 2025 the Foundation
received $921,375 from Salt Lake City Corporation and $188,442 from other donors
that were restricted for this program.
• The Foundation's net position increased by $932,127 during 2025 and $109,206
during 2024.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of a series of financial statements.
Foundation-wide Financial Statements
The Statement of Net Position presents information on all the Foundation's assets and liabilities,
with the difference between the two reported as net position. Over time, increases or decreases
in net position may serve as a useful indicator of whether the financial position of the Foundation
is improving or deteriorating.
The Statement of Activities presents information showing how the Foundation's net position
changed during the year presented. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of the related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only
result in cash flows in future periods (such as earned but unused vacation leave).
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The Foundation maintains only one fund —
the General Fund which is a governmental fund.
The Governmental fund financial statements differ from the Foundation-wide financial statements
in that they focus on near-term inflows and outflows of spendable resources as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating the Foundation's near-term financing requirements.
4
Salt Lake Arts Council Foundation
Management's Discussion and Analysis (Unaudited)
June 30, 2025
FINANCIAL ANALYSIS OF THE FOUNDATION
To begin our analysis, a summary of the Foundation's Net Position is presented in Table A-1
below.
As noted earlier, net position may serve, over time, as a useful indicator of the Foundation's
financial position. The Foundation shows a total net position of $1,895,172 as of June 30, 2025
and $963,045 as of June 30, 2024. The increase in fiscal year 2025 was primarily the result of
the aforementioned transfer from Salt Lake City and grant funds received in connection with the
Foundation's Wake the Great Salt Lake program. The Foundation also saw an increase in other
grant revenues of $159,582 over 2024 consisting largely of government grants and in-kind
donations.
As of June 30, 2025, the Foundation's net position consisted of $3,095 ($3,191 in 2024) that
represents its investment in capital assets (e.g. buildings and improvements, event equipment,
and office furniture and equipment). As of June 30, 2025 and 2024, there is no debt associated
with the acquisition of these assets. These assets are used by the Foundation to conduct its
programs and consequently, are not available for future spending.
As of June 30, 2025, the Foundation's reported $719,339 net position restricted for use in the
Wake the Great Salt Lake program. As of June 30, 2024, none of the Foundation's net position
was subject to external restrictions.
At the end of 2025, the Foundation reported unrestricted net position of$1,172,738, compared to
unrestricted net position of$959,854 in 2024.
TABLE A-1
Statement of Net Position
June 30,
2025 2024
Current and other assets $ 2,186,863 $ 1,127,937
Capital assets 3,095 3,191
Total assets $ 2,189,958 $ 1,131,128
Deferred outflows of resources $ 224,673 $ 135,464
Noncurrent liabilities $ 224,507 $ 152,686
Other liabilities 291,678 149,049
Total liabilities $ 516,185 $ 301,735
Deferred inflows of resources $ 3,274 $ 1,812
Net position
Net investment in capital
assets $ 3,095 $ 3,191
Restricted 719,339 -
Unrestricted 1,172,738 959,854
Total net position $ 1,895,172 $ 963,045
5
Salt Lake Arts Council Foundation
Management's Discussion and Analysis (Unaudited)
June 30, 2025
A summary of the Foundation's changes in net position is presented in Table A-2.
Table A-2
Revenues, Expenses and Changes in Net Position
Years ending June 30,
2025 2024 Change
Revenues
Program revenues
Vendor fees $ 11,900 $ 13,200 $ (1,300)
Ticket sales and fees 27,594 40,602 (13,008)
Beverage sales 28,430 51,308 (22,878)
Gallery commission 8,867 18,269 (9,402)
Operating grants and
contributions 463,908 304,326 159,582
General revenues
Grants and contributions not
restricted to specific programs 261,908 175,869 86,039
Rental income 4,890 2,370 2,520
Interest and miscellaneous income 37,529 30,538 6,991
Transfers from Salt Lake City
Corporation 3,158,704 1,967,641 1,191,063
Total revenues 4,003,730 2,604,123 1,399,607
Expenses
Administration 368,587 356,714 11,873
City Arts Grants 624,423 490,350 134,073
Brown Bag/Busker Fest 84,413 73,383 11,030
Twilight Concert Series 193,814 176,930 16,884
Living Traditions Festival 756,011 670,229 85,782
Living Traditions Events 56,188 45,999 10,189
Visual Arts Exhibitions 150,182 145,331 4,851
Wake the Great Salt Lake 376,903 104,160 272,743
Public Art Program 232,955 215,642 17,313
Other Program Services 228,031 215,946 12,085
Depreciation Expense 96 233 (137)
Total expenses 3,071,603 2,494,917 576,686
Change in net position 932,127 109,206 822,921
Net position at beginning of year 963,045 853,839 109,206
Net position at end of year $ 1,895,172 $ 963,045 $ 932,127
6
Salt Lake Arts Council Foundation
Management's Discussion and Analysis (Unaudited)
June 30, 2025
The Foundation's total revenues increased by approximately $1.4 million between 2025 and
2024. The primary reason for the increase is related to the increase in transfers from Salt Lake
City Corporation which were higher than in 2024 by approximately $1.2 million. Of this increase,
approximately $921,000 represented funds for use in the aforementioned Wake the Great Salt
Lake program. The Foundation also reported an increase in grants and contributions of
approximately $245,000 over 2024, with approximately $188,000 of that amount related to grants
restricted for use in the Wake the Great Salt Lake program.
Overall expenses increased during fiscal year 2025 by approximately $576,000 which was the
result of several factors. During 2025, the Foundation's Wake the Great Salt Lake program,
which was just launched in 2024, recognized expenses of $376,903 which was an increase of
over $272,000 from 2024. There were also increases in expenses in all other programs of the
Foundation, with the largest increases in the City Arts Grants program and Living Traditions
Festival.
The Foundation held two fewer concerts in 2025 as part of its Twilight Concert Series resulting in
a reduction in ticket sales and fees compared to 2024.
During 2025, the Foundation recognized program revenues including vendor and ticket fees,
beverage sales and gallery commissions totaling $76,791. This represents a decrease from 2024
of approximately $46,000, primarily the result of holding fewer Twilight Concerts during the year.
Gallery commissions were also lower when compared to 2024 because 2024 had an unusually
high level of commissions arising from art sales.
BUDGETARY HIGHLIGHTS
The Foundation is required by law to adopt an annual budget. At the June board meeting, a
projected budget for the upcoming year is reviewed and presented to the board for discussion
and adoption.
During the year, the Foundation amended the budget to reflect an increase in transfers from Salt
Lake City Corporation and decreases to grants and contributions and ticket sales and fees.
Additionally, the budget was amended to provide for additional expenses associated with the
Wake the Great Salt Lake program, City Arts Grants, Twilight Concert Series, Living Traditions
Festival and Living Traditions Events.
The Foundation follows a fund balance reserve policy to establish guidelines for future budgeting
and ensure preservation of the Foundation's fund balance.
7
Salt Lake Arts Council Foundation
Management's Discussion and Analysis (Unaudited)
June 30, 2025
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of fiscal year 2025, there was $370,407 invested in capital assets, as shown in Table
A-3. The Foundation did not acquire any new capital assets during 2025.
TABLE A-3
Capital Assets at Cost
June 30, June 30,
2025 2024
Buildings and improvements $ 347,774 $347,774
Event equipment 6,529 6,529
Office furniture and equipment 16,104 16,104
$ 370,407 $370,407
Additional information on the Foundation's capital assets can be found in Note E on page 23 of
this report.
Long-Term Debt
As of June 30, 2025 Foundation had long-term obligations outstanding related to compensated
absences due to employees totaling $68,411.
As of June 30, 2025 the Foundation had a net pension liability of$172,000.
The following summarizes the long-term obligations of the Foundation as of June 30, 2025 and
2024.
TABLE A-4
Long-Term Obligations
June 30, June 30,
2025 2024
Compensated absences $ 68,411 $ 96,662
Net pension liability 172,000 69,668
$ 240,411 $166,330
The Foundation has never issued bonds and has no bond rating.
Additional information on the Foundation's long-term debt can be found in Note F on page 24 of
this report.
8
Salt Lake Arts Council Foundation
Management's Discussion and Analysis (Unaudited)
June 30, 2025
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The Foundation's 2026 budget was prepared reflecting a decrease in non-departmental funding
from Salt Lake City Corporation, from approximately $1.9 million in 2025, which included
$921,000 in funding for the Wake the Great Salt Lake program, to $1,025,000 in 2026. These
funds are for use in funding the Foundation's City Arts Grants Program, public programs and
operations and facility management.
Salt Lake County ZAP funds available to the Foundation have stabilized following a change in the
operational model for Twilight Concert Series that the Foundation adopted in 2018. Beginning
with that year, the Foundation's qualifying expenditures associated with the Twilight Concert
Series declined, resulting in an accumulated decrease in ZAP revenues of approximately
$215,000 over the past several years. The Foundation's new program, Wake the Great Salt Lake,
will increase the Foundation's qualifying expenditures on a temporary basis until the program is
completed and all grant funds associated with it have been expended
Looking forward, the Foundation will be subsidizing an increase in the costs charged by the
venue for Twilight Concert Series. Some of the shows were moved from the Gallivan Center to
Library Square to allow for more capacity. This change did increase capacity but also increased
the cost of production and the Foundation was required to utilize fund balance to cover the
additional costs. The financial implications of this change will be evaluated over the 2026 series
and beyond.
