ANNUAL REPORT 2019
TABLE OF CONTENTS
WHO WE ARE
Who we are
this page
What we do
page 1
People
page 2
Supporters
page 3
A message from our Young Leader
page 4
Chair’s report
page 5
Executive Director & Creative Director’s report
page 6
2019 Stats
page 8
Building update
page 10
Testimonials
page 12
Financials
page 14
Acknowledgment We would like to acknowledge the Bediagal and Kameygal people of the Eora nation who are the traditional custodians of the land on which Shopfront is built. We pay our respects to those elders both past and present. Sovereignty of this land was never given, sold or ceded. Always Was, Always Will Be.
COVER Cake by Senior Ensemble. Photo © Tim da-Rin for Shopfront Arts Co-Op OPPOSITE PAGE Lurnea Storytime Socially Engaged Program © Shopfront Arts Co-Op
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). 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 needs, working in partnership through dialogue and artistic thinking. 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.
WHAT WE DO In 2019 Shopfront engaged with Young People 11,474 times through our suite of programs and showcased 41 new works to 7,148 audience members across Sydney. We collaborate with leading artists and arts organisations to create and present new work.
WORKSHOPS Offering Young People aged 8-26 workshops across multiple art-forms. Our major workshop focus is Drama, Film, Acting for Stage and Technical Theatre Production.
ENSEMBLES Each year Shopfront creates new Australian theatre work led by our ensemble members in collaboration with practicing, professional artists. Junior Ensemble – ages 8-14 Senior Ensemble – ages 15-19 Harness Ensemble – comprised of emerging artists with and without disability.
PLAYWAVE Playwave is an initiative created by Shopfront Arts Co-op with the support of the City of Sydney, to engage new young audiences for the Arts. A program for Young People aged 15–20, Shopfront aims to improve access to arts and culture across Sydney and beyond by removing barriers and creating new opportunities to connect with artists, their stories and our venues. This program provides an exclusive online community for Young People to engage with the stories of our time in a way that feels familiar.
EMERGING ARTISTS Shopfront supports the creation of new work by emerging artists through our Scratch Nights, Open Shop, Members Production initiative and ArtsLab residency programs. Providing emerging artists with free rehearsal space, industry mentors, a production budget and season.
SOCIALLY ENGAGED PROJECTS These responsive multi art-form programs are delivered in schools and the community, and work to promote social change by placing artistic practice and creative expression at the heart of solution finding for community issues. This program works primarily with Young People from Culturally and Linguistically Diverse backgrounds, Young People who are at risk of disengaging from their schools or communities, and newly arrived Young People.
playwave.com.au
TAILORED WORKSHOPS We provide disability services with specially catered multi art-form workshops for their participants focusing on building confidence, social skills, spatial awareness and communication.
ANNUAL REPORT 2019
1
PEOPLE SHOPFRONT STAFF TEAM
SHOPFRONT BOARD OF DIRECTORS
Young Leader
Chairperson
Carlee Heise
Fiona Hulton
Executive Director / CEO
Deputy Chairperson
Daniel Potter
Nadia Lindop
Creative Director
Secretary
Natalie Rose
Susan Doherty
Director of Young Artist Programs
Treasurer
Lauren Scott-Young
Glenn Murray
Director of Young Audience Development
Directors
Valentina Corona
Daniel Potter
Development Manager Cathy Nisbet Marketing and Communications Manager Rowena Tuziak Production and Operations Manager Tyler Fitzpatrick Book Keeper Siew Luke Admin and Systems Co-ordinator Nicole Pingon
Samantha Crome Tess (Buffy) Montgomery Philip Sansom Tom Doyle (from 25th May 2019 – 20th January 2020)
SUPPORTERS We are so grateful to all of our incredible donors. Thank you for supporting Shopfront, thank you for supporting the hopes and dreams of Young People and thank you for ensuring Young People will always have a safe and welcoming space to flourish. If you would like to become a supporter please contact Daniel Potter ceo@shopfront.org.au
Funding Partners & Donors Shopfront would like to acknowledge the generous and ongoing support of our core funding bodies, the Australia Council for the Arts, and the NSW state government through Create NSW and the Department of Communities and Justice. Our local government supporters, Bayside Council, Georges River Council and Sutherland Shire Council.
