2017 Annual Report
Celebrating 50 Years
Board Our Board of Directors Board Chair Jeanette Ward Board Deputy Chair Carol Benson Board Members Sarah Bartak Jo Beaumont Steven Black Nancy Calò Bernard Depasquale Laura Douglas Regan Engelhardt Shannon Gilmore Alice Hanna Michelle Wright
Our Team Chief Executive Officer Dorian Jones Programs and Administration Manager Madeleine Cowell Operations Manager Qian Ying Ong Marketing and Development Manager Alice Currie Programs and Administration Coordinator Emily Holt Operations Coordinator Tim Duncan Marketing and Development Coordinator Nina Dubecki* *commenced 2018
Melbourne Youth Music trading as Melbourne Youth Orchestras ABN 54 089 059 805 ABC Southbank Centre 120–130 Southbank Boulevard Southbank VIC 3006 (03) 9376 8988 myo@myo.org.au www.myo.org.au
Contents About us
02
Our Philosophy
03
Report from the Board Chair and Chief Executive Officer
04
Vale Dr Alexandra Cameron MBE
06
Summer School
08
Ensemble Program
10
Ensemble Reports
12
Our Partnership with the Australian World Orchestra
26
Moments of Beauty at State Library Victoria
28
Government House Reception
28
Open Day
28
Community Projects
30
Virtuosity Concerto Competition
32
Teacher Professional Development Program
33
Financial Report
34
Thank you
60
About us Melbourne Youth Orchestras has been a leader in Victorian music education since 1967. Our purpose is to enrich young lives through the power of music. We share our passion and expertise by bringing young people together for the joy of music. We believe that music inspires young people to reach their potential, and that a commitment to excellence is the foundation for success. We recognise that our heritage and alumni are integral to our future achievements as we continue to build our reputation on the solid foundation laid over our first five decades. We have great partnerships in place to amplify our impact, and we work tirelessly to ensure that no young learner is ever excluded based on disadvantage. We know that the most effective teaching is always centred on learners’ needs, and that a love of music motivates life-long learning and participation. At Melbourne Youth Orchestras, creativity is unleashed through inspiration and exploration in a vibrant learning community. 02–03
Our Philosophy
Our Focus Share our passion
Our Purpose Enriching young lives through the power of music
Our Spirit Coming together for the joy of music
Our Beliefs Music inspires young people to reach their potential A commitment to excellence is the foundation for success Creativity is unleashed through inspiration and exploration A love of music motivates life-long learning and participation Effective teaching is centred on learners’ needs Great partnerships amplify our impact Our heritage and alumni are integral to our future achievements No young learner should be excluded based on disadvantage
Our Attributes Inspirational Vibrant Connected Engaging Inclusive Passionate Creative Excellent
Our Greatest Imaginable Challenge All places in all ensembles are filled, all of the time
Report from the Board Chair and Chief Executive Officer
Board Chair Jeanette Ward and CEO Dorian Jones at MYO’s 2017 Gala Concert.
In 2017 we celebrated our 50th birthday. Special events were included in an ambitious program that honoured our past and set the benchmark for the next 50 years. We were especially delighted with: • Our Summer School, which reached 725 enrolments. • A reception at Government House in recognition of the contribution MYO has made to Victoria’s cultural fabric since 1967. • A new work commission for our esteemed flagship, the Melbourne Youth Orchestra. • Performing our flagship MYO concerts and our Virtuosity Concerto Grand Final at the Melbourne Recital Centre. • Special appearances by alumni conductors and soloists throughout the year. • Our education partnership with the Australian World Orchestra. 04–05
• Our Gala Concert at the Melbourne Town Hall which brought our entire ensemble family of over 450 students together in a joyful celebration of youth music. Two other very important achievements in 2017 were moving our administration base to the newly developed ABC Southbank Centre and cementing a new education partnership with the Melbourne Symphony Orchestra. Together these developments will enable our program’s continued growth and development. The year was also one of great loss for MYO with the passing of our founder Dr Alexander Cameron, aged 107, and an inspiration for all of us. Despite having invested significantly in the office relocation and 50th birthday celebrations, we achieved a small surplus of $5,918, bringing our net assets to $949,938.
MYO Board at Government House, L–R Dorian Jones (CEO), Regan Engelhardt, Shannon Gilmore, Laura Douglas, Carol Benson, Michelle Wright, Alice Hanna, the Hon. Linda Dessau AC (Governor of Victoria), Sarah Bartak, Mr Anthony Howard QC, Bernard Depasquale, Jeanette Ward (Board Chair), Jo Beaumont, Steven Black.
The association’s financial health and sound policies underpin the board’s plans for further growth and will allow deeper investment in organisational development, and amazing musical and educational experiences. The success of our program is possible thanks to our many supporters including the Department of Education and Training Victoria, which has funded us since our inception, the University of Melbourne Faculty of Fine Arts and Music, whose Southbank premises have been the home of MYO since the 1970s, and our philanthropic supporters, whose generosity has enabled us to grow and reach more young people across Victoria: The Newsboys Foundation, The Kimberly Foundation, The Vizard Foundation, Anna Chmiel Memorial Fund, Ramses Foundation, The Marian and E.H. Flack Trust, Collier Charitable Fund, and Youth Music Foundation.
In 2017 we also received several significant project grants, from City of Melbourne, Creative Victoria and the Australia Council for the Arts. A new two-year grant from the Helen Macpherson Smith Trust has enabled MYO to employ a full-time development professional for the first time, leading to enhanced donor stewardship and new revenue streams. 2017 was a huge year for MYO, and thanks are due to the passionate and hard-working MYO team, board and committee members, supporters, families, educators and students for ensuring that MYO remains a vibrant organisation which inspires young musicians. We look forward to working with our partners and community in 2018 and beyond, building on the wonderful legacy of our past 50 years in pursuing our purpose of enriching young lives through the power of music.
