Synergy & Taikoz Ltd 2018 Annual Report

(a company limited by a guarantee) ABN 67 003 352 181

Synergy & TaikOz Ltd Annual Report 31 December 2018

© Synergy & TaikOz Ltd 2018

Synergy Percussion & Taikoz : Annual Report 2018

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

General Manager’s Declaration in respect of fundraising appeals

47

Independent Audit Report to the Members

48

Synergy Percussion & Taikoz : Annual Report 2018

Directors’ Report

Directors’ Report Your directors submit the financial report for Synergy & TaikOz Ltd for the year ended 31 December 2018.

Directors The names of the directors in office during the year and until the date of this report are: • Jeremy Wright (Chair, Board and Chair, Philanthropy Committee) • Jodie Baker (Chair, Finance and Risk Committee) • Elsa Atkin

• Ian Cleworth • Phillipa Berkett

Norman Weaver resigned on 3 December 2018.

• Karen Russell • John Sharpe

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.

There were no significant changes in the nature of the activities of the company during the year.

Operating result The surplus for the year amounted to $5,548 ($5,320 surplus 2017).

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 2018

Directors’ Report

Directors’ Report A Note from the Chair Overview For calendar year 2018, the Synergy and Taikoz ensembles recorded a number of remarkable performances and the company had another very busy year. Taikoz was the headline act in its collaboration with the Sydney Symphony Orchestra in February, and followed this with a year packed full of other major performances, class teaching, workshops and corporate event performances – including performing atop the Sydney Harbour Bridge and partnering with Camilla for Mercedes Benz Sydney Fashion Week. For Synergy, the Timber concert in November was a major highlight, however the company was busy endeavouring to fill the Artistic Director role for Synergy and secure funds for a more complete program in 2019/20.

Given the loss of regular Australia Council funding from 2017, the company has been lean with administrative resources and public performances, especially for Synergy. However, at all times we remained solvent (with net assets of $305,469 at year’s end). A small surplus of $5,548 was recorded.

The company continues with its Create NSW multi-year funding and more dependence on philanthropy. We also benefited considerably from the Taikoz education and schools activity and a high level of corporate performances this year.

Taikoz Our Artistic Director Ian Cleworth continues to lead by example, both in performance – with magnificent solo works for the program with the Sydney Symphony Orchestra performances and throughout the year – and in his leadership of both ensembles, and as an effective member of the Board.

The SSO performances on 22/23/24 February at the Sydney Opera House were wonderfully successful, both artistically and in attracting audiences, many of which were new to Taikoz. This was followed by a successful season at the Glen St Theatre in mid-April featuring a composition

by Joe Small that included our IDPE group on stage with the regular Taikoz members. In late September Taikoz performed at the Bellingen Fine Music Festival to a sell-out audience. There was another performance at the Darling Quarter Theater on 9th June which was a great artistic and commercial success and an amazing performance to an invited audience at the Dangrove premises of the Neilson Foundation also in September, that may have also started a relationship with the Sydney Dance Company – watch this space!

The Taikoz education classes started with over 100 students and reached a record 129 during the year. We also had a sell-out for our Play Taiko workshops. The Dojo in Ultimo remained the center for our Introductory and Advanced programs, including our Individual Development Program Ensemble (IDPE) who held their annual concert at the Dojo on the 25th of November. Meanwhile the Musica Viva In Schools program took the ensemble through Western Australia (in March), North Western New South Wales (in May), South Australia (in August), the Riverina (in November), and Greater Western Sydney (in July, September and October).

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Synergy Percussion & Taikoz : Annual Report 2018

Directors’ Report

Our corporate performances included scaling the Sydney Harbour Bridge for the Bridge Climb organisation in February, Australian Fashion Week in May and a celebration for the Merivale organisation in August.

We have promoted two new members to the main group this year with Sophie Unsen and Claudia Wherry joining the group for the Glen St performances and onwards. Meanwhile, we were at pains to finalise a working visa for Ryuji Hamada with hopes high that this can be settled early in 2019.

Synergy The feature of Synergy’s year was Timber, an extraordinary concert led by Louise Devenish from Western Australia. With music composed by American composer Michael Gordon, the performance was lit and staged superbly, thanks to our versatile and very talented General Manager, Lee McIver. It was performed at Trackdown Studios in the Fox Studios Entertainment Quarter on 17th November. The audience included our most regular and influential followers and many people new to Synergy – all of who found it a wonderfully engaging experience. This again demonstrated why Synergy is such a unique and special ensemble and why it is crucial to find the right new Artistic Director.

Synergy also performed with the Sydney Chamber Choir in Dance | Chant – a celebration of the 75th year of the great Australian Composer Ross Edwards. Unfortunately, several other planned performances were postponed due to unsuccessful funding applications to the Australia Council.

