2010–13 Strategic Plan - Creative New Zealand

ARTS COUNCIL OF NEW ZEALAND TOI AOTEAROAstrategic plan and statement of intentte mahere rautaki me tauäkï whakamaunga atu0

Contact usWebsite: www.creativenz.govt.nzCentral Region – Wellington OfficeOld Public Trust Building131-135 Lambton QuayPO Box 3806Wellington 6140T: 04 473 0880F: 04 471 2865E: info@creativenz.govt.nzNorthern Region – Auckland OfficeThird FloorSouthern Cross Building59–67 High StreetPO Box 1425Auckland 1140T: 09 373 3066F: 09 377 6795E: northern@creativenz.govt.nzSouthern Region – Christchurch OfficeSuite 6A, Level 6728 Colombo StreetChristchurch 8011PO Box 2932Christchurch 8140T: 03 366 2072F: 03 366 9199E: southern@creativenz.govt.nz

This Statement of Intent represents the intentions and objectives of the ArtsCouncil of New Zealand Toi Aotearoa (Creative New Zealand) for the period from1 July 2010 to 30 June 2013. It is presented in accordance with sections 138 to 148of the Crown Entities Act 2004.Alastair CarruthersErima HenareChair, Arts CouncilMember, Arts Council28 May 2010 28 May 2010In accordance with section 149 of the Crown Entities Act 2004, I present thisStatement of Intent to the House of Representatives.Hon Christopher FinlaysonMinister for Arts, Culture and Heritage28 May 2010COVER: Red Leap Theatre, The Arrival. Photo by Robert Catto / catto.co.nz

Contents Ngā ihirangiStrategic Plan 2010–2013Te Mahere Rautaki 2010–2013Introduction Kupu whakataki 4Strategic Plan diagram 5How is this plan different from theStrategic Plan 2007–2010? He aha tererekëtanga o tënei mahere ki tera MahereRautaki 2007–2010? 6Our vision Tö mätou titiro whakamua 7Our purpose A mätou whäinga 8Our values and guiding principles A mätoutikanga me a mätou mätäpono aratohu 10What we are trying to achieve:outcomes and impacts Pehea tewhakatutuki: Ngä hua me ngä äria 11Outcome 1: New Zealanders participatein the arts Kia whai wähi ngä tängata katoao Aotearoa ki ngä mahi Toi 12Outcome 2: High-quality New Zealandart is developed Te whanaketanga o ngä mahitoi kairangi o Aotearoa 14Outcome 3: New Zealanders experiencehigh-quality arts Kia whai wähi atu ngä tängatakatoa o Aotearoa ki ngä wheako Toi Kairangi 16Outcome 4: New Zealand arts gaininternational success Te tü angitu ä-ao o ngämahi toi o Aotearoa 18Key initiatives for 2010–2013 A mätoukaupapa hirahira mo ngä tau 2010–2013 20Statement of Intent2010–2013Tauäkï Whakamaunga atu2010–2013 21Part 1: About Creative New ZealandNgä körero mö Toi Aotearoa 21What we are trying to achieve – Our outcomesHe aha a matou tutukitanga – A matou hua 22What we do – Our outputsA matou mahi – A matou whakaputanga 23Who we are Ko wai mätou 24Consultation and reporting to the MinisterNgä körero me ngä whakatakoranga ki te Minita 26Part 2: Medium-Term Outlook 2010–2013Te titiro ki te waenganui o te wä2010–2013 28Our operating environment Tö mätou ao mahi 28Our operating intentions 2010–2013Te whakatinana i ngä mahi 2010–2013 31Outcome 1: New Zealanders participatein the arts 33Outcome 2: High-quality New Zealandart is developed 37Outcome 3: New Zealanders experiencehigh-quality arts 41Outcome 4: New Zealand arts gaininternational success 45Managing our organisational health Te whakahaerei te ora o te tari 48Mitigating risks Te whakangawari ngä tüpono 51Part 3: Annual Outlook – ForecastPerformance for the Period 1 July 2010 –30 June 2011 Ngä whakatutukinga ä taute wähanga 1 Hurae 2010 – 30 Hune 2011 52Forecast service performance Te matapaewhakatütukitanga 53Output 1: Funding for artists, practitionersand arts organisations 54Output 2: Capability-building for artists,practitioners and organisations 62Output 3: Advocacy for the arts 64Forecast financial statements Ngä matapaepürongo pütea 65Statement of accounting policies 66Prospective Statement ofFinancial Performance 73Prospective Statement ofComprehensive Income 74Prospective Statement of Changes In Equity 75Prospective Statement of Financial Position 76Prospective Cash Flow Statement 77Glossary of terms Papakupu 79

Introduction Kupu whakatakiAs we look to thefuture, it is reassuringto know that thearts do matter toNew Zealanders.This is manifest from researchwhich found that more than50 percent of New Zealandersagreed that they can’t live withoutthe arts, and more than 80 percenthad attended an art event in thepast 12 months. 1This is an outstanding result. Wecontinue to take enormous pridefrom the knowledge that our artsand artists succeed at home andoverseas.Creative New Zealand is committedto furthering the progress that hasbeen achieved. By January 2011 wewill have reviewed three significantfunding programmes (ContestableFunding, Creative CommunitiesScheme, and RecurrentlyFunded Organisations). Thesereconfigured programmes willimprove the delivery of the arts toNew Zealanders for the next tenyears.Every strategic plan has a time andcontext. This plan is unfoldingin an economy affected by globalrecession which means we will1 New Zealanders and the Arts: Attitudes,attendance and participation in 2008.continue to look hard at how weinvest our resources and manageour costs. New legislation tosimplify Creative New Zealand’sgovernance structure will also allowus to spend more time workingdirectly with the arts community.We know from our consultationon this strategic plan that the artscommunity wants to work with usto encourage and support youngpeople in the arts, increase thediversity of people participating inthe arts and to play a greater role inadvocating for the arts.We will be dedicating moreattention to working with otherswho invest in the arts, includinglocal authorities. Progress in thelast few years with the AucklandRegional Amenities Funding Act2008 shows what is possible whencentral and local government andarts organisations work together.Creative New Zealand seldom worksalone. Support for the arts comesfrom a broad coalition that includescentral and local government,sponsors, philanthropists, trusts,and the public. Voluntary effortfrom our board members, friendsand lovers of the arts is the gluethat binds our sector togetherand sincere thanks go to everyoneinvolved.We also recognise the financialsupport of the people ofNew Zealand (through theGovernment, and the New ZealandLottery Grants Board) that providesour revenue to deliver this plan.Mā te kōrero ka mōhio mā te mōhioka mātau mā te mātau ka māramamā te mārama ka ora.Communication is limited withoutunderstanding, understanding comesfrom learning, from learning comesenlightenment, from enlightenmentcomes well being.Stephen WainwrightChief ExecutiveCreative New ZealandAlastair CarruthersChair, Arts CouncilCreative New Zealand4 Arts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013

The Strategic Plan 2010–2013Te Mahere RautakiOur visionStrong and dynamicNew Zealand arts,valued in Aotearoaand internationallyOur purposeCreative New Zealandis the national artsdevelopment agencydeveloping, investingin and advocatingfor the artsOur valuesWe are committed to:• Supporting artisticfreedom• Acknowledging thecontribution of the artsto society• Aspiring to excellence• Partnering with Mäorias tängata whenua• Recognising diversityOur guidingprinciplesWe are committed to:• Demonstrating integrity,transparency andprofessionalism in allour dealings• Strengthening the artssector to ensure anenduring foundationfor arts development inNew Zealand• Working with ourpartners to achievebetter and longer-termresults for the arts sector• Offering specialisedknowledge and advice• Targeting all that wedo to concentrate ourefforts on achieving ourstrategic outcomes• Learning throughresearch and evaluationto ensure that we aremaking progress,maximising our impact,and being as efficientas possibleOur outcomes and impactsOutcome 1: New Zealanders participatein the artsMäori heritage arts: Mäori communities preserve,develop and transmit their cultural traditions andartistryPacific heritage arts: Pacific communities preserve,develop and transmit their customary artisticpracticesCommunity arts participation: New Zealand’sdiverse communities participate in and develop the artsOutcome 2: High-quality New Zealand artis developedDeveloping potential: Artists, practitioners andarts organisations with potential develop their skillsand practiceHigh-quality artists: Artists, practitioners and artsorganisations that are acknowledged for the qualityof their work are supportedProducing innovative work: High-quality andinnovative new work is developed, including Mäoriand Pacific work and the works of New Zealand’sdiverse culturesOutcome 3: New Zealanders experiencehigh-quality artsDelivery of the arts: Artists, practitioners and artsorganisations deliver high-quality arts experiences toNew ZealandersDiversity in the arts: New Zealand audiences haveaccess to diverse arts experiencesDeveloping audiences: Artists, practitioners and artsorganisations develop skills and capabilities to deliverwork and to increase and diversify their audienceOutcome 4: New Zealand arts gaininternational successDeveloping potential: Artists, practitioners andarts organisations develop skills and capabilities forengaging internationallyMarket development: International markets andaudiences for New Zealand art are developedNew Zealand’s distinctive voice is heard overseas:Distinctive, high-quality, internationally viable work ispresented overseasArts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013 5