Vale Dr Alexandra Cameron MBE “She always believed that young people respond to challenge and leadership, and this she gave.” In 2017 we were saddened by the passing of our founder, Dr Alexandra Cameron MBE, aged 107. Dr Cameron changed the face of music education in Victoria. With a background as a lecturer in music education at the University of Melbourne, she became the State’s first school music inspector in 1966, with responsibility for the total development of music education in secondary schools, and an interest in group performance. In 1967, along with Victoria’s original team of specialist music educators, she established the Secondary Schools Concert Committee, now Melbourne Youth Orchestras, to provide ensemble music performance opportunities for school students. Concerts were held at the Melbourne Town Hall in 1967, 1968 and 1969. She took the organisation from its infancy and oversaw the introduction of the State Secondary Schools Orchestra in 1970 which was renamed Melbourne Youth Orchestra in 1971. The Melbourne Holiday Music
06–07
Camp was established in 1972, and by 1974 The Melbourne Youth Symphonic Band, the Melbourne Youth Choir, and the Percy Grainger Youth Orchestra had all formed. The rapid expansion of the program, and its enduring success, are testament to Dr Cameron’s devotion to furthering opportunities for young musicians. She had boundless energy and worked tirelessly to provide inspirational musical and cultural opportunities for young musicians. Nothing was impossible—rather, she knew only “degrees of impossibility.” She always believed that young people respond to challenge and leadership, and this she gave. A commitment to excellence is the foundation for success. Dr Cameron’s commitment endures at MYO as we continue to share her passion for enriching young lives through the power of music.
Dr Alexandra Cameron.
Summer School
9–14 January 2017
The annual Summer School brought 725 young musicians together to work with some of Australia’s best conductors and tutors. Summer School included a range of musical and social activities in a fun and collaborative atmosphere, culminating in performances at Federation Hall, and the grand Melbourne Town Hall. The residential camp held alongside Summer School expanded and we were delighted to host 43 regional secondary students in Melbourne, enjoying Summer School each day and a range of cultural and social activities each evening.
08–09
MYO 2017 Summer School participants.
MYO 2017 Summer School participation 95 Symphony Orchestra 90 Philharmonic Orchestra 50 Senior Strings 71 String Orchestra 77 Sinfonietta 55 Camerata 53 Symphonic Wind Band 63 Concert Band 70 Intermediate Band 38 Junior Band 19 Big Band 29 Jazz Improvisation 10 Conductor Development Program 5
Arts Administration
Ensemble Program The MYO Ensemble Program’s purpose is to enable student participation in co-curricular musical education by providing access to specialised staff, resources and facilities beyond that which is available at school. Young musicians grow through participation in high-calibre instrumental music ensembles, and through belonging to a musical community of practice. Students enter the program from the age of eight, often staying until they reach tertiary level. They progress through a finely calibrated sequence of ensembles comprising two symphony orchestras, four string orchestras and three symphonic bands. MYO 2017 Ensemble Program participation 67 Melbourne Youth Orchestra 69 Percy Grainger Youth Orchestra 53 Melbourne Youth Chamber Strings 55 Melbourne Youth Strings 54 Alexandra Cameron Strings 54 Melbourne Youth Junior Strings 53 Melbourne Youth Wind Symphony 47 John Antill Youth Band 33 Junior Concert Band
10–11
Junior Concert Band.
During 2017, the flagship Melbourne Youth Orchestra presented three programs in the Melbourne Recital Centre’s Elisabeth Murdoch Hall, and a culminating performance at the Gala Concert at Melbourne Town Hall. To mark the 50th anniversary, MYO’s 2017 program featured guest alumni as soloists and conductors, and a new celebratory commission by composer Graeme Koehne. A Gala Concert held at Melbourne Town Hall on 12 November 2017 brought together all nine of MYO’s ensembles for an extraordinary public concert to conclude the 50th anniversary celebrations. The concert commenced with 216 students from all four string ensembles combining for a presentation of Vaughan
Williams’ Concerto Grosso, a grand statement musically, artistically and logistically. After presentations by individual string orchestras, symphonic bands, and the Percy Grainger Youth Orchestra, the Melbourne Youth Orchestra concluded the Gala Concert with an energetic performance of Shostakovich’s Festive Overture and Marquez’ Danzón No. 2. 2017 also saw the introduction of a new concert band to our program to accommodate increasing demand for places. The Junior Concert Band came together under the leadership of band director Erin Ellenburg, rapidly expanding from 21 to 33 members. The band gives beginner-level players an opportunity to make friends and experience the joy of playing in a band together for the first time.
Ensemble Reports
12–13
Melbourne Youth Orchestra
Steven Hillinger, Chief Conductor
Melbourne Youth Orchestra had a very successful year of music making in 2017 which included performances at the State Library of Victoria as well as an exciting flagship concert season. We continued to focus on building a more cohesive ensemble with members working on listening and achieving a balanced sound. The selection of appropriately challenging repertoire has been a very important part of this process. The highlight of the year was the ‘New Worlds’ concert in July which featured a newly commissioned work by Australian composer Graeme Koehne and the return of Josh Rogan, an MYO alumnus, to perform the Lovelock Trumpet Concerto. I acknowledge and congratulate all MYO members for their commitment, dedication, persistence and success throughout the year.
Percy Grainger Youth Orchestra
Pat Miller, Conductor
2017 was a dynamic and exciting year for Percy Grainger Youth Orchestra. The orchestra participated in the Ensemble Program concerts in May and November, presenting a breadth of repertoire from classical masterworks designed to help them understand the development from opera to film music. Programs included overtures by Weber, Wagner, Humperdinck and Australia’s Marshall-Hall alongside TV scores by George Dreyfus (who attended the performance) as well as famous scores of John Williams for the Harry Potter films. The Orchestra accompanied the Virtuosity Program in concertos by Bohme, Weber and Reinecke with talented soloists, for the first time in a stand-alone concert streamed live. The Orchestra undertook three specific projects during the year. The first, in honour of MYO’s birthday, was a workshop of Peter Sculthorpe’s epoch-making Sun Music 1. The Orchestra also collaborated with Phunktional to record songs for the soundtrack of a mini series produced by the Pacific Islander community in Robinvale in an exciting session in the ABC’s Iwaki Auditorium. The biggest project was a performance, at the new Peter MacCallum Cancer Centre, of Australian music commissioned by the HUSH foundation. In a year of terrific learning and camaraderie the Orchestra deepened their knowledge and appreciation of music and discovered the powerful role they can play in the wider community.
14–15
Melbourne Youth Wind Symphony
Rick Plummer, Conductor
2017 was an outstanding and consistent year for Melbourne Youth Wind Symphony, as demonstrated by our performances. MYWS presented great repertoire throughout our programs, including Blue Shades by Frank Ticheli, Green Bushes by Percy Grainger, Slava by Leonard Bernstein and culminating with Traveler by David Maslanka at the Gala Concert. Our performance of Traveler was exceptional and demonstrated the improvement of the ensemble and individuals throughout the year. This piece is one of the most demanding works in wind ensemble literature and MYWS performed it well above my expectations when choosing the piece. The confidence, student pride and sense of team that grows from performances like this are profound and memorable. Our warm ups and ensemble training focus on developing the perceptual abilities associated with ensemble playing and creating a cohesive group sound, internal pulse and other essential skills. Training the ensemble to respond to the expression that the conductor is communicating through gestures allows performances to convey genuine emotion and not be a duplication of drilled rehearsals. There are many members of MYWS who will one day conduct their own bands. My goal is that as a result of their time under my direction they will have been exposed to enough great repertoire and rehearsal techniques to provide them with a model to start their conducting journey.
