2020 Financial Report

SYDNEY DANCE COMPANY ABN 59 002 707 897

GENERAL PURPOSE (RDR) FINANCIAL REPORT For the year ended 31 December 2020

Contents Contents ................................................................................................................................. 2 Directors' report ...................................................................................................................... 3 Auditor's independence declaration to the directors of Sydney Dance Company .................... 9 Statement of profit or loss and other comprehensive income ................................................ 10 Statement of financial position .............................................................................................. 11 Statement of changes in equity ............................................................................................. 12 Statement of cash flows ........................................................................................................ 13 Notes to the financial statements .......................................................................................... 14 Directors' declaration ............................................................................................................ 31 Declaration by Chairperson as required by the Charitable Fundraising Act 1991 (NSW) ...... 32 Independent Auditor's Report ............................................................................................... 33

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Directors' report Your directors submit their report on Sydney Dance Company (the "Company") for the year ended 31 December 2020.

DIRECTORS The names of Company's directors in office during the financial year and their qualifications and expertise are set out below. Directors were in office for this entire period, unless otherwise stated.

Brett Clegg, GAICD, BBus MCom (Advanced Finance) Chair, appointed 23 March 2015 Mr Clegg was appointed Chair on 12 August 2019. Mr Clegg is an adviser to chief executives and boards, specialising in strategic communications, issues management, innovation and capital markets transactions. His career has spanned professional services, investment banking, publishing and the technology sectors. Mr Clegg is an ambassador for the Australian Indigenous Education Foundation, a former Director of HiPages, Group and a former Council Member of the University of Technology Sydney. His expertise relates to corporate strategy, media and technology, finance, fundraising and corporate contacts.

Pamela Bartlett, appointed 31 August 2012 Ms Bartlett was a founding member of The Marmalade Foundation, operating and funding Lou’s Place, a safe place for women. With over 20 years corporate experience with American Express, her expertise is in the areas of operational management, customer service, quality assurance, marketing and fundraising. Ms Bartlett chairs the Philanthropy Sub-Committee.

David Baxby, MAICD, BCom, BLaw (Hons), appointed 12 August 2019 Mr Baxby is an active investor across a range of companies in Australia and New Zealand and for the prior 3 years was the Managing Director of the Industrials division of Wesfarmers Limited. Prior to this, Mr Baxby held a number of commercial and leadership roles within the Virgin Group, the last being Global Co- CEO. David also served as President and CEO of Global Blue, the international shopping transaction processing business. His past Directorships include Virgin Australia, Frontier Digital Holdings, Virgin Atlantic Ltd, Virgin Holidays Ltd, Virgin America Inc and Air Asia X. Mr Baxby was a Partner and Executive Director of Goldman Sachs in both London and Sydney. Mr Baxby’s expertise is in the areas of operational management, finance, strategic management and corporate contacts. Mr Baxby currently sits on the Council of Bond University.

Jillian Broadbent AC, BA (Maths & Economics), appointed 15 March 2018 Ms Broadbent serves on the board of Macquarie Group Limited and the National Portrait Gallery and has recently completed an 11-year term as Chancellor of the University of Wollongong and 9 years on the Board of Woolworths Limited. She was 15 years on the board of the Reserve Bank of Australia, the inaugural Chair of the Clean Energy Finance Corporation and has served as Chair of the board of Swiss Re Life and Health Australia Limited. Ms Broadbent has expertise in the areas of finance, strategic management and corporate governance.

David Friedlander, BCom/LLB, Master of Laws, appointed 14 October 2019 Mr Friedlander is a Partner and Head of Public M&A at King Wood & Mallesons. Mr Friedlander is a Panel Member of Adara Partners and Chairman of the Public Education Foundation. He is also a member of the New York State Bar Association – International and Business Law Section, the Law Council – Corporations Committee, the International Bar Association and a

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Lecturer in Takeovers and Hybrid Securities at the University of Sydney. He was previously a member of the Australian Takeovers Panel. Mr Friedlander has expertise in law, capital markets transactions, board governance, and corporate networks.

Mark Hassell, appointed 31 January 2017 Mr Hassell is a Partner at KPMG Australia in the Customer, Brand and Marketing, Management Consulting Practice. Prior to this Mr Hassell was Group Executive/Chief Customer Officer at Virgin Australia airlines leading the Customer and Brand transformation from the low-cost Virgin Blue airlines. Mr Hassell has previously held several senior management positions in his field at British Airways and Qantas including Global Head of Customer Experience at British Airways based in London. As well as the experience he brings to the Board, Mr Hassell also chairs the Marketing and Commercial Activities Sub-Committee.

Mr Hassell was recently appointed a Trustee of the NSW Museum of Applied Arts & Science (Powerhouse).

Sandra McCullagh, GAICD, MBA, BA (Computer Science), BSc (Computer Science and Maths), appointed 12 August 2019 Ms McCullagh is a Trustee of QSuper, the $100bn superannuation fund, Ms McCullagh is also a member of the Queensland Government’s Climate Advisory Council and is on the Management Committee of the Investor Group on Climate Change. She is the Principal and Director of About Energy, a consulting firm in the areas of energy, environment, social and governance issues. Ms McCullagh was previously both a Director - Equities Research, and Head of Environmental, Social & Governance Equities Research at Credit Suisse, and has held senior positions at several energy companies. Ms McCullagh’s expertise is in the areas of finance, strategy and corporate governance.

Catriona Mordant AM, appointed 22 November 2016 Ms Mordant is a foundation Board Member of the Museum of Contemporary Art Australia, a Member of the International Council of the Tate in London and a Member of the advisory board of Venetian Heritage in Venice. Ms Mordant has expertise in fundraising, strategic management and corporate contacts.

Paris Neilson, BA, MMS, appointed 12 August 2019 Ms Neilson is a Trustee of the Neilson Foundation which supports a range of organisations that assist disadvantaged individuals and communities as well as arts organisations across the sector. She has experience in the arts sector through her time setting up and managing Sydney’s White Rabbit Gallery, and various board and committee positions she has held with such companies as the Biennale of Sydney.

