WAO 2018 Annual Report

ANNUAL REPORT

2018

LA BOHEME | THE CUNNING LITTLE VIXEN | CARMEN | DON GIOVANNI | OPERA IN THE REGIONS

West Australian Opera THREE YEAR PLAN 2019-2021 In 2018 WAO worked with Evolve Leadership, Red Emu and Painted Dog Research to meet with internal and external stakeholders to then inform and develop a new three-year plan for the company.

Our dream We want to present opera that moves you, enchants you and makes you think about the magic of being alive in the world today.

West Australian Opera seeks to speak to the heart through the human voice. We want to share the joy of music through opera and the powerful stories opera tells.

We want to be part of your journey by being with you throughout your life; in schools, communities, regions and the theatre.

We want to carry the four hundred year old operatic flame into the next era and never let it go out. Instead we will fuel it and stoke it, we will build it with you and spread it around for all to know and experience.

Our why Bringing people together and making them feel alive through igniting emotions and imaginations with the power of sung stories.

Our strategic issues Six areas emerged as strategic issues that pose as avenues for growth and improvement for our future: communications, audiences, content, experience, financial sustainability, innovation.

Our culture We value people, collaboration, sustainability, innovation, integrity.

Our strategic pillars Content and experience, innovation, communication, audience and access, opera artform development, sustainability.

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LA BOHEME CITY OF PERTH OPERA IN THE PARK, SUPREME COURT GARDENS 3 FEBRUARY

THE CUNNING LITTLE VIXEN HIS MAJESTY’S THEATRE 21, 24, 26,28 APRIL

CARMEN HIS MAJESTY’S THEATRE 21, 24, 26, 28 JULY

DON GIOVANNI HIS MAJESTY’S THEATRE 20, 23, 25, 27 OCTOBER

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Chairman’s Report West Australian Opera receives support from the Western Australian Government through the Department of Local Government, Sport and Cultural Industries and Lotterywest, and the Australian Government through the Australia Council for which we are very grateful

I am pleased to present West Australian Opera’s Annual Report for the company’s 51st year.

The contribution of our patrons, sponsors and donors is critical to our success, and we are proud to maintain strong partnerships with our supporters all of whom have contributed to our success.

West Australian Opera acknowledges and thanks Principal Partner Wesfarmers Arts, Official Airline Partner Qantas, Civic Partner City of Perth, Minderoo Foundation, Lotterywest and Healthway with the message Act-Belong-Commit.

We are grateful to the Western Australian Government through the Department of Local Government, Sport and Cultural Industries and Lotterywest and to the Australian Government through the Australia Council.

Thank you to patrons who offer personal contributions and continued commitment to the company through the Private Giving Program. We are grateful for leadership donations through the Bendat Scholarship, the Bel Canto Fund, the McCusker Foundation, the James Galvin Family Trust and trusts and foundations who give their support. We are grateful for the gift of FMG shares which we hold.

I thank my fellow directors for their support, time and expertise and in particular I thank retiring board member Julian Burt for his years of service. I thank the management and staff of West Australian Opera for their ongoing work, passion and commitment in bringing opera to the stage.

ANDREW PASCOE CHAIRMAN, WEST AUSTRALIAN OPERA

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Principal Partner Wesfarmers Arts Wesfarmers is Western Australia’s leading corporate supporter of the arts with a demonstrated leadership position in Australia and is the Principal Partner of the state opera company.

Wesfarmers Arts recognises that opera offers a unique and rich experience involving principal singers, actors, chorus, orchestra, a conductor, director, choreography and high production values including sets, costumes, lighting and backstage elements: it is indeed a multi-sensory art form.

Wesfarmers and West Australian Opera first worked together in 1998. Since then the partnership has expanded to embrace production seasons, the commissioning of a new opera in 2007 through the Wesfarmers Arts Commission Series (The Love of the Nightingale by Richard Mills), annual support and the development of the Wesfarmers Young Artists program.

In 2009 Wesfarmers became Principal Partner of West Australian Opera. This Principal Partnership underpins the ongoing life and vitality of the state opera company.

This award winning partnership is fundamental to the state opera company and is appreciated and valued by the board, management, company and audiences.

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Executive Director’s Report We gratefully recognise the support of Principal Partner Wesfarmers who continue to inspire with their dedication to the arts in Western Australia

The state opera company was able to share the joy of opera with many people around the state, not only on the mainstage in the beautiful His Majesty’s Theatre, but also around the state through Opera in the Regions presented in the Pinnacles and the Valley of the Giants, Opera in the Quarry and performances in schools and communities from Broome to Denmark.

I acknowledge Annie Patrick for program notes and pre-performance talks. I acknowledge and thank all of the company’s donors and foundations including support for the Bel Canto Fund, the Bendat Scholarship, the McCusker Foundation, Galvin Family Foundation, Andrew and Nicola Forrest and the Minderoo Foundation, the Society of WA Opera Lovers, the generosity of our anonymous donors and all supporters of the company.

Board, management and staff worked together to produce a new strategic plan and a new set of key performance indicators. This three-year plan offers a roadmap to the company’s future and will be guided and implemented with the appointment of the company’s new Music Director.

It is the aim of West Australian Opera to deliver excellence both on and off the stage, and I wish to acknowledge and thank the Board including Chairman Andrew Pascoe, deputy Chair Catherine Ferrari, Ingrid O’Brien, Jan Stewart, Mario D’Orazio, Darren Lewsen and Anthony Gianotti. I thank Warwick Hemsley, who retired from the board at the AGM, and Julian Burt, who retired at the end of the year, and I thank them both personally and on behalf of the company for their wonderful support.

My grateful thanks to staff and colleagues with whom I work closely all year-round at West Australian Opera, His Majesty’s Theatre, Department of Local Government, Sport and Cultural Industries, Perth Theatre Trust, the Australia Council, Lotterywest, Healthway and industry colleagues.

CAROLYN CHARD AM EXECUTIVE DIRECTOR, WEST AUSTRALIAN OPERA

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Music Director’s Report Commencing the role in January 2019 as Music Director has been an exciting new chapter in my musical life and, I trust, the musical life of the state opera company.

I succeeded Brad Cohen and acknowledge the work that he has done over the past several years and particularly his own focus on core development in the company. In his own words on “three strands of renewal – new works and formats, new productions, and building sustainable Australian operatic careers. My goals as Artistic Director of WAO remained steadfast between 2015 and 2018: to refresh the repertoire we offer, whether old or new; increase our connection with our audiences, some of whom want the familiar, some the new; achieve artistic standards of consistent and rising excellence; and strengthen and further deepen our relationships with the community, benefactors, institutions, and artists. I believe that the last four years have provided abundant evidence of the wisdom – and the benefits – of this strategic direction.”

I’m very much looking forward to building on the artistic leadership of previous Artistic Directors here at West Australian Opera, providing new and innovative ways to experience the artform and sharing the love of opera with the people of Western Australia and our national and international friends and colleagues.

CHRIS VAN TUINEN MUSIC DIRECTOR, WEST AUSTRALIAN OPERA

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West Australian Opera The Company BACKGROUND West Australian Opera was established in 1967 and celebrated its 50th anniversary in 2017. It is Western Australia’s full-time, professional state opera company.

The company presents operas drawn from the mainstream operatic repertoire and increasingly is involved in the commissioning and development of new repertoire.

The company offers an annual subscription season of main stage productions as well as programs in regional Western Australia and a strong education program and ancillary activities, including concerts and community events in Western Australia.

It is an incorporated association with a board of eight directors chaired by Andrew Pascoe.

The company receives income from federal and state funding, box office revenue, donations and sponsorship.

