ANNUAL REPORT 2019
Acknowledgements This report has been prepared by Kristine Genovese, Jordan Gibbs, Jack Midalia and Shannon Pearse of Culture Counts™. We would like to thank the West Australian Opera for their support through the development and delivery of the evaluation project. We would also like to thank all stakeholders including public patrons, artists, participants, volunteers and staff for their participation in this project. Date of Preparation: March 2020
Contents Chairman’s Report
4
Executive Director’s Report
5
Principal Partner Wesfarmers Arts
6
Music Director’s Report
7
The Board
8
West Australian Opera
11
2019
14
Private Giving Report
40
Cast of Supporters
41
Economic Impact Assessment
44
Financials 46
Macbeth, photo by James Rogers
WEST AUSTRALIAN OPERA Our dream We want to present opera that moves you, enchants you and makes you think about the magic of being alive in the world today. West Australian Opera seeks to speak to the heart through the human voice. We want to share the joy of music through opera and the powerful stories opera tells. We want to be part of your journey by being with you throughout your life; in schools, communities, regions and the theatre. We want to carry the four hundred year old operatic flame into the next era and never let it go out. Instead we will fuel it and stoke it, we will build it with you and spread it around for all to know and experience.
Our why Bringing people together and making them feel alive through igniting emotions and imaginations with the power of sung stories.
Our strategic issues Six areas emerged as strategic issues that pose as avenues for growth and improvement for our future: communications, audiences, content, experience, financial sustainability, innovation.
Our culture We value people, collaboration, sustainability, innovation, integrity.
Our strategic pillars Content and experience, innovation, communication, audience and access, opera artform development, sustainability.
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Chairman’s Report
I am pleased to present West Australian Opera’s Annual Report for the year ended 31 December 2019. The contribution of our patrons, sponsors and donors is critical to our success, and we are proud to maintain strong partnerships with our supporters all of whom have contributed to our success. West Australian Opera acknowledges and thanks Principal Partner Wesfarmers Arts, Official Airline Partner Qantas, Civic Partner City of Perth, Minderoo Foundation, Lotterywest and Healthway with the message Act-Belong-Commit. We are grateful to the Western Australian Government through the Department of Local Government, Sport and Cultural Industries and Lotterywest and to the
“The contribution of our patrons, sponsors and donors is critical to our success”
Australian Government through the Australia Council. Thank you to patrons who offer personal contributions and continued commitment to the company through the Private Giving Program. We are grateful for leadership donations through the Bendat Scholarship, the Bel Canto Fund, the McCusker Foundation, the James Galvin Family Trust and trusts and foundations who give their support. We are grateful for the gift of FMG shares which we hold. I thank my fellow directors for their support, time and expertise. I thank the management and staff of West Australian Opera for their ongoing work, passion and commitment in bringing opera to the stage.
Andrew Pascoe Chairman, West Australian Opera
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Executive Director’s Report The state opera company was able to share the joy of opera with many people around the state, not only on the mainstage in the beautiful His Majesty’s Theatre, but also around the state through Opera in the Regions presented in the Pinnacles and the Valley of the Giants, Opera in Ningaloo and performances in schools and communities. I acknowledge and thank all of the company’s donors and foundations including support for the Bel Canto Fund, the Bendat Family Foundation, the McCusker Foundation, Galvin Family Foundation, Andrew and Nicola Forrest and the Minderoo Foundation, the generosity of our anonymous donors and stakeholders and supporters of the company. We are the oldest opera company in Australia still trading under the same name and
“Art lies at the heart of our community. There is much research that speaks to the power of the arts to nurture the soul and soften the hardness of everyday life”
same constitution in the same place. At West Australian Opera we love the arts. We want to present opera that moves you, enchants you and makes you think about the magic of being alive in the world today. We speak to the heart through the human voice. We share the joy of music, theatre, dance, acting, visual arts. We bring people together and make them feel alive by igniting emotions and imaginations with the power of sung stories. Art lies at the heart of our community. There is much research that speaks to the power of the arts to nurture the soul; to soften the hardness of everyday life. We want and need to tell our stories, to each other and to the world. It is the aim of West Australian Opera to deliver excellence both on and off the stage, and I wish to acknowledge and thank the Board including Chairman Andrew Pascoe, deputy Chair Catherine Ferrari, Ingrid O’Brien, Jan Stewart, Darren Lewsen, Anthony Gianotti, Christiaan Heyning and Janet Barnes. My grateful thanks to staff and colleagues with whom I work closely all year-round at West Australian Opera, His Majesty’s Theatre, Department of Local Government, Sport and Cultural Industries, Perth Theatre Trust, the Australia Council, Lotterywest, Healthway and industry colleagues.
Carolyn Chard AM Executive Director, West Australian Opera
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Principal Partner Wesfarmers Arts Wesfarmers is Western Australia’s leading corporate supporter of the arts with a demonstrated leadership position in Australia and is the Principal Partner of the state opera company. Wesfarmers Arts recognises that opera offers a unique and rich experience involving principal singers, actors, chorus, orchestra, a conductor, director, choreography and high production values including sets, costumes, lighting and backstage elements: it is indeed a multi-sensory art form. Wesfarmers and West Australian Opera first worked together in 1998. Since then the partnership has expanded to embrace production seasons, the commissioning of a new opera in 2007 through the Wesfarmers Arts Commission Series (The Love of the Nightingale by Richard Mills), annual support and the development of the Wesfarmers Young Artists program. In 2009 Wesfarmers became Principal Partner of the West Australian Opera. This Principal Partnership underpins the ongoing life and vitality of the state opera company. This award winning partnership is fundamental to the state opera company and is appreciated and valued by the board, management, company and audiences.
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Music Director’s Report
2019 has been an extremely busy year for the company, apart from the delivery of performances across the state, we have been programming and developing new initiatives for the 2020 season and beyond. Mainstage activity this year covered La Traviata for Opera in the Park, The Magic Flute in Perth Festival, Sweeney Todd and Macbeth in His Majesty’s Theatre. New technology in the Park, working with Perth Festival, engaging with the world of Music Theatre and co-producing a new Verdi has seen the company deliver on excellent performances and reach audiences beyond previous years. In addition to this we’ve delivered regional concerts in iconic locations, a large education program across the state, community activities in Perth metro and seen development in new audience in areas like our Youth Ambassadors Program.
“New technology in the Park, working with Perth Festival, engaging with the world of Music Theatre and coproducing a new Verdi has seen the company deliver on excellent performances and reach audience beyond previous years”
We’ve worked with our local arts community and held stage auditions, open to anyone, for chorus and principal positions, hearing over 130 singers. This has led to the new Wesfarmers Young Artists being appointed with five singers, a pianist and conductor joining the program. 2020 sees the company present or collaborate on seven performance seasons. Ranging from new indigenous work, a commission, media artists for Opera in the Park, semi-staged oratorio, grand Italian verismo, Opera for Young People and an international production, we’re excited about what opera can and should be for audiences both established and new.
Chris van Tuinen Music Director, West Australian Opera
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The Board Andrew Pascoe
Anthony Gianotti
Chairman (from 5 December 2017)
Board Director (appointed 1 January 2018)
Nomination Committee
Finance and Audit Committee
Risk Committee (COVID19) Andrew Pascoe is a partner in the corporate group of Allens in Perth. Andrew specialises in mergers and acquisitions transactions, and major project and infrastructure development. He also practices in the area of equity capital markets, corporate governance, incorporated and unincorporated joint ventures, foreign investment in Australia, private equity transactions, and a
Anthony is the Chief Financial Officer of Wesfarmers Limited. He was appointed to this role in November 2017 following his appointment as Deputy Chief Financial Officer in July 2017. Prior to this, he was Deputy Managing Director of the Industrials division from February 2017 and Finance Director from August 2015. Anthony started with Wesfarmers in 2004, and his other roles include Manager, Investor Relations; Finance
range of commercial contracts and transactions.
Director of Wesfarmers Insurance and Managing
Catherine Ferrari
his career with Ernst & Young in business services
Deputy Chair Board Director (appointed 2005) Nomination Committee Chair, Artistic Committee Finance & Audit Committee Risk Committee (COVID19)
Director of Wesfarmers Insurance. Anthony began and corporate finance and has held senior corporate finance roles advising on mergers and acquisitions and corporate strategy with Hambros Bank and Société Générale in Sydney, London and Melbourne. Anthony holds a Bachelor of Commerce from Curtin
Catherine Ferrari (B.Bus, MLM, FCPA, GAICD) has 20+
University, a Graduate Diploma in Applied Finance and
years holding a range of senior executive roles as well as
Investments, is a qualified Chartered Accountant and
non executive director roles. Most recently Catherine was
has completed the Advanced Management Program at
the General Manager Customer and Community at the
Harvard Business School. He is a director of a number
Water Corporation. Previous roles include CEO of the
of Wesfarmers Group subsidiaries.
