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TSO.COM.AU

ANNUAL REPORT 2015

Federation Concert Hall 1 Davey Street, Hobart Tasmania 7000 Australia

GPO Box 1450 Hobart Tas 7001 Australia

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

ADMINISTRATIONT: 03 6232 4444Int. Phone: +61 3 6232 4444F: 03 6232 4455Int. Fax: +61 3 6232 4455E: [email protected]

0840The Tasmanian Symphony Orchestra

is proud to be a member.© 2016 Tasmanian Symphony Orchestra Holdings Ltd ABN 16 122 619 630

CONTENTSChair and Managing Director _____________________________ 1

The Year at a Glance _____________________________________ 2

The Year in Review _______________________________________ 4

Artists __________________________________________________ 6

Recordings _____________________________________________ 7

Goals and KPIs __________________________________________ 8

Education and Outreach _________________________________ 10

Marketing, Corporate Partnerships and Philanthropy ________ 12

TSO Patrons ___________________________________________ 14

TSO Partners ___________________________________________ 16

TSO Board _____________________________________________ 18

Governance Report _____________________________________ 20

Orchestra and Management _____________________________ 24

TSO Chorus, TSO Friends and TSO Foundation ____________ 25

Annual Financial Report _________________________________ 27

1

CHAIR MANAGING DIRECTOR

I am delighted to report that 2015 was a successful year, artistically and financially. There were many musical highlights but, for me, two stand clearest in the memory: Stephen Hough’s complete Beethoven piano concerto cycle (his first anywhere in the world) and RACT Symphony under the Stars in City Park, Launceston. There were many other magnificent performances, but it is worth citing two very successful collaborations in Risdon Prison. Such community-based activities are much part of the cultural mission of Marko Letonja, our Chief Conductor and Artistic Director, who began a second three-year contract with us in 2015.

We enjoyed robust box office and ended the year with a string of sell-outs: thank you ticket buyers! But, of course, our (modest) financial surplus owes much to the funding we receive from the Australian Government and the Tasmanian Government, including funding through the Tasmanian Icon program. In addition, we very much value the assistance of our various corporate supporters, particularly Hydro Tasmania, our Principal Partner, and are grateful to the growing number of individual philanthropists who generously supported us in 2015.

At the Board level, we farewelled our former Chair, Pat Leary, who reached the maximum nine-year term as a Director. We are grateful for Pat’s leadership, professional advice and generosity. We welcomed Juanita Von Stieglitz to the Board. It is a great privilege to be elected Chair of the Board and I am deeply grateful to my fellow Directors. An important innovation, agreed to by the Board towards the end of the year, was the creation of a Northern Advisory Group, to advise Directors on building audiences and strengthening the TSO presence in the north of the state.

Tasmanians can be proud of the achievements and artistic successes of the TSO and the Board is grateful to all of those — under the strong leadership of Marko Letonja and Nicholas Heyward — who continue to make this happen. However, we know that we will all need to continue to work assiduously and creatively to ensure that the TSO continues to be a source of great pleasure and pride for years and decades to come.

David Rich

Reflecting on 2015, it was first and foremost a year of great music-making. While Chief Conductor Marko Letonja always coaxes a very warm and beautiful sound from his orchestra, his generosity and empathy as an accompanist came to the fore this year. Standout concerts included Mahler’s The Song of the Earth with international superstars Michelle DeYoung and Simon O’Neill, the compelling cycle of complete Beethoven piano concertos with Stephen Hough, and Brahms’ Piano Concerto No 2 with Garrick Ohlsson.

The Tasmanian Symphony Orchestra reached large and diverse audiences in 2015, often by collaborating with other arts organisations. Standouts include the première of the TSO co-commissioned The Wolf – a double bass concerto by Chinese-American composer Tan Dun – for the Tasmanian International Arts Festival, the world première of Richard Mills’ Remembrance with Victorian Opera, Affinity with TasDance and, with MONA, performances with Amanda Palmer, Antony Hegarty and Allison Bell.

A big lift in subscription ticket sales helped contribute to our good financial result as did two significant bequests. The TSO Foundation received an anonymous bequest of $300,000, while the TSO received the first tranche of funding from a bequest by the late Dr Louise Crossley. The Crossley bequest will be used to encourage the development of Australian women conductors through the TSO’s training programs and concerts.

We farewelled long-serving Concertmaster, Jun Yi Ma, and also said goodbye to Katie Betts (Viola), Robin Brawley (Double Bass) and from the management team, Alayne Baker (HR Manager). We welcomed Jennifer Owen (Principal First Violin), Stefanie Farrands (Principal Viola), James Menzies (Bass), Jenny Goulding (HR Manager) and Sam East (Corporate Partnerships Executive).

I would like to thank all of the orchestra, administration staff, Board, TSO Chorus, subscribers, and Friends of the TSO, and our many volunteers for contributing to a very successful season. I must also thank Pat Leary who retired as Chair at the last AGM for the enormous amount of time, energy, and enthusiasm that she brought to the role and continues to give to the TSO.

Nicholas Heyward

32

The year began with the TSO’s MONA FOMA concert on 18 January with American singer-songwriter Amanda Palmer (above).

The late Peter Sculthorpe was honoured in his hometown of Launceston where, in front of a 9,000-strong audience at RACT Symphony under the Stars on 21 February, his nieces Anne Sculthorpe and Libby Parker accepted the Key to the City conferred by Albert Van Zetten, Launceston Mayor (above).

The 2015 Regional Tour saw the orchestra with conductor Richard Gill and soloist Lloyd Hudson perform before large audiences in Latrobe, Stanley and Burnie on 13, 14 and 15 March.

THE YEAR AT A GLANCE

The TSO gave the Australian première of Tan Dun’s contrabass concerto, The Wolf, with soloist Stuart Thomson and conductor Johannes Fritzsch, as part of the Ten Days’ Tasmanian International Arts Festival on 21 March. The Wolf was co-commissioned by the TSO.

The TSO, in collaboration with Victorian Opera, commemorated the Centenary of Anzac with Remembrance, a new work by Richard Mills and Rodney Hall that was performed on 18 April.

The TSO and Antony and the Johnsons played to two packed houses at Hobart’s Odeon Theatre as part of Dark Mofo on 16 and 17 June.

Stephen Hough, in a career first, performed all five of Beethoven’s piano concertos with the TSO and conductor Marko Letonja over three concerts in Hobart (one of which was repeated in Launceston) between 21 and 29 August (right, main photo). Audiences turned out in force for all concerts and also for three free Beethoven chamber music concerts given by musicians from the TSO.

Over a two-week period in October, Mini TSO performed before hundreds of schoolchildren in Risdon Vale, Richmond, Bagdad, Launceston and George Town (above).

A long-term project between the TSO and Tasdance came to fruition with performances in Hobart and Launceston of Affinity – new works by choreographers Graeme Murphy and Stephanie Lake – on 9, 10 and 17 October.

Musicians from the TSO performed in the chamber music rounds of the ABC Symphony Australia Young Performers Awards and the full orchestra performed for the concerto final on 7 November.

The Hobart concert season concluded with a sold-out performance of Mozart’s Requiem on 28 November conducted by Marko Letonja and featuring soloists Emma Matthews, Sally-Anne Russell, Steve Davislim and Teddy Tahu Rhodes.

After two years of planning, the TSO gave concerts at the Ron Barwick Minimum Security Prison, Risdon Cove, on 4 and 5 December (above). The first concert was for inmates while the second, a performance of Prokofiev’s Peter and the Wolf, was for inmates and their families and formed part of Family Day activities at the prison.

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

THE YEAR IN REVIEW

TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LTD CONSOLIDATED INCOME 2015

TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LTD CONSOLIDATED EXPENDITURE 2015

Australian Council

Tasmanian Department of State Growth – annual grant

Ticket Sales

Sponsorship & Donation Revenue

Interest Income

Other Revenue

Tasmanian Department of State Growth – ICON funding

Employee expensesArtists’ fees and expenses

Symphony Services Int service feeAccommodation expensesTravel expensesOther expenses from ordinary activities

Marketing expensesProduction expenses

Depreciation and amortisation

57%

61%

8%

6%

8%

3%4%

6%

14%

4%

11%

7%

5%2%

2%2%

STATISTICS

TOTAL NUMBER OF PERFORMANCES: 77

PAID CONCERTS: 55 (Hobart 32, Regional 9, School 14)

HIRE & COLLABORATIVE CONCERTS: 10

FREE CONCERTS: 12

PAID ATTENDANCES: 34,283 (Hobart 23,644, Regional 4,458, School 6,181)

HIRE & COLLABORATIVE ATTENDANCES: 6,048

FREE AND OTHER ATTENDANCES: 10,820*

TOTAL ATTENDANCES: 51,151

*A stronger attendance figure would have been achieved had RACT Symphony under the Stars in Glenorchy not been cancelled on account of inclement weather. An indoor version of the concert took place in Federation Concert Hall two nights later.