Despite this we were busy in discussions with a number of fine leaders of percussion music, including Louise Devenish, Simon Barker and Gabriel Fischer, with whom there are further collaborations planned for 2019 and 2020.

Premises Our storage needs – beyond the Dojo in Ultimo – have thankfully been met through 2018 via our ‘always temporary’ Lilyfield facility, thanks to the generosity of Create NSW. Other more permanent options were still being sought and at a meeting with the NSW Minister for the Arts, Hon Don Harwin in January 2018, we expanded on our dream of a Sculthorpe Centre for Percussive Arts.

Subsequent events in early 2019 point to the possibility of more permanent premises in late 2019.

Meanwhile our very small Administration team moved from one office to another in Annandale in the middle of the year (101 Johnson St), with a lower rental cost and more convenience.

Funding, Philanthropy and Sponsorship We have appreciated the Create NSW funding again this year ($150k) and had news in late 2018 that this would continue for the next two years at $150k pa. However, we have come to the end of our TAL sponsorship, with a benefit through to April in 2019.

Our appearance and education revenue amounted to $430,819 or 56.4% and this is a 35% increase over 2017. Another source of funding is from philanthropy and in 2018 we achieved an amount of $104,721 (a 3.5% increase) from Donations, Foundations and Fundraising, representing nearly 14% of our income. These philanthropic donations remain a vital part of our non-operational income and we appreciate the generosity involved.

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Synergy Percussion & Taikoz : Annual Report 2018

Directors’ Report

As we have been unsuccessful in seeking Project Funding from the Australia Council throughout the year, the focus has been on small-theatre performances, invitational touring and a lean administration. However, we were invited by Google to be a Google Cultural Partner, which will afford the company a greater international digital presence in 2019 and beyond.

Marketing and Administration A special word here for our General manager Lee McIver, who has done a superb job keeping the company alive and well despite very tight finances and many demands for solutions to premises, programming, filling the role of the Synergy Artistic Director and general marketing. Lee also paid a visit to the Tokyo Performing Arts Market (TPAM) in February seeking possible touring for both ensembles into Japan, Taiwan and Korea.

Karen Steains as always is helping wonderfully with our finances and administering board and committee minutes and meetings. And Taikoz member, Sophia Ang has stepped up to administer our Community Classes program along with her position in coordinating Corporate and NonMainstage Performances. Taikoz member Sophie Unsen assists in our Social Media and liaison with Musica Viva In Schools.

On the Board front, we sadly lost our former Chairman Norman Weaver, who retired at year’s end. Norman was a Board member for over seven years including five years as Chair. He was wonderfully loyal to the company, to our artform and was a significant contributor. We thank him for his commitment and great service, and hope to keep in touch.

Future Plans There was significant planning during the year, for our activities in 2019/20 and beyond. This includes a Taikoz tour of Canberra, Newcastle, Port Macquarie, Penrith and Sydney through July in 2019. We are also looking forward to a major City Recital Hall performance in late October. For Synergy, a work entitled So Called Laws of Nature by David Lang will form part of their 2019 year.

Productive discussions with Louise, Simon and Gabriel are continuing in regard to additional projects.

While Norman was still with us, the Synergy & TaikOz Board continued with its excellent governance and support for the company and after another productive strategy session in September, developed a new Vision and aim for the company. It reads as follows: Synergy and Taikoz – informed by percussive musical artforms from around the world, we create and perform new and explosive compositions for the excitement of audiences globally.

As an organisation, we are passionate about our artform and aim to be vibrant, flexible and resilient in our operations.

This vision has its foundation in the way we have done business over recent times. It will also inform our future considerations and forward planning for the company and the Synergy and Taikoz ensembles. Despite many challenges we are looking to the future with confidence.

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Synergy Percussion & Taikoz : Annual Report 2018

Directors’ Report

2018 Donor Acknowledgements Synergy Percussion and Taikoz would like to pay tribute to the following donors who contributed to our activities in 2018.

