Sydney Gay and Lesbian Mardi Gras ANNUAL REPORT 2020

2020 Annual Report Sydney Gay and Lesbian Mardi Gras Ltd | ABN 87 102 451 785 Mardi Gras Arts Ltd | ABN 41 158 800 018

Nana Miss Koori and NAISDA

Mardi Gras acknowledges the Gadigal people of the Eora nation, who are the traditional owners of the land on which our events are held.

Always was, always will be Aboriginal Land.

78ers

The First Nations LGBTQI+ communities are the first to march in each and every Mardi Gras Parade. This year’s Parade Smoking Ceremony happened in Whitlam Square with dancers from NAISDA, the First Nation float and Haka for Life participants, followed by the Welcome to Country at Taylor Square performed by Nana Miss Koori and Metropolitan Local Aboriginal Land Council Chairperson Yvonne Weldon, with a dance performance by NAISDA. Thank you to Nathan Moran, Graham Simms, Yvonne Weldon, Brendan Kerin, Matty Morgan, KooMurri, Budjwa Budjwa, NAISDA dancers, the ACON First Nations group and Haka for Life.

Mardi Gras started in the spirit of protest. We’ve come so far, and we know there’s so much further to go together. The season theme for 2020 inspires us all to focus on WHAT MATTERS. Together, we create the community we live in, and united we fight for what matters to us: Acknowledgement of the First Nations land that we meet on. Affirming trans and gender diverse identities.

Respect for the pioneers of the past, having the big conversations of today, inspiring the leaders of the future. Shining a spotlight on LGBTQI+ rights across the Asia-Pacific region. Inclusion, empathy, sustainability and belonging.

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Twenty10 and Sam Smith

2020 Annual Report

Homage

Fuck Fabulous

Gender Euphoria

AT SEYMOUR CENTRE

Hot Brown Honey

The outstanding variety of shows included Fuck Fabulous, Hot Brown Honey, Hudson & Halls, Sex Education, YUMMY UNLEASHED, You & I, My Trans Story, Laugh Out Proud, Spice Night, Homage, Playlist, Gender Euphoria and The Campaign.

Queer Thinking and Koori Gras were also hosted there, along with Courtyard Sessions, the LGBTQI+ Elders Dance Club, the Welcome Choir, and Pavlovabar.

YUMMY UNLEASHED mardigras.org.au

Over 14 days and nights, the Mardi Gras Festival Hub at the Seymour Centre showcased an astonishing array of queer performance, theatre, music, dance, circus and cabaret, plus thought-provoking talks.

Sex Education

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W I N N E R F B I R A D I O S Y D N E Y M U S I C A R T S A N D C U LT U R E AWA R D Best Arts Program in NSW

Sissy Ball dipped into the Enmore Theatre and transformed the revered venue for Australia’s largest and most extravagant vogue ball. Curated by House of Slé mother Bhenji Ra, the competition brought together international legends of the vogue scene. The night featured Omari Wiles, DJ MikeQ, Princess Precious, Kevin Jz, Star Amerasu, KILIMI, DJ ATRO, House of Slé, House of Silky, House of Dévine, House of IMAN, House AITU, House of Lunar and House of Alexander.

Lupa J

QUEER

Luna Park was a wonderland for rainbow families on Sunday 23rd February with unlimited rides, plus DJs and surprise performances inside the Crystal Palace.

Thank you to Nana Miss Koori, JamarzOnMarz, Marlena Dalí, Joyce Maynge, Jeff McCann, Mell O’Dell, the Deep Sea Astronauts, DJ Kate Monroe and DJs ChaCha+BB for making the event so magical for the whole family.

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For the fourth year running, the Art Gallery of NSW burst with queerness, becoming a free creative wonderland of art, ideas, colour, movement and sound.

The extraordinary array of performances, music, talks and installations included host Patrick Abboud, DJ HipHopHoe, Gendermess, Jordy Bos, Eric Avery, Stelly G and The Sharman, TabOriginal, Zaya, Verushka Darling, Lupa J, Annabelle Gaspar, Blak Divaz and a selection of Queer Film Shorts curated and hosted by Kelli Jean Drinkwater.

Created in association with Moogahlin Performing Arts, Koori Gras is Mardi Gras’ annual series of creative cultural arts events featuring local, interstate, and international First Nations qweer artists, thinkers, and communities. Happening at the Seymour Centre and Carriageworks were Yellamundie Queer Blak Play Readings, the Blak Nulla talent showcase, the Blak Diva for the Day drag workshop, and the Koori Kick On Club Night curated and starring Felicia Foxx with DJs Wiradjuri, Platinium Mixerz and Dyan Tai, and art by Blak Divaz, Barkaa and MackRidge.

2020 Annual Report

ELDERS DANCE CLUB A summertime tradition amongst locals and international visitors, Mardi Gras’ Pool Party at the ivy is our sultriest party of summer. This year’s all-star DJ lineup got the Speedo’d crowd gyrating – thank you Alex Taylor, Kristy Jade, Joelby, Hayley Maree and Colin Gaff!

A premiere event in the 2020 Mardi Gras calendar, the LGBTQI+ Elders Dance Club was produced by the All the Queens Men crew as a fabulous, free social event for our elders and their allies. The LGBTQI+ Elders Dance Club champions the recreational and social rights of our rainbow elders, creating a space that is safe and inclusive.

Wearing their finest poolside couture, we sashayed into Sydney’s most stunning tropical rooftop ivy Pool Club for our inimitable retro-styled soirée. The second annual Kaftan Party was hosted by the effervescent Bob Downe, with the sweet sounds of Sugar Fed Leopards, synchro pool choreo with The Clams, shows by the sultry Coco Jumbo, vintage vibes with Retro Equality and tunes with DJ Rob Davis, DJ Justin Scott and The Pleasure of Gwen.

MINUS18 Bringing together innovators, trailblazers and provocateurs for two days of envelope-pushing talks at the Seymour Centre, Queer Thinking featured nine sessions traversing topics from religious discrimination to prison abolition, mutual aid projects to data marginalisation, revolutionary tactics to trans liberation.

Curated by Maeve Marsden, guest speakers included pioneering gay rights activist Dennis Altman in conversation with academic Raewyn Connell, award-winning poet Ellen van Neerven, academic Aren Aizura, executive director of change.org Sally Rugg, lawyer and writer Alison Whittaker, psychotherapist, community activist, and policy advisor Dr Gávi Ansara, Secretary at Acceptance Sydney for Gay and Lesbian Catholics Matthew Boon Meng Ng, Chair of the Hong Kong Transgender Resource Centre Henry Tse, sex worker and activist Gala Vanting, and Pacific Studies lecturer and writer Dr Patrick Thomsen. The weekend also included a mass singalong with The Welcome Choir, Big Queer Book Club with Better Read Than Dead bookshop, an update on the religious freedom agenda by Equality Australia CEO Anna Brown, and a Letter Writing Workshop with social worker and prisoners’ rights advocate Witt Gorrie and community organiser Anne-lise Ah-fat. mardigras.org.au

Mardi Gras was so excited to partner with LGBTQI+ youth network Minus18 for the Sydney Queer Formal. The sparkly, identity-celebrating night meant LGBTQI+ young people aged 13-19 could have the time of their lives - they were able to wear what they want, bring their dream date, and be their true selves while making friends with other queer youth.

MY

Ted Cook

Holly Conroy

Joel Wilson

On Saturday 15 February, My Trans Story featured local and regional storytellers exploring place and belonging.

The inspiring storytellers included Holly Conroy, Teddy Cook, Peta Friend, Bianca Dean, Luka, and Joel Wilson.

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What a beautiful Fair Day it was! The Arena undercover seated area was a great success again this year as the home of Doggywood and Sports Village.

We also loved the giant rainbow Absolut dance floor, and the Woolworths Carousel for the young and young at heart.

Hosted by Faustina Agolley, Fair Day 2020’s ANZ Main Stage proudly showcased a diverse selection of up-and-coming queer performers, including trailblazing hip hop artists Jess B, JamarzOnMarz, Jamaica Moana and Hoodzy, electrifying live sets from Ngaiire, Bec Sandridge, Architects Of Sound and Huntly, high-energy drag performances

by Felicia Foxx, plus sets from beloved community DJs Division 4, MzRizk, Ben Drayton and Victoria Anthony.

2020 Mardi Gras Float

Lifesavers with Pride and Dua

Fire and Rescue NSW

190 groups involving 12,500 dazzling participants took to the streets to share What Matters to them in the 42nd annual Sydney Gay and Lesbian Mardi Gras Parade. From pure celebration and creative self-expression, to floats with a wild and witty protest call to action, 2020’s Parade told the world about the things that are important to the LGBTQI+ community.

Broadcast live on SBS, various floats drew attention to important issues and groups including LGBTQI+ homelessness, queer communities in regional areas, the 35th anniversary of the Bobby Goldsmith Foundation and the 35th anniversary of Australia’s first dedicated HIV/AIDS Ward - 17 South at St Vincent’s Hospital.

As always the First Nations group and 78ers group at the head of the Parade got loud cheers from the crowd. LGBTQI+ community members and their allies from the NSW Rural Fire Service, Fire and Rescue NSW and the NSW State Emergency Services proudly marched as an inspiring symbol of unity and bravery after being on the frontline of the unprecedented bushfires during 6

the summer. Superstar singer Sam Smith marched with the Twenty10 group, the stunning Dua Lipa dropped by Taylor Square as the Lifesavers with Pride performed a dance routine to her hit song ‘One Kiss’, Brazil’s favourite drag star Pabllo Vittar also joined popped up in Taylor Square ahead of her performance later at the Party.

With so many Pride celebrations across the globe cancelled due to COVID-19 restrictions this year, Sydney was incredibly lucky to have been able to hold our 2020 Parade before community transmission of the virus. We can’t wait to be all together again with you as soon as it’s safely possible.

2020 Annual Report

This year’s Party had a massive talent line-up – our incredible array of superstar performers included Dua Lipa, Sam Smith, Kesha and Pabllo Vittar, each with high-production shows in the Hordern – and our DJ line-up across all the venues were Esteé Louder, DJ Nate, Barry Harris, Joelby, Kate Monroe, Kate Doherty, Jennifer Loveless, Trinity, Midland, Magda Bytnerowicz, Cupids Cut, Charlie Villas, Atomic Blonde & Dutch Kiss, DJ Hamo, Dameeeela, Kilimi, Ayebatonye and Whiskey Houston.

Sam Smith

A significantly reduced number of tickets were made available and sold out very quickly this year compared to previous years, since Mardi Gras was unable to use the Royal Hall of Industries.

Without the RHI, our challenge was to bring to life more areas with entertainment, introducing more bars and extended outdoor spaces. We also provided big screens in outside areas so the main shows could be seen and heard by as many partygoers as possible.

While many partygoers had a great time at this year’s Party, a significant number of others were left frustrated and disappointed after experiencing long delays trying to enter into the Hordern.

Your feedback has been heard. Mardi Gras, along with our venue partners, agree that these sort of wait times are completely unacceptable and must never occur again.

As a team, Mardi Gras will continue to develop and evolve the Party experience to ensure it remains one of the world’s most beloved and celebrated LGBTQI+ dance events.

Dua Lipa

Kesha

Midnight Show

Pabllo Vittar The traditional closing event of the Mardi Gras festival took over The Bereford and Hill Street laneway, filling it with the best local DJs and surprise pop-up performances.

Brazilian drag star Pabllo Vittar’s show was stunning, and the YUMMY crew were at their outrageous best.

Our 5-star Laneway DJ team were the Jawbreakers, Duna Lynch, Corey Craig, Kitty Glitter, GI Jode, Kristy Jade, French Kiss, Nic Spurway, James Alexander, Tiny DJ, Amanda Louise, Baby Bear and Jonny Marsh. mardigras.org.au

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Jesse Matheson & Mel Schwerdt CO-CHAIRS, SGLMG

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2020 Annual Report

Sydney Gay and Lesbian Mardi Gras (SGLMG) has always been a powerful show of the LGBTQI+ community’s strength and resilience.

COVID-19 has changed the world and has pushed Pride organisations across the globe to innovate in unexpected ways. This year the Board asked ourselves and the community “What Matters?” as we take on the challenges of the new normal.

2020 has been a year of big change for Mardi Gras.

In January, we welcomed our new CEO, Albert Kruger, to lead our operations into the future utilising his vast experience of producing international and local events.

For 2020 we were also unable to use one of our beloved Party venues - the Royal Hall of Industries (the RHI).

Even with these two big changes, nothing could’ve quite prepared us for the COVID-19 pandemic unfolding in the weeks and days leading up to Mardi Gras night. We consider ourselves incredibly lucky, albeit sad too, that we were one of, if not the last major event to take place in Sydney for 2020.

Massive thanks must be given to the staff, volunteers and the Board who diligently monitored the COVID-19 situation and delivered a successful season with the health and safety of our patrons front of mind at all times. The safety of our community at our events is, and always will be, our number one priority.

Unlike in previous years when we get to reflect on the previous season and consider how we can make it bigger and better than the year before, COVID-19 pushed us to immediately look to the future and ask the big questions.

What does a Mardi Gras festival in a COVID-19 environment look like? How does the community want us to support them throughout the year? How do we adapt?

What matters? What doesn’t matter?

Adjusting to the New Normal Since March, one of the Board’s primary focuses has been streamlining our internal governance and adjusting to working remotely.

mardigras.org.au

This has meant reviewing committees to better align them to the needs of Mardi Gras and implementing a new good governance framework platform, GovernRight, to aid the Board in its oversight role.

At last year’s AGM, the motion was passed with support from the board to develop an Ethics Charter to inform Mardi Gras relationships with partners and sponsors.

Our CEO and operations team are managing the delivery of that important document which is progressing well.

We also prioritised the review of the Mardi Gras Constitution with the aim to modernise our governing document and address concerns expressed by members. In August, we consulted with the members on these proposed amendments via Zoom and a survey. We look forward to presenting an updated Constitution for member endorsement soon.

Connecting Globally In 2019, Sydney was successful in its bid to host WorldPride in 2023 receiving 60% of the vote from Prides around the world.

As we work alongside our sister organisation Sydney WorldPride 2023 to bring the world to our shores, the Mardi Gras Team has increased its engagement with international Prides.

Together we worked to deliver Global Pride – an online initiative to keep the spirit of Pride alive as COVID-19 forced cities around the world to cancel their annual Pride celebrations.

Global Pride was streamed by more than 57 million people across the world over a 24-hour period featuring content from more than 500 Prides and LGBTQI+ organisations.

Engaging with our fellow Prides will continue to be a priority for Mardi Gras as we seek to share our knowledge and learn from our worldwide rainbow family.

Importantly, we will continue to use our global reach and networks to further the social justice goals of Prides in the Asia-Pacific region which continues to be underrepresented and persecuted on the world stage.

Into the Future As 2020 comes to a close, the Board are acutely aware of the difficult challenges that face Mardi Gras. It is almost certain that the Mardi Gras festival as we have come to know it will not be able to take place in 2021.

The future is uncertain, but what we do know is that Mardi Gras is well positioned to take on the challenges of COVID-19 under the leadership of the Board and our new CEO. We are also excited by the innovative opportunities that a new festival format or digital innovations could offer and we are sure you will be too.

Finally, 2021 will mark the completion of our current strategic plan which has outlined our priorities and guided our activities since 2018.

