2014ANNUAL REPORT

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Open Channel acknowledges the generous support of

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CONTENTS

28 - A VOICE ON SCREEN FOR ALL VICTORIANS

29 - Short & Sharp Regional

29 - Framed Regional

30 - Regional Short Courses

31 - Yarnin

32 - Staffing Changes

32 - Governance

33 - FINANCIAL STATEMENTS

34 - Treasurers Report

35 - Directors’ Declaration

36 - Auditor’s Independence Declaration

37 - Independent Audit Report

39 - Statement of Comprehensive Income

40- Statement of Financial Position

41 - Statement of Changes of Equity

42 - Statement of Cash Flows

43 - Notes to the Financial Statements

47 - Statutory Reporting Requirements

6 - Open Channel’s Vision

8 - Board of Directors

10 - Chair & Executive Directors’ Statement

12 - Testimonials

14 - CREATING PATHWAYS TO THE SCREEN INDUSTRY

15 - Raw Nerve Production Initiative

16 - Framed Industry Seminars

17 - Short & Sharp Pitching Competition

18 - Generation Next Online Video Conference

19 - Online Video Awards (OVAs)

20 - NITV Production Initiative

21 - ANZAC Production Initiative

21 - Social Media & Website

22 - WHERE CREATIVE INDIVIDUALS BECOME INDUSTRY PROFESSIONALS

23 - Advanced Diploma of Screen and Media (scriptshop)

24 - Certificate III in Media

25 - Short Courses

25 - Customised Training

26 - Student Achievements

27 - Industry Engagement

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OPEN CHANNEL’S VISIONOpen Channel’s mission is to inspire people with the passion, skills and energy to make a career in the screen industry.

The next generation of screen content creators expects Open Channel to be an organisation with an intimate knowledge of how the industry works and the capacity to guide them along viable pathways toward professional positions in the screen industry. We are proud that Open Channel consistently rises to that challenge.

Open Channel’s role is to assess and respond to employment skill gaps within the screen industry in order to develop and implement programs and courses that address those needs.

The Screen Industry understands and trusts Open Channel’s ability to achieve these outcomes in a way that speaks their language and channels highly skilled, well-developed, talented individuals into professional outcomes. An industry in constant generational change values this avenue to professional development as much as we value our responsibility to provide it.

The pool of Open Channel alumni also provides a resource to draw on for Open Channel’s community partnerships and generates the capacity to produce and tell the stories that shape our cultural identity.

In short, Open Channel is skilling the next generation of content creators.

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BOARD OF DIRECTORS

Ms Caroline Waters (Chair)

Caroline Waters spent 8 years in the UK working as a producer/director for Mentorn Films, Mushroom Records and other production companies making youth, factual entertainment and children’s programs for

Channel 4 and ITV. Back in Australia she worked on a range of drama, factual and comedy programs for Channels 7 and 9 and made documentaries for SBS and ABC. Some documentary credits include Festivals and Going Off (SBS), AntarticArt and Syllable to Sound (ABC). While making the documentaries Caroline also worked as a Creative Director for a multinational brand strategy company for 6 years. Caroline graduated from VCA almost twenty years ago and is now focused on developing features and documentary series. She has mentored and taught at Melbourne University, Open Channel and in Tasmania with Wide Angle and Screen Tas. Aside from program making Caroline’s passion is empowering people to work professionally in the industry and fulfil their potential.

Ms Lindsay Lipson (Secretary)

Lindsay is a screen industry professional with over 25 years experience. Prior to migrating from South Africa in 1998, she production managed/line produced a number of feature films, television series, movies of the

week, documentaries and TVCs. Having worked as project manager for Screen Australia (formerly the Film Finance Corporation) and investment and programs manager at Film Victoria, Lindsay is highly skilled in managing, coordinating and administrating funding applications and projects within Government organisations as well as in private enterprise. Lindsay was a founder member of the National Green Screen Committee and held the position of Chairperson in 2010. She is a great supporter of social enterprise and maximising improvements in human and environmental wellbeing.

Mr Frank Druda (Treasurer)

Frank is a member of the Institute of Chartered Accountants in Australia with 11 years experience in the accounting and finance industry. He is currently an Associate Director at Blue Rock Chartered Accountants and

previously worked in the UK and a Business Analysis for the Royal Bank of Scotland. Frank is a business owner and has various experiences in the challenges a business/organisation may face operationally and financially. He consults a number of businesses in his current role in which he sits on the Board of. He also specialises in financial modelling and reporting systems that assist organisations in decision making.

Mr Simon Britton

Simon is publisher of Australia’s leading online screen content website and ebulletin Screenpro. Before starting his previous website, MediaWave in 2008, he worked for the Australian Film, TV and Radio School’s Centre for

Screen Business, focusing on emerging business models for online screen content. He has consulted to, or written papers for the South Australian Film Corporation, Screen Australia, Film Victoria and The Australian Film TV and Radio School. He’s delivered workshops for SPAA, The Media Resource Centre, Open Channel, RMIT, Monash University, UCLA and AFTRS. In association with Fandependent, is currently running workshops on crowd funding and online distribution. He recently concluded a three-year term on the Board of the Australian Screen Institute (AFI). Simon consults on film projects and is currently working with a range of content creators to develop strategies for online delivery of their work. In a previous life, he worked as a radio producer and presenter for the ABC, writer for The Age and a music coordinator for feature film.

Dr Lisa Dethridge

Lisa Dethridge researches Virtual Worlds, social networking and other new media forms. She writes for film, television, theatre, radio, print and the internet in Australia and the United States.

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She has worked for major and independent studios and networks including Fox, Warner, Working Title, MTV, CBS, NBC, CNN, Granada, Dempa Japan, SBS, The Australian Film commission, 3RRR radio, ABC Australia, TV New Zealand and Chapel-off-Chapel Theatre. She has exhibited art in Melbourne and New York and written for several magazines including a regular column for Vogue Australia. She has researched communications for the United Nations, NASA, Telstra and Telecom Australia and taught at New York University, the American Film Institute, UCLA, the Australia Film TV and Radio School, RMIT and the University of Melbourne She has a PhD in Media Ecology from New York University, and is the author of Writing Your Screenplay, published by Allen and Unwin.

Ms Jenny Lalor

Jenny Lalor has been working in legal and business affairs in film and television for more years than she cares to admit. Whilst living in London between 1990 and 2000, she worked for the BBC, Carlton

Television and Tiger Aspect Productions (including on Billy Elliot and The Animated Mr. Bean). Returning to Melbourne in late 2000, she has worked on a variety of film and television projects, including Jindabyne, Coffin Rock, Crawlspace, CJ The DJ, Saddle Club 3, RocKwiz, Wilfred and a number of Lonely Planet travel series. She now has her own practice specialising in entertainment law and provides executive producing services on a range of children’s projects, including the pre-school animation series DirtGirlWorld, co-produced by dirtgirlworld Productions and Decode Entertainment for the ABC, BBC and CBC. She was a Television Councillor on the Screen Producers Association of Australia for over five years.

Mr Seph McKenna

Handed his first Hollywood Film Script at the age of fifteen (When Harry Met Sally, 1989) he has been reading film scripts ever since, for the last ten years professionally. Seph studied

Philosophy and Political Science in his undergraduate degree and then completed a Juris Doctor in Law, all at Boston College. After graduating, Seph worked as a Congressional Aide for four years. Later he worked at Village Roadshow Pictures in LA, where he was stationed in the script development and assessment department, working extensively on script evaluation, coverage and script notes. In 2006 he joined Roadshow Films, Australia. Roadshow’s mandate is to cultivate outstanding Australian stories

with broad audience appeal. The various films that Roadshow have or will release since Seph has been there include, Paper Planes (2015) Rover (2014), These Final Hours (2014), Felony (2014), Wolf Creek 2 (2014), Red Obsession (2013), Goddess (2013), Red Dog (2011), Bran Nue Dae (2010), Beautiful Kate and Mao’s Last Dancer (both 2009).

