LA BOHEME | THE CUNNING LITTLE VIXEN | CARMEN | DON ... · BACKGROUND West Australian Opera was...

LA BOHEME | THE CUNNING LITTLE VIXEN | CARMEN | DON GIOVANNI | OPERA IN THE REGIONS

ANNUAL REPORT

2018

West Australian OperaTHREE YEAR PLAN 2019-2021

In 2018 WAO worked with Evolve Leadership, Red Emu and Painted Dog Research to meet with internal and external stakeholders to then inform and

develop a new three-year plan for the company.

Our dream We want to present opera that moves you, enchants you and makes you think

about the magic of being alive in the world today.

West Australian Opera seeks to speak to the heart through the human voice. We want to share the joy of music through opera and the powerful stories opera tells.

We want to be part of your journey by being with you throughout your life; in

schools, communities, regions and the theatre.

We want to carry the four hundred year old operatic flame into the next era and

never let it go out. Instead we will fuel it and stoke it, we will build it with you and

spread it around for all to know and experience.

Our whyBringing people together and making them feel alive through igniting emotions and

imaginations with the power of sung stories.

Our strategic issuesSix areas emerged as strategic issues that pose as avenues for growth and

improvement for our future: communications, audiences, content, experience, financial sustainability, innovation.

Our cultureWe value people, collaboration, sustainability, innovation, integrity.

Our strategic pillarsContent and experience, innovation, communication, audience and access, opera

artform development, sustainability.

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LA BOHEMECITY OF PERTH OPERA IN THE PARK, SUPREME COURT GARDENS 3 FEBRUARY

THE CUNNING LITTLE VIXENHIS MAJESTY’S THEATRE 21, 24, 26,28 APRIL

CARMENHIS MAJESTY’S THEATRE 21, 24, 26, 28 JULY

DON GIOVANNIHIS MAJESTY’S THEATRE 20, 23, 25, 27 OCTOBER

Chairman’s

Report

West Australian

Opera receives

support from the

Western Australian Government through

the Department of

Local Government,

Sport and Cultural

Industries and Lotterywest, and the

Australian

Government through

the Australia Council

for which we are very grateful

I am pleased to present West Australian Opera’s Annual Report for

the company’s 51st year.

The contribution of our patrons, sponsors and donors is critical to our

success, and we are proud to maintain strong partnerships with oursupporters all of whom have contributed to our success.

West Australian Opera acknowledges and thanks Principal Partner

Wesfarmers Arts, Official Airline Partner Qantas, Civic Partner City of

Perth, Minderoo Foundation, Lotterywest and Healthway with themessage Act-Belong-Commit.

We are grateful to the Western Australian Government through the

Department of Local Government, Sport and Cultural Industries and

Lotterywest and to the Australian Government through the AustraliaCouncil.

Thank you to patrons who offer personal contributions and continued

commitment to the company through the Private Giving Program. We

are grateful for leadership donations through the Bendat Scholarship,the Bel Canto Fund, the McCusker Foundation, the James Galvin

Family Trust and trusts and foundations who give their support. We

are grateful for the gift of FMG shares which we hold.

I thank my fellow directors for their support, time and expertise and inparticular I thank retiring board member Julian Burt for his years of

service. I thank the management and staff of West Australian Opera

for their ongoing work, passion and commitment in bringing opera to

the stage.

ANDREW PASCOE

CHAIRMAN, WEST AUSTRALIAN OPERA

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Wesfarmers is Western Australia’s leading corporate supporter of the arts with ademonstrated leadership position in Australia and is the Principal Partner of the state

opera company.

Wesfarmers Arts recognises that opera offers a unique and rich experience involving

principal singers, actors, chorus, orchestra, a conductor, director, choreography and highproduction values including sets, costumes, lighting and backstage elements: it is indeed a

multi-sensory art form.

Wesfarmers and West Australian Opera first worked together in 1998. Since then the

partnership has expanded to embrace production seasons, the commissioning of a newopera in 2007 through the Wesfarmers Arts Commission Series (The Love of the

Nightingale by Richard Mills), annual support and the development of the Wesfarmers

Young Artists program.

In 2009 Wesfarmers became Principal Partner of West Australian Opera. This PrincipalPartnership underpins the ongoing life and vitality of the state opera company.

This award winning partnership is fundamental to the state opera company and isappreciated and valued by the board, management, company and audiences.

Principal Partner

Wesfarmers Arts

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Executive Director’s

Report

The state opera company was able to share the joy of opera withmany people around the state, not only on the mainstage in the

beautiful His Majesty’s Theatre, but also around the state through

Opera in the Regions presented in the Pinnacles and the Valley of the

Giants, Opera in the Quarry and performances in schools and

communities from Broome to Denmark.

I acknowledge Annie Patrick for program notes and pre-performance

talks. I acknowledge and thank all of the company’s donors and

foundations including support for the Bel Canto Fund, the Bendat

Scholarship, the McCusker Foundation, Galvin Family Foundation,Andrew and Nicola Forrest and the Minderoo Foundation, the Society

of WA Opera Lovers, the generosity of our anonymous donors and

all supporters of the company.

Board, management and staff worked together to produce a newstrategic plan and a new set of key performance indicators. This

three-year plan offers a roadmap to the company’s future and will be

guided and implemented with the appointment of the company’s

new Music Director.

It is the aim of West Australian Opera to deliver excellence both on

and off the stage, and I wish to acknowledge and thank the Board

including Chairman Andrew Pascoe, deputy Chair Catherine Ferrari,

Ingrid O’Brien, Jan Stewart, Mario D’Orazio, Darren Lewsen and

Anthony Gianotti. I thank Warwick Hemsley, who retired from theboard at the AGM, and Julian Burt, who retired at the end of the year,

and I thank them both personally and on behalf of the company for

their wonderful support.

My grateful thanks to staff and colleagues with whom I work closelyall year-round at West Australian Opera, His Majesty’s Theatre,

Department of Local Government, Sport and Cultural Industries, Perth

Theatre Trust, the Australia Council, Lotterywest, Healthway and

industry colleagues.

CAROLYN CHARD AM

EXECUTIVE DIRECTOR, WEST AUSTRALIAN OPERA

We gratefully

recognise the support

of Principal Partner

Wesfarmers who

continue to inspire with their dedication

to the arts in Western

Australia

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Music Director’s

Report

Commencing the role in January 2019 as Music Director has

been an exciting new chapter in my musical life and, I trust, the

musical life of the state opera company.

I succeeded Brad Cohen and acknowledge the work that he hasdone over the past several years and particularly his own focus

on core development in the company. In his own words on “three

strands of renewal – new works and formats, new productions,and building sustainable Australian operatic careers. My goals as

Artistic Director of WAO remained steadfast between 2015 and2018: to refresh the repertoire we offer, whether old or new;

increase our connection with our audiences, some of whom want

the familiar, some the new; achieve artistic standards ofconsistent and rising excellence; and strengthen and further

deepen our relationships with the community, benefactors,institutions, and artists. I believe that the last four years have

provided abundant evidence of the wisdom – and the benefits – of

this strategic direction.”

I’m very much looking forward to building on the artistic leadershipof previous Artistic Directors here at West Australian Opera,

providing new and innovative ways to experience the artform and

sharing the love of opera with the people of Western Australia andour national and international friends and colleagues.

CHRIS VAN TUINEN

MUSIC DIRECTOR, WEST AUSTRALIAN OPERA

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West Australian Opera

The Company

BACKGROUNDWest Australian Opera was established in

1967 and celebrated its 50th anniversary in

2017. It is Western Australia’s full-time,

professional state opera company.

The company presents operas drawn from

the mainstream operatic repertoire and

increasingly is involved in the

commissioning and development of new

repertoire.

The company offers an annual subscription

season of main stage productions as well

as programs in regional Western Australia

and a strong education program andancillary activities, including concerts and

community events in Western Australia.

It is an incorporated association with a

board of eight directors chaired by AndrewPascoe.

The company receives income from federal

and state funding, box office revenue,

donations and sponsorship.

We are grateful to the federal government

and Australia Council, the state

government and Department of Local

Government, Sport and Cultural Industries,and local government through the City of

Perth. We acknowledge our valued

Principal Partner Wesfarmers Arts.

PRODUCTIONSEach year West Australian Opera presents three

operas in His Majesty’s Theatre and the free

community event City of Perth Opera in the

Park.