Shopfront Arts Co-op would also like to thank our many presenting and project partners.
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3
A MESSAGE FROM OUR YOUNG LEADER
In writing this, I have had the joy of looking back over my first year working as a core staff member at Shopfront. 2019 began with the completion of my ArtsLab residency and the debut of my first original show. Shortly after this I applied for the role of Young Leader and was delighted to be offered it. I had the pleasure of working closely with Rowan as they handed the reins over to me and I absorbed as much knowledge from them as I could. Often when I introduce myself as Shopfront’s Young Leader, I follow this up with a comment like ‘my job is as ambiguous and fun as it sounds.’ I knew when I applied for the role that I would act as a Youth voice embedded into the organisation and as a liaison between our Young People and the ‘grown ups’ in the office. After working as Shopfront’s Young Leader for a year now I can say that I have done those things and so much more. My job is colourful and unpredictable and joyful. In my role I get to connect with all of the Young People and Emerging Artists who engage with Shopfront and open lines of communication for them to share wild ideas, access support when they need it and ask for the kinds of programs THEY want.
This year I facilitated a number of workshops at Shopfront and in local schools. A highlight was a Young Person aged 8 performing a caricature of a ‘Dad’, wearing a dressing gown over a suit and drinking a coffee at 10pm. During our monthly Scratch Nights for Emerging Artists a supportive and creative community gathered to connect and share ideas. One particular Scratch Night artist had the whole group sprawled across the floor of the theatre drawing self-portraits. Shopfront Fest at 107 was a personal highlight as an event that saw our Young People and Emerging Artists performing at the same event, sharing their art with each other. Every day that I come to work I am inspired by the Young and Emerging Artists we have in our community. I am so grateful to be in a position to provide a platform for these important and diverse young voices. Our Young People are so smart, so creative and so passionate. Shopfront has empowered me as an early career artist and I feel so lucky to be able to lift others up through my work with this organisation.
Carlee Heise Shopfront Young Leader Spider in My Soup (at ArtsLab Uncanned) by Nicole Pingon. Photo © Tim da-Rin for Shopfront Arts Co-Op
CHAIR’S REPORT What a huge year 2019 has been for Shopfront. We celebrated the ideas, creativity and visions of our Young People, saw our ambitious building renovation dream become a reality and welcomed new voices to our Shopfront community. As the home of youth arts, Shopfront continues to be led by and dedicated to the artistry of Young People. In a time of great growth for the organisation, we continue to hold and take inspiration from the voices of our Young People at the centre of what we do. In 2019, we saw our beloved building and facilities undergo huge renovations. Even as our building was being renovated, that didn’t stop our Shopfront community thriving, and their creativity flourishing. New visions and new works emerged across various art forms, celebrating the diverse ideas, perspectives and experiences of our Young People. We saw our Harness Ensemble create and tour the hilarious and thought-provoking show The Experts to Sydney Fringe Festival and Crack Theatre Festival. For the first time, we had two Members Productions, Pretty Fly for a Dead Guy and Behind The Scenes, and another fantastic season of works with ArtsLab: Uncanned. Our Junior and Senior Ensemble never fail to astound us with their brilliant and thoughtful creations. We continued to amplify the voices of our Young People through our termly workshop programs, and delivered in-school workshops with primary and high school students across Sydney. Our Open Shop Program and monthly Scratch Nights allowed our members space and opportunities to develop ideas, create, and receive feedback from the Shopfront community.
Shopfront contributes to the ecosystem of the arts in our community, and Australia more broadly. We continue to hold space for our Young People, foster community and create pathways to a sustainable future of the arts in Australia. I’d like to thank the Young People of Shopfront. Your passion, imagination and resilience inspires the Board, the staff, the alumni, and volunteers of Shopfront to continue what we 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 Communities and Justice, Georges River, Bayside, City of Sydney and Sutherland Shire Councils and those organizations and people who have given their time or financial support to see Shopfront thrive. It continues to be a great privilege to be the Chair, and to work with the hardworking staff of Shopfront. Their commitment to supporting and celebrating the vision of our Young People, and to ensuring the future of the arts in Australia is much appreciated by all. I’d also like to thank my colleagues on the Board for their time and commitment in supporting Shopfront over this year. I look forward to the upcoming year with great excitement. I will see you around the brand new Shopfront building soon.
