Darwin Entertainment Centre 2020-21 Annual Report

BOARD MEMBERS

Chairperson

David De Silva AM

Directors

Charlie Falanga

John Glenn

Dr Wendy Ludwig Neville Pantazis

Terri Layman

General Manager

Mike Harris (from March 2021)

Acting General Manager

Coryn Huddy (until March 2021)

Registered Office

93 Mitchell Street, Darwin NT 0800

GPO Box 1993, Darwin NT 0801 Telephone 08 8980 3333

yourcentre.com.au ntix.com.au

Darwin Performing Arts Centre Ltd

ABN 14 009 624 248

Corporate information as at 30 June 2021

Partners

Sponsors

Darwin Entertainment Centre acknowledges the Traditional Custodians of the lands on which we live and work. We pay our respects to Larrakia Elders past, present and future, and to all Aboriginal and Torres Strait Islander Peoples.

In Motion, image Helen Orr

Cover: BackStage, image Helen Orr

Message from the Chairman

2020/21

I have reflected on my time as Chair since 2013/14 which was my first year on the DEC Board.

The establishment of a skills-based board was a significant feature on the board’s critical path. To subsequently see the board flourish in the best interests of the business has been immensely satisfying. The move to the skills-based board coincided with DEC progressing at rapid pace to successful financial and production outcomes.

The sustainability and viability of DEC has always been the major focus of the board and DEC’s ability to withstand the adverse ramifications of the COVID-19 pandemic is testament to the strength of its balance sheet which in turn is the result of careful decision-making and close attention to financial detail by the board and management. Prior to my time on the board, the business’s financial statements reflected regular deficits. I am extremely proud that a surplus was recorded through each year of my tenure.

From a production perspective, the development of Garrmalang Festival is the achievement I cherish the most. Additionally, I am reminded of the great successes of Peking Opera, the copresentation with Darwin Festival of the wholly indigenous production Man With The Iron Neck, the various music acts, stand-up comedy and children’s shows which have all played a wonderful part in my involvement with the Centre.

The bringing of the Darwin Amphitheatre under DEC’s management exemplifies the foresight of the board and management. This brilliant venue which Darwinites hold dear to their collective hearts is at last being professionally managed and its development will be an important part in the future growth of Darwin.

None of DEC’s achievements would have occurred without the ongoing positive support from its major funding partners City of Darwin and the Northern Territory Government, to whom I express my heartfelt gratitude. Their efforts have ensured the positive return of social capital to the Darwin community which with their ongoing support will continue well into the future.

I cannot speak any higher of the efforts of the dedicated, passionate staff of DEC. Their input at all levels has been critical to the ongoing success of the business. As well I must recognise and thank the general manager for much of my time at DEC, Alan James, together with the acting general manager, Coryn Huddy, who steered DEC through 2020 when the pandemic had reared its ugly head and the future looked bleak. An extensive national recruitment drive saw Mike Harris join the team as general manager this year. Mike’s passion and vast experience in the arts industry strongly suggests that DEC will continue growing from strength to strength.

Finally, I thank the various board members who have been part of the decision making for DEC over my time there. Their input has always been made with the right spirit and intent. I am hugely grateful to the board members for their collective efforts, guidance and support.

Thank

you,

DAVID DE SILVA AM Chairman

I am pleased to present Darwin Entertainment Centre’s (DEC)

Annual Report on behalf of the board of Directors. This will be the final report that I will have had the honour and privilege to be presenting due to the expiration of my allocated time as a board member as provided for by DEC’s Constitution.

Message

In a year that thankfully was for the most part free of lockdowns, we were open for business, but only fully returned to 100% capacity in February. It would be remiss of me not to acknowledge Coryn Huddy whom, as Acting General Manager, steered DEC through, and out of, the first period of COVID-19 lockdowns and restricted trading. Coryn, your efforts are very much appreciated, thank you.

The end of 2020-21 also marks the end of David De Silva’s eight-year tenure as Chair. David’s commitment and contribution are significant. Thank you David for the steady guidance through this time which has seen DEC thrive as the Territory’s premier arts and entertainment destination. Clare Martin takes over from David and we are excited to have Clare overseeing DEC’s transit through post-COVID years.

Throughout the year DEC confirmed its position as a leader in the Territory’s entertainment sector. We were there for the local arts community, presenting local works during the early stages out of lockdown, and supporting local artists both in the presentation of their art as well as their development as artists. We also hosted a number of acts from around the country with Bluey’s Big Play exciting our younger patrons and five sold out Carl Barron shows keeping the rest of us laughing.

I started at DEC on the ides of March and am looking forward to the challenges ahead as DEC navigates itself through the next stages of COVID’s impact on our operations and events, and into what we hope will be a bonanza of great shows local, interstate and international that will excite our audiences.

MIKE HARRIS General Manager

The 2020-21 year can only be described as challenging; challenging, but also a year that clearly demonstrated DEC's importance to Darwin and the Northern Territory.

from the General Manager

Washington, image She is Aphrodite

THE YEAR IN REVIEW

We’ve responded quickly to the current crisis, establishing and de-establishing work streams across the business as required and taking the opportunity to encourage new collaborations and to reassess existing projects and operations.

We've worked closely with touring companies and performers to reschedule events and performances wherever possible and we are grateful to our audiences for being flexible during these challenging times. We’ve also worked with the Northern Territory Department of Health to ensure our COVID-safe plan met changing requirements and kept our patrons, staff and artists safe.

Despite the ongoing challenges of the pandemic, we have hosted 186 events up from 117 last year including shows by national and international talent. Within that increase of events, we’ve also seen an increase in the number of tickets sold to each event up to 69% of all tickets available from 61% last year. With theatres capped at 50% capacity for seven months of the year, these are strong and promising figures as we navigate to our 'new normal'.

Behind the scenes, we have continued our work on our strategic business outcomes. The work done to date

has meant that we have been able to respond quickly to change and still offer great shows and experiences to our audience, engaging local talent and building capacity in the sector by pairing high-level national acts with local upcoming artists. With our development program ESCALATE, we again offered exposure, mentoring, and the expertise of our own team to support artists and musicians as they embark on their careers.

This year has also been about firsts. Our first foray into producing events for Youth Week saw us offering an incredible Esports experience to young people who may not normally be visitors to the Centre. During this week we also hosted a music gig with young musicians, and painting workshops run by local artist Jason Lee who held his first ever fine art exhibition Ancestral Designs in The Gallery, combining digital art elements with the photography of Paul Foelsche.

As we emerged from the national period of lockdown In July, we introduced the In Motion series an opportunity to showcase local arts organisations at an accessible price, with all ticket proceeds returned to the artists.

Garrmalang Festival — after being postponed in 2019 and again in 2020

— was held over a full weekend in May with thousands attending the shows and experiences on offer. DEC became a thriving cultural hub for the weekend and on the Saturday evening was turned into a nightclub with Garrmalang Festival Club and the very popular Electric Fields bringing their combination of traditional culture and electronic music.

Our Artists-in-Residence continued to rehearse and perform throughout the year with SLIDE Youth Dance Theatre putting on four shows and NT Dance Company working on upcoming show Forbidden.

The organisation saw a change in leadership as the Centre welcomed General Manager Mike Harris in March and farewelled Chair of the Board David De Silva at the culmination of his fourth term in the role.