Emma-Jane Newton, MAICD, BCom (Hons), appointed 30 April 2018 Ms Newton is a Managing Director in the Investment Banking Division of Morgan Stanley and was previously an Executive Director at Telstra in senior finance roles. Prior to joining Telstra she was a Managing Director at Credit Suisse. Ms Newton has expertise in finance, strategy, and corporate development. Ms Newton has chaired the Audit and Risk Committee since June 2019.

Chrissy Sharp, BA hons, appointed 5 December 2016 Ms Sharp is the CEO of the Sydney Writers’ Festival and was previously Acting Executive Director (maternity cover) at Sydney Dance Company in 2016. Ms Sharp was previously Chair of the Dance Board of the Australia Council for the Arts, the inaugural Director of Melbourne’s Wheeler Centre for Books, Writing and Ideas, General Manager of Sadler’s Wells theatres in London, General Manager of the Sydney Festival and Head of Policy at SBS. Ms Sharp has expertise in arts management, strategic analysis and government relations.

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Carla Zampatti AC, appointed 22 October 2012 Ms Zampatti was the Executive Chair of Carla Zampatti Pty Ltd and a Board Member of the European Australian Business Council. Ms Zampatti was previously Chair of SBS Corporation, a Trustee of the Art Gallery of NSW and a Director of Australian Multicultural Foundation, MCA Foundation, UTS V-C’s Industry Advisory Board, Westfield Holdings, McDonalds and the Sydney Theatre Company Foundation. In 2004, the Italian government appointed Ms Zampatti Commendatore (Commander) in the Order of Merit of the Italian Republic. She received awards for her work in Australian fashion and design, including the Australian Fashion Laureate in 2008. Ms Zampatti passed away on April 3 2021.

Board Meetings The number of meetings of directors held during the year and the number of meetings attended by each Director were as follows; Board Meetings Eligible

Attended

Brett Clegg

8

8

Pam Bartlett

8

7

David Baxby

8

7

Jillian Broadbent AC

8

6

David Friedlander

8

8

Mark Hassell

8

8

Sandra McCullagh

8

8

Catriona Mordant AM

8

6

Paris Neilson

8

6

Emma-Jane Newton

8

8

Chrissy Sharp

8

8

Carla Zampatti AC

8

6

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PRINCIPAL ACTIVITIES The principal activities during the year were as follows: ▪ Production and presentation of dance performances in Australia ▪ Promotion and the study of dance ▪ Commercial activities to provide financial support for the above, including daily dance classes, school holiday workshops and dance studio hire ▪ Fundraising to support production, promotion and presentation of dance performances in Australia The COVID-19 pandemic limited some of these activities during the year with live performances severely curtailed and no international touring taking place.

SIGNIFICANT EVENTS AFTER YEAR END The COVID pandemic continues to create volatility and an uncertain operating environment in 2021. Theatre capacity restrictions have recently been lifted and frequent and changing state border closures continue to make planning challenging. Sydney Dance Company had been in receipt of JobKeeper payments since the program commenced and these ceased on March 28th, 2021 at the conclusion of the program.

The Company re-commenced operations at its renewed home at the Wharf as part of the Walsh Bay Arts Precinct in early 2021. The return to the Wharf has created operational changes and will increase the operating cost base for the Company, noting that revenue opportunities will increase over time, but are still being hampered by Government restrictions relating to the management of the COVID pandemic.

On April 3 2021 Board Director Carla Zampatti passed away.

OBJECTIVES and RESULTS 2020 began with Sydney Dance Company operating out of temporary accommodation in three locations as work continued on the renovation of its Walsh Bay head office and studios. This was completed in the last quarter of 2020 and the Company received the keys to begin fitout during November 2020 with operations commencing in early January 2021.

In March 2020, the COVID-19 outbreak was declared a pandemic, resulting in the closure of the studios and the cancellation of 74 performances including two international tours and a national tour. Sydney Dance Company offered refunds and credits for all ticket holders for cancelled performances; some patrons chose to donate the cost of their ticket. The pandemic also disrupted Sydney Dance Company’s capacity to raise funds through public events. The Federal Government’s Jobkeeper program was an essential element in maintaining the viability of the Company during the pandemic and we thank the Federal Government for that support. We also thank the NSW Government for the support they have provided to Sydney Dance Company during this difficult year Sydney Dance Company reacted quickly and established an online dance class offering within a week of the shutdown being announced. This dance class offering, Virtual Studio, along with remote delivery of education and training programs allowed Sydney Dance Company to continue to earn some revenue over the course of 2020. Sydney Dance Company redeployed its full-time dancer ensemble into online commercial teaching over this time and at the height of the pandemic was delivering 120 classes per week via Zoom.

Over the course of 2020, Sydney Dance Company reached in excess of 75,000 people via an online dance class or online education program, face to face classes resumed with restricted numbers on the 17th June 2020 under a strict COVID-safe plan and dancers returned to rehearsal gradually over the course of July and August.

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Over the course of 2020 Sydney Dance Company produced 11 short films all of which were based on new choreographic works. Cuatro, a series of 4 short films, was produced in collaboration with the Sydney Symphony Orchestra, created, rehearsed filmed and released while in lockdown conditions.

Dance Locale was a series of 5 short films, filmed in outdoor locations around Sydney and Wagga Wagga, created with the Department of Planning, Infrastructure and the Environment to launch their inaugural Festival of Place. All were released for free via the internet. To date these films have had 210,000 views.

Two further film projects, Habituate and Sue Healy’s Circumstance 2020 were created with the PPY student cohort Sydney Dance Company was able to deliver one performance season, New Breed, at Carriageworks in December 2020 under limited theatre seating capacity restraints. PPY20 Revealed, the graduation program for Sydney Dance Company’s advanced training program was also delivered in December 2020.

