The
Song
Company
“As new director, Pitts continues and honours The
Song Company’s special expertise in the glories of
the Renaissance under previous director Roland
Peelman, while also bringing a distinct and cogent personal perspective. This was a concert of
rare and transcendent beauty.” (Peter McCallum,
Sydney Morning Herald April 2016)
2016 Annual Report
1
Table of Contents
Personnel
Vision, Mission6
Artistic Director
Antony Pitts
General Manager
David Sidebottom
Ensemble
Susannah Lawergren
Anna Fraser
Hannah Fraser
Richard Black
Mark Donnelly
Andrew O’Connor
Operations Manager
Alicia Gibbons
Artistic Report8
Business Report10
Donations Program11
Directors’ Report12
Auditor’s Independence Declaration
14
Financial Statements15-18
Notes to the Financial Statements
19-30
Directors’ Declaration31
Independent Audit Report
32-34
Philanthropy Manager
Wanda Sadowski
Marketing Coordinator
Aziza Green
Board of Directors
Michael Tidball – Chair
Stephen Anstice
Leonie Cambage
Anne Goldner
Matthew Hindson
Ian MacDonald
Mathisha Panagoda
Bob Prosser
PR
Dmcprmedia
Accountant
Keeping Company
The Song Company is assisted by the Australian Government through the Australia Council, its arts funding and
advisory body, and the NSW Government through Create NSW.
2 The Song Company 2016
3
The Song Company
Vocalization is all about the sound and the story.
The Song Company of Australia comprises the continent’s leading vocal ensemble,
singing music of all times and places.
Since the dawn of history, the human voice and the
act of singing have been intrinsically linked with
storytelling and the acquisition of culture. The Song
Company belongs to a land whose first peoples used
songlines and vocal music to pass knowledge and
culture from generation to generation, and is proud to
continue that tradition, in a unique way, sharing music
from across western and non-western art traditions.
From its beginnings in 1984 the ensemble’s schedule
has grown to include a mix of national and international
touring, a subscription series in cities across Australia,
recording and broadcast projects, education activities
including music workshops for children in regional and
remote areas, and special collaborative projects.
4 The Song Company 2016
The Song Company’s repertoire covers vocal music
from the 10th century to contemporary works, and
is astonishing in its stylistic diversity. The Company
remains at the forefront of contemporary vocal music
through an extensive commissioning program and
collaborations with artists and composers of the highest
calibre from around the world. Taking up the baton
as Artistic Director from Roland Peelman in 2016,
the award-winning British composer and conductor
Antony Pitts brings with him a wide and distinctive
range of programming, recognised by Australian critics
as “seriously interesting”, and a challenging approach
to vocal sonority which promises exciting times ahead
for the Company.
The Song Company - Walsh Bay Arts Table
5
Vision, Mission
and Values
The Song Company’s vision is to sustain, develop, and extend a cappella and vocal music traditions through
our performances, commissioning work and education programs. The Song Company explores the limitless
possibilities of the human voice, without constraints, enhancement or masking. Delivery is by virtuosic singers who
blend perfectly woven harmonies and stories spanning time and cultures.
Values
•
•
•
•
Integrity of art – All artists are respected, and each performance is given the time and resources required for
detailed development to the highest quality. Each new commission is carefully nurtured. The company’s core
focus is this integrity.
Expression – Music expresses beyond words, and great music affects us personally and deeply.
Exploration and extension of culture – Vocal music is the genesis of many cultures and is heard in religious and
secular traditions. We extend culture by reimagining the old, developing new works and engaging in innovative
collaborations.
Empathy and clarity – Our music is a vehicle of positive change. We respect, trust and value our people and
audiences.
“ This is virtuoso ensemble singing: eight
individual voices, all moving independently,
often in different directions, at speed and
at the extremes of the singers’ registers and
dynamic ranges. It’s hard to imagine a better
performance...”
(Harriet Cunningham,
Sydney Morning Herald February 2016)
Andrew O’Conner - Bass
6 The Song Company 2016
7
Artistic Report
Antony Pitts
Aritstic Director
2016 was my first season as Artistic Director, taking over
from Roland Peelman’s quarter-century at the helm
of Australia’s premier vocal ensemble. I arrived in the
country with my family in December 2015, only a few
weeks before opening Into Something... – our 2016
season of legacy and transformation “into something
rich and strange”. We began in January in Trackdown
Studios with a recording of a suite of birdsong-inspired
music for composer Hollis Taylor’s forthcoming album.
My official debut on stage conducting (and introducing)
The Song Company was in February with the first of
seven ambitious subscription concert programs: Bach &
Forward, with guest artists Neal Peres da Costa, Daniel
Yeadon, Tobias Cole, and Andrew Goodwin, which was
broadcast by ABC Classic FM. March saw a range of
activities including an appearance at City Recital Hall in
Sydney with William Barton, an education workshop at
Bundanon, a Moorambilla scouting tour in rural NSW,
intensive singer auditions, a composers’ workshop, and
a private musical dinner at The Wharf in Walsh Bay. In
April we toured our second subscription program In
Tempore Paschali including poetry by John Donne
and George Herbert and new music by Alice Chance
and Elliott Gyger, also broadcast by ABC, as well as
conducting an AIM workshop in Melbourne.
