www.nzso.co.nz 1

For the year ended 30 June 2009

ANNUAL REPORT 2009NEW ZEALAND SYMPHONY ORCHESTRATe Tira Pūoro o aoTearoa

2

The Board have pleasure in presenting the Annual Report for the New Zealand Symphony Orchestra for the year ended 30 June 2009.

Roger Taylor Board Member, Chair of Audit Committee 31 August 2009

ANNUAL REPORT 2009 CONTENTS

The Vision, The MissionChair’s PrefaceChief Executive’s OverviewGovernance StatementPersonnel & Equal Opportunity PolicyNZSO OrganisationFinancial StatementsStatement of ResponsibilityAudit ReportStatement of Objectives and Service PerformanceSponsors & Funding AgenciesDirectory

3

4

6

8

9

9

10

10

11

29

35

35

PHOTO: Lev Melikhov

Peter DiesslBoard Member31 August 2009

www.nzso.co.nz 3

THE ViSiON THE MiSSiONTo enrich the lives of New Zealanders through artistically excellent performances, presented nationally and abroad by a full-time, full-strength, professional symphony orchestra of international standing.

The Vision, The MissionChair’s PrefaceChief Executive’s OverviewGovernance StatementPersonnel & Equal Opportunity PolicyNZSO OrganisationFinancial StatementsStatement of ResponsibilityAudit ReportStatement of Objectives and Service PerformanceSponsors & Funding AgenciesDirectory

An NZSO proudly supported by New Zealanders as a world class symphony orchestra – the flag-bearer of New Zealand’s musical life, nationally and internationally.

PHOTO: Lev Melikhov

4

This last year saw the NZSO’s tour to the Festival associated with the Beijing olympics, which was a fitting way to celebrate the signing of the first ever free trade agreement between China and another country. We felt proud, as the National Orchestra, to be flag-bearers for New Zealand culture. as on previous occasions when the Orchestra has toured to parts of the world where english is not the first language, it was a thrill to realize that the capacity audiences in the Forbidden City Concert Hall and the magnificent new National Centre for the Performing arts did not need translators to understand our message. We all shared equally in the powerful emotional communication of Psathas and Sibelius, Farr and Tchaikovsky.

One of the most remarkable aspects of the tour to China is that the costs were borne entirely by our Chinese hosts and our generous sponsors. Mr Shen Zhaowu, through his Contue Jinwan Enterprise Group, gave major support as did Mr Richard Yan who, through his company Richina, also provided valuable logisitical assistance. Solid Energy Ltd signed on as an NZSO Principal Sponsor in time for the tour. We were enormously grateful for their help – which came at a crucial moment in NZSO planning. For their part, Solid Energy assures us that the sponsorship was an invaluable way of advancing their business interests in China. Finally, we received support from the ANZ Bank in China and travel assistance from Air China. i would like to add that, both in the planning stages and during the tour itself, the New Zealand Embassy in Beijing and in particular our Ambassador, Anthony Browne, provided invaluable help.

in the overview of the year following this preface, our Chief Executive summarizes what has been a very busy and musically fulfilling year for the NZSo. it has nevertheless been the year when we, like every arts organisation in the developed world, have had to face up to the realities of living through a recession. From an NZSO perspective this has meant adjusting to slight reductions in the interest on cash reserves and in box office income together with a modest increase in costs (especially where artist contracts have had to be negotiated in Euro or USD). Cumulatively, these factors have ensured that the Board and senior management have had to be particularly vigilant.

The end-of-year financial position reported here is not as good as we had hoped. But the point that i need to underline is that – had the budgeted refund of Fringe Benefit Tax (mentioned in our last Annual Report) come through before the end of the year – we would have been reporting a better than break-even result. it had been expected that the Taxation (International Taxation, Life Insurance and Remedial Matters) Bill which would give rise to the refund, would be passed during the year. Hopefully, the FBT refund will come into the NZSO accounts during the 2009-2010 year.

Given the economic downturn, we are especially grateful this year for the loyalty of our sponsors. it is pleasing to report as the year ends that we have a full complement of Principal Sponsors. The Board appreciates greatly the loyalty of our corporate partners some of whom now go back over an impressive period. The Guinness Peat

Group (led by our long-standing friend, Tony Gibbs) have been with us since 1997 and the Radio Network (again with another old friend, John McElhinney, at the helm) since 2003. Our other Principal Sponsors – TVNZ, Manpower, Audi and Fairfax Media – have been instrumental in bringing outstanding artists to work with the orchestra. The partnership with Pacific Blue has a very special character. They fly the orchestra in their comfortable 737-800s between Auckland, Wellington, Christchurch and Dunedin – but through their membership of the Virgin Group – they hold the key to a major international tour for the NZSO in 2010. Watch this space.

Our Circle Sponsors – New Zealand Van Lines, Multi-Media, and – from the beginning of 2009 – Crowne Plaza make a significant contribution to the wellbeing of the Orchestra, as do our Concerto and Overture level sponsors. i would like to express my heartfelt thanks to them all.

We have been heartened by the response to the personal giving programme administered through the NZSO Foundation Trust, supporting the wider work of the Orchestra. i would like personally to thank all our benefactors, especially the faithful supporters who commit to us year on year. Of particular note in the past year has been the magnificent uptake for the chair and section endowment programme for the NZSO National Youth Orchestra. By the time the 50th Anniversary celebrations are complete we expect a majority of NYO chairs and at least two sections to be supported in this way. in the past year the NZSO Foundation has been able to realize our Music Director’s ambition to have a matched set of German trombones available to the NZSO. Many donors to the Foundation leave us free to apply their funds where most needed – and that is wonderful. Others have responded to particular opportunities. Professor Jack Richards, for example, graciously accepted an invitation to commission a new work from Jack Body, My Name is Mok Bhon, which received its premiere in the 2009 Made in New Zealand concert. Annette Campbell-White, who resides in the USA and who has a proud record of assisting young New Zealand performers with postgraduate studies, sponsored Ekaterina Semenchuk in the Auckland Festival concerts.

once again, i need to pay tribute to the magnificent work of our Friends’ groups in Auckland, Wellington and Christchurch. The Wellington Friends, in particular, have a remarkable record in combining fundraising with appealing events for their members and, through this, have been able to give substantial support to various projects, but particularly to the NZSO National Youth Orchestra.

We wish to welcome Hon Christopher Finlayson as Minister for the Arts, Culture and Heritage. Mr Finlayson’s active and generous personal involvement in the arts prior to becoming Minister shows how much he values and understands the contribution of the NZSO and its place in the professional orchestra sector in this country. We were pleased that Mr Finlayson was able to maintain the NZSO’s baseline funding in the 2009 government budget despite the pressures on the New Zealand economy.

CHAiR’S PREFACE

www.nzso.co.nz 5

CHAiR’S PREFACE

Our heartfelt thanks, too, to the Rt Hon Helen Clark and the Hon Judith Tizard for their nine years as Minister and Associate Minister respectively. During their terms in office the NZSo has successfully undertaken some very memorable projects that would not have been possible without their interest and support.

i would like to thank our magnificent group of players. We all feel immensely proud of their artistic achievements. The NZSO is also fortunate in having a talented and committed Chief Executive (Peter Walls) and management team, and i would like to thank them sincerely on behalf of the Board. Finally, i wish to thank my colleagues on the Board, who have given generously of their experience and expertise. The Board has provided excellent governance to ensure the stability and professionalism of the Orchestra.

i shall complete my term as Chair early in the new financial year. it has been a privilege and an honour to have been entrusted with the governance of this remarkable organization and i wish the incoming Chair and Board every success in the coming year. There are exciting plans in the pipeline. i will follow the NZSO’s progress with intense interest and continue to support the Orchestra in any way that i can. it is my earnest wish that all New Zealanders continue to enjoy and feel pride in their National Orchestra for generations to come. Floreat NZSO!

Diana Fenwick QSO

NZSO in China, 2008

NZSO National Youth Orchestra, 2009 PHOTO: ROBERT CATTO

PHOTO: MABLE WONG

6

The NZSO scored gold at the Beijing Olympics. Two concerts, the first in The Forbidden City and the second in the “egg” (the new National Centre for the Performing Arts) received standing ovations from full houses. Both were conducted by our brilliant Music Director, Pietari inkinen, and we were proud to have New Zealand tenor Simon O’Neill as our soloist at the NCPA. Chinese cellist, Li Wei, performed the Elgar Cello Concerto at the Forbidden City concert. Both programmes opened with works by New Zealand composers: John Psathas’s Olympiad XXVIII (an NZSO commission for the occasion) and Gareth Farr’s Te Papa (with Simon O’Neill, Deborah Wai-Kapohe, and Haley Maxwell as soloists). Haley, from Te Manawa Maurea, also delivered a karanga at each concert.

it was an honour for the NZSO to be invited to this Festival. We were in excellent company, having been preceded there by the Rotterdam, israel, and Helsinki Philharmonic orchestras. The European Union Youth Orchestra with Vladimir Ashkenazy performed in the Egg the night after the NZSO.

Pietari inkinen is a brilliant conductor. Now in his second year as Music Director, we can see the fruits of his work in building ensemble and playing standards. His presentation of Mahler’s Third Symphony in the Auckland Festival 2009 was a highlight of the year, but his subscription tours, too, have been musically thrilling. Since his NZSO appointment was announced in 2007, Pietari’s reputation internationally has soared and he is now one of the most sought-after conductors in Europe and the USA.

