annual report - Australia Council [PDF]

A N N UA L R E P O RT 20 1 5 -16

Letter of transmittal

Minister for the Arts Parliament House Canberra ACT 2600

2 September 2016 Dear Minister, On behalf of the Board of the Australia Council, I am pleased to submit the Australia Council Annual Report for 2015–16. The Board is responsible for the preparation and content of the annual report pursuant to section 46 of the Public Governance Performance and Accountability Act 2013, the Public Governance Performance and Accountability Rule 2014 and the Australia Council Act 2013. The following report of operations and financial statements were adopted by resolutions of the Board on the 29 August 2016. Yours faithfully,

Rupert Myer AO Chair, Australia Council

CONTENTS INTRODUCTION

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Report from the Chair

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Report from the CEO

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SECTION 1: AGENCY OVERVIEW

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About the Australia Council

13

Funding Overview

17

Australia Council Support for the Arts

26

Arts Organisations

29

Key Organisations

30

Major Performing Arts Companies

32

Government Initiatives

35

Research and Evaluation

37

Corporate Plan Achievements

38

SECTION 2: REPORT ON PERFORMANCE OUTCOMES

66

SECTION 3: MANAGEMENT AND ACCOUNTABILITY

72

The Australia Council Board

74

Committees

80

Management of Human Resources

89

Ecologically Sustainable Development

92

Organisational structure

93

Executive Team as at 30 June 2016

94

FINANCIAL STATEMENTS

96

Compliance Index

144

The Council respects Indigenous communities and cultures. Readers should be aware that this report may contain images or references to members of the Indigenous community who have passed away. Cover Image: “FLOW” Designed by Kathryn Sproul & Christopher Bartlett, Concept by Olivia Allen, Created by the Riverland Community. Produced by Country Arts SA as part of “This is a River” program, supported through the Creative Communities Partnership Key Producer Program. Image credit: Robert Hogarth A N N UA L R E P O RT 2 01 5 – 1 6

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INTRODUCTION

Gurdanji dancers performing, Artback NT DanceSite Borroloola 2015 Image credit: Benjamin Bayliss © Artback NT

A N N UA L R E P O RT 2 01 5 – 1 6 A N N UA L R E P O RT 2 01 5 – 1 6 INTRODUCTION

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REPORT FROM THE CHAIR

Rupert Myer AO, National Indigenous Arts Awards 2016. Sydney Opera House.

This Annual Report gives details of a significant and challenging year for the Australia Council for the Arts, as well as a powerful vision for the future. At the heart of the period under review is the ongoing implementation of the Council’s Strategic Plan, A Culturally Ambitious Nation and the release of a new corporate plan. The delivery of the best possible outcomes for the whole arts sector and for Australian audiences has been the Council’s priority within the new arts funding framework announced during the previous year and further adapted in December 2015. In this environment it was even more important that the Council focus on maximising all available resources ‘ for the arts’. In 2015-16 the Council invested nearly 90% of our budget directly into the arts sector and the remaining funds supported the sector through strategic advice, specialist knowledge and high quality program delivery.

Over the past three years, we have transformed our grants model, our structure, and our peer assessment processes to be more flexible and responsive to the needs of the sector. Changing budgetary circumstances required refinements to the plan, including announcements during the year of two project grant rounds and Four Year Funding for Organisations. Given the rapid and simultaneous strategic, structural and budgetary changes necessary over the past year and the impact on many in the sector, I wish to acknowledge the continued breadth and depth of support expressed by the arts sector for the work of the Council. The reforms of the past three years, which were driven by sustained sector feedback and consultation, are also directly responsive to a near 50-year history of strong sector support for the Council. I would like to acknowledge the leadership and inexhaustible demonstration of care, thoughtfulness and resilience shown by my colleagues on the Board, the senior executive team and the staff across the whole organisation, as well as the peers and all those who have been engaged with Council activity. In particular, I would like to thank the Chief Executive Officer, Tony Grybowksi, and Deputy Chair and Chair of the Nominations Committee, Robyn Archer AO for their support, insights, energy and wisdom during a period of rapid changes. Additionally, I would like to thank Sophie Mitchell, Chair of the Audit and Finance Committee, Tim Orton, Chair of the Strategy Committee, Professor John Daley, Chair of the Research Strategy Panel, and Wesley Enoch, Chair of the Aboriginal and Torres Strait Islander Arts Strategy Panel. Each has performed a critical

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role within the organisation, working alongside their Committee or Panel colleagues and our talented staff members. Julian Knights’ term as Chair of the Major Performing Arts Panel concluded during the year. I would like to record the Board’s deep appreciation for Julian’s important contribution to the Council as a past board member and for his dedication to the MPA sector. I am delighted that current Council Board Member, Adrian Collette AM, has agreed to be Julian’s successor. During the year, we welcomed two new Board Members, Rebecca Weisser and Christine Simpson Stokes, both of whom are already bringing considered perspectives to the Board. In reflecting upon the Board and on the manner in which it serves the organisation, the government, the diverse arts sector, and gives direction to the Council’s work, it is significant that the Board encapsulates the Australia of now. We comprise a multifarious membership, born here and overseas, of diverse faiths, ages and cultural backgrounds, and with an equal representation of men and women. Board members collectively and directly practice in or support, the full gamut of arts disciplines across community, national and international organisations and have lived and/or worked in all states and territories, in capital cities as well as in regional centres and communities. I believe that this diversity is significant as we undertake our work. Australia’s strength is its diversity. We are home to the most enduring art and culture makers on earth. A key pillar of the Council’s work is to support the cultural expressions of our First Nations people and promote them as a source of pride for all Australians. Our unique collective identity and vibrant national culture are deep-rooted in the world’s oldest living continuous cultures, as well as being born of successive waves of immigration from all regions of the world. As a result, we are a people increasingly open to new cultural practices and new art forms. Our artist-centric grants model is more responsive to changing practice and provides greater accessibility for an even more diverse range of artists to apply for support for a wide ambit of arts activity. Distributing Commonwealth funding to the arts, whilst central to what we do, is by no means the only thing we do. We approach our role more broadly: as a key advocate for, and investor in, our country’s artistic and cultural future. Our agenda includes supporting arts organisations to respond in a very challenging economic and social environment by generating pathways to new capabilities and new business models. Importantly our diversity informs our perspectives, our priorities and points of emphasis, ensuring that we serve all of the arts for all of the country. The Australian Government’s Innovation Agenda aims to “drive smart ideas to create business growth, local jobs and global success.” The drivers are identified as: capital and culture; backing our entrepreneurs; collaboration; and developing talent. Yet a significant challenge remains to better articulate our capacity for innovation through the arts as leaders and in collaboration with other industry sectors, so as to forge a place of greater priority in the vision for innovation. The Innovation Agenda aligns beautifully with that which is central to the arts; innovation, creativity, risk taking, experimentation, iterative learning and discovery. Yet the full interdisciplinary potential of the arts in collaboration

A N N UA L R E P O RT 2 01 5 – 1 6 INTRODUCTION

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with science, IT and other industries which are traditionally aligned with innovation, is yet to be fully realised. For nearly 50 years the Council has supported innovation and innovative projects. This has contributed to Australian experimental arts practice building an international reputation for excellence, and a vital resource for Australia’s innovation system. Yet in both local and global terms we have so much more to offer.

A U S T R A L I A’ S STRENGTH IS ITS D I V E R S I T Y. W E AR E H O M E TO TH E MOST ENDURING A R T A N D C U LT U R E MAKERS ON EARTH

It was with great pleasure that during the year we announced the appointment of Naomi Milgrom AO as Commissioner, Tracey Moffatt AO as artist, and Natalie King as Curator, for the Australian representation at the 57th International Art Exhibition, Venice Biennale 2017. It was especially pleasing, too, that the National Gallery of Australia presented the entire installation by Fiona Hall AO, Australia’s Venice Biennale artist in 2015.

On behalf of the Council, I thank the officers of the Department of Communications and the Arts for their continuing support during the year. I wish to acknowledge Senator the Hon George Brandis QC who served as Minister for the Arts until September 2015 and Senator the Hon Mitch Fifield who has served in the period since. On 1st November 1967, Prime Minister Harold Holt announced the decision of his Government to establish an ‘Australian Council for the Arts.’ Mr Holt noted, "for some years now Government encouragement for the arts in general has been increasing…on the best advice [this] is one significant area where the Commonwealth Government can provide material assistance." As the Council approaches the fiftieth anniversary of that announcement, it is appropriate to reflect upon and consider carefully the very great opportunities that have been created for our nation by that assistance. That far-sighted decision has had profound consequences for our artists and arts organisations, and for our entire population. The cultural progress that has been achieved has been of inestimable benefit to so many. All of us at the Council are privileged to contribute to and continue that work.

Rupert Myer AO Chair Australia Council for the Arts

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REPORT FROM THE CEO The 2015–16 year has seen the Australia Council deliver the first full year of activity under its Strategic Plan, A Culturally Ambitious Nation. The strategy set out some bold aspirations and was supported by major reform, including an integrated new model for supporting Australian arts. Following the budget changes announced in May 2015, the Council revised the newly launched reforms to maximise the resources available. This document reports against those goals for 2015-16. We have highlighted the ways in which the Council supported the creation and presentation of Australian stories which transcend borders and areas of practice, and how we have invested in a sector which is so central to the social, cultural and economic life of the country.

Tony Grybowski

During 2015-16 we invested over $50 million in individual artists and small to medium organisations through the Australia Council grants program and strategic development activity. Over $100 million was invested through the Major Performing Arts framework, as well as an additional $15 million in support across the sector through government initiatives such as the Visual Arts and Craft Strategy and National Regional programs. The impact of this collective investment is extraordinary. Last year 716 individual artists and 650 organisations were supported and 7,234 new art works created. This funding enhances Australia’s profile and develops our global markets, with over 400 projects supporting artists and organisations to work in 59 countries. The work of individual Australian artists and organisations supported by the Australia Council has reached national audiences totalling 12.8 million and 2.9 million internationally, and many projects will continue to find new markets and audiences into the future. The reformed grants model has now been fully implemented and we are seeing evidence that it is delivering on our intent. With a simpler and more accessible structure approximately 20% of the successful grants went to first time applicants. Regional Australia continues to be strongly supported with 21% of the funding going to artists and organisations based in regional and remote Australia, and additional opportunities for regional audiences through regional touring by metro based companies. Our support for excellent work that reflects the diversity of the nation is demonstrated by the $14.1 million awarded to artists and organisations who identify as belonging to culturally and linguistically diverse groups, including a total of $9.9 million awarded to arts and


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cultural activities with a primarily First Nations focus. The grants program is supported by a robust peer assessment process which draws on the knowledge of a large and diverse group of over 670 experts from across the country. These peers reflect the diversity of the art being made. They are one of our many connections to the sector and an important source of information about evolving practice. The Council takes a holistic, evidence-based and long term approach to investing in and championing the national arts sector. Our grants program is designed to complement targeted suites of strategic activity which include our international arts strategy, national sector development, and First Nations arts development. While this work has been revised over 2015-16 to reflect the changes in the Commonwealth arts funding framework, it has delivered some truly exciting results. I am particularly proud of the work we have undertaken with First Nations artists. Australia is home to the world’s oldest continuous living culture, and while our research shows that Australians have a growing interest in First Nations arts and culture, the access to this work is not meeting the demand. During 2015–16, we supported 163 projects delivered by First Nations people and organisations, with more than three quarters involving the creation of new work. Our strategic activity included the new Chosen and Signature Works programs which support the intergenerational transfer of artistic and cultural knowledge, and fostering the creative ambition of artists. We also supported mentoring and leadership programs for First Nations artists, and developed a new Tri-Nations Exchange program which brought together First Nations artists and arts workers from New Zealand, Canada and Australia. Our new international arts strategy was implemented during 2015-16, underpinned by substantial research which was released via a summary report in August 2015. This strategy provides a clear focus for the work we do to support artists and arts organisations in taking up international opportunities. To establish an ongoing and active presence in key international markets, we have created a team of International Development Managers. These specialists advise, advocate and broker services for Australian artists regardless of whether they receive Council funding. In 2015-16 the Council invested in a wide range of international activity which is already realising strong outcomes for Australian arts. This included in and out bound market development programs, partnerships, exchanges, international residencies, capacity building and advocacy. The past year also saw a new research and evaluation team formed, centralising a number of functions across the Council. The Research and Knowledge Management Unit combines the systematic monitoring and evaluation of the Council’s programs and projects, with the creation of new knowledge about the role and impact of the arts. Developing this evidence base is critical to the shaping of our work, to informing policy and dialogue, and creating a valuable public resource. This year has seen an unprecedented level of change in the national arts landscape and I must acknowledge the incredible sector support for the role and work of the Australia Council. We remain committed to close engagement and sustained dialogue with the arts community, ensuring that we advocate on key issues and respond to the changing

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ways that art is made, presented and experienced. There will always be more excellent art and artists than we have the capacity to support through grants. However, there are many ways that the Council supports and champions Australian arts and I am pleased to highlight some of that work in this report. My sincere thanks to the Council’s Chair, Rupert Myer AO, and the Board for their unwavering commitment to the arts, and their thoughtful leadership over the past year. I also extend my gratitude to our panel members, peers and staff. These dedicated and passionate individuals ensure that we deliver on the goals of our strategy in support of the arts. Finally, I want to acknowledge the resilience of the arts sector and its extraordinary contribution to our communities.

Tony Grybowski Chief Executive Officer Australia Council for the Arts

T H E C O U N C I L TA K E S A HOLISTIC, EVIDENCE-BASED A N D LO N G TER M A P P R OAC H TO I NVE STI N G I N AN D C H A M P I O N I N G T H E N AT I O N A L ARTS S EC TO R


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Ball Park Music. Image credit: Dean Hanson of Ball Park Music Global Enterprise Pty Ltd

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AG E N C Y OV E R V I E W A N N UA L R E P O RT 2 01 5 – 1 6 A N N UA L ERNE C PO 6 AG Y ROTV2E0 R 1V5I –E1W

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Dancer Fiona Jopp from Sydney Dance Company Image credit: Peter Greig

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ABOUT THE AUST RA L I A CO U N C I L OUR PURPOSE The Australia Council (the Council) is the Australian Government’s arts funding and advisory body. The Council’s purpose is to champion and invest in Australian arts. We do this by supporting excellence across all art forms and leveraging our investment in the arts to support and build a vibrant arts ecology. The Council is a national advocate for the arts and works to increase national and international engagement. The Council’s purpose is reflected in its Corporate Plan and supported by the outcome statement outlined in the Portfolio Budget Statements 2015–16: supporting Australian artists and arts organisations to create and present excellent art that is accessed by audiences across Australia and abroad.

GUIDING PRINCIPLES The work of the Council is guided by two fundamental principles: 1. The ‘arm’s length principle’, embodied in section 12 of the Australia Council Act 2013 (the Act), which provides that the Minister must not give a direction in relation to the making of a decision by the Council, in a particular case, relating to the provision of support (including by the provision of financial assistance or a guarantee). 2. The ‘peer assessment principle’, whereby decisions on grants are made following assessment by artists, individuals closely associated with the arts, and community representatives who are peers of those being assessed. Grants are offered to artists and arts organisations whose proposals, in competition with those of other applicants, and within budgetary constraints, demonstrate the highest degree of artistic merit and innovation. Formed as an interim council in 1973, the Council was given statutory authority status by the Australia Council Act 1975. It replaced an earlier non-statutory body called the Australian Council for the Arts which had been established as a division of the Prime Minister’s Department in 1968. The Council’s original enabling legislation was replaced by the Australia Council Act 2013, which came into effect on 1 July 2013. The new legislation updated the Council’s functions, powers and governance structure, and enabled the appointment of a skills-based governing board. The Council is a corporate Commonwealth entity and its activities are subject to the Public Governance Performance and Accountability Act 2013. The Council is accountable to the Australian Parliament and to the Government through the Minister for the Arts.

A N N UA L R E P O RT 2 01 5 – 1 6 AG E N CY OV E RV I E W

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T H E AU ST R A L I A CO U N C I L ACT 2 01 3 Following an independent review of the operations of the Council in 2012, the Australia Council Act 2013 (the Act) commenced on 1 July 2013. Pursuant to the Act, the Council’s functions are to: support Australian arts practice that is recognised for excellence;

support and promote the development of markets and audiences for the arts;

foster excellence in Australian arts practice by supporting a diverse range of activities;

provide information and advice to the Commonwealth Government on matters connected with the arts or the performance of the Council’s functions;

support Aboriginal and Torres Strait Islander arts practice; support Australian arts practice that reflects the diversity of Australia; uphold and promote freedom of expression in the arts; promote community participation in the arts; recognise and reward significant contributions made by artists and other persons to the arts in Australia; promote the appreciation, knowledge and understanding of the arts;

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conduct and commission research into, and publish information about the arts; evaluate and publish information about the impact of the support the Council provides; undertake any other function conferred on it by the Act or any other law of the Commonwealth; do anything incidental or conducive to the performance of any of the above functions.

Psyche, Eden series, 2016. Pigment ink print. Image credit: Polixeni Papapetrou. Courtesy of Stills Gallery, Sydney


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2 0 1 5 – 1 6 AT A G L A N C E

$25.8 $173.8 MILLION

MILLION

to foster artistic vibrancy and access through arts investment in regional Australia

invested in grants and initiatives for artists and arts organisations

15.7

401

MILLION

audience attendances at activities supported by the Australia Council

650

arts organisations supported in total

artists and organisations supported to work internationally

716

individual artists recognised for excellence through Council funding

175

organisations were supported by multi-year funding through the Key Organisations program and the Major Performing Arts framework

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7,234

ambitious new artistic works created with Council support

F U N D I N G OV E R V I E W In 2015–16 the Council invested $173.8 million through grants and initiatives.

FIGURE 1

GRANT AND PROGRAM FU N D I N G OVERVI EW

MAJOR PERFORMING ARTS

COUNCIL GRANTS AND INITIATIVES

62.0%

16.1%

KEY ORGANISATIONS

GOVERNMENT INITIATIVES

13.0%

8.9%

$MILLIONS

2011-12

2012-13

2013-14

2014-15

2015-16

KEY ORGANISATIONS

21.4

21.1

22.8

23.1

22.6

MAJOR PERFORMING ARTS

97.3

100.6

103.1

106.0

107.8


16.1

20.7

28.0

28.6

15.4

29.7 164.5

32.4 174.8

45.3 199.2

33.8 191.5

28.0 173.8

COUNCIL GRANTS AND INITIATIVES TOTAL FUNDING


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Sirens Big Band rhythm section live Image credit: Rubaiyat Howlader

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FIGURE 2

FU N D I N G BY ART FO RM 2015 -16

The funding in this figure includes support for arts organisations through the Major Performing Arts framework, the Visual Arts and Craft Strategy, Government initiatives, and support for individuals, groups and organisations through the Australia Council grants program (Key Organisations and Project Funding) and strategic initiatives.

