HomeMy WebLinkAbout2018-08-22 - Agenda Packet - Community & Arts Foundation RANCHO CUCAMONGA
COMMUNITY
ARTS FOUNDATION
AGENDA
COMMUNITY & ARTS
FOUNDATION
WEDNESDAY, AUGUST 22, 2018
EXECUTIVE/FINANCE COMMITTEE MEETING
LOCATION:
Serrano Conference Room
City of Rancho Cucamonga
10500 Civic Center Drive
Rancho Cucamonga, CA 91703
MEMBERS:
CHAIR Tina Chen, Esq.
VICE CHAIR Mark Rivera
TREASURER/SECRETARY Jim Harrington
FORMER CHAIR Paula Pachon
Mission Statement
♦ Enriching lives through support of the arts at the Victoria Gardens Cultural Center and
supporting efforts that benefit the community.
® If you need special assistance or accommodations to participate in this meeting,please contact the
Community Services at(909)477-2760. Notification of 48 hours prior to the meeting will enable the
City to make reasonable arrangements to ensure accessibility. Listening devices are available for
the hearing impaired.
RANCHO CUCAMONGA
COMMUNITY
PARTSFOUNDATION
AUGUST 22, 2018
COMMUNITY He ARTS FOUNDATION EXECUTIVE/FINANCE COMMITTEE
A. 4:30 P.M. -CALL TO ORDER
Al. Roll Call: Tina Chen
Mark Rivera
Jim Harrington
Paula Pachon
B. COMMUNICATIONS FROM THE PUBLIC
This is the time and place for the general public to address the Committee. State law prohibits the
Committee from addressing any issue not previously included on the Agenda. The Committee may
receive testimony and set the matter for a subsequent meeting. Comments are to be limited to five
minutes per individual.
C. CONSENT CALENDAR
The following Consent Calendar items are expected to be routine and non-controversial. They
will be acted upon by the Community and Arts Foundation Executive/Finance Committee at one
time without discussion. Any item may be removed by a Member or member of the audience for
discussion.
Cl. Request for approval of the minutes of the Community &Arts Foundation Executive/Finance 1
Committee meeting held on May 23, 2018.
D. ITEMS FOR DISCUSSION
The following items are not public hearing items, although the Chair may open the meeting for
public input:
D1. Request for direction on U.S. Treasury Note transaction and receive and file Treasurer Report. 4
D2. Consideration to review and approve LSL Engagement Letter for 17/18 FY Tax Services. 54
D3. Discussion of Foundation Insurance Policy. 65
D4. Discussion on Magic, Food &Wine Event as fundraiser.
D5. Ongoing Discussion of RCCAAF Reorganization Plan, 66
D6. Update on Fundraising Committees.
• Golf Tournament
• Cinco de Bunco
• Monte Carlo Night
Page 1 of 2
RANCHO CUCAMONGA
COMMUNITY
&4RTSFOUNDATION
AUGUST 22, 2018
COMMUNITY & ARTS FOUNDATION EXECUTIVE/FINANCE COMMITTEE
• Fritz Coleman - Benefit Performance
• Quakes Night
E. IDENTIFICATION OF ITEMS FOR THE NEXT MEETING
This is the time for the Executive Committee to identify the items they wish to discuss at the
next meeting. These items will not be discussed at this meeting, only identified for the next
meeting.
F. ADJOURNMENT
I, Valerie Smith, Administrative Secretary of the City of Rancho Cucamonga, or my designee,
hereby certify that a true, accurate copy of the foregoing agenda was posted on Thursday,
August 16, 2018, seventy-two (72) hours prior to the meeting per Government Code 54954.2 at
10500 Civic Center Drive.
/s/Valerie Smith
Valerie Smith
Administrative Secretary
City of Rancho Cucamonga
Page 2 of 2
RANCHO CUCAMONGA
COMMUNITY
&RTS FOUNDATION
MAY 235 2018
COMMUNITY & ARTS FOUNDATION EXECUTIVE/FINANCE COMMITTEE
MEETING MINUTES
A. CALL TO ORDER
Al. A meeting of the Rancho Cucamonga Community & Arts Foundation Executive/Finance
Committee was held on Wednesday, May 23, 2018 at the Rancho Cucamonga Civic
Center, located at 10500 Civic Center Dr., Rancho Cucamonga, California. The meeting
was called to order at 4:46 p.m. by Chair Pachon.
A2. Present were Committee Members: Paula Pachon, Tina Chen (arrived at 4:52 p.m.) and
Mark Rivera.
Also present were: Jennifer Hunt Gracia, Community Services Director; Susan Sluka-Kelly,
Cultural Arts Manager; Catherine Allen, Account Technician; Christen Mitchell,
Management Analyst h, and Valerie Smith, Administrative Secretary.
B. COMMUNICATIONS FROM THE PUBLIC
131. None.
C. CONSENT CALENDAR
C1. Request for approval of the minutes of the Community &Arts Foundation Executive Finance
Committee meeting held on March 28, 2018.
C2. Receive and file Treasurer Report.
Chair Pachon requested that the minutes reflect that the transfer of funds from LAIF to
Checking was done once the Animal Center funds were disbursed.
MOTION: Moved by Secretary[Treasurer Rivera, seconded by Chair Pachon to receive and
file the Consent Calendar as amended. Motion carried: 2-0-1. Absent: Chen.
D. ITEMS FOR DISCUSSION
D1. Update on Scope of Work for Attorney.
Cultural Arts Manager Sluka-Kelly presented the items that she identified that the attorney
can assist the Foundation. She indicated that the by-laws are a major part of the items that
the attorney would provide advice. Analyst Mitchell presented what appeared to be the 1023
form that was found in a binder. She indicated that staff will continue to review the files. Chair
Pachon noted that the attorney may need to also look at the 1023 form. The committee
discussed the purpose of hiring the attorney. The attorney needs to help define the
Page 1 of 3
t09A RANCHO CUCAMONGA
COMMUNITY
RTS FOUNDATION
MAY 235 2018
COMMUNITY $ ARTS FOUNDATION EXECUTIVE/FINANCE COMMITTEE
MEETING MINUTES
relationship between the Foundation and the City. Director Hunt Gracia stated that the City
will continue to support the Foundation; however, Foundation members will be asked to take
a more active role so that staff time can be minimized. Chair Pachon volunteered to review
the Foundation files. Chair Pachon suggested submitting a proposal to the City of the changes
the Foundation would like to make to the by-laws. No further discussion was held.
D2. Discussion on Payroll Company Bids and Review of Employment Contract for Executive
Director.
The committee members discussed the payroll quotes. Secretary/Treasurer Rivera will
contact another payroll company for an additional quote. Liability insurance forthe Foundation
was also discussed. The Committee also made minor revisions to the professional agreement
to add being paid semi-monthly to the agreement. The Committee decided not to make a
recommendation to the Full Board until all of the quotes had been reviewed. No further
discussion was held.
D3. Update on Fundraising Committees.
Secretary/Treasurer Rivera shared that meetings for the golf tournament will commence in
the upcoming weeks. Chair Pachon and the committee discussed a date for Cinco de Bunco.
Vice Chair Chen provided an update on Monte Carlo Night. The committee also received an
update on the High School Program/Scholarship. Chair Pachon shared that Fritz Coleman
has agreed to a benefit performance. The committee was also reminded of the upcoming
Quakes Night in September. No further discussion was held.
D4. Update on Transfer of Animal Center and Affiliate Funds.
Analyst Mitchell provided an updated on the transfer of Animal Center and Affiliate Funds.
She shared that PetSmart Charities is an automatic deposit into the account and it's not as
simple to correct but staff is working on redirecting the deposit to the Animal Center. Your
Cause checks are still being received but they are being provided to the Animal Center for
them to deposit into their account.
D5. Review of Investment Funds and Development of FY 18/19 Budget.
Account Technician Allen recommended that QuickBooks be revised to better reflect the
responses that are provided on the taxes. She presented a sample of how the reports would
look with the proposed revisions. Manager Sluka-Kelly provided an overview of the FY 18/19
budget. Adjustments were made to the budget based on the previous year's actuals.
MOTION: Moved by Secretary/Treasurer Rivera, seconded by Vice Chair Chen to allow
adjustments to QuickBooks to improve efficiency. Motion carried: 3-0-0.
D6. Discussion regarding Upcoming Board Elections.
Page 2 of 3
RANCHO CUCAMONGA
COMMUNITY
A RTS FOUNDATION
MAY 23, 2018
COMMUNITY He ARTS FOUNDATION EXECUTIVE/FINANCE COMMITTEE
MEETING MINUTES
The Committee discussed the upcoming Board Elections to be held during the full board
meeting in June. The elections will include a new Chair, Vice-Chair, and Secretary/Treasurer.
The committee decided that for consistency and historical reference, the former Chair should
continue to attend the Executive Finance Committee meetings.
E. IDENTIFICATION OF ITEMS FOR THE NEXT MEETING
The following items were identified for the next meeting: Update on scope of work for attorney;
Update on fundraising committees.
F. ADJOURNMENT
The Community & Arts Foundation Executive/Finance Committee meeting was adjourned at 6:52 p.m.
Respectfully submitted,
/s/Valerie Smith
Valerie Smith
Administrative Secretary
City of Rancho Cucamonga
Page 3 of 3
RANCHO CUCAMONGA
COMMUNITY
QARTSFOUNDATION
STAFF REPORT
DATE: August 22, 2018
TO: Rancho Cucamonga Community &Arts Foundation
FROM: Jennifer Hunt Gracia, Community Services Director
INITIATED BY: Catherine Allen, Account Technician
Christen Mitchell, Management Analyst II
SUBJECT: Treasurer Report
RECOMMENDATION:
Staff is seeking direction on the US Treasury Note transaction and then recommends the
Foundation receive and file this informational report.
BACKGROUND:
Updated treasurer reports are provided to Full and Executive Board members at bimonthly
meetings.
ANALYSIS:
On July 27, 2018, the Foundation redeemed its Federal National Mortgage Association Note,
which had reached its maturity date. As a result, $900,000 was electronically deposited into the
PAL account. On July 31, 2018, the Foundation purchased a new United States Treasury Note,
at a purchase price of $899,718.75. This amount was electronically deducted from the PAL
account. The new US Treasury Note is being displayed in the Foundation's UnionBanc
Investment Services monthly statement at a value of $900,000. Therefore, staff is requesting
guidance as to whether we need to account for the $281.25 discrepancy in QuickBooks or not.
Additional information provided below are highlights from the attached reports.
P&L Detail —Operating Budget:
• 06/11/2018— Reimbursement received from Donna Napolitano in the amount of$500.00
for Leyna Camacho's scholarship award.
• 06/27/2018—Invoiced the City for a $19.00 reimbursement for the Buquet brick. Payment
was received and deposited into the Foundation PAL account on 07/05/2018.
• 06/28/2018 — Payment in the amount of $3,969.00 was received from the City. This
amount represents revenue taken in at the Cultural Center for Monte Carlo Night.
• 06/29/2018 — Monthly service charge for PAL account was assessed in the amount of
$21.00. This amount has not yet been reimbursed by the City.
• 07/10/2018 — Payment of$20.00 was sent to the Secretary of State for the Foundation's
Statement of Information. This fee is paid every two years.
Page 1 of 2
P&L Detail—Grants:
• Grant funds received in June 2018 = $20,000.00 (Lewis grant)
• Grant funds disbursed in June 2018 = $32,628.00
• Grant funds received in July 2018 = $0.00
• Grant funds disbursed in July 2018 =$0.00
P&L Fundraising Events:
• Monte Carlo Night: Sponsorships receivable (outstanding donor invoices) as of July 31,
2018 is $400.00.
Balance Sheet
• Per Foundation approval, the equity account is now displayed as three separate
categories:
o Temporarily Restricted Net Assets: Grant funds
o Permanently Restricted Net Assets: Endowment fund
o Unrestricted Net Assets: All unrestricted earnings of the Foundation
• US Treasury Note transaction
PAL Checking Account:
07/24/2018 — A donation from PetSmart Charities in the amount of $1,000.00 was
electronically deposited into the Foundation's PAL account. This amount will need to be
paid to the Animal Care Foundation. Barbara Hansen, Animal Center staff, has recently
submitted the necessary paperwork to PetSmart Charities to direct their donations into the
proper account.
As of 07/31/2018, the Animal Care Foundation owes the Foundation a total of$343.00 for
five separate Your Cause donations from Luis Munoz. These donations were designated
to the Foundation, but went to the Animal Center in error.
FISCAL IMPACT:
• Total FY 2017/2018 Operating Budget Income for June 2018 = $9,138.00
• Total FY 2017/2018 Operating Budget Expenses for June 2018 = $47,199.62
• Total FY 2018/2019 Operating Budget Income for July 2018 = $4,764.91
Total FY 2018/2019 Operating Budget Expenses for July 2018 = $29.70
• Total investment interest income earned for June 2018 =$4,375.00
• Total investment interest income earned for July 2018 =$3,375.00
• Total interest earned on LAW savings account for June 2018 = $0.00
Total interest earned on LAW savings account for July 2018 = $1,389.91
EXHIBITS:
Exhibit A - Foundation financial reports for June and July 2018 and operating budgets ets for
2017/2018 and 2018/2019 Fiscal Years.