FINANCIAL KPIs

KPIs Target Result

Operating margin 1% 1%

Reserves ratio 20% 39%

Working capital ratio 2:1 2.1:1

Earned income to grow above percentage of grant income growth

2% 2.5%

FINANCIAL SUMMARY YEAR ENDED 31 DECEMBER 2015

Revenue $ %Government funding 8,496,050 75.3%

Ticket sales 1,266,668 11.2%

Sponsorships and donations

835,680 7.4%

Other Income 677,658 6.0%

Total revenue 11,276,056 100.0%

ExpenditureEmployee expenses 6,802,253 61.0%


173,651 1.6%

Other expenses 4,184,294 37.5%

Total expenditure 11,160,198 100.0%

Operating results 115,858

Hobart

Launceston

Burnie

Glenorchy

George Town

Huonville

BagdadBrighton

Deloraine

Latrobe

RichmondRisdon Vale

Stanley

TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LTD

76

ARTISTS RECORDINGS

CONDUCTOR/DIRECTORGiordano BellincampiJherek Bischoff*Nicholas BucNicholas Carter*Richard Egarr*Johannes FritzschRichard GillBrett KellyGérard Korsten*Marko LetonjaHamish McKeich*Anthony Marwood*Richard MillsGuy NobleBenjamin NortheyKwamé Ryan*Howard ShelleyGreg Stephens#

Marc TaddeiMelvin Tix (aka Petter Vabog)#Gary Wain#

Garry Walker*Mark Wigglesworth

PIANORichard Egarr*Stephen HoughAndrew LeggChristian Leotta*^

Garrick Ohlsson*Howard ShelleyKathryn Stott*^

VIOLINIsabelle FaustKaren Gomyo*Lily Higson-Spence†

Ji Won KimJun Yi MaAnthony Marwood*

VIOLAChris Cartlidge†

CELLONicolas Altstaedt*Sue-Ellen Paulsen

DOUBLE BASSStuart Thomson

FLUTE & PICCOLOLloyd Hudson

CLARINETLloyd Van’t Hoff†

HARPKate Bohmer‡

PERCUSSIONClaire Edwardes*

VOICEKate Amos*Antony and the Johnsons*Carlos E Bárcenas*Allison BellMaya BoogGreta Bradman*Mary Carewe*Steve DavislimKhristian Dentley*Michelle DeYoung*David HobsonNathan Lay*Emma MatthewsEmma Muir-Smith*Simon O’Neill*Amanda Palmer*Michael Petruccelli*Belinda Prakhoff*Sally-Anne RussellCristina Russo*Teddy Tahu RhodesMatthew Tng*

CHORUSSouthern Gospel Choir

COMPERE/PRESENTERKaty Abbott Kvasnica*Allison FarrowRyk GoddardChristopher LawrenceJane LonghurstPaul Rissmann*John Xintavelonis

CHAMBER GROUPS§

Huon Quartet (Elinor Lea, violin; Rohana O’Malley, violin; Douglas Coghill, viola; Jane Tallon, cello). Kettering Piano Quartet (Jennifer Marten-Smith, piano; Monica Naselow, violin; William Newbery, viola; Brett Rutherford, cello). Satin Winds (Lloyd Hudson, flute; Dinah Woods, oboe; Andrew Seymour, clarinet; Tahnee van Herk, bassoon; Heath Parkinson, horn; Jennifer Marten-Smith, piano)

RELEASES

ADAM

GiselleTSO Nicolette FraillonABC 481 1710 (2 CDs)

RECORDINGS

ADAM GiselleTSO/Nicolette FraillonFederation Concert Hall, 22-23 January; 4-6 FebruaryABC Classics

CZERNY Grand Concerto for Pianoforte Op 214CZERNY Piano Concerto Op 28CZERNY Rondo Brilliante in B flatTSO/Howard ShelleyFederation Concert Hall, 6-9 May Hyperion

SCHULTZ August OffensiveSCHULTZ PeaceSCHULTZ Symphony No 3TSO/Hamish McKeichFederation Concert Hall, 21-24 AprilABC Classics

JOHANN STRAUSS et al Waltzes, Polkas, Marches, Overtures, AriasTSO/Lorina Gore/Marko LetonjaFederation Concert Hall, 4-7 AugustABC Classics

TCHAIKOVSKY Variations on a Rococo ThemeTSO/Sue-Ellen Paulsen/Marko LetonjaFederation Concert Hall, 17-18 FebruaryABC Classics

KOEHNETime is a River

TSO/Richard MillsABC 481 1480

AUSTRALIAN COMPOSER SERIES

In 2004, the first recordings were released in the Tasmanian Symphony Orchestra’s Australian Composer Series on ABC Classics.

In 2015, a milestone was reached with the release of the 21st title: Time is a River, the music of Graeme Koehne.

Composers who have been profiled in the Australian Composer Series are, in order of release date: Nigel Westlake, Carl Vine, Ross Edwards, Gordon Kerry, Peter Sculthorpe, Brenton Broadstock, Richard Mills, Elena Kats-Chernin, Don Kay, Larry Sitsky, Graeme Koehne, Malcolm Williamson, Richard Meale, Brett Dean, Gerard Brophy, Peggy Glanville-Hicks and Andrew Schultz. The 21 titles include two CDs each of the music of Peter Sculthorpe and Graeme Koehne, and two compilation CDs.

* TSO debut in 2015^ Recital/chamber concert# Mini TSO, Mini Maestro or Outreach concert† ABC-Symphony Australia Young Performers Awards finalist‡ Rising Star soloist§ Chamber concerts formed part of the Beethoven Celebration

KELLY

In Memoriam Rupert BrookeTSO Johannes FritzschABC Classics iTunes single release

HERZThe Romantic Piano Concerto – 66TSOHoward ShelleyHyperion CDA68100

98

GOALS AND KPIs

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

High quality concert season broadcast nationally/streamed internationally.

TSO concerts are broadcast and streamed throughout Australia and around the world by ABC Classic FM. In 2015, 38 TSO concerts were transmitted by ABC Classic FM comprising 20 concerts recorded in 2015 and 18 recorded prior to 2015. Of the 38 concerts, six were live broadcasts.

Innovative Australian Music Program delivered nationally.

A CD of music by Graeme Koehne, Time is a River, was released in the TSO’s Australian Composer Series on ABC Classics. Also released in 2015 was the first Australian recording of Elegy for Strings “In Memoriam Rupert Brooke” by Frederick Septimus Kelly, a composer who was killed in action during World War I. Three works by Australian composer Andrew Schultz – August Offensive, Peace and Symphony No 3 – were recorded in 2015 for release at a later date.

Australian works that were performed in Master and/or Matinee Series concerts in 2015 were Dances with Devils – Percussion Concerto by Iain Grandage, Moonlight Ridge by Tasmanian composer Don Kay, Elegy for Strings “In Memoriam Rupert Brooke” by Frederick Septimus Kelly, The Madness and Death of King Ludwig by James Ledger and August Offensive by Andrew Schultz. Further works by Australian composers were programmed in other concerts, such as the Family Classics series, Education concerts and RACT Symphony under the Stars.

The TSO gave the world première of Remembrance by Richard Mills. A collaboration with Victorian Opera and supported by the Australian Government’s Anzac Centenary Arts and Culture Fund, Remembrance recreated the World War I era through songs of the period, letters, photographs and newspaper clippings.

The annual Symphony Australia TSO Composers’ School was held in Hobart, 29 June-2 July. School Director, Andrew Schultz, fellow composer Matthew Hindson and conductor Brett Kelly worked with four emerging composers: Lisa Cheney, Mark Holdsworth, Tim Shawcross and Ian Whitney. Hobart-based composer and composition lecturer Maria Grenfell also offered her expertise. Participants not only submitted newly written works, but took part in orchestration projects.

The Seven Deadly Sins, a new work devised by Richard Mills for Victorian Opera, was workshopped by the TSO in Hobart, 3-4 July. It comprised original compositions by Australian composers Julian Langdon, Mark Viggiani, Jessica Wells and Ian Whitney. The Seven Deadly Sins received its première in Melbourne later in the year.

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

Increasing Tasmanian audience.

In 2015 paid attendances totalled 34,283, a decrease of 1,986 or 5.5% on 2014 attendances. The downturn can be attributed to fewer large-venue commercial concerts presented in 2015.

High level of awareness in annual survey.

Once again, the annual survey revealed a very high level of awareness about the TSO

in the Tasmanian community. Conducted by Enterprise Marketing and Research Services in February 2015, the survey revealed that 95% of Tasmanians were aware of the TSO and 89% considered the TSO to be a source of pride. Conducted as a telephone poll, the questionnaire canvassed a sample group of 600 adults from across Tasmania.

3. TO BE CONTINUALLY STRIVING FOR EXCELLENCE IN PERFORMANCE.

Improved ratings from Peer Panel.

Four concerts were Peer Panel reviewed in 2015: two Master Series concerts, one Matinee Series concert and the Hobart Special, Mozart’s Requiem. The average score was 8/10 (the 2014 average was 8.9/10).