It is evident that the performing arts sector remains committed and unified and we are proud to play a part in this determination. The essence of DEC isn't in our bricks and mortar, but in our artists and audiences. The future might look different, but we are well set up to continue to innovate and deliver exceptional arts experiences to our community.

Recognising that organisational agility would be the key to success in these rapidly changing times, DEC has continued to learn on the run as the goalposts have continued to shift over the last 12 months.

Our first national act of 2020-21, Tom Gleeson – best known for his quick take-downs on Hard Quiz and his infamous Gold Logie win – brought his solo show Lighten Up to a Darwin crowd who’d been missing out on live comedy shows for months. Tom was so popular, he delivered a second show by demand bringing the laughs to even more Territorians.

IN MOTION

Four different performances, four different stages, four different groups roving around the Centre, all in one night. Audiences experienced DEC from a new perspective with a multitude of local entertainment. In Motion was four nights of artistic encounters waiting to be discovered by audiences keen to support local creative works.

TOM GLEESON

Vision / Purpose / Values

VISION

Lead artistic endeavours unique to the region and play a central role in enriching the social and cultural life of Darwin, the Northern Territory and beyond.

PURPOSE

To maintain and develop the Centre as a premier vibrant performing arts venue that provides diverse and innovative live entertainment and events.

VALUES

Safety is engrained in everything we do.

Supportive we encourage and embrace our people, clients, artists, and the community.

Unified we act as one to seek the best outcomes for our business.

Genuine we will be accountable, committed, honest, respectful, and compassionate.

Innovative we are solutions-focused, adaptable, bold, and seek opportunities.

Collaborators we provide value, are reliable and operate transparently and inclusively.

More than 700 people joined us for the NT Premiere of Stephen Johnson’s High Ground, a gritty revenge thriller set against the spectacular, primordial landscape of 1930s Arnhem Land. Special guests walked the Red Carpet for this important Territory film, presented as part of Flix in the Wet in partnership with Darwin Film Society.

STRATEGIC PILLARS & OUTCOMES

PILLAR 1

Program exceptional artistic work and support outstanding Northern Territory artists

We strive to deliver diverse and exciting performances and exhibitions, and position DEC as the entertainment provider of choice through diverse programming, establishing performer and emerging artist pathways, and building strategic relationships and partnerships.

OUTCOMES

In 2020-21, we delivered 186 events/ activities covering 12 genres of diverse and engaging programming. We offered new visual arts, special events, words and ideas, and sporting events, engaging with a broad range of audiences.

As the country progressively opened up, we saw increased confidence in national touring, securing big name artists such as Ben Elton, Cosentino, Carl Barron and Tom Gleeson and high quality touring productions from CDP Kids (The 91-Storey Treehouse, Magic Beach, The Very Hungry Caterpillar Show) and Bluey's Big Play. We expanded our offering in the traditionally quiet shoulder season of January to February by partnering with Darwin Film Festival to deliver nine films as part of Flix in the Wet

This year we began a partnership with The Smith Family, participating in their smARTS program which gives young people from low socio-economic backgrounds the chance to see all aspects of how a show is brought to stage. We are thrilled that this partnership will continue.

We launched ESCALATE, a new development program for local musicians. This program saw three local artists paired with mentors already

in the music industry and the team at DEC to help them learn everything from production to publicity. Fivepiece reggae rock band Jahquavis, Crystal Robbins and Emma Lester were mentored by industry stalwart Toni Childs and producer James Mangohig, and supported by DEC networks to get their music out to more ears and set them up for success. These new relationships saw both Jahquavis and Crystal Robbins engaged in subsequent programming at the Centre.

As part of our focus on more local acts, we hosted the debut album launch of local musician Max Fredericks and helped local comedian Amy Hetherington fulfil her dream of performing in The Playhouse with her sold out show Don’t Feed the Ducks

Following on from our successful Live @ The Studio initiative last year, where we teamed up national and international artists with local support acts, this year we partnered Tex Perkins and Matt Walker with Max Fredericks; Wendy Matthews with Crystal Robins; Kate Ceberano with Mandy Garling; and Washington with Stevie Jean. This has been an incredibly valuable opportunity for our local talent, giving them exposure to large audiences, big shows and world-class performers.

High Ground, image courtesy Madman

PILLAR 2

Drive a professional, influential and resilient Centre

We aim to improve DEC's capacity across all facets of the business by capacity building across the organisation, maintaining a safe and engaging space for staff and patrons, collaborating with key government agencies to deliver ongoing asset management and capital infrastructure, and delivering an incredible experience for everyone.

OUTCOMES

This year we rolled out a new online learning system – Talent LMS – to manage how our standard operating procedures and policies are rolled out to staff and to track our compliance.

We have upskilled a number of staff including two of our core technical team who are on their way to becoming qualified intermediate riggers. In

addition, key staff have undertaken first aid training or refresher training so we can respond to any issues that arise.

We have continued to invest in our technical equipment including a transition to LED lights to lower our electricity consumption and reduce our carbon footprint. We also purchased a new electric walkie stacker to better

utilise the space available in the mezzanine level of The Playhouse dock, improving safety and ease of access.

At a venue level, we received an Immediate Works Grant from the Northern Territory Government to repaint the administration area and upstairs foyer. In addition, we upgraded the foyer and courtyard furniture as well as catering equipment so we can offer in-house catering and provide a better experience and improve our offering for conferences and business events.

With five performances under their belt in 202021, Darwin Symphony Orchestra have settled into their permanent home here at the Centre. DSO’s program catered to a range of audiences including the family-friendly Carnival of the Animals and Where I Roam, a combination of orchestral music with dance choreographed by Gary Lang.

We have continued to use existing space in the Centre differently, hosting the Financial Counselling Association Conference, Flix in the Wet, Darwin International Film Festival events, and an incredible visual arts program including the COVID-themed art exhibition Pandemonium hosted by Luke Gosling MP. These events continue to showcase DEC as more than just a performing arts venue.

DARWIN SYMPHONY ORCHESTRA

Magic Beach, image James D Morgan

OUTCOMES

Building on the work undertaken in the previous year to develop and deepen DEC's audiences, we turned our attention to youth and school audiences, and Top End communities that may be part of local performing arts networks, but not always engaged with the Centre.

Positioning DEC as an accessible community asset, we offered a range of free activities during Youth Week for people aged 11-26. The most successful was an Esports event set up in the Studio Theatre, where our in-house production team went above and beyond to transform the space into an Esports paradise complete with virtual reality in the foyer. We are excited to continue this program of events in 2022, deepening our connection to youth audiences.

A packed education program, that included In the Zone a youth dance theatre event using technology to tell stories by Shaun Parker Company, and the political smash-hit The Gospel According to Paul by Soft Tread, explored topical subject matter relevant to curriculum frameworks.

Younger audiences were also treated to the heats for Class Clowns and our First Nations artists took part in Deadly Funny, both part of Melbourne International Comedy Festival.

In partnership with co-creative directors Ben Graetz and Nina Fitzgerald, we reimagined Garrmalang Festival into a weekend full of activities with the help of Larrakia Nation, centering First Nations audiences at the heart of the programming. Garrmalang is Darwin's only major multi-arts event led by a First Nations creative team. Showcasing more than 50 First Nations performers and artists, the Festival provided a space for community to come together, listen, laugh, sing and celebrate.