Our purpose A mātou whāingaCreative New Zealandis the national artsdevelopment agencydeveloping, investingin and advocating forthe arts.What we mean by“arts development”All development involves growth,and we believe that developingthe arts involves identifying andencouraging progression on anumber of levels:• the development of high-qualityand innovative art• the development of individualartists and practitioners throughimproving their artistic quality,their ability to be innovative, ortheir productivity, so that theycan reach their potential andachieve their goals• the development of artsorganisations, throughimproving their artistic quality,organisational effectiveness,and financial health• the development ofNew Zealand’s artsinfrastructure, arts communitiesand audiences (the “artsecology”).We believe that CreativeNew Zealand can play an importantrole at each of those four levelsof development.How we see our role as anarts development agencyResponding to the diverseneeds and aspirations of thearts communityWe believe that developmentof the arts sector cannot beachieved through a “one size fitsall” approach. Different artists,practitioners and arts organisationshave different needs andaspirations, which depend on theirparticular artform and career stage.Our development strategies andinitiatives need to respond to thosedifferent needs and aspirations.Our development strategies mustalso recognise the important role ofMāori as tāngata whenua, the arts ofthe Pacific peoples of New Zealand,and, more broadly, New Zealand’sethnic diversity.A proactive approachto arts developmentAs a development agency, CreativeNew Zealand takes a proactiveapproach: we identify the mostimportant needs and opportunitiesand invest our finite resourcesin ways that we believe will bestachieve our strategic outcomes andour vision of strong and dynamicNew Zealand arts. This differs fromwhat we see as being the primaryrole of a funding agency, which isto ration available money inresponse to requests – essentiallya reactive role.Therefore, while we must remainresponsive to the arts community,Creative New Zealand must alsoclearly set out the proactivestrategies and steps we willundertake to develop the arts.Developing potentialDeveloping potential was a strongtheme throughout the 2007–2010plan, and this emphasis continuesin this new plan. As a developmentagency, we are interested insupporting artists, practitionersand arts organisations as theyprogress along a trajectory,translating potential into successwithin New Zealand or overseas.A sector-wide perspectiveAs the national arts developmentagency we have a sector-wideperspective on the arts ofNew Zealand and an awarenessof current trends in the arts.This guides how we allocate ourresources, as does engagement withthe arts sector.How we will work toachieve our purposeTo achieve our purpose CreativeNew Zealand will provide three keyservices in 2010–2013:8 Arts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013

• funding for artists, practitionersand arts organisations• capability-building forartists, practitioners and artsorganisations – for example,leadership and governanceworkshops for members of thearts community, and resourcesto assist arts organisations todevelop their audiences• advocacy for the arts – forexample, submissions on issuesaffecting the arts, carrying outresearch, and making the casefor the public value of the arts.We will monitor and comparewhat we are achieving througheach of these three services tounderstand where we obtain thegreatest benefit. Our measures ofsuccess are detailed in our annualStatement of Intent.FundingCreative New Zealand fundingsupports individual professionaldevelopmentopportunities, as wellas the creation and presentationof art.Creative New Zealand has fourmajor funding programmes:Recurrent Funding, ContestableFunding, International Fundingand the Creative CommunitiesScheme. Eighty percent of CreativeNew Zealand’s approximately$40 million budget is distributedto the community through fundingor grants. Creative New Zealandis recognised as having expertisein running funding processes andusing its knowledge and skills tomake sound decisions.Capability-buildingWhile most of our resourcesare dedicated to funding, weare reviewing where we mightoffer more capability-buildingopportunities for individualsand organisations. Our currentprogrammes have been wellattended, and we want to knowwhere there is a need for otherskills-development opportunities.As we will be operating ina constrained economicenvironment, we will havesome difficult choices to makebetween funding programmes andcapability-building programmesof equal merit. However, byworking in partnership withlocal government, communityorganisations and the privatesector, we aim to continue toprovide development opportunitiesfor artists, practitioners and artsorganisations.Advocacy for the artsOur role as an advocate forthe arts and arts developmentbecomes increasingly importantin the current economic climate.Advocacy can be a means to enableartists and the arts of New Zealandto access resources and supportfrom sources other than CreativeNew Zealand. While all our staffadvocate for the arts every day, wewill develop an advocacy strategyduring 2010 to build support forthe arts sector from communityorganisations, local government,the business sector and theNew Zealand public.Through an advocacy strategy weare seeking to position ourselves asa leading voice for the arts. As partof this strategy we will identify whoour key partners will be for the nextthree years, how we will developour relationships with them, andhow we can facilitate informationsharingand networking betweenthose arts organisations that have astrong advocacy focus. We will alsoseek to inform the work of othersectors and encourage them tobuild strong relationships with thearts sector.From 2010 Creative New Zealandwill conduct regular surveys of thearts sector aimed at identifyingissues and opportunities relevantto specific artforms or activities.The feedback will inform CreativeNew Zealand’s decision-making.We will also seek regular feedbackfrom clients and customers ofCreative New Zealand about thequality of the services we provide.Arts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013 9

Principal Percussion, Brett Painter, with audience members from the Christchurch Symphony Orchestra’s (CSO) Outreach andEducation Concert – CSO Kids. Photo: The Christchurch PressOutcome 1:New Zealanders participatein the arts Kia whai wähingä tängata katoa oAotearoa ki ngä mahi ToiWhat are we seeking to achievewith this outcome?Creative New Zealand will provideopportunities for New Zealandersto participate in the arts for thebenefit of their communities.Along with Creative New Zealand,many other organisations areinvolved in funding local orcommunity arts activity. Thisincludes community and gamingtrusts, local authorities, and iwi.Impacts associatedwith this outcomeOver the next three years, CreativeNew Zealand seeks to make adifference in the following ways:1. Māori communities preserve,develop and transmit theircultural traditions and artistry.2. Pacific communities preserve,develop and transmit theircustomary artistic practices.3. New Zealand’s diversecommunities participate inand develop the arts.Why is this outcome important?Creative New Zealand recognisesthat a healthy arts sector requiresa strong foundation of communityengagement in the arts. Weare committed to supportingNew Zealand communities toparticipate in and develop the arts.The New Zealanders and thearts: Attitudes, attendance andparticipation in 2008 research foundthat around half the populationaged 15 and over (48 percent)are actively participating in thearts in New Zealand. This isconsistent with the overall level ofparticipation in 2005 (50 percent).Just over one quarter of thepopulation participate in the artsregularly (more than 12 times in thepast 12 months). 2We have a particular responsibilityto recognise:• the cultural diversity of thepeople of New Zealand• the role of Māori as tāngatawhenua in the arts, and• the arts of the Pacific peoples ofNew Zealand.As tāngata whenua, Māori and theirarts are integral to New Zealandsociety and culture and to who weare as a nation.2 New Zealanders and the arts: Attitudes,attendance and participation in 2008http://www.creativenz.govt.nz/Portals/0/publications/NZers-and-the-arts-2008.pdf12 Arts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013

Creative New Zealand alsorecognises the special place ofPacific peoples and their arts.New Zealand is a Pacific nation,and our population, culture andnational identity are increasinglyenriched and influenced byPacific peoples and cultures. Acommon theme among Pacificcommunities is the need to passon cultural knowledge and skills toNew Zealand-born Pacific children.Creative New Zealand funding forheritage arts projects supports this.What will we do toachieve this outcome?Effective funding for communityarts depends on CreativeNew Zealand having good workingrelationships with its partners,on there being effective systemsand processes for allocating anddevolving funding for communityarts, and on Creative New Zealandand local authorities having a goodunderstanding of New Zealandcommunities.Creative New Zealand will continueto provide support through theContestable Funding programmeand the Creative CommunitiesScheme, which is deliveredby Creative New Zealand inpartnership with local authorities.The Contestable Fundingprogramme includes the followingspecific initiatives targeted atMāori communities:• Toi Ake, which supports thepreservation and developmentof toi Māori for hapū and iwi,and• the Tohunga TukungaProgramme, which providestohunga with opportunities toshare their knowledge and skillswith senior Māori artists.Organisations that we fundthrough the RecurrentFunding programme alsooffer opportunities for localcommunities to engage in thearts. Creative New Zealand’sinvestment through RecurrentFunding supports the developmentof a sustainable infrastructure inthe arts sector by funding selectedarts organisations to provideprogrammes of activity over one tothree years.In 2009 Creative New Zealandcompleted research on Māori andPacific heritage arts. The purposewas to provide insight into thehealth of these heritage arts inNew Zealand, and to help informCreative New Zealand about how wecan best target support and fundingfor Māori and Pacific heritage artsfrom 2010. Over the period ofthis plan, we will implement theoutcomes of this research.We will also continue to implementthe Asian Aucklanders StrategicAction Framework 2008–2012,which we have developed inpartnership with the Auckland CityCouncil and the ASB CommunityTrust. The framework has beendeveloped as a pilot strategy toengage Asian Aucklanders in thearts; if it is successful, a nationalstrategy will be implemented.Creative New Zealand plans toundertake two key research andpolicy activities over 2010–2013to enable us to better understandhow New Zealanders are engagingin the arts. First, we will developa community arts policy. Second,we will review our CulturalDiversity Strategy (June 2006),with a view to it becoming partof a wider diversity strategy thatwould encompass access to,and participation in the arts fordisabled New Zealanders.We will measure our progress inengaging New Zealanders in thearts through the three-yearlyresearch into New Zealanders’attitudes, attendance andparticipation in the arts.Arts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013 13