Mr Chris Ryan

Chris Ryan is a 30-year veteran of the communications industry. He served 10 years in television at Channel 7 in Sales and Commercial Production, overseeing the segment and commercial co-ordination of the unique experience that was World

of Sport. A further 20 years followed in film as Advertising and Publicity Manager at Greater Union. This involved the gamut of tasks associated with the running of cinemas as well as choreographing star tours and designing and managing advertising and marketing campaigns. His activity with Open Channel began in 2004 as a volunteer and he assumed a Board position in 2006.

Ms Leslie Wood

Leslie has a particular interest in organisations that support the career of arts practitioners along with many years experience in the development and governance of sustainable businesses that

involve and revolve around people. Leslie has served on the Open Channel Board since February 2004, and has held the position of Chair since August 2004. Her relationship with Open Channel extends further back, having previously been involved with Open Channel as a consultant and project advisor. A community development consultant and former Lecturer in Management at Swinburne University of Technology in the Faculty of Higher Education and Centre for eBusiness & Communication, Leslie is also a former Councillor in the Shire of Yarra Ranges. Leslie has served on the Victorian Government Adult, Community & Further Education Board, as Chair of the ACFE audit committee and is currently a member of Council at OCAV (Old Colonist’s Association of Victoria). She is a graduate member of the Australian Institute of Company Directors.

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CHAIR & EXECUTIVE DIRECTORS’ STATEMENT

Marc Gracie, Executive Director and Caroline Waters, Chair of the Open Channel Board

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2014 has been a standout year for Open Channel. We have now completely settled into our new home at

Docklands Studios where the fruits of being on the industry’s doorstep are bolstering our engagement with

the broader industry, creating numerous opportunities and consolidating our mission of creating pathways for

emerging filmmakers into the professional industry and pointing them towards a greater focus and rigor in their

creative endeavours.

Open Channel has positioned itself as the “go to” organisation for young and emerging filmmakers to learn,

engage with and gain job opportunities in the Victorian Film, Television and online industries.

Open Channel sits between post-tertiary training and industry opportunities. Programs such as Raw Nerve with its

broadcast outcome on ABC2, Indigenous filmmaker development through NITV and the Yarnin training/production

programs, the Winners and Losers Director Masterclass and our ScriptShop accredited course are just some of

the programs that both define us and ensure that we engage in the training of early career practitioners through

our skills based programs from editing and production management courses through to young filmmakers’ school

holiday production classes. All this creates a vibrant, creative, educative organisation.

To top off our year the inaugural Online Video Awards and Conference were a huge success bringing a whole new

constituency of young, creative, exciting filmmakers to our organisation. These innovations send a message to

the online content creators that we are forward thinking and ready to help them develop their future creative and

production careers.

In addition to all this, our achievements extend to our administrative operations. Our books continue to be

balanced and all our internal, accounting, ticketing and membership services have been streamlined ensuring

strong, efficient financial integrity.

That said, the projected withdrawal of key Screen Australia funding at the end of 2015 has caused much

consternation within the organisation but it has also given us great cause to focus our efforts as we continue

to seek further and more diverse sources of funding from other community based areas with innovative and

community based new programs to continue our growth and stability.

We count the success of our campaign to extend the initial date for the cessation of Screen Australia funding

from 2014 to 2015 as a testament to Open Channel’s ongoing success and viability. It has provided us with the

time to rally our resources and enabled us to engage in some sound strategic re-positioning and forward planning.

Our success in receiving funding from Screen Australia Enterprise is a further boost. It supports our agility as an

organisation and greatly improves our ability to navigate our way through this difficult time.

Our confidence in our ability to survive is further supported by large numbers of new memberships as well as

increased audience and application numbers.

We intend to broaden our production/training initiatives for 2015, leveraging the success of our inaugural Online Video

Awards, our strong relationship with Google/YouTube and a series of grants from federal and state governments

to create a series of broadcast quality short films for the 2015 Centenary of ANZAC Commemoration. This series,

Bringing Our Stories Home will provide training and broadcast outcomes for new documentary makers whose

work will be broadcast on the ABC iView platform.

Marc Gracie Caroline WatersExecutive Director Chair

Open Channel Open Channel Board

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TESTIMONIALS“Open Channel was an industry leader in 2014, with their Online Video Conference providing critical information for filmmakers to navigate the changing landscape of production and distribution in the digital age, and the awards bringing together some the best established and new talent in the digital area. The Advanced Diploma is also ground-breaking in taking writers and producers through a rigorous development process within a business context..”Ros Walker, Producer / Open Channel ScriptShop Tutor

“In July - August 2014 I was attached to director Craig Irvin during the pre-production and shoot of the second block of episodes of the ABC series Nowhere Boys (Season Two) through Open Channel’s Attachment Program.Across a period of 6 weeks I was given the rare and much prized opportunity to observe an established writer/director during all stages of his work on an already successful, high quality series.At this stage in my career, this experience more than any other has expanded my grasp and knowledge of television and drama production, bringing me closer to directing an episode on a quality series as well as to my long term career objective: to be a working director.”Corrie Chen – 2014 Industry Attachment Program Recipient

“I never went to film school. I spent 13 years on the other side of the camera telling stories as an actor, and several years directing work for live performance and video. When I was ready to make the leap to becoming a narrative filmmaker, it was something that I was passionate about but felt ill-equipped for. Open Channel gave me the information, the grounding in reality, the confidence and the ambition to dive on in there and make the work. In the year I studied with them, I wrote a feature film script and from there had the support, courage and perspective to create my first narrative short. Open Channel took me on the journey from being an aspiring filmmaker to being an actual filmmaker.” Ming-Zhu Hii - 2014 ScriptShop Participant

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14“Open Channel’s Raw Nerve initiative gave me a great opportunity to create my first documentary short - the support to create this film was wonderful. Since completing this short film, Open Channel gave me the opportunity to expand my skills within a television model, and be mentored by writer Chris Thompson to explore World War 1 stories in a new way.”Sari Braithwaite – Raw Nerve Filmmaker 2014

“Open Channel is now the most forward-looking of all the Screen Network organisations in Australia. In 2014, my company partnered with Open Channel to run the Online Video Awards (the OVAs) – the first event of its kind in Australia to recognise the exciting work being done by content creators in the online space. I believe Open Channel is becoming the organisation that the Victorian screen industry looks to for leadership in the fast- changing world of online video.”Simon Britton - Co-Founder of the Online Video Awards

“I was fortunate enough to be attached to one of Melbourne’s most prolific screen Producers, Stephen Luby, through Open Channel’s attachment program - placed at the centre of the epic ABC mini series The Secret River. This experience was invalauable, and helped me make the transisiton from a “have a go” guerilla filmmaker to a well connected, working Producer. Following my attachment with Ruby Entertainment, I was then given the opportunity to work as the series producer on Open Channel’s Bringing Our Stories Home ANZAC Centenery commemorative production series, which has been a big step forward in my career. ”Monte Macpherson - 2013 Attachment Program Recipient, Series Producer Bringing Our Stories Home

TESTIMONIALS

“Over the past couple of years our association and our working relationship with Open Channel and NITV has been an amazing journey into the film world. An open and transparent partnership has been forged through our collaborations and friendships, that have developed into a beautiful workable concept of ideas that has Produced a body of work and stories that is reflective of community. With the broadening of our horizons and parameters we have sought to develop further Indigenous community based stories that engage new conceptual thought processes, as well as maintaining age old traditions through new lenses, that encapsulate the worlds oldest living continuum, for which we are very grateful. Robbie Bundle - Melbourne Community Indigenous Filmmaking Collective, 2014 NITV Production Initiative Filmmaker

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CREATING PATHWAYS TO THE SCREEN INDUSTRY

Open Channel’s Professional Development events and initiatives provide the space to bring the

emerging sector together with the professional industry, and to develop new talent and projects.

