FOR THE YEAR ENDED 31 DECEMBER 2020 G.69 MŌ TE TAU I TE OTI I TE 31 O HAKIHEA 2020

Annual Report 2020 Pūrongo ā-Tau 2020

NEW ZEALAND SYMPHONY ORCHESTRA TE TIRA PŪORO O AOTEAROA NEW ZEALAND SYMPHONY ORCHESTRA Contents Ngā Ihirangi

The NZSO: Our Vision, Mission and Values 2 Te Tira Pūoro o Aotearoa: Matawhānui/Whakatakanga/Matawhānui/Whai Painga 2020 Overview 4 2020 He Tirohanga Whānui Organisational Structure 18 Te Hanga o te Whakahaere Governance Statement 20 He Tauākī Kāwanatanga Statement of Responsibility 22 He Tauākī o ngā Haepapa Statement of Service Performance 24 He Tauākī o ngā mahi Financial Statements 30 He Tauākī Pūtea Independent Auditor’s Report 48 Pūrongo a te Kaiarotake Motuhake Organisational Health and Capability 52 Te Ora me te Āheinga o te Whakahaere A Thank You to our Supporters and Partners 56 He Mihi ki a Koe nā Ngā Kaitautoko me ngā Hoa Kaipakihi

The Board is pleased to present the Annual Report for the New Zealand Symphony Orchestra for the year ended 31 December 2020 E harikoa ana te Poari ki te whakatakoto i te Pūrongo ā-Tau o Te Tira Puoro o Aotearoa mō te tau i oti i te 31 o Hakihea, 2020

Laurence Kubiak MAICD, GAICD Geoff Dangerfield QSO Schools concert, Wellington Chair/Heamana Deputy Chair/Heamana Tuarua Cover Cheryl Hollinger, 22 April 2021 Chair/Heamana Audit Committee/Komiti Arotake Associate Principal Trumpet Emeritus 22 April 2021

1 1 Our Vision Our Values The NZSO’s Vision, Tā Mātou Matakite Ō Mātou Uara Mission and Values To be Aotearoa New Zealand’s Fresh: We play old music like most loved entertainment brand. it was written yesterday and inhabit new music in a way that Te Matakite, te Whakatakanga, Our Mission is familiar. Tā Mātou Whakatakanga me ngā Uara o NZSO To delight, surprise and Fearless: We are not excite all New Zealanders constrained by convention or through memorable musical location. experiences. In Front: We are world-class in everything we do. He Herenga Whenua: Inspired by, and connected to, this awe-inspiring country, we take excellence and turn it into a shared experience for all New Zealanders.

Objectives and Functions of the New Zealand Symphony Orchestra

Objectives of the Orchestra Functions of the Orchestra Ngā Whāinga o te Tira Puoro Ngā Kawenga a te Tira Puoro The objectives of the Orchestra are outlined The functions of the Orchestra are outlined in Section 8 of the New Zealand Symphony in Section 9 of the New Zealand Symphony Orchestra Act 2004, as follows: Orchestra Act 2004, as follows: • To provide the public of New Zealand with live • To ensure that the Orchestra presents a broad and recorded performances of symphonic repertoire of orchestral performance including music performed to an international standard. New Zealand works and recent works. • To provide an orchestra that— • To encourage the development of New Zealand (i) is highly skilled and artistically imaginative; musicians. and • To encourage the development of New (ii) has strong community support. Zealanders’ knowledge and appreciation of orchestral music. • To be a leading New Zealand performing arts • To develop and expand the audience of the organisation with a role in the development of a orchestra on a national basis. distinctively New Zealand cultural environment. • To provide a touring orchestra (which may also • To promote and encourage New Zealand include international performances). musical composition and composers. • To carry out any other functions consistent • To provide performance opportunities for New with its principal objectives, as agreed to by the Zealand musicians, whether as members of the Minister after consultation with the Orchestra. Orchestra or as soloists. • To cooperate with other similar institutions Robert Orr, and organisations having objectives similar to Section Principal Oboe those of the Orchestra.

2 3 Tēnā koutou katoa For the New Zealand Symphony Orchestra, 2020 Overview 2020 was arguably the most testing of our 75 years. He Mihi The COVID-19 pandemic – which included 2020 He Tirohanga Whānui E ngā mana, e ngā reo, e ngā rau nine weeks from 25 March to 8 June where rangatira mā o te motu whānui nei o public performances were not permitted, along with oscillating alert levels until early Aotearoa, tēnā ra koutou katoa. Tēnei October – demanded a radical reshaping of te aumihi ki nga mate huhua o te motu the Orchestra’s planned 2020 programme. The kua riro atu ki te pō haere, haere, haere. Orchestra operated throughout the year with a two-month rolling timeline and was constantly Tino rerekē te ahuatanga o te tau kua updating touring schedules, venue bookings, pahure ake nei, tērā nanakia o te mate music licensing, international guest timetables, urutā, he kapua pōuriuri ki runga i te orchestral repertoire and musician availability, as well as curating, rehearsing and performing motu, rātou ki a rātou, tātou ki a tātou urgently changed repertoires. ki te ao awatea. Huri mai ki a tātou o Despite this, the Board, musicians and tēnei ao me te whaiwhaia ngā wawata support team demonstrated admirable agility, resilience, innovation, teamwork and mō te hunga mō āpōpō tēnā ra koutou commitment to excellence. As a result, katoa.Ko te pūrongo-ā-tau o te Tira despite the obstacles, we were able to fulfil the Pūoro o Aotearoa e horapa ana ki ngā Orchestra’s mission – to delight, surprise and excite all New Zealanders through memorable iwi katoa, tēnā koutou, tēnā koutou, musical experiences. tēnā koutou katoa. In the words of a well-known whakataukī: — Mā whero, mā pango ka oti ai te mahi. With red and black the work will be complete. Alert levels and border restrictions meant that the NZSO was unable to tour for much of the year and was only able to bring a few international artists, conductors and overseas-based employees into the country. Nevertheless, the Orchestra remained acutely conscious of its obligations under the New Zealand Symphony Orchestra Act 2004 to offer audiences live and recorded performances of symphonic music performed to an international standard, along with encouraging the development of New Zealanders’ knowledge and appreciation of orchestral music, promoting and encouraging local musical composition and composers and offering performance opportunities for our musicians. What’s more, it focused on delivering Minister Carmel Sepuloni’s clear expectation “to see the NZSO continue to explore new and innovative ways of connecting with the people of New Zealand and supporting the cultural sector” (Post Budget Letter of Expectations 2020/21, 1 June 2020). Consequently, the NZSO moved with speed and professionalism to digitally stream regular concerts and performances – as well as education Megan Molina, initiatives – from the beginning of the nationwide Second Violin lockdown in March and throughout the year.

4 5 By providing solace, inspiration and connection Housing the other anchor tenants, Te Kōkī/ to a great many New Zealanders at a time New Zealand School of Music and Orchestra of isolation and uncertainty, we were able to Wellington, the NMC will provide the NZSO with contribute to national, community and personal its first-ever permanent home, enabling the wellbeing and demonstrate our special place in the entire NZSO team to be located in one place cultural life of Aotearoa New Zealand. and, through state-of-the-art recording facilities, Due to reduced touring costs and other enable the NZSO to realise significant commercial savings as a result of the one-off and specific opportunities. The NMC will be an institution of circumstances of the COVID-19 pandemic, the significance both for Wellington and nationally, NZSO achieved a surplus of $1.522 million in 2020. strengthening the city’s and Aotearoa New This surplus will be of vital importance in funding Zealand’s international reputation for music and the Orchestra’s activity in 2021. the wider performing arts. During the year, the NZSO and the Ministry for In conclusion, our sincere thanks go to the Culture and Heritage began developing options Board, musicians and support team at the NZSO for a more financially stable NZSO including who steered the ship through unprecedented consideration of the NZSO’s strategy and turbulence in 2020, thereby enabling all New operating model. This work will continue in 2021 Zealanders to access musical excellence – thus with the objective of finalising a proposed way reinforcing that the NZSO is truly “he piki kōtuku forward by the end of the calendar year. ki ō tātou mātunga, he mapihi maurea ō tātoa During 2020, the NZSO Board resolved to taringa – a heron plume for our heads, and support and implement the ongoing management treasure for our ears.” of the NZSO’s environmental footprint to support We also express our deep gratitude to the the Government’s Letters of Expectations and Crown who is our key funder through the Ministry the Climate Change Response (Zero Carbon) for Culture and Heritage and, along with our Amendment Act 2019. As a result, the NZSO donors, subscribers and sponsors, generously formed the Environmental Action Group (EAG) enables us to be world-class music makers who with representation and participation across the share the greatest music ever made and to be organisation. crucial agents of change in communities, working The objective of the EAG is to reduce and to shape a better Aotearoa New Zealand. manage the NZSO’s carbon emissions and foster Ko te tūmanako e whakamārama ana koutou an ongoing culture of environmental responsibility ngā mahi o tēnei hui-a-tau o te Tira Pūoro o in our sector. To achieve this, the NZSO has Aotearoa. Nō reira kei ngā rau rangatira huri rauna partnered with Toitū to measure, manage and i te motu, tēnā ra koutou katoa. offset the NZSO’s greenhouse gas emissions. This will commence in 2021 when the NZSO will embark Laurence Kubiak Peter Biggs on a range of measures to reduce its carbon MAICD, GAICD CNZM emissions and offset the residual emissions to Chair/ Heamana CEO/Kaihautū achieve Toitū carbonzero certification. The year ended with positive news about the proposed National Music Centre (NMC) in Wellington – a project that is crucial to the long-term success of the NZSO. Wellington City Council recommitted to completing the project, which includes seismic strengthening of the Town Hall, and to investigating a new build on the site of the Municipal Office Building and the Civic Administration Building. We welcomed the words of Wellington Mayor Andy Foster: The National Music Centre is an exciting partnership between the Council, Victoria University of Wellington and the New Zealand Symphony Orchestra. It will hugely strengthen our reputation as the Creative Capital and bring more life to the heart of our Shed Series, Wellington city, Te Ngākau Civic Square.

6 7 2020 Highlights 2020 He Tirohanga Whānui

Digital and Beyond: A Year of Innovation To date, the series of five stories has received Existing fully in the digital world is now a way of life 357,000 views and prompted many favourable for the NZSO. To date, national and international comments: streaming views total just under 4 million, with What a fabulous story time and 20% of those views coming from international audiences. The challenge is how to innovate introduction to the wonderful constantly in terms of digital engagement and how instruments that make up an orchestra. to open up an additional revenue stream from this I sent the link to my great niece (3 years new channel. However, digital streaming was only one of a old) and great nephews’ (6 years old) number of innovations actioned by the NZSO in parents and their Nana (my sister, a 2020, which included these highlights: retired librarian in Whistler) and Pops • Successfully piloting a new access platform – Setting Up Camp. Over two weeks in March, in Vancouver. They passed the link on the NZSO visited five communities – Greater too to their friends, so there were five Wellington, Wairarapa, Palmerston North, families that watched it. They loved Tauranga and Hamilton – seeking to deepen the Orchestra’s connection with regional the close-ups of the instruments. The communities, including reaching more diverse family and friends want to watch it again. audiences through community workshops, Congratulations on a wonderful occasion masterclasses, relaxed concerts, school concerts, intimate performances of traditional to listen to great stories and the repertoire and informal musical engagement. wonderful introduction to the orchestra. • Collaborating with Read NZ Te Pou Muramura to launch Storytime, a video series of much- loved Aotearoa New Zealand children’s books, featuring a well-known narrator and the NZSO accompanying the narration with original music composed by New Zealanders Claire Cowan and Tane Upjohn-Beatson. The series, which introduced children to music and to orchestral instruments in a fun and accessible way, included Tio Tiamu/The Smelly Giant by Kurahau, which was told in te reo Māori and made available during Māori Language Week.