West Australian Symphony Orchestra and State Director of CPA Australia. Catherine is Deputy Chair of the West Australian Opera and a Trustee of the Legal Contribution Trust.
Christiaan Heyning Board Director (appointed 1 August 2018) Artistic Committee Christiaan is a Principal in McKinsey & Company, located in Perth, Australia. He leads the Digital practice for natural resources and heavy industrial sectors in Asia, and the Oil and Gas sector in Australia. He has done extensive work in both Operations and Digital (including AA) in mining. Prior to McKinsey, Christiaan worked for an IT services firm before starting up his own company in eLearning in the late 1990s in Singapore and London. He joined McKinsey in 2003. Christiaan Heyning holds a Masters Degree in applied physics with a specialization in Material Science at the University of Groningen and the University of California at Berkeley.
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Dr Ingrid O’Brien
Jan Stewart
Board Director (appointed 2010)
Board Director (appointed 29 April 2015)
Chair, Marketing and Development Committee
Marketing and Development Committee
Ingrid is a Lecturer in the Marketing discipline in the
Jan Stewart PSM, BA, MSW. HonDLitt.WAsust, FAIM,
Murdoch Business School at Murdoch University, with
GAICD held the position of CEO of Lotterywest from
a special interest in customer engagement. She also
1992 to December 2014. Prior to that, Jan was the
runs her own boutique marketing strategy consultancy.
Director of Grants and Community Development at
As a specialist in the area of marketing strategy, Ingrid
Lotterywest. From February 2016 to September 2016
has over 20 years international consulting experience.
she was acting General Manager of West Australian
She has worked in Australia, UK, Europe, USA and
Ballet. Jan has held a number of voluntary board
China, with a variety of blue-chip companies across a
positions with a diverse range of organisations, both
range of sectors such as financial services, resources,
locally and internationally. These have included that of
not-for-profits, professional services, healthcare, retail,
Senior Vice President on the Executive Committee of
agriculture, government, online marketing and education.
the World Lottery Association for more than eight years. She held the inaugural position of President of the Asia Pacific Lottery Association from 1999 to 2004 and was
Darren Lewsen Board Director (appointed 27 April 2017) Chair, Finance and Audit Committee Risk Committee (COVID19) Darren is the Western Region Assurance Leader for Ernst & Young, where he leads a practice comprising 15 partners and 160 employees. Darren is also a member of EY’s Oceania Assurance Leadership Team. With more than 20 years’ experience providing assurance services and advice across a diverse range of industries, Darren has led audits, due diligence assignments and advisory engagements for a number of Perth’s largest listed companies.
again a member of the Executive Committee of that organization from 2012-14. She was a member of the Hale School Board for 12 years and on the board of Save the Children for 5 years and recently stepped down from the Board of St Bart’s and from the role of Chair of the Centre for Social Impact at UWA. Her current board positions, apart from the West Australian Opera board, are the Perkins Medical Research Institute, MercyCare, and she is a trustee of the Feilman Foundation. Jan is Chairman of the Raine Study Board and member of the University of Western Australia’s Sports Advisory Committee.
Janet Barnes Board Director (appointed 1 August 2019) Marketing and Development Committee Janet Barnes joined Telstra in November 2015 and leads a national team as the Regional Australia Executive. Janet’s diverse industry portfolio includes senior leadership positions within Pharmaceutical, FMCG and more than 10 years within the Financial Services Industry. With an Executive Masters of Business Administration, Janet is a Fellow of the Australian Institute of Management (WA), Graduate of the Australian Institute of Company Directors (GAICD) and holds several board positions with the Australian Institute of Management (WA) Advisory Council, Perth Public Art Foundation and West Australian Opera.
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Opera in the Park La Traviata - Elena Perroni, photo by James Rogers
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West Australian Opera Vice Regal Patron – Governor of Western Australia, The Honourable Kim Beazley AC Patron – Dr Jack Bendat AM CitWA Executive Director – Carolyn Chard AM Music Director – Chris van Tuinen Production Manager – Mandy Farmer Accountant – Debbie Byrnes Artistic Administrator – Kate Larkins Development Manager – Coralie Bishop Education Manager – Terasa Letizia Marketing Manager – Danielle Barlow Development & Marketing Coordinator – Catherine Power Office Coordinator – Holly Langford-Smith Marketing Consultant – Daniele Foti-Cuzzola Sales Consultant – Rachel Sait Stage Manager – Karen Farmer Publicity – Lynne Burford Financial Accountant – Sue Hobson Honorary Life Members Dario Amara Julie Bishop Richard Bonynge AC CBE Terry Bowen Frank Cooper AO Erich Fraunschiel Colin Goddard Francis Landels Bruce Martin AM Margaret McManus Dr Richard Mills AM Annie Patrick Marilyn Phillips Vincent A Warrener AM KHS Patron Wesfarmers Arts Young Artist Program – Emma Matthews Bendat Scholars – Perry Joyce & Ashlyn Tymms 11
West Australian Opera Annual Report 2019
2019 Evaluation The evaluation framework applied by Culture Counts
Dimensions are responded to using a 101-point sliding
uses a standardised set of outcome metrics called
scale. Respondents are asked to indicate how much
‘dimensions’ to measure the quality and impact of
they agree with a statement by sliding the marker
cultural events. They have been developed through
between zero (Strongly Disagree) and 100 (Strongly
extensive work with the sector, internationally tested and
Agree). The resulting data is used to measure the unique
academically validated.
cultural, social, economic and place outcomes of West
Attendees and participants at West Australian Opera
Australian Opera’s 2019 season.
events were surveyed about their experience at the
The infographics show the average scores for outcome
events. Surveys included a set of dimensions that were
metrics that were asked across more than three West
selected in alignment with West Australian Opera’s
Australian Opera attendee and participant surveys in
strategic goals.
2019. These results are used as benchmarks for the report.
QUALITY METRICS
CULTURAL OUTCOMES
Enthusiasm
91%
I would come to something like this again
Captivation
88%
Local Impact
91%
It’s important that it’s happening here
Meaning
83%
Cultural Contribution
90%
It provides an important addition to the cultural life of the area
Rigour
88%
12
It was well thought through and put together
It held my interest and attention
It moved and inspired me
Currency
66%
It made me reflect on the world we live in today
Opera in the Pinnacles, photo by Base Imagery
West Australian Opera Annual Report 2019
SOCIAL OUTCOMES
ECONOMIC OUTCOMES
Inclusion
89%
It made me feel welcome and included
Growth
83%
It could appeal to new audiences
Wellbeing
86%
It had a positive impact on my physical health and mental wellbeing
Access
83%
It gave me the opportunity to access cultural activities
Belonging
81%
It helped me feel part of the community Total sample, n = 1,182 13
2019
Mozart’s The Magic Flute, photo by Iko Freese
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The Magic Flute 20 – 23 February 2019 His Majesty’s Theatre As part of the 2019 program, Perth Festival presented Mozart’s The Magic Flute in association with West Australian Opera and West Australian Symphony Orchestra. Composer: Wolfgang Amadeus Mozart Libretto: Emanuel Schikaneder Directed by: Suzanne Andrade and Barrie Kosky Musical Direction: Jordan de Souza and Hendrik Vestmann Staging: Suzanne Andrade and Barrie Kosky Animation: Paul Barritt (1927) Conceived by: Suzanne Andrade, Paul Barritt (1927) and Barrie Kosky
PROGRAM OUTCOMES Excellence
89%
88%
89%
It is one of the best examples of its type that I have seen
AUDIENCE & EXPERIENCE
5,641
70
Attendees
Net Promoter Score
Local Impact
89%
It’s important that it’s happening in Perth
Were satisfied with their overall experience
Distinctiveness
Insights: Audiences enjoyed this highquality production of Mozart’s The Magic Flute, with almost all survey respondents agreeing that it’s one of the best examples of its type that they’ve seen, it’s important that it’s happening in Perth and it was different from things they’d experienced before.
