Page 1

SYDNEY DANCE COMPANY ABN 59 002 707 897

GENERAL PURPOSE (RDR) FINANCIAL REPORT For the year ended 31 December 2018


SYDNEY DANCE COMPANY

Contents

Directors' report .................................................................................................................................................................... 2 Auditor's independence declaration …………….............................................................................................................. 8

Statement of profit or loss and other comprehensive income..................................................................................................................... 9

Statement of financial position………………………............................................................................................................................... 10 Statement of changes in equity ……………….................................................................................................................. 11 Statement of cash flows ………………………………………………………………………………………………………. 12 Notes to the financial statements ………………….......................................................................................................... 13

Governance statement……………………………………………………………………………………………………………………… 28 Directors' declaration ……………........................................................................................................................................ 29

Declaration by Chairperson as required by the Charitable Fundraising Act 1991 (NSW) …………….................................................... 30 Independent auditor's report …………….….……………....…………………………………………………………….......... 31

1


SYDNEY DANCE COMPANY

Directors' report Your directors submit their report on Sydney Dance Company (the "Company") for the year ended 31 December 2018. DIRECTORS The names of Company's directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period, unless otherwise stated. KAREN MOSES (CHAIR) PAMELA BARTLETT JILLIAN BROADBENT AC PETER BROWNIE BRETT CLEGG (DEPUTY CHAIR) KIERA GRANT MARK HASSELL CATRIONA MORDANT AM BEAU NEILSON EMMA-JANE NEWTON CHRISSY SHARP CARLA ZAMPATTI AC

(Appointed: 15 March 2018)

(Appointed: 30 April 2018)

Qualifications, experience and special responsibilities KAREN MOSES (CHAIR) - B.Economics, Dip. Education (Sydney) FAICD Appointed to the Board in May 2012 and to Chair in December 2016 Chair of the Nominations Committee Member of the Audit and Risk Committee (Chair 22 April 2013 to 8 December 2016) Member of the Capital Campaign Committee Director Charter Hall Group from September 2016 and Chair of the Audit and Risk Committee Director Orica Limited from July 2016 and member of the Audit and Risk Committee and the Safety, Health, Environment and Community Committee Director of Boral Limited from March 2016 and member of the Audit and Risk Committee and the Safety, Health and Environment Committee Director of Sydney Symphony Limited and Sydney Symphony Holdings Pty Limited from December 2015 and member of the Audit and Risk Committee Fellow to the Senate of Sydney University effective December 1, 2017 and Chair of the Finance Committee Former Director of SAS Trustee Corporation, Origin Group companies, Contact Energy Ltd, and the Australian Energy Market Operator Former Executive of Origin Energy Expertise: Financial, Strategic Management, Corporate Governance PAMELA BARTLETT Appointed to board in August 2012 Member of the Marketing and Commercial Activities Sub Committee Chair of SDC’s major fundraiser, Dance Noir in 2011, 2012 and 2013 Founding member of The Marmalade Foundation, operating and funding Lou’s Place, a safe place for women Former Executive Manager, American Express Company with 20 years’ experience in Card and Travelers Cheque Operations Studied liberal arts and business administration Expertise: Operational Management, Customer Service, Quality Assurance, Marketing and Fundraising

2


SYDNEY DANCE COMPANY

Directors' report (continued) DIRECTORS (continued) Qualifications, experience and special responsibilities (continued) JILLIAN BROADBENT AC - B. Arts (Sydney) Appointed to the board in February 2018 Member of the Audit and Risk Committee Director of Woolworths Limited Director of Macquarie Group Limited Chancellor of the University of Wollongong Chair of the Board of Swiss Re Life and Health Australia Limited Member of the Board of the National Portrait Gallery of Australia Former Chair of the Clean Energy Finance Corporation Former Member of the Board of the Reserve Bank of Australia Former Director of ASX Limited, Coca-Cola Amatil Limited, Special Broadcasting Service Corporation (SBS), Qantas Airways Limited, Westfield Property Trusts and Woodside Petroleum Ltd Expertise: Financial, Strategic Management, Corporate Governance PETER BROWNIE - B. Economics (Sydney) Appointed to the Board in August 2012 Chair of the Audit and Risk Committee (Appointed Chair in February 2017) Expertise: Finance, Strategy, Management, Corporate Contracts BRETT CLEGG (DEPUTY CHAIR)- B. Business (UTS) Masters of Commerce in Advanced Finance (NSW) Appointed to the board in March 2015 Member of the Marketing and Commercial Activities Committee Member of the Capital Campaign committee Member of Australian Institute of Company Directors (GAICD) Founding Partner – Cato & Clegg Former Publisher and Senior Executive at News Corp Australia and Fairfax Media Non-executive director hipages Group Expertise: Corporate Strategy, Media and Technology, Finance, Fundraising and Corporate Contacts KIERA GRANT - B. Economics (Sydney) FAICD Appointed to the board in March 2013 Member of the Audit and Risk Committee Member of the Capital Campaign Committee Non-executive Director of Samuel Smith and Sons (incorporating Yalumba Wines and Negociants Limited) Trustee of the AGNSW Foundation Non-Executive Director of Future Generation Global Non-Executive Director of Adairs Ltd Former Non-executive Director of Pacific Brands Ltd Former Executive Director of UBS Australia Expertise: Finance, Strategic Management, Corporate Governance and Corporate Contacts

