Annual Report 2016–17 · 2019. 12. 19. · 02 Annual Report 2016–17 01 02 Section 1: Our...

Financial Report 01

Annual Report 2016–17

0102 Annual Report 2016–17

02 Section 1: Our Purpose

04 Who we are and what we do

05 Our Goals

06 From our Chair

07 From our CEO

08 Section 2: Our Performance

09 Our year at a glance

10 Australian Cultural Fund

14 Our Funding Programs

15 Plus1

18 MATCH

21 Creative Partnerships Awards

22 Sector Development and Events

25 Coaching, Mentoring and Presentations

26 Research, Trends and Insights into Private Giving

27 Section 3: Management and Accountability

28 Company Structure

28 Corporate Governance

28 Audit and Risk Committee

28 Risk Management

29 Financial Management

29 Organisation Chart

29 Locations

30 Reporting Compliance Index

31 Financial Report

Contents

Chunky Move, Depth of Field by Anouk van Dijk. Photo: Jeff Busby

02 03Annual Report 2016–17 Section 1

Our purpose is to foster a culture of private giving to the arts to build a more sustainable, vibrant and ambitious cultural sector

for all Australians.Left: Bangarra Dance Theatre, Lore. Photo: Jeff Tan

03Section 1: Our Purpose

1Our Purpose


Financial Report 05

We achieve these by focusing on five key areas

AdvocacyBuild philanthropic and business sentiment around the value of supporting the arts

Providing ExpertiseBe an informed and influential source of expertise about private giving to the arts

Building CapacityBuild the development and fundraising skills and capabilities of artists and arts organisations

PartneringFacilitate and incentivise financial and in-kind support for artists and arts organisations from donors and business

Demonstrating ValueBe an efficient and effective organisation, providing high quality programs and services that are valued by the cultural sector and other stakeholders

Our Goals1.Grow the culture of giving

and volunteering to support

the arts, bringing donors,

businesses, artists and arts

organisations together

2 .Assist Australian artists

and arts organisations to

attract and maintain support

from donors and business,

diversifying their sources

of revenue

3.Encourage and celebrate

innovation and excellence in

giving to, and partnerships

with, the arts.

Sunday Films, A Birthday Party. Photo: Dannika HorvatOur purpose is to foster a culture

of private giving to the arts. What do we mean by private giving? Simply, any funding from private sector sources, such as donors, philanthropists, trusts, foundations, or corporate support, whether financial, in-kind or other forms of partnerships.

We support artists and arts organisations to develop fundraising skills, build relationships with donors, philanthropists and business and find diverse, innovative and collaborative ways to fund their practice.

We invest in the professional and business development of the cultural sector; work with philanthropists and business to facilitate, celebrate and champion arts partnerships and investment; and deliver matched funding programs for artists and arts organisations.

We also administer the Australian Cultural Fund, a fundraising platform for Australian artists and arts organisations that facilitates tax-deductible donations to the arts.

Who we are and what we do

Above: West Australian Symphony Orchestra. Photo: Emma van Dordrecht

04 Annual Report 2016–17 05Section 1: Our Purpose


It has been a productive and rewarding year for Creative Partnerships as we continue to support the sector to secure private investment, and provide the resources and expertise needed to help artists and arts organisations prosper.

The reach and impact of the Australian Cultural Fund continues to grow, with more donors and artists than ever before using the fund to bring their projects to life.

We’ve experienced a 54% increase in the volume of donations to the fund, with 9,556 donors investing $2,677,663, and a 42% increase in artist registrations this year, with a total of 402 fundraising campaigns completed. We also celebrated a significant milestone, with more than $20 million donated through the fund since 2003.

This year we’ve focused our efforts on tracking trends in philanthropic giving and business sponsorships and assessing the capacity of the sector to secure private support.

We led research commissioned by the Department of Social Services for the Prime Minister’s Community Business Partnership on collective giving and its role in Australian philanthropy. This is the first time the Australian Government has commissioned specific research on collective giving, and the report shed light on the benefits, challenges, impact and outcomes of this relatively new trend.

In June we released a report on private sector support for the arts in partnership with the Bureau of Communications and Arts Research, to provide the first estimate of private contributions to the arts in Australia since 2009-10. In the coming year

we’ll work with state and federal funding agencies to produce more consistent reporting mechanisms, leading to our first sector-wide survey on private sector support. This project will provide national benchmarks of fundraising capacity and add weight to the advocacy of arts organisations, peak bodies and policymakers.

Through our matched funding programs, Plus1 and MATCH, we granted $1,396,400 to 61 organisations, artists and artistic groups. Through their fundraising efforts, the leverage incentive of our matched funding and the generous support of the private sector, a total of $3,211,601 was injected into the arts sector overall. This shows the longer-term impact of private sector giving; with the flow-on effects for artists and arts organisations being an increased capacity to fundraise, more and better relationships with their supporters, and a more sustainable sector more broadly.

We continue to host and support a range of events to give artists, arts organisations and their boards access to experts and best practice, innovative funding and fundraising models and networking opportunities. This year we delivered 23 professional development events around the country on fundraising, sponsorship and bequests, among others. Our state managers continued their great work sharing their expertise and providing coaching and mentoring services to arts organisations and their boards.

I would like to acknowledge Senator the Hon. Mitch Fifield and the Department of Communications and the Arts for recognising the importance of strong relationships between the arts and the private sector and the economic and creative benefits that arise from these partnerships.

I thank our Chair Carol Schwartz AM for her leadership and guidance, and our Board members for their commitment throughout the year. I especially wish to thank the hard-working Creative Partnerships staff; through their efforts we remain well positioned to help steer artists and arts organisations through the challenges and opportunities facing the sector.

Lastly, I’d like to thank Australian artists and arts organisations for their work, and the donors, philanthropists and businesses that support them. Partnerships are at the core of the development and growth of Australia’s artistic culture, and we look forward to continuing to support the sector to secure and nurture great partnerships in the coming year.

Fiona Menzies

From our CEO, Fiona Menzies

It has been my great pleasure to serve as Chair of Creative Partnerships Australia this year as it continues to foster a thriving culture of private investment in the arts.

A vibrant, sustainable and diverse arts sector calls for enduring support from all levels of government, business and individuals who share a vision and passion for what the arts can bring to Australia’s cultural life.

The value of the arts is intrinsic, but there is also a measurable and tangible contribution that investment into the arts and the arts sector itself make to our communities. Creative Partnerships’ role in advocating for the many rewards of giving to the arts remains essential.

Our year has been spent delivering our key funding programs, continuing to improve and grow the Australian Cultural Fund, providing a range of professional development opportunities for all levels of the sector, expanding our reach through our digital platforms and measuring our progress and impact in an integrated and systematic way.

I’m pleased to report that Creative Partnerships delivered more than $3.93 million into the sector

through our matched funding programs and activities, and through the grants we provided to artists from donations made to the Australian Cultural Fund. The impact of these programs shows what can be achieved through mutually beneficial, well-aligned partnerships between the cultural sector and individual donors, philanthropists and businesses.

It was an honour to acknowledge five individuals for their leadership and advocacy in private sector support for the arts this year. By focusing on art at the centre of conversations, our 2017 Creative Partnerships Awards recipients are creating a better place for us all to live in, and by supporting our arts sector they are building strong and resilient communities that can continue to enrich lives. Congratulations and thanks to Andrew Cameron AM and Cathy Cameron, Ian Narev, Sheena Boughen and Joseph O’Brien.

We thank the Australian Government, in particular Senator the Hon. Mitch Fifield, Minister for the Arts, and the Department of Communications and the Arts for continuing to acknowledge the importance of Creative Partnerships’ role in supporting and strengthening the Australian arts sector.

I thank my fellow Board members for their valuable guidance and the depth of knowledge and experience they bring to the Board. I would also like to acknowledge CEO Fiona Menzies for her ongoing advocacy for the arts and private giving, and for the knowledge she brings to the role. And I thank Creative Partnerships staff for their commitment and efforts to ensure the continued success of the sector.

Finally, I would like to acknowledge the strong support the sector receives from trusts and foundations, individual donors, philanthropists and the business sector.

I’m eager to continue and build on the essential work of Creative Partnerships to grow the culture of giving to the arts. The opportunities, influence and impact of arts partnerships not only stimulate the work and mission of all involved, but contribute to a thriving cultural sector, capable and willing to lead the way into a progressive future.

From our Chair, Carol Schwartz, AM

Carol Schwartz, AM

06 Annual Report 2016–17 Section 1: Our Purpose


Our year at a glance

1 new website launched for the arts sector,

investors and supporters

5 Creative Partnerships Awards presented to leaders across arts,

philanthropy and business

More than 540 coaching and mentoring sessions

held with arts organisations around Australia

More than $2.74 million injected into the arts sector

through Plus1

50% increase in volume of donations to the

Australian Cultural Fund

More than $3.93 million delivered to the arts sector through matched funding

and Australian Cultural Fund grants

452 artists and arts organisations registered

with the Australian Cultural Fund

More than $2.67 million pledged to the Australian

Cultural Fund

25 artists participated in MATCH Lab

23 professional development events delivered

around Australia2Our Performance

Below: Speak Percussion, Fluorophone. Photo: Jeff Busby

08 Annual Report 2016–17 Section 2: Our Performance

Financial Report 1110 Annual Report 2016–17

One Fell Swoop creates work through traditional theatre shows and large-scale outdoor installation works and was one of 25 recipients who participated in MATCH Lab, the new iteration of our matched funding stream for independent artists and groups.Armed with new skills and insights from the MATCH Lab clinic, Jonathan Morgan and Charice Rust developed a fundraising strategy to fund further creative development of By a Thread.

Using the Australian Cultural Fund to appeal to higher-level donors One Fell Swoop raised $10,114 from 38 donors, with an average donation of $270 – well above the average donation to the ACF.