In light of the challenges of COVID-19, this presents a timely opportunity for us to reassess our context, set new strategic priorities and begin building Mardi Gras up as we march towards Sydney WorldPride 2023 and a full festival once again.

We look forward to rising above the challenges and marching on with you.

Jesse Matheson & Mel Schwerdt CO-CHAIRS, SGLMG

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INTERIM Season 2020, under the theme of WHAT MATTERS was all about being part of the conversation, of which there were many!

We recognised that the world continues to rapidly change around us and that we all have a voice, along with a chance to change our own future. We are proud that our festival, through creative and political expression continues to celebrate pride in identity.

We extend a heartfelt thank you to each and every person, our members, supporters, old friends and new friends for the valued support shown to more than 100 festival events held over 17 days.

The Festival Hub partnership at the Seymour Centre received a much-deserved round of applause. With Gender Euphoria, Fuck Fabulous, The Campaign, Playlist, Yummy Unleashed, Hot Brown Honey, Hudson & Halls, Homage, You & I, Sex Education, Spice Night, Laugh Out Proud & Koori Gras it was an action-packed three weeks of arts, theatre, comedy, music and performance showcasing the depth and diversity of the amazing performers from within our community.

Our signature events return each year with an improved focus on diversity, both in programming and in attendance. Fair Day continues its reputation as ‘the’ event for the gathering of our community, enabling us to share experiences, together as one.

Sissy Ball 2020 was the biggest and best yet. 10’s across the board! Family Fun Day, Kaftan, Pool Party and Laneway each have their own identity and audience appeal, all were well attended, successful events.

We have acknowledged the Party and the concerns and effect that a changing venue footprint has on the future of how the Party will operate. We thank Dua Lipa, Kesha, Sam Smith and Pablo Vittar for their support of the event.

The Parade filled Oxford Street with thousands of revellers. They were treated to a fabulous night of glitz, glam, colour and excitement as more than 200 floats and 12,500 LGBTQI+ community members and allies shared WHAT MATTERS as they celebrated LGBTQI+ diversity and inclusion.

Thank you to all the staff, board, volunteers, performers, DJs, production suppliers and workshop crews who bring their energy to our festival. It is your passion and dedication that allows the Mardi Gras magic to happen for our wonderful community.

Grant Lowe INTERIM CEO, MARDI GRAS ARTS 10

I still remember my very first Mardi Gras; standing on the side of Oxford Street, watching the Parade go by and feeling this sense that I was home.

I’m Albert Kruger and I took over as Mardi Gras’ CEO in January this year.

I’m originally from South Africa and moved to Australia about four years ago now.

One of my first experiences in Australia, and what made me fall in love with it, was Mardi Gras. I’m sure many of you have felt that electric feeling that comes with being at Mardi Gras – that feeling of fearlessness and pride that comes only from being able to express yourself authentically and brightly alongside our community.

As such, I’m honoured and humbled to serve as the Mardi Gras’ CEO and continue to grow this iconic institution.

This year, we commissioned comprehensive consumer research on Mardi Gras and its main activities. 2,119 people completed the survey.

One of the key findings from the research was that 60% of those who replied thought Mardi Gras should have a year-round presence.

During the month of Mardi Gras, the research showed a real sense of community sought in events – for example, 21% liked the feeling of belonging at events and 22% liked the feeling of celebration.

Interestingly, there was a suggested lack of awareness about membership being connected to Mardi Gras with 32% of respondents saying they didn’t know about it.

When asked what types of events respondents attend outside of the Mardi Gras season, 27% said dance parties, 20% said talks and 16% said workshops.

When it comes to events, the Parade was the most attended event and the most popular was the Fuck Fabulous show at the Mardi Gras Festival Hub. When asked how well does SGLMG represent our diverse range of communities, 65% responded with good and excellent.

54% of respondents wanted more information about the administration of Sydney Gay and Lesbian Mardi Gras including board and organisational updates and 42% wanted to receive these by email.

We also asked people about corporate partnerships at Mardi Gras – as I, like you, have heard concerns from some members about our partnership arrangements.

There’s no doubt sponsor-support enables us to put on the events and activities that have seen the Sydney Gay and Lesbian Mardi Gras become a world icon.

What we learnt from the survey was that only 18% who responded took issue with any of our current sponsors. However, we do need to address any concerns if some of our members believe our sponsors may not be living up to the values and ideals we hold closely as LGBTQI+ people and allies.

We are currently developing our very first Ethics Charter, which will help articulate how Sydney Gay and Lesbian Mardi Gras applies its values to the decisions we make throughout the organisation. Further, the Ethics Charter will guide our interactions with sponsors and ensure that any arrangement meets the expectations of our members and our community.

We are also planning a roundtable event with our sponsors to better understand how they can support our community at the grassroots and contribute to better outcomes for LGBTQI+ people, whether that be in the workplace or in the streets.

The Charter and the Roundtable are substantial pieces of work that I’m hoping will be completed before the end of the year.

I will keep you updated as both of these projects progress.

Mardi Gras’ doors are always virtually open if you would like to know more or just want to have a chat. We are a community organisation and we’re here for you.

Albert Kruger CEO, MARDI GRAS ARTS 2020 Annual Report

Clover Moore with the Dyke son Bikes

Midnight Community Show

The Clams

Bhenji Ra at Sissy Ball

2020 is a challenging and worrying time for the arts, events and creative sectors. In the wake of cancelled events, it’s so important that we reflect on how important the arts are for our health and wellbeing – and for many of us our livelihood.

Being the Creative Director for Mardi Gras 2020 was one of the most challenging creative projects of my life. It was such a privilege and so inspiring to work with passionate, vibrant rainbow artists, individuals and communities to help bring to life shared visions of What Matters.

Playing with colour, community and curation for six months has been an absolute blast.

Reflecting on what’s happening globally now, I feel so lucky that the gay gods were on our side and our two-week festival was able to go ahead. Reflecting on the festival, there were so many moments that bring me joy when I think about them, and some very special people I need to thank: • Thank you to All The Queens Men and the people who marched in 1978, who I spent an afternoon dancing with at the LGBT+ Elders Dance Club.

and I to tears when they shared a song on the Fair Day stage about a friend diagnosed with HIV. • Watching Bhenji Ra and the houses at this year’s Sissy Ball at The Enmore.

• When our beloved Lord Mayor Clover Moore said yes to a crazy idea and rode into the Town Hall on the back of a Harley with the Dykes On Bikes.

• Thank you to William Trewlynn and BlaQ for your invaluable knowledge.

• Thank you to Peta Friend and Teddy Cook for sharing your personal trans stories.

• Thank you to The Clams for playing with giant bloody tampons in the Ivy Pool!

• Thank you Felicia Foxx for nailing the curation of MG’s first-ever First Nations Club Night.

NGAIIRE

• Finally thank you to the LGBTQI+ organisations around regional Australia who played with us on Parade night for the first time. I saw you on the telly!

I was really proud of directing the creative vision for the Mardi Gras Parade float and Party Midnight Show which focused on one issue that matters to so many of us – Climate action, connection to the planet and connection to each other NOW. With the most incredible help from the artists in the Mardi Gras workshop, choreographer, Gin Ferris, and music legend, Peewee Ferris, we brought together 100 community dancers that showcase our diverse community - along with the Sydney Gay and Lesbian Choir, a Greta Thunberg Speech, a tribute to the rightful owners of the land, and real footage of our bushfires to PROTEST against inaction. Thank you Casey Donovan for being a part of this with us and ending the show with a message of love. We all need love right now.

Thank you so much to Sydney Gay and Lesbian Mardi Gras and the team for having me in 2020. What an honour. xx Kat Dopper 2020 CREATIVE DIRECTOR, SGLMG

• The moment NGAIIRE, Paul Mac and Inner West Voices brought my partner Brooklyn mardigras.org.au

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100+

17

DAYS

416,880

FESTIVAL AUDIENCE*

EVENTS

16,556 PARTICIPANTS

12,500

1,722

1,635

465

PARADE

EMPLOYMENT

VOLUNTEERS

ARTISTS

* 300,000 Parade; 80,000 Fair Day; 11,401 Party; 2,740 Laneway; 1,404 Diamond Club; 2,076 Side Show; 1,196 Pool Party + Kaftan Party; 1,149 Queer Thinking; 643 Family Fun Day; 5,692 Queer Art After Hours; 1,808 Sissy Ball; 6,731 Festival Hub; 2040 Festival Launch

How would you rate each of these events you participated in overall?

Parade

22

43

Party

10

33

Fair Day

24

49

Festival Hub

26

53

Sissy Ball

15

65

Laneway

16

47

5 (Excellent)

4

3 (Neither here nor there)

18 24

4

13 26

7 18 9

3 3

6 9

20 24 2

1 (Terrible)

5

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StollzNow Mardi Gras 2020 Report

7.8 Million Digital Reach 260 large street banners were on display in the City of Sydney From 10 February to 1 March

3.3 M 52,234 1.75 M 420,350 1.3 M 42,115 FOLLOWERS

FOLLOWERS

FOLLOWERS

1.5 MILLION PAGE VIEWS

43 K 33% INCREASE

Digital reach figures: November 2019 – February 2020

2020 Annual Report

NE T HER L A ND S BEL G I U M UK FR ANCE S PA IN

FIN

LA

ND

Mardi Gras Festival attracts a diverse national and international audience to Sydney each year

CANADA G ER M A N Y AU S T R I A S W I T Z ER L A ND U. S . A .

PORTUGAL

I S R A EL

C HIN A

M EX IC O

H O N G KO N G

S IN G A P O R E

61%

12%

INTERNATIONAL

BR A Z IL

SYDNEY

17%

INTERSTATE

10%

REGIONAL NSW

NE W Z E A L A ND

In 2020, 29% of our attendees came from interstate or overseas. This year we also saw visitors from regional NSW increase by 150% compared to 2019. Mardi Gras is a key tourist destination locally and abroad, as the largest LGBTQI+ festival of its kind in the world. *Source analysis from ticket buyers for Party, Pool Party, Laneway, Diamond Club, Parade Sideshow, Family Fun Day, Kaftan Party and Festival Hub.

4.4 K 545,000

Press Clippings

1,715

1,277

1,203

207

NSW

OTHER STATES

NATIONAL

INTERNATIONAL

2020 Media Results (October 2019 – March 2020 data) Original Spin

BROADCAST REACH VIA SBS mardigras.org.au

10.5 BILLION TOTAL CIRCULATION Digital advertising value $108 million+ 13

Sydney Gay and Lesbian Mardi Gras Board established our 78ers Committee in 2017, comprising six representatives drawn from our current Mardi Gras 78ers Lifetime Membership who were active at Mardi Gras and other LGBTQI+ rights events in 1978.

The 78ers Committee helps ensure appropriate involvement of the original Mardi Gras marchers and other pioneers of the related protests in June, July and August 1978 within the SGLMG organisation and the festival. It also ensures that the struggles hard fought for continue to be recognised so that we never become complacent.

In 2020, the 78ers hosted an information tent at Fair Day, and led the 42nd annual Parade behind the First Nations float. In recent months they’ve hosted social connection meetings via Zoom.

“In 1978 we walked together to fight for our rights and over four decades on we celebrate the many hard-fought positive changes we have seen for our community,” says Lance Mumby. “As pioneers of the LGBTQI+ community we know the gains we have all won are easily lost without continuing to challenge homophobia and discrimination. Sydney Gay and Lesbian Mardi Gras has a vital role to play in this and as a beacon of LGBTQI+ rights.”

Members: Sallie Colechin Rae Giffin Helen Gollan Diane Minnis Lance Mumby Kate Rowe

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2020 Annual Report

Sandi Banks

Remembering Sandi Banks Long term LGBTQI+ advocate Sandi Banks passed away on Monday 16th March after a long battle with cancer. Sandi had taken part in the 2020 Mardi Gras Parade just two weeks before she passed.

Sandi was one of the 53 people arrested by Police on the night of the first Mardi Gras Parade on 24 June 1978. At the Police Commissioner’s Apology to the 78ers in 2018, she spoke movingly of her ordeal at the hands of Darlinghurst Police.

Sandi is remembered by the 78ers Committee as a very special friend who will be sadly missed. She was cheeky, loyal and very convivial. Sandi loved a good discussion, and believed in the feminist adage that the personal is political.

Google Mardi Gras Parade Grants The Mardi Gras Community Parade Grants Program is designed to fund and support a diverse range of community ideas and provide grants to individuals, community groups and not-for-profit groups to help lift their Parade entries to a completely new artistic level. The program is proudly supported by Google.

A total of $60,000 in Grants has been divided among 17 groups to help create extra fabulous floats: • Selamat Datang Indonesian Community • Trikone Australasia • NSW Trans Youth Alliance • Central Coast Pride • Out for Australia • Positive Life NSW • Institute of Many • Party Passport

Kendall Lovett

• Black Dog • Haka for Life

Remembering Kendall Lovett

• Jopuka Productions – Central Coast Youth Arts Centre

Just a few weeks after turning 98, Kendall Lovett, a tireless activist and campaigner for LGBTQI+, refugee and human rights, passed away in October.

• Bentstix Hockey Club

• People with Disability Australia • Aspect Conference Room

Ken joined the Gay Solidarity Group (GSG) after the first Mardi Gras in 1978, and was arrested in the August demonstration in Taylor Square. Often during Mardi Gras parades and demonstrations, Kendall was waiting on alert with bail money ready. Ken stayed active in GSG, later renamed Lesbian and Gay Solidarity into the 2000s, after he and his partner Mannie moved to Melbourne.

• Trans Pride Australia

Ken and his long-term activism for LGBTQI+ and other social change struggles will be sadly missed. Our condolences to Mannie and to Ken’s many friends.

Recipients will be announced in late November 2020 – please check our website at mardigras.org.au to the latest updates.

• Girl Guides • Runway Movement

The ANZ Community Grants

Photo: Kendall Lovett (L) and Mannie De Saxe (R) holding the Lesbian and Gay Solidarity banner at an ‘Out of Iraq’ rally for peace, Melbourne, 2005.

Photo by John Story, courtesy Australian Lesbian and Gay Archives.

mardigras.org.au

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Volunteers of The Year

Aiden O’Dea

The 42nd Sydney Gay and Lesbian Mardi Gras season involved a wonderful workforce of over 1800 enthusiastic, talented and committed volunteers “The contingent of volunteers who dedicated their time and talents in 2020 was not only integral to the success of the Mardi Gras festival season but are the very lifeblood of our organisation. Many have been part of the Mardi Gras family for over 30 years, and without them, a mammoth project the size of our festival could not exist. Our reputation as Sydney’s premier must-attend cultural event is built on the time, effort, and love invested in our cause by our community and has helped us create the largest platform of any Pride organisation in the world. This enables Mardi Gras to not only deliver an annual series of unforgettable events but also to serve and support LGBTQI+ community members and grassroots organisations all year round.” ALBERT KRUGER, CEO When you volunteer with Sydney Gay and Lesbian Mardi Gras, not only will you become a valued member of our team putting on some of the world’s best LGBTQI+ events, but you’ll also be making a difference for our organisation and our communities. Volunteering offers you the opportunity to meet new people, learn new skills, share and contribute to the organisation, learn about our communities and have a great time.

Other benefits are offers of free festival merchandise, invitations to social events and functions, your chance to be recognised in the annual Mardi Gras awards, discounted and complimentary tickets to our events plus products and services offered by sponsors. As a volunteer, you are enriched in our wonderful community and you will meet all kinds of people that may become some of your best friends for life!