Commissioning Circle The J. Permsew Foundation

Inner Beat Donors $500 or more Anonymous

Gina Bowman

Norman Weaver

Alden Toevs

Ian Cleworth

Phillipa Berkett

Angela Bowne

Janet Hansen

Rebecca Kaiser

Bill Torrey

Jeremy Davis

Richard Pollitt

Brian Everingham

Jodi Baker

Robert Green

Catherine Rogers

John Sharpe

Rosamund Plummer

Dr Rodney Smith & Elizabeth Hill

Julie Miller

Sandie Rogers Stephen Anderson

David Bruce-Steer

Marilyn Smith & Jeremy Wright

David van Reyk

Michael McLoughlin

Elsa Atkin

Modest Expectations Foundation

Elsa Atkin & Jeremy Long Eoin de Burca

Noriko Shimada

Toni Downes Trudy Weibel & Gernot Heiser Valerie Tupper Victoria Parsons

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Synergy Percussion & Taikoz : Annual Report 2018

Directors’ Report

2018 Donor Acknowledgements (continued) Synergy & Taikoz Friend $1 - $499

8

Alan Luscombe

Evan Roche

Margaret Crouch

Alina Gollner

Greg Andresen

Margit Luscombe

Alison Blatcher

Greg Knight

Maxine Brody

Ana Anderson

Ian Sawell

Nerida Wu

Anne Carpenter

Ian Thackery

Philip Robinson

Beverley Stafford

Jennifer Gill

Rainbow Street Public School

Brian Horsfield

John Hibbard

Rita Ooi

Bronwyn Evans

Julienne Leathart

Robyn Casimir

Catherine Baldwin

Karen Jakobsen

Roslyn Laird

Cecilia Lee

Karen Steains

Ruth Thompson

Christine Newman

Karen Yen

Sally Glover

Christopher van Reyk

Keiko Togami Evans

Sandra Bogilevu

David Piggin

Kerry & Maria Ang

Sarah Buckler

Dorothy Cameron

Kip Jansson

Steve Davidson

Elizabeth Sakker

Kirsten Jakobsen

Sue Burton

Erica Dawkins

Lisa Mains

Wendy Tsui

Ernestine Spiegel

Lizanne Knight

Yuko Otsu

Synergy Percussion & Taikoz : Annual Report 2018

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 2018

Directors’ Report

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 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:

Elsa Atkin

Experience:

Non-Executive 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’ 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 16 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.

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Synergy Percussion & Taikoz : Annual Report 2018

Directors’ Report

Meetings of directors The following table sets out the number of meetings of the company’s directors held during the year ended 31 December 2018 and the number of meetings attended by each director.

Directors meetings held whilst a director

Directors meetings attended

Jeremy Wright

6

6

Norman Weaver

6

2

Ian Cleworth

6

4

Jodie Baker

6

5

Phillipa Berkett

6

3

Elsa Atkin

6

5

Karen Russell

6

5

John Sharpe

6

3

Signed in accordance with a resolution of the directors.

Jeremy Wright Director Sydney, 13 May 2019

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Synergy Percussion & Taikoz : Annual Report 2018

Artistic Director’s Report

© Synergy & TaikOz Ltd 2018 12

Directors’ Report

Synergy Percussion & Taikoz : Annual Report 2018

Artistic Director’s Report

Artistic Director’s Report 2018 was a busy and fulfilling year for Taikoz. With February 22 as the date for the World Premiere of Lachlan Skipworth’s Breath Of Thunder, the ensemble worked on the final re-writes and rehearsal of the complex score with feverish alacrity right from the very beginning of January.

With something of a metaphorical crescendo, the five members of Taikoz, featured soloists Riley Lee and Kaoru Watanabe, and the Sydney Symphony Orchestra conducted by Gerard Solonga delivered a powerfully emotional performance of Lachlan’s impressive music to a full house in the Concert Hall of the Sydney Opera House.

And 2018 didn’t let up from that point! Each day of the year was filled with one or more of the following – a community class, workshop, rehearsal, creative development session, small group lesson, private practice, composing session, a performance at a school, community hall, regional theatre or major concert hall. Naturally, this busy schedule meant that all members of Taikoz were creatively engaged, but it also saw over 100 other people closely associated with the group being involved on many levels, too. Whether it was attending a weekly class, rehearsing in one of our community groups, or practicing late into the night, all of this activity in and around our Ultimo dojo made for a very exciting, stimulating, surprising, enjoyable, challenging, and ultimately fruitful creative space, indeed.

While Synergy’s year was not as active as Taikoz’s, it did see the group play an integral part in a tribute performance to a major, well-loved Australian composer, Ross Edwards, as well as produce a truly outstanding self-generated mainstage project, Timber. Led by a guest Artistic Director – the brilliant Perth-based percussionist Louise Devenish – Synergy again demonstrated why it is such a vital and important contributor to the Australian music scene. And with the very real possibility of a new Artistic Director in 2020, Synergy can look forward to a fresh, exciting phase in its proud history.

Despite the loss of Australia Council funding, Synergy and Taikoz’s small but incredibly dedicated staff, committed, hardworking board, and passionate, talented artists has seen the company continue to thrive in 2018, and I am extremely grateful and proud to be a part of it all.