Jonathan Morgan said using the ACF was essential to their fundraising strategy. “Our campaign was focused on fewer high-value donations so the professional feel and tax-deductible status of the ACF platform was essential,” he said.

By a Thread was nominated for Best Circus Award at the Perth Fringe World Festival in February 2017 and completed a successful run at Gasworks, Melbourne in July 2017.

Case Study: One Fell Swoop Circus

Above: One Fell Swoop Circus, By A Thread. Photo: Aaron Walker Photography

“We wanted our supporters to feel like they were coming on board with us as a contributors to a genuine arts organisation, so it was important to convince them of the quality of our work and the value their donation would provide – the ACF is a unique platform that shares this focus.”

It was another good year of growth for the Australian Cultural Fund (ACF), our fundraising platform for Australian artists that facilitates tax deductible philanthropic donations to the arts.

In the year to June 2017 we received $2,677,663 in donations to the ACF for artists and arts organisations around Australia. While this was a modest increase in the value of donations from $2,631,794 in the previous year, the volume of donations increased by more than 50% from 6,207 to 9,556.

We launched the Artist Dashboard, a real-time tool to give ACF users greater insight into their fundraising outcomes and allow them to communicate with their donors more effectively. Artists can also access campaign analytics and aggregated donor data, enabling them to see where their campaign tactics have been most successful and where they should invest more time and energy. We also improved access to artists managing and updating their campaign pages; making it easier to add video and images, send email campaigns, and provide campaign updates.

The Dashboard is now the most viewed area on the site after the homepage; and within this the donor contact function the most popular activity, indicating that artists are using the tool as intended.

In 2016-17 our business development, marketing and communications strategies focused on connecting with artists at the community level, with the ACF team presenting at peak arts events, and our State Managers promoting the ACF in their respective states.

Through our year-long ACF Outreach Campaign, we increased awareness of the ACF within the arts community; increasing the number of artists and arts organisations using the ACF and building the fundraising skills of ACF users.

We delivered 18 events and engaged with more than 400 artists and arts organisations around Australia through the campaign this year, partnering with a range of organisations including Junction Arts Festival (Launceston), Adelaide Fringe Festival,

BOOM Gallery (Geelong), ARTLANDS (Dubbo), Northern Centre for Contemporary Art (Darwin) and the Victorian College of the Arts (VCA), where we spoke to film students about funding their screen projects. As a result of this session a number of VCA graduates have used the ACF to fundraise for their films.

The ACF digital strategy continues to build artist and donor engagement with the site. Web traffic has increased by 43% this year, receiving more than 494,813 views from 116,854 users; and subscriptions to ACF eNews climbing to more than 6,800 in the two years since launch.

During the reporting period, the digital team also developed and published 30 resources and tools to the ACF site. These resources and tools are increasingly shared by and between artists and arts organisations.

Australian Cultural Fund

Right: One Fell Swoop Circus, By A Thread. Photo: Aaron Walker Photography

Focus Area: Advocacy Partnering

10 Annual Report 2016–17 11Section 2: Our Performance


Case Study: A Birthday PartyA Birthday Party is a short film directed by Melbourne-based W.A.M (Bill) Bleakley and produced by Lucy Knox and Sunday Emerson Gullifer that explores themes of violence and power dynamics within groups of young men.

Bill’s aim was to raise $5,000 – enough to produce the film with a small cast and few locations. Thanks to a clever crowdfunding campaign focusing first on friends, then on social networks, Bill exceeded his stretch target of $7,500 and raised more than $8,000 from 78 supporters, allowing him to film in his preferred 16mm format.

After exposure at the Victorian College of the Arts graduate screenings, the film had its world premiere at Sydney Film Festival 2017, where it was a finalist in the Dendy Awards for Best Australian Short. It was also selected for the Melbourne International Film Festival’s Accelerator talent campus in 2017, a program of short films by emerging filmmakers.

Bill said the tax deductibility offered through the ACF was a real incentive to his donors. “The tax deductibility and credibility of the ACF gave me more confidence when ringing people up and asking for donations.”

“Through the whole process of crowdfunding I felt like I could call (the ACF team) and ask questions about my campaign and strategy. I’m not aware of any other platforms that feel this personal.”

Sunday Films, A Birthday Party. Photo: Dannika Horvat

Our artistsMore artists than ever are using the ACF to fund their artistic practice, find new donors and stay in touch with supporters. A total of 452 artists and arts organisations registered to fundraise on the platform this year – a 42% increase on last year and a 97% increase since 2014/15.

Rise in registrations500

230318

452400

FY15 FY16 FY17

300200100

0

Total campaigns completed

402 (up 82, or 26% over last year)

Average amount raised by each campaign

$6,823 (down $548, or 7% over last year)

Highest amount raised by a single campaign

$144,625 (up $22,622, or 19% over last year)

Top 3 artforms Community Arts & Cultural Development (125)

Music (85)

Theatre & Performance (77)

Our donorsWe encourage and facilitate art lovers, philanthropists and trusts and foundations to support the arts by offering tax deductibility through the ACF. This year, more individuals invested in the arts than ever before, and we celebrated a significant milestone – over $20 million has been donated to artists and arts organisations since the ACF was established in 2003.

A total of 8,587 donors supported ACF projects this year, pledging $2,677,663 to artists and arts organisations – an increase in investment into the sector of $45,869 or 2%, over last year.

Donations received ($)

$2,677,663 (up $45,869, or 2% over last year)

Donations received (volume)

9,556 (up 3,349, or 54% over last year)

Individual donors

8,587 (up 2,918, or 56% over last year)

Average donations per campaign

24

Donations over $10K

41

Most common donation

$50

Single biggest donation

$100,000

Making culture happenWe love being part of a diverse community that values art and culture and supports artists and arts organisations to develop ongoing relationships with their donors.

The number of return donors to the ACF has been steadily increasing since we launched the online platform in 2015. This year it increased by 68% to 675 donors, demonstrating the value of a digitally integrated platform that allows artists to build relationships with their donors over the life of their practice, and encourages donors to revisit the ACF.

A total of 95% of artists reported continuing to engage with donors after the completion of their campaigns, an 11% improvement on last year.

Focus Area: Advocacy Partnering


15

Plus 1 is our matched funding program to boost the fundraising efforts of small to medium arts and cultural organisations, and Australia’s first Australian Government funded matched funding program for the cultural sector.

This year we were able to support more and varied organisations to secure more supporters and investors despite granting slightly less in matched funding grants overall.

A total of 36 arts organisations raised $1,583,301 through their Plus1 fundraising campaigns for a range of projects and artforms, from

musical theatre and visual arts to festivals and new writing; raising an average of $43,981 per campaign.

With our contribution of $1,164,500 in matched funding a total of $2,747,801 was injected into the arts and cultural sector. One of Plus1’s key objectives is to support recipients to attract new donors and create ongoing relationships with their supporters. Arts organisations who completed campaigning in 2016-17 secured 2,902 donors to support their campaigns, more than twice as many as last year. Of those, 1,967 (68%) were new donors.

A matched fundraising campaign can be a powerful incentive in securing first-time investment from previously untapped donors or philanthropists. With leveraging assistance from Plus1, more than 90% of this year’s campaigning organisations met or exceeded their fundraising target by an average of $8,557, up from $4,144 in 2015/16.

We also increased our leverage impact, with Plus1 organisations raising $1.31 (up from $1.15) for every $1 matched by us.

Below: Perth Institute of Contemporary Arts, Justene Williams’ The Curtain Breathed Deeply. Photo: OK MediaPlus1

Our matched funding programs reward creative thinking and success in fundraising, help independent artists and small to medium arts organisations secure new donors and partners and strengthen their networks, and boost fundraising skills across all levels of the sector.

By matching funds secured through the fundraising endeavours of artists and arts organisations. we’re supporting them to diversify and increase their revenue streams, achieve their artistic goals, create new work for audiences to enjoy and become more robust in the long-term.

Our Funding Programs

Focus Area: Partnering

Above: Black Swan State Theatre Company, Angels in America. Photo: Daniel James Grant



Our Plus1 program funds arts organisations on the strength of their fundraising strategy and their capacity to secure and retain new donors and partners. However, the culmination of their efforts is an artistic work or an organisational initiative to boost their fundraising capacity and become more sustainable in the longer-term.

We support our Plus1 recipients from the early stages of campaign development and implementation through to final delivery of their project or activity, which may take several years to complete.

In 2016-17, 26 recipients launched a project or activity that was funded in a previous round of Plus1. Through their fundraising efforts, the generosity of their supporters and the matched funding they received from us, these organisations were able to deliver projects to attract new audiences, build awareness of their work and improve their capacity to fundraise.

The long-term impact of Plus1

Case Study: Bangarra Dance Theatre

Bangarra Dance Theatre is acclaimed for its powerful dancing, distinctive theatrical voice and unique soundscapes, music and design.

Bangarra received Plus1 matched funding in 2015/16 and focused their campaign on the launch of the Russell Page Graduate Program, which provides dance graduates a professional development opportunity and ensures the next generation of Aboriginal and Torres Strait Islander artists are nurtured by current artists excelling in their craft. Their campaign was a great success, generating $61,829 from 122 donors.

The following year, seeing the power a matched funding incentive like Plus1 can have, the Sherry-Hogan Foundation agreed to match up to $50,000 of donations raised during the theatre’s 2016-17 campaign. With this support, Bangarra can offer the Russell Page Graduate Program as an ongoing opportunity and provide two paid positions for Aboriginal and Torres Strait Islander performers each year.

“Plus1 provided us with a powerful message around doubling the value of your donation which really engaged with our existing donors and enabled us to convert new donors,” said Director of Development Kitty Walker. “But the real impact came when the Sherry-Hogan Foundation observed the impact that a matching donor can have, and agreed to step into the role of Creative Partnerships in Year 2, significantly increasing their commitment to, and connection with, Bangarra.”

