Music NSW Incorporated ABN 50 416 153 997

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Financial Statements

For the Year Ended 31 December 2020

Music NSW Incorporated

ABN 50 416 153 997

Contents For the Year Ended 31 December 2020

Page

Financial Statements

Committee Members' Report 1 Auditor's Independence Declaration under Section 60-40 Australian Charities and Not for Profit Commission Act 2012 5 Statement of Profit or Loss and Other Comprehensive Income 6 Statement of Financial Position 7 Statement of Changes in Equity 8 Statement of Cash Flows 9 Notes to the Financial Statements 10 Responsible Persons' Declaration 15 Independent Audit Report 16 Detailed Trading Account 18

Chair's Report 19 Treasurer's 2020 AGM Report 20

Music NSW Incorporated

ABN 50 416 153 997

Committee Report 31 December 2020

The Committee Members present their Report on Music NSW Incorporated for the financial year ended 31 December 2020.

General Information

Committee Members

The names of Committee Members throughout the year and at the date of this Report are:

Julian Knowles Chair Jana Gibson Deputy Chair Kristy Wilson Treasurer Jane Slingo Vic McEwan Emily Nicol Kathryn Holloway Emily Collins Sec, Managing Director

Review of Operations

The Profit of the Entity amounted to $ 112,462.

Other Items

Events after the Reporting Date

No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Entity, the results of those operations or the state of affairs of the Entity in future financial years.

Information on Committee Members

Julian Knowles Qualifications Julian is a musician, producer and senior academic with a career spanning over 20 years. Julian has an extensive background in the Australian and UK independent music scenes. One of his bands, Even As We Speak, achieved significant chart success in the UK and was one of only four Australian bands ever to be invited to record sessions for the prominent BBC Radio 1 DJ, John Peel. Julian has a decade of senior academic leadership experience, having held Head of School positions at the University of Western Sydney, University of Wollongong and Queensland, University of Technology. He has consulted to arts funding agencies and has served as a member of the Music Board of the Australia Council for the Arts. In addition, he has more than a decade of experience as a chair and board member in the not-for-profit arts sector, having held the chair position at Q Music for 6 years and serving on the boards of the Music Council of Australia, The Wired Lab, and the National Council of Tertiary Music Schools. As an expert consultant he has led external reviews at the University of Technology Sydney and Southern Cross University. Julian is currently Professor of Music in the Department of Media, Music, Communication and Cultural Studies at Macquarie University in Sydney, Australia, where he is also the Research Leader for the Music and Sound Cultures Group and the Creative Ecologies Lab. 1 Music NSW Incorporated ABN 50 416 153 997 Committee Report 31 December 2020

Information on Committee Members

Kristy Wilson Qualifications Music NSW Treasurer Kristy Wilson brings over 20 years experience in the music industry across government funding, music festivals, touring, and not-for profits. A highlight being six years working with the full-time core team and touring with the Big Day Out as a National Event Administrator.

After the Big Day Out, Kristy completed specialist tax training, and a Diploma of Accounting. This led to a bookkeeper role music at start up Jaxsta, then a Tax Manager role at Above the Line Accounting– a firm that specialises in tax and accounting for the film and tv industry.

Now, Kristy is a registered BAS Agent accepting bookkeeping clients via her own business Best In Show Bookkeeping. In 2020 Kristy completed the AFTRS Film & TV Production Accounting Certificate and is also works freelance as an Assistant Accountant on film and tv productions. Recent credits include Hardball2 and Beauty and The Geek S1.

Jane Slingo Qualifications Jane has worked in the electronic music biz for over twenty years in a variety of roles. Jane is currently an artist manager, Executive Producer for Electronic Music Conference and consultant to a handful of agencies for projects specific to electronic music.