While I returned to Europe to work with TONUS
PEREGRINUS and Simon Hewitt Jones on a musical
project for Syria, and to attend the premieres and album
recording of my double-choir Missa Unitatis with
Stephen Layton directing Nederlands Kamerkoor and
Cappella Pratensis, the ensemble undertook our annual
residency at the Canberra International Music Festival.
In May we joined the Melbourne Symphony Orchestra
on stage in the Elisabeth Murdoch Hall to perform
8 The Song Company 2016
a number of cityscape-inspired pieces in alternation
– our rendition of Berio’s Cries of London received a
five-minute ovation while we were on air; as part of the
same Metropolis New Music Festival we performed
our own specially-commissioned Cries of Melbourne
at Melbourne Recital Centre with movements by Tim
Dargaville, Caerwen Martin, Elliott Gyger, Samantha
Wolf, Katy Abbott Kvasnica, and Jakob Bragg; later that
month we travelled to Perth for a fortnight of education,
performance, and donor events. Our third subscription
program, A Strange Eventful History, took place in
June with guest artist scholar and rhetorician Professor
Gary Watt, who led pre-concert and other contextual
events around the 400th anniversary of Shakespeare’s
death, with a specially-written work by former
member of The Song Company, Ruth McCall; we also
performed at the Pearl Beach festival, and with Taikoz
and Lingalayam Indian Dance at City Recital Hall –
to help raise funds for Gondwana. In July we sang at
both Government House and Parliament House with
Moorambilla Voices.
August saw our fourth subscription program, I believe
I can fly..., take off with guest artist-composer Hollis
Taylor and her Pied Butcherbird suite, as well as
Moorambilla workshops and the beginning of our
fifth tour of the year, The Concord of Strangers.
This program – partially commemorating the 400th
anniversary of Dirk Hartog’s landing, and also the focus
of an ABC broadcast – was based around an innovative
soundscape commission from beatbox artist Bernie Van
Tiel and took us into an exceptionally busy September
with several appearances for AAQ, the official launch of
our 2017 Season The Attraction of Opposites at Yellow
House, the climax of our annual engagement with
Moorambilla including my first Stories of A cappella presentation
at Baradine, a gala concert at Dubbo plus Andrew Howes’s new work
with Leichhardt Espresso Chorus, and in Bathurst, a reprise of The
All-Leunig Almanac preceded by three vocal workshops. In October
we moved on to our sixth tour, Strange Fruit – a controversial and
uplifting program inspired by Billie Holiday’s rendition of the song,
including arrangements by Andrew Ford, Richard Black, and Anthony
Trecek-King, as well as performing Howes’s work on Callan Park
with LEC. In November we entertained the Walsh Bay Arts Table
diners with If Music be the Food of Love... including the premiere of
2017 Peggy Glanville-Hicks resident Jon Rose’s paean to our dinner
backdrop, Sydney Harbour Bridge (and a bespoke Happy Birthday to
a Board member).
We finished our season with a look forward to Christmas with our
seventh subscription program, An Orthodox Christmas, based
around a sevenfold commission from Australian-Greek composer
Anastasia Pahos, and finally let our hair down in a Ghanaian dance
workshop with Lucky Lartey. In addition to the above, across the
year we performed many works by Australian composers, including
Gerard Brophy, Nigel Butterley, Tim Hansen, Elena Kats-Chernin,
Peter Sculthorpe, Martin Wesley-Smith, and (in two programs)
Chris Williams, as well as new or recent music from up North by Paul
Ayres, Bernard Hughes, Joe Jackson, David Landsman, Alexander
L’Estrange, Ivan Moody, Pauline Oliveros, Roland Orzabal, Arvo Pärt,
Jonathan Pitts, John Tavener, and yours truly. In conclusion, I would
like to thank our singers Susannah, Anna, Hannah, Richard, Mark, and
Andrew, and all our staff and Board members, for all their dedication
and expertise, but also all of you who have supported our work in
whatever way throughout the year – it is only with the generosity and
openness of our audience, donors, and patrons, that we are able (to
quote Shakespeare once more) to make our “sounds and sweet airs,
that give delight”.
Antony Pitts - Artistic Director
9
Business Report
Donations
Program
A year of change and regeneration
The Song Company gratefully
acknowledges all of our donors and
supporters. Without them we could not
achieve the quality or diversity of our
programs.
After 25 years with Roland Peelman at the artistic helm,
Artistic Director Antony Pitts brought his creativity
and family from the UK to present his first year of
programing in 2016, one that has been acclaimed by
audiences and critics alike.
General Manager Tim Carter left the company in May
2016 and David Sidebottom was appointed in August
2016.
The period of tenure of previous Chair Penny Le
Couteur recently came to an end. Penny skilfully
managed the key personnel changes including her
own succession. Michael Tidball joined the Board as
a Director in December 2016, subsequently becoming
Chair in February 2017. We all are indebted to Penny for
her support over many years.