Page 2 of 2
Foundation Financial Reports
FY 2017/2018
Foundation Operating Budget
Budget Summary and
Statement of Activity
June 1 - 301 2018
EXHIBIT A
Rancho Cucamonga Community &Arts Foundation
Operating Budget- 17/18 Budget
17/18 17/18 17/18 YTD
Description Approved Actuals Jan 1-31 Feb 1-28 Mar 1-31 Apr 1-30 May 1-31 June 1-30 Actuals
Fundraising/Investments $ 38,900 $ 44,240 $ 5,223 $ 322 $ 200 $ Z074 $ 8,252 $ 4,644 $ 44,240
PAL Compaign/SpoHight Donors $ 3,400 $ 1,500 $ Soo $ 1,000 $ 1,500
Major Gift Campaign $ - $ - _ $ -
RC Quakes Strike Outs $ 5,000 $ 6,570 $ 6,570
VG Bricks/Plaques $ 500 $ 1,819 $ 300 $ 450 $ 500 $ 269 $ 1,819
Investment Income 28,000 $ 28,750 $ 3,375
- $ 4,375 $ 2 ,750
Misc/interest _
$ $ 181 5
1,348 $ 1 624 $ ,601
_
Activities&Events :- $110,800 _$ 87,636 $ $ 3,025 $ 3,740 $ 5,739 -$ 6,571 $ 4,494 .-$
-
Quakes Night(Sept201 7) $ 1,500 $ 1,700 $ 1,700
Golf Tournament(October2017) $ 65,000 $ 68,898 $ 68,898
Monte Carlo Night(April 2018) $ 32,000 $ 14,633 $ 3,025 $ 1,375 $ 5,73.9 $ 4,494 $ 14,633
Cinco de Bunco(May 2018) $ 2,300 $ 2,405 $ 2,365 $ 2,405
Tour de Fork(June 2018) $ 10,000 $ - $ -
Totai Revenue 11 $149,700 $131,876 $ 5,223 $ 3,347 $ 3,940 $ 7,813 $ 8,252 $ 9,138 L$131,876
Rancho Cucamonga Community &Arts Foundation
Operating Budget- 17/18 Budget
Expenditures
Description 17/18 17/18 Jan 1-31 Feb 1-28 Mar 1-31 Apr 1-30 May 1-31 June 1-30 17/18 YTD
Approved Actuals Actuals
Administration $ 34,100 $ 17,36� $ 228 $ 174 $ 18 $ 5,107 $ 226 $ 17,368
Personnel $ 20,000 $ 9,160 $ 6,174 $ 2,252 $ 9,160
Business Cards/Office Supplies $ 1,000 $ 317 . $ 317
Financial Compliance $ 10,000 r$ 5,136 $ 1 $ 28 $ 174 $ 18 $ 2,855 $ 24 $ 5,130
Insurance-- $ 2,300 $ 2,049 _$ 2,049. _ .$ 2,049
Travel&Meetings $ 1,000 $ 712 $ 201 $ 202 $ _712�
Marketing&Community Outreach $ 1,700 $ 156 $ - $ - $ - $ _ - $ 156 $ - $ ___156
2016/2017Foundation Repo rt $ _1,200 $ - _ _ _$
g - I - _. . _ _
Foundation Brochure $ - $ $
_
Website Hostin /Maintenance $ - $ _ $
Miscellaneous Marketing Exp $ 500 $ 156 $ 156 $ 156
Board Development&Trainingl $ 10000 1 $
_ Donor Development&Retention', $ 2,200 $ 2,369 $ 1,991 $ - $ - $ - $ 224 $ $ 2,369
Donor Recognition Event $ 1,400 $ .1,570, $ 1,570 $ 1,570
DonorAwards $ 600 S 420 $ 420 _ $ _ 420
Donor Plaques/Bricks $ 200 $ 379 $ 224 $ 379
Fundraising Activities&Events $ 39,200 $ 29,241 $_ 334 $ - $ - $ 4,109 . $ 731 $ 646 $ 29 241
Golf Tournament(2017) $ 25,000 $ 23,755 $ 334 $ 23,755
Monte Carlo Night(2018) $ 14,200 $ 5,486 $ 4,109 $ 731
Other I $ - $ -
IFoundationSponsoredCtyPrograms $ 67,500 $ 64,085 $ 500 $ 7,169 $ 575I$ I $ 1,607 $ 46,828 $ 64,085
._ $ 0,500 _ - _0_.
RC Community
TesarelBows) $ 10,000 $ 10,000 $ 14,425 $ 15,000 Lewis Family Playhouse 1
$ 15,000 15,000 $ 575 $ 14,415 $ 15,000
World ( $ 9,000 _ _ _ $ 7,500 $ 7,500
Ticketsfor UnderservedStudents/Famllies $ 6,000 $ 4,085 $ 500 $ 503 $ 1,607 $ 737 $ 4,085
-__
Foundation Family Wknds/Flex Pack MSTC: $ 10,000 $ 20,000 . _ $ 6,666 $ 6,666 $ 20,000
MoinStreet Theatre Company $ 7,500 $ 7,500 $ 7,500 $ 7,500
Community Programs $ 12,000 $_12,000 $ 1I$ - $ 3,OW I $ =I$ 5,500 $ 1500) $ 12,000
HS Performing Arts Program Support $ 3,000 $ 3,000 ��$ 3,000i $ 3000 '.
Student Scholarship Program $ 5,000 $ 5,000 $ 5,500 $ (500)F$ 5000
Total Expenditure{SeptemberArt Association Art Show $ 4,000 $ 4,000 $ 4,000
$157,700 $125,219 $11,049 $ 7,397 _$ 3,749 ;$ _4,127_ $ 13,326__$ 47,200 $125,219
Budgeted Net Total. $ (8,000) $ 6,657
Rancho Cucamonga Community &Arts Foundation
Operating Budget- 17/18 Budget
Description 17/18 17/18
Approved Actuals July 1-31 Aug 1-31 Sept 1-30 Oct 1-31 Nov 1-30 Dec 1-31
Fundraising/Investments $ 38,900 $ 44,240 $ 4,383 $ 15 $ 5 $ 8,058 $ 6,690 $ 4,375
PAL Campaign/SpotBght Donors $ 3,400 1 $ 1,500
Major Gift Campaign $ - $ -
RC Quakes Strike Outs $ 5000 $ 6,570 _ $ 6,570
VG Bricks/Plaques $ 500_ $ 1,819 $ 300
Investment income $ 28,000 $ 28,750_ $ 3,375 _ $ 6,679 $ 4,375
Misc/Interest i $ 2,000 $ 5,601 ' $ 1,008 $ 15 $ 5 $ 11188 $ 11 -
Activities&Events $110,800 1 $ 87,636 1$ 3,950 $ 36,400 $ 12,14 48 FY16/17 Revenue
Quakes Night(Sept 2017) $ 11500 $ 1,700 $ 450 _ 5 600 $ ISO
Go1JTournoment(October 2017/' $ 65,000 $ 68,898 $_ 3,500 ' $ 35,900 $ 11,500 $ 17998
Monte Carlo Night(May 1018) $ 32,000 $ 14,633 __f Fl16/17 Revenue
Cinco de Bunco(May 2018) $ 2,3001 $ 2,405 $ _40
Tour de Fork(June 2018) $ 10,000 $ - _ _
Total Revenue +$149,700 1 $131,876 $ 8,333 $ 36,415 $ 12,145 I $ 26,206 $ 6,690 $ 4,375
Rancho Cucamonga Community &Arts Foundation
Operating Budget-17/18 Budget
EXpenditures
Description 17/18 17/18 July 1-31 Aug 1-31 Sept 1-30 Oct - - -31
_ Approved Actuals Fv16/17 Reimbursement
Administration _ $ 34,100 $ 17,368 $ - $ 2,776 ,�/559 $ 10 $ 47 $ -
Personnel $ 20,000 $ 9,160 $ 734
Business Cards/Office Supplies $ 1,000 $ 317 $ 32 $ 285
Financial Compliance $ 10,000 $ 51130- $ 2,010 $ 20
Insurance $ Z100 $ 2,049
Travel&Meetings $ 1,000 $ 712 $ 253 $ 10 $ 47
Marketing&Community Outreach $ 1,700 $ 156 $ - $ - $ - _$ - _$ - .$ -
2016/2017Foundotion Report $ 1,200
Foundation Brochure $ - $
Website Hosting/Maintenance $
Miscellaneous Marketing Exp $ Soo $ 156
Board Development&Training $ 1,000 $ - $
Donor Development&Retention $ 2,200 $ 2,369 $ - $ - $ $ 155 $ - $
Donor Recognition Event $ 1,400 _ $ 1,570
Donor Awards $ 600 $ 420
Donor Plaques/Bricks. $ 200 $ 379 $ 155 .
Fundraising Activities&Events $ 39,200 $ 29,241 $ - $ 361 $ 86 $ 5,901 $ 17,073 $
Golf Tournament(2017) $ 25,000 $ 23,755 $ 361 $ 86 $ 5,901 $ 17,073
Monte Carlo Night(2018) $ 14,200 $ 5,486
Other $ $ _
Foundation Sponsored City Programs $ 67,500 $ 64,085 $ - $ - $ - $ _ $ 6,668 17M
Lewis Family Playhouse. $ 10,000 $ 10,000
RC Community Theatre/BATG $ 15,000 $ 15,000
World Music Series(3 Shows) $ 9,000 $ 7,500 -�
Tonsportationfor Unde.s ,rvd5tudents $ 6,000 $ 4,085 $ 738
Foundation Family Wknds/Flex Pack MSTC $ 20,000 $ 20,000 $ 6,669
MoinStreet Theatre Company $ 7,500 $ 7,500
community Programs _ $ 12,000 $ 12,000 $ - $ - $ - $ - $ - $ 4,000
H 5 Performing Arts Program Support $ 3,000 $ 3,000
Student Scholarship Program $ 5,000 $ 5,000
September Art Association An Show $ 4,000 $ 4,000 $ 4,000
Total Expenditures __ $157,700 $125,219 $ - $ 3,137 $ 644 _ $ 6,065 $ 23,788 $ 4,738 .
Budgeted Net Total $ (8,000) $ 6,657
Accrual Basis Rancho Cucamonga Community & Arts Foundation
Statement of Activity - Operating Budget
Fiscal Year 2017 - 2018
June 1 -30,2018
Type Date Name Memo Amount
Ordinary Income/Expense
Income
42000-Interest Income
42010-Investment Interest Income
Deposit 06/28/2018 Union Banc Investment Investment interest-Federal Natl Mtg Assn Note 4,375.00
Services
Total 42010- Investment Interest Income 4,375.00
Total 42000- Interest Income 4,375.00
43000-Individual Contributions
43030-Brick Donation
Invoice 06/27/2018 City of Rancho Request for reimbursement to Foundation for paying 19.00
Cucamonga for the Buquet brick
Total 43030-Brick Donation 19.00
43050-Theatre Seat Donation
Sales 06/25/2018 Ambrus,Sharon LFP Theatre Seat Plaque-The Ambrus Family 250.00
Receipt
Total 43050-Theatre Seat Donation 250.00
Total 43000- Individual Contributions 269.00
45000-Program/Event Income
45050-Event Donation
Sales 06/29/2018 Bashar G.Saad,MD, 2018 Monte Carlo Casino Night-Donation 250.00
Receipt Inc.
Total 45050•Event Donation 250.00
45080-Event Silent Auction
Sales 06/29/2018 Solario,Armando 2018 Monte Carlo Casino Night-Silent Auction Item 275.00
Receipt -Tour&Ride-Along for Two with Aviation Unit
Total 45080-Event Silent Auction 275.00
45090•Misc Event Income
Sales 06/28/2018 City of Rancho Revenue taken in at Cultural Center for 2018 Monte 3,969.00
Receipt Cucamonga Carlo Casino Night
Total 45090-Misc Event Income 3,969.00
Total 45000-Program/Event Income 4,494.00
Total Income 9,138.00
Gross Proft 9,138.00
Expense
66000-Program Expenses
66200-Giving Activities/Sponsorship
66201 -MainStreet Theatre Company
Accrual Basis Rancho Cucamonga Community &Arts Foundation
Statement of Activity - Operating Budget
Fiscal Year 2017 - 2018
June 1 -30, 2018
Type Date Name Memo Amount
City of Rancho FYI 7/18 Supporting Sponsor-MainStreet Theatre
Check 06/12/2018 Cucamonga-V Company Season(The Witches,Oh Freedom, 7,500.00
Frederick)
Total 66201 -MainStreet Theatre Company 7,500.00
66202-World Music Series
Check 06/12/2018 City of Rancho FYI 7/18 Presenting Sponsor-World Music Concert 7,500.00
Cucamonga-V Series(Nori,Mexika,Los Pinguos)
Total 66202-World Music Series 7,500.00
66203-RC Community Theatre/BATG
City of Rancho FYI 7/18 Presenting Sponsor-RC Community
Check 06/12/2018 Cucamonga-V Theatre Season(Joseph&the Amazing Technicolor 7,500.00
Dream...