Across 2020 Sydney Dance Company employed 150 staff and contractors, with 68% of them being artists or production workers. A full-time ensemble of 17 dancers was maintained and 82 staff accessed JobKeeper payments, including 36 casual teaching staff. All Executives and fulltime staff operated on reduced salaries for 6 months of the year from April-September.

Sydney Dance Company has recorded an operating surplus of $1,063,192 for 2020 and an overall result of $2,246,197, inclusive of Capital Campaign contributions, noting it is currently raising funds to support its commitments and expenses relating to the revitalisation of its home at Walsh Bay. These commitments include a Tenant Work Contribution payable to the NSW Government over the next 10 years.

Total income for the period was $11,268,662. This is made up of operational income of $7,912,007, infrastructure related income of $1,183,005 from donations for the Capital Campaign and JobKeeper income of $2,173,650.

Expenses for the year total $9,022,465. This consists of operational expenses of $6,563,854, including the expenditure of JobKeeper support on wages of $2,173,650 and infrastructure project related expenses of $284,961.

The commencement of the lease at Walsh Bay had a significant effect on the Company’s Balance sheet and P&L at reporting date and will continue in future years due to the accounting required under “AASB 16 Leases”.

The surplus for the year ended December 31 2020 was $2,246,197 (2019: $825,139).

MEMBERS GUARANTEE The Company is a public company limited by guarantee that is incorporated and domiciled in Australia. If the Company is wound up, its Constitution states that each member is required to contribute a maximum of $100 each towards meeting any outstanding obligations of the Company, a total of $1,500 as at 31 December 2020 At 31 December 2020, the number of members was 15 (2019: 15 members).

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS Since the end of the previous financial year, the Company has not indemnified or made a relevant agreement for indemnifying against a liability of any person who is or has been an officer or auditor of the Company.

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Since the end of the previous financial year, the Company has paid premiums in respect of directors’ and officers’ liability and legal expenses insurance contracts. These insurance contracts insure against liability (subject to specific exclusions) for persons who are or have been directors or officers of the Company.

The Directors have not included details of the nature of the liabilities covered nor the amount of the premium paid in respect of the directors’ and officers’ liability and legal expenses’ insurance contracts, as such disclosure is prohibited under the terms of the contract.

INDEMNIFICATION OF AUDITOR To the extent permitted by law, the Company has agreed to indemnify its auditor, Ernst & Young (Australia), as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young (Australia) during or since the financial year.

AUDITOR’S INDEPENDENCE The directors received an independence declaration from the auditor of Sydney Dance Company. A copy has been included in this report.

Signed in accordance with a resolution of the directors.

Brett Clegg Chair Sydney, 27 April 2021

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

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

Auditor’s Independence Declaration to the Directors of Sydney Dance Company In relation to our audit of the financial report of Sydney Dance Company for the financial year ended 31 December 2020, and in accordance with the requirements of Subdivision 60-C of the Australian Charities and Not-for profits Commission Act 2012, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of any applicable code of professional conduct.

Ernst & Young

Lisa Nijssen-Smith Partner 27 April 2021

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

Statement of profit or loss and other comprehensive income For the year ended 31 December 2020 Notes

2020

2019

$

$

Revenue

3(a)

11,232,824

11,932,257

Other income

3(c)

35,838

33,622

Total Revenue

11,268,662

11,965,879

Administration and marketing expenses including staff costs (includes JobKeeper payments for permanent staff) Performance and production expenses

(6,655,254)

(6,540,373)

(714,239)

(2,627,718)

Commercial activity related costs (includes JobKeeper payments for casual staff)

(1,156,222)

(865,027)

Philanthropy activity related costs

(164,689)

(797,213)

Sponsorship activity related costs

(39,698)

(16,708)

(251,563)

(283,445)

(40,799)

(10,256)

(9,022,465)

(11,140,740)

2,246,197

825,139

-

-

2,246,197

825,139

Education costs Lease finance costs Total Expenses

Surplus for the year Other comprehensive income Total comprehensive income for the year

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

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Statement of financial position As at 31 December 2020 Notes Assets Current Assets Cash and short-term deposits Trade and other receivables Inventories Total current assets Non-current assets Right-of-Use Assets Property, plant and equipment Reserve incentive scheme Total non-current assets Total assets Liabilities Current Liabilities Trade and other payables Contract liabilities Employee benefit liabilities Government grant advances Lease Liabilities Total current liabilities Non-current liabilities Employee benefit liabilities Lease Liabilities Total non-current liabilities Total liabilities

2020 $

2019 $

5 6 7

7,358,011 432,021 26,134 7,816,166

5,049,048 346,646 33,685 5,429,379

8 9 10

9,058,841 341,304 567,368 9,967,513 17,783,679

114,698 103,174 566,506 784,378 6,213,757

11 12 13 14 15

516,909 466,251 373,402 1,165,243 576,221 3,098,026

556,653 470,569 388,838 817,502 109,380 2,342,942

13 15

68,135 8,550,274 8,618,409 11,716,435

40,903 8,867 49,770 2,392,712

6,067,243

3,821,045

524 1,928,863 567,368 205,584 3,364,904 6,067,243

524 841,283 566,506 230,833 2,181,899 3,821,045

Net assets Equity Contributed equity Retained earnings Reserve incentive scheme Hepzibah Tintner artist development fund Capital reserve Total equity

16 17 17 17

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

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Statement of changes in equity For the year ended 31 December 2020

At 1 January 2019 Surplus for the year Total comprehensive income for the year Transfer to capital reserves Transfer to reserve incentive scheme Transfer from Hepzibah Tintner artist development fund Transfer from capital reserve At 31 December 2019 Surplus for the year Total comprehensive income for the year Transfer to capital reserve Transfer to reserve incentive scheme Transfer from Hepzibah Tintner artist development fund Transfer from capital reserve At 31 December 2020