TOURING AND COMMUNITY EVENTS

West Australian Opera is committed to taking

the art form to as many people in Western

Australia as possible through the touring ofsmall scale work to regional Western Australia

and the participation of the company in

community events.

EDUCATION

West Australian Opera provides support for

students and teachers for each opera. We

recognise the place West Australian Opera

occupies in the study of music in WesternAustralia and we work to offer the best possible

experience for students.

WESFARMERS ARTS

YOUNG ARTIST PROGRAM

Young and emerging artists are offered training,advice, support and a creative pathway into the

Company. We work with established artists

locally, nationally and internationally to provide

opportunities for creativity and career

advancement.

‘The arts lift people out of their everyday’ (Nicola Forrest)

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BOARD

ChairmanAndrew Pascoe

Deputy Chair

Catherine FerrariDirectors

Julian Burt (to Dec 2018)Ingrid O’Brien

Darren Lewsen

Jan Stewart Mario D‘Orazio

Anthony GianottiChristiaan Heyning

West Australian Opera

Board and CompanyCOMPANY

Executive Director

Carolyn Chard AM

Artistic Director

Brad Cohen (2015-2018)

Music Director

Chris van Tuinen (from January 2019)

Production Manager

Mandy Farmer

Development Manager

Coralie Bishop (mat leave March-Sep)

Claudia Rayne (Acting DM 2018)

Artistic Administrator

Rebecca Kais (to 6 December 2018)

Kate Larkins (from 8 November 2018)

Accountant

Debbie Byrnes

Education Manager

Terasa Letizia

Marketing Manager

Danielle Barlow

Marketing Assistant

Daniele Foti-Cuzzola

Development & Marketing Coordinator

Tanner Davies (to 10 August 2018)

Catherine Power (from 1 October 2018)

Office Coordinator

Marion O’Connor (to 1 June 2018)

Holly Langford-Smith (from 16 July 2018)

Publicity Consultant

Lynne Burford

Financial Accountant

Sue Hobson

Regional Project Manager

Melanie Timms

Stage Manager

Karen Farmer

VICE REGAL PATRON His Excellency, the Honorable

Kim Beazley AO

Governor of Western Australia

PATRONSDr Jack Bendat AM CitWA

HONORARY LIFE MEMBERS

Dario Amara

Cav Uff Giuseppe Bertinazzo OMRIHon Julie Bishop MP

Frank Cooper

Erich Fraunschiel

Colin Goddard

Francis LandelsMargaret McManus

Richard Mills AM

Marilyn Phillips

Vincent A Warrener AM KHS

Annie PatrickBruce Martin AM

Warwick Hemsley

Commissioned Artist

Tim Finn OBE

Wesfarmers Arts Young Artists

and Bendat Scholars

Rebecca Castellini

Fleuranne Brockway

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LA BOHÈMEPUCCINI

CITY OF PERTH OPERA IN THE PARKA free event supported by Lotterywest and Act-Belong-Commit

Supreme Court Gardens | 3 February 2018

Simulcast to Albany, Broome, Bunbury, Carnarvon, Esperance, Geraldton,

Kalgoorlie, Margaret River, Merredin, Port Hedland, Community Resource Centers

Conductor Brad Cohen

Director Stuart Maunder

Production Manager Mandy Farmer

Repetiteur Tommaso Pollio

Rodolfo Paul O’Neill

Mimi Elena Perroni

Marcello James Clayton

Musetta Rachelle Durkin

Schaunard Mark Alderson

Colline Paull-Anthony Keightley

Benoit Matthew Lester

Alcindoro Mark Hurst

West Australian Opera Chorus

West Australian Symphony Orchestra

Sung in Italian with English subtitles

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THE CUNNING LITTLE VIXENJANACEK

His Majesty’s Theatre 21, 24, 26, 28 APRIL

Composer Leoš Janáček

Libretto Rudolf Těsnohlídek & Stanislav Lolek

Conductor Johannes FritzschDirector Stuart Maunder

Set Designer Richard Roberts

Costume Designer Roger Kirk

Lighting Designer Trudy Dalgleish

Guest Chorus Master & Music Supervisor Marilyn Phillips

Vixen Emma Pearson

Fox Rachelle Durkin

Forester James Clayton

Schoolmaster / Mosquito Matt Reuben James WardForester’s Wife / Owl Ileana Rinaldi

Harašta Mark Alderson

Parson / Badger Paull-Anthony Keightley

West Australian Opera ChorusWest Australian Symphony Orchestra

Sung in English with English surtitles

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CARMENBIZET

His Majesty’s Theatre 21, 24, 26, 28 JULY

Composer Georges Bizet

Libretto Ludovic Halevy & Henri Meilhac

Conductor Antony WalkerDirector Lindy Hume

Set Designer Dan Potra

Costume Designer Vicki Feitscher

Lighting Designer Stephen Wickham

Lighting realized by Matthew MarshallGuest Chorus Master Ian Westrip

Carmen Milijana Nikolic

Don José Paul O’Neill

Escamillo James Clayton

Micaëla Emma PearsonZuniga Paull-Anthony Keightley

Moralès Sam Roberts-Smith

Frasquita Rebecca Castellini

Mercédès Fleuranne Brockway

Dancaïre Mark AldersonRemendado Matt Reuben James Ward

Lillas Pastia Michael Loney

West Australian Opera Chorus West Australian Symphony Orchestra

Sung in French with English surtitles

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DON GIOVANNI MOZART

His Majesty’s Theatre 20, 23, 25, 27 OCTOBER

Composer Wolfgang Amadeus Mozart

Libretto Lorenzo Da Ponte

Conductor Brad CohenDirector Göran Järvefelt

Rehearsal Director Roger Press

Set and Costume Designer Carl Friedrich Oberle

Lighting Designer Nigel Levings

Guest Chorus Master Perry JoyceDon Giovanni Teddy Tahu Rhodes

Leporello James Clayton

Il Commendatore Jud Arthur

Donna Anna Anita Watson

Donna Elvira Emma Pearson Don Ottavio Jonathan Abernethy

Masetto Wade Kernot

Zerlina Rebecca Castellini

West Australian Opera Chorus and West Australian Symphony Orchestra

Sung in Italian with English surtitles

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OPERA IN EDUCATION

WESFARMERS ARTS MAKE-UP WORKSHOPS

4 workshops for 101 participants.This practical introduction to the world of theatrical make-up is great fun for students. In this 2

hour workshop students are able to explore ideas, observe professional technique and use

their own imagination to create a personal artwork. Following a demonstration on thetechniques involved in creating a character, students craft their own design and then have a go

at transforming themselves and their classmates. With many questions and much exuberance

this is a wonderful learning experience for students from year 4 to year 12.

COMMUNITY SINGING WORKSHOPS, TALKS and MORE

15 Events and 604 participantsWest Australian Opera is dedicated to connecting with our West Australian Community through

talks, singing workshops and intimate insights into upcoming operas in community groups.

Highlights in 2018 included:• Partnering with the Art Gallery of Western Australia (AGWA) as part of its Corsini Collection

program. Working with art curators we developed a series of complimentary singing workshops

that explored themes within the exhibition

• Working with primary and secondary students in Broome

• Connecting with communities including Alliance Francaise, The Italian Consulate and theMulticultural Language Centre to present talks and workshops

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OPERA IN EDUCATION

ACT-BELONG-COMMIT OUR OPERA OUR WA9 workshops for 1760 participants

This incursion performance for primary and secondary students takes our audience on anengaging musical journey into the lives of two of our singers. How they began to sing, what led

them to opera as an art form, and who their hero’s were growing up and today. This performance

features popular operatic works and an opportunity to ask questions .

ACT-BELONG-COMMIT WACE WORKSHOP1 workshop for 16 secondary students

In 2018 West Australian Opera partnered with the University of Western Australia’sConservatorium of Music to present a workshop that assists year 11 and 12 students in the delivery

of the practical performance component of Music ATAR (voice). It addresses performance

technique, stylistic interpretation, performance psychology and more. Featuring two West

Australian Opera singers and facilitated by Department for Education (Instrumental Music School

Services) Head of Voice/Piano.

ACT-BELONG-COMMIT SING OUT LOUD!18 workshops for 2042 participants

Our most popular workshop! This interactive singing workshop has been specially created forprimary school students and introduces students and teachers to musical concepts as prescribed

within the Western Australian curriculum. Your voice is your own mobile musical instrument and

within this incursion we have lots of fun empowering students to use their voice and introduce them

to musical concepts such as pitch, dynamics and tempo. In addition to metropolitan primary

schools we also took this workshop to Narrogin, Manjimup, Badgingarra and Dandaragan.