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RAW NERVE PRODUCTION INITIATIVE

Raw Nerve is a Screen Network (SN) national production initiative supported by Screen Australia. Open Channel offers a select number of emerging Victorian filmmakers the opportunity to make a high quality, low budget short film with support from leading industry experts. In recent years Open Channel has developed Raw Nerve into a highly prized pathway for emerging filmmakers by providing an experienced Producer in the role of Supervising Producer, and through significant in-kind support from Deluxe DPP, Chameleon Casting, and Micsound. During April and may this year, our 2013 Raw Nerve short films screened on ABC 2 consistently rating at least 70,000 viewers, with around 9,000 views on iView per film. ABC 2 and the Screen Network have confirmed a new contract for broadcast of the 2014 Raw Nerve films that will be broadcast in 2015.

The filmmakers and their projects selected for the 2014 Raw Nerve initiative are:

SMUT HOUNDSSari Braithwaite (Writer / Director) & Britt Arthur (Producer)In the late 1960s, the majority of films screened in Australia were censored in some way or another. When young Sydney Film Festival director David Stratton attempted to program a Swedish film that the censors believed contained ACTUAL sex, a scandal erupted. In a mash-up of never-before-seen banned clippings, SMUT HOUNDS tells the story of how seventy-seven seconds of celluloid scandalised a government and transformed Australian cinema.

A CLEAN BREAKJay Adshead (Writer / Director) & Lynnette Lai Suet Lynn (Producer)Breaking up with your vacuum cleaner can be a messy affair. When Brian is gifted a robot vacuum cleaner from his Mother, it seems to be just the thing to help him clean up his act: his floors are clean, there’s milk in the fridge – and now - he’s met the girl of his dreams. Though somebody is not happy about Brian’s newfound love, someone who will stop at nothing to put an end to it all. Could it be his new girlfriend’s colleague? Or does Brian’s vacuum cleaner harbor more than just obsessive, cleaning tendencies?

THE CUCKOOFrancis Rule (Writer / Director) & Andrea Distefano (Producer)The warm silence of a family home is broken when a desperate man steals his way in. Calculated and methodical, he leaves his mark.

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FRAMED INDUSTRY SEMINARSFramed Industry Seminar Series in Metropolitan Melbourne examine aspects of the screen industry including new media, career pathways and professional development, crew roles and creating screen-based content. Framed aims to support the professional development of emerging and independent screen practitioners by providing practical advice and knowledge within a setting that enables an open discussion of industry issues, and fosters a sharing of experience and industry networking. Framed is supported by Film Victoria.

In 2014 we delivered the following forums:

1. THE MAKING OF A LOW BUDGET FEATURE FILM - I AM EVANGELINE (13th March 2014)Producer Jonathan Roper and writer/director Christine Rogers shared their experiences and discussed the process of creating their low budget, independent sci-fi feature film, I Am Evangeline.This session looked at the challenges involved in funding, developing, making and marketing an independent feature film in the Australian market. I Am Evangeline was one of 13 projects to be developed through Open Channel’s ScriptShop in 2012. The film has an expected release date in the first half of 2015.

2. SPA EARLY CAREER PRESENTATION (8th April 2014)Open Channel invited Matthew Deaner, Executive Director from Screen Producers Australia to present a briefing session about the work they do and how all producers can be involved in shaping the future of our industry. Dan Lake (SPA Ones To Watch, 2013) also spoke at this session.

3. SHOOTING ON A SHOESTRING AT ST KILDA FILM FESTIVAL (28th May 2014)Filmmaking equipment has never been more affordable and accessible; funding however is not always so easy to come by. Four filmmakers who have created successful short films shared their tips and tricks to making a high quality, compelling short film on a small budget and getting it seen. They discussed the process of producing, marketing and distributing a short film in Australia, and the various avenues and opportunities that exist to help emerging filmmakers get their short film onto the screen. Panellists included Producer Andrea Distefano (The Globe Collector, Bran Nue Dae), Producer / Director Donna McRae (Johnny Ghost, Lonesome Dog Blues), Producer Tom Davies (Dinner for Three) and Producer / Director Summer DeRoche (The Globe Collector, Small).

4. THESE FINAL HOURS: IN CONVERSATION WITH ZAK HILDITCH (17th November 2014)We talked with Writer / Director Zak Hilditch and Producer Liz Kearney on the making and success of his critically acclaimed first feature film, These Final Hours. We discussed the challenges of feature filmmaking in Australia and explored the journey taking the project from short film to feature.

5. THE BLOOD LUST AND TRUE GRIT OF JON HEWITT AT MONSTER FEST (25th November 2014)This was an incredible opportunity to look in depth at the career of one of this country’s most committed and passionate genre fiends, Jon Hewitt. Self financed, privately financed, government financed, not financed. Sold internationally, debuted internationally, from MUFF to TIFF and almost everywhere in between.

For information on regional Framed seminars, see page 31.

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SHORT & SHARP PITCHING COMPETITION

In 2014, we delivered three heats of our annual Short & Sharp Pitching Competition. Short & Sharp calls for participants to submit a one page synopsis for a screen based project, with the selected finalists invited to pitch their idea to a panel of industry professionals in front of an audience. Producer Angela Lee facilitated the competition and mentored the applicants through the pitching process. Short & Sharp is supported by Film Victoria.

Regional heats were held in Warrnambool and Shepparton (see page 29 for more information on Short & Sharp regional) and the metropolitan final was held on the 28th September, 2014 at The Kino Cinemas, Melbourne.

JUDGESMike Cowap – Investment Manager, Screen AustraliaClea Frost – Script Development Manager, Film VictoriaLeanne Tonkes – Producer, My Mistress

This year’s winner was Emma Watts, with her pitch for Triple D. Emma received $500 in prize money, and went on to pitch her project at the SPA / Holding Redlich “Pitch to the Pros” national pitching competition at the SPA Screen Forever Conference in November.

The Audience Award went to Carol Cummings for her pitch, Happy Valley.

2014 Short & Sharp winner, Emma Watts with Judges Mike Cowap, Clea Frost and Leanne Tonkes

2014 Short & Sharp Audience Award winner, Carol Cummings with Open Channel Executive Director, Marc Gracie

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GENERATION NEXT: ONLINE VIDEO CONFERENCE

The Generation Next: Online Video Conference was held at Docklands Studios on the 14th and 15th October 2014,

exploring the changing nature of visual storytelling and connecting and distributing to audiences in

a digital, connected, interactive, immersive and multi-screen environment.

Sessions topics included building a successful YouTube Channel and generating income, finding and developing

stories that work for the online space, establishing a viable brand, building a community for you and your

project, commissioning online content, crowdfunding, self distribution and keynote speech from YouTube.

Generation Next: Online Video also encompassed the

Australian Online Video Awards (OVAs), which took place on the first night of the 2-day program.

The International Specialised Skills Institute (ISS Institute) and sponsor Victorian Government’s Department of Education and

Early Childhood Development (DEECD) facilitated an International Fellowship in 2014 to bring YouTube Business Development Executive

Elizabeth Ferdon to Australia to share international best practice knowledge and skills in online video creation and audience building.

During the Fellowship Ms. Ferdon provided students, educators and business people in Melbourne and Sydney with an in depth exploration of

the changing landscape for online video and its applications, and was the Keynote Speaker at Open Channel’s Generation Next Online Conference.

The visit achieved a closer collaboration between Open Channel and YouTube, which will continue to develop future opportunities.