Management sincerely thanks the singers, board
members, and staff for their commitment and support
during this period.
Over 9,000 people attended 66 performances.
Self-presented performance income was maintained
with a slight fall in for-fee performances. Even in
a competitive environment philanthropic income
increased, illustrating strong audience support for the
future. Without the generosity of individual supporters,
it would not be possible to continue to share the artistry
and love of song. There was a reduction in Create NSW
grant income, 2016 being the first of a new triennial
period. Amidst the turmoil of federal funding for the
Arts, The Song Company emerged in a stronger position
with Australia Council for the Arts funding confirmed
for 2017 – 2020. We are very grateful for the support
of The Australian Government through the Australia
Council for the Arts, the NSW Government through
Create NSW and the St George Foundation supporting
our community engagement program.
We look forward to an exceptional 2017 supporting the
vision and artistry of Antony and the singers.
Michael Tidball
Board Chair
10 The Song Company 2016
David Sidebottom
General Manager
$75,000 +
Drs Tom and Elisabeth Karplus
Thank you also to our volunteers, and to
those who give their expertise in kind.
$15,000 +
The Freedman Foundation
$5,000+
Penny Le Couteur and Greg Dickson, Nick and Caroline Minogue
Foundation, Frances Muecke, John & Kathie O’Connor, Bob and Anna
Prosser, Scott Family Bequest
$2,500 - $4,999
Jane and Rob Diamond, Sarah and David Howell, Dr Timothy Turner
$1,000 - $2,499
Stephen and Ruth Anstice, Roger Bartrop, Rodney Beech & Mariee
Durkin-Beech, Sandy Belford, Pattie Benjamin, Clive Birch, Drs Robert
and Tania Black, Ben & Martha Gelin, Professor Barbara Gillam, Margaret
and Peter Janssens, Marjorie Lindenmayer, Ian and Elizabeth MacDonald,
Ruth Medd, Helen Meddings, Peter Murray, Katharine Pierce, Ern and
Deidre Pope, Danielle Simpson & Shane Simpson AM, Duncan & Emma
Snodgrass, Helen Symon SC, Michael and Audrey Wilson, Anonymous (3)
$500-$999
Sheryl Anne Barry, Airdrie Lloyd, Christine Perrers, Roger & Carolyn Port,
Penny Rogers, Meredith Rogers, Megan Williamson, Peronelle Windeyer,
Peter Wise, Anonymous (1)
11
Directors
The names of each person who has been a director during the year and to the
Directors’ Report
The Directors present their report, together with the financial
statements of The Song Company Pty Limited (The Song Company)
for the year ended 31 December 2016
Principal activities
The Song Company is Australia’s foremost and most distinguished a cappella vocal ensemble. It presents an average of
70 performances per year, including a subscription series, presentations at festivals, other concert performances, and an
education program. There have been no significant changes in the nature of these activities during the year.
Review of operations
The Song Company incurred a net deficit for the year of $78,940 (2015 net surplus $24,888). No income tax is payable.
The year was one of transition following the appointment of a new Artistic Director and General Manager. There
was a reduction of $105,000 in grants received from Create NSW, and in the number of performances outside the
subscription series, partially offset by increased cash donations and fundraising. Expenses were at the same level as
last year, after taking into account those costs donated in kind ($36,000; 2015 nil), and one-off costs of fundraising
($25,849; 2015 nil).
Date Appointed
Date of
Cessation
Board Meetings
held while in
office
Board Meetings
Attended
Audit & Risk
Committee,
meetings held
while a member
Audit
& Risk
Committee,
meetings
attended
Stephen Anstice
21/10/2013
6
6
n/a
n/a
Leonie Cambage
09/02/2015
6
5
n/a
n/a
Anne Goldner
13/07/2015
6
4
n/a
n/a
Matthew Hindson
18/05/2015
6
4
n/a
n/a
Penny Le Couteur
08/03/2010
6
6
n/a
n/a
Ian MacDonald
09/02/2015
6
4
2
1
Mathisha Panagoda
15/09/2015
6
6
2
1
Robert Prosser
09/02/2015
6
6
2
2
Michael Tidball
12/12/2016
1
1
n/a
n/a
06/02/2017
Directors receive no fees and provide their services as directors on a pro bono basis.
Directors’ Qualifications and Experience
Board Members
Qualifications and Experience
Stephen Anstice
BA (Economics)
Dip Securities Institute of Australia
Other than the reduction in accumulated funds to $185, 231 (2015 $264,171), as a result of the net deficit, there were no
significant changes to the state of affairs of The Song Company during the year.
Leonie Cambage
Dip of Operatic Art & Bachelor of Music (Voice) Conservatorium of Music (Sydney)
Artistic Director
Matters subsequent to the end of the financial year
Anne Goldner
Principal, Goldner Event Management
Matthew Hindson
B.Mus. (Hons), M.Mus., Ph.D.
