annual report - tso · annual report 2013. shadow dreams. contents 1 highlights 2 chair and...

Marko Letonja’s Season 2013

‘Flames that leap, dazzle and enchant…’

STRAVINSKY The Firebird

ANNUAL REPORT

2013

Shadow Dreams

CONTENTS

1

Highlights 2

Chair and Managing Director 4

Concerts 5

Artists 6

Recordings 7

Goals and KPIs 8

Education and Training 10

Community Engagement 11

Marketing and Business Development 12

Fundraising Events 14

TSO Patrons 15

TSO Partners 16

TSO Board 18

Governance Report 20

Orchestra and Management 25

TSO Chorus, TSO Friends Committee and Education Advisory Committees 26

Annual Financial Report 27

HIGHLIGHTS

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SHADOW DREAMS, an interactive, high-tech project, combined live orchestral music with puppetry, digital imagery and actors. It was performed simultaneously in two Tasmanian venues (either Hobart and Launceston or Hobart and Burnie) linked by high-speed broadband. This specially commissioned work was a collaboration between the Tasmanian Symphony Orchestra, Terrapin Puppet Theatre and Ten Days on the Island.

The TSO was involved in the inaugural Dark MOFO with Fantasia, a screening at the Derwent Entertainment Centre of Disney’s

classic film with live orchestral accompaniment. Dark MOFO is the winter incarnation of the hugely successful MOFO, MONA’s summer festival of music and art.

The long-term relationship between Hydro Tasmania and the TSO was enhanced in 2013 with Hydro becoming the orchestra’s new Principal Partner.

On 3 August the TSO, under Chief Conductor Marko Letonja, gave a concert at Melbourne Recital Centre featuring mezzo-soprano Rinat Shaham as soloist in Berio’s Folk Songs.

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New works by 12 Australian composers were recorded by the TSO for the orchestra’s inaugural CD for the HUSH MUSIC FOUNDATION, The Magic Island. Hush recordings are played in hospitals throughout the country, providing a soothing background during medical procedures and establishing a mood of calm in treatment rooms and waiting areas. The Magic Island was launched at a special Hush concert at Federation Concert Hall, Hobart, on 7 December, which was broadcast live on ABC Classic FM.

For the second year running, the RACT sponsored RACT SYMPHONY UNDER THE STARS, the TSO’s free outdoor concerts in the Hobart suburb of Glenorchy and Launceston. Ideal summer weather drew large crowds to both events.

The TSO HAD A REMARKABLY STRONG PRESENCE IN REGIONAL TASMANIA, with concerts in Latrobe and George Town, Mini TSO concerts in Smithton, Port Sorell and New Norfolk, and TSO Chorus concerts in Swansea and Westbury.

In a record year for TSO CD releases, nine titles were launched in 2013 including the TSO’s 12th recording in the ground-breaking ROMANTIC PIANO CONCERTO SERIES on the British label Hyperion.

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chairThis is my first report as Chair of the Tasmanian Symphony Orchestra so I am especially pleased that 2013 was not only a year of artistic successes, but one that returned a small financial surplus. We held our ground at the box office and made further inroads with philanthropic and corporate support; Hydro Tasmania, for example, became the orchestra’s Principal Partner. But, of course, we are reliant to a significant degree upon financial assistance from the federal and state governments. The former is delivered through the Australia Council for the Arts, the latter through Arts Tasmania and the Tasmanian Icon Program. I would like to thank the federal and state bodies for their financial support and add that in 2013 we met all the performance, financial and governance requirements attached to this funding.

In Marko Letonja, Chief Conductor and Artistic Director, we are fortunate to have an internationally renowned musician, a strong leader and a man of vision. Marko is keen, for example, for the orchestra to engage more closely with the community, to reach out to school students of all ages and to be accessible to Tasmanians everywhere. It was especially pleasing, then, that the orchestra played to a large and diverse audience as the live soundtrack for Fantasia at the Derwent Entertainment Centre, which was screened as part of Dark MOFO, a project that further consolidated our relationship with MONA.

In 2013 the Board welcomed new appointee Peter Cretan, a man with musical experience and sound business skills. I would like to acknowledge the outstanding work of my predecessor, Geoff Willis. Geoff was appointed to the Board in September 2004 and was Chairman between January 2006 and May 2013. I would like to thank Geoff for his tireless work on behalf of the orchestra and for his friendship, mentorship and guidance.

In closing, I would like to congratulate Marko, musicians, Managing Director Nicholas Heyward and the TSO administrative team on a successful 2013, and thank the members of the Board, the many TSO volunteers and, of course, our loyal subscribers and ticket buyers, without whom our activities would be futile.

managing directorFor the Tasmanian Symphony Orchestra, 2013 was first and foremost a year of great music-making. Marko Letonja, Chief Conductor and Artistic Director, brings warmth and generosity to all of his concerts, and his 2013 programs highlighted two of his greatest strengths: 20th-century music, and opera and vocal music. Marko conducted Ross Edwards’ Tyalgum Mantras, which included didjeridu virtuoso William Barton, in the year’s first Master Series concert and, a little later, thrilled us with The TSO Goes to the Opera.

Collaborations with other organisations continue to enable the TSO to extend its reach. Particularly noteworthy were the ground-breaking Shadow Dreams, a collaboration with Terrapin Puppet Theatre, and The Magic Island, a collaboration with the Hush Music Foundation. We continued our collaborations with music training institutions such as the National Academy of Music, Australian Youth Orchestra and the Tasmanian Conservatorium of Music. The TSO is actively involved in the planning of the conservatorium’s new home in the exciting UTAS Creative Industries Institute.

Away from the concert platform, 2013 was in many ways a very difficult year although, as the Chair has noted, we did manage to return a small surplus after a good deal of belt-tightening. The stagnant state of the Tasmanian economy made it so much harder to generate earned income, whether from ticket sales, philanthropic support, corporate sponsorship, special events, or indeed interest on our reserves. Having said that, I would like to take this opportunity to acknowledge the wonderful fundraising work of TSO Friends.

During the year we farewelled two long-serving members of the orchestra: Lisa Storcheim, Principal Bassoon, and Michael Fortescue, Double Bass. From the administration team we farewelled Lisa Harris, Manager, Philanthropy and Special Events; Kate Stuart and Kylie Barry. We welcomed violinist Edwina George and, to the administration staff, Rebecca Ward and Chiara Livingston.

I would like to echo the Chair’s thanks to all members of our extended TSO family and particularly thank her predecessor, Geoff Willis, for the enormous contribution he made as Chairman, and to welcome Pat Leary as Chair. Pat is an inspiration to us all with her incredible level of commitment and enthusiasm for the orchestra.

Nicholas Heyward

2013

Patricia Leary

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CONCERTS

the year in summaryIn addition to the Tasmanian Symphony Orchestra’s core repertoire – works by Haydn, Mozart, Beethoven, Schubert, Schumann and Mendelssohn – music that was highlighted in 2013 included works by composers whose centenaries or bicentenaries were being commemorated: Verdi, Wagner, Britten and Lutoslawski.

Contemporary Australian music remained a key activity with the following works performed in either Master or Matinee series concerts: Brett Dean’s Ariel’s Music; Ross Edwards’ Water Spirit Song and Tyalgum Mantras; Andrew Schultz’s Peace (commissioned by the TSO); and Paul Stanhope’s Piccolo Concerto (commissioned by Symphony Services International on behalf of the TSO and other Australian orchestras). New works by no less than 12 contemporary Australian composers were performed at the Hush concert – The Magic Island – in Hobart on 7 December: Brenton Broadstock, Ross Edwards, Paul Grabowsky, Iain Grandage, Stuart Greenbaum, Maria Grenfell, Matthew Hindson, Elena Kats-Chernin, Graeme Koehne, Peter Sculthorpe, Paul Stanhope and Nigel Westlake.

Another original Australian score was Shadow Dreams by Graeme Koehne, which was specially commissioned for the theatre and puppetry work of the same name which formed part of Ten Days on the Island, Tasmania’s biennial arts festival. Shadow Dreams was a collaboration between the TSO, Terrapin Puppet Theatre and Ten Days on the Island. The TSO deepened its relationship with the Museum of Old and New Art (MONA) with a live screening/performance of Disney’s Fantasia at the Derwent Entertainment Centre on 15 June. This formed part of the inaugural Dark MOFO and added to three years of collaborative projects between the TSO and MONA.

statisticsTOTAL NUMBER OF PERFORMANCES: 72PAID CONCERTS: 64 (Hobart 33, Regional 16, School 14, Melbourne 1)HIRE & COLLABORATIVE CONCERTS: 3FREE CONCERTS: 5PAID ATTENDANCES: 26,980 (Hobart 18,234, Regional 3,712, School 4,589, Melbourne 445)HIRE & COLLABORATIVE ATTENDANCES: 3,668FREE AND OTHER ATTENDANCES: 21,811TOTAL ATTENDANCES: 52,459

Brett Dean Ross Edwards Andrew Schultz Paul Stanhope

HobartNew Norfolk

Rokeby

Launceston

George TownPort

Sorell

Westbury

Swansea

Burnie

Smithton

Latrobe

ARTISTS

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conductor/directorEivind AadlandNicholas BraithwaiteBrett Dean#

