SYDNEY DANCE COMPANY › public › b76… · Sydney Dance Company presented 14 different works across the year including nine commissioned new choreographic works which were supported

For the year ended 31 December 2018

SYDNEY DANCE COMPANYABN 59 002 707 897

GENERAL PURPOSE (RDR) FINANCIAL REPORT

Contents

Directors' report ....................................................................................................................................................................2

Auditor's independence declaration ……………..............................................................................................................8

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

Statement of financial position……………………….....................................................................................................................................10

Statement of changes in equity ………………..................................................................................................................11

Statement of cash flows ……………………………………………………………………………………………………….12

Notes to the financial statements …………………..........................................................................................................13

Governance statement………………………………………………………………………………………………………………………..28

Directors' declaration ……………........................................................................................................................................29

Declaration by Chairperson as required by the Charitable Fundraising Act 1991 (NSW) ……………........................................................................................................................................30

Independent auditor's report …………….….……………....……………………………………………………………..........31

SYDNEY DANCE COMPANY

1

DIRECTORS

KAREN MOSES (CHAIR)

PAMELA BARTLETT

JILLIAN BROADBENT AC

PETER BROWNIE

BRETT CLEGG (DEPUTY CHAIR)

KIERA GRANT

MARK HASSELL

CATRIONA MORDANT AM

BEAU NEILSON

EMMA-JANE NEWTON

CHRISSY SHARP

CARLA ZAMPATTI AC

Former Executive of Origin Energy

Expertise: Financial, Strategic Management, Corporate Governance

PAMELA BARTLETT

Founding member of The Marmalade Foundation, operating and funding Lou’s Place, a safe place for women

KAREN MOSES (CHAIR) - B.Economics, Dip. Education (Sydney) FAICD

(Appointed: 30 April 2018)

Director Charter Hall Group from September 2016 and Chair of the Audit and Risk Committee

Director of Boral Limited from March 2016 and member of the Audit and Risk Committee and the Safety, Health and

Environment Committee

Fellow to the Senate of Sydney University effective December 1, 2017 and Chair of the Finance Committee

Appointed to the Board in May 2012 and to Chair in December 2016

Chair of the Nominations Committee

Director Orica Limited from July 2016 and member of the Audit and Risk Committee and the Safety, Health,

Environment and Community Committee


Directors' report

The names of Company's directors in office during the financial year and until the date of this report are as follows.

Directors were in office for this entire period, unless otherwise stated.

(Appointed: 15 March 2018)

Member of the Audit and Risk Committee (Chair 22 April 2013 to 8 December 2016)

Member of the Capital Campaign Committee

Former Director of SAS Trustee Corporation, Origin Group companies, Contact Energy Ltd, and the Australian Energy

Market Operator

Appointed to board in August 2012

Member of the Marketing and Commercial Activities Sub Committee

Chair of SDC’s major fundraiser, Dance Noir in 2011, 2012 and 2013

Your directors submit their report on Sydney Dance Company (the "Company") for the year ended 31 December 2018.

Qualifications, experience and special responsibilities

Director of Sydney Symphony Limited and Sydney Symphony Holdings Pty Limited from December 2015 and member

of the Audit and Risk Committee

Studied liberal arts and business administration

Former Executive Manager, American Express Company with 20 years’ experience in Card and Travelers Cheque

Operations

Expertise: Operational Management, Customer Service, Quality Assurance, Marketing and Fundraising

2


Directors' report (continued)

DIRECTORS (continued)

Qualifications, experience and special responsibilities (continued)

Chair of the Audit and Risk Committee (Appointed Chair in February 2017)

KIERA GRANT - B. Economics (Sydney) FAICD

Member of Australian Institute of Company Directors (GAICD)

Expertise: Finance, Strategic Management, Corporate Governance and Corporate Contacts

JILLIAN BROADBENT AC - B. Arts (Sydney)

Appointed to the board in February 2018

Member of the Audit and Risk Committee

Director of Woolworths Limited

Director of Macquarie Group Limited

Chancellor of the University of Wollongong

Chair of the Board of Swiss Re Life and Health Australia Limited

Member of the Board of the National Portrait Gallery of Australia

Former Chair of the Clean Energy Finance Corporation

Former Member of the Board of the Reserve Bank of Australia

Former Director of ASX Limited, Coca-Cola Amatil Limited, Special Broadcasting Service Corporation (SBS), Qantas

Airways Limited, Westfield Property Trusts and Woodside Petroleum Ltd

Expertise: Financial, Strategic Management, Corporate Governance

Appointed to the board in March 2013


Member of the Capital Campaign Committee

Non-executive Director of Samuel Smith and Sons (incorporating Yalumba Wines and Negociants Limited)

Former Non-executive Director of Pacific Brands Ltd

Trustee of the AGNSW Foundation

Former Executive Director of UBS Australia

Appointed to the board in March 2015

Member of the Marketing and Commercial Activities Committee

Member of the Capital Campaign committee

Founding Partner – Cato & Clegg

Appointed to the Board in August 2012

PETER BROWNIE - B. Economics (Sydney)

Expertise: Finance, Strategy, Management, Corporate Contracts

BRETT CLEGG (DEPUTY CHAIR)- B. Business (UTS) Masters of Commerce in Advanced Finance (NSW)

Expertise: Corporate Strategy, Media and Technology, Finance, Fundraising and Corporate Contacts

Former Publisher and Senior Executive at News Corp Australia and Fairfax Media

Non-executive director hipages Group

Non-Executive Director of Future Generation Global

Non-Executive Director of Adairs Ltd

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CATRIONA MORDANT AM

CHRISSY SHARP

Member of the Nominations Committee

Inaugural Director of The Wheeler Centre, Melbourne 2009-2011

GM Sadler's Wells, London, Former GM Sydney Festival, Former Head of Policy at SBS