Composer, ex-board member Australia Council for the Arts
Deputy Head of School and Deputy Dean, Associate Dean (Education), Sydney Conservatorium of Music, The University of Sydney
Penny LeCouteur
BSc (Hons)
Professional non-executive director
Ian MacDonald
MA (Psychology) DipEd
Grad Dip Management
MAPS MAICD
Director of Leadership Consultancy and retired IBM executive
Mathisha Panagoda
LMusA, BMus(Perf)(Hons), Juris Doctor (Sydney), GDLP
Lawyer, Carroll & O’Dea
Robert Prosser
MA (Oxf), FCA, MAICD
Retired Partner of PricewaterhouseCoopers
Michael Tidball
B Social Science
Master of Management
FAICD
CEO of The Law Society of New South Wales
Secretary General LAWASIA
Significant changes in the state of affairs
No matter or circumstance has arisen since 31 December 2016 that has significantly affected, or may significantly affect:
a)
The Song Company’s operations in future financial years, or
b)
The results of those operations in future financial years, or
c)
The Song Company’s state of affairs in future financial years
Likely developments and expected results of operations
The Song Company expects to maintain the present status and level of operations. In the opinion of the directors, there
are no likely changes in the operations of The Song Company that will adversely or significantly affect the results of The
Song Company in subsequent financial years.
Environmental Regulations
The Song Company is not subject to any mandatory environmental obligations or reporting requirements.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under Subdivision 60-C of the Australian Charities and
Not-for-profits Commission Act 2012 is set out on page 14.
Auditors
Pitcher Partners continue in office.
On behalf of the directors
Michael Tidball
Chair
12 The Song Company 2016
13
Statement of Profit
or Loss and other
Comprehensive Income
for the year ended 31 December 2016
AUDITOR'S INDEPENDENCE DECLARATION
TO THE RESPONSIBLE ENTITIES’ OF THE SONG COMPANY PTY LIMITED
ABN: 27 001 577 377
I declare that to the best of my knowledge and belief, during the year ended 31 December 2016 there
have been no contraventions of:
Notes
2016
$
2015
$
Box Office Income
3
210,264
214,436
Performance Fees
3
74,435
112,176
Sponsorship, Donations & Fundraising
3
303,805
194,043
Other Income
3
18,858
29,636
M A ALEXANDER
Partner
Government Grants
3
359,652
463,705
967,014
1,013,996
PITCHER PARTNERS
Sydney
Less: expenses
Artistic salaries & consultants fees
(394,351)
(358,043)
Management salaries & consultants fees
(273,792)
(256,526)
Program costs
(159,026)
(158,315)
Marketing costs
(91,170)
(125,579)
Administration & Infrastructure costs
(127,615)
(90,645)
(1,045,954)
(989,108)
(78,940)
24,888
-
-
(78,940)
24,888
i. the auditor’s independence requirements as set out in the Australian Charities and Not-forprofits Commission Act 2012 in relation to the audit; and
ii. any applicable code of professional conduct in relation to the audit.
10 April 2017
Revenue and other income
Net (Deficit)/Surplus for the year
Other comprehensive income for the year
Total comprehensive (loss)/income for the year
An independent New South Wales Partnership. ABN 17 795 780 962.
Level 22 MLC Centre, 19 Martin Place, Sydney NSW 2000
Liability limited by a scheme approved under Professional Standards Legislation
14 The Song Company 2016
14
Pitcher Partners is an association of independent firms
Melbourne | Sydney | Perth | Adelaide | Brisbane| Newcastle
An independent member of Baker Tilly International
15
Statement of Financial
Position
for the year ended 31 December 2016
Note
2016
$
2015
$
Cash and cash equivalents
5
441,477
467,509
Trade and other receivables
6
16,943
8,102
Prepayments and accrued income
9
14,996
19,820
473,416
495,431
Current assets
Total current assets
Non-current assets
Statement of
Changes in Equity
for the year ended 31 December 2016
Share
capital
$
Accumulated
funds
$
Total equity
$
Balance as at 1 January 2015
8
239,283
239,291
Surplus for the year
-
24,888
24,888
Other comprehensive income for the year
-
-
-
Property, plant and equipment
7
3,690
4,185
Total comprehensive income for the year
-
24,888
24,888
Trade and other receivables
6
6,545
8,000
Balance at 31 December 2015
8
264,171
264,179
Intangibles
8
-
-
Total non-current assets
10,235
12,185
Balance as at 1 January 2016
8
264,171
264,179
Total assets
483,651
507,616
Deficit for the year
-
(78,940)
(78,940)
Other comprehensive income for the year
-
-
-
Current liabilities
Trade and other payables
10
72,857
48,231
Total comprehensive income for the year
-
(78,940)
(78,940)
Income in advance
11
75,835
69,865
Balance as at 31 December 2016
8
185,231
185,239
Provisions
12
22,812
20,915
Government grants received in advance
13
120,000
104,426
291,504
243,437
6,908
-
6,908
-
Total liabilities
298,412
243,437
Net assets
185,239
264,179
Total current liabilities
Non-current liabilities
Provisions
12
Total non-current liabilities
Equity
Share Capital
14
8
8
Accumulated funds
15
185,231
264,171
185,239
264,179
Total equity
16 The Song Company 2016
17
Statement of
Cash Flows
Notes to
Financial Statements
for the year ended 31 December 2016
for the year ended 31 December 2016
1
GENERAL INFORMATION
The financial report is for The Song Company Pty Ltd (the “Company”) as an individual entity for the year ended 31
December 2016 and was authorised for issue in accordance with a resolution of the directors of the company dated 10
April 2017.