Ongoing program of venue acoustic improvement and orchestral equipment/musical instrument upgrades.

An acoustic panel was installed across the full length of the TSO Studio to improve sound transmission across the entire orchestra. The TSO Studio is the orchestra’s main rehearsal space.

4. TO BE WELL MANAGED AND FINANCIALLY STABLE.

Reserves ratio exceeds 20% of costs.

Reserves ratio 39.2%.

Working capital ratio 2:1.

Working capital ratio 2.1:1.

Operating margin greater than 1%.

Operating margin 1%.

Earned income to grow by at least 2% above percentage of grant income.

Earned income grew by 2.5%.

1110

EDUCATION AND OUTREACH

EDUCATION

The Tasmanian Symphony Orchestra brought music to children of all ages in 2015, from babes in arms and toddlers to high school students.

Six School Concerts targeting infants, primary and secondary school children were given in Hobart, most of which included big-screen projections. One of the School Concerts was held in the TSO Studio. Aimed at high school students, it consisted of a performance of Introduced Species by Australian composer Katy Abbott Kvasnica and included a post-concert discussion involving the composer and students.

At the younger end of the spectrum, the TSO presented five Mini Maestro concerts in Hobart specially designed for very young children and those who care for them, including parents, grandparents and educators.

Mini TSO, a scaled down, touring version of the TSO, gave a total of nine concerts in 2015 as follows: Risdon Vale Primary School; Brighton Civic Centre (for students from the Jordan River Learning Federation); Richmond Primary School (two concerts; for students from Richmond Primary as well as St John’s Catholic School, Richmond); Bagdad Community Club (for students from Bagdad as well as the Lower Midlands region, including Oatlands and Kempton);

Scotch Oakburn College, Launceston (two concerts); and George Town Memorial Hall (two concerts; for students from George Town as well as Beaconsfield, Bridport, Exeter and Port Dalrymple).

There were ten Open Rehearsals in Federation Concert Hall for high school music students, students from the University of Tasmania Conservatorium of Music and members of TSO Friends.

The TSO organised Masterclasses given by visiting artists Nicolas Altsteadt, cello, and Karen Gomyo, violin, for students at the UTAS Conservatorium of Music. Additionally, a composition masterclass/presentation was given by composer Andrew Schultz.

The Rising Star competition, which is open to musicians 21 years of age and under, was won by harpist Kate Bohmer, a Year 12 student at The Friends’ School. She performed with the TSO at the Family Classics concert on 12 November.

Pre-Concert Talks were held before all 12 Master Series concerts and Mozart’s Requiem in Hobart, and the two Launceston concerts held in Albert Hall. Open to all concert ticket holders, pre-concert talks are strongly attended, reaching a combined audience of several thousand.

TRAINING

The Tasmanian Symphony Orchestra’s training initiatives took many forms in 2015, from mentoring programs for young musicians, to opportunities for trainee conductors, up-and-coming composers and school music teachers.

The Conductor Development Program, hosted by the TSO in collaboration with Symphony Services International, was held in two week-long blocks in January and September. The first session was

led by Johannes Fritzsch, the second by Christopher Seaman. Twenty participants, from interstate as well as New Zealand, took part in the program.

The annual Symphony Australia TSO Composers’ School was held 28 June-2 July. Four emerging composers worked with director Andrew Schultz, tutor Matthew Hindson and conductor Brett Kelly on original compositions and orchestration assignments. A further workshop for composers – the Seven Deadly Sins Project, a collaboration with Victorian Opera – was held 3-4 July.

Twenty-six students from the Australian National Academy of Music rehearsed and performed with the TSO for the first Master Series concert of 2015, The Song of the Earth, with conductor Marko Letonja and soloists Michelle DeYoung and Simon O’Neill.

Twenty-eight musicians from the Australian Youth Orchestra took part in the TSO-AYO Collaboration, an intensive period of rehearsals leading to a Master Series concert in Hobart on 15 May, conducted by Mark Wigglesworth. Additionally, seven AYO musicians participated in the Wind, Brass and Percussion Fellowships that were held in the run-up to rehearsal week.

On 5 September, 33 musicians from the Tasmanian Youth Orchestra joined the TSO for Big Rehearsal, an annual event in which TYO musicians rehearse with and are mentored by the TSO musicians. Big Rehearsal was conducted by Johannes Fritzsch.

The TSO hosted the 2015 ABC Symphony Australia Younger Performer of the Year Awards. Many TSO musicians took part in the Chamber Music round of the competition and the three concerto finalists performed with the TSO on 7 November. All rounds were broadcast live on ABC Classic FM.

Creative Classrooms, a TSO-initiated workshop for school music teachers, was given by internationally renowned educator, Paul Rissmann, at Hobart’s Elizabeth College on 25 June.

OUTREACH

The Tasmanian Symphony Orchestra’s Outreach Program went from strength to strength in 2015. Musicians from the TSO gave more than a dozen concerts, workshops and presentations in community centres, aged care facilities, early childhood centres, the Royal Hobart Hospital and the Moonah campus of ABLE Tasmania.

Very significantly, the TSO inaugurated its Prison Outreach Program in 2015 with a series of activities involving inmates at the Ron Barwick Minimum Security Prison in Hobart. Musicians from the TSO conducted workshops in May and June involving both prisoners and their families. This was a way of bringing music to the inmates and, at the same time, assisting them in building (or rebuilding) personal relationships. Inmates and their children were introduced to orchestral instruments, had a go at playing them and participated in musical games.

In July, members of the Prison Rock Band attended a rehearsal by the TSO at Federation Concert Hall and heard acclaimed artist Isabelle Faust perform Mendelssohn’s Violin Concerto.

Musicians from the TSO returned to the Ron Barwick Minimum Security Prison on 4 and 5 December for two activities. Under Chief Conductor Marko Letonja, TSO string, brass and percussion players performed for the inmates and were joined by the Prison Rock Band for a few numbers. The following day, Family Day at the prison, Maestro Letonja and the TSO gave a performance of Peter and the Wolf for inmates and their families.

1312

MARKETING, CORPORATE PARTNERSHIPS AND PHILANTHROPY

MARKETING

The 2015 season was an outstanding subscription sales achievement. There were 17% more subscribers than in 2014 and an 18.5% increase in total revenue, with final subscription income being $681,792.

For the second year in succession, outbound telemarketing was used to push subscription sales. An increasing number of new subscribers chose the Family Classics series or smaller Choose Your Own packages, including a number of subscribers who joined in order to take advantage of the Beethoven Celebration Series. This was reflected in a drop in the average number of tickets per subscription to 6.1, while the number of subscribers rose to 2,099.

With the increase in overall audience sizes, there was an increase in the use of dynamic pricing. The TSO website maintained steady traffic flows across the year even when concerts were already sold out or in periods of low concert activity. A search engine optimisation campaign demonstrated how it is possible to drive more traffic to the TSO website. Social media was used very effectively in 2015 with TSO Facebook “likes” rising by an incredible 45% across the year to nearly 6,000 in total. Concert video promotions posted on Facebook and YouTube generated a lot of social media buzz and helped to drive ticket sales.

The TSO’s long-term Live it Live marketing campaign continued in 2015 and was used effectively in marketing collateral throughout the season and again on the Live it Live Student Pass, a special offer to full-time secondary and tertiary students.

TSO brand awareness remained extremely high in 2015. The Community Survey, conducted by EMRS, showed that 95% of Tasmanians were aware of the TSO and 89% considered the TSO to be a source of pride, figures in line with those achieved in previous years.

CORPORATE PARTNERSHIPS

The TSO’s Corporate Partnerships program saw change, consolidation, success and renewed engagement in 2015. A new strategic plan was developed early in the year to give direction and focus to the program. Priority objectives included seeking new partnerships and sector diversification, as well as maintaining high levels of servicing and engagement with existing partners.

The TSO’s commitment to working closely with Principal Partner Hydro Tasmania on the highly successful AccessTix program continued with 566 concert tickets issued through the program in 2015. Additionally, there were a number of events that extended the reach of AccessTix. These included a small ensemble performance at the Royal Hobart Hospital for patients and volunteers as well as a Mini TSO performance for around 400 students from Jordan River Learning Federation Schools at the Brighton Civic Centre conducted by the appropriately named clown-maestro, Melvin Tix.

With Major Partner BMW, the TSO created a novel brand activation campaign by running a hugely successful competition through the Mercury newspaper to promote the James Bond: Licence to Thrill concert. The advertising campaign, jointly conceived by the TSO, BMW and the Mercury, was an exemplar of corporate collaboration and won a prestigious Pacific Area Newspaper Publishers Association Award (PANPA).

Increased and deliberate efforts to seek and secure new partnerships brought significant results later in the year with four new corporate partners signing agreements for the 2016 season: Mazda and Unica Wealth at Major Partner level, and the Henry Jones Art Hotel and Worrall Lawyers at Partner level.

