Shopfront Arts Co-op Annual Report 2018 by Shopfront Arts Co-op

2018 ANNUAL REPORT

TABLE OF CONTENTS

WHO WE ARE

THE SHOPFRONT TEAM

BOARD OF DIRECTORS STAFF TEAM SUPPORTERS

CHAIRS REPORT

EXECUTIVE DIRECTOR/CEO REPORT

CREATIVE DIRECTOR REPORT

2018 STATISTICAL SNAPSHOT

FINANCIALS

SHOPFRONT ARTS CO-OP IS THE HOME OF YOUTH ARTS. Shopfront stands as Sydney’s only cross-art form organisation led by and dedicated to the artistry of Young People. For over four decades, Shopfront has amplified the voices of Young People. Supported by practising, professional artists, our Young People make bold and ambitious works of creative expression. We are an inclusive community of artists sharing a common goal of making great art (and having a lot of fun along the way).

Acknowledgment We would like to acknowledge the Bediagal and Kameygal people of the D’harawal nation who are the traditional custodians of the land on which Shopfront is built. We pay our respects to those elders past and present, and to all emerging elders of the future.

Our artistic practice is co-operative. Our process of collaborative art making is social, political, and empowering. Our Young People are challenged to consider their place in the world and respond to it through art of all forms. Working with established artists, our Young People experience art as valued creators, developing critical thinking and a lifelong love of the arts. Emerging and early career artists at Shopfront experience unprecedented access to artistic career opportunities, developing their creative practice in a safe and supportive space. Our Young People represent a vibrant future for the arts in Australia as makers, innovators, and engaged audiences. Shopfront is indispensable to the ecosystem of the arts in Australia, and to the wider community. Our community extends beyond our muraled walls with our artist networks, co-produced works, and our socially engaged programs that dive into the heart of community social issues, working to resolve those issues through dialogue and artistic

2018 ANNUAL REPORT

thinking. Our quirky community is a welcome space for all, where every voice is valued. At Shopfront, our very structure puts our Young People at the heart of our art and decision making. Just like our artistic practice, our organisation is also co-operative. As a co-op we exist for and are directed by our members. All of our Shopfront Young People are our members, and this co-op structure means that our Young People determine the purpose and rules of our co-op. As members they are equally entitled to vote on core issues that shape the co-op as a whole. Shopfront is a platform for emerging arts leaders. And we, as an organisation, are leaders in youth advocacy and consultation. From our first members in 1976 who fundraised to buy our very own building with 50-hour acta-thons, and with government and community support, a legacy of shared purpose has continued. Being a member of Shopfront means you are part of something. You are responsible for something. You aren’t just one Young Person trying to shout above the noise. Together we are a powerful collective. As a not-for-profit in a competitive arts space, we are an underdog, but that doesn’t stop us from dreaming big. We champion acts of artistic bravery. We are acknowledged for this bravery through awards, recognition and support of arts bodies, and by the thousands of people who have at one time or another in the last four decades considered Shopfront to be their second home. As we expand and evolve, we will always seek to retain those qualities that make Shopfront unique in the hearts and minds of the young artists who have shared our community. As we strive to be the premier NSW destination for youth arts we won’t lose sight of our heritage as a grassroots creative hub, dreamt of and built by passionate Young People in South Sydney. Shopfront is theirs, it is ours, and in the future Shopfront will grow to belong to many more inspiring Young People.

SUPPORTERS

THE SHOPFRONT TEAM BOARD OF DIRECTORS

STAFF TEAM

Chair

Daniel Potter

Fiona Hulton

Creative Director

Deputy Chair

Natalie Rose

Nadia Lindop

Director of Young Artist Programs

Secretary

Lauren Scott-Young

Susan Doherty

Director of Socially Engaged Programs

Treasurer

Christie Woodhouse

Glenn Murray

Director of Young Audience Development

Directors

Valentina Corona

Buffy Montgomery Daniel Potter Michael Webb (until 26 May 2018) Philip Sansom Samantha Crome