Vic McEwan Qualifications Vic McEwan is an interdisciplinary artist exploring sound, video and installation. He is a producer and director who is interested in landscape, communities, remote spaces and cross art form collaboration. Vic is the Inaugural Arts NSW Regional Arts Fellow. This involves Vic working as the 2015 Artist in Residence at the National Museum of Australia, exploring human engagement with the landscape. Vic is also undertaking a major arts/health project in the UK with Manchester University and A H C Ha a ca a trauma reduction. Vic has devised, developed and presented a diverse program of past work involving major partnerships with multiple outcomes ranging from flood trauma recovery to interactive gallery installations. Emily Nicol Qualifications Emily Nicol is an Aboriginal/Torres Strait Islander media professional based in Sydney. Working in a diverse range of positions within media including journalism, TV production, Music and , E c c/ Ma Tac, S' K Ra, a al producer with NITV, and freelance journalist with articles featured in such publications as The Guardian, SBS Life, Time Out.

Growing up in a family immersed in the music & entertainment business, Emily got her first taste of show business at 6 months of age when she was cast in a popular Australian TV series A Country Practice, followed by appearances in film and mini-series - sparking an intimate knowledge of the art and process of storytelling, which has captivated her ever since, and is one of the main driving forces behind her current career aspirations.

While passionate about music, arts and culture, Emily has also nurtured other diverse interests and passions over the years which inform a strong commitment to contributing to positive social change, healing, and equality-especially for women and Indigenous cultures- by means of showcasing strong role models, empowering artists and generational leaders through a variety of different mediums including, music, image, theatre, dance and more.

Recently E a G E a ca T O S T Deadly Issue, which celebrated the many contributions of Indigenous Sydneysiders and which was nominated for a Mumbrella Publishing Aa Sca E T Ya ca. Eily curated the first official dedicated Australian Indigenous 2 Music NSW Incorporated

ABN 50 416 153 997

Committee Report 31 December 2020

Information on Committee Members playlist for Spotify, launched during NAIDOC Week 2017 Bac Aaa and has been a guest speaker on Spotify Music panel on Diversity and Inclusion in the music industry and alongside artists such as FlexMami and AlphaMama on a special panel for the Inaugural Women in Music Empowerment Day. Emily is enjoying being back in front of the camera producing and presenting a series of movie reviews for Indigenous Australian films for the Ozflix platform. She has also just been appointed on the Board of Directors for MusicNSW guiding local artists and is a part of the Audiocraft conference programming committee, offering a voice for community radio and the diverse voices within audio and podcasting in Australia. Kathryn Holloway Qualifications As General Manager of Cattleyard, Kathryn continues to work with Groovin the Moo, THE PLOT and pursue her love of management in the music and community c N Fa, NGO c S O Sa (CaT).

While completing her B Arts (Communication Studies) at Newcastle University (2000-2003), Kathryn held a number of internships. It was a communications role with Malcolm Sargent Cancer Fund For Children (now known as Red Kite) and a marketing role with 1233 ABC Newcastle that were key influencing factors on her career direction.

From 2004 2010 Kathryn coordinated the 1233 ABC Newcastle Music Awards project (supporting and giving airplay to the regions up and coming artists) for the Nation's Broadcaster (ABC). In-between each annual event, she starting building her career in publicity by learning from the best in the music PR business (with Paa J) and taking on a variety of roles for Gadigal Music and ABC Music with Homebake, Waveaid, Bluesfest, Soundwave and Groovin the Moo rounding out her festival experience.

She has had the privilege of working as a programming assistant at some of Australia's finest arts festivals - Perth International Arts Festival (2007 & 2008) and Sydney Festival (2010 & 2011).

Ka G M (Caa P) a 2006 and has evolved from Publicist to Artist Relations Manager to Event Manager to then being made General Manager for the six-show regional tour in July 2012.

Jana Gibson Qualifications As the Director of Writer Services at APRA AMCOS, Jana leads a team committed to delivering high levels of service to songwriter and composer members in what is a dynamic but complex environment. Having started her working life in hospitality on the NSW north coast, she developed her passion for music by spending most of her free time at live music gigs. Moving into roles in event management for several years across numerous corporate (Lexus, Toyota, HIA) and live music events (ARIA after-parties to live concerts at the Olympics), meant she was well placed to begin her role as Corporate Events Manager at APRA AMCOS in 2003. Jana oversaw the aa a ca , Aa conferences, which led to her appointment as Deputy Director of Communications & Events in 2014. With 13 years of managerial experience across events, communications and member services at APRA AMCOS, Jana was promoted to her current role in 2016. Jana holds a Bachelor of Business in Tourism from Southern Cross University. She recently completed the Developing Strategy for Value Creation programme at the prestigious London Business School.