% O F

T O TA L F U N D I N G

SYMPHONY ORCHESTRAS

OPERA

13.7%

32.3%

OTHER MUSIC

MISCELLANEOUS

1.6%

7.0%

CROSSARTFORM

VISUAL ARTS (INCL CRAFT )

5.5%

LITERATURE

2.7%

9.7%

SYMPHONY ORCHESTRAS OPERA OTHER MUSIC VISUAL ARTS (INCL CRAFT)

DANCE LITERATURE CROSS-ARTFORM MISCELLANEOUS

TOTAL

16.1%

11.4%

$MILLIONS

THEATRE

THEATRE

DANCE

2011-12

2012-13

2013-14

2014-15

2015-16

51.2 21.6 12.8 15.7 23.4 16.8 5.9 13.1 4.0 164.5

52.3 23.0 13.3 17.5 27.0 18.8 7.1 13.6 2.2 174.8

53.7 23.5 16.6 21.7 32.0 21.2 9.0 18.4 3.1 199.2

55.5 23.5 15.1 21.0 30.0 21.1 6.3 16.7 2.3 191.5

56.1 23.7 12.2 16.8 28.0 19.8 4.6 9.7 2.9 173.8


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FIGURE 3

FU N D I N G BY L O C AT I O N O F A C T I V I T Y

This figure provides an overview of the distribution of funding by main location of activity. $MILLIONS

2011-12

2012-13

2013-14

2014-15

2015-16

NEW SOUTH WALES

58.2

58.6

71.2

66.0

65.6

VICTORIA

39.2

39.5

46.9

47.0

42.3

15.5 14.2 11.6 7.8 2.6 1.6 7.5 6.3 164.5

15.9 13.4 12.9 8.2 2.6 1.3 14.8 7.6 174.8

18.2 15.0 13.6 8.5 3.3 1.4 12.1 9.0 199.2

17.6 15.3 13.8 9.0 3.6 1.5 8.5 9.2 191.5

16.0 14.2 12.9 8.8 2.9 1.4 3.9 5.8 173.8

QUEENSLAND SOUTH AUSTRALIA WESTERN AUSTRALIA TASMANIA NORTHERN TERRITORY AUSTRALIAN CAPITAL TERRITORY NATIONAL OVERSEAS TOTAL

% O F

T O TA L F U N D I N G

QUEENSLAND

9.2%

NORTHERN TERRITORY

1.7%

NEW SOUTH WALES

37.8%

WESTERN AUSTRALIA

7.4%

SOUTH AUSTRALIA

8.2%

NATIONAL

2.3% 20

VICTORIA

24.3% OVERSEAS

3.3%

AUSTRALIAN CAPITAL TERRITORY

0.8%

TASMANIA

5.0%

FIGURE 4

FUNDING IN REG IO NAL AUSTR ALIA 2015 –16

In 2015–16 the Council invested $25.8 million in funding for the arts in regional Australia, to strengthen the mobility of diverse and excellent Australian work, foster the vitality of artists and arts organisations in regional and remote communities, and increase access for audiences. Creation, presentation and access to artistic work in regional Australia was achieved through the investment of: $6.5 million in the Major Performing Arts companies; $4.5 million in small to medium companies through Key Organisations; $8.6 million in Government initiatives such as Playing Australia, Contemporary Music Touring program, and the Visual Arts and Craft Strategy; and $6.2 million in Australia Council project grants to individual artists, arts organisations and communities in regional areas.

AUSTRALIA COUNCIL GRANTS

$6.2M


$8.6M

KEY ORGANISATIONS

$4.5M

MAJOR PERFORMING ARTS COMPANIES

$6.5M TOTAL

$25.8M

This investment enriched the lives of 1.9 million people in regional areas through attendance at a performance, exhibition, schools activity or workshop. The support Council provides to key regional organisations and strategic initiatives has a significant impact on artists and audiences in regional areas. The Council works in partnership with local government, for example, with the Cultural Development Network and the Australian Local Government Association to deliver the National Local Government Cultural Forum. The Council committed $450,000 for 2016–18 to extend the reach, quality, profile and understanding of local governments' contribution to Australia’s cultural life.


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FIGURE 5

N AT I O N A L A N D I N T E R N AT I O N A L A U D I E N C E S

The Council invests in national and international audience development through a range of programs including project grants, multi-year organisation funding*, Government initiatives, strategic projects and international development activity. This enables audiences across Australia to access excellent work and strengthens Australia’s international reputation for great art and artists. This figure provides attendance numbers at events supported by the Council including performances, workshops, seminars and exhibitions. The Key Organisations data includes performing arts, visual arts, literature and cross-artform activity. Major Performing Arts

Key Organisations

Projects: Individuals and Groups

Projects: Organisations

METROPOLITAN TOTAL

3,703,000

5,561,000

REGIONAL 10,965,000

1,876,000

780,000

316,000

410,000

921,000

80,000

1,070,000

INTERNATIONAL TOTAL

TOTAL

TOTAL (ALL AREAS) 2,866,000

15,707,000

1,242,000

809,000

7,356,000

4,110,000

91,000

724,000

2,573,000

1,668,000

*Multi-year organisation funding includes the 28 Major Performing Arts companies supported through the Government’s Major Performing Arts Framework and the 147 Key Organisations.

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FIGURE 6

I N T E R N AT I O N A L A U D I E N C E R E ACH BY CO NTI N ENT

This figure outlines the audience reach by continent of activities supported by the Council.

EUROPE NORTH AMERICA

14%

45% 1,289,000

ASIA

38% 1,092,000

404,000

OCEANIA SOUTH AMERICA

2%

52,000

AFRICA

< 1%

1%

26,000

3,000

TOTAL AUDIENCE AT TENDANCE


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FIGURE 7

AUSTRALIA COUNCIL GRANTS P R O G R A M A N D I N I T I AT I V E F U N D I N G BY AR E A O F PR ACTI CE

In 2015–16 the total funding for Council grants and initiatives was $28.0 million. This figure provides a breakdown by area of practice and includes multi-art form support through organisations, and market and audience development projects. MUSIC

VISUAL ARTS

13.8%

15.7%

LITERATURE

EXPERIMENTAL PRACTIC E

12.3%

3.9%

THEATRE

11.2%

MULTIARTFORM

4.8%

MARKET AND AUDIENCE DEVELOPMENT

DANCE

9.3%

5.9% ABORIGINAL AND TORRES STRAIT ISLANDER ARTS

8.8%

CAREER DEVELOPMENT AND OTHER

5.5%

$MILLIONS VISUAL ARTS MUSIC LITERATURE THEATRE MARKET AND AUDIENCE DEVELOPMENT COMMUNITY ARTS AND CULTURAL DEVELOPMENT CAREER DEVELOPMENT AND OTHER ABORIGINAL AND TORRES STRAIT ISLANDER ARTS DANCE MULTI-ARTFORM EXPERIMENTAL PRACTICE TOTAL

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COMMUNITY ARTS AND CULTURAL DEVELOPMENT

8.8% 2015-16 4.4 3.9 3.4 3.1 2.6 2.5 1.5 2.5 1.7 1.3 1.1 28.0

The 26-Storey Treehouse, James Lee (Edward Scooperhands) CDP Productions. Image credit: Sasha Bradbury


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AUST RA L I A CO U N C I L SUPPORT FOR THE ARTS The Australia Council invests and champions Australian arts through a diverse range of programs and strategies. These are designed to be interconnected and complementary, supporting artists throughout their careers, and building the capacity and artistic vibrancy of the national arts sector. Through grants and strategic activity the Council supports diverse and excellent art being made and experienced, as well as creating opportunities for artistic and cultural exchange. The Council delivers evidence-based strategic activity which develops new markets for Australian work and opportunities for innovative collaborations. Through an enhanced research and advocacy program the Council seeks to inform program and policy development, and create greater awareness and appreciation for the arts. The Council’s support for the arts is delivered through the following areas: Government Frameworks Major Performing Arts Framework Visual Arts and Craft Strategy National Regional Programs and Government initiatives Australia Council Grants Program Project and development grants for individuals and groups Fellowships for individuals Project grants for small to medium arts organisations Multi-year core program funding for small to medium arts organisations Strategic Development International Arts Development National Sector Development Residencies Program Capacity Building Program Research and Advocacy The Council supports individual artists and small, medium and large arts organisations as creators, presenters and producers of artistic work, and those engaged in the development of artists and audiences. The following provides an overview of Council support for each of those groups, before outlining some of the activity undertaken during 2015-16 to deliver on the goals of our Corporate Plan.

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I N D I V I D UA L A RT I STS G R A N T S A N D I N I T I AT I V E S : $ 1 4 . 6 M I L L I O N The Australia Council supported 716 individual artists and groups of artists through our grants program, strategic activity and Government initiatives in 2015-16. Opportunities for artists include: project and development grants; fellowships and residencies; international and market development support; and capacity building initiatives such as our leadership program. Leading artists are recognised annually through our prestigious national awards programs, the Australia Council Awards and the National Indigenous Arts Awards. 2 015 AU STR ALIA CO U N CI L FELLOWS H I PS Seven of Australia’s most accomplished artists received Australia Council Fellowships in December 2015. The fellowships, worth $80,000 over two years, are awarded to outstanding, established artists to undertake creative activity and professional development. This year’s recipients are Dave Brown (Theatre), Alison Croggon (Literature), Lucas Ihlein (Emerging and Experimental Arts), Debby Maziarz (Community Arts and Cultural Development), Kate Miller-Heidke (Music), Andrew Morrish (Dance), and Justene Williams (Visual Arts). AU D I EN CES

XXXXX, xxxxxxx. Image credit:

1.7 million people attended a performance, school activity or workshop presented by individual artists and groups. This includes performing arts audiences of over 460,000 and more than 1 million people who visited exhibitions by Australian artists. C R E AT I N G A N D PRESENTING WORK Individual artists and groups created 3,364 new Australian works last year. In addition there were 675 creative developments and a further 108 new productions, arrangements or remounts of existing Australian works. In total these artists presented 108 world premieres of non-Australian works. I N T E R N AT I O N A L E N G A G E M E N T

Cover illustration © 2015 Katie Harnett. Reproduced by permission of Walker Books Australia. All rights reserved.

The Australia Council invests in international development activity through a range of initiatives which respond to market opportunities. Individuals and groups funded by the Council raised the global profile of Australian arts by engaging audiences in 43 countries.


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Deborah Brown, Kinship – Bangarra Dance Theatre. Image credit: Greg Barrett

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A R T S O R G A N I S AT I O N S G R A N T S , I N I T I AT I V E S A N D G O V E R N M E N T F R A M E W O R K S : $ 1 5 9. 2 M I L L I O N Bringing a national perspective to the management of funding for arts organisations, the Australia Council supports a diverse range of organisations which create, produce, present and promote the arts across all areas of practice. The Council has a unique leadership role which includes direct and indirect engagement with every facet of the sector. Charged with the role of champion and investor, the Council promotes artistic vibrancy, innovation and sustainability. This is delivered through project and multi-year funding for organisations of all sizes, government initiatives, national and international strategic development, and capacity building programs. Overall, 650 organisations received funding last year through the Council, including 175 organisations supported with multi-year core program funding through the Major Performing Arts Framework and Key Organisations program. Investment in Australian arts organisations through the Council includes: $107.8 million

Major Performing Arts Framework

$37.6 million Australia Council grants program and strategic development activity to support small to medium organisations This includes $22.6 million for multi-year funding (Key Organisations Program) and $15.1 million in project grants and initiatives $13.8 million Support for small, medium and major organisations through government initiatives, including the Visual Arts and Craft Strategy and the National Regional Programs. S M A L L T O M E D I U M A R T S O R G A N I S AT I O N S The hundreds of organisations in the small to medium arts sector occupy the significant territory between individual arts practitioners operating independently and larger scale companies. This part of the sector can be viewed as a leading ‘public activator’ of Australia’s arts and cultural life. It embraces and engages local artists, and is collaborative and highly accessible to audiences nationally and internationally. The small to medium arts sector is responsive and exceptionally diverse, providing an environment for creative risk, innovation and experimentation, and a platform for new and emerging work. Small to medium sized companies are leading presenters of new Australian works. In 2015–16, small to medium companies supported through project grants presented more than 2,800 new Australian works, 497 creative developments and a further 379 new productions, arrangements or remounts of existing Australian works.


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K E Y O R G A N I S AT I O N S G R A N T A L L O C AT I O N : $ 2 2 . 6 M I L L I O N The Australia Council provides multi-year core program funding for small to medium arts organisations, including two Territory orchestras, through the Key Organisations program until the end of 2016. From January 2017 this is to be replaced by the new Four Year Funding program which sits within the new Australia Council grants model launched in early 2015. This funding recognises companies for their artistic excellence and leadership in the national arts landscape. Multi-year funding is designed to promote sustainability and greater capacity to program adventurous artistic work. AU D I EN CES 7.3 million people engaged with the work of a Key Organisation, including Territory Orchestras, last year. This includes performing arts audiences of 1.9 million people and approximately 5 million people who visited the more than 1,000 exhibitions presented across Australia. C R E AT I N G A N D P R E S E N T I N G W O R K The Council’s Key Organisations presented 919 new Australian works, 282 creative developments and a further 99 new productions, arrangements or remounts of existing Australian works. In total these organisations presented 86 world premieres and 30 Australian premieres of non-Australian works. I N T E R N AT I O N A L E N G A G E M E N T Key Organisations were very active internationally, engaging audiences in more than 40 countries across Europe, Asia, North America and the Pacific region. In 2015, 49 organisations gave over 1,300 performances, workshops and activities, reaching an international audience of 724,000. E M P LOY M E N T A N D T U R N OV E R Key Organisations employed over 15,700 people, including 8,600 artists, 1,400 creatives, 1,500 technicians and a further 4,000 people in education, marketing and arts administration. Combined turnover of Key Organisations in 2015 was $209 million, of which 50% was from government sources, including 17% from the Australia Council. Overall, these organisations leveraged approximately $1 of additional revenue for each $1 of government funding.

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CAN Static Crew project - Reynald McIntosh, Static Crew. Image credit: Christophe Canato A N N UA L R E P O RT 2 01 5 – 1 6 AG E N CY OV E RV I E W

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MAJOR PERFORMING A R T S C O M PA N I E S G R A N T A L L O C AT I O N : $ 1 0 7. 8 M I L L I O N Australia’s Major Performing Arts (MPA) sector comprises 28 companies in the fields of dance, theatre, circus, opera, and orchestral and chamber music. The National Framework for Governments’ Support of the Major Performing Arts Sector provides the mechanism to deliver government support in recognition of the leading role these organisations play in the Australian arts ecology. The Framework provides an element of financial security allowing companies to plan strategically. It also harmonises administrative and reporting processes across state and federal levels of government. During the year, the Council worked with the state governments and MPA companies to negotiate multipartite funding agreements for 2016–18. The Council’s MPA Panel met four times during 2015–16 to review MPA company performance, and to discuss broader portfolio trends, opportunities and issues.

Melbourne Symphony Orchestra, Hitchcock & Herrmann. Image credit: Daniel Aulsebrook.

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Out There - The Australian Ballet at Fairfield Primary School. Image credit: Kate Longley

AU D I EN CES 4.1 million people attended a performance, school activity or workshop across Australia presented by an MPA company in 2015. This includes a performance audience of 3.3 million people, 675,000 school children and teachers who attended performances and workshops in schools, as well as 88,000 people who visited the 17 exhibitions presented by an MPA company in Australia. C R E AT I N G A N D P R E S E N T I N G W O R K The MPA companies presented 146 new Australian works, 187 creative developments and a further 17 new productions, arrangements or remounts of existing Australian works. In total, the MPA companies presented 159 world premieres and 76 Australian premieres of non-Australian works. The companies remain committed to collaborations with small to medium companies and individual artists. I N T E R N AT I O N A L E N G A G E M E N T In 2015, the MPA sector continued to enhance the international profile of Australian art and artists. Nine organisations delivered 155 performances, workshops and activities, reaching a total audience of 91,000 in 11 countries across North America, the UK, Europe, the Middle East, and Asia. E M P LOY M E N T A N D T U R N OV E R MPA companies employed 11,000 people, including 6,000 artists, 890 creatives, 1,700 technicians and a further 2,300 people in education, marketing and arts administration. Combined turnover of MPA companies in 2015 was $503.7 million, of which 34% was from government sources, including 21% from the Australia Council. These organisations leveraged $1.98 for each $1 of government funding in 2015.


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Troy Honeysett - Australian Dance Theatre’s Be Your Self Image credit: Chris Herzfeld – Camilght Productions

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G OV E R N M E N T I N I T I AT I V E S T O TA L G R A N T A L L O C AT I O N : $ 1 5 . 4 M I L L I O N In May 2015 there were a number of changes in the Government Initiatives delivered by the Council. The Major Festivals Initiative, Visions of Australia and Festivals Australia were transferred by the Government to the Department of Communications and the Arts. The Council determined that the budget allocations for the Artists in Residence (Schools), Creative Communities Partnerships and ArtStart initiatives be repurposed to the Australia Council grants program to address the impact of the 2015-16 budget measures. The final instalments for existing activity under the Creative Communities Partnerships initiative were delivered during 2015-16. The Australian Fellowships, New Work and Presentation Initiative had been scheduled to conclude in 2015-16, and their final funding instalments were also repurposed to the Australia Council grants program. In 2015–16, the Council managed the following Australian Government initiatives: National Regional Programs Sounds Australia Visual Arts and Craft Strategy

1 . N AT I O N A L R E G I O N A L P R O G R A M S T O TA L G R A N T A L L O C AT I O N : $ 7. 4 M I L L I O N Through the National Regional Programs, the Council supports the development and presentation of performing arts and public exhibitions and arts events at festivals. These programs support and promote the work of artists and arts organisations as well as building audiences throughout Australia, particularly in regional and remote communities. The Council delivered three rounds of Regional Touring Programs in 2015–16.

P L AY I N G A U S T R A L I A G R A N T A L L O C AT I O N : $ 7. 0 M I L L I O N Playing Australia assists professionally produced performing arts productions to tour to regional and remote audiences. There were three Playing Australia rounds delivered in September 2015, December 2015 and February 2016. 58 applications were made to Playing Australia and 23 were successful.


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CO NTEM P O R A RY M U S I C TO U R I N G G R A N T A L L O C AT I O N : $ 0 . 4 M I L L I O N The Contemporary Music Touring Program (CMTP) assists emerging and established musicians to tour Australia’s regional and remote areas. Two CMTP rounds were delivered in September 2015 and February 2016. 58 applications were made to CMTP and 22 were successful.

2 . SO U N DS AU STR ALIA G R A N T A L L O C AT I O N : $ 0 . 6 M I L L I O N Sounds Australia is a music export market development program, initiated by the Council to help the Australian music industry access international business opportunities. It is delivered in partnership with copyright collecting society APRA AMCOS, which manage the project. Sounds Australia delivers a suite of targeted export activities such as showcases, networking events and industry meetings. The program also includes the National Live Music Office which works to increase opportunities for live music in Australia by identifying and advocating for better policy, regulation and strategy. Council has supported the initiative since 2008 and the Australian Government, through the Department of Communications and the Arts, committed $2.31 million for four years of support from 2013 to 2016. The current funding arrangements concluded this financial year. From 1 January 2017 it will be supported through Council’s Four Year Funding program.

3 .V I S U A L A R T S A N D C R A F T S T R AT E G Y G R A N T A L L O C AT I O N : $ 5 . 7 M I L L I O N The Visual Arts and Craft Strategy (VACS) is delivered jointly with all state and territory governments. VACS funding supports individual artists ($1.0 million), visual arts organisations ($4.1 million), arts events and artist run initiatives ($0.62 million). VACS continues to positively impact the ongoing sustainability of Australia’s contemporary visual arts sector by assisting organisations to leverage private sector funds. 2.98 million Australians attended an exhibition, workshop or school activity presented by a VACS supported organisation in 2015–16.

C O N T E M P O R A R Y T O U R I N G I N I T I AT I V E G R A N T A L L O C AT I O N : $ 0 . 6 M I L L I O N The Contemporary Touring Initiative (CTI) was delivered in May 2016, supporting the development and touring of nationally significant contemporary visual arts and craft exhibitions that reach and engage national audiences, and extend into regional communities. 7 applications were made to CTI and 4 were successful.

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RESEARCH A N D E VA L U AT I O N The Australia Council undertakes research on the arts in Australia under its legislative mandate. This includes conducting and commissioning research, as well as evaluating the impact of Council’s support. Our research, evaluation and data analysis functions are critical to building knowledge about the arts to inform decision making, strategic planning and policy development. In December 2015 a new research and evaluation unit was formed, centralising a number of functions across the Council. The Research and Knowledge Management Unit combines the research work of the Council with the systematic monitoring and evaluation of the Council’s programs and projects. During 2015–16 the Council released the following research projects: International Arts Activity – Australian Arts Sector was released in August 2015. This report provides an overview of Australian international arts activity and identifies high value international opportunities for Australian artists and arts organisations. The research involved an analysis of funding trends, interviews and focus groups with funding recipients, and a sector-wide survey Gosia Wlodarczak, Frost Drawing for the Moscow Manege(2013). Image credit: Longin Sarnecki to identify needs, challenges and future priorities. The research also informs the Council’s International Arts Strategy, guiding future investment in international arts projects and engagement. Building Audiences: Aboriginal and Torres Strait Islander Arts (released in August 2015), examines the barriers to and the strategies for increasing audiences in the Aboriginal and Torres Strait Islander arts sector. This research investigates the attitudes, beliefs and behaviours of current and potential audiences. Arts and cultural attendance and participation: local region rates was released in January 2016. The Australia Council commissioned the Australian Bureau of Statistics (ABS) to prepare its Cultural Attendance and Participation data to the sub-state geographic regions of Statistical Areas Level 4 (SA4), the smallest geographical areas for which the ABS arts and cultural data can be made available.