3


SYDNEY DANCE COMPANY

Directors' report (continued) DIRECTORS (continued) Qualifications, experience and special responsibilities (continued) MARK HASSELL Appointed to the Board in February 2017 Chair of the Marketing and Commercial Activities Committee Partner, Customer, Brand & Marketing Advisory, Management Consulting – KPMG Australia Group Executive/Chief Customer Officer for Virgin Australia 2012 - 2017 Former British Airways Global Head of Customer Experience Other senior customer, brand and marketing roles at British Airways and QANTAS Expertise: Brand, Customer Service/experience, Operations, Colleague Engagement and Marketing CATRIONA MORDANT AM Appointed to the Board in December 2016 Member of the Marketing and Commercial Activities Committee Member of the Nominations Committee Foundation board member of the Museum of Contemporary Art Australia Director of the International Council of the Tate in London Member of the advisory board of Venetian Heritage in Venice Expertise: Fundraising, Strategic Management, Corporate Contacts BEAU NEILSON - B.Laws (UTS) Appointed to the Board in March 2015 Member of the Nominations Committee Advisory Board Member of Anti-Slavery Australia Gifting Committee Member of The Neilson Foundation Expertise: Philanthropy, Events, Relationship Management CHRISSY SHARP Appointed to the Board in December 2016 Member of the Audit and Risk Committee CEO, Sydney Writers’ Festival from 2018 Acting Executive Director (maternity cover), Sydney Dance Company 2016 Chair of the Dance Board, Australia Council for the Arts 2009-2012 Inaugural Director of The Wheeler Centre, Melbourne 2009-2011 GM Sadler's Wells, London, Former GM Sydney Festival, Former Head of Policy at SBS Expertise: Arts Management, Strategic Analysis, Government Relations

4


SYDNEY DANCE COMPANY

Directors' report (continued) DIRECTORS (continued) Qualifications, experience and special responsibilities (continued) CARLA ZAMPATTI AC Appointed to the Board in October 2012 Member of the Nominations Sub Committee Executive Chair of Carla Zampatti Pty Ltd. Board Member of European Australian Business Council Former director of the Australian Multicultural Foundation, MCA Foundation, UTS V-C's Industry Advisory Board, Westfield Holdings, McDonalds and the Sydney Theatre Company Foundation Former Trustee of the Art Gallery of New South Wales Former Chair of the SBS Corporation Honorary Doctorate of Laws at the Faculty of Arts, Monash University Honorary Doctorate of Letters from the University of Western Sydney 1999 for outstanding service to the University as a member of its Board of Governors Honorary Doctorate of Letters from the University of Wollongong Honorary Doctors of Design from the University of Technology, Sydney Commander of the Order of Merit of the Italian Republic Awarded The Australian Fashion Laureate in 2008 Expertise: Business, Export Markets, Board governance, Networks EMMA-JANE NEWTON - B. Commerce Hons (Monash), AICD Appointed to the board in April 2018 Member of the Marketing & Commercial Development Committee Currently Managing Director, Investment Banking Division, Morgan Stanley Former: Executive Director Telstra, Managing Director Credit Suisse Expertise: Finance, Strategy, Corporate relationships and engagement DIVIDENDS The Company is a not for-profit organisation which does not pay dividends. EMPLOYEES The Company employed 48 permanent employees as at 31 December 2018 (2017: 47 employees). PRINCIPAL ACTIVITIES The principal activities during the year were as follows: - Production and presentation of dance performances in Australia and overseas. - 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 and internationally. There have been no significant changes in the nature of these activities during the year.