16

Want to get involved?

Volunteer opportunities are wide-ranging and varied from event operations to information technology to human resources and logistics. You might need experience for some volunteer opportunities, while for others we’ll provide all the training that you’ll need.

When you volunteer with us, not only will you be having fun at the biggest LBGTQI+ festival in Australia, but you will also be joining a wonderful family that returns each year to make our festival a success.

Every year we hold our Mardi Gras awards as well as our Volunteer Thank You function which recognises excellence throughout the season, honouring the individuals and groups among us who go above and beyond to make our festival one of a kind.

Sadly due to Covid-19, we were not able to hold our annual event, so we gave a few extra awards out to the volunteers that went above and beyond to make our festival one of a kind.

Aiden O’Dea lead the team of volunteers who are tasked with the Parade float entrants. This team plays a key role in the Parade participants experience and helps to ensure that event planning and communication runs smoothly on the day. Aiden’s role is one of the most crucial roles for Parade and he achieved his tasks with professionalism and diligence. Aiden’s attention to detail for planning and communication, as well as his team selection, ensured that the team operated seamlessly on the day. His level of collaboration and kindness in working with everyone was exactly what we would expect of someone representing Mardi Gras.

Aiden’s initiative, passion and hard work makes him a great example of what a leader within our volunteer Parade community should be and he is an absolute delight to work with!

Sarah Pearce Sarah Pearce leads our response team on Parade which involves working directly with police, security, ambulance, Fire and Rescue, Mardi Gras staff, the medical team, community float organisers, volunteer coordinators and their teams on Parade as well the spectators. Sarah is completely committed to the role which involves responding to requests for assistance in various areas of Parade using her excellent communication and leadership skills to achieve this. Sarah’s dedication and professionalism has been an incredible asset to the organisation.

Sarah is an excellent leader who interacts with kindness and clarity with all her team and encourages everyone to do their best. She welcomes new members and empowers them in building their skills. Sarah embodies the true spirit of Mardi Gras and is an absolute legend!

2020 Annual Report

Konstantinos Ziotas

Charlie Steele

Rick Stone

Joel McKinnon

Rina J Hind

Katherine Hudson

Edie Falios

Mardi Gras celebrates and recognises our many wonderful volunteers whose time, efforts and expertise create our festival’s biggest events.

Fair Day Awards

Volunteer Awards

FAIR DAY STALL OF THE YEAR Dogue

AWARD FOR EXCELLENCE IN INNOVATION Joel McKinnon and Katherine Hudson

BEST SPORTS STALL Street Roller Hockey Chix Club

AWARD FOR EXCELLENCE IN LEADERSHIP Kim Williams and Rick Stone

BEST COMMUNITY STALL Sydney Gamers

ICARE AWARD Rina J Hind and Roncisco Del Castillo

BEST STANDARD STALL #nofaux

AWARD FOR EXCELLENCE IN TEAMWORK Charlie Steele and Ron Boyd

FAIR DAY SPECIAL COMMENDATION Bear Bar, Service NSW, Nomos Legal and Quakers

AWARD FOR EXCELLENCE IN SERVICE Edie Fallios and Warren Bishop

Parade Awards BEST CHOREOGRAPHY The Evolution Dancers RON MUNCASTER BEST COSTUME FLAGCOM and Friends

SPECIAL AKNOWLEDGEMENT Adrian Hinder and Konstantinos Ziotas SPECIAL COMMENDATION Andrew Endycott, Christine Carey Darren Kelly, Isaia Akava, Kylie Brown Michelle Rayner and Ty Owen

BEST FLOAT DESIGN Le Petit Bateau art collective BEST INDIVIDUAL AND SMALL GROUP Gay Aged Gaps Relationships RON AUSTIN AWARD FOR MOST FABULOUS PARADE ENTRY Sydney Opera House PARADE SPECIAL COMMENDATIONS NSW Rural Fire Service, Fire and Rescue NSW, NSW State Emergency Service, GLADD – Gay and Lesbian Association of Doctors and Dentists, Asian Marching Boys and Friends, Trans Glamore, Colours of Our Community and Guide Dogs NSW ACT mardigras.org.au

Teresa Legget

Lifetime Achievement Award: Teresa Leggett Each year, the Mardi Gras Lifetime Achievement Award is the most prestigious award we bestow. Mardi Gras Lifetime Achievers are those volunteers, activists and community heroes who have been involved and contributed to Mardi Gras in outstanding ways over a considerable period of time.

2019 was her 17th year organising one of the Mardi Gras Parade’s most wonderful floats. She first went to the Mardi Gras Parade back in 2004 to support her then-husband Michael when he came out as gay. She soon realised she could build her own group float, so the following year she led a group of 15 down Oxford Street – and the ever-amazing annual ‘Free, Gay and Happy’ float was born. This year she also created the ‘Evolution Dancers’ float, and she’s helped support many other outstanding floats over the years.

Adrian Hinder

Kim Williams Ron Boyd Ronald Del Castillo

Warren Bishop 17

In season 42, the Mardi Gras Workshop produced 12 floats, along with assisting the 78ers and starting the repair work to a vast collection of Ron Muncaster costumes. The Workshop additionally produced props and scenic for Fair Day, The Hub and Laneway and produced costumes for Parade and Party.

The Workshop crew is made up of highly skilled Artisans and Artists that come from carpentry, welding, sculpture, painting, scenic and costume-making backgrounds.

Across the season the workshop were lucky to have 160 volunteers who assisted with the production of scenic and costume.

With special thanks to the following volunteers who went above and beyond: Edie Fiallos, Diane Lloyd, Tal Rock, Corrie McDougall, Melissa Muller and Gary Ryan.

Liz Carter

WORKSHOP PRODUCTION MANAGER

Kimma Connor

WORKSHOP COORDINATOR

Leah LeLash

HEAD OF COSTUME

Jane Becker

COMMUNIT Y WORKSHOP MANAGER

Kat Dopper, Liz Carter, Hugh O’Connor and George Savoulis FLOAT DESIGNERS

Matthew Aberline & Maurice Goldberg WORLDPRIDE INFLATABLE

Virginia Ferris

MARDI GR AS CHOREOGR APHER

Ramie Moussa

MARDI GR AS - ZE PUPPET DESIGNER

Michael Cullen

MARDI GR AS - ZE PUPPET CHOREOGR APHER

Martin Lauth & Norwest Productions FLOAT AUDIO AND LIGHTING

Forch Foti & Foti International Fireworks P/L FLOAT PYROTECHNICS

Alex Hunt, Morgan Sheely & Event Engineering P/L FLOAT SAFET Y ENGINEERING

Dan Moore

WORKSHOP CREW FOR SEASON 42:

Kimma Connor Nina Price Simon Stratten William Tynan Matina Moutzouris Mark Smith Aesha Henderson Mick Teixeira Hailey Eastwood Aeron Lopez Melanie Gillbank Grant Freeland AnSo Ridelaire Joshua Gray Tiffany Porto Ramie Moussa Zoe Rolfe Dave Rae Emily Buttle Sarah Lording Jeremy Hastings Cassilda Parkinson India Zegan Laura Nolan Jodie Barker Joe Orrow and the Crew from InDesign Lighting and Shopfitting P/L ZE PUPPET PUPPETEERS:

Aesha Henderson Matina Moutzouris Cassilda Parkinson Mark Ashmore

YAK PUPPET PUPPETEERS:

Gab Paananen Sabrina Angelo Danielle Jackson Drew Wilson

PAR ADE LOGISTICS COORDINATOR

Talib Goss | TRUCK LOGISTICS Cameron Dorrington & Brightwell Transport WORKSHOP LOGISTICS

18

2020 Annual Report

Board Of Directors

Fair Day

Jesse Matheson | CO-CHAIR Mel Schwerdt | CO-CHAIR Christopher Brooke | TREASURER Giovanni Campolo-Arcidiaco Louis Hudson Charlie Murphy Adrian Phoon Rob Smith Kate Wickett

Katherine Hudson Joel McKinnon

Katherine Wolfgramme | BOARD ASSOCIATE Rick Macourt | BOARD ASSOCIATE Company Secretary Charmaine Belfanti

Staff Albert Kruger | CEO Grant Lowe | INTERIM CEO OCT 2019-MAR 2020 & EXECUTIVE PRODUCER

Kat Dopper | 2020 SEASON CREATIVE DIRECTOR FINANCE AND ADMINISTRATION

Claire Beckwith | BUSINESS AND FINANCE MANAGER Rebecca O’Donnell | FINANCE CONSULTANT Callum McLean | ADMINISTRATOR Jafar Abdus-Samad RECEPTION / OFFICE ASSISTANT

DEVELOPMENT

Jason Dixon | HEAD OF PARTNERSHIPS Samantha Hans | PARTNERSHIPS OFFICER FESTIVALS AND EVENTS

Adam Lowe | EXECUTIVE PRODUCER Brock Taffe | FESTIVAL PRODUCER Matthew Higgins | FESTIVAL PRODUCER Tracie Miller | FESTIVAL PRODUCER Lisa Martin | FESTIVAL COORDINATOR Cassandra Looveer | PARADE PRODUCER Emily Santiago | PARADE COORDINATOR Bel West | VOLUNTEERS MANAGER Kris Jones | VOLUNTEERS COORDINATOR Liz Carter | WORKSHOP PRODUCTION MANAGER PJ Gahan | PRODUCTION MANAGER

Parade Warren Bishop Andrew Endycott Terry Everitt Laura Fazzolari Craig Giles Marc Gore Emma Harlock Damon Hartley Adrian Hinder Josh Howard Louis Hudson Ruby Hudson Frank Iannilli Darren Kelly William Klaasen Kee Foong Knuth-Oliver Kohl Maria Lynch Paul McInerney Joel McKinnon Peter Moody Steve Muckersie Aiden O’Dea Thomas Palmer Sarah Pearce Felix Wark Leonard Watson Kim Williams

Medical

Alan O’Riordan Drew Burgess Hayley Wyndham Jem Masters Mark Leelawittayanon Micheal Novy Rachel Smith Rick Stone Ron Boyd Simon Hooper Zintis Duckmanton

DJ Advisory Panel Kat Dopper Kate Monroe jonny seymour

Event Photography / Videography Ann-Marie Calilhanna Cain Cooper Alex Davies Jeffrey Feng Dan Gosse Josephine Ki Markham Lane Ken Leanfore Anna Kucera Vincent Rommelare Bec Stegh

Party Andy Eklund Harley James Weston

FOR FESTIVAL HUB & SISSY BALL

CONTRACTORS

Mothership Events | PRODUCTION FOR PARADE, FAIR DAY, LANEWAY, SIDESHOW, DIAMOND CLUB Fourth Wall | PRODUCTION FOR PARTY Kathy Pavlich | RISK & SECURITY CONSULTANT Sheridan Consulting | PARADE RISK CONSULTANT Original Spin | MEDIA LIAISON bluesoap | WEB DEVELOPERS MARKETING

Grant Gillies | MARKETING MANAGER David Gillett | MARKETING MANAGER Bianca Blancato | MARKETING EXECUTIVE Jan Schneider TICKETING AND ACCREDITATION COORDINATOR

Matt Akersten

SOCIAL MEDIA MANAGER & COMMUNITY LIAISON

Joel De Sá | GRAPHIC DESIGNER mardigras.org.au

19

Following a period of extensive growth and development, Partnerships at Sydney Gay and Lesbian Mardi Gras matured further in 2020 and continued to provide diverse and inclusive government agencies, companies and community organisations with opportunities to highlight the vital work they do in celebrating and elevating their LGBTQI+ staff and customers Breaking the previous year’s corporate investment records once again, the Sydney Mardi Gras partnership program provided funds for the development and production of core festival events, subsidies for community participation and $200,000 worth of direct financial support for other LGBTQI+ charities, projects and community organisations via grants and direct funding programs, half of which was provided directly by Mardi Gras.

Mardi Gras Community Grants Program which provided $100,000 in grants to twelve LGBTQI-focused community organisations and projects and nationwide, selected from over 150 submissions.

Compared to 2019 figures, total government and corporate cash investment in the Mardi Gras grew significantly by 11% to $3,443,256 while contra investment grew by a close 9.3% to a total $1,338,907.

Returning Major Partners who continued to support Mardi Gras and the community were Qantas, Salesforce, Woolworths Group, Vodafone, Myer, Gilead Sciences, Yak Brewing, Facebook, Google and The Star.

With the generous support of strategic sponsor Destination NSW, Mardi Gras continued to contribute significantly to the local and intrastate tourism economies, while the City of Sydney provided banner advertising and event venues such Town Hall for the season launch and Victoria Park for Fair Day.

New companies joining us in the Major Partnership category were L’Oréal, W Hotels, Amazon and Sydney Airport, all of whom participated in the Parade.

In their fourteenth year of sponsorship and sixth as Principal Partner, ANZ contributed the second year of the ANZ and 20

Our broadcast partner SBS brought the full four-hour Parade live to Australian and international screens for the first time this year, with over 1.2 million viewers tuning in at home and abroad thanks to the removal of geo-blocking restrictions.

Key Media Partnerships continued to support Mardi Gras’ marketing and communications with DNA Magazine, Joy FM, KIIS 1065, and Star Observer all returning from the previous season and new partnerships formed with FROOTY Magazine and JCDecaux.

A record number of Official Supporters and Suppliers made valuable contributions to Mardi Gras in 2020 with returning partners Absolut Vodka, ACON, Australia Post, MinterEllison, Powershop, Scotchmans Hill and SKYN Condoms joined by new partners Indeed, City Gym, Bumble, TLC, Marimekko and Sunglass Hut. Mardi Gras also gratefully recognises the essential support of returning Festival and Venue Partners, the Art Gallery of NSW, Moogahlin Performing Arts, The University of Sydney, Queer Screen, Seymour Centre, Sydney Opera House and new partners the Museum of Applied Arts & Sciences, the National Art School, Performance Space, and Minus18.

Each year Mardi Gras works with a number of production companies to deliver the festival, and among these we would like to thank our publicist Original Spin, production companies Fourth Wall and Mothership Events, Hamilton’s Hospitality, and Playbill Venue Management for their contributions to our 2020 Festival.

2020 Annual Report

PRINCIPAL PARTNER

STRATEGIC SPONSORS

GOVERMENT PARTNER

BROADCAST PARTNER

MAJOR PARTNERS

MEDIA PARTNERS

OFFICIAL SUPPORTERS AND SUPPLIERS

ART GALLERY OF NEW SOUTH WALES LOGO GUIDELINES FOR THIRD PARTY USE

Design studio: (02) 9225 1834

FESTIVAL PARTNERS

Primary logo: minimum size 15mm

15mm

Logo on white background: black or PURPLE as shown

C: M: Y: K:

Clear space requirement:

1.5 x x

1.5 x

1.5 x

78 100 0 30

R: G: B:

70 25 100

For the financial year ended 30 June 2020, the organisation is reporting a net operating deficit of $11,295. During the year, $367,508 was provided in community grants and festival support, which means an underlying operating surplus of $356,213 was achieved by the organisation for the financial year.

Sydney Gay and Lesbian Mardi Gras 5 Year Results The following table shows the growth in the organisation over the past 5 years.