The Foundation's fund balance remains healthy and allows for excess cash to be invested with
the Public Treasurer's Investment Fund, providing the Foundation with additional revenues in the
form of interest income.
Salt Lake City Corporation was awarded a Bloomberg Public Art Challenge Grant for $1 million,
and contracted with the Foundation to manage the grant. The grant funds were transferred to the
Foundation in 2025 to be used for a project called Wake the Great Salt Lake. That program will
be completed in March of 2026 with the Signature Commission project, at which time the
Foundation will ensure all reporting to the Bloomberg Foundation is completed.
A capital construction project is planned for improvements to the Art Barn with planning occurring
in 2025-2026 and construction likely to begin in 2027. The project is expected to take several
months in 2027 and could impact both revenues and expenses associated with the Finch Lane
Gallery and the Art Barn as a result of temporary closures during construction.
The Foundation has implemented a shift in operations wherein the Special Projects Coordinator
role was reassigned from overseeing special projects to focusing on marketing and
communications tasks. The Foundation has experienced consistent turnover in part-time
marketing roles and has had a critical need to fill that role with full-time staff. This model has
been incredibly successful thus far, with little budget impact.
Last year, we noted the Foundation's 2025 Living Traditions Festival would overlap with a rapidly
growing music festival in Salt Lake City. The Foundation did experience notable challenges in
procuring local labor to staff the 2025 Festival, as well as declines in attendance. Weather
conditions were poor as well, so it is difficult to attribute the declining attendance and revenue to
any one factor, but the Foundation will continue to monitor the impact of holding the Festival on
the same weekend as the music festival. Despite these conditions, the Foundation did reach its
revenue goals for the Festival.
9
Salt Lake Arts Council Foundation
Management's Discussion and Analysis (Unaudited)
June 30, 2025
The Mayor of Salt Lake City has engaged the Foundation to implement a Poet Laureate Program
in 2026. The Foundation is in the process of developing a structure for the program and
addressing the corresponding impacts on the budget.
Over the course of the past year, the Salt Lake City Council has demonstrated an increased
interest in the procurement and creation of more public art, which could impact the Foundation's
budget or staff allocations.
Otherwise, the Foundation's normal operations will continue including:
• Maintaining year-round public hours of operation at the Finch Lane Gallery.
• Presenting a five-concert series, Mondays in the Park.
• Running a three-day Living Traditions Festival.
• Funding the 2026 Busker Fest through a contracted services agreement with Primrose
Productions.
• Presenting a five or six show Twilight Concert Series with partners S & S Presents.
• Funding regular grant cycles with City Arts Grants.
• Performing outreach engagement efforts as capacity allows.
CONTACTING THE FOUNDATION'S FINANCIAL MANGEMENT
This report is designed to provide a general overview of the Foundation's finances and to
demonstrate the Foundation's accountability for the money it receives. If you have questions
about this report or need additional information, contact the Foundation's Director, Felicia Baca,
at 54 Finch Lane, Salt Lake City, Utah 84102, by phone at (801) 596-5000, or e-mail at
felicia.baca(o)slc.gov.
10
BASIC FINANCIAL STATEMENTS
Salt Lake Arts Council Foundation
Statement of Net Position
June 30, 2025
Governmental
Activities
ASSETS
Current assets
Cash and cash equivalents $ 1,277,457
Grants and sponsorships receivable 100,454
Miscellaneous receivables 1,863
Restricted assets
Cash and cash equivalents 757,089
Grants receivable 50,000
Total current assets 2,186,863
Noncurrent assets
Net capital assets 3,095
Total noncurrent assets 3,095
Total assets $ 2,189,958
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to pensions $ 224,673
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 102,924
Grants payable 85,100
Current portion, compensated absences 15,904
Liabilities payable from restricted assets
Grants payable 87,750
Total current liabilities 291,678
Noncurrent liabilities
Net pension liability 172,000
Compensated absences, net of current portion 52,507
Total noncurrent liabilities 224,507
Total liabilities $ 516,185
DEFERRED INFLOWS OF RESOURCES
Revenues received in advance of permitted use $ 1,507
Deferred inflows of resources related to pensions 1,767
$ 3,274
NET POSITION
Net investment in capital assets $ 3,095
Restricted 719,339
Unrestricted 1,172,738
Total net position $ 1,895,172
See accompanying notes to basic financial statements.
12
Salt Lake Arts Council Foundation
Statement of Activities
For the year ended June 30, 2025
Program Revenues
Vendor Fees,
Ticket Sales Net(Expense)
and Fees Revenue and
Beverage Changes in
Sales, Gallery Net Position
Commissions Operating Governmental
Contracted Grants and Activities
Functions/Programs Expenses Services Contributions Total
Primary Government
Governmental activities
Administration $ 368,587 $ - $ - $ (368,587)
City Arts Grants 624,423 - - (624,423)
Brown Bag/Busker Fest 84,413 - - (84,413)
Twilight Concert Series 193,814 27,594 9,305 (156,915)
Living Traditions Festival 756,011 40,330 255,345 (460,336)
Living Traditions Events 56,188 - 10,816 (45,372)
Visual Arts Exhibitions 150,182 8,867 - (141,315)
Wake the Great Salt Lake 376,903 - 188,442 (188,461)
Public Art Program 232,955 - - (232,955)
Other Program Services 228,031 - - (228,031)
Depreciation Expense 96 - - (96)
Total primary government $ 3,071,603 $ 76,791 $ 463,908 (2,530,904)
General revenues:
Grants and contributions not
restricted to specific programs 261,908
Rental income 4,890
Interest and miscellaneous income 37,529
Transfers from Salt Lake
City Corporation 3,158,704
3,463,031
Change in net position 932,127
Net position at beginning of year 963,045
Net position at end of year $ 1,895,172
See accompanying notes to basic financial statements.
13
Salt Lake Arts Council Foundation
Balance Sheet — Governmental Fund
June 30, 2025
General
Fund
ASSETS
Cash and cash equivalents $ 1,277,457
Grants and sponsorships receivable 100,454
Miscellaneous receivables 1,863
Restricted assets
Cash and cash equivalents 757,089
Grants receivable 50,000
Total assets $ 2,186,863
LIABILITIES
Accounts payable and
accrued liabilities $ 102,924
Grants payable 85,100
Liabilities payable from restricted assets
Grants payable 87,750
Total liabilities 275,774
DEFERRED INFLOWS OF RESOURCES
Revenues received in advance of allowable use 1,507
FUND BALANCE
Restricted 719,339
Committed 138,483
Unassigned 1,051,760
Total fund balance 1,909,582
Total liabilities, deferred inflows of resources and fund balance $ 2,186,863
Reconciliation of total governmental fund balance
to net position of governmental activities:
Total governmental fund balance $ 1,909,582
Amounts reported for governmental activities in the
statement of net assets are different because:
Capital assets used in governmental activities are
not financial resources and therefore are
not reported in the general fund 3,095
Deferred outflows of resources are not available to pay
for current period expenditures and therefore
are deferred in the general fund 224,673
Actuarially calculated changes in the net pension asset or
liability are deferred for recognition in later periods (1,767)
Long-term liabilities-compensated absences
and the net pension liability not due
and payable in the current period are
not recorded as an expenditure or a
liability in the general fund (240,411)
Net position of governmental activities $ 1,895,172
See accompanying notes to basic financial statements.
14
Salt Lake Arts Council Foundation
Statement of Revenues, Expenditures and Changes in
Fund Balance — Governmental Fund
For the year ended June 30, 2025
General
Fund
Revenues
Grants and contributions $ 725,816
Vendor fees 11,900
Ticket sales and fees 27,594
Beverage sales 28,430
Gallery commissions 8,867
Rental Income 4,890
Interest on investments 36,257
Miscellaneous 1,272
Total revenues 845,026
Expenditures
Current
Administration 371,527
City Arts Grants 625,885
Brown Bag/Busker Fest 84,586
Twilight Concert Series 194,321
Living Traditions Festival 757,576
Living Traditions Events 56,433
Visual Arts Exhibitions 151,574
Wake the Great Salt Lake 377,813
Public Art Program 235,740
Other Program Services 230,575
Total expenditures 3,086,030
Deficiency of revenues over expenditures (2,241,004)
Other financing sources
Operating transfers from Salt Lake City Corporation 3,158,704
Total other financing sources and uses 3,158,704
Net change in fund balance 917,700
Fund balance at beginning of year 991,882
Fund balance at end of year $ 1,909,582
Continued
15
Salt Lake Arts Council Foundation
Statement of Revenues, Expenditures and Changes in
Fund Balance — Governmental Fund - continued
For the year ended June 30, 2025
Reconciliation of the change in fund balance-governmental fund
to the change in net position of governmental activities
Net change in fund balance-governmental fund $ 917,700
Amounts reported for governmental activities in the
statement of activities are different because:
Governmental funds report capital outlays as expenditures while
governmental activities report depreciation expense to allocate
those expenditures over the life of the assets:
Capital assets purchases capitalized -
Depreciation expense (96)
Some expenses reported in the statement of activities, such as
compensated absences and pension expenses
do not require the use of current financial
resources and therefore are not reported as
expenditures in the governmental fund 14,523
Change in net position of governmental activities $ 932,127
See accompanying notes to the basic financial statements.
