(a company limited by a guarantee) ABN 67 003 352 181
Synergy & TaikOz Ltd Annual Report 31 December 2017
© Synergy & TaikOz Ltd 2018
Synergy Percussion & Taikoz : Annual Report 2017
Contents
Contents Directors’ Report 3 Artistic Director’s Report 13
2
Auditor’s Independence Declaration
24
Financial Report
25
Statement of Comprehensive Income
26
Statement of Financial Position
27
28
Statement of Changes in Equity
Cash Flow Statement
29
30
Notes to the Financial Report
Directors’ Declaration
46
Declaration by General Manager
47
Independent Auditor’s Report
48
Synergy Percussion & Taikoz : Annual Report 2017
Directors’ Report
Directors’ Report Your directors submit the financial report for Synergy & TaikOz Ltd for the year ended 31 December 2017.
Directors The names of the directors in office during the year and until the date of this report are: • Jeremy Wright (Chair, Board)
• Ian Cleworth
• Jodie Baker (Chair, Finance and Risk Committee)
• Phillipa Berkett
• Norman Weaver (Chair, Philanthropy Committee) • Elsa Atkin
• Karen Russell • John Sharpe
Karen Russell joined the Board on 14 August 2017, John Sharpe joined the Board on 11 September 2017, Helen Brown and Elizabeth Hill resigned on 9 July 2017.
Principal activities The principal continuing activities of the company consisted of the promotion of the study, practice and performance of contemporary music and associated art forms, and the education of the general public in taiko practice.
Operating result The surplus for the year amounted to $5,320, ($7,216 surplus 2016).
Dividends No dividend was declared or paid by the directors during the year. The company’s constitution prohibits the declaration or payment of dividends.
Environmental issues The company’s operations are not regulated by any particular and significant environmental regulation under a law of the Commonwealth or State.
Regulation The Company is regulated under the Charitable Fundraising (NSW) Act 1991. The company is also registered with the ACNC.
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Synergy Percussion & Taikoz : Annual Report 2017
Directors’ Report
Directors’ Report A Note from the Chair Overview Taikoz marked its 20th Anniversary in 2017 and it was duly celebrated in October with a wonderful concert at the City Recital Hall. Other features of the year included a Synergy farewell concert for our past Synergy Artistic Director Timothy Constable, and a sell-out performance in Melbourne for Taikoz’s The Beauty Of 8. However, the year’s program was strongly affected by the loss of regular Australia Council funding. This demanded the company be frugal and risk-averse, with the administrative resources and public performances, especially for Synergy, considerably reduced. At all times we remained solvent (with net assets of $295,921 at year’s end) and a small surplus of $5,320 was recorded. The company retained its Create NSW funding, maintained its focus on philanthropy, and also benefited from a welcome corporate sponsorship from TAL. The Taikoz school activity and level of corporate performances were also maintained.
Taikoz Wonderfully led by Artistic Director Ian Cleworth, Taikoz was busy from early in the year with The Beauty Of 8 being performed at the Melbourne Asia Topa Festival in February 2017, with the sellout audience providing a standing ovation. This was followed in late March with a performance at the Bowral Autumn Music Festival, also to a sell-out audience. We performed at the Darling Quarter Theater on 12th May after which we hosted our annual Supporters Event, where for the first time as a fundraising activity, we auctioned off limited edition Greg Barrett photographs of the Taikoz ensemble. The crowning achievement for the year was the production of 20: Land-Sea-Sky-Home, featuring two World Premieres commissioned for the occasion by Sandy Evans and Ian Cleworth. It was presented at the City Recital Hall in October to a virtual sell-out house. Given appropriate critical acclaim, this was a wonderful celebration of Taikoz’s 20th Anniversary and a huge achievement for Ian Cleworth. The Taikoz classes started the year with just under 100 students. The Dojo in Ultimo still provides for Introductory Classes and player Intensive Development programs. Our IDPE class (Individual Development Program Ensemble) held their annual concert at St Stephens in Newtown on the 25th of November. There were also performances by the Onikenbai Club, our youth group TATAKU and by Taikoz. It was great to see the students perform and to see how they have progressed over the past 12 months. Meanwhile, we were able to license the film of The Beauty Of 8 to the NSW Education Arts Unit as an educational resource for teachers. We have taken on two new members this year with Sophie Unsen joining in July and Joe Small from the USA in October. Claudia Wherry became our Young Artist and Sophie Ang took on the extra role of Corporate Performance and Workshop Coordinator. 4
Synergy Percussion & Taikoz : Annual Report 2017
Directors’ Report
Synergy The feature of Synergy’s year was a “thank you” performance for outgoing Artistic Director Timothy Constable that was enjoyed by a near capacity house at the Darling Quarter Theatre on the 3rd of December. Despite the scheduling challenges to ensure key players were available, it turned out to be a superb occasion of the best avant-garde music available in Sydney, well appreciated by the transfixed audience. This concert clearly showed why we need to persist with the evolution of Synergy Percussion. The other feature of the year was the publication of the Synergy CD of Anthony Pateras’ Beauty will be amnesiac or will not be at all, which received good reviews and international airplay. Meanwhile 40 Under 40 was also developed for license to the NSW Education Arts unit as an educational resource. Naturally, now that Timothy Constable has formally stepped down as Synergy’s Artistic Director, the ensemble has lost momentum. Finding a suitable replacement is underway, with several good prospects being considered. We were sad to lose Tim Hansen, Administrator of Synergy, early in the year, especially after his great work for the ensemble over the past 4 years and the mammoth task of producing 40 Under 40.
Premises Finding a home the company can call its own (beyond the Dojo in Ultimo) is still an issue, and may remain one while we have no base Commonwealth funding. However, our instrument storage did remain reasonably stationary this year, with ongoing ‘temporary’ premises in Lillyfield. Other options are still actively being sought and a meeting with the Minister for the Arts in January 2018 may have helped our case. We are still working towards the realisation of the Sculthorpe Centre for Percussive Arts – watch this space. Meanwhile our significantly reduced Administration team remained in the Annandale office throughout the year.