2020

2019

2018

2017

2016

$

$

$

$

$

REVENUE

9,457,647 8,341,276

7,562,858

5,419,337

5,048,419

COST OF SALES

7,205,196 4,986,017

5,761,359

3,863,010

3,477,215

GROSS PROFIT

2,252,451 3,355,259 1,801,499 1,556,327 1,571,204

OVERHEAD COSTS

2,263,746 3,135,922

1,740,247

1,382,547

1,388,136

NET PROFIT

(11,295)

219,337

61,252

173,780

183,068

RETAINED EARNINGS

986,780

998,075

778,738

717,486

543,704

In January 2019, the Board agreed that the organisation will formally bid for the right to hold “WorldPride” in 2023. The net operating deficit of $11,295 includes a net contribution of $47,563 associated with the WorldPride bid (overall, the organisation’s net financial support to the WorldPride Bid was $125,100 over two financial periods). This project is now completed and achieved the successful outcome of winning the WorldPride Event for Sydney in 2023.

The organisation has also continued the programme of community grants and support funded from both operational surpluses and corporate partnership programmes, with $367,508 provided this year in community grants and support, taking the total of community grants and festival support provided since 2016 to over $1,042,000.

Key Performance Indicators • Revenue for the year was a record $9,457,647 with a positive variance to budget of $1,489,147 and which was a significant improvement on 2019 of $1,116,371.

The improvement in revenue was driven by the following major factors: • Ticket revenue was $2,462,096, an improvement on budget of $167,661 but the variance to 2019 was down by $154,082.

The improvement to budget was principally driven by an overall increase in ticket sales for the main Party and other key events such as Sideshow, Laneway, Diamond Club, and Sissy Ball.

This was offset by a substantial deficit variance to budget for ticket sales at the Seymour Centre of $153,956.

• Sponsorship was $3,638,936, which reported a positive variance to budget of $388,936 and a significant improvement on 2019 of $373,824. Corporate sponsorship remains a key part of our overall funding programme, that supports not only our community grant and support programmes but all the organisation, which allows funding of a number of crucial community free events, including Fair Day and Parade.

• Contra revenue of $1,785,902 was $560,891 higher to budget and $535,243 higher than 2019 due to overall increased in-kind sponsorship.

• Cost of Sales (direct cost of holding events) was $7,205,197 compared to a budget of $6,288,133. The increase to budget of $917,065 principally relates to the higher than budgeted use of Contra sponsorship across the festival and an increase in festival costs that primarily relate to Fair Day, Sissy Ball, the festival season at the Seymour Centre and the Party.

Cost of Sales were $2,219,180 higher when compared to 2019, a substantial amount of that relates to Contra usage ($1,558,284).

This year, due to internal process changes, there was increased event recognition of the contra use per event.

This year the organisation brought back the Festival Hub in partnership with the Seymour Centre, with ticket sales below budget expectations. However, almost 5,000 tickets were sold to very diverse shows such as Gender Euphoria, Fuck Fabulous, Yummy, and more.

• Gross Profit was $2,252,450, being an improvement of $572,083 on budget and a decline on 2019 of $1,102,809. The major impact on the decline compared to last year is the changed recognition of Contra Expenditure of ($1,558,284).

• Other expenses were $2,263,745, which was an increase on budget of $403,310, and an improvement of $872,177 when compared to 2019. The majority of the increase to budget relates to an increase in contra expenses (refer notes above). Other administration costs have increased to budget due to the addition of WorldPride Bid expenses, which were primarily covered by grants and additional sponsorship.

• The net operating deficit of $11,295, and underlying surplus of $356,213 (before community grants and festival support) exceeds the original approved budget deficit of $180,068, an improvement of $168,773 to budget and reflects the organisations’ continued strong focus on cost management and control.

22

2020 Annual Report

Budget and Last Year to Actual

Segment Reporting

Actual FY20

Budget FY20

VARIANCE TO BUDGET

Actual FY19

Variance FY19

$

$

$

$

$

Parade Segment

INCOME TICKET SALES

2,462,096

2,294,435

167,661

2,616,178

(154,082)

972,803

828,001

144,802

775,639

197,164

3,638,936

3,250,000

388,936

3,265,112

373,824

164,304

107,900

56,404

113,087

51,217

MEMBERSHIP FEES

98,004

110,000

(11,996)

93,142

4,862

DONATIONS

59,951

109,406

(49,455)

80,845

(20,894)

275,651

43,747

231,904

146,614

129,037

CONTRA INCOME

1,785,902

1,225,011

560,891

1,250,659

535,243

TOTAL INCOME

9,457,647

7,968,500

1,489,147

8,341,276

1,116,371

LICENSE & TICKETING FEES

(136,584)

(155,675)

19,091

(145,800)

9,216

VENUE COST

(467,383)

(510,600)

43,217

(572,766)

105,383

(1,107,546)

(1,018,928)

(88,618)

(1,023,335)

(84,211)

ENTERTAINMENT COST

(771,283)

(697,590)

(73,693)

(681,438)

(89,845)

PRODUCTION COST

(890,715)

(743,450)

(147,265)

(768,726)

(121,989)

SECURITY COST

(175,462)

(236,600)

61,138

(228,592)

53,130

(1,346,770)

(1,046,126)

(300,644)

(1,008,114)

(338,656)

OTHER EXPENSES

(449,356)

(392,075)

(57,281)

(250,120)

(199,236)

MARKETING OVERHEAD

(301,814)

(263,232)

(38,582)

(281,697)

(20,117)

LICENSES & FEES SPONSORSHIP & GRANTS BAR SALES

OTHER INCOME

COST OF SALES

INFRASTRUCTURE COST

PERSONNEL COSTS

CONTA EXPENSES

(1,558,284)

(1,223,857)

(334,427)

(25,429)

(1,532,855)

TOTAL COST OF SALES

(7,205,197)

(6,288,133)

(917,064)

(4,986,017)

(2,219,180)

2,252,450

1,680,367

572,083

3,355,259

(1,102,809)

ADMINISTRATION OH

(618,355)

(482,201)

(136,154)

(609,709)

(8,646)

OCCUPANCY OH

(100,569)

(104,588)

4,019

(79,986)

(20,583)

(1,228,691)

(1,202,288)

(26,403)

(1,139,237)

(89,454)

PROFESSIONAL SERVICES

(88,513)

(71,358)

(17,155)

(81,758)

(6,755)

CONTRA ADMIN EXPENSES

(227,617)

-

(227,617)

(1,225,232)

997,615

(2,263,745)

(1,860,435)

(403,310)

(3,135,922)

872,177

-

-

-

-

-

(11,295)

(180,068)

168,773

219,337

(230,632)

GROSS PROFIT EXPENSES

EMPLOYEE BENEFITS EXPENSE

TOTAL EXPENSES OTHER INCOME NET PROFIT/LOSS

mardigras.org.au

Overall Parade operations produced a deficit of $787,276 which is lower when compared to last year’s deficit of $804,876.

This improvement was predominately driven by higher commercial revenue generated from the workshop.

Management are continuing to focus on extending the workshop capacity during season to provide additional community support including weekends and after hours.

Celebration Segment Celebration events, which includes Party and Laneway, produced a surplus of $95,588 which is a decrease of $289,338 on 2019.

Revenue for all our celebration events was down on our events in 2019. Costs were also higher, however as explained above, now better reflect attributed direct contra costs.

Community Grants and Festival Support Segments Festival operations produced a loss of $463,355 which is an increase to 2019 of $121,840. Included in Festival operations are $208,190 provided in community grants / festival support. Unfortunately, the festival season at the Seymour Centre did not generate as much interest as in prior years, and this was reflected in a decline in ticket sales.

Community grants and support generated a deficit of $147,758 compared to a surplus of $28,345 in 2019. This highlights the commitment of Mardi Gras to the community over the year, including contributing to the WorldPride Bid. The organisation continued the grants partnership with ANZ and Google with $159,318 distributed in community grants and parade grants nationally.

These grants are supported by ANZ, Google and Mardi Gras.

The organisation has now delivered over $1,042,508 in community grants and festival support funded by corporate partnerships with Google and ANZ and from the organisation’s own surpluses, since 2016.

23

Community Grants and Festival Support RECIPIENT

$

Community Parade Grants

60,000

ANZ Community Grants

99,318

COMMUNITY GRANTS TOTAL

159,318

Auspiced Grants

10,250

European Pride Assoc

2,541

Festival Club

20,000

Queer Artist Development

15,000

Gender Centre

300

Moogahlin - Koori Gras

15,000

Minus 18

5,000

Performance Space - Queer Development Program

30,000

Playlist Support

10,000

WorldPride Bid

100,099

FESTIVAL GRANTS TOTAL

208,190

TOTAL COMMUNITY AND FESTIVAL GRANTS SUPPORT

$367,508

Performance by Segment FOR THE YEAR ENDED 30 JUNE 20 EVENT

REVENUE

COST OF EVENTS

GROSS PROFITS

$

$

$

FOR THE YEAR ENDED 30 JUNE 19 OVERHEADS

NET RESULTS

REVENUE

COST OF EVENTS

GROSS PROFITS

OVERHEADS

NET RESULTS

VARIANCE

$

$

$

$

$

$

$

$

PARADE PARADE

78,005

(745,977)

(667,972)

-

(667,972)

233,669

(671,237)

(437,568)

(164,566)

(602,134)

(65,838)

PARADE VIEWING

357,644

(397,985)

(40,340)

-

(40,340)

330,372

(374,694)

(44,322)

(12,455)

(56,777)

16,436

WORKSHOP

687,906

(754,342)

(66,437)

(12,527)

(78,964)

494,602

(612,814)

(118,212)

(27,753)

(145,965)

67,002

1,123,555 (1,898,304)

(774,749)

(12,527)

(787,276)

1,058,643 (1,658,745)

(600,102)

(204,774)

(804,876)

17,601

63,449

-

63,449

1,826,605 (1,501,638)

324,966

(44,786)

280,180

(216,731)

(33,454)

-

(33,454)

(12,756)

-

(12,756)

(20,697) (31,176)

SUBTOTAL CELEBRATION PARTY SISSY BALL

1,744,326 (1,680,877) 158,076

(191,530)

41,454

(54,210)

POOL PARTY

49,164

(33,953)

15,211

-

15,211

51,989

(5,602)

46,387

-

46,387

KAFTAN

33,291

(45,546)

(12,255)

-

(12,255)

11,463

(19,372)

(7,908)

-

(7,908)

(4,347)

182,386

(119,750)

62,636

-

62,636

189,668

(98,190)

91,478

(12,455)

79,023

(16,387)

2,167,242 (2,071,655)

95,588

-

95,588

2,121,179 (1,679,012)

442,167

(57,240)

384,926

(289,338)

(125,831)

-

(125,831)

(376,778)

(62,251)

(58,020)

(120,271)

(5,560)

LANEWAY SUBTOTAL FESTIVAL FAIR DAY

315,416

(441,247)

314,527

FESTIVAL

331,938

(669,443)

(337,505)

(19)

(337,524)

364,997

(561,972)

(196,975)

(24,269)

(221,244)

(116,280)

SUBTOTAL

647,355 (1,110,690)

(463,336)

(19)

(463,355)

679,524

(938,750)

(259,226)

(82,289)

(341,515)

(121,840)

124,750

(272,508)

(147,758)

-

(147,758)

129,800

(101,455)

28,345

-

28,345

(176,104)

98,009

(2,812)

95,198

(924)

94,273

93,142

(13,564)

79,578

(1,692)

77,886

16,387

COMMUNITY GRANTS MEMBERSHIP VOLUNTEERS

-

(42,722)

(42,722)

(909)

(43,631)

-

(142,823)

(142,823)

-

(142,823)

99,192

WORLD PRIDE

479,687

(109,096)

370,591

(420,915)

(50,324)

311,103

(101,973)

209,130

(170,691)

38,439

(88,763)

SUBTOTAL

702,446

(427,138)

275,308

(422,748)

(147,439)

534,045

(359,814)

174,231

(172,383)

1,848

(149,287)

213,099

(100,343)

112,756

(1,741,310) (1,683,172)

(25,291)

4,541,398 (1,235,907)

3,305,491

OVERHEADS ORGANISATION SPONSORSHIP

(1,821,218) (1,708,463) (2,963)

3,302,528

58,166

(27)

58,138

2,964,403

(1,033)

2,963,371

(2,114)

2,961,257

341,271

PHILANTHROPY

27,748

(7)

27,740

-

27,740

17,193

(10,000)

7,193

(2,619)

4,575

23,165

MARKETING

34,804

(361,151)

(326,347)

(4,271)

(330,618)

908,124

(338,646)

569,478

(873,184)

(303,706)

(26,912)

3,947,886

(349,706)

3,598,180

(2,619,226)

978,954

312,234

8,341,276 (4,986,027)

3,355,249

(3,135,912)

219,337

(230,632)

SUBTOTAL

4,817,048 (1,697,409)

3,119,640 (1,828,452)

1,291,187

SUBTOTAL

9,457,647 (7,205,196)

2,252,451 (2,263,746)

(11,295)

24

2020 Annual Report

SYDNEY GAY AND LESBIAN MARDI GRAS LTD

ABN 87 102 451 785

Financial Report For the year ended 30 June 2020

TABLE OF CONTENTS

Directors' Report

.................................................................................................................................................................... 3 – 11

Auditor's Independence Declaration

.................................................................................................................................................................... 12

Independent Auditor's Report

.................................................................................................................................................................... 13 –15

Financial Report Consolidated Statement of Profit or Loss

............................................................................................................................................................ 16

Consolidated Statement of Other Comprehensive Income

............................................................................................................................................................ 17

Consolidated Statement of Financial Position

............................................................................................................................................................ 18

Consolidated Statement of Changes in Equity

............................................................................................................................................................ 19

Consolidated Statement of Cash Flows

............................................................................................................................................................ 20

Notes to the Consolidated Financial Statements

............................................................................................................................................................ 21 – 34

Directors' Declaration

.................................................................................................................................................................... 35

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785

DIRECTORS' REPORT

The directors present their report together with the financial report of Sydney Gay and Lesbian Mardi Gras Ltd (“SGLMG” or “the Company”) and its subsidiary Mardi Gras Arts Ltd (“MGA”) (together referred to as “the Group”) for the year ended 30 June 2020 and auditor’s report thereon.

List of Directors and Term of Office The names and details of the Group’s directors in office at any time during or since the end of the year are set out below. The number of meetings of directors held during the year and the number of meetings attended by each director are further set out below.

Directors were in office since the start of the year to the date of this report unless otherwise stated.

Name Jesse Matheson Kat Dopper Giovanni Campolo-Arcidiaco John Hannaford Robyn Kennedy Kate Wickett Christopher Brooke Adrian Phoon Melanie Schwerdt Louis Hudson Charlie Murphy Robert Smith

Date appointed

Date Retired

12 November 2016 12 November 2016 23 September 2017 23 September 2017 23 September 2017 23 September 2017 30 January 2018 27 October 2018 28 October 2019 30 November 2019 30 November 2019 26 May 2020

22 August 2019 1 October 2019 30 November 2019

10 March 2020

A 17 1 17 1 8 17 17 11 13 8 8 2

Board Meetings B 17 1 17 3 9 17 17 11 13 8 8 2

A – Number of meetings attended B – Number of meetings held during the time the director held office during the year All directors were eligible to attend all meetings held.

Company Secretary The Company Secretary at the reporting date and date of this report is Charmaine Belfanti and was appointed on 29 October 2019.

-3-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785

DIRECTORS' REPORT None of the current directors, who were directors during this financial year of SGLMG, are currently directors of any publicly listed companies, nor have they had any such roles in the last 3 years.