Appointed to the Board in December 2016

Expertise: Arts Management, Strategic Analysis, Government Relations

Expertise: Brand, Customer Service/experience, Operations, Colleague Engagement and Marketing

Foundation board member of the Museum of Contemporary Art Australia

Appointed to the Board in March 2015

Expertise: Philanthropy, Events, Relationship Management

Member of the advisory board of Venetian Heritage in Venice


MARK HASSELL

Director of the International Council of the Tate in London

Chair of the Marketing and Commercial Activities Committee

Partner, Customer, Brand & Marketing Advisory, Management Consulting – KPMG Australia

Former British Airways Global Head of Customer Experience

Other senior customer, brand and marketing roles at British Airways and QANTAS

Member of the Marketing and Commercial Activities Committee

Advisory Board Member of Anti-Slavery Australia

Gifting Committee Member of The Neilson Foundation

BEAU NEILSON - B.Laws (UTS)

Appointed to the Board in December 2016

Member of the Nominations Committee

Expertise: Fundraising, Strategic Management, Corporate Contacts

Appointed to the Board in February 2017

Acting Executive Director (maternity cover), Sydney Dance Company 2016

Group Executive/Chief Customer Officer for Virgin Australia 2012 - 2017

CEO, Sydney Writers’ Festival from 2018

Chair of the Dance Board, Australia Council for the Arts 2009-2012

4



CARLA ZAMPATTI AC

DIVIDENDS

EMPLOYEES

PRINCIPAL ACTIVITIES

There have been no significant changes in the nature of these activities during the year.

Honorary Doctorate of Letters from the University of Western Sydney 1999 for outstanding service to the University as a

member of its Board of Governors

Former director of the Australian Multicultural Foundation, MCA Foundation, UTS V-C's Industry Advisory Board,

Westfield Holdings, McDonalds and the Sydney Theatre Company Foundation

- Fundraising to support production, promotion and presentation of dance performances in Australia and internationally.

Former Chair of the SBS Corporation

Executive Chair of Carla Zampatti Pty Ltd.

Appointed to the board in April 2018


Appointed to the Board in October 2012

Member of the Nominations Sub Committee

Expertise: Business, Export Markets, Board governance, Networks


Honorary Doctorate of Laws at the Faculty of Arts, Monash University

- Production and presentation of dance performances in Australia and overseas.

- Promotion and the study of dance.

The Company employed 48 permanent employees as at 31 December 2018 (2017: 47 employees).

- Commercial activities to provide financial support for the above including daily dance classes, school holiday

workshops and dance studio hire.

The Company is a not for-profit organisation which does not pay dividends.

The principal activities during the year were as follows:

Board Member of European Australian Business Council

Former Trustee of the Art Gallery of New South Wales

Honorary Doctorate of Letters from the University of Wollongong

Honorary Doctors of Design from the University of Technology, Sydney

Commander of the Order of Merit of the Italian Republic

Awarded The Australian Fashion Laureate in 2008

EMMA-JANE NEWTON - B. Commerce Hons (Monash), AICD

Member of the Marketing & Commercial Development Committee

Currently Managing Director, Investment Banking Division, Morgan Stanley

Former: Executive Director Telstra, Managing Director Credit Suisse

Expertise: Finance, Strategy, Corporate relationships and engagement

5


OPERATING RESULTS

OBJECTIVES

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

Sydney Dance Company relocated in mid-2018 to facilitate our premises to be renovated as part of the Walsh Bay Arts

Precinct development. Our usual activities have been continued across this period of disruption, with some changes and

impacts due to operating across three venues and fewer studios.

Sydney Dance Company presented 14 different works across the year including nine commissioned new choreographic

works which were supported by nine new music commissions.

Sydney Dance Company’s education department presented more than 335 education activities, 4 school matinees and 65

school holiday workshops to almost 12,000 participants. The Pre-Professional Year (PPY) continues to grow in

reputation as it completed its fifth year. PPY students concluded the year with a premier performance of newly

choreographed works which attracted over 800 people over 3 nights.

Since the end of the previous financial year, the Company has not indemnified or made a relevant agreement for

indemnifying against a liability of any person who is or has been an officer or auditor of the Company.

Since the end of the previous financial year, the Company has paid premiums in respect of directors' and officers' liability

and legal expenses insurance contracts. These insurance contracts insure against liability (subject to specific exclusions)

for persons who are or have been directors or officers of the Company.

The Directors have not included details of the nature of the liabilities covered nor the amount of the premium paid in

respect of the directors' and officers' liability and legal expenses' insurance contracts, as such disclosure is prohibited

under the terms of the contract.

Sydney Dance Company performed to an audience totalling over 49,000 in 2018. There were 66 Australian performances

in Sydney, Canberra and Melbourne, regional Queensland, Western Australia and Northern Territory and in 3 centres in

regional NSW. The Company also performed to audiences in Chile, Columbia, Serbia, Slovenia, Wolfsburg in Germany

as part of the Movimentos Festival, Théâtre National de Chaillot, Paris, France and 2 performances at the National

Kaohsiung Center for the Arts (Weiwuying) in Taiwan. There were 17 international performances with a total audience

of almost 19,000.

SDC commercial dance classes continue to be popular with almost 79,000 annual attendances. Over 3,900 classes were

held 7 days a week for 49 weeks of the year.

There have been no significant events occurring after the reporting period which may affect either the Company’s

operations or results of those operations or the Company’s state of affairs.