We are grateful to the federal government and Australia Council, the state government and Department of Local Government, Sport and Cultural Industries, and local government through the City of Perth. We acknowledge our valued Principal Partner Wesfarmers Arts.

PRODUCTIONS Each year West Australian Opera presents three operas in His Majesty’s Theatre and the free community event City of Perth Opera in the Park.

TOURING AND COMMUNITY EVENTS West Australian Opera is committed to taking the art form to as many people in Western Australia as possible through the touring of small scale work to regional Western Australia and the participation of the company in community events.

EDUCATION West Australian Opera provides support for students and teachers for each opera. We recognise the place West Australian Opera occupies in the study of music in Western Australia and we work to offer the best possible experience for students.

WESFARMERS ARTS YOUNG ARTIST PROGRAM

Young and emerging artists are offered training, advice, support and a creative pathway into the Company. We work with established artists locally, nationally and internationally to provide opportunities for creativity and career advancement.

‘The arts lift people out of their everyday’ (Nicola Forrest)

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West Australian Opera Board and Company BOARD Chairman Andrew Pascoe Deputy Chair Catherine Ferrari Directors Julian Burt (to Dec 2018) Ingrid O’Brien Darren Lewsen Jan Stewart Mario D‘Orazio Anthony Gianotti Christiaan Heyning VICE REGAL PATRON His Excellency, the Honorable Kim Beazley AO Governor of Western Australia

COMPANY Executive Director Carolyn Chard AM Artistic Director Brad Cohen (2015-2018) Music Director Chris van Tuinen (from January 2019) Production Manager Mandy Farmer

Development Manager Coralie Bishop (mat leave March-Sep) Claudia Rayne (Acting DM 2018) Artistic Administrator Rebecca Kais (to 6 December 2018) Kate Larkins (from 8 November 2018)

PATRONS Dr Jack Bendat AM CitWA

Accountant Debbie Byrnes

HONORARY LIFE MEMBERS Dario Amara Cav Uff Giuseppe Bertinazzo OMRI Hon Julie Bishop MP Frank Cooper Erich Fraunschiel Colin Goddard Francis Landels Margaret McManus Richard Mills AM Marilyn Phillips Vincent A Warrener AM KHS Annie Patrick Bruce Martin AM Warwick Hemsley

Education Manager Terasa Letizia

Commissioned Artist Tim Finn OBE

Publicity Consultant Lynne Burford

Wesfarmers Arts Young Artists and Bendat Scholars Rebecca Castellini Fleuranne Brockway

Financial Accountant Sue Hobson

Marketing Manager Danielle Barlow

Marketing Assistant Daniele Foti-Cuzzola Development & Marketing Coordinator Tanner Davies (to 10 August 2018) Catherine Power (from 1 October 2018) Office Coordinator Marion O’Connor (to 1 June 2018) Holly Langford-Smith (from 16 July 2018)

Regional Project Manager Melanie Timms Stage Manager Karen Farmer

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LA BOHĂˆME PUCCINI CITY OF PERTH OPERA IN THE PARK A free event supported by Lotterywest and Act-Belong-Commit

Supreme Court Gardens | 3 February 2018 Simulcast to Albany, Broome, Bunbury, Carnarvon, Esperance, Geraldton, Kalgoorlie, Margaret River, Merredin, Port Hedland, Community Resource Centers Conductor Director Production Manager Repetiteur Rodolfo Mimi Marcello Musetta Schaunard Colline Benoit Alcindoro

Brad Cohen Stuart Maunder Mandy Farmer Tommaso Pollio Paul O’Neill Elena Perroni James Clayton Rachelle Durkin Mark Alderson Paull-Anthony Keightley Matthew Lester Mark Hurst

West Australian Opera Chorus West Australian Symphony Orchestra Sung in Italian with English subtitles

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THE CUNNING LITTLE VIXEN JANACEK His Majesty’s Theatre 21, 24, 26, 28 APRIL

Composer Libretto Conductor Director Set Designer Costume Designer Lighting Designer Guest Chorus Master & Music Supervisor Vixen Fox Forester Schoolmaster / Mosquito Forester’s Wife / Owl Harašta Parson / Badger

Leoš Janáček Rudolf Těsnohlídek & Stanislav Lolek Johannes Fritzsch Stuart Maunder Richard Roberts Roger Kirk Trudy Dalgleish Marilyn Phillips Emma Pearson Rachelle Durkin James Clayton Matt Reuben James Ward Ileana Rinaldi Mark Alderson Paull-Anthony Keightley

West Australian Opera Chorus West Australian Symphony Orchestra Sung in English with English surtitles

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CARMEN BIZET His Majesty’s Theatre 21, 24, 26, 28 JULY Composer Libretto Conductor Director Set Designer Costume Designer Lighting Designer Lighting realized by Guest Chorus Master Carmen Don José Escamillo Micaëla Zuniga Moralès Frasquita Mercédès Dancaïre Remendado Lillas Pastia

Georges Bizet Ludovic Halevy & Henri Meilhac Antony Walker Lindy Hume Dan Potra Vicki Feitscher Stephen Wickham Matthew Marshall Ian Westrip Milijana Nikolic Paul O’Neill James Clayton Emma Pearson Paull-Anthony Keightley Sam Roberts-Smith Rebecca Castellini Fleuranne Brockway Mark Alderson Matt Reuben James Ward Michael Loney

West Australian Opera Chorus West Australian Symphony Orchestra Sung in French with English surtitles

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DON GIOVANNI MOZART His Majesty’s Theatre 20, 23, 25, 27 OCTOBER Composer Libretto Conductor Director Rehearsal Director Set and Costume Designer Lighting Designer Guest Chorus Master Don Giovanni Leporello Il Commendatore Donna Anna Donna Elvira Don Ottavio Masetto Zerlina

Wolfgang Amadeus Mozart Lorenzo Da Ponte Brad Cohen Göran Järvefelt Roger Press Carl Friedrich Oberle Nigel Levings Perry Joyce Teddy Tahu Rhodes James Clayton Jud Arthur Anita Watson Emma Pearson Jonathan Abernethy Wade Kernot Rebecca Castellini

West Australian Opera Chorus and West Australian Symphony Orchestra Sung in Italian with English surtitles

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OPERA IN EDUCATION WESFARMERS ARTS MAKE-UP WORKSHOPS 4 workshops for 101 participants.

This practical introduction to the world of theatrical make-up is great fun for students. In this 2 hour workshop students are able to explore ideas, observe professional technique and use their own imagination to create a personal artwork. Following a demonstration on the techniques involved in creating a character, students craft their own design and then have a go at transforming themselves and their classmates. With many questions and much exuberance this is a wonderful learning experience for students from year 4 to year 12.

COMMUNITY SINGING WORKSHOPS, TALKS and MORE 15 Events and 604 participants West Australian Opera is dedicated to connecting with our West Australian Community through talks, singing workshops and intimate insights into upcoming operas in community groups.

Highlights in 2018 included: • Partnering with the Art Gallery of Western Australia (AGWA) as part of its Corsini Collection program. Working with art curators we developed a series of complimentary singing workshops that explored themes within the exhibition • Working with primary and secondary students in Broome • Connecting with communities including Alliance Francaise, The Italian Consulate and the Multicultural Language Centre to present talks and workshops

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OPERA IN EDUCATION ACT-BELONG-COMMIT OUR OPERA OUR WA 9 workshops for 1760 participants This incursion performance for primary and secondary students takes our audience on an engaging musical journey into the lives of two of our singers. How they began to sing, what led them to opera as an art form, and who their hero’s were growing up and today. This performance features popular operatic works and an opportunity to ask questions .