John Antill Youth Band
Joe O’Callaghan, Conductor
In 2017, the John Antill Youth Band worked towards several goals: • Creating a musical environment where students were challenged to improve all technical and musical aspects of their performance craft on both an individual and ensemble level. • Discovering challenging, quality wind band music appropriate to the level of the ensemble and rehearse it to a high level. • Enjoying the experience of performing quality music in a large ensemble in public. • Forming lasting friendships and develop skills in working collaboratively through participation in John Antill Youth Band. These goals were explored through structured weekly rehearsals. Strategies were developed both in the large ensemble on a Saturday morning and through strategies designed and discussed to be applied in regular home practice. A highlight of the year was the way students accepted the challenge of the music presented to them at rehearsals and how they were willing to explore several strategies for self-improvement and for the collective improvement of the ensemble. All students who participated in JAYB in 2017 are to be commended for their personal and musical contributions throughout the year. 16–17
Junior Concert Band
Erin Ellenburg, Conductor
In 2017 our focus was on learning foundational ensemble musical skills such as internalised pulse, breathing together, shaping phrases, matching style, blend, and balance. We also worked on social ensemble skills such as managing attention and distraction, following direction, working collaboratively with others for the benefit of the group, and learning how to prepare for rehearsals. We did this by playing pulse, breathing, and tempo games, using ’easy’ exercises in a method book as a means of practicing these ensemble skills, reading through a wide variety of repertoire to have many chances to implement these skills, and giving immediate peer feedback and engaging in self and group reflection opportunities. The ensemble’s great achievement for the year was building a sense of group cohesion. They went from being a collection of random players to being Junior Concert Band! They learned to work together, to help and encourage each other, to show patience and self-control, to show up to rehearsals having prepared their part, to demonstrate a positive attitude even when faced with frustration, and to think of each other as friends and bandmates. I commend all the young musicians in my ensemble for their hard work in rehearsals and at home, for their dedication in sacrificing their Saturdays to their art, and for always having a sense of humour and a welcoming spirit!
Melbourne Youth Chamber Strings
David Le Guen, Conductor
Melbourne Youth Chamber Strings’ focus in 2017 was to learn the underlying techniques the members would need to progress to Percy Grainger Youth Orchestra. As the basis of all good orchestral playing comes from a solid classical technique, at least one piece of music composed by an ‘early romantic’ composer was performed in each of the first two concerts. This gave the members of MYCS an insight into how the classical technique permeates itself in the works of Mendelssohn and Schubert. Without a doubt the ensemble’s greatest achievement was performing the Concerto Grosso by Vaughan Williams at the Gala Concert. The concertino part was the most challenging music the members of the ensemble played all year and they are to be commended for their achievements.
18–19
Melbourne Youth Strings
Amberley Bremner, Conductor
In 2017, Melbourne Youth Strings focused on broadening our individual and collective musical, technical and teamwork skills. We did this by learning a wide variety of music to expand our appreciation of distinctive styles, by learning about listening and analysing our playing via reflection, and by engaging in lots of listening to different interpretations in order to create our own. The ensemble’s great achievement for the year was playing our own arrangement of Fight Song/Amazing Grace with pipes and drums. We learnt the music from a recording and then created our own arrangement, developing aural skills. We then performed the work with pipes and drums at the Victorian Schools Music Festival, winning the Platinum Award in the most advanced Senior String Orchestra section. I commend all the young musicians in my ensemble for working incredibly hard as a team, including every member of the ensemble who achieved their very best sound, in order to perform challenging repertoire.
20–21
Amberley Bremner conducts Melbourne Youth Strings.
Alexandra Cameron Strings
Sarah Busuttil, Conductor
In 2017 our learning goals ranged from understanding gesture and feeling pulse, to more advanced skills such as learning to control articulation, dynamics and tonal blend. We explored a wide variety of musical styles in our concert preparations, and the ensemble’s great achievement for the year was performing with over 200 string players in a grand presentation of Vaughan Williams’ Concerto Grosso at the Gala Concert. During 2017 MYO’s founder and our namesake, Dr Alexandra Cameron, passed away at age 107. It was a great honour for the Alexandra Cameron Strings to be able to perform at a public memorial held for Dr Cameron. Alexandra Cameron Strings are to be commended for their diligence, commitment and growing love for ensemble performance at Melbourne Youth Orchestras.
22–23
Melbourne Youth Junior Strings
Kieran Casey, Conductor
In 2017 our focus was on learning new skills in string playing for the best possible performance outcomes for all the children in our care. We did this by reflecting on some of our goals from the previous years and setting achievable goals for the current cohort of students. Many basic techniques are practiced in a fun environment so that the students feel comfortable stepping outside their comfort zones. A few examples of these are: bowing techniques (bow speed, bow economy, bowing styles), suggestions of practice techniques and many others. Melbourne Youth Junior Strings’ achievements for the year were: first, accomplishing success in a diverse range of performances, both from a technical and stylistic point of view and of course, secondly, contributing to the 50th anniversary concert in the performance of the Vaughan Williams Concerto Grosso. I commend all the young musicians in my ensemble for their willingness to engage in a challenging year of music-making.
24–25
Performing Vaughan Williams’ Concerto Grosso at the MYO Gala Concert.
Our Partnership with the Australian World Orchestra
MYO with Australian World Orchestra MYO Alumni.
Throughout 2017 we worked in partnership with the esteemed Australian World Orchestra. We hosted four live-streamed masterclasses featuring AWO musicians Lyndon Watts (bassoon), Lisa Grosman (viola), Tristram Williams (trumpet) and Bernadette Harvey (piano).