This annual surplus consists of an operating surplus of $15,476, calculated after funding the $798,395 impact of

disruption costs on the base operating deficit result of $782,919 from the Infrastruture Project gross surplus of

$1,036,179, leaving an Infrastructure Project net surplus of $237,784.

Total income for the period is $12,383,669. This amount is made up of operational income of $10,792,997 and

Infrastructure related income of $1,590,672 ($1,495,200 from donations and $95,472 from state government

contributions). Expenses for the year total $12,130,408. This consist of $11,575,915 of operational expenses and

$554,493 of Infrastructure Project related expenses.

The surplus for the year ended 31 December 2018 was $253,261 (2017: $722,946).

There have been no significant changes in the state of affairs of the Company during the year.


6

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

Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au

Auditor’s Independence Declaration to the Directors of Sydney Dance Company

In relation to our audit of the financial report of Sydney Dance Company for the financial year ended 31

December 2018, and in accordance with the requirements of Subdivision 60-C of the Australian

Charities and Not-for profits Commission Act 2012, to the best of my knowledge and belief, there have

been no contraventions of the auditor independence requirements of any applicable code of professional

conduct.

Ernst & Young

Yours sincerely

Lisa Nijssen-Smith

Partner

24 April 2019

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Stamp

Notes 2018 2017

$ $

Revenue 5(a) 12,383,669 11,937,778

Other income 5(b) 78,463 41,398

Administration and marketing expenses including staff costs (7,389,243) (6,564,304)

Performance and production expenses (2,904,725) (2,772,151)

Commercial activity related costs (975,403) (827,264)

Philanthropy activity related costs (651,347) (761,995)

Sponsorship activity related costs (46,868) -

Education costs (241,285) (330,516)

Operating surplus for the year 253,261 722,946

Other comprehensive income - -

Total comprehensive income for the year 253,261 722,946


Statement of profit or loss and other comprehensive income


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

accompanying notes.

9

Notes 2018 2017

$ $

Assets

Current assets

Cash and short-term deposits 6 3,420,568 3,137,794

Trade and other receivables 7 388,846 463,084

Inventories 8 16,597 -

Other assets 1,528 -

Total current assets 3,827,539 3,600,878

Non-current assets

Property, plant and equipment 9 125,361 77,725

Reserve incentive scheme 10 558,339 550,747

Total non-current assets 683,700 628,472

Total assets 4,511,239 4,229,350

Liabilities

Current liabilities

Trade and other payables 11 516,716 298,375

Deferred revenue 12 482,778 425,096

Employee benefit liabilities 13 360,370 335,449

Government grant advances 14 131,828 392,320

Total current liabilities 1,491,692 1,451,240

Non-current liabilities

Employee benefit liabilities 13 26,807 38,631

Total non-current liabilities 26,807 38,631

Total liabilities 1,518,499 1,489,871

Net assets 2,992,740 2,739,479

Equity

Contributed equity 15 524 524

Retained earnings 810,185 1,058,382

Reserve incentive scheme 16 558,339 550,747

Artist development program fund 16 256,082 -

Capital reserve 16 1,367,610 1,129,826

Total equity 2,992,740 2,739,479


As at 31 December 2018

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

Statement of financial position

10

Contributed

equity

(Note 15)

Retained

earnings

Capital

reserve

(Note 16)

Reserve

incentive

scheme

(Note 16)

Artist

development

program fund

(Note 16) Total equity

$ $ $ $ $ $

At 2 January 2017 524 1,078,009 400,000 538,000 - 2,016,533

Surplus for the year - 722,946 - - - 722,946

Total comprehensive

income for the year - 722,946 - - - 722,946

Transfer to capital

reserves - (729,826) 729,826 - - -

Transfer to reserve

incentive scheme - (12,747) - 12,747 - -

At 31 December 2017 524 1,058,382 1,129,826 550,747 - 2,739,479

Surplus for the year - 253,261 - - - 253,261

Total comprehensive

income for the year - 253,261 - - - 253,261

Transfer to capital

reserve - (1,036,179) 1,036,179 - - -

Transfer to reserve

incentive scheme - (7,592)

-

7,592 - -

Transfer to artist

development fund - (256,082) - - 256,082 -

Reallocation from

capital reserve - 798,395 (798,395) - - -

At 31 December 2018 524 810,185 1,367,610 558,339 256,082 2,992,740

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


Statement of changes in equity


11

2018 2017

$ $

Operating activities

Receipts from activities 8,615,466 7,933,563

Payments to suppliers and employees (11,461,518) (10,577,169)

Receipt of government grants 3,201,585 3,364,780

Interest received 23,441 15,747

Net cash flows from operating activities 378,974 736,921

Investing activities

Purchase of property, plant and equipment 9 (96,200) (29,384)

Net cash flows used in investing activities (96,200) (29,384)

Financing activities

Net cash flows used in financing activities - -

Net increase in cash and cash equivalents 282,774 707,537

Cash and cash equivalents at the beginning of year 3,137,794 2,430,257

Cash and cash equivalents at the end of year 6 3,420,568 3,137,794

The above statement shows cashflow exclusive of reserves held under the reserve incentive scheme.

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


Statement of cash flows


12

1

2

(a)

(b)

The registered office and principal place of business of the Company is: The Wharf, Pier 4, Hickson Road, Walsh

Bay, NSW 2000.

The financial report has also been prepared mainly on a historical cost basis.

The financial report is a general purpose financial report, which has been prepared in accordance with the

requirements of the ACNC Commissions Act 2012, Australian Accounting Standards - Reduced Disclosure

Requirements and other authoritative pronouncements of the Australian Accounting Standards Board. The Company

is a not-for-profit, private sector entity which is not publicly accountable. Therefore, the financial statements for the

Company are tier 2 general purpose financial statements which have been prepared in accordance with Australian

Accounting Standards - Reduced Disclosure Requirements (AASB - RDRs).