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OPERA IN THE COMMUNITYWe will engage and inspire West Australians, develop and retain audiences and

ensure relevancy

West Australian Opera produces and presents opera for and with West Australians through

performances, concerts and community events.

WESFARMERS ARTS SINGING CLASSES

35 workshops, 114 Participants

Led by Perry Joyce our adult community singing classes welcomed participants into the West

Australian Opera studio. Over the course of 8 weeks adult students were introduced to operaworks and vocal pedagogy. We were also invited to run a couple of classes in Broome as part of

the Shinju Matsuri Festival and in Denmark to coincide with our Opera in the Valley of the Giants

performance.

LEARN AT THE LIBRARY2 Talks, 110 participants

Learn at the Library enables engagement with local communities on a deeper level. This one hour

program includes an information based talk punctuated by live arias. Topics include Introduction to

Opera, Opera in Popular Culture and our popular It’s Opera not Oprah! The talks conclude with an

informal Q & A and an opportunity for participants to learn more about the featured artists.

ACT-BELONG-COMMIT OPERA YOUTH NIGHTS

3 Events, 420 Participants

NEW in 2018! Our opera youth nights invite like-minded students from years 7 to 12 to join us pre-

performance for refreshments and a personalised introduction to the opera work on offer. Anabsolute highlight of these events has been the opportunity for our participants to meet the artists

prior to seeing them on stage.

OPERA YOUTH AMBASSADORS

12 ParticipantsStudents from years 9 to 12 across Western Australia were invited to apply for our Opera Youth

Ambassador program. This year-long series of activities provides an opportunity for passionate

classical voice enthusiasts to discover the multiple layers of presenting an opera through exposure

to performance, classes and more.

e general public into its home to assist with subscription bookings and talk about the next annual season of work.

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OPERA IN THE REGIONS presented by Act-Belong-Commit2 performances, 1800 participants

This event series was made possible with support from Principal Partner Wesfarmers Arts, Healthway with

the message Act-Belong-Commit, Minderoo Foundation, Department of Biodiversity, Conservation and

Attractions, Department of Parks and Wildlife Services, The Great Southern Development Commission

and the Shire of Dandaragan.

Each concert was presented in an iconic venue in Western Australia:

• Opera in The Pinnacles (Cervantes)

• Opera in the Valley of the Giants (Walpole)

Opening with a traditional Welcome to Country. This concert series has been warmly received by all who

attend and participate. A highlight for the company has been the integration between community

volunteers, performers, production and management.

“That was AMAZING! What an unforgettable night! Incredible setting, excellent selection of songs, so entertaining and engaging... and the weather couldn't have been better! Thank you so very very

much!”

OPERA IN THE COMMUNITY

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AUDIENCE SUMMARYWest Australian Opera reached over 50,000 people

11,000 – People attended the mainstage opera at His Majesty’s Theatre

10,000 – People attended or viewed City of Perth Opera in the Park

5,617 – People participated in community and outreach programs

5,000 – People enjoyed a West Australian Opera costume exhibit

(The Cunning Little Vixen and Don Giovanni)

3,000 – Children participating in The Cunning Little Vixen School Holiday Activities

1,800 – Attended an Opera in the Regions event

1,500 – People attended Opera in the Quarry for 3 sold out concert performances

41%

12%

17%

17%

7%

6%

Opera in the Park The Cunning Little VixenCarmen Don GiovanniOpera in the Regions Opera in the Quarry

BOARD

Corporate Governance

Throughout the year the Board maintained a proactive role in risk management andcorporate decision-making processes.

The Board offered a range of expertise in the disciplines of finance, legal, sponsorship,

marketing and business management.

The Board met on a regular basis throughout the year. In addition to board meetings, the

Chairman met with the Executive Director on a regular basis.

A package is prepared for the Board by the Executive Director for distribution one week

prior to each meeting. This package includes the board agenda, minutes from the previousmeeting, a summary of resolutions and actions from the previous meeting, financial papers,

written reports, copies of key correspondence, contracts and media. The Minute Register is

held in the company’s offices.

The Board monitored the company’s finances at the Finance Committee and at boardmeetings and the Financial Consultant reviewed finances throughout the year.

The Board ensured that the company maintained adequate insurance covers including

workers compensation, directors’ liabilities, public liability insurance and travel insurances.

The company produced a comprehensive Risk Management Report for Opera in the Park

and maintained risk reports on productions.

The Board delegated the day-to-day operation of the company to its Executive Director.

All matters of significance were referred to the Board for discussion, review and decision-

making at monthly Board meetings and at subcommittee level.

Evolve Leadership was engaged to facilitate a new strategic plan for the period 2019-2021

and this included a review across the company with input from internal and externalstakeholders.

The Painted Dog Research was engaged to facilitate qualitative and quantitative market

research with attendees and non-attendees.

Policy reviews were undertaken and in particular new risk assessment frameworks were

drafted.

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Board

BiographiesANDREW PASCOEChairman (from 5 December 2017)

Member Nomination Committee

Andrew Pascoe is a partner in the corporate group of Allens in Perth. Andrew specialises in

mergers and acquisitions transactions, and major project and infrastructure development. He also

practices in the area of equity capital markets, corporate governance, incorporated andunincorporated joint ventures, foreign investment in Australia, private equity transactions, and a

range of commercial contracts and transactions.

CATHERINE FERRARIDeputy Chair

Board Director (appointed 2005)

Chair, Finance and Audit Committee, Member Nomination Committee

Ms Ferrari joined Water Corporation in 2004 in the role of General Manager, Communications

Group. In 2013 she became General Manager of newly formed Customer and CommunityGroup. She was previously Chief Executive Officer of the Western Australian Symphony

Orchestra and Western Australian Director of the Australian Society of Certified Practicing

Accountants. Ms Ferrari is also a Board Member of the Energy and Water Ombudsman;

Screenwest WA; and a trustee of the Legal Contribution Trust.

JULIAN BURT

Board Director (appointed 2014; retired 6 December 2018)

Member, Development Committee

Julian Burt graduated from Christchurch Grammar School in 1987 and studied at the Royal

Agricultural College at Cirencester, England 1991-1992. On return to Australia he worked in thefamily mineral business, known as the Drillex Group of Companies. He was appointed a

Director of the company in 1998. In 2003 he became a Director and part-owner of Metzke Pty

Ltd a manufacturer in mineral drilling technology. Julian has extensive experience in

governance and community service. He is currently involved in the following Company

Directorships since 2003; Director/Owner, MJW Rail Pty Ltd; Director, Margaret Court AOCommunity Outreach Foundation; Director, WA Opera; Director, Kimberley Foundation

Australia; Foundation Member/Director, National Gallery of Australia; Patron, Football (Soccer)

Hall of Fame WA; Committee, St George’s Cathedral Foundation for the Arts; Justice of the

Peace (WA) and Lay Canon and Member of the Chapter of St George’s Cathedral, Perth.

Julian is currently studying a Bachelor of Arts majoring in history and political science at TheUniversity of Western Australia.

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DR INGRID O’BRIENBoard Director (appointed 2010)

Chair, Development Committee

Ingrid is a Lecturer in the Marketing discipline in the School of Management and

Governance at Murdoch University, with a special interest in customer engagement. She

also runs her own boutique marketing strategy consultancy. As a specialist in the area ofmarketing strategy, Ingrid has over 20 years international consulting experience. She has

worked in Australia, UK, Europe, USA and China, with a variety of blue-chip companies

across a range of sectors such as financial services, resources, not-for-profits, professional

services, healthcare, retail, agriculture, government, online marketing and education.

DARREN LEWSENBoard Director (appointed 27 April 2017)

Member, Finance and Audit Committee

Darren is the Western Region Assurance Leader for Ernst & Young, where he leads a

practice comprising 15 partners and 160 employees. Darren is also a member of EY’s

Oceania Assurance Leadership Team. With more than 20 years’ experience providingassurance services and advice across a diverse range of industries, Darren is highly

regarded in the Perth business community for providing practical and pragmatic solutions to

his clients. Darren has led audits, due diligence assignments and advisory engagements for

a number of Perth’s largest listed companies.