5


SYDNEY DANCE COMPANY

Directors' report (continued) OPERATING RESULTS The surplus for the year ended 31 December 2018 was $253,261 (2017: $722,946). This annual surplus consists of an operating surplus of $15,476, calculated after funding the $798,395 impact of disruption costs on the base operating deficit result of $782,919 from the Infrastruture Project gross surplus of $1,036,179, leaving an Infrastructure Project net surplus of $237,784. Total income for the period is $12,383,669. This amount is made up of operational income of $10,792,997 and Infrastructure related income of $1,590,672 ($1,495,200 from donations and $95,472 from state government contributions). Expenses for the year total $12,130,408. This consist of $11,575,915 of operational expenses and $554,493 of Infrastructure Project related expenses. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There have been no significant changes in the state of affairs of the Company during the year. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD There have been no 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. OBJECTIVES Sydney Dance Company relocated in mid-2018 to facilitate our premises to be renovated as part of the Walsh Bay Arts Precinct development. Our usual activities have been continued across this period of disruption, with some changes and impacts due to operating across three venues and fewer studios. Sydney Dance Company performed to an audience totalling over 49,000 in 2018. There were 66 Australian performances in Sydney, Canberra and Melbourne, regional Queensland, Western Australia and Northern Territory and in 3 centres in regional NSW. The Company also performed to audiences in Chile, Columbia, Serbia, Slovenia, Wolfsburg in Germany as part of the Movimentos Festival, Théâtre National de Chaillot, Paris, France and 2 performances at the National Kaohsiung Center for the Arts (Weiwuying) in Taiwan. There were 17 international performances with a total audience of almost 19,000. Sydney Dance Company presented 14 different works across the year including nine commissioned new choreographic works which were supported by nine new music commissions. Sydney Dance Company’s education department presented more than 335 education activities, 4 school matinees and 65 school holiday workshops to almost 12,000 participants. The Pre-Professional Year (PPY) continues to grow in reputation as it completed its fifth year. PPY students concluded the year with a premier performance of newly choreographed works which attracted over 800 people over 3 nights. SDC commercial dance classes continue to be popular with almost 79,000 annual attendances. Over 3,900 classes were held 7 days a week for 49 weeks of the year. 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. 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.

6


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 2018, 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

Yours sincerely

Lisa Nijssen-Smith Partner 24 April 2019

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


SYDNEY DANCE COMPANY

Statement of profit or loss and other comprehensive income For the year ended 31 December 2018 Notes

2018 $

2017 $

Revenue

5(a)

12,383,669

11,937,778

Other income

5(b)

78,463

41,398

Administration and marketing expenses including staff costs Performance and production expenses Commercial activity related costs Philanthropy activity related costs Sponsorship activity related costs Education costs Operating surplus for the year Other comprehensive income Total comprehensive income for the year

(7,389,243) (2,904,725) (975,403) (651,347) (46,868) (241,285) 253,261 253,261

(6,564,304) (2,772,151) (827,264) (761,995) (330,516) 722,946 722,946

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

9


SYDNEY DANCE COMPANY

Statement of financial position As at 31 December 2018 Notes Assets Current assets Cash and short-term deposits Trade and other receivables Inventories Other assets Total current assets Non-current assets Property, plant and equipment Reserve incentive scheme Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Deferred revenue Employee benefit liabilities Government grant advances Total current liabilities Non-current liabilities Employee benefit liabilities Total non-current liabilities Total liabilities

2017 $

6 7 8

3,420,568 388,846 16,597 1,528 3,827,539

3,137,794 463,084 3,600,878

9 10

125,361 558,339 683,700 4,511,239

77,725 550,747 628,472 4,229,350

11 12 13 14

516,716 482,778 360,370 131,828 1,491,692

298,375 425,096 335,449 392,320 1,451,240

13

26,807 26,807 1,518,499

38,631 38,631 1,489,871

2,992,740

2,739,479

524 810,185 558,339 256,082 1,367,610 2,992,740

524 1,058,382 550,747 1,129,826 2,739,479

Net assets Equity Contributed equity Retained earnings Reserve incentive scheme Artist development program fund Capital reserve Total equity