Darwin Symphony Orchestra returned to the Centre, making the venue its home once again with a 2021 season of

five events and brand new sound shells for a premier audio experience for classical music lovers. With the regular engagement of this demographic, we hope to see an increased appetite for an expanded program of classical music events.

One of just two international performances across the year, Tsitsanis, Hatzidakis, Xarchakos, Theodorakis - Songs of Liberation celebrated 200 years of the Greek War of Independence. Darwin's large Greek community were appreciative of the exceptional performance by international artist Dimitris Basis together with a Greek band and symphony orchestra, under the direction of conductor George Ellis.

We continued to expand our visual arts program and used our gallery space to host seven exhibitions. Botanical illustrator Anastasia Maximova

cultural

GARRMALANG FESTIVAL

undertook two incredibly popular workshops at the Centre, both sold out events and successfully engaging a new audience of local creatives.

Katherine In Motion, delivered in partnership with Katherine Regional Arts, saw audiences travelling from the regional town 300 kilometres away to support their local artists playing on 'the big stage'.

Despite our best plans, our first ever upcoming foray into Darwin Fringe Festival was interrupted by COVID-19 and we plan to maintain this relationship as we look to the future.

In all our operations and promotional activity, we continue to live and breathe our newly developed brand strategy, strengthening our perception as an organisation that connects, curates and creates.

Garrmalang Festival gets its name from the Larrakia word for Darwin’s CBD. Garrmalang returned with a bang after a COVID-19 related postponement in 2020. Events included an Elder's morning tea, the Through Our Eyes photographic exhibition, custom t-shirt screenprinting, panel discussions, Big Black Dot Comedy Spectacular and the very popular Electric Fields in The Playhouse.

We strive to give the community experiences they can’t get anywhere else and in turn, grow the reputation and reach of the performance/arts sector across all audience segments.

Energise, develop and inspire the

and artistic life of Darwin by deepening our community engagement and growing our audiences

Garrmalang Festival, image Leicolhn McKellar

The big dog of children’s TV right now took some time off from worldwide fame to come and see us here in the Top End in their first live theatre season. Performing five shows over two days, thousands of Territory kids — and their parents — got to enjoy an original story with new music right here in Darwin.

Manage a financially sustainable organisation

To maintain our presence and influence in the community and the sector, we aim to run a financially sustainable organisation for the long-term by diversifying our income, accessing new funding streams, and maintaining robust and transparent financial management practices.

OUTCOMES

In 2020-21, we increased ticket sales by 3% and the average percentage of tickets sold to each show by 8%. We tested new genres and saw new audiences engaging with the Centre.

This year, we continued our progress on diversifying our revenue streams. In addition to opening up existing spaces for new purposes and multiple concurrent bookings, we upgraded facilities to increase revenue and improve the visitor experience.

In addition, we utilised JobKeeper until the scheme ended in March to maintain our staffing levels despite the challenges of COVID-19 on our programming. This funding was critical to us maintaining our levels of service and retaining our skilled staff.

We have built a number of partnerships in recent years that are working well. We are halfway through our five-year funding agreements with the Northern Territory Government and the City of Darwin. We continued our partnership with Darwin Festival presenting four events in their hyper local program, and plans for the delivery of the 2021 Territory Day event at Mindil Beach in conjunction with Hamark Holdings are on track.

We continue to work on creating commercial arrangements and sponsorships with local businesses for the benefit of our performers and our patrons. This year we trialled an accommodation agreement with H Hotels and will work on creating more mutually beneficial opportunities with accommodation providers into 2022 and beyond.

Our external ticketing platform NTix continues to grow with the integration of Tickets.com. While events were limited this year, NTix managed the ticketing for three last-minute AFL games at TIO Stadium and Alice Springs. There was significant demand for a COVID-limited number of tickets and the added challenge of socially distanced seating allocations. Tickets sold out in record time (under one hour, and up to 92% sold in the first 10 minutes). The games were a success and both Tickets.com and DEC gained new-found knowledge and expertise about ticketing around socially-distanced crowd capacity requirements.

PILLAR 5

DANIEL SLOSS

OUTCOMES

Like 2019-20, this financial year we have been heavily impacted by COVID-19. While the Northern Territory was largely restriction-free for much of 2020, we worked hard to offer new and exciting local programming and experiences in the lead up to opening our theatres at full capacity in February. We were the

envy of the nation as one of the first venues in Australia to welcome regular shows back onto its stage.

Despite this full reopening of our venue, many interstate and international performers were still prevented from travelling to Darwin by border restrictions and hotspot declarations. Some performances were rescheduled multiple times while others were cancelled completely. Already, many of these events have been rescheduled into the new year.

In late June of 2021, the greater Darwin region went into a snap lockdown throwing our programming into disarray at the height of the usually busy dry season. With just three hours’ notice on a Sunday, our programming had to be cancelled. Our team showed incredible resilience during this time and got the job done.

We have implemented all government requirements for masks, venue cleanliness and staffing levels to ensure we can continue to operate safely. We also secured a crowd capacity of 6,000 for SummerSalt held in April and Carl Cox's Carl & Eric’s Mobile Disco held in May at the Gardens Amphitheatre. This is significant given the maximum, nonCOVID capacity of that venue is 7,000.

What do you get when you combine an internationally acclaimed comedian with two weeks of quarantine and a short leadin to a mid-week show? A brilliant night of comedy that’s what! Scotsman Daniel Sloss and his 11th solo show Hubris was our first international show of the year — bringing the house down and giving the Top End a real treat during the pandemic.

Receiving permission to operate the DEC Forecourt as a licensed space, we created an outdoor pre-show entertainment area with bar service, increasing the open air space available and effectively managing scanning and checking in processes to ensure compliance with heath regulations and streamlining processes.

Use the challenges of the COVID-19 global pandemic as an opportunity to look inward and re-open strong and vibrant.

Turn COVID -19 into a positive, be prepared and re-emerge faster, more connected, and smarter

Daniel Sloss, image Troy Edige

SUPPORTING OUR ARTS COMMUNITY

DEC is proud to provide in-kind support to a range of local organisations and artists each year. It is this support that often keeps these small, grassroots organisations alive, particularly over the last two years.

The support we offer includes the free or discounted use of rehearsal and performance space, subsidised marketing and promotional activities run through the Centre, and the support of technical, event and administrative staff during rehearsal and performance periods.

In 2020-21, more than $346,863 was provided to the following 30 community groups to help them deliver performances to the Darwin community:

• Arafura Music

• Artback NT

• Cinemart

• Darwin Festival

• Darwin Performance Academy

• Darwin Symphony Orchestra

• Darwin Film Society

• Driver Primary School

• Engineers Australia

• Haileybury Rendall School

• Holy Spirit Catholic College

• House of Darwin

• Katherine Regional Arts

• Launch Darwin (City of Darwin Youth Projects)

• Leisa's School of Dance

• National Indigenous Music Awards

• Northern Territory Calisthenics Association

• NT Dance Company

• NT Music School

• O'Loughlin Catholic College

• Order of Australia Association NT

• Royal Existence Dance Academy

• Sam's Dance Studio

• Settle Down Records

• Skipping NT

• SLIDE Youth Dance Theatre

• StoryProjects

• The Smith Family

• Tiwi Strong Women's Group

• Tracks Dance Company

In addition, we supported the National Aboriginal Islander Skills Development Association (NAISDA) Dance College to rehearse for seven weeks at no charge. The outcome of this rehearsal time, Forbidden, is a cross cultural, cross border collaboration between NT Dance Company, NAISDA Dance College (Australia’s foremost First Nations dance performing arts training organisation) and Yolngu East Arnhem Land’s Miku Performing Arts.