City of Rancho FYI 7/18 Presenting Sponsor-Broadway at the
Check 06/12/2018 Cucamonga-V Gardens(In the Heights) 6,925.00
Total 66203-RC Community Theatre/BATG 14,425.00
66205-Cultural Ctr Season Support
City of Rancho FYI 7/18 Presenting Sponsor-Presented Season
Check Ofi/12/2018 Cucamonga-V Shows(Bill Engvall,Reunion of the Doo Wop Stars) 10,000.00
Total 66205•Cultural Ctr Season Support 10,000.00
66206-Tkts for Underserved STU&FAM
Check 06/12/2018 John Adams Bus reimbursement-LFP"Frederick"(PO# 500.00
Elementary 187445)
Check 06/20/2018 Pacific Avenue LFP Bus Reimbursement-Frederick(Trip ID# 237.04
Academy of Music 2202)
Total 66206-Tkts for Underserved STU&FAM 737.04
66207-Foundation Sponsored Tkts LFP
Check 06/18/2018 City of Rancho LFP Subsidized Opening Weekend&Family Flex 5,246.00
Cucamonga-V Packs-Frederick
Check 06/18/2018 City of Rancho Foundation Sponsored Tickets-MainStreet Theatre 1,420.00
Cucamonga-V Company(Memo to request funds)
Total 66207-Foundation Sponsored Tkts LFP 6,666.00
66210-Student Scholarships
Sales Reimbursement to Foundation for Leyna Camacho's
Receipt 06/11/2018 Napolitano,Donna scholarship award -500.00
Accrual Basis Rancho Cucamonga Community &Arts Foundation
Statement of Activity - Operating Budget
Fiscal Year 2017 - 2018
June 1 -30,2018
Type Date Name Memo Amount
Total 66Student Scholarships -500.00
Total 66200•Giving Activities/Sponsorship 46,328.04
Total 66000-Program Expenses 46,328.04
60000-Administrative Expenses
60030-Bank Charges
60032•Merchant Service Fee
Check 06/29/2018 Service Charge 21.00
Total 60032-Merchant Service Fee 21.00
Total 60030-Bank Charges 21.00
60020-Taxes
60022-RCCAAF Federal and State Filing
Reimbursement for postage fees paid to mail out
Check 06/18/2018 Mitchell,Christen-V Foundation's 2016/17 tax returns 2.68
Total 60022-RCCAAF Federal and State Filing 2.68
Total 60020-Taxes 2.68
60004-Board Hospitality
Credit
Card 06/11/2018 Stonefire Grill Dinner for Board Meeting-June 13,2018 160.50
Charge
Credit
Card 06/13/2018 Ralphs Store Refreshments for Board meeting-June 13,2018 41.49
Charge
Total 60004•Board Hospitality 201.99
Total 60000-Administrative Expenses 225.67
65000-Fundraising Expenses
65030-Event Decoration
Check 06/25/2018 City of Rancho 2018 Monte Carlo Night-Linen rental 140.00
Cucamonga-V
Total 65030•Event Decoration 140.00
66070-Event Staffing
Check 06/25/2018 City of Rancho 2018 Monte Carlo Night-Staffing costs 482.56
Cucamonga-V
Total 65070•Event Staffing 482.56
65120-Misc Event Expenses
Check 06/25/2018 City of Rancho 2018 Monte Carlo Night-Active Net transaction fee 23.35
Cucamonga-V
Total 65120-Misc Event Expenses 23.35
Total 65000•Fundraising Expenses 645.91
Total Expense 47,199.62
Net Ordinary Income -38,061.62
Net Income -38,061.62
Foundation Financial Reports
FY 2018/2019
Foundation Operating Budget
Budget Summary and
Statement of Activity
July 1 - 31, 2018
Rancho Cucamonga Community&Arts Foundation
Operating Budget-18/19 Budget
18/19 YiD
Description 18/19 18/19 Nates: July 1-31 Aug 1-31 Sept 1.30 Oct 1-31 Nov 1-30 Oec 1-31
Approved Actuals Actuals
Fundraising/Inyeshnents $ 70,025 4,765 $ 4,765 $ - $ - $ - $ - $ - $ 4,765
PAL CampahJ4/SPOtllght Dam,, $ 16,000 $ New/Renewing Dmwrs(Pm ler/Lewls/Morri) _ $ -
RCOuokesStHkeOuts $ 6,1100 $ Septemberist $
VG 9dcks/Pla4ues $ 1,400 $ HwalsforArts Campaign(Feb.2019) _ $
Investment Income $ 36,625 $ 3,375 $ 3,375 $ 3,375
MIs4/In—wt,,t $ 8,000 $ 1,390 1 AddMonthly[ampolpns/Restaurant Fundraiser $ 1,350 _ $ 1,390
Activities&Events $100,550 $ - $ - $ - $ - $ -'$ - $ - $
quakes Night $ 1,600 $ - Seprember1.2018 _ _ _ $ -I
Golf iournamem $ 65,000 $ - October l2,1o18
Frio Coleman Performance $ 11,650 ODss or 392 rxa$32a,gj-GP.-$15,D00/March19,2019 _
Monte Carlo Night $ 15,000 $ - APr1127,2019 _ $
--it..de Bunco $ 2,300 5 - May 4,2019 $
Mus./New Fundrasrr $ 5,000 _
Total Revenue $170,575 $ 4,765 � $ 4,765 $ -;$ -j$ -I$ -;$ $ 4,765
Rancho Cucamonga Community&Arts Foundation
Operating Budget-18/19 Budget
Expenditures
Deudption 18/19 18/19 Notes: July 1-31 Au91-31 SePtl30 Octl-31 Novl-30 DeCI.31 38/39YfD
Agtuats
Approved Actuals __ -_
'.Administration $ 50,100 $ 201 $ 20 $ - $ $ $ _ - $ -' S_ _ 20
Personnel $ 36,000 $ - Add20NforpayroHservltts&taxes _ _ $
Business Cards/OJfltt Supplies $ 1,D00 $ I__ $
..
FinanGal Compliance $ 30,000 $ 20 Includes 5$000)orAnomey mnsulmnoa $ 20 $ 20
- _ Insurance $ 2,100
Travel&Meetings $ 1,000 -
Marketing&Community Outreach _$ 3,700 $ _ $ - $ - $ -_$ _ - $ - $ - $ -_
201712019 Foundation Report $ 1,200 $_ _ _ _ - $
Foundation Brochure $ _ $
Website Hosting/Mointennnce.$ 1,500 $ poidfor3 years-renewal in Fy2020/2021 I
Miscellaneous Marketing Exp 1 $ 1,000 5 $ -
_ Board Development&Training l $ 1,000 5 $ - $
Donor Development&Retention $ 2,200 $ 10 $ 30 $ - $ - $ - $ - $ - $ 10
Donor Reca_gnition Event$ 1,400
DonorAwards $ 600
Donor Plaques/Bricks $ 200 $ 10 5 Io _ I $ 10
Fundralsing Activities&Events S36,000 $ _ $ - 5_ - 5 - $ - $ - $ - S
Golf Tournament(2017) $ 25,000 $ _oaober22 xo18
Monte Carlo Night(20J8) $ 5,000 $ APd1272019
Fritz Coleman Performance $ 1,000 $ March 23,2019
Con, 5,000 —�$ $ - Forpotentiolfu[ure event $
Foundation Sponsored City Programs $ 54,000 $ _ $ 5 - $ -_$ - $ - $ - $
Lewis Fatally Playhouse $ 3,500 $ - Reduced basedon 18/19 season need
15,000RCCommunityTheat �WorldMuscSerles(3 Shows) $
8,000 $ _ - __ __ $ -
Bussingfor Underserved Students I - $ - New Funder Proposed _ _ _ _ $
Foundation Family Wknds/Flex Pack MSTC $ 20,000
Main Street Theatre Company $ 7,500 $ $
Community Programs $ 23,500 $ $ - $ - $ $ - $
H S Performing Arts Program5upport $ 3,000 $ $
Student Scholarship Program $ 5,000
Total Exeppendku res n0 so Pun ryGNI� $170,500 $ 30 $ 30 $__ - $ - $_ - $ - $ -_ $ 30
Budgeted Net Total $ 75 $ 4,735
Accrual Basis Rancho Cucamonga Community &Arts Foundation
Statement of Activity - Operating Budget
Fiscal Year 2018 - 2019
July 1 -31,2018
Type Date Name Memo Amount
Ordinary Income/Expense
Income
42000-INTEREST INCOME
42010-Investment Interest Income
Deposit 07/27/2018 Union Bank Investment interest earned-Federal Natl Mtg 3,375.00
Assn Note
Total 42010•Investment Interest Income 3,375.00
42020•LAW Interest Income
Deposit 07/13/2018 Interest-LAW Savings Account 1,389.91
Total 42020-LAW Interest Income 1,389.91
Tota142000- INTEREST INCOME 4,764.91
Total Income 4,764.91
Gross Profit 4,764.91
Expense
66000-PROGRAM EXPENSES
66100•Donor Expenses
66103-Theatre Seat Plaques
Credit Card 07/05/2018 Champion Awards& Theatre seat plate for the Ambrus family 9.70
Charge Specialties
Total 66103-Theatre Seat Plaques 9.70
Total 66100-Donor Expenses 9.70
Total 66000-PROGRAM EXPENSES 9.70
60000•ADMINISTRATIVE EXPENSES
60020-Taxes
60022•RCCAAF Federal and State Filing
Credit Card 07/10/2018 Secretary of State July 2018 Statement of Information-C1538709 20.00
Charge (Biennial renewal fee)
Total 60022-RCCAAF Federal and State Filing 20.00
Total 60020-Taxes 20.00
Totalj60000-ADMINISTRATIVE EXPENSES 20.00
Total Expense 29.70
Net Ordinary Income 4,735.21
Net Income 4,736.21
Foundation Financial Reports
FY 2017/2018
Grants Operating Budget
Budget Summary and
Statement of Activity
June 1 — 30, 2018
Accrual Basis Rancho Cucamonga Community &Arts Foundation
Statement of Activity - Operating Budget / Grants
Fiscal Year 2017 - 2018
June 1 -30,2018
Type Date Num Grant Source Payee Memo Amount
Ordinary Income/Expense
Income
46000•Corporate Grant Income
Sales 01241- Lewis Real Estate Lewis-FY 17/18
Receipt 06/27/2018 202 Corp:Restricted Specialty Series 20,000.00
Grant-FY 17/18 Sponsorship
Total 46000-Corporate Grant Income 20,000.00
Total Income 20,000.00
Gross Profit 20,000.00
Expense
67000 Grant Disbursements
67012 Supporting Sponsor
City of Rancho B of A Bank-FY17/18
Check 06/12/2018 11498 B of A Bank Cucamonga-V Supporting Sponsor for 3,500.00
BATG-In the Heights
Total 67012-Supporting Sponsor 3,500.00
67011 {Presenting Sponsor
B of A Bank-FY17/18
Check 06/12/2018 11497 B of A Bank City of Rancho Presenting Sponsor for 6,500.00
Cucamonga-V MainStreet Theatre Co-
Oh Freedom
Lewis Real Estate Lewis-FY17/18
City of Rancho Presenting Sponsor for
Check06/28/2018 11514 Corp:Restricted Cucamonga-V the Presented Series 20,000.00
Grant-FY 17/18 Concerts
Total 67011 -Presenting Sponsor 26,500.00
67004-Sponsored Tickets
City of Rancho LFP Sponsored Tickets-
Check 06/18/2018 11505 US Bank Cucamonga-V MainStreet Theatre Co- 988.00
Frederick
Edison City of Rancho Edison-LFP Sponsored
Check 06/18/2018 11506 International Cucamonga-V Tickets-Seussical 288.50
Check 06/18/2018 11507 Edison City of Rancho Edison-LFP Sponsored 144.00
International Cucamonga-V Tickets-Frederick
City of Rancho B of A Foundation-LFP
Check 06/18/2018 11508 B of A Foundation Cucamonga-V Sponsored Tickets- 1,206.00
Frederick
Edison City of Rancho Edison-Request for
Check 06/18/2018 11509 International Cucamonga-V leftover balance of 1.50
Edison sponsorship
Total 67004-Sponsored Tickets 2,628.00
Total 671000-Grant Disbursements 32,628.00
Total Expense 32,628.00
Net Ordinary Income -12,628.00
Net Income -12 628.00
Foundation Financial Reports
FY 2018/2019
' Grants Operating Budget
Budget Summary and
Statement of Activity
July 1 - 31, 2018
Accrual Basis Rancho Cucamonga Community & Arts Foundation
Statement of Activity - Operating Budget / Grants
Fiscal Year 2018 - 2019
July 1 -319 2018
Type Date Number Name Source Name Memo Amount
Net Income
NO ACTIVITY THIS PERIOD
Foundation Financial Reports
FY 2017/2018
Fundraising Events
All transactions for events held during fiscal year
Accrual Basis Rancho Cucamonga Community & Arts Foundation
Statement of Activity
Fundraising Events
All Transactions During Fiscal Year through June 30, 2018
Quakes Night Golf Tourney Quince de Bunco Monte Carlo Night
Sept 2,2017 October 23,2017 March 15,2018 April 28,2018 TOTAL
Ordinary Income/Expense
Income
41000•Program/Event Income 1,700.00 65,398.01 2,365.00 14,633.00 84,096.01
Total Income 1,700.00 65,398.01 2,365.00 14,633.00 84,096.01
Gross Profit 1,700.00 65,398.01 2,365.00 14,633.00 84,096.01
Expense
60000•Administrative Expenses 0.00 161.25 0.00 0.00 161.25
65000•Fundraising Expenses 0.00 23,593.87 0.00 5,185.60 28,779.47
Total Expense 0.00 23,755.12 0.00 5,185.60 28,940.72
Net Ordinary Income 1,700.00 41,642.89 2,365.00 9,447.40 55,155.29
Net Income 1,700.00 41,642.89 2,365.00 9,447.40 55,155.29
This total includes$400.00 of outstanding
sponsorship donations still to be received.Actual
proceeds as of June 30,2018 are$9,047.40.