JAN STEWARTBoard Director (appointed 29 April 2015)

Jan Stewart PSM, BA, MSW. HonDLitt.WAsust, FAIM, GAICD held the position of CEO of

Lotterywest from 1992 to December 2014. Prior to that, Jan was the Director of Grants and

Community Development at Lotterywest. From February 2016 to September 2016 she was

acting General Manager of West Australian Ballet. Jan holds a Bachelor of Arts and aMaster’s Degree in Social Work from the University of Western Australia. Jan has held a

number of voluntary board positions with a diverse range of organisations, both locally and

internationally, for many years. These have included that of Senior Vice President on the

Executive Committee of the World Lottery Association for more than eight years. She held

the inaugural position of President of the Asia Pacific Lottery Association from 1999 to 2004and was again a member of the Executive Committee of that organization from 2012-14.

She was a member of the Hale School Board for 12 years and on the board of Save the

Children for 5 years. Her current board positions, apart from the West Australian Opera

board, are the Perkins Medical Research Institute, St Bartholomew’s House, MercyCare,

Country Arts and she is a trustee of the Feilman Foundation. Jan is Chairman of the advisorycommittee of the University of Western Australia’s Centre for Social Impact, Chairman of the

Raine Study Board and member of the University of Western Australia's Sports Advisory

Committee. Jan was awarded a Medal for outstanding service to the University of Western

Australia in 2004, a Public Service Medal in the Australia Day honours of 2009 and is a

graduate of the Australian Institute of Company Directors. In 2016 she was awarded thehonorary degree of Doctor of Letters by the University of Western Australia in recognition of

her services to the community and to the arts.

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MARIO D’ORAZIOBoard Director (appointed 29 April 2015; retired 22 March 2019)

Member, Development Committee

Since 2011 Mario has been the Managing Director of Channel Seven in Perth. TVW 7

Perth has been Australia’s highest rating and best performing TV station for several years

with a strong focus on community engagement, local production and sport. It created thewonderful children's charity, Telethon, in 1968, which has set new standards in

philanthropy in WA. Mario has been the trustee of Telethon Trust since 2011. Mario

holds a Bachelor of Arts and a Diploma of Education from the University of Western

Australia. He is on the board of the board of the WA Academy of Performing Arts at Edith

Cowan University. He is also the Chairman of the Perth Public Art Foundation, anorganisation that raises funds, creates and promotes public art in the CBD. He was

recently appointed Chair of the Contemporary Dance Company of WA, Co3. Mario is

also the director of the Australian Institute of Management WA, a highly respected

professional educational, research and training institution, and recently stepped down as

a director of HealthEngine, a national health-technology company based in Perth.

ANTHONY GIANOTTI

Board Director (appointed 1 January 2018)

Anthony is the Chief Financial Officer of Wesfarmers Limited. He was appointed to thisrole in November 2017 following his appointment as Deputy Chief Financial Officer in

July 2017. Prior to this, he was Deputy Managing Director of the Industrials division from

February 2017 and Finance Director from August 2015. Anthony started with Wesfarmers

in 2004, and his other roles include Manager, Investor Relations; Finance Director of

Wesfarmers Insurance and Managing Director of Wesfarmers Insurance. Anthony beganhis career with Ernst & Young in business services and corporate finance and has held

senior corporate finance roles advising on mergers and acquisitions and corporate

strategy with Hambros Bank and Société Générale in Sydney, London and Melbourne.

Anthony holds a Bachelor of Commerce from Curtin University, a Graduate Diploma in

Applied Finance and Investments, is a qualified Chartered Accountant and hascompleted the Advanced Management Program at Harvard Business School. He is a

director of a number of Wesfarmers Group subsidiaries.

CHRISTIAAN HEYNINGBoard Director (appointed 1 August 2018)

Christiaan is a Principal in McKinsey & Company, located in Perth, Australia. He leads

the Digital practice for natural resources and heavy industrial sectors in Asia, and the Oil

and Gas sector in Australia. He has done extensive work in both Operations and Digital

(including AA) in mining. Prior to McKinsey, Christiaan worked for an IT services firmbefore starting up his own company in eLearning in the late 1990s in Singapore and

London. He joined McKinsey in 2003. Christiaan Heyning holds a Master Degree in

applied physics with a specialization in Material Science at the University of Groningen

and the University of California at Berkeley.

PRIVATE GIVING

Report

PRIVATE GIVING PROGRAM

To our donors, thank you to each and every one of you for your

important, valued and appreciated contribution.

Art changes lives. Supporting West Australian Opera’s young artists, artistic development,

community and education programs can have a lifelong impact.

Giving to support the art forms we love can be a civic virtue, whether through bequests, gifts,

donation or sponsorship.

The generosity of each and every supporter enables West Australian Opera to present and

develop Australian artists, to reach out into communities, to put opera on the stage and with

the power of our offering to enrich the cultural landscape of our State.

Annual giving is the most important way to support the company and underpins our everyday

operations. The Private Giving Program enables West Australian Opera to continue to seek

ways to shape the company in a sustainable way. It helps to keep opera affordable and

accessible to a wide audience.

Donors demonstrate a shared passion for the art form and stretch the way they appreciate

opera.

The Program’s key investment areas are:

• Distinctive, world’s best performances• Youth and education programs

• Community and access projects

• Young & emerging artists’ development

If you are interested in supporting your state opera company please contact the DevelopmentManager on 08 9278 8902 or visit www.waopera.asn.au.

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PRIVATE GIVING

Report

PLANNED GIVING PROGRAMBequests to West Australian Opera are preserved as the legacies of their donors, people with

vision who understand the importance of opera to a community. These legacies help us to

continue with the presentation of world-class opera and development of young artists. Unless

otherwise stipulated, monies received from bequests will be invested and preserved in the

Endowment Fund and income earned used to support the company’s key investment areas orspecific projects as outlined in the bequest.

ENDOWMENT FUND

Becoming an endowment fund supporter is a unique opportunity to partner with West Australian

Opera. Endowment fund support represents a meaningful investment in the arts and in thediverse community of Western Australia.

Established in 2008 the Endowment Fund’s purpose is to build capital reserves, which support

the company’s ability to present world-class opera productions of the highest calibre with the

most talented artists of our time now and for the next generation of artists and individuals.Bequests, major gifts and capital funds created by individuals will be placed within the

Endowment Fund. Income earned enables West Australian Opera to keep opera a live and

accessible art form for all West Australians.

FORTESCUE METALS GROUP SHARESIn 2011 the company gratefully received a major gift from the Forrest Family. Individual giving in

the arts is greatly valued. The support that foundations, trusts and donors offer to arts companies

has a significant impact on the ability to plan and deliver initiatives. West Australian Opera

wishes to acknowledge and thank Andrew and Nicola Forrest for the generous gift of shares.

This contribution stands as testament to their commitment to a strong and vibrant arts sector inWestern Australia. This unique and unprecedented gift is vital to the company’s future and

success.

23

CAST OF SUPPORTERSWest Australian Opera thanks every donor in the Private Giving Program.

LEADERSHIP CIRCLE ($10,000+)Alexandra & Julian Burt

Mario D’Orazio

Liz & Erich Fraunschiel

Warwick Hemsley & Melissa Parke

Sam & Leanne WalshAnonymous (1)

PRINCIPAL PATRON ($5,000+)

Dr Jack Bendat AM CitWA

Catherine FerrariDr Patricia Kailis

The Robert Kimpton Family

Dr Robert Larbalestier

Annie and Neil Patrick

Dr Peter Simpson OAMHon J McKechnie

Richard Tarala & Lyn Beazley AO

Joyce Westrip OAM

BENEFACTOR ($2,500+)Neil Archibald & Alan R Dodge AM

Eleanor John

Max Kay AM CitWA and Norma Kay

Francis Landels

Dr Bryant MacfieMichael & Helen Tuite

Joyce Young

SUPPORTER ($1,000+)

Gaysie AtkinsonBetty Barker

Gay & Robert Branchi

Dr Peter & Mrs Rae Breidahl

Claire Britten and John McKay

Lynne Burford PublicityMrs Joan Carney

Helen Carroll

Frank Cooper AO

Christine Dalla Riva

Lorraine Ellard

Rosemary Grigg & Peter Flanigan

Dr Dennis Hayward

Kathryn Hogan & Graham DroppertUlrich & Gloria Kunzmann

Simon Landers

Ross & Frances Ledger

Patrick Lilburne

Richard Noble & CoCelia & Neil Patterson

Maria & Robert Radici

Bill Reid

Kerry Sanderson AC

Kim & Keith SpenceYannis Vrodos

Dr Chris and Mrs Vimala Whitaker

Anonymous (4)

FRIEND ($500+)Ian & Kerry Adams

Siobhan Beilin

Mary Carr

Carolyn Chard AM

Helen CookFriends of His Majesty’s Theatre

T & E Gerner

Dr Rosalind Hampton

Ian & Sue Hobson

Jock and Jennifer LaurieMegan Lowe

Len & Sue Roberts-Smith

Thurston Saulsman

Diana Warnock and the late Bill Warnock

Dr Peter WintertonAnonymous (4)

24

CAST OF SUPPORTERS

TRUSTS AND FOUNDATIONSBendat Family Foundation

James Galvin Family Foundation

Stan Perron Charitable Trust

Wright Burt Foundation

ANDREW AND NICOLA FORREST

The generous gift of FMG shares is testament

to the Forrest’s commitment to a strong and

vibrant arts sector in Western Australia.