In addition to the partners listed above, the TSO would like to acknowledge the support of the following in 2015: Premier Partners RACT and Southern Cross; Major Partners MONA and the University of Tasmania; Leadership Partners Clemenger, Font PR and City of Launceston; Partners Bell Bay Aluminium, Emirates, Glenorchy City Council, Hardlam, Hobart City Council, Marinova, Page Seager Lawyers, TSO Friends, The Old Woolstore, Towers Watson and Wrest Point; and Wine Partners Icon Wines and Milton Vineyard.

PHILANTHROPY AND SPECIAL EVENTS

Donations to the Tasmanian Symphony Orchestra totalled $317,076 in 2015.

The great majority of philanthropic support came from TSO Chair Sponsors and TSO Patrons. TSO Chair Sponsors, comprising 25 individuals and couples, each made a donation of $5,000. TSO Patrons, comprising 88 individuals and couples, each made a minimum donation of $1,000. A full list of TSO Chair Sponsors and Patrons appears

overleaf. Additionally, the TSO received donations of varying amounts from more than 400 supporters.

TSO Chair Sponsors and Patrons are members of the Conductor’s Circle. Members of the Conductor’s Circle had the opportunity to attend a range of behind-the-scenes events in 2015, including receptions with visiting conductors, composers and arts leaders; conducting and composition workshops; and rehearsals. Special Events included a TSO Supporters Cocktail Reception in Launceston and two Marko Letonja Fundraising Dinners in Hobart. The Fundraising Dinners were an opportunity for members of the Conductor’s Circle to mingle with the TSO’s Chief Conductor and guest artists, including Isabelle Faust, Emma Matthews, Sally-Anne Russell, Steve Davislim and Teddy Tahu Rhodes.

A number of individuals and businesses generously assisted Philanthropy and Special Events in 2015. The TSO would like to acknowledge and thank the Northern Supporters Committee (Janet Bilson, Jane Boyle, Joan Green and Caryl McQuestin), Foot and Playsted, Display Works, Fine Drop Wines, Kelvedon Estate, Lake Barrington Vineyard, Laurel Bank Vineyard, Milton Vineyard, Sugarloaf Ridge Wines, MONA and RACT Travel.

In addition to philanthropic supporters, the total donation figure cited above includes $56,504 from the TSO Foundation Trust and $12,750 from TSO Friends.

The Dave and Annick Chamber Music Fund was established in 2015 thanks to the generosity of TSO Patrons David Davey and Annick Ansselin.

The TSO received a bequest of $150,000 from the late Dr Louise Crossley. In accordance with Dr Crossley’s wishes, the bequest will support the development of Australian women conductors.

(L-R) Luke Roberts and Dominic Mulcahy of UNICA Wealth with John De Paoli, TSO Business Manager

1514

TSO PATRONS

TSO IMPRESARIO PATRONSGifts of $50,000+John and Marilyn CanterfordThe late Dr Louise Crossley Mike and Carole Ralston

TSO MAESTRO PATRONSGifts of $20,000+Patricia LearyDr John Roberts and Mrs Barbara Roberts

TSO CHAIR PATRONS $5,000 or more annual donation

Chief Conductor and Artistic Director Anonymous

Concertmaster Mike and Carole Ralston

Associate Concertmaster RH O'Connor

Principal Second Violin Dr Joanna de Burgh

Principal First Violin Lisa Roberts

Tutti ViolinJanet Holmes à Court

Tutti ViolinBruce Neill and Penny Clive

Tutti ViolinWarwick Rule

Principal Viola John and Jo Strutt

Principal Cello Richard and Gill Ireland

Tutti CelloSue and Ron Wooller

Principal Double Bass Patricia Leary

Principal Flute Ian Hicks

Principal Oboe David Rich and Glenys Rich

Oboe/Cor Anglais Julius and Gabriella Vertessy

Principal Clarinet Dr Peter Stanton

Clarinet/Bass Clarinet Tim and Louise Mooney

Principal Bassoon Julia Farrell

Bassoon/Contrabassoon Alan and Hilary Wallace

Principal Horn Mr Kenneth von Bibra AM and Mrs Berta von Bibra OAM

Principal Trombone Andrew Tulloch

Principal Timpani John and Marilyn Canterford

Principal Harp Dr and Mrs Michael Treplin

Principal Percussion Helen Rule

Chorusmaster Anonymous

Dave and Annick Chamber Music Fund

TSO PATRONS $1,000 or more annual donation

Yvonne and Keith Adkins Peter and Ruth Althaus Wendy AshleySylvia BarrettJane and Rex Bean Hans Bosman and Sue MaddenAileen Buchan Mrs Dianne Bye Anne CarmichaelGeorge and Jan CasimatyAnne Challen and Don Challen AM

Ian Chambers and Kathryn Arneman Dr Alastair Christie Peter Cochrane Dr Stephanie Cooper Nicholas and Janet CretanPeter and Catherine Cretan Dr David Davey and Dr Annick Ansselin John Dickens and Dr Ian Payne Professor David Elliott The late Mr Hansjuergen Enz Garry Forward and Penney FurmageEmeritus Prof AR and Dr OF Glenn Dr Duncan GrantJoan GreenRob and Tricia Greenwell Patricia Haley Barbara Harling Brian and Jacky Hartnett Dr Geoffrey Haward AM and Mrs Phyllis Haward Robyn and John HawkinsDr Don Hempton and Mrs Jasmine HemptonPeter and Jeanne Hepburn Nicholas Heyward and Allanah Dopson Colin Jackson OAM and Mrs Dianne Jackson

Darrell Jones and James Mainwaring Veronica Keach The late Doone Kennedy AO Colin Kent and Deanne Cooper Judith Ker-StoutMarko LetonjaLinda and Martin Luther David McEwan AM and Mrs Jennifer McEwanDr Alex McLaren and Netta McLarenCaryl McQuestinMacquarie AccountingAlison MalcolmKatherine MarsdenMichael Mellor and Elaine Soutar Senator Christine Milne Muriel Morillon and Michael AllottLeon and Susan MorrellJill Mure Simon Overland and Barbara HingstonKim Paterson and Helen PrestonJohn and Marilyn PugsleyJan and Alan ReesPatricia H Reid Mr and Mrs S Roberts Kay RoddaBrian Shearer Dr Tony Sprent AM Tony Stacey AM and Mrs Jeanette Stacey Dr Jane Tolman Alan Trethewey and Jean Trethewey OAM

Philip and Frances TyrellFrances Underwood John Upcher Catherine Walker PSM and John Cauchi SC

Michelle WarrenHugh WellsMichael Wilkinson Susan Williams Geoff and Vicki Willis J ZimmermanAnonymous x 14

1716

TSO PARTNERS

PREMIER PARTNERS

PRINCIPAL PARTNER

GOVERNMENT SUPPORT

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

MAJOR PARTNERS

Launceston BMWHobart Autohaus

LEADERSHIP PARTNERS MEDIA SUPPORTER

PARTNERS

WINE PARTNERS

WE ALSO WISH TO THANK

Foot & Playsted

1918

TSO BOARD

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

PATRICIA LEARY joined the TSO Board in February 2006, was appointed Deputy Chair in December of that year and was Chair between May 2013 and May 2015. She is Chair of the Northern Territory Police Arbitral Tribunal, Chair of the Tasmanian Police Review Board, Chair of the Red Cross Tasmania Bushfire Appeal 2013 Distribution Committee and Chair of the Centenary of ANZAC Steering Committee. She is a Member of the Australian Institute of Judicial Administration, Member of the Australian Association of Women Judges, National President of Neighbourhood Watch Australasia Inc, Secretary/Vice President of Neighbourhood Watch Tasmania and Acting Chair of Virtuosi Tasmania Inc.

JOHN UPCHER (Deputy Chair) was appointed to the TSO Board in September 2007 and became Deputy Chair in May 2015. A former partner of the law firm Dobson, Mitchell & Allport and, until recently, a member of the Legal Profession Board of Tasmania, he has been on the board of a number of Tasmanian arts companies and is a former member of the Tasmanian Arts Advisory Board. He is a former Chairman of the Allport Library and Museum of Fine Arts Management Committee. He is currently Chairman of the Property Agents Board, a Director of Tasmanian Symphony Orchestra Foundation Ltd, and Deputy Chairman of the Council of the Foundation of the Tasmanian Museum and Art Gallery.

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

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

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

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

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

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

JUANITA VON STIEGLITZ was elected to the TSO Board in May 2015. Her professional background is in tourism and tourism marketing. Additionally, she has extensive experience in senior corporate roles and small business, and has worked with not-for-profit organisations and government entities. She is Co-Founder and Director of Masstige Moments, which specialises in sales and marketing representation services for super-premium travel products. From 1994 to 2008 she worked for American Express in Sydney, including a period as Regional Head of Membership Travel Services aimed at AMEX’s premium consumer groups. Her board experience includes American Express Inc Wholesale Currency Services, Tourism Tasmania (where she served as Chair of the Audit Committee) and Design Tasmania.

2120

GOVERNANCE REPORT

This Governance Report is provided in respect of Tasmanian Symphony Orchestra Holdings Ltd (TSOH) and its 100% owned subsidiary, Tasmanian Symphony Orchestra Pty Ltd (TSO) for the year ended 31st December, 2015 (the Group).