Retained Earnings

Capital Reserve (Note 17)

Reserve Incentive scheme (Note 17)

Hepzibah Tintner Artist Developme nt Fund (Note 17)

$

$

$

$

$

$

524

813,351

1,367,610

558,339

256,082

2,995,906

-

825,139

-

-

-

825,139

-

825,139

-

-

-

825,139

-

(1,558,428)

1,558,428

-

-

-

-

(8,167)

-

8,167

-

-

-

25,249

-

-

(25,249)

-

-

744,139

(744,139)

-

-

-

524

841,283

2,181,899

566,506

230,833

3,821,045

-

2,246,197

-

-

-

2,246,197

-

2,246,197

-

-

-

2,246,197

-

(1,183,005)

1,183,005

-

-

-

-

(862)

-

862

-

-

-

25,249

-

-

(25,249)

-

-

-

-

-

-

-

524

1,928,863

3,364,904

567,368

205,584

6,067,243

Contributed equity (Note 16)

Total Equity

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Statement of cash flows For the year ended 31 December 2020 Notes

2020

2019

$

$

5,264,278

7,653,667

Payments to suppliers and employees

(8,432,090)

(10,607,213)

Payments for short term and low value leased assets

(25,556)

(270,917)

5,849,499

4,960,320

7,184

23,806

(4,040)

(10,256)

2,659,275

1,749,407

(297,244)

(31,212)

(297,244)

(31,212)

Lease Liability principal payments

(53,068)

(89,715)

Net cash flows used in financing activities

(53,068)

(89,715)

Net increase in cash and cash equivalents

2,308,963

1,628,480

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

5,049,048

3,420,568

7,358,011

5,049,048

Operating activities Receipts from activities

Receipt of government grants Interest received Interest payments on leases Net cash flows from operating activities

Investing activities Purchase of property, plant and equipment

9

Net cash flows used in investing activities Financing activities

5

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

The statement of cash flows shows cash flows exclusive of reserves held under the reserve incentive scheme that is disclosed in Note 10.

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Notes to the financial statements For the year ended 31 December 2020 1

OVERVIEW The general-purpose financial statements of the Company for the year ended 31 December 2020 were authorised for issue in accordance with a resolution of the directors on 27 April 2021.

Sydney Dance Company is a not-for-profit company, limited by guarantee. The registered office and principal place of business of the Company is: Wharf 4/5, 15 Hickson Road, Dawes Point, NSW 2000.

The nature of the operations and principal activities of the Company are described in the Directors’ Report.

The Company is exempted from income tax by virtue of section 50-5 of the Income Tax Assessment Act, 1997.

The financial statements: • have been prepared in accordance with the requirements of the Australian Charities and Not-for-Profit Commission Act 2012, Australian Accounting Standards – Reduced Disclosure Requirements and other authoritative pronouncements of the Australian Accounting Standards Board • have been prepared on a historical cost basis • are presented in Australian dollars ($) • present reclassified comparative figures where required to conform with changes in presentation in the current year.

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

The Company generated a profit for the year of $2,246,197 (2019: $825,139), and at year end had a surplus of net assets of $6,067,243 (2019: $3,821,045) and net current assets of $4,718,140 (2019: $3,085,487). The Company generated net cash inflows from operating activities of $2,606,207 (2019: $1,749,407). The Company does not have any bank or other external debt. The Company has Tenant Works Contribution commitments to the NSW Government which will fall due over the next 10 years in relation to the renewal of its Walsh Bay home. These commitments have been included in cash flow projections.

The ability of the Company to maintain its operations is dependent inter alia on the continuing support of various Governments by way of grants. The Tripartite Agreement is current for the period 2019-2021 with the Australia Council for the Arts and Create NSW, subject to the Company continuing to meet the requirements of the Tripartite Agreement.

The Tripartite Agreement requirements include the achievement of agreed on key performance indicators.

The Company’s Directors have undertaken a thorough assessment of going concern; this review considered the operating budgets and detailed cash flow for the Company for the period 12 months from the date of these financial statements. The Directors acknowledge that due to the ongoing nature of the pandemic there are ongoing risks as to the operating conditions and impacts of Government enforced border closures and public health orders.

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2

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Judgements and estimates which are material to the financial statements are found in the notes to the financial statements.

The Company based its assumptions and estimates on information which was available at the time the financial statements were prepared. These assumptions and estimates about future developments may change due to market changes or circumstances arising beyond the control of the Company.

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3

REVENUE AND EXPENSES (a)

Revenue 2020

2019

$

$

Box office and fees

105,245

1,443,287

Sponsorship - cash

3,904

16,000

Sponsorship in-kind

384,989

713,840

Fundraising

2,026,524

2,418,873

Capital campaign contribution

1,183,005

1,738,391

Commercial revenue

1,580,878

1,778,354

446,937

414,632

5,501,341

3,408,880

11,232,824

11,932,257

Education revenue Government grants - cash (Note 3(b)) Total revenue

The specific performance obligation for recognition of each revenue stream is noted below Revenue Box Office including ticket sales

Significant Payment Terms

Performance Obligations

In advance

Ticket Sales - point in time - delivery of performance

Fundraising and Sponsorship

In advance

On receipt where unconditional/nonreciprocal, or on delivery of event or project where sufficiently specific performance obligations are included in the contract.

Education

In advance

Point in time - provision of education experience

Not applicable

Point in time or over a period depending on the nature of the in-kind. A corresponding expense is recorded at the time that revenue is recognised.

Commercial Dance Class including individual class fees, multipacks, and sale of gift vouchers. For both in-studio and virtual classes

In advance

1. Individual Class Fees - point in time Provision of dance class. 2. Gift Vouchers – point in time – redemption date. 3. Multipacks – point in time for each individual class. 4. Membership – period of time – membership period. 5.