Right: Bangarra Dance Theatre, Lore. Photo: Photo: Jacob Nash

Case Study: Perth Institute of Contemporary Arts

Perth Institute of Contemporary Arts (PICA) boasts one of the largest exhibition spaces in Australia and runs a year-round program of exhibitions, dance, theatre and performance, artistic residencies and interdisciplinary projects.

In 2017, PICA developed a Plus1 campaign focused on connecting donors to their new performance strategy. They introduced new donor ‘levels’ for supporters to align to and promoted them widely through communications. These levels were appealing to both new donors and long-term donors looking to step up their support.

“The greatest success came from the uptake of the Art Ambassador level, with several upgrading their donation,” explained Development Manager Jo Malone. “Most of the new donors came in at this level, enticed by the value of their donation in supporting specific programs, and by the opportunity to double their impact through Plus1. We had confidence in being able to deliver a message that was simple and easy to communicate.”

Overall, PICA received 52 individual donations, and raised an impressive $82,100, securing 22 new donors and a further seven agreeing to upgrade their support. Along with our matched funding of $50,000, PICA is well placed to continue its leading role in the presentation of new work.

Our Funding Programs Focus Area: Partnering

Below: Perth Institute of Contemporary Arts, Hatched. Photo: Toni Wilkinson


19Section 118 Annual Report 2016–17

Case Study: Sisters Grimm Sisters Grimm make queer, comic, experimental theatre that re-addresses representations of gender, race and sexuality. In 2017, Sisters Grimm was accepted into MATCH Lab and launched their first ever crowdfunding campaign on Pozible, raising an impressive $12,090 from 162 donors.

The campaign was fun, honest and on-brand, appealing to established and new supporters. With a further $10,000 in matched funding from

us, Sisters Grimm are taking their production Lilith: The Jungle Girl to Scotland’s Traverse Festival, held during Edinburgh International Fringe Festival in August – a valuable opportunity to connect to new, international audiences.

Of MATCH Lab’s Raising Money for your Art clinic, Sisters Grimm artist Ash Flanders said it gave him confidence and a new perspective on his work.

“The clinic was not only a rare chance to learn vital fundraising skills, it also helped me see the value of my work in a different way. This was vital in creating a crowdfunding campaign I could believe in. I even had the confidence to email private donors.”

Above: Sisters Grimm, Lilith the Jungle Girl. Photo: Jeff Busby

There were two key changes to the program this year: we increased the emphasis on long-term skills development, adding a professional development clinic to complement matched funding; and we extended the types of fundraising activities eligible for matched funding.

A total of 25 independent artists and groups were accepted into MATCH Lab in its first year and have participated in Raising Money for your Art, the two-day professional development and fundraising clinic held in May 2017. Artists connected with their peers

and fundraising, marketing and business development experts to develop a strategic plan to support their next artistic project and the ongoing sustainability of their practice.

Armed with these new skills and knowledge, MATCH Lab artists developed their fundraising strategies and as of 30 June, six have launched their fundraising campaigns, expecting to raise $231,900 from new and established donors across a range of fundraising platforms, live events and other activities.

This year we launched MATCH Lab, the new iteration of our matched funding program for independent artists and groups. It supports artists to build their fundraising skills, increase their knowledge of arts business, philanthropy and partnerships and create sustainable sources of revenue for their work into the future.


Below: Sisters Grimm, Lilith the Jungle Girl. Photo: Jeff BusbyMATCH Lab



The Creative Partnerships Awards celebrate outstanding contributions to Australia’s cultural life by leaders who, through example and vision, have put arts first; fostering enduring partnerships between the cultural and private sectors and encouraging the spirit of giving to the arts.

This year we opened nominations to the public, giving everyone working in the arts, philanthropic and business sectors an opportunity to nominate leaders and colleagues who deserve recognition for championing the arts. We received 63 nominations from around Australia.

In June at the Australian Centre for Contemporary Art in Melbourne, we brought together more than 100 guests from Australia’s arts, philanthropic and business communities to celebrate the contribution of five remarkable individuals. Awards were presented across four categories to:

Joseph O’BrienEmerging Philanthropy Leadership Award

Ian NarevBusiness Leadership Award

Sheena BoughenArts Leadership Award

Andrew Cameron AM and Cathy CameronPhilanthropy Leadership Award

Senator the Hon. Mitch Fifield, Minister for the Arts spoke at the awards, emphasizing the importance of advocacy and leadership in encouraging others to give, and of strong partnerships between artists, arts organisations, philanthropists, businesses and volunteers.

Emerging Philanthropy Leadership Award For an individual new to the philanthropic sector (within the last five years) and whose leadership and contribution to the arts is shaping the future of philanthropy and private giving.

Business Leadership Award For an individual working in the business sector who through their leadership, advocacy, practice and example has made an exceptional contribution to Australia’s cultural life by fostering increased investment and engagement between business and the arts.

Arts Leadership Award For an individual working in the arts and cultural sector who through their leadership, advocacy, practice and example has made an exceptional contribution to Australia’s cultural life; demonstrating vision, commercial acumen and strategic thinking in their engagement with donors and business, and encouraging increased giving to the arts.

Philanthropy Leadership Award For an individual, family, group, foundation or other entity that through their leadership, advocacy, practice and example has contributed significantly to the arts and encouraged philanthropic giving to the arts.

Creative Partnerships Awards

Right: Andrew Cameron AM, Cathy Cameron, Alden Toevs, Senator the Hon. Mitch Fifield, Sheena Boughen and Joseph O’Brien

Focus Area: Advocacy

Case Study: #MATCHstick ProjectsTasmanian visual artist Karen Revie was a recipient of the 2016 Match program and used the Australian Cultural Fund to fundraise for the presentation of #MATCHstick Projects 2016, a suite of artistic projects by visual and performance artists for Launceston’s Streets Alive@The Precinct arts festival.

Karen focused on the strong support from local arts bodies and private businesses in her MATCH campaign to attract further donations, and raised $10,650 from a combination of individual donors and corporate partners. With the incentive of matched funding of $10,000 from us, a number of these relationships are continuing beyond the life of the project.


Participating in MATCH helped Karen with her fundraising, project management, marketing and budget management skills.

“MATCH funding enabled our artistic team to deliver a dynamic suite of projects and was a valuable professional development opportunity for the multiple artists involved. Our team continues to develop relationships with current and potential sponsors, with the aim of building long-term financial sustainability, individually and collectively.”

We support MATCH recipients from the early stages of campaign development and implementation through to final delivery of their project, which may be several years in the making. In 2016-17, a total of 12 recipients launched projects that were funded in previous rounds of MATCH. Through their fundraising efforts, the support they received from donors and matched funding from us, these independent artists were able to create new art for audiences to enjoy and build their artistic careers.

The long-term impact of MATCH

Above: Karen Revie Capsule 4, Micro gallery by Melanie Fidler



Fundraising through Bequests and Planned GivingWorkshops for Northern Territory based arts organisations on practical strategies to secure bequests, current trends and best practice with bequests expert Kenneth Park.

Workshops 2

Attendees 28

“Thanks for bringing the workshop to Darwin!”

“Very informative.”

Conversations in FundraisingAustralia-wide panel sessions for fundraising and development staff to learn from senior professionals from local arts organisations with successful philanthropy and fundraising programs.

Workshops 6

Attendees 360

“Thanks. Keep doing these. It’s a great chance to network and reflect on what other arts organisations are doing and beneficial for Board members also.”

“I would welcome more events in this same conversation format. It was great to hear from peers who are working at the fundraising coalface.”

Fundamentals of FundraisingAustralia-wide workshops on the foundations and principles of arts philanthropy and sponsorship, presented by our state managers.

Workshops 8

Attendees 211

“The information was presented in a very accessible manner, not too jargonistic. It was great!”

“Thank you – very inspired to apply some of the practical applications shared in the workshop.”

Left: Speak Percussion, Fluorophone. Photo: Robert McFadzean

We host and support a range of professional development events to give artists, arts organisations and their boards access to expertise and best practice from Australia and internationally, and the chance to network with and learn from their peers.

Our sector development strategy aims to contribute to a more knowledgeable, confident and stable arts fundraising profession, building the overall development and fundraising capacity of the sector.

This year we delivered 23 professional development events attended by 950 people. Among these were:

Sector Development

Focus Area: Providing Expertise Building Capacity

Arts Sponsorship with Nicole NewmanAustralia-wide masterclasses with UK Arts Fundraising and Sponsorship Consultant Nicole Newman, who shared more than 20 years’ experience working with successful cultural organisations to transform their sponsorship strategies.

Masterclasses 5

Attendees 243

“This is a terrific event and incredibly useful. The practicality of the seminar was far more engaging than the usual vague “theory” type seminars. A job well done to everyone who made it happen.”

“Nicole’s experience is outstanding. Thank you for bringing her to Australia and allowing us to learn from her experience.”

Above: West Australian Sydney Orchestra. Photo: Emma van Dordrecht



Our state managers continued to provide on-the-ground support and one-on-one advice to arts companies around Australia, working to strengthen both the professional development of individuals within arts organisations and the fundraising strategies of companies and their boards.

More than 540 coaching and mentoring sessions with 300 arts organisations took place nationally, with a focus on small to medium companies with a range of challenges; from practical fundraising planning and advice, to assisting them to articulate the impact of their work to the broader community and grow their supporter base.

Companies that participated in state-based coaching and mentoring this year include:• Next Wave Festival (VIC)• BighArt (TAS)• Blindside (VIC)

Darwin Aboriginal Art Fair Foundation (DAAFF) began coaching with our Northern Territory State Manager in 2015, which supported the foundation’s launch into private sector funding.

Its first successful crowdfunding campaign helped the organisation understand who its donors were and how to target them, and to hone their case for support. By December 2015, DAAFF developed its first fundraising strategy, using an all-of-organisation approach, and employed a fundraising consultant. It then secured a business development manager to support staff and board.

Further coaching helped DAAFF redevelop its donor programs, which it relaunched in 2016. In 2016 DAAFF received Plus1 matched funding from us and leveraged this incentive to attract new supporters and secure a three-year donor commitment.