Schools Concert, NZSO Engage: Palmerston North

8 9

2020 Highlights 2020 He Tirohanga Whānui

• Nationwide mass participation digital events As often happens, unexpected challenges such as providing music on Anzac Day (which created rich opportunities. Via a range of branded was also used by all of the Aotearoa New digital programmes such as Play Our Part, Bach Zealand’s international Embassies and High Sei Solo and Music Room, NZSO fans were able Commissions) and the online nationwide to get up close and personal with musicians as rendition of Pōkarekare Ana sung by huge they performed from their own homes and curated numbers of Kiwis both at home and overseas. venues, prompting positive responses from the • Holding Open Doors pilot activity at the public: Michael Fowler Centre in Wellington before I have watched tonight’s live the Spectacular concert in November 2020, designed to broaden the concert experience performance from the Michael Fowler and engage with diverse local audiences. Centre and reflected how much I This included instrument demonstrations enjoyed it, after having followed all for preschool and primary school students, masterclasses for university music majors and the live-streamed performances since an introduction workshop on conducting by lockdown began. There is nothing like guest conductor Gemma New, ably assisted by the excitement of live music, but I was students from the New Zealand School of Music. charmed and delighted by being invited • A collaboration with Te Papa Tongarewa/ Museum of New Zealand through presenting into some of the musicians’ own homes mini-concerts featuring works by international during lockdown and being introduced and Aotearoa New Zealand composers. to them and sometimes their families. • The development of a new vision/mission/ It was so interesting seeing them close Anzac values to guide the Orchestra over the next five years as it focuses on being more audience- up, relaxed and informal and getting driven and fit for purpose for a changing to know them more as people as they Aotearoa New Zealand. presented their pieces. The experience Amid a challenging and complex year, the NZSO Day also sought to achieve artistic excellence across a became intensely personal, and tonight range of concerts and performances. I was able to spot individuals within the In the digital space, the Orchestra streamed whole orchestral line-up as they had 70 concerts, performances and education initiatives, of which 58 were totally new content. become like familiar friends.

10 11 2020 Highlights 2020 He Tirohanga Whānui

Public Concert Highlights Suite from Der Rosenkavalier. For the concert These were some of the highlights throughout the finale, all soloists joined with members of the year: Voices New Zealand Choir, more than 100 • The NZSO opening the New Zealand school children and the audience to sing the International Festival of the Arts in Wellington beloved waiata Pōkarekare Ana. with a performance of Henryk Górecki’s • In July, NZSO Concertmaster Vesa-Matti phenomenally popular Symphony No. 3 Leppänen and musicians from the NZSO Symphony of Sorrowful Songs under the baton presented a memorable performance of Bach’s of renowned Estonian-born conductor Kristjan Goldberg Variations with guest fortepianist Järvi and featuring Syrian soprano Racha Rizk. Stephen De Pledge at the Michael Fowler The concert also featured performers from Centre in Wellington. The Variations were the celebrated New Zealand MAU company. performed on a variety of instruments, leading The NZSO was then honoured to join Maestro one reviewer to state that “there was genuine Järvi a second time for Glass/Richter/Järvi. joy in hearing a new angle of a familiar set of The concert of contemporary works featured melodies, a new world of sonic possibilities, a German composer Max Richter’s Infra and new light cast on a familiar landscape.” Another the New Zealand premiere of American reviewer added that “the overall effect was composer Philip Glass’s Águas da Amazônia. startling in its variety and, had Bach been The concerts won critical acclaim, with the observing from on high, I’m sure he would have Dominion Post declaring: “What a performance! been delighted”. Conductor Järvi drew from the NZSO … playing • The focus on Bach continued later in the year of tremendous verve and awesome virtuosity.” with the NZSO’s Bach Extended tour, which • The NZSO was the first full-sized orchestra brought the glorious music of Johan Sebastian in the world to perform to a live audience in Bach and two of his gifted sons – Carl Philipp a concert hall since the COVID-19 pandemic. Emanuel and Wilhelm Friedemann Bach – to The Ngū Kīoro… Harikoa Ake – Celebrating six centres across the North and South Islands Togetherness concert, a partnership with over late October and early November. Again, Wellington City Council, was a musical this was the brainchild of Vesa-Matti Leppänen celebration of the enormous effort New and featured six works performed by 30 Zealanders made to protect the vulnerable and musicians, including renowned pianist Deidre manage COVID-19. Acclaimed vocalist and Irons on fortepiano. Described by reviewers as composer Maisey Rika, exceptional taonga “a very novel and interesting enterprise,” the pūoro player Horomona Horo, internationally tour was greeted by enthusiastic audiences. renowned tenor Simon O’Neill, star soprano • In the months when the NZSO was able to Eliza Boom, singers from the award-winning perform and tour, the Orchestra took the Voices New Zealand Chamber Choir and opportunity to present a range of large schools in the Wellington region led by NZSO symphonic works performed by a full-size Principal Conductor in Residence Hamish orchestra, including Prokofiev’s Symphony No. McKeich performed an exhilarating repertoire 5, Tchaikovsky’s Symphony No. 6 (Pathétique) of music from the NZSO’s successful 2019 An and Symphony No. 5, Beethoven’s Symphony Instrumental Voyage Pae Tawhiti, Pae Tata No. 3 (Eroica), Mozart’s Symphony No. 40, tour. The Orchestra also brought two great Haydn’s Symphony No. 64 and Sibelius’ New Zealand works to life – the first movement Symphony No. 5. These works were performed from Gareth Farr’s rousing masterpiece From across Auckland, Wellington, Dunedin, the Depths Sound the Great Sea Gongs and Christchurch, Napier, Taupō and Tauranga. John Psathas’s ecstatic Tarantismo. Simon Due to border closures preventing scheduled O’Neill and Eliza Boom performed some of the international conductors travelling to New best-known highlights from three great operas: Zealand, the NZSO’s Principal Conductor in Bizet’s Carmen, Puccini’s La Bohème and Residence Hamish McKeich was a superb Verdi’s Otello. The full power of the Orchestra substitute, and Maestro McKeich deserves was on show for Richard Strauss’s inspirational sterling and prolonged applause for his Goldberg Variations, Palmerston North

12 13 2020 Highlights 2020 He Tirohanga Whānui

willingness and professionalism when called in pale, concentrated energy, had complete upon as a replacement. Other NZSO musicians control over the stunning orchestral writing of also gave world-class performances when Handel’s famous Messiah.” international soloists were unable to join • Originally scheduled for July, the NZSO the Orchestra – in particular, Andrew Joyce, National Youth Orchestra (NYO) concert at Section Principal Cello, who gave a deeply the Michael Fowler Centre in Wellington took moving performance of Elgar’s Cello Concerto place in December, along with mentoring in E Minor and Vesa-Matti Leppänen who and rehearsal sessions with NZSO musicians performed Sibelius’ Violin Concerto in D Minor and Maestro McKeich. The NYO consists of flawlessly – thereby affirming once again that young musicians under the age of 25 who the quality of the NZSO is of international meet annually to rehearse and perform large standard. The NZSO also drew upon Aotearoa symphonic repertoire in Wellington over the New Zealand’s considerable resource of world- course of a week. The musicians are selected class talent, including performers Anna Leese, by taped audition, and for many, this is the one Frederick Jones, Emma Pearson, Kevin Keys, occasion each year when they get to work with Michaela Cadwgan, Troy Kingi, Sarah Court, a full orchestra and professional conductors Robert Tucker, Jenny Wollerman, Jared Holt, and soloists. The NYO concert consisted of Jason Kerrison and Tami Neilson, to present its an uplifting repertoire of contemporary and performances during 2020. classical New Zealand compositions by Lissa • We were fortunate that two of our originally Meridan and Joshua Pearson, along with great programmed international conductors were classics by Tchaikovsky, Prokofiev and Arturo able to perform with the NZSO in 2020. Márquez. Now in its 61st year, the importance Miguel Harth-Bedoya, who the Orchestra of this programme to young musicians in knows well, was unfortunately limited to one New Zealand is evident by the fact that many public concert appearance in the Michael professional musicians, including nearly Fowler Centre in September due to alert level half the NZSO musicians, are alumni of this changes. However, Maestro Harth-Bedoya programme. was indefatigable when it came to being • Alert levels during the year permitted the NZSO involved in the NZSO’s education initiatives to present live only two of the Orchestra’s and, with the Orchestra, performed a range highly popular Shed Series concerts led by of works recorded for digital streaming. We Principal Conductor in Residence Hamish were fortunate to be able also to access McKeich – both these concerts were in Holly Mathieson, a Kiwi expatriate, achieving Wellington. Unfortunately, the Shed Series notable success conducting internationally concert scheduled for Auckland had to be as a potential substitute for Maestro Harth- cancelled. The Shed concert under the baton of Bedoya if he was not able to visit or conduct in Gemma New coincided with the August Alert Aotearoa New Zealand. During her time here, Level 2 and was revamped for digital release. Holly generously participated in the NZSO’s • In 2020, the NZSO performed 45 New Zealand education initiatives and made an invaluable works, either for live or digital audiences. An contribution. New Zealand-born conductor additional eight works were workshopped and Gemma New made her NZSO debut with a recorded within the SOUNZ NZ Composer live audience in November in both Wellington Sessions, and eight students’ compositions and Auckland. Maestra New made her online were workshopped and recorded as part of our debut with the NZSO in August when alert level NZSO Todd Young Composer project. changes meant that the scheduled concert performances had to be cancelled. Gemma also conducted the NZSO’s performance of Handel’s Messiah in December, resulting in highly positive media coverage: “From the first moments it felt like we were in the hands of a master. Conductor Gemma New, a study Ngū Kīoro… Harikoa Ake – Celebrating Togetherness, Wellington

14 15 2020 Highlights 2020 He Tirohanga Whānui

Education and Developing Future Musicians Arguably, the Orchestra is one of the largest contributors to musical education and development of young musicians in Aotearoa New Zealand, and through its education initiatives, the NZSO opens up significant career and life- enhancing opportunities for our country’s young people, tamariki and rangatahi. In addition to the NZSO NYO, the NZSO comprehensive education programme in 2020 included these highlights: • The 16th Annual Todd Corporation Young Composers Award took place in Wellington on 27 and 28 November. This programme nurtures and mentors young composers, culminating in a recording and performance of their compositions with the full NZSO. • Due to COVID-19, the NZSO invested in expanding its mentoring programme for secondary school music students with online lessons, feedback sessions and career guidance. This increased our participation rate from 15 talented students to 64 across a diverse range of communities nationwide, all of whom participated in multiple online sessions throughout lockdown. • NZSO musicians created a virtual Music Room, with education-related videos for teachers and students to learn the fundamentals of music. This included instructional videos on how to construct instruments at home and subsequently use them to explore rhythm, harmony, melody, dynamics and timbre. • A new initiative that proved successful in 2020 was the development of a NZSO Fellowship Conducting Programme. Four young enthusiastic graduates were mentored by our Principal Conductor in Residence Hamish McKeich as well as guest musicians Miguel Harth-Bedoya and Holly Mathieson and received invaluable time in front of the NZSO musicians. • NZSO musicians also generously devoted significant hours of their own time to free community music education and to nurturing musical talent among disadvantaged communities through entities such as Arohanui Strings, Tironui Music Trust, Sistema Toi Akorangi, Virtuoso Strings and the Or-ches- trate! programme. NZSO National Youth Orchestra

16 17 The New Zealand Symphony Orchestra (NZSO) is an Organisational Structure autonomous Crown entity. The Board of the NZSO appointed Peter Biggs as the Chief Executive Officer in May 2020.