We have also provided free access to the theatre and our equipment to Charles Darwin University Production students. This allows them to practice their skills in an actual theatre and put their theoretical knowledge to the test.

TIWI STRONG WOMEN’S GROUP — YOI! NGARUKURUWALA

The Tiwi Strong Women’s Group brought their stunning combination of cultural dance, song and stories to the Centre this year to celebrate the Tiwi Islands and their dreaming. Crowds were left speechless by the incredible performance and the energy buzzing through the theatre.

DEC ARTIST-IN-RESIDENCE

COMPANIES

In addition to our regular support to community groups, we are home and provide in-kind support to SLIDE Youth Dance Theatre and NT Dance Company who use DEC for rehearsals and performances.

SLIDE YOUTH DANCE THEATRE

SLIDE Youth Dance Theatre offers contemporary youth dance theatre suitable for audiences of all ages. SLIDE shows are not only entertaining but often explore challenging social issues affecting young people including alcohol and drug use, road trauma and bullying.

NT Dance Company, image supplied by the Company

NT DANCE COMPANY

NT Dance Company offers contemporary dance workshops, choreography, school dance programs and performances celebrating both local and neighbouring Indigenous cultures. This year NT Dance Company have worked tirelessly on their soon to be released show, Forbidden.

Tiwi Strong Women's Group, image Prudence Upton

SECRETS, image Maria Da Silva

Darwin funny girl Amy Hetherington brought her new solo show to the Centre this year, achieving her dream of performing in The Playhouse theatre. Originally scheduled for the Studio Theatre, Amy’s tickets sold so fast, she was upgraded to the larger space, selling out The Playhouse and proving that local talent can mix it with the best of them.

THE PLAYHOUSE

AMY

CDP

COSENTINO

DANIEL

DARWIN

DARWIN

DARWIN

DARWIN

DARWIN

DARWIN

DARWIN

FIONA

FLIX

Amy Hetherington, Don't Feed the Ducks

CARL

—

RINK FOR

STUDIO THEATRE

After another challenging, COVIDimpacted year, we have worked hard to maintain the financial sustainability of our organisation. Despite the challenges of restrictions, our ticket sales were up 3% for the year.

With work done to identify additional revenue streams including offering shows and events to a broader audience and opening up new and existing spaces within the Centre we are on track to emerge from the challenging last few years in a satisfactory financial position.

With JobKeeper funding until March 2021, we have been able to maintain our staffing levels and return a modest surplus of $101,458.

The following audited financial reports provide a detailed look at our financial position.

Darwin Entertainment Centre

ABN 14 009 624 248

Directors’ Report

For the Year Ended 30 June 2021

Your directors present their report on the Darwin Performing Arts Centre (the Company), trading as the Darwin Entertainment Centre (the Centre), for the financial year ended 30 June 2021

1. General information

(a) Principal activities and significant changes in nature of activities

The principal activities of the Company during the financial year were the hiring of the theatres and other areas within the Centre, entrepreneurial activities in the staging of shows and acting as a ticketing agent for other venues.

There were no significant changes in the nature of the Company’s principal activities during the financial year.

2. Business review

(a) Operating Results

The operating surplus of the Company for the financial year amounted to $101,458 (2020: $64,448 operating surplus).

(b) Review of operations

A review of the operations of the Company during the financial year and the results of those operations show that during the year, the Company continued to engage in its principal activities, the results of which are disclosed in the attached financial statements.

3. Other items

(a) Auditor's Independence Declaration

The auditor's independence declaration for the year ended 30 June 202 1 has been received and can be found on page 33 of the financial report.

(b) Significant Changes in State of Affairs

No significant changes in the Company's state of affairs occurred during the financial year.

(c) Post balance sheet events

No major matters or circumstances, have arisen since the end of the financial year which significantly affect or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years

(d) Future developments

The Company expects to continue its principal operations. Further information about likely developments in the operations of the Company and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Company.

4. Corporate Structure

Darwin Performing Arts Centre is a not for profit company limited by guarantee that is incorporated and domiciled in Australia.

Darwin Entertainment Centre

ABN 14 009 624 248

Directors’ Report

For the Year Ended 30 June 2021

5. Employees

The Company employed 16 (2020:15) permanent employees as at 30 June 2021. The Company employed up to 62 (2020:73) casual employees during the year as required.

6. Director Information

(a) Information on directors

Clare Martin (Incoming Chair)

Clare Martin was the first Labor Chief Minister of the Northern Territory and its first female Chief Minister.

Clare led the Labor Party to victory in the Northern Territory in 2001 and then a second time in 2005.

Clare was Chief Minister for more than six years, from 2001 07 and during that time held a number of ministerial portfolios, including Treasury, Major Projects, Tourism, Police, Arts and Indigenous Policy.

Clare was the member for Fannie Bay in the NT Parliament from 1995 to 2008.

Before politics, Clare spent almost two decades as an ABC journalist and broadcaster, working in radio and TV in Sydney, Canberra and Darwin.

Following politics, Clare was the Chief Executive of the Australian Council of Social Service, and then a Professorial Fellow at Charles Darwin University, where she co authored a book about Territory politics called Speak for yourself.

Clare is currently the Co Chair of Team Territory; Chair of the Museum and Art Gallery NT and Deputy Chair of Northern Territory Cricket

Appointed 9 August 2021

End of term 8 August 2023

David de Silva (Outgoing Chair)

David received his Bachelor of Law Degree from the University of Adelaide in 1987. He completed an Associateship with Justice Millhouse in the Supreme Court of South Australia before moving to the Territory in 1989 to complete his Articles of Clerkship with Poveys, and then working as a litigation lawyer with Cridlands.

In 1993, David became the Darwin partner of a Brisbane firm Greves Creswick which evolved into De Silva Hebron, a legal firm which has now been in business in Darwin for over 25 years. De Silva Hebron is a medium size legal firm in the Darwin market and is predominantly focused upon serving the needs of the business community of the Northern Territory whilst maintaining a general practice.

Darwin Entertainment Centre

ABN 14 009 624 248

Directors’ Report

For the Year Ended 30 June 2021

Outside of law, David is the Chair of Tennis NT, serves on the board of Territory Equities Pty Ltd a private equity company.

David is the former Chair of Power Generation Corporation t/a Territory Generation and CrimeStoppers NT and a former Board member of AFLNT, Darwin Waterfront Corporation, Group Training NT, the NTFL and St Mary's Football Club, where he is a life member.

David and his partner, Wendy, have three children who have all been raised and educated in the Northern Territory.

In June 2018 David was recognised for his services to the Darwin business community by being appointed a Member of the Order of Australia.

Appointed 1 July 2013 End of term 9 August 2021

From an initial career in music performance and management, John has gone on to roles in financial, project and logistical management for a variety of government, non-profit and private entities.

His career went full circle back to the arts and arts management when in 2006 he was appointed Operations Manager of Sydney Symphony, responsible for the Orchestra's logistical and production management, as well as their intrastate, interstate and international touring program.

A stint as General Manager of Sydney's State Theatre followed, before a move to Brisbane to become General Manager of the Venue Management Association (Asia and Pacific).