Note
2016
$
2015
$
Cash flow from operating activites
The Song Company Pty Ltd is a private company, incorporated and domiciled in Australia.
The nature of the operations and principal activities of the Company are described in the Directors’ Report.
Cash received in the course of operations
538,987
545,688
Receipts from appropriations/grants
383,671
255,015
6,702
13,354
Payments to suppliers and employees
(952,624)
(1,051,559)
Net cash (used in) operating activities
(23,264)
(237,502)
Interest received
Cash flow from investing activities
2
SUMMARY OF SIGNFICANT ACCOUNTING POLICIES
New, revised or amending Accounting Standards and Interpretations adopted
The Company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted.
a)
Basis of preparation
Payment for property, plant and equipment
(2,768)
(3,256)
Net cash used in investing activities
(2,768)
(3,256)
Net (decrease) in cash and cash equivalents
(26,032)
(240,758)
Historical cost convention
Cash at the beginning of the financial year
467,509
708,267
441,477
467,509
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss,
investment properties, certain classes of property, plant and equipment and derivative financial instruments.
Reconciliation of cash
Cash at the end of the financial year
5
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards
- Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board
(‘AASB’) and the Australian Charities and Not-for-Profits Commission Act 2012, as appropriate for Not-for-profit
oriented entities.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the entity’s accounting policies. The areas involving
a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 2(b) below.
b) Significant accounting judgements, estimates and assumptions
The preparation of financial statements requires management to make judgments, estimates and assumptions that
affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and other various factors that are believed to be reasonable
under the circumstances, the results of which form the basis of making the judgments. Actual results may differ from
these estimates.
18 The Song Company 2016
19
b) Significant accounting judgements, estimates and assumptions (continued)
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future periods.
The key estimates and assumptions that have a significant risk of causing material adjustment to the carrying amount
of certain assets and liabilities within the next annual reporting period are:
Provision for employee benefits
Provisions for employee benefits payable after 12 months from the reporting date are based on future wage and salary
levels, experience of employee departures, and periods of service, as discussed in Note 2(n). The amount of these
provisions would change should any of the employees change in the next 12 months.
c)
Revenue recognition
Revenue is recognised when the company is legally entitled to the income and the amount can be quantified with
reasonable accuracy. Revenues are recognised net of the amounts of goods and services tax (GST) payable to the
Australian Taxation Office.
(i) Revenue from fundraising
Government funding
Grant revenue is recognised in the statement of comprehensive income when the company obtains control of the
grant and it is probable that the economic benefits gained from the grant will flow to the company and the amount of
the grant can be measured reliably.
If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the
recognition of the grant as revenue will be deferred until those conditions are met.
When grant revenue is received whereby the company incurs an obligation to deliver economic value directly back
to the contributor, this is considered a reciprocal transaction, and the grant revenue is recognised in the statement of
financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised
as income on receipt.
Donations
d)Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs
related to the category.
Wages, salaries & fees includes all employment related costs such as wages, superannuation, provision for annual
leave, provision for long service leave and workers compensation. This category also includes all contracts for labour
costs.
• Program costs include all direct costs associated with the delivery of the artistic program.
• Marketing costs include all direct costs associated with marketing both the artistic program and the company.
• Infrastructure costs include all other indirect costs including office rental and running costs, insurance and
depreciation.
e)
Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term
deposits with an original maturity of three months or less. For the purposes of the cash flow statement, cash and cash
equivalents consist of cash and cash equivalent as defined above, net of any outstanding bank overdrafts.
f)
Trade and other receivables
Trade receivables are recognised and carried at original invoice amounts less an allowance for any uncollectible
amounts. Normal terms of settlement vary from seven to 90 days. The carrying amount of the receivable is deemed to
reflect fair value.
An allowance for doubtful debts is made when there is objective evidence that the company will not be able to collect
the debts. Bad debts are written off when identified.
g)
Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Any plant and equipment donated to the company or acquired for nominal cost is recognised at fair value at the date
the company obtains control of the assets.
Depreciation
Items of plant and equipment (other than land) are depreciated over their useful lives to the company commencing
from the time the asset is held ready for use. Depreciation is calculated on a straight line basis over the expected useful
economic lives of the assets as follows:
Donations collected, including cash and goods for resale, are recognised as revenue when the company gains control,
economic benefits are probable and the amount of the donation can be measured reliably.
Sponsorship
Equipment & furniture
Intangibles
2016
2015
%pa.
%pa.
10%-33%
20%-33%
25%
25%
Sponsorship commitments are brought to account as income in the year in which sponsorship benefits are bestowed.
(ii) Interest income
Interest income is recognised as it accrues, using the effective interest method.