Merchandise – point in time – sale

School Holiday Workshops

In advance

Over a period - delivery of workshop

Sponsorship in Kind

16

The Company’s refund policies are as follows; Box Office - a refund is provided to customers where the performance is cancelled, rescheduled or relocated prior to the event. To the extent that a performance is cancelled during its course, a ticketholder may be eligible for a full or partial refund depending upon the circumstances which caused the cancellation. In some circumstances the Company will apply its discretion and grant a refund where either the customer’s amenity or enjoyment has been diminished in some significant way. The amount of any refund is limited to the cost of the ticket purchased plus any direct transaction costs such as booking fees and credit card surcharges. The entire performance season was cancelled in 2020 with the exception of New Breed performances. Customers who had purchased tickets for a cancelled performance were given the choice of requesting a refund, donating the purchase value of the ticket or exchanging the ticket for a credit voucher for use at a later date.

Dance Classes – Dance class purchases are non-refundable and non-transferrable.

Credit notes are provided upon provision of a medical certificate.

(b) Government grant income included in the statement of profit or loss and other comprehensive income 2020

2019

$

$

2,773,750

2,730,069

31,194

369,983

Department of Foreign Affairs and Trade Grant

-

-

MPA Collaborative Projects

-

30,000

278,828

278,828

143,919 2,173,650 100,000 5,501,341

3,408,880

Australia Council Grants MPAB core funding as per tripartite agreement Playing Australia touring fund grant

Create NSW Grants MPAB core funding as per tripartite agreement NSW Touring Grant JobKeeper ATO Cashflow Boost Total Government Grants

Adoption of AASB 16 Leases in the current period has changed the way that the Company accounts for rental expenses. Sydney Dance Company continues to receive in-kind rental support, no income or expense relating to in-kind rent assistance has been recognised in the current period as the Company has elected to record the right of use asset and lease liabilities at cost. The NSW Government estimates the value of the in-kind rental support to be $875,409.

Revenue from government grants is recognised as each performance obligation attached to each individual grant is met. The specific performance obligations vary depending upon the terms of each grant.

When the grant is provided to meet a specific expense and the performance obligations are sufficiently specific to meet AASB 15’s requirements, revenue from the grant is recognised over the period in which the relevant cost for which it is intended to compensate, is expensed.

Where a grant is provided to meet the overarching objectives of the Company and is not tied to specific, identifiable performance obligations, it is recognised immediately as revenue.

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JobKeeper grants were recognised as income when the associated wage payments were made. Sydney Dance Company is reasonably assured that it is compliant with the conditions attached to the JobKeeper grants.

Key Judgement Government grants are recognised when there is reasonable assurance that the grant will be received, and all attaching conditions will be complied with. Judgement is involved in determining the timing of this recognition.

(c) Other income 2020

2019

$

$

7,184

32,924

Other income

28,654

698

Total other income

35,838

33,622

Interest income

(d) Salaries and employee benefit expenses included in the statement of profit or loss and other comprehensive income. Wages and salaries are inclusive of JobKeeper payments.

2020 2019 $

$

5,919,734

5,645,648

Superannuation

497,456

504,439

Workers' compensation costs

154,334

212,144

26,098

18,508

6,597,622

6,380,739

Wages and salaries

Long service leave expense Total employee benefit expense

(e) Depreciation expense included in the statement of profit or loss and other comprehensive income

Depreciation of non-current assets Depreciation of right-of-use assets Total depreciation expense

2020

2019

$

$

59,113

53,399

129,438 188,551

96,430 149,829

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4 FUNDRAISING Sydney Dance Company undertakes fundraising appeals throughout the year and holds an authority to fundraise under the Charitable Fundraising Act, 1991 (NSW). Additional information and declarations to be furnished under this Act follow: Details of aggregate gross income and total expenses of fundraising 2020

2019

$

$

2,879,160

3,297,472

330,369

859,792

3,209,529

4,157,264

34,913

72,667

129,776

404,962

164,689

477,629

3,044,840

3,679,635

Gross proceeds from fundraising appeals Individual giving Fundraising events

Less total costs of fundraising Individual giving Fundraising events

Net surplus obtained from fundraising

Application of funds Funds raised through individual giving and fundraising events support Sydney Dance Company’s activities.

Forms of fundraising* Appeals held during the year ended 31 December 2020: General and Personal Appeals for the Commissioning Fund, and Capital Campaign, and Fundraising events include Dance Noir and Commissioning Dinner.

Agents Sydney Dance Company employs professional staff to manage and co-ordinate its fundraising activities and does not engage commercial fundraising agents to secure donations.

Comparison of monetary figures and percentages for the year ended 31 December 2020:

Total cost of fundraising/ Gross proceeds from fundraising appeals Net surplus obtained from fundraising/ gross proceeds from fundraising appeals

2020 $

2019 $

2020 %

2019 %

164,689/ 3,209,529

477,629/ 4,157,264

5%

11%

3,044,840/ 3,209,529

3,679,635/ 4,157,264

95%

89%

*No disclosure is provided as all income received and expenditure incurred is in connection with the presentation of Sydney Dance Company’s activities.

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5

CASH AND SHORT-TERM DEPOSITS 2020

2019

$

$

Cash at banks and on hand

6,220,515

3,914,229

Short-term deposits

1,137,496

1,134,819

7,358,011

5,049,048

Cash and short-term deposits comprise cash at bank and on hand and short-term deposits with a maturity of three months or less. Cash at bank earns interest at floating rates based on daily bank deposit rates and short-term deposits earn interest at the respective short-term deposit rates.

Cash at bank and on hand includes the balance of an endowed amount now totalling $205,584 (2019: $230,833) originally received in 2018. In accepting this endowment, the Company has agreed to utilise the proceeds of this endowment to develop and maintain the Hephzibah Tintner Artist Development Program. These funds are to be used over a 10-year period for the professional development of young artists under the program.

Funds are held in a separate bank account.