Young Leader

Executive Director / CEO

Rowan Yeomans

2018 Donors Shopfront would like to thank the following generous donors for their contributions in 2018. Alice Williams Amanda Osbourne Anastasia Morris Andrew Harrison Anne Larkin Annemarie Grahl Annie Etheridge Arnab Ahmed Augusta Supple Bernice Ong Betsy Murray Carol Alonso Diaz Chris Dunstan Chris Moore Chris Ryan

Clare Grant Donna Taylor Elizabeth Hill Elizabeth Hristoforidis Elle Evangelista Eric Efstratiadis Fiona Egan Fiona Hulton Genah Karagiannis Glen Hutchinson Glenn Murray Hannah Strout Hien Dang Imogen Ross Jack Preston

Jennifer Attard John Hristoforidis Jonathon Street Katie Aghazarmian Kevin Ng Kristina Tito Lisa Ochiel Lorna Jakszewicz Matthew Massaria Melanie Carolan Michael Webb Michele Medway Nadia Lindop Pamela Amores Pauline Doyle

Sarah Miller Sharleen Ndlovu Sophie Florence Ward Steven Christie Susie Rugg Tahlee Leeson Therese Mack Traki Gotsis Victoria Green Viv Rosman Yana Taylor Ying Xu Zoe Coombs-Marr

With thanks to our Funding Partners

Marketing & Communications Manager Rowena Tuziak

Development Manager Cathy Nisbet

Book Keeper Siew Luke

Marketing & Communications Coordinator Hannah Goodwin

Admin & Systems Coordinator Nicole Pingon

Shopfront Arts Co-op would also like to thank our many presenting and project partners.

2018 ANNUAL REPORT

CHAIR’S REPORT The voices of our members of Shopfront rose higher than ever in 2018, with new creative work revealed, ideas and practices shared, and much-needed funds raised during another year of inspiring creativity and non-stop activity. As a youth-led arts co-operative, we believe that Young People have a say in everything we do, and this year was no different. We heard the voices of Young People from so many different walks of life; from inside the human body in our Member Production of Organs! to inside a steel container as we sweated and danced during Ten Minute Dance Parties. We celebrated young artists and their voices at Kogarah Town Square during Sunset Square and we listened and gave feedback to Young People’s ideas during the Member Scratch Nights. We explored leadership through the eyes of Young People in The Pecking Order, and we saw our future arts leaders produce work in ArtsLab. This is just the surface of what our Young People had to say, loudly and proudly. They said it in theatres, at festivals, on the street, in classrooms, in parks and on playgrounds. They said it in our workshops, during our Socially Engaged Programs, during production performances, in masterclasses and in feedback polls. We’re known for our daring, adventurous and socially relevant work with Young People across Australia, and 2018 proved yet again why that work is so important. We also undertook some ambitious fundraising to see our building works come to fruition, and with the combined efforts of members and staff of Shopfront, our dreams of new facilities will soon be

a reality. The effort behind this work was enormous and will serve Shopfront well into the future. Our incredible team also officially launched Playwave with much fanfare and success, ensuring Young People can access the arts as both participants and audience members. Our many successes in 2018 were underpinned by hard work that is much appreciated by all. I’d like to thank the Young People of Shopfront. Your imagination and drive inspires the Board, the staff, the alumni, and volunteers of Shopfront to continue what we all do. I’d also like to thank our artistic partners and all of the collaborators who make our successes possible, along with our key funding partners; Australia Council for the Arts, Create NSW, NSW Department of Family and Community Services, Georges River, Bayside, City of Sydney and Sutherland Shire Councils and those organisations and people who have given their time or financial support to see Shopfront thrive. It is a true privilege to be the Chair, and to work with the committed staff of Shopfront who tirelessly support the vision of our Young People. I’d like to thank my colleagues on the Board for their time and effort – particularly Michael Webb who resigned from the Board in 2018 having served for three years as a Board member, and many years before that as a committed alumnus. I look forward to the next year with excitement. I will see you around Shopfront soon.