Foundation Financial Reports
FY 2018/2019
Fundraising Events
All transactions for events held during fiscal year
Accrual Basis Rancho Cucamonga Community & Arts Foundation
Statement of Activity
Fundraising Events
All Transactions During Fiscal Year through July 31,2018
Fritz Coleman
Quakes Night Golf Tourney Performance Monte Carlo Night Cinco de Bunco
Sept 1,2018 October 22,2018 March 23,2019 April 27,2019 May 4,2019 TOTAL
Ordinary Income/Expense
Income
41000•Program I Event Income
Total Income
Gross Profit
Expense
60000•Administrative Expenses
66000•Fundraising Expenses
Total Expense
Net Ordinary Income
Net Income
Foundation Financial Reports
FY 2017/2018
A/R Aging Detail
As of June 30, 2018
Rancho Cucamonga Community &Arts Foundation
AIR Aging Detail
Fiscal Year 2017 - 2018
As of June 30,2018
Type Date Num Name Memo Due Date Class Aging Open
Balance
Current
Total Current
i
1-30
MC2Request for reimbursement to
Invoice 06/27/2018 T1302 - City of Rancho Foundation for paying for the 06/27/2018 Program Activities:Cultural 3 19.00
802 Cucamonga Buquet brick Center
Total 1-30
19.00
31-60
Total 31-60
61-90
Invoice 04/11/2018 MC2018- The Skye Group 2018 Monte Carlo Casino Night- 04/11/2018 Fundraising Activities:Monte 80 400.00
SG01 Inc Entertainment Sponsorship Carlo Casino Night:2018
Total 61 -90
400.00
>90
Total>90
TOTAL
419.00
i
I
Accrual Basis Rancho Cucamonga Community &Arts Foundation
Balance Sheet
Fiscal Year 2017 - 2018
As of June 30, 2018
June 30,2018
ASSETS
Current Assets
Checking/Savings
10010-PAL Checking Account 66,977.40
10020-LAW Account 292,986.86
Total Checking/Savings 359,964.26
Accounts Receivable
12000-Accounts Receivable 419.00
Total Accounts Receivable 419.00
Other Current Assets
13000-Investments-UnionBanc
13010-American Express BK FSB CD 250,000.00
13020-Capital One Bank USA NA CD 250,000.00
13030-American Express Centrn 250,000.00
13040-Fed Natl Mtg Assn-3135GOK93 700,868.00
13100-Fed Nati Mtg Assn-3135GOL68 900,000.00
Total 13000-Investments-UnionBanc 2,350,868.00
16000-Undeposited Funds 250.00
Total Other Current Assets 2,351,118.00
Total Current Assets 2,711,501.26
TOTAL ASSETS 2,711,601.26
LIABILITIES&EQUITY
Liabilities
Current Liabilities
Credit Cards
22000-US Bank Credit Cards
22030•US Bank Credit Card- 9817 254.99
Total 22000-US Bank Credit Cards 254.99
Total Credit Cards 254.99
Other Current Liabilities
23000-Library Donations 550.00
Total Other Current Liabilities 550.00
Total Current Liabilities 804.99
Total Liabilities 804.99
Equity
30000-Temp Restricted Net Assets 16,231.15
31000-Permanent Restricted Net Assets 2,350,868.00
32000-Unrestricted Net Assets 695,221.07
Net Income -351,623.95
Total Equity 2,710,696.27
TOTAL LIABILITIES&EQUITY 2,711,501.26
Foundation Financial Reports
FY 2018/2019
Foundation Balance Sheet
Standard Report
As of July 31, 2018
Accrual Basis Rancho Cucamonga Community &Arts Foundation
Balance Sheet
Fiscal Year 2018 - 2019
As of July 31,2018
July 31,2018
ASSETS
Current Assets
Checking/Savings
10010•PAL Checking Account 71,617.96
10020•LAW Account 294,376.77
Total Checking/Savings 365,994.73
Accounts Receivable
12000-Accounts Receivable 400.00
Total Accounts Receivable 400.00
Other Current Assets
13000•Investments-UnionBanc
13160•United States Treas Nts Note 899,718.75
13010•American Express BK FSB CD 250,000.00
13020•Capital One Bank USA NA CD 250,000.00
13030•American Express Centrn 250,000.00
13040-Fed Natl Mtg Assn-3136GOK93 700,868.00
Total 13000•Investments-UnionBanc 2,350,586.75
16000-Undeposited Funds -1,000.00
Total Other Current Assets 2,349,586.75
Total Current Assets 2,715,981.48
TOTAL ASSETS 2,716,981.48
LIABILITIES&EQUITY
Liabilities
Current Liabilities
Other Current Liabilities
23000•Library Donations 550.00
Total Other Current Liabilities 550.00
Total Current Liabilities 550.00
Total Liabilities 550.00
Equity
30000-Temp Restricted Net Assets 16,231.15
31000-Permanent Restricted Net Assets 2,350,868.00
32000•Unrestricted Net Assets 343,597.12
Net Income 4,735.21
Total Equity 2,715,431.48
TOTAL LIABILITIES&EQUITY 2,715,981.48
Foundation Financial Reports
FY 2017/2018
Foundation Financials
Summary Report
As of June 30, 2018
Rancho Cucamonga Community & Arts Foundation
Financial Summary
as of as of as of as of
June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
LAIF Balance $ 292,986.86 $ 437,831.40 $ 1,333,765.45 $ 432,390.90
Investments Total 2,350,868.00 2,350,868.00 1,450,868.00 2,348,425.00
Checking Balance 66,977.40 271,037.44 206,062.67 141,973.30
Affiliate's Balance 0.00 -357,580.15 -305,312.95 -267,034.84
Total Is 2,710,832.26 $ 2,702,156.69 1 $ 2,685,383.17 1 $ 21655,754.36
Foundation Financial Reports
FY 2018/2019
Foundation Financials
Summary Report
As of July 31, 2018
Rancho Cucamonga Community & Arts Foundation
Financial Summary
as of as of as of as of as of
July 31, 2018 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
ILAIF Balance $ 294,376.77 $ 292,986.86 $ 437,831.40 $ 1,333,765.45 $ 432,390.90
Investments Total 2,350,586.75 2,350,868.00 2,350,868.00 1.0450,868.00 21348,425.00
Checking Balance 71,617.96 66,052.40 271,037.44 206,062.67 141,973.30
Affiliate's Balance -657.00 0.00 -357,580.15 -305,312.95 -267,034.84
Total $ 2,715,924.48 $ 2,709,907.26 $ 2,702,156.69 $ 2,685,383.17 $ 2,655,754.36
Total balance due to Animal Center as of
07/31/2018 is$657:
- Foundation owes Animal Center$1,000.
- Animal Center owes Foundation$343.
f
I
Foundation Financial Reports
FY 2017/2018
PAL Checking Account
Reconciliation Summary and Detail
June 1 - 30, 2018
Rancho Cucamonga Community &Arts Foundation
Reconciliation Summary - PAL Checking Account
Fiscal Year 2017 - 2018
Period Ending June 29,2018
June 29,2018
Beginning Balance 132,814.45
Cleared Transactions
Checks and Payments-31 items -75,777.69
Deposits and Credits-4 items 7,429.59
Total Cleared Transactions -68,348.10
Cleared Balance 64,466.35
Uncleared Transactions
Checks and Payments-6 items -22,382.95
Deposits and Credits-2 items 23,969.00
Total Uncleared Transactions 1,586.05
Register Balance as of 06/2912018 66,052.40
New Transactions
Deposits and Credits-2 items 294.00
Total New Transactions 294.00
Ending Balance 66,346.40
Rancho Cucamonga Community &Arts Foundation
Reconciliation Detail - PAL Checking Account
Fiscal Year 2017 - 2018
Period Ending June 29,2018
Type Date Num Name Memo Clr Amount Balance
Beginning Balance 132,814.46
Cleared Transactions
Checks and Payments-31 items
Check 05/01/2018 11474 CVUSD LFP-Bus Reimbursement-EJ Marshall-Mainstreet's"Oh 4 -219.01 -219.01
Freedom"
Check 05/01/2018 11475 City of Rancho Cucamonga-V Donor Brick Walk-Invoice#2018CORCU3 4 -171.00 -390.01
LFP Bus Reimbursement-Liberty Elementary-Mainstreet's 4 -500.00 -890.01
Check 05/03/2018 11476 Victor Elementary School District "Oh Freedom"
Check 05/29/2018 11482 City of Rancho Cucamonga-V LFP sponsored school tickets for"Frederick"(Invoice# 4 -5,968.00 -6,858.01
1718KD03USB)
Check 05/29/2018 11483 City of Rancho Cucamonga-V LFP sponsored school tickets for"Frederick"(Invoice# 4 -2,472.00 -9,330.01
1718KD03MACY)
Check 05/29/2018 11487 Gobaton,Gabriella 2017/18 Scholarship Award 4 -1,000.00 -10,330.01
Check 05/29/2018 11493 Wright,Lauren Elizabeth 2017/18 Scholarship Award -1,000.00 -11,330.01
Check 05/29/2018 11488 Mineer,Max 2017/18 Scholarship Award ,1 -500.00 -11,830.01
Check 05/29/2018 11492 Thiel,Blake 2017/18 Scholarship Award -500.00 -12,330.01
Check 05/29/2018 11491 Takata,Leilani 2017/18 Scholarship Award -500.00 -12,830.01
Check 05/29/2018 11489 Mineer,Myles 2017/18 Scholarship Award -500.00 -13,330.01
Check 05/29/2018 11486 Camacho,Leyna 2017/18 Scholarship Award ,! -500.00 -13,830.01
Check 05/29/2018 11484 Victor Valley Union High School LFP bus reimbursement for Cobalt Institute of Math& -425.00 -14,255.01
Science for"Oh Freedom"(Trip#58)
Check 05/31/2018 11494 Lance,Soil&Lunghard LLP Preparation of 2017 tax returns-Invoice#26075 -2,500.00 -16,755.01
Check 05/31/2018 11495 Lance,Soil&Lunghard LLP Preparation of Form 1099's for year ending 12/31/2017- -280.00 -17,035.01
Invoice#26076
Check 06/12/2018 11502 City of Rancho Cucamonga-V FYI 7/18 Presenting Sponsor-Presented Season Shows -10,000.00 -27,035.01
Rancho Cucamonga Community & Arts Foundation
Reconciliation Detail - PAL Checking Account
Fiscal Year 2017 - 2018
Period Ending June 29,2018
Type Date Num Name Memo Clr Amount Balance
Check 06/12/2018 11499 City of Rancho Cucamonga-V FYI 7/18 Presenting Sponsor-World Music Concert Series -7,500.00 -34,535.01
(Nori,Mexika,Los Pinguos)
Check 06/12/2018 11503 City of Rancho Cucamonga-V FYI 7/18 Supporting Sponsor-MainStreet Theatre -7,500.00 -42,035.01
Company Season
Check 06/12/2018 11500 City of Rancho Cucamonga-V FY17/18 Presenting Sponsor-RC Community Theatre -7,500.00 -49,535.01
Season
Check 06/12/2018 11501 City of Rancho Cucamonga-V FYI 7/18 Presenting Sponsor-Broadway at the Gardens -6,925.00 -56,460.01
Check 06/12/2018 11497 City of Rancho Cucamonga-V FYI 7118 Presenting Sponsor for MainStreet Theatre Co- -6,500.00 -62,960.01
Oh Freedom
Check 06/12/2018 11498 City of Rancho Cucamonga-V FYI 7/18 Supporting Sponsor for BATG-In the Heights d -3,500.00 -66,460.01
Check 06/18/2018 11504 City of Rancho Cucamonga-V LFP Subsidized Opening Weekend&Family Flex Packs- -5,246.00 -71,706.01
Frederick
Check 06/18/2018 11510 City of Rancho Cucamonga-V Foundation Sponsored Tickets-MainStreet Theatre -1,420.00 -73,126.01
Company(Memo to request funds)
Check 06/18/2018 11508 City of Rancho Cucamonga-V LFP-Sponsored Tickets-Frederick d -1,206.00 -74,332.01
Check 06/18/2018 11505 City of Rancho Cucamonga-V LFP Sponsored Tickets-MainStreet Theatre Co-Frederick 4 -988.00 -75,320.01
Check 06/18/2018 11506 City of Rancho Cucamonga-V LFP Sponsored Tickets-Seussical J -288.50 -75,608.51
Check 06/18/2018 11507 City of Rancho Cucamonga-V LFP-Sponsored Tickets-Frederick 4 -144.00 -75,752.51
Check 06/18/2018 11511 Mitchell,Christen-V Reimbursement for postage fees paid to mail out -2.68 -75,755.19
Foundation's 2016/17 tax returns
Check 06/18/2018 11509 City of Rancho Cucamonga-V Request for leftover balance of Edison sponsorship -1.50 -75,756.69
Check 06/29/2018 Service Charge -21.00 -75,777.69
Total Checks and Payments -75,777.69 -75,777.69
Deposits and Credits-4 items
Rancho Cucamonga Community &Arts Foundation
Reconciliation Detail - PAL Checking Account
Fiscal Year 2017 - 2018
Period Ending June 29,2018
Type Date Num Name Memo Clr Amount Balance
Deposit 06/11/2018 Reimbursements for:Buquet,Senior Center,Leyna 954.59 954.59
Camacho's scholarship award
Deposit 06/25/2018 Theatre Seat Plaque 250.00 1,204.59
Deposit 06/27/2018 2018 Monte Carlo Casino Night 1,850.00 3,054.59
Deposit 06/28/2018 Investment Interest-UnionBanc d 4,375.00 7,429.59
Total Deposits and Credits 7,429.59 7,429.59
Total Cleared Transactions -68,348.10 -68,348.10
Cleared Balance -68,348.10 64,466.35
Uncleared Transactions