6

TRADE AND OTHER RECEIVABLES 2020

2019

$

$

7,378

43,191

(3,175)

(3,175)

4,203

40,016

36,392

31,889

Other receivables

251,228

112,102

Prepayments

140,198

162,639

Carrying amount of trade and other receivables

432,021

346,646

Movements in the provision for expected credit losses were as follows: At 1 January 3,175

-

Utilised in the year

-

-

Charge for the year

-

3,175

3,175

3,175

Trade receivables Allowance for expected credit losses

Goods and services tax receivable

At 31 December

Trade receivables, which generally have 14-30 days terms, are recognised and carried at original invoice amount less an allowance for expected credit losses. Expected credit losses are determined by a review of the specific trade receivables outstanding at any reporting date having regard to the nature of these receivables and their expected recovery.

20

Revenues, expenses and assets are recognised net of the amount of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

Cashflows are included in the Statement of cash flow on a gross basis. The GST component of cashflows arising from investing and financing activities, which is recoverable from, or payable to, the ATO is classified as part of operating cashflows.

7

INVENTORY

Inventory

2020

2019

$

$

26,134

33,685 Total

Opening Inventory 1/1/2020

33,685

Purchases/In-kind Contributions

10,728

Cost of Goods Sold Closing Inventory 31/12/2020

(18,279) 26,134

The Company holds merchandise which is offered for sale through the dance studios and goods which have been provided in-kind for use in promotional events and activities.

Merchandise is valued at the lower of cost (after rebates and discounts) and net realisable value, being the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. In-kind goods are valued at their replacement cost.

8

RIGHT OF USE ASSETS Leased Property $ Cost At 1 January 2020

211,128

Additions

9,073,581

At 31 December 2020

9,284,709

Accumulated depreciation At 1 January 2020

96,430

Depreciation charge for the year

129,438

At 31 December 2020

225,868

Net book value At 31 December 2020

At 31 December 2019

9,058,841

114,698

21

At the inception of a contract, Right-of-use assets are measured at cost, comprising the following: • • • •

the amount of the initial measurement of the lease liability; plus lease payments made at or before the commencement date, less any lease incentives received; plus initial direct costs incurred; and less an estimate of costs to be incurred in restoring the underlying asset to the condition required by the terms and conditions of the lease.

Subsequently, right-of-use assets are depreciated on a straight line basis over the term of the lease arrangement. They are also adjusted for any accumulated impairment losses or remeasurement of the lease liability.

22

9

PROPERTY, PLANT AND EQUIPMENT Plant & Equipment

Office Equipment

Computer software

Total

$

Furniture & Fittings $

$

$

$

176,121

121,775

48,605

28,902

375,402

66,960

14,076

215,221

987

297,244

At 31 December 2020

243,081

135,851

263,826

29,889

672,646

Accumulated depreciation At 1 January 2020

127,644

95,417

23,641

25,526

272,228

24,384

17,541

15,653

1,535

59,113

152,028

112,958

39,294

27,061

331,341

At 31 December 2020

91,054

22,748

224,532

2,828

341,304

At 31 December 2019

48,477

26,358

24,964

3,376

103,174

Cost At 1 January 2020 Additions

Depreciation charge for the year At 31 December 2020

Net book value

Plant and equipment is stated at cost, net of accumulated depreciation. All other repair and maintenance costs are recognised in profit and loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The range of useful lives used in the current and comparative period are as follows: Plant and equipment - 2 to 5 years Office equipment - 5 years Furniture and fittings - 5 years Computer software - 3 years The useful lives of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

At each reporting date the Company assesses whether there is an indication that an asset may be impaired. There were no indications of impairment noted at 31 December 2020.

An item of property, plant and equipment ceases to be recognised when it is disposed of or when no future economic benefits are expected to arise from its use or disposal. Any gain or loss arising on derecognition (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss and other comprehensive income at the time of derecognition.

23

10 RESERVE INCENTIVE SCHEME

Reserve Incentive Scheme

2020

2019

$

$

567,368

566,506

The funds received under the Reserve Incentive Scheme Agreement together with the Company’s contribution are held in escrow for a period of 15 years ending on 2 April 2028 and are subject to the terms and conditions of the Reserve Incentive Scheme Agreement between the Australia Council, Create NSW and the Company. The funds have not been used to secure any liabilities of the Company. The funds consist of short-term deposits of $567,368 (2019: $566,506). No funds were required to be paid into this account by the Company in 2020 (2019: nil). The increase in the fund balance relates to interest received from short-term deposits.

11 TRADE AND OTHER PAYABLES 2020

2019

$

$

Trade Payables

157,440

174,590

Other Payables

359,469

383,013

516,909

557,603

Current

Trade and Other payables are recognised at the amount expected to be paid by the Company in settling the liability. They represent liabilities for goods and services provided to the Company prior to the end of the financial year for which the Company is obliged to make future payments. The amounts are unsecured and are usually paid within 30 days of recognition. Due to their short-term nature, they are not discounted.

Included in Other Payables are liabilities for wages and salaries recognised in respect of employee's services up to the end of the reporting period which are measured at the amounts expected to be paid when the liabilities are settled.

24

12 CONTRACT LIABILITIES Liabilities relating to: Dance class flexipacks PPY fees received in advance Development activity 2021 Performances Unredeemed Gift vouchers 2021 Studio Hires

2020

2019

$

$

170,081

154,395

72,460

43,685

-

120,000

202,409

134,546

19,468

15,963

1,833

1,980

466,251

470,569

Contract liabilities refers to cash received prior to the end of the financial year relating to performance obligations which are yet to be satisfied. The key categories of contract liabilities relate to; •

Dance class tickets which include 3, 5 and 10 pack dance class tickets which have an expiry date of 6 months (2019: 6 months). Dance class tickets include both studio and virtual class tickets

•

Education activity relating to 2021 Pre-Professional Year payments and school matinee bookings

•

Development activity relating to foundation donations given for a specific contracted purpose

•

Performance vouchers which are limited to performances within a specific year

•

Gift vouchers for use in purchasing dance classes which have a 3-year expiry date

Key Estimate The amount which relates to unused dance class tickets outstanding at year end is recognised as a contract liability. The contract liability is reduced by the value of tickets that are expected to remain unused at their expiry date. Estimates of the future use of these tickets, based on historical use of tickets, are applied in the calculation of this value.