Through ongoing coaching and mentoring we’ve provided support, strategy direction and guidance on the organisational resources needed to drive private sector fundraising; and we’ve encouraged continued engagement with our full suite of services, programs and events, creating sustainable, best practice outcomes for the organisation.

Coaching and Mentoring, and Presentations

Right: Darwin Aboriginal Art Fair, Block printing workshop with Marnin Studio

Case Study: Darwin Aboriginal Art Fair Foundation

• The Australian Dance Party (ACT)

• Canberra Youth Theatre (ACT)• CuriousWorks (NSW)• Steel City Strings (NSW)• Institute of Modern Art (QLD)• Jute Theatre (QLD)• Brisbane Powerhouse (QLD)• Flying Arts Association (QLD)• Inkuji Artists (NT)• Red Hot Arts Central

Australia (NT)• Artaria (SA)• Mandurah Performing

Arts Centre (WA)• Restless Dance Theatre (VIC)• Cygnet Folk Festival (Tas)

State managers also presented at 14 peak industry sector events and forums; and convened and facilitated networking activities with CEOs, chairs, fundraising staff and guests from the local philanthropic community.

The Funding NetworkIn an ongoing partnership with The Funding Network, we supported a live crowd-funding event at Vivid Ideas Sydney for three not-for-profit organisations using art to affect social change – KidsXpress, which offers expressive therapy for traumatised children; Musicians Making A Difference (MMAD), which uses music and dance to assist disadvantaged young people; and Information and Cultural Exchange (ICE), which provides music programs for disadvantaged communities in Western Sydney. Representatives from these organisations pitched their projects live to an audience of more than 150 philanthropists and influencers and the projects raised an impressive $103,200 combined, including $45,000 in matched funding from us.

As we head into the next financial year, we have confirmed our support as the principal partner of international arts fundraising conference, Culture Business in Melbourne, in July 2017, and will expand our reach as an official partner of Australia’s leading music industry conference, BIGSOUND, to be held in Brisbane in September 2017.

Our digital strategyWe continue to develop our digital strategy, with a focus on delivering online programs and services to complement our live activities and harnessing digital to communicate to and upskill a broader, more diverse arts sector.

In May 2017 we launched a new website for Creative Partnerships to give artists, arts organisations, art supporters and investors better, easier access to more useful content, resources and advice and to better showcase the breadth of our programs and services. We consulted with the arts sector on the site’s design and development to ensure a great user experience across all devices.

This year we published more than 60 tools and resources on the Creative Partnerships and Australian Cultural Fund websites, including guides, blog posts, fact sheets, case studies, profiles and videos.

We recognise the importance of providing support to as many people as possible. While we will continue to deliver face-to-face events and services for the arts, philanthropic and business communities, we will grow our bank of online resources and our digital capability and use improved analytics capabilities to determine the best direction and content of our resources over the longer term.

Our partnershipsWe love collaborating with like-minded organisations to give artists and arts organisations access to the best expertise, knowledge, resources and content from around the world.

Our new partnership strategy, developed this year, focused on exploring new and emerging trends, promoting innovative models and increasing our reach across all art forms.

Partnering on industry-specific development programs throughout the year with organisations such as the Public Galleries Association of Victoria and state-based development collectives, we’ve provided valuable support and expertise direct to arts fundraisers.

Focus Area: Providing Expertise Building Capacity

Below: Chunky Move, Rule of Thirds by Anouk van Dijk. Photo: Pippa Samaya



3Management and Accountability

Above: West Australian Symphony Orchestra. Photo: Emma van Dordrecht

We’re committed to tracking trends in philanthropic giving and business sponsorships, assessing the capacity of arts organisations and artists to secure private support, and reporting these insights back to the sector.

Collective givingThis year we led research commissioned by the Department of Social Services on collective giving, a relatively new model of giving in Australia, that involves individuals pooling their resources to fund social change. A first in Australia, Collective giving and its role in Australian philanthropy sheds light on the benefits, challenges and outcomes of this new trend and suggests that collective giving has the potential to cultivate more engaged, more knowledgeable and more long-term philanthropists, and to grow philanthropy in Australia overall.

Research, Trends and Insights into Private Giving

Private sector supportIn June 2017 we released a report on private sector support for the arts in partnership with the Bureau of Communications and Arts Research, the statistical research unit within the Department of Communications and the Arts.

Private Sector Support for the Arts in Australia provides the first estimate of private contributions to the arts in Australia since 2009-10, and confirms the essential role of philanthropy and corporate sponsorship in the sustainability of the sector. The analysis estimates that support has increased from $221.1 million to between $268.5 million in 2009 and $279.8 million in 2015–16. This a positive result points to the value of the arts in Australia, while also highlighting the need for more robust and comprehensive data in this area.

Focus Area: Advocacy Providing Expertise Building Capacity

Below: Punctum, Big Walk to Golden Mountain for Asia TOPA and Castlemaine State Festival

In the coming year we’ll work with our colleagues at state and federal funding agencies to produce more consistent reporting mechanisms. These data sets will form part of our first sector-wide survey on private sector support, provide national benchmarks of fundraising capacity, and add weight to the advocacy of arts organisations, peak bodies and policymakers.

26 Annual Report 2016–17 27

Level 1 48-50 Smith Street Darwin NT

Level 4 2 Kavanagh Street Southbank Vic

Level 2 372 Elizabeth Street Surry Hills NSW

Level 1 25 Francis Street Perth WA

Level 16 111 George Street Brisbane QLD

and mitigation. Group discussions were facilitated allowing staff the opportunity to identify and assess various internal and external risks.

An updated risk register was developed from this process, combining risks identified from the workshop with the current register. The revised register has an increased focus on key strategic risks and less focus on operational risks.

Creative Partnerships’ revised risk management framework was endorsed by the board.

As a low-risk agency, Creative Partnerships continues to adapt our risk management capacity and capability to a level appropriate to our operating environment and resources.

Financial Management Creative Partnerships’ income comprises mostly grant revenue from the Australian Government (61%) and donations raised for the Australian Cultural Fund (36%). Creative Partnerships’ total income for the year was $7,249,918 compared to total expenses of $6,881,485, resulting in a surplus of $368,433. This surplus is comprised of funds unspent due to timing issues associated with the ACF and Australian Government Grants ($269,160), small gains made from the Collective Giving Report commission, and the unwinding of provisions for the Australian Government superannuation liability and Executive Performance Pay ($99,273).

Creative Partnerships invested 54% of its total revenue in grants to the arts sector and maintained its overhead costs at 13% of expenditure (2016: 13%).

Creative Partnerships Australia staff are employed under individual employment (common law) contracts.

Organisation Chart

LocationsCreative Partnerships has offices in five locations in Australia. The major activities of the company are managed from its Melbourne premises.

Board

CEO

Programs &Strategy

State-basedServices

Corporate Services

AustralianCultural Fund

Finance

Funding Programs

SectorDevelopment

Marketing

Digital

Audit &Risk Commitee

Company StructureCreative Partnerships Australia is a business name of the Australia Business Arts Foundation (AbaF). AbaF is a not-for-profit company limited by guarantee, is wholly owned by the Commonwealth and is endorsed as a deductible gift recipient under Subdivision 30-BA of the Income Tax Assessment Act 1997.

AbaF is regulated by the Australian Charities and Not-for-profits Commission Act 2012 and the Corporations Act 2001. AbaF is also required to comply with the Public Governance, Performance and Accountability Act 2013 (PGPA Act), specifically Chapter 3, which sets out requirements for Commonwealth companies, in order that they meet public sector accountability standards.

AbaF is supported by the Australian Government through the Department of Communications and the Arts.

Corporate Governance Creative Partnerships is overseen by a Board of Directors, appointed by the Minister for the Arts. The board is responsible to the Minister for the governance of Creative Partnerships. Creative Partnerships’ board members are Non-Executive Directors.

The Creative Partnerships Board provides strategic guidance to the company, ensures the effective oversight of management, and the accountability of Creative Partnerships to its stakeholders.

The board also:• endorses the annual budget,

corporate plan, compliance and annual report

• reviews quarterly financial and performance reports

• approves expenditure that exceeds the approved authority authorisations

• undertakes annual reviews of the risk management framework, specifically financial and operational risks.

Board oversight is achieved through discussion and actions at quarterly board and sub-committee meetings, board-level strategy sessions and board participation in facilitated strategic planning workshops.

Creative Partnerships maintains a conflict register which is updated at each board meeting.

A senior executive from the Ministry for the Arts attends board meetings as an observer.

Audit and Risk CommitteeThe Creative Partnerships Board maintains an Audit and Risk sub-committee, in accordance with the PGPA Act. The Committee is guided by an Audit and Risk Committee Charter that specifies the role and responsibilities of the Committee.

The Charter is endorsed by the board and reviewed annually. The Audit and Risk Committee undertakes a performance self-assessment process on a periodic basis.

During the 2016-17 financial year, the Committee comprised the following Directors:• Ms Rosheen Garnon (Chair)• Ms Carol Schwartz AM • Ms Samantha Meers • Ms Brett Torossi

The Committee reviewed and gave direction on a range of issues during the year, including approval of the internal audit scope and consideration of its findings, review of Creative Partnerships’ risk management framework and strategy and the financial statements audit.

External and Internal Audits The Auditor-General is the external auditor for Creative Partnerships; representatives of the external auditor are invited to attend all meetings of the Audit and Risk Committee in an observational capacity.

In 2016-17 Creative Partnerships engaged PwC to deliver an internal audit of Creative Partnerships’ payroll and accounts payable processes.

PwC assigned an overall rating of strong controls for both audits, finding key controls were in place and operating effectively and that these controls appropriately mitigate the relevant business risks, and are documented and well understood.

Risk Management In 2016-17, Creative Partnerships’ Audit and Risk Committee engaged PwC to undertake a review of the agency’s Risk Management Framework. The scope of the review included the identification of our highest risk exposures and current controls.

