Annual Report 2010
1 Contents 3. Chair’s Report
4. Executive Director’s Report
6. Artistic Director’s Report
8. Corporate Governance
11. 2010 Performance Schedule
12. Key Performance Indicators
13. Financial Statements
41. The Company
42. Collaborators
43. Donors
45. Sponsors
2 Chair’s Report
2010 was a year of ongoing consolidation and recovery for Sydney Dance Company. The company undertook a significant touring program as well as creating and premiering works in Sydney. We undertook a total of 65 performances and embarked upon the early stages of developing an education program. There were commissioned works by Australian and international choreographers as well as two commissioned music scores and two creative development periods.
After a period of significant change in personnel at all levels of the company, 2010 was a year for the new team to settle in and continue rebuilding for future success. In February 2010 Anne Dunn joined the Company as Executive Director taking over from Noel Staunton, while Rafael Bonachela began his second year as Artistic Director of the company.
The Company achieved an operating surplus for the year of $148,549, which was a significant increase on the previous year’s surplus. This was achieved through a mix of changes to the structure of our touring model, self-generated revenue streams and careful cost controls.
In 2010 we said goodbye to longstanding board member Derek Denton who had served as a Company Director for 16 years. His contribution to the Company, particularly though his standing in the Melbourne cultural community, his knowledge, dedication and love of the art form proved to be an invaluable asset across those many years. We also said goodbye to Professor Elizabeth More (4 years service) and David Wenger (2 years service). We welcomed Andrew Messenger and his legal expertise to the Board in April 2010. I would like to thank my fellow board members current and past, for their commitment and leadership throughout 2010. Board strategies for managing change and rebuilding the brand of this longstanding Company have begun to bear fruit and we look forward to continued growth in the coming three year business cycle.
Having now been on the Board since late 2006 and served as Chairman for three years it still gives me great pleasure and pride to watch and be involved in the amazing work of the artistic team and the dancers. Their skill and dedication to their art is an ongoing inspiration and I was immensely proud to be in Venice to watch the Company perform to rapturous applause in a 400 year old theatre. In many ways, 2010 was the year the Sydney Dance Company relaunched on the world stage and that pathway is getting stronger and stronger.
Julian Knights Chair
3 Executive Director’s Report
I joined the Company as Executive Director in February 2010 at an exciting point in the Company’s long history. Rafael Bonachela’s appointment as Artistic Director just one year earlier, was reflected in the breadth of work being commissioned and the number and diversity of touring invitations the Company received for the year. Under his artistic leadership the Company continues to consolidate its position as the leading contemporary dance company in the country with a core ensemble of dancers of the highest calibre.
2010 marked a return to both regional touring within Australia and international touring for the Company. We presented performances in Newcastle, Albury, Wagga Wagga and Griffith as well as capital city touring to Canberra, Melbourne and Brisbane. It was the first opportunity many of these audiences had to engage with the Company under Rafael’s leadership and we were delighted to be able to present the same award winning work we unfold to those regional audiences as well as international audiences. Our regional touring was supported by Playing Australia – the Federal Government’s performing arts regional touring program.
A particular highlight for the year was our performances at the Venice Biennale di Danza where we presented two programs of work before travelling on to Shanghai to perform at World Expo as part of the Australia/China Cultural friendship gala. This international tour was supported by our sponsor QANTAS and a group of leading private donors – some of whom travelled with us to see the Company perform in the beautiful 400 year old Malibran theatre in Venice.
A number of initiatives were developed throughout the year in order to contribute both towards audience development and/or financial stability. One such initiative was the introduction of a ‘Sneak Preview’ performance program as part of our regional touring model. This program was delivered in theatre and designed to give students a ‘behind the scenes’ look at a day in the life of a professional dancer, as well as exposing them to the completed choreographic touring work.
The artistic team and the dancers of Sydney Dance Company invested time and energy in fostering dance talent with a range of workshops and master classes for both school students and dancers in vocational training and we have strengthened our relationships with training institutions such as WAAPA and UNSW by offering secondment placements to senior dance students.
Our principal sponsor FOXTEL worked closely with us throughout the year and with them we were able to deliver the inaugural FOXTEL Sydney Dance Company apprenticeship. This was a three month program of full employment for a young dancer. Chosen from over 350 applicants Alana Sargent travelled from New Zealand for the audition process and worked with the Company over the development and performance of the world premiere of Emanuel Gat’s Satisfying Musical Moments. Thanks must go to FOXTEL for their generous support of this important program and their ongoing support of Sydney Dance Company which presents itself in many ways.
Our school holiday workshops program continued to be very popular with all classes selling
4 out. Now in their tenth year they have seen around 10,000 young people have the opportunity to participate in an intensive program that is both fun and enriching. Our dance classes continue to attract large attendances and are an important mechanism for allowing adults of all ages to engage with dance by providing a participatory avenue. From hip hop to seniors tap and everything in between, our dance classes attracted over 67 000 attendees in 2010.
Our corporate dance classes continue to grow. This area of our business is a great example of the ways in which businesses are reaching out to the Arts for inspiration and new approaches to their own business environments. A stunning solo performance by Amy Hollingsworth at the Women in Banking and Finance Forum was supported by our platinum sponsor Deutsche Bank and we thank them for that and their ongoing support.
Operationally the Company invested in the install of a new IT system. The changeover process was made significantly easier due the presence of our very own ‘geek in residence’ as part of the Australia Council for the Arts innovative program. Our ‘geek’ has been working with the Company on a number of fronts including up-skilling staff, digital content creation and artistic innovation. This has contributed to a significant increase in people accessing our digital outputs and we still have 9 months of the program to run.
The support we receive from our funders, sponsors and donors allows us to continue to produce contemporary dance of the highest quality and I thank each and every one of them. I particularly thank those individuals and companies who invest in us – knowing they do so because they believe in the Company and have faith in the future of it. We very much appreciate the donations and support that enable us to create, perform and tour.
My personal thanks must go to the Board of Directors who have welcomed me into my new role and worked closely with me through the year. Their guidance and support has been invaluable. I would also like to acknowledge the dedicated work of the Company’s administrative and artistic staff and the dancers. The combined efforts of this remarkable group of individuals results in something unique and special and I look forward to continuing the journey.
Anne Dunn Executive Director
5 Artistic Director’s Report
2010 was an amazing artistic year in which we presented five works, new to the repertoire, including three commissioned world premieres and toured the highly acclaimed we unfold to eight venues across Australia and internationally. Sydney Dance Company’s first European performances in 6 years, at the Biennale di danza in Venice, as well as our appearance at the Australia/China friendship Gala in Shanghai at the invitation of the Department of Foreign Affairs and Trade, represented both a return to the world stage for the Company and a very satisfying step in showing the depth of skill and talent that our dancers possess to the widest possible audiences.
The first Sydney Season for 2010 New Creations 1 (20 March–10 April) marked the beginning of a year of collaboration, exploration and artistic growth. As part of the program, I choreographed 6 Breaths and it was realised for the stage through collaborations with Composer Ezio Bosso, Video Artist Tim Richardson, Costume Designer Josh Goot and Lighting Designer Nick Schlieper, who also lit the other part of the program, Adam Linder’s work Are We That We Are. The beautiful score for 6 Breaths by Ezio Bosso, for piano and six cellos, was a commissioned piece and we were very proud to present its world premiere. The film component that Tim Richardson brought to the project was exquisite in its detail and added a beautiful timeless feel to the work. It was wonderful to be able to work with such a talented group of artists and the commission was for me, a real milestone in my desires to work in a cross-artform way with other creatives. The work was co-commissioned by Mercat de les flors in Barcelona and I am very much looking forward to presenting the piece there as part of our 2011 touring season.
I was very proud to commission Adam Linder to create Are We That We Are as the other half of New Creations 1. Adam had just won the Place Prize for Choreography in London and what was fascinating about Adam was that he was acclaimed in London and Europe as a dancer and now as an emerging choreographer and yet he was largely unknown and unseen in Australia. This commission provided him with the platform to create and perform in his first major commission in the country of his birth. The work itself is breathtaking and confrontational and his view of the potential for dance to change lives is fascinating and his enthusiasm for the power of the medium is contagious. Both Adam’s choreography and performance demonstrates that the body is a far more open place for reading emotions and behaviour and that dance can touch people in ways that are more poignant than words.
