Music NSW Incorporated ABN 50 416 153 997
Financial Statements
For the Year Ended 31 December 2018
Music NSW Incorporated
ABN 50 416 153 997
Contents For the Year Ended 31 December 2018
Page
Financial Statements Directors' Report 3 Auditor's Independence Declaration under Section 60-40 Australian Charities and Not for Profit Commission Act 2012 7 Statement of Profit or Loss and Other Comprehensive Income 8 Statement of Financial Position 9 Statement of Changes in Equity 10 Statement of Cash Flows 11 Notes to the Financial Statements 12 Responsible Persons' Declaration 17 Independent Audit Report 18 Music NSW Incorporated
ABN 50 416 153 997
Chairs Report
MusicNSW had another highly successful year. The organisation has done significant work to expand and strengthen its presence in the advocacy and policy space through extensive engagements with government stakeholders. This has been very important, as there have been a range of challenges to the music industry and stakeholders in that period. Over the course of the year, all corners of the political spectrum have sought the expertise and advice of MusicNSW on a range of key issues. As a consequence, MusicNSW has been more strongly positioned in the field as a key conduit for advice and expertise and the organisation has increased its visibility greatly with industry stakeholders. It is very clear that musicians, industry workers, organisations and governments all value the work that MusicNSW does.
The year saw a busy program of activity that flowed from the decision by CreateNSW to delay the next multi-year funding round for a range of administrative reasons. Accordingly, we had to delay what would have been the usual process of refreshing the organisation’s strategic plan for the new funding application. This has not stopped the organisation from moving ahead on key strategies that it considers important, despite the fact that delays to the funding round meant that we could not pitch for increased funding to expand on delivery. Of particular importance to note here, in respect of the annual report, is the decision by the board to approve the use of some cash reserves to launch a pilot of a new regional music development officer initiative. MusicNSW is in a very strong cash reserve position through successive years of prudent financial management. It therefore has a cash reserves position that can support important new pilot initiatives that may lead to ongoing support from funding stakeholders. The reserves have been able to underwrite the costs of a regional ‘proof of concept’ project that may establish a sufficient evidence base and value proposition that might warrant investment from our funding stakeholders. This ability to move forward on important initiatives and ride through changes to funding rounds is evidence of the strength of MusicNSW.
On behalf of the board, I would like to thank our General Manager, Emily Collins, for her exceptional leadership, along with Laura Murdoch and Mari Stuart for their excellent work in delivering projects and opening up new opportunities for the organisation. I would also like to thank our hard-working board for the time, energy and the intellect they bring to the discussions around the current and future activities of the organisation.
Professor Julian Knowles Chair, MusicNSW
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ABN 50 416 153 997
Treasurer’s Report
MusicNSW continues to be managed in a financially prudent manner, ensuring all compliance obligations are met and key funding objectives are delivered. During 2018 the organisation celebrated a 20-year life span, delivered a new website, and also began researching strategies for additional income streams to continue to ensure stability and longevity.
During 2018 the Music NSW marked a 20-year anniversary, which in itself is evidence of a vibrant and relevant organisation, that is fiscally responsible and growing. Additional funds were approved by the board to be allocated for a 20th Anniversary Party held at the Lansdowne Hotel, featuring live performances by NSW artists and speeches by key staff and the Minister. Many key industry personnel attended along with past MusicNSW employees, many of whom still work within the music industry.
The MusicNSW team also delivered a new website on time and within budget. The new website serves as focal point for grass roots industry and those looking to increase their skills and connect with others in the music industry.
Another key budget spend was for staff wages. The board approved a salary increase for our Managing Director Emily Collins. This increase was not only to reflect Emily’s tireless, inspiring, and innovative work with the organisation, but also to bring our Managing Director’s pay in line with other state industry body representatives and address gender parity.
The board also approved increasing long term employee Mari Stuart from 4 days per week to 5 days per week. The Board agreed that retaining quality staff through offering stability and appropriate remuneration is a top priority for the longevity of the organisation.
Notes to the Financial Statements for 2019 include:
1: Deficit or loss on statement of financial income reflects funds spent on the Indent Tour which were originally allocated to 2017 to but spent in 2018. This variation of delivery of activities was approved by Create NSW at the end of 2017.
2: Other financial liabilities of $478,500 is Grants Received in Advance - funds received in 2017 to be spent during 2018.