Michal DworzynskiRichard GillBrett KellySebastian Lang-LessingMarko LetonjaGuy NobleBenjamin NortheyRoland PeelmanHoward ShelleyMarc TaddeiOtto TauskGary WainMark Wigglesworth#

Kenneth Young

pianoCaroline AlmonteAidan Boase‡

Nikolai Demidenko#*Kirill GersteinMarc-André Hamelin#

Freddy KempfPiers LaneHoward Shelley

violinAnne-Marie Johnson‡

Jun Yi Ma*Baiba Skride

violaBrett Dean#

Janet Rutherford*

celloJack Bailey‡

Sol Gabetta#

Sue-Ellen Paulsen†

fluteDouglas Mackie*

piccoloLloyd Hudson

oboe/oboe d’amoreDavid Nuttall†

cor anglaisDinah Woods

clarinetPaul DeanAndrew Seymour#*

bassoonMatthew Wilkie#*

hornRoger Jackson#

Wendy Page†

Heath Parkinson#

Greg Stephens#

didjeriduWilliam Barton

voiceSarah Blasko#

Maya Boog#

Fiona CampbellJosé CarbóHenry ChooJames ClaytonTrisha CroweJane EdwardsMichael Falzon#

Sara MacliverRinat Shaham#

vocals/electric guitarGeorge Benson#

ensembleTerrapin Puppet Theatre#

compereEmma Ayres#

Ryk GoddardMelissa King#

Christopher LawrenceJane Longhurst#

John Xintavelonis

Rinat Shaham Marc-Andre Hamelin

Sol GabettaBaiba Skride

Marko Letonja Mark Wigglesworth

# TSO debut in 2013* Recital/chamber concert† Chamber concert and concerto soloist‡ ANAM Concerto Competition finalist

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RECORDINGS

recordingsNumbers from Chitty Chitty Bang Bang, Mary Poppins, Les Misérables, The Phantom of the Opera, The Sound of Music, West Side Story (see I Dreamed a Dream: Hit Songs from Broadway, above)TSO/Guy NobleFederation Concert Hall, 29 January-1 February ABC Classics

ADAM GiselleTSO/Nicolette FraillonFederation Concert Hall, 25-26 February and 22-23 October, ABC Classics

WILLIAMSON Piano Concerto No 1WILLIAMSON Piano Concerto No 4WILLIAMSON Sinfonia concertanteTSO/Piers Lane/Howard ShelleyFederation Concert Hall, 16-20 April, Hyperion

GODARD Piano Concerto No 1GODARD Piano Concerto No 2GODARD Introduction and AllegroTSO/Howard ShelleyFederation Concert Hall, 23-27 April, Hyperion

The Magic Island (see CD Releases, above)BROADSTOCK In the SunshineGRABOWSKY CytheraGRANDAGE SuspendedEDWARDS Ecstatic DanceKOEHNE Twilight on Dove LakeKOEHNE Just Walk Beside Me…KATS-CHERNIN Dance of the Paper UmbrellasGREENBAUM City Lights, a Mile UpSCULTHORPE PastoraleTSO/Benjamin NortheyFederation Concert Hall, 27-29 August, ABC Classics

MOZART Lieve sono al par del ventoMOZART Ah se in ciel, benigne stelleMOZART Ah, lo previdiMOZART Ruhe sanft, mein holdes LebenMOZART Ach, ich fühl’sMOZART Der Hölle RacheMOZART Dove sono I bei momentiMOZART Vorrei spiegarvi, oh DioMOZART Voi avete un cor fedeleTSO/Emma Matthews/Marko LetonjaFederation Concert Hall, 12-16 November, ABC Classics

cd releasesDÖHLER & DREYSHOCKThe Romantic Piano Concerto – 61TSO/Howard ShelleyHyperion CDA67950

MOZARTConcerto No 7 for Two Pianos, K242TSO/Silver-Garburg Piano Duo/ Alexander MickelthwateABC 481 0244

MOZARTConcerto No 10 for Two Pianos, K365TSO/Silver-Garburg Piano Duo/ Alexander MickelthwateABC 481 0245

MOZARTPiano Concerto No 18, K456TSO/Howard ShelleyABC 481 0191

MOZARTPiano Concerto No 23, K488TSO/Simon Tedeschi/Alexander BrigerABC 481 0189

MOZARTPiano Concerto No 25, K503TSO/Howard ShelleyABC 481 0192

SCHUBERTSymphony No 8, UnfinishedIncidental music to RosamundeDie Zauberharfe – OvertureTSO/Sebastian Lang-LessingABC 476 4740

VARIOUSI Dreamed a Dream: Hit Songs from BroadwayTSO/Trisha Crowe/Jacqueline Dark/Amanda Harrison/Toni Lamond/Lucy Maunder/Andy Conaghan/Michael Falzon/ David Parkin/Guy NobleABC 481 0378

VARIOUSThe Magic Island – Hush Collection Volume 13TSO/Benjamin NortheyHUSH 013

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GOALS AND KPIs

• World première of Peace by Andrew Schultz (commissioned by the TSO and broadcast live on ABC Classic FM) and concert performances of works by Brett Dean, Ross Edwards and Paul Stanhope.

• Malcolm Williamson’s Piano Concerto No 1, Piano Concerto No 4 and Sinfonia concertante were recorded by the TSO with pianist Piers Lane and conductor Howard Shelley for the UK label Hyperion. This was the first recording ever of the Piano Concerto No 4.

2. That Tasmanians have a strong sense of ownership of the TSO.

Increasing Tasmanian audience.• Tasmanian attendances remained strong in 2013 with

the TSO and TSO Chorus extending their reach into all parts of the state, as illustrated by the map on page 5. While the total attendance figure for 2013 is less than for 2012, the 2012 total included seven TSO performances in Perth, Western Australia, for The Australian Ballet.

• In addition to the core audience for symphonic music, the TSO appeared in concert with George Benson and Sarah Blasko, performed RACT Symphony under the Stars concerts in Hobart and Launceston, and reached a still more diverse audience as the live orchestra for Disney’s Fantasia as part of the inaugural Dark MOFO festival, a collaboration between the TSO and MONA.

High level of awareness in annual survey.• Tasmanian awareness levels remain extremely high

with the most recent Community Survey prepared by Enterprise Marketing and Research Services (EMRS) showing that 95% of Tasmanians were ‘aware’ of the Tasmanian Symphony Orchestra and 91% considered the TSO to be ‘a source of pride for Tasmanians’.

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.• 23 concerts were produced for broadcast by

ABC Classic FM.

• 20 concerts were transmitted by ABC Classic FM including seven direct broadcasts.

• These concerts are heard across Australia and streamed live throughout the world.

Improved ratings in international benchmarking.• Relationships with the five international orchestras

of similar size and/or niche (Lahti Symphony Orchestra, St Paul Chamber Orchestra, Scottish Chamber Orchestra, Swedish Chamber Orchestra, Winnipeg Symphony Orchestra) have moved away from benchmarking into closer cooperation, co-commissions, exchanges of ideas and personnel.

Innovative Australian Music Program delivered nationally.• The Australian Music Program reached a new level

of innovation with Shadow Dreams, an interactive music-theatre-puppetry work with an original music score by Graeme Koehne performed simultaneously in two different Tasmanian locations linked by high-speed broadband.

• The Hush recording, The Magic Island, which features 13 new works by 12 contemporary Australian composers, was brought to completion in 2013 and launched at a special Hush concert in Hobart, which was broadcast live on ABC Classic FM.

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4. To be well managed and financially stable.

Reserves ratio exceeds 20% of costs.• Reserves ratio 37.9%

Working capital ratio 2:1.• Working capital ratio 1.88:1

Operating margin greater than 1%.• Operating margin 0%

Earned income to grow by at least 2% above percentage of grant income.• Earned income contracted by 16.93%

5. To have a positive workplace culture.

Improved ratings in biannual Whole of Company survey.The Whole of Company survey was not conducted in 2013 but consultants were engaged to assist in the development of improving workplace culture.

3. To be continually striving for excellence in performance.

Improved ratings from Peer Panel.• Four Hobart concerts (three Master Series, one

Matinee Series) were evaluated by the Artistic Peer Assessment Panel, receiving an average score of 8.425/10 (the average score in 2012 was 8.6/10).

Ongoing program of venue acoustic improvement and orchestral equipment/musical instrument upgrades.• The on-stage acoustic of Federation Concert Hall in

Hobart, the orchestra’s home, was further improved with an extension to the reflector panel above the stage.

• New instrument purchases were a Yamaha upright piano, Kawai keyboard, Drumtek drum kit, alto flute and double bass.

• A Steinway concert grand piano was refurbished to be kept permanently in Albert Hall, Launceston, once a suitable storage box with humidifier has been constructed.