As part of this work, PwC facilitated an all-staff risk management workshop where staff discussed the purpose and structure of a best practice risk register, along with Creative Partnerships’ current processes for risk identification, management

Focus Area: Demonstrating Value

28 Annual Report 2016–17 Section 3: Management and Accountability 29


32 Directors’ Report

42 Directors’ Declaration

43 Statement of Profit or Loss and Other Comprehensive Income

44 Statement of Financial Position

45 Statement of Changes in Equity

46 Statement of Cash Flows

47 Notes to and forming part of the Financial Review

47 Note 1: Summary of Significant Accounting Policies

54 Note 2: Revenue and Other Income

55 Note 3: Expenditure

56 Note 4: Australian Cultural Fund

56 Note 5: Remuneration of Auditors

56 Note 6: Directors’ Renumeration

57 Note 7: Renumeration of Senior Management Personnel

57 Note 8: Related Party Transations — Other Related Parties

57 Note 9: Current Assets

58 Note 10: Non-Current Assets

60 Note 11: Liabilties

62 Note 12: Reserves

63 Note 13: Commitments

63 Note 14: Trust Arrangements

64 Note 15: Contingent Liabilities and Contingent Assets

64 Note 16: Members’ Guarantee

64 Note 17: Cash Flow Information

64 Note 18: Events After the Reporting Date

65 Note 19: Financial Instruments

Financial ReportFor the year ended 30 June 2017

Above: Yirra Yaakin Theatre Company, So Long Suckers

Under 28E of the Public Governance, Performance and Accountability Rule 2014, we are required to report on the following:

Rule Reference Page

Contents of annual report 28E

The purposes of the company as included in the company’s corporate plan for the period 28E(a) 3

The names of the persons holding the position of responsible Minister or responsible Ministers during the period, and the titles of those responsible Ministers

28E(b) 32

Any directions given to the entity by a Minister under the company’s constitution, and Act or an instrument during the period

28E(c) 36

Any government policy orders that applied in relation to the company during the period under section 93 of the Act

28E(d) 36

If, during the period, the company has not complied with a direction or order referred to in paragraph (c) or (d) – particulars of the non-compliance

28E(e) N/A

Information on each director of the company during the period, including: the name of the director, the qualifications of the director, the experience of the director, the number of meetings of the board of the company attended by the director during the period and whether the director is an executive director or non-executive director

28E(f) (i)–(v)

33

An outline of the organisational structure of the company, including any subsidiaries of the company

28E(g) 29

An outline of the location, whether or not in Australia, of major activities or facilities of the company

28E(h) 29

Information in relation to the main corporate governance practices used by the company during the period

28E(i) 28

The decision-making process undertaken by the directors of the company for making a decision if; the decision is to approve the company paying for a goods or service from the Commonwealth entity or a company; the company, and the Commonwealth entity or the company are related entities; and the value of the transaction, or if there is more than one transaction, the aggregate value of those transactions, is more than $10 000 (GST inclusive)

28E(j) (i)–(iii)

N/A

If the annual report includes information under paragraph (j); if there is only one transaction – the value of the transaction; and if there is more than one transaction – the number of transactions and the aggregate of value of the transactions

28E(k) (i)–(ii)

N/A

Any significant activities and changes that affected the operations or structure of the company during the period

28E(l) 32

Particulars of judicial decisions or decisions of administrative tribunals made during the period that have had, or may have, a significant effect on the operations of the company

28E(m) 34

Particulars of any report on the company given during the period by: the Auditor-General; a Committee of either House or of both Houses of the Parliament; the Commonwealth Ombudsman; the Office of the Australian Information Commissioner or the Australian Securities and Investments Commission

28E(n) (i)–(v)

N/A

If the directors have been unable to obtain information from a subsidiary of the company that is required to be included in the annual report – an explanation of the information hat not obtained and the effect of not having the information on the annual report

28E(o) N/A

An index identifying where the requirements of this section and section 28F (if applicable) are to be found.

28E(p) 30

30 Annual Report 2016–17 31


Future Likely Developments

The company will continue to provide support for greater private sector investment in the arts through its programs and initiatives, including matched funding sector skills development and advocacy activities, and the management of the Australian Cultural Fund.

Meetings Of Directors

During the financial year, 7 meetings (including committees of directors) were held. Attendances by each Director were as follows:

Board of Directors Audit and Risk Committee

Eligible to Attend Attended

Eligible to Attend Attended

Ms Carol Schwartz AM 4 4 3 3

Ms Samantha Meers 4 3 3 3

Ms Rosheen Garnon 4 4 3 3

Mr Rupert Myer AO 4 3

Mr Dan Rosen 4 4

Mr Michael Smith 4 4

Professor Susan Street AO 4 4

Ms Brett Torossi 4 4 3 2

Carol Schwartz AM, Chair BA, LLB, MBA, FAICD Director (Non-Executive)

Carol has extensive experience in business, property, the arts, and community organizations and has been a director on many public company and government boards. Carol is currently the Chairman of Our Community and Founding Chair of the Women’s Leadership Institute Australia.

Some of Carol’s other directorships include: Director, Stockland; Director, Reserve Bank of Australia; Director, Qualitas Property Partners; Member, Harvard Kennedy Women’s Leadership Board; Founding Director, Scale Angel Network and a BoardLinks champion.

Carol was awarded a Member of the Order of Australia in the Australia Day Honours list in 2006 for her achievements in business and commerce and her contribution to community and the arts. Carol also received the Centenary Medal in 2001 in recognition of her outstanding service as a leading business executive and board participant.

Carol was awarded a Monash University Fellowship in 2010 in recognition of her significant contribution to the community through her professional distinction and outstanding service as a member of the alumni. In March 2011 Carol was inducted into the 2011 Victorian Women’s Honour Roll. In October 2012 Carol was recognised as one of Australia’s most influential women in the Australian Financial Review and Westpac’s Inaugural 100 Women of Influence Awards.

The Directors submit the Australia Business Arts Foundation financial report for the financial year ended 30 June 2017.

Directors

The names of the Directors in office at any time during the year and to the date of this report are: • Ms Carol Schwartz AM, Chair

• Ms Samantha Meers, Deputy Chair

• Ms Rosheen Garnon

• Mr Rupert Myer AO

• Mr Dan Rosen

• Mr Michael Smith

• Professor Susan Street AO

• Ms Brett Torossi

Responsible Minister

The Minister responsible for the company during the 2016-17 financial year was Senator the Hon Mitch Fifield.

Company Secretary

Emma Calverley held the position of Company Secretary for the duration of the 2016-17 financial year.

Principal Activity

The principal activity of the company during the financial year was the promotion and facilitation of philanthropic and business support for the cultural sector in Australia.

Operating Trading Result

The net result for the year ended 30 June 2017 was $368,433.

Dividends

No dividends have been paid or declared during the year and no dividends are proposed. The company is prohibited by its Constitution from making a distribution to its members.

Significant Changes In The State Of Affairs

There were no significant changes in the state of affairs of the company during the year 1 July 2016 to 30 June 2017.

After Balance Date Events

Other than those outlined in this report, there are no matters or circumstances that have arisen since 30 June 2017 which significantly affected, or may significantly affect, the operations of the company, the results of those operations or the state of affairs of the company in future financial years.

Australian Business Arts Foundation (Creative Partnerships Australia is a business name of Australia Business Arts Foundation)

Directors’ Report



Mr Michael Smith Hon DLitt, FAICD Director (Non-Executive)

Michael has a history in digital, strategy and market research.

Michael is currently the Principal of boutique strategic development consulting firm Black House; and the Chair of 7-Eleven Stores PL; Starbucks Australia; the Lionel Samson Sadleirs Group; and Pioneer Credit Ltd. Michael is the Western Australian Patron of both children’s charity Variety and the Co3 Dance Company.

Previously held roles include Chair of iiNet; Synergy; Verve; the Perth International Arts Festival; Barking Gecko Theatre Company, and the West Coast Eagles. He was National Chair of the Australian Institute of Company Directors; Deputy Chair of Automotive Holdings Group; State President and National Director of the Australian Marketing Institute; National Chair of Judges for EY Entrepreneur of the Year and a Director of HOME Building Society.

In 2014 Michael was awarded a Doctor of Letters from the University of Western Australia for his contribution to the business sector and the arts. Michael is also the recipient of the Patron’s Medal, His Royal Highness Prince Phillip, for his services to marketing by the Australian Marketing Institute.

Professor Susan Street AO MA Director (Non-Executive)

Susan is Executive Director, Queensland University of Technology (QUT) Precincts and formally Executive Dean, Creative Industries Faculty at QUT. Previously held roles include Head of Dance, QUT; Dean, School of Dance, Hong Kong Academy for Performing Arts; Chair, Dance Fund; Council Member of the Australia Council; Trust Director, Brisbane Arts and Environment Trust, Brisbane City Council; Chair, Artistic Advisory Committee and Board Member, Hong Kong Ballet; and Arts advisor to Hong Kong Arts Development Council and the Leisure and Cultural Service Department of Hong Kong Government. Susan was Board Member, Australia-China Council (DFAT); Trustee, Queensland Performing Arts Trust; Australasian Advisor, Royal Academy of Dance in London and Arts Investment Advisory Board, Queensland Government. She is the immediate past Chair, Board of Trustees of the Queensland Art Gallery & Gallery of Modern Art; current Board Member, Australia Korea Foundation; Australia Singapore Arts Group; and Artistic Advisor to the Australian Ballet.

Ms Brett Torossi Director (Non-Executive)

Brett is Founder, Owner and Managing Director of New Ground Network. As a property developer and businesswoman, she focuses on creating and developing innovative, sustainable and commercially successful spaces, focusing on the tourism, residential and commercial developments.