Funding, Philanthropy and Sponsorship The lack of ongoing Australia Council funding has changed the nature of how we operate, necessitating more small-theatre style performances, invitational-only touring and very lean administration. We will still seek project funding from the Council but have to now pursue alternate sources of financial support. In 2016-17 we benefitted from a one-off transition grant from the Australia Council (with $48k reflected in the 2017 year) and welcomed a $15k grant for our 20th Anniversary series of projects from the City of Sydney. We have appreciated the Create NSW funding this year ($130k) and had news late in 2017 that this would continue for the next two years at $150k pa. And we have renewed our TAL sponsorship for $50k for the second year. Apart from performance and education revenue, our other source of funding is Philanthropy. In 2017 we achieved an amount of $101,188 from Donations, Foundations and fundraising, representing nearly 13% of our income. So philanthropic donations remain a mainstay of our non-operational income, together with Create NSW and TAL funds. 5
Synergy Percussion & Taikoz : Annual Report 2017
Directors’ Report
Marketing and Administration Income from the Company’s collective performances, education and marketing activities amounted to $389,664. This represents virtually half the Company’s total income. A substantial administration effort was needed at the start of 2017 to wrap up after the Chi Udaka tour of India. Also, the accounting system transferred across to a Xero platform early in the year. Acquittals were required for previous DFAT, Catalyst and Australia Council Grants, and while there were a number of award nominations that were aided considerably by Penny Campion, we only came away as a Finalist in the 2017 Arts Music Awards for “Excellence by an Organisation”. Our Board has worked diligently through 2017, with two personnel changes. We lost Helen Brown and Elizabeth Hill during the year and thank them both for long, loyal and terrific service to both ensembles. In their place we gained Karen Russell and John Sharpe and the company has already benefitted from their involvement so far.
Future Plans The year included significant planning for another active 2018 and beyond – especially given a major Taikoz performance with the SSO in February. This will be followed with other NSW concerts and possible touring in Queensland, NSW and Melbourne for Taikoz in 2019. For Synergy, a collaboration with the Sydney Chamber Choir in August and another with Louise Devenish in November 2018 will be followed in 2019 with Louise and Simon Barker each directing the ensemble in new works. A planning day was undertaken by the hardworking Synergy & TaikOz Board on a Sunday in September and a number of initiatives and consideration arose, including: • The need to define the future of Synergy Percussion and identify a potential Artistic Director • Developing our marketing resources • Growing our School and Corporate performances • Looking at flexibility in our programing to work with sympathetically aligned industries and broadening our performance opportunities • Adapting to a new business model that includes more small-theatre productions and the pursuit of alternative funding sources • Consideration of premises that may be shared and possibly positioned in Western Sydney. These considerations will all help Synergy and Taikoz to not only survive but thrive. We have had a good year, artistically and financially, and are focused on continuing to produce fine music and grow opportunity.
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Synergy Percussion & Taikoz : Annual Report 2017
Directors’ Report
2017 Donor Acknowledgements Synergy Percussion and Taikoz would like to pay tribute to the following donors who contributed to our activities in 2017.
Synergy & Taikoz Instrument Fund Julie Miller Norman Weaver The J. Permsew Foundation
Commissioning Circle Helen Brown Meredith Brooks Robert Green Terry Ashman The J. Permsew Foundation
Inner Beat Donors $500 or more Anonymous
Elsa Atkin
Phil Breaden
Anonymous
Eoin de Burca
Phillipa Berkett
Alden Toevs
Gina Bowman
Rachel Sieff
Angela Bowne
Janet Hansen
Richard Pollitt
Azabu Tango Papa
Jeremy Davis
Rebekah Jenkin
Bill Torrey
Jeremy Long
Robert Green
Brian Everingham
John Sharpe
Tim & Bryony Cox
Carl Vine
Kerry & Maria Ang
Carolyn Gould
Kim McLoughlin
Trudy Weibel & Gernot Heiser
Dr Jennifer Gill
Marilyn Smith & Jeremy Wright
Dr Rodney Smith & Elizabeth Hill
Valerie Tupper Victoria Parsons
Noriko Shimada
William Warner
David Bruce-Steer
Norman Weaver
Yukiko Nihei
Elizabeth Tupper & John Morgan
Perpetual Foundation
Yvonne Krenzien
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Synergy Percussion & Taikoz : Annual Report 2017
Directors’ Report
2017 Donor Acknowledgements (continued) Synergy & Taikoz Friend $1 - $499
8
Adeline Teoh
Ian Sawell
Philip Robinson
Adrienne Unger
Ita Kurniasari
Rebecca Kaiser
Alan Luscombe
Jacelyn Chen
Rick Lock
Alina Gollner
Jonathon Poon
Rie Downey
Alison Blatcher
Julienne Leathart
Rita Ooi
Ana Anderson
Karen Jakobsen
Rosamund Plummer
Anne Carpenter
Karen Steains
Roslyn Laird
Brian Nixon
Keiko Seino
Ruth Thompson
Carolyn Behm
Kees Boersma
Saint Stephen’s College
Charlie Chen
Lai Meng Chin
Sally Glover
Christine Newman
Lisa Mains
Samantha Newton
Claire Boyle
Lisa McNab
Sandie Rogers
Claire Tanshujuan
Leigh Wood
Sandra Lacey
Cynthia Cassinelli
Louise Welch
Sarah Buckler
David van Reyk
Maxine Brody
Sharon van Reyk
Elaine Minty
Margaret Crouch
Silvia Cabrera Soler
Elizabeth Sakker
Marg Hansen
Simone Doherty
Gail Pemberton
Martin Wesley-Smith
Steve Davidson
Gary Campbell
Min Li Chong
Tomoko Player
Helen Campbell
Mirei Ballinger
Wendy Tsui
Hikaru Watanabe
Nerida Wu
Yumiko Harada
Hitomi Ueno
Peter Cassidy
Ian Cleworth
Philip Lincoln
Synergy Percussion & Taikoz : Annual Report 2017
Directors’ Report
Likely developments and expected results of operations It is not foreseen that the company will undertake any change in its general direction during the coming financial year. The company shall continue to pursue its trading activities as detailed earlier to produce the most beneficial result.
Events subsequent to balance date There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction, or event of a material and unusual nature likely, in the opinion of the directors, to affect significantly the operations of the company, the results of those operations, or the state of affairs of the company in subsequent financial years.
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Synergy Percussion & Taikoz : Annual Report 2017
Information on directors Name:
Jeremy Wright
Experience:
Consultant in Marketing & Fundraising
Board member since 17 June 2013
Special responsibilities: Chair, Board and member Finance and Risk Committee
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Name:
Jodie Baker
Experience:
Company Director
Board member since 17 August 2015
Special responsibilitie:
Chair, Finance and Risk Committee
Name:
Ian Cleworth
Experience:
Founder of Taikoz, Musician
Board member since 18 May 2009
Special responsibilities:
Artistic Director of Taikoz
Name:
Norman Weaver
Experience:
Company Director
Board member since 23 May 2011
Special responsibilities:
Chair, Philanthropy Committee
Name:
Elsa Atkin
Experience:
Company Director and Cultural Management Consultant
Board member since 5 August 2013
Special responsibilities:
Member Philanthropy Committee
Name:
Phillipa Berkett
Experience:
Company director
Board member since 27 June 2016
Special responsibilities:
Member Philanthropy Committee
Name:
Karen Russell
Experience:
Manager Government Grant Agreement
Board member since 14 August 2017
Special responsibilities:
Member Finance and Risk Committee
Name:
John Sharpe
Experience:
Barrister
Board member since 11 September 2017
Directors’ Report
Synergy Percussion & Taikoz : Annual Report 2017
Directors’ Report
Directors’ benefits Since the end of the previous financial year no director of the company has received or become entitled to receive any benefit (other than a remuneration benefit included in Note 17 to the financial statements) because of a contract made by the company with the director or with a firm of which the director is a member, or with an entity in which the director has a substantial interest.