Members of the NZSO Board Te Hanga o te Whakahaere Ngā Mema o te Poari o NZSO Laurence Kubiak MAICD, GAICD Chair Geoff Dangerfield QSO Deputy Chair Clare Murray Daniel Wong Ainsley Walter Edwin Read Carmel Walsh

Chief Executive Officer Kaihautū Peter Biggs CNZM

Concertmaster Te Kaiwhakatangi Tōiri Matua Vesa-Matti Leppänen

Heads of Department Ngā Ūpoko o ngā Tari Richard Grant Head of Corporate Services Lucrecia Colominas Head of Artistic Planning Adán Tijerina Head of Marketing Penelope England Head of Development Jane Bulpin Head of People & Delivery Craig Thorne Head of Projects

Kirstin Eade, Associate Principal Flute as at 31 December 2020

18 19 Governing Board Management Governance Statement Te Poari Whakahaere Ngā Kaiwhakahaere The Board is appointed by the Responsible The CEO has appointed a seven-person Strategic Minister (the Minister for Arts, Culture and Leadership Team (SLT), which meets on a regular He Tauākī Kāwanatanga Heritage, as at 31 December Hon. Carmel basis to discuss strategic and operational issues Sepuloni) and is comprised of seven non- and is a key forum for decisions to be made. executive members. The SLT members who report directly to the The appointments are made having regard CEO, are: to the need for members to have among them • Concertmaster (Vesa-Matti Leppänen) appropriate governance skills and an awareness • Head of Corporate Services (Richard Grant) of artistic matters as relevant to the role of the • Head of Artistic Planning (Lucrecia Colominas) Board. The Board meets regularly in accordance • Head of Marketing (Adán Tijerina) with a schedule prepared before the start of each • Head of Development (Penelope England) year. The Board met eight times in 2020. • Head of People and Delivery (Jane Bulpin) • Head of Projects (Craig Thorne) The SLT’s remuneration is set by the CEO in Board Remuneration consultation with the Chair of the Board. The Ngā Utu o te Poari cumulative total for key management personnel The Board remuneration is set by the Minister compensation is included in the notes to the consistent with the guidelines set by the financial statements. Public Service Commission and Cabinet Office guidelines. The remuneration of the Board members is Conflicts of Interest detailed in the notes to the financial statements. Ngā Tukinga Take Whaiaro Each member of the Board and SLT has made a full disclosure of their interests, and this is Board Audit Committee updated at every Board, Audit Committee and SLT Te Komiti Arotake o te Poari meeting. The Audit Committee comprises three Board If an interest is declared relating to a paper members and one independent member. The before or during any meeting, the member may be Chair of the Audit Committee is Deputy Chair of excluded from discussions and decision making the NZSO Board. The Committee reports to the on the matter. Board. The purpose of the Committee is to assist in discharging the Board’s responsibilities for financial reporting and regulatory compliances. Delegated Financial Authorities The Committee met twice in 2020. Ngā Mana Ahumoni kua Tohua The Board has approved a policy for the delegation of financial authority to the Board Delegation to the Chief Executive Officer administrative staff of the NZSO. All operational Te Kanohi o te Poari ki te Tumu Whakarae spending is monitored through a budget The Board has been authorised by the system that is approved by the Board before the Responsible Minister to manage the business commencement of the financial year. The CEO and of the NZSO and has delegated the day-to-day appropriate Heads of Department (HODs) hold operational authority to the Chief Executive delegated authorities. The HODs may delegate Officer (CEO). The CEO’s terms and conditions part or all or a specified area of their budget to of employment are determined by the Board in a direct report to them. However, the HODs will consultation with the State Services Commission. retain overall responsibility for the budget. The CEO’s remuneration for the year is included in the notes to the financial statements.

Ellen Deverall, Associate Principal Clarinet

20 21 The Board of the New Zealand Symphony Statement of Responsibility Orchestra is responsible for the preparation of the financial statements and statement of service performance, and for the judgements in He Tauākī o ngā Haepapa them. The Board is responsible for any end-of-year performance information provided by the New Zealand Symphony Orchestra under section 19A of the Public Finance Act 1989. The Board is responsible for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the financial reporting. In the opinion of the Board, the financial statements and statement of service performance fairly reflect the financial position and operations of the New Zealand Symphony Orchestra for the year ended 31 December 2020. Signed

Laurence Kubiak MAICD, GAICD Chair/Heamana 22 April 2021

Geoff Dangerfield QSO Deputy Chair/Heamana Tuarua Chair/Heamana Audit Committee/Komiti Arotake 22 April 2021

Laurence Reese, Section Principal Timpani

22 23

The results presented in the Statement of Service Statement of Service Performance have been impacted by the COVID-19 pandemic. The main impact is not being able to present live Performance concerts throughout New Zealand under Alert Levels 2–4. The following report highlights where this has impacted the He Tauākī o ngā mahi results for the year under review.

OUTCOME: Quality New Zealanders inspired by high-quality symphonic music

Impact indicator Impact measure Actual 2020 Budget 2020 Actual 2019 Target achievement

Audience surveys rate Average grading 9.3/10 9/10 9.3/10 Yes NZSO performances as achieved for quality high quality of performance in surveys of NZSO audiences

Reviews of recordings Average grading 9/10 9/10 0/10 Yes rate NZSO performances achieved for NZSO No highly recordings released recordings and reviewed released

OUTCOME: Coverage New Zealanders have ready access to symphonic music

Impact indicator Impact measure Actual 2020 Budget 2020 Actual 2019 Target achievement

Audience demand for Total audience 25,544 74,211 84,480 No NZSO performances attendances for Impact of concerts continues to grow NZSO performances cancelled due to Does not include COVID-19 non-ticketed events restrictions

NZSO performances Total number 22 35 72 No engage with of communities Impact of concerts audiences from represented in NZSO cancelled due to diverse communities audiences for live COVID-19 performances restrictions

OUTCOME: Development New Zealanders create new symphonic music

Impact indicator Impact measure Actual 2020 Budget 2020 Actual 2019 Target achievement

New New Zealand Number of new 14 4 6 Yes works are created New Zealand works and performed performed by NZSO

New New Zealand Number of new 8 8 8 Yes student compositions New Zealand student are created and compositions workshopped workshopped by NZSO

Beiyi Xue, First Violin

24 25

Output Services Revenue and Expenditure Statement of Performance The New Zealand Symphony Orchestra has one output class – Orchestral Services.

Actual 2020 Budget 2020 Actual 2019 New Zealand Service Service Service $000 $000 $000 Symphony performance performance performance Orchestra Act Specific actual budget actual Revenue Crown 16,326 16,326 14,736 2004 section 8 objectives Outcome 2020 2020 2019

Revenue other 2,286 4,094 5,617 Provide the Provide quality Coverage NZSO presented 35 NZSO presented 84 NZSO presented 98 public of New live performances live performances live performances live performances Total revenue 18,612 20,420 20,353 Zealand with live throughout the during the period. during the period. during the period. and recorded country. Expenses (17,090) (20,420) (21,113) performances This measure of symphonic excludes Net result 1,522 0 (760) music performed non-ticketed to an international events. standard Provide quality Quality Refer to Refer to Refer to live performances performance performance performance throughout the quality measures on quality measures on quality measures on National Music Centre country page 29 page 29 page 29

Specific objective Actual 2020 Actual 2019 Target Provide an Provide Development 2 Scholarships 4 professional 4 scholarships orchestra that professional were awarded, but development awarded Complete the NZSO portion At 31 December 2020, At 31 December 2020, Delivered is highly skilled development due to COVID-19 scholarships or of the fit-out of the Wellington the NZSO portion of the fit-out the NZSO portion of the fit-out against the and artistically opportunities were not used bursaries awarded Town Hall component of the of the Wellington Town Hall of the Wellington Town Hall updated plan imaginative for existing National Music Centre component of the National component of the National NZSO musicians Music Centre had not yet Music Centre had not yet

commenced as Wellington City commenced as Wellington City

Council has not completed the Council has not completed the Concert season Development NZSO presented 35 different NZSO presented

seismic strengthening work seismic strengthening work and recordings concerts and performance concerts and include a wide recordings of and recording recordings of variety of different 41 different programmes 42 different programmes programmes during presented programmes during the period the period

Provide an Live performances Coverage The NZSO 17 different The NZSO orchestra that reach a large performed in New Zealand performed in has strong number of 15 different communities have 18 different community communities centres during live performances communities support the period. The during the period budgeted number of communities was not achieved due to COVID-19 restrictions.

26 27

Statement of Performance Measurement of Quality Service Performance

New Zealand Service Service Service Service Service Service Symphony performance performance performance performance performance performance Orchestra Act Specific actual budget actual actual budget actual 2004 section 8 objectives Outcome 2020 2020 2019 Process Target 2020 2020 2019

Be a leading Provide Development 1 NZSO National 2 NZSO National 2 NZSO National Regular audience Audiences 9.3/10 9/10 9.3/10 New Zealand opportunities for Youth Orchestra Youth Orchestra Youth Orchestra surveys are conducted recognise NZSO In surveys conducted In surveys conducted performing the training and performance, performances, performances, and performance performances are between July and between August and arts organisation development 65 students 12 students in 14 students quality is polled of international November for concerts October for concerts with a role in of young and participated NZSO mentor participated quality in these months, 1,166 in these months, 1,126 the development emerging in mentor programmes, in mentor respondents out of respondents out of of a distinctly musicians and programmes, 6 students in programmes, 14,953 attendees had an 21,021 attendees had New Zealand collaborate 7 students NZSO Fellowship 5 students overall satisfaction rate an overall satisfaction cultural with other arts participated programmes, participated of 9.3/10 for the NZSO rating of 9.3/10 for environment and cultural concerts attended – the the NZSO concerts in fellowship 5 masterclasses in fellowship organisations surveys covered 19 attended – the surveys programmes, with NZSO players programmes, performances during covered 8 performances 6 masterclasses or guest artists, 3 masterclasses 2020, and the number in 2019, and the number were held with were held with 5 collaborative of surveys sent out was of surveys sent out in NZSO players or NZSO players or performances 2,991, with 1,166 or 39% 2019 was 1,126, with guest coaching, guest coaching, with other arts responding 100% responding 12 collaborative organisations 5 collaborative performances performances with other arts with other arts Independent International 0/10 9/10 0/10 organisations organisations international reviewers There were no There were no reviews of live and recognise NZSO international reviews international reviews in Promote and Create workshop Development 8 compositions 17 compositions are 17 compositions recorded performances performances are in 2020 2019 encourage opportunities for were workshopped workshopped were workshopped assess quality of of international New Zealand New Zealand during the year during the year orchestra performance quality musical – the budgeted Reviews are from a composition number of recognised international and composers compositions reviewer of an was not achieved international publication due to COVID-19 restrictions Critical reviews by New Zealand 9.2/10 9/10 9.7/10

New Zealand media reviewers All media coverage All media coverage Profile New Zealand Development The NZSO played 20 New Zealand The NZSO played of live performances recognise NZSO including concert including concert compositions in a total of 45 works are a total of 22 assess quality of performances are reviews are collated and reviews are collated and public performances New Zealand performed New Zealand orchestra performance of international accorded a satisfaction/ accorded a satisfaction/ and recordings compositions in compositions in quality favourability rating on favourability rating on 2020 2019 a scale of 1–10, and a a scale of 1–10, and a summary of articles are summary of articles and Provide New Zealand artists Development 20 different New 20 New Zealand 18 different presented to the Board ratings are presented to performance regularly perform Zealand artists artists perform New Zealand – there was no Music senior management, the opportunities with the NZSO performed with the with the NZSO artists performed Director during 2020 so Music Director and the for New Zealand NZSO during the with the NZSO no summary was provided Board musicians, whether period during the period to this position as members of the NZSO or as soloists International artists Artists 9.75/10 9/10 9.8/10 polled on quality of recognise NZSO Between January and Between January and NZSO and performances performances are December 2020, 2 December 2019, 10 (exit polling) of international international artists international artists quality completed exit polling completed exit polling and both rated the and all rated the NZSO NZSO as extremely as extremely good or good good