Tama Waipara performing at the Australian World Music Expo (AWME). Photo: Nigel ClementsOutcome 2: HighqualityNew Zealandart is developed Tewhanaketanga o ngä mahitoi kairangi o AotearoaWhat are we seeking to achievewith this outcome?Creative New Zealand seeks toensure that New Zealand artists,practitioners and arts organisationshave the opportunity to fulfil theirpotential by continually developingtheir artforms, the quality of theirwork, and their skills and practice.Impacts associatedwith this outcomeOver the next three years CreativeNew Zealand seeks to make adifference in the following ways:1. Artists, practitioners and artsorganisations with potentialdevelop their skills andpractice.2. Artists, practitioners andarts organisations that areacknowledged for the quality oftheir work are supported.3. High-quality and innovativenew work is developed,including Māori andPacific work and the worksof New Zealand’s diversecultures.Why is this outcome important?By supporting high-quality artists,practitioners and arts organisationsto develop and present new andinnovative work, we help developthe creative potential of artists andartforms.We support artists, practitionersand arts organisations across thefollowing areas:• Craft/object art• Dance• Inter-arts• Literature• Māori arts• Music• Opera• Pacific arts• Theatre• Visual arts• Community arts.Creative New Zealand supports newand emerging artforms, includingnew media, digital arts andmoving-image arts across the areaslisted above.14 Arts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013

To achieve this outcome we alsosupport professional development,so that artists are able to learn,develop and experiment with theirarts practice.This outcome also contributes tothe outcome New Zealand artsgain international success, asinternational engagement dependson high-quality, distinctiveNew Zealand art being developed.What will we do toachieve this outcome?Creative New Zealand contributesto this outcome by providingContestable Funding, includingspecial opportunities (residencies,scholarships, fellowships,bursaries and awards) forartists, practitioners and artsorganisations. There are fourContestable Funding pathwaysthat respond to the different needsof artists, practitioners and artsorganisations: these are QuickResponse Grants, Arts Grants,Arts Investments and SectorInvestments. Arts organisationsalso receive support throughRecurrent Funding.Creative New Zealand acknowledgesthat it needs to improve itsunderstanding of young peopleand art: we have identified this as apriority policy area for 2010–2013.To support the development of apolicy we have planned researchinto young emerging artists in2009–10; this will form part of awider research project looking atyoung people and the arts, whichwill include arts education and artsin education. 3We also recognise that a clear andeffective digital arts strategy isrequired. We will continue on fromthe research work on digital artspractice carried out as part of ournew Distribution Strategy, anddevelop a digital arts strategy over2010–13. 43 “Arts education” is life-long educationin the arts and can occur in any context.“Arts in education” refers to arts asincluded in primary, secondary andtertiary education settings.4 Distribution Strategy http://www.creativenz.govt.nz/Funding/DistributionStrategy/tabid/4896/language/en-NZ/Default.aspxArts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013 15

Black Grace performing Gathering Clouds. Photo: Neil IeremiaOutcome 3:New Zealanders experiencehigh-quality arts Kia whaiwähi atu ngä tängata katoao Aotearoa ki ngä wheakoToi KairangiWhat are we seeking to achievewith this outcome?New Zealanders have a healthyappetite for arts experiences, asshown by the New Zealanders andthe arts: Attitudes, attendance andparticipation in 2008 research. 5Consistent with 2005, the 2008research showed that 83 percent ofNew Zealanders aged 15 and overattended at least one arts eventin the previous year, and more5 New Zealanders and the arts: Attitudes,attendance and participation in 2008http://www.creativenz.govt.nz/Portals/0/publications/NZers-and-the-arts-2008.pdfthan a third (34 percent) attendedregularly (once a month or more).Creative New Zealand will continueto broaden the opportunities forNew Zealanders to access the arts bysupporting arts experiences acrossthe country and by contributingto the organisations that providethem. Critical components of thisoutcome are providing accessto Māori arts, Pacific arts andthe arts of New Zealand’s otherdiverse cultures, and increasingthe geographic distribution of artsexperiences.Creative New Zealand plays amajor role in supporting accessto high-quality arts experiencesby supporting organisationsthat provide arts experiencesthroughout New Zealand.Other support is provided bycommunity and gaming trusts, localauthorities, and the communityin general (through sponsorship,philanthropy and ticket sales).Impacts associated with thisoutcomeOver the next three years CreativeNew Zealand seeks to make adifference in the following ways:1. Artists, practitioners and artsorganisations deliver highqualityarts experiences toNew Zealanders.2. New Zealand audienceshave access to diverse artsexperiences.3. Artists, practitioners and artsorganisations develop skillsand capabilities to deliver workand to increase and diversifytheir audiences.16 Arts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013

Why is this outcome important?The arts are an essential part ofNew Zealanders’ lives. CreativeNew Zealand aims to provideNew Zealanders with regularopportunities to experience highqualitywork across all the artformsand cultural traditions that itsupports.Creative New Zealand is aware thatNew Zealanders in the main centreshave frequent opportunities toaccess arts experiences that are notreadily available to New Zealandersliving elsewhere. We are committedto supporting the availability of artsexperiences across the country,including to communities orsections of the population thatwould otherwise not have regularaccess.We are also aware that the ways inwhich people experience the artshave changed over the decades.Our programmes will need to takeaccount of New Zealand’s changingdemography, in particular thegrowing Māori, Pacific and Asiancommunities.What will we do toachieve this outcome?Creative New Zealand contributesto this outcome by providingfunding through the ContestableFunding and Recurrent Fundingprogrammes, as well as throughnew initiatives such as theDistribution Strategy, which willbe supported through ContestableFunding.Support will also be providedthrough capability-buildingprogrammes, such as the ArtsOrganisation DevelopmentProgramme, the AudienceDevelopment Programme, anda Distribution Skills CapabilityCourse, which aims to provideselected arts practitioners with theknowledge and skills required tosuccessfully organise the touringof performing artworks and writerswithin New Zealand.Creative New Zealand will review itscapability-building programmesover 2010–2013. This will enable usto better understand their impactand what needs to be done todevelop them.As stated in the 2007–2010Strategic Plan, CreativeNew Zealand aims to increasethe number of works touringoutside the main centres. In2009 we developed a DistributionStrategy. Several initiatives toimprove the distribution of artsexperiences will be available overthe period 2010–2013: as well asthe Distribution Skills CapabilityCourse (see above), these willinclude a Regional Presenter andAudience Development Fund anda Māori Arts Presenter Fund.The planned diversity strategy(see page 13) will identify howwe can encourage and supportactive participation in the arts byall New Zealanders and how wecan encourage diversity in artsaudiences.Arts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013 17

Mike Crawford (Ngati Raukawa) Hue and Kumete, cast glass. Photo: Mike Crawford – www.masterworksgallery.comOutcome 4: New Zealandarts gain internationalsuccess Te tü angitu ä-aoo ngä mahi toi o AotearoaWhat are we seeking to achievewith this outcome?Working collaboratively with ourpartners, Creative New Zealandaims to position the best ofNew Zealand arts and artists toachieve lasting success in targetoverseas markets.Impacts associated with thisoutcomeOver the next three years, CreativeNew Zealand seeks to make adifference in the following ways:1. Artists, practitioners and artsorganisations develop skillsand capabilities for engaginginternationally.2. International markets andaudiences for New Zealand artare developed.3. Distinctive, high-quality,internationally viable art ispresented overseas.Why is this outcome important?International success is a priorityfor both the artistic and economicsustainability of our artists.International exposure allowsthem to develop their practicethrough observing and interactingwith international colleagues.New Zealand artists also haveunique perspectives and insightsto add to the international artscommunity.Access to international marketsoffers the potential to expandand diversify audiences, toextend the life of a work, and toprovide additional employmentand sources of income to artists.International success can alsohelp develop New Zealand artsdomestically, by inspiring otherNew Zealand artists to raise theirsights and by giving a betterunderstanding of internationalstandards. Public appreciation ofthe arts in New Zealand is likelyto increase the more the public isaware of, and has experience of ourinternationally successful artists.This outcome is closely linkedto our other outcomes. Formany artforms, internationalengagement often depends onhigh-quality art being createdand successfully distributed inNew Zealand, and therefore this18 Arts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013

outcome relates to the outcomeHigh-quality New Zealand art isdeveloped. Creative New Zealandbelieves that Māori and Pacific artsare critical to international success.We already know that this work isof great interest overseas, as shownby the response to New Zealandwork at international arts markets.Creative New Zealand encouragesartistic links between tāngatawhenua and other first-nationspeoples.intends to achieve this outcomeover the next three years. 6The main services contributing tothis outcome are the InternationalFunding Programme,International Capability-Building, and audience andmarket development activities.International touring andpresenting is also supportedthrough Contestable Funding andRecurrent Funding.What will we do toachieve this outcome?We implemented a newInternational Strategy in 2009,after consulting with the artssector, other governmentagencies, and our internationalnetworks. The strategy provides afocus for Creative New Zealand’sinternational activities and ensuresthat our funding and resources aredirected towards the best results.The International Strategy aimsto help New Zealand artists andarts organisations take their workto international audiences. It alsosets out how Creative New Zealand6 Creative New Zealand’s InternationalStrategy http://www.creativenz.govt.nz/International/WhattheInternationalStrategymeansforyou/tabid/4904language/en-NZ/Default.aspxArts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013 19