ACT-BELONG-COMMIT WACE WORKSHOP 1 workshop for 16 secondary students In 2018 West Australian Opera partnered with the University of Western Australia’s Conservatorium of Music to present a workshop that assists year 11 and 12 students in the delivery of the practical performance component of Music ATAR (voice). It addresses performance technique, stylistic interpretation, performance psychology and more. Featuring two West Australian Opera singers and facilitated by Department for Education (Instrumental Music School Services) Head of Voice/Piano.

ACT-BELONG-COMMIT SING OUT LOUD! 18 workshops for 2042 participants Our most popular workshop! This interactive singing workshop has been specially created for primary school students and introduces students and teachers to musical concepts as prescribed within the Western Australian curriculum. Your voice is your own mobile musical instrument and within this incursion we have lots of fun empowering students to use their voice and introduce them to musical concepts such as pitch, dynamics and tempo. In addition to metropolitan primary schools we also took this workshop to Narrogin, Manjimup, Badgingarra and Dandaragan.

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OPERA IN THE COMMUNITY We will engage and inspire West Australians, develop and retain audiences and ensure relevancy West Australian Opera produces and presents opera for and with West Australians through performances, concerts and community events.

WESFARMERS ARTS SINGING CLASSES 35 workshops, 114 Participants Led by Perry Joyce our adult community singing classes welcomed participants into the West Australian Opera studio. Over the course of 8 weeks adult students were introduced to opera works and vocal pedagogy. We were also invited to run a couple of classes in Broome as part of the Shinju Matsuri Festival and in Denmark to coincide with our Opera in the Valley of the Giants performance.

LEARN AT THE LIBRARY 2 Talks, 110 participants Learn at the Library enables engagement with local communities on a deeper level. This one hour program includes an information based talk punctuated by live arias. Topics include Introduction to Opera, Opera in Popular Culture and our popular It’s Opera not Oprah! The talks conclude with an informal Q & A and an opportunity for participants to learn more about the featured artists.

ACT-BELONG-COMMIT OPERA YOUTH NIGHTS 3 Events, 420 Participants NEW in 2018! Our opera youth nights invite like-minded students from years 7 to 12 to join us preperformance for refreshments and a personalised introduction to the opera work on offer. An absolute highlight of these events has been the opportunity for our participants to meet the artists prior to seeing them on stage.

OPERA YOUTH AMBASSADORS 12 Participants Students from years 9 to 12 across Western Australia were invited to apply for our Opera Youth Ambassador program. This year-long series of activities provides an opportunity for passionate classical voice enthusiasts to discover the multiple layers of presenting an opera through exposure to performance, classes and more. e general public into its home to assist with subscription bookings and talk about the next annual season of work.

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OPERA IN THE COMMUNITY OPERA IN THE REGIONS presented by Act-Belong-Commit 2 performances, 1800 participants This event series was made possible with support from Principal Partner Wesfarmers Arts, Healthway with the message Act-Belong-Commit, Minderoo Foundation, Department of Biodiversity, Conservation and Attractions, Department of Parks and Wildlife Services, The Great Southern Development Commission and the Shire of Dandaragan.

Each concert was presented in an iconic venue in Western Australia: • Opera in The Pinnacles (Cervantes) • Opera in the Valley of the Giants (Walpole) Opening with a traditional Welcome to Country. This concert series has been warmly received by all who attend and participate. A highlight for the company has been the integration between community volunteers, performers, production and management.

“That was AMAZING! What an unforgettable night! Incredible setting, excellent selection of songs, so entertaining and engaging... and the weather couldn't have been better! Thank you so very very much!”

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AUDIENCE SUMMARY West Australian Opera reached over 50,000 people 11,000 – People attended the mainstage opera at His Majesty’s Theatre 10,000 – People attended or viewed City of Perth Opera in the Park 5,617 – People participated in community and outreach programs 5,000 – People enjoyed a West Australian Opera costume exhibit (The Cunning Little Vixen and Don Giovanni) 3,000 – Children participating in The Cunning Little Vixen School Holiday Activities 1,800 – Attended an Opera in the Regions event 1,500 – People attended Opera in the Quarry for 3 sold out concert performances

Opera in the Park Carmen Opera in the Regions

The Cunning Little Vixen Don Giovanni Opera in the Quarry

6%

7%

41%

17%

17% 12%

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BOARD Corporate Governance Throughout the year the Board maintained a proactive role in risk management and corporate decision-making processes.

The Board offered a range of expertise in the disciplines of finance, legal, sponsorship, marketing and business management.

The Board met on a regular basis throughout the year. In addition to board meetings, the Chairman met with the Executive Director on a regular basis.

A package is prepared for the Board by the Executive Director for distribution one week prior to each meeting. This package includes the board agenda, minutes from the previous meeting, a summary of resolutions and actions from the previous meeting, financial papers, written reports, copies of key correspondence, contracts and media. The Minute Register is held in the company’s offices.

The Board monitored the company’s finances at the Finance Committee and at board meetings and the Financial Consultant reviewed finances throughout the year.

The Board ensured that the company maintained adequate insurance covers including workers compensation, directors’ liabilities, public liability insurance and travel insurances.

The company produced a comprehensive Risk Management Report for Opera in the Park and maintained risk reports on productions.

The Board delegated the day-to-day operation of the company to its Executive Director.

All matters of significance were referred to the Board for discussion, review and decisionmaking at monthly Board meetings and at subcommittee level.

Evolve Leadership was engaged to facilitate a new strategic plan for the period 2019-2021 and this included a review across the company with input from internal and external stakeholders.

The Painted Dog Research was engaged to facilitate qualitative and quantitative market research with attendees and non-attendees.

Policy reviews were undertaken and in particular new risk assessment frameworks were drafted.

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Board Biographies ANDREW PASCOE Chairman (from 5 December 2017) Member Nomination Committee Andrew Pascoe is a partner in the corporate group of Allens in Perth. Andrew specialises in mergers and acquisitions transactions, and major project and infrastructure development. He also practices in the area of equity capital markets, corporate governance, incorporated and unincorporated joint ventures, foreign investment in Australia, private equity transactions, and a range of commercial contracts and transactions.

CATHERINE FERRARI Deputy Chair Board Director (appointed 2005) Chair, Finance and Audit Committee, Member Nomination Committee Ms Ferrari joined Water Corporation in 2004 in the role of General Manager, Communications Group. In 2013 she became General Manager of newly formed Customer and Community Group. She was previously Chief Executive Officer of the Western Australian Symphony Orchestra and Western Australian Director of the Australian Society of Certified Practicing Accountants. Ms Ferrari is also a Board Member of the Energy and Water Ombudsman; Screenwest WA; and a trustee of the Legal Contribution Trust.

JULIAN BURT Board Director (appointed 2014; retired 6 December 2018) Member, Development Committee Julian Burt graduated from Christchurch Grammar School in 1987 and studied at the Royal Agricultural College at Cirencester, England 1991-1992. On return to Australia he worked in the family mineral business, known as the Drillex Group of Companies. He was appointed a Director of the company in 1998. In 2003 he became a Director and part-owner of Metzke Pty Ltd a manufacturer in mineral drilling technology. Julian has extensive experience in governance and community service. He is currently involved in the following Company Directorships since 2003; Director/Owner, MJW Rail Pty Ltd; Director, Margaret Court AO Community Outreach Foundation; Director, WA Opera; Director, Kimberley Foundation Australia; Foundation Member/Director, National Gallery of Australia; Patron, Football (Soccer) Hall of Fame WA; Committee, St George’s Cathedral Foundation for the Arts; Justice of the Peace (WA) and Lay Canon and Member of the Chapter of St George’s Cathedral, Perth.