Our subscription tours have featured other outstanding guest conductors, including old friends like Yoel Levi (in July 2008) and Matthias Bamert (May 2009). Julia Jones and Jacques Lacombe, and Alexander Shelley made their debuts with the NZSO.

There have been exceptional soloists. Yefim Bronfman, a giant amongst living pianists, gave a three-concert celebrity tour in August 2008. His profound and technically impeccable performances of Brahms’ Piano Concerto No 2 more than justified his global reputation. But two younger pianists displayed similar mastery; Simon Trpčeski toured in July 2008 and Steven Osborne in May 2009. Cellist Alban Gerhardt (August 2008) and violinist Cho Liang Lin (on his third NZSO tour) both gave inspiring performances. Maria Kliegel, one of the most recorded cellists of our age, was the focus of a special concert in Wellington in November before touring smaller South island centres on The Lion Foundation Mainland Tour (with concerts in Blenheim, Kaikoura, Ashburton, Twizel, Wanaka and Alexandra). The other cello soloist to perform with the NZSO this year has been Nicolas Altstaedt, whose engagement resulted from his winning the Adam international Cello Competition in 2007.

Within every season, we try to feature one soloist who, first, is not a pianist, violinist, or cellist, and second, who is able to communicate the fun and adventure of new music to audiences. Christian Lindberg, who toured with conductor Hannu Lintu, in August 2008 is a legend amongst trombonists and his performances of Jan Sandström’s Motorbike Odyssey and his own Helikon Wasp fascinated and amused our audiences. in June 2009, Kari Kriikku astonished us all with what he could do

on a clarinet. But there was more than advanced techniques and showmanship; his musicianship is absolutely superb.

We were proud to present the New Zealand baritone Teddy Tahu rhodes as the soloist on our final subscription tour for 2008. At the beginning of 2009, New Zealander Tecwyn Evans made his NZSO debut with concerts in Waikanae, Lower Hutt and Wellington (and will be returning to conduct a national tour in 2010). Conductor Hamish McKeich led the reduced orchestra Heartland Tour with NZSO Principal Trumpet Michael Kirgan as soloist in Wanganui, New Plymouth, Te Kuiti, Tauranga, Whakatane, and Gisborne. Our TVNZ sponsored, Nothing But Dreams programme, presented in Auckland and Wellington in January 2009 featured talented New Zealand artists of a rather different kind. Conductor and Arranger Carl Doy was joined by Tina Cross, Grant Sullivan, and Bella Kalolo (all of whom had worked with him on TVNZ’s Dancing with the Stars programme).

New Zealand composition has featured strongly in NZSO programmes – including (as noted above) the works by Psathas and Farr presented in Beijing. Our series of commissions using NZSO principals as soloists continued with Kenneth Young’s Remembering beautifully performed by Concertmaster Vesa-Matti Leppänen and Martin Lodge’s Winterlight written for our former principal bassoon Preman Tilson. Two New Zealand classics have been featured on subscription programmes – Jack Body’s Melodies and Anthony Watson’s powerful Prelude and Allegro for Strings (composed in the 1970s).

The 2009 Made in New Zealand concert was about the Douglas Lilburn legacy and in particular his pioneering of electroacoustic music in this country. The programme included works by Jack Body, Dugal McKinnon, and Lissa Meridan for electroacoustic sound and orchestra (the last of these an NZSO commission).

We have continued to present rehearsed readings of New Zealand orchestral works in conjunction with SOUNZ and to host the Todd Corporation Young Composer Awards (essentially several days of presenting new works by student composers in a workshop situation with an established composer as mentor).

This has been an eventful year for the NZSO’s Education Programme. There have been the usual array of young people’s concerts, small group visits to schools (including once again a visit to the Oaklynn Special School in Auckland), open days at Te Papa and a family concert in the Auckland Festival 2009 with Pietari inkinen conducting and featuring Peter and the Wolf with narrator Michael Hurst.

But the event that has dominated has been the 50th anniversary of the NZSO National Youth Orchestra. With this in mind, auditions for the 2008 NYO were designed to guarantee the best young players a place in the orchestra for two seasons. This then began with concerts in August in Auckland, Napier, Wellington and Christchurch under the direction of French-Canadian, Jacques Lacombe and with soprano Madeleine Pierard as soloist. Then, in January, the orchestra re-assembled at Napier Girls’ High School for a live-in summer camp with Australian

CHiEF EXECUTiVE’S OVERViEW

www.nzso.co.nz 7

CHiEF EXECUTiVE’S OVERViEW

conductor and educator, Richard Gill. This included several concerts at the Hawke’s Bay Opera House in Hastings. And, in late June, the orchestra came together to begin rehearsals for their 50th anniversary season proper which was to be conducted by Paul Daniel (who earlier in the year had conducted the National Youth Orchestra of England) with John Chen as piano soloist.

The NYO has continued to host a Composer-in-Residence. in 2008 Tabea Squire had her Feverdream performed by the orchestra. Natalie Hunt is the 2009 Composer-in-Residence.

A number of NZSO CDs have received critical acclaim during the year. Music Web International greeted the release of Pietari inkinen’s second CD of Sibelius tone poems with the NZSO by calling it “one terrific disc!” The review continues, “Pietari inkinen is a Sibelian of the first order. The young conductor . . . has the New Zealand Symphony playing its collective hearts out for him.” and The Yorkshire Post wrote that “[The] New Zealand Symphony, already in the orchestral premier league, respond with superb playing in a magnificent disc”. James Judd’s recording of John Antill’s Coroboree was “editor’s Choice” in Gramophone in September 2008 and Pietari inkinen’s Sibelius: Nightride and Sunrise was BBC CD of the week during February 2009 – a distinction shared in June 2009 by the first of two Janacek CDs that the NZSO recorded with Peter Breiner. The latter CD was described by Gramophone as “a splendid disc”. our recording programme has continued with a number of sessions devoted to the first discs in a complete Sibelius Symphony cycle with our Music Director. in a rather different genre, we were pleased to record the accompaniments for an Elizabeth Marvelly CD.

This has also been a bumper year for NZSO involvement in recording film sound tracks. The orchestra is featured on Toa Fraser’s Dean Spanley, Sngmoo Lee’s The Warrior’s Way (due for release in the USA in September 2009), Under the Mountain (Jonathan King’s film of the Maurice Gee novel), and Peter Jackson’s The Lovely Bones. The Orchestra will be heard and seen in Separation City whose plot involves a relationship between a cellist and conductor (due for release in New Zealand in August 2009). Our involvement in such projects and our ability to contribute significantly to the burgeoning New Zealand film industry would be greatly facilitated by the construction of a scoring stage in the Wellington region. A dedicated recording studio of this kind would also enable the NZSO and other ensembles to record for broadcast and CDs and serve as an acoustically suitable rehearsal venue. it is a development that has the potential to increase productivity for both the music and film industries and we applaud Grow Wellington’s championing of the cause.

The year has not been without its financial challenges – and it is clear that there are more to come. it was deeply disappointing that The Lion Foundation, who had provided substantial funding for our Heartland and Mainland tours since 2003, had to make the difficult decision that the pair of tours scheduled for late 2008 would have to be the last for the time being. We continue to explore ways of continuing these split orchestra tours that have given so much pleasure to audiences away from the main centres and that have provided such an excellent platform for educational work in the regions.

As an audience development initiative, we presented three free concerts in the greater Wellington region early in 2009. it was encouraging that these produced full houses and audience profile that included many more young people than we often see. We hope that gestures like this help expand the audience for live symphonic music – not just for the NZSO but for other professional New Zealand ensembles.

Two key positions in the senior management team came vacant in the course of the year. Barbara George, Marketing Manager since 2004, left at the end of 2008 to take up the position of Chief Executive at Choirs Aotearoa New Zealand. Her position has been covered by Luke Nestorowicz as Consultant Director of Marketing until a new Marketing Manager is appointed. Luke is a former Marketing Manager and Strategy Manager at the Sydney Symphony. Rachel Hyde, our Artistic Planning Manager who had also been with us since 2004, left the NZSO and took up the position of Project Manager with Grow Wellington (working on the scoring stage development). in other staff movements, Education Manager, Roger Smith, returned to his roots to become Manager, Radio New Zealand Concert early in the year. He has now been replaced by Claire Lewis (formerly of the Education Department of the Royal Philharmonic Orchestra). Payroll officer, Graham Fort, progressed to a larger position at Victoria University in September and has been replaced by Audrey Kohing, while Geoffrey Busch, from our Client Services team, left to live in Australia and has been replaced by Steve Prosser.

Three vacancies arose in the Orchestra itself. Euan Harvey vacated the fifth (utility) position in the horn section for a position in the Sydney Symphony. Satomi Suzuki (first violins) left to join her husband, who had been appointed to a position at the University of Auckland, and Ann White (second violins) resigned for personal reasons.

i would like to congratulate our players on an outstanding year. They were wonderful ambassadors for New Zealand in Beijing and have given deeply satisfying polished performances at home. i wish to thank my hard-working and dedicated colleagues in management. They have applied themselves with energy and imagination not just to inspirational projects like the China tour but to dealing with the challenges of the recession.