Checks and Payments-6 items
Check 05/29/2018 11490 Solorzano,Sabrina 2017/18 Scholarship Award -500.00 -500.00
Check 05/29/2018 11485 Calleros,Kaitlin 2017/18 Scholarship Award -500.00 -1,000.00
Check 06/12/2018 11496 John Adams Elementary Bus reimbursement-LFP"Frederick"(PO#187445) -500.00 -1.500.00
Check 06/20/2018 11512 Pacific Avenue Academy of Music LFP Bus Reimbursement-Frederick(Trip ID#2202) -237.04 -1,737.04
Check 06/25/2018 11513 City of Rancho Cucamonga-V 2018 Monte Carlo Night-Hard costs from Cultural Center -645.91 -2,382.95
Check 06/28/2018 11514 City of Rancho Cucamonga-V FY17/18 Presenting Sponsor for the Presented Series -20,000.00 -22,382.95
Concerts
Total Checks and Payments -22,382.95 -22,382.95
Deposits and Credits-2 items
Deposit 06/28/2018 2018 Monte Carlo Casino Night 3,969.00 3,969.00
Deposit 06/28/2018 Lewis Grant-FY17/18 Specialty Series Sponsorship 20,000.00 23,969.00
Total Deposits and Credits 23,969.00 23,969.00
Total Uncleared Transactions 1,586.05 1,586.05
Register Balance as of 06/29/2018 -66,762.05 66,052.40
New Transactions
Deposits and Credits-2 items
Rancho Cucamonga Community & Arts Foundation
Reconciliation Detail - PAL Checking Account
Fiscal Year 2017 - 2018
Period Ending June 29,2018
Type Date Num Name Memo Clr Amount Balance
Deposit 07/05/2018 Brick-Chuck Buquet 19.00 19.00
Deposit 07/12/2018 2018 Monte Carlo Casino Night 275.00 294.00
Total Deposits and Credits 294.00 294.00
Total New Transactions 294.00 294.00
Ending Balance -66 468.05 66,346.40
Foundation Financial Reports
FY 2018/2019
PAL Checking Account
Reconciliation Summary and Detail
July 1 - 31, 2018
Rancho Cucamonga Community &Arts Foundation
Reconciliation Summary - PAL Checking Account
Fiscal Year 2018 - 2019
Period Ending July 31,2018
July 31,2018
Beginning Balance 64,466.35
Cleared Transactions
Checks and Payments-6 items -921,149.35
Deposits and Credits-9 items 929,538.00
Total Cleared Transactions 8,388.65
Cleared Balance 72,855.00
Uncleared Transactions
Checks and Payments-3 items -1,237.04
Total Uncleared Transactions -1,237.04
Register Balance as of 07/31/2018 71,617.96
New Transactions
Checks and Payments-1 item -76.50
Deposits and Credits-2 items 212.00
Total New Transactions 135.50
Ending Balance 71,753.46
Rancho Cucamonga Community & Arts Foundation
Reconciliation Detail - PAL Checking Account
Fiscal Year 2018 - 2019
Period Ending July 31, 2018
Type Date Num Name Memo CIr Amount Balance
Beginning Balance 64,466.36
Cleared Transactions
Checks and Payments-6 items
Check 05/29/2018 11490 Solorzano,Sabrina 2017/18 Scholarship Award 4 -500.00 -500.00
Check 06/25/2018 11513 City of Rancho 2018 Monte Carlo Night-Hard costs from Cultural 4 -645.91 -1,145.91
Cucamonga-V Center
Check 06/28/2018 11514 City of Rancho FYI 7/18 Presenting Sponsor for the Presented Series 4 -20,000.00 -21,145.91
Cucamonga-V Concerts
Check 07/02/2018 Electronic US Bank Auto-pay on credit card account 4 -254.99 -21,400.90
Transfer 07/31/2018 Securities Purchase-United States Treas Nts Note 4 -899,718.75 -921,119.65
Check 07/31/2018 Electronic US Bank Auto-pay on credit card account 4 -29.70 -921,149.35
Total Checks and Payments -921,149.35 -921,149.35
Deposits and Credits-9 items
Deposit 06/28/2018 2018 Monte Carlo Casino Night 4 3,969.00 3,969.00
Deposit 06/28/2018 Lewis Grant-FYI 7/18 Specialty Series Sponsorship 4 20,000.00 23,969.00
Deposit 06/29/2018 2018 Monte Carlo Casino Night 4 275.00 24,244.00
Deposit 06/29/2018 2018 Monte Carlo Casino Night 4 650.00 24,894.00
Deposit 07/05/2018 Brick-Chuck Buquet 4 19.00 24,913.00
Deposit 07/24/2018 Animal Care Foundation 4 1,000.00 25,913.00
Deposit 07/27/2018 Investment Interest Earned 4 3,375.00 29,288.00
Deposit 07/30/2018 2018 Monte Carlo Casino Night 4 250.00 29,538.00
Transfer 07/31/2018 Redemption of Federal Natl Mtg Assn Note-3135GOL68 4 900,000.00 929,538.00
Total Deposits and Credits 929,538.00 929,538.00
Total Cleared Transactions 8,388.65 8,388.65
Cleared Balance 8,388.65 72,855.00
Uncleared Transactions
Checks and Payments-3 items
Rancho Cucamonga Community &Arts Foundation
Reconciliation Detail - PAL Checking Account
Fiscal Year 2018 - 2019
Period Ending July 31, 2018
Type Date Num Name Memo Cir Amount Balance
Check 05/29/2018 11485 Calleros,Kaitlin 2017/18 Scholarship Award -500.00 -500.00
Check 06/12/2018 11496 John Adams Bus reimbursement-LFP"Frederick"(PO#187445) -500.00 -1,000.00
Elementary
Check 06/20/2018 11512 Pacific Avenue LFP Bus Reimbursement-Frederick(Trip ID#2202) -237.04 -1,237.04
Academy of Music
Total Checks and Payments -1,237.04 -1,237.04
Total Uncleared Transactions -1,237.04 -1,237.04
Register Balance as of 07/31/2018 7,151.61 71,617.96
New Transactions
Checks and Payments-1 item
Check 08/08/2018 11515 City of Rancho US Bank-LFP Underserved Tickets-Invoice#CM02- -76.50 -76.50
Cucamonga-V 1718
Total Checks and Payments -76.50 -76.50
Deposits and Credits-2 items
Deposit 08/06/2018 Your Cause-Luis Munoz 62.00 62.00
Deposit 08/06/2018 Brick-Cultural Center 150.00 212.00
Total Deposits and Credits 212.00 212.00
Total New Transactions 135.50 135.50
Ending Balance 7,287.11 71,763.46
Foundation Financial Reports
FY 2017/2018
LAIF Account
Reconciliation Summary and Detail
June 1 - 301 2018
Rancho Cucamonga Community & Arts Foundation
Reconciliation Summary - LAW Account
Fiscal Year 2017 - 2Q18
Period Ending July 5,2018
July 5,2018
Beginning Balance 292,986.86
Cleared Balance 292,986.86
Register Balance as of 07/05/2018 292,986.86
Ending Balance 292,986.86
Rancho Cucamonga Community &Arts Foundation
Reconciliation Detail - LAW Account
Fiscal Year 2017 - 2018
Period Ending July 5,2018
Type Date Number Name Clear Amount Balance
Beginning Balance 292,986.86
Cleared Balance 292,986.86
Register Balance as of 07/05/2018 292,986.86
Ending Balance 292,986.86
Foundation Financial Reports
FY 2018/2019
LAIF Account
Reconciliation Summary and Detail
July 1 - 31, 2018
Rancho Cucamonga Community &Arts Foundation
Reconciliation Summary - LAW Account
Fiscal Year 2018 - 2019
Period Ending August 7,2018
August 7,2018
Beginning Balance 292,986.86
Cleared Transactions
Deposits and Credits-1 item 1,389.91
Total Cleared Transactions 1,389.91
Cleared Balance 294,376.77
Register Balance as of 08/07/2018 294,376.77
Ending Balance 294.376.77
Rancho Cucamonga Community & Arts Foundation
Reconciliation Detail - LAIF Account
Fiscal Year 2018 - 2019
Period Ending August 7,2018
Type Date Memo Clr Amount Balance
Beginning Balance 292,986.86
Cleared Transactions
Deposits and Credits-1 item
Deposit 07/13/2018 Interest 1,389.91 1,389.91
Total Deposits and Credits 1,389.91 1,389.91
Total Cleared Transactions 1,389.91 1,389.91
Cleared Balance 1,389.91 294,376.77
Register Balance as of 08/07/2018 1,389.91 294,376.77
Ending Balance 1,389.91 294,376.77
RANCHO CUCAMONGA
COMMUNITY
&4RTSFOUNDATION
STAFF REPORT
DATE: August 22, 2018
TO: Rancho Cucamonga Community &Arts Foundation Executive Committee
FROM: Jennifer Hunt Gracia, Community Services Director
INITIATED BY: Christen Mitchell, Management Analyst II
SUBJECT: LSL Engagement Letter for 2017/2018 Fiscal Year Tax Services
RECOMMENDATION:
Staff recommends the Committee review and discuss the engagement letter from LSL CPAs and
Advisors for 2017/2018 fiscal year tax services.
BACKGROUND:
According to staff records, LSL has prepared the Foundation's taxes since 2008. Traditionally,
LSL sends a letter of engagement which outlines each party's responsibilities for that year's tax
preparation. The letter of engagement must be signed by the Foundation Chair, authorizing LSL's
services. Upon LSL's receipt of signed letter staff may begin working with LSL on said tax year's
return.
ANALYSIS:
LSL has provided a proposal for the Foundation's 2017/2018 tax preparation. The proposal
outlines the tax services LSL will provide, the Foundation's responsibilities, LSL's firm
associations, and describes their Administration policies, fees and other miscellaneous
information regarding tax returns. The filing deadline for the tax return is November 15". To meet
this filing deadline, LSL must receive the Foundation's information by October 15t". Staff is
prepared to send LSL the Accountant's Copy of QuickBooks and begin completing Form 990 for
the 2017/2018 fiscal year. This letter is attached for Board consideration.
FISCAL IMPACT:
The attached agreement states, "Our professional fee for our tax services will not exceed $2,500."
Recently paid to LSL CPAs and Advisors:
$2,500: 2016/2017 Tax Services
$280.00: Form 1099 preparation for calendar year 2017
Exhibits:
Exhibit A— LSL CPAs and Advisors 2017/2018 Fiscal Year Engagement Letter for tax services
Page 1 of 1
LSL:e""
Tuesday,July 3,2018
Rancho Cucamonga Community&Arts Foundation
Christen Mitchell
PO Box 807
Rancho Cucamonga, CA 91729
YOU MUST READ, SIGN AND RETURN THIS LETTER TO US
Lance, Soll, Lunghard, LLP ("LSL, LLP") is pleased to provide Rancho Cucamonga Community & Arts
Foundation ("Organization)with the professional services described below.This letter, and the attached Terms
and Conditions Addendum (collectively, "Agreement'), confirms our understanding of the terms and objectives of
our engagement and the nature and limitations of the services we will provide for the year ending June 30,2018.
The engagement between you and our firm will be governed by the terms of this Agreement.
OUR TAX SERVICES
We will prepare the Organization's federal and requested state income tax returns for the year ending June 30,
2018,and the related estimates which you will be required to file from the information you will furnish to us.
Our policy is to a-file all tax returns whenever possible. We will provide you with a copy of your final returns for
review prior to electronic transmission. The tax authorities require that you sign an a-file authorization form
indicating that you have reviewed the return, it is correct to the best of your knowledge, and you authorize us to
submit it electronically. We cannot transmit any return until we have the appropriate signed authorizations. If
you would rather not a-file, please let us know. Paper copies will be provided for you to sign and mail. In the
event your returns are not a-filed you will have final responsibility for mailing your returns.
The filing deadline for the tax returns is November 15. In order to meet this filing deadline, the information
needed to complete the returns should be received in this office no later than October 15. If you cannot submit
all your tax filing information by the deadline, please notify us in writing so we can apply for extensions of time to
file your tax returns. We will use the information available to us at the time to prepare the extension. An
extension, however, only provides you with an extension to file the return itself, not an extension to pay any
potential tax due. Taxes paid after the due date will result in penalties and interest.