The financial management of the organisation remains unchanged for 2018 with Emily Collins over-seeing the day to day of budgeting and payments. The bookkeeping and financial reporting are outsourced to MyAccounts at an affordable rate. Organisational fixed costs are closely monitored with significant changes requiring Board approval, as per the salary increases mentioned above. MusicNSW also moved to more economical offices spaces during 2018 which fell within budget.
For 2018 and beyond MusicNSW will continue to thrive and not only deliver programs to cultivate the Music Industry in NSW but research and implement best practise models for managing surplus and implementing a DGR donations campaign to expand income streams and add to ongoing certainty.
Kristy Wilson Treasurer
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ABN 50 416 153 997
Committee Report 31 December 2018
Information on directors
The directors present their report on Music NSW Incorporated for the financial year ended 31 December 2018.
General information
Committee members
The names of committee members throughout the year and at the date of this report are: Julian Knowles Chair Jana Gibson Deputy Chair Kristy Wilson Treasurer Jane Slingo Vic McEwan Emily Nicol Kathryn Holloway Emily Collins Sec, Managing Director
Review of operations
The profit of the entity after providing for income tax amounted to $ (71,296).
Other items
Events after the reporting date
No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the entity, the results of those operations or the state of affairs of the entity in future financial years.
Information on directors Julian Knowles Qualifications Julian is a musician, producer and senior academic with a career spanning over 20 years. Julian has an extensive background in the Australian and UK independent music scenes. One of his bands, Even As We Speak, achieved significant chart success in the UK and was one of only four Australian bands ever to be invited to record sessions for the prominent BBC Radio 1 DJ, John Peel. Julian has a decade of senior academic leadership experience, having held Head of School positions at the University of Western Sydney, University of Wollongong and Queensland, University of Technology. He has consulted to arts funding agencies and has served as a member of the Music Board of the Australia Council for the Arts. In addition, he has more than a decade of experience as a chair and board member in the not-for-profit arts sector, having held the chair position at Q Music for 6 years and serving on the boards of the Music Council of Australia, The Wired Lab, and the National Council of Tertiary Music Schools. As an expert consultant he has led external reviews at the University of Technology Sydney and Southern Cross University. Julian is currently Professor of Music in the Department of Media, Music, Communication and Cultural Studies at Macquarie University in Sydney, Australia, where he is also the Research Leader for the Music and Sound Cultures Group and the Creative Ecologies Lab.
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ABN 50 416 153 997
Committee Report 31 December 2018
Information on directors Kristy Wilson Qualifications Recently appointed MusicNSW Treasurer Kristy Wilson completed her Diploma of Accounting in June 2017. Currently Kristy works as the Tax Manager at film and tv specialist firm Above The Line Accounting and also is a Bookkeeper for music technology start up Jaxsta.
Kristy began her career in finance as the Business Manager for boutique investment company Romulus Management. She then undertook specialist tax training at H&R Block for whom she had completed three tax seasons.
Kristy also brings a wealth of experience working in the music industry where she was National Event Administrator for the Big Day Out (2005-2011), freelance music publicist, and project manager MusicNSW.
Jane Slingo Qualifications Jane has worked in the electronic music biz for over twenty years in a variety of roles. Jane is currently an artist manager, Executive Producer for Electronic Music Conference and consultant to a handful of agencies for projects specific to electronic music.
Vic McEwan Qualifications Vic McEwan is an interdisciplinary artist exploring sound, video and installation. He is a producer and director who is interested in landscape, communities, remote spaces and cross art form collaboration. Vic is the Inaugural Arts NSW Regional Arts Fellow. This involves Vic working as the 2015 Artist in Residence at the National Museum of Australia, exploring human engagment with the landscape. Vic is also undertaking a major arts/health project in the UK with Manchester University and Alder Hey Children’s Hospital working towards the use of contemporary arts in trauma reduction. Vic has devised, developed and presented a diverse program of past work involving major partnerships with multiple outcomes ranging from flood trauma recovery to interactive gallery installations.
Emily Nicol Qualifications Emily Nicol is an Aboriginal/Torres Strait Islander media professional based in Sydney. Working in a diverse range of positions within media including journalism, TV production, Music and events, Emily currently produces/presents ‘Making Tracks’, the drive time show on Sydney's Koori Radio, is a digital producer with NITV, and freelance journalist with articles featured in such publications as The Guardian, SBS Life, Time Out.