Fiona Hulton Chair
Across 2019, Shopfront Young People explored their creativity not just in our building, but in schools and across the city; showcasing their work from the Hurstville Civic Centre, 107 Projects in Redfern and the Crack Theatre Festival in Newcastle. Playwave continued to ensure Young People have access to arts and culture in Sydney as audience members and creators through the Wave Changers initiative, Playwave Experiences, discounted tickets and a thriving online community.
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EXECUTIVE DIRECTOR & CREATIVE DIRECTOR’S REPORT Doesn’t 2019 seem so long ago?! Weren’t they the glory days, when theatre and art existed and people could gather face-to-face. Now more than ever, it is important to celebrate our wins and the wonderful artistic creations of our Young People. 2019 was the year where Shopfront solidified that we are the home of youth arts! Welcoming and celebrating all Young People regardless of ability, perceived skill, social circumstance, gender and cultural background. We continued to live our commitment to supporting our Young People, our future artists and ensuring that the arts is accessible and inclusive for all. In 2019 we focused on development. Building development, relationship development and artistic development; strengthening Shopfront as the premier youth arts facility of NSW and a leader in this space.
We reached new Young People locally and further afield, sharing Shopfront’s ethos to empower Young People to have their voices heard. We facilitated new weekly workshops at Carlton South Primary School and their students attended a special matinee performance of our Junior Ensemble’s production The Unknown. Film artists Solomon Thomas and James Brown worked with IEC students at Lurnea High School to create a short film about connection to home. Artists collaborated with students at Moorefields Girls High School and James Cook Boys Technology High School to create a series of short films exploring 8 Australian laws that are often misunderstood by newly arrived Young People, this project culminated in a new program New Home New Laws in partnership with Enough is Enough, focusing on educating and empowering newly arrived Young People in IEC schools around NSW. The Moorefields and James Cook students continued their engagement with Shopfront, beginning another project Wave Changers which saw them create short films exploring their identity and connection to place. These films were showcased at Casula Powerhouse Arts Centre at A Place at the Table a performative experience celebrating cultural diversity through performance and food. 2019 saw our Young People and emerging artists create exceptional performance work that stands alongside our industry’s best. Our Junior Ensemble, Young People aged 8-14 collaborated with theatre-makers Bonnie Cowan and Tegan Arazny, creating the visually stunning work The Unknown. In 2019, Shopfront supported two Members Productions, Pretty Fly for a Dead Guy written by Lily Hensby and mentored by Declan Greene; and Behind The Scenes created by Riana HeadToussiant, mentored by Nat Randall and Malcolm Whittaker. These two productions displayed the diversity and unique voices of our members and could not have been more different. One explored feminism in a zombie apocalypse and the other explored the representation of marginalised communities within the Australian arts and media. Our emerging artist programs showcased the vibrant future of Australian arts through our ArtsLab, Scratch Nights, Open Shop and Harness Ensemble programs. Our 2018/19 ArtsLab Uncanned artists presented 4 new works in a week-long festival in January 2019. This festival involved networking and panel events for emerging artists to connect with the industry’s best representatives
in a friendly and supportive setting. The works created by ArtsLab 2019 artists will be seen by new audiences at Belvoir 25a, 505 and Bondi Feast in 2020. Shopfront’s Harness Ensemble devised their second full length work The Experts supported by Georges River Council. This work explored the idea of ignorance, can anyone really know it all? Is it best to just fake it until you make it? The Experts premiered at Sydney Fringe Festival and was nominated for Best Production for Young People. The ensemble remounted this work at Crack Theatre Festival bringing it to new audiences, a first for the ensemble. Shopfront’s emerging artists are gogetters, they are passionate about sharing their voices and exploring issues that matter to them, right now. Our monthly Scratch Night’s and Open Shop programs continued to be a place for artists to develop, share and investigate ideas. In 2019, Shopfront supported over 200 emerging artists.