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C O R P O R AT E P L A N K E Y AC H I E V E M E N T S The Australia Council’s Strategic and Corporate Plans outlines the priority areas for the organisation over the next four years. These plans recognise the huge potential of Australia as a culturally ambitious nation, and the role of the Australia Council as a champion and investor in helping to realise that potential. The four strategic goals are underpinned by specific actions and initiatives to enable the Council to achieve its vision.

G OA L 1 : AU ST R A LIA N A RT S ARE WITHOUT BORDERS Art is a language which transcends borders, enabling artistic and cultural exploration, collaboration and exchange. The Australia Council provides a wide range of national and international support for artists and arts organisations to work across borders through our grant programs, strategic initiatives and through the Major Performing Arts Framework. In 2015–16, we supported more than 400 artists and organisations to work internationally and reached more than 50 countries. Nationally more than 100 projects we funded involved activity in more than one state or territory. On average each year, multi-year funded major and small to medium arts organisations stage more than 1,300 performances in regional Australia and reach more than 4 million people across the country. The companies also stage more than 900 international performances each year, helping to bring Australian work to global audiences. Our strategic initiatives support artists and arts organisations in taking up the creative, economic and cultural opportunities to work locally and nationally. To achieve this goal the Australia Council: enables artists to discover and develop across borders strengthens collaborations and partnerships nationally and internationally captivates global audiences with diverse Australian work grows the profile of Australian arts.

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Hugo Weaving and Richard Roxburgh in Sydney Theatre Company’s Waiting For Godot Image credit: Lisa Tomasetti ©


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K E Y AC TIV ITI E S A N D AC H I E V E M E N T S I N 2 01 5 –16 1 .1 E XP LO R ATI O N : ENAB LE ARTI ST S TO D I SCOVER AN D D E VELO P AC ROS S B O R D ER S International market delegations The Australia Council supports artists and organisations to participate in international arts platforms by leading a range of market delegations across emerging and established markets. Market delegations can fast-track growth in international profiles and capability by building networks and awareness, as well as increasing sales. In 2015–16 the Council led delegations to 10 international art fairs and markets in Europe, North America, North Asia and South Asia. 103 artists and arts workers were directly supported through travel grants, with a further 91 receiving on-the-ground support from Council staff. The Council also continued to test new markets for Australian art in Asia, leading a delegation of publishers to India and a delegation of curators and gallerists to Art Basel Hong Kong.

International Residencies Program International residencies enable artists across all art forms to articulate their practice within a global context and build knowledge, networks and partnerships to support future arts activity. In 2015–16, the Australia Council supported 37 artists in residencies in 11 cities across Europe, North America and North Asia. Our revised International Residencies Program aligns residencies more closely with the prioritised regions of Europe, North America, North Asia and South Asia, to provide stronger opportunities for artists. The current suite of residencies comprises 12 programs, including three new programs in North America. COIL Festival in New York In October 2015 the Council announced a new partnership with New York's Performance Space 122 to guarantee presentation of Australian work in its program, including at its highly regarded COIL Festival. Three Australian works featured at COIL in January 2016, as artists and programmers gathered from around the world. Fellowships for the International Society for the Performing Arts The Australia Council is supporting performing arts leaders to build their international networks. This fellowship provides an opportunity for mid-career leaders to engage with ideas and

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thinkers from the world’s foremost performing arts organisations. Completing their three year fellowships in 2016 were Charlie Cush, Theresa Famularo, Catherine Jones, Simeon Moran and Rachael Whitworth. A new cohort of five fellows will commence their three year fellowship in 2017. The benefits identified by participants include building new relationships, identifying benchmarks, enriching artistic work and increasing their personal and organisational profiles. Outcomes to date include a new commission, securing international representation, and several tours in negotiation.

1 . 2 R EC I P RO C IT Y: STR EN GTH EN CO LL AB O R ATI O N AN D PARTN ER S H I PS NATI O NALLY AN D I NTER NATI O NALLY Building networks for First Nations artists As part of Australian Performing Arts Market (APAM) this year the Council, along with Creative New Zealand and the Canada Council, supported participation by 33 First Nations artists, producers and presenters. This first-time program delivered market development skills and capacity building in the context of cultural protocols and Aboriginal and Torres Strait Islander arts production. The inaugural First Nations Curators’ Exchange brought together 13 curators from Australia, New Zealand and Canada during the 8th Asia Pacific Triennial of Contemporary Art (APT8) in Brisbane. The program focused on the exchange of practice and ideas between First Nations curators. The three-year partnership will see Creative New Zealand host the second stage in December 2016, and the Canada Council will host the third in 2017. ACCELERATE The Australia Council is a founding partner of the British Council's ACCELERATE program, which commenced in 2009. The aim of our continued support is to provide professional development for both the existing alumni and new Indigenous creative leaders. The Council invested $355,700 over three years from 2014-2016 to extend the program in three areas: An international leadership symposium led by ACCELERATE alumni that includes Indigenous arts leaders from other First Nations. Financial support for ACCELERATE alumni to continue artistic collaborations in the UK. Increased support for mentors to foster leadership for ACCELERATE participants. The Council's investment in ACCELERATE forms part of a broader Arts Leaders Program to build capacity amongst arts leaders from diverse backgrounds.


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Fiona Hall - All the King's Men 2014–15 Image courtesy the artist and Roslyn Oxley9 Gallery, Sydney. Image credit: Clayton Glen

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Singapore Dance Exchange In 2015-16 the Council commenced a partnership with the National Arts Council Singapore to enhance the capability of dance artists and arts organisations to collaborate, work inter-culturally and increase market development opportunities. In 2015 a Singaporean delegation attended Dance Massive and a reciprocal visit to Singapore occurred alongside the M1 Contact Contemporary Dance Festival. Strategic funding for 10 collaborative projects between Singaporean and Australian artists has been provided between the two organisations. Australian Rural Leadership Foundation partnership In 2015 the Council partnered with the Australian Rural Leadership Foundation to provide aspiring arts leaders living in regional and rural Australia with opportunities to develop their leadership skills. The program consists of five residential programs and addresses leadership, advocacy, media, international relations and community programs. Council investment of $200,000 over three years is supporting four high-performing regional arts leaders to develop their management skills and build networks across regional Australia and the broader arts sector. The first scholarship recipients are Kathy Burns, Artistic Director at Barkly Regional Arts, and Alysha Herrmann, 2015 Kirk Robson Awardee and theatre maker from South Australia.

1 . 3 S TI M U L ATI O N : CAPTIVATE G LO BAL AU D I EN C E S WITH D IVER S E AU STR ALIAN WO R K Australian Performing Arts Market (APAM) Established in 1994 by the Council, APAM is now Australia’s leading internationally focused industry event for contemporary performing arts. The 12th APAM was held in partnership with Brisbane Powerhouse in February 2016. 655 delegates from 30 countries attended, with 30% of delegates from overseas. 131 events were held over the five-day period, including 71 showcase performances, 15 works in development and 45 panel discussions and workshops. 81 Australian and international artists and arts organisations were profiled, with 39 Australian artists and arts organisations presenting a showcase or a pitch. Subsequent to APAM, 51 artists and arts organisations reported touring commitments to over 20 countries and 60 venues. The Council’s APAM International Presentation Program supported 30 of these artists and arts organisations to tour internationally. Australia at the Venice Biennale The Venice Biennale is one of the most prestigious events on the international arts calendar, presenting an unrivalled opportunity to promote Australian artists to international audiences.


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In 2015, Fiona Hall AO represented Australia at the 56th International Art Exhibition with her exhibition Wrong Way Time. The project was a successful public private partnership, with $1.4m from corporate and philanthropic sectors, individual donors, and state arts funding agencies. The exhibition and new Australian pavilion proved enormously popular, registering 287,690 visitors, and were widely covered by Australian and international media in over 200 articles. A record 67 Australian artists exhibited in official and collateral exhibitions at the Venice Biennale 2015. Additionally, 33 emerging curators and arts workers were supported to attend and work at the Australian Pavilion during the Biennale. The National Gallery of Australia subsequently presented Fiona Hall’s Wrong Way Time in Canberra from 22 April to 10 July 2016, expanding access to a further 31,062 visitors in Australia. Global audiences for Australian arts Over the past year 815,000 people overseas engaged with the work of arts organisations supported with multi-year funding through the Australia Council. These small to medium and MPA companies presented incredibly diverse work in 50 countries, captivating audiences and building new markets for Australian art. Individual artists supported by Council also raised the visibility of Australia’s vibrant artistic culture by reaching audiences of more than 800,000.

1 . 4 E XPAN S I O N : G ROW TH E P R O FI LE O F AU STR ALIAN ART Inbound buyer programs Inbound delegations showcase our thriving, diverse arts sector and stimulate ongoing exchange between Australian artists and their international counterparts. To promote the export of Australian arts and culture we supported 136 international curators, publishers, literary agents, music bookers, presenters and producers to attend major Australian contemporary arts events this year. These included the 8th Asia Pacific Triennial of Contemporary Art (APT8), Electronic Music Conference, BIGSOUND, Australasian Worldwide Music Expo, and Sydney Writers’ Festival. During APT8 in November 2015, 21 curators from around the world visited Brisbane, including eight First Nations curators from Canada and New Zealand. Hendrik Folkerts, Curator of Documenta 14, has subsequently invited three Australian artists to exhibit at the exhibition in 2017. Jochen Volz, Curator of the 32nd Sao Paolo Biennial also invited an Australian artist to exhibit in 2016. Delivered alongside the Sydney Writers’ Festival in May, the Visiting International Publishers program engaged 19 international publishers with Australia’s literary culture, and provided insight into global publishing trends and opportunities for Australian authors and publishers. Following the event, seven titles were purchased with a further 50-60 titles being considered over the next five years.

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Cultivating international relationships and opportunities The Council has created a team of three International Development Managers (IDMs) to answer the need for an ongoing and active presence in key international markets. Those markets are Europe, North America, North Asia and South Asia. The primary aims of the IDM team are to increase audiences for Australian arts in target markets, and create connections for Australian artists with their international peers to foster collaboration and exchange. Providing advisory, advocacy and brokerage services for Australian artists (regardless of whether they receive Council funding), the IDMs managed more than 1,000 requests during 2015–16.

Techa Noble, Wolfenite Ghost, Kunstlerhaus Bethanien 2015. Airbrush polycarbonate, synthetic hair. Image credit: Juuso Noronkoski A N N UA L R E P O RT 2 01 5 – 1 6 AG E N CY OV E RV I E W

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Rachael Maza - Beautiful One Day, Ilbijerri Theatre Company Image credit: Heidrun Lohr

G OA L T WO : AU ST R A LIA I S K N OW N F O R I T S G R E AT A R T A N D A R T I S T S Australia is increasingly known for great art made by a diverse range of artists experimenting and pushing boundaries in an environment that supports freedom of expression. In line with our Cultural Engagement Framework, artists from all backgrounds have access to grants and other support which is critical to ensuring that our artistic voices reflect the diversity of Australia. Over 8 in 10 Australians say it is exciting to see new styles and types of art1. Of the projects funded through our grant programs in 2015–16, 27% involved experimental practice. Experimentation and risk taking are central to fostering innovation and ensuring the continuing vibrancy of Australian art. Through the Act we are charged with upholding and promoting freedom of expression in the arts, and do so through our peer assessment process, operating at arms-length from Government. To achieve goal two the Australia Council: supports arts organisations to lead in innovation, collaboration and development of original work fuels diverse practice from artists of many different backgrounds

fosters experimentation, risk-taking and freedom of expression in all art forms builds the capacity of artists to make excellent work.

1 Australia Council for the Arts, Arts in Daily Life: Australian Participation in the Arts, May 2014, p. 31

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AU STR ALIA CO U N CI L G R ANTS PRO G R AM The Australia Council invests in artistic excellence and promotes freedom of artistic expression through a peer assessed grants program for individuals, groups and organisations. The Council’s grants program supports all four strategic goals. It specifically delivers on all elements of goal two by supporting creation, innovation and experimentation across diverse areas of practice, and building the capacity of artists to make excellent work. 2015–16 was the first full year under the new grants model, which opened in January 2015. The new model streamlines over 140 grant categories into five and simplifies criteria. The program is accessible to a more diverse range of artists and organisations, and is more responsive to changing practice. One application can cover multiple stages of the creative process and the program supports a wider range of activities. The Australia Council grants program includes: project and development grants for individuals and groups; fellowships for individuals; project grants for small to medium arts organisations; and multi-year year core program funding for small to medium arts organisations. The grants program is supported by a robust assessment process which draws on the knowledge of a diverse group of expert peers which includes over 670 artists, arts workers and industry experts. Applicants can select one of ten arts practice panels with rotating membership to assess their application, including a new multi-arts panel. First Nations artists and organisations can choose to have their applications assessed by the Aboriginal and Torres Strait Islander arts panel or by any arts practice panel. Changes in our operating environment in 2015 necessitated significant revisions: Six Year Funding was reduced to Four Year Funding with the introduction of a cap; successful Four Year funded companies are now restricted from accessing Council project funding; and the scale and frequency of project grant rounds was impacted. The principles of the new model have remained the same. The outcomes from 2015-16 demonstrate that the program provides greater access to applicants who have not previously received funding from the Council, and it supports a diverse range of activity. This year the Council received over 4,300 applications. Investment through the grants program supported the creation of new work, audience engagement, market development, professional development, increasing access and participation in the arts, and raising the profile of Australian art internationally.


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K E Y F AC T S F R O M 2 0 1 5 – 1 6 Australia Council Grants Program and Strategic Development

$37.6

$12.9

MILLION

MILLION

invested in organisations

invested in grants for individuals

401 651

individual artists were supported

artists and arts organisations will work internationally in 50 countries

25% of the expert peers were from regional or remote locations 19% from culturally and linguistically diverse backgrounds 18% identified as Aboriginal or Torres Strait Islander 6% identified as experiencing disability

506

arts organisations were supported

$375,000

was invested in dedicated funding for artists with disability

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20%

of the successful grants in the new grants model were from first time applicants

21%

of funding went to artists and organisations in regional and remote Australia

K E Y AC TIV ITI E S A N D AC H I E V EM EN T S I N 2 01 5 –16 2 .1 E XC ELLEN C E : S U P P O RT A RT S O R GA N I SATI O N S TO LE A D I N I N N OVATI O N , CO LL A B O R ATI O N A N D D E V ELO P M EN T O F O R I G I N A L WO R K The 28 companies supported through the Major Performing Arts Framework are presenters and producers of large scale work. They have an important role to play in creating innovative new Australian work and reimagining existing repertoire. Over the past year the MPA companies presented 146 new Australian works and over 150 world premieres of non-Australian works. Examples which demonstrate excellence and innovation include: The Wild Duck, adapted and directed by Simon Stone at Belvoir St Theatre, has been recognised with five Sydney Theatre Awards and three Helpmann Awards. It had a highly successful London season and won the audience favourite award at the Holland Festival. The production has also been the inspiration for the film The Daughter, directed by Simon Stone. The Sydney Symphony Orchestra (SSO) is the first orchestra in the Asia Pacific region to join the Classical Live program, within Google Play Music. This enables the SSO to offer live recordings alongside some of the world’s top orchestras. In April 2016 the Queensland Ballet presented A Midsummer Night’s Dream as a coproduction with the Royal New Zealand Ballet. The production was a box office and critical success, brought to life by acclaimed choreographer Liam Scarlett.

The Wild Duck - Anita Hegh. Image credit: Heidrun Lohr A N N UA L R E P O RT 2 01 5 – 1 6 AG E N CY OV E RV I E W

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Global recognition for innovative work Australia’s vibrant small to medium sector continues to produce highly acclaimed and innovative work which is in demand internationally. The following are just two of the projects supported through the Council’s grants and strategic activity: Australia had an extraordinary presence at the Prague Quandrennial, including Back to Back Theatre, Branch Nebula, pvi collective and Malthouse Theatre. Speak Percussion presented at Scotland’s ground-breaking sound and visual art festival, Sonica, following strategic work with the host over several years.

2 . 2 D IVER S IT Y: FU EL D IVER S E P R AC TI C E FR O M ARTI ST S O F MANY D I FFER ENT BAC KG R O U N D S The Sync Leadership Program for arts leaders with disability Delivered by the Australia Council in partnership with Arts Access Australia, the Sync Leadership Program develops leadership capacity amongst arts leaders with disability. The program was run in October 2015 as a five-day residential in Adelaide, with personalised coaching continuing afterwards. Sync aligns with Council’s Disability Action Plan by providing fresh perspectives and challenging deep-seated thinking about leadership and disability. Designed to be different to any other training program for people with disability, it takes its inspiration and name from syncopation – the emphasis on the usually un-emphasised beat. 2015 was the second time the Council has delivered this program, with over 25 alumni now receiving ongoing leadership support. Our Cultural Engagement Framework The Council's Cultural Engagement Framework (CEF) guides decision-making, strategy and best practice in fulfilling our legislative functions relating to diversity. The CEF was reviewed during 2015–16 to align with the Council’s new structure and Corporate Plan. The CEF is underpinned by the belief that engaging with diversity makes the arts relevant, dynamic and reflective of contemporary Australia. Throughout 2015–16 the Council continued to build on flexible ways for people with disability to access Australia Council services. Applicants to grants programs can submit online via AUSLAN, audio, video, printed, dictated, electronic and handwritten formats, or request an offline copy. In 2015-16, Council provided disability awareness training for all staff, and partnered with Access2Arts to train staff in audio-description.

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Donna Franklin, EarMouse Such Sweet Music, 2015 DeMonstrable exhibition, curated by Oron Catts Image credit: Bo Wong

2 . 3 A DV ENT U R E : FO STER E XP ER I M EN TATI O N , R I S K-TA K I N G A N D FR EED O M O F E XP R E S S I O N I N A LL A RT FO R M S Championing innovation In October 2015 the Council partnered with SymbioticA to deliver the second National Experimental Arts Forum at the University of Western Australia in Perth. The forum celebrates Australian experimental art by challenging and probing activities in the field. This year included keynote addresses by leading Western Australian practitioners – pvi collective, Cat Hope and Stelarc. Derek Kreckler’s Accident & Process was a survey exhibition of one of Australia’s most rigorous conceptual artists. Shown at Perth Institute of Contemporary Arts in 2015 it presented photography, video, installation, sound and performance works from Kreckler’s 1970s experimental practice through to his recent still and moving imagery. Funded by the Council, the exhibition will tour Australia in 2016 and 2017. ACCA in the City was a series of performances, situations and strange moments designed by the Australian Centre for Contemporary Art to bring attention to the characteristics of the city of Melbourne. Supported by the Council, ACCA took art to the streets, historic sites, social and business spaces of Melbourne’s CBD during September 2015. Pop up performances, processions by the river and knowledge bubbles for commuters featured amongst the everyday activities of city life.


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Artistic adventure gone global Australian artists are increasingly known for pushing boundaries in practice, while both challenging and delighting their audiences. Examples include: Mel O’Callaghan received support for a site responsive major installation at Palais de Tokyo Paris which attracted huge visitor numbers and garnered extensive press coverage. Dancer and choreographer Adam Linder, also supported by our grants program and International Development Manager, presented at the prestigious Schinkel Pavillion in Berlin. Adam recently won the coveted Mohn Award which honours artistic excellence.