In November 2011 John became Executive Producer Venue Utilisation at Queensland Performing Arts Centre, responsible for maximising commercial opportunities and the utilisation of the four theatre venues and other ancillary spaces.

John then moved back to his hometown of Adelaide from 2014 to 2017 in the role of Executive Producer Adelaide Cabaret Festival and Commercial Ventures. Held annually in June, Adelaide Cabaret Festival is the biggest of its kind in the world. He also had oversight of Adelaide Festival Centre's commercial ventures leveraging relationships with agents and commercial producers nationally and internationally.

In late 2017, John returned to Queensland Performing Arts Centre in the role of Director Programming. He now oversees the Centre 's annual program of shows

John Glenn

Dr. Wendy Ludwig

Darwin Entertainment Centre

ABN 14 009 624 248

Directors’ Report

For the Year Ended 30 June 2021

and other presentations working with a team of producers and the venue hire team to maximise utilisation and present a rich and balanced program in the Centre's theatres and ancillary spaces.

John also serves on the Board of the South Australian Circus School (Cirkidz), and now splits his time between Brisbane for his job and the family home in Adelaide where his wife and daughter live.

Appointed 8 February 2016

End of term 6 February 2022

Wendy gained a Bachelor of Arts (Anthropology & History) from the Darwin Institute Technology (later to become Charles Darwin University) in 1988. She then went on to complete a Masters of Education (Aboriginal Studies) from the University of New England (Armidale NSW) in 1995.

Wendy was awarded a doctorate Doctor of Education from the World Indigenous Nations University, Canada in 2017.

Wendy has a strong commitment to training, education and employment and has been an active and strong advocate for the creative arts industry and various community organisations in the NT, Qld and nationally.

Wendy has had a long career as a lecturer, administrator and manager across a broad range of agencies in the education, training and employment sectors over the past 40 years.

She continues to participate on local, regional and national Indigenous advisory and management boards that are committed to the strengthening, revitalisation and growth of social, economic, political and cultural well being of communities and regions.

Appointed 29 February 2016

End of term 4 November 2022

Neville Pantazis

Neville Pantazis was born and raised in Darwin and loves the place. He has a deep love of the arts, so sitting on the board of the Darwin Entertainment Centre is an absolute pleasure for him. He gained a Bachelor of Fine Arts degree at the University of Tasmania and returned to Darwin to lecture in art at what became Charles Darwin University.

Neville left the university in the late 1980s to work full time at the family business, Parap Fruit and Vegetables. The Pantazis family , under Neville's guidance, recognised that old Darwin was growing up around them and embraced the future by establishing Parap Fine Foods. With an eye for detail and fine art, Neville was an

Charlie Falanga

Darwin Entertainment Centre

ABN 14 009 624 248

Directors’ Report

For the Year Ended 30 June 2021

integral part of transforming the store into what has been called the Little Harrods and Fortnum & Mason of Darwin. Parap Fine Foods doesn't just sell gourmet food it's something of a mini art gallery and makes shopping an "experience". Neville took his inspiration for the store from Balducci's and Dean & Deluca gourmet markets in New York, Harrods in London and the David Jones Food Hall in Sydney.

The Pantazis children were encouraged to travel by their parents. Their mother Rene always said: "Travel is the best education you can give your children." It certainly was for Neville. He has partnered two art galleries in Darwin and was instrumental in turning the Greek Glenti into the major annual cultural festival that it is today. Neville believes passionately that art in all its forms enriches our lives.

Appointed 14 November 2014

End of term 4 November 2022

Charlie started up his own Commercial and Retail Commercial Brokering Business January 2018 after working in the Banking Industry for 33 years, 25 of those years in Darwin and the last 10 years for one of the big 4 Banks as the Regional Business Executive Northern Territory including Far North Queensland (From Townsville through to Cairns and the surrounding regions). He built a long standing relationship with the Darwin Business community and the Far North Queensland Business Community but with the ever changing dynamics of the Banking Industry Charlie thought the time was right to move to Astute Financial (as its only representative in the NT) and service the Darwin Business Community as an independent finance service provider, unshackled by the constraints of one Bank

Really understanding what the client needs and matching that with a Lender that can provide the appropriate service and product is what is important to Charlie. Be it a Commercial, Home or Equipment Finance need, getting it right the first time allows his clients to get on with their affairs with a minimum of fuss. His knowledge of the business environment in Darwin makes him well placed to provide educated advice to all his clients.

Born in Adelaide, Charlie moved to Darwin in 1986, he has a Degree in Economics, is married with 2 children and 2 stepchildren and his wife works with him in the broker business. Charlie also co owns Fiddlers Green with his son Anthony.

Appointed 26 February 2019

End of term 24 February 2023

Terri Layman

Born in Western Australia, Terri graduated University of Western Australia in 1984 with a Bachelor of Engineering (Civil) and after travelling overseas for several years found herself accepting an engineering job in Darwin with the Department of Transport & Works in 1987 and has resided in the Territory ever since.

ABN 14 009 624 248

Directors’ Report

For the Year Ended 30 June 2021

Terri was involved in and eventually directly project managed a multitude of civil and infrastructure capital works projects across the Northern Territory, many in remote locations and continues to practice full time engineering with a consultancy company in Darwin.

In addition to full time engineering now spanning over 35 years, Terri also developed her artistic talents across many mediums, and operated a market business In Alice Springs that produced a series of hand painted fabric garments that were successfully sold across the Territory. Terri continues to be involved in the Darwin artistic community and is a member of Tactile Arts.

Terri is a past board member of the Darwin Festival and is a keen participant in the Territory’s arts environment, believing in the enormous talent that is home grown in the Territory.

Appointed 9 March 2020 End of term 8 March 2022

(b) Meetings of Directors

During the financial year, 7 meetings of directors were held. Attendances by each director during the year were as follows:

David De Silva (Outgoing Chair)

Neville Pantazis

John Glenn

Wendy Ludwig

Charlie Falanga

Terri Layman

7. Directors’ Benefits

During or since the end of the financial year no director of the Company has received or become entitled to receive any benefit, other than a benefit included in the aggregate amount of emoluments received or due and receivable by the directors shown in the financial statements, by reason of a contract entered into by the Company or a body corporate that was related to the Company when the contract was

Directors’ Report

For the Year Ended 30 June 2021

7. Directors’ Benefits (Continued’) made when the director received, or became entitled to receive, the benefit with: a director, or a firm of which the director is a member, or an entity in which the director has a substantial financial interest

8. Members' Guarantee

The Company is limited by guarantee. If the Company is wound up, the Constitution states that each member is required to contribute a maximum of $10 each towards any outstanding obligations of the Company. At 30 June 2021, the number of members was 22 (2020: 30).

9. Indemnifying Officers or Auditors

(a) No indemnities

No indemnities have been given, during or since the end of the financial year, for any person who is or has been an employee or auditor of the Company.

(b) Insurance premiums paid for directors

The Company has paid premiums to insure each of the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the Company, other than conduct involving a wilful breach of duty in relation to the Company. The amount of the premium is $4,633 (2020: $4,139), inclusive of GST.