It was different from things I’ve experienced before
Survey results for Mozart’s The Magic Flute, courtesy of Perth Festival. Total sample, n = 235
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West Australian Opera Annual Report 2019
Sweeney Todd: The Demon Barber of Fleet Street 13 – 20 July 2019 His Majesty’s Theatre Featuring Stephen Sondheim’s haunting score which inspired Tim Burton’s Academy Award-winning film, West Australian Opera was thrilled to bring the razor-sharp melodrama and groundbreaking show to the WA stage. Music and Lyrics: Stephen Sondheim Book by: Hugh Wheeler From an adaptation by: Christopher Bond Originally Directed by: Harold Price Orchestrations by: Jonathan Tunick Director: Stuart Maunder Musical Director and Chorus Master: Brett Weymark Set & Costume Designer: Roger Kirk Lighting Designer: Philip Lethlean Sound Designer: Jim Atkins FEATURING West Australian Opera Chorus West Australian Symphony Orchestra Sung in English
Sweeney Todd: Ben Mingay Mrs. Lovett: Antoinette Halloran Judge Turpin: James Clayton Beadle Bamford: Matt Reuben James Ward Adolfo Pirelli: Paul O’Neill Anthony Hope: Nathan Stark Johanna Barker: Emma Pettemerides Tobias Ragg: Joshua Reckless Beggar Woman: Fiona Campbell Originally produced on Broadway by Richard Barr, Charles Woodward, Robert Fryer, Mary Lea Johnson, Martin Richard in association with Dean and Judy Manos. Licensed exclusively by Music Theatre International (Australasia). All performance materials supplied by Hal Leonard Australia. Presented by arrangement with Victorian Opera and New Zealand Opera.
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West Australian Opera Annual Report 2019
Sweeney Todd: The Demon Barber of Fleet Street, photo by James Rogers
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West Australian Opera Annual Report 2019
AUDIENCE & EXPERIENCE
PROGRAM OUTCOMES
91%
Captivation It held my interest and attention
Enthusiasm
91%
I would come to something like this again
5,138
21%
Attendees
New audience
97%
70
Were satisfied with their overall experience
Net Promoter Score
Rigour
90%
86%
It was well thought through and put together
Growth It could appeal to new audiences
Cultural Contribution
84%
80%
It provides an important addition to the cultural life of the area
Meaning It moved and inspired me
Currency
66%
Sweeney Todd: The Demon Barber of Fleet Street was successful at attracting a higher proportion of new audience when compared to other West Australian Opera mainstages shows, demonstrating the widespread appeal of this innovative production. Its biggest impact was seen in the cultural, economic and quality outcome areas, with the results for the Captivation, Rigour and Growth dimensions exceeding the season benchmarks. Almost all respondents (97%) indicated that they were satisfied with their overall experience, a great achievement for the organisers.
It made me reflect on the world we live in today
Cultural Outcomes
Economic Outcomes
Quality Outcomes Total sample, n = 268
19
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West Australian Opera Annual Report 2019
Macbeth 19 – 26 October 2019 His Majesty’s Theatre This brand new co-production from West Australian Opera and State Opera of South Australia is a gripping telling of Shakespeare’s classic, boasting one of Verdi’s most renowned scores.
Composer: Giuseppe Verdi Libretto: Francesco Maria Piave Conductor: Brad Cohen Director: Stuart Maunder Set and Costume Designer: Roger Kirk Lighting Designer: Trudy Dalgleish FEATURING West Australian Opera Chorus West Australian Symphony Orchestra Sung in Italian with English Surtitles
Macbeth: James Clayton Lady Macbeth: Antoinette Halloran Banquo: Jud Arthur Macduff: Paul O’Neill Lady-in-waiting: Ashlyn Tymms Malcolm: Matthew Lester
“Saw you guys in the Quarry setting last year, moved me to tears, a present from my wife, to put this into contextI’m a working class man, bought up in social housing in a very rough neighbourhood, I’m ex-military and don’t fit any profile that would include opera, but I have grown to love it and I think you do an incredible job, thank you, rest assured I’ll be a regular.” - Survey respondent
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West Australian Opera Annual Report 2019
Macbeth, photo by James Rogers
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West Australian Opera Annual Report 2019
AUDIENCE & EXPERIENCE
PROGRAM OUTCOMES
85%
Enthusiasm I would come to something like this again
Rigour
84%
It was well thought through and put together
5,773
10%
Attendees
New audience
91%
67
Were satisfied with their overall experience
Net Promoter Score
Cultural Contribution
84%
83%
75%
68%
It provides an important addition to the cultural life of the area
Captivation It held my interest and attention
Meaning It moved and inspired me
The survey results for Macbeth reveal that the audience had positive experience, with 91% indicating that they were satisfied overall. A Net Promoter Score of 67 demonstrates an excellent level of brand loyalty amongst attendees and relatedly, dimension results show that respondents were most likely to agree that they’d come to something like this again.
Growth It could appeal to new audiences
Currency
65%
It made me reflect on the world we live in today
Cultural Outcomes
Economic Outcomes
Quality Outcomes Total sample, n = 293
23
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West Australian Opera Annual Report 2019
City of Perth Opera in the Park La Traviata Supported by Lotterywest and Act-Belong-Commit
2 February 2019 Supreme Court Gardens Presented by West Australian Opera and the City of Perth, the annual Opera in the Park is a highlight on Perth’s cultural calendar. The 2019 event featured La Traviata in concert performance – considered the crowning jewel in all of Verdi’s remarkable repertoire. This was a free event supported by Lotterywest and Act-Belong-Commit.
Conductor: Brad Cohen Violetta Valéry: Elena Perroni Alfredo Germont: Paul O’Neill Giorgio Germont: James Clayton Flora Bervoix: Ashlyn Tymms Annina: Rebecca Castellini Gastone de Letorières: Jun Zhang Barone Douphol: Mark Alderson Marchese d’Obigny: Sam Roberts-Smith Dottore Grenvil: Robert Hofmann
“The quality of the opera was superb. The set up very good, quality of sound excellent, the orchestra and opera singers of the finest quality. We are very lucky in Perth to have this facility. It makes me very proud to be a West Australian.” - Survey respondent
Production Manager: Mandy Farmer FEATURING West Australian Opera Chorus West Australian Symphony Orchestra
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West Australian Opera Annual Report 2019
Opera in the Park La Traviata, photo by James Rogers
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West Australian Opera Annual Report 2019
AUDIENCE & EXPERIENCE
PROGRAM OUTCOMES Cultural Contribution
92%
It provides an important addition to the cultural life of the area
Enthusiasm
92%
I would come to something like this again
16,634
42%
Attendees
New audience
99%
79
Were satisfied with their overall experience
Net Promoter Score
Local Impact
91%
It’s important that it’s happening here
Place
89%
84%
It made me feel proud of my local area
Meaning It moved and inspired me
Belonging
82%
81%
78%
It helped me feel part of the community
Growth It could appeal to new audiences
Curiosity It sparked my curiosity and made me want to find out more
Access
77%
Dimension analysis illustrates that the event had a significant cultural and social impact on attendees, by moving and inspiring them and helping them to feel part of the community. The Event Quality metrics performed particularly well, with most respondents agreeing that they’d come to something like this again and that the event provides an important addition to the cultural life of the area.
It gave me the opportunity to access cultural activities
Cultural Outcomes
Economic Outcomes
Quality Outcomes
Social Outcomes
Place Outcomes
Opera in the Park received a phenomenal response, with 99% of the audience indicating that they were satisfied with their overall experience. The event achieved a world-class Net Promoter Score of 78 for West Australian Opera and attracted a large proportion of new audience, with 42% of respondents attending one of their productions for the first time.
Total sample, n = 328
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Opera in the Quarry, photo by Form Visuals
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West Australian Opera Annual Report 2019
Opera in the Quarry 27 – 30 March 2019 The Quarry Ampitheatre Back by popular demand, West Australian Opera presented four concert performances at The Quarry Ampitheatre in 2019. Audiences were invited to gather their friends, pack a picnic and enjoy exciting operatic moments with their state opera company. Featuring a range of opera hits from operas including Tosca, Carmen, Barber of Seville and Sweeney Todd.
