2013ANNUAL REPORT

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Open Channel acknowledges the generous support of

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CONTENTS

28 - A VOICE ON SCREEN FOR ALL VICTORIANS

29 - Short & Sharp Regional

29 - Framed Regional

30 - Regional Short Courses

31 - Yarnin

32 - AFFORDABLE ACCESS TO CUTTING EDGE PRODUCTION FACILITIES

33 - Open Channel’s New Home

34 - Industry Skills Centre Launch

35 - Farewell to Shed 4

35 - Mobile Training Unit

36 - Staffing Changes

36 - Governance

37 - FINANCIAL STATEMENTS

38 - Treasurers Report

39 - Directors’ Declaration

40 - Auditor’s Independence Declaration

41 - Independent Audit Report

43 - Statement of Comprehensive Income

44- Statement of Financial Position

45 - Statement of Changes of Equity

46 - Statement of Cash Flows

47 - Notes to the Financial Statements

50 - Statutory Reporting Requirements

5 - Open Channel’s Vision

6 - Board of Directors

8 - Directors’ Statement

10 - Testimonials

12 - CREATING PATHWAYS TO THE SCREEN INDUSTRY

13 - Raw Nerve Production Initiative

14 - Framed Industry Seminars

15 - Short & Sharp Pitching Competition

15 - Short & Sharp Pro

16 - Generation Next Kids Conference

17 - Generation Next Facing Up To Reality Conference

18 - NITV Production Initiative

19 - Local Air Production Initiative

19 - Social Media & Website

20 - WHERE CREATIVE INDIVIDUALS BECOME INDUSTRY PROFESSIONALS

21 - Advanced Diploma of Screen and Media

22 - Certificate III in Media

23 - Short Courses

23 - Customised Training

23 - Industry Engagement

24 - International Opportunities

26 - Student Achievements

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

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

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

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

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

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

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BOARD OF DIRECTORS

Ms Leslie Wood (Chair)

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

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

Mr Chris Ryan (Secretary)

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

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

Mr Simon Britton

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

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

Dr Lisa Dethridge

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

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

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Mr Frank Druda (Treasurer)

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

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

Ms Jenny Lalor

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

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

Ms Lindsay Lipson

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

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

Ms Caroline Waters

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

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

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DIRECTORS’ STATEMENTMarc Gracie, Executive Director and

Leslie Wood, Chair of the Open Channel Board

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2013 was a successful year for Open Channel, highlighted by the organisation’s relocation to its

new home in the newly constructed Industry Skills Centre located at Melbourne’s Docklands

Studios.

All credit must go to the Open Channel team who worked hard to make the seamless transition

from our Shed 4 premises to this purpose built space. Throughout the move we continued to

successfully run a number of high profile programs including the Generation Next: Facing Up

To Reality and Generation Next: Kids Conferences, Framed seminar series and our training and

production programs including Raw Nerve and the Regional Indigenous web series “Yarnin”.

At the same time we doubled the applications and attendees for many of these programs.

In addition to this, we began a number of new programs in 2013, including an Indigenous

production/training documentary initiative for NITV, which delivers to the broadcaster six

short films directed by emerging Aboriginal and Torres Strait Islander filmmakers. And, for

our students, expanded opportunities for industry engagement through six international travel

scholarships to commence in 2014.

Our financial position shows a stronger asset base, with the construction of the Resource

Centre being completed on budget, along with the generation of a number of new sources of

income through new grants, fellowships and broadcasters’ fees. This solid position has been

achieved despite the impact of the loss of the Shed 4 revenue and with the appointment to the

team of Rose Scasni as General Manager.

Thank you to Staff and Board members who continue to make exciting things happen at

Open Channel. Whether it be broadcast outcomes with our Raw Nerve short films poised

to be broadcast in a primetime slot on ABC2 in 2014, our growing indigenous and regional

engagement, or our eye catching Mobile Training Unit travelling throughout Victoria.

As all things change, so, too, does Open Channel. We have seen some very welcome moves

in 2013 that place us in a strong position to play our part in the screen landscape into the

future. We are confident that Open Channel’s future will see continued growth through 2014

allowing it to continue to expand it’s intelligent, screen industry engaged programs and quality

training that give emerging and early career filmmakers the knowledge and inspiration to write,

produce and deliver the best in Australian screen production.

Marc Gracie Leslie WoodExecutive Director Chair

Open Channel Open Channel Board

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TESTIMONIALS

“Open Channel was a great way for me to get support and guidance with my filmmaking, which can be difficult to attain as an aspiring director in a small industry. The feedback I received, from the script development process through to post production, was invaluable, as were the professional contacts and relationships I formed through working with Marc Gracie and his team at Open Channel.”Summer DeRoche – Raw Nerve Filmmaker 2013

“Our Film Industry is often very critical of its achievements and potential for success but over recent years I have been encouraged by a feeling of great energy and enthusiasm and a willingness to invest time and effort into getting our Australian Films and Television projects developed and realised. A key factor in this positive feeling has been the role of Open Channel which provides training and resources for those who want to play key roles in our Industry and an opportunity to meet and work with others who share the same passion and commitment. I wish Open Channel had been in existence when I was young.”Alan Finney, Chair of AFI

“From the day I walked in the door after being shortlisted for Open Channel’s Short & Sharp Pitching Competition, the career guidance, enthusiasm of the staff, training and mentoring prepared and paved the way for my entry into the Professional Screen Industry.”Jehan Ratnatunga – YouTube