TSOH’s Constitution was designed to effect the governance reforms from the Australian Government’s Review of Orchestras. In this regard we are pleased to report that the membership base for TSOH at the end of 2015 was 316 members. TSOH held its Annual General Meeting in May 2015 at which the Members were provided with reports from the Chair and the Managing Director.

During 2015 the Board’s oversight of the TSO met or exceeded the ‘Essential governance practices for arts organisations’, as referred to in the 2012-14 Tripartite Funding Agreement and a Deed of Variation to that Agreement extending funding to 31 December 2015. The following demonstrates TSO’s compliance with the eight Principles.

1. LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT

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

• Audit and Risk Committee

• Nomination and Remuneration Committee

• Key Artistic Advisory Committee

The roles of the Chair, Managing Director and Company Secretary are all formally recorded in the Charter. The Charter also specifies that the ultimate responsibility for approval of corporate strategies and objectives, budgets, plans and policies developed by management is that of the Board. The Board develops an annual schedule and management brings the major strategic, business and policy matters to the Board in an orderly way.

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

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

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

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

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

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

2. STRUCTURE THE BOARD TO ADD VALUE

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

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

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

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

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

The Chair is elected by the Board and is responsible for the efficient and effective functioning of the Board, including, but not limited to the discussion and determination of the strategic direction of the Group and ultimately the production of the Strategic Business Plan. The Board has established the following Committees to provide closer attention to key areas of governance:

• Audit and Risk Committee TSOH

• Nomination and Remuneration Committee TSOH & TSO

• Key Artistic Advisory Committee TSO

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

3. PROMOTE ETHICAL AND RESPONSIBLE DECISION MAKING

Independence of Directors is considered to be of vital importance.

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

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

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

2322

GOVERNANCE REPORT

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

4. PROMOTE DIVERSITY

The Board actively encourages an organisational culture that embraces diversity and inclusion.

TSO has a Diversity and Inclusion Policy in draft and expects to approve a final version during 2016. The policy recognises the value of a diverse and skilled workplace and encompasses acceptance, respect and recognition of individual differences.

5. SAFEGUARD INTEGRITY IN FINANCIAL REPORTING

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

• Financial Statements for the previous year

• Risk Management Report

• Budget for the forthcoming year

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

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

The composition of the committee for 2015 included Donald Challen AM (Chair), Peter Cretan, Pat Leary (until 17 May 2015), David Rich and Juanita von Stieglitz (from 17 May 2015).

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

Deloitte Touche Tohmatsu was appointed as external auditor from 2011.

The Committee reviewed statutory and management accounting statements and considered related accounting policy issues. The Managing Director and Business Manager provided the Board with a signed representation letter attesting that the company’s Financial Statements present a true and fair view of the company’s current financial position and are in accordance with relevant legislative requirements and accounting standards.

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

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

6. RECOGNISE THE LEGITIMATE INTERESTS OF STAKEHOLDERS

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

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

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

An annual survey is also conducted state-wide in Tasmania to assess community awareness of the TSO. Feedback and

communication is encouraged via social media and via more traditional communication channels.

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

7. RECOGNISE AND MANAGE RISK

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

• To promote a risk aware culture;• To develop a strategic enterprise risk

profile of TSO and to provide a basis to identify relevant priorities and actions to better enable TSO to successfully achieve its objectives;

• To provide an overview of existing control effectiveness;

• To provide input to TSO’s planning process;• To involve management and staff in risk

ownership and management and to embed risk management;

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

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

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

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

8. REMUNERATE FAIRLY AND RESPONSIBLY

An Enterprise Agreement for administrative staff was agreed during the year and the Agreement for musicians will be renewed during 2017.

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

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

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

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

David Rich, Chair

22 March 2016

2524

ORCHESTRA AND MANAGEMENT TSO CHORUS, TSO FRIENDS AND TSO FOUNDATION

ExecutiveNicholas Heyward Managing DirectorJenny Goulding (from May) Human Resource ManagerJessica Armson Philanthropy and Special Events CoordinatorFiona McAlpine Executive Assistant

Artistic ManagementSimon Rogers Manager, Artistic PlanningAlexis Aitken (Parental Leave from October) Artistic and Chorus Co-ordinator Jenny Compton Outreach and Education ExecutiveRosemary Antonini Artistic Liaison & Arts Vision Coordinator (from October)Nadeena Beck (from October) Chorus and Artistic Coordinator

Business ServicesJohn De Paoli Business ManagerFiona Bounds Senior Business Services OfficerHayden Jones Business Services OfficerAmanda Elder Payroll Officer

Marketing John Pugsley Deputy CEO and Marketing ManagerRobert Gibson Publications EditorCiara Nicholls Marketing CoordinatorGabrielle Lis (Parental Leave from March) Corporate Partnerships ExecutiveSam East (from March) Corporate Partnerships ExecutiveBrenda Fehlberg Customer Relationships ExecutiveDarrell Jones Customer Service CoordinatorAlayne Baker (until April) Human Resource Manager

Orchestra ManagementGreg Low Orchestra ManagerJacqui Walkden Orchestra CoordinatorIan Wollstein Technical CoordinatorDavid Harvey Orchestra LibrarianBrian Harris Production Assistant

ORCHESTRA

TSO FRIENDS COMMITTEE TSO FOUNDATION BOARD

STAFF TSO CHORUS

ViolinJun Yi Ma ConcertmasterElinor Lea Associate ConcertmasterLucy Carrig Jones Principal SecondJennifer Owen Principal FirstMiranda CarsonYue-Hong ChaEdwina GeorgeMichael JohnstonChristine LawsonAlison Lazaroff-SomssichSusanna LowMonica NaselowChristopher NicholasRohana O’Malley

ViolaStefanie Farrands* (from June)Katie Betts (until July)Rodney McDonaldWilliam NewberyAnna Roach

CelloSue-Ellen Paulsen*Ivan JamesMartin PenickaBrett Rutherford

Double BassStuart Thomson*Robin Brawley (until April)James Menzies (from May)Vacancy

Margaret McKerracher PresidentDon Hempton SecretaryGrant Taylor TreasurerJohn CanterfordCatherine HamiltonMuriel MorillonTina PinkardCarol SamuelsonMike ScottGeoff WalkerJohn Pugsley Management RepresentativeMark Bain Player RepresentativeTotal number of TSO Friends: 521

Dick Shoobridge ChairJohn CanterfordDonald HemptonPatricial LearyMichael RalstonPeter StantonJohn UpcherSusan WilliamsJohn De Paoli Company Secretary

FluteDouglas Mackie*Lloyd Hudson Piccolo

OboeDavid Nuttall*Dinah Woods Cor Anglais

ClarinetAndrew Seymour*Chris Waller Bass Clarinet

BassoonTahnee van HerkJohn Panckridge Contrabassoon

HornWendy Page*Heath Parkinson*Roger JacksonGreg Stephens

TrumpetYoram Levy*Mark Bain

TromboneJonathon Ramsay*David Robins

Bass TromboneRobert Clark*

TubaTimothy Jones*

TimpaniMatthew Goddard*

Percussion Gary Wain*

HarpVacancy#

Marko Letonja Chief Conductor & Artistic Director June Tyzack Chorusmaster

Andrew Bainbridge Assistant Chorusmaster/Répétiteur Jennifer Marten-Smith Répétiteur/Language Coach

SopranoStephanie ArnoldRosina BeaumontAlice Bowman-ShawKaren CockrillCarmelita CoenChristine CoombeMichaela Darlington-BeresfordFelicity GiffordDebra JensenFelicity KohutBernadette LargeLoretta LohbergerHeather McCallumStephanie McDonaldSophie MohlerChristine OvensJulianne PanckridgeCarolyn PoortenaarAbigail RadfordMeg ScanlanSharon Sherman

*principal player #guest principal

Yasmin ShoobridgeJoy TattamFrances UnderwoodSusannah Williams

AltoClaire BlichfeldtSally BrownTerry Choi-LundbergBeth CoombeSally CrosbyElizabeth EdenAnn GodberHelena GriggsSue HarradenceClare HawkinsKirsten JonesMarie KeaneLeigh LazarusMary McArthurCaroline MillerSally MollisonJennifer PhillipsLouise Rigozzi

Jennifer ThainSally VanceHenni VeitGillian von BertouchBeth WarrenMichelle WarrenSusan Williams

TenorPeter BallHilary FawcettPeter FawcettBill FieldXavier GandyMichael KregorLorentz LossiusBill MacDonaldMandy McKendrickTony MarshallDianne O’ToolePaul OxleyDavid PittJames Powell-DaviesAlexander Rodrigues

Peter TattamAndrew Tulloch

BassJohn BallardDavid BrewerAllan BullNick CaddickPeter CretanGreg FootMichael FortescuePeter HepburnSam HindellDuncan HowMichael HutchTony ParkerPaul RadfordPhilip SabineDick ShoobridgeAnthony SprentGrant TaylorDaniel Whitfort

27

Directors’ Report _______________________________________ 28

Statement of Profit or Loss and Other Comprehensive Income ___________________________ 31

Statement of Financial Position ___________________________ 32

Statement of Changes in Equity __________________________ 33

Statement of Cash Flows ________________________________ 34

Notes to the Financial Statements ________________________ 35

Directors’ Declaration ___________________________________ 55

Auditor’s Independence Declaration ______________________ 56

Independent Auditor’s Report ____________________________ 57

TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ABN 16 122 619 630)

31 DECEMBER 2015

Annual Financial Report

John and Marilyn Canterford, Lisa Roberts and Marko Letonja at a Hobart Fundraising Dinner

Rule Britannia at Albert Hall, Launceston

Mini TSO at George Town

Family Classics at Federation Concert Hall

2928 TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630) TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630)

DIRECTORS’ REPORTFOR THE YEAR ENDED 31 DECEMBER 2015


The directors present their report together with the consolidated financial report of Tasmanian Symphony Orchestra Holdings Limited and its subsidiary Tasmanian Symphony Orchestra Pty Ltd (the Orchestra) for the year ended 31 December 2015 and the auditor’s report thereon.