The financial report is presented in Australian dollars ($).


Notes to the financial statements


CORPORATE INFORMATION

The Company exists to present live dance in Australia and overseas and to promote the study of dance. The nature of

the operations and principal activities of the Company are further described in the directors' report.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

The financial report of the Company for the year ended 31 December 2018 was authorised for issue in accordance

with a resolution of the directors on 24 April 2019.

Sydney Dance Company is a not for-profit company limited by guarantee and as such has no authorised capital and is

domiciled in Australia.

Changes in accounting policy, disclosures, standards and interpretations

New and amended standards and interpretations

The Company applied AASB 9 Financial Instruments for the first time. The nature and effect of the changes as a

result of adoption of this new accounting standard is described below.

The financial report is a general purpose financial report, which has been prepared in accordance with the

requirements of the ACNC Commission Act 2012, Australian Accounting Standards and other authoritative

pronouncements of the Australian Accounting Standards Board, and the Australian Charities and Not-for-Profits

Commissions Act 2012.

Several other amendments and interpretations apply for the first time in 2018, but do not have an impact on the

financial statements of the Company.

AASB 9 Financial Instruments

AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for

annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for

financial instruments: classification and measurement; impairment; and hedge accounting.

The Company has applied AASB 9 retrospectively, with the initial application date of 1 January 2018.

The classification and measurement requirements of AASB 9 did not have a significant impact in the Company.

13

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(b) Changes in accounting policy, disclosures, standards and interpretations (continued)

New and amended standards and interpretations (continued)

Certain Australian Accounting Standards and Interpretations have recently been issued or amended but are not

yet effective and have not been adopted by the Company for the annual reporting year ended 31 December 2018.

The directors have not early adopted any of these new or amended standards or interpretations. The directors are

in the process of assessing the impact of the applications of AASB 15 Revenue from Contracts with Customers

(effective 1 January 2019 for not-for-profit entities), AASB 1058 Income of Not-For-Profit Entities (effective 1

January 2019) and AASB 16 Leases (effective 1 January 2019) and its amendments to the extent relevant to the

financial statements of the Company.

(c)

The ability of the Company to maintain its operations is dependent inter alia on the continuing support of various

Governments by way of grants. The Multi-partite Agreement was current for the period 2016–2018 and renewed

for the period 2019-2021 with the Australia Council for the Arts and Create NSW, subject to the Com-

pany continuing to meet the requirements of the Multi-partite Agreement.

The Company’s Directors have undertaken a thorough assessment of going concern; this review considered the

operating budgets, projected balance sheet position and detailed cash flow for the Company for the period 2019-

2021. The combination of these considerations indicates that the Company will be able to meet its obligations as

and when they fall due for at least 12 months from the date of the financial statements.

Accordingly, the financial statements have been prepared under the going concern principle.

(d)

The Company presents assets and liabilities in the statement of financial position based on current/non-current

classification. An asset is current when it is:

A liability is current when:

- It is expected to be settled in the normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months

after the reporting period

The Company classifies all other liabilities as non-current.

All other assets are classified as non-current.

- Expected to be realised within twelve months after the reporting period, or

Going concern

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least

twelve months after the reporting period


Notes to the financial statements (continued)


Current versus non-current classification

- Expected to be realised or intended to be sold or consumed in the normal operating cycle

- Held primarily for the purpose of trading

14





(e) Cash and short-term deposits

Cash and short-term deposits in the statement of financial position comprise cash at bank and on hand and short-

term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in

value.

The Artist Development Program Fund represents restricted funds for use in developing and maintaining the

Hephzibah Artist Development Program. Funds to the value of $256,082 were received from the Hephzibah

Tintner Foundation and are to be used over a 10 year period for the professional development of young artists

under the program. Funds are held in a separate bank account

For the purpose of the statement of cash flows, cash and cash equivalents consists of cash, and short-term

deposits as defined above.

(f) Trade and other receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the

passage of time is required before payment of the consideration is due). Trade receivables, which generally have

14-30 days terms, are recognised and carried at original invoice amount less an allowance for expected credit

losses.

(g) Inventory

Inventories are stated at the lower of cost and net realisable value. Costs of purchased inventory are determined

after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of

business less the estimated costs necessary to make the sale.

(h) Impairment of financial assets

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair

value through profit or loss. ECLs are based on the difference between the contractual cash flows due in

accordance with the contract and all the cash flows that the Company expects to receive, discounted at an

approximation of the original effective interest rate. The expected cash flows will include cash flows from the

sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in

credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are

possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a

significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected

over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company

does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each

reporting date.

(i) Property, plant and equipment

Plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

Such cost includes the cost of replacing part of the plant and equipment. All other repair and maintenance costs

are recognised in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

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(i) Property, plant and equipment (continued)

Buildings – over 20 years

Plant and equipment - over 2 to 5 years

Office equipment - over 5 years

Furniture and fittings - over 5 years

Computer equipment - over 3 years

An item of property, plant and equipment and any significant part initially recognised is derecognised upon

disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its

use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the

net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss and other

comprehensive income when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at

each financial year end and adjusted prospectively, if appropriate.

(j) Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If

any indication exists, or when annual impairment testing for an asset is required, the Company estimates the

asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s

(CGU's) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual

asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or

groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is

considered impaired and is written down to its recoverable amount.

An assessment is made at each reporting date to determine whether there is an indication that previously

recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates

the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if there has

been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss

was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable

amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no

impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit

or loss and other comprehensive income unless the asset is carried at a revalued amount, in which case, the

reversal is treated as a revaluation increase.

