Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
3Activity
0 of .
Results for:
No results containing your search query
P. 1
News Release: Henson’s Legislative Testimony Contradicted Board Minutes

News Release: Henson’s Legislative Testimony Contradicted Board Minutes

Ratings: (0)|Views: 3,508|Likes:
Published by FluenceMedia
“Mr. Henson did not indicate to legislators that he and some association board members were beginning to have significant concerns about the association’s financial condition. For example, minutes from an association’s board meeting on February 19, 2009, indicate that Mr. Henson told board members that the association was projected to have a deficit in fiscal year 2009 between $1 million and $2 million, and the deficit for fiscal year 2010 was projected to be between $4 million to $5 million.”
“Mr. Henson did not indicate to legislators that he and some association board members were beginning to have significant concerns about the association’s financial condition. For example, minutes from an association’s board meeting on February 19, 2009, indicate that Mr. Henson told board members that the association was projected to have a deficit in fiscal year 2009 between $1 million and $2 million, and the deficit for fiscal year 2010 was projected to be between $4 million to $5 million.”

More info:

Published by: FluenceMedia on Jun 13, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

05/14/2014

pdf

text

original

 
 
The Musicians of the Minnesota Orchestra
FOR IMMEDIATE RELEASE CONTACT:
Blois OlsonFluence Media651-276-1678
LEGISLATIVE AUDITOR’S INVESTIGATION OF THE MINNESOTAORCHESTRA MANAGEMENT:
Henson’s Legislative TestimonyContradicted Board Minutes
State Arts Board to Conduct Review of Taxpayer-funded Grants Management Received During the Lockout 
Minneapolis –
 A special review requested by over 100 legislators of theMinnesota Orchestra management’s use of taxpayer funds, and legislativetestimony to secure $16 million in taxpayer’s dollars reveals that CEO MichaelHenson’s legislative testimony was in direct contradiction to the financial actionsof the board. Henson and the board chose a false public representation of thefinancial situation of the Orchestra that is in direct conflict with meeting minutes.The auditor’s conclusion states:“In his testimony to legislative committees in 2010, the president of theMinnesota Orchestral Association made brief and generally positiveremarks about the association’s financial condition, and legislators did notask for additional information. While there are indications that thepresident and some board members had significant concerns about theassociation’s financial condition
and continues:“Mr. Henson did not indicate to legislators that he and some associationboard members were beginning to have significant concerns about the
 
association’s financial condition. For example, minutes from anassociation’s board meeting on February 19, 2009, indicate that Mr.Henson told board members that the association was projected to have adeficit in fiscal year 2009 between $1 million and $2 million, and the deficitfor fiscal year 2010 was projected to be between $4 million to $5 million.”Henson’s legislative testimony in 2010 to the Minnesota House stated that theOrchestra had reported three balanced budgets, while the board actions andfinancial reporting has showed large endowment draws to represent a balancedbudget to not jeopardize Management’s board request and securing of public taxdollars for a new lobby on Orchestra Hall.Here is a the direct quote from the Henson testimony from January 2010:“On the financial front, we have announced balanced budgets over thelast three consecutive years, and we are facing the current economicdownturn with stability.”Board meeting minutes about FY2010 finances, current Orchestra Board Chair Jon Campbell stated:“If the deficit is between $3 million and $5 million in fiscal 2010, it will bethe same size range for the next two years of the musicians contract. Thisis a serious liquidity issue, and the MOA already has $11 million in debt.”Here is a link to the audio and transcript of Henson’s testimony:TRANSCRIPT:http://bit.ly/18zx6NU  AUDIO:http://bit.ly/HensonTestimony EDITORS NOTE: The Musicians voluntarily gave up $4.5 million in wageconcessions in FY2009. According to the Legislative Auditor’s report, the Minnesota State Arts Board, andManagement have different interpretations of which costs are eligible for reimbursement. According to a letter including in the Auditor’s report, the Arts Board will conducta further review of the 2013 grants that Management received that may havefunded overhead during the lockout rather than the stated use of the grants byOrchestra management.The Auditor’s Conclusion related to Legacy funds:“It is uncertain how much money the Minnesota Orchestral Associationwill be allowed to use from its 2013 Minnesota State Arts Board grant. It isalso uncertain which costs may be paid with 2013 grant money. The termsof the grant agreement may allow the association to use money for costs it
 
incurred during the time the Minnesota Orchestra did not perform due tothe association’s “lockout” of the orchestra musicians. The association andthe Minnesota State Arts Board have different interpretations of whichcosts are eligible for reimbursement under the 2013 grant agreement” According the state Arts Board website for FY2013 the Orchestra Associationreceived grants including:$100,000 The Minnesota Orchestra will work with Detroit Lakescommunity members to provide a week of 
Common Chordsby the Minnesota Orchestra
events in September 2013.$961,888 For Operational support;
Qualifications
: “It provides generaloperating support to high quality, established artsorganizations that produce, present, or exhibit works of art;to nonprofit organizations that provide a broad range of services to artists; and to community arts schools andconservatories that make arts learning available toMinnesotans of all ages and abilities. This programrecognizes that organizations with an established record of programmatic service and administrative stability shouldhave access to funds to support their organizational goalsand objectives, rather than specific projects. OperatingSupport funding enables qualifying organizations to maintaintheir ongoing programs, services, and facilities withoutspecial emphasis on new initiatives as justification for funding.”Here is a link to the Legislative Auditor’s special review:http://bit.ly/12pS1j4 "The Auditor's investigation concludes that Mr. Henson and management havenot been forthcoming about their alleged financial situation with the public, just asthey have not been honest with the Musicians,” said Tim Zavadil chair of theMusicians Negotiating committee."The board has made numerous mistakes over the past few years with regard toworking with the Musicians, being transparent with the public and accuratelyrepresenting the conditions of American orchestras. The longer they wait to endthe lockout and come clean, the more devastation they are causing to our community's world-class Orchestra."
About the Musicians of the Minnesota Orchestra
The Musicians of the Minnesota Orchestra are recognized around the world asworld-class professional orchestral musicians. In 2010, renowned
New Yorker 
 

Activity (3)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads
Mark Ranum liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->