GENERATION NEXT

ONLINE VIDEOCONFERENCE 14-15 OCTOBER 2014

DOCKLANDS STUDIOS MELBOURNE

PRESENTED BY SUPPORTED BY

@OPEN CHANNEL #GenNext

www.openchannelorg.au | info@openchannel.org.au

476 Docklands Drive DOCKLANDS VIC 3008

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AUSTRALIAN ONLINE VIDEO AWARDS (OVAS) INAUGURAL EVENTThe national awards, presented by Open Channel and ScreenPro.tv, aimed to recognise the work of online video content makers in Australia.

Significant career-making prizes were on offer, including a trip to YouTube’s Creator Space in Los Angeles to learn from the world leaders in online video production and marketing, supported by YouTube.

The winners were announced on Tuesday 14 October at Docklands Studios, Melbourne, in a celebration showcasing the winners work in a fun and interactive way.

Open Channel’s Executive Director Marc Gracie said “For the past few years Open Channel has responded to the emerging Victorian screen sector with courses and programs that grow creativity and skills using online distribution models. Finding an audience online and testing your creative instincts can be immediate, fruitful and help develop solid professional screen careers. These awards allow us to evangelize the net as the predominant screen development tool.”

The entry and judging process were coordinated by ScreenPro.tv, a website launched by Founder Simon Britton to provide screen content creators with a platform to develop audiences for their work.

“At ScreenPro.tv, we’ve been helping content makers connect with audiences for the last five years. In that time, we’ve seen a massive increase in the quality and quantity of online episodic video. Everyone entering the OVAs will have a special opportunity to have their work viewed by a panel of industry leaders. The OVAs will make a huge difference to industry awareness of the great work being done by Australian content creators,” Mr Britton said.

The awards celebration took place as part of Open Channel’s ‘Generation Next’ conference.

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NITV PRODUCTION INITIATIVEIn early 2013, broadcaster National Indigenous Television (NITV) called for applications to create 152 short films nationwide made for and produced by Indigenous filmmakers for primetime broadcast. Open Channel responded to the call with a successful pitch that secured six of the documentaries packaged into a training and production course. The films have now been completed and delivered and are of high quality. The six films produced through Open Channel’s New Aboriginal Voices filmmaker training program demonstrates the organisation’s commitment to supporting the development of new Aboriginal filmmaking talent here in Victoria. The program was taught by a range of industry professionals including the acclaimed Cinematographer of Beneath Clouds, Allan Collins ACS, and editor Peter Worland.

The NITV initiative was renewed in 2014. The filmmakers are:• ZachGreen-Theeldershavespoken–rebuildingrespectinRobinvale• KarenMinniecon-NoJurisdiction2• BrettClarke-ThreeofaKind• TimChurch-TheMurrayWalk-thetracksweleavebehindtomoveforward• ArikaWaulu-ThooloYiee–Withexpressionofsorrow• FionaClarke-FamilyArtyParty

We anticipate delivery of the six short films in April 2015.

Open Channel has been awarded a federal Community Heritage Grant to fund a significant assessment of Open Channel’s film and video archive, cataloguing and eventually digitising the collection of the past four decades.The grant was announced at the National Library of Australia, Canberra, on Tuesday, 28 October, 2014.

This year, grants worth $386,577 have been distributed to 73 community groups and organisations from around Australia to assist in the identification and preservation of community owned but nationally significant heritage collections. Rose Scasni, General Manager of Open Channel, attended a three-day intensive preservation and collection management workshop held at the National Library, the National Archives of Australia, the National Museum of Australia and the National Film and Sound Archive in Canberra.

NATIONAL LIBRARY OF AUSTRALIA - COMMUNITY HERITAGE GRANT

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SOCIAL MEDIA & WEBSITEOpen Channel increasingly engages with a large audience utilising social media tools.

Twitter: We have over 1500 followers, and have been mentioned on Twitter in 2014 by Film Victoria, HRAFF, Lorne Film, National Library of Australia, Made in Melbourne, SYN, Peninsula Short Film Festival, Lean Filmmaking, Lee Zachariah, ScreenHerd, Umbershoot, Australians in Film, ACMI, Setting Sun Short Film Festival, ADG, Pozible, Fotscray Arts, St Kilda Film Festival, YouTube Australia, Tim Ferguson, SPA, Melbourne Web Fest and Genero.tv among others.

Facebook: Open Channel’s Facebook presence has continued to grow, with 311 new page likes in 2014, bringing the total page “likes” to over 5600. Our Facebook special interest groups continue to provide a central hub for discussion between emerging and established screen practitioners. The nine special interest groups share job opportunities, professional development, news and crew calls with group members. Average of 420 members per group.

Website: www.openchannel.org.au Our fresh new Open Channel website was launched in February 2014. It is based on the WordPress platform, which enables staff to manage updates in-house. WordPress is a popular platform and many add-ons may be integrated. Our first major upgrade was to move away from Filemaker Pro, our labour-intensive Membership database, into the WordPress plugin “WishList Member”. It is further integrated with our new PayPal online payment system. Also, we have “member only” content on our website, further enriching our members’ experience. Late in 2014, we implemented “Event Espresso” an online event registration and ticketing management tool integrated with our website and PayPal. Further improving our back of house systems and our clients’ experience.

ANZAC PRODUCTION INITIATIVE

Open Channel was successful in its application to the ANZAC Centenary Arts and Culture Fund through the Department of Veterans’ Affairs with the support of seven federal electorates. The project has also gained additional support through the Victorian State Government. The funding will enable us to produce a series of six commemorative short films with the title Bringing Our Stories Home.

Our vision for the series is to develop the skills of emerging filmmakers as we share the stories of sacrifice both at home and abroad through the powerful medium of short televised films.

The six films will be produced by emerging filmmakers under close supervision by Open Channel, and broadcast on ABC iView in 2015-2017, as well as being available in perpetuity on the internet for future generations to understand the personal stories behind the Great War, a few of the great many stories still to be told to preserve our State’s history of military service.

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WHERE CREATIVE INDIVIDUALS BECOME

INDUSTRY PROFESSIONALSTraining and Professional Development at Open Channel seeks

to provide practical skills for the next generation of screen creators and crews. This is vital for the sustainability of the

Victorian Screen Industry, and highly skilled practioners are a major drawcard for the production services industry in the State. From complete beginners through to those early in their career, and across many screen disciplines, Open Channel responds to

the requirements and demands of the screen industry with its innovative development, production and training programs.

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ADVANCED DIPLOMA OF SCREEN AND MEDIA CUF60107 (SCRIPTSHOP)Scriptshop (CUF60107 Advanced Diploma of Screen and Media) develops early stage scripts and creative practitioners, predominantly emerging screenwriters.

This course was funded by the National Workforce Development Fund (NWDF) in 2013 and 2014, however, the program was defunded in April 2014. As a result, Open Channel received funding for only four of nine new students in 2014. With part time students returning from the 2013 cohort, and only four students funded out of our 2014 cohort, the budget was very tight.

Screen Australia however recognised the enormous value created by the development program which had resulted in a number of projects being optioned for further development. We were successful in receiving funding under Screen Australia’s Enterprise Stories program leading the course into a new direction in 2015 as a hyper-intensive and selective lab for the best new projects from uncredited writers in Victoria.

The 2014 cohort of students learned form leading industry practitioners including Chris Corbett, David Redman, Tait Brady, Michael Brindley, Ros Walker, Alkinos Tsilimidos, Dee McLachlan and more. In November, the course ran a series of public script readings of student projects, with one television series reading, titled Soup, featuring a well-known cast including Nadine Garner and Christopher Bunworth. The reading was attended by industry professionals such as Dina Mann and Michael Brindley. A number of short film productions in 2015 have resulted directly from collaborations within Scriptshop, including Ming Zhu Hii’s Close Observation of a Single Subject produced by Alex Edwards, a film by writer Claire Ewart titled Emily, and a short project by graduates Johnny Maloney and Doug Bray.