DIRECTORS

The names of the directors of the company during or since the end of the financial year are:

David Rich Chair from 23 May 2015; Deputy Chair until 17 May 2015Patricia Leary Chair until 17 May 2015John Upcher Deputy Chair from 23 May 2015Nicholas Heyward Managing DirectorDonald Challen AMPeter Cretan Maria GrenfellChristopher Lawrence Paul OxleyJuanita von Stieglitz

The above named directors held office during the whole of the financial year and since the end of the financial year except for: Patricia Leary (retired 17 May 2015) and Juanita von Stieglitz (elected 17 May 2015).

PRINCIPAL ACTIVITIES

The principal activities of the Orchestra during the year ended 31 December 2015 were the presentation, performance and recording of orchestral music. There were no significant changes in the nature of the activities of the Orchestra during the year.

REVIEW AND RESULTS OF OPERATIONS

The company enjoyed a successful year artistically, which was reflected at the box-office, with strong support for the Masters Series and Family Classics concerts and several sell-out concerts including the Beethoven Piano Concertos, Faust/Mendelssohn and Mozart’s Requiem performances. Highlights included Tan Dun’s Wolf Totem, jointly commissioned by the TSO and presented for the Tasmanian International Arts Festival as part of a world premiere season and Remembrance, a multi-media performance of a major Australian work for the ANZAC Centenary. Concertmaster Jun Yi Ma was farewelled during 2015, with his final concert as soloist in Korngold’s violin concerto.

The company featured in the MOFO, Dark MOFO and Ten Days On The Island festivals and continued to demonstrate its strong support for the community with Symphony Under The Stars, Regional touring and a strong Outreach Education and Training program, which this year culminated in performances at Risdon Prison for inmates and their families.

The company has achieved a financial result for 2015 of $115,858 profit (2014: $183,820), despite some difficult financial challenges. A significant bequest of $150,000 was received, which was accrued as income for the year, and without this the result for the year would have

been a loss of $34,142. Interest and sponsorship income did not meet expectations for the year. Revenue increased by 2.8% from 2014 to $11,276,056 (2014: $10,966,822). This was achieved with an increase in donation and bequest income to $835,680 (2014: $723,480) and with an increase in cost recoveries to $380,290 (2014: $188,888).

Operating expenses before depreciation and amortisation increased by 3.6% to $10,986,547 (2014: $10,607,999), with employee expenses increasing by 4.6%, due to CPI increases and recruitment costs for a new concertmaster.

CHANGES IN STATE OF AFFAIRS

In the opinion of the directors, there were no significant changes in the underlying state of affairs of the company that occurred during the year ended 31 December 2015.

LIKELY DEVELOPMENTS

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

INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS

Indemnification

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

Insurance premiums

During the financial year, the company has paid premiums in respect of Directors and Officers’ liability insurance, legal expenses and insurance contracts for the year ended 31 December 2015 in respect of any liability incurred as a director and or officer to the extent permitted by the Corporations Act 2001. Since the end of the financial year, the company has paid or agreed to pay premiums in respect of such insurance contracts for the year ended 31 December 2016. Such insurance contracts insure persons who are or have been directors or officers of the company against certain liabilities (subject to certain exclusions).

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

EVENTS SUBSEQUENT TO BALANCE DATE

Since the balance date of 31 December 2015, Tasmanian Symphony Orchestra Holdings Ltd has received the 2016 to 2018 Tri-Partite Funding Agreement. The Agreement was executed on 14 January 2016 by Tasmanian Symphony Orchestra Holdings Ltd, Australia Council and Arts Tasmania.

The Agreement secures funding for the period 2016-18 from the Australia Council and from Arts Tasmania.

31TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630)30 TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630)


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2015

DIRECTORS’ MEETINGS

The number of meetings of the Board of Directors and of Board Committees during the financial year were:

Tasmanian Symphony Orchestra Holdings Ltd

Tasmanian Symphony Orchestra Pty Ltd

Board Audit and Risk

Remuneration and

Nominations

Key Artistic Advisory

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

David Rich (Chair) 10 10 6 6 3 3 2 1John Upcher (Deputy Chair) 10 9 - - 2 2 - -Nicholas Heyward (Managing Director) 10 9 6 6 3 3 2 2

Donald Challen AM 10 10 6 6 - - - -Peter Cretan 10 9 6 4 - - - -Maria Grenfell 10 9 - - - - 2 2Christopher Lawrence 10 5 - - - - 2 1Patricia Leary 3 3 2 2 1 1 - -Paul Oxley 10 10 1 1 1 1 - -Juanita von Stieglitz 7 6 3 2 - - - -

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

AUDITOR’S INDEPENDENCE DECLARATION

The directors have received a declaration from the auditor which is included after the financial report and directors’ declaration.

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

David Rich Director

Hobart, 22 March 2016

Year EndedConsolidated

Continuing Operations Note 2015 2014

$ $REVENUEFunding revenue direct from Government 4 8,496,050 8,312,844 Ticket sales 5 1,266,668 1,353,937 Sponsorship and donation revenue 6 835,680 723,480 Other revenue 7 677,658 576,561

11,276,056 10,966,822

EXPENSESEmployee expenses 6,802,253 6,504,408 Artists' fees and expenses 861,354 817,054 Marketing expenses 651,811 618,744 Production expenses 947,633 835,516 Symphony Services International service fee 366,973 363,661 Accommodation expenses 454,788 461,548 Travel expenses 233,882 198,214 Other expenses from ordinary activities 663,309 803,308 Finance costs 4,544 5,546 Depreciation and amortisation 8 173,651 175,003

11,160,198 10,783,002

Net profit before income tax 115,858 183,820

Income tax 2e - -

Net profit for the year 115,858 183,820

Other comprehensive income - -

Total comprehensive income for the year 115,858 183,820

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


STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2015

STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2015

Year endedConsolidated

2015 2014Note $ $

AssetsCurrent assetsCash assets 22a 4,973,117 3,285,931 Trade and other receivables 9 328,047 333,989 Other financial assets 22c 668,666 2,348,666 Other current assets 10 429,075 407,937 Total current assets

6,398,905 6,376,523

Non-current assetsPlant and equipment 12 1,255,634 1,321,626 Intangible assets 13 6,131 - Total non-current assets 1,261,765 1,321,626 Total assets 7,660,670 7,698,149

LiabilitiesCurrent liabilitiesTrade and other payables 14 503,787 325,680 Borrowings 15 50,395 13,273 Unearned revenue 16 1,122,999 1,429,735 Provisions 17 1,380,524 1,302,913 Total current liabilities 3,057,705 3,071,601

Non-current liabilitiesBorrowings 15 - 50,395 Provisions 17 224,885 313,931 Total non-current liabilities 224,885 364,326 Total liabilities 3,282,590 3,435,927 Net assets 4,378,080 4,262,222

EquityContributed equity 18 175,214 175,214 Retained earnings 21 3,384,200 3,418,342 Reserves Incentive Scheme reserve 20a 668,666 668,666 Dr L Crossley bequest reserve 20b 150,000 - Total equity 4,378,080 4,262,222

Consolidated

Issued capital

Retained earnings

Reserves Incentive Scheme Reserve

Dr L Crossley bequest Reserve Total equity

$ $ $ $ $

Balance at 1 January 2014 175,214 3,234,522 668,666 - 4,078,402

Total comprehensive income for the year - 183,820 - - 183,820

Balance at 31 December 2014 175,214 3,418,342 668,666 - 4,262,222

Transferred to reserves - (150,000) - 150,000 -

Total comprehensive income for the year - 115,858 - - 115,858

Balance at 31 December 2015 175,214 3,384,200 668,666 150,000 4,378,080

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


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2015

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2015

Year ended Consolidated

2015 2014

Note $ $

Cash flows from/(used in) operating activities

Cash receipts in the course of operations 2,867,825 2,186,956

Cash payments in the course of operations (10,905,760) (10,744,854)

Grants received from government funding 7,995,938 8,049,373

Interest received 176,246 264,884

Net cash flows from/(used in) operating activities 22b 134,249 (243,641)

Cash flows from/(used in) investing activities

Receipt of cash upon expiry of held-to-maturity investments

1,680,000 (1,740,591)

Payment for plant and equipment (113,790) (116,126)

Net cash flows from/(used in) investing activities 1,566,210 (1,856,717)

Cash flows from financing activities

Repayment of borrowings (13,273) (10,327)

Net cash flows used in financing activities (13,273) (10,327)

Net increase/(decrease) in cash held 1,687,186 (2,110,685)

Cash at the beginning of the financial year 3,285,931 5,396,616

Cash at the end of the financial year 22a 4,973,117 3,285,931

1. CORPORATE INFORMATION

The financial report of Tasmanian Symphony Orchestra Holdings Limited and its controlled entity for the year ended 31 December 2015 was authorised for issue in accordance with a resolution of directors on 22 March 2016.