(k) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the

arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement

is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset (or

assets), even if that asset is (or those assets are) not explicitly specified in an arrangement.

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers

substantially all the risks and rewards incidental to ownership to the Company is classified as a finance lease.

An operating lease is a lease other than a finance lease. Operating lease payments are recognised as an operating

expense in the statement of profit or loss and other comprehensive income on a straight-line basis over the lease

term.

16





(l) Trade and other payables

Trade and other payables are initially recognised at fair value and subsequently carried at amortised cost. Due to

their short-term nature they are not discounted. They represent liabilities for goods and services provided to the

Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to

make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are

usually paid within 30 days of recognition.

(m) Provisions and employee benefit liabilities

General

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past

event, it is probable that an outflow of resources embodying economic benefits will be required to settle the

obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some

or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised

as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is

presented in the statement of profit or loss and other comprehensive income net of any reimbursement.

Wages and salaries

Liabilities for wages and salaries, including non-monetary benefits, expected to be settled within 12 months after

the end of the period in which the employees render the related service are recognised in respect of employee's

services up to the end of the reporting period and are measured at the amounts expected to be paid when the

liabilities are settled. All other short-term employee benefit obligations are presented as payables.

Long service leave and annual leave

The Company does not expect its long service leave or annual leave benefits to be settled wholly within 12

months of each reporting date. The Company recognises a liability for long service leave measured as the present

value of expected future payments to be made in respect of services provided by employees up to the reporting

date using the projected unit credit method. Consideration is given to expected future wage and salary levels,

experience of employee departures, and periods of service. Expected future payments are discounted using

market yields at the reporting date on high-quality corporate bonds with terms to maturity and currencies that

match, as closely as possible, the estimated future cash outflows.

(n) Contributed equity

The membership fees were contributed by the initial members upon establishment of the Company. In accordance

with the Constitution, members are not entitled to any reimbursement or return of initial membership fees upon

ceasing to be a member.

(o) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and

the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the

fair value of the consideration received or receivable, taking into account contractually defined terms of payment

and excluding taxes or duty. The specific recognition criteria described below must also be met before revenue

is recognised.

Box office

Box office revenue is recognised on delivery of the performance.

17





(o) Revenue recognition (continued)

Fundraising, Sponsorship and Government grants

Non-reciprocal Fundraising, Sponsorship and Government Grant income are brought into account in the year

they are received. For reciprocal Fundraising, Sponsorship and Government Grant income, the income can be

deferred to a future year if there is a contract or agreement linking it to a specific future project or event.

Education revenue

Education revenue is recognised as revenue in the period which the service is provided. Income received in

advance is deferred and will be recognised in the following year.

Sponsorship in-kind

Sponsorship in-kind is brought to account as revenue in the year to which the equal and corresponding expense

relates. Consequently, the revenue and expenses are recognised in the same accounting year.

Commercial revenue - Dance classes

Dance classes are recognised as revenue within the period in which they are provided. Dance class tickets have

an expiry date of 6 months (2017: 6 months). The revenue from unused dance class tickets at year end is deferred

into the following year after an adjustment is made for tickets that will remain unused at the date of expiry.

Whilst 3, 5 and 10 pack dance class tickets expire after 6 months, dance class gift vouchers are subject to the new

3 year expiry legislation. The Company also sell performance vouchers which are limited to performances within

a specific year.

Commercial revenue - Other

Other commercial revenue includes studio hire and rental revenue from a pop-up cafe both of which are

recognised when earned. School holiday workshops are also classified as other commercial revenue and revenue

is also recognised when earned.

General gift vouchers

General gift vouchers are recognised as revenue within the period they are utilised. Gift vouchers have an expiry

date of 3 years. The income from unused gift vouchers are deferred into the following year.

Performance vouchers

Performance vouchers are recognised as revenue when they are sold. Performance vouchers must be used for

performances in a specific year.

(p) Finance income

Interest income

Interest income is recorded using the effective interest rate (EIR) method. The EIR is the rate that exactly

discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period,

where appropriate, to the net carrying amount of the financial asset.

(q) Income tax

The Company has not provided for income tax as it is exempted from income tax by virtue of section 50-5 of the

Income Tax Assessment Act, 1997.

18





(r) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables

or payables in the statement of financial position. Commitments and contingencies, if any, are disclosed net of the

amount of GST recoverable from, or payable to, the taxation authority.

Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows

arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is

classified as part of operating cash flows.

(s) Government grants

Government grants are recognised when there is reasonable assurance that the grant will be received and all

attaching conditions will be complied with.

When the grant relates to an expense item it is recognised as income on a systematic basis over the periods that

the related costs, for which it is intended to compensate, are expensed.

Any funding not spent on the planned activities agreed by both parties, at the start of the calendar year, is

required to be repaid unless other arrangements have been agreed to.

(t) Comparatives

Where necessary, comparative figures have been reclassified to conform with changes in presentation in the

current year.

19

3 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

Estimates and assumptions

Annual leave provision

Unused dance class tickets

The liability for annual leave provision is recognised and measured at the present value of the estimated future cash

flows to be made in respect of all employees at balance date. In determining the present value of the liability and pay

increase through inflation have been taken into account.

The revenue from unused dance class tickets at year end is deferred into the following year after an adjustment is

made for tickets that will remain unused at the date of expiry. Estimates of the future use of these tickets, based on

historical use of tickets, are applied in the calculation of this value.

The liability for long service leave is recognised and measured at the present value of the estimated future cash flows

to be made in respect of all employees at balance date. In determining the present value of the liability, attrition rates

and pay increases have been taken into account.