16
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE A- SUMMARY OF ACCOUNTING POLICIES
History, organization activity and reporting entity
The Foundation was established as a Utah Nonprofit Corporation in 1979 to promote the arts
within Salt Lake City. The Foundation operates in conjunction with, and its trustees are identical
to, the Salt Lake City Arts Council, which is an advisory board to the Mayor under Salt Lake City
Ordinances. The Foundation is a component unit of Salt Lake City. The Foundation conducts
several programs promoting the arts including Living Traditions Festival, Busker Fest, Public Art
Program and the Twilight Concert Series. The Foundation also makes grants to local
organizations promoting the arts, and operates the Art Barn, a local art center that provides
Visual Arts Exhibitions.
Basis of presentation
The Foundation's financial statements are prepared in accordance with generally accepted
accounting principles (GAAP). Because the mayor of Salt Lake City appoints the members of the
Salt Lake City Arts Council which also makes up the trustees for the Foundation, the Foundation
is subject to the requirements of the Governmental Accounting Standards Board. Accordingly,
the accompanying financial statements do not reflect the provisions of the Financial Accounting
Standards Board.
The Governmental Accounting Standards Board is responsible for establishing GAAP for state
and local governments. The more significant accounting policies established in GAAP and used
by the Foundation are discussed below.
Basic Financial Statements and Basis of Accounting
The Foundation is a governmental nonprofit entity, solely accounted for in a general fund and
categorized as a governmental-type activity. The Foundation's basic financial statements include
both government-wide and fund financial statements.
Government-wide financial statements
The government-wide financial statements are presented on the full accrual, economic resource
basis of accounting which recognizes all long-term assets and receivables as well as long-term
debt and obligations. Revenues are recognized when earned and expenses are recognized
when incurred. The Foundation's net position is reported in three parts, as applicable — net
investment in capital assets, restricted, and unrestricted. The Foundation first utilizes restricted
resources to finance qualifying activities.
The government-wide Statement of Activities reports both the gross and net cost of each of the
Foundation's functions. The functions are also supported by general government revenues and
transfers from Salt Lake City. The Statement of Activities reduces gross expenses (including
depreciation) by related program revenues, operating and capital grants. Direct expenses are
those that are clearly identifiable with a specific program or function. Indirect expenses for
centralized services and administrative overhead are allocated among the programs or functions.
Program revenues include 1) vendor fees charged to allow outside vendors to set up a sales
booth at certain events, 2) ticket sales and fees earned from the Twilight Concert Series, 3)
beverages sold by the Foundation at certain events, 4) gallery commissions, 5) contracted
services and 6) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function. Unrestricted grants and contributions and other revenues
not properly included among program revenues are reported instead as general revenues.
17
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE A—SUMMARY OF ACCOUNTING POLICIES - CONTINUED
This government-wide focus is more on the sustainability of the Foundation as an entity and the
change in the Foundation's net position resulting from the current year's activities.
Fund financial statements
The General Fund is the only fund used by the Foundation. The financial statements of this fund
are presented on the modified accrual basis of accounting. Under the modified accrual basis of
accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and
available. Revenues are considered to be available when they are collectible within the current
period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
Foundation considers revenues to be available if they are collected within 60 days of the end of
the current fiscal period or if the revenues have not been received at the normal time.
Expenditures are generally recognized under the modified accrual basis of accounting when the
related fund liability is incurred. However, principal and interest on long-term debt, which is not
material, are recognized when paid. Allocations of costs, such as depreciation and amortization
are not recognized in governmental funds.
Receivables
Receivables consist of amounts due from grantors and miscellaneous other items. An allowance
for doubtful accounts is not considered necessary as of June 30, 2025.
Deposits and investments
The Foundation's cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or less from the date
of acquisition.
Restricted cash and cash equivalents
Certain restricted cash and cash equivalents are held for future use in a particular program.
Capital assets and depreciation
Capital assets are defined by the Foundation as assets with an initial, individual cost of more than
$5,000 and an estimated useful life in excess of 5 years. The Foundation records its capital
assets at cost. Contributed capital assets are valued at their estimated fair market value on the
date of contribution. Additions, improvements and other capital outlays that significantly extend
the useful life of an asset are capitalized. Maintenance and repairs are charged to current period
operating expenses, whereas additions and improvements are capitalized.
Depreciation of property and equipment has been provided using the straight-line method over
the following estimated useful lives:
Years
Building and improvements 5-30
Event equipment 5— 10
Office furniture and equipment 5— 10
18
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE A—SUMMARY OF ACCOUNTING POLICIES - CONTINUED
Prepaid items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded in the general fund as prepaid items.
Compensated absences
Vacation leave, compensatory leave, and personal leave that will eventually be paid are
recognized as liabilities as they are earned. In the event of termination or retirement, an
employee is reimbursed for unused accumulated vacation and compensatory leave. It is the
policy of the Foundation to compensate employees for 100% of their accumulated vacation and
compensatory leave. The compensation for personal leave will be paid at 50% of the unused
portion of earned leave upon termination or retirement.
Fund Balance
Governmental fund balance is further classified as follows:
Nonspendable fund balance. This classification includes amounts that cannot be spent because
they are either (a) not in spendable form — prepaid items or inventories; or (b) legally or
contractually required to be maintained intact.
Restricted fund balance. This classification reflects the constraints imposed on resources either
(a) externally by creditors, grantors, contributors, or laws or regulations of other governments; or
(b) imposed by law through constitutional or enabling legislation.
Committed fund balance. These amounts can only be used for specific purposes pursuant to
constraints imposed by formal resolutions of the board of trustees — the Foundation's highest
level of decision making authority. Those committed amounts cannot be used for any other
purpose unless the board removes the specified use by taking the same type of action imposing
the commitment. This classification also includes contractual obligations to the extent that
existing resources in the fund have been specifically committed for use in satisfying those
contractual requirements.
Assigned fund balance. This classification reflects the amounts constrained by the Foundation's
"intent" to be used for specific purposes but are neither restricted nor committed. The board of
trustees has the authority to assign amounts to be used for specific purposes.
Unassigned fund balance. This fund balance is the residual classification for the General Fund.
When both restricted and non-restricted fund balances are available for use, it is the Foundation's
policy to use restricted fund balance first, then non-restricted fund balance. Furthermore,
committed fund balances are used first, followed by assigned amounts, then unassigned amounts
when expenditures are incurred for purposes for which amounts in any of those non-restricted
fund balance classifications can be used.
19
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE A—SUMMARY OF ACCOUNTING POLICIES -CONTINUED
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary
net position of the Utah Retirement Systems Pension Plan (URS) and additions to/deductions
from URS's fiduciary net position have been determined on the same basis as they are reported
by URS. For this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with the benefit terms. Investments are reported
at fair value.
Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect certain reported
amounts and disclosures. Accordingly, actual results could differ from those estimates.
NOTE B— DEPOSITS AND INVESTMENTS
The Foundation's deposits and investments are governed by the Utah Money Management Act
Annotated in Title 51, Chapter 7 — State Money Management Act (Act) and by the rules of the
State of Utah Money Management Council. Following are discussions of risks related to is cash
management activities.
Custodial Credit Risk— Deposits
The custodial credit risk for deposits is the risk that in the event of a bank failure, the Foundation's
deposits may not be recovered. The Money Management Act requires deposits be in a qualified
depository. The Act defines a qualified depository as any financial institution whose deposits are
insured by an agency of federal government and which has been certified by the State
Commissioner of Financial Institutions as meeting the requirements of the Act and adhering to the
rules of the Utah Money Management Council.
The deposits in the bank in excess of the insured amount are uninsured and uncollateralized.
Deposits are not collateralized nor are they required to be by state statute. The deposits for the
Foundation at June 30, 2025 were $1,001,877, approximately $774,000 of which was exposed to
custodial credit risk as uninsured and uncollateralized.
Investments
The Act defines the types of securities authorized as appropriate investments and the conditions
for making investment transactions. Investment transactions may be conducted only through
qualified depositories, certified dealers, or directly with issuers of investment securities.
The Act authorizes investments in both negotiable and nonnegotiable deposits of qualified
depositories and permitted negotiable depositories; repurchase and reverse repurchase
agreements; commercial paper that is classified as "first tier" by two nationally recognized
statistical rating organizations, one of which must be Moody's Investors Services or Standard &
Poor's; bankers' acceptances; obligations of the United States Treasury including bills, notes, and
bonds; obligations, other than mortgage derivative products, issued by U.S. government
sponsored enterprises (U.S. Agencies) such as the Federal Home Loan Bank System, Federal
Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie
Mae), and Student Loan Marketing Association (Sallie Mae); bonds, notes, and other evidence of
20
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE B— DEPOSITS AND INVESTMENTS—CONTINUED
indebtedness of political subdivisions of the State; fixed rate corporate obligations and variable
rate securities rate "A" or higher, or the equivalent of "A" or higher, by two nationally recognized
statistical rating organizations; and shares or certificates in a money market mutual fund as
defined in the Act.
The Foundation's investments at December 31, 2025 are presented below:
Investment Maturity in Years
Fair Less More
Investment Type Value Than 1 1 -5 6- 10 Than 10
Utah Public Treasurer's
Investment Fund $ 1,032,669 $ 1,032,669 $ - $ - $ -
Interest Rate Risk- Investments
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. The Foundation manages its exposure to declines in fair value by investing mainly in
the PTIF and by adhering to the Act. The Act requires that the remaining term to maturity of the
investment may not exceed the period of availability of the funds to be invested.