New Creations 2 (8–23 October) was the second Sydney season for the year and once again was a mixed program featuring a new commission by a guest choreographer – this time renowned Israeli born, France-based Emanuel Gat. The world premiere of Satisfying Musical Moments represented the first time that Emanuel Gat had been commissioned by an Australian Company and this season was also the first time any of his work had been seen in Sydney. His is a unique voice which has seen him become an in-demand artist across the world. Gat has a cohesive, intellectual approach to his work which saw him sit across all of the creative elements of the work including music, lights and costume concept. It was a work that challenged audiences and dancers and ably demonstrated the skill and capacity of the ensemble. 6 Opening the evening were two of my own short pieces – Irony of Fate, a solo created for Amy Hollingsworth and performed by her with accompaniment by Ruth Palmer on violin, followed by Soledad, a duo created for a female and a male dancer, providing the contrast in programming that aimed to highlight the company’s dexterity. Irony of Fate was distinguished by the fact that Amy Hollingsworth gave her farewell performance at the end of this season to take up her full time role as Dance Director of the Company. Both works had been acclaimed internationally on a number of levels at the time of their original creation in the UK, with choreographic awards and dance awards to the artists they were created for such as Amy Hollingsworth, who has twice won the London Critics Prize as Female Dancer of the Year.
In 2010 Sydney Dance Company garnered 10 nominations and 4 awards across the National Dance, Helpmann and Greenroom Awards, including best male dancer at the Helpmanns for Richard Cilli and Best Female dance at the Greenroom Awards for Emily Amisano.
Our national touring program for the year ensured we were able to show the Award winning we unfold to audiences across Melbourne, Brisbane, Canberra and regional NSW. It is always such a pleasure to tour Sydney Dance Company within Australia. For the dancers it gives them the opportunity to grow and develop as artists and I am never anything but delighted by the feedback that we receive from making the effort to take our work out to audiences beyond our home town. It is particularly gratifying to be able to work at close contact with students and young dancers on these tours as we deliver workshops and master classes and I am never more aware of how vital our role is in inspiring the search for excellence is than at that time.
I would like to thank the Board and my colleagues for their ongoing support and work, without the commitment of each and all, we would not be as far along in our path of creation and development of this art form that we all love. Last but not least, I would like to thank the dancers for their ongoing commitment, their creativity, their intelligence and their humour – they inspire me daily and I know they inspire audiences wherever we go.
Rafael Bonachela Artistic Director
7 Corporate Governance
This statement outlines the Sydney Dance Company’s corporate governance practices and addresses the Essential Governance Practice Principles published and monitored by the Australia Council for the Arts. These principles are based on the recommendations published by the ASX Corporate Governance Council. As at 31 December 2010 Sydney Dance Company has achieved substantial compliance with the recommendations as outlined below;
1. Lay solid foundations for management and oversight
Over the course of 2010 the Board continued to operate in line with the practises and principles set out in the Governance strategy contained within the business plan. A high level of engagement with company operations was clearly expressed across the 11 board meetings held with attendance rates of 85%. In addition board sub-committees on audit, development and marketing met regularly with senior management in order to assist in the discharge of board strategic direction. The board participated in a strategic planning session in October 2009 from which the 2010- 2012 business plan and strategy were drawn.
2. Structure the board to add value
During 2010 there were a number of changes to Board positions. Longstanding Company Director Derek Denton stood down after 16 years. Professor Elizabeth More stood down after 4 years and David Wenger stood down after 2 years. An analysis of the skills makeup of the board by the Chairman, board members and senior management led to the recruitment of 3 new board members (2 of whom only commenced at 1 January 2011). Andrew Messenger joined in mid-2010 and brings legal and philanthropic skills to the board. Greta Thomas joined Jan 2011 and brings philanthropy and strategic marketing skills and Jean Marc- Carriol brings commercial brand development, fundraising and business networks. There is a formal structure of board evaluation carried out on an annual basis between the chair and all board members.
3. Promote ethical and responsible decision making
Sydney Dance Company’s governance model is driven by both our constitution and the code of conduct incorporated within the business plan. The constitution was updated and formally adopted at the 2010 Annual General Meeting following consultation with a leading firm of solicitors. It is the policy of the board to ensure that directors and management behave in an ethical and appropriate manner. This requires that people who occupy these positions are people of integrity. The board has approved and implemented a formal written code of conduct.
8 4. Safeguard integrity in financial reporting
Sydney Dance Company has an active audit committee. The prime responsibility of this committee is to independently verify and safeguard the integrity of the Company’s financial reporting. It does this through:
• Reviewing the annual budget and monthly management accounts and forecasts • Reviewing all financial reports and statements contained in the statutory accounts and recommending acceptance to the board • Evaluating the adequacy of the Company’s internal control system and procedures • Reviewing the audit plan and appropriateness of accounting policies • Ensuring that any recommendations of the external auditors are implemented in a timely and effective manner. • Overseeing and approving programming and touring plans • Approving any capital expenditure over $20 000
The audit committee meets monthly, prior to board meetings, and on an as-needs basis. The committee is comprised by Dean Hawkins (Chair), Andrew Messenger and Julian Knights with the Executive Director and the Finance Manager in attendance. The Board members of the committee have specific financial/accounting experience.
Sydney Dance Company is currently working towards financial sustainability. Our 2010 result contributes towards bettering our accumulated financial position and our business plan is geared towards building reserves. Financial sustainability is a key driver in our business activities and informs all areas of business.
5. Risk Management
Risk analysis and management including financial, health and safety and reputational risks is undertaken by Management and reported to the relevant subcommittees as part of regular board briefings. A financial risk profiling model was established in 2010 as part of the financial planning process for the 2011-2013 business planning process
6. Encourage enhanced performance
The Board executive meet regularly with the company executive to assess and the refine operations around the enhancing the company’s output in all areas including in PR management of our activities. Enhancing performance is a central tenet of the business plan and the very careful and structured systems of board management via sub committees is designed to do this.
The Company also undertook an audience survey process in late 2010 in order to better integrate the audience experience into our planning and operations.
9 7. Remunerate fairly and responsibly
The audit committee functions as the remuneration committee on an annual and as needed basis with reference to both performance and industry standards. Responsibility for recruitment and remuneration negotiations with administrative staff is delegated to the Executive Director and reported on within the audit papers. Negotiation for dancers levels of remuneration happen between the union and management. 2010 was the final year in a three year collective agreement with the dancers and negotiations commenced in mid-2010 for the next three year agreement and these were successfully completed in early 2011.
8. Recognise the legitimate interests of stakeholders
The Board recognises the legitimate interests of the many stakeholders and meet regularly with our funding stakeholders. 2010 saws a significant focus put n clarifying and improving the quality of information provided to the board and our funding stakeholders.
For our audiences we introduced a ticketing package to enable pre purchase of tickets to reward loyalty and refined our data records to ensure better CRM of our patron base. We also significantly upgraded the level of output through social media outlets allowing a greater and more up to date flow of information for our dance class and performance patrons. Changes to our sponsor servicing models have also been implemented to ensure a greater transparency around outcomes and company position
The Board believes that the Directors and management both recognise the legitimate interests of stakeholders and strive to service those interests.