Soprano: Emma Matthews Mezzo soprano: Fiona Campbell Tenor: Paul O’Neill Baritone: James Clayton Accompanied by: Chris van Tuinen
AUDIENCE & EXPERIENCE
2,135
21%
Attendees
New audience
100%
82
Were satisfied with their overall experience
Net Promoter Score
“I am really impressed with the way WAO seems to be working hard to take opera to a wider audience and make it more accessible. Thank you.” - Survey respondent
“I loved the venue, the friendly interaction with the audience and of course the professional talent of the performers. I liked the welcome to country at the start of the show and the way the Noongar Elder explained that story telling through song was an ancient tradition which opera also shared.” - Survey respondent
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West Australian Opera Annual Report 2019
Opera in the Quarry, photo by Form Visuals
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West Australian Opera Annual Report 2019
PROGRAM OUTCOMES Enthusiasm
92%
91%
I would come to something like this again
Captivation It held my interest and attention
85%
It’s important that it’s happening here
85%
84%
Cultural Contribution
89%
88%
It provides an important addition to the cultural life of the area
Inclusion It made me feel welcome and included
86%
It was well thought through and put together
Growth It could appeal to new audiences
Cultural Outcomes
Economic Outcomes
It gave me the opportunity to access cultural activities
Meaning It moved and inspired me
Belonging
81%
It helped me feel part of the community
Authenticity
73%
Rigour
88%
It had a positive impact on my physical health and mental wellbeing
Access
Local Impact
90%
Wellbeing
72%
It had a connection to the State/ Country we live in
Heritage It made me feel connected to a shared history/culture
Currency
66%
Quality Outcomes
It made me reflect on the world we live in today
Social Outcomes
Place Outcomes Total sample, n = 61
Opera in the Quarry achieved significant impact across all outcome areas, with each dimension result exceeding or equalling the overall average for the West Australian Opera 2019 season. This event was more likely to hold the audience’s interest and attention and had more potential to appeal to new audiences than the average event in the program. Just over one fifth of attendees of these events were new to West Australian Opera. Impressively, 100% of survey respondents were satisfied with their overall experience and the event achieved a Net Promoter Score of 82. 31
Opera in the Pinnacles, photo by Base Imagery
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West Australian Opera Annual Report 2019
Opera in the Regions Presented by Act-Belong-Commit West Australian Opera is committed to bringing opera to all West Australians. In 2019, three operas were presented in in unique outdoor locations across the state.
Opera in the Pinnacles Presented by Act-Belong-Commit 27 April 2019 Audience members enjoyed an evening of opera hits in the iconic desert landscape. This special performance featured a collaboration with STRUT dance.
Soprano: Emma Matthews Mezzo Soprano: Fiona Campbell Tenor: Paul O’Neill Baritone: Sam Roberts-Smith Accompanist: Tommaso Pollio
AUDIENCE & EXPERIENCE
2,050
50%
Attendees
New audience (WAO)
98%
80
Were satisfied with their overall experience
Net Promoter Score
Minderoo Foundation Opera in Ningaloo Presented by Act-Belong-Commit 15 June 2019 Opera in Ningaloo features a program of beautiful opera hits accompanied by keyboard, hosted in the Osprey Gardens at Ningaloo Centre.
Soprano: Katja Webb Mezzo Soprano: Fiona Campbell Tenor: Paul O’Neill Baritone: James Clayton Accompanist: Tommaso Pollio
Opera in the Valley of the Giants Presented by Act-Belong-Commit 30 November 2019 The power of the human voice is set within the towering tingle trees at Opera in the Valley of the Giants.
Soprano: Naomi Johns Mezzo Soprano: Fiona Campbell Tenor: Bradley Daley Baritone: Sam Roberts-Smith Musical Director and Accompanist: Tommaso Pollio Musicians from the University of Western Australia’s Conservatorium of Music
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West Australian Opera Annual Report 2019
“The atmosphere at Opera in the Valley of the Giants is extraordinary. The amphitheatre like space on the forest floor amongst the towering timber connects me to place and is a beautiful backdrop. Love it! Bring it back again in 2020!� - Survey respondent Opera in the Valley of the Giants
Opera in the Valley of the Giants, photo by Nic Duncan
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West Australian Opera Annual Report 2019
PROGRAM OUTCOMES Enthusiasm
93%
92%
91%
89%
89%
I would come to something like this again
Local Impact It’s important that it’s happening here
Cultural Contribution It provides an important addition to the cultural life of the area
Captivation It held my interest and attention
Inclusion It made me feel welcome and included
86%
85%
83%
82%
78%
86%
It was well thought through and put together
Growth It could appeal to new audiences
Belonging It helped me feel part of the community
Meaning It moved and inspired me
Leverage It could attract a variety of investors
78%
It had a connection to the State/ Country we live in
Currency
Access It gave me the opportunity to access cultural activities
Cultural Outcomes
It had a positive impact on my physical health and mental wellbeing
Authenticity
Rigour
86%
Wellbeing
Economic Outcomes
67%
Quality Outcomes
It made me reflect on the world we live in today
Social Outcomes
Place Outcomes Total sample, n = 180
Half of all attendees at the Opera in the Regions 2019 events were new to West Australian Opera, demonstrating the event’s broad reach and appeal in regional communities. Regional respondents were more favourable to the Access dimension when compared to the overall average, highlighting that communities in these areas are likely to have less opportunities to access cultural activities. With this in mind, Enthusiasm was the highest scoring dimension with most people agreeing that they would come to something like this again. 35
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West Australian Opera Annual Report 2019
Opera in the Community & Act -Belong -Commit Opera in Education West Australian Opera provides opportunities for people of all ages to come together to share operatic experiences through its Opera in the Community and Act-Belong-Commit Opera in Education programs. West Australian Opera’s community programs reach out to people of all ages across the state of Western Australia and foster a sense of friendship and engagement for participants. You can sing, learn and embrace all things opera in a variety of places and spaces. West Australian Opera believes that music, song and the arts should be accessible to all learners. Its school-based programs provide teachers and students with an opportunity to enrich their learning experiences and offers unique experiences with links to the curriculum.
“This was such a great community initiative and has actually lead to me joining a community choir with ladies I met. Lucy was phenomenal and I learned so much and enjoyed it even more than I anticipated I would. Thank you!” - Survey respondent
AUDIENCE & EXPERIENCE
3,202
56%
Participants
New audience
100%
83
Were satisfied with their overall experience
Net Promoter Score
“Wonderful! A real heart-warming experience for all.” - Survey respondent
37
West Australian Opera Annual Report 2019
38
Wesfarmers Arts Singing Classes
West Australian Opera Annual Report 2019
PROGRAM OUTCOMES
94%
92%
91%
Cultural Contribution It provides an important addition to the cultural life of the area
Enthusiasm I would come to something like this again
Local Impact It’s important that it’s happening here
87%
87%
87%
Participation
90%
89%
89%
87%
It encouraged me to participate in community activities
Inclusion It made me feel welcome and included
Skills I gained new skills
84%
80%
It could appeal to new audiences
Captivation It held my interest and attention
Wellbeing It had a positive impact on my physical health and mental wellbeing
Access It gave me the opportunity to access cultural activities
Meaning It moved and inspired me
Belonging It helped me feel part of the community
Stretch
Rigour It was well thought through and put together
Cultural Outcomes
86%
Growth
Economic Outcomes
75%
Quality Outcomes
I did something I didn’t know I was capable of
Social Outcomes
Place Outcomes Total sample, n = 52
Respondents to the Community and Education surveys were most favourable to the Cultural Contribution dimension, agreeing that these programs provide an important addition to the cultural life of the area. Based on West Australian Opera's 2019 average, this cohort were more likely to agree that these events could appeal to new audiences. All participants were satisfied with their overall experience, with over half (56%) participating for the first time in 2019.
39
Private Giving Report Opera matters! Supporting West Australian Opera’s young artists, artistic development, community and education programs can have a lifelong impact. Giving to support the art forms we love can be a civic virtue, whether through bequests, gifts, donation or sponsorship. The generosity of each and every supporter enables West Australian Opera to present and develop Australian artists, to reach out into communities, to put opera on the stage and with the power of our offering to enrich the cultural landscape of our State. There is no question that the support from government and from the corporate sector provides the life blood for a company like ours. But it’s the support of individual philanthropy that provides our lungs. It allows us to breath; it gives us oxygen. It is the very thing that puts a spring in our step and for that we are tremendously grateful. Andrew Pascoe, WAO Chair
Annual Giving Program Annual giving is the most important way to support the company and underpins our everyday operations. The
Planned Giving Program Established in 2008 the Endowment Fund’s purpose is to build capital reserves, which support the company’s ability to present world-class opera productions of the highest calibre with the most talented artists of our time now and for the next generation of artists and individuals. Bequests, major gifts and capital funds created by individuals will be placed within the Endowment Fund. Income earned enables West Australian Opera to keep opera a live and accessible art form for all West Australians. Bequests to West Australian Opera are preserved as the legacies of their donors, people with vision who understand the importance of opera to a community. Becoming an endowment fund supporter through a bequest is a unique opportunity to partner with West Australian Opera and represents a meaningful investment in the arts and in the diverse community of Western Australia.