Credit Risk of Debt Securities
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The Foundation follows the Act as previously discussed as its policy for reducing
exposure to investment credit risk. The Foundation's investments are unrated.
Quality Ratings
Fair
Investment Type Value AAA AA A Unrated
Utah Public Treasurer's
Investment Fund $ 1,032,669 $ - $ - $ - $ 1,032,669
Custodial Credit Risk— Investments
Custodial credit risk for investments is the risk that, in the event of a failure of the counter party,
the Foundation will not be able to recover the value of the investment or collateral securities that
are in the possession of an outside party.
All of the Foundation's investments at December 31, 2025 were with the Utah Public Treasurer's
Investment Fund and therefore are not categorized as to custodial credit risk. Additional
information regarding the Utah Public Treasurer's Investment Fund is available at Note C.
21
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE B— DEPOSITS AND INVESTMENTS—CONTINUED
Concentration of Credit Risk—Investments
Concentration of credit risk is the risk of a loss attributed to the magnitude of a government's
investment in a single issuer.
The Foundation's policy for reducing this risk of loss is to comply with the Rules of the Council.
Rule 17 of the Council limits investments in a single issuer of commercial paper and corporate
obligations to between 5 and 10 percent depending upon the total dollar amount held in the
portfolio. The Council limitations do not apply to securities issued by the U.S. government and its
agencies.
All of the Foundation's investments at June 30, 2025 were with the Utah Public Treasurer's
Investment Fund and therefore are not categorized as to concentration of credit risk. Additional
information regarding the Utah Public Treasurer's Investment Fund is available at Note C.
NOTE C— EXTERNAL INVESTMENT POOL
The PTIF is not registered with the SEC as an investment company. The PTIF is authorized and
regulated by the Money Management Act, Chapter 51-7, Utah Code Annotated, 1953, as
amended. The Act establishes the Money Management Council which oversees the activities of
the State Treasurer and the PTIF. The Act details the investments that are authorized which are
high-grade securities and, therefore, there is very little credit risk except in the most unusual and
unforeseen circumstances. Deposits in the PTIF are not insured or otherwise guaranteed by the
State of Utah and participants share proportionally in any realized gains or losses on investments.
The PTIF allocates income and issues statements on a monthly basis. The PTIF operates and
reports to participants on an amortized cost basis. The participants' balance is their investment
deposited in the PTIF plus their share of income, gains and losses, net of administration fees,
which are allocated to each participant on the ratio of each participant's share to the total funds in
the PTIF.
Twice a year, at June 30 and December 31, the investments are valued at fair value to enable
participants to adjust their investments in this pool at fair value. The Bank of New York and the
State of Utah separately determine each security's fair value in accordance with GASB 31 (i.e. for
almost all pool investments the quoted market price) and then compare those values to arrive at
an agreed upon fair value of the securities.
As of June 30, 2025, the Foundation had $1,032,669 invested in the PTIF which approximates
the fair value of the investment. The table below shows statistical information about the
investment pool:
Investment
Investment Type Percentage
Corporate bonds and notes 4.14%
U.S.Treasury bills 20.66%
U.S. Government agencies 67.67%
Money market agreements 4.88%
Commercial paper and CDs 2.65%
100.00%
22
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE D— RESTRICTED ASSETS
The Foundation's restricted assets consist of the following:
Restricted cash and cash equivalents
Unexpended grants and transfers from Salt Lake
City for use in the Wake the Great Salt
Lake program $ 757,089
Grants receivable restricted for use in the
Wake the Great Salt Lake program 50,000
Total restricted assets $ 807,089
NOTE E—CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025 was as follows:
Balance Balance
July 1, 2024 Increases Decreases June 30, 2025
Capital assets:
Buildings and improvements $ 347,774 $ - $ - $ 347,774
Event equipment 6,529 - - 6,529
Office furniture
and equipment 16,104 - - 16,104
Capital assets at
historical cost 370,407 - - 370,407
Less accumulated
depreciation for:
Buildings and improvements 345,912 - - 345,912
Event equipment 6,397 - - 6,397
Office furniture 14,907 96 - 15,003
Total accumulated
depreciation 367,216 96 - 367,312
Total capital assets, net $ 3,191 $ (96) $ - $ 3,095
23
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE F—LONG-TERM OBLIGATIONS
The following is a summary of changes in long-term obligations for the year ended June 30, 2025:
Balance Balance Amounts
July 1, June 30, Due Within
2024 Additions Deletions 2025 One Year
Compensated absences $ 96,662 $ 53,912 $ 82,163 $ 68,411 $ 15,904
Net pension liability 69,668 140,649 38,317 172,000 -
$ 166,330 $194,561 $ 120,480 $ 240,411 $ 15,904
NOTE G— FUND BALANCE
Fund balance is presented in compliance with the requirements of GAAP. The details of the fund
balance categories as of June 30, 2025 is presented below:
Restricted
Wake the Great Salt Lake program $ 719,339
Committed
Bloomberg Challenge Grant Fund 138,483
Unassigned 1,051,760
Total Fund Balance $ 1,909,582
NOTE H —OPERATING TRANSFERS
During the year, the Foundation received operating transfers from Salt Lake City Corporation as
follows:
Program grants for the following:
City Arts Grants program $ 500,000
Public Programs and Operations 487,500
Facility Management 12,500
Wake the Great Salt Lake program 921,375
(as a Sub-Grantee of the City's grant
with the Bloomberg Family Foundation)
Foundation expenditures paid by the City
Salaries and employee benefits 1,194,763
Miscellaneous expenditures 42,566
$ 3,158,704
24
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE I - RETIREMENT PLANS
The Foundation personnel are employees of Salt Lake City Corporation and as such, participate
in the retirement plans offered to all City employees. The following summarizes information
regarding the retirement plans applicable only to the City employees that make up the
Foundation's personnel. Funding of the retirement plans is provided by Salt Lake City and, along
with other personnel-related expenditures, is included in the transfers in from Salt Lake City
Corporation.
General Information about the Pension Plan
Plan description: Eligible plan participants are provided with pensions through the Utah
Retirement Systems. The Utah Retirement Systems are comprised of the following pension trust
funds:
• Public Employees Noncontributory Retirement System (Noncontributory System) is a
multiple employer, cost sharing, public employees, retirement system.
• Tier 2 Public Employees Contributory Retirement System (Tier 2 Public Employees
System) is a multiple employer, cost sharing, public employees, retirement system.
The Tier 2 Public Employees System became effective July 1, 2011. All eligible employees
beginning on or after July 1, 2011, who have no previous service credit with any of the Utah
Retirement Systems, are members of the Tier 2 Retirement System.
The Utah Retirement Systems (Systems) are established and governed by the respective
sections of Title 49 of the Utah Code Annotated 1953, as amended. The Systems' defined benefit
plans are amended statutorily by the State Legislature. The Utah State Retirement Office Act in
Title 49 provides for the administration of the Systems under the direction of the Board, whose
members are appointed by the Governor. The Systems are fiduciary funds defined as pension
(and other employee benefit) trust funds. URS is a component unit of the State of Utah. Title 49
of the Utah Code grants the authority to establish and amend the benefit terms.
URS issues a publicly available financial report that can be obtained by writing Utah Retirement
Systems, 560 E. 200 S, Salt Lake City, Utah 84102 or visiting the website: www.urs.org.
25
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE I - RETIREMENT PLANS—CONTINUED
Benefits provided: URS provides retirement, disability, and death benefits. Retirement benefits
are as follows:
Summary of Benefits by System
Final Years of service required
Average and/or age eligible Benefit percent per
System Salary for benefit year of service COLA"*
Noncontributory system Highest 3 years 30 years any age 2.0%per year all years Up to 4%
25 years any age"
20 years age 60`
10 years age 62'
4 years age 65
Tier 2 Public Employees Highest 5 years 35 years any age 1.5%per year all years Up to 2.5%
System 20 years any age 60'
10 years age 62'
4 years age 65
actuarial reductions are applied
"All post-retirement cost-of-living adjustments are non-compounding and are based on the original benefit except for Judges,
which is a compounding benefit. The cost-of-living adjustments are also limited to the actual Consumer Price Index(CPI),
increase for the year,although unused CPI increases not met may be carried forward to subsequent years.
Contributions: As a condition of participation in the Systems, employers and/or employees are
required to contribute certain percentages of salary and wages as authorized by statute and
specified by the Utah State Retirement Board. Contributions are actuarially determined as an
amount that, when combined with employee contributions (where applicable) is expected to
finance the costs of benefits earned by employees during the year, with an additional amount to
finance any unfunded actuarial accrued liability.
26
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE I - RETIREMENT PLANS—CONTINUED
Contribution rates are as follows:
Paid by Employer Employer
Employee Employer Contribution Rate for
Paid for Employee Rates 401(k)Plan
Contributory System
111 -Local Governmental Division Tier 2 0.70% N/A 16.95% 10.00%
Noncontributory System
15-Local Governmental Division Tier 1 N/A N/A 16.97% 10.00%
For the year ended June 30, 2025, the employer and employee contributions to the Systems
were as follows:
Employer Employee
System Contributions Contributions
Noncontributory System $ 57,515 N/A
Tier 2 Public Employees System 54,307 N/A
$ 111,822 $ -
Contributions reported are the URS Board approved required contributions by the System.