2 . 4 STR EN GTH : B U I LD TH E CAPAC IT Y O F ARTI ST S TO MAK E E XC ELLENT WO R K Investing in leadership The Emerging Leaders Development Program (ELDP) supports emerging and established leaders to develop the skills and capabilities to lead through change. Over the life of this program, 116 participants were selected through a competitive process from all states and territories, across all art forms and in regional and metropolitan Australia. The final of five ELDP intakes occurred in 2015. Sector consultation and research informed the development of the revised 2015-18 Leadership Program which officially launched in early 2016. Australia Council Awards 2016 These prestigious national awards recognise outstanding and sustained contributions by eight individuals to the arts in Australia. The 2016 Australia Council Award recipients are: David Malouf AO – (Literature), Brett Dean – (Music), Richard Bell – (Visual Arts), Kelli McCluskey – (EEA), Lucy Guerin – (Dance), Yaron Lifschitz – (Theatre), Lily Shearer – (CACD – Ros Bower), Nathan Stoneham – (CACD – Kirk Robson). Richard Bell, Nathan Stoneham, Yaron Lifschitz, Lily Shearer, Rupert Myer AO, David Malouf AO, Tony Grybowski CEO, Kelli McCluskey

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G OA L T H R EE : T H E A RT S EN R I C H D A I LY L I F E F O R A L L

Tongan God of the Sky Tangaloa with Pacific Golden Plover. Australian Pacific Arts Network. Image credit: Franco Saliba

Australians know that the arts enrich our lives and our communities. Over eight in ten believe the arts make for a richer and more meaningful life2. We are dedicated to giving a more diverse range of people the opportunity to engage with the arts. To date, more than 30% of artists and organisations funded through our grant programs nominated access and participation or audience engagement as the primary outcome of their project. The Australia Council is committed to enabling access, participation and high quality arts experiences for Australian children and young people. In 2015–16, more than 144 projects supported by the Australia Council included working with, or producing work for, young people. Working in partnership with the private sector, we will seek new opportunities and funding partners to promote the inclusion of arts in daily life. To achieve goal three the Australia Council: supports activities which infuse everyday life with arts and culture ensures more Australians have access to and engage with the arts strengthens artistic experiences by, with, and for children and young people increases public and private investment in the arts. 2 Australia Council for the Arts, Arts in Daily Life: Australian Participation in the Arts, May 2014, p. 12 A N N UA L R E P O RT 2 01 5 – 1 6 AG E N CY OV E RV I E W

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Bowerbirds directed by Sarah-Vyne Vassallo, Murmuration. Artists pictured: Dan Daw and Daniel Monks. Image credit: Hayley Rose.

K E Y AC TIV ITI E S A N D AC H I E V EM EN T S I N 2 01 5 –16 3.1 AB U N DAN C E : I N FU S E E VERYDAY LI FE WITH ART S AN D CU LTU R E Through grants and targeted strategic programs, the Council supports a range of activity to realise this goal. The following are just a few examples of activity from 2015-16. Increasing engagement with the local government sector This year the Australia Council announced a partnership with the Victorian-based Cultural Development Network and the Australian Local Government Association to deliver the National Local Government Cultural Forum. The Council committed $450,000 for 2016–18 to extend the reach, quality, profile and understanding of local governments' contribution to Australia’s cultural life. The forum is managed and serviced by the Cultural Development Network, and supported by research partner RMIT University.

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Community development through music The Tasmanian Symphony Orchestra (TSO) inaugurated its Prison Outreach Program in 2015 with a series of activities for inmates at the Ron Barwick Minimum Security Prison in Hobart. TSO musicians worked with prisoners and their families. The program included a collaborative concert with TSO musicians and the prison’s resident rock band. Responses to the project have been overwhelmingly positive. Onslow Kids Music Education (OK ME!) is a two-year pilot program that addresses at-risk communities by providing free music lessons to every student from Kindergarten to Year 7. The program also provides professional learning opportunities to non-music specialist teachers. The program is delivered by the West Australian Symphony Orchestra and received the WA State Award for Excellence in a Regional Area. Dance education Out There – The Australian Ballet in Schools program delivered dance demonstrations, workshops and forums to over 17,000 students in 117 schools across 90 regional and metropolitan locations in 2015. Reinforcing arts outcomes in the curriculum, Out There prioritises schools and communities who would not normally have access to this type of program due to socio-economic, distance, and cultural factors.

Presentation by Harpist Meriel Owen for Meet the TSO @ Mathers House series


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3. 2 I N C LU S I O N : EN S U R E M O R E AU STR ALIAN S HAVE ACC E S S TO AN D EN GAG E WITH TH E ART S Arts Marketing Summit The 12th annual Marketing Summit brought together 200 arts marketing professionals in Adelaide in June 2016. The theme of this year’s Summit was Valuing the Arts. This group have a unique role nationally in reaching increasingly diverse audiences and driving engagement with the arts in every part of the country. 25 speakers engaged with the delegates over the two days across a range of subjects including valuing the arts through technology, leadership, evidence of value, and audience segmentation. The Summit gives delegates the opportunity to expand their knowledge and networks; encouraging relationship building between a range of arts organisations at a national level. The Engaged Communities resource The Engaged Communities e-book was produced and launched by the Council in 2015 to support arts organisations engaging with community; an online best practice resource. This new resource provides information about community engagement and successful Australian case studies. The resource is available to download at http://australiacouncil.gov.au/engagedcommunities.

Cathy Craigie - Marketing Summit 2016

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3. 3 N E W G EN ER ATI O N : STR EN GTH EN ARTI STI C E XP ER I EN C E S BY, WITH AN D FO R C H I LD R EN AN D YO U N G P EO P LE Social impact through Community Arts Network (CAN) WA In 2016 CAN released a report on their programs in Narrogin, which included school workshops and the ‘Strong Communities, Strong Culture’ program. Independent analysis found that for every $1 spent, $18.58 in social value was returned, and school attendance has improved. CAN is a community arts and cultural development organisation supported with multi-year funding. Arts Learning Forum The Arts Learning Forum was a three-day event for professionals in arts education roles across art forms, ages and communities. Held at the Footscray Community Arts Centre in Melbourne in November 2015, the forum extends the work of the Arts Education Forum established by the Major Performing Arts companies in 2010. Over 60 arts learning leaders presented, spoke on panels, and facilitated workshops and discussions with nearly 200 delegates. Including young people and those with youth arts experience in our peer networks The Council has 10 peer panels with rotating membership drawn from a pool of over 670 peer assessors spread geographically, and across art forms, cultural backgrounds, and at different stages of their careers. Of the peer engagements during 2015–16, 5% involved peers under the age of 30. Applications that target children, young people or early career artists are most common to Literature, Theatre, Community Arts and Cultural Development, Music and Multi-art form panels. We aim to ensure that peers with youth arts experience are involved in all these panels.

3. 4 L E VER AG E : I N C R E A S E P U B LI C AN D P R IVATE I NVE STM ENT I N TH E ART S Attract new funding: the Co-investment Strategy The Council is working to increase support for the arts from public, private and philanthropic sources. This builds on experience gained from a history of co-investment, as shown by the Venice Biennale Pavilion project, the Keir Choreographic Award, and the Musée du Quai Branly commission. In 2016, a Manager, Co-Investment was appointed and a Co-investment Plan is in development to support the Council’s goal to increase investment in the arts generally, and to increase funding for signature Council projects and programs.


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Sir John Monash Foundation, the Australia Council and Tim Fairfax The John Monash Scholarship recognises leadership capability, academic excellence and potential contribution to Australia. In partnership with Tim Fairfax AC, the Council is supporting an Australian Cultural John Monash Scholarship from 2014–2016. The scholarships provide recipients with $60,000 a year to undertake post graduate studies at the world’s leading universities. The 2016 Australia Council Scholar is Samuel Williams, who has a Bachelor of Creative Arts (Creative Writing) with First Class Honours and was awarded the University Medal from Flinders University. Major Performing Arts US Fundraising Study Tour Eight leaders from Major Performing Arts (MPA) companies visited New York and Philadelphia in October 2015. Led by Julian Knights AO, former Chair of the Council’s MPA Panel, the study tour met with like organisations and explored best practice fundraising, board recruitment, donor cultivation, philanthropy and capital campaigns.

Experimental Media and Performing Arts Center, New York: 2017 international residency venue. Image credit: Peter Aaron

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G OA L FO U R : AU ST R A LIA N S C H ER I S H AB O R I G I NAL AN D TO R R E S STR AIT I S L A N D E R A R T S A N D C U LT U R E Australia has two unique Indigenous cultures - Aboriginal and Torres Strait Islander, each with distinct identities, histories and cultural traditions. These are the First Nations people of this country who hold a unique position as the world’s oldest continuous living culture. Artistic expression of First Nations people, whether painting, dance, song or story is integrally connected to cultural knowledge and relationships with a person’s country, be it land or sea. This contemporary artistic expression not only draws upon traditional knowledge and traditional cultural expression, but also draws upon the diversity of intercultural experiences at a national level, and artistic disciplines arising from many other world cultures. The Council has identified the importance of traditional arts practices and the dynamism of new forms of artistic practice. During 2015–16 Council invested a total of $9.9 million in arts and cultural activities with a primarily First Nations focus. This included project grants, residencies, mentorships, fellowships, leadership programs, awards, Key Organisation funding, Major Performing Arts companies, regional, national and international exchanges, and strategic initiatives and research. To achieve goal four the Australia Council: invests in artistically excellent works of scale empowers Aboriginal and Torres Strait Islander artists and cultural practitioners to be at the centre of Australian arts works to increase Australians’ experience of Aboriginal and Torres Strait Islander arts and cultures supports intergenerational transfer of artistic and cultural knowledge.


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K E Y AC TIV ITI E S A N D AC H I E V EM EN T S I N 2 01 5 –16 4 .1 EN R I C H : EM B ED AB O R I G I NAL AN D TO R R E S STR AIT I S L AN D ER ART S AN D CU LTU R E S I NTO AU STR ALIAN ART S Ninth National Indigenous Arts Awards 2016 Each May the Council hosts the annual National Indigenous Arts Awards to celebrate excellence and acknowledge achievement by exceptional Indigenous artists. The Red Ochre Award recognises outstanding lifetime achievement in the arts. Past award recipients have included actors David Gulpilil and Justine Saunders, musicians Archie Roach and Jimmy Little, and artist Mick Namarari Tjapaltjarri. The Dreaming Award is given to a young person between 18-26 years old to develop a major work with a mentor. Fellowships are awarded to mid-career artists to pursue a creative work over two years. The 2016 recipients were world-renowned Ngarrindjeri weaver Yvonne Koolmatrie (Red Ochre Award), artist and community development teacher Vicki Couzens (Fellowship Award) and lyricist, rapper, composer and producer Corey ‘Nooky’ Webster (Dreaming Award for a young artist). Tri-Nations Exchange The Australia Council developed an innovative partnership with Creative New Zealand and the Canada Council for the Arts to deliver a tri-nations exchange for First Nations artists and arts mediaton in conjunction with the 8th Asia Pacific Triennial of

Uncle Moogy Sumner performing at Goolwa during ‘Ringbalin – Dancing the River’. Image credit: Iain Morton, courtesy Ananguku Arts and Culture Aboriginal Corporation.

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Contemporary Art (APT8) in late 2015. First Nations curators from the three countries came together at APT8, hosted by the Queensland Art Gallery and Gallery of Modern Art, to share knowledge, cultural practice and networks. The outcomes of the project include increased networks and collaborations between First Nations artists and curators, enhanced market development and exchange capabilities, and greater peer support on an international level. In addition to core grants, Council delivers strategic investment and capacity building activities at a national and international level. The 2015 Cairns Indigenous Art Fair (CIAF) attracted record attendance figures over three days. Council has invested $300,000 over three years towards CIAF, with an additional investment of $20,000 to an International Visitor Program.

4 . 2 B R I LLIAN C E : B O OST I NVE STM ENT I N ARTI STI C E XC ELLEN C E Signature Works Signature Works supports the creative ambition of artists, through the development of artistic concept to production and distribution. The overall goal of this program is to support the canon of Indigenous works into the future. A four day Innovation Lab was held in March 2016 with 24 artists and five mentors, and the selected creative proposals will receive targeted investment of $10,000 each for further development with a creative team. The Innovation Lab was devised to stimulate collaboration between Indigenous artists and organisations, creative talents, producers and content commissioners. 10 pitches were captured on film and project plans prepared. The Aboriginal and Torres Strait Islander Arts Strategy Panel will assess the video pitches and the project plans to assign targeted investment for further development First Nations Writing The Council funded the biennial First Nations Australian Writers Network Workshop in Melbourne in August 2015. Two dozen representatives of the Australian literature sector came together to improve outcomes for, by, and with Indigenous writers. This activity is designed to strengthen the representation of Indigenous members in the sector, improve organisational cultural competency, and increase the number of published books by Indigenous writers. The black&write! editing internships program builds the capacity of Indigenous editors and the Australian publishing industry to publish work by Indigenous writers. The Council funded two Aboriginal women, Grace Lucas-Pennington and Yasmin Smith, to work as editing interns at the State Library of Queensland from 2015–16. The program provides manuscript development through to completion, and a publication opportunity with Hachette Australia.


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Alongside the 2016 Sydney Writers’ Festival, the Council ran an inbound program for visiting international publishers which included a panel and showcase of Australian Indigenous writing. Aimed at developing awareness of Indigenous literature and growing international sales and markets for Indigenous writers, the session was attended by 16 international publishers and 40 Australian publishers. Capacity Building In 2015–16, Council conducted three professional development bootcamps for Indigenous arts practitioners, curators and producers. The bootcamps were held at BIGSOUND 2015, the 8th Asia Pacific Triennial of Contemporary Art (APT8), and the Australian Performing Arts Market (APAM) 2016. The bootcamps were designed to: develop skills to create and implement projects that were strategic, culturally safe and financially viable; establish national and international networks; and to build positive perceptions of Indigenous works. Outcomes to date include a confirmed dance tour, invitations to international showcases and a future group exhibition, with future collaborations and commissions in negotiation. Further bootcamps and showcase opportunities are planned for 2017 to build on these successes. Kluge-Ruhe Residency In partnership with the University of Virginia, First Nations visual artists are offered the opportunity to undertake a four week residency at the Kluge-Ruhe Aboriginal Art Collection of the University of Virginia and exhibit a collection of work. Bianca Beetson was the recipient of the 2015 residency. The Kluge-Ruhe Collection of the University of Virginia is the only museum in the United States dedicated to the study and interpretation of Australian Aboriginal art. Its mission is to advance knowledge and understanding of Australia’s Indigenous people and their art and culture by providing a wide range of learning experiences to the University community and the public through exhibition, research and educational programs.

4 . 3 B ELO N G I N G : I N C R E A S E AU STR ALIAN S ’ E XP ER I EN C E O F AB O R I G I NAL AN D TO R R E S STR AIT I S L AN D ER ART S AN D CU LTU R E S Research In 2015 the Council released the research report Building Audiences: Aboriginal and Torres Strait Islander Arts. The report is designed to assist the sector in building audience development strategies for Indigenous arts. In 2016, Council built on the audience research with a research analysis of the programming and presenting of Indigenous arts, Showcasing Creativity: Presenting and Programming Indigenous Arts. This evidence-based approach to strategic and project activity builds the Indigenous arts sector capacity and increases industry capability.

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Installation view: RIVERLAND: Yvonne Koolmatrie, Art Gallery of South Australia, Adelaide, 2015. Image credit: Saul Steed


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Dance First Nations dance practitioners continue a legacy of over 70,000 years of dance. BlakDance and the national gathering of the Indigenous dance sector Dana Waranara brought together Indigenous choreographers and Australian and international festival directors, venue programmers and presenters at the Judith Wright Centre of Contemporary Arts in Brisbane in December 2015. Dana Waranara’s focus was on forging opportunities for those present to understand the connection between land, culture, ceremony and storytelling through dance. Bangarra Dance Theatre’s film Spear was developed through a partnership between the Australia Council, the Adelaide Film Festival’s Hive program, Screen Australia and the ABC. The film premiered at the Toronto International Film Festival in September 2015 and was shown at the 2016 Sydney Festival and the Perth International Arts Festival.

4 . 4 J O U R N E Y: S U P P O RT I NTERG EN ER ATI O NAL TR AN S FER O F ARTI STI C AN D CU LTU R AL K N OW LED G E FO R AB O R I G I NAL AN D TO R R E S STR AIT I S L AN D ER CO M M U N ITI E S TO P R AC TI S E AN D E XP ER I EN C E TH EI R CU LTU R E Chosen In 2016 Council introduced Chosen, a strategic program designed to support the intergenerational transfer of artistic and cultural knowledge. This program enables Indigenous communities to determine the program design and delivery plan for how they will nurture younger people from their community/sector in the arts and/or culture. 12 projects were supported with an investment of approximately $500,000. Cultural Residency In February 2016, Bangarra Dance Theatre undertook a cultural residency in North East Arnhem Land and the Tiwi Islands which included dancers, Artistic Director Stephen Page, staff and a team from OzHarvest. The company held workshops and cultural exchange with local Dhalinybuy youth, and went hunting and gathering with elders. The Bangarra film Spear was screened for the whole community, and dance workshops were held for locals at the Yirrkala School. Bangarra also hosted a meal for 450 locals as part of a new healthy eating partnership with OzHarvest, later performing Ochres to a packed house at Nhulunbuy Town Hall. The dancers also visited Bathurst and Melville Islands to conduct workshops with both primary and secondary schools.

XXXXX, xxxxxxx. Image credit:

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Corey 'Nooky' Webster, Vicki Couzens, Yvonne Koolmatrie. National Indigenous Arts Awards 2016.


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2015 World Puppetry Festival, France. A collaboration between Black Hole Theatre and Barking Spider Visual Theatre. Image credit: Sarah Walker

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REPORT ON PERFORMANCE O U TC O M E S A N N UA L R E P O RT 2 01 5 – 1 6 AL RC E PE OORU T T2C0O1 5M–E1 6S R E P O R T O N P E RAFNONRUM AN

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A N N U A L P E R F O R M A N C E S TAT E M E N T S The Board of the Australia Council, presents the 2015-16 annual performance statements of the Australia Council, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In the Board’s opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of the entity, and comply with subsection 39(2) of the PGPA Act. In 2015-16 the Council supported Australian artists and arts organisations to create and present excellent art that is accessed by audiences across Australia and abroad. The Council achieved this by: delivering Australian Government directed initiatives and frameworks that support the government’s broader priorities for Australian arts and culture providing grants to support artists and arts organisations across a range of art forms

undertaking strategic research and analysis to build the evidence base for the arts delivering strategic investment to build audiences nationally and internationally and promote the strong international reputation of Australian arts and artists advocating for Australian arts and artists.

The key performance indicator targets were not changed following the redirection of $27.7 million from the Australia Council appropriation in the 2015-16 Budget measure entitled ‘National Programme for Excellence in the Arts – establishment.' Consequently, the 2015-16 indicators have not been achieved in all instances due to the change in Council funding for 2015-16. As stated in the Council’s Corporate Plan 2015-19, the indicators cannot be achieved by the Australia Council alone in this context.

SU PPO RT FO R N EW AU STR ALIAN ART WO R K TARGET

TARGET ACHIEVEMENT

Number of new Australian art works supported*

7,000 7,234 Total funding for new Australian art works

$7.5M $9.9M 68

SUPPORT FOR ARTISTS , O R G A N I S AT I O N S A N D P R O J E C T S Number of artistic works exhibited, performed and published*

Number of countries presented in*

6,400

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6,829

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Number of initiatives that strengthen ties with other countries

30 46

Number of grants supporting Australian artists internationally

Number of grants and projects

450

2,200

401

1,366

Number of organisations funded

Number of individual artists funded

800

1,100

716

650

S U P P O R T F O R C U LT U R A L LY DIVERSE PROJ ECTS AN D EVENTS Number of projects/events funded

Total funding provided

300

$11.5M

296

$14.1M

*based on acquittal data from 2015-16, which reflects a combination of activity funded in 2014-15 and 2015-16 A N N UA L R E P O RT 2 01 5 – 1 6 R E P O RT O N P E R F O R M A N C E O U TC O M E S

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R E S E A R C H A N D D E V ELO P M ENT P R OJ EC T S Projects supported in this area include both research and development through grants for artists and activity under the Council's research function. Total funding for research and development projects

$1.5M $0.8M

VI S ITO R I NTER AC TI O N S Total number of audiences* at Australia Council supported arts activities This includes some high attendance figures for a small number of projects. Attendance figures of this nature will fluctuate from year to year.

15.5M 15.7M

Total number of visits to the Australia Council website

0.78M 0.54M The improved efficiency of the user journey, along with a reduced number of closing dates impacted the reduction in website visits. Traffic to social media channels increased substantially through content and acquisition strategies.