2018 $

15 16 16 16

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

10


SYDNEY DANCE COMPANY

Statement of changes in equity For the year ended 31 December 2018

At 2 January 2017 Surplus for the year Total comprehensive income for the year Transfer to capital reserves Transfer to reserve incentive scheme At 31 December 2017 Surplus for the year Total comprehensive income for the year Transfer to capital reserve Transfer to reserve incentive scheme Transfer to artist development fund Reallocation from capital reserve At 31 December 2018

Reserve Artist incentive development scheme program fund (Note 16) (Note 16) $ $

Contributed equity (Note 15) $

Retained earnings $

Capital reserve (Note 16) $

524

1,078,009

400,000

538,000

-

2,016,533

-

722,946

-

-

-

722,946

-

722,946

-

-

-

722,946

-

(729,826)

729,826

-

-

-

-

(12,747)

-

12,747

-

-

Total equity $

524

1,058,382

1,129,826

550,747

-

2,739,479

-

253,261

-

-

-

253,261

-

253,261

-

-

-

253,261

1,036,179 -

-

-

-

7,592

-

-

-

256,082

-

-

-

-

558,339

256,082

2,992,740

-

(1,036,179)

-

(7,592)

-

(256,082)

-

798,395

524

810,185

(798,395) 1,367,610

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

11


SYDNEY DANCE COMPANY

Statement of cash flows For the year ended 31 December 2018 2017 $

2018 $ Operating activities Receipts from activities Payments to suppliers and employees Receipt of government grants Interest received Net cash flows from operating activities Investing activities Purchase of property, plant and equipment Net cash flows used in investing activities

9

8,615,466 (11,461,518) 3,201,585 23,441 378,974

7,933,563 (10,577,169) 3,364,780 15,747 736,921

(96,200) (96,200)

(29,384) (29,384)

Financing activities Net cash flows used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of year

6

-

-

282,774 3,137,794 3,420,568

707,537 2,430,257 3,137,794

The above statement of cash flows should be read in conjunction with the accompanying notes. The above statement shows cashflow exclusive of reserves held under the reserve incentive scheme.

12


SYDNEY DANCE COMPANY

Notes to the financial statements For the year ended 31 December 2018 1

CORPORATE INFORMATION The financial report of the Company for the year ended 31 December 2018 was authorised for issue in accordance with a resolution of the directors on 24 April 2019. Sydney Dance Company is a not for-profit company limited by guarantee and as such has no authorised capital and is domiciled in Australia. The registered office and principal place of business of the Company is: The Wharf, Pier 4, Hickson Road, Walsh Bay, NSW 2000. The Company exists to present live dance in Australia and overseas and to promote the study of dance. The nature of the operations and principal activities of the Company are further described in the directors' report.

2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the ACNC Commission Act 2012, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board, and the Australian Charities and Not-for-Profits Commissions Act 2012. The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the ACNC Commissions Act 2012, Australian Accounting Standards - Reduced Disclosure Requirements and other authoritative pronouncements of the Australian Accounting Standards Board. The Company is a not-for-profit, private sector entity which is not publicly accountable. Therefore, the financial statements for the Company are tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements (AASB - RDRs). The financial report has also been prepared mainly on a historical cost basis. The financial report is presented in Australian dollars ($). (b) Changes in accounting policy, disclosures, standards and interpretations New and amended standards and interpretations The Company applied AASB 9 Financial Instruments for the first time. The nature and effect of the changes as a result of adoption of this new accounting standard is described below. Several other amendments and interpretations apply for the first time in 2018, but do not have an impact on the financial statements of the Company. AASB 9 Financial Instruments AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting. The Company has applied AASB 9 retrospectively, with the initial application date of 1 January 2018. The classification and measurement requirements of AASB 9 did not have a significant impact in the Company.

13


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(b) Changes in accounting policy, disclosures, standards and interpretations (continued) New and amended standards and interpretations (continued) Certain Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Company for the annual reporting year ended 31 December 2018. The directors have not early adopted any of these new or amended standards or interpretations. The directors are in the process of assessing the impact of the applications of AASB 15 Revenue from Contracts with Customers (effective 1 January 2019 for not-for-profit entities), AASB 1058 Income of Not-For-Profit Entities (effective 1 January 2019) and AASB 16 Leases (effective 1 January 2019) and its amendments to the extent relevant to the financial statements of the Company. (c) Going concern 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 Multi-partite Agreement was current for the period 2016–2018 and renewed 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 Multi-partite Agreement. The Company’s Directors have undertaken a thorough assessment of going concern; this review considered the operating budgets, projected balance sheet position and detailed cash flow for the Company for the period 20192021. The combination of these considerations indicates that the Company will be able to meet its obligations as and when they fall due for at least 12 months from the date of the financial statements. Accordingly, the financial statements have been prepared under the going concern principle. (d) Current versus non-current classification The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: - Expected to be realised or intended to be sold or consumed in the normal operating cycle - Held primarily for the purpose of trading - Expected to be realised within twelve months after the reporting period, or - Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current. A liability is current when: - It is expected to be settled in the normal operating cycle - It is held primarily for the purpose of trading - It is due to be settled within twelve months after the reporting period, or - There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Company classifies all other liabilities as non-current.