11 Proceedings on Behalf of Company

(a) No Leave or proceedings

No person has applied for leave of Court to bring proceedings on behalf of the Company or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any suc h proceedings during the year. Signed in accordance with a resolution of the Board of Directors:

ABN 14 009 624 248

Directors’ Declaration

The directors of the Company declare that:

1. The Company is not publicly accountable;

2 The financial statements and notes, as set out on pages 11 to 29, are in accordance with the Australian Charities and Non-for-profits Commission Act 2012 including:

(a) complying with Australian Accounting Standards Reduced Disclosure Regime and the Australian Charities and Not for profits Commission Regulation 2013; and (b) giving a true and fair view of the financial position as at 30 June 2021 and of the performance for the year ended on that date of the Company.

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

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

CloeMonte

ABN 14 009 624 248

Statement of Profit and Loss and Other Comprehensive Income

For the Year Ended 30 June 2021

Note 2021 $ 2020 $

Revenue and income 2 3,984,908 3,530,297

Administrative costs 1,111,117 1,132,032 Box office 184,525 303,625 Depreciation and amortisation expense 6 134,770 158,859 Impairment of non financial assets 11 226,500

Entrepreneurial expenses 639,714 368,418

Front of house/Bar 451,412 517,251 Marketing 332,467 163,067 Technical 514,760 577,966

Utilities 222,865 218,696

Building Repairs & maintenance 65,320 27,753 Loss on asset disposal - (1,817)

Total expenses 3,883,450 3,465,849

Operating surplus 101,458 64,448 Other comprehensive income

Total comprehensive income for the year 101,458 64,448

The Statement of Profit and Loss and Other Comprehensive Income is to be read in conjunction with the attached notes.

ABN 14 009 624 248

Statement of Financial Position

As at 30 June 2021

Note 2021 $ 2020 $

ASSETS

Current assets

Cash and cash equivalents 8 1,794,106 1,452,757

Trade and other receivables 9 90,910 34,696 Inventories 10 31,927 34,044

Total current assets 1,916,943 1,521,497

Non-current assets Property, plant and equipment 11 693,377 941,390 Intangible assets 12 31,502 30,658 Total non-current assets 724,879 972,048

TOTAL ASSETS 2,641,822 2,493,545

LIABILITIES

Current liabilities

Trade and other payables 13 1,022,240 995,458 Employee benefits 14 97,105 77,068

Total current liabilities 1,119,345 1,072,526

TOTAL LIABILITIES 1,119,345 1,072,526 NET ASSETS 1,522,477 1,421,019

EQUITY

Accumulated surplus 1,522,477 1,421,019

TOTAL EQUITY 1,522,477 1,421,019

The Statement of Financial Position is to be read in conjunction with the attached notes.

ABN 14 009 624 248

Statement of Changes in Equity

For the Year Ended 30 June 2021

2021

Accumulated Surplus $

Total $

Balance at 1 July 2020 1,421,019 1,421,019

Total comprehensive income for the year 101,458 101,458

Balance at 30 June 2021 1,522,477 1,522,477

2020

Accumulated Surplus $ Total $

Balance at 1 July 2019 1,356,571 1,356,571

Total comprehensive income for the year 64,448 64,448

Balance at 30 June 2020 1,421,019 1,421,019

The Statement of Changes in Equity is to be read in conjunction with the attached notes.

ABN 14 009 624 248

Statement of Cash Flows

For the Year Ended 30 June 2021

Note 2021 $ 2020 $

Cash flow from operating activities: Receipts from customers 2,372,018 2,028,348 Payments to suppliers and employees (3,477,086) (3,652,367) Operating grants received 1,550,824 1,550,738 Interest received 5,852 5,074

Net cash from/(used in) operating activities 16 451,608 (68,207)

Cash flow from investing activities: Acquisition of property, plant and equipment (110,259) (187,554) Net cash used by investing activities (110,259) (187,554)

Net increase/(decrease) in cash and cash equivalents 341,349 (255,761) Cash and cash equivalents at beginning of year 1,452,757 1,708,518 Cash and cash equivalents at end of year 8 1,794,106 1,452,757

The Statement of Cash Flows is to be read in conjunction with the attached notes.

Darwin Entertainment Centre

Statement of Significant Accounting Policies

For the Year Ended 30 June 2021

1 Statement of Significant Accounting Policies

(a) General information

Darwin Performing Arts Centre is a Company limited by guarantee, incorporated and domiciled in Australia. The Company trades as Darwin Entertainment Centre.

The following is a summar y of the significant accounting policies adopted by the Company in the preparation of the financial statements

The registered office of the Company is: Darwin Entertainment Centre 93 Mitchell Street Darwin NT 0800

(b) Basis of Preparation

In the opinion of the directors, the Company is not publicly accountable. The Company applies Australian Accounting Standards Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010-2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

The financial statements are Tier 2 general purpose financial statements that have been prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements, adopted by the Australian Accounting Standards Board and the Australian Charities and Not for profits Commission Acts 2012. The Company is a not for profit company for the purpose of preparing the financial statements.

The financial statements have been prepared on a historical cost basis. The concept of accrual accounting has been adopted in preparation of the financial statements. The accounting policies have been consistently applied, unless otherwise stated.

(c) Functional and presentation currency

The financial statements are presented in Australian dollars, which is the Company’s functional currency.

Statement of Significant Accounting Policies

For the Year Ended 30 June 2021

1 Statement of Significant Accounting Policies (continued)

(d) Use of estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively

(e) Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on an average basis.

(f) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.

(i) Plant and equipment

Plant and equipment is measured on the cost basis less depreciation and impairment losses. Assets purchased for less than $300 during the year have been directly expensed If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in the Statement of Profit and Loss and Other Comprehensive Income.

(ii) Depreciation

All fixed assets are depreciated on a straight line basis over their useful lives, commencing from the time the asset is held ready for use.

The estimated useful lives used for each class of depreciable assets are: Class of Asset

Plant and Equipment 2 to 5 years Office Furniture and Equipment 1 to 5 years Motor Vehicles Building Improvement 4 years 10 years

The assets' residual value and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

Statement of Significant Accounting Policies

For the Year Ended 30 June 2021

1 Statement of Significant Accounting Policies (continued)

(f) Property, Plant and Equipment (continued)

(iii) Impairment

An asset is said to be impaired when the asset’s carrying amount exceeds its recoverable amount.

Non-current physical assets are assessed for indicators of impairment on an annual basis of whenever there is an indication of impairment. If an indicator of impa irment exists, the Company determines the recoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.

In certain situations, an impairment loss may be subsequently reversed. Where an impairment loss is reversed, the carrying amount of the asset is increased to the revised recoverable amount.

Impairment losses are recognised as expenses in the statement of profit and loss. A reversal of impairment losses is recognised as income in the statement of profit and loss.

(g) Employee Benefits

Employee benefits liabilities are recognised for employee benefits such as wages and salaries, annual leave and long service leave in respect of services provided by the employee up to the reporting date. Liabilities for employee benefits are assessed at each reporting date. Where it is expected that the leave will be paid in the next twelve months the liability is treated as a current liability. Otherwise the liability is treated as non current.

The superannuation expense for the reporting period is the am ount of the contribution the Company makes to the superannuation plan which provides benefits to its employees.

(h) Income Tax

No provision for income tax has been raised as the Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997

(i) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the Statement of Financial Position are shown exclusive of GST.

Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flow.

Statement of Significant Accounting Policies

For the Year Ended 30 June 2021

1 Statement of Significant Accounting Policies (continued)

(j) Revenue and income

(i)

Grant income

The Company obtains income via government grants. Enforceable government grants with sufficiently specific performance obligations are recognised as income as these performance obligations are met.