(iii) Asset sales
The gain or loss on disposal of all non-current assets is determined as the difference between the carrying amount of
the asset at the time of the disposal and the net proceeds on disposal.
20 The Song Company 2016
Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with the recoverable
amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use.
Depreciated replacement cost is used to determine value in use. Depreciated replacement cost is the current
replacement cost of an item of plant and equipment less, where applicable, accumulated depreciation to date,
calculated on the basis of such cost.
21
g) Plant and equipment (continued)
Impairment exists when the carrying value of an asset exceeds its estimated recoverable amount. The asset is then
written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in the statement of comprehensive income.
Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal, when the item is no longer used in the
operations of the company or when it has no sale value. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in
surplus or deficit in the year the asset is derecognised.
Any part of the asset revaluation reserve attributable to the asset disposed of or derecognised is transferred to general
funds at the date of disposal.
l)
Trade creditors and other payables
These amounts represent liabilities for goods and services provided to the company prior to the end of the financial
year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. The notional
amount of the payables is deemed to reflect fair value.
m)
Deferred income
The liability for deferred income is the unutilised amounts of grants received on the condition that specified services
are delivered or conditions are fulfilled. The services are usually provided or the conditions usually fulfilled within
12 months of receipt of the grant. Where the amount received is in respect of services to be provided over a period
that exceeds 12 months after the reporting date, or the conditions will only be satisfied more than 12 months after the
reporting date, the liability is discounted and presented as non-current.
n)
Employee benefits
h)Provisions
Employee benefits comprise wages and salaries, annual, non-accumulating sick and long service leave.
Provisions are recognised when the entity has a present (legal or constructive) obligation as a result of a past event,
it is probable the entity will be required to settle the obligation, and a reliable estimate can be made of the amount of
the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If
the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The
increase in the provision resulting from the passage of time is recognised as a finance cost.
Liabilities for wages and salaries expected to be settled within 12 months of balance date are recognised in other
payables in respect of employees’ services up to the reporting date. Liabilities for annual leave in respect of employees’
services up to the reporting date which are expected to be settled within 12 months of balance date are recognised in
the provision for annual leave. Both liabilities are measured at the amounts expected to be paid when the liabilities are
settled.
i)Leases
The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement
and requires an assessment of whether the fulfilment of the arrangement is dependent of the use of a specific asset or
assets and the arrangement conveys a right to use the asset.
The liability for long service leave is recognised in the provision for employee benefits and is measured as the present
value of 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 anticipated future wage and salary levels, experience
of employee departures, and periods of service. Expected future payments are discounted using market yields at the
reporting date on national government bonds with terms to maturity and currencies that match, as closely as possible,
the estimated future cash oufflows.
Leases where the lessor or sub-lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Operating lease payments are recognised as an expense in profit or loss on a straightline basis over the lease term.
o)
Lease income from operating leases is recognised in profit or loss on a straight-line basis over the lease term. Initial
direct costs incurred in negotiating operating leases are added to the carrying value of the leased asset and recognised
as an expense over the lease term on the same bases as the lease income.
As the company is a charitable institution in terms of subsection 50-5 of the Income Tax assessment Act 1997, as
amended, it is exempt from paying income tax. The Company holds deductible gift recipient status.
j)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in normal
operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the
reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least 12 months after the reporting period. All other assets are classified as non-current.
k)Intangibles
Software and website are recorded at cost. Software and website have a finite life and are carried at cost less any
accumulated amortisation and impairment losses. They have an estimated useful life of four years. They are assessed
annually for impairment.
Taxation
Income tax
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except where the amount of GST incurred is
not recoverable from the Australian Taxation Office, in which case it is recognised as part of the cost of acquisition of
an asset or as part of an item of expense.
Receivables and payables are recognised inclusive of GST.
The net amount of GST recoverable from or payable to the Australian Taxation Office is included as part of
receivables or payables.
Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from
investing and financing activities which is recoverable from or payable to the Australian Taxation Office is classified as
operating cash flows.
p)
Issued capital
Ordinary shares are classified as equity.
Any Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax,
from the proceeds.
22 The Song Company 2016
23
2016
$
2016
$
2015
$
Cash at bank & cash on hand
289,108
267,509
Term Deposits
152,369
200,000
441,477
467,509
2015
$
NOTE 3: REVENUE AND OTHER INCOME
NOTE 5: CASH AND CASH EQUIVALENTS
Box Office Income and Performance Fees
Box Office Income
210,264
214,436
Performance Fees
74,435
112,176
284,699
326,612
Donations
206,500
170,043
NOTE 6: TRADE AND OTHER RECEIVABLES
Foundations & Trusts
23,445
24,000
Current
Fundraising
37,860
-
Trade debtors
14,343
6,102
In-kind Donations
36,000
-
Loan receivables from related parties**
2,600
2,000
303,805
194,043
16,943
8,102
6,545
8,000
Sponsorship & Donations
Non-Current
Other Income
CD Sales
2,220
4,185
Program Sales
7,956
8,491
-
2,500
Interest
6,703
13,354
Sundry Income
1,979
1,106
18,858
29,636
Australia Council for the Arts
209,652
208,852
Create NSW
150,000
254,853
359,652
463,705
Management Fees
Loan receivables from related parties**
** The above loan for $10,000 (split between current and non-current) was provided by the Company to a related party during the
year ended 31 December 2015. This loan is recoverable in full, commercial interest has been charged and commercial terms have
been abided by.