Contributions in the Tier 2 Systems are used to finance the unfunded liabilities in the Tier 1
Systems.
Pension Assets, Liabilities, Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2025, the Foundation reported a net pension liability of$172,000 and no net pension
asset.
Net Net
Proportionate Pension Pension
Share Asset Liability
Noncontributory system 0.04367% $ $ 138,490
Tier 2 Public Employees System 0.01123% 33,510
Total Net Pension Asset/Liability $ $ 172,000
The net pension liability was measured as of December 31, 2024, and the total pension liability
used to calculate the net pension asset and liability was determined by an actuarial valuation as
of January 1, 2024 and rolled-forward using generally accepted actuarial procedures. The
proportion of the net pension asset and liability is equal to the ratio of the employer's actual
historical contributions to the Systems during the plan year over the total of all employer
contributions to the System during the plan year.
For the year ended June 30, 2025, the Foundation recognized pension expense of$34,016.
27
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE I - RETIREMENT PLANS—CONTINUED
At June 30, 2025, the Foundation reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual experience $ 97,007 $ 231
Changes in assumptions 22,647 3
Net difference between projected and actual earnings
on pension plan investments 43,857 -
Changes in proportion and differences between contributions
and proportionate share of contributions 5,032 1,533
Contributions subsequent to the measurement date 55,928 -
Total $ 224,471 $ 1,767
$55,928 was reported as deferred outflows of resources related to pensions results from
contributions made by the Foundation prior to its fiscal year end, but subsequent to the
measurement date of December 31, 2024.
These contributions will be recognized as a reduction of the net pension liability in the upcoming
fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Deferred
Outflows
(Inflows)
of Resources
Year Ended June 30,
2026 $ 72,840
2027 96,041
2028 (18,791)
2029 (956)
2030 6,896
Thereafter 10,746
28
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE I - RETIREMENT PLANS—CONTINUED
Actuarial assumptions: The total pension liability in the December 31, 2024 actuarial valuation
was determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.50 percent
Salary increases 3.50-9.5 percent, average, including inflation
Investment rate of return 6.85 percent, net of pension plan investment
expense, including inflation
Mortality rates were developed from actual experience study dated January 1, 2023. The retired
mortality tables are developed using URS retiree experience and are based upon gender,
occupation, and age as appropriate with projected improvement using the ultimate rates from the
MP-2020 improvement scale using a base year of 2020. The mortality assumption for active
members is the PUB-2010 Employees Mortality Table for public employees, teachers, and public
safety members respectively.
The actuarial assumptions used in the January 1, 2023 valuation were based on the results of an
actuarial experience study for the period ending December 31, 2022.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class and is applied consistently to each defined benefit pension plan. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset
class are summarized in the following table:
Expected Return Arithmetic Basis
Long-term
Expected
Real Portfolio
Target Return Real
Asset Arithmetic Rate of
Allocation Basis Return
Asset class
Equity securities 35% 7.01% 2.45%
Debt securities 20% 2.54% 0.51%
Real assets 18% 5.45% 0.98%
Private equity 12% 10.05% 1.21%
Absolute return 15% 4.36% 0.65%
Cash and cash equivalents - 0.49% 0.00%
Totals 100% 5.80%
Inflation 2.50%
Expected arithmetic nominal return 8.30%
29
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE I — RETIREMENT PLANS—CONTINUED
The 6.85% assumed investment rate of return is comprised of an inflation rate of 2.50%, a real
return of 4.35%that is net of investment expense.
Discount rate: The discount rate used to measure the total pension liability was 6.85%. The
projection of cash flows used to determine the discount rate assumed that employee contributions
will be made at the current contribution rate and that contributions from all participating employers
will be made at contractually required rates that are actuarially determined and certified by the
URS Board. Based on those assumptions, the pension plan's fiduciary net position was projected
to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability. The
discount rate does not use the Municipal Bond Index Rate.
Sensitivity of the proportionate share of the net pension asset and liability to changes in the
discount rate: The following presents the proportionate share of the net pension liability calculated
using the discount rate of 6.85%, as well as what the proportionate share of the net pension
liability(asset)would be if it were calculated using a discount rate that is 1-percentage-point lower
(5.85%)or 1-percentage-point higher(7.85%)than the current rate:
1% Discount 1%
Decrease Rate Increase
(5.85%) 6.85% (7.85%)
Proportionate share of
net pension (asset)/liability
Noncontributory system $ 585,701 $ 138,490 $ (236,574)
Tier 2 Public Employees System 100,084 33,510 (18,279)
$ 685,785 $ 172,000 $ (254,853)
Pension plan fiduciary net position: Detailed information about the pension plan's fiduciary net
position is available in the separately issued URS financial report.
30
Salt Lake Arts Council Foundation
Notes to Financial Statements
June 30, 2025
NOTE J - DEFERRED COMPENSATION PLANS
The Foundation also offers participation in Defined Contribution Savings Plans which are
administered by the Utah Retirement Systems and are generally supplemental plans to the basic
retirement benefits of the Utah Retirement Systems, but may also be used as a primary
retirement plan. These plans are voluntary tax-advantaged retirement savings programs
authorized under sections 401(k), 457(b) and 408 of the Internal Revenue Code. Detailed
information regarding plan provisions is available in the separately issued URS financial report.
The Foundation participates in the following Defined Contribution Savings Plans:
• 401(k) Plan
• 457(b) Plan
• Roth IRA Plan
• Traditional IRA Plan
Employee and employer contributions to the Utah Retirement Defined Contribution Savings Plans
for the year ended June 30, 2024 were as follows:
401(k) Plan
Employer Contributions $ 25,714
Employee Contributions 27,474
457 Plan
Employer Contributions -
Employee Contributions 1,040
Roth IRA Plan
Employer Contributions -
Employee Contributions 1,706
NOTE K- RISK MANAGEMENT
The Foundation is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
Foundation carries commercial liability insurance for general liability claims as well as for other
risks of loss. There were no decreases in coverage during 2025. Settlement amounts have not
exceeded insurance coverage for the current year or the three prior years.
Expenses and claims not covered by insurance are recognized when it is probable that a loss has
occurred, and the amount of the loss can be reasonably estimated. In determining claims, events
that might create claims, but for which none have been reported, are considered. There has
been no claims liability incurred or paid for the past two years.
31
REQUIRED SUPPLEMENTARY INFORMATION
Salt Lake Arts Council Foundation
Schedule of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual
General Fund
For the Fiscal Year Ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
Revenues
Grants and contributions $ 779,000 $ 714,343 $ 725,816 $ 11,473
Beverage sales 29,000 29,000 28,430 (570)
Ticket sales and fees 36,000 27,064 27,594 530
Vendor fees 13,200 11,900 11,900 -
Rental income 3,000 5,000 4,890 (110)
Gallery commissions 6,000 6,680 8,867 2,187
Interest on investments 30,000 28,500 36,257 7,757
Miscellaneous - 1,000 1,272 272
Total revenues 896,200 823,487 845,026 21,539
Expenditures
Current operations
Administration 452,929 433,015 371,527 61,488
City Arts Grants 637,768 643,188 625,885 17,303
Busker Fest 86,444 86,476 84,586 1,890
Twilight Concert Series 190,184 199,674 194,321 5,353
Living Traditions Festival 765,163 773,363 757,576 15,787
Living Traditions Events 50,705 59,881 56,433 3,448
Visual Arts Exhibitions 168,849 167,752 151,574 16,178
Wake the Great Salt Lake 849,322 915,017 377,813 537,204
Public Art 266,362 266,362 235,740 30,622
Other program services 267,256 262,480 230,575 31,905
Total expenditures 3,734,982 3,807,208 3,086,030 721,178
Deficiency of revenues
over expenditures (2,838,782) (2,983,721) (2,241,004) 742,717
Other financing sources
Operating transfers from Salt Lake
City Corporation 2,841,164 2,999,627 3,158,704 159,077
Total other financing sources 2,841,164 2,999,627 3,158,704 159,077
Net change in fund balance 2,382 15,906 917,700 901,794
Fund balance at beginning of year 991,882 991,882 991,882 -
Fund balance at end of year $ 994,264 $ 1,007,788 $ 1,909,582 $ 901,794
33
Salt Lake Arts Council Foundation
Schedule of the Proportionate Share of the Net Pension
Liability - Utah Retirement Systems
For the Fiscal Year Ended June 30, 2025
With a Measurement Date of December 31, 2024
Last 10 Fiscal Years*
Noncontributory System for the Fiscal Years Ended June 30,
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Proportion of the net pension liability(asset) 0.04367% 0.0016900% 0.0016710% 0.0017070% 0.0025890% 0.0026090% 0.0026005% 0.0020285% 0.0205614% 0.0262664%
Proportionate share of the net pension liability
(asset) $ 138,490 $ 44,873 $ 33,942 $ (97,761) $ 13,278 $ 98,328 $ 90,095 $ 90,095 $ 134,585 $ 148,022
Covered employee payroll $ 341,557 $ 134,300 $ 131,135 $ 132,389 $ 201,771 $ 215,926 $ 209,312 $ 164,919 $ 171,751 $ 214,764
Proportionate share of the net pension liability
(asset)as a percentage of its covered
employee payroll 40.5% 33.4% 25.9% -73.8% 6.6% 45.5% 43.0% 54.6% 78.4% 68.9%
Plan fiduciary net position as a percentage of