Julian Knights Chairman
10 Performance Schedule 2010
20 March – 10 April New Creations 1: Sydney Theatre (18 Performances) 6 Breaths & Are We That We Are
5–8 May we unfold Playhouse, Canberra, ACT (5 performances)
11–12 May we unfold Albury, NSW (2 performances)
14–15 May we unfold Wagga Wagga, NSW (2 performances)
18–19 May we unfold Griffith, NSW (2 performances)
3–5 June we unfold Teatro Malibran (3 performances) 6 Breaths Venice, Italy Are We That We Are
8 June we unfold Shanghai World Expo (1 performance) China
23–24 July we unfold Newcastle, NSW (3 performances)
8–23 October New Creations 2: Sydney Theatre (15 performances) Irony of Fate Soledad Satisfying Musical Moments
9–13 November we unfold The Arts Centre (6 performances) Melbourne, Vic
18–27 November we unfold QPAC (8 performances) Brisbane, QLD
11 Key Performance Indicators Number of Performances 2010 2009 2008 Sydney 33 32 59 Canberra 5 5 4 Melbourne 6 5 4 Brisbane 8 9 10 Adelaide - 5 - New South Wales Regional 9 3 - International 4 3 - Total 65 62 77 Paid Audience 2010 2009 2008 Sydney 9 002 12 378 12 079 Canberra 2 717 1 816 1 733 Melbourne 2 388 3 474 2 786 Brisbane 2 651 2 856 2 221 Adelaide - 1 905 - New South Wales Regional 2 737 961 - Christchurch 1 076 - - Venice 2 058 - - Shanghai 900 - - Total Paid Audiences 22 453 24 466 18 819 Total Audiences 29 826 30 951 27 535 Financial Results 2010 2009 2008 Income $6,823,661 $6,539,507 $6,225,172 Expenses $6,675,112 $6,508,330 $6,923,685 Results $148,549 $31,177 ($69,8513)
2010 2009 2008 % of performance weeks undertaken Internationally 13% 8% 0% Number of Seasons presented in Sydney 2 3** 3 Number of new commissions 3 5** 5* Number of different works in repertoire for the year 6 4 3
Dance Studio Participation 2010 2009 2008 2007 2006 Dance Class attendees 67 044 68 452+ 70 903+ 67 477 60 528 School Holidays Workshops 966 916 945
* 2008 included two short emerging choreographic commissions (unticketed) under the Harold Mitchell Foundation supported Overture Series ** 2009 includes three short works by emerging choreographers as part of New Breed, Sydney Opera House Spring Dance Festival + Please note 2008 & 2009 numbers showed significant spike above 10 year averages due largely to the popularity of the TV series So You Think You Can Dance
12 Annual Financial Report for Sydney Dance Company
31 December 2010
13 Directors’ Report
Your directors submit their report for the year ended 31 December 2010.
Directors The names and details of the Company’s directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.
Julian P Knights David Wenger (Resigned: 27 August 2010) Naseema Sparks Anthony N Jones Dean Hawkins Prof. Derek A Denton (Resigned: 22 March 2010) Naseema Sparks Elizabeth A More (Resigned: 30 November 2010) Dean Hawkins Darcey Bussell CBE Andrew Messenger (Appointed: 27 August 2010)
Qualifications, Experience and Special Responsibilities
Julian P Knights BCommLLB HDip Co Law (Appointed Chairman 12 May 2008) Managing Partner, Ironbridge Capital Pty Limited. Solicitor in New South Wales Appointed to the Board in October 2006 Member of the Audit Committee Expertise: Financial, fundraising, management
David Wenger B.Com, B.Laws Partner – Allens Arthur Robinson Solicitor in New South Wales and Western Australia Appointed to the Board in July 2009 - resigned 27 August 2010 Member of the Audit Committee Expertise: Legal, governance, corporate contacts
Naseema Sparks B.Pharm, MBA (Melbourne) Director – Blackmores Ltd, Mitchell Communication Group Ltd, Osteoporosis Australia, Chartis Australia Insurance Limited, PMP Limited Appointed to the Board in July 2009 Expertise: Marketing, fundraising, governance, corporate contacts
Anthony N Jones BEc. Managing Director - Jones Donald Strategy Partners Pty Ltd Appointed to the Board in 1997 Deputy Chairman from April 2004 Expertise: Strategic, marketing, fundraising, sponsorship
14 Qualifications, Experience and Special Responsibilities (cont)
Prof. Derek A Denton A.C., M.B., B.S., F.A.A., F.R.A.C.P. Founding Director - Howard Florey Institute of Experimental Physiology and Medicine, University of Melbourne; Fellow, Royal Society (London); Foreign Associate US National Academy of Sci- ences; Honorary Foreign Member, American Academy of Arts & Sciences; Foreign Medical Member Royal Swedish Academy of Sciences; and Foreign Associate, Academy of Sciences of the Institute of France. Appointed to the Board in 1994 - resigned 22 March 2010. Expertise : National and international contacts including arts, civil service and business organisations and foundations, fund raising, corporate history of SDC.
Elizabeth A More AM BA (UNSW), Grad Dip Mgt (CQLD), M Comm Law (Deakin) PhD (UNSW) Professor of Management and Academic Director of Macquarie City Campus, Macquarie University Appointed to the Board in October 2006 - resigned 30 November 2010 Expertise: Strategic and management, corporate contacts, knowledge and experience of dance as a former professional and current chair of AUSDANCE NSW.
Dean Hawkins B.Com ACA (Appointed Chairman of the Audit Committee from August 2009) Chairman of Skins Consolidated Pty Ltd Director – Ten Network Holdings Limited, Leighton Contractors Pty Limited Appointed to the Board in March 2009 Expertise: Finance, corporate contacts, governance, management, media.
Darcey Bussell CBE Former Prima Ballerina of the Royal Ballet in London, where she enjoyed a career as one of the world’s most renowned and celebrated ballet stars. Ms Bussell has retired from her performing career and re-located to Australia with her family. Appointed to the Board in July 2008. Expertise: Knowledge of dancer environment, fundraising.
Andrew Messenger B.Com (Melbourne), B.Laws (Melbourne) Partner – Corrs Chambers Westgarth Appointed to the board in August 2010 Expertise; Legal, governance, corporate contacts Corporate Information
Sydney Dance Company is a company limited by guarantee that is incorporated and domiciled in Australia.
The registered office and principal place of business of the Company is: The Wharf, Pier 4, Hickson Road, Walsh Bay, NSW 2000.
The Company employed 24 employees at 31 December 2010 (2009: 24 employees).
Principal Activities
The principal activities during the year of the entity were as follows: - Production and presentation of live dance in Australia and overseas. - Promotion and the study of dance - Commercial activities to provide financial support for the above including daily dance classes, school holiday workshops and dance studio hire.
There have been no significant changes in the nature of these activities during the year.
15 Operating and Financial Review
Operating Results for the Year
The profit after tax of the Company for the year ended 31 December 2010 was $148,549 (2009: $31,177).
Likely Developments and Expected Results
Looking forward into 2011, Sydney Dance Company is positioning itself to address the requirements of long term sustainability through considered programming, audience development and careful financial manage- ment.
Key objectives for the company’s next three year business cycle are in each of these three areas. And can be articulated as the following:- 1) Artistic Innovation 2) Audience Growth 3) Financial Rigour
In order to achieve these objectives the company has upgraded our IT systems to allow for better CRM, devised a comprehensive digital marketing strategy, introduced specific schools marketing strategies, reviewed our programming mix and changed the touring mix of self- presented and fee-based presentations. Within each year of the next business cycle there will be at least one full length new work by Rafael Bonachela.
There will be ongoing financial and risk management applied to all revenue streams. The strategic programming of commercial dance classes to maximise income and promote cross pollination of audiences will be further developed and we will investigate additional mechanisms for maximising the income generating potential of our studio spaces. Our nongovernment sector funding will be increased via corporate sponsorship and private philanthropy aided by the increased capacity of our CRM communications.
As part of this growth and stability we are focussed on internal staffing stability. We have secured the services of the current Artistic Director for a further three year contract and staff changes to key management and administrative roles are now in place and functioning well.
Programme
Rafael Bonachela continues to commission and choreograph new contemporary dance pieces as Artistic Director of Sydney Dance Company. Plans for 2011 include a new Bonachela piece, LANDforms, as part of a double bill including a new work by guest choreographer, Jacopo Godani, to premiere at the Sydney Theatre on March 30 and to be marketed under the banner of Shared Frequencies. Both new pieces will be accompanied by new scores as composed by European composers, Ezio Bosso and 48Nord. This first season will be followed by a tour to Canberra. The Company will then travel to Wolfsburg, Germany to perform at the Movimentos Dance Festival. A domestic tour is then planned taking in Perth, Bunbury, Albany and Darwin to perform We Unfold. The Company will then spend time rehearsing The Land of Yes And The Land Of No. The production will form part of the 2011 Brisbane Festival in September to be opened in Sydney on 19th of October. This production, choreographed by Rafael Bonachela, was originally made for Bonachela Dance Company and met with rave reviews when it premiered in London in 2008. SDC again heads overseas for an international tour in November that will take in a season at the Joyce Theatre in New York , Snape Maltings and London in the UK and Barcelona for 4 performances in the Mercat de les Flors Theatre.
The measurement of our success in achieving our key objectives are around audience growth and increases in all nongovernment revenue streams.
16 Likely Developments and Expected Results (cont.)
Commercial activities Dance Class revenue is forecast to remain constant across 2011. Dance classes at the Hickson Road studios continue to attract over 1,400 participants a week with further growth limited by the studio’s capacity.
Studio hire continues to generate a healthy turnover. School workshops sell out each time they are held.
SDC continues to sub-lease the Sydney Dance Café which contributes a small but regular percentage of SDC annual income.