Government Grants
2016
$
2015
$
NOTE 4: EXPENSES
NOTE 7: PLANT AND EQUIPMENT
(Deficit)/Surplus before income tax includes the following
specific expenses:
Plant and Equipment – at cost
35,854
33,086
Less: Accumulated depreciation
(32,164)
(28,901)
3,690
4,185
Depreciation
Depreciation costs
24 The Song Company 2016
3,262
2,622
25
NOTE 7: PLANT AND EQUIPMENT (continued)
2015
$
14,353
16,511
643
3,309
14,996
19,820
Trade creditors
18,773
15,403
GST payable
5,461
2,962
PAYG payable
7,054
7,678
Superannuation Payable
27,816
10,589
Accrued expenses
13,753
11,599
72,857
48,231
75,835
69,865
75,835
69,865
NOTE 9: PREPAYMENTS AND ACCRUED INCOME
Reconciliations
Current
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Equipment &
Furniture
Prepayments
Total
Accrued Income
NOTE 10: TRADE AND OTHER PAYABLES
Gross carrying amount
Opening balance as at 1 January 2016
33,086
33,086
Additions
2,767
2,767
Closing balance as at 31 December 2016
35,853
35,853
Opening balance as at 1 January 2016
(28,901)
(28,901)
Depreciation charge for the year
(3,262)
(3,262)
Closing balance as at 31 December 2016
(32,163)
(32,163)
3,690
3,690
Accumulated depreciation
Net book value
As at 31 December 2016
2016
$
Current
NOTE 11: INCOME IN ADVANCE
Ticket sales in advance
2016
$
2015
$
NOTE 8: INTANGIBLES
Gross carrying amount
Opening balance as at 1 January 2016
40,395
40,395
-
-
40,395
40,395
(40,395)
(40,395)
Amortisation charge
-
-
Disposal
-
-
(40,395)
(40,395)
-
-
Disposal
Closing balance as at 31 December 2016
Accumulated amortisation
Opening balance as at 1 January 2016
Closing balance as at 31 December 2016
Net book value
As at 31 December 2016
26 The Song Company 2016
NOTE 12: PROVISIONS
Current
Provision for annual leave
(a)
15,184
7,593
Provision for long service leave
(a)
7,628
13,322
22,812
20,915
Non-current
Provision for long service leave
(a) Total provisions
(a)
6,908
-
29,720
20,915
120,000
104,426
120,000
104,426
NOTE 13: GOVERNMENT GRANTS RECEIVED IN
ADVANCED
Australia Council for the Arts
27
2016
$
2015
$
NOTE 14: SHARE CAPITAL
8
8
Accumulated funds at beginning of year
264,171
239,283
(Deficit)/Surplus for the year
(78,940)
24,888
185,231
264,171
NOTE 15: ACCUMULATED FUNDS
Accumulated funds at end of year
There were no Contingent Liabilities or Assets of the Company as at the reporting date.
NOTE 19. RELATED PARTY TRANSACTIONS
Issued and paid-up capital
8 (2016: 8) fully paid ordinary shares
NOTE 18: CONTINGENT LIABILITIES
Key management personnel
Disclosures relating to key management personnel are set out in note 16.
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.
Loans to/from related parties
Loans to or from related parties are shown below:
NOTE 16: KEY MANAGEMENT PERSONNEL DISCLOSURES
Current receivables
Compensation
Loans receivable from related parties
The aggregate compensation made to directors and other members of key management personnel of the company is set out
below:
Aggregate compensation
2016
$
2015
$
112,119
134,929
2016
$
2015
$
9,145
10,000
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
NOTE 20: COMMITMENTS
Lease commitments - operating
The names and positions of those having authority for planning, directing and controlling the company’s activities,
directly or indirectly (other than directors), are:
General Manager - David Sidebottom
Artistic Director - Antony Pitts
Directors receive no compensation for carrying out their roles.
NOTE 17: EVENTS AFTER THE REPORTING PERIOD
No matter or circumstance has arisen since 31 December 2016 that has significantly affected, or may significantly
affect the Company’s operations, the results of those operations, or the Company’s state of affairs in future financial
years.
28 The Song Company 2016
Committed at the reporting date but not recognised as liabilities, payable:
2016
$
2015
$
Within one year
-
5,986
One to five years
-
-
More than five years
-
-
-
5,986
Operating lease commitments include contracted amounts for office rent under non-cancellable operating leases
expiring within one year with options to extend. On renewal, the term of the lease is renegotiated.
As at 31 December 2016, the lease ended and there is no formal renewal for this lease due to Arts NSW carrying
out essential maintenance on Pier 2/3 and Wharf 4/5. The reason for this is to protect and ensure the structural
integrity of the supporting structures and buildings on this important State heritage asset. Construction is expected to
commence in mid-2017, subject to approvals, with the redevelopment due for completion in 2019. The Song Company
will temporarily relocate to Woolloomooloo at a later date.