3 Music NSW Incorporated

ABN 50 416 153 997

Committee Report 31 December 2020

Information on Committee Members

Emily Collins Qualifications Emily Collins is the managing director of music New South Wales. Emily's career has spanned a variety of roles and artforms including cockatoo Island Festival, great escape festival, Qantas Spirit of Youth Awards, NOISE, Sydney Writers Festival, Underbelly Arts and FBI Radio. She's worked as a producer, marketing coordinator and marketing manager, event producer and development manager. Born and raised in remote Northern Territory, she has a passion for supporting the developing regional, indigenous and emerging musicians and artists. With over 10 a c working in the arts, Emily is passionate about finding better ways to connect communities and organisations, as well as helping artists develop sustainable careers.

Auditor's Independence Declaration

The Auditor's Independence Declaration in accordance with section 60-40 ACNC Act 2012 for the year ended 31 December 2020 has been received and can be found on page 6 of the Financial Report.

Signed in accordance with a Resolution of the Members of the Committee:

Committee Member: ...... Committee Member: ......

Dated this ...... 28th Day of ...... April ...... 2021

4 Rosenfeld Kant & Co Chartered Accountants ABN: 74 057 092 046

Level 24, Tower 2 101 Grafton Street Bondi Junction NSW 2022

PO Box 86 Bondi Junction NSW 1355

Phone: +61 2 9375 1200 Fax: +61 2 9389 6695 www.roskant.com.au

Music NSW Incorporated

ABN 50 416 153 997

Auditor's Independence Declaration under Section 60-40 ACNC Act 2012

to the Members of Music NSW Incorporated

I declare that, to the best of my knowledge and belief, during the year ended 31 December 2020, there have been:

(i) no contraventions of the Auditor Independence Requirements as set out in section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012 in relation to the Audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the Audit.

Gary Williams FCA, Registered Company Auditor 4019 Partner Rosenfeld Kant and Co Located in Bondi Junction Dated this 28th Day of April 2021

5 Music NSW Incorporated

ABN 50 416 153 997

Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2020

2020 2019 Note $ $ Revenue 4 530,078 518,632 Marketing Expenses (4,070) (21,763) Occupancy Costs (26,067) (26,588) Administrative Expenses (433,465) (452,114) Other Expenses (24,014) (56,913)

Surplus/(Deficit) Before Income Tax 42,462 (38,746) Income Tax Expense - -

Surplus/(Deficit) From Continuing Operations 42,462 (38,746) Surplus for The Year 42,462 (38,746)

Total Comprehensive Income For The Year 42,462 (38,746)

The accompanying notes form part of these financial statements. 6 Music NSW Incorporated

ABN 50 416 153 997

Statement of Financial Position As At 31 December 2020

2020 2019 Note $ $ Assets Current Assets Cash And Cash Equivalents 5 532,470 350,365 Trade And Other Receivables 6 - 430,806 Other Assets 8 - 2,921

Total Current Assets 532,470 784,092 Non-Current Assets Property, Plant And Equipment 7 170 1,408

Total Non-Current Assets 170 1,408 Total Assets 532,640 785,500

Liabilities Current Liabilities Trade And Other Payables 9 15,389 48,379 Borrowings 1,054 1,903 Provision For Employee Benefits 11 38,932 8,415 Other Financial Liabilities 10 106,000 398,000

Total Current Liabilities 161,375 456,697 Non-Current Liabilities Total Liabilities 161,375 456,697 Net Assets 371,265 328,803

Equity Retained Earnings 371,265 328,803

371,265 328,803 Total Equity 371,265 328,803

The Entity has initially applied AASB 15 using the cumulative effect method and has not restated comparatives. The comparatives have been prepared using AASB 111, AASB 118 and related interpretations. The Entity has not restated comparatives when initially applying AASB 9, the comparative information has been prepared under AASB 139 Financial Instruments: Recognition and Measurement.