Where grants do not meet the criteria as above, income is recognised upon receipt of funding.

(ii) Sponsorship

income

Cash sponsorship is taken to income in the period to which it relates. The total value of in kind sponsorship is booked to income and expenditure as it is used.

(iii)

Interest income

Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate.

(iv) Performance revenue

Only revenue attributable to performances staged by the Company is reflected in gross terms in operating revenue. Commission on ticket sales and venue hire are recognised in the case of Playhouse, Studio Theatre and other venue performances, at the completion of a performance or season.

Receipts from ticket sales that derives from the activities of commercial promoters and other external parties hiring the Centre is held by the Company in a designated bank account recorded in the asset ledger. All such receipts are also recorded as a corresponding liability on the Statement of Financial Position, resulting in a nil effect on net assets

All revenue is stated net of the amount of GST.

(k) Long Term Repairs and Maintenance

In 1996, an agreement was reached between the City of Darwin and the Northern Territory Government, whereby the Department of Infrastructure, Planning and Logistics would supervise and be responsible for the payment of the long term repairs and maintenance of the building.

(l) Economic Dependency

The Company receives significant grant funds from the City of Darwin and the Northern Territory Government. Funding for the 2020 21 financial year has been received. Funding for the 2020 21 to 2023 24 financial years has been confirmed by both major funding bodies. The financial report has been prepared on a going concern basis on the expectation that such funding will continue.

(m) Sponsorship Provided Community Support

From 1 July 2014, the accounting policy was changed so that for community support, provided by waiver of standard charges, for venue hire for Front of House and technical services neither the income or discount expense is recorded in the financials.

Statement of Significant Accounting Policies

For the Year Ended 30 June 2021

1 Statement of Significant Accounting Policies (continued)

(n) Financial Instruments

Financial Assets:

Recognition and initial measurement

Trade receivables and debt securities issued are initially recognised when they are originated. Financial assets and financial liabilities are recognised on the Company’s Statement of Financial Position when the Company becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at Fair Value Through Profit or Loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at: amortised cost; Fair Value Through Other Comprehensive Income (FVOCI) or FVTPL.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

All financial assets not classified as measured at amortised cost or FVOCI are measured at FVTPL.

Financial assets Business model assessment:

The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.

Financial assets Subsequent measurement and gains and losses:

Financial assets at FVTPL

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.

Statement of Significant Accounting Policies

For the Year Ended 30 June 2021

1 Statement of Significant Accounting Policies (continued)

(o) Financial Instruments (continued)

Financial assets at amortised cost

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Financial assets at FVOCI

These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Financial Liabilities:

Loans and payables are financial liabilities initially recognised at fair value less any directly attributable transaction costs as represented by the amounts to be paid in the future for goods or services received. Loans are initially recognised at fair value less any directly attributable transaction costs. Subsequent to initial recognition, loans are measured at amortised cost using the effective interest method.

Derecognition

Financial assets

The Company derecognises a financial asset when the contrac tual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred and no control is retained of the financial asset.

Financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognises a financial liability when its terms are significantly modified. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non cash assets transferred or liabilities assumed) is recognised in profit or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

Statement of Significant Accounting Policies

For the Year Ended 30 June 2021

1 Statement of Significant Accounting Policies (continued)

(p) Impairment of Assets

Non derivative financial assets

Financial instruments

The Company recognises loss allowances for Expected Credit Losses (ECLs) on financial assets measured at amortised cost

The Company measures loss allowances at an amount equal to lifetime ECLs

Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward looking information.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Company considers a financial asset to be in default when:

• the borrower is unlikely to pay its credit obligations to the Company in full, without recourse by the Company to actions such as realising security (if any is held); or

• the financial asset is more than 90 days past due.

Measurement of ECLs

ECLs are a probability weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive).

ECLs are discounted at the effective interest rat e of the financial asset.

Presentation of allowance for ECL in the statement of financial position

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.

Write-off

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.

Statement of Significant Accounting Policies

For the Year Ended 30 June 2021

1 Statement of Significant Accounting Policies (continued)

(q) Leases

The Company elects to measure Right of Use (ROU) asset arising from the application of AASB 16 Leases, to ‘peppercorn’ or concessionary leases at initial recognition at cost, in accordance with AASB 2018 8 Amendments to Australian Accounting Standards Right of Use Assets of Not for Profit Entities.

The lease over Lot 5355 Town of Darwin, Unit 11 Unit Plan 89/025 between City of Darwin and Darwin Performing Arts is to provide the premises for the Company to engage in its principal activities. The Company is significantly dependent on the venue to the conduct of a public performing arts and entertainment centre and ancillary purposes.

The term of lease is three years and the rent is AUD $1 per annual. Under the terms of the lease there is an option to renew the lease for two further three years under the same terms and conditions.

ABN 14 009 624 248

Notes to the Financial Statements

For the Year Ended 30 June 2021

Note 2021 $ 2020 $

2. Revenue and Income

Operating activities

Grant income 3 1,550,824 1,730,254 Sponsorship 4 15,301 7,788 Interest 5,852 5,074 Venue rental 202,420 292,729 Marketing services 13,251 Technical 225,316 280,603

Front of House 369,239 321,123 Box office 319,049 254,676

Entrepreneurial 5 587,506 430,806 Sundry (includes government stimulus support) 709,401 193,993

Total revenue and Income 3,984,908 3,530,297

3. Grant Income

City of Darwin 680,000 680,000 Northern Territory Government 675,060 675,060 Theatrical Infrastructure Funding - 179,516 Other 195,764 195,678

Total grant income 1,550,824 1,730,254

Cash & In kind Sponsorships 15,301 7,788

Total sponsorship income 15,301 7,788

Gross Ticket Sales and Co presenter Income 587,506 430,806 Total Entrepreneurial Income 587,506 430,806

Depreciation

Office furniture and equipment 17,946 12,476

Property, plant and equipment 83,885 128,654

Motor vehicles

Building improvements 6,432 10,117 10,319 2,938

Total depreciation 118,380 154,387

Amortisation

Intangible assets 16,390 4,472

Total amortisation 16,390 4,472

Total depreciation and amortisation expenses 134,770 158,859

ABN 14 009 624 248

Notes to the Financial Statements

For the Year Ended 30 June 2021

Note 2021 $ 2020 $

7. Employee entitlements

Salaries and employee benefits 1,734,057 1,875,174

Total salaries and employee benefits 1,734,057 1,875,174

8. Cash and Cash Equivalents

Cash on hand 452 152

Bank balances 1,200,454 301,786 Short term deposits 593,200 1,150,819

Total cash and cash equivalents 1,794,106 1,452,757

9. Trade and Other Receivables

Trade receivables

Other receivable 61,065 24,349 13,163Prepayments 5,496 21,533

Total trade and other receivables 90,910 34,696

Trade receivables are carried at nominal amounts less the expected credit loss provision.