All of us in the senior management team have enjoyed a constructive relationship with the NZSO Board. We are very appreciative of the work that they do. i would like to pay tribute here to our Chair, Diana Fenwick, who completes her term at the end of July. Diana has given the NZSO Board nine years of dedicated service, the last three of them as Chair. She loves the Orchestra and has not spared herself in her efforts to safeguard and promote its interest. i am personally grateful for her understanding and support.

Peter Walls

8

IntroductionThe NZSO’s primary activity is to present live concerts throughout the country. Various subsidiary activities are compatible with this primary business and together they enhance New Zealand’s cultural life and provide artistic development and satisfaction for the members of the orchestra.

The NZSO is a Crown Entity and operates under the New Zealand Symphony Orchestra Act 2004, which defines the orchestra’s functions and objectives.

Governing Board The Board is appointed by the Responsible Minister and is comprised of seven non-executive members. The appointments are made having regard to the need for members to have among them, an appropriate balance of governance and financial skills and an awareness of artistic matters, as relevant to the role of the Board.

The Board meets regularly in accordance with a schedule prepared in advance at the start of each calendar year.

RemunerationThe remuneration of the various Board members is detailed in Note 14 of the financial statements.

Management delegations & GovernanceWithin the guidelines of the New Zealand Symphony Orchestra Act 2004, the governing Board has been authorised by the Responsible Minister to manage the business of the NZSO and has delegated the day to day operational authority to the Chief executive officer (Ceo), to do this in the best artistic and commercial interests of the organisation. The CEO’s terms and conditions of employment are determined by the Board in consultation with the State Services Commission.

ManagementThe Senior Management Team meets on a regular basis to discuss various operational and policy issues and is a platform where key functional decisions are made.

The following managers report to the CEO (Peter Walls):

• Chief Financial officer (CFo) (James Henry)Strategic planning; liaison with the Ministry for Culture and Heritage; all finance issues including budgets & forecasts; information technology.

• Human resources Manager (Sarah Glasgow)All personnel related issues; performance management; employment contract negotiation; training & recruitment and payroll.

• artistic Manager (Melissa King)Artists contract negotiations; liaison with international artists and international artist management agencies; management of all other artistic activities.

• operations Manager (Heikki Mohell)Day-to-day management of the orchestra; venue issues; artist liaison; stage management.

GOVERNANCE STATEMENT

• Marketing Manager (Vacant)All Marketing and ticket sales matters; media relationships; customer service.

•Development Manager (Lisa ramsell)All fundraising matters.

Approval ProcessThe CEO’s expenses are approved by the CFO and later countersigned by the Chair of the Board; The CFO’s expenses are approved by the CEO and all other senior managers’ expenses are reviewed and approved by the CEO or CFO

All operational spending is monitored through a budget system which is approved by the Board before the commencement of the financial year. Performance against these budgets is reviewed on a monthly basis by the CFO and CEO and reported to the Board.

Holders of delegated authorities (managers) are responsible to alert the CEO or CFO where it is likely that budget allocations will not be adequate and gain approval for additional funds before commitment is made to incur costs. Where changing, or unforeseen circumstances require unbudgeted expenditure, approval must be gained from the CEO or CFO. if the request for additional funds is seen to be justified and can be accommodated within the total budget result (or variance from the total budget result is less than $50,000) the additional funds may be approved at the discretion of the CEO or CFO. if such approval would cause the total budget result to deteriorate by an amount greater than $50,000, the Board will be consulted.

NZSO management work closely with senior staff at the Ministry for Culture and Heritage to ensure that, on the one hand, the Minister for arts, Culture & Heritage is kept well informed and that, on the other hand, the orchestra is responsive to government policy as it affects the Orchestra’s operations.

RemunerationThe Board remuneration is agreed with the Responsible Minister in accordance with government guidelines and the CEO’s remuneration is set by the Board after consultation with the State Services Commission. The Senior Management Team’s remuneration is set by the CEO in consultation with the Chair of the Board.

Audit CommitteeThe Audit Committee comprises three non-executive board members, one of whom is appointed as Chair by the Board. The committee reports to the Board and has direct and unrestricted access to the external auditors and to all senior management of the NZSO.

The objective of the committee is to assist in discharging the Board’s responsibilities relative to financial reporting and regulatory compliances. it must also monitor and help in the establishment of sound risk management and internal control systems. The committee meets at least twice a year and any member of the committee, the CEO, the CFO or the external auditors may request a meeting at any time if they consider it necessary.

www.nzso.co.nz 9

GOVERNANCE STATEMENT

The NZSO adheres to the principles of being a good employer. Specifically, we strive to provide employees with a safe working environment and we have systems in place to ensure that hazards are identified and their impact minimized. The NZSo has retained its tertiary level requirements for ACC Workplace Management Practices. The NZSO is committed to providing equality in its employment policies. All permanent positions are advertised externally to attract a wide range of candidates. The best candidates are appointed to positions after following a strict selection process. The NZSO ensures that gender balance is achieved on all appointment panels. For the selection of players, all applicants are invited to audition, and to ensure impartiality the first and second rounds of auditions are held behind screens. The majority of players and a number of management staff of the NZSO are employed under collective employment agreements. The NZSO enters negotiations with the Service and Food Workers

PERSONNEL AND EQUAL EMPLOYMENT OPPORTUNiTY POLiCY

Union (SFWU) adhering to the principles of good faith bargaining. The NZSO provides fair and reasonable terms and conditions of employment. Many entitlements exceed the statutory minimums as set out in New Zealand legislation. Management positions are formally evaluated so that salaries remain competitive with the New Zealand general market. Every year salaries are reviewed and training and development opportunities are accessible to all employees. Study awards are awarded to a number of employees. The NZSO has recently introduced a Professional Development System for players which involves an annual discussion with each player to ascertain any specific development needs and provides a forum for discussing playing standards. The NZSO has a commitment to consultation to allow employees to have an opportunity to participate in decision making. Consultative committees are set up to ensure regular consultation with employees.

Finance

Music DirectorPietari Inkinen

Board*

Orchestra

Chief ExecutivePeter Walls

Human Resources Artistic Operations MarketingSponsorship and

Business Development

Diana Fenwick QSO - ChairMark J BarrowPeter Diessl**

William Falconer**Colleen Marshall

Peter RoweRoger Taylor **

* as at 30 June 2009** roger Taylor (Chair), Peter Diessl & William Falconer are the members of the NZSo’s audit Committee

NZSO ORGANiSATiON

10

FINANCIAL STATEMENTS

STATEMENT OF RESPONSiBiLiTYThe Board and management of New Zealand Symphony Orchestra are responsible for the preparation of the attached Financial Statements and Statement of Service Performance and the judgments used therein.

The Board and management are responsible for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the financial reporting contained in the financial statements.

in the opinion of the Board and management, the attached financial statements fairly reflect the NZSo’s financial position as at 30 June 2009 and the results of its operation, cash flows and service performance for the year ended on that date.

Roger Taylor Board Member, Chair of Audit Committee 31 August 2009

Peter DiesslBoard Member31 August 2009

MATTERS RELATiNG TO THE ELECTRONiC PRESENTATiON OF THE AUDiTED FiNANCiAL STATEMENTS AND STATEMENT OF SERViCE PERFORMANCE

This audit report relates to the financial statements and statement of service performance of the New Zealand Symphony Orchestra for the year ended 30 June 2009 included on the New Zealand Symphony Orchestra’s website. The New Zealand Symphony Orchestra’s board is responsible for the maintenance and integrity of the New Zealand Symphony Orchestra’s website. We have not been engaged to report on the integrity of the New Zealand Symphony Orchestra’s website. We accept no responsibility for any changes that may have occurred to the financial statements and statement of service performance since they were initially presented on the website.

The audit report refers only to the financial statements and statement of service performance named above. it does not provide an opinion on any other information which may have been hyperlinked to or from the financial statements and statement of service performance. if readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and statement of service performance and related audit report dated 31 august 2009 to confirm the information included in the audited financial statements and statement of service performance presented on this website.

Legislation in New Zealand governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

11

The Auditor-General is the auditor of the New Zealand Symphony Orchestra. The Auditor General has appointed me, Clare Helm, using the staff and resources of Audit New Zealand, to carry out the audit. The audit covers the financial statements and statement of service performance included in the annual report of the New Zealand Symphony Orchestra for the year ended 30 June 2009.

Unqualified opinion

in our opinion:

•The financial statements of the New Zealand Symphony orchestra on pages 12-28:

- comply with generally accepted accounting practice in New Zealand; and

- fairly reflect:

•the New Zealand Symphony orchestra’s financial position as at 30 June 2009; and •the results of its operations and cash flows for the year ended on that date.

•The statement of service performance of the New Zealand Symphony Orchestra on pages 29-34:

- complies with generally accepted accounting practice in New Zealand; and - fairly reflects for each class of outputs:

•its standards of delivery performance achieved, as compared with the forecast standards outlined in the statement of forecast service performance adopted at the start of the financial year; and •its actual revenue earned and output expenses incurred, as compared with the forecast revenues and output expenses outlined in the statement of forecast service performance adopted at the start of the financial year.

The audit was completed on 31 August 2009, and is the date at which our opinion is expressed.

The basis of our opinion is explained below. in addition, we outline the responsibilities of the Board and the Auditor, and explain our independence.

Basis of OpinionWe carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards.

We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance did not have material misstatements, whether caused by fraud or error.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. if we had

found material misstatements that were not corrected, we would have referred to them in our opinion.

