2013—2014 ANNUAL REPORT

10
Belconnen Arts Centre Annual Report 2013–14
11
Treasurer’s Report and
Financial Statement
2013–14
Through the commendable efforts of management and staff,
the Belconnen Arts Centre (BAC) completed the 2013–14
financial year achieving a surplus of $23,750, on total income
of $961,600 (2.47%). This result exceeds the surplus budgeted
at $10,470 and also favourably compares with last year’s
surplus of $22,500. To achieve this, the Board has ensured
entrepreneurial considerations are a part of developing the
overall Centre program.
We remain a long way short of the benchmark performance
standard set by artsACT of a surplus of 10% of gross income.
BAC has chosen to build towards that performance target
while developing a full and varied program of activities
embracing our community and cultural inclusion goals.
Completion of the second stage of the building holds the
key to significantly growing our own sourced revenues, not
only from a much wider program of activities but also from
donations, sponsors and philanthropy. The wider range
of activities enabled by the completed building, and the
cementing of BAC as the cultural hub in our region, will
naturally be attractive to community, business partners
and philanthropists.
Our current account position remains strong with current
assets of $550,861 ($239,132 after adjusting out the artsACT
receivable of grants money for 2014–15, for comparison
purposes) and current liabilities of $74,587.
In 2013–14 the team improved its Project Grant application
success with a total of $100,160 project grants received.
Other own sourced income was $300,300, while Core and (the
new) Community Cultural Inclusion Program grants totalled
$561,100. This has been a pleasing performance for the year.
The team has worked hard to build up other areas of revenues,
being particularly successful in commissions on artworks sold
through the exhibition program, and in continuing to closely
monitor our hires and rentals.
The Balance Sheet equity position has improved again to
$97,697, up from $73,947 over the 12 months to 30 June
2014. On this count we now meet for the first time the
benchmark performance standard set by artsACT of retained
earnings exceeding 10% of the gross income.
This year 2014 marks the end of our initial 5 year grant period.
We are pleased to report a strong net asset position at the end
of that five year grant period. This is testament to the dedicated
hard work of the staff and Board, and strong governance
through that initial 5 year period. The Board looks ahead with
confidence to the negotiations for the next 5 year cycle.
BAC has agreed to change the reporting year to a calendar
year to align with the reporting period of the artsACT grants
program. This means that BAC will also produce a 6 month
report to, and as at, 31 December 2014; then continue
thereafter with a 12 month cycle of reporting beginning
1 January 2015. The change also affords an opportunity to
further develop our reporting capabilities enabling more
comprehensive and more efficiently produced information on
a cost centre basis across our various activities and programs.
BAC was pleased to finally resolve with artsACT the
uncertainty over accounting for and future management of
the Centre’s major assets. While concerned with the some
of the related decisions, we now have certainty and can
work to strategically and financially manage the Centre’s
operating asset base, a significant element of which are not
on BAC’s Balance Sheet.
Challenges for the coming years include building on our
local community and business partnerships, eventually
developing these as a significant source of income, and
entrenching the Centre as the prime regional community
focus for arts and cultural activities. Developing our
own source income, or non grant income, is particularly
important for the Belconnen Arts Centre as it remains a high
risk strategy to continue reliance on Government grants if
we wish also to continue to attract and retain high calibre
staff to the Centre and run successful programs across the
arts spectrum.
My strong vote of thanks to the staff and Board of
Belconnen Arts Centre again this year for their dedication,
passion and successes over the year.
Rex Hollier
Treasurer, Belconnen Arts Centre Incorporated
One River