29
Responsible Entities
Declaration
NOTE 21: COMPANY DETAILS
The Registered Office and Principal Place of business of the Company is:
Pier 4, The Wharf
Hickson Road
Walsh Bay
NSW 2000
NOTE 22: ADDITIONAL INFORMATION PROVIDED - CHARITABLE FUNDRAISING ACT 1991
Information and Declarations to be Furnished under the Charitable Fundraising Act 1991
(a) Details of aggregate gross income and total expenses of fundraising appeals
2016
$
2015
$
A. Total cost of fundraising
25,849
-
B. Gross proceeds of fundraising
47,903
-
C. Net Surplus from fundraising
22,054
-
-
-
E. Total expenditure
1,045,954
-
F. Total income
967,014
-
A/B
54%
-
B/C
217%
-
D/E
-
-
D/F
-
-
D. Total cost of services
(b) RATIOS
The Responsible Entities (being the Directors) of the Company declare that:
1.
The financial statements and notes, as set out on pages 15-30:
(a)
are in accordance with the Australian Charities and Not-for-profits Commission Act 2012;
(b)
give a true and fair view of the financial position as at 31 December 2016 and performance for the year ended
on that date of the company;
(c)
comply with Australian Accounting Standards - Reduced Disclosure Requirements (including Australian
Accounting Standards Interpretations) of the Australian Accounting Standards Board; and
(d)
the provisions of the Charitable Fundraising Act (NSW) 1991 and the NSW Charitable Fundraising
Regulation 2015 have been complied with.
2.
In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts
as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
On behalf of the Directors
Michael Tidball
Chairperson
10th April 2017
30 The Song Company 2016
31
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF THE SONG COMPANY PTY LIMITED
ABN 27 001 577 377
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF THE SONG COMPANY PTY LIMITED
ABN 27 001 577 377
Report on the Audit of the Financial Report
Other Information
Qualified Opinion
The Responsible Entities of the Company are responsible for the other information. The other
information comprises the information included in the Company’s annual report for the year ended
31 December 2016, but does not include the financial report and our auditor’s report thereon.
We have audited the financial report of The Song Company Pty Limited (the Company), which
comprises the statement of financial position as at 31 December 2016, the statement of profit or loss
and other comprehensive income, statement of changes in equity and 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 Entities declaration.
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion
section of our report, the financial report of The Song Company Pty Limited is in accordance with
Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:
(a)
giving a true and fair view of the Company's financial position as at 31 December 2016 and of
its performance for the year ended on that date;
(b)
complying with Australian Accounting Standards - Reduced Disclosure Requirements and
Division 60 of the Australian Charities and Not-For-Profits Commission Regulation 2013;
(c)
the accounting and associated records have been properly kept during the year in
accordance with the Charitable Fundraising Act (NSW) 1991 and the NSW Charitable
Fundraising Regulation 2015.
(d)
money received as a result of fundraising appeals conducted during the year has been
properly accounted for and applied in accordance with the Charitable Fundraising Act (NSW)
1991 and the NSW Charitable Fundraising Regulation 2015.
Basis for Qualified Opinion
As is common with organisations of this type, it is not practical for The Song Company Pty Limited to
maintain an effective system of internal control over voluntary collections and donations and cash
received from performance activities until their initial entry into the accounting records. Accordingly,
our audit in relation to such funds was limited to amounts recorded.
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 the Entity in accordance with the ethical
requirements of the Australian Charities and Not-for-profits Commission Act 2012 and 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 believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
An independent New South Wales Partnership. ABN 17 795 780 962.
Level 22 MLC Centre, 19 Martin Place, Sydney NSW 2000
Liability limited by a scheme approved under Professional Standards Legislation
32 The Song Company 2016
32
Pitcher Partners is an association of independent firms
Melbourne | Sydney | Perth | Adelaide | Brisbane| Newcastle
An independent member of Baker Tilly International
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon. In connection with our audit of the financial
report, our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial report or our knowledge obtained in
the audit or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Responsibilities Entities’ Responsibility for the Financial Report
The Responsible Entities 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 – Reduced
Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act 2012 and
for such internal control as the responsible entities 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 Responsible Entities are responsible for assessing the ability of
the Company to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the responsible entities either intend
to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Responsible Entities of the Company are responsible for overseeing the Company’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial report.
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:
33
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF THE SONG COMPANY PTY LIMITED
ABN 27 001 577 377
•
•
•
•
•
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 the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s 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 cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease 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 Responsible Entities of the Company 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.
M A ALEXANDER
Partner
PITCHER PARTNERS
Sydney
10 April 2017
“...unflappably fluent, sensibly shading in
their dynamics, spellbindingly confident
in negotiating the composer’s rasping
dissonances.” (Clive O’Connell, Sydney
Morning Herald May 2016)
34
34 The Song Company 2016
35
36 The Song Company 2016