EDUCATION AND TRAINING

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symphony australia tso composers’ schoolThe annual Symphony Australia TSO Composers’ School was held 14-18 October. Four students worked with conductor Ken Young and tutors Maria Grenfell, Andrew Schultz and Paul Stanhope.

australian youth orchestra collaborationTwenty-seven musicians from the Australian Youth Orchestra (AYO) were mentored by TSO players culminating in a concert on 10 May conducted by Mark Wigglesworth. Additionally, eight AYO musicians participated in the Wind, Brass and Percussion Fellowships that were held in the run-up to rehearsal week.

anam projectsFor the third year running, the TSO hosted the final stage of the Australian National Academy of Music (ANAM) Concerto Competition in October. The following month students from ANAM had the opportunity to be mentored by TSO players culminating in a concert on 9 November conducted by Brett Dean, with soloist Paul Dean.

schools’ concerts & mini tsoThe full-size TSO gave four Schools’ Concerts in 2013, three in Hobart and one in Launceston. Mini TSO gave 10 concerts, two in each of the following locations: Launceston, New Norfolk, Port Sorell, Rokeby and Smithton.

open rehearsals, studio open rehearsals & big rehearsalThere were three Open Rehearsals in Federation Concert Hall, Hobart, attended by school students and TSO Friends. There were two Studio Open Rehearsals, a new initiative for schools in 2013. Thirty-seven musicians from the Tasmanian Youth Orchestra (TYO) took part in Big Rehearsal, an opportunity for musicians from the TYO to rehearse a concert program with the TSO, which was then performed before an audience of family and friends.

schools’ competitionsThe TSO Rising Star competition was awarded to pianist Sonya Pigot, who will perform with the TSO as part of Big Rehearsal in 2014. The Student Composition Competition was won by Jordan Kerr from Elizabeth College.

conductor trainingA total of nine participants from Australia, Switzerland and New Zealand took part in two blocks of Conductor Training in 2013. Two students participated in both courses. The first mastercourse, in August, was led by Marko Letonja; the second, in September, was led by Christopher Seaman.

The TSO, augmented by musicians from ANAM, with conductor Brett Dean and soloist Paul Dean

Mini TSO at Port Sorell Primary School

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Wherever possible, the Tasmanian Symphony Orchestra endeavours to make itself accessible to Tasmanians of all ages and from all walks of life.

accesstixOne of the TSO’s most successful initiatives of recent years has been the AccessTix program, which is sponsored by Hydro Tasmania. AccessTix offers free concert tickets to Tasmanians who are experiencing disadvantage, where ‘disadvantage’ is taken to mean physical and/or intellectual disability, economic disadvantage, social isolation and mental illness. AccessTix also provides tickets to the support workers and carers who accompany the AccessTix patron. As Marko Letonja, Chief Conductor and Artistic Director of the TSO, observes, ‘Musicians are acutely aware of the pleasures and benefits of music – how it lifts the spirit and enriches lives. Hydro Tasmania and the TSO are delighted that AccessTix is able to share these things with Tasmanians who might otherwise miss out on the joy that live music brings.’

In 2013 AccessTix had its most successful year ever, reaching its target of 1,000 concert experiences.

hush music foundationThe year 2013 brought to completion the TSO’s first project with the Hush Music Foundation, an organisation that produces soothing and relaxing music to reduce stress and anxiety for children, families and others in hospital. The brainchild of Dr Catherine Crock at the Royal Children’s Hospital in Melbourne, Hush recordings are played in children’s hospitals and wards throughout the country.

As reported elsewhere in this Annual Report, the inaugural TSO Hush CD, The Magic Island, featured specially commissioned works by 12 contemporary Australian composers. The CD was launched at a special concert at which all works were performed. Additionally, one of the works, The Magic Island by Paul Stanhope, was performed before an audience of many thousands at RACT Symphony under the Stars in Hobart and Launceston.

COMMUNITY ENGAGEMENT

Susie Stevenson, AccessTix patron (centre) with (L-R) Martin Penicka, Marko Letonja, Chris Nicholas, Douglas Mackie and Janet Rutherford

Oboist Dinah Woods and trombonist Robert Clark with Royal Hobart Hospital patient Stirling Braid

other initiativesFor the third time, the TSO collaborated with Kickstart Arts on a project with Tasmania’s African community. The TSO supports schools, community clubs, charities, eisteddfods and other organisations by making concert tickets available for prizes and fundraising initiatives. Additionally, the orchestra makes its facilities available to players for private lessons and loans instruments and equipment to a range of music groups in the community.

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MARKETING AND BUSINESS DEVELOPMENT

The Live It Up Live season pass – a special ticket offer to full-time secondary and tertiary students – entered its second year in 2013 and built on the success of 2012.

corporate partnershipsThe year 2013 saw many successes for the Tasmanian Symphony Orchestra’s corporate partnership program, including the signing of the orchestra’s inaugural Principal Partner, long-term supporter Hydro Tasmania. AccessTix, a program that offers free concert tickets to Tasmanians experiencing disadvantage and is supported by Hydro Tasmania, had its most successful year to date, reaching its target of 1,000 concert experiences per annum.

Another highlight of the year was The Great TSO/Betta Milk Instrument Challenge, which asked Tasmanian children to create orchestral instruments out of Betta Milk cartons and bottles. The competition grew out of the new partnership between the TSO and Betta Milk, who became a Major Partner in 2013, supporting the Betta Milk Family Classics concert series.

marketingTasmanian Symphony Orchestra brand awareness remained extremely high in 2013 as revealed in the Community Survey prepared by Enterprise Marketing and Research Services (EMRS), with 95% of Tasmanians being ‘aware’ of the Tasmanian Symphony Orchestra and 91% considering the TSO to be ‘a source of pride’.

The year 2013 marked the second phase of the ‘Live it Live’ communications campaign. The focus was on particular pieces of music, such as Stravinsky’s Firebird, Smetana’s Má vlast and Gershwin’s Rhapsody in Blue. These and other works were brought to life through bold photography, striking graphics and sharply written copy. The message was to come on the journey that these pieces of music take you on when you hear them live.

Subscription levels were maintained throughout 2013 and single ticket sales remained strong. Social media was further explored in 2013 and proved to be a powerful tool for helping to build engagement with the orchestra and its range of activities.

‘It’s like stepping out in Manhattan…’GERSHWIN Rhapsody in Blue

‘We have no choice , the river takes us where it wants…’SMETANA Má vlast

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RACT Symphony under the Stars The Great TSO / Betta Milk Instrument Challenge

philanthropy & special eventsDonations to the Tasmanian Symphony Orchestra in 2013 totalled $210,014. New Chair Patrons Ron and Sue Wooller brought the total number of Chair Patrons to 24.

The TSO also received $8,243 from the TSO Foundation, a separate company that manages an endowment fund established to guarantee the long-term financial security of the orchestra. The TSO Foundation expects to derive the bulk of its future capital from bequests.

Special events in 2013 were the Hobart and Launceston Soirées; the Red Awnings lunches with guest speakers Mr Terry Bennett and Dr Andrew Legg; the TSO French Long Table annual fundraising dinner, sponsored by Wrest Point; the Chairman’s Lunch with guest speaker Air Chief Marshal Angus Houston AC, AFC (Ret’d); and an intimate dinner at Mures Upper Deck with guest of honour Marko Letonja.

These seven events raised a total of $50,379.

Thank you to sponsors and supporters of these events: Warwick and Helen Rule, Foot & Playsted, Jill Mure, Fine Drop Wines, Emirates, zChocolat and Wrest Point.

Thank you also to the volunteer committee members who organise and manage the TSO annual fundraising dinner held in Hobart: Kate Berger, Lucy Carrig Jones, Holly Derham, Tara Kelly and Michelle Warren.TSO on tour with Hydro Tasmania

Page Seager Lawyers, Hellyers Road Distillery and Emirates Airlines also joined the TSO corporate partnership program in 2013, as did the six fine Tasmanian vineyards that support the TSO Wine Club: Home Hill, Kelvedon Estate, Lake Barrington, Laurel Bank, Milton and Sugarloaf Ridge.

Southern Cross Austereo increased its support of the TSO to become a Premier Partner, while the RACT continued as a Premier Partner, enjoying bumper crowds at RACT Symphony under the Stars in Hobart and Launceston.

The TSO appreciated the continued support of BMW Hobart and Launceston, Bell Bay Aluminium, MONA, Clemenger Tasmania, Font PR, Launceston City Council, Wrest Point, Glenorchy City Council, Hobart City Council, Island Specialty Timbers and The Old Woolstore.

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FUNDRAISING EVENTS

gala soirée

french long table dinner

chairman’s lunch

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

Ian Chambers and Kathryn Arneman Dr Alastair Christie Peter Cochrane Stephanie Cooper The Cretan Family Dr Louise Crossley

John Dickens and Dr Ian Payne Professor David Elliott The late Mr Hansjuergen Enz Forward Consultancy Emeritus Prof A R and Dr O F Glenn Joan Green Patricia Haley Barbara Harling Brian and Jacky Hartnett Dr Geoffrey Haward AM and Mrs Phyllis Haward Dr Don Hempton and Mrs Jasmine HemptonPeter and Jeanne Hepburn Nicholas Heyward and Allanah Dopson

Colin Jackson OAM and Mrs Dianne JacksonDarrell Jones and James Mainwaring Veronica Keach Doone Kennedy AO Colin Kent and Deanne Cooper Linda and Martin Luther David McEwan AM and Mrs Jennifer McEwanMacquarie AccountingMichael Mellor and Elaine Soutar Senator Christine Milne Jill Mure Kim Paterson John and Marilyn PugsleyEryl and Steve Raymond

Jan and Alan ReesPatricia H Reid Mr and Mrs S Roberts Brian Shearer Dr Tony Sprent AM Tony Stacey AM and Mrs Jeanette Stacey Dr Jane Tolman Alan Trethewey and Jean Trethewey OAM

His Excellency the Governor the Honourable Peter Underwood AC and Mrs Frances Underwood John Upcher Catherine Walker PSM and John Cauchi SC