What is in the pipeline for Shopfront for 2020? We wish we could say that it is going as planned. All we can say is that whatever 2020 has in store for us, we know that our young artists will be innovative, they’ll dream big and they’ll make sure everyone hears them! In their hands, our future is bright!
Daniel Potter Executive Director
Natalie Rose Creative Director
2019 culminated in Shopfront taking over 107 Redfern for a weekend festival, showcasing Shopfront Fest, a celebration of our young and emerging artists. This event involved visual arts workshops, installation projects and two Scratch Nights for under and over 16’s, bringing Shopfront to new audiences in the City of Sydney. OPPOSITE PAGE AND ABOVE Playwave at Sydney Festival
ANNUAL REPORT 2019
7
2019 STATS Total Shopfront engagements with Young People 11,474 Total Young People engaged with Shopfront as members 4773
Newly arrived Young People 7.8% Non-binary or LGBTQI+ Young People 286 Young People from CALD 855
Young People with disability/ support needs 611
742 programs run for the participation of Young People
Young People disclosed socio‑economic hardship 487
Emerging artists employed 33 Emerging artists supported 197
The Unknown by Junior Ensemble. Photo Š Lauren Scott-Young for Shopfront Arts Co-Op
SHOPFRONT OVERVIEW Works created, completed and performed 41
Socially engaged programs on offer 16
Works in creative development for 2020 5
Education (school) performances 2
Emerging artists works in residence 13
Mentorships and masterclasses 12
Festivals, seminars, conferences 2
PHYSICAL AUDIENCES Shopfront audience numbers 7,148 Playwave audiences 1,342
Workshops on offer 32 Forums 2
AWARDS 2019 WINNER Outstanding Achievement in The Australian Charity Awards 2019 WINNER The St George Community Award 2019
DIGITAL AUDIENCES Shopfront website 22,700 Shopfront Facebook 2,499 Shopfront Instagram 1,183 Shopfront Twitter 1,498
WINNER My Community Project 2019 NOMINATIONS Sydney Fringe Award Best Production for Young People 2019 FINALIST St George Local Business Awards 2020
Playwave 9,723
ANNUAL REPORT 2019
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BUILDING UPDATE 2019 was a milestone in Shopfront’s history as we commenced construction work that would see us drastically improve our Shopfront home. Not since Shopfront Young People raised funds to purchase our site at 88 Carlton Parade, have we seen such a major commitment to a dedicated space to serve youth arts. As with any major change, there is a period of apprehension and adjustment. We said goodbye to the old mural, and to spaces that have held memories for successive generations of Shopfront Young People. But as the new building took shape, it was clear that this was a powerful way forward, to continue to positively impact the lives of Young People for many years to come. Our renovated building will see our Young People exploring new ways to create and connect, with improved performance and rehearsal spaces, a visual arts wet room, an editing space, a lounge area for our Young members, an outdoor terrace, meeting rooms, and finally, office spaces for other Arts companies to occupy – connecting with our Young Artists as they make the transition to a sustainable career in the arts. We are immensely proud of Shopfront and our bold vision for the future finally taking form. It would not have been possible without the trust and support of the Vincent Fairfax Family Foundation, the Sherry Hogan Foundation, The Goodridge Foundation, Social Enterprise Funding Australia, Creative Partnerships Australia, the NSW State Government and the Australian Federal Government through the National Stronger Regions Fund. Importantly, we can’t forget our devoted Shopfront community, who have supported this project through words and action, including their own out of pocket financial support. We are extremely grateful to everyone who has helped Shopfront plan for a future of supporting Young People for decades to come. We can’t wait to welcome you into our new building in 2020, and hope you will join us for the housewarming celebrations!