Growing up in a family immersed in the music & entertainment business, Emily got her first taste of show business at 6 months of age when she was cast in a popular Australian TV series A Country Practice, followed by appearances in film and mini-series - sparking an intimate knowledge of the art and process of storytelling, which has captivated her ever since, and is one of the main driving forces behind her current career aspirations.
While passionate about music, arts and culture, Emily has also nurtured other diverse interests and passions over the years which inform a strong commitment to contributing to positive social change, healing, and equality-especially for women and Indigenous cultures- by means of showcasing strong role models, empowering artists and generational leaders through a variety of different mediums including, music, image, theatre, dance and more.
Recently Emily was Guest Editor for a special edition of Time Out Sydney ‘The Deadly Issue, which celebrated the many contributions of Indigenous Sydneysiders and which was nominated for a Mumbrella Publishing award in the ‘Special Edition of The Year’ category. Emily curated the first official dedicated Australian Indigenous playlist for Spotify, launched 5 Music NSW Incorporated
ABN 50 416 153 997
Committee Report 31 December 2018
Information on directors during NAIDOC Week 2017 – ‘Black Australia’ and has been a guest speaker on Spotify Music panel on Diversity and Inclusion in the music industry and alongside artists such as FlexMami and AlphaMama on a special panel for the Inaugural Women in Music Empowerment Day. Emily is enjoying being back in front of the camera producing and presenting a series of movie reviews for Indigenous Australian films for the Ozflix platform. She has also just been appointed on the Board of Directors for MusicNSW guiding local artists and is a part of the Audiocraft conference programming committee, offering a voice for community radio and the diverse voices within audio and podcasting in Australia.
Kathryn Holloway Qualifications As General Manager of Cattleyard, Kathryn continues to work with Groovin the Moo, THE PLOT and pursue her love of management in the music and community sectors with Newtown Festival, NGO’s such Side Of Stage (CanTeen).
While completing her B Arts (Communication Studies) at Newcastle University (2000-2003), Kathryn held a number of internships. It was a communications role with Malcolm Sargent Cancer Fund For Children (now known as Red Kite) and a marketing role with 1233 ABC Newcastle that were key influencing factors on her career direction.
From 2004 – 2010 Kathryn coordinated the 1233 ABC Newcastle Music Awards project (supporting and giving airplay to the regions up and coming artists) for the Nation's Broadcaster (ABC). In-between each annual event, she starting building her career in publicity by learning from the best in the music PR business (with Paula ‘jonesy’ Jones) and taking on a variety of roles for Gadigal Music and ABC Music with Homebake, Waveaid, Bluesfest, Soundwave and Groovin the Moo rounding out her festival experience.
She has had the privilege of working as a programming assistant at some of Australia's finest arts festivals - Perth International Arts Festival (2007 & 2008) and Sydney Festival (2010 & 2011).
Kathryn’s work with Groovin the Moo (Cattleyard Promotions) started in 2006 and has evolved from Publicist to Artist Relations Manager to Event Manager to then being made General Manager for the six-show regional tour in July 2012.
Jana Gibson Qualifications As the Director of Writer Services at APRA AMCOS, Jana leads a team committed to delivering high levels of service to songwriter and composer members in what is a dynamic but complex environment. Having started her working life in hospitality on the NSW north coast, she developed her passion for music by spending most of her free time at live music gigs. Moving into roles in event management for several years across numerous corporate (Lexus, Toyota, HIA) and live music events (ARIA after-parties to live concerts at the Olympics), meant she was well placed to begin her role as Corporate Events Manager at APRA AMCOS in 2003. Jana oversaw the delivery of the organisation’s large scale events, from Awards nights to industry conferences, which led to her appointment as Deputy Director of Communications & Events in 2014. With 13 years of managerial experience across events, communications and member services at APRA AMCOS, Jana was promoted to her current role in 2016. Jana holds a Bachelor of Business in Tourism from Southern Cross University. She recently completed the Developing Strategy for Value Creation programme at the prestigious London Business School.