We acknowledge the Minderoo Foundation.

YOUNG ARTIST PROGRAM

The Bendat Scholarship

James Galvin Family Foundation

Mr Andrew MitchellSociety of WA Opera Lovers

BEL CANTO FUND

Thanks to the leadership donors of the

Bel Canto Fund

YOUNG LEADERS CIRCLE

Thank you to Herbert Smith Freehills for their

ongoing commitment to this initiative,

especially through Yannis Vrodos as the program’s Ambassador. Thank you to the

inaugural members of the Young Leaders

Circle for their active engagement.

BEQUEST CIRCLEAilsa West

Anita & James Clayton

Anonymous (3)

25

SPONSORSHIP

Report

The company is very proud of its

partnership with Wesfarmers Arts,

Principal Partner.

The contributions made by sponsors, trusts,

foundations and supporters is vital to the

continued success of West Australian Opera.

Sponsorship plays a critical role in the growth

and development of the company and enables

the company to present opera of the highest

standard and fulfil the aim of making opera anevolving, relevant and valuable art form that

can be a source of pride for West Australians.

We are grateful for the support of our

Participation Partner Healthway that supportsOpera in the Regions and our education and

outreach initiatives. We also thank Lotterywest

and Civic Partner the City of Perth that enable

the signature free outdoor summer event ‘City

of Perth Opera in the Park’.

The company is grateful to the ongoing loyalty

and commitment of sponsors and partners

who generously support the state opera

company.

Principal Partner

Wesfarmers Arts

Participation Partner

Healthway

Official Airline Partner

Qantas

Civic Partner

City of Perth

Community Partner

Lotterywest

Major Partners

APN Outdoor

Minderoo Foundation

Opera Partners

Herbert Smith Freehills

KPMG

Voyager Estate

Painted Dog Research

Quest East Perth

Atlas Pearls & Perfumes

InterContinental Perth City Centre

Future Logic

Copyworld Toshiba

Kreepy Krauly

Tertiary Education Partner

The University of Western Australia

Government Partners

Government of Western Australia

Department of Local Government, Sport

and Cultural Industries

Australian Government through the

Australia Council for the Arts

26

THE WESTERN AUSTRALIAN OPERA

COMPANY INCORPORATED

Financial Report

For the year ended

31 December 2018

The Western Australian Opera Company Incorporated

Financial Report for Year Ended 31 December 2018

1

Directors’ Report

Your Directors submit the financial report of The Western Australian Opera Company

Incorporated for the year ended 31 December 2018.

1. Directors during the financial year and until the date of this report:

Mr Andrew Pascoe (Chairman)

Ms Catherine Ferrari (Deputy Chair)

Mr Julian Burt (resigned 4th December 2018)

Mr Mario D’Orazio (resigned 22nd March 2019)

Mr Anthony Gianotti (appointed 1st January 2018)

Mr Warwick Hemsley (resigned 17th April 2018)

Mr Christiaan Heyning (appointed 1st August 2018)

Mr Darren Lewsen

Ms Ingrid O’Brien

Ms Jan Stewart

2. Principal Activities

The principal activity of The Western Australian Opera Company Inc in the course of

the financial year was the presentation of opera.

3. Significant Changes

No significant change in the nature of these activities occurred during the year.

4. Operating Result

The loss from ordinary activities for the financial year was $167,084 (2017: profit

$594,536).

5. Auditor’s Independence declaration

The auditor’s independence declaration under section 60-40 of the Australian

Charities and Not For Profit Commission Act 2012 is included in this Annual Report and

forms part of the Directors’ Report of The Western Australian Opera Company Inc for

the year ended 31 December 2018.

Signed in accordance with a Resolution of the Board.

........................................................................ ........................................................................

Andrew Pascoe Catherine Ferrari

(Chairman) (Deputy Chair)

Dated this 10th day of April 2019



2

Statement of Profit or Loss and Other Comprehensive Income

for the year ended

31 December 2018

NOTES 2018

$

2017

$

Revenue 2 1,346,076 1,732,222

Other Income 2 4,311,111 4,881,902

Employee expenses (2,739,322) (2,929,165)

Depreciation (16,568) (15,215)

Other expenses

Production sets, costumes and sound (571,283) (476,376)

Theatre rental and associated costs (580,840) (666,283)

Other costs of production (363,400) (319,421)

Administration expenditure (452,711) (453,747)

Marketing and promotion expenditure (812,095) (874,621)

Opera Conference contribution (288,052) (284,760)

Net profit/(loss) attributable to the Association (167,084) 594,536

Other comprehensive income to be reclassified

to profit or loss in subsequent periods

Decrease in Investment Revaluation Reserve (107,852) (157,871)

Total comprehensive income/(loss) for the year (274,936) 436,665

The accompanying notes form part of these financial statements



3

Statement of Financial Position

as at

31 December 2018

NOTES 2018

$

2017

$

CURRENT ASSETS

Cash and cash equivalents 3 587,848 109,163

Deposits 4 1,875,000 2,375,000

Trade and other receivables 6 99,660 112,325

Other current assets 7 122,282 134,994

TOTAL CURRENT ASSETS 2,684,790 2,731,482

NON-CURRENT ASSETS

Restricted cash deposits 5 950,000 950,000

Property, plant and equipment 8 121,409 130,334

Financial asset at fair value through other

comprehensive income

9

654,931

762,783

TOTAL NON-CURRENT ASSETS 1,726,340 1,843,117

TOTAL ASSETS 4,411,130 4,574,599

CURRENT LIABILITIES

Trade and other payables 10 335,768 233,871

Short-term provisions 11 84,249 47,124

TOTAL CURRENT LIABILITIES 420,017 280,995

NON-CURRENT LIABILITIES

Long-term provisions 11 29,225 56,780

TOTAL NON-CURRENT LIABILITIES 29,225 56,780

TOTAL LIABILITIES 449,242 337,775

NET ASSETS 3,961,888 4,236,824

EQUITY

Retained profits 1,474,253 1,641,337

Reserves 12 2,487,635 2,595,487

TOTAL EQUITY 3,961,888 4,236,824




4

Statement of Changes In Equity

for the year ended

31 December 2018

Retained

Profits

$

Restricted

Funds

Reserve

$

(Note 12)

Unrestricted

Funds

Reserve

$

(Note 12)

Investment

Revaluation

Reserve

$

(Note 12)

Total

$

Balance at

1 January 2017

1,346,801

850,000

975,000

628,358

3,800,159

Net profit attributable to

the Association

594,536

-

-

-

594,536

Decrease in Investment

Revaluation Reserve

-

-

-

(157,871)

(157,871)

Addition to Restricted

Funds Reserve

(100,000)

100,000

-

-

-

Addition to Unrestricted

Funds Reserve

(200,000)

200,000

-

-

Balance at

31 December 2017

1,641,337

950,000

1,175,000

470,487

4,236,824

Balance at

1 January 2018

1,641,337

950,000

1,175,000

470,487

4,236,824

Net loss attributable to

the Association

(167,084)

-

-

-

(167,084)

Decrease in Investment

Revaluation Reserve

-

-

-

(107,852)

(107,852)

Balance at

31 December 2018

1,474,253

950,000

1,175,000

362,635

3,961,888




5

Statement of Cash Flows

for the year ended

31 December 2018

NOTES 2018

$

2017

$

Cash flows from Operating Activities *

Donations and sponsorship received 1,503,255 1,790,974

Grants received 2,660,066 2,522,515

Dividends Received 60,067 91,775

Receipts in the course of operations 1,275,408 1,806,405

Interest Received 112,961 74,898

Payments to suppliers and employees (5,624,228) (5,993,433)

Net cash (used)/provided by Operating Activities 16(b) (12,471)

293,134

Cash flows from Investing Activities

Payment for property, plant and equipment (8,844) (17,195)

Net Cash used in Investing Activities (8,844) (17,195)

Net (decrease)/increase in cash held (21,315) 275,939

Cash at beginning of the financial year 3,434,163 3,158,224

Cash at the end of the financial year 16(a) 3,412,848 3,434,163

*Comparative classification has changed with no impact to net cash (used)/provided by Operating Activities.