Ian Cleworth Taikoz Artistic Director | Synergy Acting Artistic Director

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Synergy Percussion & Taikoz : Annual Report 2018

Artistic Director’s Report

Mainstage productions and concerts

Taikoz Meets The SSO Taikoz | Riley Lee | Kaoru Watanabe | Sydney Symphony Orchestra | Gerard Solonga Sydney Opera House Concert Hall | February 22-24 Composition: Benjamin Britten | Ian Cleworth | Riley Lee | Lachlan Skipworth | Kaoru Watanabe This was a biggie! It’s not every year a small ensemble such as ours gets to collaborate with the might of the Sydney Symphony Orchestra in three sold-out, critically acclaimed performances. But what a joy it was! Joined by old friends Taikoz Co-founder and shakuhachi player extraordinaire Riley Lee, and shinobue/nohkan/taiko virtuoso Kaoru Watanabe, Taikoz performed works by Riley, Kaoru and Ian alongside the World Premiere of Breath Of Thunder by Lachlan Skipworth.

After months of correspondence with Lachlan and many creative development sessions, the young Western Australian composer created an imaginative and beautifully imagined work. Being a shakuhachi player himself, Lachlan wrote a highly original part for Riley. While his music drew on the techniques and traditions of this most ancient of Japanese instruments, the musical material was contemporary in expression and fitted extremely well into the fabric of the overall piece.

A highlight of Breath Of Thunder was a duet between Riley’s mellifluous shakuhachi and Kaoru’s soulful shinobue (bamboo flute), performed across the expanse of the orchestra. The ensemble taiko and percussion writing was also very cleverly conceived and provided counterbalancing rhythmic and aural energy to that of the orchestra.

Here’s what Angus McPherson of Limelight (magazine) had to say: “… Skipworth demonstrated a remarkable command of the huge forces at his disposal. There were moments of vivid orchestral painting – the sound of Lee’s breath seemed to splinter out across the orchestra, while a tranquil interlude had the ensemble glistening like droplets of water on leaves after rain – as well as climaxes of potent rhythmic force, disparate elements combining in a work of both exquisite delicacy and tremendous power.”

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Synergy Percussion & Taikoz : Annual Report 2018

Artistic Director’s Report

Taikoz Live! At The Glen Taikoz | Riley Lee | IDP Glen Street Theatre | April 13-15 Composition: Ian Cleworth | John Cleworth | Rando Fukuda | Ryuji Hamada | Kenichi Koizumi Riley Lee | Joe Small Choreography: Chongwei Zhang Taikoz has had a long association with the Glen Street Theatre and it was a pleasure to return with a wide range of works for a 4-concert season in 2018.

Featured soloist Riley Lee performed several contemporary pieces, including a collaborative work, Deep Mountain Cicada, with Kerryn Joyce as dancer. Students who make up our Individual Development Ensemble (IDPE) joined forces with Taikoz in the World Premiere of Joe Small’s Propel. Joe – an American taiko professional – was a member of Taikoz for nearly 12 months (2017-2018) before taking up the position of Assistant Professor of Dance with specialisation in Taiko at Philadelphia’s Swarthmore College. Propel has gone on to have many performances since and we are thrilled to have such a strong, exciting work as part of the group’s repertoire.

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Synergy Percussion & Taikoz : Annual Report 2018

Artistic Director’s Report

Taikoz Live!

At Darling Quarter with Kodo’s Yoshikazu Fujimoto & Yoko Fujimoto Taikoz | Yoshikazu Fujimoto | Yoko Fujimoto Darling Quarter Theatre | June 9 Composition: Ian Cleworth | Joe Small | Traditional Japanese Music | Yoko Fujimoto Yoshikazu Fujimoto Composition: Chongwei Zhang Taikoz Live! had the pleasure of presenting two legends of the taiko world, Yoshikazu Fujimoto and Yoko Fujimoto. Giants in their field, both Yoshikazu and Yoko have been at the forefront of Japan’s cultural life for over 40 years as members of the world-renowned performing ensemble Kodo.

Yoshikazu is a pioneer in the development of the art of odaiko (Grand Drum) playing; his 15-minute solos are truly something to behold! Taking the listener to other places, Yoshikazu coaxes, cajoles, caresses and creates complex sounds and emotions from his Grand Drum. To sum up Yoshikazu’s playing in a few words: it would be deep, sincere, life-affirming.

Yoko is a singer of such refinement, beauty and grace that one can’t help but be moved by the range of expression in her voice. She has also dedicated herself to sharing her love of song with others through teaching. Yoko’s workshops are equal parts fun and educational, and she, like Yoshikazu, is an inspiration to many.

Since retiring from Kodo’s mainstage, Yoshikazu and Yoko now perform and teach as Ninin Angya, which translates as “a duo’s pilgrimage”. Together they have entertained and inspired people all over the world and Taikoz was thrilled that they were able to share their love of music with Sydney audiences in 2018.