Development SDC plans to increase its current level of corporate sponsorship. A number of fundraising functions and programmes targeting individual donors are planned.
Grant Income Grant income remains according to the SDC / Federal Government / NSW Government Tripartite.
Director’s Meetings The number of meetings of directors (including meetings of committees of directors) held during the year and the number of meetings attended by each director were as follows:
Directors’ meetings Audit Committee meetings attended eligible to attended eligible to Number of meetings: Julian P Knights 8 9 8 9 David Wenger (Resigned: 27 Aug 2010) 6 7 6 7 Naseema Sparks 7 9 - - Anthony N Jones 9 9 - - Prof Derek A Denton (Resigned: 22 Mar 2010) 2 2 - - Elizabeth A More (Resigned: 30 Nov 2010) 7 8 - - Dean Hawkins 6 9 6 9 Darcey Bussell CBE 7 9 - - Andrew Messenger 3 3 2 2 (Appointed: 27 Aug 2010)
Members’ Guarantee The Company is a public company limited by guarantee that is incorporated and domiciled in Australia. If the Company is wound up, it’s Constitution states that each member is required to contribute a maximum of $100 each towards meeting any outstanding obligation of the Company, a total of $1,400 (a total of $1,700 as at 31 December 2009).
At 31 December 2010 the number of members was 14 (2009: 17 members).
Auditor Independence The directors received an independence declaration from the auditor, Ernst &Young. A copy has been included on page 18 of the report.
Signed in accordance with a resolution of the directors.
Julian P Knights Chairman
Sydney, 28 March 2011
17 Auditor’s Independence Declaration to the Directors of Sydney Dance Company
In relation to our audit of the financial report of Sydney Dance Company for the financial year ended 31 December 2010, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.
Ernst & Young
Lisa Nijssen-Smith Partner 28 March 2011
18 Statement of Comprehensive Income For the year ended 31 December 2010
Notes 2010 2009 $ $
Revenue 5(a) 6,807,656 6,497,554
Other income 5(b) 16,005 41,953
Performance and Production Expenses (2,826,471) (2,847,911) Commercial Activity Related Cost (805,241) (761,863) Philanthropy expenses (147,458) (119,643) Sponsorship and fundraising expenses (29,886) (43,707) Administration and Marketing Expenses including staff costs (2,866,056) (2,735,206)
Profit before income tax 148,549 31,177
Income tax expense – –
Net profit for the year 148,549 31,177
Other comprehensive income – –
Total comprehensive income for the year 148,549 31,177
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
19 Statement of Financial Position For the year ended 31 December 2010
Notes 2010 2009 $ $
Assets Current Assets Cash and cash equivalents 6 222,971 227,964 Trade and other receivables 7 159,963 135,099 Total Current Assets 382,934 363,063
Non-current Assets Property, plant and equipment 8 34,888 20,000 Total Non-current Assets 34,888 20,000
Total Assets 417,822 383,063
Liabilities Current Liabilities Trade and other payables 9 480,160 453,539 Provisions 10 84,571 128,668 Goverments grants 11 503,748 613,268
Total Current Liabilities 1,068,479 1,195,475
Non-current Liabilities Provisions 10 43,784 30,578
Total Non-current Liabilities 43,784 30,578
Total Liabilities 1,112,263 1,226,053
Net Liabilities (694,441) (842,990)
Equity Contributed equity 12 524 524 Accumulated losses (694,965) (843,514)
Total Deficiency (694,441) (842,990)
The above statement of financial postition should be read in conjunction with the accompanying notes.
20 Statement of Changes in Equity For the year ended 31 December 2010
Accumulated Contributed Total Equity Equity Losses $ $ $
At 1 January 2009 524 (874,691) (874,691)
Profit for the year – 31,177 31,177 Other comprehensive income – – – Total comprehensive income for the year – 31,177 31,177
At 31 December 2009 524 (843,514) (842,990)
Profit for the year – 148,549 148,549 Other comprehensive income – – – Total comprehensive income for the year – 148,549 148,549
At 31 December 2010 524 (694,965) (694,441)
The above statement of changes in equity should be read in conjunction with the accompanying notes.
21 Statement of Cash Flows For the year ended 31 December 2010
Notes 2010 2009 $ $
Cash flows from operating activities Receipts from customers 3,908,487 4,104,009 Payments to suppliers and employees (6,676,827) (6,685,803) Receipt of government grants 2,789,573 2,384,339 Interest received 2,561 4,025 Net cash flows from /(used in) operating activities 13 23,794 (193,430)
Cash flows from investing activities Purchase of property, plant and equipment (28,793) (10,144) Net cash flows used in investing activities (28,793) (10,144)
Cash flows from financing activities – – Net cash flows from financing activities – –
Net decrease in cash and cash equivalents (4,993) (203,574) Cash and cash equivalents at beginning of year 227,964 431,538 Cash and cash equivalents at end of year 6 222,971 227,964
The above statement of cash flows should be read in conjunction with the accompanying notes.
22 Notes to the Financial Statements For the year ended 31 December 2010
1. Corporate Information
The financial report of Sydney Dance Company (the Company) for the year ended 31 December 2010 was authorised for issue in accordance with a resolution of the directors on 28 March 2011.
Sydney Dance Company is a company limited by guarantee and as such has no authorised capital and is domiciled in Australia.
The Company exists to present live dance in Australia and overseas and to promote the study of dance. The nature of the operations and principal activities of the Company are further described in the directors’ report.
2. Summary of Significant Accounting Policies
(a) Basis of preparation The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis.
The financial report is presented in Australian dollars ($).
(b) Going concern The financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business.
The Company incurred an operating surplus of $148,549 (2009: surplus of $31,177) during the year ended 31 December 2010, and as at that date, the Company’s total liabilities exceeded total assets by $694,441 (2009: $842,990).
The Company is set up as a not-for-profit organisation. It is dependent on grants from multiple tiers of government, sponsorship, private philanthropy, box office sales and other commercially self-gen- erated income to provide the funding necessary to meet its objectives. The annual surplus or deficit for each year is affected by all of these elements.
Each year the Directors and management prepare a schedule of performances and a budget for the Company based on assumptions as to the level of income from the various streams. A budget has been prepared for the year ending 31 December 2011 which projects a surplus.
The directors believe that Sydney Dance Company will continue to receive the Major Performing Arts Board (MPAB) and Arts NSW funding as per the Tripartite Agreement - Deed of Variation as signed on 20/12/2010, and combined with the budgeted performance and education related income, the directors believe that Sydney Dance Company will be able to pay its debts as and when they fall due and can continue on a going concern basis.
23 2. Summary of Significant Accounting Policies (cont.)
(c) New accounting standards and interpretations The accounting policies adopted are consistent with those of the previous financial year.
Certain Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Company for the annual reporting year ended 31 December 2010. The directors have not adopted any of these new or amended standards or interpretations. The directors have not yet fully assessed the impact of these new or amended standards (to the extent relevant to the Company) and interpretations.
(d) Foreign currency translation
(i) Functional and presentation currency Both the functional and presentation currencies of Sydney Dance Company are in Australian dollars ($).
(ii) Transactions and balances Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange rates ruling at the date of the transaction.
(e) Cash and cash equivalents Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.
(f) Trade and other receivables Trade receivables, which generally have 30-90 day terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for impairment.
Collectibility of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible are written off when identified. An impairment provision is recognised when there is objective evidence that the Company will not be able to collect the receivable.
(g) Property, plant and equipment Property, plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of replacing the parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement only if it is eligible for capitalisation. All other repairs and maintenance are recognised in profit or loss as incurred.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Leasehold improvements - over 10 years Plant and equipment - over 2 to 5 years Furniture and fittings - over 5 years Computer equipment - over 3 years
24 (g) Property, plant and equipment (cont)
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.
Derecognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the statement of comprehensive income.
Impairment of non-financial assets Non-financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Sydney Dance Company conducts an annual internal review of asset values, which is used as a source of information to assess for any indicators of impairment. External factors, such as changes in expected future processes, technology and economic conditions, are also monitored to assess for indicators of impairment. If any indication of impairment exists, an estimate of the asset’s recoverable amount is calculated.
(h) Leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at inception date, whether fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement.
Company as a lessee Operating lease payments are recognised as an operating expense in the statement of comprehensive income on a straight line basis over the lease term. Operating lease incentives are recognised as a liability when received and subsequently reduced by allocating lease payments between rental expense and reduction of the liability.