The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:•determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data;•verifying samples of transactions and account balances;•performing analyses to identify anomalies in the reported data;•reviewing significant estimates and judgements made by the Board;•confirming year-end balances;•determining whether accounting policies are appropriate and consistently applied; and•determining whether all financial statement and statement of service performance disclosures are adequate.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance.

We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.

Responsibilities of the Board and the AuditorThe Board is responsible for preparing the financial statements and statement of service performance in accordance with generally accepted accounting practice in New Zealand. The financial statements must fairly reflect the financial position of the New Zealand Symphony orchestra as at 30 June 2009 and the results of its operations and cash flows for the year ended on that date. The statement of service performance must fairly reflect, for each class of outputs, the New Zealand Symphony Orchestra’s standards of delivery performance achieved and revenue earned and expenses incurred, as compared with the forecast standards, revenue and expenses adopted at the start of the financial year. The Board’s responsibilities arise from the Crown Entities Act 2004 and the New Zealand Symphony Orchestra Act 2004.

We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.

IndependenceWhen carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the institute of Chartered Accountants of New Zealand.

Other than the audit, we have no relationship with or interests in the New Zealand Symphony Orchestra.

Clare HelmAudit New ZealandOn behalf of the Auditor-GeneralWellington, New Zealand

AUDiT REPORTTO THE READERS OF THE NEW ZEALAND SYMPHONY ORCHESTRA’S FiNANCiAL STATEMENTS AND STATEMENT OF SERViCE PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2009

12

INCOME

Concert incomeinterest incomeOther income

INCOME EARNED BY THE NZSO

Government Funding

TOTAL INCOME

Less: EXPENDITURE

NET SURPLUS/(DEFICIT)

Actual2009$000

1,839

189 2,889

4,917

13,446

18,363

18,566

(203)

Budget2009$000

2,365

270 2,908

5,543

13,446

18,989

18,854

135

Actual2008$000

2,126

301 2,123

4,550

12,346

16,896

17,200

(304)

Notes

1

2

3

iNCOME STATEMENT For the year ended 30 June 2009

Net Surplus/(Deficit)

Total Recognised Revenues and Expenses for the Year

Opening balance of Equity

Equity as at 30 June 2009

Actual2009$000

(203) (203) 1,823

1,620

Budget2009$000

135

135

1,743

1,878

Actual2008$000

(304)

(304)

2,127

1,823

STATEMENT OF CHANGES iN EQUiTY For the year ended 30 June 2009

The accompanying notes and policies on pages 17-28 form an integral part of these financial statements.

13

Total Equity

CURRENT ASSETSCash & cash equivalentsTrade ReceivablesOther ReceivablesPrepaymentsinvestmentsDerivative Financial instruments

TOTAL CURRENT ASSETS

NON-CURRENT ASSETSProperty, Plant & equipmentintangible Assets

TOTAL NON-CURRENT ASSETS

TOTAL ASSETS

CURRENT LIABILITIESTrade Creditors and AccrualsEmployee EntitlementsDerivative Financial instruments

TOTAL CURRENT LIABILITIES

NON-CURRENT LIABILITIESEmployee Entitlements

TOTAL NON-CURRENT LIABILITIES

TOTAL LIABILITIES

NET ASSETS

Notes

455

109

66

789

8

Actual2009$000

1,620

2,987 124 141 187 - -

3,439

1,486 34

1,520

4,959

2,178 894 113

3,185

154 154

3,339

1,620

Budget2009$000

1,878

2,938 300 80 200 - -

3,518

1,654 80

1,734 5,252

2,424 790 -

3,214

160

160 3,374 1,878

Actual2008$000

1,823

2,835 90 85 206 500 22

3,738

1,479 44

1,523

5,261

2,461 778

3 3,242

196

196 3,438 1,823

BALANCE SHEET

As at 30 June 2009

The accompanying notes and policies on pages 17-28 form an integral part of these financial statements.

14

Actual2009$000

3,800 225 13,446

(9,840) (7,813) 9

(173)

4 (169) (10) 500

325

152

2,835

2,987

2,487

500 2,987

Budget2009$000

4,998

270 13,446

(10,227) (8,069)

-

418

-

(271) (79) -

(350)

68

2,870

2,938

1,438

1,500 2,938

Actual2008$000

3,777

273 12,346 (9,404)

(6,674) (14)

304

36 (154) (31) (500)

(649)

(345)

3,180

2,835

1,835

1,000 2,835

STATEMENT OF CASHFLOWS

For the year ended 30 June 2009

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from Customersinterest ReceivedGovernment FundingPayments to and on behalf of employeesPayments to SuppliersNet Goods and Services Tax

NET CASH FLOWS FROM OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIESSales of Property, Plant & equipmentPurchases of Property, Plant & equipmentPurchases of intangible AssetsTerm Deposits > 3 months

NET CASH FLOWS FROM INVESTING ACTIVITIES

NET INCREASE / (DECREASE) IN CASH HELD

ADD: CASH AT BEGINNING OF THE YEAR

CASH AT END OF THE YEAR

Represented by:Cash & Cash equivalents Bank Term Deposits <= 3 months

The accompanying notes and policies on pages 17-28 form an integral part of these financial statements.

The “Net GST” component of Cashflow from operating activities reflects the net amount of GST paid and received with the inland Revenue Department. This component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.

15

Actual2009$000

(203)

178 132

18

125

(108)

19 60

74 (332) (19) 8

(298)

(173)

Budget2009$000

135

208 -

-

343

(50)

(25) - 100 50 - -

75

418

Actual2008$000

(304)

178

-

- (126)

216

10 94 91 24 9 (14)

430

304

RECONCiLiATiON OF NET CASH FLOWS FROM OPERATiNG ACTiViTiES WiTH NET SURPLUS / (DEFiCiT) For the year ended 30 June 2009

NET SURPLUS/(DEFICIT)

Add / (Deduct) Non-Cash items:Depreciation & amortisationNet (gains) / losses on derivative financial instruments Changes in Doubtful Debts Provision

Add / (Deduct) Movements in OtherWorking Capital items:Decrease/(increase) in ReceivablesDecrease/(increase) in Prepaymentsincrease/(Decrease) in Creditors & accrualsincrease/(Decrease) in Leave Provisionsincrease/(Decrease) in Revenue in Advanceincrease/(Decrease) in PAYEincrease/(Decrease) in Net GST

NET CASH FLOWS FROM OPERATING ACTIVITIES

The accompanying notes and policies on pages 17-28 form an integral part of these financial statements.

16

The value of non cancellable rental lease commitments to Wellington City Council for the lease of specified areas of the Municipal offices Building and the Michael Fowler Centre are as follows: Less than One YearBetween One and Two YearsBetween Two and Five YearsGreater than Five YearsTotal non-cancellable operating lease

The value of non cancellable rental lease commitments to Robt Jones Holdings Limited for the lease of NZSo’s auckland office space in the Southern Cross Building, High Street, Auckland are as follows: Less than One YearBetween One and Two YearsBetween Two and Five YearsGreater than Five YearsTotal non-cancellable operating lease

At balance date the NZSO had entered into contracts covering fees with various artists and contractors as follows: Less than One YearBetween One and Two YearsBetween Two and Five YearsGreater than Five YearsTotal artists contracts

The NZSO is also committed to an operating lease of musical instruments, payable to the New Zealand Symphony Orchestra Foundation Trust as follows:

Less than One YearBetween One and Two YearsBetween Two and Five YearsGreater than Five YearsTotal musical instruments lease commitments*

STATEMENT OF COMMiTMENTS

As at 30 June 2009

2009$000

307 313 914

- 1,534

2008$000

304 310

951 291

1,856

2009$000

13 13

13 -

39

2008$000

13 13

26 -

52

2009$000

1,387 375

188 -

1,950

2008$000

1,3211,340

326 -

2,987

2009$000

12 12

26 15 65

2008$000

11 11

32 15 69

*The Lease period is 15 years from the original lease start date, on an individual instrument basis.

The accompanying notes and policies on pages 17-28 form an integral part of these financial statements.

17

NOTESSTATEMENT OF ACCOUNTING POLICIES

Reporting Entity and Statutory BaseThe New Zealand Symphony Orchestra (NZSO) was established on the 6 April 2004 by the New Zealand Symphony Orchestra Act 2004. The NZSO is an autonomous Crown entity for the purposes of Section 7 of the Crown Entities Act 2004. The terms of that Act apply to the NZSO except to the extent that the New Zealand Symphony Orchestra Act 2004 expressly provides otherwise. The NZSO is wholly owned by the Crown and is responsible to the Minister for Arts, Culture and Heritage, Hon Christopher Finlayson.

NZSo’s primary mission is “to enrich the lives of New Zealanders through artistically excellent performances, presented nationally and abroad” and as such the NZSo is a Public Benefit entity for reporting purposes under New Zealand international Financial Reporting Standards (NZ iFRS).

The financial statements for the NZSo are for the year ended 30 June 2009, and were approved by the Board on 31 August 2009.

The financial statements of the NZSo have been prepared in accordance with the Crown Entities Act 2004 and in accordance with NZ iFrS for a public benefit entity.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

Measurement BaseThe general accounting policies recognised as appropriate for the measurement and reporting of the operating results, cash flows and the financial position under the historical cost method have been followed in the preparation of these financial statements, except in the case of derivative financial instruments which are measured at fair value.