6

Notes to the financial statements for the year ended

31 December 2018

1. Summary of significant accounting policies

a) Basis of preparation

The Financial Report is a general purpose financial report that has been drawn up in

accordance with Australian Accounting Standards and other authoritative

pronouncements of the Australian Accounting Standards Board and the requirements

of the Associations Incorporation Act (WA) 2015.

The financial report covers The Western Australian Opera Company Incorporated as

an individual entity. The Western Australian Opera Company Incorporated is an

Association incorporated in Western Australia under the Associations Incorporation

Act (WA) 2015.

The Western Australian Opera Company Incorporated is a not-for-profit entity. The

principal activity of the company in the course of the financial year was the

presentation of opera.

The financial report is presented in Australian dollars which is the company’s functional

currency.

The financial report is prepared on an accruals basis and is based on historical costs

and does not take into account changing money values, or, except where stated,

current valuations of non-current assets. Cost is based on the fair values of

consideration given in exchange for assets. The accounting policies have been

consistently applied, unless otherwise stated.

b) New accounting standards and interpretations

In the current year the Association has adopted all of the new and revised Standards

and Interpretations issued by the Australian Accounting Standards Board (AASB) that

are relevant to its operations and effective for reporting periods beginning 1 January

2018. The adoption of these new and revised Standards and Interpretations did not

have any effect on the financial position of the Association.

A number of new standards and amendments to standards are effective for annual

reporting periods beginning after 1 January 2018 however the company has decided

against early adoption of the following new or amended standards:

• AASB 15 Revenue from Contracts with Customers

• AASB 16 Leases

• AASB 1058 Income of Not for Profit Entities

The company is yet to determine the impact of these standards.

The following is a summary of the material accounting policies adopted by the

Association in the preparation of the financial report. The accounting policies have

been consistently applied, unless otherwise stated.



7


31 December 2018

c) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less, where applicable,

any accumulated depreciation.

The carrying amount of plant and equipment is reviewed annually by the Association

to ensure it is not in excess of the recoverable amount from those assets. The

recoverable amount is assessed on the basis of the expected net cash flows which

will be received from the assets’ employment and subsequent disposal.

Depreciation

The depreciable amounts of all property, plant and equipment are depreciated on

a straight line basis over the useful lives of the assets to the Association, commencing

from the time the assets are held ready for use.

The depreciation rates used for each class of depreciable assets are:

Class of property, plant and equipment Depreciation Rate

Office Equipment, Furniture & Fittings 10 - 50%

Pianos 10%

Music library 10%

Sound Shell 10%

Production Equipment 10%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate,

at each balance sheet date.

An asset’s carrying amount is written down immediately to its recoverable amount if

the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the

carrying amount. These gains and losses are included in the income statement.

d) Employee Benefits

(i)Wages, salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and

accumulating sick leave expected to settle within 12 months of the reporting date

are recognised in respect of employees’ services up to the reporting date. They are

measured at the amounts expected to be paid when the liabilities are settled.

Expenses for non-accumulating sick leave are recognised when the leave is taken

and are measured at the rates paid or payable.

(ii) Long service leave

The liability for long service leave is recognised and measured as the present value of

expected future payments to be made in respect of services provided by employees

up to the reporting date using the projected unit credit method. Consideration is

given to expected future wage and salary levels, experience of employees,



8


31 December 2018

Employee Benefits cont.

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

market yields at the reporting date on national government bonds with terms to

maturity and currencies that match, as closely as possible, the estimated future cash

outflows.

e) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at-call with banks,

other short term highly liquid investments with maturities of three months or less.

f) Revenue

Interest revenue is recognised as interest accrues using the effective interest method.

This is a method of calculating the amortised cost of a financial asset and allocating

the interest income over the relevant period using the effective interest rate.

Revenue from the rendering of a service is recognised upon the delivery of the service

to the customers.

Government grants are initially recognised in the balance sheet as a liability when the

grant is received. When the grant relates to an expense item it is recognised as

income over the periods necessary to match the grant on a systematic basis to the

costs that it is intended to compensate.

Revenue from donations is recognised on receipt.

All revenue is stated net of the amount of goods and services tax (GST).

g) Goods & Services Tax

Revenues, expenses and assets are recognised net of the amount of goods and

services tax (GST) except where the amount of GST incurred is not recoverable from

the Australian Taxation Office (ATO). In these circumstances the GST is recognised as

part of the cost of acquisition of the asset or as part of an item of expense.

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 Balance Sheet.

Cash flows are included in the Cash Flow Statement 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 in the

statement.



9


31 December 2018

h) Income tax

The Association is deemed a non-profit organisation for income tax purposes and has

tax exempt status under Section 50-45 9.2 of the Income Tax Assessment Act 1997.

i) Financial Instruments

AASB 9 sets out requirements for recognising and measuring financial assets, financial

liabilities and some contracts to buy or sell non-financial items. This standard replaces

IAS 39 Financial Instruments: Recognition and Measurement. The Association applied

AASB 9 from 1 January 2018. The impact of AASB 9 is not material for the company.

Recognition and initial measurement

Trade receivables and debt securities issued are initially recognised when they are

originated. All other financial assets and financial liabilities are initially recognised

when the association becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing

component) or financial liability is initially measured at fair value, plus for an item not

at fair value through profit or loss (FVTPL), transaction costs that are directly

attributable to its acquisition or issue. A trade receivable without a significant

financing component s initially measured at the transaction price.

Classification and subsequent measurement

Financial assets – classification policy applicable from 1 January 2018:

On initial recognition, a financial asset is classified as measured at amortised cost, fair

value through other comprehensive income (FVOCI) or fair value through profit or loss

(FVTPL).

Financial assets are not reclassified from their initial recognition unless the association

changes its business model for managing financial assets, in which case all affected

financial assets are reclassified on the first day of the first reporting period following

the change in the business model.

On initial recognition of an equity investment that is not held for trading, the

association may irrevocably elect to present subsequent changes in the investment’s

fair value through other comprehensive income (FVOCI). This election is made on an

investment by investment basis.

All assets not classified as measured at amortised cost or FVOCI, are measured at

FVTPL.

Financial assets – subsequent measurement policy from 1 January 2018:

Financial assets at amortised cost are measured using the effective interest method.

The amortised cost is reduced by impairment losses. Interest income and impairment

are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit

or loss.



10


31 December 2018

Financial Instruments (cont)

Financial assets at FVTPL are subsequently measured at fair value. Net gains and

losses, including any interest or dividend income, are recognised in profit or loss.

Financial assets at FVOCI are measured at fair value with gains and losses being

recognised in other comprehensive income.

Financial assets – classification policy before 1 January 2018:

The association classified its financial assets as loans and receivables, held to maturity

financial assets or available-for-sale investments.

Financial assets – subsequent measurement policy before 1 January 2018:

Held to maturity assets and loans and other receivables were measured at amortised

cost using the effective interest rate method.

Available-for-sale financial assets were measured at fair value and changes therein,

other than impairment losses, were recognised in other comprehensive income and

accumulated in the investment revaluation reserve. When these assets were

derecognised, the gain or loss accumulated in equity was reclassified to profit or loss.

Financial liabilities:

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial

liability is classified as FVTPL if it is classified as held-for-trading, it is a derivative or it is

designated as such on initial recognition. Financial liabilities at FVTPL are measured at

fair value and net gains and losses, including any interest expense, are recognised in

profit or loss. Other financial liabilities are subsequently measured at amortised cost

using the effective interest rate method. Interest expense and any gain or loss on

derecognition is also recognised in profit or loss.