Fortescue Metals Group Shares
Annual Giving Program enables West Australian Opera
In 2011 the company gratefully received a major gift
to continue to seek ways to shape the company in a
from the Forrest Family. Individual giving in the arts
sustainable way. It helps to keep opera affordable and
is greatly valued. The support that foundations, trusts
accessible to a wide audience.
and donors offer to arts companies has a significant impact on the ability to plan and deliver initiatives. West Australian Opera wishes to acknowledge and thank Andrew and Nicola Forrest for the generous gift of shares. This contribution stands as testament to their commitment to a strong and vibrant arts sector in Western Australia. This unique and unprecedented gift is vital to the company’s future and success.
40
West Australian Opera Annual Report 2019
Cast of Supporters West Australian Opera thanks every donor in the Private Giving Program
SUPPORTER ($1,000+) Gaysie Atkinson Betty Barker
PRINCIPAL PATRON ($5,000+)
Gay & Robert Branchi
Dr Jack Bendat AM CitWA
Dr Peter & Mrs Rae Breidahl
Catherine Ferrari
Claire Brittain & John McKay
Warwick Hemsley
Lynne Burford Publicity
Dr Patricia Kailis AM OBE
Mrs Joan Carney
The Robert Kimpton Family
Helen Carroll
Dr Robert Larbalestier AO
Maureen Connaughton
Annie & Neil Patrick
Frank Cooper AO
Dr Peter Simpson OAM
Lorraine Ellard
Richard Tarala & Lyn Beazley AO
John Evans
Joyce Westrip OAM
Kathryn Hogan & Graham
Anonymous (2)
Droppert Jack Goodacre
BENEFACTOR ($2,500+) Neil Archibald & Alan R Dodge AM Eleanor John Dr Dennis Hayward Francis Landels Dr Bryant Macfie Fiona & Mark Newman Bill Reid Kerry Sanderson AC Michael & Helen Tuite Joyce Young Anonymous (1)
Ulrich & Gloria Kunzmann Ross & Frances Ledger Simon Landers Patrick Lilburne Richard Noble & Co Sonia Phelan Len & Sue Roberts-Smith Glenice Shephard Kim & Keith Spence Yannis Vrodos Dr Chris & Mrs Vimala Whitaker Anonymous (3)
41
TRUSTS AND FOUNDATIONS Minderoo Foundation Bendat Family Foundation James Galvin Family Foundation McCusker Charitable Foundation
Jack Goodacre Darren Lewsen Suzanne Maple-Brown Annie & Neil Patrick
Stan Perron Charitable Trust
Jenny Ranklin
Wright Burt Foundation
Gail Reading Bill Reid
ANDREW AND NICOLA FORREST AO The generous gift of FMG shares is testament to the Forrest’s commitment to a strong and vibrant arts sector in Western Australia. YOUNG ARTIST PROGRAM The Bendat Scholarship James Galvin Family Foundation Society of WA Opera Lovers BEL CANTO FUND Thanks to the leadership donors of the Bel Canto
Anonymous (1) FRIEND ($500+) Prof David Ambrose Cathy Bardon and Bob Cassie Rosemary Grigg & Peter Flanigan Siobhan Beilin Dr Colin Binns & Dr Mi Kyung Lee David Black Friends of His Majesty’s Theatre
Fund
T & E Gerner
YOUNG LEADERS CIRCLE Thank you to our Young Leaders Circle partner Herbert Smith Freehills for their ongoing commitment to this initiative, especially through Yannis Vrodos as the program’s Ambassador. Thank you to the inaugural members of the Young Leaders Circle for their active engagement.
Ian & Sue Hobson
BEQUEST CIRCLE
Clare Thompson
Anita & James Clayton
Agatha van der Schaaf
Lorraine Ellard
Diana Warnock OAM and the late Bill Warnock
Ailsa West
Peter & Hilary Winterton
Anonymous (5)
Anonymous (5)
MACBETH SKETCH TO STAGE
DONORS ($200+)
Gaysie Atkinson Larissa Atkinson Joan Carney Carolyn Chard AM
42
Agatha van der Schaaf
Dr Rosalind Hampton Dita Jevons Jock & Jennifer Laurie Darren Lewsen Anthony & Suzanne Maple-Brown Ingrid O’Brien Jenny Rankin
Thank you to all our donors who support us and help us create and present world-class opera in Western Australia.
THANKS TO OUR PARTNERS FOR THEIR VALUABLE SUPPORT PRINCIPAL PARTNER
PARTICIPATION PARTNER
MAJOR PARTNERS CIVIC PARTNER
OFFICIAL AIRLINE PARTNER
OPERA PARTNERS
TERTIARY EDUCATION PARTNER
GOVERNMENT PARTNERS This project has been assisted by the Australian Government through the Australia Council, its arts funding and advisory body.
Economic Impact Assessment West Australian Opera events hosted in the Perth metro area and regional WA stimulate visitation and spending that would not have otherwise occurred in these locations, with benefits for local businesses and the wider economy. This is especially true for businesses in the vicinity of the events. This section of the report includes calculations that estimate the direct impact of West Australian Opera’s 2019 season across Perth and the rest of the state, and the flow on impacts of this spend. Attendees at Opera in the Quarry and participants of the Community and Education programs weren’t asked economic impact questions, so this impact has not been accounted for in this assessment. With this in mind, it should be noted that this is a conservative estimate of West Australian Opera’s full impact.
Attendee Expenditure Public survey data has been used to calculate the average spend for visitors of each program. Attendance data supplied by organisers has been used to calculate attendance per visitor type. Additionality excludes people who indicated that they would’ve have done something else in the area even if they hadn’t attended the event, because it’s assumed that expenditure from those people would have occurred regardless of their attendance at West Australian Opera. This information is used to calculate the ‘Additionality Adjustment’, which is the weighted percentage of spending that is considered additional. PROGRAM Macbeth Opera in the Park
44
ATTENDANCE 5,773 12,612
Opera in the Regions
2,050
Opera in the Community / Our Voices / Education
3,202
Sweeney Todd
5,138
Opera in the Quarry
2,135
West Australian Opera Annual Report 2019
Additionality WHAT WOULD YOU HAVE DONE IF YOU DIDN'T ATTEND THE EVENT?
MACBETH
SWEENEY TODD
Stayed at home or gone to work
81%
79%
70%
70%
Done something else in the local area
14%
15%
13%
17%
Done something not in the local area
5%
5%
17%
13%
MACBETH
SWEENEY TODD
$95.74
$96.81
$17.61
$152.45
86%
85%
87%
83%
$82.37
$81.88
$15.35
$125.93
$475,542
$420,696
$193,571
$258,163
SPEND Average Event/Surrounding Area Spend Additionality Adjustment Adjusted Spend Per Person Total Impact
OPERA IN OPERA IN THE PARK THE REGIONS
OPERA IN OPERA IN THE PARK THE REGIONS
Direct Economic Impact Combining attendee and organisation expenditure provided by West Australian Opera, the direct economic impact of the 2019 season was estimated to be over $7.5 million. Attendee expenditure
$1,347,973
Sweeney Todd
$420,696
Macbeth
$475,542
Opera in the Park
$193,571
Opera in the Regions
$258,163
Organisation expenditure
$5,612,065
Total Direct Economic Impact
$6,960,038
Multiplied Total Impact The total expenditure as a direct result of West Australian Opera events also benefits a range of sectors as it flows through the economy. For example, customer spending at venues is then further spent on things such as supplies or staff wages. A simplified method of estimating this involves applying a multiplier to direct economic impact. For the purpose of this analysis, output multipliers derived from ABS Input-Output Tables 2012-13 have been applied to total direct expenditure. DIRECT EXPENDITURE
MULTIPLIER
MULTIPLIED ECONOMIC IMPACT
Attendee Expenditure
$1,347,973
2.96
$3,990,000
Organisation Expenditure
$5,612,065
2.92
$16,387,230
Multiplied Total Impact
$6,960,038
$20,377,230
Event and local area expenditure scaled by a multiplier of 2.96, the Australian national Food & Beverage output multiplier. Organisation expenditure scaled by an output multiplier of 2.92, an average of the the Australian national Retail and Hiring Services output multiplier (3.17) and the the Australian national Heritage, Creative and Performing Arts output multiplier (2.67).
45
THE WESTERN AUSTRALIAN OPERA COMPANY INCORPORATED
Financial Report
For the year ended
31 December 2019
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Directors’ Report Your Directors submit the financial report of The Western Australian Opera Company Incorporated for the year ended 31 December 2019. 1.