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the NZSO is New Zealand Dollars.

Standards amendments, and interpretations issued that are not yet effective and have not been early adoptedStandards, amendments and interpretations issued but not yet effective that have not been early adopted, and which are relevant to the NZSO include: NZ iAS 1 Presentation of Financial Statements (revised 2007) replaces NZ iAS 1 Presentation of Financial Statements (issued 2004) and is effective for reporting periods beginning on or after 1 January 2009. The revised standard requires information in financial statements to be aggregated on the basis of shared characteristics and introduces a statement of comprehensive income. The statement of comprehensive income will enable readers to analyse changes in equity resulting from non-owner changes separately from transactions with owners. The revised standard gives the NZSO the option of presenting items of income and expense and components of other comprehensive income either in a single statement of comprehensive income with subtotals, or in two separate statements (a separate income statement followed by a statement of comprehensive income). The NZSO intends to adopt this standard for the year ending 30 June 2010, and will prepare a single statement of comprehensive income.

Critical accounting estimates and assumptionsin preparing these financial statements the NZSo has made estimates and assumptions concerning the future.

These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are:

Property, plant and equipment useful lives and residual valueAt each balance date the NZSO reviews the useful lives and residual values of its property, plant and equipment. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires the NZSO to consider a number of factors such as the physical condition of the asset, expected period of use of the asset by the Orchestra, and expected disposal proceeds from the future sale of the asset.

An incorrect estimate of the useful life or residual value will impact the depreciation expense recognised in the income statement, and carrying amount of the asset in the balance sheet.

The NZSO minimises the risk of this estimation uncertainty by: - physical inspection of assets; - review of second hand market prices for similar assets where available and appropriate; and - analysis of prior asset sales.

The NZSo has not made significant changes to past assumptions concerning useful lives and residual values.

The carrying amounts of property, plant and equipment are disclosed in note 6.

Long service leaveNote 8 provides an analysis of the exposure in relation to estimates and uncertainties surrounding long service leave liabilities.

SIGNIFICANT ACCOUNTING POLICIESThe following accounting policies which significantly affect the measurement of the operating result and financial positions have been applied.

a) Property, Plant and EquipmentThe costs of property, plant and equipment are the value of consideration given to acquire assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service. Property, plant and equipment are measured at costs less accumulated depreciation and impairment losses. b) DepreciationDepreciation is provided on a straight line (SL) basis on all items of property, plant and equipment at rates calculated to allocate the assets’ cost, less estimated residual value, over their estimated useful lives. Leasehold alterations are depreciated over the remaining period of the lease agreement.

Major depreciation rates are:Leasehold Alterations 15 years Computer Equipment 3 years Studio Equipment 10 yearsFurniture and Fittings 15 yearsMusical instruments – percussion 10 yearsMusical instruments – all others 25 years Library – Music Manuscripts Not depreciated

c) Intangibles assets & AmortisationSoftware acquisition and developmentAcquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs that are directly associated with the development of software for internal use by the NZSO, are recognised as an intangible asset. Direct costs include the software development and directly attributable employee costs. Staff training costs are recognised as an expense when incurred.

AmortisationThe carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation

TO AND FORMiNG PART OF THE FiNANCiAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009

6.67%33.33%10.00%6.67%10.00%4.00%

SLSLSLSLSLSL

18

begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the income Statement. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows:

Acquired Computer Software 3 years 33.33% Developed Computer Software 3 years 33.33%

d) Impairment of non-financial assetsProperty, Plant and Equipment and intangible Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value will exceed the recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the depreciated replacement costs for the assets.impairment losses are recognised in the income Statement.

e) Debtors and other receivablesDebtors and receivables are initially measured at fair value and subsequently measured at amortised cost. All receivables are for less than 12 months and the effect of discounting is immaterial. Allowances for estimated irrecoverable amounts are recognised after reviewing every item of receivables.

f) Creditors and other payablesCreditors and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method. NZSO normally pays its creditors on the 20th of the month following invoice date and all payables are non interest bearing. Consequently, the effect of discounting is immaterial.

g) Currency ConversionsAll foreign currency transactions (including those for which forward exchange contracts are held) are translated into New Zealand dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at balance date exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income Statement.

h) Income TaxThe NZSO is a public authority for the purposes of the inland Revenue Acts. A public authority is exempt from income tax under the income Tax Act 2004.

i) Accounting for Non Cash TransactionsThe NZSO recognises non-cash transactions in which there is an exchange of goods and services or acquisition of assets. Consideration is valued at the lower of assessed cost or market value. There is usually a nil effect on the net surplus/ (deficit) as transactions of equal value are recorded in both income and expenditure categories.

Where items of property, plant and equipments are provided in non-cash transactions and ownership passes to the NZSO the full value of the assets is recognised as income and the asset written off by depreciation in accordance with the NZSO’s depreciation policy.

j) Financial InstrumentsThe NZSo is party to financial instrument arrangements including cash and bank, short term investments, trade receivables and creditors and accruals which have been recognised in the Balance Sheet. The NZSO does not hold or issue financial instruments for trading purposes. income, expenditure and movements in fair value in relation to all financial instruments are recognised in the income Statement.

Derivative Financial InstrumentsThe NZSo uses derivative financial instruments to reduce its exposure to foreign exchange risk arising from its normal operating activities. These instruments are measured at fair value and movements recognised in the income Statement. NZSO has not adopted hedge accounting.

k) Budget FiguresThe budget figures are those approved by the NZSo Board at the beginning of the financial year.

The budget figures have been prepared in accordance with generally accepted accounting practice and are consistent with the accounting policies adopted by the NZSO Board for the preparation of these financial statements.

l) IncomeThe NZSO derives income through the provision of outputs to the Crown, for services to third parties and income from its investments. Such income is recognised when earned and is reported in the financial year to which it relates. accordingly, income related to future concerts is deferred until the period in which those concerts take place.

Revenue from the crown is received monthly and is recognised in the month it is received.

m) Investmentsinvestments are initially valued at fair value. After initial recognition investments are measured at amortised cost using the effective interest method.

n) Operating LeasesOperating lease payments, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are charged as expenses in the years in which they are incurred.

o) Statement of Cash FlowsCash means cash balances on hand, held in bank accounts, demand deposits and other highly liquid investments in which NZSO invests as part of its day-to-day cash management. Term deposits with maturity of 3 months or less are classified as cash and cash equivalents and those greater than 3 months are classified as investments. Operating activities include cash received from all income sources of the NZSO and records the cash payments made for the supply of goods and services. investing activities are those activities relating to the acquisition and disposal of non-current assets and investments. Financing activities comprise the change in equity and debt capital structure of NZSO.

p) Goods and Services Tax (“GST”)These financial statements are prepared on a GST exclusive basis with the exception of trade receivables and trade creditors which are stated inclusive of GST. The net amount receivable or payable in respect of GST is included as part of other receivables or creditors and accruals.

The Net GST paid to, or received from the iRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the Statement of Cash Flows.

q) Employee entitlementsProvision is made in respect of NZSO’s liability for Annual Leave, Long Service Leave, Deferred Leave, Retiring Leave and Sick Leave. Annual Leave, Retiring Leave and Deferred Leave has been calculated on an actual entitlement basis at current rates of pay. Long Service Leave has been calculated on an actuarial basis. The liability for sick leave has been calculated as the extent to which actual leave taken in the coming year is expected to be greater than the sick leave entitlements earned in the year, based on historic analysis. NZSO’s contribution to superannuation schemes are accounted for as defined contribution schemes and are recognised as expenses in the income Statement as incurred.

r) ProvisionsProvision for future expenses of an uncertain amount and timing are recognised when there exists a present obligation as a result of a past event and it is probable that expenditure would be required to settle that obligation. Where the effect of discounting is material the amount of expenditure will be the present value of the future expenditure.

s) Changes in Accounting PoliciesThere have been no changes in accounting policies.

19

Actual2009 $000

2,181 32

242 11 52

371

2,889

Actual2008 $000

1,898 32

96 10 -

87

2,123

1. OTHER iNCOME

Sponsorship incomeRadio Broadcast FeeRecording income and RecoveriesMerchandising ReceiptsGains on Derivative Financial instrumentsSundry income

Total Other income

$564,000 of Sponsorship income is contra sponsorship (2008: $784,000).

2. GOVERNMENT FUNDiNG

Actual2009 $000

13,446

15,127

Actual2008 $000

12,346

13,889

Government Funding (GST exclusive)

Government Funding (GST inclusive)

Government Funding for the NZSO’s ongoing expenditure is provided through Vote: Arts, Culture and Heritage. The funding is remitted to the NZSO under the terms and conditions of a Memorandum of Understanding negotiated each year with the Minister for Arts, Culture and Heritage.

20

Actual2009 $000

6,138 9,940 379 47

- 17

178 -

106 232

1,529

18,566

Actual2008 $000

4,983 9,758 313 45 10

- 178

1 106

- 1,806

17,200

Direct Expenses from Orchestral activityPersonnel CostsOccupancy Costsaudit Fees for financial statements auditAudit Fees for NZ iFRS transitionChanges in provision for doubtful debtsDepreciation & amortisationLoss on Disposal of AssetsBoard Members feesLosses on Derivative Financial instrumentsGeneral Operating Costs

Total Expenditure

3. EXPENDiTURE

Actual2009 $000

9,247 49 299 216 129

9,940

Actual2008 $000

8,945 41

347 207 218

9,758

Personnel CostsSalaries & WagesACC LevyContribution to Superannuation SchemesAllowancesrecruitment & Training

Payments relating to the cessation of employment totaling $39,412 for three employees are included in “Salaries & Wages”.