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CUF30107 CERTIFICATE III IN MEDIAThe restructure of the Certificate III in Media to comprise of ten practical filmmaking short courses alongside the making of a first short film, has seen an increase in revenue under the accredited training banner. There is evidence that full fee paying students are attracted to the structured package that the Certificate III program provides, along with additional production support during the making of short films or online content.

Short course trainers in 2014 included Producer/Director Andrew Prowse, Assistant Director Toni Raynes, Helen Gaynor, Stephen Luby and David Redman.

Skills Victoria funding for the Certificate III in Media has been difficult to attract, as most of our enrolled students have a higher level of qualification and were ineligible for the Government funding.

New filmmakers graduating from the Certificate IIIprogram are:• RachelKirby–Girls on the Mic• MarjetkaMcMahon-Krizanic–Mock on the Mock• JulianWhite–French Lessons in Love• AnnetteClare–Meeting Agnes• JessieUpward–Find Me Tomorrow• LucianoCaluzzi-MaxThese films screened at a launch event at The LoopBar in early 2015.

Open Channel is examining the benefits of accredited training for industry outcomes in light of more rigorous VET sector standards applying from 1 January 2015 which render many industry experts currently ineligible to teach.

Open Channel is developing training programs that respond to new developments (e.g. internet video, microbudget) with a range of non accredited programs (at least initially) including the sitdotcom web series training initiative, a professional industry attachments program (submission to Film Victoria in 2015), and the Generation Next Microbudget Conference.

Still from Meeting Agnes by Annette Clare

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SHORT COURSESIn addition to participating Certificate III in Media students, short courses attracted around 100 students in 2014, including the following industry based courses: • Winners and Losers Directing Masterclass, taught on the set of Winners and Losers (Channel Seven) by series director Nicholas Bufalo• YoungFilmmakersHolidayWorkshop(x3)designedtogive13-17yearoldstheskillsto create their own content for the web or festivals• ScreenProducingtheDarkArtmasterclass,withStephenLuby(The Secret River)• DocumentaryFilmmakingIntroductionwithVincentLamberti,HelenGaynor,ArpadMihaly and Nick Carlton – one team created a mini documentary around the Open Doors Community Singers performing at Harbour Town Docklands during their course• DigitalFilmmakingIntroductionandMakingBetterCorporateswithNicholasCarlton(Oz Girl)• IntroductiontoDirectingwithAndrewProwse(INXS: Never Tear Us Apart)• ProductionManagement(x2)withRosWalker(WalkerFilms)• AssistantDirectingwithToniRaynes(Howzat! Kerry Packer’s War)

CUSTOMISED TRAININGCustomised training remains an area of the Training business with growth potential, with clients ranging from businesses to local government to not-for-profit or community organisations, as well as individuals requiring one-on-one training.

Customised training courses were delivered to a range of clients in 2014 including:• BanyuleYouthServicesfilmmakingworkshop• DepartmentofParliamentaryServicesBroadcastingedittraining• TelecommunicationsIndustryOmbudsmantrainingwithSteveWarne• MixedNutsMediaandMooneePondsCouncil• CentreforMulticulturalYouthShoutOutProject,oncamerapresentationwithSandyKaye• EastwebfundedmulticulturalstorytellingprojectwithSunshineFilmFestival,Spectrum Migrant Resource Centre and Brimbank City Council

Documentary Filmmaking Introduction Winners & Losers TV Directing Masterclass

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STUDENT ACHIEVEMENTSOpen Channel students gain valuable skills and experience by directly engaging with the Screen

Industry. Here are some of our students’ achievements in 2014.

Art Department short course graduate Jason Patten placed and then later employed on

Pandemonium Films’ The Moon And The Sun. Scriptshop graduate Simon Carr also obtained a

placement in the production office on this production.

Assistant Directing short course graduate Elizabeth Sarsfield placed in the Assistant Directors

department on the Matchbox series, Glitch.

Member and short course graduate David Barker placed in camera department on NBC series

Childhood’s End, as well as on the Gareth Calverley directed (Small Time Gangster) short film,

Rehab.

Member and short course graduate Lewis O’Brien and David Chakman placed in sound department,

ABC TV The Time Of Our Lives.

Stefan Raabe (Certificate III in Media (Documentary) 2011) was commissioned to produce a six-

part series on diversity of community media in Melbourne, Local Air which was broadcast on

Channel 31. This project was funded by the Community Broadcasting Foundation. Stefan was then

employed on the ABC documentary Call me Dad, after an introduction by Open Channel to the

production company.

Sarah-Jayne Portelli (Art Department short course) placed in Art Department on feature film,

Oddball (WTFN Entertainment).

A speed networking event held in June 2014 brought together 20 Producers and 20 Writers/

Directors in partnership with the VCA and Open Channel members and graduates. This event was

attended by Producers Roslyn Walker and Gus Howard.

Opie Sayner-Hassall (Screen Producing short course with Stephen Luby) placed on feature film

Canopy (Finer Films) as marketing attachment, working as Chinese-Australian Liaison Officer.

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INDUSTRY ENGAGEMENT

Community Broadcasting Foundation and Channel 31Open Channel is an Associate Member of the Melbourne Community Television Consortium Limited (Channel 31). Open Channel with graduate filmmaker Stefan Raabe produced a six part series on the history of community radio in Melbourne, titled Local Air. The 3ZZZ episode was selected to screen as part of the 2015 Human Rights and Arts Festival http://2015.hraff.org.au/event/australian-shorts/

The Joy FM documentary was selected to screen at the Boston LGBT film fest on the 4th of April 2015 and the Athens Film Festival on the 7th April 2015

Innovation & Business Skills Australia (IBSA)Daniel Schultheis, Vocational Education & Training Manager, participated in the National Project Reference Group for the National review of certified qualifications of CUF Screen and Media training package.

Industry Guilds2014 Victorian Working Party skills plan meetings, leading to Skills and Professional Development Policy Initiative for Victorian Screen Technicians. Open Channel also co delivered a session on DSLR filmmaking with the Australian Cinematographers Society (Warwick Field) to secondary teachers at the 2014 ATOM conference.

Melbourne Community Filmmaking Collective - The DressmakerProducer Sue Maslin provided Open Channel Indigenous filmmakers with a session on producing in the pre production phase of the film, and Open Channel facilitated a Welcome to Country and smoking ceremony to launch the production by Boon Wurrung Elders Aunty Carolyn Briggs and Uncle Larry Walsh, attended by the cast and crew and followed by a barbecue with emerging Koori filmmakers given the chance to network with professionals.

Corrie Chen (Open Channel member) attached to Please Like Me (Series 2) as Director’s attachment

alongside Matthew Saville (ABC TV).

Nicole Schembri (Certificate III in Media) attached to Art Department on House Husbands Season

Three (Nine Network).

David Redman’s new film The Subjects has taken on a number of attachments, Assembly Editor

Mark Smithwick (Open Channel member), 2nd AD/Production Coordinator Joyce Ng (Production

Management short course) Art Department Sarah-Jayne Portelli (Open Channel member) and

Wardrobe Emily Brewer (Open Channel member).

Camera assistant Thomas Hayes attached to the Camera Department on Jocelyn Moorehouse’s

The Dressmaker, under Head of Department Don McAlpine. Producer Sue Maslin also worked with

Open Channel to co-ordinate an Indigenous Welcome to Country and Smoking Ceremony to launch

the film production, and Sue has engaged with Open Channel’s emerging Aboriginal filmmaker

community to offer set visits, talks, and forthcoming attachments.

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A VOICE ON SCREENFOR ALL VICTORIANS

In an age where everyone has the tools to produce digital content, Open Channel seeks to give

content creators the skills to use these tools to their best advantage. We specifically focus on

ensuring all Victorians are able to have a voice on screen, focusing in 2014 on the regional areas of

Warrnambool and Shepparton, and on Indigenous filmmaking initiatives.