Name

Qualifications

Experience

Special Responsibilities

Mel Schwerdt (Co-Chair)

Master of Business (Accountancy), Diploma in Law, Admitted NSW Supreme Court Advanced Diploma Justice Bachelor Applied Science (Ex. Sp Sci) PRINCE 2 Practitioner

Board member for 12 months Member of Director Institute Women Lawyers’ Association of NSW Principal and director, Spark Counsel Legal

Strategic Planning Committee Governance Audit and Risk Committee

Jesse Matheson (CoChair)

Bachelor of Communications (Journalism), University of Technology, Sydney.

Graduate Certificate in Public Policy, University of Sydney

Board member for 4 years. Former Chair of SGLMG Membership Committee. More than 10 years volunteer experience across SGLMG committees and working groups.

Experience across communications, media and public policy. 2 years Secretariat experience for public & NFP Boards.

AICD trained.

Social Justice Committee (Co-Chair) People & Culture Committee

Giovanni CampoloArcidiaco

BA in Italian Literature and Theatre History, Diploma in Internet and Multimedia, PRINCE2 Practitioner

Board member for 33 months; Membership Director of the Sydney Gay & Lesbian Business Association for 2 years; President of Queer Screen (Mardi Gras Film Festival) for 4 years.

Membership Committee (Co-Chair) Strategic Planning Committee 78ers Committee WorldPride Bid Committee Governance Audit and Risk Committee Name Change Community Consultation (Co-Chair) Previous Co-Chair of the board

-4-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785

DIRECTORS' REPORT Information on Directors (continued) Kate Master of Business Wickett Administration Bachelor of Laws and Legal Practice Graduate Diploma Communications (Public Relations)

Board member for 33 months, Midsumma Festival Board for almost 4 years, Board Associate for 12 months.

Strategic Planning Committee, WorldPride Bid Committee Previous Co-Chair of the board

Kat Dopper (Retired August 2019)

Bachelor of Education

Board member for almost 3 years, Executive Event Producer for many brands and charities plus larger organisations such as Destination NSW & the City of Sydney, Founder and Director of Heaps Gay.

Membership Committee (Co-Chair) WorldPride Bid Committee Name Change Community Consultation (Co-Chair)

John Hannaford (Retired October 2019)

Master of Business Administration (currently obtaining) Charles Sturt University, Bachelor of Business (Management) Charles Sturt University, Certificate IV Training and Assessment, Certificate IV Frontline Management

Board member for 2 years, SGLMG Event Fundraising Manager for 5 years, SGLMG Volunteer for 10 years.

People and Culture (Chair) Public Fund Committee 78ers Committee (CoChair) Previous Co-Chair of the board

Robyn Kennedy (Retired November 2019)

Bachelor of Arts, University of NSW

Board member for 2 years. Over 40 years of LGBTQI activism. Long career in social policy, strategic planning and program development across social justice and human rights. Recipient of 2018 ACON Community Hero Award.

A 78er and SGLMG Life Member.

Strategic Planning Committee (Chair), Social Justice Committee (Co-Chair) WorldPride Bid Committee (Chair)

-5-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785

DIRECTORS' REPORT Information on Directors (continued) Bachelor of Economics Christopher Brooke (Accounting) - Flinders (Treasurer) University, Master of Business Administration - University of Adelaide, Fellow CPA Australia, Fellow Institute of Chartered Secretaries and Administrators (London), Graduate Australian Institute of Company Directors, Justice of the Peace

Board member for 29 months, Board member of Aids Council of South Australia – 5 Years.

Governance, Audit and Risk Committee

People and Culture Committee 78ers Committee (CoChair) Previous Co-Chair of the board

Adrian Phoon (Retired March 2019)

Bachelor of Arts (English Literature) (First Class Hons)

Board member for 16 months, Head of Content (Compliance Training) GRC Solutions, Former Board Member MCC Sydney, community volunteer experience for 13 years.

Charlie Murphy

Bachelor of Arts (French and Philosophy)

Former Mardi Gras staff member of 5 years.

Community activist.

Louis Hudson

Advanced Diploma in Architectural Technology Certificate IV in Music Industry Business Management

Board member for 7 months Parade Community Team Co-manager for 9 years Assistant Producer Tropical Fruits NYE festival for 6 years

Robert Smith

Bachelor of Arts (Business Management) Manchester Metropolitan University (UK) Postgraduate Diploma (International Marketing) South Bank University (UK)

Board Member since May 2020 20+ years’ experience in tourism and leisure sector Volunteer and community support.

Previous board experience.

-6-

78ers Committee (Chair) People and Culture Committee

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785

DIRECTORS' REPORT Board Associates Board Associates are appointed by the Board and play an important role in aiding the Board of Directors and the organisation in achieving the strategy by contributing their specialist knowledge, capability, experience and diversity to elevate the work of the Board of Directors and its Committees.

Samuel Day

Appointed May 2017 Retired November 2019

Masters Business Administration 7 years as an independent Board Director, 20 plus years Management Consultant with Happening People and various volunteer roles in LGBTQI+ organisations.

Ricky Macourt

Appointed May 2019

Rick Macourt is a young, queer Gumbaingirr man from Newee Creek and is currently the Senior Manager for Indigenous Engagement at Westpac Group. A former diplomat, having served at the United Nations in both New York and Geneva, as the Australian Government’s only Indigenous representative to the UN World Conference on Indigenous Peoples. He is a graduate of Colombia University’s Indigenous Summer Studies Program. He has and continues to advocate for equality and the selfdetermination of First Nations around the world.

Katherine Wolfgramme

Appointed May 2019 Resigned 31 July 2020

Katherine Wolfgramme is an out and proud transgender woman of Sydney’s LGBTI Community, she is a nationally recognised trans advocate and award winning Gender Diversity Consultant and Trans Awareness Trainer and journalist. She transitioned 30 years ago. In 1997 Katherine became the first transgender woman to legally obtain a female name in her country of birth, Fiji.

Katherine is The Ambassador of the Gender Centre, Chair and producer of Transgender Day of Remembrance 2019.

-7-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785

DIRECTORS' REPORT

Committee Membership As at the date of this report and for the entire reporting year, the Group had a Governance Audit and Risk Committee. The Committee is an advisory committee to the Board of Directors and its purpose, objectives, scope and duties are outlined in a written Charter. The Committee comprises members with relevant skill and/or experience.

During the year and at the reporting date, the members of the Committee are as follows: Governance Audit and Risk Committee

Name

Phillip Kershaw (Independent Co-Chair) Stacey Dowson (Independent Co-Chair) Melanie Schwerdt (Board Director – term commenced Dec 2019) Christopher Brooke (Board Director & Treasurer) Sarah Morgan (Independent Member) Alisdair Campbell (Independent Member) Kevin Frohbus (Independent Member) Giovanni Campolo-Arcidiaco (Board Director – term finished Dec 2019)

Committee Meetings Number attended Number relevant to term

Phillip Kershaw Alisdair Campbell Kevin Frohbus Christopher Brooke

6

6

5

6

5

6

6

6

Giovanni Campolo-Arcidiaco Stacey Dowson Sarah Morgan Melanie Schwerdt

3

3

3

6

4

6

3

3

The 78ers Committee held 10 meetings.

Membership Committee held 4 meetings.

Social Justice Committee met once.

People and Culture Committee did not meet.

-8-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785

Short-term and Long-term Objectives

DIRECTORS' REPORT

The Group’s short-term objectives are to:



Continue to organise and co-ordinate events of celebration, commemoration and protest; and engage in other activities as part of the lesbian, gay, bisexual, transgender, queer and intersex LGBTQI community; Consistently achieve events excellence through creativity, production value, community participation;



Review and re-vision the organisation to meet the needs of its members and the community;



Return the Group to financial sustainability; and



Increase the reserves of the Group to ensure long term sustainability.



The Group’s long-term objectives are to: 

Organise and co-ordinate events of celebration, commemoration and protest; and engage in other activities as part of the gay, lesbian, transgender, bisexual, queer and intersex community;



Increase visibility of the organisation within the wider community;

 

Increase visitation to the organisation’s events and programs both locally and overseas; Consistently achieve events excellence;



Enhance events to ensure long term financial sustainability; and



Increase the reserves of the Group to ensure long term sustainability.

Strategies To achieve its stated objectives, the company has adopted the following strategies: 

Increase artistic and production excellence;



Better involvement from and consultation with our members and community;

 

Open and considered processes to recruit and retain talented people; Better decision making, planning and budgeting at all levels of the organisation; and



Rigorous financial planning, monitoring, risk mitigation and cost control.

Key Performance Measures The Group measures its performance through the use of both quantitative and qualitative benchmarks to assess the financial sustainability of the Group and whether the Group is achieving its short-term and long-term objectives.

The Group undertakes a number of surveys which assist in the measurement of a number of key performance measures, including: 

Attendance statistics;

 

Unique visitation statistics; Financial impact;



Satisfaction levels;



Volunteer numbers; and,



Member numbers.

The Group also undertakes the measurement of the profitability and key financial ratios of each of the events that the Group stages during the year.

-9-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785

DIRECTORS' REPORT Principal Activities The principal activities of the Group during the year were the organisation and co-ordination of an annual LGBTQI cultural and arts festival which produced events of celebration, commemoration and protest as a key part of advancing the community development and promoting the health and wellbeing of the LGBTQI community.

SGLMG is also the parent entity of MGA which forms part of the Group. MGA activities during the year were the organisation of fund raising activities, administration of the MGA Gift Fund, the operation of the creative workshop, and the provision of management and administration services to SGLMG. No significant change in the nature of these activities occurred during the year.

Significant Changes in the State of Affairs There were no significant changes in the state of affairs of the Group that occurred during the financial year under review.

Going Concern The financial report has been prepared on a going concern basis which assumes the Group will be able to pay its debts as and when they become payable for a period of at least 12 months from the date of the financial report.

The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

The Group has prepared a note to this effect as at Note 3: Significant accounting policies, (l) Going Concern.

Significant Events after the Balance date There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Group, to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years.

Environmental Regulation and Performance The Group’s operations are not registered by any significant environmental regulation under laws of the Commonwealth or of a State or Territory.

-10-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 DIRECTORS' REPORT

Indemnification of Auditors To the extent permitted by law, the Group has agreed to indemnify its auditors, Ernst & Young, as part of the general terms and conditions of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial year ended 30 June 2020.

Public Company Limited by Guarantee SGLMG, is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $1 each towards meeting any outstanding obligations of the entity. Based on the number of members as at 30 June 2020, the total amount that members of SGLMG are liable to contribute if SGLMG is wound up is $2,531 (2019: $2,756).

Auditor's Independence Declaration A copy of the auditor's declaration under subdivision 60-40 of the Australian Charities and Not-for profits Commission Act 2012 in relation to the audit for the financial year is provided with this report.

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

Director

Melanie Schwerdt

Christopher Brooke

Dated this 28 September 2020

-11-

Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au

Auditor’s Independence Declaration to the Directors of Sydney Gay and Lesbian Mardi Gras Limited In relation to our audit of the financial report of Sydney Gay and Lesbian Mardi Gras Limited for the financial year ended 30 June 2020, and in accordance with the requirements of Subdivision 60-C of the Australian Charities and Not-for profits Commission Act 2012, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of any applicable code of professional conduct.

Ernst & Young

Daniel Cunningham Partner 28 September 2020

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au

Independent Auditor's Report to the Members of Sydney Gay and Lesbian Mardi Gras Limited Report on the Financial Report Opinion We have audited the financial report of Sydney Gay and Lesbian Mardi Gras Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Australian Charities and Not-for-Profits Commission Act 2012, including: a)

giving a true and fair view of the consolidated financial position of the Group as at 30 June 2020 and of its consolidated financial performance for the year ended on that date; and

b)

complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-Profits Commission Regulation 2013.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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

Material Uncertainty in relation to Going Concern We draw attention to Note 3(l) of the financial report which describes the going concern as at 30 June 2020 and how this has been considered by the Directors in the preparation of the financial report. As a result, conditions exist that indicate a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information obtained at the date of this auditor’s report is the directors’ report accompanying the financial report.

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 of the Directors 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 – Reduced Disclosure Requirements and the Australian Charities and Not-for-Profits Commission Act 2012 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 preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an 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 the 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 this financial report.

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

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

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

•

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 Group’s internal control.

•

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

•

Conclude on the appropriateness of the directors’ 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 Group’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 Group 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.

•

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the directors 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.

Ernst & Young

Daniel Cunningham Partner Sydney 28 September 2020

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2020

2020

2019

$

$

Ticket Sales

2,462,096

2,616,178

Sponsorship

3,638,936

3,265,112

98,004

93,142

Stallholder fees

171,551

143,727

Sale of goods

164,305

113,087

Festival revenue

746,428

581,326

Contra Revenue

1,785,902

1,250,659

Parade entry fees

54,824

50,586

Donations

59,951

80,845

274,880

138,292

9,456,877

8,332,954

Cost of Sales

7,091,746

6,271,867

Gross profit

2,365,131

2,061,087

13,343

17,266

1,223,558

1,136,036

74,607

62,926

5,493

5,346

Depreciation of property, plant and equipment

25,489

23,251

Operating lease rental expenses

87,226

62,720

Marketing and communications

208,290

159,966

Professional fees

88,513

81,758

Contra expenses

227,617

-

WorldPride bid

100,611

20,000

Other expenses

320,805

269,441

2,375,552

1,838,710

(10,421)

222,377

196

306

(1,069)

(3,346)

(873)

(3,040)

Net profit before income tax expense

(11,294)

219,337

(Loss)/Profit before income tax expense (income tax benefit)

(11,294)

219,337

Membership income

Other Income

Occupancy costs Employee benefits expense Insurance Amortisation of intangible assets

Results from operations Interest income Finance costs Net finance costs

Income tax benefit

-

Profit for the year attributable to members of the entity

(11,294)

219,337

The above consolidated statement of profit and loss should be read in conjunction with the accompanying notes.

-16-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2020

2020

2019

$

$

Other comprehensive income

-

-

Income tax benefit (income tax expense)

-

-

Other comprehensive income, net of tax

-

-

Other comprehensive profit for the year, net of tax

(11,294)

219,337

(11,294)

219,337

Total comprehensive profit attributable to members of the entity

The above consolidated statement of other comprehensive income should be read in conjunction with the accompanying notes.

-17-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020

Note

2020

2019

$

$

CURRENT ASSETS Cash and cash equivalents

7

934,305

851,114

Trade and other receivables

8

344,900

176,165

Inventories

9

800

800

Prepayments

10

62,092

44,897

1,342,097

1,072,976

TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment

11

52,724

69,946

Intangible assets

12

17,386

21,678

70,110

91,624

1,412,207

1,164,600

TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables

13

351,680

106,322

Employee benefits liabilities

14

57,591

60,203

16,155

-

Other current liabilities

425,426 TOTAL NON-CURRENT LIABILITIES

-

166,525 -

TOTAL LIABILITIES

425,426

166,525

NET ASSETS

986,781

998,075

Retained Earnings

986,781

998,075

TOTAL EQUITY

986,781

998,075

EQUITY

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

-18-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020

Retained

Total

Earnings

Equity

$

$

As at July 2019

998,075

998,075

Profit for year

(11,294)

(11,294)

Total comprehensive profit for the year

(11,294)

(11,294)

Balance at 30 June 2020

986,781

986,781

As at July 2018

778,738

778,738

Profit for year

219,337

219,337

Total comprehensive profit for the year

219,337

219,337

Balance at 30 June 2019

998,075

998,075

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

-19-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020

Note

2020

2019

$

$

OPERATING ACTIVITIES Receipts from customers

8,252,464

7,917,427

(8,160,132)

(7,558,369)

(1,069)

(3,346)

196

306

91,458

356,018

(8,267)

(23,623)

-

(3,485)

Net cash flows used in investing activities

(8,267)

(27,108)

Net increase in cash and cash equivalents

83,191

328,910

851,114

522,204

934,305

851,114

Payments to suppliers and employees Interest paid Interest received Net cash flows from operating activities

22

INVESTING ACTIVITIES Purchase of property, plant and equipment Purchase of intangibles

Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of financial year

7

-20-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 Note 1: Corporate information Sydney Gay and Lesbian Mardi Gras Ltd (“SGLMG”, “the Company” or “the parent”) is a company limited by guarantee domiciled in Australia.