21

Actual2009 $000

2,487500

2,987

Cash at Bank and at CallFixed Term deposits <= 3 months

Total Cash & Cash Equivalent

4. CASH AND CASH EQUiVALENT Cash is held at bank, at call or in fixed term interest bearing deposits:

Actual2009 $000

2433-

19

265

TraDe & oTHer reCeiVaBLeSCurrentPast Due 1 – 30 DaysPast Due 31 – 90 DaysPast Due > 90 Days

Total

As at 30 June 2009 all overdue receivables have been assessed for impairment and irrecoverable amounts.

5. TraDe reCeiVaBLeS & oTHer reCeiVaBLeS

Each and every overdue item is reviewed and debtors contacted when necessary and as at 30 June 2009 it was probable that $17,553 will not be recoverable. A provision for doubtful debts was created for that amount.

Actual2008 $000

1,8351,000

2,835

Actual2008 $000

158863

175

22

6. ProPerTY, PLaNT & eQUiPMeNT

Leasehold Alterations$000

768 - -

768

458 51

- 509

310 259

Computer Equipment$000

322 20

- 342

291 22

- 313

31 29

CostBalance at 1 July 2008AdditionsDisposalsBalance at 30 June 2009

Accumulated DepreciationBalance at 1 July 2008Depreciation expensesDepreciation-DisposalsBalance at 30 June 2009

Net Book ValueAt 30 June 2008At 30 June 2009

Studio Equipment$000

283 73 (4)

352

144 23 (3)

164

139 188

CostBalance at 1 July 2008AdditionsDisposalsBalance at 30 June 2009

Accumulated DepreciationBalance at 1 July 2008Depreciation expensesDepreciation-DisposalsBalance at 30 June 2009

Net Book ValueAt 30 June 2008At 30 June 2009

iNTANGiBLE ASSETS

Computer Software$000

172 - - 172

128 20 - 148

44 24

Capital Work in Progress$000

- 10 - 10

- - - -

- 10

Total$000

172 10 -

182

128 20

- 148

44 34

There has been no indication of impairment to any Property, Plant & equipment or intangible assets.

23

Total$000

2,837 169 (15)

2,991

1,358 158 (11)

1,505

1,479 1,486

6. ProPerTY, PLaNT & eQUiPMeNT

Furniture and Fittings$000

360 1

(5) 356

233 21 (5)

249

127 107

Musical Instruments$000

563 63 (6)

620

232 41 (3)

270

331 350

Music Library$000

538 15

- 553

- - - -

538 553

Capital Work-in-Progress$000

3 (3)

- -

- - - -

3 -

There has been no indication of impairment to any Property, Plant & equipment or intangible assets.

24

Actual2009 $000

703103102811459

2,178

Actual2008 $000

1,03595

121633577

2,461

Revenue in AdvanceGST PayablePAYE PayableOther Creditors and payablesTrade Creditors

Total Trade Creditors and Accruals

7. TRADE CREDiTORS AND ACCRUALS

All trade creditors are paid within 30 days as the payment terms used by NZSO are 20th of the month following invoice date.

Actual2009 $000

69327832170

894

154

1,048

Actual2008 $000

57128792080

778

196

974

Provision for Employee Entitlements are as follows:Current: Annual Leave Sick Leave Long Service Leave Deferred Leave Retiring Leave

Term: Long Service Leave

Net Liability for Employee Entitlements

8. EMPLOYEE ENTiTLEMENTS

The present value of the term long service leave obligations depend on a number of factors that are determined on an actuarial basis using a number of assumptions. Two key assumptions used in calculating this liability include the discount rate and the salary inflation factor. any changes in these assumptions will impact on the carrying amount of the liability. The NZSO has used an actuarial model issued for this purpose by The Treasury on 25 June 2009.

a discount rate of 6.0% and an inflation factor of 2.75% were used.

if the discount rate were to differ by 1% from the estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $10,000 higher/lower.

if the salary inflation factor were to differ by 1% from the estimates, with all other factors held constant, the carrying amount of the liability would be an estimated $10,000 higher/lower.

25

7. TRADE CREDiTORS AND ACCRUALS

8. EMPLOYEE ENTiTLEMENTS

9. FiNANCiAL iNSTRUMENTS

NZSo is party to financial instruments as part of its everyday operations. These include instruments such as cash and bank balances, investments, trade receivables and trade creditors.

MARKET RISK

Interest Rate Risk interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in the market interest rates. This could particularly impact on the return from investments. The Board do not consider there is any significant exposure to interest rate risk on its investments.

Currency Risk Currency risk is the risk that the fair value of a financial instrument will fluctuate due to changes in foreign exchange rates.

The NZSO has exposure to foreign exchange risk as a result of transactions denominated in foreign currencies, arising from normal operating activities. it is the NZSO’s policy to reduce these risks if it is considered prudent, using foreign exchange contracts and foreign currency denominated bank accounts.

The NZSO held bank accounts denominated in foreign currency as at 30 June 2009 totalling $170,084 (2008: $115,249). Artist contracts with foreign exchange exposure as at 30 June 2009 totalled $1,203,569 (2008: $1,279,763). Of this amount, $717,619 is covered by foreign exchange contracts held by the NZSO as at 30 June 2009 (2008: $397,263).

These forward exchange contracts have been reported at fair value as at 30 June 2009 and the unrealised losses/gains are shown in the income Statement. The net losses relating to forward exchange contracts for the year ended 30 June 2009 are $180,569. This includes unrealised Losses of $112,929 calculated on forward foreign exchange contracts as at 30 June 2009.

Sensitivity analysisThe NZSO held bank accounts denominated in foreign currency as at 30 June 2009 totaling $170,084; consisting of US dol-lars, Euros, British Pounds and Australian dollars. if the NZ dollar had weakened/strengthened by 10% against these curren-cies with all other variables held constant, the gain on valuation of these accounts would have been:

•$15,462 (2008 $10,477) lower if the NZ dollar had weakened;•$18,898 (2008 $12,805) higher if the NZ dollar had strengthened.

This movement is attributable to the valuation of amounts held in foreign currency accounts as at 30 June 2009.

Credit RiskCredit risk is the risk that a third party will default on its obligations to the NZSO, causing the NZSO to incur a loss.Financial instruments that potentially subject the NZSO to risk consist of cash and bank, investments and trade receivables. The NZSo invests funds only with registered banks with satisfactory credit ratings. exposure to any one financial institution is restricted.

The table below analyses the derivative financial instruments that will be settled on a gross basis into relevant maturity groupings based on the remaining period at the Balance Sheet date to the contractual maturity. The amounts disclosed are the contractual undiscounted cash flows.

Less than 6 months

$000

199199

718619

Between 6 months

and 1 year$000

199213

--

2008Forward Foreign Exchange Contractsoutflowinflow

2009Forward Foreign Exchange Contractsoutflowinflow

Greater than 1 year

$000

--

--

26

Actual2009$000

2,987265

-3,252

--

2,1782,178

113113

Actual2008$000

2,835175500

3,510

2222

2,4612,461

33

The carrying amounts of the financial assets & liabilities

ReceivablesCash & cash equivalentTrade & other receivablesinvestments – Term Deposits

Financial Assets at fair value through Income StatementDerivative - Forward Exchange contract

Financial Liabilities at amortised costsTrade Creditor & accruals

Financial Liabilities at fair value through Income StatementDerivative - Forward Exchange contract

10. CaTeGorieS oF FiNaNCiaL aSSeTS & LiaBiLiTieS

Cash and cash equivalent includes a term deposit of $500,000 at an interest rate of 4.25% that will mature on 5th August 2009.

Trade creditors and other payables matured within a short period and are non-interest bearing.The table below analyses financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flows.

Less than 6 months

$000

2,461

2,178

Between 6 months

and 1 year$000

-

-

2008Creditors and Accruals (Note 7)

2009Creditors and Accruals (Note 7)

Greater than 1 year

$000

-

-

Liquidity riskLiquidity risk is the risk that the NZSo will encounter difficulty raising liquid funds to meet commitments as they fall due. The cash and bank balances are reviewed on a daily basis.

Fair values There were no significant differences between the fair value and carrying amounts of financial instruments shown in the financial statements as at 30 June 2009.

Credit facilities The NZSO did not have bank overdraft or other credit facilities as at 30 June 2009.

Letter of credit NZSO is party to a Letter of Credit from The National Bank of New Zealand for the sum of $300,000 to cover payroll direct credits.

11. CONTiNGENCiESThe NZSO has a contingent liability relating to personal matters (2008: nil). Due to the potential prejudicial effect on settlements, no further disclosure is being made.The NZSO has no contingent assets (2008: nil).