(i) Trade and other payables Trade and other payables are carried at amortised cost and due to their short-term nature they are not discounted. They represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.
(j) Provisions Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflowof resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the statement of financial position date. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the time value of money and the risks specific to the liability. The increase in the provision resulting from the passage of time is recognised in finance costs.
25 2. Summary of Significant Accounting Policies (cont.)
(k) Employee leave benefits
(i) Wages, salaries, leave in lieu and annual leave Liabilities for wages and salaries, including non-monetary benefits, leave in lieu and annual leave expected to be settled within 12 months of the reporting date are recognised in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
(ii) Long service leave The liability for long service leave is recognised and measured as expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service.
(l) Contributed equity The membership fees were contributed by the initial members upon establishment of the company. In accordance with the Constitution, members are not entitled to any reimbursement or return of initial membership fees upon ceasing to be a member.
(m) Revenue recognition Revenue is recognised and measured at the fair value of the consideration received or receivable to the extent it is probable that the economic benefits will flowto the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:
Box office Box office revenue is recognised in the year in which the performance is given.
Sponsorship and Government Grants Sponsorship and grants are brought to account over the year to which the sponsorship agreement or grant relates. If the grant or sponsorship is for a specific project then it is brought to account at the time the project occurs.
Any funding not spent on the planned activities agreed by both parties, at the start of the calendar year, is required to be repaid.
Sponsorship in kind Sponsorship in kind is brought to account as revenue in the year to which the equal and corresponding expense relates. Consequently, the revenue and expenses are recognised in the same accounting year. Where a depreciable asset is received as sponsorship in kind, revenue is recognised in the period in which the asset is received, and that asset is depreciated over its useful life.
Commercial Dance Classes Education programs are recognised as revenue in the period in which the money is received.
Interest Received Revenue is recognised as interest accrues using the effective interest method.
(n) Income tax The Company has not provided for income tax as it is exempted from income tax by virtue of section 50-5 of the Income Tax Assessment Act, 1997.
26 (o) Other taxes Revenues, expenses and assets are recognised net of the amount of GST except: • when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and • receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.
Cash flows are included in the statement of cash flows 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 part of operating cash flows.
(p) Government grants Government grants are recognised when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with.
When the grant relates to an expense item, it is recognised as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate.
Any funding not spent on the planned activities agreed by both parties, at the start of the calendar year, is required to be repaid. 3. Financial Risk Management Objectives and Policies
The Company’s principal financial instruments comprise receivables, payables and cash.
The main purpose of these financial instruments is to raise finance for the Company’s operations. The Company has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.
The Company manages its exposure to key financial risks, including interest rate risk and credit risk in accordance with the Company’s financial risk management policy. The objective of the policy is to support the delivery of the Company’s financial targets whilst protecting future financial security.
Primary responsibility for identification and control of financial risks rests with the Finance Manager and Audit Committee under the authority of the Board. The Board reviews and agrees policies for managing each of the risks identified below:
Risk Exposures and Responses
(a) Interest rate risk The Company’s exposure to market interest rates relates primarily to the Company’s cash. The Company does not manage interest rate risk as the impact of interest rate movement is insignificant.
At balance date, the Company had the following financial assets exposed to Australian variable interest rate risk that are not designated in cash flow hedges: 2010 2009 $ $ Financial Assets Cash and cash equivalents 222,971 227,964
222,971 227,964
27 3. Financial Risk Management Objectives and Policies (cont)
Risk Exposures and Responses (cont)
The following sensitivity analysis is based on the interest rate risk exposures in existence at the statement of financial position date:
At 31 December 2010, if interest rates had moved, as illustrated in the table below, with all other variables held constant, profit would have been affected as follows: Higher/(Lower) 2010 2009 $ $ Profit and equity movement +1% (100 basis points) 2,230 2,280 - .5% (50 basis points) (1,115) (1,140)
Financial assets consist of cash of $222,971 which matures in less than 3 months with an interest rate of 0.35% (2009: $227,964, interest rate 4.1%).
(b) Foreign currency risk The Company has transactional currency exposures. Such exposure arises from purchases by the Company in currencies other than the functional currency relating to payment of salaries to international guest choreographers.
As at year end there were no foreign receivables and payables, therefore the company’s statement of financial position is not affected by movements in the foreign currencies and therefore sensitivity analysis is not required.
Approximately 1% of costs are denominated in currencies other than the functional currency only.
(c) Credit risk Credit risk arises from the financial assets of the Company, which comprise cash and cash equivalents and trade and other receivables. The Company’s exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is addressed in each applicable note.
The Company does not hold any credit derivatives to offset its credit exposure.
The Company trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it the Company’s policy to securitise its trade and other receivables.
In addition, receivable balances are monitored on an ongoing basis with the result that the Company’s exposure to impairment of debts is not significant.
There are no significant concentrations of credit risk within the Company and financial instruments are spread amongst a number of financial institutions to minimise the risk of default of counterparties.
28 3. Financial Risk Management Objectives and Policies (cont)
Risk Exposures and Responses (cont)
(d) Liquidity risk Liquidity risk arises from the financial liabilities of the company, and its ability to meet obligations to repay its financial liabilities as and when they fall due.
The Company’s objective is to maintain a balance between continuity of government funding and sponsorships.
4. Significant Accounting Judgements, Estimates and Assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources.
Management has identified the following critical accounting policies for which significant judgements, estimates and assumptions are made. Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future years.
Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial statements. 4. Significant Accounting Judgements, Estimates and Assumptions (Cont)
(i) Significant accounting judgements Impairment of non-financial assets The Company assesses impairment of all assets at each reporting date by evaluating conditions specific to the Company and to the particular asset that may lead to impairment. These include technology and economic environments and future expectations. If an impairment trigger exists the recoverable amount of the asset is determined. Management do not consider that the triggers for impairment testing have been met and as such these assets have not been tested for impairment in this financial year.
(ii) Significant accounting estimates and assumptions Long service leave provision The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at balance date. In determining the present value of the liability, attrition rates and pay increases through promotion and inflation have been taken into account.
Estimation of useful lives of assets The estimation of the useful lives of assets has been based on historical experience as well as manufacturers’ warranties (for plant and equipment). In addition, the condition of the assets is assessed at least once per year and considered against the remaining useful life. Adjustments to useful lives are made when considered necessary.
Depreciation charges are included in note 5(d).
29 5. Revenue and Expenses 2010 2009 $ $ (a) Revenue Box Office, Fees and other Performance related income 915,140 932,355 Sponsorship - Cash 101,357 164,691 Sponsorship - In Kind 1,064,201 854,287 Fundraising 306,064 347,069 Commercial Income 1,521,801 1,452,117 Government grants 2,899,093 2,747,035 Total Revenue 6,807,656 6,497,554
(b) Other Income Interest received/receivable 2,561 4,025 Other income 13,444 37,928 Total Other Income 16,005 41,953
(c) Salaries and employee benefits expenses included in the statement of comprehensive income Wages and salaries 3,109,306 3,245,433 Workers’ compensation costs 143,082 119,309 Long service leave provision 23,155 19,178 Total Employee Benefits Expense 3,275,543 3,383,920
(d) Depreciation expense included in the statement of comprehensive income Depreciation of non-current assets Plant and equipment 2,476 11,150 Office equipment 10,496 7,860 Furniture and fittings 927 – Total depreciation expense 13,899 19,010
(e) Other expenses included in the statement of comprehensive income Impairment of debtors 16,785 4,723 Total Other Expenses 16,785 4,723
(f) Government Grant income included in the statement of comprehensive income Australia Council Grants: - Australia Council general 2,320,668 2,272,932 - Australia Council specific ‘Geek in Residence’ grant 12,500 – - Australia Council philanthropy – 29,167 NSW Government MPA Grant 257,852 252,548 NSW Government Theatre Subsidy Grant 79,100 – Playing Australia Grant 228,973 192,388 Total Government Grants 2,899,093 2,747,035
Various government grants relating to market and infrastructure development have been received during the year. There are no unfulfilled conditions or contingencies attaching to these grants.
30 6. Cash and Cash Equivalents 2010 2009 $ $
Cash at bank and in hand 222,971 227,964 222,971 227,964
Cash at bank earns interest at floating rates based on daily bank deposit rates. The carrying amounts of cash and cash equivalents represent fair value.