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“Open Channel fulfils a unique role in the Australian media industry, particularly in Victoria. It not only provides emerging talent with vital access to relationships and experience through the industry practitioners it is able to call upon but as one of those practitioners myself I also gain inspiration and energy from the quality of the students and the enthusiasm and vision of Open Channel itself. In a time of rapid change within the film and television industry what the Open Channel environment can provide is going to become even more important.”David Redman, Producer

“It’s been lovely having the wonderful opportunity to work with all you mob at Open Channel and all the staff have been amazing support. Thank you Open Channel... so much for the opportunity to be a part of this NITV and Open Channel program.” Kerri-Lee Harding, Indigenous Certificate III student

“As a mid career screen practitioner who has run a sole trader film production business for the past 15 years, I have found the project and mentoring provided by the Advanced Diploma Open Channel course to be tremendously useful. It has helped me understand the conventions and devices of formal television screen writing and is providing invaluable project mentorship for my television series while I develop it into a marketable commodity. This course is essentially providing the missing piece in the puzzle for local screenwriters and filmmakers who work in isolation and can get `stuck’ in the developmental stages of the screenwriting process; it’s a forum to thrash out original ideas, scrutinise what works and doesn’t work via a jury a group of peers and industry experts and essentially develop ideas into better quality marketable screenplays.”Rachael Lucas - 2013 Advanced Diploma student (writer), finalist in AWG Inside the Box competition 2013

“Open Channel is that accessible bridge between desire and action when it comes to visual story telling and never has the organisation been more relevant. From the largest telcos to the smallest distributors we are all recognising the value of new story telling methods in new mediums from big screens to tablet screens. I know with certainty we will see a swath of big talent emerge and in Victoria many of them will have gotten their start at Open Channel. Open Channel has been on-top of the emerging trends and their response ahead of the curve.”Seph McKenna - Head of Australian Production, Roadshow Films

TESTIMONIALS

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CREATING PATHWAYS TO THE SCREEN INDUSTRY

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

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

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RAW NERVE PRODUCTION INITIATIVE

Raw Nerve is a Screen Network (SN) national production initiative supported by Screen Australia. Open Channel offers a select number of emerging Victorian filmmakers the opportunity to make a high quality, low budget short film with support from leading industry experts. In recent years Open Channel has developed Raw Nerve into a highly prized pathway for emerging filmmakers by providing an experienced Producer in the role of Supervising Producer, and through significant in-kind support from Deluxe DPP, Chameleon Casting, and Micsound.

The 2013 Raw Nerve films will be broadcast in special packaged time slots on ABC2. This broadcast outcome saw Raw Nerve applications rise by 20%. Open Channel has been the leading organisation in the Screen Networks negotiating and securing the ABC2 broadcast outcome for the 2014 round of Raw Nerve films. (Screen Australia has supported Raw Nerve since 2002).

The filmmakers and their projects selected for the 2013 Raw Nerve initiative are:

SMALLSummer DeRoche (Director) & Christian White (Writer)A young woman unintentionally alienates her date by pandering to his dwarfism. Amy is excited about her second date with Bill, but she’s nervous about being politically incorrect towards his dwarfism. In a misguided attempt to show Bill that she is open minded, she panders to his small stature in a series of ridiculous and alienating ways.

DINNER FOR THREE Tegan Higginbotham (Writer), Dylan Watson (Writer), Joel Kohn (Writer / Director) & Tom Davies (Producer)…Two’s company, three’s a date. A mid 20’s Uni student, Archie, happens across an upper class restaurant where his girlfriend is on a date with another man. Instead of making a scene, Archie joins them for dinner and attempts to salvage his troubled relationship, dragging the threesome into a hilariously painful fine-dining experience.

LUNCH DATEIan Hillman (Writer) & David Willing (Writer / Director)Nadia and Tom have a great thing going since they met online until they actually start to talk. Talking in the post internet dating world sometimes doesn’t really help. Nadia and Tom have been rendezvousing at a classy hotel once a week on their lunch break but have never really spoken to each other. When Tom plucks up the courage to ask Nadia on an actual date, the two become entangled in a very modern version of the age old battle of courtship in a post internet dating world, which threatens to ruin everything before it’s begun.

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

In 2013 we delivered the following forums:

1. NEXT STOP HOLLYWOOD (6th March 2013)Featuring Next Stop Hollywood series Director Gary Doust, series Editor Julie-Anne DeRuvo and Actors Craig Anderson and Hai Ha Le, the panel discussed the making of the show and provided further insights into the Hollywood Casting process.

2. SO YOU WANNA BE A FILMMAKER? (29th May 2013)Presented as part of the St Kilda Film Festival, this forum presented an insight into the realities of working in the industry, the highs and lows and real opportunities that exist for emerging and aspiring filmmakers.Moderated by Caroline Waters with a panel of working practitioners including Jonathan auf der Heide (writer/director Van Diemens Land), David Hawkins (Director and DOP of video content for VevaTV), Gretchen Thornburn (Sound Recordist Killer Elite), Julie Belle (past Head of Design at the ABC) and Daniel Schultheis (Open Channel).

3. THE PERFECT PITCH (22nd August 2013)Led by Australian comedy icons, Tim Ferguson and Stephen Luby, the session highlighted the elements required to make a compelling and persuasive pitch for your project. The session also launched Open Channel’s much anticipated intitative Short & Sharp Pitching Competition for 2013, as well as the Producer oriented Short & Sharp Pro.

4. MARKETING, FUNDING AND MONSTERISING THE FUTURE (24th November 2013)Presented with Monster Fest, moderated by one of Australia’s pre-eminent genre filmmakers, Jon Hewitt (Acolytes, X), and with a panel of speakers including Neil Foley (Monster Pictures), Daniel Schultheis (Open Channel) and Alan Crabbe (co-founder, Pozible), the session explored the current state of Australia’s micro-budget genre film industry, and the possibilities and opportunities going forward.