“It was really inspirational to be mentored by someone who works in one of the world’s greatest orchestras.” —Emma Winestone, violin 26–27
Coinciding with the AWO’s Melbourne concert on Saturday 29 July, the extraordinary musicians of the AWO tutored the sections of our flagship orchestra. AWO world-leading musicians included Melinda Watzel (Principal 2nd violin Komische Oper Berlin); Belinda McFarlane (violin, London Symphony Orchestra, Youth Education Program Advisor); Tahlia Petrosian (viola, Leipzig Gewandhaus Orchestra); Peter Morrison (cello, Danish Radio Symphony Orchestra); Max McBride (double bass, Senior Lecturer ANU School of Music, former Principal ACO, former Co-Principal SSO, Vienna State Opera); Alison Mitchell (Principal flute Scottish Chamber Orchestra); Frank Celata (Associate Principal clarinet, Sydney Symphony); Lyndon Watts (Former Principal bassoon Munich Philharmonic Orchestra; Professor of Bassoon, Bern University of the Arts); Andrew Bain (Principal horn, Los Angeles Philharmonic Orchestra and
Professor, Colburn School of Music); Shane Hooton (Associate Principal Trumpet Melbourne Symphony Orchestra); Michael Mulcahy (trombone, Chicago Symphony Orchestra) and Tony Bedewi (Co-Principal Timpani London Symphony Orchestra). “Thank you so much for our MYO tutorial as part of the collaboration with AWO. It was really inspirational to be mentored by someone who works in one of the world’s greatest orchestras. I loved hearing about Belinda’s transition from AYO to London and hope I can follow a similar pathway after my studies.” Emma Winestone, violin. Melbourne Youth Orchestra students then attended the AWO general rehearsal at Hamer Hall, where conductor Simone Young worked on Messiaen’s complex Turangalîla-Symphonie. MYO’s principal trumpet, Sam Beagley performed in concert with the Orchestra.
Moments of Beauty at State Library Victoria September–October
Melbourne Youth Orchestras and State Library Victoria presented a series of surprise performances by young Victorian musicians throughout the library’s spaces. During this series Melbourne Youth Orchestras released digital stories by former members to further emphasise the value of youth music participation. To culminate, the flagship Melbourne Youth Orchestra played a program of symphonic works on the library’s Swanston Street forecourt.
Government House Reception 14 February
A celebration for MYO’s 50th anniversary was held at Government House, attended by current and former MYO Board, staff, students and supporters. Governor Linda Dessau AC and MYO Board Chair Jeanette Ward spoke warmly of MYO’s heritage, alumni, contribution to Victoria, and future. After a performance by the Melbourne Youth Chamber Strings, guests and performers were invited to explore Government House and surrounding gardens.
Open Day 2 September
Saturday 2 September saw MYO’s Ensemble Program welcome students and families in a fun-filled day of open rehearsals, tours and information sessions. More than 130 students and parents accompanied MYO staff in tours around rehearsal rooms, and 50 more budding young musicians joined an ensemble for the day, meeting current Ensemble Program members and conductors.
28–29
State Library of Victoria.
Community Projects We were delighted to contribute to many community projects throughout 2017. These performance opportunities consolidate student learning and help students understand the vital role music plays in civic and community life.
Carnival of the Animals 14 January
A chamber orchestra comprising 21 current and former MYO musicians performed Camille Saint-Saëns’ immortal classic, Carnival of the Animals, as part of Melbourne Recital Centre’s Music Play series.
ANZAC Day March 25 April
33 John Antill Youth Band members participated in the ANZAC Day March this year, led by guest Drum Major Cameron Sanders from the Dandenong Band.
30–31
Collingwood Football Club’s 125th Anniversary 6 May
Melbourne Youth Orchestra performed at the Collingwood Football Club’s 125th anniversary dinner at Crown Palladium with conductor Pat Miller.
Freemasons Foundation Scholarship Presentation 10 May
Melbourne Youth Chamber Strings performed a Mendelssohn String Symphony for the Freemasons Foundation Scholarship Presentations at the Melbourne Convention and Exhibition Centre.
Members of John Antill Youth Band marching on ANZAC Day.
Melbourne Conservatorium Steps On My Own 19 August of Music / Melbourne Percy Grainger Youth Orchestra Recital Centre Wind and students from Robinvale College Symphony Day collaborated in a recording project 28 May
Melbourne Youth Wind Symphony performed at this day of performances by symphonic wind bands, giving them the opportunity to perform for, and hear many other Victorian concert bands.
Victorian School Music Festival 6 June
Melbourne Youth Strings performed at the Victorian School Music Festival where they won the Platinum Award in the most advanced Senior String Orchestra section.
with Phunktional, an organisation that creates art through providing opportunities for youth at risk to reconnect with each other and their wider community. Creating music together and sharing a very personal musical experience with students from what might initially seem like worlds away was rewarding and inspiring for all participants involved, particularly finding that in fact they had a great deal in common.
Virtuosity Concerto Competition
Grand Finalists, 2017 Virtuosity Concerto Competition, at the Melbourne Recital Centre, L–R Eliza Shephard, Emma Morrison, Sam Beagley.
Bassoonist Emma Morrison took out the 2017 Virtuosity Concerto Competition, narrowly beating flautist Eliza Shephard and trumpeter Sam Beagley in a hotly-contested Grand Final performance accompanied by the Percy Grainger Youth Orchestra. Panellists Lucinda Cran, Caroline Almonte and Percy Grainger Youth Orchestra conductor Pat Miller commended the three finalists on their exhilarating performances before announcing Emma as the winner of the MYO Perpetual Trophy and $1000 cash prize. Away from the stage, both Grand Finalists and Semi-Finalists gained skills in stage craft, rehearsal technique, took part in media coaching and publicity opportunities, in addition to intensive rehearsals with leading piano accompanists and the Percy Grainger Youth Orchestra.
32–33
Teacher Professional Development Program
MYO’s Teacher Professional Development courses brought advancement and growth opportunities to metropolitan and regional music teachers around the state. The courses covered everything from fundamentals of effective ensembles and repertoire selection to rehearsal planning,
instrument knowledge and advanced conducting technique. Online learning complemented participants’ attendance at the Ensemble Program, watching and engaging with MYO’s first-class conductors before dissecting their learnings in group discussion activities.
Teacher PD Courses held: Course 3 Course 4 Course 5 Course 1
Effective Rehearsal Strategies (April) Repertoire with a Purpose (May) Extended Conducting Technique (July) Fundamentals of Effective Ensembles (September)
Financial Report MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2017
34–35
Contents Auditor’s Independence Declaration
36
Statement of Profit or Loss and Other Comprehensive Income
37
Statement of Financial Position
38
Statement of Changes in Equity
39
Statement of Cash Flows
40
Notes to the Financial Statements
41
Statement by Members of the Board
56
Independent Auditor’s Report
57
AUDITORʼS INDEPENDENCE DECLARATION UNDER SECTION 60-40 OF THE AUSTRALIAN CHARITIES AND NOT FOR PROFITS COMMISSION ACT 2012 TO THE BOARD OF MELBOURNE YOUTH MUSIC INC. I declare that, to the best of my knowledge and belief, during the year ended 31 December 2017 there has been no contraventions of: i.
the auditor independence requirements as set out in the Australian Charities and Not for Profits Commission Act 2012 in relation to the audit; and
ii.
any applicable code of professional conduct in relation to the audit.