Key initiatives for 2010–2013A mātou kaupapa hirahira mo ngā tau2010–2013Creative New Zealand will progressthe following key areas of work over2010–13:1. We will implement theoutcomes of research into thehealth of Māori and Pacificheritage arts.2. We will develop a communityarts policy.3. We will progress a projecton young people and thearts, which will look atarts education and arts ineducation, and at young andemerging artists.4. We will develop a digital artsstrategy.5. We will develop an advocacystrategy.6. We will review our CulturalDiversity Strategy, and developa new diversity strategy.7. We will review our capabilitybuildingprogrammes.20 Arts Council of New Zealand Toi Aotearoa Strategic Plan 2010–2013

Statement of Intent2010–2013Tauākī Whakamaunga atu 2010–2013Part 1: AboutCreative New ZealandNgā kōrero mō Toi AotearoaArts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 21

What we are trying to achieve– Our outcomes He aha a matoututukitanga – A matou huaCreative New Zealand’s StrategicPlan 2010–2013 (see page 4)provides the basis for identifyingthe outcomes we are seekingto achieve on behalf of allNew Zealanders. These are:For each of these outcomes wehave identified several “impacts”– these are descriptions of thedifference we are seeking to makefor New Zealanders in the short- tomedium-term.Outcome 1:Outcome 2:Outcome 3:New Zealandersparticipate in the artsHigh-qualityNew Zealand art isdevelopedNew Zealandersexperience highqualityartsFor more information aboutCreative New Zealand’s outcomesand impacts, see Part 2 of thisStatement of Intent.Outcome 4: New Zealand art gainsinternational success22 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

What we do – Our outputsA matou mahi – A matou whakaputangaCreative New Zealand achievesits outcomes and impacts bydelivering a range of programmes– or “outputs” – in the followingareas:Output 1: Funding for artists,practitioners and artsorganisationsOutput 2: Capability-building forartists, practitionersand arts organisationsOutput 3: Advocacy for the artsOutput 1:Funding for artists,practitioners and artsorganisationsEighty percent of CreativeNew Zealand’s approximately$40 million budget is distributedto the community through fundingor grants. We are usually a partialinvestor only: additional fundingor other resources comes fromlocal government, corporatesponsorship, community andgaming trusts, ticket sales,donations, and volunteers.Creative New Zealand is recognisedfor its expertise in running fundingprocesses and for having theknowledge and skills necessary tomake sound decisions. We adoptfair processes that enable us to:• make good investment decisionsthat deliver activity that isconsistent with the outcomes wehave identified• contract with the people weinvest in to ensure that publicmoney is accounted for• monitor the projects we invest into ensure that the agreed resultsare achieved.Creative New Zealand’s staffmaintain contact with artistsand arts organisations in manydifferent ways, including attendingmeetings, hui, fono, workshops,performances and events. Thisensures that we are well-informedabout trends in the arts sector andabout the sector’s needs, so thatwe are able to provide high-qualityadvice and information to artistsand arts organisations.Output 2:Capability-building forartists, practitioners andarts organisationsCreative New Zealand’s nationaloversight of the arts sector allowsus to target our capability-buildingprogrammes at specific skill areas,and build the skills and knowledgeof arts practitioners in thoseareas so that they can becomemore effective and efficient. Thisincludes, for example, areas suchas leadership, governance andinternal organisational systems andprocesses.Output 3:Advocacy for the artsAll Creative New Zealand staffplay a role in advocating forand promoting the arts. Anexample of our advocacy work isthe three-yearly research intoNew Zealanders and the arts, whichexplores New Zealanders’ attitudes,attendance and participation in thearts. 7 Over 2010–13, we will expandour role in promoting the value ofthe arts.For more information aboutCreative New Zealand’s outputs, seePart 3 of this Statement of Intent.7 New Zealanders and the arts: Attitudes,attendance and participation – Formore information about this research,which was carried out in 2005 and2008, visit www.creativenz.govt.nzArts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 23

Who we are Ko wai mātouCreative New Zealand’sstructure isdetermined by the ArtsCouncil of New ZealandToi Aotearoa Act 1994.It consists of:• the Arts Council• two arts boards: the Arts Boardand Te Waka Toi (the Māori artsboard), and• the Pacific Arts Committee,which is a committee of theArts Board.The Arts CouncilThe Arts Council of New ZealandToi Aotearoa is the governing boardof Creative New Zealand.The members of the Council areappointed by the Minister for Arts,Culture and Heritage. The Ministermust consult with the Minister ofMāori Affairs before appointingMāori members.The Arts Council is responsiblefor setting Creative New Zealand’spolicy and strategic direction,for allocating funding to the artsboards for them to invest, and forundertaking specific initiativesaimed at achieving its goals. TheCouncil is also responsible for, andmonitors, the overall performanceof Creative New Zealand and thearts boards.The Council has three committees,which undertake work on its behalf:• the Finance, Risk and AuditCommittee• the Chief Executive PerformanceReview Committee, and• the Chairs Committee.Functions of the Arts CouncilThe Act sets out the Arts Council’sprincipal functions (in section 7):• to encourage, promoteand support the arts inNew Zealand for the benefit of allNew Zealanders• to recognise in the arts the roleof Māori as tāngata whenua• to promote the development of aNew Zealand identity in the arts• to encourage, promote andsupport the arts of the PacificIslands’ peoples of New Zealandand the arts of New Zealand’sdiverse cultures• to determine the level of fundingthat should be available for eacharts board to allocate• to deliver funding in accordancewith the allocation decisions ofthe arts boards• to formulate policies for thedirection of the arts boards• to ensure that the arts boardsencourage, promote and supportprofessional and community arts• to uphold and promote therights of artists and the rightto freedom in the practice ofthe arts• to maintain relationships withother agencies and organisations• to give advice to the Ministerfor Arts, Culture and Heritageon any matter relating toor affecting the Council’sfunctions.The arts boards and thePacific Arts CommitteeThe Act establishes two fundingboards, the Arts Board and Te WakaToi, which are both accountableto the Arts Council. The Actalso establishes the Pacific ArtsCommittee, as a committee of theArts Board.The members of the two arts boardsare appointed by the Minister forArts, Culture and Heritage. TheMinister consults with the Ministerof Māori Affairs before appointingmembers to Te Waka Toi. Membersof the Pacific Arts Committee areappointed by the Arts Board, and24 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

the committee is chaired by an ArtsBoard member.Creative New Zealand’s StrategicPlan 2010–2013 (see page 4)provides direction for the artsboards.Functions of the arts boardsThe general functions of thearts boards reflect those of theArts Council. The boards arerequired to:• encourage, promote and supportthe arts in New Zealand for thebenefit of all New Zealanders• recognise in the arts the role ofMāori as tāngata whenua, and• promote the development of aNew Zealand identity in the arts.In carrying out those generalfunctions, the arts boards havethese specific functions:• to allocate available funding toarts projects for professionaland community arts--The Arts Board allocatesfunding for the arts inNew Zealand generally, butalso specifically for the arts ofthe Pacific peoples (throughthe Pacific Arts Committee)and for the diverse culturesof New Zealand. Te Waka Toiallocates funding for Māoriarts.• to establish mechanismsfor peer-assessment, andguidelines for allocating funding• to set guidelines for designatedcommunity arts providers, and• to ratify and monitor fundingdecisions.Management and staffAs of 20 May 2010, CreativeNew Zealand has 50 staff basedin its three offices in Wellington,Auckland and Christchurch.Of these, 6 are in Auckland, 2 inChristchurch and the remainderin Wellington.As of that date, CreativeNew Zealand’s senior managementteam consists of:Stephen WainwrightChief ExecutiveElizabeth BealeManager Planning, Performanceand Stakeholder RelationsCath CardiffManager Arts DevelopmentJane ClarkeManager Arts InfrastructureServicesAngus EvisonManager Business ServicesMuriwai IhakaraManager Māori Arts ServicesCarla van ZonManager InternationalArts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 25

