2014 ANNUAL REPORT - tso.com.au

MARKO LETONJA’S SEASON 2014

2014ANNUAL REPORT

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CONTENTS

Chair and Managing Director 1

The Year At A Glance 2

The Year In Review 4

Artists 6

Recordings 7

Goals and KPIs 8

Education and Outreach 10

Marketing, Corporate Partnerships

and Philanthropy 12

TSO Patrons 14

TSO Partners 16

TSO Board 18

Governance Report 20

Orchestra and Management 24

TSO Chorus, TSO Friends

and TSO Foundation 25

Annual Financial Report 27

CHAIRIt is my happy duty to report that the Tasmanian Symphony Orchestra finished the year with a small but by no means trivial surplus. Over and above budgets and bottom lines, 2014 was a year of artistic successes, bold undertakings and new initiatives. We increased our audience substantially, deepened our collaborative engagement with MONA, and gave performances in child care centres, libraries and aged care facilities. These community based endeavours are part of the cultural mission of Marko Letonja, Chief Conductor and Artistic Director, whose initial three-year contract with the TSO expired at the end of 2014 but who has signed on for a further three years, to the delight of all.

While box office was robust in 2014 (thank you ticket buyers!), our positive financial result would not have been possible without the assistance of a range of bodies and organisations. We are very grateful for the funding we receive from the Australian Government and the Tasmanian Government, including funding through the Tasmanian Icon program. I would like to thank all of our corporate supporters, particularly Hydro Tasmania, our Principal Partner. Indeed, we were delighted to have played our part in celebrating the Centenary of Hydro in 2014, including a concert in the Hydro village of Tarraleah. I would also like to thank the growing number of individual philanthropists who supported the TSO in 2014.

We welcomed a new member to the Board, Christopher Lawrence. On a sad note, 2014 saw the passing of Peter Underwood, a former Chairman of the TSO (subsequently Chairman Emeritus) and a great friend and supporter of the orchestra. It was fitting that the orchestra and the TSO Chorus contributed to the music for the state funeral for Peter in Hobart’s Federation Concert Hall. Our connection with the Underwood family continues through Peter’s widow, Frances, a long-time member of the TSO Chorus and a passionate advocate for the TSO.

This will be my last report as Chair. Having served nine years on the Board, I am obliged to step down. I am pleased that my tenure ends with the TSO in such robust shape.

MANAGING DIRECTORThe year 2014 will be remembered for full halls and standing ovations. Audiences stood and whooped for the glittering coloratura of Julia Lezhneva at Hobart Baroque, the ethereal strains of In Praise of Darkness, our late-night concert for Dark Mofo, and the brilliance of Ben Folds at Wrest Point. Chief Conductor Marko Letonja showed his mastery of the music of Vienna, the city where he learnt his craft, in programs celebrating its great composers, from Beethoven and Brahms to the Strauss family. As with his memorable performances of contemporary repertoire in Synaesthesia+ at MONA, Marko continues to draw compelling performances from the orchestra.

In 2014 we lost a very great Tasmanian with the passing of Australia’s most internationally recognised composer, Peter Sculthorpe. The world premières of Matthew Hindson’s aleatoric Resonance in Synaesthesia+ and Graeme Koehne’s The Persistence of Memory were dedicated to Peter’s memory. The highlight of our Australian Music Program was the release of the recordings of the complete piano concertos of Malcolm Williamson.

Our good financial result was due not only to strong ticket sales but philanthropic support, corporate sponsorship and other fundraising initiatives. Noteworthy was the contribution of the volunteers from TSO Friends, who sold tickets in our Viennese Raffle from one end of the state to the other. Particular mention should also be made of our growing collaboration with the team at MONA, resulting in performances in MONA FOMA, Dark Mofo and the two-day Synaesthesia+.

During the year we farewelled two long-serving members of the orchestra, Janet Rutherford (Principal Viola) and Donald Bate (Principal Trombone) and, from the management team, Chief Financial Officer, Colin Norris. From administration we also farewelled James Burrows, Kate Gray and Rebecca Ward. We welcomed Tahnee van Herk (Principal Bassoon) and, in administration, Alayne Baker, Jenny Compton, John De Paoli, Fiona McAlpine and Ciara Nicholls.

I would like to thank all members of the orchestra, administration staff, Board, and the wider TSO family for a highly successful season. Finally, I must to thank our outgoing Chair, Pat Leary, for the huge amount of time, energy and enthusiasm she gives to the TSO.

Patricia Leary Nicholas Heyward

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MONA was the site for Synaesthesia+, a two-day festival of music and colour held 16 and 17 August. Works performed included Resonance, a specially commissioned work by Australian composer Matthew Hindson. The weekend’s soloists included Richard Tognetti, Allison Bell and Genevieve Lacey.

As part of 100 Years of Hydro Tasmania, the TSO gave a concert at the historic Hydro village of Tarraleah in the Central Highlands on 8 November. The program included Maria Grenfell’s Tarraleah, which was commissioned for the Hydro centenary.

Vienna’s rich musical heritage was explored in Vienna Alive, a series of five programs performed in the second half of the year. Vienna Alive culminated in A Night in Vienna, gala concerts in Hobart and Launceston in late November conducted by Marko Letonja and featuring soprano soloist Lorina Gore.

The year finished with Ben Folds Live with the TSO at Wrest Point Entertainment Centre on 10 December, one of the TSO’s most successful non-classical concerts ever.

On 15 May musicians from the TSO gave four concerts for patients, staff and volunteers at the Royal Hobart Hospital. These were the TSO’s first hospital concerts.

For the second consecutive year, the TSO participated in Dark Mofo, MONA’s winter festival of music and art. In Praise of Darkness, a concert held at 10pm on 21 June, the winter solstice, featured music by Arvo Pärt, Pe-teris Vasks, Brett Dean and others. The TSO Chorus also performed.

In a world first, the TSO recorded The Complete Piano Concertos of Malcolm Williamson with pianist Piers Lane and conductor Howard Shelley (who appears as co-soloist in the Concerto for Two Pianos). The double CD was released on the Hyperion label in March.

The ovations were long and loud for Russian soprano Julia Lezhneva at Julia Lezhneva with the Tasmanian Symphony Orchestra, the TSO’s contribution to Hobart Baroque. Held in Federation Concert Hall on 30 March, the concert went on to win Best Individual Classical Performance at the 2014 Helpmann Awards.

THE YEAR AT A GLANCE

An 8,000-strong audience attended RACT Symphony under the Stars in City Park, Launceston, on 22 February.

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STATISTICSTOTAL NUMBER OF PERFORMANCES: 76

PAID CONCERTS: 62 (Hobart 35, Regional 9, School 18)

HIRE & COLLABORATIVE CONCERTS: 5

FREE CONCERTS: 9

PAID ATTENDANCES: 36,269 (Hobart 25,382, Regional 3,944, School 6,943)

HIRE & COLLABORATIVE ATTENDANCES: 4,587

FREE AND OTHER ATTENDANCES: 10,683*

TOTAL ATTENDANCES: 51,539

*Attendance was down at RACT Symphony under the Stars in Glenorchy on account of poor weather. The concert was abandoned after interval.

THE YEAR IN REVIEW

HobartLindisfarne Sorell

Launceston

Zeehan

Tarraleah

Bridgewater

Burnie

Glenorchy

George Town

Huonville

Somerset

CONSOLIDATED INCOME 2014

57%

14%

5%

12%

7%

2% 3%

Australian GovernmentTasmanian Government – annual grant

Ticket SalesSponsorship & Donation RevenueInterest IncomeOther Revenue

Tasmanian Government – ICON funding

Employee expensesArtists’ fees and expenses

Symphony Services Int service feeAccommodation expensesTravel expensesOther expenses

Marketing expensesProduction expenses

Depreciation and amortisation

60%

8%

6%

8%

7%

3%4%

2%

2%CONSOLIDATED EXPENDITURE 2014

FINANCIAL KPIs Target Result

Operating margin 1% 1.7%Reserves ratio 20% 35.8%Working capital ratio 2:1 2.1:1

Earned income to grow above percetage of grant income growth

2% 2.2%

FINANCIAL SUMMARY YEAR ENDED 31 DECEMBER 2014Revenue $ %Government funding 8,312,844 75.8%Ticket sales 1,353,937 12.3%

Sponsorships and donations 723,480 6.6%

Other Income 576,561 5.3%Total revenue 10,966,822 100.0%

ExpenditureEmployee expenses 6,504,408 60.3%

Depreciation and amortisation 175,003 1.6%

Other expenses 4,103,591 38.1%Total expenditure 10,783,002 100.0%

Operating results 183,820

TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED

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RECORDINGS

HERZ Piano Concerto No 2 in C minor

HERZ Grande polonaise brillante

HERZ Fantaisie et variations sur la marche

d’“Otello” de Rossini

HERZ Grande fantaisie militaire de l’opéra

“La fille du regiment”

TSO/Howard Shelley

Federation Concert Hall, 27-31 May, Hyperion

KOEHNE Forty Reasons to be Cheerful: Festive

Fanfare

KOEHNE Between Two Worlds (suite from the

ballet 1914)

KOEHNE The Persistence of Memory

KOEHNE Time is a River

TSO/Paul Dean/David Nuttall/Richard Mills

Federation Concert Hall, 29 July-1 August,

ABC Classics

KELLY Elegy for Strings “In Memoriam Rupert Brooke”

TSO/Jun Yi Ma/Johannes Fritzsch

Federation Concert Hall, 10 September, Ian Potter

Foundation/ABC Classics

EDWARDS Fanfares for the City of Hobart

TSO/Brett Kelly

TSO Studio, 11 September, Recording for Hobart

City Council

CD RELEASES

GODARDThe Romantic Piano Concerto – 63TSO/Howard ShelleyHyperion CDA68043

MAHLERMahler, Teddy Tahu RhodesTSO/Teddy Tahu Rhodes/Marko LetonjaABC 481 0484

MOZARTEmma Matthews, Mozart AriasTSO/Emma Matthews/Marko LetonjaABC 481 0776

MOZARTPiano Concerto No 15, K450TSO/Andrea Lam/Nicholas MiltonABC 481 0246

MOZARTPiano Concerto No 27, K453TSO/Andrea Lam/Nicholas MiltonABC 481 0247

WILLIAMSONThe Complete Piano ConcertosTSO/Piers Lane/Howard ShelleyCDA68011/2

VARIOUSMosaic, Australian Guitar ConcertosTSO/Karin Schaupp/Richard Mills/ Benjamin NortheyABC 481 0961

RECORDINGSARTISTS

CONDUCTOR/DIRECTORNathan Aspinall*#

Giordano Bellincampi*Nicholas Buc*Johannes FritzschRichard GillOliver Gooch*Andrew GramsBrett KellyMarko LetonjaNicholas McGegan*Andrew MogreliaGuy NobleBenjamin NortheyHoward ShelleyGreg Stephens*#

Marc TaddeiAnu Tali*June TyzackGary Wain#

Elizabeth Wallfisch*

PIANOCaroline AlmonteAlexander GavrylyukJennifer Marten-SmithHoang PhamAlex Raineri*†

Howard Shelley

VIOLINZoe Freisberg*†

Alina Ibragimova*Ji Won KimElinor LeaJun Yi MaKaterina NazarovaRichard TognettiElizabeth Wallfisch*

CELLOAlban GerhardtSue-Ellen PaulsenTorleif Thedéen*Raphael Wallfisch

FLUTEDouglas Mackie

OBOEDavid Nuttall

CLARINETMichael CollinsGenevieve Stather‡

HORNKara Hahn*†

TRUMPETJames Morrison

RECORDERGenevieve Lacey

HARPAlice Giles

PIANO/VOCALSBen Folds*

VOICECheryl BarkerHenry ChooAndrew CollisJane EdwardsLorina GoreDeborah HumbleHetty Kate*Jaewoo KimJulia Lezhneva*Emma MatthewsKatie NoonanNatascha Petrinsky*Jacqueline PorterChristopher Richardson*Sally-Anne RussellSiobhan StaggTeddy Tahu Rhodes

COMPERE/PRESENTERAndrew Casey*Allison Farrow*Ryk GoddardMelanie King*Christopher LawrenceJane LonghurstJohn Xintavelonis

*TSO debut in 2014# Mini TSO or Outreach concert

† ANAM Concerto Competition finalist

‡Rising Star soloist

Marko Letonja Anu Tali

Alina Ibragimova Raphael Wallfisch

Lorina GoreNicholas McGegan

Katie Noonan Ben Folds

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used for concerts in Launceston, Burnie, Zeehan and Tarraleah.