28 29 Statement of Comprehensive Revenue and Expense Statement of Financial Position For the year ended 31 December 2020 As at 31 December 2020

Actual 2020 Budget 2020 Actual 2019 Actual 2020 Budget 2020 Actual 2019 Notes $000 $000 $000 Notes $000 $000 $000

Revenue Equity

Concert Revenue 1,036 1,921 3,693 General Funds 4,315 2,988 2,293

Interest Revenue 22 120 61 Total Equity 4,315 2,988 2,293

Other Revenue 1 1,228 2,053 1,864 Current Assets Revenue earned by the NZSO 2,286 4,094 5,618 Cash and Cash Equivalents 4 4,616 2,634 2,954

Trade Receivables and other Receivables 5 507 106 820 Crown Funding 16,326 16,326 14,736 Prepayments 111 148 77 TOTAL REVENUE 18,612 20,420 20,354 Total Current Assets 5,234 2,888 3,851

Expenditure Non Current Assets

Personnel Costs 2 11,838 11,817 11,252 Property, Plant and Equipment 6 1,317 2,774 1,224

Depreciation and Amortisation Expense 6 80 127 110 Intangible Assets 6 8 - 25

Other Expenditure 3 5,172 8,476 9,752 Total Non-Current Assets 1,325 2,774 1,249

Total Expenditure 17,090 20,420 21,114 Total Assets 6,559 5,662 5,100

Net Surplus/(Deficit) 1,522 - (760) Current Liabilities Total Comprehensive Revenue and Expense 1,522 - (760) Trade Payables And Other Payables 7 860 1,430 1,616

Employee Entitlements 8 1,182 1,015 988 Statement of Changes in Equity Total Current Liabilities 2,042 2,445 2,604 For the year ended 31 December 2020 Non-Current Liabilities Actual 2020 Budget 2020 Actual 2019 $000 $000 $000 Employee Entitlements 8 202 229 203 Total Non-Current Liabilities 202 229 203 Balance as at 1 January 2,293 1,998 753

Total Comprehensive Revenue and Expense for the year 1,522 - (760) Total Liabilities 2,244 2,674 2,807 Equity Contribution from the Crown 500 1,000 2,300

Balance as at 31 December 4,315 2,998 2,293 Net Assets 4,315 2,988 2,293

The accompanying notes & policies on pages 33 to 47 form an integral part of The accompanying notes & policies on pages 33 to 47 form an integral part of these financial statements. these financial statements. Explanations of major variances against budget are included in Note 19. Explanations of major variances against budget are included in Note 19.

30 31 Statement of Cash Flows Notes to the Financial Statements For the year ended 31 December 2020 For the year ended 31 December 2020

Actual 2020 Budget 2020 Actual 2019 STATEMENT OF ACCOUNTING SUMMARY OF SIGNIFICANT Notes $000 $000 $000 POLICIES ACCOUNTING POLICIES

Cash Flows From Operating Activities Reporting Entity Revenue The NZSO has designated itself as a public The specific accounting policies for significant Receipts from Customers and Sponsors 2,284 3,906 3,921 benefit entity (PBE) for financial reporting revenue items are explained below: purposes. Interest Received 22 120 61 The financial statements for NZSO are for Funding from the Crown (Government funding) Government Funding 16,326 16,326 14,736 the year ended 31 December 2020, and were The NZSO is significantly funded from the approved by the board on 22 April 2021. Crown. This funding is restricted in its use for Payments to and on behalf of employees (11,630) (11,802) (11,326) the purpose of the NZSO meeting the objectives Basis of Preparation Payments to Suppliers (5,496) (8,520) (8,564) specified in its founding legislation (the New The financial statements of the NZSO have Zealand Symphony Orchestra Act 2004) and Net Goods and Services Tax (186) - (38) been prepared on a going-concern basis and the scope of the relevant appropriations of the the accounting policies have been applied funder. Net Cash Flows from Operating Activities 1,320 30 (1,210) consistently throughout the period. The NZSO recognises such funding as Under the Crown Entities Act 2004 Part 4, revenue at the point when control of the resource section 136 (1), the financial year for a Crown passes to the NZSO. Cash Flows from Investing Activities Entity (other than a school board of trustees or The NZSO considers the Crown payments a tertiary education institution) is defined as made by the Ministry for Culture & Heritage to Purchases of Property, Plant and Equipment (158) (1,100) (110) “the 12 months ending on the close of 30 June or the NZSO meet the applicable control test for any other date determined for that entity by the recognition when two events have occurred: Purchases of Intangible Assets - - (1) Minister of Finance.” As of 9 September 2011, the (1) the responsible Minister has formally Net Cash Flows from Investing Activities (158) (1,100) (111) NZSO’s financial year closes on 31 December, as approved a Crown Payment from the Ministry approved by the Minister of Finance. to the NZSO of all (or a specific portion) of an existing appropriation that relates to an agreed Statement of Compliance Statement of Performance Expectations; and Cash Flows from Financing Activities The financial statements of the NZSO have been (2) the agreed Statement of Performance Equity Contribution 500 1,000 2,300 prepared in accordance with the requirements of Expectations is effective. the Crown Entities Act 2004, which includes the The fair value of revenue from the Crown Net Cash Flows from Financing Activities 500 1,000 2,300 requirement to comply with generally accepted has been determined to be equivalent to the accounting practice in New Zealand (NZ GAAP). amounts due in the funding arrangements. In

The NZSO is a tier 2 entity and the financial the NZSO’s view, the recognition of Government Net Increase / (Decrease) In Cash And Cash Equivalents 1,662 (70) 979 statements have been prepared in accordance funding in this way meets the requirements of with PBE standards. the applicable accounting standard (PBE IPSAS Cash And Cash Equivalents At Beginning Of The Year 2,954 2,704 1,975 The financial statements have been prepared 23, Revenue from Non-Exchange Transactions). in accordance with PBE standards Reduced Cash And Cash Equivalents At End Of The Year 4 4,616 2,634 2,954 Disclosure Regime (PBE Standards RDR). Grants Received The criteria under which the NZSO is eligible Grants are recognised as revenue when they to report in accordance with PBE standards become receivable unless there is an obligation Represented by: Cash & Cash Equivalents RDR are (1) that the NZSO has no public in substance to return the funds if conditions accountability as the NZSO does not issue of the grants are not met. If there is such an Bank 4,616 634 2,954 debt or equity instruments or hold assets in a obligation, the grants are initially recorded as Term Deposits <= 3 months - 2,000 - fiduciary capacity and (2) that the NZSO is not grants received in advance and recognised large. as revenue when conditions of the grant are Total 4,616 2,634 2,954 satisfied. Grant revenue is aggregated with other Presentation Currency and Rounding sponsorship revenue. The financial statements are presented in New Zealand dollars and all values are rounded to the The accompanying notes & policies on pages 33 to 47 form an integral part of nearest thousand dollars ($000). these financial statements. Explanations of major variances against budget are included in Note 19.

32 33 Notes to the Financial Statements For the year ended 31 December 2020

Contra Sponsorship Received Operating leases Disposals Intangibles Assets Sponsorship revenue can be received by the Operating lease payments, where the lessor Gains and losses on disposals are determined Software acquisition and development NZSO in cash and/or non-cash (contra) exchange effectively retains substantially all the risks and by comparing the proceeds with the carrying Acquired computer software licences are transactions. Revenue is recognised when it benefits of ownership of the leased items, are amount of the asset. Gains and losses on capitalised on the basis of the costs incurred to becomes receivable except when, in the case of recognised as expenses on a straight-line basis disposals are reported net in the surplus or acquire and bring to use the specific software. contra sponsorship, there is a realistic expectation over the lease term. deficit. Costs associated with maintaining computer that those sponsored services will not be realised. software are recognised as an expense when Where the contra sponsorship generates Receivables Subsequent Costs incurred. Costs that are directly associated with a physical asset (rather than services) as Short-term receivables are recorded at their Costs incurred subsequent to initial acquisition the development of software for internal use by consideration, the asset is recognised at fair value face value, less any provision for impairment. A are capitalised only when it is probable that the NZSO are recognised as an intangible asset. and the difference between the consideration receivable is considered impaired when there is future economic benefits or service potential Direct costs include the software development provided and fair value of the asset is recognised evidence that the NZSO will not be able to collect associated with the item will flow to the NZSO and directly attributable employee costs. Staff as revenue. The fair value of such assets is the amount due. The amount of the impairment and the cost of the item can be measured training costs are recognised as an expense when determined as follows: is the difference between the carrying amount reliably. incurred. • For new assets, fair value is usually determined of the receivable and the present value of the The costs of day-to-day servicing of property, by reference to the retail price of the same amounts expected to be collected. plant, and equipment are recognised in the Amortisation or similar assets at the time the asset was surplus or deficit as they are incurred. The carrying value of an intangible asset with received. Investments a finite life is amortised on a straight-line basis • For used assets, fair value is usually determined Term deposits Depreciation over its useful life. Amortisation begins when the by reference to market information for assets of Investments in bank term deposits are initially Depreciation is provided on a straight-line basis asset is available for use and ceases at the date a similar type, condition and age. measured at the amount invested. After initial on all items of property, plant and equipment that the asset is derecognised. The amortisation recognition, investments in bank deposits at rates calculated to write-off the cost (or charge for each period is recognised in the Interest Revenue are measured at amortised cost using the valuation), to their estimated residual value surplus or deficit. The useful lives and associated over their estimated useful lives. Leasehold amortisation rates of major classes of intangible Interest revenue is recognised using the effective effective interest method, less any provision for alterations are depreciated over the remaining assets have been estimated as follows: interest method. impairment. period of the lease agreement. The useful lives Acquired Computer Software 3 years 33.33% Property, plant and equipment and associated depreciation rates of major Provision of Services/Concert Revenue classes of property, plant, and equipment have Developed Computer Software 3 years 33.33% Property, plant and equipment consist been estimated as follows: Services provided to third parties on commercial of the following asset classes: computer terms are exchange transactions. Revenue hardware, leasehold improvements, musical Leasehold Alterations 3–15 years 6.67%–33.33% Impairment of Property, Plant and Equipment from these services is recognised in proportion and Intangible assets instruments, studio equipment, furniture and Computer Hardware 3 years 33.33% to the stage of completion at balance date. office equipment and music library. All assets The NZSO does not hold any cash-generating Concert revenue received for the NZSO’s 2021 classes are measured at cost, less accumulated Studio Equipment 10 years 10% assets. Assets are considered cash-generating performances is revenue in advance at balance depreciation and impairment losses. Furniture and Office 15 years 6.67% where their primary objective is to generate a date and will be fully recognised as revenue in the Equipment commercial return. 31 December 2021 financial statements. Additions Musical Instruments 10 years 10% Non-cash-generating assets The cost of an item of property, plant and percussion only Foreign Currency Transactions equipment is recognised as an asset only when Property, plant and equipment and intangible All foreign currency transactions (including those it is probable that future economic benefits Musical Instruments 25 years 4% assets held at cost that have a finite useful life for which forward foreign exchange contracts or service potential associated with the item all other are reviewed for impairment whenever events are held) are translated into New Zealand dollars will flow to the NZSO and the cost of the item Library Music Manuscripts Not depreciated or changes in circumstances indicate that the (the functional currency) using the spot exchange can be measured reliably. Work in progress carrying value will exceed the recoverable rates prevailing at the dates of the transactions. is recognised at cost less impairment and is amount. Foreign exchange gains and losses resulting not depreciated. In most instances, an item The recoverable amount is the higher of from the settlement of such transactions and of property, plant, and equipment is initially an asset’s fair value less costs to sell and the from the translation at year end exchange rates recognised at its cost. Where an asset is depreciated replacement costs for the assets. of monetary assets and liabilities denominated in acquired through a non-exchange transaction, Impairment losses are recognised in the foreign currencies are recognised in the surplus it is recognised at its fair value as at the date of surplus or deficit. or deficit. acquisition.