Michael Wilkinson Geoff and Vicki Willis Anonymous x 9

CHIEF CONDUCTOR AND ARTISTIC DIRECTORAnonymous

CONCERTMASTER Mike and Carole Ralston

ASSOCIATECONCERTMASTER R H O’Connor

PRINCIPAL SECOND VIOLINDr Joanna de Burgh

PRINCIPAL FIRST VIOLIN Lisa Roberts

TUTTI VIOLIN Bruce Neill and Penny Clive

TUTTI VIOLIN Warwick Rule

PRINCIPAL VIOLA John and Jo Strutt

PRINCIPAL CELLO Richard and Gill Ireland

TUTTI CELLO Ron and Sue Wooller

PRINCIPAL DOUBLE BASS Patricia Leary

PRINCIPAL FLUTE Ian Hicks

PRINCIPAL OBOE Professor David Rich and Mrs Glenys Rich

OBOE/COR ANGLAIS Julius and Gabriella Vertessy

PRINCIPAL CLARINET Dr Peter Stanton

CLARINET/BASS CLARINET Tim and Louise Mooney

PRINCIPAL BASSOON Julia Farrell

BASSOON/CONTRABASSOON Alan and Hilary Wallace

PRINCIPAL HORN Mr Kenneth von Bibra AM and Mrs Berta von Bibra OAM

PRINCIPAL TROMBONE Andrew Tulloch

PRINCIPAL TIMPANI John and Marilyn Canterford

PRINCIPAL HARP Dr and Mrs Michael Treplin

PRINCIPAL PERCUSSION Helen Rule

CHORUSMASTER Anonymous

tso chair patrons – $5,000 or more annual donation

patrons – $1,000 or more annual donation

John and Marilyn Canterford Mike and Carole Ralston

tso impresario patrons – gifts of $50,000+

Patricia Leary Dr John Roberts and Mrs Barbara Roberts

tso maestro patrons – gifts of $20,000+

TSO PATRONS

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CORE PUBLIC SUPPORT

PREMIER PARTNERS

PRINCIPAL PARTNER

MAJOR PARTNERS

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

Launceston BMWHobart Autohaus

TSO PARTNERS

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MEDIA SUPPORTERS

WINE SUPPORTERS

WE ALSO WISH TO THANK

PARTNERS

Foot & Playsted

LEADERSHIP PARTNERS

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TSO BOARD

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

Professor david rich (Deputy Chair), who was elected to the TSO Board in May 2008 and became Deputy Chair in 2013, is Provost of the University of Tasmania. In that role, he is senior deputy to the Vice-Chancellor and has responsibility for the faculties, academic staffing, the campuses, quality assurance and standards, marketing and communications, and community engagement. He previously 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.

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

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

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paul oxley was elected to the TSO Board in May 2008. He 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 from Chartered Secretaries Australia. He is a chartered secretary, a Fellow of the Governance Institute of Australia and a Member of the Australian Institute of Company Directors. He is an Executive Manager and Company Secretary of Transend Networks Pty Ltd, the owner and operator of the electricity transmission system in Tasmania. He is a member of the Tasmania Council of the Governance Institute of Australia.

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 Transend Networks Pty Ltd, Chairman of the Motor Accidents Insurance Board and a Trustee Director of the Retirement Benefits Fund. Former roles include 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 Pty Ltd and a Director of Plastic Fabrications Pty Ltd. He is also Chair, Board of Management, of the Tasmanian University Union. 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.

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GOVERNANCE REPORT

This Governance Report is provided in respect of Tasmanian Symphony Orchestra Holdings Ltd (TSOH) and its 100% owned subsidiary, Tasmanian Symphony Orchestra Pty Ltd (TSO) for the year ended 31 December, 2013 (the Group).

TSOH’s Constitution was designed to affect the governance reforms from the Federal Government’s Review of Orchestras. In this regard we are pleased to report that the membership base for TSOH at the end of 2013 was 333 members. TSOH held its Annual General Meeting in May 2013 at which the members were provided with a report from the Chair and the Managing Director, and later in the meeting they elected directors David Rich, Don Challen AM and Peter Cretan.

During 2013 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. To demonstrate this, specific comments and examples are provided for each of the guiding principles:

1. lay solid foundations for management and oversightA 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

program and management brings the major strategic, business and policy matters to the Board in an orderly program.

Early in the year the Board approves the performance program for the ensuing year subject to subsequent budgeting which must, in the normal course, be a surplus budget. The Board considers and approves an amended performance 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.

The Board delegates authority to management for annual capital expenditure within the approved budget but retains authority to approve material capital expenditure which exceeds that budget.

New director induction includes a pack of relevant company documentation and an in-depth brief on major operational, structural and financial aspects 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. Position descriptions and a process for an annual professional development review for musicians are being developed during 2014. The annual review of the Managing Director, Artistic Director and Concert Master is undertaken by the Chairman in consultation with Board members and ultimately reported back to the Board.

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

21

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 regular reviews of its own performance and that of its committees.

3. promote ethical and responsible decision makingIndependence of directors is considered to be of vital importance and where a conflict arises it is declared and an abstention from participating in voting is exercised.

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

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

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

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 valueThe 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 skills mix and relevant expertise is not otherwise evident. Directors either elected by members or appointed by the Board are usually initially appointed for a three-year term and able to serve a maximum of nine consecutive years, after which time they must retire. Annual elections ensure refreshment of directors and skill mix.

The TSO 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 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 on and determination of strategic direction of the Group and ultimately the production of the Strategic Business Plan.

GOVERNANCE REPORT

The committee reviewed statutory and management accounting statements and considered related accounting policy issues. The Managing Director and Chief Financial Officer 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 review of financial performance is a regular monthly agenda item for the Board.

6. recognise the legitimate interests of stakeholdersTo ensure the Board meets its legal and reporting requirements, the management and Board work to a year planner which is structured around ensuring compliance with the legal and reporting requirements of funding organisations.

Additionally, through its Company Secretary, it has practices in place to ensure it complies with its statutory requirements.

Tessitura, the company’s customer relationship management system, enhances the already very efficient and effective management of the broad variety of stakeholders. It enables very targeted, or equally quite broad, dissemination of information.

Where not covered by statute, the company has policies, procedures and agreements in place to ensure the rights of individuals within the workplace and in a broader sense the rights of the community are recognised.

At various levels throughout the company, individuals are responsible for communicating with funding organisations, the Tasmanian Symphony Orchestra Friends, Education Committees and other key stakeholders a range of changes to the circumstances of the company. Key drivers of the strategy for reporting to funding organisations are the requirements as set out

4. promote diversityThe Board actively encourages an organisational culture that embraces diversity.

Current work practices are deliberately inclusive and a culture of respect and equality exists. Development of a formal diversity policy is being undertaken.

5. safeguard integrity in financial reportingThe 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 2013 included Donald Challen AM (Chairman), Peter Cretan, Pat Leary and David Rich. The composition of the committee for 2014 will remain the same as in 2013.

The Managing Director and Chief Financial Officer attend Audit and Risk Committee meetings.

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

22

23

The Risk Report and Risk Analysis comments on each of the following for each identified risk:

• Risk description

• Possible causes

• Possible consequences

• Current controls

• Residual risk rating

• Further actions required and due date

• Risk owner.

Additionally the Board, together with the external auditor, requires that the Managing Director and Chief Financial Officer sign a representation letter attesting to a wide range of representations including, but not limited to:

• Financial Statements give a true and fair view of the financial position, performance and cash flows of the Group

• The entity has a system of internal controls adequate to enable the preparation of accurate financial reports in accordance with Australian Accounting Standards and the Corporations Act 2001

• They acknowledge responsibility for the design, implementation and maintenance of internal controls to prevent and detect fraud

• They disclose the results of their assessment of the risk that the financial statements may be materially misstated as result of fraud.

Further, the Board and/or the Audit and Risk Committee members are freely able to make additional enquiries.

The Board recognises the potential for conflict between the Managing Director and the Artistic Director in day-to-day management issues and to this end provides guidance and oversight through the Chair on such matters.

in the Tripartite Funding Agreement 2012-2014. The requirements range from routine matters through to budgeted strategic business plans. Further to this there is regular communication by key managers and directors at senior government level.

The Annual Report for 2013 will record that the TSO had artistically, a very successful year with a small surplus. The artistic success and strategy for improving the philanthropic income stream into the future were and are, in no small amount, due to the diligence, experience and encouragement provided by the Board throughout the year.

7. recognise and manage riskThe 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.

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8. remunerate fairly and responsiblyEnterprise agreements for musicians and staff were agreed during the year.