25

13 EMPLOYEE BENEFIT LIABILITIES 2020

2019

$

$

Annual leave

127,887

142,189

Long service leave

245,515

246,649

373,402

388,838

68,135

40,903

Current

Non-current Long service leave

An annual leave liability is recognised in respect of employees’ service up to the end of the reporting period. These liabilities are measured at the amounts expected to be paid in future periods when the liabilities are settled.

The Company recognises a liability for long service leave measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Expected future payments are discounted using market yields at the reporting date on high-quality corporate bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.

Where the Company has an unconditional right to defer the settlement of the long service leave for at least 12 months after the reporting date it is presented as a noncurrent liability.

Key Judgement and Estimates In determining the liability for long service leave consideration is given to expected future wage and salary levels, the amount of future oncosts, and anticipated periods of service.

14 GOVERNMENT GRANT ADVANCES 2020

2019

$

$

Playing Australia touring grant amounts owing

34,798

34,798

MPA Collaborative Projects

70,000

70,000

Department of Foreign Affairs and Trade – Touring

70,000

45,000

Create NSW touring grant advances 1

94,902

94,902

895,543

428,883

-

143,919

1,165,243

817,502

817,502

131,828

5,849,082

4,094,554

(5,501,341)

(3,408,880)

1,165,243

817,502

Playing Australia touring grant advances Create NSW touring grant advances 2 Total government grants deferred

Movement in government grants At 1 January Received during the year Released to the statement of profit or loss and other comprehensive income At 31 December

26

15

LEASE LIABILITIES 2020

2019

$

$

576,221

109,380

8,550,274

8,867

2020 $

2019 $

118,247

197,706

Current Lease Liabilities

Non-current Lease Liabilities

As at 1 January Additions

9,073,580

Accretion of interest Payments

40,800 (106,132)

10,256 (89,715)

As at 31 December

9,126,495

118,247

Current Lease Liabilities Non-Current Lease Liabilities

576,221 8,550,274

109,380 8,867

9,126,495

118,247

Both current and non-current lease liabilities shown above refer in the majority to payments to Create NSW for tenancy rent over 25 years and tenant contributions over 10 years.

At the inception of all contractual arrangements the Company assesses whether the contract is, or contains, a lease. This determination is based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The lease term is determined as being the non-cancellable period of a lease, together with periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option.

Where a contract contains a lease the Company recognises a lease liability. The liability is measured at the present value of the lease payments outstanding at commencement for the non-cancellable lease period and any option periods which are reasonably expected to be exercised. Lease payments are discounted using the Company’s incremental borrowing rate which is determined having regard to the tenor of the lease and the nature of the asset.

Subsequently, the lease liability is measured by: • • •

increasing the carrying amount to reflect interest on the lease liability; reducing the carrying amount to reflect the lease payments made; and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.

27

The rent paid by Sydney Dance Company on all of its premises is subsidised by the NSW Government and, as a consequence, is lower than market. Due to the significant difficulty which would be encountered in estimating the market rental, the Company has relied on the temporary relief available under AASB 2018-8 Amendments to Australian Standards – Rightof-Use Assets for Not-for-Profit Entities. This amendment allows not-for-profit entities to elect to initially measure a class or classes of asset at cost where lease terms and conditions are significant below-market principally to enable the entity to further its objectives.

In addition, Sydney Dance Company received 6 months of rent relief on both Jones Street and Wattle Street leases. The practical expedient is only applicable to rent concessions provided as a direct result of the COVID-19 pandemic. In addition, the relief is only for lessees that are granted these rent concessions. All of the following conditions in relation to permitting a lessee to apply the practical expedient need to be met: •

the rent concession provides relief to payments that overall results in the consideration for the lease contract being substantially the same or less than the original consideration for the lease immediately before the concession was provided the rent concession is for relief for payments that were originally due on or before 30 June 2021. Payments included are those that are reduced or deferred on or before 30 June 2021, but any subsequent rental increases can go beyond 30 June 2021

•

there are no other substantive changes to the other terms and conditions of the lease.

The Company has determined that the practical expedient can be applied and the Company has elected to apply the practical expedient. As the concession is unconditional, it is accounted for on 1 April 2020 as this is the date that triggers the event. The Company opted to account for this concession as a negative variable lease payment of $53,063.

In addition, the Company has applied the exemptions for short term and low value leases and not recorded these on the balance sheet. In the current period the total expenditure on these types of leases was $261,966 and $8,950 respectively.

Where the Company has the unconditional right to defer the settlement of its lease obligations for at least 12 months after the reporting date they are presented as a noncurrent liability.

Key Judgement In determining the amount of the lease liabilities, judgement has been applied in determining the option periods which are reasonably likely to be exercised and the incremental borrowing rate which would be applicable to the Company.

28

16 CONTRIBUTED EQUITY

Membership fees

2020

2019

$

$

524

524

The membership fees were contributed by the initial members upon establishment of the Company. In accordance with the Constitution, members are not entitled to any reimbursement or return of initial membership fees upon ceasing to be a member.

17 RESERVES

At 1 January

2020

2019

$

$

2,980,188

2,182,031

1,183,005

1,558,428

862

8,167

-

-

(25,249)

(25,249)

-

(744,139)

4,137,856

2,980,188

Transfer from retained earnings in relation to: Capital reserve Reserve incentive scheme Hepzibah Tintner artist development program fund Reallocation from Hepzibah Tintner artist development program fund Reallocation from capital reserve At 31 December

18 COMMITMENTS AND CONTINGENCIES (a) Commitments The Company had commitments relating to the short-term lease of performance space at 31 December 2020 totaling $35,988. (2019: $18,392). (b) Contingencies The directors are not aware of any contingent liabilities as at 31 December 2020 (2019: none).