Directors during the financial year and until the date of this report: Mr Andrew Pascoe (Chairman) Ms Catherine Ferrari (Deputy Chair) Ms Janet Barnes (appointed 1st August 2019) Mr Mario D’Orazio (resigned 22nd March 2019) Mr Anthony Gianotti Mr Christiaan Heyning Mr Darren Lewsen Ms Ingrid O’Brien Ms Jan Stewart
2.
Principal Activities The principal activity of The Western Australian Opera Company Inc in the course of the financial year was the presentation of opera.
3.
Significant Changes No significant change in the nature of these activities occurred during the year.
4.
Operating Result The profit from ordinary activities for the financial year was $221,396 (2018: loss $167,084).
5.
Auditor’s Independence declaration The auditor’s independence declaration under section 60-40 of the Australian Charities and Not For Profit Commission Act 2012 is included in this Annual Report and forms part of the Directors’ Report of The Western Australian Opera Company Inc for the year ended 31 December 2019.
Signed in accordance with a Resolution of the Board.
........................................................................ Andrew Pascoe (Chairman)
........................................................................ Catherine Ferrari (Deputy Chair)
Dated this 8th day of April 2020 1
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019 NOTES
2019 $
2018 $
Revenue
2
1,164,655
1,346,076
Other Income
2
4,713,806
4,311,111
(2,482,098)
(2,739,322)
(70,157)
(16,568)
(743,070) (507,587) (319,093) (360,176) (883,097) (291,787)
(571,283) (580,840) (363,400) (452,711) (812,095) (288,052)
221,396
(167,084)
Other comprehensive income to be reclassified to profit or loss in subsequent periods Increase/(Decrease) in Investment Revaluation Reserve
1,016,002
(107,852)
Total comprehensive income/(loss) for the year
1,237,398
(274,936)
Employee expenses Depreciation Other expenses Production sets, costumes and sound Theatre rental and associated costs Other costs of production Administration expenditure Marketing and promotion expenditure Opera Conference contribution Net profit/(loss) attributable to the Association
The accompanying notes form part of these financial statements
2
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Statement of Financial Position as at 31 December 2019 NOTES
2019 $
2018 $
3,294,058 126,936 139,058
587,848 1,875,000 99,660 122,282
3,560,052
2,684,790
5 8
650,000 216,808
950,000 121,409
9
1,670,933
654,931
TOTAL NON-CURRENT ASSETS
2,537,741
1,726,340
TOTAL ASSETS
6,097,793
4,411,130
681,939 99,935 49,149
335,768 84,249 -
831,023
420,017
42,311 25,173
29,225 -
67,484
29,225
898,507
449,242
NET ASSETS
5,199,286
3,961,888
EQUITY Retained profits Reserves
1,695,649 3,503,637
1,474,253 2,487,635
5,199,286
3,961,888
CURRENT ASSETS Cash and cash equivalents Deposits Trade and other receivables Other current assets
3 4 6 7
TOTAL CURRENT ASSETS NON-CURRENT ASSETS Restricted cash deposits Property, plant and equipment Financial asset at fair value through other comprehensive income
CURRENT LIABILITIES Trade and other payables Short-term provisions Lease Liability
10 11 13
TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-term provisions Lease Liability
11 13
TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES
12
TOTAL EQUITY
The accompanying notes form part of these financial statements 3
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Statement of Changes In Equity for the year ended 31 December 2019 Retained Profits $ Balance at 1 January 2018 Net loss attributable to the Association Decrease in Investment Revaluation Reserve Balance at 31 December 2018
Balance at 1 January 2019 Net profit attributable to the Association Increase in Investment Revaluation Reserve Reduction in Restricted Funds Reserve Addition to Unrestricted Funds Reserve Balance at 31 December 2019
Restricted Funds Reserve $ (Note 12)
Unrestricted Funds Reserve $ (Note 12)
Investment Revaluation Reserve $ (Note 12)
Total $
1,641,337
950,000
1,175,000
470,487
4,236,824
(167,084)
-
-
-
(167,084)
-
-
-
(107,852)
(107,852)
1,474,253
950,000
1,175,000
362,635
3,961,888
1,474,253
950,000
1,175,000
362,635
3,961,888
221,396
-
-
-
221,396
-
-
-
1,016,002
1,016,002
-
(300,000)
-
-
(300,000)
300,000
-
300,000
1,475,000
1,378,637
5,199,286
-
1,695,649
650,000
The accompanying notes form part of these financial statements
4
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Statement of Cash Flows for the year ended 31 December 2019 NOTES
2019 $
2018 $
1,432,311 3,009,088 246,520 1,267,920 81,401 (5,458,386)
1,503,255 2,660,066 60,067 1,275,408 112,961 (5,624,228)
578,854
(12,471)
Cash flows from Investing Activities Payment for property, plant and equipment
(47,644)
(8,844)
Net Cash used in Investing Activities
(47,644)
(8,844)
Net increase/(decrease) in cash held
531,210
(21,315)
3,412,848
3,434,163
3,944,058
3,412,848
Cash flows from Operating Activities Donations and sponsorship received Grants received Dividends Received Receipts in the course of operations Interest Received Payments to suppliers and employees Net cash provided/(used) by Operating Activities
16(b)
Cash at beginning of the financial year Cash at the end of the financial year
16(a)
The accompanying notes form part of these financial statements
5
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 1.
Summary of significant accounting policies
a)
Basis of preparation The Financial Report is a general purpose financial report that has been drawn up in accordance with Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Associations Incorporation Act (WA) 2015. The financial report covers The Western Australian Opera Company Incorporated as an individual entity. The Western Australian Opera Company Incorporated is an Association incorporated in Western Australia under the Associations Incorporation Act (WA) 2015. The Western Australian Opera Company Incorporated is a not-for-profit entity. The principal activity of the company in the course of the financial year was the presentation of opera. The financial report is presented in Australian dollars which is the company’s functional currency. The financial report is prepared on an accruals basis and is based on historical costs and does not take into account changing money values, or, except where stated, current valuations of non-current assets. Cost is based on the fair values of consideration given in exchange for assets. The accounting policies have been consistently applied, unless otherwise stated.
b)
New accounting standards and interpretations In the current year the Association has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for reporting periods beginning 1 January 2019. The adoption of these new and revised Standards and Interpretations did not have any effect on the financial position of the Association. The Association has adopted the following new standards and amendments to standards which are effective for annual reporting periods beginning after 1 January 2019: • AASB 15 Revenue from Contracts with Customers • AASB 16 Leases • AASB 1058 Income of Not for Profit Entities The following is a summary of the material accounting policies adopted by the Association in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
6
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 c)
Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation. The carrying amount of plant and equipment is reviewed annually by the Association to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets’ employment and subsequent disposal. Depreciation The depreciable amounts of all property, plant and equipment are depreciated on a straight-line basis over the useful lives of the assets to the Association, commencing from the time the assets are held ready for use. The depreciation rates used for each class of depreciable assets are: Class of property, plant and equipment Office Equipment, Furniture & Fittings Pianos Music library Sound Shell Production Equipment Right-of-Use Asset
Depreciation Rate 10 - 50% 10% 10% 10% 10% 28.5%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. d)
Employee Benefits (i)Wages, salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to settle within 12 months of the reporting date are recognised in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.
7
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 d)
Employee Benefits cont. (ii)Long service leave The liability for long service leave is recognised and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employees, departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
e)
Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short term highly liquid investments with maturities of three months or less.
f)
Revenue The Association generates revenue primarily from performance income. Other sources of revenue include sponsorships, donations, government grants and investment income. The company recognises revenue when it transfers control over a good or a service to a customer in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. Government grants are initially recognised in the balance sheet as a liability when the grant is received. When the grant relates to an expense item it is recognised as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Revenue from donations is recognised on receipt. All revenue is stated net of the amount of goods and services tax (GST).
8
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 g)
Goods & Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST) except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from or payable to, the ATO is included as a current asset or liability in the Balance Sheet. Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to the ATO are classified as operating cash flows in the statement.
h)
Income tax The Association is deemed a non-profit organisation for income tax purposes and has tax exempt status under Section 50-45 9.2 of the Income Tax Assessment Act 1997.
i)
Financial Instruments AASB 9 sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. The Association applied AASB 9 from 1 January 2018. Recognition and initial measurement Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the association becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value, plus for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price. Classification and subsequent measurement Financial assets – classification policy applicable from 1 January 2018: On initial recognition, a financial asset is classified as measured at amortised cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL).