Meetings of directors The following table sets out the number of meetings of the company’s directors held during the year ended 31 December 2017 and the number of meetings attended by each director.
Directors meetings held whilst a director
Directors meetings attended
Jeremy Wright
9
9
Helen Brown
3
2
Norman Weaver
9
6
Ian Cleworth
9
9
Jodie Baker
9
7
Elizabeth Hill
3
2
Phillipa Berkett
9
7
Elsa Atkin
9
7
Karen Russell
4
4
John Sharpe
3
1
Signed in accordance with a resolution of the directors.
Jeremy Wright Director Sydney, 16 April 2018
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Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
© Synergy & TaikOz Ltd 2017 12
Directors’ Report
Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
Artistic Director’s Report 2017 was the first year in over 10 years that Synergy and Taikoz have had to operate without Australia Council triennial funding. Nevertheless, even with a much-reduced administration team, restrictions on studio space, rehearsal time and the ability to take too much financial risk on projects, we managed to produce several outstanding works. Always keen to present major productions outside of Sydney, it was thrilling to be able to perform The Beauty Of 8 to a capacity audience in the Melbourne Recital Hall. Shortly after, a newly developed small combo style of performance saw the Taikoz Quartet play two concerts of all original works – one at the Bowral Autumn Music Festival followed by a repeat of the same program in the intimate environment of Sydney’s Darling Quarter Theatre. However, the crowning artistic achievement of 2017 was undoubtedly 20: Land-Sea-Sky-Home, which was premiered at the City Recital Hall, Angel Place. 20: Land-Sea-Sky-Home was influenced by ideas, thoughts, emotions – and of course music – associated with the images in the concert’s title. Furthermore, it provided an exciting and challenging opportunity to work with a composer I’ve long wanted to commission – the inimitable Sandy Evans. Martial arts exponent/choreographer Chongwei Zhang added compelling dance and movement to the mix, which was buttressed by dramaturgy and stage design conceived by Taikoz’s own Tom Royce-Hampton. The final result was artistically satisfying for composers, performers and audience, and a fitting celebration of Taikoz’s twenty years of work in developing a unique voice in the Australian cultural landscape. 20: Land-Sea-Sky-Home also saw the introduction of three players to the Taikoz ranks – established taiko professional Joe Small from the USA, Sophie Unsen who is currently a probationary member, and Claudia Wherry, Taikoz Young Artist. Sadly, 2017 was also the first year that Synergy had to function without a dedicated artistic director. Nevertheless, it was an honour for me to accept the board’s invitation to act in the role and to have the opportunity to produce a fascinating program in collaboration with none other than Synergy’s previous AD, Timothy Constable. Presented at the Darling Quarter Theatre, the group played a program of (mostly) Timothy’s compositions with its customary flair, precision, intelligence, musicianship and passion. As a guest player, I was struck (and inwardly pleased) by the continuity of the ensemble’s sound. Unique among other great percussion ensembles, the collective sound of Synergy has a particular quality that is clear, full and round, and was established long before even my time as a member of Synergy in the 1990-2000s and has been nurtured and sustained to this day. Adam Jeffery, a young Sydney percussionist now performing professionally in Europe was present at the concert and wrote to me afterwards. His words sum things up nicely: “I’ve seen many different percussion groups perform over the years, and seeing the group play again confirmed my inclination that Synergy’s right up there with the best of them… it’s a cultural institution. So in a way I found the experience of the concert to be bittersweet…”
Ian Cleworth Taikoz Artistic Director | Synergy Acting Artistic Director
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Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
Mainstage productions and concerts
The Beauty Of 8 Taikoz | Chieko Kojima | Riley Lee Melbourne Recital Centre | February 11 Composition:
Ian Cleworth | John Cleworth | Chieko Kojima | Riley Lee | Anton Lock
Dramaturgy:
Tom Royce-Hampton
Choreography:
Chieko Kojima | Anton Lock
Stage Design:
Bart Groen
Lighting Design:
Karen Norris
Audio Design:
John Cleworth
After the successful Sydney debut of The Beauty Of 8 in 2015, we were thrilled to be able to perform the work at the Melbourne Recital Centre as part of the Asia TOPA Festival in February 2017. Featuring the unique talents of Kodo Distinguished Member Chieko Kojima and Australia’s own shakuhachi Grand Master Riley Lee, The Beauty Of 8 refers to the mesmerising shapes and movements that are synonymous with Chieko’s onna-uchi (women’s side-on) style of taiko playing. As a performer, Chieko is the very embodiment of flow, round-ness, grace and power, and it was words and images such as these that were the catalyst from which the program grew. But, as Chieko and I talked more, a mutual love of words invited the idea of poetry more directly informing the shape and development of the program. In the end, three poems pervade the entire program by giving it a sense of line and inevitability, and defining its tripartite structure: Eternal Silence (from Alfred, Lord Tennyson’s Ulysses), Our Horizon (Emily Dickinson), and The White Bird (Bokusui Wakayama).
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Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
Melbourne Recital Centre (© Michael Christian)
All Taikoz performers played with skill and passion, but it was especially wonderful to have Riley and Chieko’s creativity and superlative performance contributing to the whole. A full house responded vociferously, and as the ArtsHub critic David Barmby reported, “Founding member of Taikoz, Riley Lee’s haunting shakuhachi playing provided moments of profundity, deep reflection and calmness… Chieko Kojima contributed a mesmerising presence throughout the performance through her drumming and exquisitely expressive dance… (and) as we watched Taikoz powerfully striking their six odaiko in mesmerising unison, one could feel the palpable energy of the capacity audience poised to jump to their feet for its standing ovation.” The Beauty Of 8 is one of Taikoz’s major works of the past three years and we look forward to further performances in 2019.
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Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
Bowral Autumn Music Festival
Taikoz Live! At The Darling Quarter
Bowral | March 25
Darling Quarter Theatre | May 12
Composition: Ian Cleworth | Ryuji Hamada Kerryn Joyce | Tom Royce-Hampton
Composition: Ian Cleworth | Ryuji Hamada Kerryn Joyce | Tom Royce-Hampton
In keeping with the decision to produce more small-scale concerts, repertoire for a quartet formation is being developed. The first outing of the Taikoz Quartet – with all works composed by members of the ensemble – took place at the Bowral Autumn Music Festival, a boutique classical music festival in a picturesque part of New South Wales. Having the opportunity to repeat the program was appreciated when we presented the same program at The Darling Quarter Theatre in Sydney. With 235 raked seats, this intimate theatre has great sightlines and a very direct acoustic that allows the audience to experience the music almost as the performers do. It is hoped that this theatre, along with a recently re-established relationship with Angel Place will serve Taikoz and Synergy well in the ‘new paradigm’.