14


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(e) Cash and short-term deposits Cash and short-term deposits in the statement of financial position comprise cash at bank and on hand and shortterm deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value. The Artist Development Program Fund represents restricted funds for use in developing and maintaining the Hephzibah Artist Development Program. Funds to the value of $256,082 were received from the Hephzibah Tintner Foundation and 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 For the purpose of the statement of cash flows, cash and cash equivalents consists of cash, and short-term deposits as defined above. (f) Trade and other receivables A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Trade receivables, which generally have 14-30 days terms, are recognised and carried at original invoice amount less an allowance for expected credit losses. (g) Inventory Inventories are stated at the lower of cost and net realisable value. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. (h) Impairment of financial assets The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL). For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. (i) Property, plant and equipment Plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment. All other repair and maintenance costs are recognised in profit or loss as incurred. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

15


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(i) Property, plant and equipment (continued) Buildings – over 20 years Plant and equipment - over 2 to 5 years Office equipment - over 5 years Furniture and fittings - over 5 years Computer equipment - over 3 years An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (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 when the asset is derecognised. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. (j) Impairment of non-financial assets The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU's) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. An assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss and other comprehensive income unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase. (k) Leases The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset (or assets), even if that asset is (or those assets are) not explicitly specified in an arrangement. A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a finance lease. An operating lease is a lease other than a finance lease. Operating lease payments are recognised as an operating expense in the statement of profit or loss and other comprehensive income on a straight-line basis over the lease term.

16


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(l) Trade and other payables Trade and other payables are initially recognised at fair value and subsequently carried at amortised cost. Due to their short-term nature they are not discounted. They represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition. (m) Provisions and employee benefit liabilities General Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit or loss and other comprehensive income net of any reimbursement. Wages and salaries Liabilities for wages and salaries, including non-monetary beneďŹ ts, expected to be settled within 12 months after the end of the period in which the employees render the related service are recognised in respect of employee's services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. All other short-term employee beneďŹ t obligations are presented as payables. Long service leave and annual leave The Company does not expect its long service leave or annual leave benefits to be settled wholly within 12 months of each reporting date. 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 using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. 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. (n) Contributed equity 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. (o) Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The specific recognition criteria described below must also be met before revenue is recognised. Box office Box office revenue is recognised on delivery of the performance.

17


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(o) Revenue recognition (continued) Fundraising, Sponsorship and Government grants Non-reciprocal Fundraising, Sponsorship and Government Grant income are brought into account in the year they are received. For reciprocal Fundraising, Sponsorship and Government Grant income, the income can be deferred to a future year if there is a contract or agreement linking it to a specific future project or event. Education revenue Education revenue is recognised as revenue in the period which the service is provided. Income received in advance is deferred and will be recognised in the following year. Sponsorship in-kind Sponsorship in-kind is brought to account as revenue in the year to which the equal and corresponding expense relates. Consequently, the revenue and expenses are recognised in the same accounting year. Commercial revenue - Dance classes Dance classes are recognised as revenue within the period in which they are provided. Dance class tickets have an expiry date of 6 months (2017: 6 months). The revenue from unused dance class tickets at year end is deferred into the following year after an adjustment is made for tickets that will remain unused at the date of expiry. Whilst 3, 5 and 10 pack dance class tickets expire after 6 months, dance class gift vouchers are subject to the new 3 year expiry legislation. The Company also sell performance vouchers which are limited to performances within a specific year. Commercial revenue - Other Other commercial revenue includes studio hire and rental revenue from a pop-up cafe both of which are recognised when earned. School holiday workshops are also classified as other commercial revenue and revenue is also recognised when earned. General gift vouchers General gift vouchers are recognised as revenue within the period they are utilised. Gift vouchers have an expiry date of 3 years. The income from unused gift vouchers are deferred into the following year. Performance vouchers Performance vouchers are recognised as revenue when they are sold. Performance vouchers must be used for performances in a specific year. (p) Finance income Interest income Interest income is recorded using the effective interest rate (EIR) method. The EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset. (q) Income tax The Company has not provided for income tax as it is exempted from income tax by virtue of section 50-5 of the Income Tax Assessment Act, 1997.