Julian is currently studying a Bachelor of Arts majoring in history and political science at The University of Western Australia.

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DR INGRID O’BRIEN Board Director (appointed 2010) Chair, Development Committee Ingrid is a Lecturer in the Marketing discipline in the School of Management and Governance at Murdoch University, with a special interest in customer engagement. She also runs her own boutique marketing strategy consultancy. As a specialist in the area of marketing strategy, Ingrid has over 20 years international consulting experience. She has worked in Australia, UK, Europe, USA and China, with a variety of blue-chip companies across a range of sectors such as financial services, resources, not-for-profits, professional services, healthcare, retail, agriculture, government, online marketing and education.

DARREN LEWSEN Board Director (appointed 27 April 2017) Member, Finance and Audit Committee Darren is the Western Region Assurance Leader for Ernst & Young, where he leads a practice comprising 15 partners and 160 employees. Darren is also a member of EY’s Oceania Assurance Leadership Team. With more than 20 years’ experience providing assurance services and advice across a diverse range of industries, Darren is highly regarded in the Perth business community for providing practical and pragmatic solutions to his clients. Darren has led audits, due diligence assignments and advisory engagements for a number of Perth’s largest listed companies.

JAN STEWART Board Director (appointed 29 April 2015) Jan Stewart PSM, BA, MSW. HonDLitt.WAsust, FAIM, GAICD held the position of CEO of Lotterywest from 1992 to December 2014. Prior to that, Jan was the Director of Grants and Community Development at Lotterywest. From February 2016 to September 2016 she was acting General Manager of West Australian Ballet. Jan holds a Bachelor of Arts and a Master’s Degree in Social Work from the University of Western Australia. Jan has held a number of voluntary board positions with a diverse range of organisations, both locally and internationally, for many years. These have included that of Senior Vice President on the Executive Committee of the World Lottery Association for more than eight years. She held the inaugural position of President of the Asia Pacific Lottery Association from 1999 to 2004 and was again a member of the Executive Committee of that organization from 2012-14.

She was a member of the Hale School Board for 12 years and on the board of Save the Children for 5 years. Her current board positions, apart from the West Australian Opera board, are the Perkins Medical Research Institute, St Bartholomew’s House, MercyCare, Country Arts and she is a trustee of the Feilman Foundation. Jan is Chairman of the advisory committee of the University of Western Australia’s Centre for Social Impact, Chairman of the Raine Study Board and member of the University of Western Australia's Sports Advisory Committee. Jan was awarded a Medal for outstanding service to the University of Western Australia in 2004, a Public Service Medal in the Australia Day honours of 2009 and is a graduate of the Australian Institute of Company Directors. In 2016 she was awarded the honorary degree of Doctor of Letters by the University of Western Australia in recognition of her services to the community and to the arts.

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MARIO D’ORAZIO Board Director (appointed 29 April 2015; retired 22 March 2019) Member, Development Committee Since 2011 Mario has been the Managing Director of Channel Seven in Perth. TVW 7 Perth has been Australia’s highest rating and best performing TV station for several years with a strong focus on community engagement, local production and sport. It created the wonderful children's charity, Telethon, in 1968, which has set new standards in philanthropy in WA. Mario has been the trustee of Telethon Trust since 2011. Mario holds a Bachelor of Arts and a Diploma of Education from the University of Western Australia. He is on the board of the board of the WA Academy of Performing Arts at Edith Cowan University. He is also the Chairman of the Perth Public Art Foundation, an organisation that raises funds, creates and promotes public art in the CBD. He was recently appointed Chair of the Contemporary Dance Company of WA, Co3. Mario is also the director of the Australian Institute of Management WA, a highly respected professional educational, research and training institution, and recently stepped down as a director of HealthEngine, a national health-technology company based in Perth.

ANTHONY GIANOTTI Board Director (appointed 1 January 2018) Anthony is the Chief Financial Officer of Wesfarmers Limited. He was appointed to this role in November 2017 following his appointment as Deputy Chief Financial Officer in July 2017. Prior to this, he was Deputy Managing Director of the Industrials division from February 2017 and Finance Director from August 2015. Anthony started with Wesfarmers in 2004, and his other roles include Manager, Investor Relations; Finance Director of Wesfarmers Insurance and Managing Director of Wesfarmers Insurance. Anthony began his career with Ernst & Young in business services and corporate finance and has held senior corporate finance roles advising on mergers and acquisitions and corporate strategy with Hambros Bank and Société Générale in Sydney, London and Melbourne.

Anthony holds a Bachelor of Commerce from Curtin University, a Graduate Diploma in Applied Finance and Investments, is a qualified Chartered Accountant and has completed the Advanced Management Program at Harvard Business School. He is a director of a number of Wesfarmers Group subsidiaries.

CHRISTIAAN HEYNING Board Director (appointed 1 August 2018) Christiaan is a Principal in McKinsey & Company, located in Perth, Australia. He leads the Digital practice for natural resources and heavy industrial sectors in Asia, and the Oil and Gas sector in Australia. He has done extensive work in both Operations and Digital (including AA) in mining. Prior to McKinsey, Christiaan worked for an IT services firm before starting up his own company in eLearning in the late 1990s in Singapore and London. He joined McKinsey in 2003. Christiaan Heyning holds a Master Degree in applied physics with a specialization in Material Science at the University of Groningen and the University of California at Berkeley.

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PRIVATE GIVING Report PRIVATE GIVING PROGRAM

To our donors, thank you to each and every one of you for your important, valued and appreciated contribution.

Art changes lives. Supporting West Australian Opera’s young artists, artistic development, community and education programs can have a lifelong impact.

Giving to support the art forms we love can be a civic virtue, whether through bequests, gifts, donation or sponsorship.

The generosity of each and every supporter enables West Australian Opera to present and develop Australian artists, to reach out into communities, to put opera on the stage and with the power of our offering to enrich the cultural landscape of our State.

Annual giving is the most important way to support the company and underpins our everyday operations. The Private Giving Program enables West Australian Opera to continue to seek ways to shape the company in a sustainable way. It helps to keep opera affordable and accessible to a wide audience.

Donors demonstrate a shared passion for the art form and stretch the way they appreciate opera.

The Program’s key investment areas are: • Distinctive, world’s best performances • Youth and education programs • Community and access projects • Young & emerging artists’ development If you are interested in supporting your state opera company please contact the Development Manager on 08 9278 8902 or visit www.waopera.asn.au.

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PRIVATE GIVING Report PLANNED GIVING PROGRAM Bequests to West Australian Opera are preserved as the legacies of their donors, people with vision who understand the importance of opera to a community. These legacies help us to continue with the presentation of world-class opera and development of young artists. Unless otherwise stipulated, monies received from bequests will be invested and preserved in the Endowment Fund and income earned used to support the company’s key investment areas or specific projects as outlined in the bequest.

ENDOWMENT FUND Becoming an endowment fund supporter is a unique opportunity to partner with West Australian Opera. Endowment fund support represents a meaningful investment in the arts and in the diverse community of Western Australia.

Established in 2008 the Endowment Fund’s purpose is to build capital reserves, which support the company’s ability to present world-class opera productions of the highest calibre with the most talented artists of our time now and for the next generation of artists and individuals.

Bequests, major gifts and capital funds created by individuals will be placed within the Endowment Fund. Income earned enables West Australian Opera to keep opera a live and accessible art form for all West Australians.

FORTESCUE METALS GROUP SHARES In 2011 the company gratefully received a major gift from the Forrest Family. Individual giving in the arts is greatly valued. The support that foundations, trusts and donors offer to arts companies has a significant impact on the ability to plan and deliver initiatives. West Australian Opera wishes to acknowledge and thank Andrew and Nicola Forrest for the generous gift of shares.