Fiona Hulton Chair

Sydney Festival 2018 - 10 Minute Dance Parties by JOF with Shopfront and Playwave curators and performers © Emily Bollington

2018 ANNUAL REPORT

EXECUTIVE DIRECTOR / CEO REPORT

CREATIVE DIRECTOR REPORT

SHOPFRONT ARTS CO-OP: 2018. BLUR.

In 2018 under the guidance of a new artistic team comprised of Natalie Rose, Lauren Scott-Young, Christie Woodhouse and Young Leader Rowan Yeomans, Shopfront’s Artistic Program has been dedicated to supporting Young People and emerging artists to ensure they have a voice in all we create. This was

Before sitting down to write this, I really had to think – what happened in 2018? So to help me along, I started making a list. Within a few minutes it became apparent why 2018 was such a blur… it was HUGE

Playwave had its official launch and its first birthday, Lauren Scott-Young and Christie Woodhouse joined the creative team, Cathy Nisbet joined us as Development Manager, Nicole Pingon joined us as Admin & Systems Coordinator, Siew Luke joined us as Book Keeper! Nicole wowed us with Members Show Organs!; then there was the majesty of The Pecking Order; all of the works that came out of Artslab: Break Glass in Case of Emergency; I’m still not sure how they did it, but those Young Members who were involved in The Exchange Project who made a work between two groups who didn’t meet in person until the show; Sunset Square; Scratch Nights; thousands of early career artists making work through Open Shop; The Harness Ensemble in development for their new work; Continuous Lines… am I at the end of March yet? There was just too much to keep up. What amazes me the most with every year that I have been at Shopfront is the community connectedness and social engagement shown by our Young People, putting on events such as the Schools’ Refugee Forum and creating works with a social focus that are full of vibrancy and vision. It is a privilege experienced by everyone who works at Shopfront to be able to help our Young Members facilitate their action through creative practice, and it fills me with hope for the future; If climate change leaves us with anything, it’ll be in good hands. A particular highlight for me in 2018 was seeing Rowan Yeomans, our Young Leader fully embrace the role and become an even more important part of

ArtsLab - BREAK GLASS (IN CASE OF EMERGENCY) © Tim da-Rin

our community and team. Rowan’s tenure as Young Leader finishes up in mid-2019 and we will be sad to see them go, but excited to see just what they do next; and I’m looking forward to one day being able to brag to my kids that “I knew them once!”

partnered with another key focus area of nurturing and sustaining new and existing partnerships with leading arts organisations such as Blacktown Arts Centre, PYT Fairfield and ATYP as we strive to create sustainable future artists and global citizens that will contribute to the vibrancy of our arts sector. Again in 2018, we have experienced growth as the home of youth arts and have continued our support of emerging artists, offering an unprecedented amount of opportunities to our community. Our commitment is still to support the unique voices of our members, to let their imaginations be realised in all we create and to make work that is of high quality, that is relevant, cultural, social and political, work that is not always seen on Australia’s mainstages.

Shopfront has celebrated many wins and exciting arts projects throughout 2018, the first being Shopfront’s Playwave initiative and it’s launch with Sydney Festival. Playwave provides 15-20 year olds with the opportunity to experience the best arts and culture that Sydney has to offer by breaking down the barriers that often deter Young People from the arts… barriers like old people, expensive tickets, and safety. With over 40 leading arts organisations engaged as partners in this exciting new initiative, Playwave has, and will continue to, provide the opportunity to improve and ensure the future of our Young People’s engagements in arts and culture in our city. Shopfront was excited to collaborate with internationally renowned artist Joseph O’Farrell on 10 minute dance parties, allowing Young People to run around-the-clock immersive performance experiences for the audiences of the Sydney Festival. We were also successful in remounting two works in 2018 at Casula Powerhouse’s annual Way Out West Festival, seeing the award winning Dignity of Risk by the Harness Ensemble and another opportunity for 10 minute dance parties to reach new audiences.