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REGIONAL SHORT & SHARPSHEPPARTON

The first of the regional Short & Sharp Pitching Competition heats was held at the Shepparton Art Museum on the 29th May, 2014.

The winning pitch was made by Steve Boltz, with his project Swear Jar. Steve went on to pitch at the Melbourne finals in October.

Judges: David Redman, Seph McKenna

WARRNAMBOOL

The second regional heat of Short & Sharp Pitching Competition was held at the Warrnambool Art Gallery on the 7th August, 2014.

The winning pitch was made by Rachael Butterworth, with her project Fat Chance. Rachael went on to pitch at the Melbourne finals in October.

Judges: Chris Thompson, Marc Gracie

REGIONAL FRAMED SEMINARS1. SHEPPARTON FILMMAKERS WORKSHOP (24th August 2014)Open Channel in collaboration with Shepparton Shorts through the SheppARTon Festival held a free filmmakers script development session and weekend filmmakers workshop in Shepparton over two weekends. The script development session took place on the 24 August and lead to a weekend shoot in early 2015. The aim of the workshop is to assist the Shepparton Filmmaking community to develop, shoot and complete a collaborative short film to be showcased at the 2015 Shepparton Shorts – Short Film Festival.

2. THESE FINAL HOURS: IN CONVERSATION WITH ZAK HILDITCH AND LIZ KERNEY AT LORNE FILM (15th November 2014)Following the screening of These Final Hours at Lorne Film 2014, we held a Q&A session with Writer/Director Zak Hilditch and Producer Liz Kearney and discussed the challenges of feature filmmaking in Australia and explored the journey taking the project from short film to feature.

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REGIONAL SHORT COURSESDemand for training in regional areas has been quieter than anticipated in 2014, however Open Channel is maintaining a constant presence in the regions with its activities.

In August, the Training Department ran a week long filmmaker training boot camp as part of the NITV New Aboriginal Filmmaker Initiative attended by 9 new Aboriginal filmmakers at Princetown on the Great Ocean Road, taught by professionals including Allan Collins ACS, Dennis K Smith, Vincent Lamberti and Peter Worland. This training workshop initiated the production of six short documentary films that will screen on NITV in 2015.

The Shepparton Weekend Shooting Workshops resulted in a completed short film to be screened at the 2015 Shepparton Shorts - Short Film Festival.

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YARNINYarnin was conceived by Bobby Nicholls, Rebecca McLean and John Harding and is produced in conjunction with Open Channel. The aim of Yarnin is to record audio- visual history whilst training a new generation of Indigenous filmmakers and journalists.

This is the first time Aboriginal Land Rights in Victoria has been fully explored in a concise and detailed media project.

Yarnin is a mobile training program travelling throughout Victoria working with local Aboriginal communities to record their history of Land Rights from an insider’s perspective. The program records detailed interviews from which short documentaries are produced and screened online, and on other platforms.

Yarnin has so far completed production in Yorta Yorta country (Greater Shepparton – 2012) and Gunditjmara Kirrae country (Warrnambool – 2012) as well as Wamba Wamba (Swan Hill – 2013), Wadi Wadi (Kerang – 2013) and Yiti Yiti (Balranald – 2013).

Yarnin created its next batch of short films focusing in the region of Gippsland. Seven short films were completed in 2014. Three years of Yarnin production has produced twenty wonderful short films all of which can be viewed on www.yarnin.net .

On the 7th November, Yarnin was proud to welcome an audience of 42 to the Library at the Dock in Docklands for the launch of its newly updated website, www.yarnin.net .

Yarnin was selected to feature in the Regional Arts Australia Publication - Belonging - Great Arts Stories from Regional Australiahttp://regionalarts.com.au/wp-content/uploads/2014/10/RAA-Belonging_final_lores.pdf

Yarnin is supported by Film Victoria and the Australian Government through the Office for the Arts.

32 Bobby NICHOLLSa YORTA YORTA ELDER Multi Clan: Dja Dja Wurrung, Barapa Barapa, Jupagalk

Rebecca McLEANaFilmmaker and Media Trainer, Yarnin’

Yarnin’When our Elders pass on, it’s like closing a library book

GREATARTSSTORIES

I’ve been involved with Native Title in Victoria for fifteen years. We’ve been lookingat Land Rights, education, employment, housing, incarceration and high imprisonmentrates. For a long time, very little has been spoken about of any of these issues inVictoria.

When our Elders pass on, it’s like closing a library book and that library book willnever be opened again. That person has passed on with all that knowledge of thehistory of themselves and their country. We’ve had so many Aboriginal people passaway. The aim of the project was to record a series of interviews with our Elders.We agreed that it was important to have students participate in the recording because the project was about their cultural learning and identity as well.

The first site was Shepparton, Yorta Yorta country. I’d spoken to ASHE, the Academyof Sport, Health and Education, an alternative for Aboriginal and Torres Islandersecondary students who don’t fit into mainstream education. Leonie Dwyer and Phil Guthrie helped us arrange a two-week program with eight of their students.We interviewed Aunty Lorna Walker, who is the niece of Pastor Sir Douglas Nichollsand Lady Gladys Nicholls. We also interviewed Uncle Leon Saunders who works withRumbalara Aboriginal Cooperative in Mooroopna, and Margaret Briggs-Wirrpanda,who sadly passed away not long after. They were the first three. We had a screeningas part of the Shepparton Short Film Festival and we came away with two awards.

When we were filming, we got the students to put the camera on the interviewer aswell. This gave them an insight into how it felt to be in front of the camera. And itsomehow built confidence between the Elders and the students. You could see theElders opening up, saying to the students, ‘The stories we’ve been talking about havebeen handed down from generation to generation’. The students learnt a lot in termsof who they are, their culture and their traditions. It gave the Elders a lot of self-pride.

At the end of the two weeks, we have a wrap up with the students. It’s a bit of a debriefing for us as mentors. It’s great to hear the young ones say, ‘I got such a buzzout of interviewing my Auntie and my Uncle and I found out I have many cousinsand many Aunties and Uncles.’ They’ve come away knowing a lot more about themselves, knowing who they are and where they fit into society. To see youngpeople looking and smiling in a positive way, that to me is a winner.

We have now run the Yarnin’ program with students and Elders in Gunditjmara Kirrae Country (Warrnambool), Wemba Wamba (Swan Hill), Wadi Wadi (Kerang),Yiti Yiti (Balranald) and Gunai Kurnai (Morwell, Bairnsdale, Churchill, Moe, Drouin).

One of the things our young ones continually ask us is, ‘How come non-Aboriginalpeople don’t know the history of Aboriginal people?’ In Canada and New Zealand,treaties have been established and the history of their nations is well documented.In Victoria, there’s very little history written. People don’t understand the impact onthe Yorta Yorta people of events like the Cummeragunja Walkoff in 1932. People leftthe mission and either canoed or swam across the Murray River (Dunghala). Theymoved to Barmah Forest, Mooroopna, Shepparton, Moama and Echuca. Children ofmixed blood were forcibly removed by the Welfare Protection Board and taken toCootamundra and Lake Tyers.

Stories of family are just so important. Young people today are lost in terms of notunderstanding their culture. For our Elders, knowing connection to country and traditional roots is an extremely important part of upbringing. When I was young,we sat around camp fires and we were like sponges absorbing all the stories. Our young people don’t have that opportunity – they’re caught up in the 21st centuryand distracted by things. In all these interviews the Elders are saying, ‘Your name is

so and so and you’re related to so and so’.The Elders were also urging the youngones to continue with education becausea good education will bring you good employment.