Derecognition

Financial assets:

The association derecognises a financial asset when the contractual rights to the cash

flows from the financial asset expire, or it transfers the rights to receive the contractual

cash flows in a transaction in which substantially all of the risks and rewards of

ownership of the financial asset are transferred or in which the association neither

transfers nor retains substantially all of the risks and rewards of ownership and it does

not retain control of the financial asset.

The association enters into transactions whereby it transfers assets recognised in its

statement of financial position, but retains either all or substantially all of the risks and

rewards of the transferred assets. In these cases, the transferred assets are not

derecognised.



11


31 December 2018

Financial Instruments (cont)

Financial liabilities:

The association derecognises a financial liability when its contractual obligations are

discharged or cancelled, or expire. The association also derecognises a financial

liability when its terms are modified and the cash flows of the modified liability are

substantially different, in which case a new financial liability based on the modified

terms is recognised at fair value.

On derecognition of a financial liability, the difference between the carrying amount

extinguished and the consideration paid (including any non-cash assets transferred

or liabilities assumed) is recognised in profit or loss.

j) Leases

Lease payments for operating leases, where substantially all risks and benefits

remain with the lessor, are charged as expenses in the periods in which they

are incurred.

k) Economic Dependency

The Western Australian Opera Company are economically dependent on

government funding and corporate sponsorship for the majority of its revenue. At the

date of this report the Board of Directors have no reason to believe these parties will

not continue to support the company.



12


31 December 2018

2018

$

2017

$

2 REVENUE, OTHER INCOME AND EXPENSES

(a) Revenue

Performance income 1,256,849 1,644,108

Interest received 87,769 86,325

Members subscriptions 1,458 1,789

Total Revenue 1,346,076 1,732,222

(b) Other Income

Operating grants

- Department of Local Government, Sport &

Cultural Industries – Base grant

1,934,136

1,934,137


Cultural Industries – Additional Activity Funding

-

150,000


Cultural Industries – Regional Touring grant

-

198,010

- Australia Council – Base grant 484,106 477,421

Sponsorship – Healthway 200,000 200,000

Private and corporate support 1,619,788 1,795,323

Dividends Received 60,067 91,775

Sundry income 13,014 35,236

Total Other Income 4,311,111 4,881,902

Total Revenue and other income 5,657,187 6,614,124

(c) Expenses

Depreciation of plant and equipment 16,568 15,215

Audit fees 40,000 40,450

Operating lease rental payments 53,700 53,700



13


31 December 2018

2018

$

2017

$

3 CASH AND CASH EQUIVALENTS

Cash at bank and on hand 587,848 109,163

587,848 109,163

Effective interest rate 0.85% 0.89%

4 DEPOSITS

Deposits with maturity of more than 3 months 1,875,000 2,375,000

1,875,000 2,375,000


5 RESTRICTED CASH DEPOSIT

Restricted cash deposit 950,000 950,000

950,000 950,000

Access to cash restricted under terms of the Reserve

Incentive Scheme, Bendat Family Foundation Deed

of Gift and Bel Canto Fund. Refer Note 12 for more

details.


6 TRADE AND OTHER RECEIVABLES

Trade Debtors 2,283 10,883

Income receivable from Healthway 20,000 20,000

Other receivables 77,377 81,442

99,660 112,325

These amounts are non-interest bearing receivables which relate to sundry debtors

and accrued interest.

7 OTHER CURRENT ASSETS

Prepayments 122,282 134,994



14


31 December 2018

2018

2012

$

2017

2012

$

$ $

8 PROPERTY, PLANT AND EQUIPMENT

Office furniture and equipment – at cost 103,077 207,274

Less accumulated depreciation (62,124) (162,027)

40,953 45,247

Pianos – at cost 161,449 161,449


78,351

20,000 -

85,087

92,635

20,000 -

Music Library – at cost 1,257 1,257


- -

Sound Shell – at cost 13,505 13,505


- -

8 PROPERTY, PLANT AND EQUIPMENT cont.

Production equipment – at cost 46,606 44,406


2,105

-

-

121,409

-

130,334

-

(a) Movements in carrying amounts

Movement in the carrying amounts for each class of property, plant and equipment

between the beginning and the end of the current financial year

2018 Office Furniture

& Equipment

Pianos Production

Equipment

Total

$ $ $ $

Balance at 1 January 2018 45,247 85,087 - 130,334

Additions 6,644 - 2,200 8,844

Disposals (1,201) (1,201)

Depreciation (9,737) (6,736) (95) (16,568)

Carrying amount at

31 December 2018 40,953 78,351 2,105 121,409

2017 Office Furniture

& Equipment

Pianos Production

Equipment

Total

$ $ $ $

Balance at 1 January 2017 35,719 92,635 - 128,354

Additions 17,195 - - 17,195

Depreciation (7,667) (7,548) - (15,215)

Carrying amount at

31 December 2017 45,247 85,087 - 130,334



15


31 December 2018 2018

$

2017

$

9 FINANCIAL ASSET AT FAIR VALUE THROUGH

OTHER COMPREHENSIVE INCOME

Movement in financial asset at fair value through

other comprehensive income

Value as at 1 January 762,783 920,654

(Devaluation)/Revaluation increment (107,852) (157,871)

Value as at 31 December 654,931 762,783

During the 2011 financial year the Association acquired an investment in listed shares of

Fortescue Metals Group (FMG) by donation. The fair value of the shares is determined by

reference to published price quotations on the ASX.

This asset was previously classified as an available-for-sale investment in 2017.

2018

$

2017

$

10 TRADE AND OTHER PAYABLES

Trade Creditors 143,161 70,944

Other Payables 23,551 41,073

Accruals 6,056 1,834

Loan from UWA 20,000 20,000

Income received in advance 143,000 100,020

335,768 233,871

The amount of the Loan from UWA is based on an agreed value of a piano on loan to the

Association from the University of Western Australia.

11 PROVISIONS

Annual Leave $ Long Service

Leave $

TOTAL $

Opening balance at 1 January 2018 44,543 59,361 103,904

Additional provisions raised during the year 50,974 8,074 59,048

Amounts used (47,155) (2,323) (49,478)

Balance at 31 December 2018 48,362 65,112 113,474

Opening balance at 1 January 2017 59,738 46,967 106,705

Additional provisions raised during the year 55,102 12,394 67,496

Amounts used (70,297) - (70,297)

Balance at 31 December 2017 44,543 59,361 103,904



16


31 December 2018

11 PROVISIONS cont.

2018

$

2017

$

Annual Leave 48,362 44,543

Current Long Service Leave 35,887 2,581

Total Current Provisions 84,249 47,124

Non-Current Long Service Leave 29,225 56,780

Total Non-Current Provisions 29,225 56,780

Total Provisions 113,474 103,904

A provision has been recognised for employee entitlements relating to annual and long

service leave for employees. In calculating the present value of future cash flows in respect

of long service leave, the probability of long service leave being taken is based upon

historical data. The measurement and recognition criteria for employee benefits have been

included in Note 1.

The current provision for long service leave represents the value of employee entitlements

expected to be paid within the next year.

12 RESERVES

Restricted Funds Reserves are comprised of:

(1) Reserve Incentive Scheme Agreement – This $300,000 (2017: $300,000) reserve is

established with contributions received from the Australia Council through the Major

Performing Arts Board ($100,000), Department of Local Government, Sport & Cultural

Industries ($100,000) and the transfer from the Association’s retained profits ($100,000).

These funds are to be held in escrow subject to the terms and conditions of the Reserve

Incentive Scheme and have not been used to secure any liabilities of the Association.

(2) Bendat Family Foundation Deed of Gift – This $500,000 (2017: $500,000) reserve has been

established for the purpose of establishing the Bendat Scholarship Fund and the Bendat

Scholarship Fund no. 2 to assist the Western Australian Opera Company to fund

scholarships awarded to talented young artists. These funds are to be held in escrow,

with interest earned on the funds to be used to fund scholarships.

(3) Bel Canto Fund Reserve – This $150,000 (2017: $150,000) reserve has been established for

the purpose of providing interest earnings to assist the Western Australian Opera

Company to develop and nurture talented local artists. These funds are to be held in

escrow, with interest earned on the funds to be used to assist local artists.



17


31 December 2018

12 RESERVES cont.

Unrestricted Funds Reserves are comprised of:

(4) Production Loss Reserve – This $500,000 (2017: $500,000) reserve has been established to

provide against costs incurred should a production or a number of performances of a

production be cancelled due to the unavoidable unavailability of artists or other

essential personnel.

