WPCNR STAGE DOOR. By John F. Bailey. November 2, 2005: The White Plains Performing Arts Center had a cash loss of $197,611 in its first year of operation, 2003-2004, according to financial documents filed with the New York State Office of Attorney General, Charities Bureau, obtained by WPCNR recently. The IRS Form 990, and State Charities Bureau Forms, the only documents to date issued describing the WPPAC’s business performance, show that in the first year of the theatre, the City of White Plains contributed either $475,729 or $585,659 in services and/or cash to the center’s revenue. But the dollar amount and character of that contribution, and where it came from is not described in the documents.
The financial report on the first year of theatre operation ended June 30, 2004, was completed by the WPPAC in March, 2005. A note in the accountant’s report states, in part, “Approximately 57% of the Organization’s revenue for the year ended June 30, 2004, was from the City of White Plains,” but does not give the dollar amount, nature or sources from the city, or from where the city contributions originated.
On for the first year operation, expenses for the fiscal year ending June 30, 2004, were reported as having been $1,032,224 compared with total contributions and ticket revenue of $834,613 on the New York State Charities Bureau Annual Financial Report. The amount of $834,613 also appears on WPPAC’s IRS Form 990 as the organization’s “Total Revenue,” as does the amount of $1,032,224 for the organization’s “Total Expenses.”
The New York form requires organizations to report as a separate amount – not included in expenses or support/revenue – “donated services or the use of materials, equipment or facilities at no charge or at substantially less than fair rental value.”
WPPAC reported this amount (of donated services, materials, equipment, facilities) as having been $192,860. This amount equals the combined “rent” and “utilities” expenses shown in the accountant’s report. A note in the accountant’s report states, in part, that WPPAC has received “an unconditional promise of free use of facilities and utilities…”
When this figure of $192,860 is added to the totals on the New York State reporting form, it brings expenses to $1,225,084 and “support/revenue” to $1,027,473, which are the numbers contained in the audited report.
The conclusion drawn is the portion of WPPAC’s revenue which came from the City of White Plains (57% -- as stated by the accountant’s note) would have a value of $475,729 if applied to the $834,613 revenue figure, or about $585,659 if applied to the $1,027,473 revenue figure. It is not clear if the $192,860 in rent and utilities contributed by the City of White Plains is included in those two figures.
Loans Outstanding After First Year: $117,893
The WPPAC lists, as of June 30, 2004, loans outstanding of $117,893, consisting of a $25,000 loan from the City of White Plains, a loan of $52,893 from the Helen Hayes Theatre Company for services it provided to WPPAC, and a loan of $40,000 from developer Louis Cappelli, a member of the WPPAC’s Board of Trustees. They had also used a $25,000 credit line with a bank.
None of these loans had set repayment terms or stated interest rates, however, interest was accrued at the rate of 5.5% a year for purposes of the financial statements, and totaled $1,832.
WPPAC reports obtaining a $50,000 line of credit with Union State Bank, and had used $25,000 of the line of credit as of June 30, 2004. The line of credit had an interest rate of 5.5%.
Salaries
The financial documents state that Tony Stimac was compensated $65,625 for his work as part-time Producing Director of WPPAC, (Stimac is also employed by Helen Hayes Theatre Company), and Jeffrey Rosenstock of Queens Theater In the Park, who served as part-time Executive Director of WPPAC for the fiscal year ended June 30, 2004, was paid $21,009. Rosenstock is no longer part-time Executive Director, and had gone onto a “pro bono” basis with the WPPAC in August of last year.
The position of Executive Director was filled by the hiring of Ray Cullom in August, who also fills the same capacity for the Helen Hayes Theatre Company. The employment of Kathie Davisson, was shifted out of the WPPAC payroll and Ms. Davission was put on the books of the Community Development payroll under the City of White Plains budget last spring.
The documents show that salaries, payroll taxes and fringe benefits for WPPAC’s first year totaled $377,325. Box office income was $368,396, rental income was $31,834, ticket handling fees brought in $8,460, and other income was $353, for a total revenue from ticket sales, rentals and handling fees and other income of $409,043 WPPAC reported $3,663 cash on hand as of June 30, 2004.
City Contribution of Services.
When added to the total expenses on the New York State reporting form, the $192,860 figure “for donated services or use of materials, equipment or facilities at no charge,” which are listed as consisting of $156,000 in rent and $36,860 in utitlities, brings expenses to $1,225,084.
If you add that $192,860 figure (as income) to the support/ revenue, listed on the IRS Form ($834,613) brings that revenue figure to $1,027,473, which is the number for total revenue contained in the accountant’s report.
This means, based on the accountant’s statement that the portion of WPPAC’s revenue which came from The City of White Plains (57%), including the “donated services” would have a value of $585,659, if applied to the $1,027,473 figure or $475,729 if applied to the $834,613 revenue figure on the federal IRS 990 form, which lists total revenue as $834,613.
The Production Expenses
According to the accountant’s report, the Center spent $790,684 on theatrical productions, and $171,917 on fundraising, and $262,483 on Management and general expenses for a total of $1,225,084 in total expenses (including the “donated services” from the city). Subtracting the $1,027,473 revenue figure leaves a loss of $197,611.
The 2003-04 expenses are detailed as follows:
Program Service Fundraising Management Total
Salaries $113,075 $48,718 $156,420 $318,213
Artist/Fees $196,946 82,975 9,072 288,993
Payroll Taxes/
Benefits $20,688 8, 867 29,557 59,112
Advertising/Design $156,370 576 156,946
Lighting/Sound $10,311 9,662 19,973
Scenery/Props/Cst $18,444 537 18,981
Misc Prod Costs $50,337 9,291 59,628
Printing/Postage $3,684 512 4,196
Insurance 613 263 12,796 13,672
Credit Card fees/
Ticketing $12,782 12,782
Rent $156,000 156,000
Utilities $ 36,860 36,860
Meetings/Entrtmt $ 629 10,300 3,216 14,145
Equip.Maint/Repairs $ 3,694 15,368 19,062
Telephone $ 6,687 6,687
Prof fees $ 2,972 2,972
Supplies $ 4,666 216 6,499 11,381
Misc. - - 16,818 16,818
Depreciation $ 5,586 - 1,245 6,831
Interest Expense - - 1,832 1,832
Total Expenses $790,685 $171,917 $262,482 $1,225,084
The poor start of the theatre in 2005-2006 raises questions.
Has the theatre turned around in year two, thanks to last year’s two sell-out galas? Has the theatre paid off its operating loss from year one in its second year? Or have the losses continued and grown larger? The public does not know.
Declining attendance and tickets being offered for half-price to community groups to attract audiences in the second year and for the first two products of this year are not good signs. The current financial condition of the theatre is unknown to the public.
A call has been placed to Ray Cullom, Executive Director, for clarification on the present state of finances of the theatre after Year Two, as Year Three is in full swing.