Notes to the financial statements for the year ended 9
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
31 December 2019 i)
Financial Instruments (cont) Financial assets are not reclassified from their initial recognition unless the association changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. On initial recognition of an equity investment that is not held for trading, the association may irrevocably elect to present subsequent changes in the investment’s fair value through other comprehensive income (FVOCI). This election is made on an investment by investment basis. All assets not classified as measured at amortised cost or FVOCI, are measured at FVTPL. Financial assets – subsequent measurement policy from 1 January 2018: Financial assets at amortised cost are measured using the effective interest method. The amortised cost is reduced by impairment losses. Interest income and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. Financial assets at FVTPL are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. Financial assets at FVOCI are measured at fair value with gains and losses being recognised in other comprehensive income. Financial liabilities: Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Interest expense and any gain or loss on derecognition is also recognised in profit or loss. Derecognition Financial assets: The association derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the association neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
10
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 Financial Instruments (cont) The association enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised. Financial liabilities: The association derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The association also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss. j)
Leases The company has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated. Operating leases – policy after 1 January 2019: The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to restore the underlying asset or the site on which it is located less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease. The company presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equipment’.
11
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 j)
Leases (cont) The company has elected not to recognise right-of-use assets and lease liabilities for leases of low value assets and short term leases. The company recognises the lease payments associated with these leases as an expense over the lease term. On 1 January 2019, the following impact was recorded for recognition of a right-ofuse asset and its corresponding lease liability (note 13): Right-of-use asset for lease of office
$117,912
Lease liability
$121,131
Operating leases – policy before 1 January 2019: Lease payments for operating leases, where substantially all risks and benefits remain with the lessor, were charged as expenses in the periods in which they were incurred. k)
Economic Dependency The Western Australian Opera Company is economically dependent on government funding and corporate sponsorship for the majority of its revenue. At the date of this report the Board of Directors have no reason to believe these parties will not continue to support the company.
12
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019
2
REVENUE, OTHER INCOME AND EXPENSES
(a) Revenue Performance income Interest received Members subscriptions Total Revenue
2019 $
2018 $
1,078,862 84,619 1,174 1,164,655
1,256,849 87,769 1,458 1,346,076
(b) Other Income Operating grants - Department of Local Government, Sport & Cultural Industries – Base grant - Department of Local Government, Sport & Cultural Industries – Regional Touring grant - Australia Council – Base grant Sponsorship – Healthway Private and corporate support Co-production income Dividends Received Sundry income Total Other Income
1,934,137
1,934,136
80,000 491,852 200,000 1,607,576 99,895 262,597 37,749 4,713,806
484,106 200,000 1,619,788 60,067 13,014 4,311,111
Total Revenue and other income
5,878,461
5,657,187
70,157 40,000 -
16,568 40,000 53,700
(c) Expenses Depreciation of property, plant and equipment Audit fees Operating lease rental payments
13
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019
3
Effective interest rate
3,294,058
587,848
3,294,058
587,848
1.94%
0.85%
-
1,875,000
-
1,875,000
-
2.57%
650,000
950,000
650,000
950,000
2.20%
2.54%
20,000 106,936
2,283 20,000 77,377
126,936
99,660
139,058
122,282
DEPOSITS Deposits with maturity of more than 3 months
Effective interest rate 5
2018 $
CASH AND CASH EQUIVALENTS Cash at bank and on hand
4
2019 $
RESTRICTED CASH DEPOSIT Restricted cash deposit
Access to cash restricted under terms of the Bendat Family Foundation Deed of Gift and Bel Canto Fund. Refer Note 12 for more details. Effective interest rate 6
TRADE AND OTHER RECEIVABLES Trade Debtors Income receivable from Healthway Other receivables
These amounts are non-interest bearing receivables which relate to sundry debtors and accrued interest. 7
OTHER CURRENT ASSETS Prepayments
14
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019
8
2019 $
2018 $
Office furniture and equipment – at cost Less accumulated depreciation
119,586 (71,023) 48,563
103,077 (62,124) 40,953
Pianos – at cost Less accumulated depreciation
164,511 (89,186) 75,325
161,449 (83,098) 78,351
Music Library – at cost Less accumulated depreciation
1,257 (1,257) -
1,257 (1,257) -
Sound Shell – at cost Less accumulated depreciation
-
13,505 (13,505) -
Production equipment – at cost Less accumulated depreciation
72,475 (50,302) 22,173
46,606 (44,501) 2,105
Right-of-Use Asset – at cost Less accumulated depreciation
117,912 (47,165) 70,747
-
216,808
121,409
PROPERTY, PLANT AND EQUIPMENT
15
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 8
PROPERTY, PLANT AND EQUIPMENT (cont)
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year 2019
Right-ofuse Asset 117,912 (47,165)
Office Furniture & Equipment $ 40,953 18,712 (11,102)
70,747
48,563
$ Balance at 1 January 2019 Additions Depreciation Carrying amount at 31 December 2019 2018
Balance at 1 January 2018 Additions Disposals Depreciation Carrying amount at 31 December 2018
Right-ofuse Asset $
-
Office Furniture & Equipment $ 45,247 6,644 (1,201) (9,737)
-
40,953
Pianos
Production Equipment
$ 78,351 3,063 (6,089)
2,105 25,869 (5,801)
$ 121,409 165,556 (70,157)
75,325
22,173
216,808
Pianos $ 85,087 -
$
Total
Production Equipment $
Total
(6,736)
(95)
$ 130,334 8,844 (1,201) (16,568)
78,351
2,105
121,409
2,200
9 FINANCIAL ASSET AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 2019 $
2018 $
654,931 1,016,002 1,670,933
762,783 (107,852) 654,931
Movement in financial asset at fair value through other comprehensive income Value as at 1 January Revaluation/(Devaluation) increment Value as at 31 December
During the 2011 financial year the Association acquired an investment in listed shares of Fortescue Metals Group (FMG) by donation. The fair value of the shares is determined by reference to published price quotations on the ASX.
16
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 2019 $
2018 $
189,313 48,873 29,614 20,000 394,139 681,939
143,161 23,551 6,056 20,000 143,000 335,768
10 TRADE AND OTHER PAYABLES Trade Creditors Other Payables Accruals Loan from UWA Income received in advance
The amount of the Loan from UWA is based on an agreed value of a piano on loan to the Association from the University of Western Australia. 11 PROVISIONS Annual Leave $
Long Service Leave $
Opening balance at 1 January 2019 Additional provisions raised during the year Amounts used Balance at 31 December 2019
48,362 67,892 (56,550) 59,704
65,112 17,430 82,542
113,474 85,322 (56,550) 142,246
Opening balance at 1 January 2018 Additional provisions raised during the year Amounts used Balance at 31 December 2018
44,543 50,974 (47,155) 48,362
59,361 8,074 (2,323) 65,112
103,904 59,048 (49,478) 113,474
Annual Leave Current Long Service Leave Total Current Provisions
2019 $ 59,704 40,231 99,935
2018 $ 48,362 35,887 84,249
Non-Current Long Service Leave Total Non-Current Provisions
42,311 42,311
29,225 29,225
142,246
113,474
Total Provisions
TOTAL $
A provision has been recognised for employee entitlements relating to annual and long service leave for employees. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been included in Note 1. The current provision for long service leave represents the value of employee entitlements expected to be paid within the next year.
17
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 12 RESERVES Restricted Funds Reserves are comprised of: (1) Bendat Family Foundation Deed of Gift – This $500,000 (2018: $500,000) reserve has been established for the purpose of establishing the Bendat Scholarship Fund and the Bendat Scholarship Fund no. 2 to assist the Western Australian Opera Company to fund scholarships awarded to talented young artists. These funds are to be held in escrow, with interest earned on the funds to be used to fund scholarships. (2) Bel Canto Fund Reserve – This $150,000 (2018: $150,000) reserve has been established for the purpose of providing interest earnings to assist the Western Australian Opera Company to develop and nurture talented local artists. These funds are to be held in escrow, with interest earned on the funds to be used to assist local artists. Unrestricted Funds Reserves are comprised of: (3) Reserve Incentive Scheme Agreement – This $300,000 (2018: $300,000 restricted) reserve has been established with contributions received from the Australia Council through the Major Performing Arts Board ($100,000), Department of Local Government, Sport & Cultural Industries ($100,000) and the transfer from the Association’s retained profits ($100,000). Prior to 2019 these funds were held in escrow subject to the terms and conditions of the Reserve Incentive Scheme and were not used to secure any liabilities of the Association. The period of escrow ended in April 2019. (4) Production Loss Reserve – This $500,000 (2018: $500,000) reserve has been established to provide against costs incurred should a production or a number of performances of a production be cancelled due to the unavoidable unavailability of artists or other essential personnel. (5) Capacity Building Reserve – This $675,000 (2018: $675,000) reserve has been established to provide against additional development costs incurred in the presentation of additional production seasons in future years. Other Reserves are comprised of: (6) Investment Revaluation Reserve – This $1,378,637 reserve (2018: $362,635) is used to record increases and decreases in the fair value of financial assets through other comprehensive income.