27

10. CaTeGorieS oF FiNaNCiaL aSSeTS & LiaBiLiTieS

12. RELATED PARTiESDuring the year the NZSO transacted with other Government departments and Crown entities. These transactions are carried out on an arms length basis and it is considered that these do not fall within the intended scope of related party disclosures.

i) The partner of NZSO’s previous Marketing manager (resigned on 6 Nov 2008) was engaged for television and design consultancy work during the year. Fees paid were at market rates and amounted to $15,200 (2008: $57,600).

ii) NZSO transacted during the year with the New Zealand Symphony Orchestra Foundation Trust, an entity in which NZSO Board members, Diana Fenwick and Peter Rowe are trustees. All transactions were carried out on an arms length basis. Total amount paid and payable to the NZSO Foundation $11,541 (2008: $18,181).Received and receivable from Foundation is $96,500 (2008: $34,125).

iii) NZSO has the use of a violin owned by Diessl investments Limited at no cost. NZSO Board member Peter Diessl is also a director of Diessl investments Limited.

13. KEY MANAGEMENT PERSONNEL

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the NZSo. This includes the Board, Chief executive, Chief Financial officer, Human Resources Manager, Artistic Manager, Operations Manager, Marketing Manager and the Development Manager.

2009$000

1,077-

3-

1,080

2008$000

1,176-

6-

1,182

Key Management personnel compensationShort Term employment benefitsPost employment benefitsother long term benefitsTermination benefits

2009$000

2413.513.513.5

112

-13.5

15106

2008$000

2413.5

1213.513.5

-1

13.515

106

Board Members remuneration received or due and receivable during the year is as follows:

D Fenwick (Chair)M J BarrowP DiesslW FalconerS McCormack *C MarshallJ Pope **P RoweR TaylorTotal

14. BOARD MEMBERS FEES

* S McCormack’s term as a Board member expired on 31 July 2008.** J Pope’s term as a Board member expired on 1 August 2007.

28

15. BOARD AND OFFiCERS LiABiLiTY iNSURANCEThe NZSo has arranged policies of “Directors’ and officers’ Liability insurance” which ensures that generally Board members and officers will incur no monetary loss to the limit of indemnity of $5,000,000 for any one claim or in all, as a result of actions undertaken by them as Board members or officers.

16. EMPLOYEE iNSURANCEMusical instruments owned by the players and used within the orchestra are subsidised by the NZSO at 34.58% of the premium under a Material Damage policy.

17. EMPLOYEE REMUNERATiONThe number of employees, whose annual remuneration and other benefits was above $100,000 for the year ended 30 June 2009 within $10,000 bands are as follows:

20092-

1-

111

200841-

1-

21

$100,000 - $109,999$110,000 - $119,999$120,000 - $129,999$140,000 - $149,999$150,000 - $159,999$160,000 - $169,999$220,000 - $229,999

The Chief Executive’s remuneration falls within the range $220,000 to $229,999.

18. DONATiONSNo donations were made during the year.

29

Actual2009 $000

13,446914522

(12,428)2,454

1,8391,267

139236

(6,138)(2,657)

(203)

Target2009 $000

13,4461,305

484(12,891)

2,344

2,3651,174

43172

(5,963)(2,209)

135

Government FundingGeneral SponsorshipOther incomeOverhead Expenses (incl. salaries)Operating Surplus before Orchestral Activity

Orchestral ActivityConcert incomeConcert SponsorshipRecording incomeOther Orchestral Activity incomeOrchestral Activity ExpensesTotal Deficit from orchestral activity

Net Surplus / (Deficit)

2009

4421

912

-3

122

103

2008

3821

310

6-

12-

90

Subscription ConcertsEducation ConcertsNZSO National Youth OrchestraReduced Sized Orchestra international Festival of the ArtsAuckland FestivalSpecial Concertsinternational Tour (China)

Total

CONCERT ACTiViTYQuantityThe NZSO presented 103 concerts during the year.

CategoriesConcerts were presented in the following categories:

STATEMENT OF OBJECTiVES AND SERViCE PERFORMANCEThe mission of the New Zealand Symphony Orchestra is:To enrich the lives of New Zealanders through artistically excellent performances, presented nationally and abroad by a full-time, full-strength professional symphony orchestra of international standing.

Performance Targets For the year ending 30 June 2009 the NZSO achieved the following results (compared with targets established in the Statement of intent).

30

LOCATiONConcerts were presented in the following 25 locations:

2009

2 1 20 1 6 5 2 7 2 1 1 1 1 9 - 1 3 - 1 1 - 1 1 1 1 31 1 2

103

2008

1 - 18 - 10 2 - 2 2 4 - - 1 3 1 1 4 1 - 1 2 1 - 1 1 34 - -

90

LocationAlexandraAshburtonAucklandBlenheimChristchurchDunedinGisborneHamiltonHastingsinvercargillKaikouraLower HuttMastertonNapierNelsonNew PlymouthPalmerston NorthTaupoTaurangaTe KuitiTimaruTwizelWaikanaeWanakaWanganuiWellingtonWhakataneBeijing-China

Total

31

Provide the public of New Zealand with live and recorded performances of symphonic music performed to an international standard

Perform live concerts to as many New Zealand communities as possible

Continue the association with Radio New Zealand to ensure that as many concerts as possible are broadcast

Produce high quality CD recordings, some of which are released and reviewed internationally

Pursue quality film scores

Continue to promote training bursaries and Professional Development opportunities for existing NZSO musicians

Ensure programmes cover the full range of symphonic repertoire

Cooperate with New Zealand universities offering advanced level performance tuition in order to encourage and promote the highest standards of orchestral training

Provide an orchestra that - is highly skilled, artistically imaginative; and

- has strong community support

A minimum of 20 communities to be visited each year

Deliver reduced size orchestra tours to small and medium sized centres in the North & South islands

Encourage live and delayed broadcasts. A minimum of 12 new NZSO concerts should be broadcast annually.

6 CD recordings to be produced annually

Quality film scores contracted

Obtain funding sources for bursaries. implement formal Professional Development system for NZSO Musicians

Annual programmes include works from the 18th to 21st centuries across all the main symphonic genres

Continuation of NZSO Foundation Masterclasses. At least 15 NZSO principals and senior players engaged as artist teachers at New Zealand universities.

The NZSO visited 25 communities this year (refer list of centres on page 30)

2 reduced sized orchestra tours were undertaken this year, 1 in the North island and 1 in the South island (refer list of centres appended to this report)

36 new NZSO concerts were broadcast (live or recorded), during the year by Radio New Zealand Concert.

3 new CD recordings were undertaken during the year

This year we have participated in three films scores. We have had a number of small sessions for The Lovely Bones and completed scores for The Warriors Way and Under the Mountain. We also participated in the feature film Separation City where the orchestra was filmed playing on stage as part of the story. excerpts from those film sessions appear on the soundtrack CD of the movie.

NZSO has funded Study Awards and professional developmentThe NZSO Foundation has funded scholarships for two musicians

Subscription programmes and ‘special’ concerts cover the full range of symphonic repertoire, from 18th Century western European works to 21st century New Zealand commissions. The core repertoire of the NZSO is built around 19th and 20th Century masterpieces but many subscription programmes now include at least one contemporary (either NZ or international) item often written for the soloist performing the work.

4 NZSO Foundation Masterclasses were conducted during the year and 26 NZSO players are artist teachers at New Zealand universities.

NEW ZEALAND SYMPHONY ORCHESTRA ACT 2004 - SECTION 8

SPECIFIC OBJECTIVES SERVICE TARGET SERVICE PERFORMANCE

The NZSO’s primary activity is to present live concerts throughout the country. Various subsidiary activities are compatible with this primary business and together they enhance New Zealand’s cultural life and provide artistic development and satisfaction for the members of the orchestra.

STATEMENT OF OBJECTiVES AND SERViCE PERFORMANCE (CONTiNUED)

32

Be a leading New Zealand performing arts organisation with a role in the development of a distinctively New Zealand cultural environment

Ensure that our programming keeps New Zealanders in touch with the great international symphonic tradition while also presenting the best of composition by New Zealanders

Develop an education programme that accommodates the cultural and socio-economic diversity and geographical spread of New Zealand society

Support young musicians through the NZSO National Youth Orchestra (NYO)

Work collaboratively with other performing arts companies in New Zealand

Ensure that a minimum of 9 NZ compositions are played

Ensure that education activity is performed in approximately 20 communities each year, reaching more than 125 different schools and greater than 25,000 pupilsThis includes a minimum of 10 education concerts and 8 community/youth workshops

Provide preconcert talks for selected programmes

Work with the Wellington and Auckland Friends of the NZSO to facilitate ‘Symphony Seminars’

Perform NYO concerts in at least three centres each year

Collaborate with other performing arts companies where it does not conflict with other NZSo objectives

Work with the regional orchestras to ensure cooperative planning in the interests of increasing the attendances at all orchestral concerts

NEW ZEALAND SYMPHONY ORCHESTRA ACT 2004 - SECTION 8

SPECIFIC OBJECTIVES SERVICE TARGET SERVICE PERFORMANCE

We performed 16 NZ compositions in the current year and 28 NZ artists played with the NZSO.

Education activity was undertaken in 33 communities this year, reaching 141 different schools and 21,835 participants. This includes 37 concerts and 39 workshops.

A total of 31 pre-concert talks were given during the year in Auckland, Hamilton, Palmerston North, Napier, Wellington, Christchurch and Dunedin

The NZSO worked with the Wellington Friends to present 8 ‘Symphony Seminars’.

