2024-05-15T15:49:10-05:00 2023-06-30 510229493 BARBACANE THORNTON & COMPANY LLP 503 CARR RD SUITE 100 WILMINGTON DE 19809 990 2022-07-01 510066934 THE MUSIC SCHOOL OF DELAWARE INC MUSI 3027621132 4101 WASHINGTON STREET WILMINGTON DE 198022151 RICHARD FACCIOLO BOARD CHAIR 3027621132 2024-05-15 RICHARD FACCIOLO 999009999 1 JEFFREY A KOWALCZYK CPA P01563311 3024788940 2024-05-15 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z RICHARD FACCIOLO 4101 WASHINGTON STREET WILMINGTON DE 198022151 2629552 0 X WWW.MUSICSCHOOLOFDELAWARE.ORG X 1924 DE PROVIDE OPPORTUNITY FOR ANYONE TO ACCESS EXCELLENCE IN MUSIC TRAINING, EDUCATION, AND EXPERIENCES. 18 18 114 125 0 0 10523604 797958 1341133 1825587 603 3551 367729 2456 12233069 2629552 140610 90608 0 0 2028922 2395540 0 0 295736 887087 1125974 3056619 3612122 9176450 -982570 14581658 14411363 1122067 1363734 13459591 13047629 X IT IS THE MISSION OF THE MUSIC SCHOOL OF DELAWARE TO PROVIDE EXCELLENCE IN MUSIC EDUCATION, TRAINING, AND EXPERIENCES FOR PEOPLE OF ALL AGES AND ABILITIES. 0 0 2327562 90608 1825587 IN FY23, THE MUSIC SCHOOL OF DELAWARE SERVED YOUTH AND ADULT STUDENTS THROUGH OUR STATEWIDE ARRAY OF COMMUNITY MUSIC EDUCATION PROGRAMS, OFFERED AT EIGHT LOCATIONS IN URBAN, EXURBAN, AND RURAL COMMUNITIES. WE ARE PROUD TO HAVE PROVIDED HIGH-QUALITY ONE-ON-ONE PERSONALIZED MUSIC INSTRUCTION THROUGH PRIVATE LESSONS; TO HAVE SUPPORTED STUDENTS IN DEVELOPING THEIR SKILLS AND CREATIVE EXPRESSION THROUGH ENSEMBLES PROGRAMS LIKE DELAWARE YOUTH SYMPHONY, CANTABILE WOMEN'S CHORALE, AND WILMINGTON COMMUNITY ORCHESTRA; AND THROUGH INTENSIVE AND FAMILY-FOCUSED MUSIC EDUCATION PROGRAMS LIKE MELODY (FREE MUSIC EDUCATION FOR UNDERSERVED WILMINGTON YOUTH), SUZUKI (RESEARCH-PROVEN YOUTH DEVELOPMENT PROGRAM), AND EARLY CHILDHOOD (SUPPORTING AGES SIX MONTHS TO FIVE YEARS IN MOTOR SKILL AND FAMILY BONDING THROUGH MUSIC EDUCATION). IN FY22, THE MUSIC SCHOOL RECEIVED A BEQUEST OF $10 MILLION TO ESTABLISH THE NORTHROP ENDOWED FUND FOR MUSIC EDUCATION. INCOME FROM THAT FUND CAN BE APPLIED ONLY TO CERTAIN SCHOLARSHIPS IN LIMITED AMOUNTS AND FOR NO MORE THAN TWO YEARS FOR ANY STUDENT, AND THE FUND'S PRINCIPAL CANNOT BE USED FOR OPERATING EXPENSES. ACCORDINGLY, THE TERMS OF THE BEQUEST SIGNIFICANTLY LIMIT THE EXTENT OF FINANCIAL BENEFIT TO THE MUSIC SCHOOL. IN 2025, THE MUSIC SCHOOL CELEBRATES A CENTURY OF PROVIDING MUSIC EDUCATION FOR OUR COMMUNITY. 2327562 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 18 0 1 114 1 0 0 0 0 0 0 0 0 0 0 0 0 X 18 18 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X X THE MUSIC SCHOOL OF DELAWARE 3027621132 4101 WASHINGTON STREET WILMINGTON DE 198022151 KATE RANSOM PRESIDENT AND CEO 50.00 X 116280 0 33219 RICHARD FACCIOLO BOARD CHAIR 10.00 X X 0 0 0 JOHN DU PONT FIRST VICE CHAIR 10.00 X X 0 0 0 HOLLY LISSNER TREASURER 10.00 X X 0 0 0 SCOTT BURRIS SECRETARY 10.00 X X 0 0 0 NINA ANDERSON MEMBER 5.00 X 0 0 0 JANE E AUSTIN MEMBER 5.00 X 0 0 0 SUSAN BOOKER MEMBER 5.00 X 0 0 0 DAVID B BROWN MEMBER 5.00 X 0 0 0 JAN E CHRISTOPHER MEMBER 5.00 X 0 0 0 PETER COMPO MEMBER 5.00 X 0 0 0 THOMAS COVER MEMBER 5.00 X 0 0 0 BRUCE DITTMAR