5. WHAT NEXT? (16th December 2013)How to forge your pathway to a career in the screen industry. A panel of industry professionals, young filmmakers and Open Channel tutors gave an insight to the many opportunities available for early career filmmakers. Moderated by Marc Gracie, with Daniel Schultheis, Summer DeRoche, Michael Bissell, Corrie Chen, Angela Lee and Lachlan Ryan.

For information on regional Framed seminars, see page 31.

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SHORT & SHARP PITCHING COMPETITION

In 2013, we delivered three heats of our annual Short & Sharp Pitching Competition. Short & Sharp calls for participants to submit a one page synopsis for a screen based project, with the selected finalists invited to pitch their idea to a panel of industry professionals in front of an audience. Australian Producer Stephen Luby facilitated the competition and mentored the applicants through the pitching process. Short & Sharp is supported by Film Victoria.

Regional heats were held in Warrnambool and Ballarat (see page 29 for more information on Short & Sharp regional) and the metropolitan final was held on the 31st October, 2013 at The George Revival Cinema, St Kilda.

JUDGESChristopher Gist – Commissioning Editor, ABC FictionJo Dillon – Development Executive, Screen AustraliaAmanda Higgs – Producer, The Time of Our Lives, ABC Television

This year’s winner was Ivan Vukusic, with his pitch for The Black Heart Beats. Ivan received $1000 in prize money.

The winner also had a terrific opportunity for their project to be pitched by the winning Producer of Short & Sharp Pro, Andrew Brinsmead, at the SPAA / Holding Redlich Pitching Competition in November.

SHORT & SHARP PROShort & Sharp Pro provided an opportunity for emerging Producers to attend a two day workshop on the 19th and 26th October 2013, to learn how to pitch themselves and their production business.

In 2013, Short & Sharp Pro took on a slightly different role in the overall Short & Sharp process. One winning Producer from the Short & Sharp Pro workshop (Andrew Brinsmead) was teamed up with the winning project from the Short & Sharp Pitching Competition, (The Black Heart Beats). Andrew (pictured below) then went on to pitch this project at the SPAA/Holding Redlich National Pitching Competition in November.

The Short & Sharp Pro workshop mentors were Tim Ferguson and Stephen Luby, and the pitch judges were Mac Gudgeon and Nigel Odell.

Marc Gracie with 2013 Winner, Ivan Vukusic

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GENERATION NEXT: KIDS CONFERENCE

The Generation Next: Kids Conference was held at Docklands Studios on the 22nd and 23rd July 2013, and included sessions on Co-

producing in Asia, Storytelling in the Digital Space, Getting Your Idea Financed and also looked at the Gaming

Arena.

The Kids Conference was a huge success with 175 participants (a 10% increase on previous conference

attendance) and was our first major event held at Docklands Studios introducing our new Industry Skills

Centre. Guest speakers included some of Australia’s most well-known and successful screen practitioners and

organisations.

We appreciated both Film Victoria’s support with Jenni Tosi providing the keynote address and also Screen Australia with

Mike Cowap both presenting and moderating sessions.

Key sponsor ABC Commercial provided both financial and panel involvement as well as mentoring the winner of the Kids Pitch

competition. Kids Pitch was a very successful as a side bar to the conference with 21 entries and 5 applicants pitching to ABC

Commercial and receiving feedback. The winning pitch Not, Happy, Mum, received a cash prize, mentorship and advice from the ABC

Commercial team.

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GENERATION NEXT: FACING UP TO REALITY CONFERENCE

The Generation Next: Facing Up To Reality Conference was held at Docklands Studios on the 9th and 10th December 2013. Exploring the escalating popularity of format based, reality and light entertainment television, the Generation Next: Facing Up To Reality Conference covered topics including insights into the big international formats, creating new Australian formats, the narrative element of reality television, what television networks want, as well as a number of case studies and interactive sessions.

Launched by comedian and television personality Lawrence Mooney (Dirty Laundry Live, ABC 2), the conference featured guest speakers including Deb Stewart (Big Brother), Russel Howcroft (Executive General Manager, Network Ten), Michael Hirsh (Thank God You’re Here), Anthony Watt (Spicks and Specks), Julian Cress (The Block), Caroline Spencer (MasterChef), Mark Fennessy (CEO, Shine Australia), Rory Callaghan (ED, Shine Australia) and more.

Supported by Film Victoria, the Open Channel Generation Next conference series support Victoria’s emerging and established screen industry practitioners with an accessible environment for networking and discussion.

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

Walking the Talk On Country - Aretha BriggsBunna Lawrie - A Rare Gem - Kerri-Lee HardingNo Jurisdiction - Karen MinnieconTrue Radicals - Minelle CreedKeeping Harmony - Rob BundleMaza’s Got Talent - Lisa Maza

The series has been delivered to NITV, two of the films were broadcast in 2013 and the rest in 2014.

BROADCAST #1

Kerri-Lee Harding’s documentaryBUNNA LAWRIE - A RARE GEMpremiered on Tuesday 26th November on NITV at 6:30pm. The film was screened as part of NITV’s Our Stories Our Way Every Day short film series, within the theme Desperate Measures: Stories of our History and Political Movements.

BROADCAST #2

Aretha Briggs’ documentaryWALKING THE TALK ON COUNTRYpremiered on Sunday 15th December on NITV at 7:00pm. The film screened as part of NITV’s Our Stories Our Way Every Day short film series, within the theme Ngurra: Stories In Our Languages.

This program was also proudly supported by the Helen Macpherson Smith Trust.