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Synergy Percussion & Taikoz : Annual Report 2018

Artistic Director’s Report

Synergy with Sydney Chamber Choir

Dance / Chant: Celebrating Ross Edwards City Recital Hall | August 4 Sydney Chamber Choir | Synergy Composition: Ross Edwards | Hildegard Sculthorpe Maclean Stanhope et al

Ross Edwards is an icon of Australian musical composition and 2018 saw a celebration of his life and work in the Sydney Chamber Choir’s 75th birthday tribute to him. Notable not only for his extensive number of works for voice, Ross has also been a long-term collaborator of Synergy’s, and it was this relationship that saw the ensemble join forces with SCC in an eclectic program of works for choir and percussion.

Premiered by Synergy in 1991, Ross’s Prelude and Dragonfly Dance sounded just as fresh and vibrant some 27 years later. Deceptively tricky in the writing for marimbas, vibraphone and percussion, Synergy brought their trademark virtuosity and lightness of touch to the performance, contributing to a fitting and heartfelt tribute to Ross.

Ross Edwards Photo ©Michael Mortlock

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Synergy Percussion & Taikoz : Annual Report 2018

Artistic Director’s Report

Taikoz At Phoenix Dangrove | September 23 Taikoz | Tomoko Oka Composition: Ian Cleworth | John Cleworth | Ryuji Hamada | Kerryn Joyce | Joe Small Traditional Japanese Music, Dance and Shinto Chant

Taikoz was invited to participate in Phoenix, the Neilson Foundation’s visionary music performance initiative.

Presented – confronted! – with the sight and sound of Judith Nielson’s extraordinary Dangrove, an art storage facility in Sydney’s Alexandria, Artistic Director Ian Cleworth set to creating a site-specific performance for the occasion. Inspired by the cathedral-like dimensions and acoustic of Dangrove, Ian exploited a 5-second reverberation time, high cross-bridge, open expanse, and changing light filtered through a paper-like, opaque roof to great effect.

The theatrical highpoint was reached at the very end. After the 15-minute power and energy of four odaiko and conch shells in Ian Cleworth’s Pearl, silence – or rather, the soft ambient reverberations of the natural acoustic – accompanied the dance-like performance of calligraphy artist Tomoko Oka in the creation of her 4m x 2m paper work, 真珠 (‘Shinju’ / ‘Pearl’).

It was a stunning finale to a unique event.

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Tomoko Oka (Pearl calligraphy)

Synergy Percussion & Taikoz : Annual Report 2018

Artistic Director’s Report

Bellingen Fine Music Festival

Timber

Bellingen Memorial Hall | September 29

Trackdown | November 17

Taikoz 4tet

Synergy | Louise Devenish, Guest Artistic Director

Composition: Ian Cleworth | John Cleworth Kerryn Joyce | Joe Small In 2017, Artistic Director Ian Cleworth developed a program for quartet, which was conceived to give greater flexibility in performing contexts and travel. In 2018, Bellingen Fine Music Festival’s Artistic Advisor was the inimitable Seth Jordan (also an excellent music journalist), and it was upon his invitation that the Taikoz 4tet headlined an eclectic program of artists and works.

Although Taikoz has been a regular visitor to the beautiful town of Bellingen, the group hadn’t played there for over 10 years, and so Taikoz’s contribution was enthusiastically received by many in the audience who remembered our concerts of times past. A full-house workshop on the following morning was testament to Bellingen’s warm re-embrace of Taikoz.

Composition: Michael Gordon Perth-based virtuoso percussionist Louise Devenish was invited to lead the Synergy sextet in a performance of Michael Gordon’s Timber. Extending over an unbroken 60 minutes, a cleverly unfolding line of polyrhythmic variations is performed on six pieces of timber – essentially planks of wood as found in any garage, hardware store, or old tumbledown structure. Under Louise’s clear and informed direction – and aided by Ross Ahern’s subtle audio production and Lee McIver’s visual staging – the six Synergy performers executed the complexities of Gordon’s highly original score to perfection.

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Synergy Percussion & Taikoz : Annual Report 2018

Artistic Director’s Report

Touring Taikoz always enjoys the opportunity to share our music with others. Having established ourselves as a national company, Taikoz is committed to touring productions, small and large, and educational activities to well beyond our metropolitan Sydney home base. While touring in 2018 was minimal, Taikoz enjoyed a visit to the Bellingen Fine Music Festival where an enthusiastically over-subscribed workshop was given on the morning after the concert. Needless to say, all had an enjoyable and educational time.