Twenty-five years ago the first NativeTitle Claim was lodged in the FederalCourt by the Yorta Yorta and JusticeNorth in his summarising said, ‘The history of time has washed your NativeTitle away’. Every day I hear that, but wehave always practised our culture. Westill go hunting, not with spears but rifles.We still go fishing, but we don’t do it in abark canoe, we do it in a ten foot tinny.Today, when we’re recording our history,we don’t paint on rocks, we use computers.We've got technology and without thesupport and access to this technologyfrom Open Channel the Yarnin’ programwould never have been possible.

My hope for Yarnin’ is that it not onlygoes into Aboriginal communities, but it also goes into primary schools and secondary schools. This is the best wayto hear our Elders talk about Land Rightsand education.

I’m hoping some of these young studentswill study media and photography andcome along behind us to continue thework. I’m hoping our stories are continuallytold and never forgotten.

In 2009, Aboriginal Elder Bobby Nicholls approachedtheatre-maker John Harding about a project dearto his heart, recording his Elders’ stories before itwas too late. Filmmaker and media trainer RebeccaMcLean invited them both to Open Channel to seethe new Mobile Training Unit, and from this meeting Yarnin’ was born. Yarnin’ works with localAboriginal communities in regional Victoria. It’s atravelling digital-storytelling and training programfocusing on Land Rights. Yarnin’ teaches youngfilmmakers to interview their Elders and makeshort documentaries which are screened online.

The focus originally was Land Rights, but it’s more than that. It’s about health, education and justice. Bobby grew up within the political realm with his UncleDoug and his Aunty Gladys Nicholls both incredibly active community membersand so he has a lot of knowledge. Everyone is interconnected. Bobby’s thing isbringing those young people in with the older people so that they don’t forget andthey can overcome a lot of the pain of Bobby’s generation. I think those lessons aregoing to be invaluable for the rest of their life.

The course starts with a master class from Bobby to introduce the concept and getall the students on board and focused on the project and what it means to them and to the community. I run with it after that and work with the students and thementors to find the questions that will draw out meaningful stories from the interview subjects. We set five questions to start with that we know will give us the turning points for a five-minute short film.

We then visit each of the Elders and the student has a chance to be director, cameraoperator, sound recordist and gaffer (lighting) and experience the world of the filmset. That all happens in the first week.

The Elders, when they’re speaking to the young people, have a kind of honesty and urgency to impart knowledge. They put down their guard, and the kids get a

Several Locations, VIC

PHOTO | REBECCA McLEAN

Stewart Carter, Smokey Murray

Bobbie Nicholls and Rebecca McLean

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STAFFING CHANGES The following staffing changes occurred at Open Channel in 2014.

Staff farewelled: Lucinda Gamble (Professional Development Manager)

Continuing staff: Marc Gracie (Executive Director) Rose Scasni (General Manager) Daniel Schultheis (Vocational Education & Training Manager) David Ashton (Equipment & Facilities) Alexandra Curtis (Marketing & Events Coordinator) Sara Smith (Receptionist / Office Administrator)

GOVERNANCE

Board MeetingsThere were nine Board meetings held in 2014.(20 February, 3 April, 15 May, 2 June, 31 July, 11 August, 30 October and 11 December)

2014 Annual General MeetingThe 2014 Annual General Meeting was held on the 10th June 2014.

Strategic PlanningA Planning Day for Staff and Board Directors was held on the 11 December 2014.

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FINANCIAL STATEMENTS 2014

- Treasurers Report- Directors’ Declaration

- Auditor’s Independence Declaration- Independent Audit Report

- Statement of Comprehensive Income- Statement of Financial Position

- Statement of Changes of Equity- Statement of Cash Flows

- Notes to the financial statements

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TREASURER’S REPORTYear Ended 31 December 2014

The past year has seen some on-going change from a financial perspective and as such I am glad to have been given this opportunity to report on Open Channel Co-operative Ltd’s finances for the 2014 financial year.

When analysing the company net worth at year end, there has been a $50,327 reduction in net assets from the 2014 financial year. At 31st December 2013 net assets were $608,186 compared to $557,860 as 31 December 2014 year-end. This reduction is mainly due to depreciation of Property, Plant & Equipment and Resource Centre in the 2014 year. Cash on Hand has increased in the 2014 year end balance by $18,018 at 31 December 2014 to a total of $26,780.

The 2014 financial year has seen the organisation record an Operating Loss for the year of $50,323 which contained a Depreciation expense for the year $74,209. Once depreciation is added back the earnings before interest, tax and depreciation (EBITDA) was $23,886. For the year there was a decrease in income of $72,197 which mainly consisted of Course income and Member Precinct Income. However this was well managed with a decrease of total operating expenses for the year of $94,531 resulting in a net increase of operating profit of $22,334 compared to the 2013 year.

As the board we have seen a significant improvement in the management of costs for the 2014 financial year and we will continue to work closely with Management to ensure we run a financially stable and independent organisation. We are currently working closely with various government bodies and network partners to ensure that moving forward we can continue to generate revenue to maintain and improve the level of services and courses that are provided to students. New accounting and budgeting procedures have been implemented to ensure we run a viable and profitable business to assist the organisation in decision making and growth. The board currently meets once every six weeks and critically examines the monthly accounts, focusing closely on liquidity, cashflow and financial performance. The Board continues to take a practical approach towards discussing various issues and items. This has seen successful management prosper and due diligence where needed to make informed and assertive decisions, allowing the company to prosper significantly.

The company is in a good financial position and well placed to meet any future obligations that arise. Currently as it stands, all statutory obligations have been contained and will be able to be repaid based on the company’s current financial position.

Frank Druda CA

Frank Druda has been in public practice for eleven years, in which time has seen him obtain vast managerial, financial and tax knowledge and experience. Currently a Director with Blue Rock Chartered Accountants, Frank advises to a vast range of clients and has various exposure to not only dealing with compliance issues but also working closely with private business and organisations to look at every-day operational and administrational issues. Frank was appointed to the Treasurer’s role in September 2013.

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DIRECTORS’ DECLARATION

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AUDITORS INDEPENDENCE DECLARATION

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INDEPENDENT AUDIT REPORT

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STATEMENT OFCOMPREHENSIVE INCOMEFor the year ended 31 December 2014

2014 2013

Income : Note $ $

Member Subscriptions 11,685 10,964Other Income 30,694 2,955Administrative and Management Grant 310,000 310,000Member Precinct Income 0 30,042Course Income 151,323 197,962Facilities Grant and Sales Income 0 0Hire Income 3,765 14,531Service Income 0 0Grants 397,092 410,301

Total Income - 904,559 976,756

Expenditures :

Wages and Salaries 293,666 301,028Finance and Legal 27,391 29,273Marketing 10,978 11,141Board Costs 0 1,109Operational Costs 325,734 322,736Staff Costs 28,545 35,079Member Services 0 0Building Overheads 86,680 55,804Professional Development Operating Cost 83,884 87,599Facilities Operating Costs 9,493 68,419Production Overhead Costs 14,301 26,040Member Precinct 0 17,191Depreciation For The Year 74,209 93,995

Total of Expenditure - 954,882 1,049,414

Operating Profit ( Loss ) for the year -50,323 -72,658Previous Year's Adjustments 0 0Other Income (Grant-Resource Building) 0 345,000Total Comprehensive Income for the year -50,323 272,342

PARTICULARS

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

Dockland Studios, 476 Docklands Drive, Docklands VIC 3008

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2014

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STATEMENT OFFINANCIAL POSITIONFor the year ended 31 December 2014

2014 2013$ $

Current Asssets :Cash 3 26,781 8,762Trade and Other Receivables 4 79,047 79,363Stock on hand 0 0

Total Current Assets ( a ) 105,828 88,125

Non-current Assets :Property, plant and equipments 5 535,678 608,579

Total non-current assets ( b ) 535,678 608,579

TOTAL ASSETS - ( a ) + ( b ) 641,506 696,704

Current Liabilities :Trade and other creditors 6 63,946 46,440Provisions 7 19,701 14,365