A refurbished Steinway & Sons concert grand was installed in Albert Hall in Launceston, alleviating the need to haul a piano from Hobart to Launceston for concerts in that particular venue. When not in use, the piano is housed in a climate controlled box in the wings of the stage.

4. TO BE WELL MANAGED AND FINANCIALLY STABLE.

RESERVES RATIO EXCEEDS 20% OF COSTS.Reserves ratio 39.5%.

WORKING CAPITAL RATIO 2:1.Working capital ratio 2.1:1.

OPERATING MARGIN GREATER THAN 1%.Operating margin 1.7%.

EARNED INCOME TO GROW BY AT LEAST 2% ABOVE PERCENTAGE OF GRANT INCOME.Earned income grew by 17.0%.

5. TO HAVE A POSITIVE WORKPLACE CULTURE.

IMPROVED RATINGS IN BIANNUAL WHOLE OF COMPANY SURVEY.

The biannual survey was not conducted in 2014. The last Whole of Company survey took place in 2012. As a result of that particular survey, a consultant continued to work with all levels of the organisation in 2014 to assist with improving workplace culture and leadership skills.

felt across all areas of the orchestra’s activities (notably in School and Family Classics concerts) and throughout the state. The TSO also made significant gains in reaching non-traditional audiences through the AccessTix program, hospital concerts, and performances in libraries, child care centres and aged care facilities.

HIGH LEVEL OF AWARENESS IN ANNUAL SURVEY.

The survey by Enterprise Marketing and Research Services, which was conducted in January 2014, revealed that 95% of Tasmanians were aware of the TSO and 91% considered the TSO to be a source of pride. Conducted as a telephone poll, the questionnaire canvassed a sample group of 600 adults from across Tasmania.

3. TO BE CONTINUALLY STRIVING FOR EXCELLENCE IN PERFORMANCE.

IMPROVED RATINGS FROM PEER PANEL.

Three Hobart Master Series concerts were Peer Panel reviewed in 2014. The average score was 8.89/10 (the 2013 average was 8.425/10).

ONGOING PROGRAM OF VENUE ACOUSTIC IMPROVEMENT AND ORCHESTRAL EQUIPMENT/MUSICAL INSTRUMENT UPGRADES.

Acoustic improvements were made to Federation Concert Hall and the TSO Studio. In the former, baffles were installed to reduce reverberation and assist with a crisper and cleaner sound for musicians and audience members alike. In the latter, improvements were begun to enable the musicians to hear more clearly across the full orchestra.

Portable orchestra risers, built to OH&S standards, were purchased for touring purposes and were

in March 2014. Other works by Australian composers performed in 2014 included Katy Abbott’s The Peasant Prince, Brett Dean’s Carlo, and Pastorale by the late Peter Sculthorpe. The great majority of these works were recorded for broadcast by ABC Classic FM.

A second CD of music by Graeme Koehne (for a full list of works, see Recordings on page 7) was recorded for release in 2015. Other Australian works recorded in 2014 were Elegy for Strings “In Memoriam Rupert Brooke” by Frederick Septimus Kelly and Fanfares for the City of Hobart by Ricky Edwards.

The complete piano concertos of Australian composer Malcolm Williamson (1931-2003) with conductor Howard Shelley, pianist Piers Lane and the TSO were released on the Hyperion label in March. This unique recording received wide press coverage. It was described as “a valuable new collection” by the BBC Music Magazine and was praised by Gramophone magazine: “Whether dazzling or reflective, he [Piers Lane] shows a total empathy for Williamson. He is superbly partnered by Shelley and the Tasmanian Symphony Orchestra.”

The annual Symphony Australia TSO Composers’ School was held in Hobart between 30 June and 4 July. Four emerging composers and three observers joined program director Andrew Schultz and James Ledger.

2. THAT TASMANIANS HAVE A STRONG SENSE OF OWNERSHIP OF THE TSO.

INCREASING TASMANIAN AUDIENCE.

In 2014 paid attendances totalled 36,269, an increase of 34% on 2013 attendances. The substantial increase in paid attendances was

1. TO BE RECOGNISED NATIONALLY AND INTERNATIONALLY AS ONE OF THE WORLD’S GREAT SMALL SYMPHONY ORCHESTRAS.

HIGH QUALITY CONCERT SEASON BROADCAST NATIONALLY/STREAMED INTERNATIONALLY.

TSO concerts are broadcast and streamed throughout Australia and around the world by ABC Classic FM. In 2014, 25 TSO concerts were recorded by ABC Classic FM and a further 34 (some of which were recorded before 2014) were transmitted either in whole or in part, including four live broadcasts.

IMPROVED RATINGS IN INTERNATIONAL BENCHMARKING.

The TSO is no longer engaged in international benchmarking but continues to work cooperatively with five international orchestras of similar size and/or niche: Lahti Symphony Orchestra (Finland), St Paul Chamber Orchestra (USA), Scottish Chamber Orchestra (UK), Swedish Chamber Orchestra (Sweden) and Winnipeg Symphony Orchestra (Canada).

INNOVATIVE AUSTRALIAN MUSIC PROGRAM DELIVERED NATIONALLY.

Premières of new works by Australian composers in 2014 were Tarraleah by Maria Grenfell (commissioned by the TSO), Resonance by Matthew Hindson (TSO commission), The Persistence of Memory by Graeme Koehne, Impromptu, after Schubert by Richard Mills (TSO commission) and Julian Yu’s orchestration of Alban Berg’s Piano Sonata. Although not a new work, Wild Swans – Suite (2004) by Elena Kats Chernin was given its first performance at a Matinee Series concert

GOALS AND KPIs

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For the first time, the TSO gave performances for patients, staff and volunteers at the Royal Hobart Hospital (RHH) in May (these concerts formed part of the AccessTix program supported by Hydro Tasmania). TSO musicians and members of the TSO Chorus returned to the RHH in December for two sing-a-long Christmas carol concerts.

Musicians from the TSO also volunteered their time and skills to perform in libraries, child care facilities, aged care facilities and schools throughout the state (the school appearances were in addition to “Concerts & Programs for Schools” outlined above).

Two TSO guest artists appeared at community events in 2014. Cellist Alban Gerhardt gave a “pop-up” concert in Northgate Shopping Centre in the Hobart suburb of Glenorchy and pianist Bernd Glemser gave an afternoon recital followed by a Q & A session at The Friends’ School that was open to all.

The TSO lends its support to schools, community clubs, charities, eisteddfods and other organisations by donating concert tickets for prizes and fundraising initiatives. In addition, the orchestra makes its facilities available to players for private lessons, and loans instruments and equipment to a range of music groups in the community.

Schultz, Professor of Music at the University of New South Wales, who was assisted by Perth-based composer James Ledger. The conductor for the week was Hamish McKeich.

COLLABORATIONSThirty-one musicians from the Australian Youth Orchestra joined the TSO for four days of rehearsals leading to a performance in Hobart on 29 August of Mahler’s Symphony No 5, among other works, under conductor Marko Letonja.

For the fourth year running, the TSO hosted the final stage of the Australian National Academy of Music Concerto Competition. Three ANAM students performed concertos with the TSO conducted by Marc Taddei.

ACCESSTIXLaunched in 2009, Accesstix offers free TSO concert tickets to Tasmanians who are experiencing disadvantage, where “disadvantage” is taken to mean physical and/or intellectual disability, economic disadvantage, social isolation and mental illness. Thirty-three organisations participated in AccessTix in 2014 resulting in a total of 1005 concert experiences, the highest number since the program was founded.

While the majority of concert attendances were in Hobart (773), AccessTix patrons also enjoyed TSO concerts in Launceston (193) and Burnie (39).

AccessTix is made possible through the generosity of Hydro Tasmania, Principal Partner of the Tasmanian Symphony Orchestra.

OUTREACHIn addition to reaching out to disadvantaged Tasmanians through the AccessTix program, the TSO endeavours to connect with non-traditional audiences through a variety of means.

The TSO nurtures gifted young musicians through the Rising Star competition and the Student Composition Competition. In 2014, the former was won by clarinettist Genevieve Stather, a Year 12 student at Elizabeth College. Genevieve appeared as a soloist at Little Red Riding Hood, a Family Classics concert on 16 October. The Student Composition Competition was won by Saxon Hornett, a Year 11 student at The Friends’ School.

Another program for young musicians was Big Rehearsal, a one-day event for members of the Tasmanian Youth Orchestra. Held on 20 September and conducted by renowned music educator Richard Gill, Big Rehearsal attracted 31 musicians from the TYO, making up an orchestra of 76 players.

TRAINING

The TSO hosted two blocks of the Symphony Services International Conductor Development Program, one in January, the other in October. The former was led by Christopher Seaman, the latter by Johannes Fritzsch. The 11 conductors-in-training were drawn from Australia, Great Britain, Italy, New Zealand and Switzerland.

Over a five-day period in late June and early July, four emerging composers and three observers joined tutors in Hobart for the annual Symphony Australia TSO Composers’ School. Leading the instructional team was program director Andrew

CONCERTS & PROGRAMS FOR SCHOOLSThe Tasmanian Symphony Orchestra catered to children of all ages in 2014 including, for the first time, babes-in-arms and pre-schoolers at Mini TSO for Kids, eight performances held in the TSO Studio. Additionally, Mini TSO gave 14 concerts throughout the state, from Huonville in the south to George Town in the north to Somerset in the north-west.

The full orchestra gave four Education Concerts in Federation Concert Hall which attracted students from the greater Hobart region. In addition to concerts, the TSO welcomed students of all ages to 13 Open Rehearsals held in Federation Concert Hall and the TSO Studio.

EDUCATION AND OUTREACH

Robin Brawley explains the double bass to school students.

Mino TSO for Kids.

Johannes Fritzsch offers advice to trainee conductors Natalia Raspopova and Michael Keen.

Royal Hobart Hospital patient Ian Middleton and Edwina George.

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TSO Patrons are automatically admitted to the Conductor’s Circle. Special events for members of the Conductor’s Circle in 2014 included behind-the-scenes functions with Piers Lane, Graeme Koehne and Richard Mills, and the launch of the refurbished Steinway & Sons concert grand piano in Albert Hall in Launceston.

The TSO’s major fundraising event for the year was the Viennese Ball, which was held at Wrest Point on 13 September. The Viennese Raffle was launched on the night, the prize being a luxury 12-day Austrian holiday courtesy of Emirates Airline and the Austrian National Tourist Office. The Viennese Ball was also supported by the following businesses: Blue Illusion, Display Works, Foot & Playsted, The Good Guys Moonah, Hobart Autohaus BMW, Home Hill Wines, Kelvedon Estate, Lake Barrington Vineyard, Laurel Bank Vineyard, Lime Design, Milton Vineyard, MONA, Pilgrim Coffee, RACT Travel, Sugarloaf Ridge Wines and Wrest Point. Individual support came from The Hon Elise Archer MP, Kate Berger, Gemma Black, Alice Bowman-Shaw, Tom Samek and Michelle Warren.