Consultation and reportingto the Minister Ngā kōrero me ngāwhakatakoranga ki te MinitaCreative New Zealand is anautonomous Crown entity, and theCrown Entities Act 2004 requiresus to have regard to governmentpolicy when the Minister forArts, Culture and Heritagedirects us to do so. However, theMinister may not give directionsto the Arts Council in relation tocultural matters (Arts Council ofNew Zealand Toi Aotearoa Act,section 7(3)).Creative New Zealand will informthe Minister about any proposalsto significantly change the waywe invest in the arts sector andwill, as appropriate, engage theMinister in discussion of thoseproposals. We must also complywith the reporting requirementsin the Crown Entities Act andwith specific expectations that theMinister communicates to us.The Minister also contributes to thesetting of Creative New Zealand’sstrategic direction through thedevelopment of the Strategic Planand Statement of Intent. TheCrown Entities Act requires us toreport annually to Parliament onour performance as judged againstour Statement of Intent. We alsoprovide six-monthly reports tothe Minister on progress towardsachieving our performancemeasures.26 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Part 2: Medium-termOutlook 2010–2013Te titiro ki te waenganui o te wā 2010–2013Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 27

Our operating environmentTō mātou ao mahiThis section gives anoverview of the contextin which CreativeNew Zealand operates.It includes information aboutthe long-term drivers of change,both internal and external to ourorganisation.Government’s goalsfor the economy andthe state sectorThis Government aims toensure value for money for allNew Zealanders, and is seekingto grow the economy to delivergreater prosperity, security andopportunity to all New Zealanders.Creative New Zealand will ensurethat our programmes are effectiveand provide good value formoney. We will also adhere to theGovernment’s expectations for payand employment conditions in thestate sector.Goals of the arts, cultureand heritage sectorCreative New Zealand alsocontributes to, and is guided by,the goals of the Ministry for Cultureand Heritage and those of the widerarts, culture and heritage sector:Long-term goal of the sector• A thriving cultureMedium-term goals(“Outcomes”)• Thriving producers and healthycultural and sports organisations(Create)• Increased preservation ofNew Zealand’s culture, heritageand traditions (Preserve)• New Zealanders increasinglyvaluing their arts, heritage,broadcasting, and sport (Value)Proposed changes to ourgovernance structureIn February 2010 the Ministerfor Arts, Culture and Heritageannounced proposals forstreamlining CreativeNew Zealand’s governancestructure.The Minister proposes to replacethe Arts Council, the Arts Board,Te Waka Toi and the Pacific ArtsCommittee with a single governingboard, which would be responsiblefor policy, strategy and allocatingfunding. The changes wouldimprove Creative New Zealand’seffectiveness and free up resourcesthat would be better directed toartists.The proposals follow a review ofthe Arts Council of New ZealandToi Aotearoa Act, carried out by theMinistry for Culture and Heritage,working with Creative New Zealand,Te Puni Kōkiri and the Ministry ofPacific Island Affairs. The reviewalso included targeted consultationwith the Māori and Pacific artssectors.It is hoped that new legislationwill be introduced in 2010 toimplement the changes.The changes are not expected tomaterially affect those who receivefunding or who access CreativeNew Zealand’s services.Impact of theeconomic climateThe difficult economic times havenot reduced New Zealanders’appetite for the arts. There has,however, been pressure on thefunding available – in particularfrom investment-based trustssuch as the ASB CommunityTrust, which is a major funder ofarts organisations in Auckland.Securing corporate sponsorshipremains challenging for artsorganisations.Creative New Zealand receivesapproximately 60 percent of itsfunding from lottery profits,through the New Zealand Lottery28 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Grants Board (NZLGB). Althoughlottery profits do not appear to beaffected by the current economicconditions, they are variable, andtherefore our funding from thissource may fluctuate from yearto year. Further, because of theGovernment’s fiscal position weare not expecting an increase ingovernment funding over the nextthree to five years.Creative New Zealand’s abilityto increase funding to the sectorin the short- to medium-termwill therefore be constrained byuncertainty in NZLGB funding andby static government funding.Overall, conditions for the artssector, as for many sectors, willcontinue to be challenging over thecoming years.Auckland regional fundingArts organisations that rely onfunding from local authoritiesin Auckland face additionaluncertainty with the transition toregional governance there.Review of RecurrentlyFunded OrganisationsportfolioIn 2009/10 Creative New Zealandbegan a review of its portfolio ofRecurrently Funded Organisations(RFOs). Reviews have already beencompleted for our other two mainfunding programmes – ContestableFunding and the CreativeCommunities Scheme.The RFO review will establishhow well our investment inexisting RFOs is meeting ourpriorities. The review willproduce recommendations forimprovements in the processesused, in the composition of theRFO portfolio, and in investmentlevels.The review is due to be completedin mid-2010. Decisions coming outof the review will be implementedfrom 1 January 2012.Settlement of historicalTreaty of Waitangi claimsAs iwi engage with the WaitangiTribunal, treaty settlementswill allow them to put their ownstrategies in place for the longtermdevelopment of the arts.Funds from these settlements arelikely to assist heritage arts such asKey Facts• 79% of New Zealandersbelieve the arts shouldreceive public funding• 79% believe the artshelp define who we areas New Zealanders• 76% believe that the artsare strong in New Zealand• Almost half the populationaged 15 and older (48%)actively participate in thearts in New Zealand• Almost a quarter of thepopulation (23%) havecreated original works ofart using a computerSource: New Zealandersand the arts: Attitudes,attendance and participationin 2008 (April 2009),http://www.creativenz.govt.nzArts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 29

marae artworks, carving, tukutukuand kōwhaiwhai, and oral arts suchas whai kōrero and karanga.Iwi are also collaborating moreclosely with partners to realiseshared artistic visions. Thisincludes not only CreativeNew Zealand, but also othergovernment agencies andinternational partners.Demand for CreativeNew Zealand fundingWe expect demand for our fundingto increase over the next threeyears as the arts sectors becomemore aware of our ContestableFunding programme and itsgreater flexibility, and also becausethere will be less communitytrustfunding available for artsorganisations.Creative New Zealand invested$32.865 million in artists,practitioners and arts organisationsin 2008/09 through a range ofprogrammes, compared with$31.289 million in the previousyear. Figure 1 below shows that ourspending on grants and initiativessince 2001/02 has been increasing,while operating costs haveremained relatively constant.Figure 1. Trends in grants / initiatives and operating costs$40,000,00090%$35,000,000$30,000,000$25,000,000$20,000,000$15,000,000$10,000,000$5,000,00080%70%60%50%40%30%20%10%$00%2009/102008/092007/082006/072005/062004/052003/042002/032001/02Actual operating costsBudget operating costsActual grants and initiativesBudget grants and initiativesActual grants and initiatives as % of total expenditureBudget grants and initiatives as % of total expenditureActual operating costs as % of total expenditureBudget operating costs as % of total expenditure30 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Our operating intentions2010–2013Te whakatinana i ngā mahi 2010–2013This section explainsCreative New Zealand’sperformance storyand our operatingintentions for the nextthree years.It sets out our four long-term“outcomes” and the “impacts”(short- to medium-term goals)for each outcome, and it specifieskey indicators of whether weare achieving each outcome andimpact.Figure 2 on page 32 shows the linksbetween our outcomes, impacts andoutputs. It also shows how theserelate to the Vision set out in ourStrategic Plan, and also to the goaland outcomes of the wider culturalsector.Our Strategic Plan 2010–2013, whichpresents our strategic direction forthe next three years, is on page 5.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 31

Figure 2. Creative New Zealand’s outcomes, impacts and outputsMinistry forCulture andHeritageSector goalA thriving cultureMinistry forCulture andHeritageSector outcomesThriving producers andhealthy cultural and sportsorganisations (Create)Increased preservation ofNew Zealand’s culture, heritageand traditions (Preserve)New Zealanders increasinglyvaluing their arts, heritage,broadcasting and sport (Value)CreativeNew Zealand’svision What is theultimate change wewant to see?Strong and dynamic New Zealand arts, valued in Aotearoa and internationallyOutcomes(5–10 yrs)What are ourgoals forNew Zealanders?New Zealandersparticipate inthe artsHigh-qualityNew Zealand artis developedNew Zealandersexperience highqualityartsNew Zealand arts gaininternational successImpacts(3–5 yrs)What differenceare we making forNew Zealanders?1. Mäori communitiespreserve, develop andtransmit their culturaltraditions and artistry.2. Pacific communitiespreserve, developand transmit theircustomary artisticpractices.3. New Zealand’s diversecommunities participatein and develop the arts.1. Artists, practitionersand arts organisationswith potential developtheir skills and practice.2. Artists, practitionersand arts organisationsthat are acknowledgedfor the quality of theirwork are supported.3. High-quality andinnovative new workis developed, includingMäori and Pacificwork and the works ofNew Zealand’s diversecultures.1. Artists, practitionersand arts organisationsdeliver high-qualityarts experiences toNew Zealanders.2. New Zealand audienceshave access to diversearts experiences.3. Artists, practitionersand arts organisationsdevelop skills andcapabilities to deliverwork and to increaseand diversify theiraudiences.1. Artists, practitionersand arts organisationsdevelop skillsand capabilitiesfor engaginginternationally.2. International marketsand audiences forNew Zealand art aredeveloped.3. Distinctive, highquality,internationallyviable art is presentedoverseas.OutputsWhat servicesdo we provide?AdvocacyCapability-buildingFundingInputsWhat resourcesdo we need toprovide ourservices?Staff andspecialisedskillsFinancialresourcesGrant-makingsystems andprocessesInformationand expertknowledgeVisionStrategicplanning32 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