Brett’s other appointments include Chair, Tasmanian Heritage Council; Director, Wallis Watson Capital Ltd; Director, Tourism Tasmanian; Chair, Tourism Tasmania Finance Audit and Risk Committee; Non-singing Director, Festival of Voices; Trustee, Tasmanian Museum and Art Gallery; Chair, Tasmanian Museum and Art Gallery Audit Committee; Director, Tasmanian Development Board; and member, Tasmanian Statewide Brand Steering Group and Director, International Women’s Forum.

Ms Samantha Meers, Deputy Chair BA LLB MLITT FAICD Director (Non-Executive)

Samantha is executive Deputy Chairman of property and investment group the Nelson Meers Group, and co-founder and trustee of the Nelson Meers Foundation. Her current board appointments include chairman of Belvoir St Theatre; chairman of Documentary Australia; a trustee of the Art Gallery of NSW; and a director of the State Library of NSW Foundation. Ms Meers also sits on advisory boards for the University of Sydney and the Centre for Social Impact at the University of NSW. Ms Meers began her career as a commercial lawyer with Mallesons Stephen Jacques (now King and Wood Mallesons), and her executive career included senior management roles in the media sector. Ms Meers is a member of Chief Executive Women and a fellow of the Australian Institute of Company Directors.

Ms Rosheen Garnon BEc/LLB FCA, CTA, GAICD Director (Non-Executive)

Rosheen has over 25 years’ experience in the professional services sector having been a senior partner with KPMG in Australia. Rosheen’s background is in Taxation. She was the National Managing Partner for KPMG Australia’s Taxation Division for 6 years and a member of the National Executive Committee during this time. Rosheen was also a member of KPMG’s Global Tax Steering Group which oversees KPMG’s Global Tax Practice. Rosheen is a member of Chief Executive Women, and a Director of Women Corporate Directors Australia Limited. Her professional qualifications include Fellow of Chartered Accountants Australia & New Zealand, Chartered Tax Advisor and Graduate of the Australian Institute of Company Directors.

Mr Rupert Myer AO BComm, MA, FAICD Director (Non-Executive)

Rupert is Chair of the Australia Council for the Arts and serves as non-executive Chair and Director of a number of public, private, community and government entities. His background includes serving in roles in the retail and property sector, investment, family office and wealth management services and community sector. Current roles include Director of AMCIL Ltd, Healthscope Ltd, The Myer Family Investments Pty Ltd and eCargo Holdings Ltd; and he is a Board Member of Jawun Indigenous Corporate Partnerships and The Yulgilbar Foundation. He is also a member of the University of Melbourne’s Faculty of Business and Economics Advisory Board and The Felton Bequests’ Committee.

Mr Dan Rosen LLM, LLB (Hons)/BCom Director (Non-Executive)

Dan has spent his career at the intersection of the creative industries and technology, working in roles as an executive, policy maker, lawyer, and artist. As Chief Executive of ARIA and PPCA, the two peak bodies forthe Australian recorded music industry, he has led both organisations through the transition to an increasingly digital music market. Prior to his current role, Dan was based in New York, working for digital media company KIT Digital. Before leaving for the United States, Dan worked as Advisor to the Federal Minister of Communications and the Arts, responsible for broadband and innovation policy. Dan started his career as a lawyer with Minter Ellison, specialising in media and technology clients. He is a Fulbright Scholar and completed a Masters of Law at New York University, where he was also a Deans Scholar. An accomplished musician and songwriter, Dan won the Triple J Unearthed competition in 2003 and has independently released two albums. He is former Chair of the New South Wales Creative Industries Taskforce, and member of the Victorian Government’s Creative Victoria Taskforce.



Auditor’s Independence Declaration

The lead auditor’s independence declaration for the year ended 30 June 2017 has been received and can be found on page 38 of the directors’ report.

Signed in accordance with a resolution of the Board of Directors.

Ms S. Meers Ms R. GarnonDirector Director

Dated this 12th day of September, 2017

Directors’ Benefits

The Directors are paid such remuneration and allowances as determined by the Remuneration Tribunal out of the monies of Creative Partnerships Australia. Since 1 July 2016, no director of the company has received or become entitled to receive any other benefit, other than a benefit included in the aggregate amount of emoluments received or due and receivable by directors shown in the accounts or the fixed salary of a full-time employee of the company, by reason of a contract made by the company with the director or any related party.

Indeminities And Insurance Premiums

During the financial year, the company has paid premiums to indemnify directors against third party legal proceedings arising out of their conduct while acting in the capacity of director of the company. Indemnity is provided to directors under the coverage of the company’s insurer, Comcover.

The company has not, during or since the financial year, in respect of any person who is or has been an officer or auditor of the company or a related body corporate:• indemnified or made any relevant agreement for indemnity against a liability, including costs and expenses

in successfully defending legal proceedings; or

• paid or agreed to pay a premium in respect of a contract insuring against a liability for the costs or expenses to defend legal proceedings.

Environmental Issues

The company’s operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a state or territory.

Proceedings On Behalf Of The Company

No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings.

The company was not a party to any such proceedings during the year.

Ministerial Directions And Government Policy Orders

Under section 93 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the Finance Minister may, after consultation with the Minister responsible for the order, make a government policy order that applies to wholly-owned Commonwealth companies. There has been no application of Section 93 of the PGPA Act this this financial year.

There were no directions issued to the company by the responsible Minister, under the company’s constitution, or under any Act or instrument.


39Financial Report38 Annual Report 2016–17


The directors of the company declare that:

1. The financial report and notes, as set out on pages 42 to 64, are in accordance with the Australian Charities and Not-for-profits Commission Act 2012 and the Corporations Act 2001: anda. comply with Australian Accounting Standards; andb. give a true and fair view of the financial position as at 30 June 2017 and of the performance for the year

ended on that date of the company.2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its

debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Ms S. Meers Ms R. GarnonDirector Director

Dated this 12th day of September, 2017

Directors’ Declaration

Note2017

$2016

$

Revenue from operations 2A 2,827,044 2,690,427

Revenue from government and other grants 2B 4,399,000 4,484,000

Finance income 23,874 33,968

7,249,918 7,208,395

Administration expenditure

Employee benefits expense 3A (1,909,937) (1,912,179)

Grant expense 3B (3,939,993) (3,830,724)

Suppliers expense 3C (1,001,599) (995,323)

Depreciation 3D (29,956) (39,396)

(6,881,485) (6,777,622)

Surplus/(deficit) attributable to members of the company 368,433 430,773

Total comprehensive income/(loss) attributable to members of the company 368,433 430,773

The above statement should be read in conjunction with the accompanying notes.

Statement of Comprehensive IncomeFor the Year Ended 30 June 2017


Statement of Financial Positionas at 30 June 2017

Note2017

$2016

$

Assets

Current Assets

Cash and cash equivalents 9A 3,183,033 2,707,155

Trade and other receivables 9B 42,368 103,777

Other assets 9C 132,156 91,326

Other financial assets 9D 15,381 14,950

Total Current Assets 3,372,938 2,917,208

Non-Current Assets

Property, plant and equipment 10A 70,248 94,629

Total Non-Current Assets 70,248 94,629

Total Assets 3,443,186 3,011,837

LiabilitiesCurrent Liabilities

Trade and other payables 11A 718,502 670,650

Short-term provisions 11B 143,104 145,774

Total Current Liabilities 861,606 816,424

Non-Current Liabilities

Long-term provisions 11B 62,946 45,212

Total Non-Current Liabilities 62,946 45,212

Total Liabilities 924,552 861,636

Net Assets 2,518,634 2,150,201

EquityRetained surplus 766,785 463,182

Contributed equity 590,284 590,284

Reserves 12 1,161,565 1,096,735

Total Equity 2,518,634 2,150,201

The above statement should be read in conjunction with the accompanying notes.

Retained Surplus

$

Contributed Equity

$

ACF Donations

Reserve $

Richard Pratt Arts

Scholarship Reserve

$

Small Arts and Bus

Dev Fund Reserve

$Total

$

Opening Balance 1 July 2015

429,224 590,284 623,126 63,706 48,388 1,754,728

Comprehensive income

Surplus/(deficit) for the year

33,958 - 396,815 (45,000) - 385,773

Other Transfers

Transfer of reserves from disposal of assets

- - 9,700 - - 9,700

Total comprehensive income/(expense)

463,182 590,284 1,029,641 18,706 48,388 2,150,201

Balance at 30 June 2016 463,182 590,284 1,029,641 18,706 48,388 2,150,201

Comprehensive income

Surplus/(deficit) for the year

303,603 - 64,830 - - 368,433

Other Transfers

Total comprehensive income/(loss)

766,785 590,284 1,094,471 18,706 48,388 2,518,634

Balance at 30 June 2017 766,785 590,284 1,094,471 18,706 48,388 2,518,634

For a description of each reserve, refer to note 12. The above statement should be read in conjunction with the accompanying notes.

Statement of Changes in EquityFor the Year Ended 30 June 2017


Note2017

$2016

$

Cash Flow from Operating Activities

Cash received

Receipts from governments 4,399,000 4,484,000

Interest received 23,874 33,968

Receipts from ACF donations 2,525,815 2,518,525

Other receipts 370,293 569,670

Total cash received 7,318,982 7,606,162

Cash used

Payments to suppliers (1,388,443) (1,029,281)

Payments to employees (1,888,994) (1,912,179)

Payments to grants recipients (1,070,479) (1,510,606)

Payments to ACF grants recipients (2,489,614) (2,121,710)

Total cash used (6,837,529) (6,573,776)

Net cash generated from / (used by) operating activities 17A 481,453 1,032,387

Cash Flow from Investing Activities

Proceeds from sale of plant & equipment - -

Purchase of property plant and equipment (5,575) -

Net cash used by investing activities (5,575) -

Net Increase (Decrease) in cash held 475,878 1,032,387

Cash and cash equivalents at beginning of the financial year 2,707,155 1,674,768

Cash and cash equivalents at end of the financial year 8A 3,183,033 2,707,155

The accompanying notes form part of these financial statements.