The accompanying notes form part of these financial statements. 7 Music NSW Incorporated

ABN 50 416 153 997

Statement of Changes in Equity For the Year Ended 31 December 2020

2020 Retained General Earnings Reserve Total $ $ $ Balance At 1 January 2020 345,151 (16,348) 328,803 Surplus Attributable To Members 42,462 - 42,462

Balance At 31 December 2020 387,613 (16,348) 371,265

2019 Retained General Earnings Reserve Total $ $ $ Balance At 1 January 2019 383,897 (16,348) 367,549 Surplus/(Deficit) Attributable To Members (38,746) - (38,746)

Balance At 31 December 2019 345,151 (16,348) 328,803

The accompanying notes form part of these financial statements. 8 Music NSW Incorporated

ABN 50 416 153 997 Type text here

Statement of Cash Flows For the Year Ended 31 December 2020

2020 2019 Note $ $ Cash Flows From Operating Activities: Receipts From Customers 721,892 152,022 Payments To Suppliers And Employees (539,605) (703,584)

Net Cash Provided By/(Used In) Operating Activities 182,287 (551,562)

Cash Flows From Investing Activities: Purchase Of Property, Plant And Equipment (182) -

Net Cash Provided By/(Used In) Investing Activities (182) -

Net Increase/(Decrease) In Cash And Cash Equivalents Held 182,105 (551,562) Cash And Cash Equivalents At Beginning Of Year 350,365 901,927

Cash And Cash Equivalents At End Of Financial Year 5 532,470 350,365

The accompanying notes form part of these financial statements. 9 Music NSW Incorporated

ABN 50 416 153 997

Notes to the Financial Statements For the Year Ended 31 December 2020

The Financial Report covers Music NSW Incorporated as an Individual Entity. Music NSW Incorporated is a Not-for-profit Association, registered and domiciled in Australia.

The functional and presentation currency of Music NSW Incorporated is Australian dollars.

The Financial Report was authorised for issue by the Committee Members on 29 April 2021.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

The Financial Statements are General Purpose Financial Statements that have been prepared in accordance with the Australian Accounting Standards and the Corporations Act 2001.

2 Summary of Significant Accounting Policies

(a) Revenue and Other Income

For comparative year

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Entity and specific criteria relating to the type of revenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.

Other Income

Other income is recognised on an accruals basis when the Entity is entitled to it.

(b) Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payable are stated inclusive of GST.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

Inventories are measured at the lower of cost and net realisable value.

Inventories acquired at no cost, or for nominal consideration are valued at the current replacement cost as at the date of acquisition, which is the deemed cost.

10 Music NSW Incorporated

ABN 50 416 153 997

Notes to the Financial Statements For the Year Ended 31 December 2020

2 Summary of Significant Accounting Policies

(d) Property, Plant And Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment.

Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at the acquisition date fair value.

Plant And Equipment

Plant and equipment are measured using the cost model.

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Entity, commencing when the asset is ready for use.

(e) Cash And Cash Equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

(f) Employee Benefits

Provision is made for the Entity's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled.

(g) Adoption Of New And Revised Accounting Standards

The Entity has adopted all standards which became effective for the first time at 31 December 2020, the adoption of these standards has not caused any material adjustments to the reported financial position, performance or cash flow of the Entity.

3 Critical Accounting Estimates And Judgments

The Committee Members make estimates and judgements during the preparation of These Financial Statements regarding assumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the Financial Statements, however as additional information is known then the actual results may differ from the estimates.

The significant estimates and judgements made have been described below.

Key Estimates - Impairment Of Property, Plant And Equipment

The Entity assesses impairment at the end of each reporting period by evaluating conditions specific to the Entity that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions.

11 Music NSW Incorporated

ABN 50 416 153 997

Notes to the Financial Statements For the Year Ended 31 December 2020

3 Critical Accounting Estimates and Judgments

Key Estimates - Covid-19

During the 2020 financial year the industry was directly impacted by the required shut downs caused by the Covid19 pandemic. The Organisation has implemented Covid safe policies in place and developed a Business Continuity Plan. The Virus will continue to have an ongoing effect on the Organisation, in particular its ability to deliver its in person events strategy however, it is not felt that this has caused a going concern issue and management will continue to review the finances of the Organisation.