We will not prepare any tax returns except those identified above, without your written request, and our written
consent to do so. We will prepare your tax returns based upon information and representations that you provide
to us. We will not audit or otherwise verify the data you submit to us, although we may ask you to clarify certain
information.
We will prepare the above-referenced tax returns solely for filing with the Internal Revenue Service ("IRS') and
state and local tax authorities as identified above. Our work is not intended to benefit or influence any third
party, either to obtain credit or for any other purpose. You agree to indemnify and hold us harmless with respect
to any and all claims arising from the use of the tax returns for any purpose other than filing with the IRS and
state and local tax authorities regardless of the nature of the claim, including negligence of any party.
PrimeGlobal
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EXHIBIT A
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Your tax returns may be selected for review by the taxing authorities. Our fee does not include responding to
inquiries by taxing authorities, and you understand that we are not responsible for IRS or state disallowance of
doubtful deductions or inadequately supported documentation, nor for resulting taxes, penalties and interest.Any
items which may be resolved against you by the examining agent are subject to certain rights of appeal. In the
event of such government tax examination, we will be available upon request to represent you and will render
additional invoices for the time and expenses incurred.
ADMINISTRATION. FEES,AND OTHER
Our responsibility under this engagement is limited to the period covered by our services and does not extend to
matters that may arise during any later periods for which we are not engaged. The timing of our work is
dependent upon the timely receipt of the information we request from you. Our services will conclude with the
delivery of your tax returns to you, upon termination of the engagement by written notification by either party, or
one year from the execution date of this Agreement,whichever is earliest.
Our professional fee for our tax services will not exceed $2,500. This fee depends upon the timely
delivery, availability, quality, and completeness of the information you provide to us. You agree that you will
deliver all records requested and respond to all inquiries made by our staff to complete this engagement on a
timely basis. Our invoices for these fees will be rendered each month as work progresses and are payable on
presentation. A 1.5% per month finance charge will be assessed on any invoices not paid within 30 days of the
invoice date.
You may request that we perform additional services not contemplated by this Agreement. If this occurs,we will
communicate with you regarding the scope of the additional services and the estimated fee. We also may issue
a separate Agreement covering the additional services. In the absence of any other written communication from
us documenting such additional services, our services will continue to be governed by the terms of this
Agreement.
We appreciate the opportunity to be of service to you and believe this Agreement accurately summarizes the
significant terms of our engagement. If you have any questions, please let us know. Please sign this Agreement
and return it to us to acknowledge your acceptance.
We are pleased to have you as a client and look forward to a long and mutually satisfying relationship.
Very truly yours,
LANCE,SOLL, &LUNGHARD, LLP
Accepted:
Signature:
Organization Name:
Officer Name:
Title:
Date:
Lance,Soll& Lunghard,LLP("LSL CPAs")
Terms and Conditions Addendum
This addendum to the engagement letter describes our standard terms and conditions ("Terms and Conditions")
related to our provision of services to you.This addendum and the accompanying engagement letter comprise your
agreement with us ("Agreement"). If there is any inconsistency between the engagement letter and this Terms and
Conditions Addendum,the engagement letter will prevail to the extent of the inconsistency.
For the purposes of this Terms and Conditions Addendum, any reference to"we,""us,"or"our"is a reference to LSL
CPAs, and any reference to "you," or"your" is a reference to the party or parties that have engaged us to provide
services. References to"Agreement°mean the engagement letter or other written document describing the scope of
services,any other attachments incorporated therein,and this Terms and Conditions Addendum.
Billing and Payment Terms -- Our firm's practice may require payment of a retainer upon execution of this
Agreement. You agree that the retainer will be fully earned as our professional time to complete the engagement is
incurred. The retainer will be applied to the final billing and any unused balance will be refunded at the end of the
engagement.
We will bill you for our professional fees and out-of-pocket costs each month as work progresses. Payment is due
within 30 days of the invoice date. If payment is not received by the due date, you will be assessed interest charges
of 1.5%per month on the unpaid balance.
We reserve the right to suspend or terminate our work for non-payment of fees. In accordance with our firm policies,
work may be suspended if your account becomes 90 days or more overdue and will not be resumed until your
account is paid in full. If our work is suspended or terminated, you agree that we will not be responsible for your
failure to meet governmental and other deadlines, for any penalties or interest that may be assessed against you
resulting from your failure to meet such deadlines, and for any other damages (including but not limited to
consequential, indirect, lost profits, or punitive damages)incurred as a result of the suspension or termination of our
services.
Electronic Data Communication and Storage--In the interest of facilitating our services to you,we may send data
over the Internet, or store electronic data via computer software applications hosted remotely on the Internet or utilize
cloud-based storage. Your confidential electronic data may be transmitted or stored using these methods. We may
use third party service providers to store or transmit this data,such as providers of tax return preparation software.In
using these data communication and storage methods, our firm employs measures designed to maintain data
security.We use reasonable efforts to keep such communications and electronic data secure in accordance with our
obligations under applicable laws, regulations, and professional standards.We require our third party vendors to do
the same.
You recognize and accept that we have no control over the unauthorized interception or breach of any
communications or electronic data once it has been transmitted or if it has been subject to unauthorized access while
stored, notwithstanding all reasonable security measures employed by us or our third party vendors.You consent to
our use of these electronic devices and applications and submission of confidential client information to third party
service providers during this engagement.
Client Portals--To enhance our services to you, we will utilize ShareFile and CCH Access, a collaborative, virtual
workspace in a protected, online environment. ShareFile and CCH Access permit real-time collaboration across
geographic boundaries and time zones and allows LSL CPAs and you to share data, engagement information,
knowledge, and deliverables in a protected environment. In order to use ShareFile and CCH Access, you will be
required to execute a client portal agreement and agree to be bound by the terms, conditions and limitations of such
agreement.
You agree that we have no responsibility for the activities of ShareFile and CCH Access and agree to indemnify and
hold us harmless with respect to any and all claims arising from or related to the operation of ShareFile and CCH
Access. While ShareFile and CCH Access back up your files to a third party server, we recommend that you also
maintain your own backup files.
If you decide to transmit your confidential information to us in a manner other than a secure portal, you accept
responsibility for any and all unauthorized access to your confidential information. If you request that we transmit
confidential information to you in manner other than a secure portal,you agree that we are not responsible for(a)any
loss or damage of any nature, whether direct or indirect, that may arise as a result of our sending confidential
information in a manner other than a secure portal,and(b)any damages arising as a result of any virus being passed
on or with,or arising from any alteration of,any email message.
Third Party Service Providers or Subcontractors -- In the interest of enhancing our availability to meet your
professional service needs while maintaining service quality and timeliness,we may use a third party service provider
to assist us in the provision of services to you, which may include receipt of your confidential information. This
provider has established procedures and controls designed to protect client confidentiality and maintain data security.
As the paid provider of professional services, our firm remains responsible for exercising reasonable care in providing
such services,and our work product will be subjected to our firm's customary quality control procedures. By accepting
the terms and conditions of our engagement, you are providing your consent and allow us to disclose your
confidential information to a third party service provider, if such disclosure is necessary to deliver professional service
or provide support services to our firm.
Independent Contractor--When providing services to your company, we will be functioning as an independent
contractor and in no event will we or any of our employees be an officer of you, nor will our relationship be that of joint
venturers, partners, employer and employee, principal and agent, or any similar relationship giving rise to a fiduciary
duty to you.
Firm Associations—The firm is a member of PrimeGlobal, a global association of independent accounting firms.
No PrimeGlobal member firm is an agent or partner of the association or of any other member firm. No PrimeGlobal
member firm has the authority to enter into any legal obligations on behalf of the association or any other member
firm. If the firm introduces you to another PrimeGlobal member firm, this firm specifically denies any liability for any
work performed by that firm. You should make your own contractual arrangements with that firm for work that they
perform. The fact that you may have been introduced to us by another PrimeGlobal member firm does not make that
firm,its partners or its employees responsible for any of our acts or omissions.
The firm is not the agent or partner of PrimeGlobal or any other member firm, and does not have the authority to
enter into legal obligations on behalf of either the association or any other member firm thereof. You agree that this
firm has the sole liability for any work performed under this engagement and you undertake not to make any claim or
bring any proceedings against either PrimeGlobal or any other member of PrimeGlobal in relation to work covered by
this engagement.
Newsletters and Similar Communications -- We may send newsletters, emails, explanations of technical
developments or similar communications to you. These communications are of a general nature and should not be
construed as professional advice.We may not send all such communications to you. These communications do not
continue a client relationship with you, nor do they constitute advice or an undertaking on our part to monitor issues
for you.
Records Management—
Record Retention and Ownership
We will return all of your original records and documents provided to us at the conclusion of the engagement. Your
records are the primary records for your operations and comprise the backup and support for your work product. Our
copies of your records and documents are not a substitute for your own records and do not mitigate your record
retention obligations under any applicable laws or regulations.
Workpapers and other documents created by us are our property and will remain in our control. Copies are not to be
distributed without your written request and our prior written consent. Our workpapers will be maintained by us in
accordance with our firm's record retention policy and any applicable legal and regulatory requirements.A copy of our
record retention policy is available upon request.
Our firm destroys workpaper files after a period of seven(7)years from the completion of the engagement as long as
you remain a client with us. Catastrophic events or physical deterioration may result in damage to or destruction of
our firm's records,causing the records to be unavailable before the expiration of the retention period as stated in our
record retention policy.
Working Paper Access Requests by Regulators and Others
State, federal and foreign regulators may request access to or copies of certain workpapers pursuant to applicable
legal or regulatory requirements. Requests also may arise with respect to peer review, an ethics investigation, or the
sale of our accounting practice. If requested, access to such workpapers will be provided under the supervision of
firm personnel. Regulators may request copies of selected workpapers to distribute the copies or information
contained therein to others,including other governmental agencies.
If we receive a request for copies of selected workpapers, provided that we are not prohibited from doing so by
applicable laws or regulations, we agree to inform you of such request as soon as practicable.You may, within the
time permitted for our firm to respond to any request, initiate such legal action as you deem appropriate,at your sole
expense, to attempt to limit the disclosure of information. If you take no action within the time permitted for us to
respond, or if your action does not result in a judicial order protecting us from supplying requested information, we
may construe your inaction or failure as consent to comply with the request.
If we are not a party to the proceeding in which the information is sought, you agree to reimburse us for our
professional time and expenses, as well as the fees and expenses of our legal counsel, incurred in responding to
such requests.This paragraph will survive termination of this Agreement.
Summons or Subpoenas
All information you provide to us in connection with this engagement will be maintained by us on a strictly confidential
basis.
If we receive a summons or subpoena which our legal counsel determines requires us to produce documents from
this engagement or testify about this engagement, provided that we are not prohibited from doing so by applicable
laws or regulations,we agree to inform you of such summons or subpoena as soon as practicable. You may,within
the time permitted for our firm to respond to any request, initiate such legal action as you deem appropriate, at your
sole expense,to attempt to limit discovery. If you take no action within the time permitted for us to respond, or if your
action does not result in a judicial order protecting us from supplying requested information, we may construe your
inaction or failure as consent to comply with the request.
If we are not a party to the proceeding in which the information is sought, you agree to reimburse us for our
professional time and expenses, as well as the fees and expenses of our legal counsel, incurred in responding to
such requests.This paragraph will survive termination of this Agreement.
Disclaimer of Legal and Investment Advice -- Our services under this Agreement do not constitute legal or
investment advice unless specifically agreed to in the Engagement Objective and Scope section of this Agreement.
We recommend that you retain legal counsel and investment advisors to provide such advice.
Referrals-- In the course of providing services to you, you may request referrals to attorneys, brokers, investment
advisors or other professionals. We may identify a professional or professionals for your consideration. However,
you are responsible for evaluating, selecting, and retaining any professional and determining if the professional can
meet your needs. You agree that we have no responsibility for and will not oversee the activities of any professional
to whom we refer you.
Brokerage or Investment Advisory Statements--If you provide our firm with copies of brokerage(or investment
advisory) statements and/or read-only access to your accounts, we will use the information solely for the purpose
described in the Engagement Objective and Scope section of the engagement letter.We will rely on the accuracy of
the information provided in the statements and will not undertake any action to verify this information. We will not
monitor transactions, investment activity, provide investment advice, or supervise the actions of the entity or
individuals entering into transactions or investment activities on your behalf. We recommend you receive and
carefully review all statements upon receipt, and direct any questions regarding account activity to your banker,
broker or investment advisor.
Other Income, Losses and Expenses-- If you realized income, loss or expense from a business or supplemental
income or loss, the reporting requirements of federal and state income tax authorities apply to such income, loss or
expense. You are responsible for complying with all applicable laws and regulations pertaining to such operations,
including the classification of workers as employees or independent contractors and related payroll tax and
withholding requirements.
Accountant— Client Privilege -- Internal Revenue Code §7525, Confidentiality Privileges Related to Taxpayer
Communication, provides a limited confidentiality privilege covering certain tax advice embodied in taxpayer
communications with federally authorized tax practitioners in certain limited situations.
This privilege is limited in several important respects. For example, this privilege does not apply to your records,
which you are required to retain in support of your tax return. In addition, the privilege does not apply to state tax
issues,state tax proceedings,private civil litigation proceedings,or criminal proceedings.
While we will cooperate with you with respect to the privilege,asserting the privilege is your responsibility. Inadvertent
disclosure of otherwise privileged information may result in a waiver of the privilege. Please contact us immediately if
you have any questions or need further information about this CPA-client privilege.