EXPENDITURE MIX Actual operational expenditure for programs, labour and other expenses has not been achieved in line with targets in all instances due to the change in Council funding for 2015-16. Expenditure on programs/projects (as a % of total expenditure)

Expenditure on other labour costs** (% of total expenditure)

91.1 %

5.3%

89.6%

6.1% Other expenses (% of total expenditure)

Expenditure on capital items (% of total expenditure)

0.4%

3.2%

0.2%

4.1%

*based on acquittal data from 2015-16, which reflects a combination of activity funded in 2014-15 and 2015-16 ** target achievement includes $586,000 of redundancy cost

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RiverKin, Creatures of Havoc River Rites Image credit: Punctum A N N UA L R E P O RT 2 01 5 – 1 6 R E P O RT O N P E R F O R M A N C E O U TC O M E S

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A N D AC C O U N TA B I L I T Y

M A N AG E M E N T

Circa Carnival of the Animals. Image credit: Justin Nicholas, Atmosphere Photography

AN N UAL REPORT 2015 –16

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THE AUST RA L IA CO UNCIL B OA RD Under the Act, the Australia Council is overseen by the Board. Its membership comprises a range of expertise across artistic practice, arts management, business, management, public policy, corporate governance and administration, regional issues, gender, multicultural and Indigenous community participation in the arts, finance, philanthropy, legal affairs, corporate strategy and research. The Board had eleven (11) non-Executive members, not including the Chief Executive Officer (CEO) who is an Executive (Ex-Officio) member of the Board. Board members who served during the year are as follows: Chair, Mr Rupert Myer AO (Vic) Deputy Chair, Ms Robyn Archer AO (SA) Chief Executive Officer, Mr Tony Grybowski (NSW) Mr Waleed Aly (Vic) Ms Lee-Ann Buckskin (SA) Mr Adrian Collette AM (Vic)

Mr Khoa Do (Vic) Ms Sophie Mitchell (Qld) Ms Samantha Mostyn (NSW) Mr Tim Orton (Vic) Ms Rebecca Weisser (NSW) appointed 7 September 2015 Mrs Christine Simpson Stokes (WA) appointed 25 February 2016

Terms of appointment for members of the Board are generally three years. Members are eligible for re-appointment, however, appointments are limited to a total of nine years.

B OA R D G OV E R N A N C E The Board and Council staff are guided by internal policies and guidelines. Key to ensuring good corporate governance is Council’s Governance Manual. The Governance Manual outlines the expected and appropriate ethical standards for Board members and staff to uphold including: directors’ obligations confidentiality and disclosure of the Council’s business

conflicts of interest sponsored travel and acceptance of gifts or benefits.

A Code of Conduct, with which every member of the Council, its Board and committees, are expected to comply, is provided with the Governance Manual. It outlines the responsibility entrusted to these members and the fundamental principles and values that guide the work of the Council. If a Board member requires legal advice on any matter, the Chair advises the CEO to make arrangements for obtaining this advice. There were no requests for legal advice by a Board member for 2015–16.

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A N N UA L R E P O RT 2 01 5 – 1 6 M A N A G E M E N T A N D A C C O U N TA B I L I T Y

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M R R U P E R T M Y E R A O ( V i c ) - C h a i r

Mr Myer is Chairman, The Aranday Foundation and Nuco Pty Ltd; Director of AMCIL Limited; Healthscope Limited; The Myer Foundation; Creative Partnerships Australia; eCargo Holdings Limited; Member of the University of Melbourne Faculty of Business and Economics Advisory Board; Board Member of Jawun Indigenous Corporate Partnerships; Australian International Cultural Foundation and The Yulgilbar Foundation; Emeritus Trustee National Gallery of Victoria; Member, International Advisory Board of the Hong Kong Arts Development Council; and Member, Felton Bequests’ Committee. Mr Myer was formerly Chair, National Gallery of Australia, Chair, Federal CVAC Inquiry, Board Member of Museum of Contemporary Art Australia and National Gallery of Victoria. 2

M S R O B Y N A R C H E R A O F A H A ( S A ) - Deputy Chair

Ms Archer is Chevalier de l’Ordre des Arts et des Lettres; Officer of the Crown (Belgium); Strategic Advisor, Arts and Culture, City of Gold Coast; Artistic Director, The Light in Winter; Chair, Master of Fine Arts (Cultural Leadership) NIDA; Patron, Brink Productions; Australian Script Centre; Australian Art Orchestra; Arts Law Society; Institute of PostColonial Studies; Restless Dance Theatre; Mildura Print Triennial; Ambassador Adelaide Football Club; International Women’s Development Agency; Member, The European House of Culture; Council on Australia Latin America Relations. Ms Archer was the Creative Director, Centenary of Canberra 2013, won the Helpmann Award for Best Cabaret Performer 2013, and was crowned Cabaret Icon at the 2016 Adelaide Cabaret Festival. She holds Honorary Doctorates from Flinders and Griffith Universities, and from the Universities of Sydney, Canberra and Adelaide, and is an Honorary Fellow of the Australian Academy for the Humanities. 3

M R T O N Y G R Y B O W S K I ( N S W ) - Chief Executive Officer

Ex-Officio Board Member. 4

M R WA L E E D A LY ( V i c )

Mr Aly is an award-winning author, broadcaster, academic and lecturer in politics at Monash University; Director, Tigers in the Community Foundation; Director, Macent Pty Ltd (Trading as Salam Café); and Ambassador, Possible Dreams International. Mr Aly is also a practising musician. 5

MS LEE-ANN BUCKSKIN (SA)

Ms Buckskin is the Aboriginal Strategy Executive at the South Australian Film Commission and member of the National Museum of Australia's Indigenous Advisory Committee. Ms Buckskin is a consultant to the Adelaide Film Festival Ideas program and previously member of the Indigenous Champions Group for the Barangaroo redevelopment site in Sydney; and previously Co-Chair of South Australia’s 2015 International Aboriginal Visual Arts Festival. Ms Buckskin is a Narungga, Wirangu, Wotjobaluk woman.

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M R ADRIAN COLLET TE AM ( Vic)

Mr Collette was previously CEO, Opera Australia for 16 years; currently Vice-Principal (Engagement), University of Melbourne; Executive Board Member, Committee for Melbourne; Board member, The Ian Potter Museum of Art; Melbourne University Sport; Life Member, Australian Entertainment Industry Association’s Executive Council; previously Managing Director, Reed Books; former Member, Victorian Council for the Arts. 7

M R K H OA D O ( Vi c)

Mr Do is a film director, producer and screenwriter. Mr Do has been nominated for AFI Awards and shortlisted for an Academy Award, is an international keynote speaker, and community and youth worker and leader. Mr Do was Young Australian of the Year in 2005. In 2014 he won the Australian Director’s Guild Award for Best Direction in a TV Mini Series. 8

M S SO P H I E M ITC H ELL (Q l d )

Ms Mitchell is Trustee, Queensland Performing Arts Trust; Director, Morgans; Director, Silver Chef Limited; Director, Flagship Investments Limited; Director, Morgans Foundation; Member, Australian Government Takeovers Panel; Queensland Advisory Board for Australian Super and Chairman of Norna Limited. 9

MS SAMANTHA MOST YN (NSW )

Ms Mostyn is the President of the Australian Council for International Development, Chair of Citibank Australia and Carriageworks, and Deputy Chair of the Diversity Council of Australia . Ms Mostyn is a board member of Virgin Australia, Transurban Group, Mirvac, and CoverMore; and member of the Global Commission of Business and Sustainable Development. Ms Mostyn has previously held senior executive roles at Insurance Australia Group, Optus Communications and Cable & Wireless plc. Ms Mostyn was the first woman appointed to the AFL Commission, and served on the Chief of the Defence Force's Women’s Advisory Group, and was a member of the Human Rights Commission Review of the Treatment of Women in the Australian Defence Force. Ms Mostyn previously served for 10 years on the Board of the Sydney Theatre Company. 10

M R TI M O RTO N ( Vic)

Mr Orton is Chair, Rhodes Scholarships in Australia; Executive Board Member, Committee for Melbourne; Managing Director, Nous Group; Director, Jianguo Pty Ltd; and a former Chair of Geelong Performing Arts Centre.


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M R S C H R I S T I N E S I M P S O N S T O K E S ( WA )

Appointed 25 February 2016 Mrs Simpson Stokes is a Trustee of Western Australia’s Children’s Charity Telethon, Patron of the Young Indigenous Women’s leadership program ‘Kimberley Girl’, and a member of the Advisory Council of the Jackman Furness Foundation for the Performing Arts. Mrs Simpson Stokes has extensive experience in business management and media, and is a philanthropist and supporter of the arts. 12

M S R E B E C C A W E I S S E R ( N S W )

Appointed 7 September 2015 Ms Weisser is a journalist, editor and public policy and communications consultant. Ms Weisser is a regular contributor to Quadrant, The Australian, The Spectator Australia and The Drum, and has appeared on Q&A, ABC News 24, and Sky’s Paul Murray Live and Cameron and Kenneally. Ms Weisser has held senior editorial roles at The Australian, and was previously a career diplomat with the Department of Foreign Affairs and Trade. Ms Weisser has worked in communications and public affairs at Qantas and the Australian Catholic University. Ms Weisser has a First Class Honours degree in Arts from the Australian National University and a Graduate Diploma in Foreign Affairs and Trade. Schedule of attendance at board meetings from 2015-16 NAME

ELIGIBLE TO ATTEND MEETINGS MEETINGS ATTENDED

Mr Rupert Myer AO

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Ms Robyn Archer AO

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8

Mr Tony Grybowski

9

9

Mr Waleed Aly

9

7

Ms Lee-Ann Buckskin

9

9

Mr Adrian Collette AM

9

8

Mr Khoa Do

9

9

Ms Sophie Mitchell

9

8

Ms Samantha Mostyn

9

8

Mr Tim Orton

9

7

Mrs Christine Simpson Stokes

3

3

Ms Rebecca Weisser

6

6

Changes to Board membership for 2015 – 16 Rebecca Weisser was appointed to the Board for a period of three years on 7 September 2015. Christine Simpson Stokes was appointed to the Board for a period of three years on 25 February 2016.

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D E PA R T M E N T O F C O M M U N I C AT I O N S A N D T H E A RT S A N D G OV E R N M E N T P O LI C I E S RESPONSIBLE MINISTER Between 1 July and 13 September 2015 Senator the Hon George Brandis QC, Attorney-General and Minister for the Arts was responsible for the Australia Council. From 14 September 2015, the Minister responsible for the Council was Senator the Hon Mitch Fifield, Minister for Communications and the Arts.

D E PA R T M E N T O F C O M M U N I C AT I O N S A N D T H E A R T S The Department of Communications and the Arts attends Council Board meetings as an observer. During 2015-16 Ms Sally Basser, First Assistant Secretary of the Arts, represented the Department.

MINISTERIAL DIRECTION S AN D RU LES The Council is bound by the Australia Council Rule 2013 issued for the purpose of section 48(1)(a),(b) and (c) of the Act. Section 48(1) of the Act provides for restrictions on financial transactions and requires that ministerial approval is sought in writing for an amount prescribed by the rules. The Australia Council Rule 2013 prescribes the amount of $1,000,000 for the purposes of section 48(1)(a), (b) and (c) of the Act. No ministerial directions were received in 2015–16.

GENERAL POLICY ORDERS A N D G OV E R N M E N T P O LI C I E S No General Policy Orders or government policies affecting the Council were issued in 2015–16. Previously issued General Policy Orders and government policies continued to be noted.


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COMMITTEES Pursuant to section 31 of the Act, the following committees and panels provided specialist advisory services and recommendations to the Board and management for consideration and approval: 1. Audit and Finance Committee 2. Nominations and Appointments Committee 3. Strategy Committee 4. Decisions Review Committee 5. Rescission of Decisions Committee 6. Appeals Committee 7. Peer Assessment Panels 8. Aboriginal and Torres Strait Islander Arts Strategy Panel 9. Major Performing Arts Panel 10. Research Strategy Panel

AU D IT AN D FI NAN CE CO M M IT TEE The Audit and Finance Committee was chaired by Board member Ms Sophie Mitchell during 2015–16. The committee provides oversight of Council’s financial reporting and budgeting functions, internal and external audit processes, risk management, the system of internal controls and compliance with legal and regulatory requirements. The Chair of Council, the Chief Executive Officer, the Chief Financial Officer and General Counsel have a standing invitation to attend committee meetings. The committee met six (6) times during the year. The Audit and Finance Committee reviews its Charter annually. The Committee’s compliance with the Charter was reviewed and reported to the full Board during 2015-16. Representatives from the Council’s internal and external auditors were invited to attend the committee meetings. The Chair of the Committee reported on relevant matters at the following Board meetings.

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Attendance at Audit and Finance Committee meetings NAME

ELIGIBLE TO ATTEND MEETINGS

MEETINGS ATTENDED

Ms Sophie Mitchell (Chair)

6

6

Mr Adrian Collette AM

6

6

Mr Khoa Do*

3

2

Mr Tim Orton

6

5

*Term commenced in March 2016

N O M I N AT I O N S A N D A P P O I N T M E N T S C O M M I T T E E The Nominations and Appointments Committee was chaired by the Deputy Chair of the Board, Ms Robyn Archer AO during 2015–16. The committee facilitates and oversees the nominations process for the Council's peer and strategy panels in consultation with senior management. The committee considers all nominations at its meetings and then makes recommendations to the Board for appointment of the endorsed nominees. The Board considers each recommendation and approves the relevant appointments. The committee met four times in 2015–16. Attendance at Nominations and Appointments Committee meetings ELIGIBLE TO ATTEND MEETINGs

MEETINGS ATTENDED

Ms Robyn Archer AO

4

4

Ms Lee-Ann Buckskin

4

4

Mr Khoa Do

4

4

NAME

S T R AT E G Y C O M M I T T E E The Strategy Committee was chaired by Board member Mr Tim Orton during 2015–16. The committee oversaw the continued implementation of Council’s five-year Strategic Plan and 2015-19 Corporate Plan. The committee met twice in 2015–16. Attendance at Strategy Committee meetings NAME

ELIGIBLE TO ATTEND MEETINGS

MEETINGS ATTENDED

Mr Tim Orton

2

2

Ms Robyn Archer AO

2

1

Mr Waleed Aly

2

0

Ms Lee-Ann Buckskin

2

2

Ms Samantha Mostyn

2

2

Ms Rebecca Weisser*

1

1

*Term commenced October 2015


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DECI SION S REVIEW COM MIT TEE The Board has empowered the Decisions Review Committee, under the Council’s Authorisations Framework 2015 and the Act, to determine requests for review of grant related decisions. To meet the requirements for review, the applicant must establish a relevant administrative ground to dispute a decision. The Decisions Review Committee does not assess the artistic merit of applications. Its purpose, under the Council’s direction, is to ensure the panels and senior officers have followed procedural fairness in making decisions. The membership comprises the CEO, the Chair of the Audit and Finance Committee, a member of the Nominations and Appointments Committee and one additional Board member. As at 30 June 2016, Mr Tony Grybowski was Chair of the committee. Further information is available at australiacouncil.gov.au/funding/appealing-a-grant-decision. The Decisions Review Committee met once in 2015–16.

RESCI S SION OF DECI SION S COM MIT TEE The Board has empowered the Rescission of Decisions Committee, under the Council’s Authorisations Framework 2015 and the Act to: 1. Suspend a decision by a Panel, Committee, Officer(s) or Employee(s) approving a grant or loan of money or the provision of a scholarship, fellowship, award, or other benefits, until such time as a decision is made whether to rescind or confirm it; and 2. Rescind or confirm a decision by a Panel, Committee or Officer(s) or Employee(s) approving a grant or loan of money or the provision of a scholarship, fellowship, award, or other benefits. The Rescission of Decisions Committee consists of the Deputy Chair and the CEO. The Chair may exercise the power in unison with the CEO when the Deputy Chair is absent. The authority shall only be exercised where the project outcomes contemplated in a grant application or funding decision under review may not comply with all applicable laws, or could reasonably be deemed to have the effect of bringing the Council into disrepute. The Rescission of Decisions Committee did not meet in 2015–16.

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APPEALS COMMITTEE The Board has empowered the Appeals Committee, under the Council’s Authorisations Framework 2015 and the Act, to consider and determine any appeal from a Board or committee member or senior officer of the Council against a decision by the Rescission of Decisions Committee to rescind a previously approved decision. The Appeals Committee consists of the Chair (or the Deputy Chair where the Chair has participated in the decision to rescind or confirm the subject of the appeal) and three Board members, as elected by the Chair (or Deputy Chair) providing that the Board members have not been involved in the decision under appeal. At least one committee member is to have experience as an arts practitioner. The Appeals Committee did not meet in 2015–16.

P E E R A S S E S S M E N T PA N E L S A peer is a practising artist, arts worker or industry expert with knowledge and experience of the Australian arts sector. Decision making on funding based on the assessment of artistic merit by a panel of peers is a core principle of the Council. Council convenes assessment panels across a range of arts practices, with membership changing between assessment meetings rather than remaining static. The Council has a large and diverse pool of more than 670 peers to select from when forming assessment panels. This pool is approved by the Board following self-nomination by peers and a rigorous review process by the Nominations and Appointments Committee. Peers are chosen for their experience and knowledge, which enables them to make an informed assessment about the work in a particular art form or area within the arts sector. Close monitoring ensures there is an appropriate mix across a number of diversity characteristics. The Australia Council has a robust governance structure for the peer assessment process. Peers must declare all actual, potential or perceived conflicts of interest in accordance with the Council’s Conflicts of Interest Policy (which is included in the Peer Assessment Handbook). Governance matters are also discussed during a peer’s induction to the role and are reiterated during assessment meetings. Recommendations made by peers are considered by certain senior officers of the Council who are authorised to make grants and pursue particular purposes already approved by the Board or its committees. The senior officers consider the ranking reports by panels of peer experts when allocating the grant budget. There were 344 opportunities for peers to participate in assessment meetings during 2015-16, involving 294 individual peer assessors.


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AB O R I G I NAL AN D TO R R E S STR AIT I S L AN D ER ARTS S T R AT E G Y PA N E L The Aboriginal and Torres Strait Islander Arts Strategy (ATSIA) Panel assists Indigenous people to claim, control and enhance their cultural inheritance by supporting the development and promotion of traditional and contemporary arts practices. The panel encourages new forms of cultural expression by Aboriginal and Torres Strait Islander people who practise any art form and live in urban, regional and remote areas. Membership of ATSIA Strategy Panel as at 30 June 2016* Mr Wesley Enoch

NSW

Chair

Mr Tristan Schultz

QLD

Member

TAS

Member

NT

Member

ACT

Member

Ms Jeannette James Ms Franchesca Cubillo Mr Peter White

*Ms Terri Janke was a member of the panel between 1 July 2015 and 21 March 2016.

Board member Ms Lee-Ann Buckskin (SA) held observer status on the panel during 2015-16.

M A J O R P E R F O R M I N G A R T S PA N E L The Major Performing Arts (MPA) Panel is authorised by the Board to maintain the National Framework for Governments’ Support of the MPA sector, to monitor the performance of the MPA companies and provide strategic advice on critical sector issues. Membership of MPA Strategy Panel as at 30 June 2016 Mr Adrian Collette AM

VIC

Chair*

Ms Helen Cook

WA

Member

Mr Chris Freeman AM

Qld

Member

Ms Kate Brennan

Vic

Member

Ms Rachel Healy

NSW

Member

Mr Derek Young AM

Vic

Member

Ms Larissa Behrendt

NSW

Member

SA

Member

Mr Greg Mackie OAM *Mr Julian Knights AO was the Chair of the MPA Panel until 16 April 2016.

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R E S E A R C H S T R AT E G Y PA N E L The Research Strategy Panel provides guidance to the Council’s research program in line with Council’s Strategic and Corporate Plans. The panel provides recommendations on applications of research across Council. The panel also monitors research outcomes of the Research and Knowledge Management Unit. Membership of Research Strategy Panel as at 30 June 2016 Prof John Daley

NSW

Chair

Prof David Throsby AO

NSW

Member

Ms Megan Brownlow

NSW

Member

VIC

Member

Dr Hilary Glow

Representatives from the Australian Bureau of Statistics and the Meeting of Cultural Ministers Statistics Working Group also sit on the panel.