18


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(r) Goods and services tax (GST) 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. Commitments and contingencies, if any, are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as part of operating cash flows. (s) Government grants Government grants are recognised when there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. When the grant relates to an expense item it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. Any funding not spent on the planned activities agreed by both parties, at the start of the calendar year, is required to be repaid unless other arrangements have been agreed to. (t) Comparatives Where necessary, comparative figures have been reclassified to conform with changes in presentation in the current year.

19


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 3

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. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur. Long service leave provision The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at balance date. In determining the present value of the liability, attrition rates and pay increases have been taken into account. Annual leave provision The liability for annual leave provision is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at balance date. In determining the present value of the liability and pay increase through inflation have been taken into account. Unused dance class tickets The revenue from unused dance class tickets at year end is deferred into the following year after an adjustment is made for tickets that will remain unused at the date of expiry. Estimates of the future use of these tickets, based on historical use of tickets, are applied in the calculation of this value.

20


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 4

FUNDRAISING Sydney Dance Company undertakes fundraising appeals throughout the year, it hold 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 2018 $ Gross proceeds from fundraising appeals Individual giving Fundraising events Less total costs of fundraising Individual giving Fundraising events

Net surplus obtained from fundraising

2017 $

2,718,299 782,506 3,500,805

2,107,750 851,302 2,959,052

116,478 298,153 414,631

214,090 214,664 428,754

3,086,174

2,530,298

Application of funds Funds raised through individual giving and fundraising events support Sydney Dance Company activities. Forms of fundraising Appeals held during the year ended 31 December 2018: - General and Personal Appeals for the Commissioning Fund, Education Fund and Touring Fund and Capital Campaign. - Fundraising events include Dance Noir, Buon Ricordo Event 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 by Monetary Figures and Percentages for the year ended 31 December 2018 2017 2018 2018 % $ % Total cost of fundraising/ gross income 414,631/ 428,794/ 3,500,805 from fundraising 2,959,052 12% Net surplus from fundraising/ gross 3,086,174/ 2,530,298/ 3,500,805 income from fundraising 2,959,052 88%

2017 % 14% 86%

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

21


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 2018 $

2017 $

1,488,180 206,285 629,193 2,005,605 1,495,200 1,799,030 360,162 3,462,077 937,937 12,383,669

1,590,102 234,714 624,386 1,921,580 1,037,835 1,796,079 372,020 3,521,046 840,016 11,937,778

31,033 47,430 78,463

28,494 12,904 41,398

(c) Salaries and employee benefit expenses included in the statement of profit or loss and other comprehensive income Wages and salaries Workers' compensation costs Long service leave expense Total employee benefit expense

5,922,988 186,830 77,534 6,187,352

5,605,174 98,652 54,911 5,758,737

(d) Depreciation expense included in the statement of profit or loss and other comprehensive income Depreciation of non-current assets

48,564

40,445

5

REVENUE AND EXPENSES

(a) Revenue Box office and fees Sponsorship - cash Sponsorship in-kind Fundraising Capital campaign contribution Commercial revenue Education revenue Government grants - cash (Note 4(e)) Government grants in-kind rental (Note 4(e)) Total revenue (b) Other income Interest income Other income Total other income

(e) Government grant income included in the statement of profit or loss and other comprehensive income Australia Council Grants: MPAB grant as per tripartite agreement Australia Council Support Arts Organisation Change Management & Growth Australia Council Touring Fund Grant Department of Foreign Affairs and Trade Grant Create NSW Grants: MPAB grant as per tripartite agreement Inkind Rental Assistance NSW Touring Grant Decant Program Support Total Government Grants