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Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
Taikoz - City Recital Hall (© Tim da-Rin)
20: Land-Sea-Sky-Home Taikoz | Sandy Evans | Riley Lee City Recital Hall, Angel Place | October 20 Composition: Ian Cleworth | John Cleworth | Sandy Evans | Rando Fukuda Maki Ishii | Riley Lee Dramaturgy | Staging:
Tom Royce-Hampton
Choreography:
Chongwei Zhang
Since 1997, Taikoz has given countless dynamic, energised and energising performances, and in the process created a significant body of work. 20: Land– Sea–Sky–Home celebrated Taikoz’s achievement, but at the same time continued to push the boundaries in contemporary performance. Four scenes defined the overall shape of this program: Land, Sea, Sky & Separation. The first three parts comprise music that celebrates, takes inspiration from and expresses the essence of their titles: ‘land-ness’, ‘sea-ness’ and ‘sky-ness’. But what about those people who have been separated from their country, culture, family and friends, and who are deprived the ability and right to ‘celebrate’, ‘be inspired by’, ‘express the essence of’ or indeed simply experience the land, sea & sky? Taikoz - City Recital Hall (© Tim da-Rin)
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Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
In 20: Land–Sea–Sky–Home, Taikoz explored the elements that make up Our World, home to all, but under the shadow of the plight of the desperate and unwanted who have been separated from their home, who have no home at all. Featuring new works by Ian Cleworth and the legendary Sandy Evans, choreographic movement by Chongwei Zhang, and the meditative mantras of Riley Lee’s shakuhachi, 20: Land–Sea–Sky–Home is part fête, part thought-provoking musical drama. Sandy Evans and Taikoz (© Tim da-Rin)
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We are proud and thankful of our Commissioners Circle who funded the creation of two significant new works for our 20th Anniversary program – Sandy Evan’s Sky, Let The Rain Fall and Ian Cleworth’s Home – and to the City of Sydney for providing funds towards the concert. As part of the CoS grant, Taikoz ran two free community workshops at Green Square and at Sydney (lower) Town Hall.
Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
Synergy ©Karen Steains
Synergy Live! At The Darling Quarter Darling Quarter Theatre | December 3 Composition: Timothy Constable | Bree van Reyk | Iannis Xenakis In celebration of – and as a tribute to – Timothy Constable’s extraordinary tenure as Synergy Artistic Director, the group presented a program that focussed not only on Timothy’s exceptional performing skills, but his extensive compositional output. From the easy, subtle groove of Tears Of Tenere, through the dark dynamism of Wastelands (in a performance bolstered by Taikoz), to Timothy’s latest work, Quintet, the program was varied in its musical language and beautifully played by current and past members. As a fitting finale, Synergy played Iannis Xenakis’ classic sextet Peaux, which is a work that has been a mainstay of Synergy’s repertoire for over 20 years, spanning a couple of generations of players.
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Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
Touring Taikoz always enjoys the opportunity to share our music with others, and having established ourselves as a national company, we are committed to touring our productions and educational activities to well beyond our metropolitan Sydney home base. Nevertheless, curtailed funding has meant a reduction in touring. Thankfully, TAL’s sponsorship of Taikoz allowed us to make up the financial shortfall in presenting The Beauty Of 8 at Melbourne’s Asia TOPA Festival, and a small ensemble made it possible for the Bowral Autumn Music Festival to present the Taikoz Quartet.
The Beauty of 8
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Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
Education Taikoz is equally passionate about its many and varied educational activities, which in 2017 included over 450 weekly community classes and the presentation of our own series of concerts and workshops for school children.
20: Workshop Series In conjunction with Taikoz’s performing calendar, each month also saw a workshop presented under the 20: Workshop Series banner. Highlights include: • Dr Riley Lee’s Breathe!, which attracted members of the general public, taiko players, singers and professional woodwind players • Two fascinating lectures on rhythm, phrasing and articulation in Kevin Man’s Rhythm According To Kevin • A get-together with members of the public and the founders of Taikoz, Riley Lee and Ian Cleworth, in Meet The Founders. More than a history lesson or straightforward reminiscence, moderator Margie Moore asked insightful questions to promote in-depth discussion between Ian and Riley about the beginnings of Taikoz, its reason for being and artistic development over the past 20 years, as well as insights about music, performance and culture.
Individual Development Program (IDP) The Individual Development Program is an intensive course for aspiring taiko players intended to develop players’ skills. In 2017 it ran from February to October and culminated in a public concert at St Stephens Hall. The IDP Ensemble is a useful training ground for both future Taikoz players and Associate Players, several of whom regularly perform in schools concerts and non-mainstage performances.
Nerida Wu
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Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
Musica Viva In Schools
Moorambilla Festival
Hunter Region NSW 15.4-2.6
Baradine-Dubbo NSW 3-7.7 / 15-20.8 / 19-24.10
Metro & Outer Metro Melbourne 13.7-30.7 Metro & Outer Metro Sydney 24.7-16.8
Continuing our partnership with Moorambilla Voices, Taikoz member Ryuji Hamada composed and choreographed a new taiko and dance work for over 90 children following a weeklong artistic immersion with Indigenous elders in July. Final work-shopping, rehearsal and performances were given by Ryuji and other Taikoz members at the August MAXed Out! camp in Baradine, and September Moorambilla Festival in Dubbo.
Musica Viva in Schools
Taikoz partnered with Musica Viva In Schools to develop an extensive education resource kit focusing on Taikoz’s music and performance. Now in its second year, 2017 saw an increase in performances around the country with tours to the Hunter Region, Metropolitan and Outer Metro Melbourne, and Outer Metro Sydney. Graduates from Taikoz’s IDP continue to assist Taikoz members in the presentation of the schools concerts.
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Moorambilla artistic immersion, Cobar
Synergy Percussion & Taikoz : Annual Report 2017
Artistic Director’s Report
Other Workshops And Events Taikoz received a visit from young taiko/shinobue player Ayumi Ooi who plays with a taiko group in Yokohama. Ayumi travelled from Japan specifically to observe Taikoz’s rehearsal sessions and, on occasion, join in general training with members of the ensemble.
Ayumi Ooi
Youngs at Melbourne
Several community workshops were held outside of Sydney, including Focus On Yataibayashi presented by Ian Cleworth in Launceston, a similar workshop held on the Gold Coast and presented by Ryuji Hamada, and both Ryuji and Ian running a 2-day intensive in Melbourne.
Gold Coast Workshop with Ryuji
Taikoz members Ryuji Hamada and Sophia Ang travelled to Japan in August and enjoyed two weeks of intensive professional development under Fuun no Kai member Hase Mikita in Shizuoka and Iwasaki Onikenbai Hozonkai in Kitakami.