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

Twitter: We have over 1000 followers, and have been mentioned on Twitter in 2013 by Film Victoria, Russel Howcroft, Tim Ferguson, Working Dog, Screen Producers Australia, TV Tonight, Brendan O’Connor MP, Mike Cowap, FilmInk, St Kilda Film Festival, C31, Encore Directory, Lorne Film, ACTF, ASE, AWG, Media Match, Emerging Writers Festival, The George Revival Cinema and Made in Melbourne Festival among others.

Facebook: Open Channel’s Facebook presence has continued to grow, with 408 new page likes in 2013, bringing the total page “likes” to over 5300. Our Facebook special interest groups continue to provide a central hub for discussion between emerging and established screen practitioners. The nine special interest groups share job opportunities, professional development, news and crew calls with group members. Average of 250 members per group.

Website: www.openchannel.org.au In 2013, design for the new Open Channel website commenced, and is

scheduled to launch in early 2014.

LOCAL AIR PRODUCTION INITIATIVE

Funded training production through Community Broadcasting Foundation (CBF) Content Production Grants to produce an interstitial series on History of Community Media in Melbourne, titled LOCAL AIR. Certificate III in Media graduate Stefan Raabe and mentored by Dennis K Smith created the series for Open Channel.

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WHERE CREATIVE INDIVIDUALS BECOME

INDUSTRY PROFESSIONALSTraining and Professional Development at Open Channel seeks

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

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

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

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ADVANCED DIPLOMA OF SCREEN AND MEDIAThe Advanced Diploma of Screen and Media (Feature Film and TV Series Development Program), was delivered to a cohort of students in 2013 with the support of the National Workforce Development Fund (NWDF).

Launched in 2010, this is the only nationally recognised project development course offered in Australia. The premise of the course is to take people with first draft scripts and mentor their projects through the script development stage. Participants learn about how the industry works, where their projects sit in the marketplace and how to pitch and find the appropriate marketplace attachments to realise the project.

Participants learn the business and creative skills needed to guide their script through development over a 12 month period culminating in a market-ready project.

The Advanced Diploma program attracted a wide range of industry leading Producers, Writers, Directors and Development Executives as trainers and guest speakers including Seph McKenna, Ros Walker, David Redman, James Hewison, Karin Altmann, Chris Corbett and Jo Dillon.

Earlier in 2013, Sue Edwards (Film Victoria) attended Open Channel’s graduation ceremony for 2011/2012 Advanced Diploma student cohort with industry attendees and screened student short film Acts of God by Sarah-Jane Woulahan.

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CERTIFICATE III IN MEDIAOpen Channel’s Certificate III in Media is a course designed to connect beginner and emerging practitioners to the professional industry through training across a wide range of disciplines. Outcomes include entry level work in crew positions in the screen industries, facilitated through placements, as well as application to film school through development of a folio of work.

In 2013 we delivered two full-time Certificate III in Media courses programs, training new filmmakers including six indigenous films with the NITV New Aboriginal Filmmaker initiative (see page 18), and producing the same number of short drama and documentary films. Additionally, partial qualification students participated in a crewing capacity on the films.

It would be difficult to find a course in Victoria which offers the same level of service and access to industry for early career filmmakers, and the ability to specialise in areas of interest such as documentary, television production and crew roles.

Outside the NITV initiative, 11 short films were produced through our full-time Certificate III in Media which ran over 16 weeks from March to June. The course was mentored by Dennis K. Smith, Steve Thomas, Caroline Waters and a range of guest speakers, including Film Victoria’s Head of Factual, Steve Warne and Colin and Cameron Cairnes (100 Bloody Acres). The completed films premiered to a full audience at the VCA Theatrette.

Titles included:

Check In (Short Drama) Anita SiawSorry Mum (Short Drama) Rali Hamisalih The Girl in the Tree (Short Drama) Luke Costabile U (Short Drama) Thomas Tarek Undercover Window (Short Drama) Nicole SchembriThe Foster Kids (Short Comedy Drama) Sebastian GavrilovicsFrom Acting to Charity (Documentary) Michael Voelkl Through My Eyes (Documentary) Denise Navarro Ricky ID n Me (Documentary) Karin Michelini Across the Bay (Documentary) Ignati Startsev Living on Borrowed Time (Documentary) Anthea Sidiropoulos

Luke Costabile was invited to screen his film, The Girl in the Tree, as part of the Channel 31 series, Armed and Dangerous.

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SHORT COURSESShort courses trained close over 240 students in 2013, and in addition to our regular slate of professional development workshops covering, we developed and ran the following new courses in 2013: Costume Design Masterclass with Edie Kurzer Shooting Video with DSLR cameras Producing: The Dark Art with Stephen Luby Avid for Final Cut Pro users Introduction to Editing (Multi-platform) (DIY) Stop Motion Animation for kids and adults with Jacquie Trowell

CUSTOMISED TRAINING

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

Customised training courses were delivered to a range of clients in 2013 including Echuca Njernda, Libraries Victoria, Miles for Smiles, The CEO Institute, Peter McCallum (Cancer Research) Foundation, Ballarat City Council, Lavers Hill Council, Notre Dame College, Moreland City Council, Whitehorse Libraries, Anglicare and Ethos Productions/Kindred Studios.

INDUSTRY ENGAGEMENT

Channel 31Open Channel is an Associate Member of the Melbourne Community Television Consortium Limited (Channel 31). Open Channel submitted 11 Certificate III in Media 2012 graduate short films for broadcast.

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

Melbourne Media ArchivesOpen Channel has became a member of the committee for the Melbourne Media Archives. Open Channel has begun the process of applying for funding to secure digitisation of over 40 years of Open Channel film archives.