Total current liabilities ( a ) 83,647 60,805

Non-current Liabilities :Long term borrowings 8 0 27,712

Total non-current liabilities ( b ) 0 27,712

TOTAL LIABILITIES - ( a ) + ( b ) 83,647 88,517

Net Assets : 557,859 608,187

Members' Funds :Retained profits 280,397 330,720Paid-up capital 7,908 23,999Forfeited share reserve 35,030 18,944Asset revaluation reserve 234,524 234,524

Total Members' Funds 557,859 608,187

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

Dockland Studios, 476 Docklands Drive, Docklands VIC 3008

STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2014

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STATEMENT OFCHANGES OF EQUITYFor the year ended 31 December 2014

Forfeited AssetIssued Retained Share Revaluation TotalCapital Earnings Reserve Reserve

$ $ $ $ $Balance at 01 Jan 2013 23999 -1449 18944 234524 276018

Profit/(Loss) attributable to members 2013 0 272342 0 0 272342Prior Year Depreciation Adjustment 0 59827 0 0 59827

Balance at 31 Dec 13 23999 330720 18944 234524 608187

Profit/(Loss) attributable to members 2014 -16091 -50323 16086 0 -50328Prior Year Depreciation Adjustment 0

Balance at 31 Dec 2014 7908 280397 35030 234524 557859

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

Dockland Studios, 476 Docklands Drive, Docklands VIC 3008

STATEMENT OF CHANGES IN EQUITY

PARTICULARS

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STATEMENT OFCASH FLOWSFor the year ended 31 December 2014

2014 2013Note $ $

Cash Flows from Operating Activities

Receipts from operations 194,432 255,582Receipts from grants 708,883 720,301Interest income 1,561 872

Total Receipts - 904,876 976,756Less :

Payments for Salaries -278,259 -301,028Payment to Suppliers -579,578 -628,026

Total Payments - -857,837 -929,054

Net Cash Flow from Operating Activities 47,039 47,702GRANT - RESOURCE CENTRE - 345,000

NET CASH FLOW FROM ALL ACTIVITIES 9 47,039 392,702

Cash Flow from Investing Activities

Purchase of Property and Equipments -1,308 -458,684Net Cash Flow from Investing Activities -1,308 -458,684

Cash Flow Provided by Financing Activities

Borrowings -27,712 -

Net Cash Flow from Financing Activities -27,712 -

Net Increase / ( Decrease ) in Cash 18,019 -65,982Cash at the beginning of the reporting period 8,762 74,744Cash at the end of the reporting period 3 26,781 8,762

Docklands Studios, 476 Docklands Drive Docklands VIC 3008

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2014

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

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NOTE TO THE FINANCIAL STATEMENTSFor the year ended 31 December 2014

Note 1 : Statement of Significant Accounting Policies

This financial report is a special purpose financial report prepared in order tosatisfy the financial report preparation requirements of the Co-operatives Act,1996. The directors have determined that the company is not a reporting entity.

Open Channel Co-operative Ltd is a company limited by guarantee, incorporatedand domiciled in Australia.

Basis of Preparation

The report has been prepared in accordance with the requirements of the Co-operativesAct 1996 and the applicable Australian Accounting Standards and AustralianAccounting Interpretations.

Reporting Basis and Convention

The financial report has been prepared on an accrual basis and is based on historicalcosts and financial assets and financial liabilities for which the fair value of accountinghas been applied.

The following is a summary of material accounting policies adopted by Open ChannelCo-operative Ltd in the preparation of the financial report. The accounting policieshave been consistently applied, unless otherwise stated.

Accounting Policies

a. Cash and Cash Equivalents

Cash and cash equivalents includes cash on hand, deposits held at call withbanks, other short-term highly liquid investments with original maturities ofthree months or less, and bank overdrafts.

b. Revenue

Revenue from the rendering of a service is recognised upon the delivery of theservice to the customer.All revenue is stated net of the amount of goods and services tax ( GST )Interest revenue is recognised on a proportional basis taking in to account theinterest rate applicable to the financial assets.

c. Goods and Service Tax ( GST )

Revenue, expenses and assets are recognised net of the amount of GST, exceptwhere the amount of GST incurred is not recoverable from the AustrailanTaxation Office. In these circumstances the GST is recognised as part of the cost of the acquisition of the assets or as part of an item of the expense.Receivable and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, exceptfor the GST component of investing and financing activities, which are operatingcash flows.

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2014 2013$ $

Note 2 : Income tax expenses 0 0

Prima facie tax payable on operating profit @30%However, less :effect of non-taxable member income arising fromthe principle of mutuality

Income Tax Expenses 0 0

2014 2013$ $

Note 3 : Cash and cash equivalentsCash on hand 124 7Cash at bank 26,657 8,755

Total cash and cash equivalents - 26,781 8,762

2014 2013$ $

Note 4 : Trade and other receivablesTrade Debtors 79,047 79,363

Total Trade & other receivables 79,047 79,363

2014 2013$ $

Note 5 : Property, Plant and EquipmentsProperty, plant and equipment Opening WDV 608,579 243,890Add : Additions during the year 1,308 458,684Gross Assets 609,887 702,574Less : Depreciation for the year -74,209 -93,995

Closing WDV of property, plant etc., 535,678 608,579

2014 2013$ $

Note 6 : Trade and other payablesTrade Creditors and accruals 25,318 44,127Accrued expenses 0 427BAS amount Payable 30,749 -5,980Refundable bonds 0 42Superannuation payable 7,879 7,823

Total trade and other payable 63,946 46,440

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2014 2013$ $

Note 7 : ProvisionsAnnual leave 12,916 8,063Long Service Leave 6,784 6,302

Total Provisions 19,700 14,365

2014 2013$ $

Note 8 : BorrowingsCurrent :Bank overdraft 0 27,712

Non-current :Loan Credit Card 0 0

Total Borrowings 0 27,712

2014 2013$ $

Note 9 : Reconciliation of Cash Flow from Operations withProfit from Ordinary activities after Income Tax

Profit after Income Tax -50,323 -72,658

Cash flow excluded from operating profit attributableto operating expenses : - 345,000

Non-cash flows in profit - Depreciation 74,209 93,995Prior Year Adjustments - -

Changes in assets and liabilities;(Increase)/Decrease in trade and other debtors 316 -73,137

Increase / (Decrease) in trade and other payables 17,501 -689Increase / (Decrease) in provisions 5,336 12,938Increase / (Decrease) in other items - 87,253

Net cash provided by All Activities 47,039 392,702

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

Dockland Studios, 476 Docklands Drive, Docklands VIC 3008

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Note 10 : Going Concern

The members of the Committee believe that applicationof the going concern basis of accounting is appropriatedue to the expected positive cash flows of theco-operative and through the ongoing support ofFunding Bodies.

A cash flow has been calculated for year ended 31 December 2015and provided the cash flow is achieved the Company will be able to meet itsdebts at the end of 31 December 2014

Note 11 : Company Details

The registered office of the company is :

OPENChannel Co-operative LtdDockland Studios476 Docklands DriveDocklands VIC 3008.

ABN 67 060 585 631

Dockland Studios, 476 Docklands Drive, Docklands VIC 3008

OPEN CHANNEL CO-OPERATIVE LIMITED

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STATUTORY REPORTING REQUIREMENTSOpen Channel AuditorsGC Perry & Co768 High Street Thornbury VIC 3071

Open Channel BankCommonwealth Bank of Australia

Name of EntityOPEN CHANNEL Co-operative Ltd

AddressDocklands Studios Melbourne476 Docklands DriveDocklands VIC 3008

Name and Position of RegistrarMarc Gracie, Executive Director

Date of Report25th May 2015

Number of persons employed by the co-operativeAs at 31st December 2014Full time staff: 3Part time staff: 3Tutors (casual): 48

Number of members of the co-operativeAs at 31st December 2014: 281