29

19 RELATED PARTY DISCLOSURES Total donations from directors were $461,280 for 2020 (2019: $417,000. $3,000 was paid to Carla Zampatti Pty Ltd for advertisement in Carla Zampatti’s 55-year anniversary magazine.

20 KEY MANAGEMENT PERSONNEL (a) Details of Key Management Personnel Current Directors Brett Clegg Pamela Bartlett Jillian Broadbent AC Mark Hassell Catriona Mordant AM Emma-Jane Newton Chrissy Sharp Carla Zampatti AC David Baxby Sandra McCullagh Paris Neilson David Friedlander Executives Anne Dunn Rafael Bonachela Sean Radcliffe Lizzi Nicoll

Chair Director Director Director Director Director Director Director - Refer note 22 Director Director Director Director Executive Director Artistic Director Chief Financial Officer Deputy Executive Director

Non-executive Directors of Sydney Dance Company do not receive remuneration for serving on the Board of Directors. (b) Key Management Personnel

Total compensation

2020

2019

$

$

1,063,865

837,684

(c) Other transactions and balances with Key Management Personnel There are no other transactions or balances with key management personnel other than the Directors’ donations disclosed in Note 19.

21 EVENTS AFTER THE REPORTING PERIOD On April 3 2021 Board Director Carla Zampatti passed away. The Company re-commenced operations at its renewed home at the Wharf as part of the Walsh Bay Arts Precinct in early 2021. The COVID pandemic continues to create volatility and an uncertain operating environment in 2021. Theatre capacity restrictions have recently been lifted and frequent and changing state border closures continue to make planning challenging. Sydney Dance Company had been in receipt of JobKeeper payments since the program commenced and these ceased on March 28th 2021 at the conclusion of the program.

There have been no other significant events occurring after the reporting period which may affect either the Company’s operations or results of those operations or the Company’s state of affairs.

30

Directors' declaration In accordance with a resolution of the directors of Sydney Dance Company, I state that: In the opinion of the directors: (a) the financial statements and notes of Sydney Dance Company are in accordance with the Corporations Act 2001 and the Australian Charities and Not-for-profits Commission Act 2012, including: (i) giving a true and fair view of its financial position as at 31 December 2020 and performance; (ii) complying with Australian Accounting Standards- Reduced Disclosure Requirements (including the Australian Accounting Interpretations), the Corporations Regulations 2001 and the Australian Charities and Not-for-profits Commission Regulation 2013; and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. (c) the provision of the Charitable Fundraising Act (1991) and its regulations and the conditions attached to the Authority to conduct fundraising have been complied with; and (d) the internal controls exercised by the Company are appropriate and effective in accounting for all income received and applied to its fundraising appeals. (e) the government funding received has been spent in accordance with funding agreements.

On behalf of the Board

Brett Clegg Chair Sydney, 27 April 2021

31

Declaration by Chairperson as required by the Charitable Fundraising Act 1991 (NSW) I, Brett Clegg, Chair of Sydney Dance Company, declare that in my opinion: (a) the accounts for the year ended 31 December 2020, give a true and fair view of all income and expenditure of Sydney Dance Company with respect to fundraising appeals; and (b) the statement of financial position as at 31 December 2020, give a true and fair view of the state of affairs of Sydney Dance Company with respect to fundraising appeals; and (c) the provisions of the Charitable Fundraising Act 1991 (NSW) and the regulations under the Act and the conditions attached to the authority have been complied with: and the internal controls exercised by Sydney Dance Company are appropriate and effective for all income received and applied from any fundraising appeals

Brett Clegg Chair Sydney, 27 April 2021

32

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

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

Independent Auditor's Report to the Members of Sydney Dance Company Opinion We have audited the financial report of Sydney Dance Company (the Company), which comprises the statement of financial position as at 31 December 2020, the 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 to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

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

giving a true and fair view of the Company's financial position as at 31 December 2020 and of its financial performance for the year ended on that date; and

b)

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

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

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

Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information obtained at the date of this auditor’s report is the directors’ report accompanying the financial report but does not include the financial report and our auditor’s 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.

33

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

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-Profits Commission Act 2012 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

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

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

•

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

34

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

•

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

•

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on the requirements of the NSW Charitable Fundraising Act 1991 and the NSW Charitable Fundraising Regulations 2015 We have audited the financial report as required by Section 24(2) of the NSW Charitable Fundraising Act 1991. Our procedures included obtaining an understanding of the internal control structure for fundraising appeal activities and examination, on a test basis, of evidence supporting compliance with the accounting and associated record keeping requirements for fundraising appeal activities pursuant to the NSW Charitable Fundraising Act 1991 and the NSW Charitable Fundraising Regulations 2015.

Because of the inherent limitations of any assurance engagement, it is possible that fraud, error or non-compliance may occur and not be detected. An audit is not designed to detect all instances of non-compliance with the requirements described in the above-mentioned Act and Regulations as an audit is not performed continuously throughout the period and the audit procedures performed in respect of compliance with these requirements are undertaken on a test basis. The audit opinion expressed in this report has been formed on the above basis.

35

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

Opinion In our opinion: a)

b)

the financial report of the Company has been properly drawn up and associated records have been properly kept during the financial year ended 31 December 2020, in all material respects, in accordance with: i.

sections 20(1), 22(1-2), 24(1-3) of the NSW Charitable Fundraising Act 1991;

ii.

sections 10(6) and 11 of the NSW Charitable Fundraising Regulations 2015;

the money received as a result of fundraising appeals conducted by the Company during the financial year ended 31 December 2020 has been properly accounted for and applied, in all material respects, in accordance with the above mentioned Act and Regulations.

Ernst & Young

Lisa Nijssen-Smith Partner Sydney 27 April 2021

36

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