Jane Ashby Sinclair Art Museum IOF

	A	B	C	D	E	F	G	H	I	K
1	Pt.	Item	Number	Units	Notes or ???	Fact or Opinion?	Primary Area	Secondary Area	Tertiary Area	SMOFLHr PESTCC

2	1	INTRODUCTION
3	2	Case Start Date	6/2/2010			F	Strategy	Financial	Operations	Strategy
4	3	Robert Carson is Chairman of the Board of Sinclair Art Museum				F	Leadership			Economic
5	4	Deborah Owens is Executive Director of the Museum				F	Leadership			Marketing
6	5	Wachovia Bank gave notice that the unsecured LOC would not be renewed	5/20/2010			F	Financial	Operations	Leadership	Operations
7	6	Current outstanding LOC balance	742,000.00	Dollars		F	Financial			Financial
8	7	Total approved LOC	1,000,000.00	Dollars		F	Financial
9	8	LOC repayment deadline	9/20/2010		How many days to repayment?	F	Financial	Operations	Leadership	Leadership
10	9	Outstanding LOC balance relative to operating budget	50%		So full operating budget is?	F	Financial	Operations		Human Resources
11	10	Insured value of the Art Collection	18,000,000.00	Dollars		F	Financial	Operations		Political/Legal
12	11	Community had raised concerns about Ms. Owen's management			Why are they concerned? Is this valid?	F	Marketing	Leadership	Human Resources	Social
13	12	Carson's objectives: 1 dealing with the loan repayment crisis			Is this the real issue?	O	Strategy	Leadership	Financial	Technology
14	13	Carson's objectives: 2 steps to avoid such things in future			How did it get like this?	O	Strategy	Operations	Leadership	Competitors
15	14	THE BANKING CRISIS
16	15	Bank Concerns: Financial Performance bank's reasons to doubt security of loan - 3 pts				F	Financial			Customers
17	16	BC1) operating deficit	320,320.00		Accurate? Validate with Fin Stmts	F?	Financial
18	17	BC2) negative operating cash flow	100,679.00		Accurate? Validate with Fin Stmts	F?	Financial
19	18	BC3) reduction in admission fees of "almost"	50,000.00		What is the real $amount?	F?	Financial
20	19	quarterly reviews with bank			Why was this a surprise if they meet every 3 mos?	F	Financial	Leadership	Operations
21	20	LOC originated to finance "portion" of construction of new museum building	2002		Why financed with LOC and not the building as security? Is this still what it is being used for?	F	Financial	Operations	Leadership
22	21	Total museum building construction costs	12,600,000.00	Dollars		F	Financial
23	22	No other debt associated with buildings or property			Accurate? Validate with Fin Stmts	F?	Financial
24	23	Museum has no history of delinquint or late pymts				F	Financial
25	24	World financial crisis impacting museum and lender			No data to support objectively but logically relevant	O	Economic	Social
26	25	Stock Portion of Endowment fund losses 2008-2009 (approximately)	30%	of its 2008 value	Accurate? Validate with Fin Stmts	F?	Financial
27	26	Stock Portion of Endowment fund losses 2008-2009 (approximately)	1,000,000.00		Accurate? Validate with Fin Stmts	F?	Financial
28	27	Endowment $ managed by AG Edwards, subsidiary of Wachovia			Curious...	F	Financial
29	28	Income from Endowment is a "major" source of funding for museum			How "major"? Check Fin Stmts	O	Financial
30	29	Wachovia Bank also had heavy losses and under pressure to "clean up its balance sheet"			Is this pressure valid to be directed at Sinclair?	O	Economic
31	30	SINCLAIR ART MUSEUM
32	31	Museum is located in a medium sized city US southeastern coastal city				F	Customers	Marketing
33	32	Arts are important to the community			No specific data of support	O	Customers	Marketing
34	33	Arts are strongly supported by the community			No specific data of support, no competitor info	O	Customers	Marketing
35	34	Museum facility size	40,000.00	sq.ft		F	Operations
36	35	Museum property, wooded park and Civil War site	9.30	acres		F	Operations
37	36	Museum features:				F	Operations	Marketing	Strategy
38	37	MF 1) 3 exhibition areas				F	Operations	Marketing	Strategy
39	38	MF 2) large lecture and reception hall				F	Operations	Marketing	Strategy
40	39	MF 3) Full-service restaurant			Is the restaurant a revenue generator? What is the business model?	F	Marketing	Operations	Strategy
41	40	MF 4) Museum Gift shop			Is the gift shop a revenue generator? What is the business model?	F	Marketing	Operations	Strategy
42	41	2002 Moved from "historic downtown"			Implications of location on market? What efforts to transition? Did market adapt?	F	Strategy	Marketing
43	42	2002 Renamed from "St. Teresa's Museum of Art" to Sinclair after late wife of major benefactor			Implications of renaming on market? What efforts to transition? Did market adapt?	F	Marketing	Strategy
44	43	Museum is committed to arts education			This is stated as the objective but not fully supported by the case info	O	Strategy
45	44	Products:				F	Marketing
46	45	P1: Presents exhibitions				F	Marketing
47	46	P2: Presents public programs				F	Marketing
48	47	P3: historical significance			"significance" is subjective	O	Marketing
49	48	P4: contemporary significance			"significance" is subjective	O	Marketing
50	49	P5: children's programs				F	Marketing