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

1 Davey Street Hobart TAS 7000

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

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation

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

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

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

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

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

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

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




b) Statement of compliance

The financial report is a general purpose financial report and the financial statements have been prepared in accordance with the Australian Charities and Not-for-profits Commission Act 2012 and Australian Accounting Standards – Reduced Disclosure Requirements, and comply with other requirements of the law.

The company is a not-for-profit entity.

New Accounting Standards and Interpretations

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

c) Basis of consolidation

The consolidated financial statements comprise the financial statements of Tasmanian Symphony Orchestra Holdings Limited and its subsidiary as at 31 December 2015.

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

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

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

d) Revenue recognition

Concert revenue

Concert revenue is recognised at the time of concert performance.

Funding revenue

Funding revenue comprises grants from the Australian Government’s Australia Council and the State Government of Tasmania through Arts Tasmania. This revenue is received under the terms of the Tripartite Funding Agreement (2012 – 2014) entered into in 2011 and a Deed of Variation to that Agreement which extended funding to 31 December 2015. Since then, the parties have executed a new Agreement which secures funding for a three-year term to 31 December 2018.

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

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

Interest revenue

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

Donation and bequest income

Donations are recognised at the time of receipt. Bequests are recognised when the company is notified of an impending distribution or the bequest is received, whichever occurs earlier.

e) Taxation

Income tax

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

f) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST). Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the statement of financial position. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

g) Impairment of non-financial assets other than goodwill

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

h) Cash and cash equivalents

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




i) Trade and other receivables

Trade and other receivables, which generally have 30 day terms, are recognised at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any uncollectable amounts.

The collectability of trade and other receivables is reviewed on an ongoing basis. Debts that are known to be uncollectable are written off when identified. An allowance for provision for impairment of trade receivables is used when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

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

j) Plant and equipment

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


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

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

Asset class Depreciation ratesMusical instruments and equipment 6.5% - 9%Leasehold improvements Straight line over the 20 year lease periodFurniture and fittings 10%Office equipment 10%Computer equipment 20%

Motor vehicles Straight line over the 3 year lease period

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

k) Intangible assets

Intangible assets with finite lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

l) Leased plant and equipment

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

m) Trade and other payables

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

n) Finance leases

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

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

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

o) Employee benefits

Wages, salaries and annual leave

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

The carrying amount of the provision approximates net fair value.

Long service leave

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




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

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

The carrying amount of the provision approximates net fair value.

Superannuation plans

The Group contributes to several accumulation superannuation plans. Employer contributions in relation to the year ended 31 December 2015 have been expensed in the statement of profit or loss and other comprehensive income. No liability is shown for superannuation in the statement of financial position as the employer contributions to the various schemes fully extinguish the employer’s liability.

p) Other financial assets

Held-to-maturity investments

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

q) Provisions

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

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

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

r) Equity instruments

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

s) Other financial liabilities

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

3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

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

Impairment of non-financial assets

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

Make-good provision

A provision has been made for the present value of anticipated costs associated with the future restoration of the leased premises. The estimate is periodically reviewed and updated. In the event that the provision is material it will be present valued. The related carrying amounts are disclosed in note 17.

Estimate of useful lives

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




2015 2014

$ $

4. FUNDING REVENUE

Government direct funding

Australia Council

Annual grant 6,379,204 6,241,882

6,379,204 6,241,882

Arts Tasmania

Annual grant 1,606,150 1,560,471

ICON funding 500,000 500,000

2,106,150 2,060,471

Local government 10,696 10,491

8,496,050 8,312,844

A significant portion of the company's annual revenue consists of funding from the Australian and Tasmanian Governments, through the Australia Council and Arts Tasmania. As a result, the company is economically dependent on these entities.



2015 2014$ $

5. TICKET SALESSubscription sales 681,792 575,400 Single ticket sales 584,876 778,537

1,266,668 1,353,937

6. SPONSORSHIP AND DONATION REVENUECorporate sponsorship 368,604 418,878 Corporate donations 70,334 66,381 Individual donations 246,742 238,221 Bequests 150,000 -

835,680 723,480

7. OTHER REVENUEInterest income 175,212 237,681 Orchestral hire - 74,828 Royalties 33,427 11,785 Other 469,019 252,267

677,658 576,561

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

Depreciation:Plant and equipment 100,848 96,863 Leasehold improvements 47,741 46,991 Furniture and fittings 457 507 Office equipment 2,827 1,769 Computers 10,635 10,503 Motor vehicles 10,377 18,370

Amortisation:Intangible assets 766 -

173,651 175,003

Superannuation payments 770,366 749,019 Operating lease payments 267,869 268,472




2015 2014$ $

9. TRADE AND OTHER RECEIVABLESCurrentTrade receivables 328,047 333,989

328,047 333,989

Past due but not impaired

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

10. OTHER ASSETSCurrentPrepayments 178,589 112,696 Inventory 16,230 4,999 Work-In-Progress 8,762 - Accrued income 225,494 290,242

429,075 407,937

11. PARENT ENTITY INFORMATIONInformation relating to Tasmanian Symphony Orchestra Holdings Ltd:

Current assets 15,574 15,259 Non-current assets 1,174,455 1,174,455 Current liabilities 44 5 Retained earnings 1,189,985 1,189,709 Total shareholders' equity 1,189,985 1,187,703

Profit of parent entity 276 2,006 Total comprehensive income of the parent entity 276 2,006


12. PROPERTY, PLANT AND EQUIPMENT

ConsolidatedMusical

instruments and

equipmentLeasehold

improvementsFurniture

and fittingsOffice

equipmentComputer

equipmentMotor

vehicles Total

2014 $ $ $ $ $ $ $

Cost

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

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

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

Disposals - - - - - - -

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

Accumulated depreciation

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

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

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

Disposals - - - - - - -

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

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


12. PROPERTY, PLANT AND EQUIPMENT (CONT’D)Consolidated

2015

Musical instruments

and equipment

Leasehold improvements

Furniture and fittings

Office equipment

Computer equipment

Motor vehicles Total

Cost

Balance at 1 January 2015 1,630,310 549,028 13,984 35,874 112,738 91,787 2,433,721

Adjustments - - - - - - -

Additions 67,958 - - 36,963 3,849 - 108,770

Disposals - - - (11,625) (1,575) - (13,200)Balance at 31 December 2015 1,698,268 549,028 13,984 61,212 115,012 91,787 2,529,291

Accumulated depreciation

Balance 1 January 2015 (685,766) (266,560) (9,417) (27,706) (91,899) (30,747) (1,112,095)

Adjustments - - - - - - -

Depreciation expense (100,848) (47,741) (457) (2,827) (10,635) (10,377) (172,884)

Disposals - - - 9,784 1,538 - 11,322

Balance at 31 December 2015 (786,614) (314,301) (9,874) (20,749) (100,996) (41,124) (1,273,657)

Net book value 31 December 2015 911,654 234,727 4,110 40,463 14,016 50,663 1,255,634




2015 2014Note $ $

13. INTANGIBLE ASSETSOpening net book value - -Additions 6,897 -Disposals - -Amortisation charge (766) -Closing net book value 6,131 -

At 31 December 2015Cost 6,897 -Accumulated amortisation (766) -Net book value 6,131 -

14. TRADE AND OTHER PAYABLESCurrentTrade payables 137,718 107,452 Other payables and accruals 366,069 218,228

503,787 325,680

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

15. BORROWINGSSecured - at amortised costFinance lease liability 27 50,395 63,668

Current 50,395 13,273 Non-current - 50,395

50,395 63,668

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

16. UNEARNED REVENUEFunding grants in advance - Arts Tasmania 250,000 750,112 Ticket sales in advance 709,181 618,598 Other 163,818 61,025

1,122,999 1,429,735




2015 2014$ $

17. PROVISIONSCurrentEmployee entitlements 1,380,524 1,302,913

1,380,524 1,302,913

Non-currentEmployee entitlements 165,182 255,967 Make-good provision

Balance at 1 January 2015 57,964 56,275 Additional provision recognised 1,739 1,689 Balance at 31 December 2015 59,703 57,964

224,885 313,931

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

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

175,214 175,214

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

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



2015 2014

20. RESERVES $ $

a) Reserves Incentive Scheme reserveOpening balance at 1 January 2015 668,666 668,666

Accumulated funds at 31 December 2015 668,666 668,666

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

b) Dr L Crossley bequest reserveOpening balance at 1 January 2015 - - Current year bequest 150,000 -

Accumulated funds at 31 December 2015 150,000 -

During 2015 a bequest was received from Dr L Crossley to support the development of women conductors with the Tasmanian Symphony Orchestra.