A C C O U N TA B I L I T Y Service charter The Council encourages feedback on its performance. It reviews compliance with its service charter annually and identifies any areas for improvement. The Council’s service charter reflects its commitment to quality client service. It describes the service standards that clients and other stakeholders can expect. The Council service charter can be found at: australiacouncil.gov.au/about/service-charter


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F R E E D O M O F I N F O R M AT I O N The Council is an agency subject to the Freedom of Information Act 1982. As such, it is required to publish information for the public as part of the Information Publication Scheme. The Council website provides details of the information published in accordance with the Information Publication Scheme requirements. The information can be found at australiacouncil.gov.au/about/freedom-of-information Risk management The Council has a Risk Management Policy and an associated Risk Management Framework that provides a comprehensive approach to managing risk in a systematic and transparent manner. The Framework provides principles and guidelines to assist staff to identify, evaluate and effectively manage all significant risks. The Framework also requires that Council prepare a Risk Management Report for the Board’s review every six months, which is an essential component to ensuring the Framework’s principles are being implemented. The Council has a Fraud Control Policy, which provides guidance on what constitutes fraud, the Council’s responsibility for managing fraud and the process for addressing and reporting suspected incidents of fraud. These documents are reviewed and updated annually to ensure alignment with current legislation and best practice. Each year Council also produces a Risk Management Annual Plan and a Fraud Control Annual Plan, which detail specific activities to be performed under these areas, such as internal audit reviews. These plans are approved by the Audit and Finance Committee. The principles outlined in these documents are embedded in the diverse decision making processes across the organisation. Training on subjects such as good decision making, contracts and procurement, record management and compliance with the Public Governance Performance and Accountability Act 2013 were provided to staff during 2015-16. The current Risk Management Policy, Risk Management Framework and Fraud Control Policy and their respective annual plans are available on the Council’s intranet. Internal Audit During 2015-16 Council’s internal auditors O’Connor Marsden conducted five internal audits covering the areas of grants management, accounts payable, peer services, compliance with the PGPA Act and an Internal Audit follow-up review.

86

Grants Information on awarded grants is available online at: https://online.australiacouncil.gov.au/ords/GrantsList Project Control Group The Project Management Office and Project Control Group (PCG) continued to ensure a consistent organisation wide approach towards the management of projects which significantly contribute to the achievement of the Council’s strategic goals and corporate objectives. The PCG comprises members of the Executive team, and it approves, endorses, monitors and provides guidance for strategic project activity, which has an impact across the entire organisation. The PCG also shapes the following year’s budget and forward estimates in relation to project work. Workplace Forum staff representatives A Workplace Forum staff representative presents a staff report at each Board meeting which contains information on current staff issues. The representative may be invited to participate in discussion about the staff report at the discretion of the Chair. Attendance by Workplace Forum staff representatives at Board meetings during 2015-16 was either in person or via teleconference by invitation of the Chair. Mr Ian Whitney and Ms Meredith Okell commenced the 2015-16 year as Workplace Forum staff representatives, with Ms Okell leaving Council in August 2015 and Mr Whitney standing down in January 2016. Ms Bronwyn Papantonio commenced her role as a Workplace Forum staff representative in September 2015 following the nomination process as outlined in the Workplace Forum Charter. A further nomination process and subsequent election resulted in Ms Clara Edwards filling the further vacant position from March 2016. New Workplace Forum staff representatives participated in an initial induction to understand the nature of the role and the confidentiality required to perform it. The Workplace Forum staff representatives are subject to the Workplace Forum Charter in carrying out their roles.


87

EXTERNAL REVIEW Changes affecting the Council Other than the reduction to Council’s revenue from government, no significant external changes affected the Council in 2015–16. The Council undertook an internal restructure in 2015-16 in response to the reduced funding allocation and resultant operational requirements. Judicial decisions and reviews by outside bodies During 2015–16, there were no judicial decisions or decisions of administrative tribunals that have had, or may have, a significant impact on the Council’s operations. External Audit Under section 7 of the Auditor General Act 1997 the Auditor-General acts as the external auditor for the Commonwealth. The Australian National Audit Office (ANAO) supports the Auditor-General, whose primary client is the Australian Parliament. The ANAO did not conduct any performance audits of Council during 2015–16. There were no reports on the operations of the Council by the Auditor-General (other than the report on the financial statements) or by a parliamentary committee. Insurance The Council’s insurance policies for 2015–16 included cover for directors’ and officers’ liability. The premium paid for this insurance cover was $ 28,991. This covered a liability limit of $100 million. Significant events No significant events in the context of section 19 of the PGPA Act occurred during 2015–16. This section requires the Council to notify the responsible Minister of events such as proposals to form a company, partnership or trust, to acquire or dispose of a significant shareholding in a company or commence or cease business activities or to make other significant changes.

88

M A N AG E M E N T O F HUMAN RESOURCES I N D U S T R I A L R E L AT I O N S A N D W O R K P L A C E C O N S U LTAT I O N The Australian Government Industry Award (AGI Award) was arbitrated by the Fair Work Commission on 20 June 2016 with effect from 15 August 2016. The AGI Award replaces the Australia Council Award 2000 and provides for the minimum conditions of employment. As a consequence of the industry award being made, the application to modernise the enterprise level award is not necessary. Consultation was undertaken with the CPSU for the terms and conditions of the AGI Award which apply to the Australia Council. The Australia Council Enterprise Agreement reached its nominal expiry date on 15 November 2014 and continues to provide the current terms and conditions for employees until it is renewed. The Enterprise Agreement covers all employees, other than the Senior Management and Executive teams. Bargaining for a new Enterprise Agreement will progress in 2016. In addition to consultative obligations upheld under our Enterprise Agreement, our Workplace Forum provides for effective communication within the organisation. The forum’s objectives are to foster a healthy working environment and positive workplace culture; encourage active participation by all staff in the work of the organisation; and develop and promote positive workplace relations across all levels of the organisation. In 2015-16 the forum comprised two staff and two management representatives, being the Director Human Resources and the CEO.

P R O M O T I N G A H E A LT H Y A N D S A F E W O R K P L A C E In 2015–16 Council continued to ensure the workplace health, safety and welfare of its employees and contractors, with no incidents, investigations or lost time injuries. Workplace safety is monitored by the Workplace Health and Safety (WHS) Committee and two Health and Safety Representatives in collaboration with the Director Human Resources. The WHS Committee is chaired by a staff member with elected staff representatives from all work areas and two management representatives. The Committee meets bi-monthly with workplace inspections conducted prior to the meeting. WHS Committee meeting minutes are made available to all staff through electronic and physical means. WHS activities and reporting are undertaken through the Human Resources and Facilities and Building teams. There are systems in place for staff to readily report any hazards, injuries or incidents, including First Aid assistance. Identified hazards and risks have corrective action applied when reasonably practicable to do so, and are acted on in a timely manner. Training for staff is recognised as one of the key elements in achieving and maintaining a high standard of workplace safety.


89

S TA F F P R O F I L E Employees are appointed under section 43 of the Act with the majority of staff covered by the terms and conditions set out in the Enterprise Agreement. Members of the Council’s Executive and Senior Management teams are employed on individual employee agreements. In the second organisational restructure undertaken in 2015, Council delivered the $1 million reduction to staff costs required in the 2015-16 Budget. The restructure responded to our revised business needs, continued the theme of centralisation for efficiency and ensures we leverage the greatest impact from our resources to support the arts sector strategically and efficiently. As detailed in Figure 8, on 30 June 2016 there were 102.3 full-time equivalent (FTE) employees, a decrease from 113.9 in 2014-15. This compares to 131.4 FTE in 2013-14. The average staffing level (ASL) for the year was 108.1 for 2015-16 compared with the previous year’s 119.5. Going forward an ASL of 110.3 is budgeted for 2016-17 which includes the fulfilment of vacancies.

FIGURE 8

N U M B E R O F S TA F F ( F T E ) B Y D I V I S I O N AT 3 0 J U N E 2 0 1 6

DIVISION

2014-15 DIVISION

2015-16

Arts Strategy

30.4

Strategic Development and Advocacy

33.8

Grants

25.6

Grants and Engagement

28.2^

Arts Infrastructure

13.0

MPA and National Engagement

5.8^

Corporate Resources

25.9

Corporate Resources

26.0

Office of the CEO

19.0

Office of the CEO

8.5*

Total

113.9

102.3

* Communications Department realigned to Strategic Development and Advocacy division ^ Arts Practice Directors report across both divisions. For financial reporting purposes 5.2 FTE are included in Grants and Engagement division and 1.8 FTE in MPA and National Engagement.

The Council’s staff profile continues to reflect the diversity, flexibility and skills required to meet the changing needs of a dynamic arts sector. The representation of employees in targeted equal opportunity groups at 30 June 2016 is shown as a percentage of total employees in Figure 8. Representation of women at Council remained consistent at approximately 65% of staff, including 50% of our Executive and Board memberships.

90

FIGURE 9 70.9%

3.7%

R E P R E S E N TAT I O N O F E M P L O Y E E S I N EQ UA L E M P LOY M E N T O P P O RT U N I T Y G R O U P S A S AT 3 0 J U N E 2 0 1 6 67.5%

3.4%

4.6%

2013 - 14

65.4%

2.9%

5.1% 2014 - 15

5.8% 2015 - 16

11.9%

15.4%

Women

Aboriginal and Torres Strait Islander People

People with disability

Culturally and Linguistically Diverse

15.4%

D E V ELO P I N G O U R P EO P LE Council provided a number of secondments and promotional opportunities and higher duties arrangements over the year. Human Resources implemented key programs addressing organisational development requirements, alongside identified training and development needs of staff. Mandatory compliance training for all staff across the year included: procurement and contract management records management PGPA Act framework gifts and benefits

Privacy Act 1988 and Public Interest Disclosure Act 2013 elearning compliance modules for all new starters supported by user systems training

RECOG NI SING OU R PEOPLE In addition to Council’s formal annual performance review process and recognition of achievements at All Staff presentations, six staff award categories were presented to recipients on 10 December 2015. Five awards were nominated by management and confirmed via the Executive team including dual winners for one award, with a sixth award determined through staff nomination and confirmed by the Workplace Forum Staff Representatives.

A DV E RT I S I N G The Council uses advertising for a limited range of purposes: to recruit staff, publicise initiatives and grant program closing dates, to invite clients to public information sessions and to call for tenders. The total cost of staff recruitment advertising was $8,675 in 2015-16 compared to $21,859 in 2014-15. The cost of advertising for all other purposes was $4,681 in 2015-16 compared to $48,359 in 2014-15. A N N UA L R E P O RT 2 01 5 – 1 6 M A N A G E M E N T A N D A C C O U N TA B I L I T Y

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E C O L O G I C A L LY S U S TA I N A B L E D EV E LO P M E N T This information is provided in accordance with section 516A of the Environment Protection and Biodiversity Conservation Act 1999.

EN ERGY CO N SU M PTI O N KWH

2013 - 2014

707,828 2014 - 2015 737,242 2015 - 2016 615,756

PA P E R C O N S U M P T I O N 2013 - 2014

REAMS PER YEAR (A4 80 GSM PAPER)

1,525 2014 - 2015 1,879 2015 - 2016 1,259

R E C YC L E D PA P E R / C A R D B O A R D WEIGHT (KG)

2013 - 2014 1,470 2014 - 2015 12,786* 2015 - 2016 14,890* * This increased figure is due to the disposal of a significant volume of out of date publications 2014–15 and 2015-16.

92

O R G A N I S AT I O N A L STRUCTURE The CEO is responsible to the Board for the day-to-day administration of the Council. In conjunction with the Chair, the CEO liaises with the Minister concerning Government arts policies and the Council’s budget, statutory powers and functions. The CEO also liaises with the Department of Communications and the Arts concerning the Australian Government’s arts policies.

The Office of the CEO manages government reporting and secretariat support for the Board and Strategy Panels. Aboriginal and Torres Strait Islander Arts sits within the office and leads cultural strategies that increase the appreciation, understanding and experience of Indigenous arts. Grants and Engagement delivers applicant focussed grant programs supported by high quality artist services. This includes the development of a diverse pool of expert peers, and managing their involvement in the grants assessment process for individual artists, groups and arts organisations. Specialist arts practice knowledge enables strategic advice and representation to the sector to enhance artistic vibrancy and sustainability. Major Performing Arts and National Engagement promotes sustainability and excellence through management and support for the Major Performing Arts Framework. Specialist knowledge enables strategic advice and representation to the sector within the national context. The division manages key relationships with state and territory funding bodies. It also maintains an investment strategy and financial oversight of Major Performing Arts companies, providing analytical and evidence-based outcomes and trends for the benefit of the Australian arts ecology. Strategic Development and Advocacy leads the Council’s advocacy and communications for the arts, and government engagement. The Division also builds sustainability in the arts ecology, undertakes strategic research, analysis and evaluation, and invests in building the capacity of arts organisations and individuals. Through strategic work at both the national and international level the division leverages specialist knowledge to deliver strategic projects, partnerships and activities that support artistic development, and builds audiences and markets for Australian arts. Corporate Resources delivers specialist services in finance, financial business analysis, human resources management, workplace health and safety, legal and governance, project controls and risk management, IT infrastructure, business information services including operations help desk facilities, records management, and facilities management.


93

EXECUTIVE TEAM AT 3 0 J U N E 2 0 1 6 TO NY G RYB OWS KI Chief Executive Officer Mr Grybowski’s 25 year career in the arts has included leadership roles with a broad range of arts organisations and arts policy work in state and federal government bodies. Mr Grybowski has previously held management roles at the Australian Youth Orchestra, the Sydney Symphony Orchestra and Musica Viva Australia. With over a decade working in government bodies Mr Grybowski’s experience includes arts policy development and program delivery in the Victorian Government and five years as Executive Director Arts Organisations with the Australia Council, before taking on the role of Chief Executive in May 2013. TI M B L AC K W ELL Executive Director, Corporate Resources Mr Blackwell has extensive experience in finance and business administration. Mr Blackwell has previously held the roles of Chief Financial Officer at Macquarie Telecom; Managing Director, Asia Pacific for Brinks Inc; and 10 years of experience in professional practice at Price Waterhouse. Mr Blackwell was appointed Executive Director in September 2012. LY D I A M I L L E R Executive Director, Aboriginal and Torres Strait Islander Arts Ms Miller has extensive experience in the arts, health, justice and community sectors, with over 20 years experience as a performer, artistic director, producer, administrator and advocate. Ms Miller has previously held the roles of Executive Officer at the Aboriginal Justice Advisory Council; and many Council, Board and Committee appointments. Ms Miller is a Kuku Yalanji woman. Ms Miller was appointed Executive Director in July 2005.

94

LIS SA T WOMEY Executive Director, Major Performing Arts and National Engagement Ms Twomey has over 20 years of experience in arts management, as an artistic director, producer and administrator, and has a passion for assisting artists to realise their personal artistic goals and ambitions. Ms Twomey has previously held the roles of Artistic Director of the New Zealand International Arts Festival; Artistic Director of Wellington Jazz Festival; Associate Director of Sydney Festival; and internationally with Harrison Parrott International Artists’ Management, UK. Ms Twomey was appointed Executive Director in September 2013. F R A N K PA N U C C I Executive Director, Grants and Engagement Mr Panucci has over 20 years of experience in community, cultural development and human rights. Mr Panucci has previously held the roles of Director Community Partnerships at Australia Council; Chief Executive Officer at Community Cultural Development NSW; and General Manager at Carnivale Festival. Mr Panucci was appointed Acting Executive Director in May 2013, and was confirmed in the position in December 2013. W E N DY W E R E Executive Director, Strategic Development and Advocacy Dr Were has extensive and wide ranging experience in arts management, curation and business development. Dr Were has previously held the roles of Artistic Director and Chief Executive at Sydney Writers’ Festival; Program Producer at the Perth International Arts Festival; Chief Executive Officer at West Australian Music; and Business Advisor with the Creative Industries Innovation Centre. Dr Were also holds a PhD in Literature, awarded with Distinction. Dr Were was appointed Executive Director in January 2014.


95

Robot Opera 2015. Image credit: Heidrun Lohr

96

S TAT E M E N T S

FINANCIAL

A N N UA L R E P O RT 2 01 5 – 1 6

97

98

A N N UA L R E P O RT 2 01 5 – 1 6 F I N A N C I A L S TAT E M E N T S

99

S TAT E M E N T B Y T H E B O A R D , C H I E F E X E C U T I V E AND CHIEF FINANCIAL OFFICER In our opinion, the attached financial statements for the year ended 30 June 2016 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act. In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australia Council 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 Members.

Rupert Myer AO Chair

Antony Grybowski Chief Executive Officer

29 August 2016

29 August 2016

Timothy Blackwell Executive Director Corporate Resources (CFO) 29 August 2016

100

S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E for the period ended 30 June 2016

NOTES

N ET COST O F SERVICES Expenses Employee Benefits Suppliers Grants Depreciation and amortisation Finance Costs Losses from asset disposal Other Expenses

1.1A 1.1B 1.1C 2.2A 1.1D 1.1E 1.1F

Total expenses

2016

2015

ORIGINAL BUDGET

$’000

$’000

$’000

(13,177) (9,811) (173,750) (795) (24) (25) (51)

(13,502) (10,834) (191,503) (629) (29) (45) (35)

(12,828) (10,239) (163,450) (830) -

(197,633)

(216,577)

(187,347)

2,400 180 10,597 13,177 13,177 (184,456) 184,526 70

3,029 53 3,328 6,410 6,410 (210,167) 211,764 1,597

1,300 71 1,450 2,821 2,821 (184,526) 184,526 -

-

(66) (66)

-

70

1,531

-

Own-Source Income Own-Source Revenue Interest Rental Income Other Revenue Total own-source revenue Total own-source income Net cost of services Revenue from Government Surplus on continuing operations OTH ER CO M PR EH EN S IVE INCOME Items not subject to subsequent reclassification to net cost of services Changes in asset revaluation surplus Total other comprehensive income/(loss) Total comprehensive income

1.2A 1.2B

1.2C 1.2D

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


101

BUDGET VARIANCES COMMENTARY Other Revenue is above budget by $9,147k due to (a) receipt of the first $8,000k instalment of a Commonwealth grant agreement, totalling $32,000k over four years, which was not in the budget; and (b) receipts for fundraising in relation to the Venice Biennale Exhibition and Pavilion being $716k more than budget. Interest Income is higher than budget by $1,100k due to the timing of income and expenditure resulting in cash balances higher than expected. Grants Expenditure is above budget by $10,300k and was enabled by the additional funds from the Commonwealth grant agreement and interest income, as noted above. Employee Benefits are higher than budget by $349k due to termination payments of $586k, incurred as a result of staffing reductions required by a 2015-16 Budget measure.

102

S TAT E M E N T O F F I N A N C I A L P O S I T I O N as at 30 June 2016 ASSETS

NOTES

2016

2015

ORIGINAL BUDGET

$’000

$’000

$’000

Financial assets Cash and Cash Equivalents

2.1A

17,933

21,376

18,046

Trade and Other Receivables

2.1B

5,297

4,180

3,761

23,230

25,556

21,807

Total financial assets Non-financial assets Land and buildings

2.2A

8,472

8,646

8,890

Property, plant and equipment

2.2A

225

320

320

Other

2.2A

377

770

1,056

Computer Software

2.2A

1,237

1,453

1,400

Prepayments

2.2B

456

471

476

10,766

11,660

12,142

384

-

-

34,380

37,216

33,949

2.3A

(1,569)

(2,945)

(1,633)

2.3B

(3,691)

(4,509)

(1,897)

2.3C

(98)

(24)

-

2.3D

(319)

(811)

(996)

(5,677)

(8,289)

(4,526)

Total non-financial assets Assets held for sale Total assets LIABILITIES Payables Suppliers Grants Deferred Revenue Other Payables Total payables Provisions Employee Provisions Other Provisions Total provisions Total liabilities Net assets

4.1A

(1,949)

(2,091)

(1,995)

2.4A

(3,437)

(3,589)

(4,226)

(5,386)

(5,680)

(6,221)

(11,063)

(13,969)

(10,747)

23,317

23,247

23,202

8,502

7,886

8,320

14,815

15,361

14,882

23,317

23,247

23,202

EQUIT Y Reserves Retained surplus Total equity The above statement should be read in conjunction with the accompanying notes.


103

B U D G E T VA R I A N C E S C O M M E N TA R Y Non-financial assets are generally below budget mainly due to the office reorganisation project being deferred to 2016-17 and lower than anticipated spend on computer software development. Further other non-financial assets have been reduced by the reclassification of the violoncello as an asset held for sale. Grants Payables are above budget by $1,794k due to the late timing of some grant programs for 2015-16 and some minor delays to the disbursement of payments to some arts organisations.