Kitakami Michinoku Geino Matsuri
Sophia and Ryuji with Hase Mikita
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Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Auditor’s Independence Declaration
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF SYNERGY & TAIKOZ LTD As lead auditor for the audit of Synergy & Taikoz Ltd (A.B.N. 67 003 352 181) for the year ended 31 December 2017, I declare that, to the best of my knowledge and belief, there have been: (a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Synergy & Taikoz Ltd and any entities it controlled during the period.
MITCHELL & PARTNERS Chartered Accountants
Glenn Merchant CA Partner Sydney, NSW Dated this 16th day of April, 2018.
Suite 3, Level 2
66 Clarence Street Sydney
ABN: 62 606 570 742 All mail to: G.P.O. Box 5460 Sydney NSW 2001 Australia NSW 2000 Australia TELEPHONE: 02 9392 8686 FACSIMILE: 02 9299 8195
be yo n d ac c ou n t in g
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EMAIL:
reception@mitchellpartners.com.au Liability limited by a scheme approved under the Professional Standards Legislation
Synergy Percussion & Taikoz : Annual Report 2016
Annual Financial Report
Synergy & TaikOz Ltd Annual Financial Report 31 December 2017
Š Synergy & TaikOz Ltd 2017 25
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Statement of Comprehensive Income for the year ended 31 December 2017 Synergy & TaikOz Ltd
Revenue
Note
2017 $
2016 $
3
782,355
1,721,502
782,355
1,721,502
Total revenue Expenses Employee benefits expense
4
(195,835)
(409,217)
Depreciation and amortisation expenses
4
(46,776)
(25,728)
Adminitstration expenses
(138,942)
(274,840)
Cost of merchandise sold
(49,509)
(7,185)
(345,973)
(997,316)
(777,035)
(1,714,286)
5,320
7,216
-
-
5,320
7,216
-
-
5,320
7,216
Performance expenses Total Expenses Net profit/(loss) before tax Income tax Net profit/(loss) after tax Other Comprehensive Income Total Comprehensive Income
The above statement of Comprehensive Income should be read in conjunction with the accompanying notes.
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Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Statement of Financial Position for the year ended 31 December 2017 Synergy & TaikOz Ltd
Note
2017 $
2016 $
Cash and cash equivalents
5
284,878
271,935
Trade and other receivables
6
12,524
21,232
Inventories
7
30,476
51,562
Prepayments and deposits
8
19,752
94,262
347,630
438,991
231,056
268,705
231,056
268,705
578,686
707,696
10
83,511
153,912
Employee benefits
11
6,669
4,174
Unearned income
12
22,588
62,779
Government grants
13
150,000
178,000
262,768
398,865
19,997
18,230
19,997
18,230
TOTAL LIABILITIES
282,765
417,095
NET ASSETS
295,921
290,601
295,921
290,601
ASSETS Current assets
Total current assets Non-current assets Plant and equipment
9
Total non-current assets TOTAL ASSETS LIABILITIES Current liabilities Trade and other payables
Total current liabilities Non-current liabilities Employee benefits Total non-current liabilities
11
EQUITY Retained earnings
The above Statement of Financial Position should be read in conjunction with the accompanying notes.
27
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Statement of Changes in Equity for the year ended 31 December 2017 Synergy & TaikOz Ltd
Balance at 1 January Profit/(Loss) for the year (as reported) Balance at 31 December
2017
2016
290,601
283,385
5,320
7,216
295,921
290,601
The above statement of changes in equity should be read in conjunction with the accompanying notes.
28
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Cash Flow Statement for the year ended 31 December 2017 Synergy & TaikOz Ltd
Note
2017 $
2016 $
Receipts from customers
507,369
1,003,890
Receipts from appropriations/grants
208,812
668,273
1,691
3,695
(499,967)
(1,244,098)
(195,835)
(415,347)
18
22,070
16,413
9
(9,127)
(75,996)
(9,127)
(75,996)
Increase/(Repayments) of borrowings
-
-
Unrealised foreign exchange gain/loss
-
-
Net cash used in financing activities
-
-
12,943
(59,583)
271,935
331,518
284,878
271,935
Cash flows from operating activities
Interest received Payments to suppliers Payments to employees Net cash provided by operating activities Cash flows from investing activities Payments for plant & equipment and acquisitions Net cash used by investing activities Cash flows from financing activities
Net increase in cash and cash equivalents held Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year
5
The above cash flow statement should be read in conjunction with the accompanying notes.
29
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Notes to the Financial Report for the year ended 31 December 2017 Synergy & TaikOz Ltd 1 Summary of Significant Accounting Policies
31
2 Financial Risk Management
35
3 Revenue
37
4 Expenses
38
Current assets 5 Cash and cash equivalents
38
6 Trade and other receivables
39
7 Inventories
39
8 Prepayments
39
Non-current assets 9 Plant and equipment
39
Current liabilities 10 Trade and other payables
40
11 Employee benefits
40
12 Unearned income
40
13 Government grants
41
Non-current liabilities
30
11 Employee benefits
40
14 Auditor’s remuneration
41
15 Financial instruments
42
16 Director and executive disclosures
43
17 Commitments for expenditure
43
18 Reconciliation of surplus from ordinary activities to net cash inflows from operating activities
44
19 Company details
44
20 Members’ Guarantee
45
21 Contingent Liabilities and Assets
45
22 Subsequent Events
45
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
1 Summary of Significant Accounting Policies This financial report covers Synergy & TaikOz Ltd (“the Company”) as an individual entity for the year ended 31 December 2017. Synergy & TaikOz Ltd is a company limited by guarantee, incorporated and domiciled in Australia. Its principal place of business is Level 1, Unit 5, 21 Chester St Annandale NSW 2038. Its registered office is C/- Mitchell & Partners, Suite 3, Level 2, 66 Clarence Street, Sydney NSW 2000. The Company is not-for-profit and is primarily involved in musical performance and education. All amounts are presented in Australian Dollars, which is the Company’s functional currency. The following is a summary of the material accounting policies adopted by the Company in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of Preparation and Compliance statements (a) Statement of Compliance The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The Financial Report was approved by the Board of Directors on 16 April 2018. (b) Basis of Measurement The financial report is prepared on an accruals basis and is based on an historical costs basis. The ASSB has issued a number of new and Amended Accounting standards and interpretations that have mandatory application dates for future reporting periods some of which are relevant to the company. The company has decided not to early adopt any of the new and amended standards. The company does not expect that the new and amended standards will have a significant effect on its financial statements.
Significant Accounting Policies (a) Income tax As the company is of a kind referred to in Section 50-5 item 1.1 of the Income Tax Assessment Act 1997, its income is exempt from the income tax. The company is also registered with the ACNC. (b) Cash and cash equivalents Cash and cash equivalents includes cash on hand, 90 day term deposits, deposits held at call with financial institutions, and petty cash/tour floats.