2,687,076 315,394 40,000

2,649,976 90,000 370,424 40,000

278,828 937,937 80,307 60,472 4,400,014

273,900 840,016 96,746 4,361,062

22


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 2018 $ 6

2017 $

CASH AND SHORT-TERM DEPOSITS Cash at banks and on hand Short-term deposits

2,304,027 1,116,541 3,420,568

3,137,794 3,137,794

Cash at banks earn interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates. Endowment Cash represents an amount of $256,214 received in 2018. In accepting this endowment the Company has agreed to utilise the proceeds of this grant to create the Hephzibah Artist Development Program. The Company is able to utilise $25,000 per annum over 10 years. The first $25,000 has been released in 2018 and the final balance will be released in 2028. 7

TRADE AND OTHER RECEIVABLES Trade receivables Allowance for expected credit losses

Sundry debtors Goods and services tax receivable Other receivables Prepayments Carrying amount of trade and other receivables Movements in the provision for expected credit losses were as follows: At 1 January Utilised in the year Charge for the year At 31 December 8

56,000 56,000

349,368 (165,263) 184,105

14,357 61,790 95,257 161,442 388,846

10,108 41,796 227,075 463,084

165,263 (165,263) -

165,263 165,263

INVENTORY Stock

16,597

-

23


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 Plant and equipment $ 9

Office equipment $

Furniture and fittings $

Computer software $

122,518 44,445 166,963

81,903 22,304 104,207

19,154 29,451 48,605

24,415 24,415

247,990 96,200 344,190

75,307 26,583 101,890

62,311 16,659 78,970

8,232 5,322 13,554

24,415 24,415

170,265 48,564 218,829

Net book value At 31 December 2018

65,073

25,237

35,051

-

125,361

At 31 December 2017

47,211

19,592

10,922

-

77,725

Total $

PROPERTY, PLANT AND EQUIPMENT Cost At 1 January 2018 Additions At 31 December 2018 Accumulated depreciation At 1 January 2018 Depreciation charge for the year At 31 December 2018

2018 $

2017 $

558,339

550,747

10 RESERVE INCENTIVE SCHEME Reserve Incentive Scheme

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, Arts 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 $558,339 (2017: $550,747). No funds were required to be paid into this account by the Company in 2018 (2017: nil). The increase in the fund balance relates to interest received from the short-term deposits. 11 TRADE AND OTHER PAYABLES Current Trade payables (a) Other payables (b)

354,506 162,210 516,716

59,537 238,838 298,375

(a) Trade payables Trade payables are non-interest bearing and are normally settled on 30 day terms. (b) Other payables Other payables are non-trade and non-interest bearing.

24


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 2017 $

2018 $ 12 DEFERRED REVENUE Dance class deferred revenue Education activity deferred revenue Development activity deferred revenue Performance related deferred revenue Gift voucher deferred revenue

151,537 47,104 120,000 150,975 13,162 482,778

128,657 42,324 120,000 134,115 425,096

118,132 242,238 360,370

162,062 173,387 335,449

26,807

38,631

36,926 94,902 131,828

352,320 40,000 392,320

13 EMPLOYEE BENEFIT LIABILITIES Current Annual leave Long service leave

Non-current Long service leave

Ronak Topiwala Manager, Technology Risk

14 GOVERNMENT GRANT ADVANCES Current Australia Council touring grant advances Department of Foreign Affairs and Trade grant advance NSW Government touring grant advances 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

392,320 4,139,522 (4,400,014) 131,828

548,586 4,204,796 (4,361,062) 392,320

15 CONTRIBUTED EQUITY Membership fees

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. 16 RESERVES At 1 January Transfer from retained earnings in relation to: Capital reserve Reserve incentive scheme Artist development program fund Reallocation from capital reserve At 31 December

1,680,573 1,036,179 7,592 256,082 (798,395) 2,182,031

938,000 729,826 12,747 1,680,573

The capital reserve represents income received relating to the capital campaign fund less any specific expenses incurred related to the move to Ultimo and the refurbishment of the Walsh Bay premises. 25


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 17 COMMITMENTS AND CONTINGENCIES (a) Commitments Leasing commitments The Company has entered into 2 operating leases with Arts NSW concerning the lease of their premises, with lease terms between one and five years. Minimum future commitments with Jones Street and Wattle Street at year end are $26,622 and $62,118 respectively (2017: $nil). (b ) Contingencies The directors are not aware of any contingent liabilities as at 31 December 2018 (2017: none). 18 RELATED PARTY DISCLOSURES Transactions with related parties Donations: Total donations from directors were $534,000 for 2018 (2017: $298,550). 19 KEY MANAGEMENT PERSONNEL (a) Details of Key Management Personnel Current Directors Karen Moses Pamela Bartlett Jillian Broadbent AC Peter Brownie Brett Clegg Kiera Grant Mark Hassell Catriona Mordant AM Beau Neilson Emma-Jane Newton Chrissy Sharp Carla Zampatti AC Executives Anne Dunn Rafael Bonachela Sean Radcliffe

Chair Director Director Director Deputy Chair Director Director Director Director Director Director Director

Executive Director Artistic Director Deputy Executive Director, Company Secretary

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

Total compensation

2018 $ 777,653

2017 $ 728,184

(c) Other transactions and balances with Key Management Personnel Donations from directors are disclosed in Note 18. There are no other transactions or balances with key management personnel.