Industry Open DayOpen Channel held an information stall at the annual Industry Open Day as part of the 2013 St Kilda Film Festival.

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INTERNATIONAL OPPORTUNITIES

INDIA

Open Channel’s Vocational Education and Training Manager Daniel Schultheis, visited India on Victorian Government’s Super Trade Mission led by The Hon Louise Asher, Minister for Business and Innovation, in March.

During the trip, Open Channel was able to strike many new relationships with film schools and production companies, and explored business opportunities in India for Open Channel. Destinations visited included Whistling Woods Institute in Mumbai (pictured), as well as schools and education conferences in Mumbai, Pune and Delhi.

Open Channel has been awarded six student travel scholarships as part of the International Student Study Exchange program by AsiaBound. The students will travel to India in 2014, and attend the Film Bazaar industry conference in Goa.

Daniel Schultheis (right) at Whistling Woods International Institute, India

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INTERNATIONAL OPPORTUNITIES

EUROPE

Open Channel’s VET Manager was granted a $10,000 International Fellowship through George Alexander Foundation and International Specialised Skills Institute to undertake a study focusing on low/micro/no budget feature production schemes in the UK and Europe.

Sites visited in October 2013 included:

ENGLANDMicrowave (Film London)Borrowed Time (Film)Warp X (Warp Films)Ifeatures (Creative England)Bridges To Industry: Micromovies (National Film And Television School)Cinematic (Film Agency For Wales)Triangle Film Talent Scheme (Screen Yorkshire)The Cross Channel Film Lab 2Power To The Pixel Cross Media ForumRaindance Seminar: Lo-To-No Budget Filmmaking With Elliot Grove

THE NETHERLANDSBINGER FILM LAB

GERMANYMEDIENBOARD GMBHDeutsche Film Und Fernsehakademie Berlin (DFFB)Errors Of The Human Body (Film)

DENMARKSUPER16 (Filmmaker Collective)SMÅTTEN (ZENTROPA)

The report will be widely distributed amongst government and industry, and cultminate in a series of industry presentations on microbudget filmmaking and the development of a new training initiative at Open Channel and possible partnership with one of the organisations met during the Fellowship.

Key focus areas included the changing role of audiences, story skills for low budget, the impact of digital technology, and entrepreneurial skills. The report is due to be released in 2014 and will be distributed to the filmmaking community, including the Australian Government, industry and education sector.

Nik Powell, DirectorNational Film & Television School, UK

Daniel Schultheis at the National Film & Television School, UK

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STUDENT ACHIEVEMENTS

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

Industry. Here are some of our students’ achievements in 2013.

In late 2013 Monte Macpherson commenced an attachment at Ruby Entertainment with producer Stephen Luby acting as mentor. Monte received full employment on Ruby Entertainment’s The Secret River Mini Series in the Production Department.

2013 Certificate III in Media (Drama) graduate Luke Costabile obtained an art department attachment on Cut Snake.

2013 Certificate III in Media (Drama) graduate Nicole Schembri obtained an art department attachment on House Husbands.

2012 Advanced Diploma of Screen and Media Course Graduate, Jane Hampson has won the AWG Insite Feature Film Script Award at the Adelaide Film Festival 2013, for Tigress (aka Tamil Tigress).

2011 Advanced Diploma of Screen and Media Course student Jonathan Roper (Producer) is currently in post-production on his first micro-budget feature film as Producer, I Am Evangeline (developed in Open Channel’s course), raised $20,000 production funds on Pozible campaign.

2012 Advanced Diploma of Screen and Media Course student Chris Davis filmed TV series teaser for Ruby Entertainment, and has been employed as a production runner on ABC sketch series You’re Skitting Me, and is now working on the Foxtel show Your 4WD TV.

Jemma Van Loenen, past Open Channel student (Concept to Script and Directing Actors) provided with production assistance and equipment support with short film career, has her third short film Evie Wants a Baby selected for PALM BEACH INTERNATIONAL FILM FESTIVAL, and worked as Assistant Director on the Screen Australia/Open Channel/ABC2 short film, Small.

Michael Bissell (2012 graduate Certificate III in Media Documentary) attached to camera department on the ABC TV pilot comedy series Problems (starring Sam Simmons). Michael subsequently employed as Split Operator on an SBS Series, and now on House Husbands.

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STUDENT ACHIEVEMENTS

2013 Advanced Diploma of Screen and Media Course student and past Raw Nerve filmmaker Anne O’Hoy (In Fantasy, 2012), won People’s Choice Award for In Fantasy at the RMIT Link Student Film awards, and her short film script Any Given Day (with Leah Pullen) nominated for the Monte Miller Short Form Award at the 46th Annual AWGIE awards.

2013 Advanced Diploma of Screen and Media Course student Rachael Lucas, series script in development The Crib Point Syndrome has been selected for the long list for the AWG Think inside the box competition, one of 19 shortlisted selected out of 450 applicants.

Robert Redfern (2012 graduate Certificate III in Media Documentary) production managed C31 Melbourne Comedy Festival one hour special, titled In The Zone, and will be doing another special on the Melbourne Cabaret Festival.

Angela Lee, past student in Production Management short course and Raw Nerve line producer establishes new production company, picturecommittee.com.au and is Line Producing the Raw Nerve initiative in partnership with ABC 2.

Joyce Ng, past student in Production Management short course has worked with Hipwell International Production Services (HIPS) (Production Manager on film LAD), did an Open Channel internship with Matchbox Productions in 2012 funded through Film Victoria, and is working as a Runner on Real Housewives of Melbourne July through to October.

Becki Bouchier, 2011 Advanced Diploma of Screen and Media Course student, is working as an Editor with Airbag Productions following referral through Open Channel.