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

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

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

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

Patricia Leary Chair 15 April 2014

GOVERNANCE REPORT

25

ORCHESTRA AND MANAGEMENT

ViolinJun Yi Ma ConcertmasterElinor Levy Associate ConcertmasterLucy Carrig Jones Principal SecondDaniel Kossov Principal FirstRohana Brown

Miranda Carson

Yue-Hong Cha

Edwina George

Michael Johnston

Christine Lawson

Alison Lazaroff-Somssich

Susanna Low

Monica Naselow

Christopher Nicholas

ViolaJanet Rutherford*

Katie Betts

Rodney McDonald

William Newbery

Anna Roach

CelloSue-Ellen Paulsen*

Ivan James

Martin Penicka

Brett Rutherford

Double BassStuart Thomson*

Robin Brawley

Michael Fortescue

FluteDouglas Mackie*

Lloyd Hudson Piccolo

OboeDavid Nuttall*

Dinah Woods Cor Anglais

ClarinetAndrew Seymour*

Chris Waller Bass Clarinet

BassoonRoger Brooke#

John Panckridge Contrabassoon

HornWendy Page*

Heath Parkinson*

Roger Jackson

Greg Stephens

TrumpetYoram Levy*

Mark Bain

TromboneDon Bate*

David Robins

Bass TromboneRobert Clark*

TubaTimothy Jones*

TimpaniMatthew Goddard*

Percussion Gary Wain*

HarpVacancy#

*principal player#guest principal

orchestra

staff

Marko Letonja Chief Conductor & Artistic Director

ExecutiveNicholas Heyward Managing DirectorKate Stuart (until June) Executive AssistantRebecca Ward (from June) Executive Assistant

Artistic ManagementSimon Rogers Manager, Artistic PlanningAlexis Aitken Artistic and Chorus CoordinatorKate Gray Education and Training Coordinator

Business ServicesColin Norris Chief Financial Officer and Company SecretaryFiona Bounds Senior Business Services OfficerHayden Jones Business Services OfficerKylie Barry (until February) Human Resources ConsultantChiara Livingston (from January) Human Resource AdvisorAmanda Elder Payroll Officer

Marketing and Business DevelopmentJohn Pugsley Manager, Marketing and Corporate PartnershipsLisa Harris (until June) Manager, Philanthropy and Special EventsRobert Gibson Publications EditorJames Burrows Marketing CoordinatorGabrielle Lis Corporate Partnerships ExecutiveBrenda Fehlberg Box Office CoordinatorDarrell Jones Assistant Box Office Coordinator

Orchestra ManagementGreg Low Orchestra Manager Jacqui Walkden Orchestral Coordinator Ian Wollstein Technical Coordinator Katey Sutcliffe Orchestra Librarian Brian Harris Production Assistant

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tso friends committeeDiane Truskett PresidentMargaret McKerracher Vice-PresidentKeith Anderson SecretaryGrant Taylor TreasurerMax CollinsMuriel MorillonTina PinkardCarol SamuelsonMike ScottLisa Harris TSO Staff Representative (until April)John Pugsley TSO Staff Representative (from May)William Newbery Player Representative (until April)Mark Bain Player Representative (from May)Total number of TSO Friends members: 557

education advisory committeesSouthern TasmaniaSusan Williams Chair Melvin Freestone Andrew Bainbridge Gaye Headlam Jan Butler Jenny Kleywegt Carolyn Cross Jennie MacDonald Mary Faulkner

Northern TasmaniaSusan Williams Chair Stephen King Barry Dudgeon Paul Mannion Heidi King Peter Quigley

TSO CHORUS, TSO FRIENDS COMMITTEE AND EDUCATION ADVISORY COMMITTEES

SopranoStephanie ArnoldMelanie BettsAlice Bowman-ShawChristine BoyceKaren CockrillCarmelita CoenRuth CroserFelicity GiffordDebra JensenLoretta Lohberger (née Johnston)Sheila KnowltonBernadette LargeHeather McCallumStephanie McDonaldChristine OvensJulianne PanckridgeCarolyn PoortenaarSharon ShermanYasmin ShoobridgeMaria Stephens

Joy TattamFrances UnderwoodSally WardSusannah Williams

AltoClaire BlichfeldtSally BrownTerry Choi-Lundberg Beth Coombe Elizabeth Eden Jennifer Fürst Ann GodberSue HarradenceChristine HarrisClare HawkinsKirsten JonesMarie KeaneFelicity KohutMary McArthurCaroline MillerJennifer Phillips

Eryl RaymondJennifer ThainSally VanceHenni VeitGillian von BertouchBeth WarrenMichelle WarrenSusan Williams

TenorAndrew BainbridgePeter BallBill FieldMichael KregorBill MacDonald Tony Marshall Dianne O’Toole David PittJames Powell-DaviesEmerson ShueyPeter Tattam Andrew Tulloch

BassJohn BallardDavid BrewerNick CaddickPhillip CookPeter CretanGreg FootGarry HarradencePeter HepburnSam HindellDuncan HowStefan KarpiniecPhillip KimberTony ParkerPaul RadfordSteve RaymondDick ShoobridgeMerv SimmonsAnthony SprentGrant Taylor

tso chorusJune Tyzack ChorusmasterAndrew Bainbridge Assistant ChorusmasterKaren Smithies Répétiteur

‘Even I am overwhelmed by the passion and romance…’

Directors’ Report 28

Statement of Profit or Loss and Other Comprehensive Income 32

Statement of Financial Position 33

Statement of Changes in Equity 34

Statement of Cash Flows 35

Notes to the Financial Statements 36

Directors’ Declaration 57

Auditor’s Independence Declaration 58

Independent Audit Report 59

ANNUAL FINANCIAL REPORT

31 DECEMBER

2013

TASMANIAN SYMPHONY ORCHESTRA HOLDINGS LIMITED (ACN 122 619 630)

WAGNER Siegfried Idyll

DIRECTORS’ REPORT


FOR THE YEAR ENDED 31 DECEMBER 2013

28

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 2013 and the auditor’s report thereon.

directorsThe directors, at any time during the financial year ended 31 December 2013 and until the date of this report, are:

Geoffrey Willis (Chairman) (retired 27 May 2013)

Patricia Leary (Deputy Chairman and Chairman) (elected Chairman 18 June 2013)

David Rich (appointed Deputy Chairman 18 June 2013)

Nicholas Heyward (Managing Director)

John Upcher

Paul Oxley

Maria Grenfell

Donald Challen AM

Peter Cretan (commenced 19 February 2013)

Christopher Lawrence (commenced 1 January 2014)

qualifications of directorsGeoffrey Willis• Bachelor of Commerce, University of Melbourne• MBA, University of Melbourne• Stanford Executive Programme• CPA• MAICD• Chairman, Colorpak Limited• Trustee of Tasmanian Museum and Art Gallery• Chairman, Aurora Energy Pty Ltd• Chairman, Tasmanian Symphony Orchestra Pty Ltd

Patricia Leary (Chairman)• MAICD• Member, Australian Institute of Judicial

Administration• Member, Australian Association of Women Judges• Chair, Northern Territory Police Arbitral Tribunal• Chair, Tasmania Police Review Board• National President, Neighbourhood Watch

Australasia Inc.• Secretary/Vice-President, Neighbourhood Watch

Tasmania• Chair, Red Cross Tasmania Bushfire Appeal 2013

Distribution Committee• Chair, Centenary of ANZAC Steering Committee• Acting Chairman, Virtuosi Tasmania Inc.• Deputy Chairman, Tasmanian Symphony Orchestra

Pty Ltd

David Rich (Deputy Chairman)• MA, PhD (University of Cambridge)• Hon. DLitt (University of Tasmania)• 125th Anniversary Coordinator, University of Tasmania• GAICD• FNGS• President of Theatre North• Director, Tasmanian Symphony Orchestra Pty Ltd

Nicholas Heyward (Managing Director)• Bachelor of Arts (Hons), University of Tasmania• MAICD• Chairman, Symphony Services International• Director, Arts Management Tasmania Pty Ltd• Member, Theatre Royal Management Board• Member, National Trust of Australia (Tasmania)

Members Advocacy Committee (Hobart)• Director, Tasmanian Symphony Orchestra Pty Ltd

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

DIRECTORS’ REPORTFOR THE YEAR ENDED 31 DECEMBER 2013

John Upcher• LLB (Hons), University of Tasmania• MAICD• Trustee of the Allport Bequest• Chairman, Property Agents Board • Member, Legal Profession Board of Tasmania• Deputy Chairman, Foundation of the Tasmanian

Museum and Art Gallery• Director, Tasmanian Symphony Orchestra

Foundation Limited• Director, Tasmanian Symphony Orchestra Pty Ltd

Paul Oxley• MBA, University of Tasmania• Bachelor of Letters, Deakin University• Diploma in Corporate Management,

Chartered Secretaries Australia• Licentiate of Music, Australian Music

Examination Board• Chartered Secretary (FCIS)• MAICD• Executive Manager and Company Secretary,

Transend Networks Pty Ltd• Director, Tasmanian Symphony Orchestra Pty Ltd

Maria Grenfell• Doctor of Musical Arts, University of Southern

California• Master of Arts, Eastman School of Music• Master of Music, University of Canterbury NZ• Senior Lecturer and Co-ordinator of Classical Music,

University of Tasmania’s Conservatorium of Music• Licentiate of Music, Trinity College, London• Represented composer, Australian Music Centre,

SouNZ Centre for New Zealand Music• Director, Tasmanian Symphony Orchestra Pty Ltd

Donald Challen AM

• Bachelor of Economics (Hons), University of Tasmania

• Master of Economics, University of Tasmania• FCA• FCPA• FAICD• FIPAA• Chairman, Tasmanian Public Finance Corporation• Chairman, Transend Networks Pty Ltd• Chairman, Motor Accidents Insurance Board• Director, Tasmanian Networks Pty Ltd• Trustee Director, Retirement Benefits Fund• Director, Tasmanian Symphony Orchestra Pty Ltd

Peter Cretan• Bachelor of Economics, University of Tasmania• Managing Director, Tasmanian Collection Service• Managing Director, Shoreline Hotel• Director, Kriticos Nominees Pty Ltd• Director, Cradle Mountain Willderness Village Pty Ltd• Director, Plastic Fabrications Pty Ltd• Chair, Board of Management,

Tasmanian University Union• Licentiate of Music• Director, Tasmanian Symphony Orchestra Pty Ltd

Christopher Lawrence• Broadcaster, Australian Broadcasting Corporation• Director, Tasmanian Symphony Orchestra Pty Ltd

company secretary Colin Norris FIPA, MAICD, GIA(Cert)

principal activitiesThe principal activities of the Orchestra during the year ended 31 December 2013 were the performance and recording of orchestral music. There were no significant changes in the nature of the activities of the Orchestra during the year.