26


SYDNEY DANCE COMPANY

Notes to the financial statements (continued) For the year ended 31 December 2018 20 EVENTS AFTER THE REPORTING PERIOD There have been no 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.

27


SYDNEY DANCE COMPANY

Governance statement For the year ended 31 December 2018 This statement outlines the Board and Committee structures that were in place throughout the financial year. (a) Board of Directors The board is responsible for the overall corporate governance of the Company including its corporate planning, establishing goals for management and monitoring achievement of these goals. The board met 7 times in the last year. To assist in the execution of its responsibilities the board has established five standing committees: the Audit and Risk Committee, the Marketing and Commercial Activities Committee, the Nominations Committee, the Capital Campaign Committee and other Development related committees as required. The board currently has twelve members. Two new directors have been added to the board as from March 2018. The names of board members at the date of this statement are set out in the Director’s Report on page 2 of these financial statements. Established skills represented on the board include finance, marketing, operations, stakeholder management and fundraising. The Board maintains a skills matrix to inform new appointments. (b) Audit and Risk Committee The Audit and Risk Committee is responsible for reviewing, advising and evaluating the Company’s financial controls, procedures and policies including the review of annual budgets, management accounts and forecasts. The committee reviews the annual audit plan and statutory accounts. The committee also reviews and evaluates key risks. The committee meets bi-monthly. Currently it is comprised of Peter Brownie (Audit and Risk Committee Chair), Karen Moses (Board Chair), Kiera Grant, Chrissy Sharp and Jillian Broadbent (Board members). The Executive Director and Finance Manager attend the meetings. (c) Marketing and Commercial Activities Committee The Marketing and Commercial Activities Committee is responsible for strategic guidance in relation to marketing, communications plans and commercial activities. This function includes post season reviews and recommendations for future marketing campaigns, corporate sponsorship and other commercial revenue generating activities. The committee meets on a quarterly and an as needs basis. Currently is comprised of Mark Hassell (Committee chair), Pam Bartlett, Brett Clegg, Catriona Mordant, Emma-Jane Newton (Board members). The Executive Director, Artistic Director, Finance Manager, Development Director, Education and Access Director and Marketing Manager attend the meetings. (d) Nomination Committee The Nominations Committee meets to identify, propose and discuss the skills and suitability of persons for nomination and election to the Sydney Dance Company board of directors. The committee also has the responsibility of identifying skills gaps in the current Sydney Dance Company board and finding suitable replacements thus ensuring an appropriate combination of skills, experience and influence. The committee meets twice a year and on an as-needs basis. Currently it comprises Karen Moses (Chair), Beau Neilson, Carla Zampatti, Catriona Mordant (Board members). The Executive Director attends the meetings. (e) Development Committees Capital Campaign Committee – this committee plans for the required raising of funds relating to the redevelopment of The Wharf Precinct by the state government. This committee currently meets on a quarterly or as needed basis. The committee currently consists of Julian Knights (External Chair, ex-Chair of the Board), Karen Moses (Board Chair), Kiera Grant, Brett Clegg (Board members), Andrew Messenger (ex-Chair of the Board), Sandra McCullagh, Ed Gilmartin, , Executive Director, Development Director. Dance Noir Committee - Sydney Dance Company’s major fundraising event Dance Noir is managed by its own committee. In 2018 the committee was comprised of Board member, Pamela Barlett and additional external expert members. This committee meets regularly in the six month lead up to the event. 28


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 2018, 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 2018 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 Group in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have 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. 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. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

31


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.

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.

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


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 noncompliance may occur and not be detected. An audit is not designed to detect all instances of noncompliance 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. 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 2018, 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 2018 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 24 April 2019 33

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

Profile for SydneyDanceCompany

2018 Financial Report  

2018 Financial Report  

Advertisement