OUTCOME 1:New Zealandersparticipate inthe artsFigure 3: Average total fundingallocated to Outcome 1$5.199millionWhat are weseeking to achieve?As a key funder of communityarts, Creative New Zealandprovides opportunities for allNew Zealanders to participate inthe arts for the benefit of theircommunities. By supporting awide range of arts experiences wecontribute to local communities’engagement with the arts. Akey element in this outcome isproviding opportunities for Māori,Pacific peoples and diverse ethnicgroups to engage in their arts.Current levelsof participationIn 2005 and again in 2008,Creative New Zealand measuredparticipation in the arts throughthe New Zealanders and the artsresearch. 8 The results indicate thatNew Zealanders are extensivelyengaged with the arts.As Figure 4 shows, around half thepopulation aged 15 or over (48%)have actively participated in avisual, performing, written, Māorior Pacific artform in the past12 months. 9 This is consistentwith the overall level ofparticipation for 2005 (50%).8 New Zealanders and the arts: Attitudes,attendance and participation – Formore information about this research,which was carried out in 2005 and2008, visit www.creativenz.govt.nz9 “Participation” means the directinvolvement of individuals, groupsand/or communities in the making orpresentation of art.Figure 4. Overallparticipation in the artsShowing the proportion of respondentswho have actively participated in anarts event in the past 12 months.2005200850% 50%52% 48%Participated in nothingParticipated in somethingBase: All respondents(n 2005 = 1,375, n 2008 = 2,099)Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 33

Our work overthe past three yearsFigure 5. Mäori, Pacific and community projects completed2006/07– 2008/09From 2006/07 to 2008/09 a totalof 7,783 projects supporting Māoriand Pacific arts and a range ofcommunity arts were completedwith our support (see Figure 5right). Those projects were spreadthroughout New Zealand, as shownby Figure 6.Mäori artsProjects Completed233433Amount funding $580,106403,177416,469In February 2009 the newContestable Funding programmeintroduced the opportunity forpeople to apply for funding tosupport community arts activitieswith a broader national or regionalsignificance. Creative New Zealandis working to raise the profile ofthis funding in targeted regions.Pacific artsProjects CompletedCommunity artsProjects Completed141413Amount funding $Amount funding $68,48568,88579,3202,4632,5462,6432,732,1732,719,0312,728,0452006/072007/082008/09Note: From 2006/07 to 2008/09, support for community arts projects was availableonly through the Creative Communities Scheme. From the 2009/10 year, funding will beavailable through the Contestable Funding programme for community arts participation.34 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Figure 6. Mäori and Pacific arts projects, by regionNorthland7Waikato20Rotorua7Taranaki2Manawatu-Wanganui7Nelson-Marlborough2Auckland30Bay of Plenty14Gisborne11Wairoa3Taupo3Hawkes Bay2Wellington14Canterbury6National 3Total 131Notes1 Statistics on the regional coverage ofprojects completed through the CreativeCommunities Scheme have not beencollated.2 Improved monitoring and reportingprocesses will be introduced in 2010 sothat Creative New Zealand can betterunderstand the impact of the CreativeCommunities Scheme on participationin community arts.3 Funding under the CreativeCommunities Scheme is allocated tolocal authorities through a populationbasedformula.Our key partners inachieving Outcome 1As well as Creative New Zealand,a large number of otherorganisations are involved infunding local or community artsactivities. This includes communityand gaming trusts, territorialauthorities, iwi, and localbusinesses.The Creative CommunitiesScheme, which involves apartnership between CreativeNew Zealand and local government,is one of the key ways in whichwe support opportunities forNew Zealanders to participatein the arts. We reviewed thisscheme in 2008/09 andhave been working with localadministrators in 2009/10 tointroduce improvements, whichwill take effect from 1 July 2010.New funding criteria will beintroduced in 2010/11: these willencourage broad communityinvolvement and greater diversity,and will also specifically encourageyoung people’s participation incommunity arts.“Impacts” (short- tomedium-term goals)associated with Outcome 1Over the next three years, CreativeNew Zealand will work to increaseNew Zealanders’ participationin the arts by seeking to make adifference in the following ways:• Māori communities preserve,develop and transmit theircultural traditions and artistry• Pacific communities preserve,develop and transmit theircustomary artistic practices• New Zealand’s diversecommunities participate in anddevelop the arts.As those three impacts reflect,Creative New Zealand recognisesthat New Zealand is a vibrant,multicultural society with abroadening demographic profile.We are committed to supporting adiverse range of community artsacross the regions.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 35

What will we doto achieve Outcome 1?These are our priorities over2010–13:• Supporting the best – We willsupport the best projects andpeople through ContestableFunding. This includes Māoriand Pacific peoples, who as wellas being able to apply to the ArtsBoard for funding can also applyto, respectively, Te Waka Toi andthe Pacific Arts Committee.• Improving the CreativeCommunities Scheme –Through better fundingprocesses and betterrelationships with localauthorities we will ensure thattargeting of the funding underthis scheme is efficient andeffective. These changes arebased on the recommendationscoming out of the 2009/10review of the scheme.• Toi Ake – We will supportthe preservation anddevelopment of toi Māori forhapū and iwi through the “ToiAke” Contestable Fundingprogramme.• Tohunga Tukunga – Wewill provide tohunga withopportunities to share theirknowledge and skills withsenior Māori artists through theTohunga Tukunga programme.• Māori and Pacific artsresearch – From 2010/11, wewill implement the outcomesof the research into the healthof Māori and Pacific heritagearts, which was completed in2008/09 and 2009/10. The aimof the research was to recognisethe specific needs of Māoriand Pacific communities andto understand how CreativeNew Zealand can best target itsfunding and offer capabilitybuildingprogrammes. Theresearch showed that the healthof heritage arts varies fromregion to region and acrossdifferent artforms. The resultsof the research will informour decisions on funding andprogramme development.For performance measures andbudgets for individual programmesin 2010–13, see Part 3 of thisStatement of Intent.How will we demonstrate success in achieving Outcome 1?Success in achieving Outcome 1 and its related impacts will be measured through the Contestable Fundingprogramme and the Creative Communities Scheme.Short- tomedium-termImpact Performance indicator Performance to dateMäori communities preserve,develop and transmit theircultural traditions and artistryPacific communities preserve,develop and transmit theircustomary artistic practicesNew Zealand’s diversecommunities participate inand develop the artsMäori, Pacific and diverseworks delivered pergeographical regionSee Figure 5 for Mäori,Pacific and communityprojects completedSee Figure 6 for Mäoriand Pacific projectscompleted per regionDesired trendfor 2010–13Maintainor increaseLong-termNew Zealanders participatein the artsLevel of New Zealanders’participation in the artsSee Figure 4 for overallparticipation in the artsMaintainor increaseNote: Creative New Zealand evaluates each project when a report is submitted to us after the project is completed.36 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

OUTCOME 2:High-qualityNew Zealand artis developedFigure 7. Average totalfunding allocated to Outcome 2Our work over the pastthree yearsFrom 2006/07 to 2008/09 a totalof 571 new high-quality worksacross all artforms were completedwith support from our ContestableFunding programmes (see Figure 8below).In February 2009 we introducednew quality-assessment criteria,aimed at identifying andsupporting innovative, highqualityart and artists.Figure 8. High-quality works completed 2006/07–2008/09$9.513millionArts Board New Work ProgrammeProjects Completed Amount funding $What are weseeking to achieve?86991011,408,1211,786,6012,293,310New Zealand arts depend on thecreativity of artists. CreativeNew Zealand seeks to ensurethat New Zealand artists andarts organisations have theopportunity to fulfil their potentialby continually developing theirartforms, the quality of their work,and their skills and capabilities.Creative New Zealand is committedto developing and strengtheningthe body of New Zealand artisticwork. As we are the only nationalarts development organisationallocating funding across allartforms, this is a key role.Screen Innovation Production FundProjects Completed Amount funding $4441682,053592,05561865,995Te Waka Toi New Work ProgrammeProjects Completed Amount funding $18258,58122339,53522368,379Pacific Arts Committee Arts Development ProgrammeProjects Completed Amount funding $2006/0719130,2002007/0826188,3102008/0932267,298Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 37