Long service leave provision




The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that

have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next

financial year, are described below. The Company based its assumptions and estimates on parameters available when

the financial statements were prepared. Existing circumstances and assumptions about future developments, however,

may change due to market changes or circumstances arising beyond the control of the Company. Such changes are

reflected in the assumptions when they occur.

The preparation of the Company’s financial statements requires management to make judgements, estimates and

assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying

disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could

result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future

periods.

20

4

2018 2017

$ $

Gross proceeds from fundraising appeals

Individual giving 2,718,299 2,107,750

Fundraising events 782,506 851,302

3,500,805 2,959,052

Less total costs of fundraising

Individual giving 116,478 214,090

Fundraising events 298,153 214,664

414,631 428,754

Net surplus obtained from fundraising 3,086,174 2,530,298

Application of funds

Forms of fundraising

Agents

2018 2017 2018 2017

$ % % %

Total cost of fundraising/ gross income

from fundraising

414,631/

3,500,805

428,794/

2,959,052 12% 14%

Net surplus from fundraising/ gross

income from fundraising

3,086,174/

3,500,805

2,530,298/

2,959,052 88% 86%

- Fundraising events include Dance Noir, Buon Ricordo Event and Commissioning Dinner.

Sydney Dance Company employs professional staff to manage and co-ordinate its fundraising activities and does not

engage commercial fundraising agents to secure donations.

Comparison by Monetary Figures and Percentages for the year ended 31 December 2018

*No disclosure is provided as all income received and expenditure incurred is in connection with the presentation of

Sydney Dance Company activities.

FUNDRAISING

Sydney Dance Company undertakes fundraising appeals throughout the year, it hold an authority to fundraise under

the Charitable Fundraising Act, 1991 (NSW). Additional information and declarations to be furnished under this Act

follow:

Details of aggregate gross income and total expenses of fundraising

Funds raised through individual giving and fundraising events support Sydney Dance Company activities.

Appeals held during the year ended 31 December 2018:

- General and Personal Appeals for the Commissioning Fund, Education Fund and Touring Fund and Capital

Campaign.




21

2018 2017

$ $

5

(a) Revenue

Box office and fees 1,488,180 1,590,102

Sponsorship - cash 206,285 234,714

Sponsorship in-kind 629,193 624,386

Fundraising 2,005,605 1,921,580

Capital campaign contribution 1,495,200 1,037,835

Commercial revenue 1,799,030 1,796,079

Education revenue 360,162 372,020

Government grants - cash (Note 4(e)) 3,462,077 3,521,046

Government grants in-kind rental (Note 4(e)) 937,937 840,016

Total revenue 12,383,669 11,937,778

(b) Other income

Interest income 31,033 28,494

Other income 47,430 12,904

Total other income 78,463 41,398

(c) Salaries and employee benefit expenses included in the statement of

profit or loss and other comprehensive income

Wages and salaries 5,922,988 5,605,174

Workers' compensation costs 186,830 98,652

Long service leave expense 77,534 54,911

Total employee benefit expense 6,187,352 5,758,737

(d) Depreciation expense included in the statement of profit or loss and

other comprehensive income

Depreciation of non-current assets 48,564 40,445

(e) Government grant income included in the statement of profit or loss and

other comprehensive income

Australia Council Grants:

MPAB grant as per tripartite agreement 2,687,076 2,649,976

Australia Council Support Arts Organisation Change Management & Growth - 90,000

Australia Council Touring Fund Grant 315,394 370,424

Department of Foreign Affairs and Trade Grant 40,000 40,000

Create NSW Grants:

MPAB grant as per tripartite agreement 278,828 273,900

Inkind Rental Assistance 937,937 840,016

NSW Touring Grant 80,307 96,746

Decant Program Support 60,472 -

Total Government Grants 4,400,014 4,361,062




REVENUE AND EXPENSES

22

2018 2017

$ $




6

Cash at banks and on hand 2,304,027 3,137,794

Short-term deposits 1,116,541 -

3,420,568 3,137,794

7

Trade receivables 56,000 349,368

Allowance for expected credit losses - (165,263)

56,000 184,105

Sundry debtors 14,357 10,108

Goods and services tax receivable 61,790 41,796

Other receivables 95,257 -

Prepayments 161,442 227,075

Carrying amount of trade and other receivables 388,846 463,084

At 1 January 165,263 -

Utilised in the year (165,263) -

Charge for the year - 165,263

At 31 December - 165,263

8

Stock 16,597 -

Cash at banks earn interest at floating rates based on daily bank deposit rates. Short-term deposits are made for

varying periods of between one day and three months, depending on the immediate cash requirements of the

Company, and earn interest at the respective short-term deposit rates.

Endowment Cash represents an amount of $256,214 received in 2018. In accepting this endowment the Company

has agreed to utilise the proceeds of this grant to create the Hephzibah Artist Development Program. The Company

is able to utilise $25,000 per annum over 10 years. The first $25,000 has been released in 2018 and the final

balance will be released in 2028.

Movements in the provision for expected credit losses were as follows:

TRADE AND OTHER RECEIVABLES

CASH AND SHORT-TERM DEPOSITS

INVENTORY

23

Plant and

equipment

Office

equipment

Furniture

and fittings

Computer

software Total

$ $ $ $ $

9

Cost

At 1 January 2018 122,518 81,903 19,154 24,415 247,990

Additions 44,445 22,304 29,451 - 96,200

At 31 December 2018 166,963 104,207 48,605 24,415 344,190

Accumulated depreciation

At 1 January 2018 75,307 62,311 8,232 24,415 170,265

Depreciation charge for the year 26,583 16,659 5,322 - 48,564

At 31 December 2018 101,890 78,970 13,554 24,415 218,829

Net book value

At 31 December 2018 65,073 25,237 35,051 - 125,361

At 31 December 2017 47,211 19,592 10,922 - 77,725

2018 2017

$ $

10

558,339 550,747

11

Current

354,506 59,537

162,210 238,838

516,716 298,375

(a) Trade payables

(b) Other payables

Reserve Incentive Scheme

Trade payables are non-interest bearing and are normally settled on 30 day terms.