HAINES MUIR HILL Chartered Accountants 888 Doncaster Road DONCASTER EAST VIC 3109
Kristian Lunardello Partner
th
Dated on this 20 day of March 2018
Page 2
Haines Muir Hill Represented in all states and associated offices throughout the world Telephone +613 9840 2200 Fax +613 9840 1188 PO Box 1385 Doncaster East, Victoria 3109 Australia www.hmh.com.au
36–37888 Doncaster Road, Doncaster East, Victoria 3109 Australia ABN 51 539 972 147
Liability limited by a scheme approved under Professional Standards Legislation
MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2017 2017 $
2016 $
1,516,207
1,421,398
38,303
30,953
(887,061)
(879,980)
Overheads & consumables
(213,431)
(169,476)
Venue hire
(202,956)
(139,680)
Printing & advertising costs
(44,951)
(45,624)
Travelling expenses
(39,257)
(114,157)
Music, equipment & instruments
(53,653)
(26,712)
Depreciation and amortisation expenses
(23,199)
(14,022)
Insurance
(18,317)
(15,184)
Other expenses
(65,767)
(51,117)
5,918
(3,601)
Note
Revenue
2
Fair value gain on investment Employee benefits expense
3
Current year surplus before income tax Income tax expense
-
Net current year surplus
5,918
Other comprehensive income for the year
-
(3,601) -
Total comprehensive income for the year
5,918
(3,601)
Total comprehensive income attributable to members of the entity
5,918
(3,601)
The accompanying notes form part of these financial statements. Page 3
MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017 Note
2017 $
2016 $
ASSETS CURRENT ASSETS Cash on hand Accounts receivable and other debtors Financial assets Other current assets
4 5 6 7
TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment
8
TOTAL NON-CURRENT ASSETS TOTAL ASSETS
787,896 282,768 625,620 35,632
1,000,110 255,162 556,868 57,211
1,731,916
1,869,351
148,461
59,150
148,461
59,150
1,880,377
1,928,501
41,094 32,764 842,818
117,823 38,960 801,800
916,676
958,583
LIABILITIES CURRENT LIABILITIES Accounts payable and other payables Provisions Other liabilities
9 10 11
TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions
10
13,763
25,898
13,763
25,898
TOTAL LIABILITIES
930,439
984,481
NET ASSETS
949,938
944,020
EQUITY Retained surplus
949,938
944,020
TOTAL EQUITY
949,938
944,020
TOTAL NON-CURRENT LIABILITIES
The accompanying notes form part of these financial statements.
38–39
Page 4
MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017 Retained Surplus
$
Balance at 1 January 2016 Comprehensive income Net surplus for the year Other comprehensive income for the year Total comprehensive income for the year attributable to members of the association
Balance at 31 December 2016 Prior period error
3
Total
$
947,621
947,621
75,431
75,431
-
-
75,431
75,431
1,023,052
1,023,052
(79,032)
(79,032)
Balance at 31 December 2016 (restated)
944,020
944,020
Balance at 1 January 2017 Comprehensive income
944,020
944,020
5,918
5,918
-
-
5,918
5,918
949,938
949,938
Net surplus for the year Other comprehensive income for the year Total comprehensive income for the year attributable to members of the association
Balance at 31 December 2017
The accompanying notes form part of these financial statements. Page 5
MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2017 Note
Cash flows from operating activities Receipts from activities (excluding donations received) Operating grants Donations received Payments to suppliers and employees Dividends received Interest received Net cash (used in) / provided by operating activities
13
2017 $
2016 $
963,089 497,435 42,110 (1,621,818) 36,088 13,841
1,102,714 364,192 44,303 (1,497,416) 37,729 17,710
(69,255)
69,232
Cash flows from investing activities Payments for plant and equipment Payments for investments Proceeds from sale of investments
(112,510) (30,449) -
(15,024) (181,207) 155,543
Net cash used in investing activities
(142,959)
(40,688)
(212,214) 1,000,110
28,544 971,566
Net increase / (decrease) in cash held Cash on hand at beginning of financial year 4
Cash on hand at end of financial year
The accompanying notes form part of these financial statements.
40–41
Page 6
787,896
1,000,110
MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 The financial statements cover Melbourne Youth Music Inc. as an individual entity. Melbourne Youth Music Inc. is an association incorporated in Victoria and operating pursuant to the Associations Incorporation Reform Act 2012 . The financial statements were authorised for issue on 21 March 2018 by the members of the Board.
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation Melbourne Youth Music Inc. 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 and other applicable Australian Accounting Standards – Reduced Disclosure Requirements. The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Australian Charities and Not-for-profits Commission Act 2012 (Cth) . The association is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of the financial statements are presented below and have been consistently applied unless stated otherwise. The financial statements, except for cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar. (a) Income Tax No provision for income tax has been raised as Melbourne Youth Music Inc. is exempt from income tax under section 50-5 of the Income Tax Assessment Act 1997. (b) Fair Value of Assets and Liabilities The association measures some of its assets and liabilities at fair value on either a recurring or nonrecurring basis, depending on the requirements of the applicable Accounting Standard. Fair value is the price the association would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date. As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (b) Fair Value of Assets and Liabilities (cont'd) For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use. (c) Property, Plant and Equipment Plant and Equipment Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(f) for details of impairment.) Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the association and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of profit or loss in the financial period in which they are incurred. Depreciation The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold land, is depreciated on a straight-line basis over the asset's useful life to the association commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable asset are: Class of Fixed Asset: Music library Musical instruments Percussion instruments Computers Websites & software Office furniture, fit-out and equipment
Depreciation Rate 22.5% 15% 30% 37.5% 37.5% 7.5%- 30%
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit or loss when the item is derecognised. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained surplus.
42–43
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (d) Leases Leases of property, plant and equipment, where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) are transferred to the association, are classified as finance leases. Finance leases are capitalised by recognising an asset and a liability at the lower of the amount equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease term. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term. (e) Financial Instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is equivalent to the date that the association commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs, except where the instrument is classified 'at fair value through profit or loss' in which case transactions costs are recognised as expenses in profit or loss immediately. Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method or cost. Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) over the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of income or expense in profit or loss.
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (e) Financial Instruments (cont'd) (i) Financial assets at fair value through profit or loss Financial assets are classified at 'fair value through profit or loss' when they are held for trading for the purpose of short term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in fair value (i.e. gains or losses) being recognised in profit or loss. (ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.
(iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the association’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. (iv) Available-for-sale investments Available-for-sale investments are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. They are subsequently measured at fair value with any remeasurements other than impairment losses and foreign exchange gains and losses recognised in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss. Available-for-sale financial assets are classified as non-current assets when they are not expected to be sold within 12 months after the end of the reporting period. All other available-for-sale financial assets are classified as current assets. (v) Financial liabilities Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised. Impairment A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a 'loss event') having occurred, which has an impact on the estimated future cash flows of the financial asset(s). In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified into profit or loss at this point.
44–45
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (e) Financial Instruments (cont'd) In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults. For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account. When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the association recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered. Derecognition Financial assets are derecognised when the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised when the related obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. (f) Impairment of assets At the end of each reporting period, the association assesses whether there is any indication that an asset may be impaired. The assessment will consider both external and internal sources of information. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of that asset, being the higher of the asset's fair value less costs to sell and its value-in-use, to the asset's carrying amount. Any excess of the asset's carrying amount over its recoverable amount is immediately recognised in profit or loss. Where the future economic benefits of the asset are not primarily dependent upon the asset's ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset. Where it is not possible to estimate the recoverable amount of an individual asset, the association estimates the recoverable amount of the cash-generating unit to which the asset belongs. (g) Accounts Receivable and Other Debtors Accounts receivable and other debtors largely include amounts due from students as well as amounts receivable from donors. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Refer to Note 1 (f) for further discussion on the determination of impairment losses. Page 11
MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (h) Employee Provisions Provision is made for the association's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits have been measured at the nominal amounts expected to be paid when the liability is settled, plus any related on-costs. Both annual leave and long service leave are recognised within the provisions liability. Short-term employee benefits Provision is made for the association's obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages and salaries. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The association's obligations for short-term employee benefits such as wages and salaries are recognised as a part of current trade and other payables in the statement of financial position. Other long-term employee benefits Provision is made for employees' long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the remeasurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss as a part of employee benefits expense. The association's obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except where the association does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current provisions. (i) Provisions Provisions are recognised when the association has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. (j) Cash on Hand Cash on hand includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.
46–47
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (j) Revenue and Other Income Non-reciprocal grant revenue is recognised in profit or loss when the association obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the association and the amount of the grant can be measured reliably. If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied. When grant revenue is received whereby the association incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. The association receives non-reciprocal contributions of assets from the government and other parties for zero or a nominal value. These assets are recognised at fair value on the date of acquisition in the statement of financial position, with a corresponding amount of income recognised in the statement of profit or loss and other comprehensive income. Donations and bequests are recognised as revenue when received. Interest revenue is recognised using the effective interest method, which for floating rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established. Revenue from the rendering of services is recognised upon the delivery of the service to the customer. All revenue is stated net of the amount of goods and services tax. (k) Accounts Payable and Other Payables Accounts payable and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the association during the reporting period that remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
(l) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST component of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (m) Critical Accounting Estimates and Judgements The Board evaluates estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the association. Key estimates Impairment – general The association assesses impairment at the end of each reporting period by evaluation of conditions and events specific to the association that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. There were no indicators of impairment for assets during the financial year. Key judgements Provision for impairment of receivables Included in accounts receivable and other debtors at the end of the reporting period are amounts receivable from members in relation to unpaid 2017 fees. The amount overdue as at 31 December 2017 is $3,178. The Board notes that the small amount overdue at the end of the financial year is reasonable and is consistent with prior years due to timing of year end being around Christmas. All debts have been collected at the date of this report therefore no provision for impairment has been made. (n) New Accounting Standards for Application in Future Periods The AASB has issued a number of new and amended Accounting Standards that have mandatory application dates for future reporting periods, some of which are relevant to the association. The association has decided not to early adopt any of the new and amended pronouncements. The association's assessment of the new and amended pronouncements that are relevant to the association but applicable in future reporting periods is set out below: - AASB 9: Financial Instruments and associated Amending Standards (applicable to annual reporting periods
beginning on or after 1 January 2018).
The Standard will be applicable retrospectively (subject to the provisions on hedge accounting outlined below) and includes revised requirements for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial instruments and simplified requirements for hedge accounting. The Board anticipates that the adoption of AASB 9 will not have an impact on the association’s financial instruments, as the association does not have any financial instruments where hedge accounting is applied. - AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods beginning on or
after 1 January 2019, as deferred by AASB 2015-8: Amendments to Australian Accounting Standards Effective Date of AASB 15).
This new revenue recognition Standard is applicable to annual reporting periods beginning on or after 1 January 2019. In relation to not-for-profit entities, AASB 15 will be applicable to the association's grant contracts with funding providers attached to specific performance obligations. The Board will be assessing all contracts moving forward before the standards effective date. As standard funding is provided for programs run over 12 months, it would be impractical to estimate the profit and loss effect at this point in time.
48–49
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 (n) New Accounting Standards for Application in Future Periods (cont'd) - AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 January 2019).
When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 117: Leases and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as operating or finance leases. The Board anticipate that the adoption of AASB 16 will impact the association's financial statements as the association currently has, and intends to continue entering into leases which are currently classified as operating. A "Right to use" asset would be included for the future benefit to be 'obtained from each asset along with the corresponding liability associated with future payments. The Board anticipate that the adoption of AASB 16 will impact the company's financial statements as the company currently has, and intends to continue entering into leases which are currently classified as operating. All leases currently disclosed in Note 12 would be included on the balance sheet if the standard was applied for the year ended 30 June 2017. A "Right to use" asset would be included for the future benefit to be obtained from each asset along with the corresponding liability associated with future payments. The board wishes to receive further guidance on the practical application of this standard, therefore the effect on profit cannot be predicted at this point.
- AASB 1058: Income of Not-for-Profit Entities (applicable to annual reporting periods beginning on or after 1
January 2019).
This Standard is applicable to transactions that do not arise from enforceable contracts with customers involving performance obligations. The significant accounting requirements of AASB 1058 are as follows: Income arising from an excess of the initial carrying amount of an asset over the related increases in liabilities, decreases in assets and revenue should be immediately recognised in income and expenditure statement. For this purpose, the assets, liabilities and revenue are to be measured in accordance with other applicable Standards. Liabilities should be recognised for the excess of the initial carrying amount of a financial asset (received in a transfer to enable the entity to acquire or construct a recognisable non-financial asset that is to be controlled by the entity) over any related amounts recognised in accordance with the applicable Standards. The liabilities must be amortised to income and expenditure statement as income when the entity satisfies its obligations under the transfer. An entity may elect to recognise volunteer services or a class of volunteer services as an accounting policy choice if the fair value of those services can be measured reliably, whether or not the services would have been purchased if they had not been donated. Recognised volunteer services should be measured at fair value and any excess over the related amounts (such as contributions by members or revenue) immediately recognised as income in income and expenditure statement. The Board accepts that the adoption of AASB 1058 will not have a material impact on the association's financial statements, as the rental facility in Southbank is paid at market rates.