The TSO would like to thank the volunteers who helped organise and manage TSO special events in 2014: Kate Berger, Janet Bilson, Gemma Black, Jane Boyle, Lucy Carrig Jones, Joan Green, Tara Kelly, Caryl McQuestin and Michelle Warren.

Longstanding partnerships also thrived, with special performances at Tarraleah Power Station, in celebration of the centenary of Hydro Tasmania, and at the opening of Premier Partner Southern Cross Austereo’s new Hobart premises.

The TSO also appreciated the continued support of its Premier Partner the RACT; Major Partners Hobart Autohaus BMW and Launceston BMW, and MONA; Leadership Partners Clemenger Tasmania, Font PR and Launceston City Council; Partners Glenorchy City Council, Hellyers Road Distillery, Hobart City Council, Page Seager Lawyers, The Old Woolstore and Wrest Point; and Wine Partners Home Hill Wines, Kelvedon Estate, Lake Barrington Vineyard, Laurel Bank Vineyard, Milton Vineyard and Sugarloaf Ridge Wines.

PHILANTHROPY & SPECIAL EVENTSCorporate and individual donations to the Tasmanian Symphony Orchestra totalled $304,602 in 2014, a record sum. This figure included $29,575 from TSO Friends, $14,575 of which was raised from the sale of tickets in the Viennese Raffle. Also included in the total figure is a donation of $25,421 from the TSO Foundation Trust, a trust which manages an endowment fund established to guarantee the long-term financial security of the orchestra.

The TSO’s Patrons program welcomed Janet Holmes à Court as a Chair Patron in 2014, bringing the total number of Chair Patrons to 25. Chair Patrons make an annual donation to the orchestra of $5,000 or more. The TSO was delighted to welcome 13 new Patrons in 2014. Patrons make an annual donation of $1,000 or more. A full list of TSO Patrons, including top tier Impresario Patrons and Maestro Patrons, appears overleaf.

AccessTix program, which Hydro has sponsored since 2011.

Bell Bay Aluminium sponsored a schools and community concert in George Town, at which the audience performed alongside the Mini TSO on percussion instruments made from recycled aluminium. And more than 400 entries were received from across the state in the My Story in Pictures and Words competition, which was supported by Major Partner Betta Milk. This competition invited primary school students to write and illustrate a true story about themselves or their family. It was run in conjunction with the Betta Milk Family Classics concert The Peasant Prince, which told the true story of Mao’s last dancer, Li Cunxin.

The orchestra continued to attract new corporate supporters. Early in the year, the Box Office at Federation Concert Hall was refurbished courtesy of a new partnership with Hardlam Tasmanian Laminated Hardwood, a sustainable value-added product made from Tasmanian native forest timbers. Meanwhile, Emirates Airline and new partner the Austrian National Tourist Office teamed up to support the TSO fundraising raffle, putting together an Austrian holiday package inspired by the Vienna Alive concert series.

MARKETINGThe TSO was buoyed by an upsurge in subscriber numbers in 2014. There were 24.9% more subscribers in 2014 than in 2013. Subscription revenue totalled $578,177, the TSO’s highest ever subscription sales figure. This substantial increase can be attributed to an attractive artistic program and a distinctive marketing campaign, which for the first time included outbound telemarketing.

The TSO’s long-term “Live it Live” marketing theme continued in 2014 and embraced as a subtheme “Vienna Alive” for a series of concerts which focused on Viennese repertoire.

Social media was utilised extensively in 2014. The TSO’s 5,000 Facebook friends were actively engaged in promoting the TSO brand and building awareness around concerts.

The Live It Live Student Pass, a special ticket offer to full-time secondary and tertiary students, entered its third year in 2014 with strong and active participation from Tasmanian students. This program continued to bring a young and enthusiastic audience to TSO concerts.

TSO brand awareness remained extremely high in 2014 as revealed in the Community Survey prepared by Enterprise Marketing and Research Services. The survey revealed that 95% of Tasmanians were “aware” of the TSO and 91% considered the TSO to be “a source of pride”.

CORPORATE PARTNERSHIPSThe TSO’s corporate partnerships were strongly focused on community engagement in 2014. Thanks to the support of Principal Partner Hydro Tasmania, an ensemble of musicians from the orchestra was able to perform in the newly opened Cancer Support Area of the Royal Hobart Hospital, extending the reach of the very successful

MARKETING, CORPORATE PARTNERSHIPS & PHILANTHROPY

Grant Taylor, Diane Truskett, Astrid Mulholland from the Austrian National Tourist Office, Muriel Morillon, Carol Samuelson and Keith Anderson.

Kate Hickey of Hydro Tasmania, Mark Bain, Jo Morris of Hydro Tasmania, David Robins, Vicky James of Tasmanian Health Organisation - South, Nicholas Heyward, Greg Stephens and Andrew Catchpole of Hydro Tasmania.

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Dr Don Hempton and Mrs Jasmine Hempton

Peter and Jeanne Hepburn

Nicholas Heyward and Allanah Dopson

Colin Jackson OAM and

Mrs Dianne Jackson

Darrell Jones and James Mainwaring

Veronica Keach

The late Doone Kennedy AO

Colin Kent and Deanne Cooper

Judith Ker-Stout

Linda and Martin Luther

David McEwan AM and

Mrs Jennifer McEwan

Alex McLaren and Netta McLaren

Caryl McQuestin

Macquarie Accounting

Katherine Marsden

Senator Christine Milne

Muriel Morillon and Michael Allott

Leon and Susan Morrell

Jill Mure

Simon Overland and Barbara Hingston

Kim Paterson and Helen Preston

John and Marilyn Pugsley

Jan and Alan Rees

Patricia H Reid

Mr and Mrs S Roberts

Kay Rodda

Brian Shearer

Dr Tony Sprent AM

Tony Stacey AM and

Mrs Jeanette Stacey

Dr Jane Tolman

Alan Trethewey and Jean Trethewey

OAM

Philip and Frances Tyrell

Frances Underwood

John Upcher

Catherine Walker PSM and

John Cauchi SC

Michelle Warren

Hugh Wells

Michael Wilkinson

Geoff and Vicki Willis

J Zimmerman

Anonymous x 10

The TSO would also like to thank and acknowledge over 300 donors who gave amounts up to $1,000 to the TSO Fund in 2014.

TSO PATRONS

TSO IMPRESARIO PATRONSGIFTS OF $50,000+John and Marilyn CanterfordMike and Carole Ralston

TSO MAESTRO PATRONSGIFTS OF $20,000+Patricia LearyDr John Roberts and Mrs Barbara Roberts

TSO CHAIR PATRONS $5,000 OR MORE ANNUAL DONATIONCHIEF CONDUCTOR AND ARTISTIC DIRECTOR Anonymous

CONCERTMASTER Mike and Carole Ralston

ASSOCIATE CONCERTMASTER R H O’Connor

PRINCIPAL SECOND VIOLIN Dr Joanna de Burgh

PRINCIPAL FIRST VIOLIN Lisa Roberts

TUTTI VIOLIN Janet Holmes à Court

TUTTI VIOLIN Bruce Neill and Penny Clive

TUTTI VIOLIN Warwick Rule

PRINCIPAL VIOLA John and Jo Strutt

PRINCIPAL CELLO Richard and Gill Ireland

TUTTI CELLO Sue and Ron Wooller

PRINCIPAL DOUBLE BASS Patricia Leary

PRINCIPAL FLUTE Ian Hicks

PRINCIPAL OBOE Professor David Rich and Mrs Glenys Rich

OBOE/COR ANGLAIS Julius and Gabriella Vertessy

PRINCIPAL CLARINET Dr Peter Stanton

CLARINET/BASS CLARINET Tim and Louise Mooney

PRINCIPAL BASSOON Julia Farrell

BASSOON/CONTRABASSOON Alan and Hilary Wallace

PRINCIPAL HORN Mr Kenneth von Bibra

AM and

Mrs Berta von Bibra OAM

PRINCIPAL TROMBONE Andrew Tulloch

PRINCIPAL TIMPANI John and Marilyn Canterford

PRINCIPAL HARP Dr and Mrs Michael Treplin

PRINCIPAL PERCUSSION Helen Rule

CHORUSMASTER Anonymous

TSO PATRONS $1,000 OR MORE ANNUAL DONATION

Yvonne and Keith Adkins

Peter and Ruth Althaus

Warwick and Wendy Ashley

Sylvia Barrett

Jane and Rex Bean

Hans Bosman and Sue Madden

Aileen Buchan

Mrs Dianne Bye

Anne Carmichael

Heather Cartledge

George and Jan Casimaty

Anne Challen and Don Challen AM

Ian Chambers and Kathryn Arneman

Dr Alastair Christie

Peter Cochrane

Stephanie Cooper

The Cretan Family

Dr Louise Crossley

Dr David Davey and Dr Annick Ansselin

John Dickens and Dr Ian Payne

Professor David Elliott

The late Mr Hansjuergen Enz

Garry Forward and Penney Furmage

Emeritus Prof A R and Dr O F Glenn

Dr Duncan Grant

Joan Green

Rob Greenwell

Patricia Haley

Barbara Harling

Brian and Jacky Hartnett

Dr Geoffrey Haward AM and

Mrs Phyllis Haward Sue Madden, Yvonne and Keith Adkins.

Lisa Roberts, Dr John Roberts and Barbara Roberts.

Dr Louise Crossley and Pat Leary.

Dr Ian Payne.

Anne Carmichael.

16 17

TSO PARTNERS

GOVERNMENT SUPPORT

PREMIER PARTNERS

PRINCIPAL PARTNER

MAJOR PARTNERS

The Tasmanian Symphony Orchestra is assisted by the Australian Government through the Australia Council, its arts funding and advisory body, and the Tasmanian Government through the Minister for the Arts, and the Tasmanian Icon Program.

LEADERSHIP PARTNERS

Launceston BMWHobart Autohaus

MEDIA SUPPORTERS WE ALSO WISH TO THANK

PARTNERS

Foot & Playsted

WINE PARTNERS

18 19

TSO BOARD

PAUL OXLEY was elected to the TSO Board in May 2008. He is a governance professional with management experience in industries including electricity supply and local government. He spent 21 years in the electricity supply industry, mostly in the network sector as company secretary and executive manager with Transend Networks Pty Ltd. He held a leadership role in the company throughout its 16-year life until a merger in July 2014. Paul has a Licentiate of Music from the Australian Music Examination Board and was the inaugural Chorusmaster when the TSO Chorus was established in 1992. He holds an MBA from the University of Tasmania, a Bachelor of Letters from Deakin University and a Diploma in Corporate Management. He is a chartered secretary, a Fellow of the Governance Institute of Australia and a Graduate of the Australian Institute of Company Directors.

MARIA GRENFELL was elected to the TSO Board in May 2009. She holds a Doctor of Musical Arts from the University of Southern California, an MA from the Eastman School of Music and an MMus from the University of Canterbury in New Zealand. She is Senior Lecturer and Co-ordinator of Classical Music at the Conservatorium of Music at the University of Tasmania where she has been a lecturer since 1998. A represented composer at the Australian Music Centre and SouNZ Centre for New Zealand Music, her music has been commissioned, performed and recorded by symphony orchestras and chamber groups in Australia, New Zealand and the USA.

DONALD CHALLEN AM was appointed to the TSO Board in November 2010. Secretary with the Department of Treasury and Finance between 1993 and 2010, he is Chairman of the Tasmanian Public Finance Corporation, Chairman of the Motor Accidents Insurance Board, a Director of TasNetworks Pty Ltd and a Trustee Director of the Retirement Benefits Fund. Former roles include Chairman of Transend Networks Pty Ltd, Director of Hydro Tasmania, Chairman of the Tasmanian Gaming Commission, a Director of Trust Bank and a Member of the Australian Government Financial Reporting Council. He is a Fellow of the Australian Institute of Company Directors, a Fellow of the Institute of Chartered Accountants, a Fellow of CPA Australia and a Fellow of the Institute of Public Administration Australia. He holds a Master of Economics from the University of Tasmania. In the Australia Day 2013 Honours List he was appointed a Member of the Order of Australia "for significant service to economics, and to public administration in Tasmania in the treasury and finance sector."