4 Revenue and Other Income

Revenue From Continuing Operations 2020 2019 $ $ Sales Revenue - Interest Income 7,288 9,317 - Create NSW 405,000 478,500 - Apra 31,100 10,940 - Australia Council - 7,000 - City Of Sydney Fund 23,000 15,000 - Administation 6,350 5,460 - Activities Income (740) 8,015 - Auspiced Grants 1,200 (17,100) - Auspiced Projects Commission - 1,500 - Cashflow Boost 56,880 -

Total Revenue 530,078 518,632

5 Cash and Cash Equivalents 2020 2019 $ $ Cash At Bank And In Hand 205,266 (65,146) Short-Term Deposits 327,010 415,317 Other Cash And Cash Equivalents 194 194

Total Cash and Cash Equivalents 532,470 350,365

6 Trade and Other Receivables 2020 2019 $ $ Current Trade Receivables - 428,913 Other Receivables - 1,893

Total Current Trade And Other Receivables - 430,806 12 Music NSW Incorporated

ABN 50 416 153 997

Notes to the Financial Statements For the Year Ended 31 December 2020

6 Trade and Other Receivables

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-term nature of the balances.

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the Financial Statements.

7 Property, Plant and Equipment 2020 2019 $ $ Furniture, Fixtures And Fittings At Cost 1,823 1,823 Accumulated Depreciation (1,823) (1,824)

Office Equipment Computer Equipment At Cost 9,048 8,867 Accumulated Depreciation (8,878) (7,458)

Computer Software Total Plant And Equipment 170 1,408

Total Property, Plant and Equipment 170 1,408

8 Other Assets 2020 2019 $ $ Current Prepayments - 2,921

Total Other Assets - 2,921

9 Trade and Other Payables

2020 2019 Note $ $ Current Trade Payables 1,062 2,262 Gst/Ato Intergrated Account 4,832 37,224 Other Payables 9,495 8,893

Total Trade and Other Payables 15,389 48,379

Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The carrying value of trade and other payables is considered a reasonable approximation of fair value due to the short-term nature of the balances.

13 Music NSW Incorporated

ABN 50 416 153 997

Notes to the Financial Statements For the Year Ended 31 December 2020

10 Other Financial Liabilities 2020 2019 $ $ Current Grants In Advance 106,000 398,000

Total Other Financial Liabilities 106,000 398,000

11 Employee Benefits 2020 2019 $ $ Current liabilities Provision for employee benefits 38,932 8,415 Total Employee Benefits 38,932 8,415

12 Contingencies

In the opinion of the Committee Members, the Entity did not have any contingencies at 31 December 2020 (31 December 2019:None).

13 Events after the end of the Reporting Period

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Entity, the results of those operations or the state of affairs of the Entity in future financial years.

14 Statutory Information

The Registered Office and Principal Place of Business of the Organisation is:

Music NSW Incorporated 107 Redfern Street Redfern NSW 2016

14 Music NSW Incorporated

ABN 50 416 153 997

Responsible Persons' Declaration

The Responsible Persons declare that in the Responsible Persons' opinion:

there are reasonable grounds to believe that the registered entity is able to pay all of its debts, as and when they become due and payable; and

the Financial Statements and Notes satisfy the requirements of the Australian Charities and Not-for-profits Commission Act 2012.

Signed in accordance with subsection 60.15(2) of the Australian Charities and Not-for-profit Commission Regulation 2013.

Responsible Person ...... Responsible Person ...... Julian Knowles Kristy Wilson

Dated 28/04/2021

15 Rosenfeld Kant & Co Chartered Accountants ABN: 74 057 092 046

Level 24, Tower 2 101 Grafton Street Bondi Junction NSW 2022

PO Box 86 Bondi Junction NSW 1355

Phone: +61 2 9375 1200 Fax: +61 2 9389 6695 Music NSW Incorporated www.roskant.com.au

Independent Audit Report to the members of Music NSW Incorporated

Report on the Audit of the Financial Report

Opinion

We have audited the Financial Report of Music NSW Incorporated (the Organisation), which comprises the Statement of Financial position as at 31 December 2020, the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and Notes to the Financial Statements, including a Summary of Significant Accounting Policies, and the Responsible Persons' Declaration.