34 35 Notes to the Financial Statements For the year ended 31 December 2020

Payables Superannuation Schemes Budget Figures The NZSO has not made significant changes to Short-term payables are recorded at their face Defined contribution schemes The budget figures are those approved by past assumptions concerning useful lives and residual values. value. Obligations for contributions to KiwiSaver, the NZSO board at the beginning of the the Government Superannuation Fund, the financial year as disclosed in the Statement Long service leave Employee Entitlements State Sector Retirement Savings Scheme and of Performance Expectations. The budget Short-term employee entitlements the NZSO’s Tower Superannuation Scheme figures have been prepared in accordance with Note 8 provides an analysis of the exposure NZ GAAP, using accounting policies that are in relation to estimates and uncertainties Employee benefits that are due to be settled are accounted for as defined contribution consistent with those adopted by the Board in surrounding long service leave liabilities. within 12 months after the end of the period in superannuation schemes and are recognised as preparing these financial statements. which the employee renders the related service an expense in the surplus or deficit as incurred. Critical Judgements in Applying Accounting are measured based on accrued entitlements at Policies current rates of pay. These include salaries and Defined benefit schemes Critical Accounting Estimates and Assumptions The NZSO has exercised the following critical wages accrued up to balance date, annual leave The NZSO makes employer contributions to In preparing these financial statements, the judgements in applying accounting policies: earned to, but not yet taken at, balance date, the Defined Benefit Plan Contributors Scheme NZSO has made estimates and assumptions deferred and retiring leave (vested and available (the scheme), which is managed by the Board concerning the future. These estimates and Leases classification to be cashed-in) and sick leave. A liability for of Trustees of the National Provident Fund. The assumptions may differ from the subsequent Determining whether a lease agreement is a sick leave is recognised to the extent that scheme is a multi­-employer defined benefit actual results. Estimates and assumptions finance lease or an operating lease requires absences in the coming year are expected to be scheme. are continually evaluated and are based on judgement as to whether the agreement greater than the sick leave entitlements earned Insufficient information is available to use historical experience and other factors, including transfers substantially all the risks and rewards in the coming year. The amount is calculated defined benefit accounting, as it is not possible expectations of future events that are believed of ownership to the NZSO. Judgement is required based on the unused sick leave entitlement to determine from the terms of the scheme the to be reasonable under the circumstances. on various aspects that include, but are not that can be carried forward at balance date, to extent to which the surplus/deficit will affect The estimates and assumptions that have a limited to, the fair value of the leased asset, the the extent that it will be used by staff to cover future contributions by individual employers, as significant risk of causing a material adjustment economic life of the leased asset, whether or those future absences. A liability and an expense there is no prescribed basis for allocation. The to the carrying amounts of assets and liabilities not to include renewal options in the lease term are recognised for bonuses where there is a scheme is therefore accounted for as a defined within the next financial year are discussed and determining an appropriate discount rate contractual obligation and a reliable estimate of contribution scheme. below. to calculate the present value of the minimum the obligation can be made. lease payments. Classification as a finance lease Equity Estimating useful lives and residual values of means the asset is recognised in the Statement Long-term employee entitlements Equity is measured as the difference between property, plant and equipment of Forecast Financial Position as property, plant Employee benefits that are due to be settled total assets and total liabilities. There is no and equipment, whereas, for an operating At each balance date, the useful lives and beyond 12 months after the end of the period in basis on which to disaggregate equity, and it is lease, no such asset is recognised. The NZSO residual values of property, plant and equipment which the employee renders the related service, recognised in total as general funds. has exercised its judgement on the appropriate are reviewed. Assessing the appropriateness such as long service leave have been calculated classification of equipment leases and has of useful life and residual value estimates on an actuarial basis. The calculations are based Goods and Services Tax (“GST”) determined no lease arrangements are finance of property, plant and equipment requires a on: leases. These financial statements are prepared on a number of factors to be considered such as the • likely future entitlements accruing to GST exclusive basis with the exception of trade physical condition of the asset, expected period staff, based on years of service, years to receivables and trade creditors which are stated of use of the asset by the NZSO and expected entitlement, the likelihood that staff will reach inclusive of GST. The net amount receivable (or disposal proceeds from the future sale of the the point of entitlement and contractual payable) in respect of GST is included as part of asset. entitlement information; other receivables (or other payables). The net GST An incorrect estimate of the useful life • the present value of the estimated future cash paid to, or received from the IRD, including the or residual value will affect the depreciation flows. GST relating to investing and financing activities, expense recognised in the surplus or deficit and Sick leave, annual leave, and vested long-service, is classified as an operating cash flow in the carrying amount of the asset in the Statement of retiring and deferred leave are classified as a Statement of Forecast Cash Flows. Forecast Financial Position. The NZSO minimises current liability. Non-vested long-service leave the risk of this estimation uncertainty by: Income Tax expected to be settled within 12 months of • physical inspection of assets; balance date is classified as a current liability. The NZSO is a public authority for the purposes • asset replacement programmes; All other employee entitlements are classified as of the Inland Revenue Act. A public authority is non-current liabilities. exempt from income tax under the Income Tax • review of second-hand market prices for Act 2007 and, accordingly, no provision has been similar assets; and made for income tax. • analysis of prior asset sales.

36 37 1. Revenue 3. Other Expenditure Actual 2020 Actual 2019 Actual 2020 Actual 2019 $000 $000 $000 $000

Other Revenue Other Expenditure

Sponsorship Revenue and Grants 877 1,432 Direct Expenses from Orchestral activity 3,476 7,964

Recording Revenue and Cost Recoveries - 249 Occupancy Costs 358 358

Foreign exchange gains, excluding derivatives 2 10 Audit Fees for financial statements audit 77 75

Gains on Disposal of Assets 12 - Board Members fees 97 96

Sundry Revenue 337 173 Foreign exchange losses, excluding derivatives 1 -

Total Other Revenue 1,228 1,864 General Operating Costs 1,163 1,259

Total Expenditure 5,172 9,752 Grants revenue is categorised as non-exchange where there is no obligation in substance associated with the funding provided to NZSO. The majority of this revenue is received by NZSO either as cash from various gaming and community Trusts and Total fees to Audit New Zealand for financial statements audit. No other services from Foundations or as non-cash concert/rehearsal venue subsidies from territorial local Audit New Zealand were provided (or charged for) during the year. authorities. Such revenue is generally only obtained on a (non-recurring) application basis and is contained within a single financial year. 4. Cash & Cash Equivalents Sponsorship revenue is categorised as exchange where there is a substantive Cash and cash equivalents includes cash on hand, deposits held on call with banks, and obligation associated with the funding provided to NZSO and its value is considered other short-term, highly liquid investments with original maturities of three months or less. approximately equal. Sponsorship contracts are negotiated between NZSO and the sponsor on arms length commercial terms and the range of services provided to Actual 2020 Actual 2019 sponsors will differ in type and volume depending on both the amount of sponsorship $000 $000 received and the particular servicing preferences of the sponsor. Sponsorship contracts often span multiple financial years but both the sponsorship revenue and the Cash & Cash Equivalents services provided in return, are usually negotiated for annual cycles and fully delivered within disreet NZSO concert seasons (which correlate with calendar years). Cash at bank and on hand 4,616 2,954

Total Cash & Cash Equivalents 4,616 2,954 2. Personnel Costs Actual 2020 Actual 2019 $000 $000 5. Trade & Other Receivables

Personnel Costs As at 31 December 2020 all overdue receivables have been assessed for impairment and irrecoverable amounts. The carrying value of receivables approximates their fair value. Salaries and wages 11,016 10,368 Actual 2020 Actual 2019 ACC Levy 40 45 $000 $000

Contribution to Superannuation Schemes 399 371 Trade & Other Receivables

Allowances 210 209 Gross Trade & Other Receivables 459 820

Recruitment and Training 173 259 Less: Provision for Impairment - -

Total Personnel Costs 11,838 11,252 GST Receivablve 48 -

Total Trade & Other Receivables 507 820 As at 31 December 2020, the NZSO has a staff establishment of 120 Full-Time Represented by: Equivalent employees made up of 30 administration staff and 90 musicians (2019: 118 Full-Time Equivalent employees made up of 28 administration staff and 90 musicians). Trade Receivables 339 603 At balance date, there were 15 vacancies in the establishment (2019: 10). No payments were made to employees in relation to the cessation of employment Other Receivables 168 217 during 2020 (2019: $18,895.34). Balance at 31 December 507 820

38 39 6. Property, Plant And Equipment / Intangible Assets 7. Trade Payables and Other Payables

Furniture Capital Actual 2020 Actual 2019 Leasehold Computer Studio and Office Musical Music Work-in- $000 $000 Alterations Hardware Equipment Equipment Instruments Library Progress Total $000 $000 $000 $000 $000 $000 $000 $000 Payables under exchange transactions

Property Plant and Equipment Trade Creditors 113 336 Balance at 1 January 2020 278 700 2,892 302 190 567 648 207 Revenue in Advance 342 574 Additions - 50 63 6 8 12 19 158 Accrued Expenses 195 191 Transfers ------Other Creditors and Payables 63 251 Disposals - - - (35) - - (35) Total Payables under exchange transactions 713 1,352 Balance at 31 December 2020 302 240 630 284 621 712 226 3,015

Payables under non-exchange transactions Accumulated Depreciation PAYE Payable 147 126 Balance at 1 January 2020 297 160 454 247 510 - - 1,668 GST Payable - 138 Depreciation expenses - 21 21 5 16 - - 63 Total Payables under non-exchange transactions 147 264 Depreciation-Disposals - - (33) - - (33)

Balance at 31 December 2020 297 181 475 252 493 - - 1,698 Total Trade Payables and Other Payables 860 1,616

Net Book Value All trade creditors are paid within 30 days as the payment terms used by NZSO are 20th At 31 December 2019 5 30 113 31 138 700 207 1,224 of the month following invoice date. Therefore the carrying value of creditors approximate their fair value. At 31 December 2020 5 59 155 32 128 712 226 1,317

Computer Software Total $000 $000

Intangible Assets

Balance at 1 January 2020 559 559

Additions - -

Transfers - -

Disposals - -

Balance at 31 December 2020 559 559

Accumulated Depreciation

Balance at 1 January 2020 534 534

Depreciation expenses 17 17

Depreciation-Disposals -

Balance at 31 December 2020 551 551

Net Book Value There has been no indication of At 31 December 2019 25 25 impairment to any item of Property, Plant and Equipment or Intangible At 31 December 2020 8 8 Assets.