PETER CRETAN was appointed to the TSO Board in February 2013. A businessman with experience in a variety of industries, he is Managing Director of the Tasmanian Collection Service and Managing Director of the Shoreline Hotel in Howrah. He is a Director of Kriticos Nominees Pty Ltd, a Director of Cradle Mountain Wilderness Village Ptd Ltd and a Director of Plastic Fabrications Pty Ltd. A graduate of the University of Tasmania (Bachelor of Economics), he holds a Licentiate of Music in piano performance from the Australian Music Examinations Board and is a member of the TSO Chorus.

PATRICIA LEARY (Chair) joined the TSO Board in February 2006, was appointed Deputy Chair in December of that year and Chair in 2013. She is Chair of the Northern Territory Police Arbitral Tribunal, Chair of the Tasmanian Police Review Board, Chair of the Red Cross Tasmania Bushfire Appeal 2013 Distribution Committee and Chair of the Centenary of ANZAC Steering Committee. She is a Member of the Australian Institute of Judicial Administration, Member of the Australian Association of Women Judges, National President of Neighbourhood Watch Australasia Inc, Secretary/Vice President of Neighbourhood Watch Tasmania and Acting Chair of Virtuosi Tasmania Inc.

PROFESSOR DAVID RICH (Deputy Chair) was elected to the TSO Board in May 2008 and became Deputy Chair in 2013. Until December 2013 he was Provost of the University of Tasmania. Since retiring from that position, he has continued to work with the University on a part-time basis, primarily leading the planning of celebrations to mark the organisation’s 125th anniversary in 2015. Before moving to Tasmania, he worked at the University of New England in Armidale New South Wales, Macquarie University in Sydney and the University of Exeter in the United Kingdom. He graduated with MA and PhD degrees from the University of Cambridge, and was awarded an honorary DLitt by the University of Tasmania in 2013. With a background as a geographer, he has worked extensively in the field of e-learning. He was a Member of the Board of the Tasmanian Academy from 2009 to 2011, and is currently Chair of the Management Committee of Theatre North in Launceston. He is a Graduate of the Australian Institute of Company Directors. David lives with his wife Glenys in the Tamar Valley near Launceston.

NICHOLAS HEYWARD has been Managing Director of the Tasmanian Symphony Orchestra since October 2001. He holds a Bachelor of Arts (Hons) from the University of Tasmania and worked in management roles in major performing arts organisations in Australia and the United Kingdom before becoming CEO of the Brisbane Biennial International Festival of Music and CEO of the Adelaide Festival of Arts. He is Chairman of Symphony Services International, a Director of Arts Management Tasmania Pty Ltd, a Member of the Theatre Royal Management Board and a Member of the Australian Institute of Company Directors.

JOHN UPCHER was appointed to the TSO Board in September 2007. A former partner of the law firm Dobson, Mitchell & Allport, he has been on the board of a number of Tasmanian arts companies and is a former member of the Tasmanian Arts Advisory Board and former Chairman of the Allport Library and Museum of Fine Arts Management Committee. He is currently Chairman of the Property Agents Board, a member of the Legal Profession Board of Tasmania, a Director of Tasmanian Symphony Orchestra Foundation Ltd, and Deputy Chairman of the Council of the Foundation of the Tasmanian Museum and Art Gallery.

CHRISTOPHER LAWRENCE was appointed to the TSO Board in January 2014. Currently presenter of weekday Mornings on ABC Classic FM, he has long been one of the nation’s best-loved radio personalities with a career in broadcasting that spans more than three decades. His recording work has earned him three ARIA (Australian Record Industry Association) Awards, a Churchill Fellowship, and an International Emmy from the US television industry. He is the mastermind behind the Swoon CD collection, which evolved out of his ABC Classic FM breakfast program and went on to become the highest-selling classical compilations ever released in Australia (more than 500,000 units). He has also written several best-selling books, including Swooning – A Classical Music Guide to Life, Love, Lust and other Follies, and Swing Symphony. In 1999 he was awarded an Honorary Doctorate in Communications from the University of Central Queensland for his career in media.

20 21

GOVERNANCE REPORT

This Governance Report is provided in respect of Tasmanian Symphony Orchestra Holdings Ltd (TSOH) and its 100% owned subsidiary, Tasmanian Symphony Orchestra Pty Ltd (TSO) for the year ended 31 December 2014 (the Group).

TSOH’s Constitution was designed to effect the governance reforms from the Australian Government’s Review of Orchestras. In this regard we are pleased to report that the membership base for TSOH at the end of 2014 was 327 members. TSOH held its Annual General Meeting in May 2014 at which the Members were provided with reports from the Chair and the Managing Director.

During 2014 the Board’s oversight of the TSO met or exceeded the "Essential governance practices for arts organisations", as referred to in the 2012-14 Tripartite Funding Agreement. The following demonstrates the TSO’s compliance with the eight Principles.

1. LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT

A formal Charter for the Board was adopted in 2009. The Charter clearly articulates authority delegated to management for delivering the required outcomes of the strategic direction determined by the Board. Further, it provides the delegation of authority to the following Board Committees:

• Audit and Risk Committee

• Nomination and Remuneration Committee

• Key Artistic Advisory Committee

The roles of the Chair, Managing Director and Company Secretary are all formally recorded in the Charter. The Charter also specifies that the ultimate responsibility for approval of corporate strategies and objectives, budgets, plans and policies developed by management is that of the

Board. The Board develops an annual schedule and management brings the major strategic, business and policy matters to the Board in an orderly way.

Early in the year the Board approves the artistic program for the ensuing year subject to subsequent budgeting which must normally be a surplus budget. The Board considers and approves an amended program in light of management recommendations once the budgeting process has been completed.

The annual calendar of meetings also includes a specific planning day set aside for strategic planning discussion.

The Board receives monthly financial reports with management commentary on variations from the budget.

Induction for any new directors includes provision of relevant company documentation and an in-depth briefing on major operational, structural and financial aspects of the Group from the Chair, Managing Director and Company Secretary.

All administrative employees have formal position descriptions and letters of appointment which clearly set out conditions of employment, including required outcomes. Administrative employees undergo an annual performance appraisal by their immediate manager, which is in turn reviewed and approved by the Managing Director. The annual reviews of the Managing Director, Artistic Director and Concertmaster are undertaken by the Chair in consultation with Board members and reported back to the Board.

The Board has in place a succession plan for the Chief Executive Officer position by appointing a Deputy Chief Executive Officer.

The Board has ensured, through its own reservation of authority, its delegation of authority, together with the imposed limits in respect of those delegations, that no individual has unfettered powers.

The Board has established the following Committees to provide closer attention to key areas of governance:

• Audit and Risk Committee TSOH

• Nomination and Remuneration TSOH & TSO Committee

• Key Artistic Advisory Committee TSO

The Board conducts occasional reviews of its own performance and that of its Committees.

3. PROMOTE ETHICAL AND RESPONSIBLE DECISION MAKING

Independence of Directors is considered to be of vital importance.

Disclosure of interest and potential conflicts of interest are declared and managed appropriately. Where a conflict arises it is declared, the Director will generally not be present for consideration of the matter and, in all cases, will not participate in any decision making in relation to the matter.

The Board actively encourages and demonstrates by its actions that it expects an organisational culture based on high ethical values. During the year the Board did not need to examine any matter in detail with regard to ethical behaviour.

Major decisions of the Board were typically examined over a number of meetings thereby allowing full consideration of the matters relevant to the decision.

The Board encourages "whole of company" information sessions and these encompass a wide range of topics including behaviour within the workplace. Relevant policies and procedures are documented and further progress was made on a Code of Conduct.

2. STRUCTURE THE BOARD TO ADD VALUE

The TSOH Constitution provides for the election of up to six Directors by members. A further three Directors may be appointed by the Board should it consider that an appropriate skill mix and relevant expertise is not otherwise evident. Directors either elected by Members or appointed by the Board are usually initially appointed for a three-year term and able to serve a maximum of nine consecutive years, after which time they must retire. An Annual election process for directors ensures an opportunity to review the composition of the Board.

The TSO Pty Ltd Constitution provides for the appointment and removal of up to eight Directors by its parent, TSOH, and one Director appointed by the Board as the Managing Director.

The Board includes Directors with a broad range of skills and experience including accounting and finance, company secretarial, business, law, and industrial relations. A full list of the Board Directors which includes their qualifications and experience is included in the Annual Report on pages 18-19.

The Nomination and Remuneration Committee regularly reviews the Board’s skills mix.

The responsibilities and authorities of the Board, Chief Executive Officer and Company Secretary not otherwise contained within the Corporations Act 2001 are clearly stated in the Delegations Manual.

The Chair is elected by the Board and is responsible for the efficient and effective functioning of the Board, including, but not limited to the discussion and determination of the strategic direction of the Group and ultimately the production of the Strategic Business Plan.

22 23

GOVERNANCE REPORT

attesting that the company’s Financial Statements present a true and fair view of the company’s current financial position and are in accordance with relevant legislative requirements and accounting standards.

The Committee meets at least annually with the external auditor without management present.

The review of financial performance is a regular monthly agenda item for the Board.

6. RECOGNISE THE LEGITIMATE INTERESTS OF STAKEHOLDERS

The Board is charged with ultimate responsibility to ensure that productive working relationships with key TSO Stakeholders are maintained. The day-to-day management of key stakeholder relationships is delegated to the Managing Director and in turn to the senior management team.

The Managing Director and senior management meet regularly with key stakeholders including Commonwealth, State and Local Government, sponsors, audiences, the orchestra itself and those providing professional advice to the TSO.

The Board provides an Annual Report which provides information to the general public on its artistic and financial performance.

An annual survey is also conducted statewide in Tasmania to assess community awareness of the TSO. Feedback and communication are encouraged via social media and via more traditional communication channels.

Management and the Board work to a year planner which is structured to ensure compliance with the legal and reporting requirements of its funding organisations. Additionally, the Company Secretary is delegated with responsibility to ensure the Company complies with all its other statutory requirements.

4. PROMOTE DIVERSITYThe Board actively encourages an organisational culture that embraces diversity and inclusion.

The TSO has a Diversity and Inclusion Policy in draft and expects to approve a final version during 2015. The policy recognises the value of a diverse and skilled workplace and encompasses acceptance, respect and recognition of individual differences.

5. SAFEGUARD INTEGRITY IN FINANCIAL REPORTING

The Audit and Risk Committee has a formal Charter which has been approved by the Board. The Committee has a schedule of regular meetings at which it reviews and considers:

• Financial Statements for the previous year

• Risk Management Report

• Budget for the forthcoming year

• Any other matter that falls within the scope of the Committee including capital expenditure

The Committee comprised directors who would each be regarded as having a high level of accounting and finance skills.

The composition of the committee for 2014 included Donald Challen AM (Chair), Peter Cretan, Patricia Leary and David Rich.

The Managing Director and Business Manager attend Audit and Risk Committee meetings.

Deloitte Touche Tohmatsu was appointed as external auditor from 2011 for a period of three years.

The Committee reviewed statutory and management accounting statements and considered related accounting policy issues. The Managing Director and Business Manager provided the Board with a signed representation letter

8. REMUNERATE FAIRLY AND RESPONSIBLY

An Enterprise Agreement for musicians was agreed during the year and the Agreement for staff will be renewed during 2015.

The Board is conscious of the need to keep remuneration of musicians in broad alignment with other orchestras and remuneration for executives and staff in alignment with industry and community standards so that the Company can recruit and retain, but is mindful of the limited resources of the company.

An ongoing major initiative is the restructuring of the assessment process, which has the objective of remunerating fairly and responsibly.