Shopfront building works © Shopfront Arts Co-Op
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11
TESTIMONIALS
“
Shopfront has provided our child a safe, creative space to explore and connect just as it did for me over 30 years ago. As a marginalised young person facing significant obstacles her degree of engagement and participation in Shopfront is integral to her wellbeing. The opportunity for her to collaborate and contribute in a supportive environment has allowed her to flourish which will work to improve her longterm outcomes. I am not sure where we would be without it.” Carlie Morris, Shopfront Parent
“
Shopfront is incredible because it is a place that allows me to take creative risks with my work. I don’t feel afraid to try, make, fail and succeed. It has been imperative to me as an emerging artist to feel safe to create and shopfront is the perfect place to do so.” Lana Filies, ArtsLab Alumni
“
During 2019 JCBTHS had the extraordinary experience of working with Shopfront on two fabulous projects; New Home New Laws and Wave Changers. The students developed skills and attitudes that the school could not provide and students were exposed to learning opportunities that challenged not only their practical skills but also their values and ideals about the world around them. We are greatly appreciative of the opportunity that our students had to work with highly experienced and professional facilitators to engage and develop new skills within our students and we look forward to future opportunities to work with Shopfront.” Mark Marciniak, Principal, James Cook Boys Technology High
“
After a taster class, I asked my teacher if I can join Shopfront next year. I also want to join the Drama Ensemble at school next year. I love acting, I love rapping, it is so much fun. I think I am successful in drama.” Abdullah, Year 5 student at Carlton South Public School
The Experts by Harness Ensemble. Photo © Jasmin Simmons for Shopfront Arts Co-Op
“
Shopfront Theatre is important to me for so many reasons. The feeling it gives me when I am there, the feeling of performing ‘in another world’ as someone else. It is also great to know that I can be in a group of people that I get to know and that together we learn skills of acting and performing whilst having fun.”
“
Shopfront has given me confidence and I made new friends. I was also noticed. At school only some kids get noticed, but Shopfront you are always noticed.” Ben, Shopfront Workshop Participant
Anika, Shopfront Workshop Participant
ANNUAL REPORT 2019
13
INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019 Note Revenue Expenses excluding Finance Costs Finance Costs Profit Attributable to Members of the Entity
3
2019 $
2018 $
1,935,432
886,640
806,252
776,176
221
–
1,128,959
110,464
The large profit figure in 2019 is an anomaly – this was grant income relating to the building project which was spent in 2019 on the building works, however the building works are recognised on the balance sheet and not the Profit and Loss statement, which is why this profit figure exists. This was not an actual cash profit.
The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached Audit Report.
BALANCE SHEET AS AT 31 DECEMBER 2019 Note
2019 $
2018 $
5
242,281
593,715
7
139,616
14,691
10,707
5,875
392,604
614,281
3,928,872
2,785,001
Total Non-Current Assets
3,928,872
2,785,001
Total Assets
4,321,476
3,399,282
9
62,197
119,374
10
34,458
25,610
318,105
476,541
Total Current Liabilities
414,760
621,525
Total Liabilities
414,760
621,525
3,906,716
2,777,757
2,100,000
2,100,000
Retained Profits
1,806,716
677,757
Total Equity
3,906,716
2,777,757
Current Assets Cash and Cash Equivalents Trade and Other Receivables Other Current Assets Total Current Assets Non-Current Assets Property, Plant and Equipment
Current Liabilities Trade and Other Payables Short Term Provisions
8
Other Accruals
Net Assets Equity Reserves
11
The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached Audit Report
ANNUAL REPORT 2019 – FINANCIALS
15
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019 2019 $
2018 $
1,066,157
948,736
581,857
133,318
(828,301)
(691,545)
1,607
3,925
821,319
394,434
(1,172,750)
(180,228)
Proceeds from Disposal of Fixed Asset
–
–
Interest Received
–
–
(1,172,750)
(180,228)
–
–
Note Cash Flows from Operating Activities Grant Receipts Other Operating Receipts Payments to Suppliers & Employees Interest Received
6
Net Cash Provided by Operating Activities Cash Flows from Investing Activities Payments for Property, Plant & Equipment
Net Cash Used In Investing Activities Cash Flows from Financing Activities Proceeds of Borrowings Repayment of Borrowings
–
–
Net Cash Used in Financing Activities
–
–
Net Increase/(Decrease) In Cash Held Cash at Beginning of Year Cash at End of Year
(351,431)
214,206
593,713
379,509
242,282
593,715
The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached Audit Report.