31
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
1 Summary of Significant Accounting Policies (continued) (c) Trade and other receivables Trade and other receivables are measured at cost, less any provision for impairment. Trade receivables are due for settlement generally no later than 30 days. Trade receivables are reviewed monthly. Receivables that are known to be uncollectible are written off. An allowance for provision of impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of receivables. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the allowance is recognised in the income statement. (d) Property, plant and equipment Each class of property, plant and equipment is stated at historical cost less accumulated depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. A large variety of percussion instruments are owned by the Company to support performances by the various groups. Some of the instruments are hand made, unique or rare and valuable. All are subject to rigorous and regular maintenance. Items of plant and equipment, leasehold improvements, computer equipment and musical instruments are depreciated using the straight-line method over their estimated useful lives. Each class of asset in the current period was depreciated over the useful lives as set out in the following table: Asset class
Useful life
Computer equipment
3 years
Office equipment
5 years
Furniture and fittings
5 years
Plants and equipment
3-5 years
Musical instruments
7 years (Class 1) 15 years (Class 2)
Repairs and maintenance on Taiko 15 years (Class 2)
The Board made a decision to revalue the taiko instrument assets and sought current market valuations from the taiko suppliers in Japan (Asano and Miyamoto). The new asset values were recognised in the financial statements for 2016, which resulted in a recovery of $131,341 accumulated depreciation for these assets.
(e) Impairment of Assets The carrying values of plant and equipment are reviewed for impairment at each reporting date, with a recoverable amount being estimated when events or changes in circumstances indicate the carrying value may not be recoverable. Asset values are reviewed annually during the process of renewal and confirmation of the company’s instrument insurance policy. The recoverable amount of plant and equipment is the greater of fair value less costs to sell and value in use. Impairment losses are recognised in the income statement should they occur.
32
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
1 Summary of Significant Accounting Policies (continued) (f) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Balance Sheet are shown inclusive of GST. (g) Trade and other payables These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year, which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. (h) Inventories Inventories are measured at cost. All items are purchased as finished goods, apart from the bachi sticks, which are treated as WIP items and transferred to inventory once finished goods are delivered. (i) Employee benefits Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the Company at balance date – this includes annual leave and long service leave for employees with 5 or more years continuous service. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. (j) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed are net of goods and services tax (GST). Revenue is recognised for the major business activities as follows: • Production and related revenue Revenue from productions and other services is recognised in the period in which the service is provided. • Sponsorship Revenue Revenue receivable from sponsors may be cash or in-kind and revenue is recognised in the period in which it is received. • Trusts and Foundations Revenue Grants from trusts and foundations are recognised in the income statement when it is controlled. When there are conditions attached to the grant revenue relating to the use of those grants for specific purposes it is recognised in the balance sheet as a liability until such conditions are met or services provided.
33
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
• Grant revenue An unconditional Government grant is recognised as income when the grant becomes receivable. Other Government grants are recognised as deferred income when there is reasonable assurance that they will be received and the Company will comply with any conditions associated with the grant. Grants that compensate the Company for expenses incurred are recognized as income on a systematic basis in the same periods in which the expenses are recognised. • Donations Revenue from donations is recognised in the period in which donations are received. (k) Foreign currency translation Both the functional and presentation currencies of the Company are Australian dollars. Transactions in foreign currencies are recorded initially in Australian dollars at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Foreign currency gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income. (l) Economic dependence The company is dependent on funding from Create NSW and sponsorship from TAL to support the operation of the business. (m) Going concern The financial report has been prepared on a going concern basis, which contemplates continuity of normal trading activities and the realisation of assets and settlement of liabilities in the normal course of business. The Company is ultimately dependent upon each of its annual operational activities, other fund raising activities and the support of core funding from Create NSW, together with the success of future productions. At the date of this report the Board of Directors has no reason to believe these income streams will not continue to support the Company. 
 (n) Finance income and expenses Finance income comprises interest income on funds invested. Interest revenue is recognised as interest accrues taking into account the effective interest rates applicable to the financial assets.
34
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
2 Financial Risk Management Overview The Company has exposure to the following risks from their use of financial instruments: • credit risk; • liquidity risk; and • market risk This note presents information about the Company’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk. Further quantitative disclosures are included in Note 15.
Risk Management Framework The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Company’s financial risk management program focuses on transferring revenue risk to presenters where possible, sharing box office and teaching income uncertainty with members, closely linking income and expenditure and maintaining a high level of liquidity.
Credit risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and cash and cash equivalents. Trade Receivables Trade receivables are reviewed monthly. Receivables that are known to be uncollectible are written off. An allowance for provision of impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of receivables. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows. The amount of the allowance is recognised in the income statement. The company has no significant concentrations of credit risk. To ensure contracts are financially sound, the company ensures it only deals with presenters, promoters and venues with an appropriate credit history (no provision for bad debts for 2017). Cash and cash equivalents The Company limits its exposure to credit risk by investing and holding cash positions only with counterparties that have a credit rating of at least A from Standard & Poor’s.
35
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
2 Financial Risk Management (continued) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Currency risk The Company is exposed to currency risk mainly on purchases that are denominated in a currency other than the respective functional currency, Australian dollar (AUD). The currency in which these transactions are primarily denominated is Japanese Yen. The company ensures that its net exposure to foreign currencies is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances. The exposure of the Company to foreign currency is not significant in 2016 and 2017. Interest rate risk Interest risk arises from cash deposits in financial institutions, cash and cash equivalents holdings are exposed to floating interest rates. There are no interest bearing liabilities. Other market price risk The Company is not exposed to any other market risk.
36
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
3 Revenue for the year ended 31 December 2017 Synergy & TaikOz Ltd REVENUE FROM CONTINUING OPERATIONS
2017 $
2016 $
Box office income
61,764
119,902
Contract appearances
73,539
207,420
135,303
327,322
245,395
304,189
245,395
304,189
-
251,750
48,000
16,000
-
220,131
130,000
120,000
Arts NSW – Regional Touring and Other grants
-
-
DFAT Project Funding
-
60,392
17,812
-
13,000
-
208,812
668,273
8,966
8,118
8,966
8,118
Donations received
76,587
131,032
Trusts, Foundations, Corporate
14,328
27,704
Fundraising revenue
10,273
-
Sponsorship - Cash
41,667
10,387
23,000
74,200
1,691
3,695
15,404
30,267
929
4,974
-
131,341
183,879
413,600
782,355
1,721,502
SALES REVENUE Performance fees:
EDUCATION REVENUE Education – workshops, school concerts and taiko school fees received
GOVERNMENT GRANTS Australia Council – triennial funding Australia Council – transition grant Ministry for the Arts - Catalyst grants Arts NSW – triennial funding
Austrade EMDG City of Sydney grant
SALE OF GOODS Sales of merchandise
OTHER REVENUE
Sponsorship in Kind (software, venues, legal, accountancy) Interest received Freight and touring costs reimbursed Sundry revenue Depreciation recovery on revalued taiko instruments
TOTAL REVENUE
37
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
4 Expenses The surplus includes the following specific expenses: 2017 $
2016 $
46,776
25,718
46,776
25,718
157,023
356,057
132
1,550
31,907
53,241
Long service leave provision
1,766
(6,401)
Workers compensation insurance
2,512
6,049
2,495
(1,279)
195,835
409,217
84,312
241,060
200,566
30,875
-
-
284,878
271,935
Depreciation Plant and equipment
Employee benefits expense Salaries and wages Staff development and travel Superannuation
Annual leave provision Paid parental leave
5 Cash and cash equivalents Cash at bank and on hand Deposits at call Term Deposit (90 days)
(a) Reconciliation to cash and cash equivalents at the end of the year The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the cash flow statement as follows: Balance per cash flow statement
284,878
271,935
(b) Deposits at call The deposits are bearing floating interest rates between 1.35% and 2.15% (2016 – 2.15% and 2.25%). These funds are at call.