10. Inventories

Bar stock 27,580 19,810 Technical inventory 4,347 14,234

Total inventories 31,927 34,044

ABN 14 009 624 248

Notes to the Financial Statements

For the Year Ended 30 June 2021

11. Property Plant and Equipment

Plant and equipment

2021 $ 2020 $

At cost 1,369,095 1,332,001 Less accumulated depreciation (837,618) (527,233)

Total plant and equipment 531,477 804,768

Office furniture and equipment

At cost 179,616 139,644

Less accumulated depreciation (122,564) (104,618)

Total office furniture and equipment 57,052 35,026

Motor vehicles

At cost 39,824 39,824 Less accumulated depreciation (23,197) (16,765)

Total motor vehicles 16,627 23,059

Building improvements

At cost 101,276 39,824 Less accumulated depreciation (13,055) (2,938) Total building improvements 88,221 78,537

Total property, plant and equipment 693,377 941,390

(a) Reconciliation of carrying amount as at 30 June 2021

Plant and Equipment

Office Furniture and Equipment Motor Vehicles Building Improvements Total $ $ $ $ $

Balance at the beginning of the year

804,768 35,026 23,059 78,537 941,390 Additions 37,094 39,972 - 19,801 96,867 Impairment (226,500) - - - (226,500)

Depreciation expense (83,885) (17,946) (6,432) (10,117) (118,380)

Carrying amount at the end of year 531,477 57,052 16,627 88,221 693,377

ABN 14 009 624 248

Notes to the Financial Statements

For the Year Ended 30 June 2021

(b) Reconciliation of carrying amount as at 30 June 2020 Plant and Equipment

Office Furniture and Equipment

Motor Vehicles Building Improvements Total $ $ $ $ $

Balance at the beginning of the year 797,998 21,648 66,106 52,533 938,285 Additions 135,425 25,854 28,942 190,221 Disposal (32,728) (32,728) Depreciation expense (128,655) (12,476) (10,319) (2,938) (154,388)

Carrying amount at the end of year 804,768 35,026 23,059 78,537 941,390

12. Intangible Assets 2021 2020

Computer software $ $

At cost 133,224 115,989 Accumulated amortisation (101,722) (85,331)

Total Intangibles 31,502 30,658

(a) Movements in Carrying Amounts

Year ended June 30, 2021

Computer Software $

Opening balance 30,658 Additions 17,234 Amortisation (16,390)

Balance at June 30, 2021 31,502

Year ended 30 June 2020

Opening balance 5,070 Additions 30,060 Amortisation (4,472)

Balance at 30 June 2020 30,658

ABN 14 009 624 248

Notes to the Financial Statements

For the Year Ended 30 June 2021

13. Trade and Other Payables 2021 2020

$ $

Trade payables 375,856 207,116

Amounts received in advance 40,108 442,438

Hirers' control 558,065 139,751

Other payroll liabilities 48,211 100,468

Entrepreneurial show net advance payments - 105,685

Total Trade and other payables 1,022,240 995,458

Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Company. Trade liabilities are normally settled on 30 day terms.

14. Employee benefits

Total current employee benefits 97,105 77,068

Short term employee benefits as obligations expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service

15. Related party transactions

(a) Directors

For the year ended 30 June 2021, Hebron Lawyers (David de Silva) provided legal services to the Company of $15,300 at no charge.

Other than the above, there were no other transactions during the year between any director and the Company other than on normal commercial terms except as noted in (b) below.

(b)

Complimentary Tickets

Directors are eligible to receive complimentary tickets to shows at the Centre. The directors who have taken advantage of this are listed below, along with the value of the tickets received.

2021 $

2020 $

David de Silva 366 844

Neville Pantazis 854 1,495

Terri Layman 32

Wendy Ludwig 584 -

John Glen 15

Charlie Falanga -

Total 1,851 2,339

ABN 14 009 624 248

Notes to the Financial Statements

For the Year Ended 30 June 2021

(c) Key management compensation

Key management personnel of the Company are those persons having authority and responsibility for planning, directing and controlling activities of the Company. The aggregate compensation of key management personnel of the Company is set out below:

2021 $ 2020 $

Short term employee benefits 184,354 357,004 Post employment benefits 17,056 23,834

Total 201,410 380,838

16. Cash Flow Information

Reconciliation of Cash Flow from Operations with Surplus/(Deficit)

2021 $ 2020 $ Surplus 101,458 64,448

Adjustments

Non cash flows in surplus Depreciation 118,380 154,388 Impairment to non financial assets 226,500 Amortisation for software 16,390 4,472

Changes in operating assets and liabilities: (Decrease)/Increase in trade and other receivables (60,055) 53,863 Increase in other assets 55,782 Decrease/(Increase) in inventories 2,116 (3,972) Increase/(Decrease) in trade payables and accruals 26,782 (403,027)

Increase in employee benefits 20,037 5,839

Net cash flows from operating activities 451,608 (68,207)

17. Centre Operational Costs

In addition to the operational costs contained within the Company’s financial statements, the City of Darwin and the Northern Territory Government jointly maintain the building and fixtures used by the Company in its operations. A funding pool of $120,000 per annum from each source is managed by a Project Control Group (PCG) within NT Government. The PCG has representation from NT Government, City of Darwin and the Company. The PCG provides funding and oversight to all maintenance associated with the building and fixtures not owned by the Company. City of Darwin provides the building and fixtures at no cost to the Company. Additional reviews and consultancies conducted for the Company on behalf of the City of Darwin were also funded by the City of Darwin.

ABN

Notes to the Financial Statements

For the Year Ended 30 June 2021

18. Members' Guarantee

The Company is limited by guarantee. If the Company is wound up, the Constitution states that each member is required to contribute a maximum of $10 each towards any outstanding obligations of the Company. At 30 June 2021, the number of members was 22 (2020: 30).

19. Financial instruments Fair values and risk management

(a) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The company's approach to managing liquidity is to ensure it maintains sufficient cash holding to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's reputation.

(b) Interest rate risk

The Company manages its interest rate risk by ensuring cash is invested in short term deposits at a fixed interest rate with reputable financial institutions The Company does not have any loans.

20 Subsequent events

No major matters or circumstances, have arisen since the end of the financial year which significantly affect or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years

Independent Auditor’s Report

Opinion

We have audited the Financial Report of Darwin Performing Arts Centre trading as Darwin Entertainment Centre (the Company).

In our opinion, the accompanying Financial Report of the Company is in accordance with the Division 60 of the Australian Charities and Not for profits Commission (ACNC) Act 2012, including:

• giving a true and fair view of the Company's financial position as at 30 June 2021 and of its financial performance for the year ended on that date; and

• complying with Australian Accounting Standards Reduced Disclosure Requirements and Division 60 of the Australian Charities and Not for profits Commission Regulation 2013

Basis for opinion

The Financial Report comprises:

• Statement of financial position as at 30 June 2021

• Statement of profit or loss and other comprehensive income, Statement of changes in equity, and Statement of cash flows for the year then ended

• Notes including a summary of significant accounting policies

• Directors’ declaration

We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report.

We are independent of the Company in accordance with the ethical requirements of the ACNC Act 2012 and the ethical requirements of Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code

To the members of Darwin Performing Arts Centre trading as Darwin Entertainment Centre

Responsibilities of the Directors for the Financial Report

The Directors are responsible for:

• preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards Reduced Disclosure Requirements and the ACNC.

• implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error

• assessing the ability of the Company to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report

Our objective is:

• to obtain reasonable assurance about whether Financial report as a whole is free from material misstatement, whether due to fraud or error; and

• to issue an Auditor’s Report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Financial Report

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit

A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf.

This description forms part of our Auditor’s Report.