104

S TAT E M E N T O F C H A N G E S I N E Q U I T Y for the period ended 30 June 2016

NOTES

R E TAI N ED E A R N I N G S Opening balance Balance carried forward from previous period Adjusted opening balance Comprehensive income Surplus/(Deficit) for the period Total comprehensive income Transfer (from)/to Reserves Transfer (from)/to Asher Estate Bequest Reserve Transfer (from)/to Venice Biennale Reserve Transfer (from)/to Venice Pavilion Reserve Sub-total transfers (from)/to Reserves Closing balance as at 30 June

2016

2015

ORIGINAL BUDGET

$’000

$’000

$’000

15,361

14,882

14,882

15,361

14,882

14,882

70

1,597

-

70

1,597

-

-

27

-

(556)

-

-

(60)

(1,145)

-

(616)

(1,118)

-

14,815

15,361

14,882

1,625

1,691

1,691

1,625

1,691

1,691

-

(66)

-

-

(66)

-

1,625

1,625

1,691

6,261

5,143

6,629

6,261

5,143

6,629

A S S E T R E VA L U AT I O N R E S E R V E Opening balance Balance carried forward from previous period Adjusted opening balance Comprehensive income Other comprehensive income Total comprehensive income Closing balance as at 30 June OTH ER R E S ERVE S Opening balance Balance carried forward from previous period Adjusted opening balance


105

OTH ER R E S ERVE S (CONTINUED)

NOTES

Transfer (from)/to Reserves Transfer (from)/to Asher Estate Bequest Reserve Transfer (from)/to Venice Biennale Reserve Transfer (from)/to Venice Pavilion Reserve Sub-total transfers (from)/to Reserves Closing balance as at 30 June

2016

2015

ORIGINAL BUDGET

$’000

$’000

$’000

-

(27)

-

556

-

-

60

1,145

-

616

1,118

-

6,877

6,261

6,629

23,247

21,716

23,202

23,247

21,716

23,202

T O TA L E Q U I T Y Opening balance Balance carried forward from previous period Adjusted opening balance

Comprehensive income 70 1,597 Surplus/(Deficit) for the period Other comprehensive income (66) Total comprehensive income 70 1,531 Total transactions with owners Closing balance as at 30 June 23,317 23,247 23,202 The above statement should be read in conjunction with the accompanying notes. B U D G E T VA R I A N C E S C O M M E N TA R Y Retained Earnings and Total Equity balances at 30 June 2016 are in line with budget. The transfer to Venice Biennale Reserve of $556k relates to donations received in advance of the Venice Biennale exhibition in 2017. The Venice Biennale Reserve represents philanthropic donations received and taken to income in the 2015 financial year but will be used to fund expenditure in the following year for the 2017 Venice Biennale exhibition. The balance at 30 June 2016 was $556k (2015: $nil). The Venice Pavilion Reserve represents philanthropic donations received and taken to income in the financial years up to and including 2016 and which were specifically used to fund the Venice Pavilion capital rebuild project. The balance at 30 June 2016 was $6,289k (2015: $6,229k).

106

C A S H F L O W S TAT E M E N T for the period ended 30 June 2016 NOTES

O P E R AT I N G A C T I V I T I E S Cash received Appropriations Receipts from Government Interest Net GST received Other

2016

2015

ORIGINAL BUDGET

$’000

$’000

$’000

211,764

184,526

184,526

Total cash received Cash used Employees Suppliers Grants and Programs

8,650

645

650

2,406

3,072

1,300

15,968

21,689

-

2,335

3,072

871

213,885

240,242

187,347

(13,768)

(13,329)

(12,623)

(12,189)

(11,238)

(10,239)

(191,015)

(206,632)

(163,655)

(216,972)

(231,199)

(186,517)

(3,087)

9,043

830

I NVE STI N G AC TIVITI E S Cash used Purchase of property, plant and equipment

(356)

(6,405)

(967)

Total cash used

(356)

(6,405)

(967)

Net cash from/(used by) investing activities

(356)

(6,405)

(967)

(3,443)

2,638

(137)

21,376

18,738

18,183

17,933

21,376

18,046

Total cash used Net cash from/(used by) operating activities

3.1A

Net increase/(decrease) in cash held Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period

2.1A

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


107

B U D G E T VA R I A N C E S C O M M E N TA R Y The Cash Flow Statement presented in the Portfolio Budget Statements was GST exclusive and those presented for 2016 and 2015 are GST inclusive. The major variances are (a) Receipts from Government ($8,000k) due to receipt of Commonwealth grant not budgeted for, plus (b) additional Interest Income and Other Income as explained in variance commentary under the Income Statement. These additional receipts were invested in higher Grants payments, resulting in a closing cash balance in line with budget.

OV E R V I E W OBJECTIVES OF THE COUNCIL The Australia Council (the Council) is an Australian Government controlled entity. It is a not-for-profit entity. The purpose of the Council is to champion and invest in Australian arts. The Council is structured to meet one outcome: Supporting Australian artists and art organisations to create and present excellent art that is accessed by audiences across Australia and abroad. . The continued existence of the Council, in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Council’s administration and programs. T H E B A S I S O F P R E P A R AT I O N O F T H E F I N A N C I A L S TAT E M E N T S The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013. The financial statements have been prepared in accordance with: a) Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) for reporting periods ending on or after 1 July 2015; and b) A ustralian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period. The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

108

N E W A C C O U N T I N G S TA N D A R D S Adoption of New Australian Accounting Standard Requirements No accounting standard has been adopted earlier than the application date as stated in the standard. No new accounting standards and/or interpretations that were issued prior to the signoff date and are applicable to the current reporting period have a material effect on the entity’s financial statements. New standards, amendments to standards and interpretations that were issued prior to the sign-off date and are applicable to future reporting periods are not expected to have a future material impact on the Council’s financial statements. TA X AT I O N The entity is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). EVENTS AFTER THE REPORTING PERIOD The Council is not aware of any significant events that have occurred since the balance date which warrant disclosure in these financial statements.


109

FINANCIAL PERFORMANCE This section analyses the financial performance of Australia Council for the year ended 2016.

1.1 E XPEN S E S 1 .1 A : E M P LOY E E B E N E F I T S

Core Wages and salaries Superannuation Defined contribution plans Defined benefit plans Other private schemes Leave and other entitlements Separation and redundancies

2016

2015

$’000

$’000

(10,287)

(10,514)

(310)

(280)

(269)

(202)

(747)

(799)

88

(82)

(586)

(74)

(12,111)

(11,951)

(991)

(1,355)

(68)

(84)

-

(11)

(61)

(87)

54

(14)

Total employee benefits - Programs

(1,066)

(1,551)

Total employee benefits

(13,177)

(13,502)

Total employee benefits - Core Programs Wages and salaries Superannuation Defined contribution plans Defined benefit plans Other private schemes Leave and other entitlements

ACCO U NTI N G P O LI CY Accounting policies for employee related expenses is contained in the People and relationships section.

110

1.1 B : SU PPLI ERS

Core Goods and services supplied or rendered Total goods and services supplied or rendered - core Other suppliers - Core Operating lease rentals in connection with External Parties Minimum lease payments Provision for surplus lease space Workers compensation expenses Total other suppliers Programs Goods and services supplied or rendered Total goods and services supplied or rendered - Programs Total suppliers

2016

2015

$’000

$’000

( 4,727)

( 5,729)

(4,727)

(5,729)

(2,225)

(2,231)

(186)

393

(65)

(129)

(2,476)

(1,967)

( 2,608)

( 3,138)

(2,608)

(3,138)

(9,811)

(10,834)

LEASING COMMITMENTS Operating lease commitments payable include commitments for IT leases and related services, overseas studios and the office lease at 372 Elizabeth Street, Surry Hills, NSW. Property lease payments are subject to an annual increase in accordance with contractual terms. Commitments are shown GST inclusive where relevant. Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within 1 year Between 1 to 5 years More than 5 years Total operating lease commitments

3,965

3,710

7,704

9,967

83

74

11,752

13,751

GST Recoverable on commitments for the non-cancellable operating leases are as follows: Within 1 year

348

313

Between 1 to 5 years

689

896

1,037

1,209

Total GST recoverable on operating lease commitments


111

ACCO U NTI N G P O LI CY Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

1.1C: G R ANTS

2016

2015

$’000

$’000

Council Grants and Initiatives

(28,039)

(33,725)

Government Initiatives

(15,438)

(28,622)

Key Organisations

(22,562)

(23,120)

Major Performing Arts

(107,711)

(106,036)

(173,750)

(191,503)

119,020

117,329

145,795

24,559

264,815

141,888

Total grants Grants commitments comprise the following major categories: Major Performing Arts companies Within 1 year Between 1 to 5 years Total Major Performing Arts companies

The quantum of commitments for the Major Performing Arts companies will be determined by the point in time at which the balance date falls within the three year funding agreement cycle for these companies. Small to medium art organisations Within 1 year Between 1 to 5 years Total small to medium art organisations

21,683

24,155

63,805

-

85,489

24,155

Commitments in 2016 relate to the Four Year Funding for Organisations program. 2015 commitments related to the Key Organisation program which completed in 2015-16.

112

1.1C: G R ANTS (CONTINUED)

2016

2015

$’000

$’000

5,170

-

10,925

-

16,094

-

Visual Arts and Craft Strategy (VACS) Within 1 year Between 1 to 5 years Total VACS

New Four Year Funding agreements with VACS organisations were entered into in 2015-16. Other Grants Within 1 year Between 1 to 5 years Total other grants Total grant commitments Within 1 year Between 1 to 5 years Total grant commitments GST Recoverable on commitments for grants payable: Within 1 year Between 1 to 5 years Total GST recoverable on grants payable commitments

5,460

9,349

949

3,858

6,410

13,207

151,333

150,834

221,475

28,417

372,808

179,250

13,696

13,653

20,120

2,568

33,816

16,221

ACCO U NTI N G P O LI CY Grants and program expense and payables include grants to artists and arts organisations, funding to major performing arts and small-to-medium organisations, art sector projects, such as the Venice Biennale, that are managed by the Council and costs associated with implementing government initiatives. Grants and program liabilities are recognised at the amounts approved by the Council for disbursement as contractually payable.


113

1.1 D : FI NAN CE COSTS

2016

2015

$’000

$’000

Unwinding of discount

(24)

(29)

Total finance costs

(24)

(29)

(1)

(45)

(24)

-

(25)

(45)

Realised foreign exchange (losses) Unrealised foreign exchange (losses)/gains

(38)

(239)

(13)

204

Total other expenses

(51)

(35)

ACCO U N TI N G P O LI CY All borrowing costs are expensed as incurred. 1 .1 E : W R I T E - D OW N A N D I M PA I R M E N T OF ASSETS

Loss on disposal of Library Impairment Computer Software Total Write-down and impairment of assets 1.1 F: OTH ER EXPEN S E S

114

1. 2 OWN -SOU RCE REVEN U E AN D GAIN S OWN -SOU RCE REVEN U E 1 . 2 A : R E N TA L I N C O M E

Operating lease Sublease income Total rental income

2016

2015

$’000

$’000

180

53

180

53

Subleasing rental income commitments The Council in its capacity as lessor has subleasing arrangements in place for office space at 372 Elizabeth Street, Surry Hills, NSW. The lease payments receivable are subject to annual increase in accordance with contractual terms. Lease Commitments shown are GST inclusive. Commitments for sublease rental income receivables: Within 1 year Between 1 to 5 years Total sublease rental income commitments GST Payable on commitments for sublease rental income: Within 1 year Between 1 to 5 years Total GST Payable sublease rental income commitments

394

39

882

11

1,276

50

36

4

80

1

116

5


115

1. 2 B : OTH ER R EVEN U E

Returned grants Income from fundraising: Venice Biennale Venice Pavilion Attorney General's Department: Get Reading! Sounds Australia Department of Communications and the Arts: Commonwealth Grant Agreement Reallocation of funding to Australia Council Department of Foreign Affairs and Trade: Visiting International Publishers Electronic Music Conference Arts NSW: Australian Performing Arts Market (APAM) Arts QLD: APAM MAPS project Arts SA: APAM MAPS project Arts VIC: APAM Contributions from other non-government entities: Biennale Review Recording initiative Venice Biennale sponsorship Venice Biennale PD programme APAM Other Total other revenue Commitments for Commonwealth Grant receivables are as follows: Within 1 year Between 1 to 5 years Total commitments for Commonwealth Grant receivables

116

2016

2015

$’000

$’000

673

500

856

513

60

1,144

25

32

600

645

8,000

-

29

21

-

20

5

-

10

-

-

50

6

-

-

50

6

-

-

20

-

75

25

75

8

25

24

-

270

158

10,597

3,328

8,000

-

16,000

-

24,000

-

ACCO U NTI N G P O LI CY Revenue For reciprocal grants (i.e. equal value is given back by the Council to the provider), such as 'Sounds Australia', the Council is deemed to have assumed control when the Council has satisfied its performance obligations under the terms of the grant. For non-reciprocal grants, the Council is deemed to have assumed control when the grant is receivable or received. 1 . 2 C : R E V EN U E FR O M G OV ER N M ENT

Appropriations Departmental appropriations Total revenue from Government

2016

2015

$’000

$’000

184,526

211,764

184,526

211,764

ACCO U NTI N G P O LI CY Revenue from Government Funding received or receivable from the Council's portfolio department (appropriated to the Department for payment to the Council) is recognised as Revenue from Government by the corporate Commonwealth entity unless the funding is in the nature of an equity injection or a loan. 1 . 2 D : S U R P L U S / ( D E F I C I T ) O N C O N T I N U I N G O P E R AT I O N S

The surplus attributable to the Australian Government includes $562,000 (2015: nil), which relates to philanthropic donations in respect of Venice Biennale Exhibition to be held in 2017 and $60,000 (2015: $1,144,000) related to philanthropic donations in respect of Venice Pavilion capital rebuild project.


117

FINANCIAL POSITION This section analyses the Australia Council's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

2 .1 FI NAN CIAL A S S ETS 2 . 1 A : C A S H A N D C A S H E Q U I VA L E N T S

Cash on hand or on deposit Total cash and cash equivalents

2016

2015

$’000

$’000

17,933 17,933

21,376 21,376

ACCO U NTI N G P O LI CY Cash and cash equivalents includes cash on hand and at call deposits in bank accounts that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal amount. 2 . 1 B : T R A D E A N D O T H E R R E C E I VA B L E S

Goods and services receivables External parties Total goods and services receivables

18 18

18 18

Other receivables GST receivables Interest Other Total other receivables Total trade and other receivables (net)

5,246 33 5,279 5,297

4,118 39 5 4,162 4,180

Trade and other receivables (net) expected to be recovered No more than 12 months Total trade and other receivables (net)

5,297 5,297

4,180 4,180

5,292

4,177

5 5,297

2 1 4,180

Trade and other receivables (gross) aged as follows Not overdue Overdue by 61 to 90 days More than 90 days Total trade and other receivables (gross)

Credit terms for goods and services were within 30 days (2015: 30 days).

118

ACCO U N TI N G P O LI CY Receivables Trade receivables and other receivables that have fixed or determinable payments and that are not quoted in an active market are classified as 'Receivables'. Receivables, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance. Collectability of debts is reviewed as at end of reporting period. Allowances are made when collectability of the debt is no longer probable. Impairment of financial assets Financial assets are assessed for impairment at the end of each reporting period.


119

2.2 NON-FINANCIAL ASSETS 2 . 2 A : R E C O N C I L I AT I O N O F T H E O P E N I N G A N D C L O S I N G B A L A N C E S O F P R O P E R T Y, P L A N T A N D E Q U I P M E N T A N D I N TA N G I B L E S

Reconciliation of the opening and closing balances of property, plant and equipment for 2016

PLANT AND COMPUTER LAND BUILDINGS EQUIPMENT SOFTWARE OTHER

TOTAL

$’000

$’000

$’000

$’000

$’000

$’000

149

12,243

929

5,077

778

19,176

-

(3,746)

(609)

(3,624)

(8)

(7,988)

149

8,497

320

1,453

770

11,188

Purchase

-

21

66

239

-

326

Reclassification as Assets held for sale

-

-

-

-

(384)

(384)

Depreciation and amortisation

-

(195)

(160)

(431)

(9)

(795)

As at 1 July 2015 Gross book value Accumulated depreciation, amortisation and impairment Total as at 1 July 2015 Additions

Disposals

-

Cost

-

-

(158)

(114)

-

(272)

Accumulated depreciation and amortisation

-

-

157

90

-

247

149

8,323

225

1,237

377

10,310

149

12,264

837

5,202

382

18,834

-

(3,941)

(612)

(3,965)

(5)

(8,524)

149

8,323

225

1,237

377

10,310

Total as at 30 June 2016 Total as at 30 June 2016 represented by Gross book value Accumulated depreciation, amortisation and impairment Total as at 30 June 2016

120

Plant and Equipment includes computer equipment and office furniture and fittings. Other Assets include Musical Instruments and Works of Art. No indicators of impairment were found for property, plant and equipment and intangibles. The violoncello included under Other Assets is expected to be sold within the next 12 months. This has been reclassified as Assets held for sale. Revaluations of non-financial assets All non-financial assets were assessed for revaluation in accordance with the revaluation policy. Information was obtained on the movement in market and other underlying drivers of value from independent valuers. On that basis it was assessed that a fair value adjustment is not required.


121

Reconciliation of the opening and closing balances of property, plant and equipment for 2015

PLANT AND COMPUTER LAND BUILDINGS EQUIPMENT SOFTWARE OTHER

TOTAL

$’000

$’000

$’000

$’000

$’000

$’000

149

7,222

924

3,996

935

13,226

-

(3,718)

(536)

(3,214)

149

3,504

388

782

917

5,740

-

5,015

92

1,081

-

6,188

-

23

-

-

(89)

(66)

-

(45)

(159)

(410)

(14)

(629)

(20)

(37)

As at 1 July 2014 Gross book value Accumulated depreciation, amortisation and impairment Total as at 1 July 2014 Additions Purchase Revaluations and impairments recognised in other comprehensive income Depreciation and amortisation Other movements (restatement on revaluations) Cost Accumulated depreciation and amortisation Disposals Cost Accumulated depreciation and amortisation Total as at 30 June 2015

(17)

(18) (7,486)

-

17

-

-

20

37

-

-

(87)

-

(48)

(135)

-

-

86

-

4

90

149

8,497

320

1,453

770

11,188

149

12,243

929

5,077

778

19,176

-

(3,746)

(609)

(3,624)

(8)

(7,988)

149

8,497

320

1,453

770

11,188

Total as at 30 June 2015 represented by Gross book value Accumulated depreciation, amortisation and impairment Total as at 30 June 2015

122

ACCO U N TI N G P O LI CY Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition. Asset Recognition Threshold Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the entity where there exists an obligation to its original position. These costs are included in the value of the Council’s leasehold improvements with a corresponding provision for the ‘make good’ recognised. Revaluations Following initial recognition at cost, property, plant and equipment are carried at latest revaluation less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.


123

Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the entity using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives: 2016

2015

Buildings on freehold land

40-50 years

40-50 years

Buildings on leasehold land

50-75 years

50-75 years

Leasehold improvements

Lease terms

Lease terms

3 to 50 years

3 to 50 years

15-100 years

15-100 years

50-250 years

50-250 years

Plant and equipment Other - musical instruments Other - works of art Impairment

All assets were assessed for impairment at 30 June 2016. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost. Derecognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Computer Software The Council's computer software comprise internally developed software for internal use as well as some purchased software. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Council's internally developed softwares are 7 years (2015: 7 years) and purchased softwares are 3 years (2015: 3 years). All software assets were assessed for indications of impairment as at 30 June 2016.

124

2 . 2 B : OTH ER N O N - FI NAN CIAL AS S ETS

Prepayments Total other non-financial assets

2016

2015

$’000

$’000

456

471

456

471

456

460

-

11

456

471

Other non-financial assets expected to be recovered No more than 12 months More than 12 months Total other non-financial assets

No indicators of impairment were found for other non-financial assets.

2 . 3 PAYA B L E S 2.3A: SUPPLIERS

Trade creditors and accruals Operating lease rentals Total suppliers Suppliers expected to be settled No more than 12 months More than 12 months Total suppliers

(451)

(1,684)

(1,118)

(1,261)

(1,569)

(2,945)

(687)

(1,826)

(882)

(1,119)

(1,569)

(2,945)

Settlement was usually made within 30 days. Payments to suppliers include GST Payable. Suppliers expected to be settled under 12 months includes $236K (2015: $142K) for operating lease rentals. Suppliers expected to be settled in more than 12 months comprise entirely of operating lease rentals.