The consolidated financial statements of the Group as at and for the year ended 30 June 2020 comprise the Company and its controlled entity, Mardi Gras Arts Ltd (“MGA”) (together referred to as the “Group” and individually as “Group entities”).

The Group is a not-for-profit group and is primarily involved in event management and the production and coordination of the Sydney Gay and Lesbian Mardi Gras Festival.

The Group’s principal place of business and contact details are: Address: Telephone: Email: Web address:

Suite 6, 94 Oxford Street, Darlinghurst NSW 2010 02 9383 0900 reception@mardigrasarts.org.au www.mardigras.org.au

The consolidated financial statements of the Group for the year ended 30 June 2020 were authorised for issue in accordance with a resolution of the directors on 28 September 2020.

Note 2: Basis of preparation (i) Statement of Compliance These general purpose consolidated financial statements have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-Profits Commission Regulation 2013. (ii) Basis of measurement These consolidated financial statements have been prepared under the historical cost convention. (iii) Functional and presentation currency The consolidated financial statements are presented in Australian dollars, which is the Group’s functional and presentation currency.

Note 3: Significant accounting policies Unless specified, the accounting policies set out below have been applied consistently to all years presented in these consolidated financial statements. (a) Consolidation The consolidated financial statements present the results of SGLMG and MGA as if they formed a single entity.

Intercompany transactions and balances between the Group entities are therefore eliminated in full.

-21-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 Note 3: Significant accounting policies (continued) (b) Financial instruments The Group’s financial instruments comprise cash and cash equivalents, trade and other receivables and trade and other payables (excluding accruals arising from employee benefits).

Financial instruments are originated at the transaction price, which is equivalent to fair value, and recognised initially after deducting transaction costs. Thereafter, they are measured at amortised cost.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance account (provision for impairment of trade receivables at the reporting date) is recognised if the expected credit loss that is estimated to arise through the collections cycle is forecast to be material.

Trade and other payables are presented as current liabilities unless payment is not due within 12 months from the reporting date. (c) Property, plant and equipment Items of property, plant and equipment are measured at historical cost less accumulated depreciation and accumulated impairment. Cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Repairs and maintenance are expensed as incurred.

Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use. Depreciation is calculated to write off the cost of property, plant and equipment less their estimated residual values using the straight-line basis over their estimated useful lives. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term.

The estimated useful lives of significant items of property, plant and equipment are as follows: - Leasehold improvements 5 years or until expiration of lease - Plant and equipment 4 or 5 years (d) Intangible assets (i) Trademarks and licences Trademarks and licences have a finite useful life and are carried at cost less accumulated amortisation and impairment losses. Amortisation is calculated using the straight-line method to allocate the cost of trademarks and licences over their estimated useful lives, which vary from 10 to 30 years. (ii) Software, including www.mardigras.org.au website Acquisition costs incurred in developing the Website and acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software.

Amortisation is calculated on a straight-line basis over periods of 3 to 7 years. (e) Inventories Inventories are measured at the lower of cost and net realisable value.

-22-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 Note 3: Significant accounting policies (continued) (f) Impairment The carrying amounts of the Group’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or cash-generating unit (CGU) exceeds its recoverable amount. (g) Employee benefits (i) Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months after the end of the year in which the employees render the related service are measured at the amounts expected to be paid when the liabilities are settled. (ii) Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or to providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting year are discounted to present value. (iii) Retirement benefit obligations Contributions payable by the Group to an employee superannuation fund are recognised in the statement of financial position as a liability, after deducting any contributions already paid and in the income statement as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payment is available. (h) Revenue and income recognition (i) Ticket sales and sale of other goods The Group sells tickets to events directly and through third party ticket agencies. Revenue from the sale of tickets to events is recognised upon delivery of the service to the customer. Third party ticketing agencies usually remit ticket money within 14 days of the event being held. Revenue from the sale of other goods to customers is recorded on delivery of the goods to customers. (ii) Membership subscriptions Revenue from members' subscriptions revenue is recognised at the point in time when substantially all of the benefits are received by the members. Revenue is recognised when the Sydney Gay and Lesbian Mardi Gras Season occurs, at which time members are able to receive the benefit of discounted tickets to events. (iii) Donations Revenue from donations is recognised when the Group receives donations or where the Group has an unconditional commitment from the donor. (iv) Contra revenue and expense Revenue from contra revenue and expenditure is recognised when the Group receives "in kind" goods and services and the fair value of those goods and services can be reliably measured.

-23-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 Note 3: Significant accounting policies (continued) When the contribution does not represent an asset at balance date, the Group recognises an expense and associated revenue for these "in kind" goods and services in the consolidated financial report. Where the "in kind" goods and services represent an asset at balance date, both the asset and revenue are recognised in the consolidated financial report. (v) Sponsorship income Sponsorship income in respect of an event is recognised on the day that the event occurs. Sponsorship not directly related to events is recognised as income when the sponsorship benefits are bestowed. (vi) Licence fees Licence fees are recognised as revenue based on the terms of the licence arrangement either when the right is granted or over the licence period. (vii) Grants Grants from the City of Sydney and Destination NSW are recognised at the earlier of receipt of the funds or when the Group’s entitlement to the funds is established. Event-specific grants are brought to account on the day that the event occurs. (viii) Other revenue and income Other revenue or income is recognized when the right to receive the revenue or income has been established and the Group has performed its obligations under the arrangement. (i) Leases On 1 July 2019, the Group adopted AASB 16 Leases.

Under AASB 16, the Group is required to recognise right-of-use assets and lease liabilities for most assets that are held under leases. Prior to the adoption of this standard, assets held by the Group under leases were classified as operating or finance leases, based on an assessment of whether the lease transferred substantially all of the risks and rewards of ownership of the underlying asset.

The Group has elected not to recognise a right-of-use asset and lease liability for the lease over the property at the Group’s principal place of business because the lease expired on 30 June 2020. The Group extended the terms of the lease for one further year. (j) Income tax No income tax expense or benefit for the year has been recorded. (k) Finance income and finance costs Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance costs comprise bank fees and interest on loans and short-term funding. (l) Going Concern The Coronavirus (COVID-19) pandemic which resulted in significant current restrictions imposed by the Australian Government on crowd sizes, social distancing, travel restrictions, quarantine and other measures there is high degree of uncertainty to which extent the festival season can occur in 2021.

-24-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 Note 3: Significant accounting policies (continued) The Group has prepared three financial options, which allows the Group to be adequately flexible to protect the Group from any future negative impact from COVID-19 and to ensure that the Group is a going concern. The first option is the most desirable, which is to produce an annual celebration festival of activities for the gay, lesbian, transgender, bisexual, queer and intersex community based on the Group’s objectives. The second option is to ensure the financial viability of the Group based on the possibility of NSW Government Public Health COVID-19 Restriction Orders that prevents the Group producing an annual celebration festival by prohibiting or restricting festival events. In response, the Group would responsibly cancel the 2021 festival to ensure the safety of the community and the public. Under option two, the Group’s income would be greatly reduced and accordingly festival programs and related costs have been adjusted. Option three would include a limited festival with small crowd sizes focusing on online platforms.

The Group’s Directors have undertaken a thorough review of the operating budgets and cash flows associated with all three options and have assessed that the Group continues to be a going concern under all three options and have therefore made no adjustments to the financial statements for going concern.

While the budget for all options show a profit for the financial year, a key driver is the sponsorship income.

Under option 2, the Group assumes a full contribution from all sponsors and government partners currently signed up. The Group deems the underlying contracts sufficient to guarantee the revenue even in a case of a full cancellation. Option 3 assumes sufficient interest by sponsors and government partners to match the sponsorship revenue achieved in the current financial year.

The Group shows net assets of AUD 981,781 as of 30 June 2020 and its current assets exceed its current liabilities by AUD 916,671. The Group does not have any external debt. Therefore, the Group’s directors are confident that the Group’s going concern assumption is appropriate. (m) Changes in accounting policies, new and amended standards and interpretations The Group adopted the following new accounting standards on 1 July 2019: -

AASB 1058 Income for Not-for-Profits,

-

AASB 15 Revenue from Contracts with Customers, and

-

AASB 16 Leases.

The transition to these standards did not result in an adjustment to the Group’s financial position on transition and to its ongoing performance and reporting thereof.

The change to the Group’s lease accounting policy is outlined in (i) above. (n) 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 (ATO) and for receivables and payables that are stated inclusive of the amount of GST. The net amount of GST recoverable from or payable to the ATO is included as part of receivables or payables in the statement of financial position.

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

-25-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 Note 4: Financial risk management The Group's activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group.

The Group does not use derivative financial instruments because the Group does not have significant direct interest rate risk, borrowings.

Direct currency exposures for overseas artists are minimal and limited in terms of timing and as such, they are not hedged and are converted to foreign currency at the date of payment of the fees.

Note 5: Income Tax The Group has sought and received independent advice confirming that the Group is income tax exempt for the periods ended 30 June 2003, 2004 and 2005, and continued to self-assess for the years ended 30 June 2006, 30 June 2007, for the nine months ended 31 March 2008, and the periods ended 31 March 2009, 31 March 2010, 31 March 2011. The Company was registered as a charity with the Australian Taxation Office with effect from 3 December 2012 and was tax exempt from the same date.

Note 6: Critical accounting estimates and judgments Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under the circumstances.

The Group does not believe that any significant judgments, estimates and assumptions have been made in applying accounting policies that are not already outlined in the relevant Note to the consolidated financial statements.

2020

2019

$

$

No te 7: C ash and cash eq uivalents Cash

934,305

851,114

934,305

851,114

(a) Reconciliation to cash at the end of the year The above figures agree to cash and cash equivalents at the end of the financial year as shown in the consolidated statement of cash flows. (b) Risk Exposure The maximum exposure to credit risk at the end of the reporting year is the aggregate carrying amount of the Group’s financial assets.

The group's exposure to interest rate risk is discussed in Note 4. (c) Public Fund As at the end of the year, an amount of $255,708 ($2019: $162,743) is held as part of the MGA public fund and is not available for use as general working capital. Withdrawals from the public fund are subject to approval of the Public Fund Committee in accordance with the requirements set out by the Register of Cultural Organisations, “ROCO”.

-26-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

2020

2019

$

$

Note 8: Trade and other receivables Trade receivables

94,451

191,375

Sundry Debtors

131,000

-

WorldPride Loan

100,000

-

Goods & service tax

19,449

(15,210)

344,900

176,165

Trade receivables are non-interest bearing and are generally on terms of 30-90 days. During the year $9,591 of debt was written off (2019: $0) (a) Unrecoverable receivables As at 30 June 2020, no debts were considered unrecoverable. (b) Past due but not impaired As at 30 June 2020, trade receivables of $6,432 (2019: $35,118 ) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default and the forecast loss, if any, is expected to be insignificant. The ageing analysis of these past due trade receivables is as follows:

Up to 3 months

78,809

156,375

Over 3 months/under 6 months

9,210

40

Over 6 months

6,432

35,118

94,451

191,533

(c) Not past due and not impaired The current trade receivables of $88,019 (2019: $156,415 ) and current other receivables of $0 (2019: $0) are not past due. Based on the credit history, it is expected that these amounts will be received when due. The Group does not hold any collateral in relation to these receivables.

Note 9: Inventory Inventory - at cost

800

800

800

800

Inventory comprises of auction items held for re-sale. As at 30 June 2020, inventory of $0 (2019: $0) was written off as obsolete.

-27-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 2020

2020

$

$

Note 10: Prepayments Prepayments

62,092

44,897

310,440

302,173

(257,716)

(232,227)

52,724

69,946

77,827

77,827

(77,827)

(77,827)

Note 11: Property, plant and equipment Plant and equipment Cost or fair value Accumulated depreciation

Leasehold improvements Cost or fair value Accumulated depreciation

Net property, plant and equipment

-

-

52,724

69,946

Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

2020

Plant & Eq uipment

Leaseho ld impro vements

To tal

$

$

$

Opening net book amount

69,946

-

69,946

8,267

-

8,267

(25,489)

-

(25,489)

52,724

-

52,724

Additions Depreciation Closing net book amount

-28-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 2020

2019

$

$

Note 12: Intangible assets Software Cost Accumulated amortisation

68,639

68,639

(64,482)

(60,321)

4,157

8,318

23,562

22,362

(10,333)

(9,002)

13,229

13,360

17,386

21,678

Trademarks and domain names Cost Accumulated amortisation

Net intangible assets

Movements in Carrying Amounts Movement in the carrying amounts for each class of intangible assets between the beginning and the end of the current financial year.

2020

So ftw are

Trademarks & D o main Names

To tal

$

$

$

Opening net book amount

8,318

13,360

21,678

-

1,200

1,200

(4,161)

(1,331)

(5,492)

4,157

13,229

17,386

Additions Depreciation Closing net book amount

2020

2019

$

$

Note 13: Trade and other payables Trade payables

301,698

78,956

Other payables

49,982

27,366

351,680

106,322

-29-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 2020

2019

$

$

Note 14: Employee benefits liabilities Liability for superannuation

18,090

18,632

Liability for salary sacrifice

1,200

-

38,301

41,571

57,591

60,203

Liability for annual leave

Note 15: Member guarantee SGLMG is incorporated with the liability of members limited by guarantee. In accordance with the SGLMG constitution, the liability of each member is limited to $1.00 in the event SGLMG is wound up. All memberships are of 1 year duration unless otherwise stated.

The number of members at the end of the financial year was:

2020

2019

No .

No .

1,951

2,126

78ers/Lifetime

286

252

Concession

214

242

Friends

Friends overseas

80

136

2,531

2,756

-

-

Note 16: Key management personnel Key management personnel compensation Key management personnel compensation

All directors provide their services on a voluntary basis and do not, other than for reimbursement of approved expenses incurred, receive remuneration from the Group. The directors were considered to be the only Key Management Personnel of the Group because they are the only persons having authority and responsibility for planning, directing and controlling the activities of the Group. Key decisions in respect of planning, directing and controlling are only made by the Board of Directors. Refer Note19.

All staff are retained by MGA and provided to SGLMG under an inter-company services agreement.

Note 17: Contingencies As at 30 June 2020, there were no other contingent assets or liabilities.

Note 18: Events after balance sheet date There have been no items of significance subsequent to 30 June 2020, and as at the date of this report that would impact the results as outlined in this financial report.

-30-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 Note 19: Related party transactions A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party.

Directors and Committee Members receive limited attendance benefits to its own events in accordance with SGLMG’s Complimentary Ticketing Policy.