38
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
6 Trade and other receivables 2017 $
2016 $
12,524
21,232
30,476
51,562
19,752
94,262
701,448
692,320
(470,392)
(423,615)
231,056
268,705
268,705
87,096
Additions
9,127
76,496
Disposals
-
(500)
Fixed asset written off
-
-
(46,776)
(25,728)
-
131,341
231,056
268,705
Current Trade and other receivables
7 Inventories Current Finished goods – at cost
8 Prepayments Current Prepayments and deposits – general and projects
9 Plant and equipment Plant and equipment Plant and equipment – at cost Accumulated depreciation Total plant and equipment Reconciliations Reconciliations of the carrying amounts of each plant and equipment at the beginning and end of the current financial year: Carrying amount 1 January
Depreciation Carrying amount 31 December
39
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
10 Trade and other payables 2017 $
2016 $
4,366
31,518
GST payable
43,415
56,741
Sundry creditors and accrued charges
35,730
65,653
83,511
153,912
6,669
4,174
6,669
4,174
19,997
18,230
16
24
7,388
16,729
15,200
4,383
-
41,667
22,588
62,779
Current Trade creditors
11 Employee benefits Current Liability for annual leave
Non-current Liability for long service leave Employee numbers Average number of employees during the financial year
Note: 7 Head office staff totaling 1.9 FTEs and 9 casual employees
12 Unearned income Current Taikoz school and intensive study fees in advance Contract income in advance Sponsorship in advance
40
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
13 Government grants 2017 $
2016 $
Australia Council – Triennial Funding
-
-
Australia Council – Transition Grant
-
48,000
150,000
130,000
150,000
178,000
3,500
3,500
Current
Arts NSW – Triennial Funding
14 Auditor’s remuneration The auditor of Synergy & TaikOz Ltd is Mitchell & Partners. Assurance services Audit Services Audit of the financial report
Note: Mitchell Partners provide $3,500 pro bono support for annual audit services
41
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
15 Financial instruments 2017 Less than 6 months
Between 6 months & 1 year
1 year to 5 years
More than 5 years
Total
284,878
-
-
-
284,878
12,524
-
-
-
12,524
297,402
-
-
-
297,402
Trade and other payables
(83,511)
-
-
-
(83,511)
Total financial liabilities
(83,511)
-
-
-
(83,511)
213,891
-
-
-
213,891
Less than 6 months
Between 6 months & 1 year
1 year to 5 years
More than 5 years
Total
271,935
-
-
-
271,935
21,232
-
-
-
21,232
293,167
-
-
-
293,167
Trade and other payables
(153,912)
-
-
-
(153,912)
Total financial liabilities
(153,912)
-
-
-
(153,912)
139,255
-
-
-
139,255
Financial assets Cash and cash equivalents Trade and other receivables Total financial assets Financial liabilities
Net financial assets
2016
Financial assets Cash and cash equivalents Trade and other receivables Total financial assets Financial liabilities
Net financial assets
The weighted average interest rate for Cash & Cash equivalents is 1.75% at 31 December 2017 (31 December 2016: 2.20%). Trade and other receivables and Trade and other payables are not interest bearing financial instruments. Sensitivity Analysis At 31 December 2017 it is estimated that a general increase of one percentage point in interest rates would increase the company profit by approximately $2,849 (at 31 December 2016: $2,719).
42
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
16 Director and executive disclosures (a) Details of key management personnel The names of each person holding the position of director of the company during the financial year are listed on page 3 of the Directors’ Report. Details of the executive officers are as follows: Lee McIver
General Manager
Karen Steains
Administrator
b) Compensation of key management personnel Short term benefits Key management personnel compensation
2017 $
2016 $
79,716
87,362
No other forms of compensation were paid to Key Management personnel. The constitution of the Company prohibits the distribution of Company surpluses by way of dividend, bonus or other profit distribution, to any of the members or directors but does not prevent them from being remunerated for goods and services provided to the company in the fulfillment of its objects. The level of remuneration is commercially based, transparent and approved by the Board of Directors.
17 Commitments for expenditure Operating leases
2017 $
2016 $
15,995
28,475
-
12,979
15,995
41,454
Taiko School studio and head office lease Minimum commitments payable are as follows: Payable not later than 1 year Later than 1 year but no later than 5 years Representing: Non-cancellable operating leases
43
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
18 Reconciliation of surplus from ordinary activities to net cash inflows from operating activities 2017 $
2016 $
5,320
7,216
46,776
25,728
Revaluation of instruments
-
(131,341)
Fixed asset written off
-
-
8,708
13,423
Decrease/(Increase) in inventories
21,086
(9,693)
(Increase)/Decrease in prepayments and deposits
74,510
13,572
(70,401)
32,915
4,262
(7,681)
(68,191)
72,274
22,070
16,413
Profit/(Deficit) from ordinary activities Depreciation of plant and equipment
Changes in operating assets and liabilities Decrease/(Increase) in trade and other receivables
Increase/(Decrease) in trade and other payables Increase/(Decrease) in provision for Employee entitlements Increase/(Decrease) in unearned income and grants Net cash outflow from operating activities
19 Company details Synergy & TaikOz Ltd is a company limited by guarantee, incorporated and domiciled in Australia.
44
The registered office of the Company is:
The principal place of business is:
C/- Mitchell & Partners Suite 3, Level 2 66 Clarence Street SYDNEY NSW 2000
Level 1, Unit 5 21 Chester St ANNANDALE NSW 2038
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
20 Members’ Guarantee The guarantee of members in the event of the winding up of the company is limited to $100 per member. At 31 December 2017, the company has a total of 21 members representing a total guarantee of $2,100.
21 Contingent Liabilities and Assets No contingent liabilities and assets to report.
22 Subsequent Events No significant events have occurred since the end of the reporting period, which would impact on the financial position of the Company disclosed in the statement of financial position as at 31 December 2017, or on the results and cash flow of the Company for the year ended on that date.