The Managing Director’s performance is reviewed in detail each year by a special committee of the Chair and the Deputy Chair before an overall review is conducted by the Board.

Non-executive Directors do not receive any remuneration from the company.

Patricia Leary

Chair

15 April 2015

7. RECOGNISE AND MANAGE RISK

The Board reviews and manages risk through its Audit and Risk Committee. It has established a Risk Report and Risk Analysis; the objectives of which are:

• To promote a risk aware culture

• To develop a strategic enterprise risk profile of TSO and to provide a basis to identify relevant priorities and actions to better enable TSO to successfully achieve its objectives

• To provide an overview of existing control effectiveness

• To provide input to the TSO’s planning process

• To involve management and staff in risk ownership and management and to embed risk management

• To provide a basis from which to report regularly to stakeholders on key risk issues

Management prepares draft revisions of the Risk Report and Risk Analysis and these are reviewed twice during the year by both the Audit and Risk Committee and the Board.

The methodology applied is consistent with the Australian/New Zealand Risk Management Standard AS/NZS ISO 31000:2009 and the key elements of that methodology are the consequences and impact parameters.

A Management Representation letter is signed annually prior to the signing of the financial statements. The company’s financial reports present a true and fair view of the company’s financial position and operational result and are in accordance with relevant accounting standards. TSO financial statements are founded on a sound system of risk management and internal controls.

24 25

ORCHESTRA AND MANAGEMENT

VIOLINJun Yi Ma ConcertmasterElinor Levy Associate ConcertmasterLucy Carrig Jones Principal SecondVacancy Principal FirstMiranda CarsonYue-Hong ChaEdwina GeorgeMichael JohnstonChristine LawsonAlison Lazaroff-SomssichSusanna LowMonica NaselowChristopher NicholasRohana O’Malley

VIOLAJanet Rutherford*Katie BettsRodney McDonaldWilliam NewberyAnna Roach

CELLOSue-Ellen Paulsen*Ivan JamesMartin PenickaBrett Rutherford

DOUBLE BASSStuart Thomson*Robin BrawleyVacancy

FLUTEDouglas Mackie*Lloyd Hudson Piccolo

OBOEDavid Nuttall*Dinah Woods Cor Anglais

CLARINETAndrew Seymour*Chris Waller Bass Clarinet

BASSOONTahnee van HerkJohn Panckridge Contrabassoon

HORNWendy Page*Heath Parkinson*Roger JacksonGreg Stephens

TRUMPETYoram Levy*Mark Bain

TROMBONEDavid Robins#

Vacancy

BASS TROMBONERobert Clark*

TUBATimothy Jones*

TIMPANIMatthew Goddard*

PERCUSSION

Gary Wain*

HARPVacancy#

*principal player#guest principal

ORCHESTRA

STAFFMarko Letonja Chief Conductor & Artistic Director

EXECUTIVENicholas Heyward Managing DirectorRebecca Ward (until June) Executive AssistantFiona McAlpine (from May) Executive Assistant

ARTISTIC MANAGEMENTSimon Rogers Manager, Artistic PlanningAlexis Hargrave Artistic and Chorus CoordinatorKate Gray (until June) Education and Training CoordinatorJenny Compton (from September) Outreach and Education Executive

BUSINESS SERVICESColin Norris (until July) Chief Financial Officer and Company SecretaryJohn De Paoli (from July) Business ManagerFiona Bounds (long-service leave, April-October) Senior Business Services OfficerLouise Graham (March-October) Senior Business Services OfficerHayden Jones Business Services OfficerAmanda Elder Payroll Officer

MARKETING AND HUMAN RESOURCESJohn Pugsley Deputy CEO, Marketing and Human ResourcesRobert Gibson Publications EditorJames Burrows (until January) Marketing CoordinatorCiara Nicholls (from March) Marketing CoordinatorGabrielle Lis Corporate Partnerships ExecutiveBrenda Fehlberg Box Office CoordinatorDarrell Jones Assistant Box Office CoordinatorChiara Livingston (until March) Human Resource AdvisorAlayne Baker (from May) Human Resource Manager

EVENTS AND PHILANTHROPYJessica Armson Philanthropy and Special Events Coordinator

ORCHESTRA MANAGEMENTGreg Low Orchestra ManagerJacqui Walkden Orchestra CoordinatorIan Wollstein Technical CoordinatorKatey Sutcliffe (until February) Orchestra LibrarianDavid Harvey (from February) Orchestra LibrarianBrian Harris Production Assistant

TSO FRIENDS COMMITTEEDiane Truskett PresidentMargaret McKerracher Vice PresidentKeith Anderson SecretaryGrant Taylor TreasurerJohn CanterfordCatherine HamiltonMuriel MorillonTina PinkardCarol SamuelsonMike ScottGeoff WalkerJohn Pugsley Management RepresentativeMark Bain Player RepresentativeTotal number of TSO Friends members: 529

TSO FOUNDATION BOARDSusan Williams ChairJohn CanterfordMichael RalstonDick ShoobridgePeter StantonJohn UpcherColin Norris/John De Paoli Company Secretary

SOPRANOStephanie ArnoldMelanie BettsRosina BeaumontAlice Bowman-ShawChristine BoyceKaren CockrillCarmelita CoenRuth CroserMichaela Darlington-BeresfordFelicity GiffordDebra JensenFelicity KohutBernadette LargeLoretta Lohberger Heather McCallumStephanie McDonaldToni MeleseChristine Ovens

Julianne PanckridgeCarolyn PoortenaarAbigail RadfordSharon ShermanYasmin ShoobridgeJoy TattamSusannah Williams

ALTOClaire BlichfeldtSally BrownTerry Choi-Lundberg Beth Coombe Sally CrosbyElizabeth Eden Ann GodberHelena GriggsSue HarradenceClare HawkinsLeigh JabsKirsten Jones

Marie KeaneMary McArthurCaroline MillerJennifer PhillipsEryl RaymondJennifer ThainSally VanceHenni VeitGillian von BertouchBeth WarrenMichelle WarrenSusan Williams

TENORPeter BallBill FieldMichael KregorBill MacDonald Tony Marshall Dianne O’Toole David Pitt

James Powell-DaviesPeter Tattam Andrew Tulloch

BASSJohn BallardDavid BrewerNick CaddickPeter CretanGreg FootPeter HepburnSam HindellDuncan HowStefan KarpiniecPhillip KimberTony ParkerPaul RadfordSteve RaymondDick ShoobridgeAnthony SprentGrant Taylor

TSO CHORUSJune Tyzack ChorusmasterAndrew Bainbridge Assistant Chorusmaster/Répétiteur

TSO CHORUS, TSO FRIENDS & TSO FOUNDATION

26

Directors’ Report 28

Statement of Profit or Loss and Other Comprehensive Income 31

Statement of Financial Position 32

Statement of Changes in Equity 33

Statement of Cash Flows 34

Notes to the Financial Statements 35

Directors’ Declaration 61

Auditor’s Independence Declaration 62

Independent Auditor’s Report 63

TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630)

31 DECEMBER 2014

Matthew Hindson’s Resonance, performed in Synaesthesia+ at MONA.Photo Credit: MONA/Rémi ChauvinImage Courtesy MONA Museum of Old and New Art, Hobart, Tasmania, Australia.

DIRECTORS’ REPORTFor the year ended 31 December 2014


TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630) TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630)28 29

The directors present their report together with the consolidated financial report of Tasmanian Symphony Orchestra Holdings Limited and its subsidiary Tasmanian Symphony Orchestra Pty Ltd (the Orchestra) for the year ended 31 December 2014 and the auditor’s report thereon.

DIRECTORSThe directors, at any time during the financial year ended 31 December 2014 and until the date of this report, are:

Patricia Leary (Chair) director since 22 February 2006

David Rich (Deputy Chair) director since 29 May 2008

Nicholas Heyward (Managing Director) director since 19 November 2001

John Upcher director since 28 September 2007

Paul Oxley director since 29 May 2008

Maria Grenfell director since 9 June 2009

Donald Challen AM director since 1 November 2010

Peter Cretan director since 19 February 2013

Christopher Lawrence director since 1 January 2014

PRINCIPAL ACTIVITIESThe principal activities of the Orchestra during the year ended 31 December 2014 were the performance and recording of orchestral music. There were no significant changes in the nature of the activities of the Orchestra during the year.

REVIEW AND RESULTS OF OPERATIONSThe company gave 78 performances during the twelve months ended 31 December 2014. The concerts held throughout Tasmania were anchored around twelve Master Series concerts in Hobart and six Launceston Series concerts. Collaboration with The Museum of New and Old Art (MONA) continued in 2014 through the MOFO, Dark MOFO and Synaesthesia+ festivals. The company also continued to demonstrate its strong support for the community with Symphony Under the Stars, Regional Touring, hospital performances and a strong outreach, education and training program.

The Company has achieved a good financial result for 2014 of $183,820 profit (2013: $995). Revenue increased by 1.9% from 2013 to $10,966,822 (2013: $10,761,038). This was achieved with a 35% increase in sponsorship and donation income to $723,480 (2013: $535,898) and with very good box office results for concerts in the latter part of the year.

The profit was also achieved with a continued focus on cost control, with operating expenses before depreciation and amortisation of $10,607,999 slightly less than 2013 ($10,614,607).

CHANGES IN STATE OF AFFAIRSIn the opinion of the directors, there were no significant changes in the underlying state of affairs of the company that occurred during the year ended 31 December 2014.

LIKELY DEVELOPMENTSThe company will continue to present performances of music during the next financial year. The company’s continuing success depends on an appropriate level of government funding, corporate sponsorship, donations and ticket sales.

DIVIDENDSNo dividends were paid or proposed during the financial year.

INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORSINDEMNIFICATION

During or since the end of the financial year the company has not indemnified or made a relevant agreement to indemnify an officer or auditor of the company or of any related body corporate against a liability incurred as such an officer or auditor.

INSURANCE PREMIUMS

During the financial year, the company has paid premiums in respect of Directors and Officers’ liability insurance, legal expenses and insurance contracts for the year ended 31 December 2014 in respect of any liability incurred as a director and or officer to the extent permitted by the Corporations Act 2001. Since the end of the financial year, the company has paid or agreed to pay premiums in respect of such insurance contracts for the year ended 31 December 2015. Such insurance contracts insure persons who are or have been directors or officers of the company against certain liabilities (subject to certain exclusions).

Directors have not included details of the nature of the liabilities covered or the amount of the premium paid as such disclosure is prohibited under the terms of the contract.

EVENTS SUBSEQUENT TO BALANCE DATESince the balance date of 31 December 2014, Tasmanian Symphony Orchestra Holdings Ltd has signed a Deed of Variation to the 2012 to 2014 Tri-Partite Funding Agreement. The Deed of Variation was signed on the 2nd March 2015 by Tasmanian Symphony Orchestra Holdings Ltd and on the 13th February 2015 by the Tasmanian Minister for the Arts.

The Deed of Variation secures funding for 2015 from the Australia Council of $6,379,204 (2014: $6,241,882) and from Arts Tasmania of $1,556,900 (2014: $1,560,471).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFor the year ended 31 December 2014

TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630) 31


TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630)30

DIRECTORS’ MEETINGSThe number of meetings of the Board of Directors and of Board Committees during the financial year were:

TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LTD

TASMANIAN SYMPHONY ORCHESTRA PTY LTD

Board Audit and Risk

Remuneration and

Nominations

Key Artistic Advisory

Number of meetings eligible (E)Number of meetings attended (A)

E A E A E A E A

Patricia Leary (Chair) 11 11 7 7 1 1 3 3David Rich (Deputy Chair) 11 10 7 7 1 1 - -Nicholas Heyward (Managing Director) 11 11 - - 1 1 3 3John Upcher 11 10 - - - - - -Paul Oxley 11 10 - - - - 3 3Maria Grenfell 11 9 - - - - 3 2Donald Challen AM 11 10 7 7 - - - -Peter Cretan 11 8 7 6 - - - -Christopher Lawrence 11 10 - - - - - -

Directors who were absent from meetings were so with the consent of the Board.