Limitations on Oral and Email Communications--We may discuss with you our views regarding the treatment of
certain items or decisions you may face. We may also provide you with information in an email. Any advice or
information delivered orally or in an email(rather than through a memorandum delivered as an email attachment)will
be based upon limited research and a limited discussion and analysis of the underlying facts.Additional research or a
more complete review of the facts may affect our analysis and conclusions.
Due to these limitations and the related risks, it may or may not be appropriate to proceed with any decision solely on
the basis of any oral or email communication. You accept all responsibility, except to the extent caused by the gross
negligence or willful misconduct of LSL CPAs, for any loss, cost or expense resulting from your decision (i) not to
have us perform the research and analysis necessary to reach a more definitive conclusion and(ii)to instead rely on
an oral or email communication. The limitation in this paragraph will not apply to an item of written advice that is a
deliverable of a separate engagement. If you wish to engage us to provide formal advice on a matter on which we
have communicated orally or by email,we will confirm this in a separate engagement letter.
Management Responsibilities -- While LSL CPAs can provide assistance and recommendations, you are
responsible for management decisions and functions, and for designating an individual with suitable skill, knowledge
or experience to oversee any services that LSL CPAs provides.You are responsible for evaluating the adequacy and
results of the services performed and accepting responsibility for such services. You are ultimately responsible for
establishing and maintaining internal controls,including monitoring ongoing activities.
Conflicts of interest -- If we, in our sole discretion, believe a conflict has arisen affecting our ability to deliver
services to you in accordance with either the ethical standards of our firm or the ethical standards of our profession,
we may be required to suspend or terminate our services without issuing our work product. You agree that we will
not be responsible for your failure to meet governmental and other deadlines, and for any penalties or interest that
may be assessed against you resulting from your failure to meet such deadlines, and for any other damages
(including but not limited to consequential, indirect, lost profits, or punitive damages) incurred as a result of the
suspension or termination of our services.
Alternative Dispute Resolution -- If a dispute arises out of or relates to the Agreement including the scope of
services contained herein, or the breach thereof, and if the dispute cannot be settled through negotiation,the parties
agree first to try to settle the dispute by mediation administered by the American Arbitration Association ("AAA")
under the AAA Professional Accounting and Related Services Dispute Resolution Rules before resorting to
arbitration, litigation, or some other dispute resolution procedure.The mediator will be selected by agreement of the
parties. If the parties cannot agree on a mediator, a mediator shall be designated by the AAA. Any mediator so
designated must be acceptable to all parties.The mediation will be conducted in California.
The mediation will be treated as a settlement discussion and, therefore, will be confidential. The mediator may not
testify for either party in any later proceeding related to the dispute. No recording or transcript shall be made of the
mediation proceedings.The costs of any mediation proceedings shall be shared equally by all parties.Any costs for
legal representation shall be borne by the hiring party.
Limitation of Liability--LSL CPAs liability for all claims,damages, and costs arising from this engagement is limited
to three(3)times the total amount of fees paid by you to LSL CPAs for services rendered under this agreement.
Indemnification--You agree to indemnify, defend, and hold harmless LSL CPAs and any of its partners, principals,
officers,employees,agents or assigns with respect to any and all claims arising from this engagement, regardless of
the nature of the claim,and including the negligence of any party, excepting claims arising from the gross negligence
or intentional acts of the LSL CPAs.
Designation of Venue and Jurisdiction--In the event of a dispute,you and we agree that the courts of the state of
California shall have jurisdiction, and we agree to submit all disputes to the Superior Court of Orange, California,
which is the proper and most convenient venue for resolution. We also agree that the law of the state of California
shall govern all such disputes.
Insurance-- LSL CPAs shall, during the term of the engagement and for seven (7)years after termination of same
by either you or us, maintain in full force and effect, accountants professional liability insurance coverage from an
insurance carrier or carriers licensed to conduct business in the state of California. As of the policy effective date,
such insurance carrier(s) shall be rated A- (Excellent), by A.M. Best with a Financial Size Category of Class VII or
greater.Premiums for said insurance policy shall be paid by LSL CPAs.
Upon your written request, LSL CPAs shall furnish certificates of insurance for the required professional liability
insurance coverage. Such certificate of insurance shall indicate the minimum limits of liability per claim and in the
aggregate as required by you.
Proprietary Information -- You acknowledge that proprietary information, documents, materials, management
techniques and other intellectual property we use are a material source of the services we perform and were
developed prior to our association with you.Any new forms, software,documents or intellectual property we develop
during this engagement for your use shall belong to us, and you shall have the limited right to use them solely within
your business. All reports, templates, manuals, forms, checklists, questionnaires, letters, agreements and other
documents which we make available to you are confidential and proprietary to us. Neither you, nor any of your
agents, will copy, electronically store, reproduce or make available to anyone other than your personnel, any such
documents.This provision will apply to all materials whether in digital,"hard copy"format or other medium.
Statute of Limitations--You agree that any claim arising out of this Agreement shall be commenced within one(1)
year of the delivery of the work product to you, regardless of any longer period of time for commencing such claim as
may be set by law.A claim is understood to be a demand for money or services,the service of a suit,or the institution
of arbitration proceedings against LSL CPAs.
Termination and Withdrawal--We reserve the right to withdraw from the engagement without completing services
for any reason, including, but not limited to, your failure to comply with the terms of this Agreement or as we
determine professional standards require.
If this Agreement is terminated before services are completed, you agree to compensate us for the services
performed and expenses incurred through the effective date of termination.
Assignment--All parties acknowledge and agree that the terms and conditions of this Agreement shall be binding
upon and inure to the parties'successors and assigns,subject to applicable laws and regulations.
Severability—If any portion of this Agreement is deemed invalid or unenforceable, said finding shall not operate to
invalidate the remainder of the terms set forth in this Agreement.
Code of Professional Conduct--To ensure that LSL CPAs independence is not impaired under the AICPA Code of
Professional Conduct, you agree to inform the engagement partner before entering in any substantive employment
discussions with any of our personnel.
In accordance with Section 54 of the Board of Accountancy Regulations for the State of California,this shall provide
notice that Lance, Soll & Lunghard CPAs, Certified Public Accountants, is licensed by the California Board of
Accountancy.
Entire Agreement -- The engagement letter, including this Terms and Conditions Addendum and any other
attachments, encompasses the entire agreement of the parties and supersedes all previous understandings and
agreements between the parties, whether oral or written. Any modification to the terms of this Agreement must be
made in writing and signed by both parties.
LSL CPAs
Terms and Conditions Addendum Attachment
The following is applicable to Tax Preparation engagements.
This addendum attachment to the engagement letter describes our standard terms and conditions ("Terms and
Conditions") related to our provision of TAX services to you. This addendum attachment and the accompanying
engagement letter comprise your agreement with us ("Agreement"). If there is any inconsistency between the
engagement letter and this Terms and Conditions Addendum Attachment, the engagement letter will prevail to the
extent of the inconsistency.
For the purposes of this Terms and Conditions Addendum Attachment,any reference to"firm", "we,""us,"or"our"is a
reference to LSL CPAs, and any reference to"you,"or"your"is a reference to the party or parties that have engaged
us to provide services. References to"Agreement"mean the engagement letter or other written document describing
the scope of services, any other attachments incorporated therein, and this Terms and Conditions Addendum
Attachment.
Our Responsibilities
Unless otherwise noted, we will perform our services in accordance with the Statements on Standards for Tax
Services ("SSTS") issued by the American Institute of Certified Public Accountants ("AICPA") and U.S. Treasury
Department Circular 230 ("Circular 230"). It is our duty to perform services with the same standard of care that a
reasonable income tax preparer would exercise in this type of engagement.
We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that
could be construed as assuming management responsibilities. We will advise management with regard to tax
positions taken in the preparation of the tax return, but management must make all decisions with regard to those
matters.
We will perform limited analysis of your accounts, as we deem necessary in our professional judgment, solely for
purpose of preparing your tax returns. We may propose adjusting journal entries to your accounts. Our analysis
cannot be relied upon to discover defalcations or irregularities; however, we will inform you if we discover such
defalcations or irregularities. If, during our work, we discover information that affects prior-year tax returns, we will
make you aware of the facts. However, we cannot be responsible for identifying all items that may affect prior-year
returns. If you become aware of such information during the year, please contact us to discuss the best resolution of
the issue.We will be happy to prepare appropriate amended returns as a separate engagement.
Your tax returns may be selected for review by the taxing authorities. Our fee does not include responding to inquiries
by taxing authorities, and you understand that we are not responsible for IRS or state disallowance of doubtful
deductions or inadequately supported documentation, or for resulting taxes, penalties, and interest. Any proposed
adjustments by the examining agent are subject to certain rights of appeal. In the event of such government
examinations or correspondence,we will be available upon request to represent you and will render additional billings
for the time and expenses incurred based upon our then hourly rates.
We will use professional judgment in resolving questions where the tax law is unclear, or where there may be
conflicts among the taxing authorities' interpretations of the law and other supportable positions. When possible, we
will resolve such questions in your favor if there is reasonable justification for doing so.We will explain the possible
positions which may be taken on your return.We will adopt whatever position you request on your return as long as it
is consistent with the laws, regulations, and interpretations which have been promulgated.In the event, however,that
you ask us to take a tax position that in our professional judgment will not meet the applicable laws and standards as
promulgated,we reserve the right to stop work and shall not be liable to you for any damages that occur as a result of
ceasing to render services. If the taxing authorities should later contest the position taken on your income tax return,
there may be assessment of additional tax, plus interest and penalties.We assume no liability for any such additional
penalties or assessment.
In order to ensure your returns are accurate and avoid possible underpayment or late payment penalties, we may
attempt to verify with federal and state taxing authorities whether all of your tax payments have been received and
properly applied to your account. By your signature below,you authorize us to verify the amounts and dates of the tax
payment information you provide.
During the process of preparing your tax returns it may be necessary to allow our software provider to temporarily
have access to your financial information in order to produce a complete and accurate return. Your information will
not be retained by our software provider. By your signature below, you authorize us to disclose to our software
provider this information.
We will be available to answer your inquiries on specific tax matters and to consult with you on income tax planning.
You should be aware, however,that our advice to you cannot be relied upon unless requested and provided to you in
writing.
We will not be responsible for advising you with respect to independent contractor status as part of our services. If
you have any questions regarding the classification of employees versus independent contractors, we strongly
encourage you to consult with legal counsel experienced in employment practice matters.
Your Responsibilities
You have the final responsibility for the income tax returns and therefore you should review them carefully before
signing and mailing them or signing and returning the a-file authorization forms to our office.
You are responsible for the safeguarding of assets,the proper recording of transactions in the books of accounts,the
substantial accuracy of the financial records, and the full and accurate disclosure of all relevant facts affecting the
return(s)to us.
It is your responsibility to provide us with all the information required for the preparation of complete and accurate
returns. You should retain all the documents, canceled checks and other data that form the basis of income and
deductions, unless arrangements have been made for us to retain this information for you in our files. They may be
necessary to prove the accuracy and completeness of the returns to a taxing authority.
The IRS requires that your records include the amount, time, place, business purpose and business relationship of
any expenses for travel, entertainment and meals claimed on your return. By your signature below, you are
confirming to us that you have documentation for auto use,travel,gifts,meals and entertainment. In addition,you are
confirming that you have records of your mileage for business purposes if any auto-related business expenses are
claimed on your return. You are also confirming that you have written substantiation for charitable contributions of
$250 or more from the charitable organization. If you have any questions as to the type of records required, please
ask us for advice in that regard.
State and Local Tax Filing Obligations -- You are responsible for determining your state and local tax filing
obligations with respect to all state and local authorities including,but not limited to income,franchise,sales and use,
and excise taxes. You agree that LSL CPAs has no responsibility to research these obligations or to inform you of
them. These services are available at additional cost. If you wish to engage us to perform these services, our firm
requires that you sign an engagement letter detailing our agreement to perform such services prior to any such
services being rendered.
U.S.Filing Obligations Related to Foreign Financial Assets--As part of your filing obligations,you are required to
report the maximum value of specified foreign financial assets, which include financial accounts with foreign
institutions and certain other foreign non-account investment assets that exceed certain thresholds. You are
responsible for informing us of all foreign assets,so we may properly advise you regarding your filing obligations.
These assets include any ownership interests you directly or indirectly hold in businesses located in a foreign country,
and any assets or financial accounts located in a foreign country over which you have signature authority. Based
upon the information you provide,this information will be used to calculate any applicable foreign tax credits. We will
also use this data to inform you of any additional filing requirements,which may include FinCEN Form 114, Report of
Foreign Bank and Financial Accounts("FEAR"). Failure to file required forms can result in the imposition of both civil
and criminal penalties, which may be significant. The FBAR is not a tax return and its preparation is not within the
scope of this engagement. If you ask us to prepare the FEAR, we will confirm this representation in a separate
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Foreign Filing Obligations--You are responsible for complying with the tax filing requirements of any other country.