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019 2019 $
2018 $
2,777,757
2,667,293
1,128,959
110,464
1,128,959
110,464
3,906,716
2,777,757
677,757
567,293
1,128,959
110,464
1,806,716
677,757
2,100,000
2,100,000
Closing Balance
2,100,000
2,100,000
Total Equity
3,906,716
2,777,757
Opening Balance Retained Earnings Profit Attributable to Members Closing Balance Reconciliation of Retained Earnings Opening Balance Profit Attributable to Members Closing Balance Reconciliation of Reserves Asset Revaluation Reserve Opening Balance for the year
The accompanying notes form part of these financial statements. These financial statements should be read in conjunction with the attached Audit Report.
ANNUAL REPORT 2019 – FINANCIALS
17
PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019 Note
2019 $
2018 $
13
1,224,593
758,535
39,975
34,218
Other Funding
537,532
8,000
Other Income
131,504
81,962
1,828
3,925
1,935,432
886,640
169,033
133,224
21,660
13,743
4,000
4,000
740
–
Bank Charges
1,490
1,167
Cleaning
2,410
1,342
Computer Expenses
5,393
1,823
Consultancy Fees
3,360
3,700
28,880
26,765
1,219
2,607
2,690
820
165
72
8,847
(4,743)
30,603
25,549
221
–
Light & Power
8,119
5,724
Printing & Stationery
9,141
8,632
Rates & Taxes
9,722
9,463
Repairs & Maintenance
2,003
2,621
429,492
472,561
8,181
5,565
–
930
2,879
2,667
44,329
49,999
Telephone
2,895
3,021
Travelling Expenses
9,001
4,924
806,473
776,176
1,128,959
110,464
Income Grants Performance & Community Delivery
Interest Received Expenditure Project Costs Advertising Auditor’s Remuneration Bad Debts Written Off
Depreciation Depreciation – Immediate Write-off Fees & Permits Filing Fees Holiday Pay Provision Adjustment Insurance Interest Paid
Salaries Staff Training & Welfare Staff Recruitment Costs Subscriptions 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
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 The financial statements cover Shopfront Arts Co-Operative Limited as an individual entity. Shopfront Arts Co-Operative Limited is a not for profit Association 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’).
2. Summary of Significant Accounting Policies a. Cash and Cash Equivalents Cash and cash equivalents comprises cash on hand, demand deposits and short term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.. b. Provisions
The functional and presentation currency of Shopfront Arts Co-Operative Limited is Australian dollars.
Provisions are recognised when the association 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..
1. Basis of Preparation
c. Employee Benefits
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 presented below and are consistent with prior reporting periods unless otherwise stated.
Provision is made for the association’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. d. Property, Plant and Equipment Plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment of losses. Plant and equipment is depreciated on a straight line basis over the assets useful life to the Association, commencing when the asset is ready for use.
These notes should be read in conjunction with the attached Audit Report
ANNUAL REPORT 2019 – FINANCIALS
19
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 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 Association 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.
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. 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)
All revenue is stated net of the amount of 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).
Sale of Goods
Receivables and payable are stated inclusive of GST.
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.
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.
Interest Revenue Interest is recognised using the effective interest method.
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.