Statement of Cash FlowsFor the Year Ended 30 June 2017

Notes to and Forming Part of the Financial ReportFor the Year Ended 30 June 2017

The financial statements are for Australia Business Arts Foundation Limited, trading as Creative Partnerships Australia, as an individual entity, incorporated and domiciled in Australia.

Australian Business Arts Foundation is a Commonwealth company limited by guarantee. The registered office and the prinicpal place of business of the company is Level 4, 2-4 Kavanagh Street, Southbank, VIC 3006.

Note 1: Summary of Significant Accounting Policies

Basis of PreparationThe financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board (AASB), the Australian Charities and Not-for-profits Commission Act 2012 that apply for the reporting period and the Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under the Australian Accounting Standards.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

Accounting Policies

1.1 RevenueRevenue is recognised as follows:• Non-reciprocal grants revenue is recognised in the statement of profit or loss and other comprehensive

income when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably.

• Grants with conditions attached which must be satisfied before the contributions will be received will be recognised as revenue only when those conditions are satisfied.

• When grant revenue is received whereby the company incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

• Donations and bequests are recognised as revenue when received.

• Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument.

• Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

• Sponsorship income is recognised as revenue to the extent that they have been received or are entitled to be received at year-end.

• Partnership income is deferred and recognised in the statement of profit or loss and other comprehensive income over the period necessary to match them with the costs that they are intended to compensate.

• Revenue from the sale of goods is recognised upon the delivery of goods to customers.

All revenue is stated net of the amount of goods and services tax (GST).


1.2 Economic DependencyAbaF is a wholly owned Commonwealth company and received approximately 94% (2016: 94%) of its income from the Australian Government for funding of its operations. The company would not be able to continue its operations in 2016-17 without Australian Government funding.

1.3 Income TaxNo provision for income tax has been raised as the company is exempt from income tax under Section 50-45 of the Income Tax Assessment Act 1997.

1.4 Cash and Cash EquivalentsCash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of three months or less.

1.5 Acquisition of AssetsAssets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition.

1.6 Property Plant and Equipment

Leasehold improvementsLeasehold improvements are shown at their fair value based on periodic valuations by external independent valuers, less subsequent depreciation.

In periods when the leasehold improvements are not subject to an independent valuation, the directors conduct directors’ valuations to ensure the carrying amount is not materially different to the fair value.

Increases in the carrying amount arising on revaluation of leasehold improvements are recognised in other comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of assets shall be recognised in other comprehensive income under the heading of revaluation surplus. All other decreases are recognised in profit or loss.

Any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Property Plant and EquipmentEach class of property, plant and equipment is carried at cost or fair value as indicated, less, where applicable accumulated depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable costs.

Asset Recognition ThresholdPurchases of plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the company where there exists an obligation to restore the property to its original condition. These costs are included in the value of the company’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.

DepreciationThe depreciable amount of all fixed assets is depreciated on a straight-line basis over the assets useful life to the entity commencing from the time the asset is ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Depreciation rates used for each class of depreciable assets are:

Class of fixed asset Depreciation Rate

Plant and equipment 15% to 30%

Leasehold improvements 25%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Asset classes carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the Statement of profit or loss and other comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

1.7 Provision for Lease MakegoodA provision is recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle an obligation at the end of the reporting period.

1.8 Trade and Other PayablesTrade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period which remain unpaid. The balance is recognised as a current liability with amounts normally paid within 30 days of recognition of the liability.


1.9 Employee BenefitsProvision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period.

Short-term employee benefitsEmployee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled.

Long-term employee benefitsEmployee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. Those cash outflows are discounted using market yields on notional government bonds with terms to maturity that match the expected timing of cash flows.

Contributions are made by the company to an employee superannuation fund and are charged as expenses when incurred.

1.10 LeasesLease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the lease term which is representative of the pattern of benefits derived from the leased assets.

1.11 Financial Instruments

Initial recognition and measurementFinancial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified ‘at fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately.

Classification and subsequent measurementFinancial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as:i. the amount at which the financial asset or financial liability is measured at initial recognition;ii. less principal payments;iii. plus or minus the cumulative amortisation of the difference, if any, between the amount initially

recognised and the maturity amount calculated using the effective interest method; andiv. less any reduction for impairment.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions of the expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

(i) ReceivablesReceivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

Receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting period, which will be classified as non-current assets.

(ii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the company’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

(iii) Financial liabilitiesNon-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

ImpairmentAt the end of each reporting period, the company assesses whether there is objective evidence that a financial instrument has been impaired. Impairment losses are recognised in the Statement of profit or loss and other comprehensive income.

DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.


1.12 Fair Value of Assets and LiabilitiesThe company measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.

Fair value is the price the company would receive to sell an asset or would have to pay to transfer a liability in an orderly (ie unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

To the extent possible, market information is extracted from either the principal market for the asset or liability (ie the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (ie the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).

For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.

1.13 Goods and Services Tax (GST)Revenues, expenses and receivables are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (“ATO”). In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented in the statement of cashflows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

1.14 Comparative FiguresWhere required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

When an entity applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements, a statement of financial position as at the beginning of the earliest comparative period must be disclosed.

No changes of comparative figures were required in the current financial year.

1.15 Critical Accounting Estimates, Judgments and AssumptionsThe directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company.

Impairment of non-financial assetsThe company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

Estimation of useful livesManagement reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical obsolescence that may change the utility of certain software and IT equipment.

Employee Benefits ProvisionThe liability for employee benefits is recognised and measured at the present value of the estimated cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements.


Note 2: Revenue and Other Income

Note2017

$2016

$

Note 2A: Revenue from Operations

Partnerships and sponsorships - 45,000

Fees – ticketing income 28,995 9,476

Donations 123,219 113,269

ACF donations received 2,554,444 2,518,525

Service income 50,400 -

Other gains (a) 69,986 4,157

Total revenue from operations 2,827,044 2,690,427

(a) Other gainsOther gains for 2017 represents the reversal of the Australian Government superannuation provision and the adjustment to the key management performance pay.

Note 2B: Revenue from Government and Other Grants

Grants – Australian Government – Operational Funding 2,649,000 2,624,000

Grants – Australian Government – Program Funding 1,750,000 1,780,000

Grants – Department of Culture and Arts WA - 80,000

Total revenue from Government and other grants 4,399,000 4,484,000

Note 3: Expenditure 2017

$2016

$

Note 3A: Employee Benefits Expense

Wages and salaries 1,888,994 1,873,767

Other employee expense 20,943 38,412

Total employee benefits 1,909,937 1,912,179

Note 3B: Grant Expense

Grant expense 1,441,400 1,629,014

State grant expense 8,979 80,000

ACF grants paid 2,489,614 2,121,710

Total grant expense 3,939,993 3,830,724

Note 3C: Suppliers Expense

Supply of goods and services 870,206 870,917

Lease payments 131,393 124,406

Total supplier expense 1,001,599 995,323

Note 3D: Depreciation

Depreciation

Leasehold improvements 19,240 19,292

Plant and equipment 10,716 20,104

Total depreciation 29,956 39,396


Note 4: Australian Cultural Fund

The company administers the Australian Cultural Fund (ACF) to enable donors to make a donation to support the cultural life of Australia and to express a preference for the use of these donations. The bona fide nature of the proposed cultural recipient is verified prior to a decision to make a grant.

Donations received are required to be recognised as revenue upon receipt of the donation whereas the corresponding grant to the preferred recipient is required to be recognised as expenditure when the grant is made. A timing difference will occur where the financial year in which donations are received and included in income does not coincide with the financial year in which the associated grant is paid and recorded as expenditure.

Such timing differences during the financial year resulted in an ACF surplus of $64,830.

Note 5: Remuneration of Auditors 2017

$2016

$

Auditor remuneration

• audit of the financial statements 25,200 25,200

Total remuneration of auditors 25,200 25,200

Note 6: Directors’ Remuneration

The number of non-executive directors of the entity included in these figures are shown below in the relevant remuneration bands:

No. No.

$10,000 – $19,999 6 6

$20,000 – $29,999 1 1

$30,000 – $39,999 1 1

Total 8 8

Total remuneration received or due and receivable by directors of the company

161,300 148,535

Superannuation contributions amounting to $15,324 (2015–16: $14,111) were paid on behalf of directors.

Note 7: Key Management Remuneration

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly, including any director (whether executive or otherwise) is considered a senior management personnel.

2017 $

2016 $

Senior Management Personnel remuneration

• short-term benefits 246,194 238,208

• post-employment benefits 21,670 19,781

• other long-term benefits - -

Total remuneration of senior management personnel 267,863 257,989The total number of senior management personnel that are included in the above table is 1 (2016:1).

Note 8: Related Party Transactions – Other Related Parties

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

There have been no loans or grants made to the directors or director-related entities during the financial year.

There have been no other related party transactions during the financial year.

Note 9: Current Assets

Note2017

$2016

$

Note 9A: Cash and Cash Equivalents

Cash at bank and on hand 3,183,033 2,707,155

Total cash and cash equivalents 3,183,033 2,707,155

Note 9B: Trade and Other Receivables

Trade receivables 9B(i) 42,368 103,248

Sundry receivables - 529

Total current trade and other receivables 42,368 103,777

(i) Provision for Impairment of ReceivablesCurrent trade receivables are generally on 30 day terms. These receivables are assessed for recoverability and a provision for impairment is recognised when there is objective evidence that an individual trade receivable is impaired. These amounts have been included in other expense items.

Receivables have been assessed for impairment and it has been determined that no impairment exists at 30 June 2017.


All trade receivables are within initial trade terms.