the total pension liability 96.0% 96.9% 97.5% 108.7% 99.2% 87.0% 87.0% 91.9% 87.3% 87.8%
Tier 2 Public Employees System for the Fiscal Years ended June 30,
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Proportion of the net pension liability(asset) 0.01123% 0.0104800% 0.0100700% 0.0093900% 0.0079700% 0.0079700% 0.0000000% 0.0000000% 0.0000000% 0.0000000%
Proportionate share of the net pension liability
(asset) $ 33,510 $ 24,795 $ 15,782 $ (3,976) $ 1,138 $ 1,805 $ - $ - $ - $ -
Covered employee payroll $ 332,838 $ 270,896 $ 219,520 $ 174,369 $ 132,348 $ 67,303 $ 107,254 $ 135,112 $ 131,927 $ 134,413
Proportionate share of the net pension liability
(asset)as a percentage of its covered
employee payroll 10.07% 9.15% 7.19% -2.28% 0.86% 2.68% 0.00% 0.00% 0.00% 0.00%
Plan fiduciary net position as a percentage of
the total pension liability 87.4% 89.6% 92.3% 90.8% 98.3% 90.8% 90.8% 97.4% 95.1% 100.2%
W
Salt Lake Arts Council Foundation
Schedule of Contributions - Utah Retirement Systems
For the Fiscal Year Ended June 30, 2025
With a Measurement Date of December 31, 2024
Last 10 Fiscal Years
Contribution
Contributions in as a
relation to the percentage
As of fiscal Actuarial contractually Contribution Covered of covered
year ended Determined required deficiency employee employee
June 30, Contributions contribution (excess) payroll payroll*
Noncontributory System 2016 $ 39,408 $ 39,408 $ - $ 214,764 18.35%
2017 30,849 30,849 - 171,751 17.96%
2018 31,120 31,120 - 164,919 18.87%
2019 38,088 38,088 - 209,312 18.20%
2020 37,706 37,706 - 215,926 17.46%
2021 37,030 37,030 - 201,771 18.35%
2022 24,087 24,087 - 132,389 18.19%
2023 23,538 23,538 - 131,135 17.95%
2024 23,945 23,945 - 134,300 17.83%
2025 57,515 57,515 - 341,557 16.84%
Tier 2 Public Employees System** 2016 20,038 20,038 - 134,413 14.91%
2017 20,868 20,868 - 131,927 15.82%
2018 23,269 23,269 - 135,112 17.22%
2019 18,566 18,566 - 107,254 17.31%
2020 19,232 19,232 - 67,303 28.58%
2021 20,911 20,911 - 132,348 15.80%
2022 31,276 31,276 - 174,369 17.94%
2023 39,342 39,342 - 219,520 17.92%
2024 47,376 47,376 - 270,896 17.49%
2025 54,307 54,307 - 332,838 16.32%
* Contributions as a percentage of covered-employee payroll may be different than
the URS Board certified rate due to rounding or other administrative issues.
** Contributions in Tier 2 include an amortization rate to help fund the unfunded liabilities in Tier
Cn 1 systems. Tier 2 systems were created effective July 1, 2011.
Salt Lake Arts Council Foundation
Notes to Required Supplementary Information
For the Fiscal Year Ended June 30, 2025
With a Measurement Date of December 31, 2024
Changes of Assumptions
There were no changes in the actuarial assumptions or methods since the prior actuarial
valuation.
36
AMENDED AND RESTATED
BYLAWS
OF
SALT LAKE ARTS COUNCIL FOUNDATION
A Utah Nonprofit Corporation
ARTICLE 1
NAME AND OFFICES
Section 1 Name. The name of this nonprofit organization is Salt Lake Arts Council
Foundation(the"Foundation").
Section 2 Principal Office. The principal place of the Foundation is 54 Finch Lane, Salt
Lake City, Utah 84102. The Salt Lake City Arts Council Board (the "Arts Council Board") may
from time to time change the principal office of the Foundation in the State of Utah.
Section 3 Other Offices. The Arts Council Board may at any time establish branch or
subordinate offices at those places where the Foundation is qualified to conduct its activities.
ARTICLE 2
ARTS COUNCIL BOARD
Section 1 General Power. The Arts Council Board will manage the property and business
affairs of the Foundation. The Salt Lake City Arts Council Board was established by City
ordinance,passed by the board of Commissioners August 24, 1976. The Salt Lake Arts Council
Foundation, a nonprofit corporation, was established by Articles of Incorporation approved and
filed with the Division of Consumer Protection on November 28, 1979. The Salt Lake Arts
Council Foundation shall be organized and governed in accordance with the provisions of the
Articles of Incorporation of the Foundation, these bylaws of the Arts Council Board, and all
applicable law. The trustees shall be members of the Arts Council Board. The officers of the
corporation shall be the officers of the Council.
When applying the bylaws to the Foundation, the following substitutions of terms may be made
as appropriate to the particular context in which they occur.
Council Terms Foundation Terms
Arts Council/Council Arts Council Foundation/Foundation Corporation
Arts Council Board Board of Trustees/Board
Council Member Trustee
1
Council Member/Membership Board of Trustees
Section 2 Objectives and Purpose.
The primary Objectives of the Salt Lake City Arts Council, as stated in the enabling ordinance,
shall include, but not be limited to, the following:
(a) To promote and encourage public artistic programs;
(b) To further the development and public awareness of and interest in the
fine and performing arts;
(c) To provide for the assessment of the artistic needs of the community;
(d) To provide the means for the development of a comprehensive city-wide
plan to encourage and strengthen artistic and cultural resources;
(e) To develop programs in the arts which shall seek to introduce city
residents who have previously not participated in such activities and
encourage existing organizations to develop new ways of reaching the
community;
(f) To provide a forum of communication between representatives of the
community and the city government; and
(g) To act as an advisory body to the city in all matters pertaining to the arts
and the cultural development of the city.
The Foundation's purpose is organized and formed as a nonprofit corporation exclusively for
charitable, educational or scientific purposes. The Foundation may engage in any and all lawful
activities for such charitable, educational or scientific purposes as from time to time determined
by the Board of Trustees and as allowed by the Utah Revised Nonprofit Corporation Act as
presently enacted of hereafter amended and which are not proscribed by Section 501(c) (3) of the
Internal Revenue Code of 1954 (or corresponding provisions of any future United States internal
revenue law).
Section 3 Number of Members. The number of authorized members of the Arts Council
Board shall consist of no less than fifteen(15) or more than twenty(20) members unless
changed by an amendment to Chapter 2.32 of the Salt Lake City ordinance.
Section 4 Selection and Term of Office. All members of the Arts Council Board are
appointed by the Mayor of Salt Lake City, Utah (the "Mayor")with the approval of the City
Council, in accordance with Chapter 2.32 of the Salt Lake City ordinance. When vacancies on
the Arts Council Board occur, the Council Chair, at a meeting of the Council, shall request
2
nominations to fill the vacancies. The Nominating & Governance Committee shall select, in
consultation with the Executive Director, from among those nominations or others as may be
suggested to the Executive Committee formally or informally and shall present that list to the
Council for approval. Upon approval by the Council the list of nominees shall be forwarded by
the Executive Director to the Mayor for consideration. In making such appointments, the Mayor
may request and consider recommendations submitted by the Arts Council Board's Executive
Director or designee. The Mayor may also directly appoint members in accordance with chapter
2.07 of the Salt Lake City ordinance. All appointments shall be made for a three (3)year term.
Appointments shall be made with the goal that approximately one-third of the Arts Council
Board membership will expire each year. Members of the Arts Council Board shall be limited to
two consecutive full terms or six(6)years, whichever is greater.
Section 5 Vacancies and Unexpired Terms_Any vacancy occurring on the Board of
Directors, whether due to resignation, removal, incapacity, or other reason, may be filled by a
recommendation and approval from the Mayor and City Council. A Director elected to fill a
vacancy shall serve only for the remainder of the unexpired term of their predecessor.
Completion of an unexpired term shall not count as a full term for the purpose of term limits.
Section 6 Resignation. Subject to the provisions of Utah law, any member of the Arts
Council Board may resign by giving written notice through registered, certified, or electronic
mail, to the Executive Director or to any member of the Executive Committee. The resignation
shall be effective when notice is received by the Executive Director or Executive Committee
unless the notice specifies that the resignation will be effective at a later time. If the resignation
is effective at a later time, a successor may be elected before that date, but they shall not take
office until the resignation becomes effective.
Section 7 Removal. A member of the Arts Council Board may be removed for cause by
two-thirds (2/3)vote of all members then in office. The action shall be taken at a regular meeting
of the Arts Council Board or at a special meeting of the Arts Council Board, which may include
a closed session, called for that purpose. The proposed removal must be announced in the notice
and sent to the members at least seven(7) days prior to the meeting. Any member of the Council
who misses two of the meetings of the Council without advance notice in any consecutive 12
month period may be removed by the Council by resolution of the Council, but not without full
opportunity to explain the reasons for such absences.
Section 8 Compensation. No stated salaries shall be paid to the members of the Arts
Council Board for their services. A fixed sum, established by resolution of the Executive
Committee or Mayormay be allowed for attendance at each annual, regular, or special meeting of
the Arts Council Board and the Foundation shall pay said fixed sum whether or not a meeting is
adjourned because the meeting lacks a quorum. Nothing in this Section shall be construed to
preclude any member from serving the Foundation in any other capacity and receiving
compensation for their service in that capacity.