MEMBER EMERITUS 5.00 X 0 0 0 VERONICA EID MEMBER 5.00 X 0 0 0 CLAIRMARIE FIELD MEMBER 5.00 X 0 0 0 LAWRENCE A HAMERMESH MEMBER 10.00 X 0 0 0 DAVID C MCBRIDE MEMBER 5.00 X 0 0 0 DINA NEIMAN-ABDESALAM MEMBER 5.00 X 0 0 0 JONATHAN H SALVIN MD MEMBER 5.00 X 0 0 0 MARIE STEWART DIRECTOR EMERITUS 5.00 X 0 0 0 CHRIS STOUT MEMBER 5.00 X 0 0 0 116280 0 33219 1 0 0 0 0 113025 684933 797958 TUITION AND FEES 611600 1825587 1825587 1825587 3551 3551 GAIN ON FORGIVENESS OF 611600 2456 2456 2456 2629552 1825587 0 6007 X 90608 90608 149499 89699 44850 14950 1819577 1091746 535907 191924 266168 159701 89816 16651 160296 96178 48089 16029 1100 1100 13835 13835 178619 162256 16363 107367 107367 18954 1487 15981 1486 157981 139166 18815 10504 9454 1050 23925 3589 20336 39144 39144 169907 127430 42477 55158 41369 13789 REPAIRS AND MAINTENANCE 168953 92940 76013 CUSTODIAL CONTRACT AND 73757 55318 18439 DUES AND SUBSCRIPTIONS 46259 31264 638 14357 SECURITY 28604 21453 7151 31907 6537 24175 1195 3612122 2327562 988824 295736 200 200 655573 357128 35618 32995 31623 55544 6352152 3515149 2929659 2837003 10701277 10919181 227708 209312 14581658 14411363 98999 109338 14448 14227 424883 424883 583737 815286 1122067 1363734 X 3033821 2305050 10425770 10742579 13459591 13047629 14581658 14411363 -982570 570608 0 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 10232861 22500 617317 391126 10481552 674362 10000000 -441501 10232861 574141 100221 674362 578081 -3940 574141 551505 26576 578081 0.01450 0.04790 0.93760 1 0 129057 129057 5164330 2702131 2462199 385597 154239 231358 673168 658779 14389 2837003 WORKING CAPITAL LOAN 100000 LINE OF CREDIT 505974 RIGHT TO USE - LEASE PAYABLE 209312 815286 X 3200160 570608 570608 2629552 0 2629552 3612122 0 3612122 0 3612122 PART V, LINE 4: THE SCHOOL'S ENDOWMENT ASSETS ALLOW THE SCHOOL TO PROVIDE A PREDICTABLE STREAM OF FUNDING FOR ITS PROGRAMS. THE ENDOWMENT INCLUDES THE NORTHROP TRUST, VALUED AT $9,827,868 AS OF JUNE 30, 2023. THE FUNDS IN THIS TRUST ARE RESTRICTED TO USE FOR SCHOLARSHIPS AND ARE NOT AVAILABLE FOR THE OPERATING COSTS OF THE SCHOOL. PART X, LINE 2: THE SCHOOL IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. HOWEVER, INCOME FROM CERTAIN ACTIVITIES NOT DIRECTLY RELATED TO THE SCHOOL'S TAX-EXEMPT PURPOSE MAY BE SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES PRESCRIBE RULES FOR THE RECOGNITION, MEASUREMENT, CLASSIFICATION, AND DISCLOSURE IN THE FINANCIAL STATEMENTS OF UNCERTAIN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN THE SCHOOL'S TAX RETURNS. MANAGEMENT HAS DETERMINED THAT THE SCHOOL DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS OR ASSOCIATED UNRECOGNIZED BENEFITS THAT MATERIALLY IMPACT THE FINANCIAL STATEMENTS OR RELATED DISCLOSURES. SINCE TAX MATTERS ARE SUBJECT TO SOME DEGREE OF UNCERTAINTY, THERE CAN BE NO ASSURANCE THAT THE SCHOOL'S TAX RETURNS WILL NOT BE CHALLENGED BY THE TAXING AUTHORITIES AND THAT THE SCHOOL WILL NOT BE SUBJECT TO ADDITIONAL TAX, PENALTIES, AND INTEREST AS A RESULT OF SUCH CHALLENGE. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 THE NONDISCRIMINATION POLICY IS PART OF THE ORGANIZATION'S ADMISSIONS POLICY, WHICH IS POSTED ON THE SCHOOL'S WEBSITE. ADDITIONALLY, THE POLICY IS PUBLISHED IN A BROCHURE WHICH IS DISSTRIBUTED IN MASS MAILINGS. SCHEDULE E, PART I, LINE 6 THE SCHOOL RECEIVED A $154,155 GRANT FROM THE STATE OF DELAWARE - DIVISION OF THE ARTS FOR GENERAL OPERATING PURPOSES AND A $5,000 GRANT FROM THE STATE OF DELAWARE - GRANT IN AID - FOR THE MELODY PROGRAM. 1 SCHOLARSHIPS TO STUDENTS 80 90608 FMV TUITION SCHOLARSHIPS PART I, LINE 2: SCHOLARSHIPS ARE AWARDED TO DESERVING STUDENTS BASED ON ABILITY AND/OR DEMONSTRATED NEED. BALANCES REFLETED IN SCHEDULE I DO NOT INCLUDE SUPPORT PROVIDED THROUGH RELEASES FROM THE NORTHROP FUND IN THE AMOUNT OF $391,126. SCHEDULE I, PART 1, LINE 2 FORM 990, PART VI, SECTION B, LINE 11B FORM 990 IS DISTRIBUTED TO ALL MEMBERS OF THE BOARD BEFORE FILING WITH THE IRS. IMPORTANT TO NOTE: SUBSEQUENT TO YEAR END, THE PRESIDENT/CEO CHANGED FROM KATE RANSOM TO STEPHEN BEAUDOIN. FORM 990, PART VI, SECTION B, LINE 12C DIRECTORS ARE REQUIRED TO DISCLOSE ANY KNOWN OR POTENTIAL CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE MUSIC SCHOOL OF DELAWARE'S VOTING DIRECTORS ARE ALL INDEPENDENT OF THE SCHOOL'S PAID EMPLOYEES. ANNUALLY, MANAGEMENT OF THE SCHOOL WILL PREPARE RECOMMENDATIONS FOR SALARIES AS PART OF THE ANNUAL BUDGETING PROCESS. THE BOARD WILL EVALUATE THE PROPOSED COMPENSATION AND APPROVE COMPENSATION LEVELS. COMPENSATION APPROVALS ARE FORMALLY DOCUMENTED IN THE MEETING MINUTES. THE VOTING DIRECTORS' DECISIONS ARE BASED ON THEIR EXTENSIVE KNOWLEDGE AND EXPERIENCE WITH COMPENSATION PACKAGES OF OTHER COMPARABLE ORGANIZATIONS. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION'S FORM 990 AND FORM 1023 ARE AVAILABLE UPON REQUEST. ADDITIONALLY, FORM 990 IS AVAILABLE ON GUIDESTAR.ORG. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. REQUESTS FOR THESE DOCUMENTS WOULD BE EVALUATED ON A CASE BY CASE BASIS BY THE DIRECTORS. FORM 990, PART IX, LINE 11G OTHER PROGRAM EXPENSES AND PIANO TUNING ANE CONCERT EXPENSE: PROGRAM SERVICE EXPENSES 119,844. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 119,844. BANK CHARGES: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 23. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 23. PAYROLL SERVICE: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 16,247. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 16,247. TELEPHONE: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 93. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 93. GUEST PERFORMANCES: PROGRAM SERVICE EXPENSES 42,412. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 42,412. FORM 990, PART IX, LINE 24E STATIONARY AND PRINTING: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 24,175. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 24,175. STAFF AND FACULTY DEVELOPMENT: PROGRAM SERVICE EXPENSES 6,537. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 6,537. MISCELLANEOUS: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 1,195. TOTAL EXPENSES 1,195. FORM 990, PART XII, LINE 2C THE ORGANIZATION HAS NOT CHANGED ITS PROCESS GOVERNING THE OVERSIGHT AND SELECTION OF AN INDEPENDENT AUDITOR.