There is also the new Shopfront brand, which we were hard at work developing in 2018, and believe it or not, lots of work has happened on our new building in 2018 too. While we haven’t laid a single brick yet, we have raised most of the outstanding money, tendered the project, selected a builder, negotiated contracts, cleared local council permissions and are just a few breaths away from actually starting the building part of the project in Mid-2019. None of the work our Young People make would be possible without the support of the funding bodies, supporters and donors who consistently support Shopfront’s work. Thankyou. Looking forward and thinking about what has already happened at the beginning of 2019, I can say that I’m excited to write this report again next year, because there is already so much to tell. I’ll sign off by saying that Nat and I both feel so lucky to lead the staff team here, and to be led by the vision and creativity of our Young People. Well done 2018, let’s see what the home of youth arts can bring in 2019.

Shopfront’s Continuous Lines © Nicole Pingon

Daniel Potter Executive Director / CEO

2018 ANNUAL REPORT

CREATIVE DIRECTOR REPORT CONTINUED Shopfront took over 107 Projects in January for the week-long festival, Voices and Visions, focusing on the celebration of Shopfront Art. This multidiscipline festival put Young People in the driver’s seat as the festival curators and included visual arts, installation, film work, soundscapes and short work nights bringing together our past and current young and emerging artists in one big shebang! Four new exciting works were developed by our 2017/2018 ArtsLab artists, Christie Woodhouse, Emily Crocker, Jay Bailey, Camilla Turnbull and Charles O’Grady, and they were premiered in the festival ArtsLab – Break Glass (in case of emergency). As well as showcasing the theatre, installation and spoken word performances of the artists, this festival also offered opportunities for our emerging artist audiences to meet and greet with industry professionals, and engage the audience within the artist’s various works. In 2018 the opportunities for our emerging artists tripled, offering more free space to support developments, offering more mentoring, arts masterclasses and networking opportunities resulting in the highest number of applications we have ever seen for the next intake of ArtsLab artists. 2018 saw our ensemble programs reach new heights with our Junior and Senior Ensembles collaborating with established and emerging practising artists to create script based theatre productions: The Magnificent Terrible Hottie Avery and The Pecking Order. These productions saw our Young People’s voices at the centre of the works exploring gender, identify, democracy and popularity. They showed us that these Young People are the leaders of our future… or maybe they are our leaders already! Our strong collaborations with arts organisations were developed and nurtured in 2018 to ensure we can continue to contribute and assure the growth and development of our vibrant art sector. Shopfront was invited to pitch at Arts on Tour’s Salon initiative, placing Shopfront in the minds of industry venues and organisations. Shopfront’s Young People joined forces with the Young People of Blacktown Arts to create The Exchange Project led by Natalie Rose and

Chris Dunstan. Two groups of Young People collaborated on a new experimental performance work, without meeting in person until the production. Combining film, sound and installation components, these Young People came together for a site specific production in a Mt Druitt car park as part of the annual FUNPARK Festival. The Members Show initiative was our sell-out show for the year, with Young Member Nicole Pingon bringing audiences together for her directorial debut Organs! An exquisite piece of theatre investigating the question - what if our insides could talk? I’m sure we’ve all considered that at one point or another?!! The audience entering through a fabric womb like set, exiting to see an appendix presented on a table, then had Nicole’s parents serve them snacks and treats. The success of this show increased the number of pitches we received for the 2019 Members Show and due to tied votes, 2019 will see two Members Shows premiere. We have reached far and wide in the community hosting school students to work with professional artists creating art works that will sustain long into the future. Students at Lurnea High School collaborated with artist David Capra to make a welcoming and inclusive café space. Students at local schools worked with Kevin Ng, Maria White and Effy Smith collaborating to make film and visual arts pieces. In October 2018, Shopfront took over Kogarah Town Square to promote all Shopfront has to offer, including film, visual arts, art stalls and a short works event that saw all of our members far and wide come together to empower art and the Young People as the artists of tomorrow. In 2019, Shopfront will continue to grow from strength to strength. Developing and creating new work that will stand alongside our industries best, nurturing existing and new relationships to ensure collaboration into 2020 and beyond, and be the creative hub of South Sydney, the home of youth arts.