In our opinion, the accompanying Financial Report of Music NSW is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of Music NSW's financial position as at 31 December 2020 and of its financial performance for the year ended; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our Audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our Report. We are independent of Music NSW in accordance with the Auditor Independence Requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our Audit of the Financial Report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the Independence Declaration required by the Corporations Act 2001, which has been given to the Committee Members of the Organisation, would be in the same terms if given to the Members as at the time of this Auditor's Report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our Audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Responsibilities of Committee Members for the Financial Report

The Committee Members of the Organisation are responsible for the preparation of the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Committee Members determine is necessary to enable the preparation of the financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the Financial Report, the Committee Members a b a Mc NSW ab c a a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Committee Members either intend to liquidate Music NSW or to cease operations, or have no realistic alternative

16 Music NSW Incorporated

Independent Audit Report to the members of Music NSW Incorporated but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error, and to issue an A R that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the Audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the Audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Music NSW a c.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Committee Members.

Conclude on the appropriateness of the Committee Members use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may ca ca b Mc NSW ab c a a cc. I cc a a aerial ca , a a a a a c aca report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained u a a . H, c a ca Mc NSW ca to continue as a going concern.

Evaluate the overall presentation, structure and content of the Financial Report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Committee Members regarding, among other matters, the planned scope and timing of the Audit and significant audit findings, including any significant deficiencies in internal control that we identify during our Audit.

We also provide the Committee Members with a Statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Committee Members, we determine those matters that were of most significance in the Audit of the Financial Report of the current period and are therefore the key audit matters. We describe these matters in our A R unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Gary Williams FCA, Registered Company Auditor 4019 Partner Rosenfeld Kant and Co Located in Bondi Junction Dated this 28th Day of April 2021 17 Music NSW Incorporated

ABN 50 416 153 997 For the Year Ended 31 December 2020

Detailed Trading Account

2020 2019 $ $

Income Activities Income (740) 8,015 Administration 6,350 5,460 Apra 31,100 10,940 Auspiced Grants 1,200 (17,100) Auspiced Projects Commission - 1,500 Australia Council - 7,000 City Of Sydney Fund 23,000 15,000 Create NSW 405,000 478,500 Interest Income 7,288 9,317 Cashflow Boost 56,880 -

530,078 518,632 Less: Direct Expenses Accounting And Legal 11,618 11,618 Advertising 2,883 14,314 Audit Fees 2,600 2,600 Bank Charges 255 192 Computer Expenses 3,088 13 Conferences And Workshops 21,090 36,929 Depreciation 1,420 3,868 Devolved Funding - 96,580 Domestic Travel 5,633 28,236 Donations - 2,800 Filing Fees 197 195 General Expenses 15,372 3,831 Insurance 8,219 5,923 IT Technical Support 8,563 2,000 Meeting Expenses 1,217 2,770 Office Supplies 1,080 2,601 Project Expenses 16,403 28,308 Rent Expense 26,252 26,585 Telephone 685 665 Wages And Staff Entitlements 359,940 286,591 Website Costs 1,101 759

487,616 557,377 Net Profit / (Loss) 42,462 (38,745)

Music NSW Incorporated

Chair’s Report

2020 was an extraordinary year for all arts organisations in the sector. The arrival of the COVID-19 pandemic forced all organisations to rethink their operation within the constraints of what could be delivered within lockdowns, temporary venue closures, social distancing rules, and heavily restricted movement. For an organisation with many thousands of stakeholders, this required a rapid pivot.

I am pleased to advise that MusicNSW managed to make this shift with speed and with a great deal of effectiveness. We had already been in the process of further developing our digital strategy to increase our reach and so were able to accelerate this work towards offering our usual face to face development activities in online mode. This was enabled by a refocusing of our budget and re-allocation of staff capacity towards online delivery and engagement. I would like to thank and commend all of the staff at MusicNSW on their extraordinary responsiveness to this substantial change to our operating plan. Like most organisations, the pivot to online has a silver lining, in that it has accelerated our digital presence and made our services more accessible than ever before.