This contribution stands as testament to their commitment to a strong and vibrant arts sector in Western Australia. This unique and unprecedented gift is vital to the company’s future and success.

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CAST OF SUPPORTERS West Australian Opera thanks every donor in the Private Giving Program.

LEADERSHIP CIRCLE ($10,000+) Alexandra & Julian Burt Mario D’Orazio Liz & Erich Fraunschiel Warwick Hemsley & Melissa Parke Sam & Leanne Walsh Anonymous (1) PRINCIPAL PATRON ($5,000+) Dr Jack Bendat AM CitWA Catherine Ferrari Dr Patricia Kailis The Robert Kimpton Family Dr Robert Larbalestier Annie and Neil Patrick Dr Peter Simpson OAM Hon J McKechnie Richard Tarala & Lyn Beazley AO Joyce Westrip OAM BENEFACTOR ($2,500+) Neil Archibald & Alan R Dodge AM Eleanor John Max Kay AM CitWA and Norma Kay Francis Landels Dr Bryant Macfie Michael & Helen Tuite Joyce Young

SUPPORTER ($1,000+) Gaysie Atkinson Betty Barker Gay & Robert Branchi Dr Peter & Mrs Rae Breidahl Claire Britten and John McKay Lynne Burford Publicity Mrs Joan Carney Helen Carroll Frank Cooper AO

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Christine Dalla Riva Lorraine Ellard Rosemary Grigg & Peter Flanigan Dr Dennis Hayward Kathryn Hogan & Graham Droppert Ulrich & Gloria Kunzmann Simon Landers Ross & Frances Ledger Patrick Lilburne Richard Noble & Co Celia & Neil Patterson Maria & Robert Radici Bill Reid Kerry Sanderson AC Kim & Keith Spence Yannis Vrodos Dr Chris and Mrs Vimala Whitaker Anonymous (4) FRIEND ($500+) Ian & Kerry Adams Siobhan Beilin Mary Carr Carolyn Chard AM Helen Cook Friends of His Majesty’s Theatre T & E Gerner Dr Rosalind Hampton Ian & Sue Hobson Jock and Jennifer Laurie Megan Lowe Len & Sue Roberts-Smith Thurston Saulsman Diana Warnock and the late Bill Warnock Dr Peter Winterton Anonymous (4)

CAST OF SUPPORTERS TRUSTS AND FOUNDATIONS Bendat Family Foundation James Galvin Family Foundation Stan Perron Charitable Trust Wright Burt Foundation ANDREW AND NICOLA FORREST The generous gift of FMG shares is testament to the Forrest’s commitment to a strong and vibrant arts sector in Western Australia.

We acknowledge the Minderoo Foundation.

YOUNG ARTIST PROGRAM The Bendat Scholarship James Galvin Family Foundation Mr Andrew Mitchell Society of WA Opera Lovers BEL CANTO FUND Thanks to the leadership donors of the Bel Canto Fund YOUNG LEADERS CIRCLE Thank you to Herbert Smith Freehills for their ongoing commitment to this initiative, especially through Yannis Vrodos as the program’s Ambassador. Thank you to the inaugural members of the Young Leaders Circle for their active engagement.

BEQUEST CIRCLE Ailsa West Anita & James Clayton Anonymous (3)

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SPONSORSHIP Report The company is very proud of its partnership with Wesfarmers Arts, Principal Partner.

The contributions made by sponsors, trusts, foundations and supporters is vital to the continued success of West Australian Opera.

Sponsorship plays a critical role in the growth and development of the company and enables the company to present opera of the highest standard and fulfil the aim of making opera an evolving, relevant and valuable art form that can be a source of pride for West Australians.

We are grateful for the support of our Participation Partner Healthway that supports Opera in the Regions and our education and outreach initiatives. We also thank Lotterywest and Civic Partner the City of Perth that enable the signature free outdoor summer event ‘City of Perth Opera in the Park’.

The company is grateful to the ongoing loyalty and commitment of sponsors and partners who generously support the state opera company.

Principal Partner Wesfarmers Arts

Participation Partner Healthway Official Airline Partner Qantas Civic Partner City of Perth

Community Partner Lotterywest Major Partners APN Outdoor Minderoo Foundation

Opera Partners Herbert Smith Freehills KPMG Voyager Estate Painted Dog Research Quest East Perth Atlas Pearls & Perfumes InterContinental Perth City Centre Future Logic Copyworld Toshiba Kreepy Krauly Tertiary Education Partner The University of Western Australia

Government Partners Government of Western Australia Department of Local Government, Sport and Cultural Industries Australian Government through the Australia Council for the Arts

26

THE WESTERN AUSTRALIAN OPERA COMPANY INCORPORATED

Financial Report

For the year ended

31 December 2018

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Directors’ Report Your Directors submit the financial report of The Western Australian Opera Company Incorporated for the year ended 31 December 2018.

1.

Directors during the financial year and until the date of this report: Mr Andrew Pascoe (Chairman) Ms Catherine Ferrari (Deputy Chair) Mr Julian Burt (resigned 4th December 2018) Mr Mario D’Orazio (resigned 22nd March 2019) Mr Anthony Gianotti (appointed 1st January 2018) Mr Warwick Hemsley (resigned 17th April 2018) Mr Christiaan Heyning (appointed 1st August 2018) Mr Darren Lewsen Ms Ingrid O’Brien Ms Jan Stewart

2.

Principal Activities The principal activity of The Western Australian Opera Company Inc in the course of the financial year was the presentation of opera.

3.

Significant Changes No significant change in the nature of these activities occurred during the year.

4.

Operating Result The loss from ordinary activities for the financial year was $167,084 (2017: profit $594,536).

5.

Auditor’s Independence declaration The auditor’s independence declaration under section 60-40 of the Australian Charities and Not For Profit Commission Act 2012 is included in this Annual Report and forms part of the Directors’ Report of The Western Australian Opera Company Inc for the year ended 31 December 2018.

Signed in accordance with a Resolution of the Board.

........................................................................

Andrew Pascoe (Chairman) Dated this 10th day of April 2019 1

........................................................................

Catherine Ferrari (Deputy Chair)

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2018 NOTES

2018 $

2017 $

Revenue

2

1,346,076

1,732,222

Other Income

2

4,311,111

4,881,902

(2,739,322)

(2,929,165)

(16,568)

(15,215)

Other expenses Production sets, costumes and sound Theatre rental and associated costs Other costs of production Administration expenditure Marketing and promotion expenditure Opera Conference contribution

(571,283) (580,840) (363,400) (452,711) (812,095) (288,052)

(476,376) (666,283) (319,421) (453,747) (874,621) (284,760)

Net profit/(loss) attributable to the Association

(167,084)

594,536

Other comprehensive income to be reclassified to profit or loss in subsequent periods Decrease in Investment Revaluation Reserve

(107,852)

(157,871)

Total comprehensive income/(loss) for the year

(274,936)

436,665

Employee expenses Depreciation

The accompanying notes form part of these financial statements

2

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Statement of Financial Position as at 31 December 2018 NOTES

2018 $

2017 $

587,848 1,875,000 99,660 122,282

109,163 2,375,000 112,325 134,994

2,684,790

2,731,482

5 8

950,000 121,409

950,000 130,334

9

654,931

762,783

TOTAL NON-CURRENT ASSETS

1,726,340

1,843,117

TOTAL ASSETS

4,411,130

4,574,599

335,768 84,249

233,871 47,124

420,017

280,995

29,225

56,780

29,225

56,780

449,242

337,775

NET ASSETS

3,961,888

4,236,824

EQUITY Retained profits Reserves

1,474,253 2,487,635

1,641,337 2,595,487

3,961,888

4,236,824

CURRENT ASSETS Cash and cash equivalents Deposits Trade and other receivables Other current assets