You acknowledge and agree that we have no responsibility to raise these issues with you and that foreign filing
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Substantial Understatement Penalties--The law provides for a penalty to be imposed where a taxpayer makes a
substantial understatement of their tax liability. For S corporation and individual taxpayers, a substantial
understatement exists when the understatement for the year exceeds the greater of 10 percent of the tax required to
be shown on the return, or$5,000.The penalty is 20 percent of the tax underpayment. Because an S corporation is
an entity in which tax attributes flow through to its shareholders, the penalty for substantial understatement of tax
relating to S corporation items may be imposed on the shareholder. Taxpayers may seek to avoid all or part of the
penalty by showing(1)that they acted in good faith and there was reasonable cause for the understatement, (2)that
the understatement was based on substantial authority,or(3)that the relevant facts affecting the item's tax treatment
were adequately disclosed on the return.You agree to advise us if you wish disclosure to be made in your returns or
if you desire us to identify or perform further research with respect to any material tax issues for the purpose of
ascertaining whether, in our opinion, there is "substantial authority" for the position proposed to be taken on such
issues in your returns.
Listed Transactions and Other Reportable Transactions--The law imposes substantial penalties on taxpayers
and tax advisors for failure to disclose listed and other reportable transactions on Form 8886, Reportable Transaction
Disclosure Statement. In general, reportable transactions are potentially abusive transactions identified by the IRS
whose primary purpose is tax avoidance, including but not limited to listed transactions, confidential transactions,
transactions with contractual protection, loss transactions,and transactions of interest. You agree to advise us of any
reportable transactions identified under tax laws and regulations. You agree that it is solely your decision to disclose
any reportable transactions in the returns we prepare for you. Additional charges will apply for such research.
You acknowledge your responsibility to inform us of any listed transactions or other reportable transactions as
designated by the IRS. You agree to hold our firm harmless with respect to any additional tax,penalties, interest and
professional fees resulting from your failure to timely notify us, in writing, of all such transactions in order to facilitate
the timely preparation and filing of your tax returns.
Penalties and Interest Charges--You,as the taxpayer,remain responsible for the payment of all tax,penalties,
and interest charges imposed by tax authorities.
Tax Shelters--Section 508 of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 requires our firm,
as tax return preparers,to conform to a higher standard than the taxpayer when an undisclosed tax position is related
to a tax shelter as defined in IRC Section 6662(d)(2)(c)(ii), Imposition of Accuracy-Related Penalty on
Underpayments, or a reportable transaction to which IRC Section 6662A, Imposition of Accuracy-Related Penalty on
Understatements with Respect to Reportable Transactions, applies. This higher standard requires the preparer to
have a reasonable belief that the undisclosed tax position would more likely than not be sustained on its merits if
challenged by the IRS,and that there be a reasonable basis for the tax treatment. We may have to spend additional
time preparing your return due to the research and analysis necessary to meet the standard. Accordingly, by
executing this Agreement, you acknowledge that you are aware of this difference in standards, and consent to our
preparation of your federal tax return in accordance with the standards applicable to our firm as tax preparers.
RANCHO CUCAMONGA
COMMUNITY
&ARTS FOUNDATION
STAFF REPORT
DATE: August 22, 2018
TO: Rancho Cucamonga Community &Arts Foundation
FROM: Jennifer Hunt Gracia, Community Services Director
INITIATED BY: Christen Mitchell, Management Analyst II
SUBJECT: General Liability and Special Event Insurance Options
RECOMMENDATION:
Staff is suggesting the Board discuss if the Foundation should research its own General Liability
Insurance policy and therefore request quotes for such policy.
BACKGROUND:
On June 13'", a copy of the Foundation's Directors and Officers (D&O) Insurance policy, and a
brochure detailing the policy, was provided for Board review. Staff also confirmed that the
Foundation is covered under the City's General Liability (GL) policy which covers bodily injury and
property damage. However, the City's preference is that city departments and
Foundations/Boards purchase special event insurance to protect the City's substantial deductible.
Therefore, a cost estimate for special event insurance was provided.
ANALYSIS:
The special event insurance estimate provided, approximately $900.00, would provide general
liability insurance coverage for four Foundation events: Golf Tournament, Monte Carlo Night,
Bunco and the Donor Recognition event.
Paula Pachon, Board Member, has since gathered additional information from another insurance
representative. Due to the additional information received, it was determined that the Foundation
is not listed as an Additional Insured on the City's General Liability policy. Therefore, this
insurance representative suggested the Foundation consider carrying their own GL policy. The
City's Risk Manager also suggested that the Foundation request quotes for their own GL policy
which will cover the Foundation in its entirety, including the four events mentioned above.
The City purchases special event insurance through Alliant. With Board approval, Alliant can also
provide a quote for a Foundation General Liability policy. The Foundation has been purchasing
their D&O Insurance through Altru Insurance Services, LLC since 2009.Although the amount has
slightly varied over the years, the Foundation has paid $2,049 per year since 2016.
FISCAL IMPACT:
Purchasing special event insurance or a General Liability policy will be an additional cost to the
Foundation.
Exhibits:
None.
Page 1 of 1
RANCHO CUCAMONGA
COMMUNITY
ARTS FOUNDATION
00
EXECUTIVE DIRECTOR'S REPORT
DATE: August 22, 2018
TO: Executive Committee, Rancho Cucamonga Community &Arts Foundation
FROM: Susan Sluka-Kelly, Executive Director
SUBJECT: Discussion of RCCAAF Reorganization Plan
RECOMMENDATION:
Staff recommends the Executive Board to review, discuss and determine future tasks needed
towards the reorganization efforts of the Foundation, as identified below. It is also recommended to
create a proposed timeline for the completion of the reorganization plans.
BACKGROUND:
Over the past year, the City and Foundation have taken great strides to remove or redirect various
affiliate and department uses of the Foundation's financial and staffing resources and return the
focus and operational support to the Foundation's current primary purpose, which is the arts.
Additionally, the City has expressed their desire to become less involved in the day-to-day operations
of the Foundation and has encouraged more independence from City resources, where possible.
The City was highly supportive of the Foundation's approval to employ an Executive Director, which
will immediately reduce City staff's role in keeping the Foundation maintained, monitored and moving
forward.
In an effort to provide more independence and autonomy for the Foundation, many of the current
practices and procedures will require change, primarily shifting many financial and operational
responsibilities from City Staff to the Executive Director (ED) and/or Executive Committee Board
Members.
ANALYSIS:
Identified below, are a list of categories and specific tasks that require review and discussion as to
what changes could or should be made to move toward more independence from the current level
of City involvement and gain greater control over the Foundation's day-to-day operations. Other
topics or tasks may be added as needed over time, as this is expected to be an evolving process.
It should be assumed that the reorganization efforts will take several months to complete, therefore
a timeline should be created to track progress, create greater efficiency, transparency and
communication, and ultimately achieve the autonomy desired.
Each item should be given a priority level to be included in the timeline.
FINANCIAL PROCESS:
• Expense Approval Process (Operations, Program Support, Grants, Sponsorships)
• Revise Check Signing Authority
• Designate Credit Card Authorized Users
Page 1 of 2
• Evaluate Tax Filing Management& Responsibilities
• Manage/Maintain Payroll & Employment Records
• Oversight of Investments
• Define relationship/responsibilities of City Finance Department
BY-LAWS:
• Executive Committee to review and recommend changes to current By-Laws
• City to review Executive Committee's recommendations
• Determine if any recommended changes warrant outside attorney review and advice; If so,
set meeting with attorney
• Executive Board and City to sign off on changes to take to Full Board for approval
• Submit By-Law changes to State
FOUNDATION FILES & INFORMATION
• Develop method to provide sharing of Foundation Files between Foundation ED & City Staff
• Determine where Foundation Files (physical & digital)will be stored and accessed safely
MEETINGS, AGENDAS & MINUTES
• Consider removing the Brown Act requirement from By-Laws
• Determine what City Staff's role will be regarding agenda preparation & minute taking in
future
• Responsibility for meeting meals & refreshments
• Create new Agenda & Minutes template (if/when Brown Act requirement is removed)
DONATION PROCESS
• Develop process for acknowledging donations from all donors (Spotlight, Business, Payroll,
Bricks & Seats, etc.)
• Develop process for accepting/expending funds intended for Community Services
Department or community efforts
WEBSITE & MARKETING
• Revise/Refresh/Rebrand website
• Determine City's role in supporting Foundation's Marketing efforts(website, graphic services,
social media, releases, photo archive)
• Re-establish Constant Contact account; Create Templates
• Establish a Foundation phone number
FISCAL IMPACT:
It is undetermined what the fiscal impact will be as most of the changes are procedural and would
not incur any cost. However, should the Foundation choose to hire an attorney to review the by-
laws or for any other non-profit counseling, this will be an expense. The rebranding of the website
will also incur additional expense. A fund allotment for both of those items have been included in
the 2018/19 Budget. There may also be some minimal costs to changing banking or other financial
processes.
Exhibits:
"Proposed By-Law Clarification & Amendments" (as presented at the May 23, 2018 Executive
Committee Meeting)
Page 2 of 2
PROPOSED QUESTIONS FOR CONSIDEDRATION OF RCCAAF BY-LAWS REVIEW AND RESTRUCTURE
ARTICLE II—Purpose&Limitation
• Sec. 1—"The purpose of the Foundation is to generously support Arts programming at the Victoria
Gardens Cultural Center and throughout and beyond the Rancho Cucamonga Community by
annually raising substantial funds and effectively managing resources."
o Can this section be revised?
• Sec.3—"The Foundation is organized, and at all times shall be operated,exclusively for the benefit
of, to perform the function of, and to carry out the purposes of the City, within the meaning of
Section 509 (a)(3)(A) of the Internal Revenue Code of 1954, as amended, the Regulation there
under, and the corresponding provision of any applicable future United States Internal Revenue
Law and Regulations hereinafter collectively referred to as the "Code".
o What exactly does Sec. 509 (a)(3)(A) mean?
o Can the Foundation support arts programs & events within the City even if not
presented/provided by the City of Rancho Cucamonga?
o How much independence does the Foundation have?
ARTICLE III—Meeting
• Sec. 1— "All meetings, regular and special shall be notified, posted and conducted in every way
consistent with the requirements set for in the Brown Act."
o Is the Foundation obligated to operate under the Brown Act? (Can this be amended?)
o Do Foundation meeting agendas & minutes need to be consistent with City Council,
Board &Commissions(or Brown Act)?
ARTICLE V—Board of Directors
• Sec. 2—The members of the Board of Directors shall be filled by persons interested in fundraising
funds for the arts.
o Can this be revised/ broadened?
• Sec. 3—"All appointments to the Foundation shall be made by the City Council."
o Can this be removed as a requirement?
• Sec. 7 — 'Any Director of the Foundation may be removed at any time by a majority vote of the
City Council."
o Can this be removed as a requirement?
ARTICLE VI—Officers
• Sec. 4— 'The Chairperson, with assistance from the Community Services Director of the City of
Rancho Cucamonga and the Investment Trustee,shall present a budget for approval of the Board
at the annual meeting."
o Can this be amended to replace Community Services Director with Foundation's
Executive Director? Include provision that should no Executive Director be appointed
the responsibility would be assumed by the CSD Director?
EXHIBIT A
o Can we remove Investment Trustee?
• Sec. 5 — "Disbursement of money in excess of$500, unless specifically budgeted at the annual
meeting, requires the signature of either the Chairperson or the Secretary/Treasurer."
o This rule should remain. However, authorized signatures should only be the RCCAAF
Executive Director and Executive Officers.City staff should not authorize payment from
RCCAAF accounts without signature from an Executive Officer.
• Sec.7—"The Secretary/Treasurer shall give notice to all members and shall maintain a permanent
set of minutes to all meetings."
o Can this be changed to Staff, or to "or his/her designee"?
ARTICLE VII—Powers
• Sec. 3 (Last sentence)— "Every amendment of modification of these By-Laws shall be in writing,
shall be signed by a majority of the Board of Directors then serving and shall be delivered to each
of the members of the Board then in office and to the Investment Trustee then in office."
o Who is determined as the Investment Trustee?Is this necessary?
ARTICLE Vill—Committees
• Sec. 1— 'The Board of Directors, may, by action approved by a majority of the directors then in
office,designate one or more committees,to serve at the pleasure of the Board. Such Committees
shall consist of a minimum of two members of the Board of Directors and shall act in an advisory
capacity to the full Board."
o Do all standing committees need to follow the Brown Act?(Public notice;minutes,etc.)
ARTICLE X—Investment Trustee
• Sec. 1—'The Finance Office of the City of Rancho Cucamonga shall serve as the Investment Trustee
for the Foundation. He/She shall have the powers and authority set out in Section 2."
o Can we remove this title from the Finance Officer of the City of Rancho Cucamonga?
Can we assign the responsibility to a designated Member of the Board?
o Sec. 2. NEED TO COPY& PASTE THIS SECTION FROM THE BYLAWS
ARTICLE XI—Accounting
• Sec. 1 — 'The Investment Trustee shall render an accounting of the investment transactions
concerning the Foundation to the Board of Directors at least annually. No person or entity other
than the Board of Directors may require an accounting or bring any action against the Investment
Trustee with respect to the Foundation. The Investment Trustee may at any time initiate legal
action or proceedings for the settlement of its accounts and, except as otherwise required by law,
the only necessary party defendant to such action or proceeding shall be the Board of Directors."
o This also relates to the previous question/section about the Investment Trustee.
ARTICLE XII—Liability of Trustees/Directors
0 Sec. 1—More reference to Investment Trustee.