Under the leadership of Managing Director Emily Collins, the organisation was also able to involve itself in a range of major advocacy projects for the sector which became urgent in the wake of the pandemic. This included, but as no limied o, he loss of msicians income from he closre of lie performance infrastructure and the closing of borders, as well as the crisis facing music venues in our state who were not able to operate for periods of time and when they could, had to operate at greatly reduced capacity. It is at these moments that the true value of MusicNSW can be seen. It is critical to have a single, trusted source of advice to stakeholders on the needs of the sector in such a tumultuous global event. I know that all stakeholders, from musicians, to venue operators, to government stakeholders have all been appreciative of the work of the organisation during this exceptional and challenging year for the entire music and arts sector.

In 2020 we expanded our reach via the establishment of new regional music officer positions. This was an important initiative, piloted from reserves, which has now secured further funding from our state government stakeholders. MusicNSW has a strong commitment to reach and impact in regional areas of NSW and we look forward to further building capacity and presence across the state, engaging directly with regional communities to achieve greater impact.

On behalf of the board, I would like to thank the staff Managing Director, Emily Collins, for her exceptional leadership, along with Laura Murdoch and Bart Denaro for their excellent work in producing and communication roles. Thanks also to our regional music officers and to the wide range of industry experts who give their time and expertise to build value through our work. Lastly, I would like to thank the MusicNSW board for the time, energy and the intellect they bring to the discussions around the current and future activities of the organisation.

Professor Julian Knowles Chair, MusicNSW

Music NSW Incorporated

Treasurers 2020 AGM Report

The 2020 brought many challenges to the entire music industry across Australia and the globe from a financial and program delivery perspective. The global shutdon diecl impaced MicNSW abili o delie i in-person programs. Early in the pandemic MusicNSW implemented a COVID safe policy and continuity plan. A key part of this was to maintain clear communication with funding bodies and seek pre-approval to adjust program delivery.

Throughout 2020 MusicNSW continued to be managed in a financially prudent manner. Systems are in place with MyAccounts managing day to day bookkeeping and lodgements, Emily Collins managing budgets, payroll, invoicing, and bank payments, and Julian Knowles authorising payments. A budget subcommittee was also formed in late 2020 to review and plan for the allocation of additional funding received.

When the pandemic commenced in March 2020, MusicNSW was in a strong position financially as core funding for the 2020 calendar year had already been received. MusicNSW was able to continue remunerating employees at the same rate, while meeting COVID safe policies. In consultation with Create NSW, some in-person programs were adjusted, which resulted in a decrease in program delivery expenses in some areas such as travel and accommodation.

The second half of 2020 MusicNSW received 4 key revenues:

- Four year funding confirmation - $420K per year (an increase of $65K per year) - Bridge funding for Regional Music Program (RMO) - $50K - Funding for a First Nations Program Manager $70K - A commitment to expand the RMO program - commitment only - $600K

In July 2020 Create NSW confirmed MusicNSW multi-year funding of $420K per year (an increase of $65K per year) for four years. This commitment provides a very stable financial base for the organisation to plan long term program delivery based on the strategic plan, and also to retain our excellent staff.

The original RMO pilot program was funded from MusicNSW reserves, as a strategic decision made by the Board, to re-invest organisational reserves into a regional music program. The bridge funding received in 2020 was both a demonstration of confidence in this decision and the success of RMO pilot program itself.

MusicNSW received an additional commitment of $600K to expand the Regional Music Development Officer program to be rolled out in 2021. This revenue more than doubles MusicNSW program budget for a 12 month period. This commitment of funds necessitated the formation of a budget subcommittee to review resources, staffing, and budget.

Due to this expansion. the Board decided to invest financially in our Managing Director Emily Collins by increasing her salary. It was agreed that an increase in salary will be covered from MusicNSW surplus funds, as an investment in key staff is seen as a long term investment in the organization and the music industry in NSW.

Kristy Wilson Treasurer, MusicNSW