3 4 6 7

TOTAL CURRENT ASSETS NON-CURRENT ASSETS Restricted cash deposits Property, plant and equipment Financial asset at fair value through other comprehensive income

CURRENT LIABILITIES Trade and other payables Short-term provisions

10 11

TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-term provisions

11

TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES

12

TOTAL EQUITY

The accompanying notes form part of these financial statements

3

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Statement of Changes In Equity for the year ended 31 December 2018 Retained Profits $ Balance at 1 January 2017 Net profit attributable to the Association Decrease in Investment Revaluation Reserve Addition to Restricted Funds Reserve Addition to Unrestricted Funds Reserve Balance at 31 December 2017

Balance at 1 January 2018 Net loss attributable to the Association Decrease in Investment Revaluation Reserve Balance at 31 December 2018

Restricted Funds Reserve $ (Note 12)

Unrestricted Funds Reserve $ (Note 12)

Investment Revaluation Reserve $ (Note 12)

Total $

1,346,801

850,000

975,000

628,358

3,800,159

594,536

-

-

-

594,536

-

-

-

(157,871)

(157,871)

(100,000)

100,000

-

-

-

200,000

-

-

(200,000)

1,641,337

950,000

1,175,000

470,487

4,236,824

1,641,337

950,000

1,175,000

470,487

4,236,824

(167,084)

-

-

-

(167,084)

-

-

-

(107,852)

(107,852)

1,474,253

950,000

1,175,000

362,635

3,961,888

The accompanying notes form part of these financial statements

4

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Statement of Cash Flows for the year ended 31 December 2018 NOTES

2018 $

2017 $

1,503,255 2,660,066 60,067 1,275,408 112,961 (5,624,228)

1,790,974 2,522,515 91,775 1,806,405 74,898 (5,993,433)

(12,471)

293,134

Cash flows from Investing Activities Payment for property, plant and equipment

(8,844)

(17,195)

Net Cash used in Investing Activities

(8,844)

(17,195)

(21,315)

275,939

3,434,163

3,158,224

3,412,848

3,434,163

Cash flows from Operating Activities * Donations and sponsorship received Grants received Dividends Received Receipts in the course of operations Interest Received Payments to suppliers and employees Net cash (used)/provided by Operating Activities

16(b)

Net (decrease)/increase in cash held Cash at beginning of the financial year Cash at the end of the financial year

16(a)

*Comparative classification has changed with no impact to net cash (used)/provided by Operating Activities.

The accompanying notes form part of these financial statements

5

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 1.

Summary of significant accounting policies

a)

Basis of preparation The Financial Report is a general purpose financial report that has been drawn up in accordance with Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Associations Incorporation Act (WA) 2015.

The financial report covers The Western Australian Opera Company Incorporated as an individual entity. The Western Australian Opera Company Incorporated is an Association incorporated in Western Australia under the Associations Incorporation Act (WA) 2015.

The Western Australian Opera Company Incorporated is a not-for-profit entity. The principal activity of the company in the course of the financial year was the presentation of opera.

The financial report is presented in Australian dollars which is the company’s functional currency.

The financial report is prepared on an accruals basis and is based on historical costs and does not take into account changing money values, or, except where stated, current valuations of non-current assets. Cost is based on the fair values of consideration given in exchange for assets. The accounting policies have been consistently applied, unless otherwise stated.

b)

New accounting standards and interpretations In the current year the Association has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for reporting periods beginning 1 January 2018. The adoption of these new and revised Standards and Interpretations did not have any effect on the financial position of the Association.

A number of new standards and amendments to standards are effective for annual reporting periods beginning after 1 January 2018 however the company has decided against early adoption of the following new or amended standards: • • •

AASB 15 Revenue from Contracts with Customers AASB 16 Leases AASB 1058 Income of Not for Profit Entities

The company is yet to determine the impact of these standards.

The following is a summary of the material accounting policies adopted by the Association in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

6

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 c)

Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation.

The carrying amount of plant and equipment is reviewed annually by the Association to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets’ employment and subsequent disposal.

Depreciation The depreciable amounts of all property, plant and equipment are depreciated on a straight line basis over the useful lives of the assets to the Association, commencing from the time the assets are held ready for use.

The depreciation rates used for each class of depreciable assets are: Class of property, plant and equipment Office Equipment, Furniture & Fittings Pianos Music library Sound Shell Production Equipment

Depreciation Rate 10 - 50% 10% 10% 10% 10%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. d)

Employee Benefits (i)Wages, salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to settle within 12 months of the reporting date are recognised in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.

Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable. (ii)Long service leave The liability for long service leave is recognised and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employees, 7

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 Employee Benefits cont. departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows. e)

Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short term highly liquid investments with maturities of three months or less.

f)

Revenue Interest revenue is recognised as interest accrues using the effective interest method.

This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate.

Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

Government grants are initially recognised in the balance sheet as a liability when the grant is received. When the grant relates to an expense item it is recognised as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

Revenue from donations is recognised on receipt.

All revenue is stated net of the amount of goods and services tax (GST).

g)

Goods & Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST) except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). 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 are stated with the amount of GST included. The net amount of GST recoverable from or payable to, the ATO is included as a current asset or liability in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to the ATO are classified as operating cash flows in the statement.

8

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 h)

Income tax The Association is deemed a non-profit organisation for income tax purposes and has tax exempt status under Section 50-45 9.2 of the Income Tax Assessment Act 1997.

i)

Financial Instruments AASB 9 sets out requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. This standard replaces IAS 39 Financial Instruments: Recognition and Measurement. The Association applied AASB 9 from 1 January 2018. The impact of AASB 9 is not material for the company.

Recognition and initial measurement Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the association becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value, plus for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component s initially measured at the transaction price.

Classification and subsequent measurement Financial assets – classification policy applicable from 1 January 2018: On initial recognition, a financial asset is classified as measured at amortised cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL).

Financial assets are not reclassified from their initial recognition unless the association changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

On initial recognition of an equity investment that is not held for trading, the association may irrevocably elect to present subsequent changes in the investment’s fair value through other comprehensive income (FVOCI). This election is made on an investment by investment basis.

All assets not classified as measured at amortised cost or FVOCI, are measured at FVTPL. Financial assets – subsequent measurement policy from 1 January 2018: Financial assets at amortised cost are measured using the effective interest method.

The amortised cost is reduced by impairment losses. Interest income and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

9

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 Financial Instruments (cont) Financial assets at FVTPL are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.

Financial assets at FVOCI are measured at fair value with gains and losses being recognised in other comprehensive income.

Financial assets – classification policy before 1 January 2018: The association classified its financial assets as loans and receivables, held to maturity financial assets or available-for-sale investments.

Financial assets – subsequent measurement policy before 1 January 2018: Held to maturity assets and loans and other receivables were measured at amortised cost using the effective interest rate method.

Available-for-sale financial assets were measured at fair value and changes therein, other than impairment losses, were recognised in other comprehensive income and accumulated in the investment revaluation reserve. When these assets were derecognised, the gain or loss accumulated in equity was reclassified to profit or loss.

Financial liabilities: Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Interest expense and any gain or loss on derecognition is also recognised in profit or loss.

Derecognition Financial assets: The association derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the association neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The association enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.

10

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 Financial Instruments (cont) Financial liabilities: The association derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The association also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.