In the past three years CreativeNew Zealand allocated morethan $1.7 million each year tosupport creative-developmentand professional-developmentopportunities for artists (seeFigure 9 right). Over the next threeyears we will continue to offerdevelopment support to establishedand emerging artists through arange of programmes (see thepriorities set out on page 39under “What will we do to achieveOutcome 2?”).Figure 9. Creative-development and professional-developmentopportunities, 2006/07–2008/09Creative and Professional Development ProgrammeProjects CompletedResidencies, bursaries, scholarships and awardsProjects Completed1039413115Amount funding $Amount funding $1,418,8021,492,8961,264,334460,000“Impacts” (short- tomedium-term goals)associated with Outcome 2913339,900372,900Over the next three years CreativeNew Zealand seeks to make adifference in the following ways:• Artists, practitioners and artsorganisations with potentialdevelop their skills and practice• Artists, practitioners andarts organisations that areacknowledged for the qualityof their work are supported• High-quality and innovativenew work is developed,including Māori and Pacific workand the works of New Zealand’sdiverse culturesNote: Projects completed include the annualTe Waka Toi and Arts Pasifika awards andthe Prime Minister’s Awards for LiteraryAchievement.2006/072007/082008/0938 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

These short- to medium-termimpacts aim to develop artworksand artforms, to assist artists todevelop professional skills, and toencourage artists to experiment, beinnovative and take risks.What will we doto achieve Outcome 2?These are our priorities over2010–13:• Supporting innovation andquality – We will supportinnovative and high-qualityart and artists throughthe Contestable FundingProgramme, and we will monitorthe results so that we betterunderstand the impact of thisfunding.bursaries and scholarships)we will assist artists,practitioners and artsorganisations to build the skillsand capabilities needed togenerate high-quality work.• Review of Recurrently FundedOrganisations (RFOs) – We willcomplete the review of the RFOportfolio in 2009/10, which willgive us a better understandingof the contribution theseorganisations make to Outcome2, and we will implement thedecisions coming out of thatreview.For performance measures andbudgets for individual programmesin 2010–13, see Part 3 of thisStatement of Intent.• Self-assessment for artists– We will work to ensure thatartists, practitioners andorganisations that are fundedthrough Contestable Fundingare capable of evaluatingtheir work through a selfassessmentprocess, as partof the Contestable Fundingevaluation process.• Developing skills andcapabilities – Through SpecialOpportunities (residencies,Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 39

How will we demonstrate success in achieving Outcome 2?Until the review of the portfolio of Recurrently Funded Organisations is completed, success in achieving Outcome 2and its related impacts will be measured through the Contestable Funding programme only.Short- tomedium-termLong-termImpact Performance indicator Performance to dateArtists, practitioners andarts organisations withpotential develop theirskills and practiceArtists, practitioners andarts organisations thatare acknowledged for thequality of their work aresupportedHigh-quality andinnovative new workis developed, includingMäori and Pacificwork and the works ofNew Zealand’s diverseculturesHigh-qualityNew Zealand art isdevelopedArtists are satisfactorilycompleting creative- andprofessional- developmentopportunitiesArtists are producing highqualityand innovative newworks, including Mäoriand Pacific works and theworks of diverse culturesHigh-quality New Zealandart is developedSee Figure 9 for projects,residencies, bursaries, andscholarships completedSee Figure 8 for newworks completedSee Figure 8 for newworks completedDesired trendfor 2010–13Maintainor increaseMaintainor increaseMaintainor increase40 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

OUTCOME 3:New Zealandersexperience highqualityartsFigure 10: Average total fundingallocated to Outcome 3$16.585millionWhat are weseeking to achieve?Creative New Zealand aims tobroaden the opportunities forNew Zealanders to access the arts.We will do this by supporting artsexperiences across the country andby contributing to the organisationsthat provide them.The delivery of Māori and Pacificart and the arts of New Zealand’sdiverse cultures is a key componentof this outcome, as is increasingthe geographic distribution of artsexperiences.Current levels ofattendance at arts eventsAs the 2008 New Zealandersand the arts research showed,New Zealanders have a healthyappetite for arts experiences.The survey asked New Zealanderswhether they had attended anyvisual, performing, written, Māorior Pacific arts event in the past 12months. As Figure 11 shows, mostNew Zealanders (83%) have doneso. This is consistent with theoverall level of attendance shownby the 2005 survey (84%).The survey points to higher thanaverage attendance for Māori andPacific peoples (see Table 1 onpage 42). In total, 89% of Māoriand 86% of Pacific peoplesattended at least one arts event inthe past 12 months.The indications that the researchprovides of New Zealanders’demand for the arts will informCreative New Zealand’s planningand policy development over thenext three years.Figure 11. Overallattendance at arts eventsRespondents were asked if theyhad attended an arts event in thepast 12 months.2005200884%83%16%17%Attended nothingAttended somethingBase: All respondents (n 2005=1,375,n 2008=2,099)Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 41

Table 1. Attendance, by ethnicityAttendanceTotalNew ZealandEuropeanMäoriPacificIsland Asian OtherTotal (n=) 2,099 1,495 243 176 205 157Attended nothing 17% 18% 12% 14% 24% 12%Low attendance 20% 20% 18% 20% 24% 20%Medium attendance 29% 30% 23% 27% 32% 31%High attendance 34% 32% 48% 39% 21% 37%“Impacts” (short- tomedium-term goals)associated with Outcome 3Over the next three years CreativeNew Zealand seeks to make adifference in the following ways:• Artists, practitioners and artsorganisations deliver highqualityarts experiences toNew Zealanders• New Zealand audienceshave access to diverse artsexperiences• Artists, practitioners and artsorganisations develop skillsand capabilities to deliver workand increase and diversify theiraudiences.Providing access to artsexperiences throughoutNew ZealandOur short- to medium-termimpacts focus on deliveringdiverse work across the countryso that New Zealanders in allregions have the opportunity toexperience the arts. Attendancefor each region is not captured inthe New Zealanders and the artsresearch, but Creative New Zealandis aware that New Zealandersin metropolitan centres havefrequent opportunities to accessarts experiences that are not readilyavailable to New Zealanders livingin the regions.Many organisations that receiveongoing (“recurrent”) fundingfrom Creative New Zealandwill provide opportunities forNew Zealanders to access highqualityarts experiences, not only inmain centres but also in provincialand rural areas. Twenty-fiveRecurrently Funded Organisations(RFOs) toured their work outsidethe main centres in 2009.As part of implementing ourDistribution Strategy, CreativeNew Zealand will introduce aDistribution Skills CapabilityCourse in 2010/11. This willprovide selected arts practitionerswith the knowledge and skillsnecessary to successfully organisethe touring of performing artworksand writers within New Zealand.Figure 12 shows investmentin artists across New Zealandthrough the Contestable Fundingprogramme in 2008/09.42 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Figure 12. Investment in artists across New Zealandthrough the Contestable Funding programme in 2008/09Northland $191,0082.14%Waikato $150,0551.68%Taranaki $249,7622.80%Manawatu-Wanganui $94,0661.05%Nelson-Marlborough $110,2181.24%Auckland $2,888,44932.38%Bay of Plenty $297,0803.33%Gisborne $80,7900.91%Hawkes Bay $218,6632.45%Wellington $1,555,66517.44%West Coast $98,7500.27%Canterbury $818,6349.18%Otago $285,8863.20%Southland $11,2180.13%National $668,546 7.49%Overseas $1,276,820 14.31%Total $8,995,610 100%Audience developmentAudience development is a keypriority for Creative New Zealandand the organisations we supportover the next three years.Seven audience-developmentprogrammes were delivered in2008/09, with 178 participants intotal. The programmes assist artsorganisations to improve theirknowledge of existing audiences,and to build audiences and accessnew ones. Audience attendancenumbers are remaining stable inthe current economic climate (seeTable 2 right).Creative New Zealand willcontinue to deliver audiencedevelopmentinitiatives to artsorganisations, to encourage themto build dynamic and sustainableaudience relationships. We willalso continue to offer other adviceand capability-building initiativesto artists, practitioners and artsorganisations, including in theareas of leadership, governance,and internal organisational systemsand processes.Table 2. Total attendanceat Recurrently FundedOrganisations’ events,2007–2009YearTotalattendanceTotalfunding2007 773,266 $14,494,2002008 641,064 $15,186,7802009 656,519 $15,236,780Note: Recurrently Funded Organisationsreport attendance figures quarterly toCreative New Zealand.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 43