Reconciliation to statement of cash flows For the purposes of the statement of cash flows, cash and cash equivalents comprise the following:
Cash at bank and in hand 222,971 227,964 222,971 227,964 7. Trade and Other Equivalents
Trade receivables 49,447 52,805 Allowance for impairment loss (a) (8,500) – 40,947 52,805
Sundry debtors 51,768 10,466 Other receivables 67,248 71,828 Carrying amount of trade and other receivables 159,963 135,099
(a) Allowance for impairment loss Trade receivables are non-interest bearing and are generally on 30-90 day terms. An allowance for impairment loss is recognised when there is objective evidence that a trade receivable is impaired.
2010 2009 $ $ Movements in the provision for impairment loss were as follows:
At 1 January – 2,370 Charge for the year 16,785 4,723 Provision utilised (8,285) (7,093) At 31 December 8,500 –
At 31 December, the analysis of trade receivables that were past due but not impaired is as follows: Past due but not impaired: < 30 days 22,489 19,444 30 - 60 days 11,610 17,706 60 - 90 days 6,774 613 >90 days 38 14,969 Total 40,911 52,733
Other balances within trade and other receivables do not contain impaired assets and are not past due. It is expected that these other balances will be received when due.
31 7. Trade and Other Equivalents (cont)
(b) Fair value, credit risk and interest rate risk Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value.
The maximum exposure to credit risk is the fair value of receivables. Collateral is not held as security, nor is it the Company’s policy to transfer (on-sell) receivables to special purpose entities.
Detail regarding the credit risk and effective interest rate of current receivables is disclosed in Note 3.
Detail regarding interest rate risk exposure is disclosed in Note 3.
8. Property, Plant and Equipment 2010 2009 $ $ Leasehold improvements At cost 22,259 22,259 Accumulated depreciation (22,259) (22,259) Net Carrying Amount – –
Plant and equipment At cost 160,663 155,432 Accumulated depreciation (152,947) (150,471) Net Carrying Amount 7,716 4,961
Office equipment At cost 187,646 167,459 Accumulated depreciation (163,352) (152,856) Net Carrying Amount 24,294 14,603
Furniture and fittings At cost 16,579 13,216 Accumulated depreciation (13,701) (12,780) Net Carrying Amount 2,878 436
Total property, plant and equipment At cost 387,147 358,366 Accumulated depreciation (352,259) (338,366) Net Carrying Amount 34,888 20,000
32 8. Property, Plant and Equipment (cont)
(a) Reconciliation of carrying amounts at the beginning and end of the year Leasehold improvements Balance at the beginning of the year At cost 70,053 70,053 Accumulated depreciation (70,053) (70,053) Net Carrying Amount – – Balance at the end of the year - Net carrying amount – –
Plant and equipment Balance at the beginning of the year At cost 365,339 365,339 Accumulated depreciation (360,378) (349,228) Net Carrying Amount 4,961 16,111 Additions 5,231 – Depreciation charge for the year (2,476) (11,150) Balance at the end of the year - Net carrying amount 7,716 4,961
Office equipment Balance at the beginning of the year At cost 385,647 375,503 Accumulated depreciation (371,044) (363,184) Net Carrying Amount 14,603 12,319 Additions 20,187 10,144 Depreciation charge for the year (10,496) (7,860) Balance at the end of the year - Net carrying amount 24,294 14,603
Furniture and fittings Balance at the beginning of the year At cost 103,348 103,348 Accumulated depreciation (102,912) (102,912) Net Carrying Amount 436 436 Additions 3,369 – Depreciation charge for the year (927) – Balance at the end of the year - Net carrying amount 2,878 436
Total Property, plant and equipment Balance at the beginning of the year At cost 924,387 914,243 Accumulated depreciation (904,387) (885,377) Net Carrying Amount 20,000 28,866 Additions 28,787 10,144 Depreciation charge for the year (13,899) (19,010) Balance at the end of the year - Net carrying amount 34,888 20,000
During the year, the Company has assessed their assets on hand and made write offs relating to assets no longer in use.
33 9. Trade and Other Payables (Current)
Trade payables 148,399 220,719 Other payables 216,156 169,307 Goods and services tax (net) 55,615 38,554 Other deferred income 49,462 17,500 Time in lieu provision 10,528 7,459 480,160 453,539
(a) Fair value and interest rate risk Due to the short-term nature of these payables, their carrying value is assumed to approximate their fair value. Detail regarding interest rate risk exposure is disclosed in note 3.
(b) Trade payables Trade payables are non-interest bearing and are normally settled on 30 day terms.
(c) Other payables Other payables are non-trade, non-interest bearing payables and have an average term of 6 months.
10. Provisions 2010 2009 $ $ Current Annual leave 42,734 96,780 Long service leave 41,837 31,888 84,571 128,668
Non-Current Long service leave 43,784 30,578 43,784 30,578
Nature and timing of provisions Long service leave Refer to note 2(k)(ii) for the relevant accounting policy and a discussion of the significant estimations and assumptions applied in the measurement of this provision.
34 11. Government Grants
Current Australia Council general grant advances 360,000 360,000 Australia Council specific grant advances 12,500 – Playing Australia grant advances – 253,268 NSW Government general grant advances 131,248 – Total government grants deferred 503,748 613,268
The accounting policies adopted and the description of government grants received by the Company, including the conditions attached to the grants, have been disclosed in note 2(p).
Movement in government grants At 1 January 613,268 975,964 Received during the year 2,789,573 3,384,339 Released to the statement of comprehensive income (2,899,093) (3,747,035) At 31 December 503,748 613,268
12. Contributed Equity
Membership fees 524 524 524 524
The membership fees were contributed by the initial members upon establishment of the company. In accordance with the Constitution, members are not entitled to any reimbursement or return of initial membership fees upon ceasing to be a member.
Capital management This Company is reliant upon funding provided by government funding bodies. The company is not subject to any externally imposed capital requirements.
13. Statement of Cash Flows Reconciliation 2010 2009 $ $ Reconciliation of net profit for the year after tax to net cash flows from operations Net profit for the year 148,549 31,177
Adjustments for: Depreciation 13,899 19,010
Changes in assets and liabilities: (Increase)/Decrease in trade and other receivables (24,864) 304,218 (Increase)/Decrease in inventories – 21,058 (Increase)/Decrease in trade and other payables 26,621 (193,285) (Increase)/Decrease in provisions (30,891) (12,912) (Increase)/Decrease in government grants (109,520) (362,696) Net cash flows from/(used in) operating activities 23,794 (193,430)
35 14. Commitments and Contingencies
(a) Commitments Leasing commitments
Operating lease commitments – Company as lessee The Company has entered into a commercial lease to rent the Company’s premises. There are no restrictions placed upon the lessee by entering into this lease.
Given the State elections to occur in 2011, the main operating lease relating to the principal place of business of the company has not been renewed. Discussions have been held to renew the lease but no contract has been formally signed therefore there is no leasing committment after one year.
Future minimum rentals payable under non-cancellable operating leases as at 31 December 2010 are as follows:
Within one year 94,354 81,567 After one year but not more than five years – 84,014 Total minimum lease payments 94,354 165,581
(b) Employment Contracts The Company has contracts of employment with all of the dancers and certain other staff. These contracts expire on 31 December 2011. The total amount of remuneration due for the year ended 31 December 2011 under the contracts is $915,144 (2010: $686,692).
(c) Contingencies The directors are not aware of any contingent liabilities as at 31 December 2010 (2009: none). 15. Auditors’ Renumeration
The auditor of Sydney Dance Company is Ernst & Young. Ernst & Young has provided pro-bono audit and financial statements preparation services to Sydney Dance Company for the year ending 31 December 2010 (2009: pro-bono) 16. Related Party Disclosures
Transactions with related parties Donations: The following donations were made by directors during the year: 2010 2009 $ $ Dean Hawkins 6,500 3,000 Anthony N Jones 4,860 2,000 Elizabeth A More 300 1,000 David Wenger 1,500 1,000 Naseema Sparks 2,360 – Julian P Knights 50,000 56,700 Prof. Derek A Denton 120 2,500 Andrew Messenger 5,000 –
36 17. Key Management Personnel
(a) Details of Key Management Personnel
Current Directors Julian P Knights Chairman David Wenger Director (non-executive) Naseema Sparks Director (non-executive) Anthony N Jones Deputy Chairman Prof. Derek A Denton Director (non-executive) Elizabeth A More Director (non-executive) Dean Hawkins Audit Committee Chairman Darcey Bussell CBE Director (non-executive) Andrew Messenger Director (non-executive)
Executives Anne Dunn Executive Director Sean Radcliffe Company Secretary
Non-executive Directors of Sydney Dance Company do not receive remuneration for serving on the Board of Directors.