Rendering of Services Revenue in relation to rendering of services is recognised depending on whether the outcome of the services can be estimated reliably. If
These notes should be read in conjunction with the attached Audit Report
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 2019 $
2018 $
Employee Benefits Expense
473,821
522,560
Depreciation and Amortisation Expenses
30,099
29,372
Advertising
21,660
13,743
1,490
1,167
30,603
25,549
Light & Power
8,119
5,724
Printing & Stationery
9,141
8,632
Rates & Taxes
9,722
9,463
Repairs & Maintenance
2,003
2,621
Telephone
2,895
3,021
216,699
154,324
806,252
776,176
3. Profit Expenses
Bank Charges Insurance
Other Expenses
4. Profit for the Year Profit before income tax expense from continuing operations includes the following specific expenses: Charging as Expense Finance Costs
221
–
28,880
26,765
1,219
2,607
30,099
29,372
8,847
(4,743)
Movements in Provisions Depreciation – Depreciation of Property, Plant and Equipment – Property Improvement Other Provisions – Employee Benefits Net Expenses Resulting from Movement in Provisions
38,946
24,629
Bad & Doubtful Debts – Bad debts written off
740
–
740
–
Remuneration of the Auditor
4,000
4,000
– Audit & review of financial reports
4,000
4,000
ANNUAL REPORT 2019 – FINANCIALS
21
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31DECEMBER 2019 2019 $
2018 $
28,723
–
280
280
Key Deposits Held
(155)
(205)
Petty Cash Imprest
341
341
29,781
123,932
174,023
461,316
4,512
3,095
1
1
4,775
4,955
242,281
593,715
242,281
593,715
242,281
593,715
5. Cash and Cash Equivalents Deposits Held Cash Floats
WBC Operating Account WBC Cash Management Account WBC Donations Account ING Savings Account Bendigo Bank
Reconciliation of Cash Cash and Cash Equivalents
6. Cash Flow Information Reconciliation of Cash Flow from Operations with Profit after Income Tax Operating Profit after Tax Depreciation & Losses on Disposal
1,128,959
110,464
28,880
26,765
(128,296)
6,555
–
–
(217,072)
255,393
8,847
(4,743)
Changes in Assets & Liabilities Decrease/(Increase) in receivables Decrease/(Increase) in other assets (Decrease)/Increase in creditors & accruals (Decrease)/Increase in Provisions
Net Operating Cash Flows
821,319
394,434
7. Trade and Other Receivables Current Trade Debtors Provision for GST
Total Trade and Other Receivables
These notes should be read in conjunction with the attached Audit Report
138,156
14,691
1,460
–
139,616
14,691
139,616
14,691
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 2019 $
2018 $
1,760,000
1,760,000
1,760,000
1,760,000
442,800
442,800
442,800
442,800
1,723,449
556,152
65,317
48,315
1,658,132
507,837
3,860,932
2,710,637
171,019
165,565
103,079
91,201
67,940
74,364
67,940
74,364
3,928,872
2,785,001
Trade Creditors
32,166
35,925
Other Creditors
20,486
7,867
Client Funds Held
9,545
23,310
Provision for GST
–
52,272
62,197
119,374
62,197
119,374
34,458
25,610
34,458
25,610
8. Property, Plant and Equipment Land and Buildings Freehold Land Land Revaluation
Property Improvements Property Improvements Less Accumulated Depreciation & Impairment Total Land and Buildings
Plant and Equipment Office Furniture & Equipment Less Accumulated Depreciation & Impairment Total Plant and Equipment
Total Property, Plant and Equipment
9. Trade and Other Payables Current
Total Trade and Other Payables
10. Provisions Current Provision for Holiday Pay
These notes should be read in conjunction with the attached Audit Report
ANNUAL REPORT 2019 – FINANCIALS
23
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 11. Reserves Asset Revaluation Reserve
2019 $
2018 $
2,100,000
2,100,000
2,100,000
2,100,000
12. Subsequent Events The Co-operative has been continuing to develop the property held at 88 Carlton Pde, Carlton. The
development is about to receive final occupancy certificate as at the signing of this Audit Report. The Board has signed a letter of offer from Social Enterprise Finance Australia (SEFA) for a loan of $620,000. The Board has decided to utilise current funding receipts without the use of the SEFA funding. To the end of April 2020, the entity has drawn down $490,037 of the available funding. 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.