125

2.3B: GRANTS

Other Total grants Grants expected to be settled No more than 12 months Total grants

2016

2015

$’000

$’000

(3,691)

(4,509)

(3,691)

(4,509)

(3,691)

(4,509)

(3,691)

(4,509)

Settlement was usually made according to the terms and conditions of each grant. This was usually within 30 days of performance or eligibility. 2.3C: DEFERRED REVENUE

Get Reading! Government Initiative Sounds Australia Government Initiative

-

(24)

(50)

-

Tri Nations Exchange program

(20)

-

Rental Income

(28)

-

Total Deferred Revenue

(98)

(24)

(178)

(628)

(141)

(183)

(319)

(811)

No more than 12 months

(319)

(811)

Total other payables

(319)

(811)

2 . 3 D : O T H E R P AYA B L E S

Salaries and wages Other Total other payables Other payables to be settled

126

2 . 4 OT H E R P R OV I S I O N S 2 . 4 A : O T H E R P R O V I S I O N S PROVISION PROVISION FOR FOR SURPLUS RESTORATION LEASE SPACE

As at 1 July 2015 Additional provisions made Amounts used Unwinding of discount or change in discount rate Total as at 30 June 2016

PROVISION FOR ORCHESTRA VICTORIA

TOTAL

$’000

$’000

$’000

$’000

(869)

(1,559)

(1,161)

(3,589)

-

(185)

-

(185)

-

-

361

361

(24)

-

-

(24)

(893)

(1,744)

(800)

(3,437)

2016

2015

$’000

$’000

-

-

(893)

(869)

(893)

(869)

(1,229)

(1,103)

(515)

(456)

(1,744)

(1,559)

(211)

(361)

(589)

(800)

(800)

(1,161)

Provision for restoration expected to be settled No more than 12 months More than 12 months Total provision for restoration Provision for surplus lease space expected to be settled No more than 12 months More than 12 months Total provision for surplus lease Provision for Orchestra Victoria expected to be settled No more than 12 months More than 12 months Total provision for Orchestra Victoria


127

A C C O U N T I N G J U D G E M E N T S A N D E S T I M AT E S Provision for Restoration The Council currently has one (2015: [one]) agreement for the leasing of premises at 372 Elizabeth Sreet, Surry Hills, NSW, which has provisions requiring the Council to restore the premises to their original condition at the conclusion of the lease. The Council has made a provision to reflect the present value of this obligation. Provision for Surplus Lease Space A provision for surplus lease space at 372 Elizabeth St, Surry Hills, NSW, was created as at 30 June 2014, as the contracted space is considered to be in excess of the Council's ongoing operating requirements. Consequently, the Council was deemed to have a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract. The unavoidable costs of meeting the lease obligations have been offset by estimated income from subleasing surplus space. The provision as at 30 June 2015 was based on the intention to vacate and sublease two levels since then the decision has been made to sublease three levels instead of two. As a result the initial provision has been increased. One level has already been subleased and two levels are expected to be subleased during the 2016-17 financial year. Orchestra Victoria Transition Support In the financial year 2014, Council agreed to provide support to Orchestra Victoria, in relation to Orchestra Victoria's transition in ownership to The Australian Ballet. As at 30 June 2014 the Council committed to make available $1.434 million for transition costs and support for loss of proficiency payments required under the agreement which Orchestra Victoria has with its employees. The Council's obligations in this regard have been recognised and measured as a provision. The Council's obligation with regard to transition were fulfilled in the year 2014-15. The remaining provision reflects the obligations in regard to loss of proficiency payments, which are required to be maintained as per agreement until 1 July 2018 to meet any obligations in this regard. Payments of $361,000 were made towards loss of proficiency in 2015-16.

128

3 . 1 C A S H F L O W R E C O N C I L I AT I O N 3 . 1 A : C A S H F L O W R E C O N C I L I AT I O N

2016

2015

$’000

$’000

Reconciliation of cash and cash equivalents as per statement of financial position and cash flow statement Cash and cash equivalents as per Cash flow statement Statement of financial position Discrepancy

17,933

21,376

17,933

21,376

-

-

Reconciliation of net cost of services to net cash from/(used by) operating activities Net(cost of)/contribution by services

(184,456)

(210,167)

184,526

211,764

Depreciation/amortisation

795

629

Loss on disposal of assets

25

45

Other non-cash items

24

29

Revenue from Government Adjustments for non-cash items

Movement in assets and liabilities

Assets

(Increase)/Decrease in net receivables

(1,086)

3,545

15

4

74

(55)

(142)

96

(1,376)

1,312

Increase/(Decrease) in other payables

(492)

(104)

Increase/(Decrease) in other provisions

(176)

(667)

Increase/(Decrease) in grants payable

(818)

2,612

(3,087)

9,043

(Increase)/Decrease in prepayments Liabilities Increase/(Decrease) in deferred income Increase/(Decrease) in employee provisions Increase/(Decrease) in suppliers payables

Net cash from/(used by) operating activities


129

P E O P L E A N D R E L AT I O N S H I P S This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

4 . 1 E M P L OY E E P R O V I S I O N S 4 .1 A : E M P LOY E E P R OV I S I O N S 2016

2015

$’000

$’000

Leave

(1,949)

(2,091)

Total employee provisions

(1,949)

(2,091)

(1,098)

(1,419)

(851)

(672)

(1,949)

(2,091)

Employee provisions expected to be settled No more than 12 months More than 12 months Total employee provisions

130

ACCO U N TI N G P O LI CY Liabilities for short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts. Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly. Leave The liability for employee benefits includes provision for annual leave and long service leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the entity’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave is an estimate of the present value of the liability at 30 June 2016 and takes into account attrition rates and pay increases through promotion and inflation. Separation and Redundancy Provision is made for separation and redundancy benefit payments. The entity recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations. Superannuation The Council's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), or the PSS accumulation plan (PSSap), or other superannuation funds held outside the Australian Government. The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes. The Council makes employer contributions to the employees' defined benefit superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The Council accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions.


131

4 . 2 S EN I O R M A N AG EM EN T P E R S O N N E L R E M U N E R AT I O N 2016

2015

$’000

$’000

1,263

1,240

135

150

1,398

1,390

Post-employment benefits Superannuation

141

122

Total post-employment benefits

141

122

Other long-term employee benefits Annual leave Long-service leave

(9)

49

74

25

Total other long-term employee benefits

65

74

1,604

1,586

Short-term employee benefits Salary Performance bonuses Total short-term employee benefits

Total senior executive remuneration expenses

The total number of senior management personnel that are included in the above table are 6 (2015: 6).

132

4 . 3 R E L AT E D PA R T Y D I S C L O S U R E S Board Membership Board Members during the financial year were: Mr. Rupert Myer AO, Chair – (1 July 2012 – 30 June 2018) Ms. Robyn Archer AO, Deputy Chair – (1 July 2012 – 18 August 2016) Mr. Tony Grybowski, Chief Executive Officer (15 May 2013 – 23 October 2018) Ms. Lee-Ann Buckskin (appointed 1 July 2013 – 30 September 2016) Mr. Waleed Aly (appointed 1 July 2013 – 30 September 2016) Mr. Adrian Collette AM (appointed 1 July 2013 – 30 September 2016) Mr. Khoa Do (appointed 1 July 2013 – 30 September 2016) Ms. Sophie Mitchell (appointed 1 July 2013 – 30 September 2016) Ms. Samantha Mostyn (appointed 1 July 2013 – 30 September 2016) Mr. Tim Orton (appointed 1 July 2013 – 30 September 2016) Ms. Christine Simpson Stokes (appointed 25 February 2016 – 24 February 2019) Ms. Rebecca Weisser (appointed 7 September 2015 – 6 September 2018) Other Transactions with Directors or Director-Related Entities 2016 $’000

Grant to CarriageWorks

11

Award to CarriageWorks

55

In 2016, a Grant under the Screen Dance Initiative of $11K (incl. GST) and a contribution to the Keir Choreographic award of $55K (incl. GST) were made to CarriageWorks, which is Chaired by Samantha Mostyn (Board Member, Australia Council). These transactions were approved under standard procedures and were made on normal terms and conditions. The Board Member involved took no part in the relevant decisions of the board. No Board member has, since the end of the previous financial year, received or become entitled to receive any benefits by virtue of being a Board member other than fixed stipends or travelling and related allowances. All transactions between Council and Board members, or related parties of Board members, were conducted in accordance with standard procedures and on conditions no more beneficial than those of other grant applicants.


133

Mr Rupert Myer AO is the Chairman, The Aranday Foundation; Chairman, Nuco Pty Ltd; Director, Deputy Chair, Myer Holdings Ltd (Ceased November 2015); Director, AMCIL Limited; Director, Creative Partnerships Australia; Director, eCargo Holdings Ltd; Director, Healthscope Ltd; Director, The Myer Foundation; Board Member, Australian International Cultural Foundation; Board Member, Jawun - Indigenous Corporate Partnerships; Board Member, The Yulgilbar Foundation; Board Member, The Myer Foundation Arts and Humanities Committee; Member, The University of Melbourne, Faculty of Business and Commerce Advisory Board; Member, Felton Bequests' Committee; Member, International Advisory Board of the Hong Kong Arts Development Council. Ms Robyn Archer AO is the Artistic Director, The Light in Winter (Federation Square); Chair, Master of Fine Arts (Cultural Leadership) National Institute of Dramatic Arts (Effective August 2015); Strategic Advisor, Arts and Culture, City of Gold Coast, Member, European House of Culture; Member, Council on Australia Latin America Relations. Mr Tony Grybowski is the Chief Executive Officer, Australia Council for the Arts. Ms Lee-Ann Buckskin is Executive Aboriginal Strategy, South Australian Film Corporation (Effective October 2015); Aboriginal Strategy Coordinator, South Australian Film Corporation (Between August - October 2015); Co-chair, South Australia's 2015 International Aboriginal Visual Arts Festival (Concluded December 2015); Member, Indigenous Champions Group, Barangaroo (Ceased December 2015); Member, Indigenous Reference Group, National Museum of Australia (Effective February 2016). Mr Waleed Aly is Director, Tiger in the Community Foundation; Director, Macent Pty Ltd (trading as Salam Café). Mr Adrian Collette AM is employed by The University of Melbourne as Vice-Principal (Engagement). He is Executive Board member, Committee for Melbourne; Board Member, The Ian Potter Museum of Art; Board member, Melbourne University Sport; Life Member, Australian Entertainment Industry Association's Executive Council. Mr Khoa Do is a Board Member and Member Audit and Finance Committee for Australia Council for the Arts. Ms Sophie Mitchell is employed as Director, Morgans. She is Trustee, Queensland Performing Arts Trust; Director, Silver Chef Limited; Director, Flagship Investments Limited; Director, Morgans Foundation, Member, Takeovers Panel.

134

Ms Samantha Mostyn is President, Australia Council for International Development; Chair, Citigroup Pty Limited (Effective November 2015); Chair, Carriageworks; Deputy Chair, Diversity Council of Australia; Director, Australian Volunteers International (Ceased November 2015); Member, Business and Sustainable Development Commission (Effective January 2016); Director, Covermore Group Limited; Director, Mirvac Ltd (Effective October 2015); Director, Transurban group; Director, Virgin Australian Holding Ltd; Commissioner, Australian Football Leauge (Ceased March 2016). Mr Tim Orton is employed by Nous Group as Managing Director. He is Chair, Rhodes Scholarships in Australia Pty Ltd, Executive Board Member, Committee for Melbourne, Director, Jianguo P/L, Director, K-osss P/L, Director, K-osss II P/L. Ms Christine Simpson Stokes is Executive Director, Kerry Stokes Collection, Trustee, Channel 7 Telethon Trust, Advisory Council Member, Jackman Furness Foundation for the Performing Arts. Ms. Rebecca Weisser is a Board Member and Member Strategy at the Australia Council for the Arts. 4 . 4 R E M U N E R AT I O N O F A U D I T O R S

Financial statement audit services were provided by the Australian National Audit Office (ANAO). Fair value of services provided Financial statement audit services Total fair value of services received

2016

2015

$’000

$’000

48

50

48

50

No other services were provided by the ANAO. The ANAO has appointed Pitcher Partners to assist with the audit assignment. In 2015 Moore Stephens had assisted ANAO with the audit assignment.


135

M A N A G I N G U N C E R TA I N T I E S This section analyses how the Australia Council manages financial risks within its operating environment.

5.1 FI NAN CIAL I N STRU M ENTS 5 . 1 A : C AT E G O R I E S O F FINANCIAL INSTRUMENTS

Financial Assets Cash and cash equivalent Total cash and cash equivalent Receivables Receivables for goods and services Interest receivables Total Receivables

136

2016

2015

$’000

$’000

17,933 17,933

21,376 21,376

18 33 51

39

Total financial assets

17,984

21,437

Financial Liabilities Financial liabilities measured at amortised cost Trade creditors Other payables Grants and programs Total financial liabilities measured at amortised cost

(616) (154) (3,691) (4,461)

(1,845)

(7,006)

Total financial liabilities

(4,461)

(7,006)

22 61

(652) (4,509)

ACCO U N TI N G P O LI CY Financial assets The Council has financial assets only in the nature of cash and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date. Receivables Receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'Receivables'. Receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate. Impairment of Financial Assets Financial assets are assessed for impairment at the end of each reporting period. Financial liabilities Financial liabilities are recognised and derecognised upon ‘trade date’. Supplier, grants and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).


137

5 . 1 B : N E T G A I N S O R L O S S E S

2016

2015

ON FINANCIAL ASSETS

$’000

$’000

Interest revenue

2,400

3,029

Net gains on financial assets

2,400

3,029

17,933

21,376

51

61

Total financial assets

17,984

21,437

Financial Liabilities Trade and other creditors Grants and programs

(770)

(2,497)

(3,691)

(4,509)

Total financial liabilities

(4,461)

(7,006)

5 . 1 C :F A I R VA L U E O F F I N A N C I A L I N S T R U M E N T S

Carrying amount is equal to fair value. Financial Assets Cash at Bank Receivables for goods and services

5.1 D : CRED IT RI SK

The Council is exposed to minimum credit risk as the maximum exposure to credit risk is the risk that arises from potential default of debtors. This amount is equal to the total amount of goods and services trade receivables and interest receivables (2016: $51,000 and 2015: $61,000). Credit quality of financial assets not past due or individually determined as impaired

Cash and cash equivalents Receivables for goods and services Total

138

NOT PAST DUE NOR IMPAIRED

NOT PAST DUE NOR IMPAIRED

PAST DUE OR IMPAIRED

PAST DUE OR IMPAIRED

2 016

2 01 5

2 016

2 01 5

$ ’0 0 0

$ ’0 0 0

$ ’0 0 0

$ ’0 0 0

17,933

21,376

-

-

46

58

5

3

17,979

21,434

5

3

5.1 E : LIQ U I D IT Y RI SK

The Council's financial liabilities are trade creditors and grant payables. The Council has sufficient available financial assets to meet all financial liabilities at 30 June 2016. The exposure to liquidity risk is based on the notion that the Council will encounter difficulty with regard to obligations associated with financial liabilities. This is highly unlikely due to liabilities being budgeted and adequately covered by the appropriation received by the Council. Maturities for non-derivative financial liabilities in 2016 BETWEEN BETWEEN 2 TO 5 1 TO 2 YEARS YEARS

MORE THAN 5 YEARS

TOTAL

ON DEMAND

WITHIN 1 YEAR

$’000

$’000

$’000

$’000

$’000

$’000

Trade Creditors

-

( 770)

-

-

-

( 770)

Grants and programs

-

(3,691)

-

-

-

(3,691)

Total

-

(4,461)

-

-

-

(4,461)

Maturities for non-derivative financial liabilities in 2015 Trade Creditors

-

(2,497)

-

-

-

(2,497)

Grants and programs

-

(4,509)

-

-

-

(4,509)

Total

-

(7,006)

-

-

-

(7,006)


139

5.1 F: MARKET RI SK

Currency risk Currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Australia Council is exposed to foreign exchange currency risk primarily through undertaking certain transactions denominated in foreign currency. Australia Council is exposed to foreign currency denominated in EURO, USD, Pound sterling, NZD, Indian Rupee, Canadian dollar, Renminbi and Yen. Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current as at balance date. Associated currency gains and losses are not material. Interest rate risk The Council manages its interest rate risk by holding surplus funds with banks in accordance with Section 59 (1) of the PGPA Act 2013 and with its investment policy.

5 . 2 FA I R VA L U E M E A S U R E M E N T The following table provides an analysis of assets and liabilities that are measured at fair value. The remaining assets and liabilities disclosed in the statement of financial position do not apply the fair value hierarchy. The different levels of the fair value hierarchy are defined below. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: U nobservable inputs for the asset or liability.

ACCO U N TI N G P O LI CY The Council values its non-financial assets at fair value as per Australia Accounting Standards Board (AASB) 13. The Council enlists professional external valuers for valuing its overseas properties. Freehold properties are valued on the basis of market comparables and leasehold properties with restrictions on sale are valued on the basis of deprival of market rent. Properties of a specialised nature (Venice Pavilion) and leasehold improvements are valued on the basis of depreciated replacement cost. Musical Instruments and Works of Art are valued on the basis of market comparables. Full professional valuations are performed every three to five years. In the interim years an update on the drivers of market value is obtained from the Valuers and an adjustment to fair value made only when material.

140

5 . 2 A : F A I R VA L U E M E A S U R E M E N T

Fair value measurements at the end of the reporting period 2016 $'000

2015

VALUATION

INPUTS

$'000 (LEVEL 1, 2 OR 3)1 TECHNIQUE(S)

USED

CATEGORY

Non-financial assets

Land

149

149

Level 2

Market comparables

Freehold Property

332

339

Level 2

Market comparables

599

610

Level 2

7,249

7,398

Level 2

Leasehold improvements

142

150

Level 2

Property, Plant and Equipment

226

320

Level 2

Market comparables Depreciated Replacement Cost Depreciated Replacement Cost Depreciated Replacement Cost

Buildings on Leasehold land Venice Pavilion (Leasehold Property)

Musical Instrument

Works of Art Total nonfinancial assets

-

388

Level 2

Market comparables

377

382

Level 2

Market comparables

9,074

Price per square metre Market rate of interest Price per square metre Market rate of interest Price per square metre Market rate of interest Current Replacement Cost Cost, estimated obsolesence and service capacity Cost, estimated obsolesence and service capacity Professional appraisals of similar instruments Professional appraisals of similar artworks

9,736

1. The remaining assets and liabilities reported by the Council are not measured at fair value in the Statement of Financial Position.


141

142

COMPLIANCE INDEX Financial Statements

96

Under section 17BE of the Public Governance, Performance and Accountability Rule 2014 17BE(a) and (b)

Enabling legislation – purpose, objectives and functions

17BE(c)

Responsible Minister(s)

13-14 79

17BE(d), (e) and (f) Ministerial directions, Government policies and General Policy Orders under section 22 of the PGPA Act 17BE(g)

Annual Performance Statement

17BE(h) and (i)

Significant issues under section 19 of the PGPA Act

17BE(j)

Information about Directors

17BE(k)

Outline of Organisational Structure

17BE(l)

Location of major activities

17BE(m)

Statement on Governance

79 68 -70 88 74-78 93

23, 43-44, 111 74

17BE(n), (o) Payments for goods or services to other Commonwealth entities

N/A

117BE(p) Significant activities and changes that affected the operations or structure

88

17BE(q)

88

Judicial decisions and reviews by outside bodies

17BE(r) Reports on the entity given to the Auditor–General, Parliament, the Commonwealth Ombudsman, Office of the Australian Information Commissioner

N/A

17BE(s)

Information from subsidiaries of the entity

N/A

17BE(t)

Indemnities and insurance premiums for officers

88

17BE(u)

Compliance Index

143

Other Statutory Requirements Section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (Ecologically sustainable development and environment performance) Archives Act 1983 Australian Electoral Commission Act 1918 Freedom of Information Act 1982 Privacy Act 1988 Public Interest Disclosure Act 2013

A N N UA L R E P O RT 2 01 5 – 1 6

143

Australia Council for the Arts 372 Elizabeth Street Surry Hills NSW 2010 PO Box 788 Strawberry Hills NSW 2012 Phone Toll free Fax NRS

+61 2 9215 9000 1800 226 912 +61 2 9215 9111 1800 555 677

[email protected] australiacouncil.gov.au

© Australia Council 2016. ISSN 0725–7643 This work is copyright. Apart from any use permitted under the Copyright Act 1968, all rights are expressly reserved. Requests for further authorisations should be directed to the Communications section at the above address. In accordance with the Australian Government’s printing standards for documents presented to Parliament, this publication has not been printed on recycled paper.

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