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Music NSW Incorporated
ABN 50 416 153 997
Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2018
2018 2017 Note $ $ Revenue 506,525 674,795 Marketing expenses (26,991) (59,145) Occupancy costs (37,168) (47,051) Administrative expenses (447,031) (498,850) Other expenses (66,631) (73,311)
Profit before income tax (71,296) (3,562) Income tax expense - -
Profit from continuing operations (71,296) (3,562) Profit for the year (71,296) (3,562)
Other comprehensive income, net of income tax
Items that will not be reclassified subsequently to profit or loss Other FX exchange - 477 Items that will be reclassified to profit or loss when specific conditions are met Transfer from reserve 2,402 63,632
Other comprehensive income for the year, net of tax 2,402 64,109 Total comprehensive income for the year (68,894) 60,547
The entity has not restated comparatives when initially applying AASB 9, the comparative information has been prepared under AASB 139 Financial Instruments: Recognition and Measurement.
The accompanying notes form part of these financial statements. 8 Music NSW Incorporated
ABN 50 416 153 997
Statement of Financial Position As At 31 December 2018
2018 2017
Note $ $
ASSETS
CURRENT ASSETS Cash and cash equivalents 4 901,927 427,285 Trade and other receivables 5 21,196 25,087 Other assets 7 1,352 3,554
TOTAL CURRENT ASSETS 924,475 455,926
NON-CURRENT ASSETS Other financial assets 7,352 7,302 Property, plant and equipment 6 6,513 8,740
TOTAL NON-CURRENT ASSETS 13,865 16,042 TOTAL ASSETS 938,340 471,968
LIABILITIES
CURRENT LIABILITIES Trade and other payables 8 73,435 23,641 Current tax liabilities 11 551 4,915 Employee benefits 10 18,305 6,969 Other financial liabilities 9 478,500 -
TOTAL CURRENT LIABILITIES 570,791 35,525
NON-CURRENT LIABILITIES TOTAL LIABILITIES 570,791 35,525 NET ASSETS 367,549 436,443
EQUITY Retained earnings 367,549 436,443
367,549 436,443 TOTAL EQUITY 367,549 436,443 The entity has not restated comparatives when initially applying AASB 9, the comparative information has been prepared under AASB 139 Financial Instruments: Recognition and Measurement.
The accompanying notes form part of these financial statements. 9 Music NSW Incorporated
ABN 50 416 153 997
Statement of Changes in Equity For the Year Ended 31 December 2018
2018 Retained General Earnings Reserve Total
Note $ $ $ Balance at 1 January 2018 391,562 44,881 436,443 Surplus/(Loss) attributable to members of the parent entity (71,296) 2,402 (68,894)
Balance at 31 December 2018 320,266 47,283 367,549
2017 Retained General Earnings Reserve Total
Note $ $ $ Balance at 1 January 2017 331,015 108,513 439,528 Surplus/(Loss) attributable to members of the parent entity (3,085) - (3,085) Transfer from retained earnings to general reserve 63,632 (63,632) -
Balance at 31 December 2017 391,562 44,881 436,443 The entity has not restated comparatives when initially applying AASB 9, the comparative information has been prepared under AASB 139 Financial Instruments: Recognition and Measurement.
The accompanying notes form part of these financial statements. 10 Music NSW Incorporated
ABN 50 416 153 997
Statement of Cash Flows For the Year Ended 31 December 2018
2018 2017
Note $ $
CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers 988,916 654,946 Payments to suppliers and employees (509,353) (744,219)
Net cash provided by/(used in) operating activities 479,563 (89,273)
CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (4,921) (10,378)
Net cash provided by/(used in) investing activities (4,921) (10,378)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase/(decrease) in cash and cash equivalents held 474,642 (99,651) Cash and cash equivalents at beginning of year 427,285 526,936
Cash and cash equivalents at end of financial year 4 901,927 427,285
The accompanying notes form part of these financial statements. 11 Music NSW Incorporated
ABN 50 416 153 997
Notes to the Financial Statements For the Year Ended 31 December 2018
The financial report covers Music NSW Incorporated as an individual entity. Music NSW Incorporated is a not-for-profit Association, registered and domiciled in Australia.
The functional and presentation currency of Music NSW Incorporated is Australian dollars.
Comparatives are consistent with prior years, unless otherwise stated.
1 Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act 2012.
2 Summary of Significant Accounting Policies
(a) Income Tax
The entity is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.
(b) Revenue and other income
Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the entity and specific criteria relating to the type of revenue as noted below, has been satisfied.
Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.
Other income
Other income is recognised on an accruals basis when the entity is entitled to it.
(c) Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).
Receivables and payable are stated inclusive of GST.
Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.
(d) Inventories
Inventories acquired at no cost, or for nominal consideration are valued at the current replacement cost as at the date of acquisition, which is the deemed cost.