On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss. j)

Leases Lease payments for operating leases, where substantially all risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

k)

Economic Dependency The Western Australian Opera Company are economically dependent on government funding and corporate sponsorship for the majority of its revenue. At the date of this report the Board of Directors have no reason to believe these parties will not continue to support the company.

11

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018

2

2018 $

2017 $

1,256,849 87,769 1,458 1,346,076

1,644,108 86,325 1,789 1,732,222

1,934,136

1,934,137

REVENUE, OTHER INCOME AND EXPENSES

(a) Revenue Performance income Interest received Members subscriptions Total Revenue (b) Other Income Operating grants - Department of Local Government, Sport & Cultural Industries – Base grant - Department of Local Government, Sport & Cultural Industries – Additional Activity Funding - Department of Local Government, Sport & Cultural Industries – Regional Touring grant - Australia Council – Base grant Sponsorship – Healthway Private and corporate support Dividends Received Sundry income Total Other Income

-

150,000

484,106 200,000 1,619,788 60,067 13,014 4,311,111

198,010 477,421 200,000 1,795,323 91,775 35,236 4,881,902

Total Revenue and other income

5,657,187

6,614,124

16,568 40,000 53,700

15,215 40,450 53,700

(c) Expenses Depreciation of plant and equipment Audit fees Operating lease rental payments

12

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018

3

Effective interest rate

587,848

109,163

587,848

109,163

0.85%

0.89%

1,875,000

2,375,000

1,875,000

2,375,000

2.57%

2.99%

950,000

950,000

950,000

950,000

2.54%

2.56%

2,283 20,000 77,377

10,883 20,000 81,442

99,660

112,325

DEPOSITS Deposits with maturity of more than 3 months

Effective interest rate 5

2017 $

CASH AND CASH EQUIVALENTS Cash at bank and on hand

4

2018 $

RESTRICTED CASH DEPOSIT Restricted cash deposit

Access to cash restricted under terms of the Reserve Incentive Scheme, Bendat Family Foundation Deed of Gift and Bel Canto Fund. Refer Note 12 for more details.

Effective interest rate 6

TRADE AND OTHER RECEIVABLES Trade Debtors Income receivable from Healthway Other receivables

These amounts are non-interest bearing receivables which relate to sundry debtors and accrued interest.

7

OTHER CURRENT ASSETS Prepayments

122,282

13

134,994

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018

8

2018 $

2017 $

103,077 (62,124) 2012 40,953

207,274 (162,027) 2012 45,247

161,449 (83,098) $ 78,351 20,000 1,257 (1,257) -

161,449 (76,362) $ 85,087 92,635 20,000 1,257(1,257) -

Sound Shell – at cost Less accumulated depreciation

13,505 (13,505) -

13,505 (13,505) -

PROPERTY, PLANT AND EQUIPMENT Production equipment – at cost cont.

Less accumulated depreciation

46,606 (44,501) 2,105 121,409-

44,406 (44,406) 130,334 -

PROPERTY, PLANT AND EQUIPMENT Office furniture and equipment – at cost Less accumulated depreciation

Pianos – at cost Less accumulated depreciation

Music Library – at cost Less accumulated depreciation

8

(a) Movements in carrying amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year 2018 Balance at 1 January 2018 Additions Disposals Depreciation Carrying amount at 31 December 2018 2017 Balance at 1 January 2017 Additions Depreciation Carrying amount at 31 December 2017

Office Furniture & Equipment $ 45,247 6,644 (1,201) (9,737) 40,953 Office Furniture & Equipment $ 35,719 17,195 (7,667) 45,247

14

Pianos $ 85,087 -

Production Equipment $

Total

(6,736)

(95)

$ 130,334 8,844 (1,201) (16,568)

78,351

2,105

121,409

Pianos $ 92,635 (7,548) 85,087

2,200

Production Equipment $

Total -

$ 128,354 17,195 (15,215)

-

130,334

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 2018 $

2017 $

762,783 (107,852) 654,931

920,654 (157,871) 762,783

9 FINANCIAL ASSET AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Movement in financial asset at fair value through other comprehensive income Value as at 1 January (Devaluation)/Revaluation increment Value as at 31 December

During the 2011 financial year the Association acquired an investment in listed shares of Fortescue Metals Group (FMG) by donation. The fair value of the shares is determined by reference to published price quotations on the ASX. This asset was previously classified as an available-for-sale investment in 2017.

2018 $

2017 $

143,161 23,551 6,056 20,000 143,000 335,768

70,944 41,073 1,834 20,000 100,020 233,871

10 TRADE AND OTHER PAYABLES Trade Creditors Other Payables Accruals Loan from UWA Income received in advance

The amount of the Loan from UWA is based on an agreed value of a piano on loan to the Association from the University of Western Australia.

11 PROVISIONS Annual Leave $

Long Service Leave $

Opening balance at 1 January 2018 Additional provisions raised during the year Amounts used Balance at 31 December 2018

44,543 50,974 (47,155) 48,362

59,361 8,074 (2,323) 65,112

103,904 59,048 (49,478) 113,474

Opening balance at 1 January 2017 Additional provisions raised during the year Amounts used Balance at 31 December 2017

59,738 55,102 (70,297) 44,543

46,967 12,394 59,361

106,705 67,496 (70,297) 103,904

15

TOTAL $

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 11 PROVISIONS cont.

Annual Leave Current Long Service Leave Total Current Provisions

2018 $ 48,362 35,887 84,249

2017 $ 44,543 2,581 47,124

Non-Current Long Service Leave Total Non-Current Provisions

29,225 29,225

56,780 56,780

113,474

103,904

Total Provisions

A provision has been recognised for employee entitlements relating to annual and long service leave for employees. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been included in Note 1.

The current provision for long service leave represents the value of employee entitlements expected to be paid within the next year.

12 RESERVES Restricted Funds Reserves are comprised of: (1) Reserve Incentive Scheme Agreement – This $300,000 (2017: $300,000) reserve is established with contributions received from the Australia Council through the Major Performing Arts Board ($100,000), Department of Local Government, Sport & Cultural Industries ($100,000) and the transfer from the Association’s retained profits ($100,000).

These funds are to be held in escrow subject to the terms and conditions of the Reserve Incentive Scheme and have not been used to secure any liabilities of the Association.

(2) Bendat Family Foundation Deed of Gift – This $500,000 (2017: $500,000) reserve has been established for the purpose of establishing the Bendat Scholarship Fund and the Bendat Scholarship Fund no. 2 to assist the Western Australian Opera Company to fund scholarships awarded to talented young artists. These funds are to be held in escrow, with interest earned on the funds to be used to fund scholarships.

(3) Bel Canto Fund Reserve – This $150,000 (2017: $150,000) reserve has been established for the purpose of providing interest earnings to assist the Western Australian Opera Company to develop and nurture talented local artists. These funds are to be held in escrow, with interest earned on the funds to be used to assist local artists.

16

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 12 RESERVES cont.

Unrestricted Funds Reserves are comprised of: (4) Production Loss Reserve – This $500,000 (2017: $500,000) reserve has been established to provide against costs incurred should a production or a number of performances of a production be cancelled due to the unavoidable unavailability of artists or other essential personnel.

(5) Capacity Building Reserve – This $675,000 (2017: $675,000) reserve has been established to provide against additional development costs incurred in the presentation of additional production seasons in future years.

Other Reserves are comprised of: (6) Investment Revaluation Reserve – This $362,635 reserve (2017: $470,487) is used to record increases and decreases in the fair value of financial assets through other comprehensive income.

13 OPERATING LEASE COMMITMENTS Non-cancellable operating leases contracted for but not capitalised in the financial statements.