40 41 8. Employee Entitlements 9. Financial Instrument Categories Actual 2020 Actual 2019 Actual 2020 Actual 2019 $000 $000 $000 $000

Provision for Employee Entitlements Loans & Receivables

Current Cash and cash equivalents 4,616 2,954

Accrued Salary & Wages 280 236 Trade Receivables and Other Receivables 507 820

Annual Leave 724 638 Total Loans & Receivables 5,123 3,774

Sick Leave 57 57 Financial liabilities measured at amortised cost Long Service Leave 79 19 Trade Creditors and Other Payables 518 1,042 (excluding Revenue in Advance) Deferred Leave 3 14 Total financial liabilities measured at amortised cost 518 1,042 Retiring Leave 39 24

Total Current 1,182 988 Financial Liabilities at Fair Value through Surplus / (Deficit) - -

Non-Current Fair value hierarchy Where instruments are recognised at fair value in the statement of financial position, fair Long Service Leave 202 203 values are determined according to the following hierarchy: • Quoted market prices (level 1) – Financial instruments with quoted prices for identical instruments in active markets. Total Employee Entitlements 1,384 1,191 • Valuation techniques using observable inputs (level 2) – Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using The present value of the term long service leave obligations depend on a number of models where all significant inputs are observable. factors that are determined on an actuarial basis using a number of assumptions. • Valuation techniques with significant non-observable inputs (level 3) – Financial Two key assumptions used in calculating this liability include the discount rate and the instruments valued using models where one or more significant inputs are not salary inflation factor. Any changes in these assumptions will impact on the carrying observable. amount of the liability. The NZSO has used an actuarial model issued for this purpose by The Treasury, effective for 31 December 2020. A discount rate of 5% (2019: 4.3%) and an inflation factor of 2% (2019:2.92%) were used. 10. Capital Commitments And Operating Leases If the discount rate were to differ by 1% from the estimates, with all other factors held The NZSO is also committed to uplift costs for the Wellington Town Hall as part of the constant, the carrying amount of the liability would be an estimated $10,000 higher/ National Centre for Music project as follows: lower (2019: $33,000). If the salary inflation factor were to differ by 1% from the estimates, with all other Actual 2020 Actual 2019 factors held constant, the carrying amount of the liability would be an estimated $000 $000 $8,000 higher/lower (2019: $16,000). Buildings - 76

Total - 76

The value of non cancellable rental lease commitments to Wellington City Council for the lease of specified areas of the Michael Fowler Centre are as follows:

Actual 2020 Actual 2019 $000 $000

Less than One Year 313 313

Between One and Two Years 313 313

Between Two and Five Years 940 940 The lease commitments to Greater than Five Years 1,069 1,382 Wellington City Council are Total non-cancellable operating lease 2,635 2,948 for 15 years from 1 June 2014 and end on 31 May 2029.

42 43 The value of non cancellable rental lease commitments to Peritus Investments Ltd 11. Contingencies iv) NZSO board member Geoff Dangerfield is also for the lease of NZSO’s Wellington office space in the Findex House, Willis Street, a member of the Auditor General’s Audit and Risk Wellington are as follows: The NZSO has no contingent liabilities in 2020 Committee. Actual 2020 Actual 2019 (2019: nil). $000 $000 The NZSO has no contingent assets in 2020 13. Key Management Personnel (2019: nil). Less than One Year 59 141 Key management personnel are those persons having authority and responsibility for planning, Between One and Two Years - 59 12. Related Parties directing and controlling the activities of the Between Two and Five Years - - NZSO. This includes the seven members of the The lease commitments to The NZSO is an autonomous crown entity, wholly- Board of the NZSO, the Chief Executive, the Greater than Five Years - - Peritus Investments Ltd are owned by the Crown. Concertmaster, Head of Corporate Services, Total non-cancellable operating lease 59 200 for 4 years from 29 May 2017 Related party disclosures have not been made Head of Marketing, Head of Development, and end on 28 May 2021. for transactions with related parties that are within Head of Artistic Planning, Head of Projects, and a normal supplier or client/recipient relationship the Head of People & Delivery. The value of non cancellable rental lease commitments to Robt Jones Holdings Limited on terms and condition no more or less favourable for the lease of NZSO’s Auckland office space in the Southern Cross Building, High 2020 2019 than those that it is reasonable to expect NZSO $000 $000 Street, Auckland are as follows: would have adopted in dealing with the party at Actual 2020 Actual 2019 arm’s length in the same circumstances. Further, Key Management personnel compensation $000 $000 transactions with other government agencies (e.g. Government departments and Crown entities) are Board Members Less than One Year 14 14 not disclosed as related party transactions when Remuneration 95 97 Between One and Two Years 4 14 they are consistent with the normal operating arrangements between government agencies and Full-time equivalent members 0.2 0.2 The lease commitments Between Two and Five Years - 4 undertaken on the normal terms and conditions for to Robt Jones Holdings Strategic Leadership Team Greater than Five Years - - Limited are for 3 years and such transactions. six months from 1 April Related party transactions required to be Remuneration 1,529 1,217 Total non-cancellable operating lease 18 32 2019 to 31 March 2022. disclosed Full-time equivalent members 8.3 7.2 iii) The NZSO transacts with The NZSO Foundation The value of non cancellable rental lease commitments to Nicola N Varuhas for the lease a separate registered charitable trust in which Total key management of NZSO’s Wellington Music Library space in Boulcoutt Street, Wellington are as follows: NZSO board members Daniel Wong and Ainsley personnel remuneration 1,624 1,314 Walter have been trustees of the NZSO Foundation Actual 2020 Actual 2019 Total full-time during the year. $000 $000 equivalent personnel 8.5 7.4 All transactions were carried out on an arms Less than One Year 35 35 length basis. Total amounts paid to the NZSO The full time equivalent for Board members has Foundation were $181,456 (2019: $92,525) and Between One and Two Years 11 35 been determined based on the frequency and received were $576,131 (2019: $556,315). length of Board meetings and estimated time for Between Two and Five Years - 11 The lease commitments to The amounts paid by the NZSO to the NZSO Board members to prepare for meetings. Nicola N Varuhas are for 3 Foundation relate to instrument leases, and Greater than Five Years - - years and six months from donations received with ticket subscriptions. 31 October 2018 and end on The amounts paid include: Total non-cancellable operating lease 46 81 04 May 2022. • Instrument Leases ($16,738) • Donations received with ticket subscriptions The NZSO is also committed to an operating lease of musical instruments, payable to The New Zealand Symphony Orchestra Foundation as follows: ($164,718) The amounts received by the NZSO from The Actual 2020 Actual 2019 NZSO Foundation include: $000 $000 • Support for Orchestral Activity ($200,000) Less than One Year 15 15 • Fundraising Executives sponsorship ($100,000) Between One and Two Years 15 15 • Administration expenditure reimbursement ($100,000) Between Two and Five Years 46 46 • Grants for concert activities, training of The lease period is 15 years Greater than Five Years 25 40 from the original lease musicians and payment for instruments ($76,131) Total musical instruments lease commitments 101 116 start date, on individual instrument basis.

44 45 14. Board Member Fees 16. Employee Insurance 18. Covid General Funds is $1,317,000 higher than the budget. This is due to the surplus for the Board members remuneration received or due Musical instruments owned by the players and The impact of the outbreak of the coronavirus year partially offset by the lower level of capital and receivable during the year is as follows. used within the orchestra are subsidised by the (COVID-19) has as ongoing impact on the injected by the Crown due to the revised timing of NZSO at 40% of the premium under a Material financial performance of the NZSO. The NZSO the Wellington Town Hall project. 2020 2019 Damage policy. has been unable to hold live performances at Cash and cash equivalents is $4,616,000, or $000 $000 Alert levels 2 to 4. In addition the ability to bring $1,982,000 above the budget. The increase is international guest artists into New Zealand D Best (Chair) 1 - 10.0 due to the unbudgeted surplus for the year, plus 17. Employee Renumeration continues to be affected by border restrictions in recovery of accounts receivable from the previous L Kubiak (Chair) 2 24.0 19.6 place at Alert levels 1-4. year end, and a lower spend on the Wellington The number of employees whose remuneration The cancellation of concerts reduced Town hall project than originally planned. P Biggs 3 - 13.0 and other benefits was above $100,000 for the budgeted concert revenue from ticket sales, Trade receivables is $401,000 higher than B Holdsworth 4 5.9 13.5 year ended 31 December 2020 within $10,000 and impacted sponsorship revenue received the budget. This is primarily due to the timing of bands are as follows. as contra, however this is offset by not recoveries from the NZSO Foundation. 5 P McArthur 7.9 13.5 incurring expenditure to present live concert The net book value of property, plant and 2020 2019 performances. The expenditure to present C Murray 13.5 13.5 equipment is budgeted to be $2,774,000. The alternative methods of delivery e.g. streaming $100,000 - $109,999 18 12 actual amount at 31 December 2020 is $1,317,000. D Wong 13.5 13.5 are met by savings from not being able to The lower amount is attributable to a lower $110,000 - $119,999 11 2 present live performances. investment in the Wellington Town Hall project A Walter 6 7.6 - than planned. $120,000 - $129,999 2 1 G Dangerfield 7 9.5 - $130,000 - $139,999 2 3 19. Explanations of Major E Read 8 7.6 - Variances Against Budget $140,000 - $149,999 1 2 20. Events after the C Walsh 9 5.6 - Explanations of major variances from the budget Balance Date $150,000 - $159,999 1 - figures for 2020 are: Total 95.1 96.6 The funding for 2021 will be met from the $200,000 - $209,999 - 2 Statement of Comprehensive Revenue and baseline funding received from the Crown, plus Expense the surplus achieved during 2020. This funding 1. D Best term as Board Chair expired on 31 May 2019. $210,000 - $219,999 1 - 2. L Kubiak was appointed as a Board Chair effective Concert revenue is $1,036,000, $885,000 below is budgeted to be sufficient to cover the core from 1 June 2019. $250,000 - $259,999 1 - the budget of $1,921,000. The below budget ongoing expenditure of the NZSO. This includes 3. P Biggs was a board member until mid-December performance is due to concerts cancelled due salaries, lease expenditure and other related 2019. $300,000 - $309,999 1 1 to the impact of the Covid-19 pandemic, and the expenses. The postponement or cancellation 4. B Holdsworth was a board member until 25 June 2020 closure of venues. of concerts is forecast to reduce budgeted 5. P McArthur was a board member until 31 July 2020 The Chief Executive’s remuneration fell within the range Other revenue of $1,228,000 is $825,000 concert revenue from ticket sales, and may 6. A Walter was appointed as a board member effective $300,000 to $309,999 for the 2020 year. below the budget of $2,053,000. The lower impact sponsorship revenue received as contra, from 8 June 2020. The Chief Executive’s remuneration fell within the range revenue is primarily due to the impact of however this is expected to be offset by not $300,000 to $309,999 for the 2019 year. 7. G Dangerfield was appointed a board member less sponsorship revenue with less concerts incurring expenditure to present live concert effective from 8 June 2020. The Chief Executive’s remuneration fell within the range performed during 2020 than budgeted. $270,000 to $279,999 for the 2018 year. performances. 8. E Read was appointed a board member effective from Other expenditure is $5,172,000, $3,304,000 8 June 2020. The Chief Executive’s remuneration fell within the range The forecast expenditure to present below the budget of $8,476,000. The reduced 9. C Walsh was appointed a board member effective $270,000 to $279,999 for the 2017 year. alternative methods of delivery are forecast to be from 1 August 2020. number of concert performances resulted met by savings from not being able to present in lower expenditure across international live performances. conductors and soloists, venue hire, production The impact on short-term business 15. Board & Officers costs, and transport and accommodation operations is not forecast to present financial Liability Insurance expenditure. outcomes that cannot be managed from the The net surplus of $1,522,000 compares to existing financial resources of the organisation, a budgeted break-even position. This is due to The NZSO has arranged policies of “Directors’ and on going baseline Crown funding. performing less concerts than planned due to and Officers’ Liability Insurance” which ensures At this time, it is not possible to determine the COVID-19 pandemic. With concert costs that generally board members and officers will the full effect of the COVID-19 pandemic. There generally being greater than revenues earned incur no monetary loss to the limit of indemnity could also be other matters that affect the NZSO. less concert activity will yield a surplus. of $3,000,000 for any one claim or in all, as a The Crown contributed $500,000 to an result of actions undertaken by them as board increase in equity compared to a budgeted members or officers. amount of $1,000,000. The lower amount was due to revised timing of the redevelopment of the Wellington Town Hall project. 46 47 Independent Auditor’s Report Independent Auditor’s Report