AUDITOR’S INDEPENDENCE DECLARATIONThe directors have received a declaration from the auditor which is included after the financial report and directors’ declaration.

Signed in accordance with a resolution of the directors made pursuant to the Australian Charities and Not-for-profits Commission Act 2012:

Patricia LearyDirector

Hobart, 17 March 2015

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFor the year ended 31 December 2014

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

CONSOLIDATEDCONTINUING OPERATIONS NOTE 31/12/14 31/12/13

$ $REVENUEFunding revenue direct from Government 4 8,312,844 8,259,115 Ticket sales 5 1,353,937 1,338,932 Sponsorship and donation revenue 6 723,480 535,898 Other revenue 7 576,561 627,093

10,966,822 10,761,038

EXPENSESEmployee expenses 6,504,408 6,447,309 Artists' fees and expenses 817,054 847,005 Marketing expenses 618,744 576,756 Production expenses 835,516 1,033,874 Symphony Services International service fee 363,661 335,999 Accommodation expenses 461,548 464,465 Travel expenses 198,214 227,003 Other expenses from ordinary activities 803,308 676,296 Finance costs 5,546 5,900 Depreciation and amortisation 8 175,003 145,436

10,783,002 10,760,043

Net profit/(deficit) before income tax 183,820 995

Income tax 2e - -

Net profit/(deficit) for the year 183,820 995

Other comprehensive income - -

Total comprehensive income for the year 183,820 995


TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630) 33TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630)32

STATEMENT OF FINANCIAL POSITIONAs at 31 December 2014

CONSOLIDATEDASSETS NOTE 31/12/14 31/12/13

$ $CURRENT ASSETSCash assets 21a 3,285,931 5,396,616 Trade and other receivables 9 333,989 258,124 Other financial assets 21c 2,348,666 608,075 Other current assets 10 407,937 159,354 Total current assets 6,376,523 6,422,169

NON-CURRENT ASSETSPlant and equipment 12 1,321,626 1,380,503 Total non-current assets 1,321,626 1,380,503

TOTAL ASSETS 7,698,149 7,802,672

LIABILITIES

CURRENT LIABILITIESTrade and other payables 13 325,680 274,672 Borrowings 14 13,273 12,377 Unearned revenue 15 1,429,735 1,595,592 Provisions 16 1,302,913 1,527,889 Total current liabilities 3,071,601 3,410,530

NON-CURRENT LIABILITIESBorrowings 14 50,395 61,618 Provisions 16 313,931 252,122 Total non-current liabilities 364,326 313,740

TOTAL LIABILITIES 3,435,927 3,724,270

NET ASSETS 4,262,222 4,078,402

EQUITYContributed equity 17 175,214 175,214 Retained earnings 20 3,418,342 3,234,522 Reserves Incentive Scheme reserve 19 668,666 668,666

TOTAL EQUITY 4,262,222 4,078,402

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

STATEMENT OF CHANGES IN EQUITYFor the year ended 31 December 2014

CONSOLIDATEDIssued

CapitalRetained Earnings

Other Reserves

Total Equity

$ $ $ $Balance at 1 January 2013 175,214 3,233,527 668,666 4,077,407 Total comprehensive income for the year - 995 - 995 Balance at 31 December 2013 175,214 3,234,522 668,666 4,078,402 Total comprehensive income for the year - 183,820 - 183,820 Balance at 31 December 2014 175,214 3,418,342 668,666 4,262,222

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


TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630) 35



STATEMENT OF CASH FLOWSFor the year ended 31 December 2014

CONSOLIDATEDNOTE 2014 2013

$ $CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIESCash receipts in the course of operations 2,186,956 2,247,860 Cash payments in the course of operations (10,744,854) (10,802,005)Grants received from government funding 8,049,373 8,467,236 Interest received 264,884 269,739 Net cash flows from/(used in) operating activities 21b (243,641) 182,830

CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIESReceipt of cash upon expiry of held-to-maturity investments

(1,740,591) 1,410,591

Payments for plant and equipment (116,126) (220,528)Net cash flows from/(used in) investing activities (1,856,717) 1,190,063

CASH FLOWS FROM FINANCING ACTIVITIESRepayment of borrowings (10,327) (12,377)Net cash flows used in financing activities (10,327) (12,377)

NET INCREASE/(DECREASE) IN CASH HELD (2,110,685) 1,360,516 Cash at the beginning of the financial year 5,396,616 4,036,100

CASH AT THE END OF THE FINANCIAL YEAR 21a 3,285,931 5,396,616

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

1. CORPORATE INFORMATIONThe financial report of Tasmanian Symphony Orchestra Holdings Limited and its controlled entity for the year ended 31 December 2014 was authorised for issue in accordance with a resolution of directors on 17 March 2015.

Tasmanian Symphony Orchestra Holdings Limited is a public company limited by guarantee incorporated in Australia. The address of the registered office is:

1 Davey Street

Hobart TAS 7000

The nature of the operations and principal activities of the Group is described in the Directors’ Report.

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESA) BASIS OF PREPARATION

The financial report has been prepared on the basis of historical cost. Historical cost is generally based on the fair value of the consideration given in exchange for assets. All amounts are presented in Australian dollars.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of AASB 117, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in AASB 2 or value in use in AASB 136. In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

B) STATEMENT OF COMPLIANCE

The financial report is a general purpose financial report which has been prepared in accordance with the Australian Charities and Not-for-profits Commission Act 2012, Accounting Standards and Interpretations, and complies with other requirements of the law.

The company is a not-for-profit entity.




2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

B) STATEMENT OF COMPLIANCE

New Accounting Standards and Interpretations

The accounting policies adopted are consistent with those of the previous financial year.

Accounting Standards and Interpretations issued but not yet effective

There are a number of Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective, and have not been early-adopted by the company for the financial report for the year ending 31 December 2014. The company does not expect the impact of these standards and interpretations will have a material impact on the company’s financial position and performance.

C) BASIS OF CONSOLIDATION

The consolidated financial statements comprise the financial statements of Tasmanian Symphony Orchestra Holdings Limited and its subsidiary as at 31 December 2014.

The financial statements of the subsidiary are prepared for the same reporting period as the parent company, using consistent accounting policies.

In preparing the consolidated financial statements, all inter-company balances and transactions, income and expenses and profit or losses resulting from intra-Group transactions have been eliminated in full.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.

D) REVENUE RECOGNITION

Concert revenueConcert revenue is recognised at the time of concert performance.

Funding revenueFunding revenue comprises grants from the Australia Council (as represented by the Major Performing Arts Board) and the State Government of Tasmania through Arts Tasmania. This revenue is received under the terms of the Tripartite Funding Agreement (2012 – 2014) entered into in 2011.

ICON funding grant revenue is received from the State Government of Tasmania through Arts Tasmania.

Funding revenue is recognised in respect of the applicable calendar year for which the funding is intended under the terms of the funding agreements. Special purpose funding, which requires the company to fulfil an obligation outside its normal operations, is recognised at the time the obligation is fulfilled.

Interest revenueInterest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.


E) TAXATION

Income tax

The Group is exempt from income tax as it is an exempt charitable institution in accordance with Subdivision 50-B of the Income Tax Assessment Act 1997.

F) GOODS AND SERVICES TAX

Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST). 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 statement of financial position. Cash flows are included in the statement of cash flows 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.

G) IMPAIRMENT OF NON-FINANCIAL ASSETS OTHER THAN GOODWILL

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows that are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are tested for possible reversal of the impairment whenever events or changes in circumstance indicate that the impairment may have reversed.

H) CASH AND CASH EQUIVALENTS

Cash and cash equivalents in the statement of financial position comprise cash at bank and in-hand and short-term deposits with a maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

I) TRADE AND OTHER RECEIVABLES

Trade and other receivables, which generally have 30 day terms, are recognised at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any uncollectable amounts. The collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be uncollectable are written off when identified. An allowance for provision for impairment of trade receivables is used when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

The amount of impairment loss is recognised in the statement of profit or loss and other comprehensive income within other expenses.





J) PLANT AND EQUIPMENT

All items of plant and equipment, leasehold improvements, furniture and fittings, office equipment and computers are carried at historical cost less any accumulated impairment losses and accumulated depreciation.

Depreciation and amortisation

Items of plant and equipment, leasehold improvements, furniture and fittings, office equipment and computers are depreciated using the straight-line and diminishing value methods over their estimated useful lives in the current and prior year.

The depreciation rates used for each class of asset are as follows:

Asset class Depreciation rates

Musical instruments and equipment 6.5% - 9%

Leasehold improvements Straight line over the 20 year lease period

Furniture and fittings 10%

Office equipment 10%

Computer equipment 20%

Motor vehicles Straight line over the 3 year lease period

The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year-end.

K) LEASED PLANT AND EQUIPMENT

Leases of plant and equipment are classified as operating leases when the lessor retains substantially all of the risks and benefits of ownership. Operating lease payments are recognised as an expense in the statement of profit or loss and other other comprehensive income on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

L) TRADE AND OTHER PAYABLES

Trade and other payables are carried at amortised cost and due to their short-term nature they are not discounted. They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.


M) FINANCE LEASES

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the company’s general policy on borrowing costs.

N) EMPLOYEE BENEFITS

Wages, salaries and annual leave

The provisions for employee entitlement to wages, salaries and annual leave represent the amount which the company has a present obligation to pay resulting from employees’ services provided up to the balance date. Liabilities recognised in respect of short-term employee benefits, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.

The carrying amount of the provision approximates net fair value.

Long service leave

The liability for employee entitlements to long service leave represents the present value of the estimated future cash outflows to be made by the employer resulting from employees’ services provided up to the balance date.

Liabilities for employee entitlements which are not expected to be settled within twelve months are discounted using the rates attaching to Commonwealth Government securities at balance date which most closely match the terms of maturity of the related liabilities.

In determining the liability for employee entitlements, consideration is given to future increases in wage and salary rates, and the economic entity’s experience with staff departures. Related on-costs have also been included in the liability.

The carrying amount of the provision approximates net fair value.

Superannuation plans

The Group contributes to several accumulation superannuation plans. Employer contributions in relation to the year ended 31 December 2014 have been expensed in the statement of profit or loss and other comprehensive income. No liability is shown for superannuation in the statement of financial position as the employer contributions to the various schemes fully extinguish the employer’s liability.




3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements requires the directors, on advice from management, to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. The following critical accounting policies have been identified for which significant judgements, estimates and assumptions are made.

Impairment of non-financial assets

The company assesses impairment of its non-financial assets at each reporting date by evaluating conditions specific to the company and to the specific asset. If an impairment trigger exists the recoverable amount of the asset is determined. The company considers there have been no impairment triggers in this financial period.

Make-good provision

A provision has been made for the present value of anticipated costs associated with the future restoration of the leased premises. The estimate is periodically reviewed and updated. In the event that the provision is material it will be present valued. The related carrying amounts are disclosed in note 16.

Estimate of useful lives

The estimation of useful lives of plant and equipment is based on historical experience. The condition of assets are assessed periodically and considered in relation to the remaining useful life of the asset and adjustments made to useful lives of plant and equipment as appropriate.


O) OTHER FINANCIAL ASSETS

Held-to-maturity investments

Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the Group has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined period are not included in this classification. Investments that are intended to be held-to-maturity, such as bonds, are subsequently measured at amortised cost. This cost is computed as the amount initially recognised minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initially recognised amount and the maturity amount. This calculation includes all fees and interest paid or received between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums and discounts. For investments carried at amortised cost, gains and losses are recognised in profit or loss when the investments are derecognised or impaired, as well as through the amortisation process.