Natalie Rose, Creative Director

Shopfront Member Production - Organs! © Tim da-Rin

2018 ANNUAL REPORT

2018 STATISTICAL SNAPSHOT NUMBER OF YOUNG PEOPLE ENGAGED IN PROGRAMS AND PROJECTS 2,288 TOTAL AUDIENCE FOR EXHIBITIONS, PERFORMANCES AND BROADCAST 11,076

NUMBER OF EMERGING ARTISTS SUPPORTED 151 NUMBER OF EMERGING ARTISTS EMPLOYED 48

NUMBER OF CREATIVE AND SKILLS DEVELOPMENT WORKSHOP SESSIONS HELD FOR YOUNG PEOPLE AND EMERGING ARTISTS 283

NUMBER OF NEW WORKS PREMIERED 23 NUMBER OF NEW WORKS SUPPORTED 45 NUMBER OF WORKS TOURED 4

Shopfront Junior Ensemble - The Pecking Order Â© Tim da-Rin

2018 ANNUAL REPORT

FINANCIALS INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2018

2018 $

2017 $

886,640

814,181

776,176

815,137

110,464

(956)

Note Revenue Expenses excluding Finance Costs Profit Attributable to Members of the Entity

Shopfront Senior Ensemble – The Magnificent Terrible Hottie Avery © Tim da-Rin

The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached Audit Report

2018 ANNUAL REPORT

FINANCIALS BALANCE SHEET AS AT 31 DECEMBER 2018

FINANCIALS CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2018

2018 $

Note

Current Assets Cash and Cash Equivalents Trade and Other Receivables

593,715

379,509

14,691

13,036

5,875

14,085

614,281

406,630

Total Current Assets

2,785,001

2,631,538

Total Non-Current Assets

2,785,001

2,631,538

Total Assets

3,399,282

3,038,168

Property, Plant and Equipment

2017 $

Grant Receipts

948,736

778,752

Other Operating Receipts

133,318

151,524

(691,545)

(776,972)

Cash Flows from Operating Activities

Other Current Assets

Non-Current Assets

2018 $

2017 $

Payments to Suppliers & Employees

Interest Received

3,925

Net Cash Provided by Operating Activities

394,434

Cash Flows from Investing Activities

Payments for Property, Plant & Equipment Current Liabilities Trade and Other Payables Short Term Provisions

119,374

54,181

25,610

30,353

Other Accruals

476,541

286,341

Total Current Liabilities

621,525

370,875

153,304

(180,228)

(161,378)

Proceeds from Disposal of Fixed Asset

Interest Received

7,228

Net Cash Used In Investing Activities

(180,228)

(154,150)

Cash Flows from Financing Activities Total Liabilities

Net Assets Equity Reserves

621,525

370,875

2,777,757

2,667,293

2,100,000

677,757

567,293

2,777,757

2,667,293

Retained Profits Total Equity

The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached Audit Report

Proceeds of Borrowings

Repayment of Borrowings

Net Cash Used in Financing Activities

Net Increase/(Decrease) In Cash Held

214,206

(846)

Cash at Beginning of Year

379,509

380,355

Cash at End of Year

593,715

379,509

The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached Audit Report

2018 ANNUAL REPORT

FINANCIALS STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2018

FINANCIALS PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2018 Note

2018 $

2017 $

758,535

588,929

Income 2018 $ Opening Balance

2,667,293

2017 $ 2,668,249

Retained Earnings Profit Attributable to Members

Closing Balance

Grants Performance & Community Delivery

34,218

45,430

Other Funding

8,000

34,571

Other Income

81,962

138,023

Interest Received

110,464

(956)

110,464

(956)

2,777,757

2,667,293

Reconciliation of Retained Earnings

3,925

7,228

886,640

814,181

133,224

187,606

Advertising

13,743

34,300

Auditorâ&#x20AC;&#x2122;s Remuneration

4,000

Expenditure Project Costs

Bad Debts Written Off

480

1,167

1,453

1,342

1,301

Computer Expenses

1,823

11,995

Consultancy Fees

3,700

3,400

26,765

17,838

2,607

7,860

820

3,183

Bank Charges

Opening Balance

567,293

568,249

Profit Attributable to Members

110,464

(956)