18
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 13 LEASE LIABILITY Future minimum lease payment 2019 $ Less than 12 months Between 12 months and five years
52,865 26,432
Interest 2019 $
Present Value of minimum lease payments 2019 $
3,716 1,259
49,149 25,173
The property lease is a non-cancellable lease with a remaining term of 1 year and 6 months, with rent payable quarterly in advance. 14 FORWARD PLANNING COMMITMENTS At 31 December 2019 the Association had committed to financial commitments totalling $697,665 (2018: $666,835) for principal artists, creative team and production team for Opera in the Park in February 2020, Star Navigator in March 2020, Elijah in May 2020, Cav & Pag in July 2020, The Nightingale in October 2020 and Cosi fan Tutte in October 2020. The majority of these planned expenditures are dependent on the productions taking place. 15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Association’s principal instruments are cash, short term deposits from grants and donations received, accounts receivable and accounts payable. Risk Exposures and Responses: (a) Interest rate risk The Association’s exposure to interest rate risk arises from assets and liabilities bearing variable interest rates. At balance date, the Association had the following financial assets and liabilities exposed to variable interest rate risk:
Financial Assets Cash and cash equivalents Total
2019 $
2018 $
135,186 135,186
489,936 489,936
The Association does not enter into any form of hedging instruments to mitigate this risk.
19
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont) At 31 December 2019, if there was a movement in interest rates and all other variables were held constant, there would have been negligible impact on profit and equity (2018: negligible impact on profit and equity). (b) Credit risk The Association’s maximum exposures to credit risk in relation to each class of recognised financial asset is the carrying amount of those assets as indicated in the Balance Sheet. There are no long outstanding trade receivables. (c) Foreign exchange risk The Association is not exposed to fluctuations in foreign currencies. (d) Liquidity Risk The Association manages liquidity risk by monitoring forecast cash flows. (e) Price risk The Association is not exposed to any material price risk. (f) Fair Values The carrying amount of the Association’s financial assets and financial liabilities approximate their fair value. Therefore fair values are as follows:
Financial Assets Cash and cash equivalents Deposits with maturity of more than 3 months Restricted cash deposits Trade and other receivables Financial assets at fair value through other comprehensive income Financial liabilities Trade and other payables
20
2019 $
2018 $
3,294,058 650,000 126,936
587,848 1,875,000 950,000 99,660
1,670,933
654,931
681,939
315,768
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 16 CASH FLOW INFORMATION a) Reconciliation of Cash For the purposes of the Cash Flow Statement, cash includes cash at bank and short term deposits at call. Cash as at the end of the financial year is as follows for the purposes of the Statement of Cash Flows: NOTE Cash on hand and at bank Deposits with maturity of more than 3 months Restricted funds
b) Reconciliation of Cash Flows from Operations with Profit from Ordinary Activities Profit/(loss) from Ordinary Activities Add/(less) non-cash income and expense items: Non-cash loss on sale of fixed asset Depreciation Net cash provided/(used) by Operating Activities before change in assets and liabilities Change in assets and liabilities during the financial year: Decrease/(Increase) in debtors Decrease/(Increase) in other assets Increase/(Decrease) in trade creditors, accruals, grants in advance and other current liabilities Movement in employee benefits provisions Net cash provided/(used) by Operating Activities
3 4 5
2019 $
2018 $
3,294,058 650,000
587,848 1,875,000 950,000
3,944,058
3,412,848
2019 $
2018 $
221,396
(167,084)
70,157
1,201 16,568
291,553
(149,315)
(27,276) (134,688)
12,665 12,712
420,493 28,772
101,897 9,570
578,854
(12,471)
c) The Association has no credit stand-by or financing facilities in place.
21
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Notes to the financial statements for the year ended 31 December 2019 17 SEGMENT REPORTING For management purposes, the Association is organised into one main operating segment, which involves productions. All of the Association’s activities are interrelated, and discrete financial information is reported to the Board (Chief Operating Decision Makers) as a single segment. Accordingly, all significant operating decisions are based upon analysis of the Association as one segment. The financial results from this segment are equivalent to the financial statements of the Association as a whole. 18 EVENTS SUBSEQUENT TO BALANCE DATE Subsequent to the reporting date a significant event occurred which had a financial impact on the Association. The emergence of the Coronavirus disease (COVID-19) during the first months of 2020 has had a significant impact on financial markets, with broader economic and social disruption now evident and anticipated to continue in the nearterm. Following government directives issued in March 2020, the Western Australian Opera Company cancelled all scheduled events for the period to the end of July 2020. Management expects the impact of the decline in performance and other revenue subsequent to year end to have a significant impact on the entity in future periods. The impact of this has not been quantified in the financial statements for the year ended 31 December 2019. The directors are satisfied that the Association will continue operating as a going concern. 19 RELATED PARTY TRANSACTIONS Directors perform their duties on an honorary basis. No related party transactions occurred during the financial year. 20 AUDITORS’ REMUNERATION The auditor of The Western Australian Opera Company is KPMG. The audit by KPMG is a donation in-kind.
Value of donation in-kind 21 ASSOCIATION DETAILS The principal place of business of the Association is: The Western Australian Opera Company Incorporated Level 3, His Majesty’s Theatre 825 Hay Street PERTH WA 6000 22
2019 $
2018 $
40,000
40,000
The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2019
Statement by Directors In the opinion of the Board the accompanying accounts as set out on pages 2 to 22: (a)
Represent a true and fair view of the financial position of The Western Australian Opera Company Incorporated as at 31 December 2019 and its performance for the year ended on that date in accordance with the Associations Incorporation Act (WA) 2015 and Australian Accounting Standards (including the Australian Accounting Interpretations) and the Australian Charities and Not For Profit Commission Act 2012.
(b)
At the date of this statement, there are reasonable grounds to believe that The Western Australian Opera Company Incorporated will be able to pay its debts as and when they fall due.
This statement is made in accordance with a resolution of the Board and is signed for and on behalf of the Board by:
........................................................................ Andrew Pascoe (Chairman)
Dated this 8th day of April 2020.
23
........................................................................ Catherine Ferrari (Deputy Chair)
Independent Auditor’s Report To the members of The Western Australian Opera Company Incorporated Opinion We have audited the Financial Report, of the Western Australian Opera Company Incorporated (the Association). In our opinion, the accompanying Financial Report of the Association is in accordance with Division 60 of the Australian Charities and Notfor-profits Commission (ACNC) Act 2012, and the Associations Incorporations Act 2015 including:
•
•
Giving a true and fair view of the Association’s financial position as at 31 December 2019, and of its financial performance and its cash flows for the year ended on that date; and
The Financial Report comprises:
•
Statement of financial position as at 31 December 2019.
•
Statement of profit or loss and other comprehensive income, Statement of changes in equity, and Statement of cash flows for the year then ended.
•
Notes including a summary of significant accounting policies.
•
Directors’ declaration.
Complying with Australian Accounting Standards and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.
Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 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 Association in accordance with the Corporations Act 2001 and 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 fulfilled our other ethical responsibilities in accordance with the Code.
Other information Other Information is financial and non-financial information in The Western Australian Opera Company Incorporated’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. 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. In doing so, we 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. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.
KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under Professional Standards Legislation.
Responsibilities of the Directors for the Financial Report The Directors are responsible for:
•
Preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the ACNC.
•
Preparing the Financial Report in accordance with the Associations Incorporations Act 2015.
•
Implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
•
Assessing the Association’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Association or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report Our objective is:
•
To obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and
•
To issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They 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 Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: i. 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. ii. 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 registered Association’s internal control. iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors. iv. 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 registered Association’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 registered Association to cease to continue as a going concern. v. 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 of the registered Association 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. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our Auditor’s Report.
KPMG
Graham Hogg Partner Perth 8 April 2020
Lead Auditor’s Independence Declaration under subdivision 60-C section 60-40 of Australian Charities and Not-forprofits Commission Act 2012 To the directors of The Western Australian Opera Company Incorporated I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 31 December 2019 there have been: i.
no contraventions of the auditor independence requirements as set out in the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and
ii.
no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Graham Hogg Partner Perth 8 April 2020
KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under Professional Standards Legislation.