P) PROVISIONS

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Q) EQUITY INSTRUMENTS

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

R) OTHER FINANCIAL LIABILITIES

Other financial liabilities, including borrowings and trade and other payables, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.




CONSOLIDATED2014 2013

$ $

4. FUNDING REVENUEGovernment direct fundingAustralia Council

Annual grant 6,241,882 6,131,515

MPAB Indigenous Mentorship Grant - 20,000

6,241,882 6,151,515

Arts TasmaniaAnnual grant 1,560,471 1,532,879

ICON funding 500,000 500,000

Shadow Dreams - 23,356

2,060,471 2,056,235

Local government 10,491 10,215

Other funding - 41,150

8,312,844 8,259,115

A significant portion of the company's annual revenue consists of funding from the Australian and Tasmanian Governments, through the Australia Council and Arts Tasmania.


$ $

5. TICKET SALESSubscription sales 575,400 520,483 Single ticket sales 778,537 818,449

1,353,937 1,338,932

6. SPONSORSHIP AND DONATION REVENUECorporate sponsorship 418,878 325,884 Corporate donations 66,381 30,446 Individual donations 238,221 179,568

723,480 535,898

7. OTHER REVENUEInterest income 237,681 277,409 Orchestral hire 74,828 116,278 Royalties 11,785 1,469 Other 252,267 231,937

576,561 627,093

8. PROFIT FROM CONTINUING OPERATIONSProfit for the year from continuing operations has been arrived at after charging the following items:

Depreciation:Plant and equipment 96,863 93,608 Leasehold improvements 46,991 28,402 Furniture and fittings 507 564 Office equipment 1,769 1,836 Computers 10,503 8,649 Motor vehicles 18,370 12,377

175,003 145,436 Superannuation payments 749,019 877,478 Operating lease payments 268,472 272,427





$ $

9. TRADE AND OTHER RECEIVABLESCurrentTrade receivables 333,989 258,124

333,989 258,124

Past due but not impairedTrade receivables over 30 days are past due but not impaired, as there is no objectiveevidence at reporting date that the company will not be able to collect all amounts due.

Trade receivables ageing0 to 60 days 284,599 250,049 61 to 90 days (past due but not impaired) 33,000 - Over 90 days (past due but not impaired) 16,390 8,075

333,989 258,124

10. OTHER ASSETSCurrentPrepayments 112,696 92,999

Inventory 4,999 -

Accrued income 290,242 66,355

407,937 159,354

11. PARENT ENTITY INFORMATION

Information relating to Tasmanian Symphony Orchestra Holdings Ltd

Current assets 15,259 13,364

Non-current assets 1,174,455 1,187,819

Current liabilities 5 116

Retained earnings 1,189,709 1,187,703

Total shareholders' equity 1,189,709 1,187,703

Profit of parent entity 2,006 974

Total comprehensive income of the parent entity 2,006 974

12. PROPERTY, PLANT AND EQUIPMENT

CONSOLIDATEDMusical instru-

ments and equipment

Leasehold improve-

ments

Furniture and

fittings

Office equipment

Computer equipment

Motor vehicle

Total

$ $ $ $ $ $ $CostBalance at 1 January 2013 1,477,551 396,028 13,984 35,873 87,259 - 2,010,695

Adjustments (2) - - 1 2 - 1

Additions 69,409 140,853 - - 10,265 86,372 306,899

Disposals - - - - - - -

Balance at 31 December 2013 1,546,958 536,881 13,984 35,874 97,526 86,372 2,317,595

Accumulated depreciationBalance 1 January 2013 (495,295) (191,166) (8,349) (24,100) (72,747) - (791,657)

Adjustments - (1) 3 (1) - - 1

Depreciation expense (93,608) (28,402) (564) (1,836) (8,649) (12,377) (145,436)

Disposals - - - - - - -

Balance at 31 December 2013 (588,903) (219,569) (8,910) (25,937) (81,396) (12,377) (937,092)

Net book value 31 December 2013 958,055 317,312 5,074 9,937 16,130 73,995 1,380,503




12. PROPERTY, PLANT AND EQUIPMENT (CONT.)

CONSOLIDATEDMusical instru-

ments and equipment

Leasehold improve-

ments

Furniture and

fittings

Office equipment

Computer equipment

Motor vehicle

Total

$ $ $ $ $ $ $CostBalance at 1 January 2014 1,546,958 536,881 13,984 35,874 97,526 86,372 2,317,595

Adjustments - - - - - 5,415 5,415

Additions 83,352 12,147 - - 15,212 - 110,711

Disposals - - - - - - -

Balance at 31 December 2014 1,630,310 549,028 13,984 35,874 112,738 91,787 2,433,721

Accumulated depreciationBalance 1 January 2014 (588,903) (219,569) (8,910) (25,937) (81,396) (12,377) (937,092)

Adjustments - - - - - (5,993) (5,993)

Depreciation expense (96,863) (46,991) (507) (1,769) (10,503) (12,377) (169,010)

Disposals - - - - - - -

Balance at 31 December 2014 (685,766) (266,560) (9,417) (27,706) (91,899) (30,747) (1,112,095)

Net book value 31 December 2014 944,544 282,468 4,567 8,168 20,839 61,040 1,321,626


NOTE $ $

13. TRADE AND OTHER PAYABLESCurrentTrade payables 107,452 118,097 Other payables and accruals 218,228 156,575

325,680 274,672

Trade and other payables ageing0 to 60 days 319,928 274,672 61 to 90 days - - Over 90 days 5,752 -

325,680 274,672

The average credit period on purchases of most goods and services is 7 days. The company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

14. BORROWINGSSecured - at amortised cost

Finance lease liability 27 63,668 73,995

Current 13,273 12,377 Non-current 50,395 61,618

63,668 73,995

This borrowing is in respect of a motor vehicle over which a chattel mortgage is held.

15. UNEARNED REVENUEFunding grants in advance - Arts Tasmania 750,112 1,013,583 Ticket sales in advance 618,598 545,618 Other 61,025 36,391

1,429,735 1,595,592





$ $

16. PROVISIONSCurrentEmployee entitlements 1,302,913 1,527,889

1,302,913 1,527,889

Non-currentEmployee entitlements 255,967 195,847

Make-good provisionBalance at 1 January 2014 56,275 54,637 Additional provision recognised 1,689 1,638 Balance at 31 December 2014 57,964 56,275

313,931 252,122

The make-good provision relates to the make-good requirement for the leased premises.

17. CONTRIBUTED EQUITY222,372 fully paid ordinary shares 175,214 175,214

175,214 175,214

On 31 December 2006 Tasmanian Symphony Orchestra Holdings Ltd purchased all shares of Tasmanian Symphony Orchestra Pty Ltd that were previously held by the Australian Broadcasting Corporation. In the event of winding up of the parent company, property shall be given or transferred to one or more institutions, selected by the board of the company at or before dissolution, having purposes similar to the purposes for which the company was incorporated.

18. GUARANTEE

Each member undertakes to contribute to the property of the company if the company is wound up while he, she or it is a member or within 1 year after he, she or it ceases to be a member, for payment of the company's debts and liabilities contracted before he, she or it ceases to be a member and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributories among themselves, such amount as may be required, but not exceeding $1.


$ $

19. RESERVESReserves Incentive Scheme reserveOpening balance at 1 January 2014 668,666 668,666 Accumulated funds at 31 December 2014 668,666 668,666

The Reserves Incentive Scheme is designed to encourage and assist major performing arts companies to strengthen their financial position by building reserves to a level that is sufficient to underpin their financial health and provide a base from which to take appropriate artistic and access risks. These funds have been set aside, held in escrow and are unencumbered as per the Reserves Incentive Scheme Agreement.

The term of escrow is 15 years from the date of the last payment by government into the reserve. Net assets reached the required 20% during the year ended 31 December 2006.

20. RETAINED EARNINGS

Retained earnings 3,418,342 3,234,522 3,418,342 3,234,522

Balance at beginning of year 3,234,522 3,233,527 Net profit for the year 183,820 995 Balance at end of year 3,418,342 3,234,522





$ $

21. STATEMENT OF CASH FLOWSa) Reconciliation of cashFor the purposes of the statement of cash flows, cash includes cash on hand and at bank and short-term deposits at call, net of outstanding bank drafts. An amount of $668,666 is included in the cash balance and represents a deposit into the Reserves Incentive Scheme account.

Cash assets as at the end of the financial year as shown in the statement of cash flows are as follows:

Cash and cash equivalents 3,285,931 5,396,616 3,285,931 5,396,616

b) Reconciliation of surplus from ordinary activities to net cash flows from operating activities

Surplus from ordinary activities 183,820 995 Depreciation 175,003 145,436

358,823 146,431 Movements in working capital

(Increase)/decrease in trade and other receivables (75,865) 19,562 (Increase) in prepayments (248,583) (11,232)Increase in trade and other payables 51,008 115,132 (Decrease) in unearned revenue (165,857) (202,142)(Decrease)/increase in provisions (163,167) 115,079

(243,641) 182,830

c) Investments in financial assets

Held-to-maturity 2,348,666 608,075 2,348,666 608,075

Held-to-maturity investments include term deposits with a maturity greater than three months.


$ $

22. EMPLOYEE ENTITLEMENTSCurrent 1,302,913 1,527,889 Non-current 255,967 195,847

1,558,880 1,723,736

Aggregate employee entitlements presented above include on-costs. At year end, the company employed 76 full-time equivalent employees (2013: 76).

23. KEY MANAGEMENT PERSONNEL AND RELATED PARTY DISCLOSURESa) Details of key management personnelDirectorsThe names of each person holding the position of director of Tasmanian Symphony OrchestraPty Ltd during the financial year are:Patricia Leary ChairDavid Rich Deputy ChairNicholas Heyward Managing DirectorPaul Oxley DirectorJohn Upcher DirectorMaria Grenfell DirectorDonald Challen AM DirectorPeter Cretan DirectorChristopher Lawrence Director

Unless otherwise stated, directors have been in office for the financial year. All directors are also directors of the parent entity.

ExecutivesNicholas Heyward Chief Executive OfficerJohn Pugsley Deputy CEO, Manager Marketing and Corporate PartnershipsSimon Rogers Manager Artistic PlanningGreg Low Orchestra ManagerJohn De Paoli Business Manager (commenced 7 July 2014)Colin Norris Chief Financial Officer (retired 4 July 2014)





$ $

23. KEY MANAGEMENT PERSONNEL AND RELATED PARTY DISCLOSURES (CONT.)b) Compensation of key management personnel

Short term employee benefits 638,966 672,521 Post-employment benefits:

Superannuation 115,764 105,529 Termination benefits 105,880 27,917

860,610 805,967 Termination benefits relate to cash payments of previously accrued annual leave and long service leave balances.

c) Other transactions with key management personnelAll transactions with members of the Board or their related entities are conducted at arm's length at normal market prices and on normal commercial terms.

Sale of goods and services

Purchase of goods and services

The following activity occurred during 2014: 2014 2013 2014 2013$ $ $ $

Patricia Leary is Acting Chair of:Virtuosi Tasmania Inc. 1,476 2,347 198 -

Nicholas Heyward is a director of:Arts Management Tasmania trading as Handmark Gallery - - 1,550 790Symphony Services Australia Ltd known as both Symphony Australia and Symphony Services International 60,500 89,100 400,027 369,599

Theatre Royal Management Board - - 28,854 23,805

John Upcher is a director of:Tasmanian Symphony Orchestra Foundation Ltd* 25,421 8,244 -

Sale of goods and services

Purchase of goods and services

2014 2013 2014 2013$ $ $ $

23. KEY MANAGEMENT PERSONNEL AND RELATED PARTY DISCLOSURES (CONT.)David Rich:

University of Tasmania (125th anniversary coordinator) 943 - 5,065 479Theatre North Management (Committee President) - - 19,140 20,153

Maria Grenfell is a senior lecturer at:Conservatorium of Music, University of Tasmania 943 - 5,065 479

Peter Cretan is a director of:Tasmanian Collection Service - - 328 385

Christopher Lawrence:Australian Broadcasting Corporation (Broadcaster) - - 10,360 -Christopher Lawrence (concert compere) - - 600 -

* This receipt relates to the non-discretionary distribution required to be made to Tasmanian Symphony Orchestra Pty Ltd from Tasmanian Symphony Orchestra Foundation Trust under the Public Ancillary Fund guidelines that govern the Trust.

d) SubsidiaryThe consolidated financial statements as at 31 December 2014 include the parent company's one subsidiary in which it had 100% interest, Tasmanian Symphony Orchestra Pty Ltd, which is incorporated in Australia and has the same balance date as that of the parent entity.

e) Ultimate parentTasmanian Symphony Orchestra Holdings Ltd is the ultimate parent entity.