Screentime production on Fat Tony and Co has offered attachments to Open Channel members Mallory Hetel and Sanjna Polamarasetty in Costume Department, as well as 2012 Advanced Diploma of Screen and Media Course student Hayley Butcher.

Ally Curtis Production Assistant and Jemma van Loenen Assistant Director on the Screen Australia/Open Channel/ABC2 short film, Small.

Costume short course graduate Erika Stamer-Squaires obtained an attachment in Costume Department of Cut Snake.

2011 Part time Certificate III in Media student Courtney Annable obtained a 7-week Location Sound attachment with John Wilkinson on the Shine Production INXS: Never Tear Us Apart.

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A VOICE ON SCREENFOR ALL VICTORIANS

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

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

ensuring all Victorians are able to have a voice on screen, focusing in 2013 on the regional areas of

Warrnambool, Ballarat, and Shepparton, and on Indigenous filmmaking initiatives.

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REGIONAL SHORT & SHARPWARRNAMBOOL

The first of the regional Short & Sharp Pitching Competition heats was held at the Warrnambool Art Gallery on the 3rd October, 2013.

The winning pitch was made by Simon Boyd, with his project Reach 4 The Stars.

Judges: Marc Gracie, Elise West

BALLARAT

The second regional heat of Short & Sharp Pitching Competition was held at the Museum of Australian Democracy at Eureka, Ballarat on the 8th October, 2013.

The winning pitch was made by Tony Wilcox, with his project It’s Only Rock and Roll But I Like It. Tony went on to pitch at the Melbourne finals in October.

Judges: David Redman, Alan Finney

REGIONAL FRAMED SEMINARS1. MAKE TV INFO NIGHT WITH C31, BALLARAT (21st October 2013)This session provided a practical insight into the processes and steps involved in making a TV show for community television. Comedy icon Tim Ferguson, shared his experience of working with Channel 31 on his show WTF (With Tim Ferguson).

2. MEET THE FILMMAKERS: REVERSE RUNNER AT LORNE FILM (17th November 2013)Colac filmmakers Lachlan Ryan and Jarrod Theodore joined a panel discussion, hosted by Australian comedy producer and Open Channel Executive Director, Marc Gracie, and spoke about their journey through the making of their feature length indie comedy Reverse Runner.

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REGIONAL SHORT COURSESOpen Channel’s Professional Development Manager worked with the Shepparton Arts Festival to create a three hour workshop, “Making films people want to watch” on the day of the Shepparton Shorts Film Festival. This was very well received and showed our commitment to participate in supporting our Regional areas.

We ran an upskilling workshop in Shepparton at Notre Dame College for 24 students in Shepparton. Shepparton News reported on the activity and promoted our Youth Filmmakers Holiday Workshops.

The 2013 youth program ran in Ballarat from October 1st – 3rd, with 12 teenage participants, 2 invited from each of the secondary schools in the area. The Mobile Training Unit was well utilised during the training. We have also worked together with the City of Ballarat on the development of a film festival for young filmmakers from the Central Highlands area.

We successfully conducted a Youth Filmmakers Workshop at Lavers Hill Community (near Warrnambool) from 24th-26th September.

We designed and delivered another Youth Filmmakers three day short course at Mooroopna Secondary College to a group of 10 Indigenous VCAL students (pictured below).

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

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

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

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

In the 2013 Shepparton Shorts Short Film Festival, Yarnin won two awards for the film Yarnin - Margaret Briggs. They were ‘Best Local Film’ and ‘Best Festival Theme Film’.

The new updated website will be launched in the first quarter of 2014. In the meantime films can be viewed online at www.yarnin.net . In 2014, Yarnin will focus within the communities of Gippsland.

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

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AFFORDABLE ACCESS TO CUTTING EDGE

PRODUCTION FACILITIESOpen Channel is at the forefront of the industry as a

training and resource centre, as it moves into its new home at Docklands Studios, Victoria’s

Screen Industry Hub.

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OPEN CHANNEL’S NEW HOMEIn June 2013 Open Channel moved out of Shed 4 - our home since 2007 - and into our new Industry Skills Centre, located in Docklands Studios Melbourne.

Supported by a major infrastructure grant from the Federal Government we designed, constructed and positioned our purpose built Industry Skills Centre inside the Docklands Studios compound. The staff, filmmakers, tutors and students quickly adopted our new home as an engaging and exciting place to learn and create.

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INDUSTRY SKILLS CENTRE LAUNCHOn Tuesday 6th August, Open Channel’s Industry Skills Centre and Mobile Training Unit at Docklands Studios were officially launched by the Federal Minister for Employment, Skills and Training, The Hon. Brendan O’Connor MP.

There was a great turnout from our members, students and stakeholders who were introduced to the many virtues and exciting future prospects of Open Channel’s new home. The event received good media coverage and two short films of the day were shot and edited by the students.

The Hon. Brendan O’Connor MP

Caroline Briggs, Boonwurrung Elder

Marc Gracie, Executive Director

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MOBILE TRAINING UNIT

The custom built Open Channel Mobile Training Unit includes equipment from production through to screening facilities. The MTU is available to deliver tailored training to off site organisations and regional areas, and has been used extensively in 2013 in the filming of “Yarnin’ - A History of Aboriginal Land Rights in Victoria”.

FAREWELL TO SHED 4As we moved into our new premises at Docklands Studios in June, we sadly said goodbye to Shed 4 which had been the home of Open Channel since 2005.

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STAFFING CHANGES The following staffing changes occurred at Open Channel in 2013.