Note2017

$2016

$

Note 9C: Other Assets

Prepayments 33,976 31,147

GST receivables 98,180 60,179

Total other assets 132,156 91,326

Note 9D: Other financial assets

Held-to-maturity investments 15,381 14,950

Total short-term investments 15,381 14,950

Note 10: Non-Current Assets 2017

$2016

$

Note 10A: Property, Plant and Equipment

Leasehold improvements – at valuation 77,170 77,170

Less: Accumulated depreciation (48,471) (29,231)

Total leasehold improvements 28,699 47,939

Plant and equipment at cost 69,007 313,150

Less: Accumulated depreciation (27,458) (266,460)

Total plant and equipment 41,549 46,690

Total Property, Plant and Equipment 70,248 94,629

The company’s property, plant and equipment measured at fair value at 30 June 2017 and 30 June 2016.

Non- financial assets fair value measurements - valuation processes The entity procured the service of the Australian Valuation Solutions Pty Ltd (AVS) to undertake a comprehensive valuation of all non-financial assets at 30 June 2015. Creative Partnerships Australia tests the procedures of the valuation model as an internal management review at least once every 12 months (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. Creative Partnerships Australia has engaged Australian Valuation Solutions (AVS) to provide written assurance that the models developed comply with AASB 13.

Significant inputs utilised by the company are derived and evaluated as follows:

Leasehold Improvements - Physical Depreciation and Obsolescence Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost (Depreciated Replacement Cost or DRC) approach. Under the DRC approach the estimated cost to replace the asset is calculated and then adjusted to take into account physical depreciation and obsolescence. Physical depreciation and obsolescence has been determined based on professional judgment regarding factors relevant to the asset under consideration.

Sensitivity of inputs

Leasehold Improvements & Property, Plant and Equipment – Consumed economic benefit / Obsolescence of asset The significant unobservable inputs used in the fair value measurement of Creative Partnerships Australia’s leasehold improvements asset classes relate to the physical depreciation and obsolescence deduction. A significant increase (decrease) in this input would result in a significantly lower (higher) fair value measurement.

Note 10B: Movement in Carrying AmountsMovement in the carrying amounts for each class of property, plant & equipment between the beginning and the end of the current financial year:

Leasehold Improvements

$

Plant and Equipment

$Total

$

Balance as at 1 July 2016 47,939 46,690 94,629

Additions - 5,575 5,575

Depreciation expense (19,240) (10,716) (29,956)

Carrying amount at 30 June 2017 28,699 41,549 70,248

Asset RevaluationThe company’s tangible non-finanical assets were independently valued at 30 June 2015 by the Australian Valuation Office (AVO). The valuation was based on fair value. Due to the disposal of the assets in the former premises, amounts included in the revaluation surplus relating to the disposed assets were transferred to retained earnings

At 30 June 2017 the directors reviewed the key assumptions made by the valuers at 30 June 2015. They have concluded that these assumptions remain materially unchanged, and are satisfied that the carrying amount does not exceed the recoverable amount of leasehold improvements at 30 June 2017.

Refer to Note 19 for detailed disclosures regarding the fair value measurement of the company’s leasehold improvements.


Note 11: Liabilities 2017

$2016

$

Note 11A: Trade and Other Payables

Current

Trade payables 136,196 106,091

Sundry payables 582,306 487,372

Australian Government superannuation - 27,187

Unexpended Grants payable - 50,000

Total current trade and other payables 718,502 670,650

Note 11B: Provisions

Short-term provisions

Employee provisions 119,410 124,442

Long service leave 23,694 21,332

Lease make-good - -

Total short-term provisions 143,104 145,774

Long-term provisions

Long service leave 36,411 18,677

Lease make-good 26,535 26,535

Total long-term provisions 62,946 45,212

Total provisions 206,050 190,986

Total provisions are expected to be settled in:

No more than 12 months 143,104 145,774

More than 12 months 62,946 45,212

Total provisions 206,050 190,986

Employee Benefits

$

Lease Makegood

$Total

$

Note 11C: Movement in Provisions

Opening balance at 1 July 2016 164,451 26,535 190,986

Additional provisions raised during year 127,041 - 127,041

Amounts used (111,977) - (111,977)

Balance at 30 June 2017 179,515 26,535 206,050

Note 11D: Provision for Long service leave

A provision has been recognised for employee benefits relating to long service leave. In calculating the present value of future cash flows, in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employees’ benefits has been included in Note 1 to this report.

Note 11E: Make good provision

The company’s current lease agreement have provisions requiring the company to restore the premises to their original condition at the conclusion of the lease. The company has made a provision to reflect the present value of this obligation.


Note 12: Reserves

Note2017

$2016

$

ACF Donations Reserve 12A 1,094,471 1,029,641

Richard Pratt Arts Scholarship Reserve 12B 18,706 18,706

Small Arts and Business Development Fund Reserve 12C 48,388 48,388

1,161,565 1,096,735

Note 12A: ACF Reserve Movements during the year

Opening balance 1,029,641 623,126

Movement in ACF donations reserve 4 64,830 396,815

Transfers from termination of program - 9,700

Closing balance 1,094,471 1,029,641

ACF donations received are held in the ACF Reserve pending the grant verification process. The balance of the reserve at the end of the financial year represents unexpended ACF donations recorded as income.

Note 12B: Richard Pratt Arts Scholarship Reserve Movements during the year

Opening balance 18,706 63,706

Surplus / (deficit) for the year - (45,000)

Transfers from / (to) retained surplus - -

Closing balance 18,706 18,706

The Pratt Foundation made donations to be used for masterclasses and workshops to support skills development in the arts.

Note 12C: Small Arts and Business Development Fund Reserve Movements during the year

Opening balance 48,388 48,388

Transfers from (to) retained surplus - -

Closing balance 48,388 48,388

Dame Elisabeth Murdoch made donations to start the “Small Arts and Business Development Fund” to be used to develop and pilot new programs and activities for the benefit of small arts and business.

Note 13: Commitments 2017

$2016

$

Operating Lease Commitments

Non-cancellable operating leases contracted for but not capitalised in the financial statements

Payable – One year or less 114,465 124,832

– Later than 12 months but not later then five years 37,375 127,795

151,840 252,627

The operating lease commitment for the financial year ended 30 June 2017 are for the lease of Melbourne, Sydney, Darwin and Perth office accommodation and a photocopier. Commitments are shown exclusive of GST.

There were no other commitments at balance date.

Note 14: Trust Arrangement

The company established the Premiers’ Arts Partnership Funds (PAPF) in South Australia, Western Australia and Tasmania with the financial support of a business partner and the state government.

The business partner and the state government contribute towards an incentive fund that is designed to stimulate the small to medium sector to partner with the arts in their state by matching their financial commitment to a designated amount.

This fund is promoted and administered by the company, with the Fund Review Panel comprising representatives from the company, the state government and the business partner assessing and approving all grants.

This program has concluded in the prior financial year and the remaining $9,700 has been reallocated to the Australian Cultural Fund program.

The following PAPF transactions during the financial year were not included in the company’s income statement and balance sheet.

SA PAPF WA PAPF Tas PAPF Total2017

$2016

$2017

$2016

$2017

$2016

$2017

$2016

$

Balance – 1 July 2016 - 250 - 3,068 - 6,382 - 9,700

Receipts - - - - - - - -

Expenditure - (250) - (3,068) - (6,382) - (9,700)

Balance – 30 June 2017 - - - - - - - -


Note 15: Contingent Liabilities and Contingent Assets

At 30 June 2017, there were no contingent liabilities or contingent assets.

Note 16: Members’ Guarantee

The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $50 towards meeting any outstanding obligations of the company. At 30 June 2017, the number of members was 3 (30 June 2016: 3).

Note 17: Cash Flow Information 2017

$2016

$

Note 17A: Reconciliation of Cash Flow from Operations with Profit from Ordinary Activities

Profit from ordinary activities 368,433 430,773

Non cash flows in profit (loss)

Depreciation 29,956 39,396

Loss (profit) on disposal of plant and equipment - -

Changes in assets and liabilities

(Increase)/decrease in receivables 61,409 (93,522)

Increase/(decrease) in provisions 15,064 32,990

Increase/(decrease) in liability to programs suppliers and other suppliers and employees

47,852 89,370

(Increase)/decrease in other assets (41,261) 533,379

Net cash generated from / (used by) operating activities 481,453 1,032,387

Note 17B: Credit Stand-by Arrangement and Loan Facilities The company has a bank guarantee in favour of the Melbourne property lessors for an amount of $14,950.

Note 18: Events After the Reporting Date

There are no events after the reporting date that have or will materially affect the financial position of the company.

Note 19: Financial Instruments

The company’s financial assets consist of cash and trade receivables, and financial libilities consist of trade payables.

2017 $

2016 $

Note 19A: Net Gains or Losses on Financial Assets

Loans and receivables

Interest revenue 23,874 33,968

Net gains on loans and receivables 23,874 33,968

Net gains on financial assets 23,874 33,968

Financial Risk Management PoliciesThe directors of the company meet on a regular basis to analyse financial risk management strategies and policies in the context of the most recent economic conditions and forecasts to assist the company in meeting its financial targets, whilst minimising potential adverse effects on financial performance.


Creative Partnerships Australia ABN: 88 072 479 835

Published by Creative Partnerships Australia Level 4, 2–4 Kavanagh Street Southbank VIC 3006 October 2017

Also published on creativepartnershipsaustralia.org.au

This publication is copyright. No part may be reproduced by any process except in accordance with the Copyright Act 1968

Design: Aer Design Print: Bambra Press Cover paper: Monza Satin Recycled Internal paper: Sovereign Offset

Cover image: Black Swan State Theatre Company and National Theatre of China, The Caucasian Chalk Circle

Below: Black Swan State Theatre Company, Angels in America. Photo: Daniel James Grant


Contact usLevel 4 2–4 Kavanagh Street Southbank VIC 3006

T +61 3 9616 0300

creativepartnershipsaustralia.org.au

http://creativepartnershipsaustralia.org.au

Annual Report 2016–17 · 2019. 12. 19. · 02 Annual Report 2016–17 01 02 Section 1: Our...

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