Bellingen Fine Music Festival

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Synergy Percussion & Taikoz : Annual Report 2018

Artistic Director’s Report

Education Taikoz is equally passionate about its many and varied educational activities, which in 2018 included over 450 weekly community classes and the presentation of our own series of concerts and workshops for school children.

Individual Development Program (IDP) The Individual Development Program is an intensive course for aspiring taiko players intended to develop players’ skills. In 2018 it ran from February to October and culminated in a ‘house concert’ in our Ultimo Dojo. 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.

Moorambilla Voices Taiko Ensemble led by Anton Lock and Sophie Unsen

Taiko no Wa

Our award-winning ensemble Taiko no Wa continued into its second decade. Drawn from our student body, Taiko no Wa is organized by the players and gave numerous concerts at community festivals. Some members compose their own music, which is work-shopped and performed by the group on a regular basis.

Sunday Elements I Class

IDPE 2018

Taiko no Wa 2018

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Synergy Percussion & Taikoz : Annual Report 2018

National Choral School | Gondwana Choirs University of NSW and John Clancy Auditorium | January 9-19

Two members of Taikoz, Ryuji Hamada and Joe Small, led the talented singers of the Gondwana Choir’s annual National Choral School in a fortnight of taiko and song workshops, which culminated in a public performance at UNSW’s Clancy Auditorium. Pleased to have been invited to contribute to their extensive program of musical activities, Taikoz’s aim was to introduce the children to the sound, rhythm and style of the taiko, as well as its Japanese cultural roots through the singing of folk songs.

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Artistic Director’s Report

Musica Viva In Schools (MVIS) Western Australia (March) | Northwest NSW (May) | Greater Western Regional NSW (JuneJuly) | Adelaide / South Australia Regional (August) | Sydney Metro West (OctoberNovember) | Riverina NSW (November) In 2016, Taikoz partnered with MVIS to develop an extensive education resource kit focusing on Taikoz’s music and performance. Now in its third year, the Taikoz Trio toured to Western Australia, NSW’s Greater Western region, Adelaide Metropolitan and South Australia regional areas, Sydney’s Metropolitan West region, and NSW’s Riverina. As in previous years, graduates from Taikoz’s IDP continued to assist Taikoz members in the presentation of the schools concerts.

Synergy Percussion & Taikoz : Annual Report 2018

Sannin Angya Taikoz Dojo | June 10-12

Artistic Director’s Report

MAXed Out! | Moorambilla Festival Baradine-Dubbo NSW | August-September

In combination with our collaborative concert Taikoz Live! At Darling Quarter, Kodo Distinguished Members Yoshikazu Fujimoto & Yoko Fujimoto, known in this context with interpreter Melanie Taylor as Sannin Angya, presented a series of brilliant workshops for taiko enthusiasts. Acknowledged as true greats in their field, Yoshikazu and Yoko gave of themselves with a spirit of genuineness and openness and it is no understatement to say that the 25 participants from Sydney, Melbourne, Tasmania and the Bega Valley thoroughly enjoyed learning from such masters.

Continuing our long-term partnership with Moorambilla Voices, 2018 saw the return of ex-Taikoz member Anton Lock to head our contribution to Michelle Leonard and her Moorambilla Voices’ visionary education program. Along with current Taikoz member Sophie Unsen, Anton created a new work for the children that also incorporated choreography and a pre-recorded backing track. A record number of young players – 100, in fact! – had the challenge and excitement of bringing Anton’s music to life at the August MAXed Out! rehearsal camp in Baradine and then in performance at the Dubbo Entertainment Centre for the Moorambilla Festival.

Other Workshops And Events | Onikenbai Club In September, Taikoz received a visit from young Japanese taiko player Hirotaka Ran upon recommendation of his teacher – top taiko professional Hiro Hayashida. Hirotaka joined Taikoz’s rehearsal sessions over the course of a week and travelled with the ensemble to observe our Bellingen Fine Music Festival performance and workshop. Workshops for the Gold Coast based taiko group Kizuna were also held by Taikoz member Ryuji Hamada.

Ryuji Hamada and Sophia Ang led our Onikenbai Club members to Japan in August for intensive professional development with Iwasaki Onikenbai Hozonkai. Both Ryuji and Sophia had the honour of performing in the Kitakami Michinoku Geinou Matsuri.