Staff farewelled: Patrick McGrath (Media & Memberships Coordinator) Sharon Cutajar (Bookkeeper)

New staff welcomed: Rose Scasni (General Manager)

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

GOVERNANCE

Board MeetingsThere were nine Board meetings held in 2013.(31 January, 14 March, 18 April, 16 May, 20 June, 8 August, 19 September, 31 October and 12 December)

2013 Annual General MeetingThe 2013 Annual General Meeting was held on the 6th June 2013.

Strategic PlanningA Planning Day for Staff and Board Directors was held on the 19th September 2013.

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FINANCIAL STATEMENTS 2013

- Treasurers Report- Directors’ Declaration

- Auditor’s Independence Declaration- Independent Audit Report

- Statement of Comprehensive Income- Statement of Financial Position

- Statement of Changes of Equity- Statement of Cash Flows

- Notes to the financial statements

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TREASURER’S REPORTYear Ended 31 December 2013

The past year was an exciting time for the organisation and as such I am glad to have been given this opportunity to report on Open Channel Co-operative Ltd.’s finances for the 2013 financial year.

When analysing the company net worth at year end, there has been a $322,169 rise in net assets from the 2012 financial year. At 31st December 2012 net assets were $276,017 compared to $608,186 31 December 2013 year-end. During the year Open Channel had a significant rise in Property, Plant & Equipment due to the construction of the Resource Centre.

The 2013 financial year has seen the organisation record Comprehensive income for the year of $272,342 and an operating loss of $72,658. The relocation to Docklands reduced the Hire Income the organisation could generate as it no longer could hire out Shed 4. The overall Hire Income this year was $14,531 compared to $130,771 last year which impacted on the overall profitability of the organisation. The move had also created additional storage costs for the organisation due to the reduction of space available. Although the company had an operational loss, an additional government grant of $345,000 for the completion of the new resource centre saw a total comprehensive income margin of $272,342.

Currently as it stands, all statutory obligations have been contained and will be able to be repaid based on the company’s current financial position.

As the board has seen a significant improvement in grant and service income over the 2013 financial year, we will continue to work closely various government bodies and network partners to ensure that moving forward we can continue to use this revenue to maintain and improve the level of services and courses that are provided to students. We believe that our reputation has improved and as such feel that we have the financial capacity to improve our resources. A number of new accounting and budgeting procedures have been implemented to ensure we run a viable and profitable business to assist the organisation in decision making and growth.

The board currently meets once every six weeks and critically examines the monthly accounts, focusing closely on liquidity, cashflow and financial performance. The Board continues to take a practical approach towards discussing various issues and items. This has seen successful management prosper and due diligence where needed to make informed and assertive decisions, allowing the company to prosper significantly.

The company is in a good financial position and well placed to meet any future obligations that arise.

Frank Druda CA

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

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DIRECTORS’ DECLARATION

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AUDITORS INDEPENDENCE DECLARATION

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INDEPENDENT AUDIT REPORT

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STATEMENT OFCOMPREHENSIVE INCOMEFor the year ended 31 December 2013

2013 2012

Income : Note $ $

Member Subsctiptions 10,964 15,088Other Income 2,955 28,122Administrative and Management Grant 310,000 220,000Member Precinct Income 30,042 133,808Course Income 197,962 154,946Facilities Grant and Sales Income 0 0Hire Income 14,531 130,771Service Income 0 22,975Grants 410,301 316,312

Total Income - 976,756 1,022,022

Expenditures :

Wages and Salaries 301,028 224,571Finance and Legal 29,273 14,973Marketing 11,141 35,579Board Costs 1,109 647Operational Costs 322,736 322,612Staff Costs 35,079 14,007Member Services 0 3,415Building Overheads 55,804 41,720Professional Development Operating Cost 87,599 90,549Facilities Operating Costs 68,419 65,362Production Overhead Costs 26,040 28,668Member Precinct 17,191 9,977Capital Expenditure Written Off 0 3,444Depreciation For The Year 93,995 73,184

Total of Expenditure - 1,049,414 928,708

Operating Profit ( Loss ) for the year (72,658) 93,315Previous Year's Adjustments 0 15,850Other Income (Grant-Resource Building) 345,000 0Total Comprehensive Income for the year 272,342 109,165

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

Docklands Studios, 476 Docklands Drive Docklands VIC 3008

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2013

PARTICULARS

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STATEMENT OFFINANCIAL POSITIONFor the year ended 31 December 2013

2013 2012$ $

Current Asssets :Cash 3 8,762 74,744Trade and Other Receivables 4 79,363 6,226Stock on hand 0 0

Total Current Assets ( a ) 88,125 80,970

Non-current Assets :Property, plant and equipments 5 608,579 243,890

Total non-current assets ( b ) 608,579 243,890

TOTAL ASSETS - ( a ) + ( b ) 696,704 324,860

Current Liabilities :Trade and other creditors 6 46,440 47,129Provisions 7 14,365 1,427

Total current liabilities ( a ) 60,805 48,556

Non-current Liabilities :Long term borrowings 8 27,712 286

Total non-current liabilities ( b ) 27,712 286

TOTAL LIABILITIES - ( a ) + ( b ) 88,517 48,842

Net Assets : 608,187 276,018

Members' Funds :Retained profits 330,720 (1,449)Paid-up capital 23,999 23,999Forfeited share reserve 18,944 18,944Asset revaluation reserve 234,524 234,524

Total Members' Funds 608,187 276,018

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

Docklands Studios, 476 Docklands Drive Docklands VIC 3008

STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2013

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STATEMENT OFCHANGES OF EQUITYFor the year ended 31 December 2013

Forfeited AssetIssued Retained Share Revaluation TotalCapital Earnings Reserve Reserve

