DRAFT 1 - NURFC Punch List

Dear Sandi:

At this time we are requesting a revised Business Plan approved by the Board of
Trustees which encompasses the operational, financial and administrative changes
which the Freedom Center is undergoing. Included in these changes are those matters
discussed at the June 5, 2007 meeting between Commission staff members and
members of the Freedom Center team. I realize you were not present at that meeting,
however, Mr. Pepper referred to an overall review of the museum, operations, visitorship
and programming. He specified an additional one million dollars of expenses which
remain to be cut. Comment [MSOffice1]: Not clear to me what
. this means
Deleted: Much of what we are requesting is
the narrative rationale and supporting
Mr. Pepper indicated that operations had been reviewed and a new plan developed for documentation of the changes discussed in that
moving forward. As a part of this, expenses had been cut during fiscal year 2006 and meeting.
year to date 2007 with anticipated further cuts in 2008. Please specifically outline these
cuts along with any other changes in your operational plan and the expected impact
these changes will make on your programming, earned income, and fundraising goals.

Mr. Pepper also spoke of some new programming being developed, including
partnerships with school districts. What stage are these plans at? If new programming is
achieved this fiscal year, what will the financial impact be and what is the impact going
forward? Are there any other new programs being offered at the Freedom Center? It was
also mentioned that the Marketing team at Proctor & Gamble would be putting in
significant time to develop a new marketing plan. What is the timeline for the Comment [MSOffice2]: And audience
development and implementation of the new marketing plan? How do you expect new development

programming and marketing to affect visitorship and returning visitor rates?

We also understood that a complete review of the exhibition base and other visitor
amenities is being undertaken in order to assess whether these aspects of the facility will
require changes. Please advise as to the results of this review and the plans in this
regard including costs of implementation.

Also at the June meeting, fundraising was discussed. With Bridge to the Future
completed, we were told that the Freedom Center would next be engaging in an
operating endowment campaign. I believe a goal of five million dollars was set. What is
the current status of the new campaign and what is the overall plan and timeline for this
goal to be met?

Thank you for recently submitting your audited 2006 Financial Statement. There is a
surplus before depreciation however, the Freedom Center did finish fiscal year 2006 with
a deficit after depreciation. We have been asked to focus on the pre-depreciation
numbers but what, then, is the plan for the replacement of depreciating assets, including Deleted: S:\PROJECT
refreshment of exhibits? Where are the plans for the changing of exhibits going into the MANAGEMENT\1.Cultural Projects\National
future and how will they be financed? Kindly incorporate into your financial model plans Underground Railroad Freedom
Center\Correspondence\August 2007 Punch List
to reserve for those assets you plan to replace. Letter version II.doc
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MANAGEMENT\1.Cultural Projects\National
Requested submittals are summarized as follows: Underground Railroad Freedom
Center\Correspondence\August 2007 Punch List
Letter version II.doc

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1. Financial Plan

Please provide updates to materials last provided to us as well as additional

submissions listed below:
ƒ Compiled Financial Statement for fiscal year 2007 to date
ƒ Updated Pro-forma
ƒ Updated Narrative explaining the supporting assumptions to the pro-forma
ƒ Analysis of Earnings Projections – see attachment for an example of the last
submission we received in February, 2007
ƒ Bank Statements/Investment Performance Updates, such as those referenced in
the attachment, in the email from you to Colin dated 1/12/2007
ƒ Exhibit Replacement Plan, including timeline and methods to finance replacement

In the future, please provide the Compiled Financial Statement, Analysis of Earnings,
and Bank Statements/Investment Performance Updates on a quarterly basis.

2. Fundraising Plan

ƒ Synopsis of the results of Bridge to the Future

ƒ Fundraising Plan for the operating Endowment Campaign
ƒ Quarterly fundraising reports for the first two quarters of fiscal year 2007

Please continue to provide quarterly fundraising reports in the future.

3. Programming Plan

ƒ Programming Plan for 2007

ƒ Narrative indicating new versus continuing programming and also what phase
new programming is at – e.g. is it still conceptual, is planning in process, or is
planning complete and dates solidified?
ƒ Revised Marketing Plan
ƒ Attendance & Re-Visit projections and supporting assumptions

In the future, please provide a programming synopsis of the previous year as well as
programming plan for the upcoming year, on an annual basis.

In pertinent part the Ohio Revised Code mandates the project sponsor be sustainable,
demonstrate there exists a need for the project and that the project be fully funded. In
lieu of the lease extension we are prepared to recommend to the Commission that the
Freedom Center use future investment income to satisfy the fully funded requirement
however, we will need the viability of the business plan to demonstrate sustainability and
need in order to get Commission approval.
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Thank-you for your prompt attention to this matter. MANAGEMENT\1.Cultural Projects\National
Underground Railroad Freedom
Center\Correspondence\August 2007 Punch List
Very truly yours, Letter version II.doc
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Anthony Capaci Underground Railroad Freedom
Center\Correspondence\August 2007 Punch List
Project Manager Letter version II.doc

I:\nurfc request pdfs\August 2007 Punch List Letter version II.doc

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Deleted: S:\PROJECT
MANAGEMENT\1.Cultural Projects\National
Underground Railroad Freedom
Center\Correspondence\August 2007 Punch List
Letter version II.doc
Deleted: \\Ocfc1\Shared\PROJECT
MANAGEMENT\1.Cultural Projects\National
Underground Railroad Freedom
Center\Correspondence\August 2007 Punch List
Letter version II.doc

I:\nurfc request pdfs\August 2007 Punch List Letter version II.doc