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 2017 $
2.
REVENUE AND OTHER INCOME
Operating revenue (including donations received) Revenue from grants Dividends Income Interest received Total revenue
3.
2016 $
988,660 476,789 36,878 13,880
1,019,423 354,238 30,032 17,705
1,516,207
1,421,398
EXPENSES During the financial year, the entity received legal advice regarding payments made to contractors. The advice received concluded that some of the payments made to these contractors used to run Summer School and Saturday programs fell under the ATO's definition of "ordinary times earnings", therefore superannuation is required to be paid to their superannuation account for 9.5% of these "ordinary times earnings". In accordance with AASB 108: Accounting Policies, Changes in Accounting Estimate and Errors, this is classified as a prior period error and the relevant adjustment has been made retrospectively and applied to the year ended 31 December 2016, the period in which the relevant services were incurred. The additional superannuation expense recorded was for $79,000. An additional payable is included at note 9 and the prior period adjustment has been shown the Statement of Changes in Equity. The entire payable was paid fully in 2017. The entity will regularly review contracts with contractors to ensure that all payments the entity makes that are deemed "ordinary times earnings", will have the required superannuation paid to the relevant contractor's superannuation fund.
4.
5.
CASH ON HAND
Petty cash Cheque account Undeposited funds Term deposits Cash management account Public fund account
71 10,255 9,780 557,301 75,150 135,339
271 23,445 25 530,162 346,502 99,705
787,896
1,000,110
242,156 22,500 7,700 10,412
211,410 11,000 14,130 18,622
282,768
255,162
ACCOUNTS RECEIVABLE AND OTHER DEBTORS CURRENT Programs fees receivable Grants receivable Performance fees receivable Good and services tax Other receivables
No impairment of accounts receivable and other debtors was required at 31 December 2017 (2016: Nil)
50–51
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 5.
ACCOUNTS RECEIVABLE AND OTHER DEBTORS (cont'd) (a) Credit risk The association has no significant concentration of credit risk with respect to any single counterparty or group of counterparties other than those receivables specifically provided for and mentioned in the 'Accounts Receivable & Other Debtors' note. The main source of credit risk to the association is considered to relate to the class of assets described as 'program fees receivable'. The following table details the association's accounts receivable and other debtors exposed to credit risk with ageing analysis and impairment provided for thereon. Amounts are considered as 'past due' when the debt has not been settled within the terms and conditions agreed between the association and the customer or counterparty to the transaction. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the association. The balances of receivables that remain within initial trading terms (as detailed in the table below) are considered to be of high credit quality. 2017 $ Total past due and impaired Total past due but not impaired: Total < 30 days overdue Total 31 - 60 days overdue Total 61 - 90 days overdue Total > 90 days overdue Total within initial trade terms Total gross amount
2016 $ -
-
3,178 279,590 282,768
1,700 253,462 255,162
Balances become receivable from program fees once an offer is made to students for a place in the program. Payment is required to be made prior to commencing the program. Collateral held as security No collateral is held as security for any of the accounts receivable or other debtor balances.
6.
FINANCIAL ASSETS CURRENT Fair value through profit and loss financial assets: Investment in Australian shares Investment in International shares Total fair value through profit and loss financial assets
432,968 192,652
387,197 169,671
625,620
556,868
Total financial assets
625,620
556,868
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 2017 $
7.
OTHER CURRENT ASSETS CURRENT Bond - Office Accrued interest on term deposit Prepayments Bond - Cabcharge
8.
2016 $
2,567 2,440 30,625 -
2,567 2,401 52,043 200
35,632
57,211
Music Library at cost Less accumulated depreciation
155,589 (141,113) 14,476
155,589 (136,910) 18,679
Musical Instruments at cost Less accumulated depreciation
223,968 (206,213) 17,755
223,968 (203,080) 20,888
Percussion Instruments at cost Less accumulated depreciation
19,759 (18,108) 1,651
18,753 (17,245) 1,508
Computers at cost Less accumulated depreciation
20,005 (11,239) 8,766
17,557 (10,691) 6,866
Websites & software at cost Less accumulated depreciation
9,457 (8,667) 790
9,457 (6,742) 2,715
Office furniture, fit-out and equipment Less accumulated depreciation
125,260 (20,237) 105,023
18,183 (9,689) 8,494
Total property, plant and equipment
148,461
59,150
PROPERTY, PLANT AND EQUIPMENT
During 2017 the association relocated its office to 120-130 Southbank Boulevard, Southbank. The below table shows the additions made to each class of property, plant and equipment. Additions relating to the relocation were for computers and office furniture, fit-out & other equipment. The total spent on these asset classes in 2017 was $111,689.
52â&#x20AC;&#x201C;53
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 8.
PROPERTY, PLANT AND EQUIPMENT (cont'd) (a) Movements in carrying amounts
2017 $
9.
2016 $
ACCOUNTS PAYABLE AND OTHER PAYABLES CURRENT Trade creditors Superannuation payable MYM Credit cards Good and services tax Withholding taxes payable
18,500 3,286 3,255 7,397 8,656
10,681 89,088 2,444 15,610
41,094
117,823
- Total current - Total non-current
41,094 -
117,823 -
Financial liabilities as accounts payable and other payables
41,094
117,823
9 a) a) Financial liabilities at amortised cost classified as accounts
payable and other payables Accounts payable and other payables
The average credit period on accounts payables and other payables is one month. No interest is payable on outstanding payables during this period.
10.
PROVISIONS CURRENT Provision for annual leave
32,764
38,960
13,763
25,898
NON-CURRENT Provision for long service leave Page 19
MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 10.
PROVISIONS (cont'd) 2017 $
Provision for annual leave: Opening balance at 1 January 2017 Additional provisions raised Amounts used
38,960 27,030 (33,226)
Balance at 31 December 2017
32,764
Based on past experience, the association does not expect the full amount of annual leave to be settled wholly within the next 12 months. However, the amount must be classified as a current liability because the association does not have an unconditional right to defer the settlement of the amount in the event employees wish to use their leave entitlements. 2017 $
Provision for long service leave: Opening balance at 1 January 2017 Additional provisions raised Amounts used Provisions removed
25,898 370 (12,505)
Balance at 31 December 2017
13,763 2017 $ 64,858 27,400 (33,226) (12,505)
Total Provisions Opening balance at 1 January 2017 Additional provisions raised Amounts used Provisions removed Balance at 31 December 2017
46,527 2017 $
11.