$ $ $ $Balance at 01 Jan 2012 23,999 (110,613) 18,944 234,524 166,854

Profit/(Loss) attributable to members 2012 0 109,164 0 0 109,164

Balance at 31 Dec 12 23,999 (1,449) 18,944 234,524 276,018

Profit/(Loss) attributable to members 2013 0 272,342 0 0 272,342Prior Year Depreciation Adjustment 0 59,827 0 0 59,827

Balance at 31 Dec 2013 23,999 330,720 18,944 234,524 608,187

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

STATEMENT OF CHANGES IN EQUITY

PARTICULARS

Docklands Studios, 476 Docklands Drive Docklands VIC 3008

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STATEMENT OFCASH FLOWSFor the year ended 31 December 2013

2013 2012Note $ $

Cash Flows from Operating Activities

Receipts from operations 255,582 765,028Receipts from grants 720,301 348,358Interest income 872 0

Total Receipts - 976,756 1,113,386Less :

Payments for Salaries 301,028 224,810Payment to Suppliers 628,026 697,332

Total Payments - 929,054 922,142

Net Cash Flow from Operating Activities 47,702 191,244GRANT - RESOURCE CENTRE 345,000 0

NET CASH FLOW FROM ALL ACTIVITIES 9 392,702 191,244

Cash Flow from Investing Activities

Purchase of Property and Equipments (458,684) (135,629)Net Cash Flow from Investing Activities (458,684) (135,629)

Cash Flow Provided by Financing Activities

Borrowings - 286

Net Cash Flow from Financing Activities - 286

Net Increase / ( Decrease ) in Cash (65,982) 55,901Cash at the beginning of the reporting period 74,744 18,843Cash at the end of the reporting period 3 8,762 74,744

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

Docklands Studios, 476 Docklands Drive Docklands VIC 3008

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2013

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NOTE TO THE FINANCIAL STATEMENTSFor the year ended 31 December 2013

Note 1 : Statement of Significant Accounting Policies

Basis of Preparation

Reporting Basis and Convention

Accounting Policies

a. Cash and Cash Equivalents

b. Revenue

The following is a summary of material accounting policies adopted by Open Channel Co-op Ltd in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

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

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

OPEN CHANNEL CO-OPERATIVE LIMITED

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

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

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

OPENChannel Co-operative Ltd is a company limited by guarantee, incorporated and domiciled in Australia.

ABN 67 060 585 631

Docklands Studios, 476 Docklands Drive Docklands VIC 3008

Notes to the financial statements for the year ended 31st December 2013

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c. Goods and Service Tax ( GST )

2013 2012$ $

Note 2 : Income tax expenses 0 0

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

Income Tax Expenses 0 0

2013 2012$ $

Note 3 : Cash and cash equivalentsCash on hand 7 100Cash at bank 8,755 74,644

Total cash and cash equivalents - 8,762 74,744

2013 2012$ $

Note 4 : Trade and other receivablesTrade Debtors 79,363 6,226

Total Trade & other receivables 79,363 6,226

2013 2012$ $

Note 5 : Property, Plant and EquipmentsProperty, plant and equipment Opening WDV 243,890 181,445Add : Additions during the year 458,684 135,629Gross Assets 702,574 317,074Less : Depreciation for the year (93,995) (73,184)

Closing WDV of property, plant etc., 608,579 243,890

2013 2012$ $

Note 6 : Trade and other payablesTrade Creditors and accruals 44,127 5,848Accrued expenses 427 24,051BAS amount Payable (5,980) 3,873Refundable bonds 42 3,774Superannuation payable 7,823 9,583

Total trade and other payable 46,440 47,129

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

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

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2013 2012$ $

Note 7 : ProvisionsAnnual leave 8,063 1,427Long Service Leave 6,302 0

Total Provisions 14,365 1,427

2013 2012$ $

Note 8 : BorrowingsCurrent :Bank overdraft 27,712 0

Non-current :Loan Credit Card 0 286

Total Borrowings 27,712 286

2013 2012$ $

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

Profit after Income Tax (72,658) 93,314

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

Non-cash flows in profit - Depreciation 93,995 73,184Prior Year Adjustments - 15,850

Changes in assets and liabilities;(Increase)/Decrease in trade and other debtors (73,137) 91,364

Increase / (Decrease) in trade and other payables (689) (82,228)Increase / (Decrease) in provisions 12,938 (240)Increase / (Decrease) in other items 87,253 -

Net cash provided by All Activities 392,702 191,244

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

Docklands Studios, 476 Docklands Drive Docklands VIC 3008

Note 10 : Going Concern

Note 11 : Company Details

The registered office of the company is :

OPENChannel Co-operative LtdDocklands Studios476 Docklands DriveDocklands VIC 3008.

OPEN CHANNEL CO-OPERATIVE LIMITEDABN 67 060 585 631

Docklands Studios, 476 Docklands Drive Docklands VIC 3008

The members of the Committee believe that application of the going concern basis of accounting is appropriate due to the expected positive cash flows of the co-operative and through the ongoing support of Funding Bodies.

A cash flow has been calculated for year ended 31 December 2013 and provided the cash flow is achieved the Company will be able to meet its debts at the end of 31 December 2014

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

Open Channel BankCommonwealth Bank of Australia

Name of EntityOPEN CHANNEL Co-operative Ltd

AddressDocklands Studios Melbourne476 Docklands DriveDocklands VIC 3008

Name and Position of RegistrarMarc Gracie, Executive Director

Date of Report10th June 2014

Number of persons employed by the co-operativeAs at 31st December 2013Full time staff: 4Part time staff: 3Tutors (casual): Approximately 80

Number of members of the co-operativeAs at 31st December 2013: 364

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