DIRECTORS’ REPORT



30

review and results of operationsThe orchestra gave 72 performances during the 12 months ended 31 December 2013. The concerts held throughout Tasmania were anchored around 12 Master Series concerts in Hobart and six Launceston Series concerts. Two notable collaborations were those with the Museum of New and Old Art (MONA) in the ‘Dark MOFO Festival’ and Terrapin Puppet Theatre in a production of ‘Shadow Dreams’. Another collaboration was with the Hush Music Foundation and included the finalisation and ultimately the launch of a recording of 12 new Australian compositions. There were also numerous recordings and national broadcasts of concerts.

The operating result for the year ended 31 December 2013 amounted to a profit of $995 following a loss of $40,229 for the year ended 31 December 2012.

changes in state of affairsIn the opinion of the directors, there were no significant changes in the underlying state of affairs of the Group that occurred during the year ended 31 December 2013.

likely developmentsThe Orchestra will continue to present performances of music during the next financial year. The Orchestra’s continuing success is dependent on an appropriate level of government funding, corporate sponsorship, donations and ticket sales.

dividendsNo dividends were paid or proposed during the financial year.

indemnification and insurance of officers and auditorsIndemnification

Since the end of the previous financial year, the Orchestra has not indemnified nor made a relevant agreement for indemnifying against a liability any person who is or has been an officer or auditor of the company.

Insurance premiums

During the financial period, the Orchestra has paid premiums in respect of directors’ and officers’ liability insurance, legal expenses and insurance contracts for the period ended 31 December 2013. Since the end of the financial period, the Orchestra has paid or agreed to pay premiums in respect of such insurance contracts for the year ended 31 December 2014. Such insurance contracts insure persons who are or have been directors or officers of the Group 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 dateNo events have occurred subsequent to balance date that materially affect operations of the Orchestra, or the results of those operations or the state of affairs of the Orchestra in future years.

directors’ meetingsThe number of meetings of the Board of Directors and of Board Committees during the financial year were:

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

Geoffrey Willis (Chairman) (retired 27 May 2013)

5 4 3 2 - - - -

Patricia Leary (Chairman) 12 11 6 5 1 1 - -

David Rich (Deputy Chairman) 12 11 6 6 1 1 - -

Nicholas Heyward (Managing Director) 12 9 - - 1 1 - -

John Upcher 12 9 - - - - - -

Paul Oxley 12 10 - - - - - -

Maria Grenfell 12 6 - - - - - -

Donald Challen AM 12 12 6 6 - - - -

Peter Cretan 12 9 5 3 - - - -

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

auditor’s independence declarationThe directors have received a declaration from the auditor, which is attached to this report.

Signed in accordance with a resolution of the directors made pursuant to s.298(2) of the Corporations Act 2001:

Patricia LearyDirectorHobart, 18 March 2014


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

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

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

CONSOLIDATEDcontinuing operations Note 31/12/13 31/12/12

$ $

REVENUESFunding revenue direct from government 4 8,259,115 8,023,874Ticket sales 5 1,338,932 1,203,257Sponsorship and donation revenue 6 535,898 523,310Other revenue 7 627,093 1,140,191

10,761,038 10,890,632

EXPENSESEmployee expenses 6,447,309 6,430,886Artists’ fees and expenses 847,005 893,794Marketing expenses 576,756 463,647Production expenses 1,033,874 1,271,477Symphony Services International service fee 335,999 364,605Accommodation expenses 464,465 469,701Travel expenses 227,003 242,149Other expenses from ordinary activities 682,196 662,164Depreciation and amortisation 12 145,436 132,438

10,760,043 10,930,861

Net profit/(deficit) before income tax 995 (40,229)

Income tax 2e - -

Net profit/(deficit) for the year 995 (40,229)

Other comprehensive income - -

Total comprehensive income for the year 995 (40,229)

CONSOLIDATEDNote 31/12/13 31/12/12

$ $

CURRENT ASSETSCash assets 20a 5,396,616 4,036,100Trade and other receivables 9 258,124 373,256Other financial assets 20c 608,075 2,018,666Other current assets 10 159,354 148,122

Total current assets 6,422,169 6,576,144

NON-CURRENT ASSETSPlant and equipment 12 1,380,503 1,219,039

Total non-current assets 1,380,503 1,219,039

TOTAL ASSETS 7,802,672 7,795,183

CURRENT LIABILITIESTrade and other payables 13 274,672 476,814Borrowings 14 12,377Unearned revenue 15 1,595,592 1,480,512Provisions 16 1,527,889 1,547,712

Total current liabilities 3,410,530 3,505,038

NON-CURRENT LIABILITIESBorrowings 14 61,618Provisions 16 252,122 212,738

Total non-current liabilities 313,740 212,738

TOTAL LIABILITIES 3,724,270 3,717,776

NET ASSETS 4,078,402 4,077,407

EQUITYContributed equity 17 175,214 175,214Retained earnings 3,234,522 3,233,527Reserves Incentive Scheme reserve 19 668,666 668,666

TOTAL EQUITY 4,078,402 4,077,407

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

AS AT 31 DECEMBER 2013

STATEMENT OF FINANCIAL POSITION

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


CONSOLIDATEDIssued

CapitalRetained Earnings

Other Reserves (Note 19)

Total Equity

$ $ $ $

As at 1 January 2012 175,214 3,273,756 668,666 4,117,636

Total comprehensive income for the year - (40,229) - (40,229)

As at 31 December 2012 175,214 3,233,527 668,666 4,077,407

Total comprehensive income for the year - 995 - 995

As at 31 December 2013 175,214 3,234,522 668,666 4,078,402

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


STATEMENT OF CHANGES IN EQUITY



CONSOLIDATEDNote 31/12/13 31/12/12

$ $

CASH FLOWS FROM OPERATING ACTIVITIESCash receipts in the course of operations 2,247,860 2,524,152Cash payments in the course of operations (10,802,005) (10,465,458)Grants received from government funding bodies 8,467,236 8,041,839Interest received 269,739 395,734

Net cash flows from operating activities 20b 182,830 496,267

CASH FLOWS FROM INVESTING ACTIVITIESReceipt of cash upon expiry of held to maturity investments 1,410,591 180,000Payment for plant and equipment (220,528) (23,213)

Net cash flows from (used in) investing activities 1,190,063 156,787

CASH FLOWS FROM FINANCING ACTIVITIESRepayment of borrowings (12,377) -

Net cash flows used in financing activities (12,377) -

NET INCREASE/(DECREASE) IN CASH HELD 1,360,516 653,054

Cash at the beginning of the financial year 4,036,100 3,383,046

CASH AT THE END OF THE FINANCIAL YEAR 20a 5,396,616 4,036,100

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


STATEMENT OF CASH FLOWS



NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

1. corporate information The financial report of Tasmanian Symphony Orchestra Holdings Limited and its controlled entity for the year ended 31 December 2013 was authorised for issue in accordance with a resolution of directors on 18 March 2014.

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

Federation Concert Hall 1 Davey Street Hobart TAS 7000

The nature of the operations and principal activities of the Group are 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, unless otherwise noted.

b) Statement of complianceThe financial report is a general purpose financial report which has been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and complies with other requirements of the law.

For the purposes of preparing the financial report, 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.

Accounting Standards and Interpretations issued but not yet effective

There are a number of Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective, and have not been early-adopted by the company for the financial report for the year ending 31 December 2013. The company does not expect the impact of these standards and interpretations will have a material impact on the company’s financial position and performance.

c) Basis of consolidationThe consolidated financial statements comprise the financial statements of Tasmanian Symphony Orchestra Holdings Limited and its subsidiary as at 31 December 2013.

The financial statements of subsidiaries 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 and 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 recognitionConcert revenue

Concert revenue is recognised at the time of concert performance.

Funding revenue

Funding revenue comprises grants from the Australia Council (as represented by the Major Performing Arts Board) and the State Government of Tasmania through the Treasurer and Minister for the Arts and the Department of Economic Development, Tourism and the Arts.

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

ICON funding grant revenue is received from the State Government of Tasmania through the Department of Economic Development, Tourism and the Arts.

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.

e) TaxationIncome 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.




2. statement of significant accounting policies (continued)

g) Impairment of non-financial assets other than goodwillIntangible 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 equivalentsCash 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 receivablesTrade and other receivables, which generally have 60-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.

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 doubtful debts is raised when there is objective evidence that the company will not be able to collect the debt.

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

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

Depreciation and amortisation

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





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

Asset class Depreciation ratesPlant and equipment 6.5% - 9%Leasehold improvements Straight-line over a period of 20-year leaseFurniture and fittings 10%Office equipment 10%Computer equipment 20%Motor vehicles Straight-line over a period of seven years

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

k) Leased plant and equipmentLeases 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 comprehensive income on a straight-line basis over the lease term.