(b) Compensation of Key Management Personnel
Short term 252,210 285,107
(c) Other transactions and balances with Key Management Personnel Donations from directors are disclosed in Note 16. There are no other transactions or balances with key management personnel.
18. Events After the Balance Date
There have been no significant events occurring after the balance date which may affect either the Company’s operations or results of those operations or the Company’s state of affairs.
19. Economic Dependency
The Company is dependent upon funding in the form of government grants, sponsorship, dona- tions and funds received through various fundraising events.
37 20. Information and Declarations to be Furnished Under the Charitable Fundraising Act, 1991
Details of Aggregate Gross Income and Total Expenses of Fundraising Appeals
2010 2009 $ $ Gross proceeds from fundraising appeals Sydney Dance Partners and Functions 306,064 343,734
Less total cost of fundraising Sydney Dance Partners and Functions (126,013) (119,643)
Net Surplus from Fundraising Appeals 180,051 224,091
Accounting Principles and Methods Adopted in Accounts
The accounts have been prepared on the accrual basis, and in accordance with applicable Statements of Accounting Concepts and Accounting Standards. They have also been prepared on the basis of historical cost. The accounting policies have been consistently applied unless otherwise stated.
Statement Showing how funds Recieved were Applied to a Charitable Purpose
(i) Net surplus from fundraising appeals 180,051 224,091
(ii) This was applied to the charitable purpose in the following manner:
Expenditure on sets and props construction and purchase 180,051 224,091
Fundraising Appeals Conducted During the Financial Period
• Mail out to partners • Various fundraising events including dinners and functions
38 20. Information and Declarations to be Furnished Under the Charitable Fundraising Act, 1991 (cont)
Comparisons by Monetary Figures and Percentage
2010 2009 2008 % % % Total cost of fundraising/gross income from fundraising 41 35 9
Net surplus from fundraising/gross income from fundraising 59 65 91
Declaration by Director in Respect of Funding Appeals
I, Julian P Knights, Chairman of the Sydney Dance Company, declare that in my opinion:
(a) the accounts give a true and fair view of all income and expenditure of the Sydney Dance Company with respect to fundraising appeals; and
(b) the statement of financial position gives a true and fair view of the state of affairs with respect to fundraising appeals; and
(c) the provision of the Charitable Fundraising Act 1991 and the regulations under that Act and the conditions attached to the authority have been complied with; and
(d) the internal controls exercised by the Sydney Dance Company are appropriate and effective in accounting for all fundraising income received.
Julian P Knights Chairman
Sydney, 28 March 2011
39 Governance Statment For the year ended 31 December 2010
This statement outlines the main corporate governance practices that were in place throughout the financial year.
(a) Board of Directors The board is responsible for the overall corporate governance of the Company including its corporate planning, establishing goals for management and monitoring achievement of these goals. The board meets on a monthly basis. To assist in the execution of its responsibilities the board has established five standing committees: the Audit Committee, the Touring Committee, the Executive Committee, the Marketing Committee and the Philanthropy and Sponsorship Committee.
It is the policy of the board, when seeking candidates to fill any casual vacancy, to ensure an appropriate representation of relevant skills and experience.
The board currently has eight members. Two newdirectors have been added to the board as from January 2011. The names of board members at the date of this statement are set out in the Director’s Report on page 14 of these financial statements. Established skills represented on the board include finance, legal, marketing, administration and fundraising.
(b) Audit Committee The Committee includes at least three and not more than five Directors.
The responsibilities of the Audit Committee include:
• reviewing the annual budget and monthly management accounts and forecasts; • reviewing all financial reports and statements contained in the statutory accounts and recommending acceptance to the board; • reviewing significant contracts and financial commitments; • evaluating the adequacy of the Company’s internal control system and procedures; • reviewing the audit plan and the appropriateness of accounting policies; and • ensuring that the recommendations of the external auditors are implemented in a timely and effective manner.
The Audit Committee meets monthly prior to board meetings, and on an as-needs basis.
Currently it is comprised of the Audit Committee Chairman, the Chairman of the Board of Directors and one other board member, Executive Director and Finance Manager.
(c) Touring Committee The responsibilities of the Touring Committee include:
• Review of selection of international agents • Review of tours, including risk exposure and contract terms • Review of budgets and time-lines • Evaluation of medium and long term planning; and • Recommendations to the board for approval or timely cancellation of tours.
The committee meets on a monthly basis prior to board meetings when required. It is comprised of two board members with international touring and producing skills and the Executive Director and the InternationalBusiness Manager in attendance.
40 (d) Marketing Committee The Committee includes at least three and not more that five Directors.
The responsibilities of the Marketing Committee include:
• Reviewing the production marketing budgets • Reviewing the marketing plans for each production including advertising schedules • Offering advice regarding the improvement of plans to facilitate the sale of more tickets; and • Reviewing ticket sales once the season has occurred.
The Marketing Committee meets weekly in the weeks running up to a production, and on an as- needs basis.
Currently is comprised of Naseema Sparks, Executive Director and Development Manager.
(e) Executive Committee The responsibilities of the Executive Committee are to respond to issues of an urgent nature which arise between board meetings. The Committee is comprised of the Chairman, Deputy Chairman, the Artistic Director and Executive Director.
(f) Philanthropy and Sponsorship Committee The Committee includes at least three and not more that five Directors.
The responsibilities of the Philanthropy and Sponsorship Committee include:
• Reviewing the philanthropy and sponsorship targets and budgets • Advising the philanthropy and sponsorship team as to increasing philanthropy and sponsorship income • Arranging fundraising lunches and facilitating contact between SDC and various business contacts, and • Reviewing results once the season has occurred.
The Philanthropy and Sponsorship Committee meets fortnightly throughout the year, and on an as- needs basis.
Currently it is comprised of Naseema Sparks, Executive Director and Development Manager..
41 Director’s Declaration
In accordance with a resolution of the directors of Sydney Dance Company, I state that:
In the opinion of the directors:
(a) the financial statements and notes of the Company are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of its financial position as at 31 December 2010 and performance;
(ii) complying with Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001;
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
(c) the provision of the Charitable Fundraising Act (1991) and its regulations and the conditions attached to the Authority to conduct fundraising have been complied with; and
(d) the internal controls exercised by the Company are appropriate and effective in accounting for all income received and applied to its fundraising appeals.
On behalf of the Board
Julian P Knights Chairman
Sydney, 28 March 2011
42 Independent audit report to members of Sydney Dance Company Report on the financial report
We have audited the accompanying financial report of Sydney Dance Company, which comprises the statement of financial position as at 31 December 2010, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.
Directors’ responsibility for the financial report
The directors of the company 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 controls as the directors determine are necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation of the financial report that gives a true and fair view 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 the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Independence
In conducting our audit we have complied with the independence requirements of the Corporations Act 2001. We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the directors’ report.
43 Opinion
In our opinion:
(a) the financial report of Sydney Dance Company is in accordance with theCorporations Act 2001, including:
i giving a true and fair view of the company’s financial position as at 31 December 2010 and of its performance for the year ended on that date; and ii complying with Australian Accounting Standards and the Corporations Regulations 2001
Inherent Uncertainty Regarding Continuation as a Going Concern
Without qualifying our opinion, we draw attention to Note 2(b) “Going Concern”, in the financial report which indicates that there is significant uncertainty as to whether Sydney Dance Company will be able to continue as a going concern, and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the company not continue as a going concern.