To the readers of New Zealand Symphony Orchestra’s financial statements and performance Basis for our opinion Responsibilities of the auditor for the audit of information for the year ended 31 December 2020 We carried out our audit in accordance with the financial statements and the performance the Auditor-General’s Auditing Standards, information The Auditor-General is the auditor of New – for the one class of reportable outputs: which incorporate the Professional and Our objectives are to obtain reasonable Zealand Symphony Orchestra (the NZSO). – its standards of delivery Ethical Standards and the International assurance about whether the financial The Auditor-General has appointed me, Chris performance achieved as compared Standards on Auditing (New Zealand) issued statements and the performance information, Webby, using the staff and resources of Audit with budgets included in the by the New Zealand Auditing and Assurance as a whole, are free from material misstatement, New Zealand, to carry out the audit of the statement of performance Standards Board. Our responsibilities under whether due to fraud or error, and to issue an financial statements and the performance expectations for the financial year; those standards are further described in the auditor’s report that includes our opinion. information, including the performance and Responsibilities of the auditor section of our Reasonable assurance is a high level of information for an appropriation, of the NZSO on report. – its actual revenue and output assurance, but is not a guarantee that an audit his behalf. expenses as compared with the We have fulfilled our responsibilities in carried out in accordance with the Auditor- budgets included in the statement accordance with the Auditor-General’s Auditing General’s Auditing Standards will always Opinion of performance expectations for the Standards. detect a material misstatement when it exists. Misstatements are differences or omissions We have audited: financial year; and We believe that the audit evidence we have of amounts or disclosures, and can arise from – what has been achieved with the obtained is sufficient and appropriate to provide • the financial statements of the NZSO on fraud or error. Misstatements are considered appropriation; and a basis for our audit opinion. pages 30 to 47, that comprise the statement material if, individually or in the aggregate, of financial position as at 31 December 2020, – the actual expenses or capital they could reasonably be expected to influence the statement of comprehensive revenue expenditure incurred compared with Responsibilities of the Board for the financial the decisions of readers, taken on the basis of and expenses, statement of changes in the appropriated or budget expenses statements and the performance information these financial statements and the performance equity and statement of cash flows for the or capital expenditure. The Board is responsible on behalf of the information. year ended on that date and the notes to the – complies with generally accepted NZSO for preparing financial statements For the budget information reported in the financial statements including a summary accounting practice in New Zealand. and performance information that are fairly financial statements and the performance of significant accounting policies and other presented and comply with generally accepted Our audit was completed on 22 April 2021. information, our procedures were limited to explanatory information; and accounting practice in New Zealand. The Board This is the date at which our opinion is checking that the information agreed to the • the performance information of the NZSO on is responsible for such internal control as it expressed. NZSO’s statement of performance expectations. pages 24 to 29. determines is necessary to enable them to We did not evaluate the security and controls The basis for our opinion is explained prepare financial statements and performance In our opinion: over the electronic publication of the financial below, and we draw attention to the impact information that are free from material • the financial statements of the NZSO on statements and the performance information. of Covid-19 on the NZSO. In addition, we misstatement, whether due to fraud or error. pages 30 to 47: outline the responsibilities of the Board and As part of an audit in accordance with the In preparing the financial statements and – present fairly, in all material respects: our responsibilities relating to the financial Auditor-General’s Auditing Standards, we the performance information, the Board is statements and the performance information, we exercise professional judgement and maintain – its financial position as at 31 December responsible on behalf of the NZSO for assessing comment on other information, and we explain professional scepticism throughout the audit. 2020; and the NZSO’s ability to continue as a going our independence. Also: – its financial performance and cash concern. The Board is also responsible for flows for the year then ended; and disclosing, as applicable, matters related to • We identify and assess the risks of material Emphasis of matter – Impact of Covid-19 misstatement of the financial statements – comply with generally accepted going concern and using the going concern and the performance information, whether accounting practice in New Zealand in Without modifying our opinion, we draw basis of accounting, unless there is an intention due to fraud or error, design and perform accordance with Public Benefit Entity attention to the disclosures about the impact of to merge or to terminate the activities of the audit procedures responsive to those risks, Reporting Standards Reduced Disclosure Covid-19 on the NZSO as set out in note 18 and NZSO, or there is no realistic alternative but to and obtain audit evidence that is sufficient Regime; and 19 to the financial statements and page 25 of the do so. and appropriate to provide a basis for our performance information. The Board’s responsibilities arise from the • the performance information on pages opinion. The risk of not detecting a material Crown Entities Act 2004 and the Public Finance 24 to 29: misstatement resulting from fraud is higher Act 1989. – presents fairly, in all material respects, than for one resulting from error, as fraud the NZSO’s performance for the year may involve collusion, forgery, intentional ended 31 December 2020, including: omissions, misrepresentations, or the override of internal control.

48 49 Independent Auditor’s Report

• We obtain an understanding of internal Other information control relevant to the audit in order to The Board is responsible for the other information. design audit procedures that are appropriate The other information comprises the information in the circumstances, but not for the purpose included on pages 1 to 23 and 51 to 61, but does of expressing an opinion on the effectiveness not include the financial statements and the of the NZSO’s internal control. performance information, and our auditor’s report • We evaluate the appropriateness of thereon. accounting policies used and the Our opinion on the financial statements and the reasonableness of accounting estimates and performance information does not cover the other related disclosures made by the Board. information and we do not express any form of • We evaluate the appropriateness of the audit opinion or assurance conclusion thereon. reported performance information within In connection with our audit of the financial the NZSO’s framework for reporting its statements and the performance information, performance. our responsibility is to read the other information. • We conclude on the appropriateness of In doing so, we consider whether the other the use of the going concern basis of information is materially inconsistent with the accounting by the Board and, based on the financial statements and the performance audit evidence obtained, whether a material information or our knowledge obtained in the audit, uncertainty exists related to events or or otherwise appears to be materially misstated. conditions that may cast significant doubt If, based on our work, we conclude that there is a on the NZSO’s ability to continue as a going material misstatement of this other information, we concern. If we conclude that a material are required to report that fact. We have nothing to uncertainty exists, we are required to draw report in this regard. attention in our auditor’s report to the related disclosures in the financial statements and Independence the performance information or, if such We are independent of the NZSO in accordance disclosures are inadequate, to modify our with the independence requirements of the opinion. Our conclusions are based on the Auditor-General’s Auditing Standards, which audit evidence obtained up to the date of our incorporate the independence requirements of auditor’s report. However, future events or Professional and Ethical Standard 1: International conditions may cause the NZSO to cease to Code of Ethics for Assurance Practitioners issued continue as a going concern. by the New Zealand Auditing and Assurance • We evaluate the overall presentation, Standards Board. structure and content of the financial The Audit Committee Chair of the NZSO and Board statements and the performance information, member is a member of the Auditor-General’s including the disclosures, and whether the Audit and Risk Committee. The Auditor-General’s financial statements and the performance Audit and Risk Committee is regulated by a Charter information represent the underlying that specifies that it should not assume any transactions and events in a manner that management functions. achieves fair presentation. Other than in our capacity as auditor, and the We communicate with the Board regarding, relationship with the Auditor-General’s Audit and among other matters, the planned scope and Risk Committee, we have no relationship with, or timing of the audit and significant audit findings, interests, in the NZSO. including any significant deficiencies in internal control that we identify during our audit. Our responsibilities arise from the Public Audit Act 2001. Chris Webby Audit New Zealand Joan Perarnau Garriga, On behalf of the Auditor-General Section Principal Bass Wellington, New Zealand 50 51 Personnel Policy Recruitment, Selection and Induction Organisational Health Te Kaupapa Here mō ngā Kaimahi Te Kimi, te Kōwhiri, me te Uru Kaimahi It is almost 75 years since the first musicians of The NZSO is committed to providing equality and Capability the National Orchestra sat down to their inaugural of opportunity in its employment policies. All rehearsal. In 2022, the NZSO celebrates the 75th permanent positions are advertised externally anniversary of its first-ever performance. To ensure to attract a wide range of candidates. The best the NZSO continues to deliver on its objectives candidates are appointed to positions after Te Ora me te Āheinga in future years, it must maintain a motivational following a strict selection process. and positive working environment. The NZSO’s The Orchestra ensures that diversity is o te Whakahaere financial resources need to be sufficient (and achieved, where appropriate, on all appointment utilised effectively) to deliver a diverse, quality panels. For the selection of players, all applicants artistic programme. are invited to audition, and to ensure impartiality, Employee participation is important to the the first and second rounds of auditions are Orchestra. The NZSO encourages staff to be held behind screens. The NZSO also follows a involved in the development, review and renewal of structured and formalised induction process for policies. Every year in the Annual Report, the NZSO new employees. includes a workplace profile covering headcount, age ranges, gender and length of service (see page 55). Flexibility and Work Design The NZSO adheres to the principles of being a Te Pīngore me te Hoahoa o te Mahi good employer. Specifically, the NZSO has policies The NZSO recognises that both the organisation and procedures covering the seven key elements and employees can benefit from flexible working of being a good employer, as defined by the practices, family-friendly initiatives and other Human Rights Commission, and is committed to assistance to employees to achieve work/life demonstrating best practice in those areas. balance. The NZSO seeks workable solutions to help employees achieve work/life balance while at the Safe and Healthy Environment same time fulfilling the organisation’s business He Taiao Haumaru me te Hauora and operational needs including the demands of The NZSO strives to provide employees with a the unique working environment of musicians in healthy and safe working environment. Reporting an orchestra. of hazards is strongly encouraged, and systems are in place to ensure that process improvements can be made and harmful impacts minimised. All employees receive regular information regarding health and safety and initiatives, and employee involvement and representation from across the organisation are active and productive. 2020 saw increased focus on strategies and support for employees’ mental health.