PROPERTY, PLANT AND EQUIPMENT

Other payables are non-trade and non-interest bearing.

The funds received under the Reserve Incentive Scheme Agreement together with the Company’s contribution

are held in escrow for a period of 15 years ending on 2 April 2028 and are subject to the terms and conditions of

the Reserve Incentive Scheme Agreement between the Australia Council, Arts NSW and the Company. The

funds have not been used to secure any liabilities of the Company. The funds consist of short term deposits of

$558,339 (2017: $550,747). No funds were required to be paid into this account by the Company in 2018 (2017:

nil). The increase in the fund balance relates to interest received from the short-term deposits.

TRADE AND OTHER PAYABLES

Trade payables (a)

Other payables (b)




RESERVE INCENTIVE SCHEME

24

2018 2017

$ $

12

Dance class deferred revenue 151,537 128,657

Education activity deferred revenue 47,104 42,324

Development activity deferred revenue 120,000 120,000

Performance related deferred revenue 150,975 134,115

Gift voucher deferred revenue 13,162 -

482,778 425,096

13

Current

Annual leave 118,132 162,062

Long service leave 242,238 173,387

360,370 335,449

Non-current

Long service leave 26,807 38,631

14

Current

Australia Council touring grant advances 36,926 352,320

Department of Foreign Affairs and Trade grant advance - 40,000

NSW Government touring grant advances 94,902 -

Total government grants deferred 131,828 392,320

Movement in government grants

At 1 January 392,320 548,586

Received during the year 4,139,522 4,204,796

Released to the statement of profit or loss and other comprehensive income (4,400,014) (4,361,062)

At 31 December 131,828 392,320

15

Membership fees 524 524

16

At 1 January 1,680,573 938,000

Transfer from retained earnings in relation to:

Capital reserve 1,036,179 729,826

Reserve incentive scheme 7,592 12,747

Artist development program fund 256,082 -

Reallocation from capital reserve (798,395) -

At 31 December 2,182,031 1,680,573




CONTRIBUTED EQUITY

The capital reserve represents income received relating to the capital campaign fund less any specific expenses

incurred related to the move to Ultimo and the refurbishment of the Walsh Bay premises.

GOVERNMENT GRANT ADVANCES

The membership fees were contributed by the initial members upon establishment of the Company. In accordance

with the Constitution, members are not entitled to any reimbursement or return of initial membership fees upon

ceasing to be a member.

DEFERRED REVENUE

EMPLOYEE BENEFIT LIABILITIES

RESERVES

25

chenefr

Stamp

17

(a)

(b ) Contingencies

18

Transactions with related parties

Donations:

Total donations from directors were $534,000 for 2018 (2017: $298,550).

19

(a)

Current DirectorsKaren Moses

Pamela Bartlett Director

Jillian Broadbent AC Director

Peter Brownie Director

Brett Clegg Deputy Chair

Kiera Grant Director

Mark Hassell Director

Catriona Mordant AM Director

Beau Neilson Director

Emma-Jane Newton Director

Chrissy Sharp Director

Carla Zampatti AC Director

Executives

Anne Dunn Executive Director

Rafael Bonachela Artistic Director

Sean Radcliffe

(b)

2018 2017$ $

Total compensation 777,653 728,184

(c)

Details of Key Management Personnel

KEY MANAGEMENT PERSONNEL

Chair

Deputy Executive Director, Company Secretary

Non-executive Directors of Sydney Dance Company do not receive remuneration for serving on the Board of

Directors.

Key Management Personnel

Other transactions and balances with Key Management Personnel

Donations from directors are disclosed in Note 18. There are no other transactions or balances with key management

personnel.




RELATED PARTY DISCLOSURES

COMMITMENTS AND CONTINGENCIES

Leasing commitments

Commitments

The Company has entered into 2 operating leases with Arts NSW concerning the lease of their premises, with lease

terms between one and five years. Minimum future commitments with Jones Street and Wattle Street at year end are

$26,622 and $62,118 respectively (2017: $nil).

The directors are not aware of any contingent liabilities as at 31 December 2018 (2017: none).

26




20

There have been no significant events occurring after the reporting period which may affect either the Company’s

operations or results of those operations or the Company’s state of affairs.

EVENTS AFTER THE REPORTING PERIOD

27

(a)

(b)

(c)

(d)

(e)

Marketing and Commercial Activities Committee

Nomination Committee


Governance statement


This statement outlines the Board and Committee structures that were in place throughout the financial year.

Board of Directors

Audit and Risk Committee

The board is responsible for the overall corporate governance of the Company including its corporate planning,

establishing goals for management and monitoring achievement of these goals. The board met 7 times in the last year.

To assist in the execution of its responsibilities the board has established five standing committees: the Audit and

Risk Committee, the Marketing and Commercial Activities Committee, the Nominations Committee, the Capital

Campaign Committee and other Development related committees as required.

The board currently has twelve members. Two new directors have been added to the board as from March 2018. The

names of board members at the date of this statement are set out in the Director’s Report on page 2 of these financial

statements. Established skills represented on the board include finance, marketing, operations, stakeholder

management and fundraising. The Board maintains a skills matrix to inform new appointments.