Directors receive reimbursement for expenses incurred during the normal daily business of carrying out their duties in attending Board Meetings, or SGLMG events.

Key management personnel reimbursement Key management personnel reimbursement *

48,248

-

* Key management personnel reimbursement related to travel expenses for the activation of the World Pride Bid 2023.

Note 20: Non-cancellable operating lease commitments SGLMG leases an office under a non-cancellable operating lease expiring in 2020.

2020

2019

$

$

Commitments for minimum lease payments in relation to non-cancellable operating lease are payable as follows: within one year later than one year not later than five years

6,150

68,425

-

-

6,150

68,425

It is Mardi Gras intention to renew its’ lease for another year. The lease is currently being renewed and during this process, the lease is month-to-month until the lease is signed.

Note 21: Subsidiary – Mardi Gras Arts Ltd (“MGA”) MGA was incorporated on 4th June 2012. MGA is deemed to be a controlled entity of SGLMG by the fact that all the directors of MGA are the directors of SGLMG and any change to the constitution of MGA is subject to a resolution of the members of SGLMG. There is an intercompany revolving loan facility provided to MGA of up to $350,000. The facility is currently drawn to $9,411 and allows further draw-downs to fund the workshop each season.

-31-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 2020

2019

$

$

Note 22: Reconciliation of profit/(loss) to net cash inflow from operating activities Profit for the year

(11,295)

219,337

-

-

30,982

28,597

-

-

(1,200)

-

(168,735)

97,657

(17,195)

(43,373)

Decrease in other current assets

-

17,710

Increase in other non-current assets

-

-

Increase in trade and other payables

245,358

11,831

(Decrease)/increase in employment benefits

(2,612)

24,259

Increase in other liabilities

16,155

-

91,458

356,018

Interest expense Depreciation and amortisation Bad debt expense Provisions Change in operating assets and liabilities (Increase)/decrease in trade and other receivables (Increase) in prepayments

Net cash inflow from operating activities

Note 23: Charitable fundraising activities Below is additional information furnished under the Charitable Fundraising Act 1991 and the Office of Charities Fundraising Authorities Conditions.

Income Statement for each Fundraising Appeal for the year ended 30 June 2020

Pro ceeds

Surplus

Margin

$

$

$

31,846

31,846

31,846

31,846

Assets

Liabilities

Net Assets

$

$

$

-

-

-

-

-

-

Fundraising Appeals Fair Day Bucket Collection Totals fro m all Fundraising Appeals

100%

Balance Sheet fo r each fundraising appeal Fair Day Bucket Collection Totals fro m all Fundraising Appeals -32-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

Notes to Fundraising for Charitable Purposes During the year, SGLMG received income from a fundraising activities defined under the Charitable Fundraising Act:  Fair Day Bucket Collections; The gross proceeds (which also represents the net surplus realised) is presented in the consolidated statement of profit or loss as part of donations and other income.

Note 24: Information relating to Sydney Gay and Lesbian Mardi Gras Ltd (the Parent)

2020

2019

$

$

873,723

884,496

16,855

21,447

Total assets

890,578

905,943

Current liabilities

170,748

49,058

Total liability

170,748

49,058

Retained earnings

856,885

716,748

Profit of the Parent entity

(137,055)

140,137

Total revenue of the Parent entity

8,619,098

7,768,490

Current assets Non current assets

Note 25: WorldPride 2023 Bid – Profit and Loss In 2018, SGLMG decided to pursue WorldPride 2023 for Sydney, in recognition of our role in the Asia region and our commitment to equality and human rights.

In October 2019, we won the right to host World Pride in Sydney in 2023.

-33-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 World Pride Bid - Profit and Loss Income City of Sydney

2020

2019

$

$

50,000

-

-

90,909

112,000

80,000

25,000

-

100,100

25,000

-

70,000

5,000

-

16,298

45,194

308,398

311,103

140,929

133,734

32,158

19,711

Travel

154,230

59,023

Wages

10,000

15,000

Other

2,346

-

16,298

45,194

Total expenses

355,961

272,662

Net (deficit)/surplus

(47,563)

38,441

ANZ NSW Dept of Premier & Cabinet NT Dept of Chief Minister Mardi Gras Arts Ltd Tourism Australia Other Contra income Total income Expenses World Pride Bid Activation Marketing

Contra expenses

-34-

SYDNEY GAY AND LESBIAN MARDI GRAS LTD ABN 87 102 451 785 DIRECTORS' DECLARATION

The directors of the Group declare that: 1.

The consolidated financial statements and notes, as set out on pages 12-34, are in accordance with the Australian Charities and Not-for profits Commission Act 2012 and: (a)

comply with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-Profits Commission Regulation 2013; and

(b)

give a true and fair view of the Group’s financial position as at 30 June 2020 and of its performance for the year ended on that date of the Group.

2.

In the directors' opinion there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.

3.

As an authorised fundraiser: (a)

the Consolidated Statement of Comprehensive Income (income statement) gives a true and fair view of all income and expenditure of the Group with respect to fundraising appeals, and

(b)

the Consolidated Statement of Financial Position (balance sheet) gives a true and fair view of the state of affairs of the Group with respect to fundraising appeals conducted by the Group, and

(c)

the provisions of the Charitable Fundraising Act 1991, the Regulations under the Act and the conditions attached to the authority have been complied with by the Group, and

(d)

the internal controls exercised by the Group are appropriate and effective in accounting for all income received and applied by the Group from all of our fundraising appeals.

This declaration is made in accordance with a resolution of the Board of Directors.

Director

Director

Melanie Schwerdt

Christopher Brooke

Dated this 28 September 2020 th

-35-

MARDI GRAS ARTS LTD ABN 41 158 800 018 Financial Report For the year ended 30 June 2020

TABLE OF CONTENTS

Directors' Report

.................................................................................................................................................................... 2 – 4

Auditor's Independence Declaration

.................................................................................................................................................................... 5

Independent Auditor’s Report

.................................................................................................................................................................... 6

Financial Report Statement of Profit and Loss

............................................................................................................................................................ 9

Statement of Other Comprehensive Income

............................................................................................................................................................ 10

Statement of Financial Position

............................................................................................................................................................ 11

Statement of Changes in Equity

............................................................................................................................................................ 12

Statement of Cash Flows

............................................................................................................................................................ 13

Notes to the Financial Statements

............................................................................................................................................................ 14 – 21

Directors' Declaration

.................................................................................................................................................................... 22

MARDI GRAS ARTS LTD ABN 41 158 800 018 DIRECTORS' REPORT The directors present their report together with the financial report of Mardi Gras Arts Ltd (“MGA” or “the Company”) for the year ended 30 June 2020 and auditor’s report thereon.

List of Directors and Term of Office The names and details of the directors in office at any time during or since the end of the year are set out below. The number of meetings of directors held during the year and the number of meetings attended by each director are further set out below.

Directors were in office since the start of the year to the date of this report unless otherwise stated.

Name Jesse Matheson Kat Dopper Giovanni Campolo-Arcidiaco John Hannaford Robyn Kennedy Kate Wickett Christopher Brooke Adrian Phoon Melanie Schwerdt Louis Hudson Charlie Murphy Robert Smith

Date appointed

Date Retired

12 November 2016 12 November 2016 23 September 2017 23 September 2017 23 September 2017 23 September 2017 30 January 2018 27 October 2018 28 October 2019 30 November 2019 30 November 2019 26 May 2020

22 August 2019 1 October 2019 30 November 2019

10 March 2020

Board Meetings B A 17 1 17 1 8 17 17 11 13 8 8 2

17 1 17 3 9 17 17 11 13 8 8 2

A – Number of meetings attended B – Number of meetings held during the time the director held office during the year All directors were eligible to attend all meetings held.

Information on Directors None of the current directors, who were directors during this financial year of MGA, are currently directors of any publicly listed companies, nor have they had any such roles in the last 3 years.

Company Secretary The Company Secretary at the reporting date and date of this report is Charmaine Belfanti and was appointed on 29 October 2019.

Key Performance Measures MGA measures its performance through the use of both quantitative and qualitative benchmarks to assess the financial sustainability of the Company and whether the Company is achieving its short-term and long-term objectives.

-2-

MARDI GRAS ARTS LTD ABN 41 158 800 018 DIRECTORS' REPORT The Company undertakes a number of surveys which assist in the measurement of a number of key performance measures, including:  Attendance statistics; 

Unique visitation statistics;



Financial impact;



Satisfaction levels;



Volunteer numbers; and,



Member numbers.

The Company also undertakes the measurement of the profitability and key financial ratios of each of the events that the Company stages during the year.

Principal Activities The principal activities of MGA during the year were the organisation and co-ordination of an annual LGBTQI cultural and arts festival which produced events of celebration, commemoration and protest as a key part of advancing the community development and promoting the health and wellbeing of the LGBTQI community.

MGA activities during the year were the organisation of fund raising activities, administration of the MGA Gift Fund, the operation of the creative workshop, and the provision of management and administration services to Sydney Gay and Lesbian Mardi Gras Ltd (“SGLMG”). SGLMG is the parent entity of MGA. Significant Changes in the State of Affairs There were no significant changes in the state of affairs of the Company that occurred during the financial year under review.

Significant Events after the Balance Date There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of MGA, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company, in future financial years.

Environmental Regulation and Performance MGA’s operations are not registered by any significant environmental regulation under laws of the Commonwealth or of a State or Territory.

Indemnification and Insurance of Directors and Officers During the year, SGLMG paid a premium to insure all directors and officers of the MGA. Subject to some exceptions, the liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the Company, and any other payments arising from liabilities incurred by the officers in connection with such proceedings, other than where such liabilities arise out of conduct involving willful breach of duty by the officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else to cause detriment to the Company.

Details of the amount of the premium paid in respect of the insurance policies are not disclosed as such disclosure is prohibited under terms of the contract.

-3-

MARDI GRAS ARTS LTD ABN 41 158 800 018 DIRECTORS' REPORT MGA has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify any current or former officer of the Company against a liability incurred as such by an officer.

Indemnification of Auditors To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the general terms and conditions of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial year ended 30 June 2020.

Public Company Limited by Guarantee MGA is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $1 each towards meeting any outstanding obligations of the entity. Based on the number of members as at 30 June 2020, the total amount that members of MGA are liable to contribute if MGA is wound up is $2,531 (2019: $2,074).

Going Concern The accounts have been prepared on a going concern basis. MGA has received an undertaking from its parent, SGLMG, that the parent will support MGA to meet its debts as and when they fall due for a minimum period of twelve months from the date of signing of the 2020 financial report for MGA. Auditor's Independence Declaration A copy of the auditor's declaration under subdivision 60 of the Australian Charities and Not-for profits Commission Act 2012 in relation to the audit for the financial year is provided with this report.

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

Director

Melanie Schwerdt

Christopher Brooke

Dated this 28 September 2020

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Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au

Auditor’s Independence Declaration to the Directors of Mardi Gras Arts Ltd In relation to our audit of the financial report of Mardi Gras Arts Ltd for the financial year ended 30 June 2020, and in accordance with the requirements of Subdivision 60-C of the Australian Charities and Notfor profits Commission Act 2012, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of any applicable code of professional conduct.

Ernst & Young

Daniel Cunningham Partner 28 September 2020

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au

Independent Auditor's Report to the Members of Mardi Gras Arts Ltd Report on the Financial Report Opinion We have audited the financial report of Mardi Gras Arts Ltd (the Company), which comprises the statement of financial position as at 30 June 2020, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion, the accompanying financial report of the Company is in accordance with 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 30 June 2020 and of its financial performance for the year ended on that date; and

b)

complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-Profits Commission Regulation 2013.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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

Material Uncertainty in relation to Going Concern We draw attention to Note 1(j) of the financial report which describes the going concern as at 30 June 2020 and how this has been considered by the Directors in the preparation of the financial report. As a result, conditions exist that indicate a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information is the directors’ report accompanying the financial report.

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

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 of the Directors 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 – Reduced Disclosure Requirements and the Australian Charities and Not-for-Profits Commission Act 2012 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 preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an 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 the 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 this financial report.

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

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

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

•

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

•

Conclude on the appropriateness of the directors’ 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 directors 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.

Ernst & Young

Daniel Cunningham Partner Sydney 28/09/2020

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

MARDI GRAS ARTS LTD ABN 41 158 800 018 STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 30 JUNE 2020

Sponsorship

2020

2019

$

$ -

10,000

27,748

49,072

1,598,340

1,699,299

810,606

490,057

2,436,694

2,248,428

778,650

612,815

1,658,044

1,635,613

13,192

17,266

1,213,208

1,117,583

Insurance

5,133

3,201

Amortisation of intangible software

4,160

4,160

Depreciation of property, plant and equipment

21,029

18,258

Operating lease rental expenses

87,226

62,720

-

10,000

Professional fees

63,833

58,281

Amounts paid to contractors

21,125

92,504

102,805

164,480

1,531,711

1,548,453

126,333

87,160

(572)

(7,960)

Net pr ofi t before i ncome t ax expense

125,761

79,200

P rofi t before i ncome t ax ex pense (i ncome t ax benefi t )

125,761

79,200

Donations Management and service fees Other Income

Cost of Sales Gross profi t Occupancy costs Employee benefits expense

Marketing & communications

Other expenses

Resul t s from operat i ons Net finance costs

Income tax benefit

-

P rofi t for t he y ear at t ri but abl e t o members of t he ent i t y

125,761

79,200

The above statement of profit and loss should be read in conjunction with the accompanying notes.

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MARDI GRAS ARTS LTD ABN 41 158 800 018 STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2020

2020

2019

$

$

O t h e r c o m p r e h e n s i ve i n c o m e

-

-

Income tax benefit (income tax expense)

-

-

Other comprehensive income, net of tax

-

-

O t h e r c o m p r e h e n s i ve p r o f i t f o r t h e y e a r , n e t o f t a x

125,761

79,200

125,761

79,200

T o t a l c o m p r e h e n s i v e pr o f it a tt r i bu ta bl e t o m e m be r s o f th e e n tity

The above statement of other comprehensive income should be read in conjunction with the accompanying notes.

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MARDI GRAS ARTS LTD ABN 41 158 800 018 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020

Not e

2020

2019

$

$

C U RRENT ASSETS Cash and cash equivalents

2

384,568

275,660

Trade and other receivables

3

46,639

31,735

Prepayments

4

35,646

29,959

466,853

337,354

TOTAL C U RRENT ASSETS NON- C U RRENT ASSETS Property, plant and equipment

5

49,098

61,860

Intangible assets

6

4,158

8,318

53,256

70,178

520,109

407,532

243,746

135,009

243,746

135,009

9,411

131,332

9,411

131,332

TOTAL LIA BILITIES

253,157

266,341

NET A SSETS

266,952

141,191

Retained Earnings

266,952

141,191

TOTAL EQU ITY

266,952

141,191

TOTAL NON- C URRENT ASSETS TOTAL ASSETS C U RRENT LIABILITIES Trade and other payables

7

NON- C U RRENT LIABILITIES Loan

8

TOTAL NON- C URRENT LIA BILITIES

EQU ITY

The above statement of financial position should be read in conjunction with the accompanying notes.