Rowan Prior, Cello

52 53 Leadership, Accountability and Culture Harassment and Bullying Prevention Workplace Profile Te Ārahitanga, te Kawenga Haepapa, me te Te Kaupare i te Whakatīwheta me te Whakaweti Te Hanga o te Wāhi Mahi Ahurea The NZSO is committed to providing a safe The following tables show the workplace profile The NZSO has a commitment to consultation workplace that is free from harassment and covering length of service, age ranges and gender to allow employees to have an opportunity to bullying. for the NZSO musicians and support team as at participate in decision making. Consultative All employees are required to behave 31 December 2020. committees are set up to ensure regular appropriately in the workplace, and the NZSO’s The NZSO has an establishment of 120 full-time consultation with employees. These include the: values are frequently discussed to promote equivalent staff (FTEs) with 90 musicians and 30 • Players’ Committee – the representative how we expect employees to behave. Policies in the support team. As at 31 December 2020, voice to the NZSO’s Board and Executive are regularly reviewed and updated, and there were 15 vacancies in the establishment – Leadership of those players who are training is developed to promote awareness 12 musicians and three in the support team. members of the E tū union of standards, expectations and what to do if Length of service • Health and Safety Committee someone experiences or witnesses inappropriate behaviour. • Artistic Planning Forum Musicians Support Total %

• Hui Matua – ensuring that the wider 0–5 years 10 26 36 34 leadership within the NZSO has a voice Policy Review 6–15 years 19 1 20 19 • Environmental Action Group – advises the Te Arotake Kaupapa Here CEO and wider organisation on progress The NZSO is currently undertaking a 16–25 years 21 - 21 20 towards the NZSO’s sustainability mandate comprehensive review of all internal policies. 26–35 years 21 - 21 20 • Education Committee The aims of the review are to: • Small Ensemble Committee • align policies with the NZSO’s vision and 35+ years 7 - 7 6 mission Total 78 27 105 100 • ensure best-practice operations and risk Employee Development, Promotion and Exit management Te Whakawhanake, te Whakapiki, te Wehe hoki • warrant compliance with current New Age ranges o te Kaimahi Zealand legislation Employee remuneration is regularly reviewed, Musicians Support Total % The objectives include to: and training and development opportunities • identify and collate all existing policy 0–25 years 0 0 0 0 are prioritised for all employees. The NZSO has documents introduced a professional development system 26–35 years 6 12 18 17 for players, which continues to be improved. The • identify any policy gaps and consider any new NZSO also has a structured and formalised exit policies required 36–45 years 23 5 28 26 procedure included in the Personnel Manual, • check consistencies, dependencies and 46–55 years 23 2 25 24 which is followed. relevant legislation • republish and communicate amended and 56–65 years 23 4 27 26 updated policies 65+ years 3 0 3 3 Remuneration, Recognition and Conditions Ngā Utu, Te Tuku Mana, me ngā Āhuatanga Not disclosed 0 4 4 4 mahi Total 78 27 105 100 A majority of players are employed under a collective employment agreement. The NZSO negotiates with the E tū union, adhering to the Gender principles of good-faith bargaining. The NZSO provides fair and reasonable Musicians Support Total % terms and conditions of employment. Many entitlements exceed the statutory minimums as Male 42 14 56 53 set out in New Zealand legislation. Female 36 13 49 47 The Board of the NZSO consults with the State Services Commission with regards to the review Total 78 27 105 100 and remuneration of the CEO.

54 55 Our Supporters Kaitautoko

Spectacular, Podium Series

56 57 Maestro Circle ($10,000+) Ian Fraser & Suzanne Snively Alison Morton Hedwig Eisenbarth Alan & Luba Perry Dr Lynnette Jones & Verna Adam Kelly Vince & Florencia Lee Ian & Kim New Garth England C. M. Power Deborah Mills Donald Best ONZM & Susan Best David Lord & Tracy Grant Lord I.J. Northover Penelope England* & Wendy Lee Bruce Rae & Margaret Mabbett Anna Marion Rex Benson Jim Mann Fay Pankhurst John Errington Tony Reeve Shar Miles Peter Biggs CNZM* & Mary Biggs Ngaire Mann & Alison Mann Barbara Peddie Eric Espiner John Reseigh Mary O’Brien Sir Roderick & Gillian, Lady Deane Philippa, Lady Tait Richard & Julia Perry Tom & Kay Farrar Richard & Val Hilde Otley Peter Diessl ONZM^ & Carolyn Diessl Noel Vautier & Kerrin Vautier CMG Ross & Judith Pottinger John Farrell & Helen & John Rimmer Mr Robinson The FAME Trust Warwick & Linda Webb MNZM John & Win Rockell Rosemary Fullerton-Smith Julia Risk Peter & Juliet Rowe^ Fehl Charitable Trust Carla & John Wild Miles Rogers Dick & Shirley Fernyhough Seaway Cleaning Services Ltd Anonymous (18) Dame Bronwen Holdsworth DNZM A R. (Bob) Wallis Judith Ross Marion Fitchett & David Tripe Mel Smith & Prue Oxley Dr Hylton Le Grice CNZM, OBE & Anonymous (1) Warwick Slinn Sas Fookes Robyn Smith Realised Legacies Ms Angela Lindsay Peter & Kay Squires Brian Foley Martin & Catherine Spencer (2007–present) Christopher Finlayson QC Artist Circle ($1,000+) Ross Steele^ Kent & Gaye Gardner^ Carol & Paul Stigley Mrs Ursula Bayfield Mary Fitzwilliam Award Dr M & V Abernethy Ken & Mary Thomson Dagmar Girardet Wendy Straton & Tom Young Barbara Kathleen Bird Paul McArthur & Danika Charlton Ron & Joan Adams Judith Trotter Michael Godfrey Jenny & Ian Thomas Peter Brooks Peter Masfen CNZM & Odette Alleyne (née Outtrim) Peter Verner & Michael Vidulich David & Sally Graham Heather & Steve Thompson Judith Clark Joanna Masfen & Alan Evans Michael & Margaret Walls Elizabeth Grieve Hugh & Marion Townend William Clayton Julie Nevett Julian & Selma Arnhold Daphne & John Wardle Erina Harding Jo & Roger Wall Frederick Coad Glennis, Lady Pettigrew Geoff & Vivien Atkinson Margaret & John Wareham Cliff Hart Peter & Kathryn Walls Dale Densem Peter^ & Juliet Rowe Leslie Austin Deborah Watson & Alec Bruce Miriam Joel Hartman Jeanne Wardill Joan Dingley Les Taylor QC Jenny Ballantyne David Weatherburn & Maxine Dixon Susan Hayward Daphne & John Wardle Margaret Doucas Carmel Walsh^ & Anita Banbury Tim Wilkinson^ & Lynette Murdoch Ngaire Hoben & Richard Irvine Paula Warren A. R. Edmonds Simon O’Neill ONZM Emma & George Bettle Barbara Wreford E Prof Les Holborow Frank Webster Margaret Everton Anonymous (2) Hon. John Boscawen Ann Wylie Rob Hole & Sue Batley Valerie Wenk The FAME Trust John & Christine Brook David & the late Helen Zwartz Richard & Christine Irving Glenda West Mary Fitzwilliam Virtuoso Circle ($5,000+) Mary E Brown Anonymous (9) David Jenkinson QSM Barbara Wilson Owen Gebbie Marie Brown MNZM John Bruce Catherine & Jeremy & Viv Whimster John Gould & Brendan Brown Alan & Sandy Bulmer Sonata Donor ($500+) John Kennedy-Good Anita Woods Valerie & Kelvin Grant Ros & Philip Burdon Angela Caughey Jack & Elizabeth Alison Paul & Gillian Kennerley Nelson Wong Kathleen Hughes Gillian Clark & Matilda Goldie Molly Chapman Sylvia & Bill Allan David King Dr Alan Wright & Allan Silas Jenkins Diana Duff-Staniland Drs JD & SJ Cullington Professor Gordon &erson Judith Knibb Nicola McClymont William Johnstone Bill Falconer CNZM & Olive Falconer Alfie & Susie des Tombe H.B. Angus Laurence Kubiak^ & Jennifer Maybee Anonymous (26) Marie Lockey Brian & Sally Hasell John Evans Heather & Richard Armishaw Martin Lawrence Morag MacDonald Holdsworth Charitable Trust Michiel During & Cathy Ferguson Warren & Margaret Austad Lorna Leonard Trusts & Foundations Zita Outtrim Jennie McInnes Ian Fraser Austrian Consulate Wellington Howard Livingston Community Trust South Anne Pengelly Rochelle McLaren Richard & Dorothy Fraser Lesley Ayers C & K Lloydd Hugo Charitable Trust Erika Schorss Deryk & Jan McNamara Belinda Galbraith Vivienne & Duncan Bamfield Ann Mallinson Lilburn Trust Corinne Shirley Opie Clare^ & Justin Murray Michael & Creena Gibbons R. Bargh Kevin & Julie Marshall The Cranfylde Charitable Trust Keith L Stichbury Jennifer Pelvin & Gary Butler Garry & Susan Gould Philippa Bates John & Jennifer Matthews The Mainland Foundation Monica Taylor Martin & Kay Pipe Laurence Greig Susan Batley & Rob Hole Mrs Anna McCreath Munro Wagner New Zealand Foundation Lesley Wyatt Professor Jack C Richards Dr Elizabeth Griego A. I. Boddy Music Futures The Performing Arts Foundation Anonymous Dame Adrienne Stewart Dr John Grigor & Ms Deborah Roger & Joanna Booth Ann & Fergus McLean of Wellington Alison Thomson Keating Collins Family Elizabeth McLeay Pub Charity Endowed Funds Kaine Thompson Gary & Helena Hawke Colin Calcinai Jeff & Marise McNeill The Wallace Foundation June Violet Commons Fund Margaret Trotter Robin Henderson MD & MA Carr John Meads & WEL Energy Trust Emma & Jack Griffin Ainsley Walter^ & Mark Stewart Anne Marie Moorhead Charitable Trust Antonia Hill Noel Carroll Daniel^ & Kylie Wong Glenda & Peter Menzies Reeves Harris Orchestra Fund Don & Janine Hunn Stuart & Lizzie Charters Vincent Aspey Society Brenda Young Middlekoop Family Take Note Trust Margaret & John Hunn Lorraine & Rick Christie (Notified Legacies) Anonymous (2) Doug & Adrienne Miller David & Heather Hutton Patricia, Lady Clark Leslie Austin Heather Miller Dr Lynnette Jones & Jim & Margaret Collinge Viv & Duncan Bamfield Orchestra Circle ($2,500+) Deborah Mills Terry & Margaret Mills Sally Combly Vivian Chisholm Ted & Ann Aspey Morgan & Patricia Jones Ken & Madeline Moon *current NZSO Staff and Musicians Jeremy Commons & the late Gillian Clark Paul & Sheryl Baines ^current NZSO Board and Fenton & Felicity Kelly David Carson-Parker Shinji & Keiko Morimoto Bryan Crawford Mark Barrow^ Foundation members Jane Lawrence Alison Cook Roger & Barbara Moses Murray Eggers Virginia Breen All charitable donations in support Geoff & Elizabeth Lee Reverand Charles Cooper Andre & Helene Muller D J Foley of the NZSO are received and Alison Buchanan & Eric Johnston Annette & Ralph Lendrum Michael Nicholls Maggie Harris Prue Cotter administered by The NZSO Allison & Victor Diem Linda MacFarlane Sir Geoffrey & Margaret Palmer Win Davies Cliff Hart Foundation, a registered charitable Christopher & Christopher & Jilly Marshall Janet Davidson Philip & Viola Palmer Eric Johnston & entity (CC24274) under the Charities Matthew Nolan-Downs Roger & Jenny Mountfort Chris & Dianne Patterson Alison Buchanan Act of 2005.

58 59 Principal Partners

Circle Partners

SPENCER LEVINE

Concerto Partners

Overture Partners

Antonio Strings Limited Hurricane Denim Pacific Resorts Hotel Group Ark Advance Fuji Xerox New Zealand Phantom Billstickers Ltd Barfoot & Thompson JBWere The Shoe Clinic Buoy Salon & Spa Juliette Florist, Wellington Trinity College London ComplyWith McLaren Associates Ltd Court Florist, Christchurch Multi-Media Systems Ltd

Special Funding Agencies

WELLINGTON Level 8, Findex House 57 Willis Street NZSO works in collaboration with Wellington 6011 SOUNZ Centre for New Zealand Music AUCKLAND Level 3, Storytime Live with Troy Kingi: Te Papa Southern Cross Building Back cover Samuel Jacobs, 59–67 High Street RNZ Concert is the NZSO’s Section Principal Horn Auckland 1010 official broadcaster

60 nzso.co.nz 0800 479 674 / [email protected]

facebook.com/newzealandsymphonyorchestra

twitter.com/nzso

youtube.com/nzsymphonyorchestra

instagram/nzsymphonyorchestra

Supported by the New Zealand Government through