Closing Balance

677,757

567,293

Cleaning

Depreciation Depreciation - Immediate Write-off Fees & Permits

Reconciliation of Reserves

Filing Fees

Asset Revaluation Reserve

Fines & Penalties

176

254

Opening Balance for the year

2,100,000

Holiday Pay Provision Adjustment

(4,743)

18,308

Closing Balance

2,100,000

Insurance

2,777,757

2,667,293

Total Equity

25,549

15,676

Light & Power

5,724

5,540

Printing & Stationery

8,632

13,756

Rates & Taxes

9,463

9,106

Repairs & Maintenance

2,621

(10,682)

472,561

410,239

5,565

7,166

930

5,517

Salaries Staff Training & Welfare Staff Recruitment Costs Subscriptions

2,667

1,752

49,999

49,045

Telephone

3,021

1,925

Travelling Expenses

4,924

13,943

776,176

815,137

110,464

(956)

Superannuation Contributions

Profit before Income Tax

The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached Audit Report

2018 ANNUAL REPORT

FINANCIALS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2018

The financial statements cover Shopfront Arts Co-Operative Limited as an individual entity. Shopfront Arts Co-Operative Limited is a not for profit Co-operative incorporated in NSW under the Co-operative Act 1992, as well as the Co-operatives (Adoption of National Law) Act 2012 (NSW) and governed by the Australian Charities and Not-forProfits Commission Act 2012 (‘the Act’).

presented below and are consistent with prior reporting periods unless otherwise stated.

d. Property, Plant and Equipment

Rendering of Services

Plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment of losses.

Revenue in relation to rendering of services is recognised depending on whether the outcome of the services can be estimated reliably. If the outcome can be estimated reliably then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period.

The functional and presentation currency of Shopfront Arts Co-Operative Limited is Australian dollars.

b. Provisions

1. Basis of Preparation In the opinion of the Board of Directors, the Cooperative is not a reporting entity since there are unlikely to exist users of the financial report who are not able to command the preparation of reports tailored so as to satisfy specifically all of their information needs. These special purpose financial statements have been prepared to meet the reporting requirements of the Act. The financial statements have been prepared in accordance with the recognition and measurement requirements of the Australian Accounting Standards and Accounting Interpretations, and the disclosure requirements of AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors and AASB 1054 Australian Additional Disclosures. The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non current assets, financial assets and financial liabilities. Significant accounting policies adopted in the preparation of these financial statements are

2. Summary of Significant Accounting Policies a. Cash and Cash Equivalents Cash and cash equivalents comprises of cash on hand, demand deposits and short term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Provisions are recognised when the co-operative has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. c. Employee Benefits Provision is made for the Co-operative’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cash flows are discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that match the expected timing of cash flows. Changes in the measurement of the liability are recognised in profit or loss.

These notes should be read in conjunction with the attached Audit Report

Plant and equipment is depreciated on a straight line basis over the assets useful life to the Co-operative, commencing when the asset is ready for use. e. Revenue and Other Income Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the co-operative and specific criteria relating to the type of revenue as noted below, has been satisfied. Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates. All revenue is stated net of the amount of goods and services tax (GST). Sale of Goods Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods. Interest Revenue

If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses recognised that are recoverable. f. Goods and Services Tax (GST) Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payable are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the assets and liabilities statement. g. Director’s Remuneration The Directors receive no remuneration for their services to the Co-operative, with the exception of the Chief Executive Officer, who receives remuneration for duties as a staff member of the Cooperative, but no remuneration as a board member.

Interest is recognised using the effective interest method.