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Synergy Percussion & Taikoz : Annual Report 2018

Annual Financial Report

Auditor’s Independence Declaration

24

Synergy Percussion & Taikoz : Annual Report 2016

Annual Financial Report

Synergy & TaikOz Ltd Annual Financial Report 31 December 2018

Š Synergy & TaikOz Ltd 2018 25

Synergy Percussion & Taikoz : Annual Report 2018

Annual Financial Report

Statement of Comprehensive Income for the year ended 31 December 2018 Synergy & TaikOz Ltd

Revenue

Note

2018 $

2017 $

3

763,521

782,355

763,521

782,355

Total revenue Expenses Employee benefits expense

4

(215,551)

(195,835)

Depreciation and amortisation expenses

4

(43,984)

(46,776)

Adminitstration expenses

(115,231)

(138,942)

Cost of merchandise sold

(9,545)

(49,509)

(373,662)

(345,973)

(757,973)

(777,035)

5,548

5,320

-

-

5,548

5,320

-

-

5,548

5,320

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.

26

Synergy Percussion & Taikoz : Annual Report 2018

Annual Financial Report

Statement of Financial Position for the year ended 31 December 2018 Synergy & TaikOz Ltd

Note

2018 $

2017 $

Cash and cash equivalents

5

406,363

284,878

Trade and other receivables

6

15,935

12,524

Inventories

7

23,391

30,476

Prepayments and deposits

8

18,967

19,752

464,656

347,630

186,567

231,056

186,567

231,056

651,223

578,686

10

112,056

83,511

Employee benefits

11

6,223

6,669

Unearned income

12

17,506

22,588

Government grants

13

150,000

150,000

Corporate cash sponsorship

50,000

-

Total current liabilities

335,785

262,768

13,969

19,997

13,969

19,997

TOTAL LIABILITIES

349,754

282,765

NET ASSETS

301,469

295,921

301,469

295,921

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

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 2018

Annual Financial Report

Statement of Changes in Equity for the year ended 31 December 2018 Synergy & TaikOz Ltd

Balance at 1 January Profit/(Loss) for the year (as reported) Balance at 31 December

2018

2017

295,921

290,601

5,548

5,320

301,469

295,921

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

28

Synergy Percussion & Taikoz : Annual Report 2018

Annual Financial Report

Cash Flow Statement for the year ended 31 December 2018 Synergy & TaikOz Ltd

Note

2018 $

2017 $

Receipts from customers

651,962

507,369

Receipts from appropriations/grants

150,000

208,812

3,066

1,691

(464,391)

(499,967)

(215,551)

(195,835)

18

125,086

22,070

9

(3,601)

(9,127)

(3,601)

(9,127)

Increase/(Repayments) of borrowings

-

-

Unrealised foreign exchange gain/loss

-

-

Net cash used in financing activities

-

-

121,485

12,943

284,878

271,935

406,363

284,878

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 2018

Annual Financial Report

Notes to the Financial Report for the year ended 31 December 2018 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 2018

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 2018. Synergy & TaikOz Ltd is a company limited by guarantee, incorporated and domiciled in Australia. Its principal place of business is Level 1, 101 Johnston 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 13 May 2019. (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 2018

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 2018

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 2018

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 2018

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 2018).

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 2018

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 2017 and 2018.

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 2018

Annual Financial Report

3 Revenue for the year ended 31 December 2018 Synergy & TaikOz Ltd REVENUE FROM CONTINUING OPERATIONS

2018 $

2017 $

17,942

61,764

146,335

73,539

164,277

135,303

284,484

245,395

284,484

245,395

Australia Council – triennial funding

-

-

Australia Council – transition grant

-

48,000

150,000

130,000

Austrade EMDG

-

17,812

City of Sydney grant

-

13,000

150,000

208,812

7,519

8,966

7,519

8,966

Donations received

88,682

76,587

Trusts, Foundations, Corporate

16,039

14,328

Fundraising revenue

-

10,273

Sponsorship - Cash

-

41,667

23,000

23,000

Interest received

3,066

1,691

Freight and touring costs reimbursed

16,310

15,404

Sundry revenue

2,871

929

Depreciation recovery on revalued taiko instruments

7,273

-

157,241

183,879

763,521

782,355

SALES REVENUE Performance fees: Box office income Contract appearances

EDUCATION REVENUE Education – workshops, school concerts and taiko school fees received

GOVERNMENT GRANTS

Arts NSW – triennial funding

SALE OF GOODS Sales of merchandise

OTHER REVENUE

Sponsorship in Kind (software, venues, legal, accountancy)

TOTAL REVENUE

37

Synergy Percussion & Taikoz : Annual Report 2018

Annual Financial Report

4 Expenses The surplus includes the following specific expenses: 2018 $

2017 $

43,984

46,776

43,984

46,776

178,853

157,023

-

132

Superannuation

39,643

31,907

Long service leave provision

(6,028)

1,766

Annual leave provision

(5,000)

2,495

Personal leave provision

4,554

-

Workers compensation insurance

3,529

2,512

215,551

195,835

Cash at bank and on hand

204,731

84,312

Deposits at call

201,632

200,566

-

-

406,363

284,878

Depreciation Plant and equipment

Employee benefits expense Salaries and wages Staff development and travel

5 Cash and cash equivalents

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

406,363

284,878

(b) Deposits at call The deposits are bearing floating interest rates between 1.35% and 1.5% (2017 – 1.35% and 2.15%).