Payable – minimum lease payments - not later than 12 months - between 12 months and five years

2018 $

2017 $

52,864 79,296

26,850 -

The property lease is a non-cancellable lease with a remaining term of 2 years and 6 months, with rent payable quarterly in advance (2017: remaining term 6 months, rent payable in advance).

14 FORWARD PLANNING COMMITMENTS At 31 December 2018 the Association had committed to financial commitments totalling $666,835 (2017: $929,092) for principal artists, creative team and production team for Opera in the Park in February 2019, Sweeney Todd in July 2019 and Macbeth in October 2019. Payment of this amount is dependent on the productions taking place.

17

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Association’s principal instruments are cash, short term deposits from grants and donations received, accounts receivable and accounts payable.

Risk Exposures and Responses: (a) Interest rate risk The Association’s exposure to interest rate risk arises from assets and liabilities bearing variable interest rates.

At balance date, the Association had the following financial assets and liabilities exposed to variable interest rate risk:

Financial Assets Cash and cash equivalents Total

2018 $

2017 $

489,936 489,936

62,870 62,870

The Association does not enter into any form of hedging instruments to mitigate this risk.

At 31 December 2018, if there was a movement in interest rates and all other variables were held constant, there would have been negligible impact on profit and equity (2017: negligible impact on profit and equity). (b) Credit risk The Association’s maximum exposures to credit risk in relation to each class of recognised financial asset is the carrying amount of those assets as indicated in the Balance Sheet.

There are no long outstanding trade receivables. (c) Foreign exchange risk The Association is not exposed to fluctuations in foreign currencies.

18

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES cont. (d) Liquidity Risk The Association manages liquidity risk by monitoring forecast cash flows. (e) Price risk The Association is not exposed to any material price risk. (f) Fair Values The carrying amount of the Association’s financial assets and financial liabilities approximate their fair value. Therefore fair values are as follows:

Financial Assets Cash and cash equivalents Deposits with maturity of more than 3 months Restricted cash deposits Trade and other receivables Financial assets at fair value through other comprehensive income Financial liabilities Trade and other payables

2018 $

2017 $

587,848 1,875,000 950,000 99,660

109,163 2,375,000 950,000 112,325

654,931

762,783

315,768

213,871

16 CASH FLOW INFORMATION a) Reconciliation of Cash For the purposes of the Cash Flow Statement, cash includes cash at bank and short term deposits at call. Cash as at the end of the financial year is as follows for the purposes of the Statement of Cash Flows: NOTES Cash on hand and at bank Deposits with maturity of more than 3 months Restricted funds

19

3 4 5

2018 $

2017 $

587,848 1,875,000 950,000

109,163 2,375,000 950,000

3,412,848

3,434,163

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 16 CASH FLOW INFORMATION cont. b) Reconciliation of Cash Flows from Operations with Profit from Ordinary Activities Profit/(loss) from Ordinary Activities Add/(less) non-cash income and expense items: Non-cash loss on sale of fixed asset Depreciation Net cash provided/(used) by Operating Activities before change in assets and liabilities

2018 $

2017 $

(167,084)

594,536

1,201 16,568

15,215

(149,315)

609,751

Change in assets and liabilities during the financial year: Decrease/(Increase) in debtors Decrease/(Increase) in other assets Increase/(Decrease) in trade creditors, accruals, grants in advance and other current liabilities Movement in employee benefits provisions

12,665 12,712

100,227 (70,077)

101,897 9,570

(343,966) (2,801)

Net cash provided/(used) by Operating Activities

(12,471)

293,134

c) The Association has no credit stand-by or financing facilities in place.

17 SEGMENT REPORTING For management purposes, the Association is organised into one main operating segment, which involves productions. All of the Association’s activities are interrelated, and discrete financial information is reported to the Board (Chief Operating Decision Makers) as a single segment. Accordingly, all significant operating decisions are based upon analysis of the Association as one segment. The financial results from this segment are equivalent to the financial statements of the Association as a whole.

18 EVENTS SUBSEQUENT TO BALANCE DATE There were no material events occurring after the reporting date that had a financial effect on the Association.

19 RELATED PARTY TRANSACTIONS Directors perform their duties on an honorary basis. No related party transactions occurred during the financial year.

20

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Notes to the financial statements for the year ended 31 December 2018 20 AUDITORS’ REMUNERATION The auditor of The Western Australian Opera Company is KPMG. The audit by KPMG is a donation in-kind.

Value of donation in-kind

2018 $

2017 $

40,000

40,500

21 ASSOCIATION DETAILS The principal place of business of the Association is: The Western Australian Opera Company Incorporated Level 3, His Majesty’s Theatre 825 Hay Street PERTH WA 6000

21

The Western Australian Opera Company Incorporated Financial Report for Year Ended 31 December 2018

Statement by Directors In the opinion of the Board the accompanying accounts as set out on pages 2 to 21: (a)

Represent a true and fair view of the financial position of The Western Australian Opera Company Incorporated as at 31 December 2018 and its performance for the year ended on that date in accordance with the Associations Incorporation Act (WA) 2015 and Australian Accounting Standards (including the Australian Accounting Interpretations) and the Australian Charities and Not For Profit Commission Act 2012.

(b)

At the date of this statement, there are reasonable grounds to believe that The Western Australian Opera Company Incorporated will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the Board and is signed for and on behalf of the Board by:

........................................................................

Andrew Pascoe (Chairman)

Dated this 10th day of April 2019.

22

........................................................................

Catherine Ferrari (Deputy Chair)

Independent Auditor’s Report To the members of The Western Australian Opera Company Incorporated Opinion We have audited the Financial Report of the Western Australian Opera Company Incorporated (the Association).

In our opinion, the accompanying Financial Report of the Association is in accordance with the Division 60 of the Australian Charities and Not-for-profits Commission (ACNC) Act 2012, and the Associations Incorporations Act 2015, including: •

•

Giving a true and fair view of the Association's financial position as at 31 December 2018 and of its financial performance for the year ended on that date; and

The Financial Report comprises: •

Statement of financial 31 December 2018.

position

as

at

•

Statement of profit or loss and other comprehensive income, Statement of changes in equity, and Statement of cash flows for the year then ended.

•

Notes including a summary of significant accounting policies.

•

Directors' declaration.

Complying with Australian Accounting Standards and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 Association in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code.

Other Information Other Information is financial and non-financial information in The Western Australian Opera Company Incorporated’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report.

The Directors are responsible for the Other Information.

Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we 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.

We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

Responsibilities of the Directors for the Financial Report The Directors are responsible for: • Preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the ACNC. • Preparing the Financial Report in accordance with the Associations Incorporations Act 2015.

• Implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

• Assessing the Association's ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Association or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report Our objective is: • 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 Australian Auditing Standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error. They 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 the Financial Report.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit.

We also: i.

ii.

iii. iv.

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

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

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

Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the registered Association’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 Association to cease to continue as a going concern.

v.

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

We communicate with the Directors of the registered Association 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.

A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf.

This description forms part of our Auditor’s Report.

KPMG

Graham Hogg Partner Perth 10 April 2019

Lead Auditor’s Independence Declaration under subdivision 60-C section 60-40 of Australian Charities and Not-forprofits Commission Act 2012 To the directors of The Western Australian Opera Company Incorporated I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 31 December 2018 there have been:

KPMG

i.

no contraventions of the auditor independence requirements as set out in the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and

ii.

no contraventions of any applicable code of professional conduct in relation to the audit.

Graham Hogg Partner Perth 10 April 2019

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

Level 3, His Majesty’s Theatre 825 Hay Street, Perth, WA 6000

PO Box 7052, Cloisters Square Perth, WA 6850 www.waopera.asn.au www.facebook.com/waopera

Principal Partner