These notes should be read in conjunction with the attached Audit Report

2018 ANNUAL REPORT

FINANCIALS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2018

3. Profit 2018 $

201 7 $

5. Cash and Cash Equivalents 2018 $

2017 $

250

(205)

341

(26)

WBC Operating Account

123,932

16,330

WBC Cash Management Account

461,316

227,624

3,095

210

ING Term Deposit

135,090

ING Savings Account

4,955

593,715

379,509

593,715

379,509

Expenses 522,560

459,284

Depreciation and Amortisation Expenses

29,372

25,698

Advertising

13,743

34,300

1,167

1,453

25,549

15,676

Light & Power

5,724

5,540

Printing & Stationery

8,632

13,756

Rates & Taxes

9,463

9,106

Repairs & Maintenance

2,621

(10,682)

Telephone

3,021

1,925

154,324

259,081

776,176

815,137

Employee Benefits Expense

Bank Charges Insurance

Other Expenses

4. Profit for the Year

Deposits Deposits at Call Deposits Held Petty Cash Imprest

WBC Donations Account

Bendigo Bank

Reconciliation of Cash

Profit before income tax expense from continuing operations

Cash and Cash Equivalents

includes the following specific expenses:

593,715

379,509

Charging as Expense Movements in Provisions

6. Cash Flow Information

Depreciation

Reconciliation of Cash Flow from Operations with Profit after Income Tax

- Depreciation of Property, Plant and Equipment - Property Improvement

26,765

17,838

2,607

7,860

29,372

25,698

Other Provisions:

Bad & Doubtful Debts:- Bad debts written off

Depreciation & Losses on Disposal

110,464

(956)

26,765

17,838

6,555

34,607

7,481

255,393

93,026

(4,743)

1,308

Changes in Assets & Liabilities

- Employee Benefits Net Expenses Resulting from Movement in Provisions

Operating Profit after Tax

(4,743)

24,629

18,308

44,006

480

Remuneration of the Auditor:-

4,000

- Audit & review of financial reports

4,000

Decrease/(Increase) in receivables Decrease/(Increase) in other assets (Decrease)/Increase in creditors & accruals (Decrease)/Increase in Provisions

Net Operating Cash Flows

394,434

153,304

These notes should be read in conjunction with the attached Audit Report

2018 ANNUAL REPORT

FINANCIALS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2018

7. Trade and Other Receivables

9. Trade and Other Payables 2018 $

2017 $

Current Trade Debtors

Total Trade and Other Receivables

2018 $

2017 $

Current 14,691

13,036

Trade Creditors

35,925

22,204

14,691

13,036

Other Creditors

7,867

7,358

Client Funds Held

23,310

Provision for GST

52,272

24,619

119,374

54,181

119,374

54,181

25,610

30,353

25,610

30,353

2,100,000

14,691

13,036

8. Property, Plant and Equipment

Total Trade and Other Payables

Land and Buildings Freehold Land Land Revaluation

1,760,000

442,800

Current

442,800

Provision for Holiday Pay

556,152

375,924

48,315

31,627

507,837

344,297

2,710,637

2,547,097

10. Provisions

Property Improvements Property Improvements Less Accumulated Depreciation & Impairment

Total Land and Buildings

11. Reserves Asset Revaluation Reserve

Plant and Equipment Office Furniture & Equipment Less Accumulated Depreciation & Impairment

Total Plant and Equipment

Total Property, Plant and Equipment

165,565

91,201

81,124

74,364

84,441

74,364

84,441

2,785,001

2,631,538

These notes should be read in conjunction with the attached Audit Report

2018 ANNUAL REPORT

FINANCIALS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2018

FINANCIALS DIRECTORS' REPORT 31 DECEMBER 2018 Shopfront Arts Co-Operative Limited 14 021 769 064

12. Subsequent Events

Directors' Report 31 December 2018

The Co-operative has been approved to develop the property held at 88 Carlton Pde, Carlton. The development was expected to be underway during the 2018 financial year but has been delayed into the subsequent year.

The Directors present their report on Shopfront Arts Co-Operative Limited for the financial year ended 31 December 2018. Information on Directors

The Board has signed a letter of offer from Social Enterprise Finance Australia for a loan of

The names of each person who has been a Director during the year and to the date of this report are: Fiona Hulton Glenn Murray Nadia Lindop Daniel Potter Tess Montgomery Philip Sansom Susan Doherty Samantha Crome Michael Webb – resigned May 2018

$620,000. With current government funding commitments, this project is not expected to be at the detriment of the ongoing community involvement of Shopfront Arts Co-Operative Limited. The property development is expected to improve the services currently offered and produce more avenues of community involvement. The Board will continue to monitor the progress of this project throughout the 2019 financial year which is expected to be completed mid-way through the financial year.