NZSO NYO concerts were performed in Auckland, Wellington, Napier and Christchurch

This year the NZSO worked with Te Papa on three separate occasions presenting both small group and full orchestral performances. Most notable was our participation in the Musical impressions concert, in conjunction with the Te Papa Monet exhibition. We worked with the NZiFA to present the Lexus Song Quest final in april.

The NZSO makes its concert dates and repertoire available to the regional orchestras as soon as possible in an effort to avoid clashes. Regular meetings are held in particular with the APO and Vector Wellington Orchestra to discuss forward planning and repertoire choices. Negotiations are entered into where there are conflicts of date or repertoire.

103 concerts were performed this year, which attracted total audiences of 96,075.Average venue capacity was 64% for the year.

NZSO conducted one formal questionnaire driven survey investigating customer preferences in concert package design and concert scheduling. Further research was facilitated through the acquisition of improved primary customer data and by undertaking basic analysis of response rates to marketing offers.

Perform 100 concerts each year. Attract total audiences of greater than 100,000 per year. Achieve average venue capacity in excess of 77% for NZSO promoted concerts.

A minimum of four surveys each year in varying locations

Be responsive and innovative in our programming to retain and extend our audiences to as wide a cross section of the NZ public as possible

Conduct market research through customer satisfaction surveys to ensure we provide programmes that attract new customers and retain existing customers

33

SERVICE PERFORMANCE

Create workshop opportunities for New Zealand composers

Profile New Zealand composition in public concerts and recordings

Promote and encourage New Zealand musical composition and composers

A minimum of two days of rehearsed readings programmed in conjunction with SOUNZ.

Young composer workshop coordinated through our Education Programme.

The annual Made in New Zealand concert presented

The series of commissions from New Zealand composers continued at the rate of at least two commissions annually.

At least one already-existing New Zealand work programmed in the annual subscription series.

Make the orchestra available for one CD or film score of New Zealand music annually without charge for the players’ services

Two days of rehearsed and recorded readings of NZ works were undertaken in September 2008, and two in May 2009 in conjunction with SOUNZ.

2 days of composer workshops involving 4 schools and 11 students were undertaken in September 2008.

The Made in New Zealand concert was presented in Wellington in May 2009.

Commissioned orchestral arrangements for Carl Doy’s Nothing But Dreams tour in February 2009. Two new commissions premiered and performed throughout the country. Two additional premiers performed in the Made in New Zealand concert in May 2009.

David Farquhar’s Ring Around the Moon Suite was included in the Music Director’s October/November Subscription Tour programme in 2008. An NZSO commission Remembering by Kenneth Young written for Concertmaster Vesa-Matti Leppänen opened the 2008 fifth Subscription Season programme and was performed in Auckland, Wellington, Christchurch and Dunedin. Another commission Winterlight by Martin Lodge for Principal Bassoon Preman Tilson was also programmed in the July Subscription Tour and performed in Auckland, Wellington, Napier and Hamilton.

The 2009 Season opened with Jack Body’s Melodies, written in 1983 alongside John Psathas’ Olympiad XXVIII which was commissioned by the NZSO to perform in Beijing. Other NZ works performed in Beijing included Gareth Farr’s Te Papa. Anthony Watson’s Prelude and Allegro for Strings was programmed in the second Subscription tour of 2009 and performed in Wellington, Auckland, Hamilton and Napier.

2009 also included a performance of Douglas Lilburn’s Landfall in Unknown Seas as well as Three Poems of the Sea that feature the poetry of Allen Curnow. These were performed in a programme that also featured existing works by Ross Harris and Dougal McKinnon world premieres of works by Lissa Meridan and Jack Body.

recorded 5 days of music for the film ’Under the Mountain’

NEW ZEALAND SYMPHONY ORCHESTRA ACT 2004 - SECTION 8

SPECIFIC OBJECTIVES SERVICE TARGET SERVICE PERFORMANCE

Ensure that New Zealand artists perform with the orchestra as often as possible

Continue the practice of auditioning (and attempting to make appointments) within New Zealand for vacancies in the orchestra before advertising more widely

Provide performance opportunities for New Zealand musicians, whether as members of the orchestra or as soloists

At least 20 New Zealand artists presented with the orchestra annually

Local auditions conducted prior to international advertising of all new vacancies

28 New Zealand artists performed with the NZSO during the year

The NZSO has held local auditions for the following positions: Section Player Violin, Principal Bassoon, Associate Principal Oboe and Sub Principal French Horn. Auditions are held locally first (not open to international candidates) and every endeavour is made to select NZ musicians if they meet the required standard.

34

Excellent Artistic programme

NZSO quality equal to that of other “great” orchestras.

NZSO recognized as an excellent orchestra by international standards

The NZSO recruits and retains only musicians of the highest possible caliber.

Through identifying professional development needs and aspirations, standards are maintained or enhanced.

All performances of the NZSO are thoroughly rehearsed to ensure that public performances are of the highest possible standard.

Assessment of reviews sustains the conviction that the NZSO is operating at a very high level of artistic quality.

Assessment of reviews sustains the conviction that the NZSO is internationally regarded as achieving a very high level of artistic quality.

NZSO recordings compare favourably with the best of what is available internationally.

Major artists continue to be made available to the NZSO.

Audiences appreciate NZSO quality.

“i remain closely involved with artistic planning for current and future seasons. As part of our Five Year Artistic Plan we are scheduling projects and repertoire to develop the orchestra’s sound and quality. i have personally invited a number of conductor and soloists to work with the NZSO and am consulted about other guest artists. i have ensured that auditions have been scheduled during my time in NZ so that i can attend and be involved in the selection of NZSO musicians. The reputation of the NZSO has also meant that guest artists and conductors working with the leading orchestras of the world are continuing to want to come to work with the NZSo “- Pietari inkinen.

The NZSO and i have worked closely and very hard together in the past year and this is having excellent results. already a fine orchestra, the overall standard of the orchestral playing has lifted and there is real change in the string sound. This is extremely heartening especially in light of the planned tour of Europe as it has enabled me to consider more challenging repertoire to that originally offered as i feel that the NZSO is more than up to the task. This new repertoire has also had a positive impact on the calibre of European engagements that we have been offered. – Pietari inkinen

informal exit interviews with visiting conductors and soloists are conducted by the CEO and/or Artistic Administrator. The musical standard of the NZSO, NZSO tour planning and their satisfaction musically and personally are discussed candidly.

“The NZSo’s audition and assessment procedures have been carried out according to the high artistic level of the NZSO. All the current musicians of the NZSO are working hard to maintain that level ” Vesa-Matti Leppänen

Professional Development procedures has been carried out properly and in order to enhance artistic quality of NZSO and individual players. The system includes an individual discussion about performance standards and development needs and opportunities are provided for enhancement of playing performance.

A minimum of 5 rehearsals programmed for each subscription concert performance, which is consistent with international practice.Visiting conductors consulted on rehearsal process to ensure it meets with international standards.

Continuing the model of previous years, all media coverage, including concert reviews, is collated and accorded a satisfaction/favorability rating on a scale of 1-10. A summary of articles and the ratings are presented to senior management, Music Director and the Board. The vast majority of NZSO reviews fall between a narrow range of 8 and 9.

Using the same methodology as domestic media comment, international reviews of recordings are collated and rated. in the past year, NZSO recordings have scored in a narrow range between 7 and 9.Major technical performance issues have not been raised in these reviews in the past year

There were 2 broadcasts on overseas networks and another 2 concerts were requested.

12 high profile international conductors, 12 international artists and 28 NZ artists appeared with the NZSO in the 2008/2009 season including Pietari inkinen, Yefim Bronfman and Christian Lindberg. World class artists of this kind are represented by leading artists’ management companies in Europe and USA including iMG Artists, Opus 3 Artists and KDS Schmid. The NZSO continues to work with these leading agencies on a daily basis and their artists regularly appear with the NZSO.

Quality of service and service satisfaction issues were tested and measured in an omnibus survey conducted in Q3/Q4 2008. Results were presented for Senior Management consideration at the end of Q4.

TARGET SERVICE PERFORMANCEMEASUREMENT

Annual Statement from the Music Director confirming satisfactory involvement in artistic planning

Annual Statement from the Music Director assessing NZSO standard

informal “exit” interviews carried out with guest conductors and soloists about their satisfaction with the orchestra

Statement from Concertmaster that audition procedures have been rigorous and properly carried out

Statement from the Concertmaster and HR Manager that performance management procedures have been properly carried out.

Rehearsal schedules consistent with best international practice

Reviews collected and analysed (i) for salient issues, and (ii) statistically for overall quality indicators (Concerts)

Reviews collected and analysed (i) for salient issues, and (ii) statistically for overall quality indicators (NZSO CDs)

Number of broadcasts of the NZSO on overseas networks reported

Number of artists successfully contracted and list of agencies reported

Surveys carried out and analysed

35

SPONSORS AND FUNDiNG AGENCiESWe proudly acknowledge our family of sponsors and funding agencies

Registered officeLevel 2, Municipal offices Building101 Wakefield StreetWellington, New Zealand Postal AddressPO Box 6640, Wellington 6141New Zealand

DiRECTORYAuditorAudit New ZealandOn behalf of the Controller and Auditor-General

BankThe National Bank of New Zealand, part of ANZ National Bank Limited SolicitorsMorrison Kent

Telephone 04 801 3890 Facsimile 04 801 3891

email info@nzso.co.nz

Website www.nzso.co.nz

36PHOTO: Lev Melikhov