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

m) Employee benefitsWages, salaries and annual leaveThe 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. The provisions have been calculated at undiscounted amounts based on current wage and salary rates and include related on-costs.

The carrying amount of the provision approximates net fair value.

Long service leaveThe 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.




2. statement of significant accounting policies (continued)

m) Employee benefits (continued)

Long service leave (continued)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 plansThe Group contributes to several accumulation superannuation plans.

Employer contributions in relation to the year ended 31 December 2013 have been expensed in the statement of 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.

n) 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.

o) 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.

p) Equity instrumentsAn equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Group’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments.

3. significant accounting judgements, estimates and assumptionsThe 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 Group assesses impairment of its non-financial assets at each reporting date by evaluating conditions specific to the Group and to the specific asset. If an impairment trigger exists the recoverable amount of the asset is determined. The Group 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 office premises. The estimate is periodically reviewed and updated. In the event that the provision is material it will be present valued. The related carrying amounts are disclosed in note 16.

Estimate of useful lives

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




CONSOLIDATED 31/12/13 31/12/12 $ $4. funding revenue

Government direct fundingAustralia Council Annual grant 6,131,515 5,987,808 MPAB Philanthropy Tour New York - 4,000 Indigenous Mentorship Grant 20,000 - 6,151,515 5,991,808

Tasmanian Department of Economic Development, Tourism and the Arts Annual grant 1,532,879 1,496,952 ICON funding 500,000 500,000 Shadow Dreams 23,356 - 2,056,235 1,996,952

Local government 10,215 10,114Other funding 41,150 25,000 8,259,115 8,023,874

A significant portion of the Group’s annual revenue consists of funding from the Australian Government and Tasmanian Government, through the Australia Council and the Tasmanian Department of Economic Development, Tourism and the Arts.

5. ticket sales

Subscription sales 520,483 537,682Single ticket sales 818,449 665,575

1,338,932 1,203,257





CONSOLIDATED 31/12/13 31/12/12 $ $6. sponsorship and donation revenue

Corporate sponsorship 325,884 238,985Corporate donations 30,446 56,715Individual donations 179,568 227,610

535,898 523,310

7. other revenueInterest income 277,409 340,593Orchestral hire 116,278 321,439Royalties 1,469 224The Australian Ballet, Perth season - 229,161Other 231,937 248,774

627,093 1,140,191

8. profit from continuing operationsProfit for the year from continuing operations has been arrived at after charging the following items:Depreciation: Plant and equipment 93,608 87,684 Leasehold improvements 28,402 31,699 Furniture and fittings 564 627 Office equipment 1,836 1,911 Computers 8,649 10,517 Motor vehicles 12,377 -

145,436 132,438Superannuation payments 877,478 966,074Operating lease payments 272,427 283,538




CONSOLIDATED 31/12/13 31/12/12 $ $9. trade and other receivables

Current Trade receivables 258,124 373,256 258,124 373,256

Past due but not impaired

Trade receivables over 60 days are past due but not impaired, as there is no objective evidence at reporting date that the Group will not be able to collect all amounts due.Trade receivables ageing 0 to 60 days 250,049 329,75561 to 90 days (past due but not impaired) - 12,303Over 90 days (past due but not impaired) 8,075 31,198

258,124 373,256

10. other assetsCurrent Prepayments 92,999 88,181Accrued income 66,355 59,941 159,354 148,122

11. parent entity informationInformation relating to Tasmanian Symphony Orchestra Holdings LtdCurrent assets 13,364 12,325Total assets 1,187,819 1,186,799Current liabilities 116 70Total liabilities 116 70Retained earnings 1,187,703 1,186,729Total shareholders’ equity 1,187,703 1,186,729

Profit of parent entity 974 1,108Total comprehensive income of the parent entity 974 1,108





12. property, plant and equipmentMusical

instruments and equipment

Leasehold improvements

Furniture and fittings

Office equipment

Computer equipment

Motor vehicle

Total

$ $ $ $ $ $ $CostOpening balance, 1 January 2013 1,477,551 396,028 13,984 35,873 87,259 - 2,010,695Adjustment (2) - - 1 2 - 1Additions 69,409 140,853 - - 10,265 86,372 306,899Disposals - - - - - - -Closing balance 1,546,958 536,881 13,984 35,874 97,526 83,372 2,317,595

Accumulated depreciationOpening balance, 1 January 2013 (495,295) (191,166) (8.349) (24,100) (72,747) - (791,657)Depreciation expense (93,608) (28,402) (564) (1,836) (8,649) (12,377) (145,436)Adjustment (1) 3 (1) - - 1Disposals - - - - - - 1Closing balance (588,903) (219,569) (8,910) (25,937) (81,396) (12,377) (937,092)

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

Net book value, 31 December 2012 982,256 204,862 5,635 11,773 14,512 - 1,219,039

Musical instruments and equipment

Leasehold improvements

Furniture and fittings

Office equipment

Computer equipment

Total

$ $ $ $ $ $

CostOpening balance, 1 January 2012 1,314,084 538,163 13,984 35,873 115,744 2,017,848Reclassification adjustment 142,135 (142,135) - - - -Additions 21,332 - - - 4,307 25,639Disposals - - - - (32,792) (32,792)Closing balance 1,477,551 396,028 13,984 35,873 87,259 2,010,695

Accumulated depreciationOpening balance, 1 January 2012 (384,359) (182,719) (7,722) (22,189) (92,595) (689,584)Depreciation expense (87,684) (31,699) (627) (1,911) (10,517) (132,438)Reclassification adjustment (23,252) 23,252 - - - -Disposals - - - - 30,365 30,365Closing balance (495,295) (191,166) (8,349) (24,100) (72,747) (791,657)

Net book value, 31 December 2012 982,256 204,862 5,635 11,773 14,512 1,219,039

Net book value, 31 December 2011 929,725 355,444 6,262 13,684 23,149 1,328,264

The parent company does not hold any property, plant and equipment so only the consolidated property, plant and equipment are shown.




CONSOLIDATED 31/12/13 31/12/12 $ $

13. trade and other payablesTrade payables 118,097 191,043Other payables and accruals 156,575 285,771 274,672 476,814

Trade and other payables ageing 0 to 60 days 274,672 471,21461 to 90 days - -Over 90 days - 5,600

274,672 476,814

14. borrowingsCurrent 12,377 -Non-current 61,618 -

These borrowings are in respect of a motor vehicle over which a chattel mortgage is held.

15. unearned revenueFunding grants in advance Tasmanian Department of Economic Development, Tourism and the Arts 1,013,583 805,462 1,013,583 805,462

Ticket sales 545,618 675,050Other 36,391 -

1,595,592 1,480,512





CONSOLIDATED 31/12/13 31/12/12 $ $

16. provisionsCurrent Current employee entitlements 1,527,889 1,547,712 1,527,889 1,547,712

Non-current Non-current employee entitlements 195,847 158,102Make-good provision Opening balance 54,637 53,045Arising during the year 1,638 1,591 56,275 54,636

252,122 212,738

17. contributed equity

222,372 fully-paid ordinary shares 175,214 175,214 175,214 175,214

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

18. guaranteeEach member undertakes to contribute to the property of the company if the company is wound up while he, she or it is a member or within 1 year after he, she or it ceases to be a member, for payment of the company’s debts and liabilities contracted before he, she or it ceases to be a member and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributories among themselves, such amount as may be required, but not exceeding $1.00.




19. reserves Reserves Incentive Scheme reserve

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. All income received on the funds received must be re-invested with the funds received and held in escrow until the Group has reached 20% of its annual costs as net assets to be determined on the basis of the audited financial result for that year. The term of escrow is 15 years from the date of the last payment by government into the reserve. Net assets reached the required 20% during the year ended 31 December 2006.

CONSOLIDATED 31/12/13 31/12/12 $ $

Opening balance at the beginning of the year 668,666 668,666Accumulated funds at the end of the year 668,666 668,666





20. statement of cash flows a) 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 overdrafts. An amount of $668,666 is included in the cash balance and represents a deposit into the Reserves Incentive Scheme account. This amount is held in escrow and is unencumbered in accordance with the Reserves Incentive Scheme Agreement. Cash assets as at the end of the financial year as shown in the statement of cash flows are as follows:

CONSOLIDATED 31/12/13 31/12/12 $ $

Cash and cash equivalents 5,396,616 4,036,100 5,396,616 4,036,100

b) Reconciliation of surplus from ordinary activities to net cash from operating activitiesProfit/(loss) from ordinary activities 995 (40,229)Add/(less) non-cash items: Depreciation 145,436 132,438Net cash from operating activities before change in assets and liabilities 146,431 92,209Change in assets and liabilities: (Increase)/decrease in trade and other receivables (19,562) (100,793)(Increase)/decrease in prepayments (11,232) 112,762Increase/(decrease) in trade and other payables (115,132) 57,809Increase/(decrease) in unearned revenue (202,142) 123,350Increase/(decrease) in provisions 115,079 210,930Net cash flows from operating activities 182,830 496,267

c) Investments in financial assetsHeld to maturity 608,075 2,018,666

608,075 2,018,666

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




CONSOLIDATED 31/12/13 31/12/12 $ $21. employee entitlements

Current 1,527,889 1,547,712Non-current 195,847 158,102

1,723,736 1,705,814

Aggregate employee entitlements presented above include on-costs.At year end, the Group employed 76 full-time equivalent employees (2012 – 76 full-time equivalent employees).