Section 9 Salt Lake City Ordinance. All members of the Arts Council Board are subject to
Chapters 2.07 and 2.32 of the Salt Lake City ordinance unless otherwise specified herein.
3
Section 10 Qualifications. Any adult who is a resident of Salt Lake City shall be eligible for
membership on the Council. Members should represent diverse geographic areas of the City. The
Council shall include but not be limited to representatives of the three broad categories: a.
community organizations; b. the arts, which shall include emerging and professional
organizations, artists, and arts administrators; c. the community at large. Membership should
include cultural equity in its values,policies, and practices that ensure that all people, including
but not limited to those who have been historically under-represented based on race/ethnicity,
age, disability, sexual orientation, gender identity, socioeconomic status, geography, citizenship
status, or religion are represented. Equal opportunity principles should be recognized in
appointments.
ARTICLE 3
MEETINGS
Section 1 Place of Meeting. Meetings of the Board of Directors, or any committee thereof,
may be held in person, by means of conference telephone, video conferencing, or other
electronic communications technology that allows all participants to hear and be heard by each
other at the same time. Participation by such means shall constitute presence in person at the
meeting. According to the Open Public Meetings Act, there must be a published anchor location
which may be the Art Barn located at 54 Finch Lane Salt Lake City, 84102 or any other place
selected by and given due public notice.
Section 2 Annual Meeting. The Arts Council Board shall hold an annual meeting at such
time and place as designated by the Executive Director or as established by the Arts Council
Board for the purpose of electing members of the Arts Council Board for the ensuing year and to
transact other business that may properly be brought before the Arts Council Board.
Section 3 Regular Meetings. The Arts Council Board shall hold regular meetings as
determined by the Executive Director or by the majority resolution of the Arts Council Board.
The resolution may authorize the Executive Director to fix the specific date and place of each
regular meeting, in which case notice of the meeting date and place must be given in the manner
provided in these bylaws.
Section 4 Special Meetings. Special meetings of the Arts Council Board may be called by
the Arts Council Board Chair or by the Executive Director at the direction of the Executive
Committee or as otherwise provided by law. The Arts Council Board may only transact the
specific corporate business announced in the notice for the special meeting.
Section 5 Notice of Meetings. Except as may be otherwise specifically provided in these
bylaws, Arts Council staff shall give at least one day (24 hours)written notice of each regular or
seven(7) day notice of any special meeting to all members of the Arts Council Board at their
post office or electronic mail address as shown by the Foundation's records. Any person entitled
to notice of a meeting may waive notice in writing either before or after the time of the meeting.
Section 6 Quorum. The presence of a majority of the members of the Arts Council Board
then in office shall constitute a quorum to transact business at all meetings of the Arts Council
Board. If, however, at any meeting less than a quorum is present, a majority of those present may
4
adjourn the meeting to a different place and time until a quorum can be met. The body may
continue a meeting, but cannot take action without a quorum.
Section 7 Required Vote. Except as may be provided otherwise in these bylaws or the
articles of incorporation, the action of a majority of the members of the Arts Council Board at a
meeting at which a quorum is present shall be the action of the Arts Council Board. Each
member of the Council shall be entitled to vote on any issue presented to the Council when
present by permissible means; provided however, there shall be no proxy votes allowed. All
votes, for, against, or recusals shall be recorded in the meeting minutes.
Section 8 Compliance with Open and Public Meetings Act. Every meeting shall conform
with the Open and Public Meetings Act, as set forth in chapter 4, title 52, Utah Code or its
successor, including, but not limited to, the requirements for public notice, open meetings, closed
meetings, meeting minutes, chance or social meetings, electronic meetings, and electronic
message transmissions.
For the purposes of determining when a quorum is present during an electronic meeting, a
member attending the meeting remotely is considered present when they are otherwise connected
to the meeting via electronic means and makes their presence known.
ARTICLE 4
OFFICERS
Section 1 Election, Tenure, and Compensation.
(a) The officers of the Foundation are the Chair, Vice Chair, Secretary, and Treasurer.
Officers may be re-elected one or more times successively. There shall be no automatic
succession of the Vice-Chair to Chair. The term of the Chair of the Arts Council Board is two
years. The term of the Vice-Chair, Secretary and the Treasurer shall be one year.
(b) The Executive Director shall be appointed by the Mayor. The Executive Director is the
principal Executive officer of the Foundation and has general charge and control over all of the
business affairs and properties of the Foundation. The Executive Director may sign and execute
all authorized bonds, contracts, or other obligations in the name of the Foundation. Unless
otherwise specifically limited by the articles of incorporation and these bylaws, the Executive
Director shall have all powers and authority otherwise permitted to the president of a nonprofit
corporation under Utah law. The Executive Director is an ex officio member of all the standing
committees and shall perform any other duties assigned to them from time to time by the Arts
Council Board.
(c) The Arts Council Board Nominating & Governance Committee and Executive Director
shall present recommended nominees for Officers, and the Board shall elect the officers at each
annual meeting of the Arts Council Board. The Chair may be appointed by the Mayor. If no
election is held at the annual meeting, the election shall be held as soon as is conveniently
possible after the scheduled meeting date. Each officer shall serve until their successor has been
elected or until resignation, or removal. If there are no nominations from the floor, the vote can
5
be taken at the May meeting. Election shall be by written ballot(electronic means accepted) only
if there are additional nominations from the floor. If there are nominations from the floor,
following the May Council meeting, the Executive Director shall mail to all Council members a
ballot listing all nominees for all positions. Ballots, in order to be counted, must be
mailed/emailed prior to the next convening of the Council. Proxy votes shall not be allowed.
Results of the balloting shall be announced in the subsequent meeting. Officers and the elected
Executive Committee member shall assume office in July.
(d) Any two or more of the offices, except those of Chair and Secretary, may be held by the
same person. No officer, however, may execute, acknowledge, or verify any instrument in more
than one capacity if the instrument is required by law or by these bylaws to be executed,
acknowledged, or verified by any two or more officers.
(e) If any office (other than an office required by law) is not filled by the Arts Council
Board, or, once filled, subsequently becomes vacant, then the office and all references to the
office in these bylaws shall be treated as inoperative until the office is filled as provided in these
bylaws.
(f) All corporate officers and agents are subject to removal at any time by the majority vote
of the Arts Council Board, except employees whose term is defined by written contract between
the employee and Salt Lake City Corporation in which case the removal shall be governed by
such employment contract.
Section 2 Powers and Duties of the Chair. The Chair shall preside at the meetings of the
Council and of the Executive Committee and shall be a member ex officio with right to vote in
all committees. They shall also, at the annual meeting of the Council and at such other times as
they deem proper, communicate to the Council such matters and make such suggestions as may
in their opinion tend to promote the prosperity and welfare and increase the usefulness of the
Council, and shall perform such other duties and have such other powers as are necessarily
incident to the office of Chair or as may from time to time be directed by the Council. The Chair
shall perform any other duties assigned to they/them from time to time by the Arts Council
Board or by the Executive Director. In case of a designation, absence, or disability of the
Executive Director, the Deputy Director shall perform the duties of the Executive Director and
be subject to all restrictions and powers of the Executive Director.
Section 3 Power and Duties of the Vice Chair. In the case of the absence or incapacity of
the Chair or of their inability from any cause to act, the Vice-Chair shall perform the duties of the
office of Chair. The Vice-Chair shall perform such other duties and have such other powers as may
from time to time be as directed by the Council.
Section 4 Powers and Duties of the Secretary. The Secretary shall be responsible for
minutes, attendance, and votes of the board and perform all duties that may be assigned to them
from time to time by the Arts Council Board or the Executive Director.
Section 5 Powers and Duties of the Treasurer. The Treasurer shall keep an account of all
monies received and expended for the use of the Council and participate in a report at the annual
meeting. The financial information in their hands shall at all times be under the supervision of
6
the Executive Committee and subject to its inspection and control. The Treasurer shall perform
all duties that may be assigned to them from time to time by the Arts Council Board or the
Executive Director.
ARTICLE 5
COMMITTEES
Section 1 Committees of the Arts Council Board. The designation of committees and
delegation of authority to the committees will not operate to relieve the Arts Council Board or
any individual member of any responsibility imposed on the Arts Council Board or any
individual member by law.
a. Executive Committee. The Executive Committee shall be comprised of five (5)
members, including the four(4) elected Council Officers and one (1) additional at-large member.
Additionally, the Executive Director shall be a non-voting member of the Executive Committee.
The Executive Committee may carry out Arts Council Board business between regular Arts
Council Board meetings, with their action subject to ratification or rejection by the Arts Council
Board. A simple majority of voting members shall constitute a quorum for the transaction of
Executive Committee business. The Executive Committee may carry out Council Business
between regular Council meetings or in the absence of a quorum at a Council meeting with their
action subject to ratification at the next regular Council meeting or special meeting.
b. Grants Committee. The Grants Committee shall be appointed annually by the
Executive Committee and Executive Director and shall develop criteria for the review of
applications for funding and shall submit recommendation to the Council for approval or
modification. The grants committee shall consist of at least three (3) Council members. In
addition to the grants committee, all board members will be invited to review grants annually,
with a minimum of 9 Council reviewers annually. The responsibility of reviewing grants will be
in addition to any other committee assignment.
c. Nominating & Governance. The Nominating & Governance Committee shall consist
of two (2) or more members and shall be appointed annually by the Executive Committee and
Executive Director. The Nominating and Governance Committee shall be responsible for: (a)
identifying, cultivating, and recommending candidates for election to the Board of Directors and
for filling board vacancies; (b) overseeing board orientation in cooperation with professional
staff; (c) conducting periodic evaluations of the Board and its members. The Committee shall
perform such other duties as may be assigned by the Executive Committee or Executive
Director.
d. Other Committees. Additional standing or special committees shall be appointed as
required and dissolved by the Council Chair in consultation with the Executive Committee and
Executive Director. Any other committees shall designate one member of each such committee
as its Chair. The Chair of each committee must be a member of the Council.
e. Non-Council Member Participation. Each committee Chair may, by majority vote of
the Council, appoint committee members who are not Council Members.