Ernst & Young
Lisa Nijssen-Smith Partner Sydney 28 March 2011
44 The Company
Artistic Director 2010 Company of Dancers Dance Studios Rafael Bonachela Natlie Allen Emily Amisano Director, Dance Classes Executive Director Juliette Barton Ramon Doringo Anne Dunn Lachlan Bell Adam Blanch (to Dec 2010) Studio Manager Deputy Executive Director/ Chen Wen Tamara Wheeler Finance Manager Richard Cilli Sean Radcliffe Janessa Dufty Office Assistants Amy Hollingsworth (to Oct 2010) Narelle Howarth Creative Business Manager Kynan Hughes Samara Kennedy Janine Kyle Fiona Jopp (to Dec 2010) Bernhard Knauer Dancer’s Treatment Artistic Administrator Annabel Knight & Care Dominic Chang Alexander Whitely (to July 2010) David Williams (Oct-Nov 2010) Company Doctor Company Manager Charmene Yap Michael Berger Shane Placentino (to June 2010) Technical Director Orthopaedic & Sports Adam Iuston (from Oct 2010) Medical Specialist Dance Director Ken Chrichton Amy Hollingsworth Production Manager (from March 2010) Adam Quinn (to Oct 2010) Physiotherapists Laura Hillenius Marketing Manager Stage Manager Olivia Crowley Matt White (to July 2010) Simon Turner Marko Becejski Georgia Malone (from Sept 2010) Contractors Marketing Coordinator Michelle Forsyth (July–Sept 2010) Head Mechanist John Shedden Development Manager Brendan Day (to Nov 2010) Head Electrician Brent Forstrum-Jones (to May 2010) Board of Directors Philanthropy Manager Renee Kenward Chair Julian Knights Clementine Johnson (to March 2010) Darcey Bussell CBE Janine Collins (from June 2010) Wardrobe Supervisor Prof Derek Denton (to March 2010) Claire Louise Rasmussen Dean Hawkins Philanthropy Coordinator Tony Jones Michelle Forsyth (from Sept 2010) Geek in Residence Andrew Messenger (from Aug 2010) Peter Greig (from Sept 2010) Prof Elizabeth More AM (to Nov 2010) Business Consultant Naseema Sparks Bruce Cutler Special Projects David Wenger (to Aug 2010) Jane McCallum Publicity Elizabeth Greig New Creations 2 Marketing Jacqui Bonner Marketing & Accounts Assistant Management Tanya Crook we unfold Publicity, Melbourne Volunteers Mollisons, Melbourne Publicity Carina Martin Marianne Hobson
45 Collaborators
New Creations 1 New Creations 2 we unfold 6 Breaths Irony of Fate Concept & Direction Rafael Bonachela Choreographer Choreographer Rafael Bonachela Rafael Bonachela Choreographer in collaboration with the dancers Rafael Bonachela Music in collaboration with the dancers Composer Vytautus Barkauskas Partitia Ezio Bosso 6 Breaths Composer Costume Design Ezio Bosso Concept by Robert Cary-Williams ‘Oceans’ Symphony No 1 Rafael Bonachela & Ezio Bosso Lighting Design Video Art Video Art Michael Mannion Daniel Askill Tim Richardson Solo Dancer Costume Design Costume Design Amy Hollingsworth Jordan Askill Josh Goot Violin Lighting Design Lighting Design Ruth Palmer Hugh Taranto Nick Schlieper Soledad Tour Sound Design Sound Design Adam Iuston Adam Iuston Choreographer Rafael Bonachela Are we that we are Music Concept & Choreography Gidon Kremer Milona en re; Adam Linder Oblivion – Homage to Piazzola Chavela Vargas – La Llorona; Dramaturgy/Text Noche de Ronda Sally Schonfeldt Orignial Lighting Design Costume Design Lee Curran Jordan Askill Satisfying Musical Lighting Design Moments Nick Schlieper Choreography, Music & Voice Lights Peter Carroll Emanuel Gat
Sound Design Additional Music Adam Synnott Franz Schubert Des Tages Weihe D 763 Music Keiji Haino, Acid Mothers Costume Coordination Temple, White Ranbow, Claire Louise Rasmussen Tim Hecker Sound Design for New Creations 2 Adam Iuston
46 Partners
Star Partner Rod & Julie McPherson Barre Partner Antoinette Albert John & Ursula Moore Mark E Andrews Robert Albert AO & Elizabeth Albert Dame Elisabeth Murdoch AC DBE Warren Atkinson & Sue Just Tony Cardamone Ezekiel Solomon AM Justice Annabelle Bennett AO David Clarke AO & Jane Clarke David Wenger Minnie Biggs The Hon Mrs Ashley Dawson-Damer Ted Blamey Tom & Kristine Dery Margie Bond Ian Dickson & Reg Holloway Dance Partner Sarah Brasch Martin Dickson AM & Susie Dickson Ross Adamson Jane Bridge Paul Espie Pam & Doug Bartlett Denise & Neil Buchanan Ros Espie Ann Battersby Jacqui Burton Tony Jones Christine & Robert Camping Robert Coombe Julian & Lizanne Knights Moira Crane Hugh & Frances Dixson Alexandra Martin & the late Beryl Crusie Nicholas Eddy Lloyd Martin AM Suzanne Davidson OAM Elizabeth Fox Peter Reeve & Jaycen Fletcher Jane Douglass Anthony Galuzzo J O Fairfax Leigh Garvan John & Libby Fairfax Brian Goddard Principal Partner Neilma Gantner Peter Graves Jean-Marc & Kirsten Carriol Amber Gooley Claire Handler Chum & Belinda Darvill Valmay Hill & Russell Mitchell Neroli Hobbins James & Jacqui Erskine Alexandra Martin & the late David Jones & Desmon du Plessis Bee & Brendan Hopkins Lloyd Martin AM Phyliss Koshland Judy Joye & Robin Crawford Natascha & Matt Milson Pierre Marecaux & Ken Thompson Andrew Messenger Prof Elizabeth More AM Peter & Gai Martin Brian Nebenzahl OAM RFD & April Mountfort Sandra McCallagh Jocelyn Nebenzahl Robbie Nicol Sean Mungovan Gretel Packer Helen O’Neil Gwen O’Brien Rebel Penfold-Russell Greeba Pritchard Billy & Erin Ostadal John Prescott AC & Jennifer Prescott Lynn Ralph Jill Paterson Victoria Taylor Edward & Nannette Robson D E Pidd Anonymous 1 John & Patricia Seybolt Margaret & Mark Pierce-Jolley Natalie Shea Denise Quay Naseema Sparks Heather Ruddock Leading Partner Phillip & Leslie Stern Catriona Simson Anonymous 2 Tony & Sandra Bancroft Prof Nerida Smith J.L. Blue Christina Stitt Janice Burke Christine Thevanthasan Nicholas Carson Donna Woodhill Georgi Ciot Virginia & Ken Woolley Bradford Gorman & Ant Ewart Anonymous 3 Lynley & Duncan Hardie Dean & Janine Hawkins The Hon Jame Judd Skye Leckie Robert Maple-Brown AO & Susan Maple-Brown
47 Partner International Touring Ross & Leonore Adamson Program Judith Ben-Mier Brian Carey Prima Kathleen Davies Martin Dickson AM & Susie Dickson D & B Driscoll Julian & Lizanne Knights Maria Finlay Marilyn Forbes Grande Anthony Fricker Jean-Marc & Kirsten Carriol Sue Gazal The Hon. Ashley Dawson-Damer John & Janet Gissing Andrew Messenger Rachael Haggett Peter Reeve & Jaycen Fletcher Louise Hamshere Victoria Taylor Bronwyn Hunter Josephine Key Reserva Pam King John & Sue Blue Deirdre Kirby Georgi Ciot Min Li Chong Matt Downie Marlene Mangioni Lynley and Duncan Hardie Mary Jane McKerihan Dean and Janine Hawkins Gerry O’Sullivan & Peter Wright Alexandra Martin & the late Mary Paget-Cooke Lloyd Martin AM Melanie Rendall Rod & Julie McPherson Jon Ryan David Wenger Norman R Scott David Thomson Classico Suzanne Totaro Luca & Anita Belgiorno-Nettis Anonymous 2 Janice Burke Jane Douglass Nicholas Eddy Greg Khoury John and Ursula Moore Robbie Nicol Billy and Erin Ostadal Fiona Sinclair and Peter King
48 Sponsors
Principal Sponsor
Platinum Sponsor
Major Sponsors
Company Sponsors
Cultural Sponsors
Company Supporters
Rex Irwin Art Dealer Ernst & Young Bayer Australia
49 Government
Sydney Dance Company is assisted by the Australian Government through the Australia Council, its arts funding and advisory body.
Sydney Dance Company is assisted by the NSW Government through Arts NSW.
The Australia Government is proud to be associated with Sydney Dance Company the national performing arts touring program Playing Australia, which gives Australians across the country the opportunity to see some of the best performing arts.
Cover image: Amy Hollingsworth in Rafael Bonachela’s Irony of Fate. Photo by Wendell Teodoro Contents page: Charmene Yap in Rafael Bonachela’s 6 Breaths. Photo by Wendell Teodoro
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