22. key management personnel a) Details of key management personnel

(i) DirectorsGeoffrey Willis Chairman (retired 27 May 2013)Patricia Leary Chairman (elected 18 June 2013)David Rich Deputy ChairmanNicholas Heyward Managing DirectorJohn Upcher DirectorPaul Oxley DirectorMaria Grenfell DirectorDonald Challen AM DirectorPeter Cretan Director (commenced 19 February 2013)

(ii) ExecutivesColin Norris Chief Financial Officer and Company SecretaryJohn Pugsley Manager, Marketing and Corporate PartnershipsSimon Rogers Manager, Artistic PlanningGreg Low Orchestra ManagerLisa Harris Manager, Philanthropy and Special Events

b) Compensation of key management personnel 31/12/13 31/12/12 $ $

Short-term employee benefits 672,521 699,007Post-employment benefits Superannuation 105,529 147,331Termination benefit 27,917 -Total compensation 805,967 846,338





23. related parties a) Directors

The names of each person holding the position of director of Tasmanian Symphony Orchestra Holdings Limited during the financial year are:

G Willis, P Leary, N Heyward, J Upcher, P Oxley, D Rich, M Grenfell, D Challen AM, P Cretan.

N Heyward is the CEO. M Grenfell is an occasional guest speaker with the Group. All other directors receive nil remuneration.

Unless otherwise stated directors have been in office for the financial year.

Director J Upcher is the Company-nominated director of Tasmanian Symphony Orchestra Foundation Ltd (ACN 131 401 440).

b) Other transactions and balances with key management personnel and their related partiesA director, Patricia Leary, was a committee member of Virtuosi Tasmania Inc. (ABN 87 407 472 627). All dealings with Virtuosi Tasmania Inc. are in the normal course of business. The company provided services to Virtuosi Tasmania Inc. during the year amounting to $2,347 (GST inclusive) (2012 – $2,427 GST inclusive).

A director, Nicholas Heyward, was a director of Arts Management Tasmania Pty Ltd (ABN 84 123 201 472) trading as Handmark Gallery. All dealings with Handmark Gallery are in the normal course of business. Handmark Gallery provided services to the company during the year amounting to $790 (GST inclusive) (2012 – nil).

A director, Nicholas Heyward, was a director and chairman of directors of Symphony Australia Ltd (ABN 69 121 149 755) trading as Symphony Services International. All dealings with Symphony Services International are in the normal course of business. Symphony Services International provided services to the company during the year amounting to $369,599 (GST inclusive) (2012 – $404,879 GST inclusive). The company provided services to Symphony Services International during the year amounting to $89,100 (GST inclusive) (2012 - $60,500 GST inclusive).

A director, Nicholas Heyward, was a director of the Theatre Royal Management Board (ABN 90 787 656 266) trading as Theatre Royal Hobart. All dealings with Theatre Royal Hobart are in the normal course of business. Theatre Royal Hobart provided services to the company during the year amounting to $23,805 (GST inclusive) (2012 – $26,442).

A director, John Upcher, was a consultant to Dobson Mitchell & Allport (ABN 88 989 504 094). All dealings with Dobson Mitchell & Allport are in the normal course of business. Dobson Mitchell & Allport did not provide services to the company during the year. (2012 - $464 GST inclusive).




23. related parties (continued)A director, John Upcher, was a director of Tasmanian Symphony Orchestra Foundation Ltd (ACN 131 401 440). Tasmanian Symphony Orchestra Foundation Ltd acts as Trustee for the TSO Foundation Trust (ABN 59 473 228 118). All dealings with Tasmanian Symphony Orchestra Foundation Ltd are in the normal course of business. The company provided administrative assistance to Tasmanian Symphony Orchestra Foundation Ltd during the year. The TSO Foundation Trust distributed $8,244 (GST exclusive) to the company during the year (2012 - $22,871 GST exclusive).

A director, David Rich, was Provost of the University of Tasmania (ABN 20 056 132 661) trading as University of Tasmania. The company provided a grant of $22,000 (GST inclusive) for support of the ‘Shadow Dreams’ project, a collaboration between the company and Terrapin Puppet Theatre and services amounting to $240 (GST inclusive) to the University of Tasmania during the year (2012 - nil). The University of Tasmania provided services to the Company amounting to $239 during the year (GST inclusive where applicable) (2012 - $2,855).

A director, David Rich, was a member of the Theatre North Management Committee (ABN 21 724 173 054) trading as Theatre North Inc. Theatre North Inc. provided services to the company amounting to $20,153 during the year (GST inclusive where applicable) (2012 – $6,671 GST inclusive where applicable).

A director, Maria Grenfell, was a senior lecturer at the Conservatorium of Music, University of Tasmania (ABN 20 056 132 661) trading as University of Tasmania. The company provided a grant of $22,000 (GST inclusive) for support of the ‘Shadow Dreams’ project, a collaboration between the company and Terrapin Puppet Theatre and services amounting to $240 (GST inclusive) to the University of Tasmania during the year (2012 - nil). The University of Tasmania provided services to the Company amounting to $239 during the year (GST inclusive where applicable) (2012 - $2,855).

A director, Peter Cretan, was a director of Saveloss Nominees Pty Ltd (ABN 54 473 945 540) trading as Tasmanian Collection Service. Tasmanian Collection Service provided services to the company amounting to $385 during the year (GST inclusive) (2012 – $311 GST inclusive).

c) SubsidiaryThe consolidated financial statements as at 31 December 2013 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.

d) Ultimate parentTasmanian Symphony Orchestra Holdings Limited is the ultimate parent entity.





24. auditor remuneration CONSOLIDATED 31/12/13 31/12/12 $ $

Auditing the financial report 21,300 20,320Other services - -

21,300 20,320

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.

25. expenditure commitmentsArtists’ fees contracted for but not provided for and payable Not later than one year 155,000 188,500Later than one year and not later than five years 480,000 25,000

635,000 213,500

Capital equipment contracted for but not provided for and payable Not later than one year - 35,877

- 35,877

Lease of offices and rehearsal facilities contracted for but not provided for and payable Not later than one year 260,000 260,000Later than one year and not later than five years 1,040,000 1,040,000Later than five years 498,333 758,333

498,333 2,058,333

26. economic dependencyTasmanian Symphony Orchestra Holdings Ltd is economically dependent on the ongoing annual funding from the Australian Government and the Tasmanian Government through the Australia Council and the Tasmanian Government Department of Economic Development, Tourism and the Arts to operate as a going concern.

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




27. additional financial instrument disclosure a) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Group’s short-, medium- and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

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

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





31 December 2013

Weighted average

interest rate

Less than one month

One to three

months

Four months to one year

Greater than one

year

Total

Financial assets $ $ $ $ $Fixed interest instruments 4.17% 1,000,000 2,568,666 600,000 - 4,168,666Receivables – note 9 - 250,049 8,075 - 258,124 1,000,000 2,818,715 608,075 - 4,426,790

Financial liabilities Accounts payable – note 13 274,672 - - - 274,672Borrowings – note 14 8.95% 1,031 3,094 8,252 61,618 73,995 275,703 3,094 8,252 61,618 348,667

31 December 2012

Weighted average

interest rate

Less than one month

One to three

months

Four months to one year

Greater than one

year

Total

Financial assets $ $ $ $ $Other financial assets 5.03% 1,510,731 1,250,000 2,018,666 - 4,799,397Receivables – note 9 - 342,058 31,198 - 373,256 1,510,731 1,592,058 2,049,864 - 5,125,653

Financial liabilities Accounts payable – note 13 - 471,214 - 5,600 476,814 - 471,214 - 5,600 476,814

27. additional financial instrument disclosure (continued)

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

c) Credit risk exposureThe Group’s maximum exposure to credit risk at balance date in relation to each class of recognised financial liabilities is the carrying amount of those liabilities as indicated in the statement of financial position and related notes.

The company’s exposure to credit risk associated with cash and cash equivalents is minimised through depositing monies across a spread of banking institutions.

28. subsequent eventsNo events have occurred subsequent to balance date that materially affect operations of the Group, or the results of those operations or the state of affairs of the Group in future years.







DIRECTORS’ DECLARATION

In the opinion of the directors of Tasmanian Symphony Orchestra Holdings Limited:

(a) the financial statements and notes are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the financial position of the Group as at 31 December 2013 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) complying with Accounting Standards and the Corporations Act 2001; and

(b) there are reasonable grounds to believe that the company 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 s295(5) of the Corporations Act 2001:

Patricia LearyDirectorHobart, 18 March 2014


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Tasmanian Symphony Orchestrawww.tso.com.au

Federation Concert Hall, 1 Davey Street, Hobart Tasmania 7000 AustraliaGPO Box 1450 Hobart TAS 7001 Australia

ABN 81 088 230 184

Box OfficeFreecall 1800 001 190Telephone 03 6232 4450Facsimile 03 6232 4455E-mail [email protected]

AdministrationTelephone 03 6232 4444International Telephone +61 3 6232 4444Facsimile 03 6232 4455International Facsimile +61 3 6232 4455E-mail [email protected].

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

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