2016 $
OTHER LIABILITIES CURRENT Accrued charges Income in advance
12.
31,466 811,352
42,075 759,725
842,818
801,800
61,613 82,098 143,711
34,663 11,250 45,913
LEASING COMMITMENTS (a) Operating Lease Commitments Non-cancellable operating leases contracted for but not recognised in the financial statements Payable: not later than 12 months between 12 months and five years greater than five years
54â&#x20AC;&#x201C;55
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MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 12.
LEASING COMMITMENTS (cont'd) Operating lease commitments relate to: - Business premises at 120 Southbank Boulevard, Southbank. - Old business premises at 1 Bruce Street, Kensington. A new lease commitment was signed on 17 August 2017 for business premises at 120 Southbank Boulevard, Southbank. The lease is for three years from the date of signing, with two further options available. One available for the three year period beginning 17 August 2020 and the next available for the three year period beginning 17 August 2023. Market rate lease payment adjustments will made at the end of lease term moving forward. The association is contractually required to payout the costs associated with the remaining lease period at the old Kensington business premises which is expires on 26 April 2018.
13.
CASH FLOW INFORMATION
Reconciliation of cash flow from operating activities with net current year surplus Current year surplus after income tax
5,918
Prior year surplus before prior period adjustment
3
(3,601)
-
75,431
Cash flows excluded from current year surplus
14.
Non- cash flow in current year surplus - Depreciation - (Increase) / decrease in fair value of financial assets through profit and loss
23,199
14,002
(38,303)
(30,953)
Changes in assets and liabilities - (Increase) / decrease in receivables - (Increase) / decrease in other assets - Increase / (decrease) in payables - Increase / (decrease) in other liabilities - Increase / (decrease) in provisions
(41,736) 35,709 (76,729) 41,018 (18,331)
(33,160) (21,175) 14,929 51,354 (1,196)
Net cash (used in) / provided by operating activities
(69,255)
69,232
ASSOCIATION DETAILS The registered office and principal place of business of the association is: Melbourne Youth Music Inc. 120-130 Southbank Boulevard Southbank VIC 3006
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56â&#x20AC;&#x201C;57
INDEPENDENT AUDITORʼS REPORT TO THE MEMBERS OF MELBOURNE YOUTH MUSIC INC. ABN 54 089 059 805
Report on the Audit of the Financial Report Opinion We have audited the financial report of Melbourne Youth Music Inc. (the Association), which comprises the statement of financial position as at 31 December 2017, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and the statement by the members of the board. In our opinion, the accompanying financial report of Melbourne Youth Music Inc. is in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012 and the requirements of the Association Incorporation Reform Act 2012 (Vic) including: (i) giving a true and fair view of the Associationʼs financial position as at 31 December 2017 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards- Reduced Disclosure Requirements to the extent described in Note 1 and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditorʼs Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Association in accordance with the auditor independence requirements of the Accounting Professional and Ethical Standards Boardʼs APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Australian Charities and Not-forprofits Commission Act 2012, which has been given to the board of the Association, would be in the same terms if given to the board as at the time of this auditorʼs report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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Haines Muir Hill Represented in all states and associated offices throughout the world Telephone +613 9840 2200 Fax +613 9840 1188 888 Doncaster Road, Doncaster East, Victoria 3109 Australia PO Box 1385 Doncaster East, Victoria 3109 Australia www.hmh.com.au ABN 51 539 972 147
Liability limited by a scheme approved under Professional Standards Legislation
Information Other than the Financial Report and Auditorʼs Report Thereon The board is responsible for the other information. The other information comprises the information included in the Associationʼs annual report for the year ended 31 December 2017, but does not include the financial report and our auditorʼs report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board for the Financial Report The board of the Association are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards- Reduced Disclosure Requirements and the Australian Charities and Not-for Profits Commission Regulations 2013 and the Australian Charities and Not-for-profits Commission Act 2012. This includes such internal control as the board determines is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, the board are responsible for assessing the Associationʼs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board intend to cease operations, or have no realistic alternative but to do so. Auditorʼs Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditorʼs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: −
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control Page 24
58–59
−
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Associationʼs internal control.
−
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board.
−
Conclude on the appropriateness of the boardʼs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Associationʼs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorʼs report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorʼs report. However, future events or conditions may cause the Associationʼs to cease to continue as a going concern.
−
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
HAINES MUIR HILL Chartered Accountants 888 Doncaster Road Doncaster East, Victoria
Kristian Lunardello Partner
st
Dated on this 21 day of March 2018
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Thank you Our Patrons Mrs Nancy Dowdle Regan Engelhardt SPJ Grinwald Pamela Jenkins Mary R. Kelleher Catherine Playoust Ramses Foundation Mary Rose The Vowels Family The Ward Family Endowment Youth Music Foundation
Our Donors Barbara Argall Emma Ball Michael & Kim Ball Marissa Barter-Waters Lawrence Bartak Carol Benson Steven Black Monika Broeksteeg Frances Browne Mrs Eileen Burnett-Kant Phil Casale Raynor & Brian Castles KB Chong-Whittaker Camillo Coladonato Naomi Cooper Bernard Depasquale Elizabeth Dickens Maddisyn Dixon-Whitbourne Laura Douglas Peter Garnick Shannon Gilmore Alice Hanna Pierre Harcourt Ying He Cheryl Heinze Holmes a Court Family Dorian Jones 60â&#x20AC;&#x201C;61
Trevor Jones Natalya Jurchesin Spiri Katsena Van Khuu Koch Family Mark Krupa David Leggett Lan Liang Judy Lumb Kristian Lunardello Vince Mammone Raymond Mawson Ken McLeod Don McQualter Traudl Moon Bruce Morton Catherine Murray Tony Nielson Dorothy and Richard Opat Robert Planck Mr Roger Poon and Family Jo Quinn Mike Radda Kathryn Robertson Robert and Roy Rose Virginia Ruchel Peter Scarlett
Paul Taylor Sangeeta Thaker Julia Van Boxtel Suet Wai Wong Pauline Walden Andrew Walker The Wang Family Mark Weatherseed & Sarah Bartak Mark & Jody Wilms Ian Wilson Suet Wai Wong Michelle Wright Sarah Wu Anonymous (4)
Alexandra Cameron Memorial Fund Barbara Argall Mary R Kelleher Bruce Morton Mary Rose Robyn and Roy Rose
Anna Chmiel Memorial Fund Pamela Jenkins Mrs Nancy Dowdle
Strategic Partner
Education Partners
2017 Program Partners
Marian and EH Flack Trust
www.myo.org.au