(5) Capacity Building Reserve – This $675,000 (2017: $675,000) reserve has been established

to provide against additional development costs incurred in the presentation of

additional production seasons in future years.

Other Reserves are comprised of:

(6) Investment Revaluation Reserve – This $362,635 reserve (2017: $470,487) is used to record

increases and decreases in the fair value of financial assets through other

comprehensive income.

13 OPERATING LEASE COMMITMENTS

Non-cancellable operating leases contracted for but not

capitalised in the financial statements.

2018

$

2017

$

Payable – minimum lease payments

- not later than 12 months 52,864 26,850

- between 12 months and five years 79,296 -

The property lease is a non-cancellable lease with a

remaining term of 2 years and 6 months, with rent payable

quarterly in advance (2017: remaining term 6 months, rent

payable in advance).

14 FORWARD PLANNING COMMITMENTS

At 31 December 2018 the Association had committed to financial commitments totalling

$666,835 (2017: $929,092) for principal artists, creative team and production team for

Opera in the Park in February 2019, Sweeney Todd in July 2019 and Macbeth in October

2019. Payment of this amount is dependent on the productions taking place.



18


31 December 2018

15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Association’s principal instruments are cash, short term deposits from grants and

donations received, accounts receivable and accounts payable.

Risk Exposures and Responses:

(a) Interest rate risk

The Association’s exposure to interest rate risk arises from assets and liabilities bearing

variable interest rates.

At balance date, the Association had the following financial assets and liabilities

exposed to variable interest rate risk:

2018 2017

$ $

Financial Assets

Cash and cash equivalents 489,936 62,870

Total 489,936 62,870

The Association does not enter into any form of hedging instruments to mitigate this risk.

At 31 December 2018, if there was a movement in interest rates and all other variables

were held constant, there would have been negligible impact on profit and equity

(2017: negligible impact on profit and equity).

(b) Credit risk

The Association’s maximum exposures to credit risk in relation to each class of recognised

financial asset is the carrying amount of those assets as indicated in the Balance Sheet.

There are no long outstanding trade receivables.

(c) Foreign exchange risk

The Association is not exposed to fluctuations in foreign currencies.



19


31 December 2018

15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES cont.

(d) Liquidity Risk

The Association manages liquidity risk by monitoring forecast cash flows.

(e) Price risk

The Association is not exposed to any material price risk.

(f) Fair Values

The carrying amount of the Association’s financial assets and financial liabilities

approximate their fair value. Therefore fair values are as follows:

16 CASH FLOW INFORMATION

a) Reconciliation of Cash

For the purposes of the Cash Flow Statement, cash includes cash at bank and short

term deposits at call. Cash as at the end of the financial year is as follows for the

purposes of the Statement of Cash Flows:

NOTES 2018

$

2017

$

Cash on hand and at bank 3 587,848 109,163

Deposits with maturity of more than 3 months 4 1,875,000 2,375,000

Restricted funds 5 950,000 950,000

3,412,848 3,434,163

2018 2017

$ $

Financial Assets

Cash and cash equivalents 587,848 109,163

Deposits with maturity of more than 3 months 1,875,000 2,375,000

Restricted cash deposits 950,000 950,000

Trade and other receivables 99,660 112,325

Financial assets at fair value through other

comprehensive income

654,931

762,783

Financial liabilities

Trade and other payables 315,768 213,871



20


31 December 2018

16 CASH FLOW INFORMATION cont.

b) Reconciliation of Cash Flows from Operations with

Profit from Ordinary Activities

2018

$

2017

$

Profit/(loss) from Ordinary Activities (167,084) 594,536

Add/(less) non-cash income and expense items:

Non-cash loss on sale of fixed asset 1,201 -

Depreciation 16,568 15,215

Net cash provided/(used) by Operating Activities

before change in assets and liabilities

(149,315) 609,751

Change in assets and liabilities during the financial

year:

Decrease/(Increase) in debtors 12,665 100,227

Decrease/(Increase) in other assets 12,712 (70,077)

Increase/(Decrease) in trade creditors, accruals,

grants in advance and other current liabilities

101,897 (343,966)

Movement in employee benefits provisions 9,570 (2,801)

Net cash provided/(used) by Operating Activities

(12,471) 293,134

c) The Association has no credit stand-by or financing facilities in place.

17 SEGMENT REPORTING

For management purposes, the Association is organised into one main operating

segment, which involves productions. All of the Association’s activities are interrelated,

and discrete financial information is reported to the Board (Chief Operating Decision

Makers) as a single segment. Accordingly, all significant operating decisions are based

upon analysis of the Association as one segment. The financial results from this segment

are equivalent to the financial statements of the Association as a whole.

18 EVENTS SUBSEQUENT TO BALANCE DATE

There were no material events occurring after the reporting date that had a financial

effect on the Association.

19 RELATED PARTY TRANSACTIONS

Directors perform their duties on an honorary basis. No related party transactions

occurred during the financial year.



21


31 December 2018

20 AUDITORS’ REMUNERATION

The auditor of The Western Australian Opera Company is KPMG. The audit by KPMG is a

donation in-kind.

2018 2017

$ $

Value of donation in-kind

40,000 40,500

21 ASSOCIATION DETAILS

The principal place of business of the Association is:


Level 3, His Majesty’s Theatre

825 Hay Street

PERTH WA 6000



22

Statement by Directors

In the opinion of the Board the accompanying accounts as set out on pages 2 to 21:

(a) Represent a true and fair view of the financial position of The Western Australian

Opera Company Incorporated as at 31 December 2018 and its performance

for the year ended on that date in accordance with the Associations

Incorporation Act (WA) 2015 and Australian Accounting Standards (including

the Australian Accounting Interpretations) and the Australian Charities and Not

For Profit Commission Act 2012.

(b) At the date of this statement, there are reasonable grounds to believe that The

Western Australian Opera Company Incorporated will be able to pay its debts

as and when they fall due.

This statement is made in accordance with a resolution of the Board and is signed for and

on behalf of the Board by:

........................................................................ ........................................................................

Andrew Pascoe Catherine Ferrari

(Chairman) (Deputy Chair)

Dated this 10th day of April 2019.

KPMG, an Australian partnership and a member firm of the KPMG

network of independent member firms affiliated with KPMG

International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

Independent Auditor’s Report

To the members of The Western Australian Opera Company Incorporated

Opinion

We have audited the Financial Report of the Western Australian Opera Company Incorporated (the Association).

In our opinion, the accompanying Financial Report of the Association is in accordance with the Division 60 of the Australian Charities and Not-for-profits Commission (ACNC) Act 2012, and the Associations Incorporations Act 2015, including:

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

• Complying with Australian Accounting Standards and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

The Financial Report comprises:

• Statement of financial position as at 31 December 2018.

• Statement of profit or loss and other comprehensive income, Statement of changes in equity, and Statement of cash flows for the year then ended.

• Notes including a summary of significant accounting policies.

• Directors' declaration.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report.

We are independent of the Association in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code.

Other Information

Other Information is financial and non-financial information in The Western Australian Opera Company Incorporated’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information.

Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.

Responsibilities of the Directors for the Financial Report

The Directors are responsible for:

• Preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the ACNC.

• Preparing the Financial Report in accordance with the Associations Incorporations Act 2015.

• Implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

• Assessing the Association's ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Association or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report

Our objective is:

• to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and

• to issue an Auditor’s Report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit.

We also:

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

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

iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.

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

v. Evaluate the overall presentation, structure and content of the Financial Report, including the disclosures, and whether the Financial Report represents the underlying transactions and events in a manner that achieves fair presentation.

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

A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our Auditor’s Report.

KPMG Graham Hogg Partner Perth 10 April 2019

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

Lead Auditor’s Independence Declaration under subdivision

60-C section 60-40 of Australian Charities and Not-for-

profits Commission Act 2012

To the directors of The Western Australian Opera Company Incorporated

I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 31 December 2018 there have been:

i. no contraventions of the auditor independence requirements as set out in the Australian Charities and Not-for-profits Commission Act 2012 in relation to the audit; and

ii. no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG Graham Hogg Partner Perth 10 April 2019

Level 3, His Majesty’s Theatre825 Hay Street, Perth, WA 6000

PO Box 7052, Cloisters Square

Perth, WA 6850

www.waopera.asn.au

www.facebook.com/waopera

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