45
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Directors’ Declaration In the opinion of the Directors of Synergy & TaikOz Ltd (‘the Company’)
(a) the financial report and notes, as set out on pages 7 to 19 are in accordance with the Corporations Act 2001; including:
(i) giving a true and fair view of the Company’s financial position as at 31 December 2017 and of it’s performance, for the year ended on that date, and
(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; 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
Signed in accordance with a resolution of the Directors:
Jeremy Wright Director Sydney
46
16 April 2018
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Declaration by General Manager in respect of fundraising appeals pursuant to the Charitable Fundraising (NSW) ACT 1991
I, Lee McIver, General Manager of Synergy & TaikOz Ltd, declare in my opinion:
(a)
the Annual financial report gives a true and fair view of all income and expenditure of Synergy & TaikOz Ltd with respect to fundraising appeal activities for the financial year ended 31 December 2017;
(b) the statement of financial position gives a true and fair view of the state of affairs with respect to fundraising appeal activities as at 31 December 2017;
(c)
t he provisions of the Charitable Fundraising Act 1991 and Regulations and the conditions attached to the authority have been complied with for the financial year ended 31 December 2017; and
(d) the internal controls exercised by Synergy & TaikOz Ltd are appropriate and effective in accounting for all income received and applied from any fundraising appeals.
Lee McIver General Manager Sydney
16 April 2018
47
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Independent Auditor’s Report to the members of Synergy & TaikOz Ltd
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SYNERGY & TAIKOZ LTD A.B.N. 67 003 352 181 (A Public Company Limited by Guarantee)
Report on the Financial Statements Opinion We have audited the financial report of Synergy & Taikoz Ltd (the company), which comprises the statement of financial position as at 31 December 2017, the statement of comprehensive income, statement of changes in equity, statement of cash flows for the year ended on that date, a summary of significant accounting policies and other explanatory notes and the directors’ declaration. In our opinion, the accompanying financial report of Synergy & Taikoz Ltd is in accordance with Division 60 of the Australian Charities and Not for Profits Commission Act 2012 and the Corporations Act 2001, including: •
giving a true and fair view of the company’s financial position as at 31 December 2017, and of its performance for the year then ended ; and
•
complying with Australian Accounting Standards, Division 60 of the Australian Charities and Not for Profits Commission Regulation 2013, and the Corporations Act 2001.
Basis of 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 auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Synergy & Taikoz Ltd, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Suite 3, Level 2
66 Clarence Street Sydney
ABN: 62 606 570 742 All mail to: G.P.O. Box 5460 Sydney NSW 2001 Australia NSW 2000 Australia TELEPHONE: 02 9392 8686 FACSIMILE: 02 9299 8195
be yo n d ac c ou n t in g
48
EMAIL:
reception@mitchellpartners.com.au Liability limited by a scheme approved under the Professional Standards Legislation
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Key Audit Matters Going Concern As mentioned in Note 1 (m) Going Concern, the company is dependent on each of its annual operational activities, other fund raising activities and support of core funding from Create NSW together with the success of future productions. As a result the company has substantially reduced its staffing levels and other costs. How our audit addressed the Going Concern Issue The company recorded a small profit which was in line with its budget expectations for the year. There was also a surplus of net cash flows for the year. The budget for the 2018 year is in line with the 2017 year results. We obtained a copy of the budget for the 2018 year and the current year reports to ensure that the trading is in line with the budget expectations. Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information comprises the information included in the company’s annual report for the year ended 31 December 2017, 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. The Responsibility of the Directors for the Financial Statements The directors of the company are responsible for the preparation the financial report that gives a true and fair view in accordance with Australian Accounting Standards, the ACNC Act, and the Corporations Act 2001 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 alternatives but to do so. Auditor’s Responsibility 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 Accounting 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.
Suite 3, Level 2
66 Clarence Street Sydney
ABN: 62 606 570 742 All mail to: G.P.O. Box 5460 Sydney NSW 2001 Australia NSW 2000 Australia TELEPHONE: 02 9392 8686 FACSIMILE: 02 9299 8195
be yo n d ac c ou n t in g
EMAIL:
reception@mitchellpartners.com.au Liability limited by a scheme approved under the Professional Standards Legislation
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Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: -
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
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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 purposes of expressing an opinion on the effectiveness of the company’s internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
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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 registered entity’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 registered entity to cease to continue as a going concern.
We communicate with the responsible entities regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements requiring independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
MITCHELL & PARTNERS Chartered Accountants
Glenn Merchant CA Partner Sydney, NSW Dated this 16th day of April, 2018
Suite 3, Level 2
66 Clarence Street Sydney
ABN: 62 606 570 742 All mail to: G.P.O. Box 5460 Sydney NSW 2001 Australia NSW 2000 Australia TELEPHONE: 02 9392 8686 FACSIMILE: 02 9299 8195
be yo n d ac c ou n t in g
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EMAIL:
reception@mitchellpartners.com.au Liability limited by a scheme approved under the Professional Standards Legislation
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
SYNERGY & TAIKOZ LTD A.B.N. 63 003 352 181 (A Public Company Limited by Guarantee)
ADDITIONAL INFORMATION DISCLAIMER
The additional financial data presented in the following pages is in accordance with the books and records of Synergy & Taikoz Ltd (“our client�) which have been subjected to the auditing procedures applied in our statutory audit of the company for the year ended 31 December 2017. It will be appreciated that our statutory audit did not cover all details of the additional financial data. Accordingly, we do not express an opinion on such financial data and no warranty to accuracy or reliability is given. Neither the firm nor any member or employee of the firm undertakes responsibility in any way whatsoever to any person (other than our client) in respect of such data, including any errors or omissions therein however caused.
MITCHELL & PARTNERS Chartered Accountants
Glenn Merchant CA Partner Sydney, NSW Dated this 16th day of April, 2018
Suite 3, Level 2
66 Clarence Street Sydney
ABN: 62 606 570 742 All mail to: G.P.O. Box 5460 Sydney NSW 2001 Australia NSW 2000 Australia TELEPHONE: 02 9392 8686 FACSIMILE: 02 9299 8195
be yo n d ac c ou n t in g
EMAIL:
reception@mitchellpartners.com.au Liability limited by a scheme approved under the Professional Standards Legislation
51
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
Synergy & Taikoz Ltd would like to acknowledge the support of and thank the following funding bodies and partners for their contribution to our 2017 program.
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Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
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Synergy Percussion & Taikoz : Annual Report 2017
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Annual Financial Report
Synergy Percussion & Taikoz : Annual Report 2017
Annual Financial Report
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Synergy & TaikOz Ltd ABN 67 003 352 181 PO Box 284 Camperdown NSW 1450 Phone: (+61 2) 9557 5842 admin@synergyandtaikoz.com