These funds are at call.

38

Synergy Percussion & Taikoz : Annual Report 2018

Annual Financial Report

6 Trade and other receivables 2018 $

2017 $

15,935

12,524

23,391

30,476

18,967

19,752

682,772

701,448

(496,205)

(470,392)

186,567

231,056

231,056

268,705

Additions

3,601

9,127

Disposals

-

-

(4,106)

-

(43,984)

(46,776)

-

-

186,567

231,056

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

Fixed asset written off Depreciation Carrying amount 31 December

39

Synergy Percussion & Taikoz : Annual Report 2018

Annual Financial Report

10 Trade and other payables Current

2018 $

2017 $

Trade creditors

7,686

4,366

GST payable

46,574

43,415

Sundry creditors and accrued charges

57,796

35,730

112,056

83,511

Liability for annual leave

1,669

6,669

Liability for personal leave

4,554

-

6,223

6,669

13,969

19,997

15

16

Taikoz school and intensive study fees in advance

6,506

7,388

Contract income in advance

11,000

15,200

-

-

17,506

22,588

11 Employee benefits Current

Non-current Liability for long service leave Employee numbers Average number of employees during the financial year

Note: 6 Head office staff totaling 1.75 FTEs and 9 casual employees

12 Unearned income Current

Sponsorship in advance

40

Synergy Percussion & Taikoz : Annual Report 2018

Annual Financial Report

13 Government grants Current Arts NSW – Triennial Funding 2019 TAL corporate cash sponsorship 2019

2018 $

2017 $

150,000

150000

50,000

-

150,000

150,000

3,500

3,500

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 2018

Annual Financial Report

15 Financial instruments 2018 Less than 6 months

Between 6 months & 1 year

1 year to 5 years

More than 5 years

Total

406,363

-

-

-

406,363

15,935

-

-

-

15,935

422,298

-

-

-

422,298

(112,056)

-

-

-

Financial assets Cash and cash equivalents Trade and other receivables Total financial assets Financial liabilities

Trade and other payables

(112,056) Total financial liabilities

(112,056)

-

-

-

(112,056)

310,242

-

-

-

310,242

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

Net financial assets

2017

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 1.5% at 31 December 2018 (31 December 2017: 1.75%). Trade and other receivables and Trade and other payables are not interest bearing financial instruments.

Sensitivity Analysis At 31 December 2018 it is estimated that a general increase of one percentage point in interest rates would increase the company profit by approximately $7,053 (at 31 December 2017: $2,849).

42

Synergy Percussion & Taikoz : Annual Report 2018

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

2018 $

2017 $

79,716

79,716

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 2018 $

2017 $

Payable not later than 1 year

23,565

15,995

Later than 1 year but no later than 5 years

10,476

-

34,041

15,995

Operating leases Taiko School studio and head office lease Minimum commitments payable are as follows:

Representing: Non-cancellable operating leases

43

Synergy Percussion & Taikoz : Annual Report 2018

Annual Financial Report

18 Reconciliation of surplus from ordinary activities to net cash inflows from operating activities 2018 $

2017 $

5,548

5,320

43,984

46,776

-

-

4,106

-

(3,411)

8,708

7,085

21,086

785

74,510

Increase/(Decrease) in trade and other payables

28,545

(70,401)

Increase/(Decrease) in provision for Employee entitlements

(6,474)

4,262

44,918

(68,191)

125,086

22,070

Profit/(Deficit) from ordinary activities Depreciation of plant and equipment Revaluation of instruments Fixed asset written off Changes in operating assets and liabilities Decrease/(Increase) in trade and other receivables Decrease/(Increase) in inventories (Increase)/Decrease in prepayments and deposits

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, 101 Johnston Street ANNANDALE NSW 2038

Synergy Percussion & Taikoz : Annual Report 2018

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 2018, 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 2018, or on the results and cash flow of the Company for the year ended on that date.

45

Synergy Percussion & Taikoz : Annual Report 2018

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 2018 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

13 May 2019

Synergy Percussion & Taikoz : Annual Report 2018

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 2018;

(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 2018;

(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 2018; 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

13 May 2019

47

Synergy Percussion & Taikoz : Annual Report 2018

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 2018, 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 2018, 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 2018

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 2019 year is in line with the 2018 year results. We obtained a copy of the budget for the 2019 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 2018, 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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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.

-

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 13th day of May, 2019

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 2018

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 2018. 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 13th day of May, 2019

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 2018

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 2018 program.

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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