(e) Property, plant and equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment. 12 Music NSW Incorporated
ABN 50 416 153 997
Notes to the Financial Statements For the Year Ended 31 December 2018
2 Summary of Significant Accounting Policies
(e) Property, plant and equipment
Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at the acquisition date fair value.
Plant and equipment
Plant and equipment are measured using the cost model.
Depreciation
Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the entity, commencing when the asset is ready for use.
(f) Cash and cash equivalents
Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
(g) Employee benefits
Provision is made for the entity's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled.
(h) Adoption of new and revised accounting standards
The entity has adopted all standards which became effective for the first time at 31 December 2018, the adoption of these standards has not caused any material adjustments to the reported financial position, performance or cash flow of the entity or refer to Note for details of the changes due to standards adopted.
3 Critical Accounting Estimates and Judgments
Those charged with governance make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances.
These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.
The significant estimates and judgements made have been described below.
Key estimates - impairment of property, plant and equipment
The entity assesses impairment at the end of each reporting period by evaluating conditions specific to the entity that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions.
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ABN 50 416 153 997
Notes to the Financial Statements For the Year Ended 31 December 2018
4 Cash and Cash Equivalents 2018 2017
$ $ Cash at bank and in hand 587,943 127,091 Short-term deposits 313,790 300,000 Other cash and cash equivalents 194 194
901,927 427,285
5 Trade and Other Receivables 2018 2017
$ $
CURRENT Trade receivables 19,303 5,008
19,303 5,008 GST receivable - 18,186 Other receivables 1,893 1,893
Total current trade and other receivables 21,196 25,087
(a) Impairment of receivables
The entity applies the simplified approach to providing for expected credit losses prescribed by AASB 9, which permits the use of the lifetime expected loss provision for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The loss allowance provision as at 31 December 2018 is determined as follows, the expected credit losses incorporate forward looking information.
The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-term nature of the balances.
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial statements.
6 Property, plant and equipment
PLANT AND EQUIPMENT
Furniture, fixtures and fittings At cost 1,823 1,511 Accumulated depreciation (955) (462)
Total furniture, fixtures and fittings 868 1,049
Office equipment At fair value 37 - At cost - -
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ABN 50 416 153 997
Notes to the Financial Statements For the Year Ended 31 December 2018
6 Property, plant and equipment
Computer equipment At cost 8,867 8,867 Accumulated depreciation (4,496) (1,544)
Total computer equipment 4,371 7,323
Computer software At fair value 1,853 368 Accumulated depreciation (617) -
Total computer software 1,236 368 Total plant and equipment 6,512 8,740
Total property, plant and equipment 6,512 8,740
7 Other Assets 2018 2017
$ $
CURRENT Prepayments 1,352 3,554
8 Trade and Other Payables
2018 2017 Note $ $
Current Trade payables 2,020 7,105 GST/ATO Intergrated Account 51,163 - Accrued expense 5,250 5,250 Other payables 15,002 11,286
73,435 23,641
Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The carrying value of trade and other payables is considered a reasonable approximation of fair value due to the short-term nature of the balances.
9 Other Financial Liabilities 2018 2017
$ $
CURRENT Grants in advance 478,500 -
Total 478,500 -
15 Music NSW Incorporated
ABN 50 416 153 997
Notes to the Financial Statements For the Year Ended 31 December 2018
10 Employee Benefits 2018 2017
$ $
Current liabilities Provision for employee benefits 18,305 6,969
18,305 6,969
11 Tax assets and liabilities 2018 2017
$ $ PAYG 1,359 4,915 FBT (808) -
Current tax liabilities 551 4,915
12 Fair Value Measurement
13 Contingencies
In the opinion of those charged with governance, the entity did not have any contingencies at 31 December 2018 (31 December 2017:None).
14 Events after the end of the Reporting Period
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the entity, the results of those operations or the state of affairs of the entity in future financial years.
15 Statutory Information
The registered office and principal place of business of the association is: Music NSW Incorporated Level 2 62 Glebe Point Road Glebe NSW 2037
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In preparing the financial report, the responsible persons are responsible for assessing Music NSW lncorporated's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the responsible entities either intends to liquidate Music NSW Incorporated or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing Music NSW lncorporated's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.
Gary Williams FCA RCA 4019 Partner
Location: Bondi Junction
Dated this ...... 29...... day of ...... May ...... 2019