51	50	P6: Art therapy				F	Marketing
52	51	P7: collection of work by regional artists				F	Marketing
53	52	P8: interdisciplinary programs and workshops				F	Marketing
54	53	P9: recently # of programs has declined				F	Marketing
55	54	P10: used to be open to public for external functions, was a revenue source			Why was this stopped?	F	Marketing
56	55	P11: limited # of classes and demonstrations in ceramic arts, hands on, in clay studio			Are the resources of the clay studio fixed? Return? Why are they reduced?	F	Marketing
57	56	Art collection is not recognized as an asset on the financial statements (consistent with US museum accounting practices)				F	Financial	Political/Legal
58	57	Art purchases are expensed in the year they were bought				F	Financial
59	58	Only a portion of the art is on display				F	Operations	Strategy	Marketing
60	59	Art not on display is held in environmentally controlled area of the facility				F	Operations
61	60	Much of the art is never displayed			Why not?	F	Strategy	Marketing
62	61	Art is rotated on display on occasion			How is this decided? Why?	F	Strategy	Marketing
63	62	Hasn't sold or traded art with other museums				F	Strategy	Financial
64	63	Has sold work of local artists for consignment fee in gift shop			Was it worth it?	F	Strategy	Marketing	Operations
65	64	ENDOWMENT
66	65	"Securing Our Future" endowment campaign began in 2006				F	Strategy	Financial
67	66	Amount raised by campain in funds and pledges ("over")	7,000,000.00	Over this many $	What is the real number?	F	Financial
68	67	Endowment balance as of June 30, 2009	7,500,000.00	"Almost" $	What is the real number? Is this good/bad "despite the financial losses in the stock and credit markets?	F	Financial
69	68	Board Policies:				F	Leadership
70	69	BP 1) max % of income from endowment spent on operating the museum	80%			F	Financial	Operations
71	70	BP 2) remaining therefore min % added back to the fund as part of permanent endowment	20%			F	Financial	Operations
72	71	BP 3) intent to ensure growing operating budget, growth of museum and inflation			Was this reasonable? Does it still hold?	F	Financial	Strategy
73	72	BP 4) Max % of fund balance that Income distribution for operations in any year may equal	4%	of the fund balance	So if the fund investment performs super well, the 80/20 rule no longer applies and the most that can be spent on operations is 4% of the balance.	F	Financial
74	73	BP 5) driven by "prudence" and protection of "suits from donors"			stated intent is a fact but interpretation remains variable	F	Strategy	Leadership
75	74	GEORGE HAYWOOD SINCLAIR FOUNDATION
76	75	Robert Carson is Mr. Sinclair's son-in-law				F	Leadership	Human Resources
77	76	The George Haywood Sinclair Foundation is the major benefactor of the museum			How major?	F	Financial	Leadership	Strategy
78	77	Robert Carson is also the president of the foundation				F	Leadership	Human Resources
79	78	Pledge matching agreement				F	Financial
80	79	PMA 1) maximum matching amount	10,000,000.00	$	Will match up to this amount	F	Financial
81	80	PMA 2) pledge made between Jan 1, 2006 and June 30, 2008			Any impact on pledges over this time?	F	Financial
82	81	PMA 3) Paid before June 30, 2012			Any $ outstanding still to be received?	F	Financial
83	82	PMA 4) Amount recognized and received by museum as of fiscal y/e 2009	2,605,414.00	$		F	Financial
84	83	Foundation contribution to museum operating funds	75,000.00	$ per month	Foundation hardships mean this is not to continue and is not permanent	F	Financial
85	84	Foundation expects operating contributions to cease and be made up by endowment and other gifts				F	Financial
86	85	EXECUTIVE DIRECTOR
87	86	Ms. Owens started as Exec. Director in 2005				F	Leadership	Human Resources
88	87	Ms. Owens has 20 years experiences as head of exhibitions and public programs at a respectable comparator				F	Leadership
89	88	Ms. Owens has limited financial management experience			No context given to demonstrate interpretation of "limited"	O	Leadership
90	89	Mr. Sinclair supported Ms. Owens at time of hire				F	Leadership	Human Resources
91	90	Ms. Owens has "substantial" decision making authority in operations and setting museum strategy			Scope of decision making authority not given context	O	Leadership	Human Resources	Strategy
92	91	Annual operating expenses before 2002 move	650,000.00	$		F	Financial	Operations
93	92	Annual operating expenses after 2002 move	1,000,000.00	$	"well over" this amount	F	Financial	Operations
94	93	Ms. Owens goal "WAS" endowment increase	20,000,000.00	$	increase the endowment by this amount	F	Financial	Strategy
95	94	Endowment balance in 2005	1,400,000.00		Increase from 1.5 to over 7 is a start, but why hasn't the 20 been realized?	F	Financial	Leadership
96	95	Board Goals for Ms. Owens on her arrival:				F	Leadership
97	96	BGO 1) reduce/eliminate operating deficits				F	Financial
98	97	BGO 2) elevate museum from local to regional stature				F	Strategy
99	98						Financial
100	99	2002-2003 attendees	50,000.00	attendees		F	Marketing	Financial	Operations