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Principal Activities The principal activities of the entity during the financial year were:

13. Recognition of Grant Monies

Art projects for young people Welfare of youth community members

2018 $

2017 $

105,000

Create NSW – Project Funding

25,000

10,000

NSW Family & Community Services – Operating

89,950

65,029

4,965

3,787

Australia Council – Four Year Funding

252,500

250,000

Department of Infrastructure - NSRF

111,620

Create NSW – Capital Fund

60,000

100,500

155,113

9,000

758,535

588,929

Arts NSW – Annual Program

NSW Family & Community Services – Non-recurring

Local Council Funding Club Grants

No significant changes in the nature of the Co-operative's activity occurred during the financial year. Operating Results The profit of the Co-operative after providing for income tax amounted to $110,464. Review of Operations A review of the operations of the Co-operative during the financial year and the results of those operations are as follows: The Co-operative’s operations during the year performed as expected in the opinion of the Directors. Significant Changes in State of Affairs There have been no significant changes in the state of affairs of the Co-operative during the financial year. Events After the Reporting Date The Directors have signed letter of offer from Social Enterprise Finance Australia to assist in funding the core property development at 88 Carlton Pde, Carlton. The development has been started as of the Audit date with the tender process now complete it is expected to be finalised in the 2019 financial year.

These notes should be read in conjunction with the attached Audit Report

2018 ANNUAL REPORT

FINANCIALS AUDITORS' REPORT 31 DECEMBER 2018

FINANCIALS DIRECTORS' REPORT 31 DECEMBER 2018 Shopfront Arts Co-Operative Limited

Shopfront Arts Co-Operative Limited

Directors' Report 31 December 2018

Independent Auditor's Report to the Members of Shopfront Arts Co-Operative Limited

14 021 769 064

Environmental Issues The Co-operativeâ&#x20AC;&#x2122;s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory of Australia. Indemnification and Insurance of Officers and Auditors No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of the Shopfront Arts Co-Operative Limited.

Signed in accordance with a resolution of the Board of Directors:

Fiona Hulton Director

Nadia Lindop Director

Dated 3 May 2019

Glenn Murray Director

Daniel Potter Director

Report on the Financial Report We have audited the accompanying financial report of Shopfront Arts Co-Operative Limited (the entity), which comprises the balance sheet as at 31 December 2018, and the income statement for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Directorsâ&#x20AC;&#x2122; declaration. Directors' Responsibility for the Financial Report The Directors of the entity is responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Co-operatives Act 1992 and for such internal control as the Directors 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 Note 1, the Directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards. Auditorâ&#x20AC;&#x2122;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 control 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.

2018 ANNUAL REPORT

FINANCIALS AUDITORS' REPORT 31 DECEMBER 2018 Opinion In our opinion: a.

the financial report of Shopfront Arts Co-Operative Limited is in accordance with the Co-operatives Act 1992 as well as the Co-operatives (Adoption of National Law) Act 2012 (NSW), including: i.

giving a true and fair view of the entity’s financial position as at 31 December 2018 and of its performance for the year ended on that date;

and ii. complying with Australian Accounting Standards and the Co-operatives Act 1992 as well as the Co-operatives (Adoption of National Law) Act 2012 (NSW); and iii. complying with Australian Charities and Not-for-profits Commission Act 2012. b.

the financial report also complies with International Financial Reporting Standards as disclosed in Notes 1 & 2.

Andrew Finney On behalf of Finncorp Auditors Pty Ltd Auditor Number 438643 Suite 7, 2-4 Northumberland Dr, Caringbah 2229 Dated this 3rd day of May 2019

2018 ANNUAL REPORT

The home of youth arts

www.shopfront.org.au hello@shopfront.org.au +61 02 9588 3948 88 Carlton Parade, Carlton NSW 2218