-11-

MARDI GRAS ARTS LTD ABN 41 158 800 018 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020

As at Jul y 2 0 1 9 Other comprehensive income

Ret ai ned

Tot al

Earni ng s

Equi t y

$

$

141,191

141,191

-

-

Profit for year

125,761

125,761

Total comprehensive profit for the year

125,761

125,761

Bal ance at 3 0 June 2 0 2 0

266,952

266,952

61,991

61,991

-

-

Profit for year

79,200

79,200

Total comprehensive profit for the year

79,200

79,200

141,191

141,191

As at Jul y 2 0 1 8 Other comprehensive income

Bal ance at 3 0 June 2 0 1 9

The above statement of changes in equity should be read in conjunction with the accompanying notes.

-12-

MARDI GRAS ARTS LTD ABN 41 158 800 018 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020

Not e

2020

2019

$

$

OP ERATING A C TIV ITIES Receipts from customers

1,082,024

604,041

Payments to suppliers and employees

(964,849)

(463,628)

117,175

140,413

(8,267)

(23,622)

-

-

Net cash fl ows used i n i nv est i ng act i v i t i es

(8,267)

(23,622)

Net i ncr ease i n cash and cash equi v al ent s

108,908

116,791

Cash and cash equivalents at beginning of financial year

275,660

158,869

384,568

275,660

Net cash fl ows from oper at i ng act i v i t i es

11

INV ESTING AC TIV ITIES Purchase of property, plant and equipment Purchase of intangibles

C ash and cash equi v al ent s at end of fi nanci al y ear

2

The above statement of cash flows should be read in conjunction with the accompanying notes.

-13-

MARDI GRAS ARTS LTD ABN 41 158 800 018 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 Note 1: Corporate information and accounting policies

Corporate information

The financial statements of Mardi Gras Arts Ltd (‘MGA’) for the year ended 30 June 2020 were authorised for issue in accordance with a resolution of the directors on 28 September 2020.

MGA is a not-for-profit company limited by guarantee incorporated and domiciled in Australia. The Company’s principal place of business and contact details are: Address:

Suite 6, 94 Oxford Street, Darlinghurst NSW 2010 Telephone: 02 9383 0900 Email: reception@mardigrasarts.org.au Web address: www.mardigras.org.au

Basis of preparation (i) Statement of Compliance These general purpose financial statements have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-Profits Commission

Regulation 2013.

(ii) Basis of measurement These financial statements have been prepared under the historical cost convention.

(iii) Functional and presentation currency The financial statements are presented in Australian dollars, which is the Company’s functional and presentation currency.

Significant accounting policies Unless specified, the accounting policies set out below have been applied consistently to all years presented in these financial statements.

(a) Financial instruments The Company’s financial instruments comprise cash and cash equivalents, trade and other receivables, trade and other payables (excluding accruals arising from employee benefits) and loan payable.

Financial instruments are originated at the transaction price, which is equivalent to fair value, and recognised initially after deducting transaction costs. Thereafter, they are measured at amortised cost.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. An allowance account (provision for impairment of trade receivables at the reporting date) is recognised if the expected credit loss that is estimated to arise through the collections cycle is forecast to be material.

-14-

MARDI GRAS ARTS LTD ABN 41 158 800 018 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

Note 1: Corporate information and accounting policies (continued) Trade and other payables and loans payable are presented as current liabilities unless payment is not due within 12 months from the reporting date.

(b) Property, plant and equipment Items of property, plant and equipment are measured at historical cost less accumulated depreciation and accumulated impairment. Cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance are expensed as incurred.

Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use. Depreciation is calculated to write off the cost of property, plant and equipment less their estimated residual values using the straight-line basis over their estimated useful lives. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term.

The estimated useful lives of significant items of property, plant and equipment are as follows: - Plant and equipment 4 or 5 years

(c) Intangible assets - software including www.mardigras.org.au website Acquisition costs incurred in developing the Website and acquiring software and licenses that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised to software.

Amortisation is calculated on a straight-line basis over periods of 3 to 7 years.

(d) Impairment The carrying amounts of the Company’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or cash-generating unit (CGU) exceeds its recoverable amount.

(e) Employee benefits (i) Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months after the end of the year in which the employees render the related service are measured at the amounts expected to be paid when the liabilities are settled. All short-term employee benefit obligations are presented as Trade and other payables. (ii) Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or to providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting year are discounted to present value.

-15-

MARDI GRAS ARTS LTD ABN 41 158 800 018 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

Note 1: Corporate information and accounting policies (continued) (iii) Retirement benefit obligations Contributions payable by the Company to an employee superannuation fund are recognised in the statement of financial position as a liability, after deducting any contributions already paid and in the income statement as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payment is available.

(f) Revenue and income recognition (i) Donations Revenue from donations is recognised when the Company receives donations or where the Company has an unconditional commitment from the donor. (ii) Management fees Management fees are recognised when it is probable that the economic benefits will flow to the Company. (iii) Other revenue and income

Other revenue or income is recognised when the right to receive the revenue or income has been established and the company has performed its obligations under the arrangement. (g) Leases (i) Leased assets On 1 July 2019, the Group adopted AASB 16 Leases.

Under AASB 16, the Group is required to recognise right-of-use assets and lease liabilities for most assets that are held under leases. Prior to the adoption of this standard, assets held by the Group under leases were classified as operating or finance leases, based on an assessment of whether the lease transferred substantially all of the risks and rewards of ownership of the underlying asset.

The Group has elected not to recognise a right-of-use asset and lease liability for the lease over the property at the Group’s principal place of business because the lease expired on 30 June 2020.

(h) Income tax No income tax expense or benefit for the year has been recorded as the Company is tax exempt.

(i) Finance income and finance costs Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance costs comprise bank fees and interest on loans and short-term funding.

(j) Going Concern The accounts have been prepared on a going concern basis. MGA has received an undertaking from its parent, SGLMG, that the parent will support MGA to meet its debts as and when they fall due for a minimum period of twelve months from the date of signing of the 2020 financial report for MGA.

-16-

MARDI GRAS ARTS LTD ABN 41 158 800 018 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

Note 1: Corporate information and accounting policies (continued) The Coronavirus (COVID-19) pandemic which resulted in significant current restrictions imposed by the Australian Government on crowd sizes, social distancing, travel restrictions, quarantine and other measures there is high degree of uncertainty to which extent the festival season can occur in 2021.

SGLMG in its function as the holding company (together the Group) has prepared three financial options, which allows the Group to be adequately flexible to protect the Group from any future negative impact from COVID-19 and to ensure that the Group is a going concern. The first option is the most desirable, which is to produce an annual celebration festival of activities for the gay, lesbian, transgender, bisexual, queer and intersex community based on the Group’s objectives. The second option is to ensure the financial viability of the Group based on the possibility of NSW Government Public Health COVID-19 Restriction Orders that prevents the Group producing an annual celebration festival by prohibiting or restricting festival events. In response, the Group would responsibly cancel the 2021 festival to ensure the safety of the community and the public. Under option two, the Group’s income would be greatly reduced and accordingly festival programs and related costs have been adjusted. Option three would include a limited festival with small crowd sizes focusing on online platforms.

The Group’s Directors have undertaken a thorough review of the operating budgets and cash flows associated with both options and have assessed that the Group continues to be a going concern under all three options.

While the budget for all options show a profit for the financial year, a key driver is the sponsorship income.

Under option 2, the Group assumes a full contribution from all sponsors and government partners currently signed up and any sponsorships currently under negotiation. The Group deems the underlying contracts sufficient to guarantee the revenue even in a case of a full cancellation. Option 3 assumes sufficient interest by sponsors and government partners to match the sponsorship revenue achieved in the current financial year.

The Group shows net assets of AUD 981,781 as of 30 June 2020 and its current assets exceed its current liabilities by AUD 916,671. The Group does not have any external debt. Therefore, the Group’s directors are confident that the Group’s going concern assumption is appropriate.

(k) Changes in accounting policies, new and amended standards and interpretations The Group adopted the following new accounting standards on 1 July 2019: -

AASB 1058 Income for Not-for-Profits,

-

AASB 15 Revenue from Contracts with Customers, and

-

AASB 16 Leases.

The transition to these standards did not result in an adjustment to the Group’s financial position on transition and to its ongoing performance and reporting thereof.

The change to the Group’s lease accounting policy is outlined in (i) above.

(l) 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 (ATO) and for receivables and payables that are stated inclusive of the amount of GST.

-17-

MARDI GRAS ARTS LTD ABN 41 158 800 018 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

Note 1: Corporate information and accounting policies (continued) The net amount of GST recoverable from or payable to the ATO is included as part of receivables or payables in the statement of financial position.

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

2020

2019

$

$

384,568

275,660

384,568

275,660

Not e 2 : C ash and cash equi v al ent s Cash

(a) Reconciliation to cash at the end of the year The above figures agree to cash and cash equivalents at the end of the financial year as shown in the statement of cash flows. (b) Risk exposure The Company does not have significant direct interest rate risk. The maximum exposure to credit risk at the end of the reporting year is the aggregate carrying amount of the Company’s financial assets. (c) Public Fund As at the end of the year, an amount of $255,708 ($2019: $162,743) is held as part of the MGA public fund and is not available for use as general working capital. Withdrawals from the public fund are subject to approval of the Public Fund Committee in accordance with the requirements set out by the Register of Cultural Organisations, “ROCO”.

2020

2019

$

$

Not e 3 : Trade and ot her recei v abl es Goods and services tax Trade receivables

(a) Unrecoverable receivables As at 30 June 2020, no debts were considered unrecoverable.

-18-

8,518

2,172

38,121

29,563

46,639

31,735

MARDI GRAS ARTS LTD ABN 41 158 800 018 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 Note 4: Prepayments

Prepayments

35,646

29,959

35,646

29,959

Cost

110,060

101,793

Accumulated depreciation

(60,962)

(39,933)

49,098

61,860

Note 5: Property, plant and equipment

P l ant and equi pment

Net property, plant and equipment

Movement in Carrying Amounts Movement in the carrying amounts of plant and equipment between the beginning and the end of the current financial year.

P l ant & Equi pment Tot al

2020

$

Opening net book amount

61,860

61,860

8,267

8,267

(21,029)

(21,029)

49,098

49,098

Additions Depreciation Closing net book amount

$

2020

2019

$

$

No te 6: I n ta n gible a s s e ts S o f tw a r e Cost Accumulated amortisation Net intangible assets

-19-

15,410

15,410

(11,252)

(7,092)

4,158

8,318

MARDI GRAS ARTS LTD ABN 41 158 800 018 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

M o v e m e n t in c a r r y in g a m o u n ts Movement in carrying amounts for each class of intangible assets between the beginning and end of the current financial year.

2020

S o f tw ar e

T o tal

$

$

Opening net book amount

8,318

8,318

-

-

Additions Amortisation

(4,160)

(4,160)

4,158

4,158

Closing net book amount

2020

2019

$

$

Not e 7 : Trade and ot her pay abl es Trade payables

145,051

39,530

Other payables

98,695

95,479

243,746

135,009

9,411

131,332

9,411

131,332

Not e 8 : Loans Parent entity revolving loan

On 1 November 2014, MGA entered into a revolving loan facility of up to $350,000. The facility is currently drawn to $9,411. The agreement has been renewed from 30 June 2019 until 30 June 2022. The loan is repayable within 8 weeks from the date the lender gives notice in writing to the borrower requiring the repayment of the outstanding amount but not before 30 June 2022. The rate of interest depending on certain conditions being met is between 6.5% per annum and 9.5% per annum (or such other rate as may be agreed between the Borrower and Lender from time to time).

Note 9: Contingencies As at 30 June 2020, there were no other contingent assets or liabilities.

Note 10: Events after balance sheet date There have been no items of significance subsequent to 30 June 2020, and as at the date of this report that would impact the results as outlined in this financial report.

-20-

MARDI GRAS ARTS LTD ABN 41 158 800 018 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

2020

2019

$

$

Not e 1 1 : Reconci l i at i on of pr ofi t /(l oss) t o net cash i nfl ow fr om operat i ng act i v i t i es Profit for the year

125,761

79,200

25,189

22,419

(14,904)

1,380

(Increase)/decrease in prepayments

(5,688)

(28,435)

Increase/(decrease) in trade and other payables

108,737

44,880

Increase/(decrease) in other liabilities

(121,920)

20,969

Net cash inflow from operating activities

117,175

140,413

Depreciation and amortisation Change in operating assets and liabilities (Increase)/decrease in trade and other receivables

Note 12: Member guarantee MGA is incorporated with the liability of members limited by guarantee. In accordance with the MGA constitution, the liability of the members, is limited to $2,531 (2019: $2,074) in the event MGA is wound up.

All directors provide their services on a voluntary basis and do not, other than for reimbursement of approved expenses incurred, receive remuneration from the Company (“MGA” or “the Company”). The directors were considered to be the only Key Management Personnel of the Company because they are the only persons having authority and responsibility for planning, directing and controlling the activities of the Company. Key decisions in respect of planning, directing and controlling are only made by the Board of Directors.

Not e 1 3 : Key manag ement personnel Key manag ement per sonnel compensat i on Key management personnel compensation

-

-

Note 14: Related party transactions MGA provided the following services to its parent, SGLMG (Sydney Gay and Lesbian Mardi Gras Ltd): (a) Workshop MGA provides a workshop to SGLMG to build floats for the SGLMG parade. MGA charges the full costs of the workshop and a management fee back to SGLMG. (b) Management Services MGA employs the management staff and provides management services back to SGLMG on a shared cost basis. Costs are shared at the end of each financial year on a pro-rata basis to revenue.

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MARDI GRAS ARTS LTD ABN 41 158 800 018 DIRECTORS' DECLARATION The directors of the Company declare that: 1.

The financial statements and notes, as set out on pages 6-21, are in accordance with the Australian

Charities and Not-for profits Commission Act 2012 and: (a)

comply with Australian Accounting Standards – Reduced Disclosure Requirements and the

Australian Charities and Not-for-Profits Commission Regulation 2013 ; and

(b)

give a true and fair view of the Company’s financial position as at 30 June 2020 and of its performance for the year ended on that date of the Company.

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.

3.

As an authorised fundraiser: (a)

the Statement of Profit or Loss and Statement of Other Comprehensive Income gives a true and fair view of all income and expenditure of the Company with respect to fundraising appeals, and

(b)

the Statement of Financial Position gives a true and fair view of the state of affairs of the Company with respect to fundraising appeals conducted by the Company, and

(c)

the provisions of the Charitable Fundraising Act 1991, the Regulations under the Act and the conditions attached to the authority have been complied with by the Company, and

(d)

the internal controls exercised by the Company are appropriate and effective in accounting for all income received and applied by the Company from all of our fundraising appeals.

This declaration is made in accordance with a resolution of the Board of Directors.

Director

Director

Melanie Schwerdt

Christopher Brooke

Dated this 28 day of September 2020 th

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Thank You! Thank you to all the incredible people who make the Mardi Gras Festival possible each year. From our valued members and supporters to the generous volunteers and working groups who donate their time and expertise. Our partners, suppliers, contractors, staff and performers whose efforts combined create a meaningful and world-renowned celebration. To our 78ers, First Nations elders, founding organisations and wider community network whose unique experiences we continue to learn and grow from. To the medical team, emergency services and other agencies who do an incredible job of keeping us safe, as well as our Government partners who support our colourful events.

We are grateful to all the people across our diverse LGBTQI+ communities for showing us WHAT MATTERS in 2020 and being part of an unforgettable Mardi Gras season.

See you at the Sydney Cricket Ground!

The 2021 Sydney Gay and Lesbian Mardi Gras PARADE is there on Saturday 6 March - and it’ll also be LIVE on SBS!