21. RETAINED EARNINGSRetained earnings 3,384,200 3,418,342

3,384,200 3,418,342

Balance at beginning of year 3,418,342 3,234,522 Transfer to Dr L Crossley bequest reserve (150,000) - Net profit for the year 115,858 183,820

Balance at end of year 3,384,200 3,418,342




2015 2014$ $

22. STATEMENT OF CASH FLOWSa) Reconciliation of cash

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

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

Cash and cash equivalents 4,973,117 3,285,931 4,973,117 3,285,931

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

Surplus from ordinary activities 115,858 183,820 Depreciation 173,651 175,003

289,509 358,823 Movements in working capital

(Increase)/decrease in trade and other receivables 5,942 (75,865)(Increase) in prepayments (21,138) (248,583)Increase in trade and other payables 178,107 51,008 (Decrease) in unearned revenue (306,736) (165,857)(Decrease)/increase in provisions (11,435) (163,167)

134,249 (243,641)

c) Investments in financial assetsHeld-to-maturity 668,666 2,348,666

668,666 2,348,666

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

23. EMPLOYEE ENTITLEMENTSCurrent 1,380,524 1,302,913 Non-current 165,182 255,967

1,545,706 1,558,880

Aggregate employee entitlements presented above include on-costs. At year end, the company employed 76 full-time equivalent employees (2014: 76).



2015 2014$ $

24. KEY MANAGEMENT PERSONNEL AND RELATED PARTY DISCLOSURES

a) Details of executivesNicholas Heyward Managing DirectorJohn Pugsley Deputy CEO, Manager Marketing

and Corporate PartnershipsSimon Rogers Manager Artistic PlanningGreg Low Orchestra ManagerJohn De Paoli Business Manager

b) Compensation of key management personnelShort term employee benefits 646,379 638,966 Post-employment benefits:

Superannuation 110,603 115,764 Termination benefits - 105,880

756,982 860,610 Termination benefits relate to cash payments of previously accrued annual leave and long service leave balances.

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

Sale of goods and services

Purchase of goods and services

The following activity occurred during 2015: 2015 2014 2015 2014$ $ $ $

Patricia Leary is Acting Chair of:Virtuosi Tasmania Inc. 594 1,476 - 198

Nicholas Heyward is a director of:Arts Management Tasmania trading as Handmark Gallery

- - 1,340 1,550

Symphony Services Australia Ltd known as both Symphony Australia and Symphony Services International

44,000 60,500 403,670 400,027

Theatre Royal Management Board - - 39,489 28,854John Upcher is a director of:

Tasmanian Symphony Orchestra Foundation Ltd*

56,504 25,421 - -

David Rich:University of Tasmania (125th anniversary coordinator)

24,186 943 267 5,065

Theatre North Management (Committee President)

- - 15,392 19,140



24. KEY MANAGEMENT PERSONNEL AND RELATED PARTY DISCLOSURES (CONTINUED)

c) Other transactions with key management personnel

Sale of goods and services

Purchase of goods and services

2015 2014 2015 2014$ $ $ $

Maria Grenfell is a senior lecturer at:Conservatorium of Music, University of Tasmania

24,186 943 267 5,065

Peter Cretan is a director of:Tasmanian Collection Service - - 324 328

Christopher Lawrence:Australian Broadcasting Corporation - - 4,090 10,360Christopher Lawrence (concert compere) - - 6,270 600

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

d) SubsidiaryThe consolidated financial statements as at 31 December 2015 include the parent company's one subsidiary in which it had 100% interest, Tasmanian Symphony Orchestra Pty Ltd, which is incorporated in Australia and has the same balance date as that of the parent entity.

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


2015 2014$ $

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

Not later than one year 186,500 197,182 Later than one year and not later than five years 140,000 310,000

326,500 507,182

Capital equipment contracted for but not provided for or payableNot later than one year - 13,957

- 13,957



2015 2014Note $ $

26. OPERATING LEASE ARRANGEMENTSNon-cancellable operating lease commitments

Not later than 1 year 458,500 459,092 Later than 1 year and not later than 5 years 1,806,937 1,851,280 Later than 5 years - 432,874

2,265,437 2,743,246 Operating leases are for the lease of office and rehearsal facilities, lease of the Federation Concert Hall and lease of office equipment.

27. OBLIGATIONS UNDER FINANCE LEASESMinimum lease payments

Finance lease liabilitiesNot later than 1 year 50,726 17,817 Later than 1 year and not later than 5 years - 50,726

50,726 68,543

Less future finance charges (331) (4,875)Present value of minimum lease payments 50,395 63,668

Included in the financial statementsCurrent borrowings 50,395 13,273 Non-current borrowings - 50,395

15 50,395 63,668

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

28. AUDITOR REMUNERATIONAudit of the financial statement 20,662 21,300

20,662 21,300

No amounts are paid to the auditor by the parent entity. All amounts are paid by its subsidiary, Tasmanian Symphony Orchestra Pty Ltd. No other benefits were received by the auditor. The auditor of Tasmanian Symphony Orchestra Holdings Ltd is Deloitte Touche Tohmatsu. The auditor also provides services pro-bono for the audit of the financial statements of the Tasmanian Symphony Orchestra Foundation.



29. ECONOMIC DEPENDENCYTasmanian Symphony Orchestra Holdings Ltd is economically dependent on the ongoing annual funding received from the Australian Government and the Tasmanian Government through the Australia Council and Arts Tasmania to operate as a going concern. Funding from the Australian Government and the Tasmanian Government is secure to 31 December 2018 through the 2016-2018 Tri-Partite Funding Agreement, subject to the company continuing to comply with the terms of the Agreement.

30. ADDITIONAL FINANCIAL INSTRUMENT DISCLOSURENet fair value

The net fair value of financial assets and liabilities at the balance date are those disclosed in the statement of financial position and related notes. This is because either the carrying amounts approximate net fair value or because of their short term to maturity.

Fair value hierarchy as at 31 December 2015

Level 1 Total$ $

Financial assetsLoans and receivables:

trade and other receivables 328,047 328,047

Held-to-maturity investments:term deposits 5,268,666 5,268,666

5,596,713 5,596,713

Financial liabilitiesFinancial liabilities held at amortised cost:

finance lease 50,395 50,395trade and other payables 503,787 503,787

554,182 554,182

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

31. SUBSEQUENT EVENTSSince the balance date of 31 December 2015, Tasmanian Symphony Orchestra Holdings Ltd has signed a Tri-Partite Funding Agreement for the period 2016-18. The Agreement secures funding for 2016-18 from the Australia Council and from Arts Tasmania.

32. APPROVAL OF FINANCIAL STATEMENTSThe financial statements were approved by the board of directors and authorised for issue on 22 March 2016.

DIRECTORS’ DECLARATION

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

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

i) give a true and fair view of the financial position of the Group as at 31 December 2015 and of its performance, as represented by the results of its operations and its cash flows for the financial year ended on that date; and

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

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

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

David Rich Director

Hobart 22 March 2016

5958 TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630)

CONTENTSChair and Managing Director _____________________________ 1

The Year at a Glance _____________________________________ 2

The Year in Review _______________________________________ 4

Artists __________________________________________________ 6

Recordings _____________________________________________ 7

Goals and KPIs __________________________________________ 8

Education and Outreach _________________________________ 10

Marketing, Corporate Partnerships and Philanthropy ________ 12

TSO Patrons ___________________________________________ 14

TSO Partners ___________________________________________ 16

TSO Board _____________________________________________ 18

Governance Report _____________________________________ 20

Orchestra and Management _____________________________ 24

TSO Chorus, TSO Friends and TSO Foundation ____________ 25

Annual Financial Report _________________________________ 27

TSO.COM.AU

ANNUAL REPORT 2015

Federation Concert Hall 1 Davey Street, Hobart Tasmania 7000 Australia

GPO Box 1450 Hobart Tas 7001 Australia

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

ADMINISTRATIONT: 03 6232 4444Int. Phone: +61 3 6232 4444F: 03 6232 4455Int. Fax: +61 3 6232 4455E: [email protected]

0840The Tasmanian Symphony Orchestra

is proud to be a member.© 2016 Tasmanian Symphony Orchestra Holdings Ltd ABN 16 122 619 630

annual report 2015 - tso.com.au€¦ · gary wain# garry walker* mark wigglesworth piano richard...

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