7
Section 2 Term of Office. Each committee member shall serve a term of one (1)year and
may be reappointed for additional terms. The board member may serve on a committee until the
end of their term or until their successor is appointed unless the committee is terminated sooner
by the Arts Council Board or the member is removed or resigns from the committee.
Section 3 Chair. Unless otherwise provided in the resolution of the Arts Council Board
designating a committee, each committee shall appoint a chairperson by majority vote of the
committee.
Section 4 Vacancies. Vacancies in the membership of any committee may be filled by
appointments in the same manner as the original appointments were made. Vacancies shall be
filled without undue delay at a regular meeting of the Council or special meeting called for that
purpose. The Executive Committee shall provide a nominee for such vacancy, and nominations
from the floor shall also be accepted. All nominees under these circumstances shall have been
contacted and shall have stated their availability and willingness to serve prior to their being
placed in a nomination. Election shall be by a majority vote of a quorum of the Council in
attendance. In the case of the absence or the disability of the Treasurer, the Chair may appoint a
Treasurer pro tem.
Section 5 Quorum. Unless otherwise provided in the resolution of the Arts Council Board
designating a committee, a majority of committee members shall constitute a quorum to transact
business at all meetings of a committee. No committee should consist of a quorum of the entire
Council Board.
Section 6 Rules. Each committee may adopt rules for its own governance not inconsistent
with the articles of incorporation and these bylaws.
ARTICLE 6
LIABILITY AND INDEMNIFICATION
Section 1 Liability. No member of the Arts Council Board or officer of the Foundation
shall be personally liable for the payment of the Foundation's debts and liabilities except as such
member or officer may be liable by reason of their own conduct or acts. Relief from liability for
the Foundation's debts shall not, however, apply in any instance where that relief is inconsistent
with any provisions of the Internal Revenue Code applicable to organizations described in
Internal Revenue Code Section 501(c)(3).
Section 2 Indemnification. Subject to Section 1 of this Article, the Foundation shall
indemnify every member of the Arts Council Board, every officer, and their heirs, executors, and
administrators against expenses actually and reasonably incurred by such indemnitee, as well as
any amount paid upon judgment, in connection with any action, suit, or proceeding, civil or
criminal, to which such indemnitee may be made a party by reason of such member or officer
having been a member or officer of the Foundation. This indemnification is given because the
members and officers will be requested to act by the Foundation for the benefit of the
Foundation. This indemnification is exclusive of all other rights to which a member or officer
may be entitled. Indemnification shall not extend to any matter in which the board member is
found to have engaged in gross negligence, willful or intentional misconduct, bad-faith actions,
8
or conduct outside the scope of their authorized board duties, nor to any settlement entered into
without the approval of the Board.
ARTICLE 7
FINANCIAL MATTERS
Section 1 Delegation by Arts Council Board. Per the Financial Management Policies and
Procedures of the Foundation, the Arts Council Board may authorize any officer, employee, or
agent to enter into any contracts or execute and deliver any instruments in the name of the
Foundation. The authority granted by the Arts Council Board may be general or confined to
specific instances.
Section 2 Authority Over Certain Funds. If at any time the Foundation is a beneficiary of
a charitable lead trust, a charitable remainder trust, or other similar trust(a"Charitable Trust"),
and the Charitable Trust was established by a member of the Arts Council Board, an officer, or a
substantial contributor to the Foundation, the member, officer, or substantial contributor who
established the Charitable Trust is prohibited from acting on matters concerning funds coming to
the Foundation from the Charitable Trust. The member of the Arts Council Board who
establishes a Charitable Trust for the benefit of the Foundation may not be counted when
establishing a quorum to vote on matters relating to those funds, and the member shall be
prohibited from voting on any matters relating to the funds received or anticipated to be received
from the Charitable Trust, including voting on any disbursements or grants of such funds. Any
funds received from a Charitable Trust are to be segregated into a separate account in the
Foundation's books as provided in Section 8.07. For all purposes concerning any funds received
from a charitable trust described above, the term"substantial contributor"has the same meaning
as provided in Internal Revenue Code Section 507(d)(2)(A).
Section 3 Deposits. All Foundation funds will be deposited to the credit of the Foundation
at such banks, trust companies, or other depositories selected by the Arts Council Board. The
Arts Council Board may, however, authorize any officer, employee, or agent to select the banks,
trust companies, or other depositories into which the funds of the Foundation will be deposited.
Section 4 Checks and Drafts. All checks, drafts, and other orders for payments of money,
notes, or other evidences of indebtedness by the Foundation must be signed by the Executive
Director or employees designated or in accordance with the Financial Management Policies and
Procedures of the Salt Lake Arts Council Foundation.
Section 5 Loans. The Foundation is prohibited from making any loans or borrowing any
funds unless specifically authorized by a resolution of the Arts Council Board. The authority
granted by the Arts Council Board may be general or confined to specific instances. The
Foundation shall not make any loans to its members of the Arts Council Board or officers.
Section 6 Investments. The Foundation's funds may be invested in any investments
selected by the Arts Council Board or any investment manager appointed by the Arts Council
Board for that purpose. In making any investments, the Arts Council Board or investment
manager(as the case may be) should give due regard to balancing the need to preserve principal,
produce income and capital gains, and achieve long-term growth of the Foundation's assets.
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Section 7 Separate Account. The Foundation must segregate any funds received from a
Charitable Trust established by a member of the Arts Council Board, an officer, or a substantial
contributor to the Foundation into a separate account in the Foundation's books. The Foundation
shall administer the separate account in such a manner as to allow tracing of the funds into and
out of that account. The separate account shall be administered and distributed by a separate fund
committee, and the member of the Arts Council Board, the officer, or the substantial contributor
who established the Charitable Trust from which the Foundation received the funds may not
possess any power over such account or such separate fund committee.
Section 8 Annual Audit. The Executive Director in consultation with the Executive
Committee shall annually designate a firm of certified public accountants to conduct and audit of
the books of the Council and report its finding to the Council.
ARTICLE 8
MISCELLANEOUS PROVISIONS
Section 1 Fiscal Year. The fiscal year of the Foundation is July through June unless
otherwise determined by recommendation of the Executive Committee and a majority vote of the
Council.
Section 2 Singular and Plural and Gender. Unless the context requires otherwise, words
denoting the singular may be construed as the plural and words denoting the plural may be
construed as the singular. Words of one gender may be construed as denoting another gender as
is appropriate within the context. The word"or"when used in a list of more than two items may
function as both a conjunction and a disjunction, as the context requires or permits.
Section 3 Headings. The headings used in these bylaws are included solely for the
convenience and reference of the reader and have no significance in the interpretation or
construction of these bylaws.
Section 4 Waiver of Notices. Whenever any notice is required to be given under federal or
state law or under the articles of incorporation and these bylaws, a waiver of the notice in writing
signed by the person or person entitled to the notice, whether before or after the time stated in the
notice, shall be treated as the equivalent to the giving of the required notice.
Section 5 Reference to Laws. All general or specific references to the Internal Revenue
Code are to the Internal Revenue Code of 1986 as now in force or later amended, or the
corresponding provision of any future United States revenue law. Similarly, any general or
specific references to the laws of the state of Utah are to the laws of the state of Utah as now in
force or hereafter amended.
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ARTICLE 9
DISSOLUTION
UPON DISSOLUTION OF THE FOUNDATION, ALL FUNDS AND PROPERTY
REMAINING AFTER PAYING OR ADEQUATELY PROVIDING FOR THE DEBTS AND
OBLIGATIONS OF THE FOUNDATION SHALL BE DISTRIBUTED TO SUCH
ORGANIZATION OR ORGANIZATIONS ORGANIZED AND OPERATING
EXCLUSIVELY FOR EDUCATION, CHARITABLE, SCIENTIFIC, LITERARY, OR
RELIGIOUS PURPOSES AS SHALL AT THE TIME QUALIFY AS AN EXEMPT
ORGANIZATION OR ORGANIZATIONS UNDER SECTION 501(C) (3) OF THE
INTERNAL REVENUE CODE OF 1954 (OR THE CORRESPONDING PROVISIONS OF
ANY FUTURE UNITED STATES INTERNAL REVENUE LAW), AS THE BOARD OF
TRUSTEES SHALL THEN DETERMINE BY A MAJORITY VOTE.
ARTICLE 10
AMENDMENTS
The Arts Council Board may amend, alter, or repeal the bylaws or any specific provision of the
bylaws, and may from time to time make additional bylaws.
These Bylaw were officially adopted by the Arts Council Board on date:
Name:
Title: Executive Director
By:
Name:
Title: Arts Council Board Chair
By:
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