Compulsory Education for a Museum Board

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Mon, 04/26/2010 - 10:25 — ArtsEd The California Attorney General's office ordered the board members of the Museum of Contemporary Art in Los Angeles, which came close to a financial collapse in 2008, to undergo special fiduciary training last year after determining that the museum flouted state law in the way it managed its budget, The Los Angeles Times reported. The museum lost more than $30 million from its investment portfolio over several years, ending up with only $5 million on hand in 2008; it also broke state law when it paid general expenses from restricted endowment funds, according to the newspaper, which obtained a two-page letter sent to the museum by the attorney general's office in November. In December 2008 the museum negotiated a $30 million bailout from Eli Broad, Los Angeles's leading cultural patron, which allowed it to maintain its facilities and avoid selling off artwork. As a result of that agreement and new giving by other donors, the museum's investments have improved, with the value rising to more than $14 million. A museum spokeswoman said the museum and the board had complied with all the requirements for training and financial reform in the attorney general's letter.

By RANDY KENNEDY; Compiled by DAVE ITZKOFF
Published: April 19, 2010
Article can be accessed: http://www.nytimes.com/2010/04/20/arts/design/20arts-COMPULSORYED_BRF.ht...

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