$ $

24. AUDITOR REMUNERATIONAudit of the financial statement 22,259 21,300

22,259 21,300

No amounts are paid to the auditor by the parent entity. All amounts are paid by its subsidiary, Tasmanian Symphony Orchestra Pty Ltd. No other benefits were received by the auditor.

The auditor of Tasmanian Symphony Orchestra Pty Ltd is Deloitte Touche Tohmatsu.

25. EXPENDITURE COMMITMENTSArtists' fees contracted for but not provided for or payable

Not later than one year 197,182 155,000 Later than one year and not later than five years 310,000 480,000

507,182 635,000

Capital equipment contracted for but not provided for or payable

Not later than one year 13,957 - 13,957 -

26. OPERATING LEASE ARRANGEMENTSNon-cancellable operating lease commitments

Not later than 1 year 459,092 449,307 Later than 1 year and not later than 5 years 1,851,280 1,834,870 Later than 5 years 432,874 901,366

2,743,246 3,185,543

Operating leases are for the lease of office and rehearsal facilities, lease of the Federation Concert Hall and lease of office equipment.

YEAR ENDED CONSOLIDATED2014 2013 2014 2013

NOTE $ $ $ $

27. OBLIGATIONS UNDER FINANCE LEASES

Minimum lease payments

Present value of minimum

lease payments

Finance lease liabilitiesNot later than 1 year 17,817 17,817 13,273 12,377Later than 1 year and not later than 5 years 50,726 68,543 50,395 61,618

68,543 86,360 63,668 73,995Less future finance charges (4,875) (12,365) - -Present value of minimum lease payments 63,668 73,995 63,668 73,995

Included in the financial statementsCurrent borrowings 13,273 12,377 Non-current borrowings 50,395 61,618

14 63,668 73,995

The company leases a motor vehicle under a Chattel Mortgage Agreement. The lease term is for three years commencing in 2013. The company has an option to purchase the vehicle for a residual amount at the end of the lease term. The interest rate is fixed at the contract date at 7.88% per annum. The company's obligations under the finance lease are secured by a mortgage to the lessor.

The fair value of the finance lease liability is approximately equal to its carrying amount.

28. ECONOMIC DEPENDENCY

Tasmanian Symphony Orchestra Holdings Ltd is economically dependent on the ongoing annual funding received from the Australian Government and the Tasmanian Government through the Australia Council and Arts Tasmania to operate as a going concern.

Funding from the Australian Government and the Tasmanian Government through the 2012 to 2014 Tripartite Funding Agreement is secure to 31 December 2015, subject to the company continuing to comply with the terms of the relevant agreement.




29. ADDITIONAL FINANCIAL INSTRUMENT DISCLOSUREa) Liquidity risk managementUltimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company's short, medium and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The following tables detail the company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods and the expected maturity of non-derivative financial assets. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay. The table includes both interest and principal cash flows. The contractual maturity is based on the earliest date on which the company may be required to pay.

The tables below include the weighted average effective interest rate as data about the company's exposure to interest rates at the end of the reporting period. The company closely monitors its exposure to interest rate risk. The company endeavours to enter into arrangements to maximise returns, at the same time protecting the company from default.

31 December 2014

Note Weighted average interest

rate

Less than 1 month

1 to 3 months

4 months to 1 year

Greater than 1

year

Total

$ $ $ $ $Financial assets

Fixed interest instruments

3.63% 750,000 2,100,000 2,348,666 - 5,198,666

Receivables (non-interest bearing)

9 - 317,599 16,390 - 333,989

750,000 2,417,599 2,365,056 - 5,532,655

Financial liabilities

Accounts payable (non-interest bearing)

13 325,680 - - - 325,680

Borrowings 14 7.88% 1,484 2,970 13,363 50,726 68,543327,164 2,970 13,363 50,726 394,223

31 December 2013Financial assets

Fixed interest instruments

4.17% 1,000,000 2,568,666 600,000 - 4,168,666

Receivables (non-interest bearing)

9 - 250,049 8,075 - 258,124

1,000,000 2,818,715 608,075 - 4,426,790

Financial liabilities

Accounts payable (non-interest bearing)

13 274,672 - - - 274,672

Borrowings 14 8.95% 1,031 3,094 8,252 61,618 73,995275,703 3,094 8,252 61,618 348,667





$ $

29. ADDITIONAL FINANCIAL INSTRUMENT DISCLOSURE (CONT.)b) Capital managementThe company manages its capital to ensure that the company will be able to continue as a going concern through the optimisation of the debt and equity balance. The company's overall strategy remains unchanged from 2013.

The company does not have any significant debt. The company is not subject to any externally imposed capital requirements, except for the Reserves Incentive Scheme requirements. (refer note 19)

c) Categories of financial instrumentsFinancial assets

Cash and bank balances 435,931 1,836,025Held-to-maturity investments 5,198,666 4,168,666Trade receivables 333,989 258,124

Financial liabilitiesChattel mortgage 63,668 73,995Trade payables 325,680 274,672

d) Financial risk managementThe company's finance team co-ordinates access to domestic financial markets, monitors and manages the financial risks relating to the operations of the company through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, fair value interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.

The company does not enter into or trade financial instruments including derivative financial instruments for speculative purposes.

e) Interest rate risk managementThe company closely monitors its exposure to interest rate risk. The company endeavours to enter into arrangements to maximise returns, at the same time protecting the company from default. The company's exposures to interest rates on financial assets and financial liabilities are detailed in the liquidity risk management section of this note.

29. ADDITIONAL FINANCIAL INSTRUMENT DISCLOSURE (CONT.)f) Net fair valueThe net fair value of financial assets and liabilities at the balance date are those disclosed in the statement of financial position and related notes. This is because either the carrying amounts approximate net fair value or because of their short term to maturity.

Fair value hierarchy as at 31 December 2014

Level 1 Total$ $

Financial assetsLoans and receivables:

trade and other receivables 333,989 333,989

Held-to-maturity investments:term deposits 5,198,666 5,198,666

5,532,655 5,532,655

Financial liabilitiesFinancial liabilities held at amortised cost:

finance lease 63,668 63,668trade and other payables 325,680 325,680

389,348 389,348

The company does not hold any financial assets or financial liabilities classified as Level 2 or Level 3.

g) Credit risk exposureThe company's maximum exposure to credit risk at balance date in relation to each class of recognised financial liabilities is the carrying amount of those liabilities as indicated in the statement of financial position and related notes. The company's exposure to credit risk associated with cash and cash equivalents is minimised through depositing monies across a spread of banking institutions.

Tasmanian Symphony Orchestra holds a credit card facility to the value of $50,000 (2013: $50,000) and the balance used at 31 December 2014 was $2,752 (2013: $2,244).



30. SUBSEQUENT EVENTSSince the balance date of 31 December 2014, Tasmanian Symphony Orchestra Holdings Ltd has signed a Deed of Variation to the 2012 to 2014 Tri-Partite Funding Agreement. The Deed of Variation secures funding for 2015 from the Australia Council of $6,379,204 and from Arts Tasmania of $1,556,900.

31. APPROVAL OF FINANCIAL STATEMENTSThe financial statements were approved by the board of directors and authorised for issue on 17 March 2015.

DIRECTORS’ DECLARATIONFor the year ended 31 December 2014

DIRECTORS' DECLARATION

The directors of Tasmanian Symphony Orchestra Holdings Ltd declare that in the directors' opinion :

a) the financial statements and notes are in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including:

i) giving a true and fair view of the financial position of the Group as at 31 December 2014 and of its performance, as represented by the results of its operations and its cash flows for the financial year ended on that date; and

ii) comply with Accounting Standards and the Australian Charities and Not-for-profits Commission Act 2012; and

b) there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors made pursuant to the Australian Charities and Not-for-profits Commission Act 2012:

Patricia LearyDirectorHobart 17 March 2015



Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

Deloitte Touche Tohmatsu ABN 74 490 121 060 Level 8 22 Elizabeth Street Hobart TAS 7000 GPO Box 777 Hobart TAS 7001 Australia Tel: +61 3 6237 7000 Fax: +61 3 6237 7001 www.deloitte.com.au

18 March 2015 Dear Board Members

Tasmanian Symphony Orchestra Holdings Limited

In accordance with the Australian Charities and Not-for-profits Commission Act 2012, I am pleased to provide the following declaration of independence to the directors of Tasmanian Symphony Orchestra Holdings Limited. As lead audit partner for the audit of the financial statements of Tasmanian Symphony Orchestra Holdings Limited for the financial year ended 31 December 2014, I declare that to the best of my knowledge and belief, there have been no contraventions of:

(i) 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) any applicable code of professional conduct in relation to the audit. Yours sincerely

DELOITTE TOUCHE TOHMATSU

AM Paynter Partner Chartered Accountant

The Board of Directors Tasmanian Symphony Orchestra Holdings Limited Federation Concert Hall 1 Davey Street Hobart TAS 7000

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

Independent Auditor’s Report to the Members of Tasmanian Symphony Orchestra

Holdings Limited We have audited the accompanying financial report of the Tasmanian Symphony Orchestra Holdings Limited, which comprises the statement of financial position as at 31 December 2014, the statement of profit or loss and other comprehensive income, the statement of cash flows and the statement of changes in equity for the year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity, comprising the company and the entities it controlled at the year’s end or from time to time during the financial year as set out on pages 6 to 32. Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control, relevant to the entity’s preparation of the financial report that gives a true and fair view, 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Deloitte Touche Tohmatsu ABN 74 490 121 060 Level 8 22 Elizabeth Street Hobart TAS 7000 GPO Box 777 Hobart TAS 7001 Australia Tel: +61 3 6237 7000 Fax: +61 3 6237 7001 www.deloitte.com.au


Auditor’s Independence Declaration In conducting our audit, we have complied with the independence requirements of the Australian Charities and Not-for-profits Commission Act 2012. Opinion In our opinion, the financial report of the Tasmanian Symphony Orchestra Holdings Limited is in accordance with the Australian Charities and Not-for-profits Commissions Act 2012, including: (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2014

and of its performance for the year ended on that date; and (b) complying with Division 60 of the Australian Charities and Not-for-profits Commission

Regulation 2013.

DELOITTE TOUCHE TOHMATSU

AM Paynter Partner Chartered Accountants Hobart, 18 March 2015

TSO.COM.AU

Federation Concert Hall 1 Davey Street, Hobart Tasmania 7000 Australia

GPO Box 1450 Hobart Tas 7001 Australia

BOX OFFICEBookings online: tso.com.auFreecall: 1800 001 190Telephone: 03 6232 4450Facsimile: 03 6232 4455Email: [email protected]

ADMINISTRATIONTelephone: 03 6232 4444Int. Telephone: +61 3 6232 4444Facsimile: 03 6232 4455Int. Facsimile: +61 3 6232 4455Email: [email protected]

© 2015 Tasmanian Symphony Orchestra Pty LtdABN 81 088 230 184

0726

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Documents

2014 ANNUAL REPORT - tso.com.au