The Audit and Risk Committee is responsible for reviewing, advising and evaluating the Company’s financial

controls, procedures and policies including the review of annual budgets, management accounts and forecasts. The

committee reviews the annual audit plan and statutory accounts. The committee also reviews and evaluates key risks.

The Nominations Committee meets to identify, propose and discuss the skills and suitability of persons for

nomination and election to the Sydney Dance Company board of directors. The committee also has the responsibility

of identifying skills gaps in the current Sydney Dance Company board and finding suitable replacements thus

ensuring an appropriate combination of skills, experience and influence.

The committee meets bi-monthly. Currently it is comprised of Peter Brownie (Audit and Risk Committee Chair),

Karen Moses (Board Chair), Kiera Grant, Chrissy Sharp and Jillian Broadbent (Board members). The Executive

Director and Finance Manager attend the meetings.

The Marketing and Commercial Activities Committee is responsible for strategic guidance in relation to marketing,

communications plans and commercial activities. This function includes post season reviews and recommendations

for future marketing campaigns, corporate sponsorship and other commercial revenue generating activities.

The committee meets on a quarterly and an as needs basis. Currently is comprised of Mark Hassell (Committee

chair), Pam Bartlett, Brett Clegg, Catriona Mordant, Emma-Jane Newton (Board members). The Executive Director,

Artistic Director, Finance Manager, Development Director, Education and Access Director and Marketing Manager

attend the meetings.

Development Committees

The committee meets twice a year and on an as-needs basis. Currently it comprises Karen Moses (Chair), Beau

Neilson, Carla Zampatti, Catriona Mordant (Board members). The Executive Director attends the meetings.

Capital Campaign Committee – this committee plans for the required raising of funds relating to the redevelopment of

The Wharf Precinct by the state government. This committee currently meets on a quarterly or as needed basis. The

committee currently consists of Julian Knights (External Chair, ex-Chair of the Board), Karen Moses (Board Chair),

Kiera Grant, Brett Clegg (Board members), Andrew Messenger (ex-Chair of the Board), Sandra McCullagh, Ed

Gilmartin, , Executive Director, Development Director.

Dance Noir Committee - Sydney Dance Company’s major fundraising event Dance Noir is managed by its own

committee. In 2018 the committee was comprised of Board member, Pamela Barlett and additional external expert

members. This committee meets regularly in the six month lead up to the event.

28


31

Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au

Independent Auditor's Report to the Members of Sydney Dance Company

Opinion

We have audited the financial report of Sydney Dance Company (the Company), which comprises the

statement of financial position as at 31 December 2018, the statement of profit or loss and other

comprehensive income, statement of changes in equity and statement of cash flows for the year then

ended, notes to the financial statements, including a summary of significant accounting policies, and the

directors' declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the Australian

Charities and Not-for-Profits Commission Act 2012, including:

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

b) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Australian Charities and Not-for-Profits Commission Regulation 2013.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under

those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial

Report section of our report. We are independent of the Group in accordance with the ethical

requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics

for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia.

We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the

audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Information Other than the Financial Report and Auditor’s Report Thereon

The directors are responsible for the other information. The other information obtained at the date of this

auditor’s report is the directors’ report accompanying the financial report, but does not include the

financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not

express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and,

in doing so, consider whether the other information is materially inconsistent with the financial report or

our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true

and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements

and the Australian Charities and Not-for-Profits Commission Act 2012 and for such internal control as

the directors determine is necessary to enable the preparation of the financial report that gives a true

and fair view and is free from material misstatement, whether due to fraud or error.


In preparing the financial report, the directors are responsible for assessing the Company’s ability to

continue as a going concern, disclosing, as applicable, matters relating to going concern and using the

going concern basis of accounting unless the directors either intend to liquidate the Company or to

cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free

from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with the Australian Auditing Standards will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to influence the economic decisions

of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional

judgment and maintain professional scepticism throughout the audit. We also:

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

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

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

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 32


Report on the requirements of the NSW Charitable Fundraising Act 1991 and the NSW Charitable Fundraising Regulations 2015

We have audited the financial report as required by Section 24(2) of the NSW Charitable Fundraising Act 1991. Our procedures included obtaining an understanding of the internal control structure for fundraising appeal activities and examination, on a test basis, of evidence supporting compliance with the accounting and associated record keeping requirements for fundraising appeal activities pursuant to the NSW Charitable Fundraising Act 1991 and the NSW Charitable Fundraising Regulations 2015.

Because of the inherent limitations of any assurance engagement, it is possible that fraud, error or non-compliance may occur and not be detected. An audit is not designed to detect all instances of non-compliance with the requirements described in the above-mentioned Act and Regulations as an audit is not performed continuously throughout the period and the audit procedures performed in respect of compliance with these requirements are undertaken on a test basis. The audit opinion expressed in this report has been formed on the above basis.

Opinion

In our opinion:

a) the financial report of the Company has been properly drawn up and associated records have been properly kept during the financial year ended 31 December 2018, in all material respects, in accordance with:

i. sections 20(1), 22(1-2), 24(1-3) of the NSW Charitable Fundraising Act 1991;

ii. sections 10(6) and 11 of the NSW Charitable Fundraising Regulations 2015;

b) the money received as a result of fundraising appeals conducted by the Company during the financial year ended 31 December 2018 has been properly accounted for and applied, in all material respects, in accordance with the above mentioned Act and Regulations.

Ernst & Young

Lisa Nijssen-Smith

Partner

Sydney

24 April 2019

33

Documents

SYDNEY DANCE COMPANY › public › b76… · Sydney Dance Company presented 14 different works across the year including nine commissioned new choreographic works which were supported