13. Recognition of Government Grant Monies NSW Family & Community Services – Operating
66,567
89,950
NSW Family & Community Services – Non-recurring
50,652
4,965
Australia Council – Project Funding
269,186
252,500
Department of Infrastructure
352,360
111,620
Create NSW
215,000
190,000
31,100
155,113
186,000
9,000
53,728
–
1,224,593
758,535
Local Council Funding Club Grants Other Federal Funding
These notes should be read in conjunction with the attached Audit Report
DIRECTORS’ REPORT 31 DECEMBER 2019 Shopfront Arts Co-Operative Limited 14 021 769 064
Directors' Report 31 December 2019
The directors present their report on Shopfront Arts Co-Operative Limited for the financial year ended 31 December 2019. Information on Directors 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 Tom Doyle – commenced 25 May 2019 Tess Montgomery Philip Sansom Susan Doherty Samantha Crome 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 company during the financial year were: Art projects for young people Welfare of youth community members No significant changes in the nature of the Company's activity occurred during the financial year. Operating Results The profit of the company after providing for income tax amounted to $1,128,959. Review of Operations A review of the operations of the company during the financial year and the results of those operations are as follows: The company's operations during the year performed as expected in the opinion of the directors. Significant Changes in State of Affairs The Core Property at 88 Carlton Pde, Carlton has been redeveloped during the year. The Co-operative’s capital spending towards this project was $1,167,296 during the 2019 financial year. This was funded through previous cash reserves and monies raised by Shopfront Arts Co-operative Ltd in recent times. 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 is about to be completed as of the Audit date. The finance arrangements will be utilised from the 2020 financial year, and the Board decided to use existing funding positions to complete project milestones.
ANNUAL REPORT 2019 – FINANCIALS
25
DIRECTORS’ REPORT 31 DECEMBER 2019 Shopfront Arts Co-Operative Limited 14 021 769 064
Directors' Report 31 December 2019
Environmental Issues The company’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. Auditor's Independence Declaration The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 31 December 2019 has been received and is included with the financial statements. Signed in accordance with a resolution of the Board of Directors:
Fiona Hulton Director
Glenn Murray Director
Nadia Lindop Director
Daniel Potter Director
Dated 21 May 2020
DIRECTORS’ REPORT 31 DECEMBER 2019 Andrew Finney B Com FCA Peter Cunneen B Bus FCA Amanda McHugh B Fin Admin CA Suite 7, 2-4 Northumberland Drive, Caringbah NSW 2229 PO Box 2606, Taren Point 2229 p 02 9531 0201 f 02 9531 1632 www.finncorp.com.au
Shopfront Arts Co-Operative Limited
ABN 50 161 567 013 Liability limited by a Scheme, approved under the Professional Standards Legislation
14 021 769 064
Independent Auditor's Report to the Members of Shopfront Arts Co-Operative Limited
Report on the Financial Report We have audited the accompanying financial report of Shopfront Arts Co-Operative Limited (the company), which comprises the balance sheet as at 31 December 2019, and the income statement for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. Directors' Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal 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. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company'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 company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Australian professional ethical pronouncements.
ANNUAL REPORT 2019 – FINANCIALS
27
DIRECTORS’ REPORT 31 DECEMBER 2019 Shopfront Arts Co-Operative Limited 14 021 769 064
Independent Auditor's Report to the Members of Shopfront Arts Co-Operative Limited
Opinion In our opinion: a.
the financial report of Shopfront Arts Co-Operative Limited is in accordance with the Corporations Act 2001, including: i.
giving a true and fair view of the company’s financial position as at 31 December 2019 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 Finncorp Auditors Pty Ltd Suite 7, 2-4 Northumberland Dr, Caringbah 2229 Dated this 21ST day of May 2020
DIRECTORS’ REPORT 31 DECEMBER 2019 Andrew Finney B Com FCA Peter Cunneen B Bus FCA Amanda McHugh B Fin Admin CA Suite 7, 2-4 Northumberland Drive, Caringbah NSW 2229 PO Box 2606, Taren Point 2229 p 02 9531 0201 f 02 9531 1632 www.finncorp.com.au ABN 50 161 567 013 Liability limited by a Scheme, approved under the Professional Standards Legislation
Auditors Independence Declaration Under Section 307C of the Corporations Act 2001
To the Directors of Shopfront Arts Co-Operative Limited I declare that, to the best of my knowledge and belief, during the year ended 31 December 2019, there have been: a) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and b) no contraventions of any applicable code of professional conduct in relation to the audit.
Andrew Finney Finncorp Auditors Pty Ltd Suite 7, 2-4 Northumberland Dr, Caringbah 2229 21 May 2020
ANNUAL REPORT 2019 – FINANCIALS
29
THE HOME OF YOUTH ARTS www.shopfront.org.au hello@shopfront.org.au +61 02 9588 3948 88 Carlton Parade, Carlton NSW 2218
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