What will we doto achieve Outcome 3?These are our priorities over2010–13:• Review of Recurrently FundedOrganisations (RFOs) –Through our review of the RFOportfolio we will better align ourinvestments in RFOs with ouroutcomes and impacts.• Accessibility of RFOs’ work– We will support and workin partnership with RFOs toensure that their programmesof activities are accessible toas many New Zealanders aspossible.• Delivering arts experiencesthroughout New Zealand –We will give support, throughthe Contestable Fundingprogramme, to projects thatdeliver arts experiences tometropolitan, regional and ruralNew Zealanders.• Touring outside main centres– Through our DistributionStrategy we will invest in touringwork to increase opportunitiesfor New Zealanders outsidethe main centres to experiencehigh-quality work.• Audience development – Wewill build the capabilities ofartists and arts organisationsto develop new audiences andextend their existing audiences.For performance measures andbudgets for individual programmesin 2010–13, see Part 3 of thisStatement of Intent.How will we demonstrate success in achieving Outcome 3?Success in achieving Outcome 3 and its related impacts will be measured through the Recurrent Funding andContestable Funding programmes.Short- tomedium-termLong-termImpact Performance Indicator Performance to dateArtists, practitionersand arts organisationsdeliver high-qualityarts experiences toNew ZealandersNew Zealand audienceshave access to diversearts experiencesArtists, practitioners andarts organisations developskills and capabilities todeliver work and increaseand diversify theiraudiencesNew Zealanders experiencehigh-quality artsHigh-quality artsexperiences are availableacross New ZealandDiverse arts experiencesare available acrossNew ZealandLevel of audienceattendance at eventsfunded by CreativeNew ZealandLevel of New Zealanders’attendance in the artsSee Figure 12 for theopportunities supportedby region through theContestable Fundingprogramme in 2008/09See Figure 6 under Outcome1 for Mäori and Pacific artsexperiences available acrossNew ZealandSee Table 2 on on page 43for attendance at RecurrentlyFunded Organisations’events, 2007–09See Figure 11 for overallattendance at arts eventsDesired trendfor 2010–13Maintainor increaseMaintainor increaseMaintainor increaseMaintainor increase44 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

OUTCOME 4:New Zealand artsgain internationalsuccessFigure 13. Average total fundingallocated to Outcome 4$2.270millionWhat are weseeking to achieve?Working collaboratively with ourpartners, Creative New Zealandaims to position the best ofNew Zealand arts and artists toachieve lasting success in targetoverseas markets. 10International exposure allowsartists to develop their practicethrough observing and interactingwith international colleagues.International success can alsohelp develop New Zealand artsdomestically, by inspiring otherNew Zealand artists to raise theirsights and by giving a better10 “Artists” includes ensembles andcompanies.understanding of internationalstandards. Public appreciationof the arts in New Zealand isalso likely to increase the morethe public is aware of, and hasexperience of our internationallysuccessful artists.Our work over thepast three yearsNew Zealand’s involvement in theVenice Biennale 2009 and the 10thFestival of Pacific Arts 2008 werekey events for Creative New Zealandin 2008/09.The Venice Biennale is thecornerstone of the internationalpresentation of New Zealand’svisual arts, with 114,556 visits toboth New Zealand exhibitions. 11The Festival of Pacific Arts isthe largest and most significantinternational forum for indigenouspeoples to share and exchange theircultures. Both events providedsignificant opportunities forNew Zealand artists to be seen andheard internationally. Visit ourwebsite at www.creativenz.govt.nzfor highlights from these events.11 New Zealand’s official presence fromJune to November 2009 at the VeniceBiennale consisted of two exhibitions byJudy Millar and Francis Upritchard.In 2008/09 more than 40international visitors participatedin the Te Manu Ka Tau, FlyingFriends International Visitorsprogramme, which was establishedto develop international marketsand audiences by bringingpresenters, directors, curators,publishers and other influentialindividuals to New Zealand. Morethan 40 international engagementsfor New Zealand artists weresecured as a result of Te Manu KaTau programmes for literature,visual arts and performing arts.“Impacts” (short- tomedium-term goals)associated with Outcome 4Over the next three years, CreativeNew Zealand seeks to make adifference in the following ways:• Distinctive, high-quality,internationally viable art ispresented overseas• International markets andaudiences for New Zealand artare developed• Artists, practitioners and artsorganisations develop skillsand capabilities for engaginginternationally.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 45

What will we doto achieve Outcome 4?These are our priorities over2010–13:• Who is internationally viable?– We will identify artists who areready to work in an internationalcontext or who have the potentialfor this.• Developing the best – We willhelp to develop high-qualityartists and internationally viablepractice or work.• Support for internationalperformances and exhibits– We will provide funding forartists to perform or exhibitinternationally or for workto be performed or exhibitedinternationally.• Capability-building – We willprovide initiatives to build thecapability of artists to achieveinternational success.• Markets and audiences– We will develop priorityinternational markets andaudiences for New Zealand art.• International representation– We will help arts organisationsobtain representation inidentified internationalmarkets.• Promotion – We will promotethe internationally viable artistsand organisations we haveidentified.• Review of Recurrently FundedOrganisations (RFOs) – We willcomplete the review of the RFOportfolio in 2009/10, which willgive us a better understandingof the contribution theseorganisations make to Outcome4, and we will implement thedecisions coming out of thatreview.The International StrategyOur International Strategy, whichwas implemented in 2008/09,aims to help New Zealand artistsand arts organisations take theirwork to an international audience.The strategy will determine ourinternational activities and fundingover 2010–13.The strategy has three inter-relatedgoals (which correspond to thethree short- to medium-termimpacts for Outcome 4):• to support the developmentand presentation of distinctive,high-quality, internationallyviable art• to develop international marketsand audiences for New Zealandart• to build the skills and capabilityof the arts sector for engaginginternationally.These goals provide a focusfor Creative New Zealand’sinternational activities, and ensurethat our funding and resources aredirected towards the best results.46 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

How will we demonstrate success in achieving Outcome 4?Success in achieving Outcome 4 and its related impacts will be measured through the International FundingProgramme and the International Capability-Building Programme which include market-development activities.Short- tomedium-termImpactDistinctive, high-quality, internationallyviable art is presented overseasInternational markets and audiences forNew Zealand art are developedArtists, practitioners and artsorganisations develop skills andcapabilities for engaging internationallyPerformance indicatorNew Zealand artists and artworks arepresented at key international events andmarketsNew Zealand artists are selected for orinvited to events in key internationalmarketsDesired trendfor 2010–13IncreaseIncreaseLong-termNew Zealand art gains internationalsuccessArtists and artworks presented at keyinternational events and markets receivepositive critical acclaim and invitations forfurther international engagementIncreaseNote: The International Team was established in early 2008. Creative New Zealand is developingbaseline data in 2010 to support the performance indicators for Outcome 4.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 47

Managing our organisationalhealth Te whakahaere i te ora o te tariCreative New Zealandhas establisheda fifth outcome,Organisationalstrength, underwhich we manage ourorganisational healthand capability.This strategic outcome is alignedwith the Equal EmploymentOpportunities principles and itrecognises that our organisationalculture and our people, systems,processes, decision-makingand relationships are criticalin enabling us to achieve ouroutcomes.Creative New Zealand is currentlyimplementing a BalancedScorecard to provide broader, moremeaningful information aboutour performance. We will use theBalanced Scorecard to measureour organisational health from1 July 2010.Building capabilityin our organisationThe following capability-buildingactivities are planned for the2010/11 year:Best people andorganisational culture• Staff will be offered trainingand development acrossa range of areas, includingsoftware, financial reporting,communications andpresentations, and projectmanagement.Best relationships• We will develop a stakeholdermanagement strategy and anadvocacy strategy to identify:--who our key partners are forthe next three years--how we will develop ourrelationships with them, and--how we can facilitateinformation-sharing andnetworking between artsorganisations with a strongadvocacy focus.Best thinking and decisions• We will complete and implementa review of the portfolioof Recurrently FundedOrganisations (RFOs), toensure that the funding providedthrough this programmeis targeted effectively andefficiently.• The following actions over thenext three years will ensurethat we make the best decisionsthrough our programmes:--We will implement theoutcomes of research into thehealth of Māori and Pacificheritage arts--We will develop a communityarts policy--We will progress a projecton young people and thearts, which will look atarts education and artsin education, and youngemerging artists--We will develop a digital artsstrategy--We will review our CulturalDiversity Strategy, anddevelop a new diversitystrategy--We will review our capabilitybuildingprogrammes• We will implement a BalancedScorecard, a new tool to providebroader, more meaningfulinformation about ourperformance.48 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Best governance andmanagement• Members of the Arts Council,the arts boards and the PacificArts Committee will receive thenecessary training, developmentand other support to governCreative New Zealand effectivelyand make effective fundingdecisions.• We will undertake a programmeof work to ensure a smoothtransition to the proposed newgovernance structure, assumingnew legislation is passed.Best structures and processes• We will develop andimplement an information andcommunication technologystrategy to improve theefficiency, effectiveness andaccessibility of our services.This will include upgrading ourinformation systems for grantmanagement.Being a good employerCreative New Zealand will meet its“good employer” obligations (insection 118 of the Crown EntitiesAct 2004) by maintaining apersonnel policy that requires:• good and safe workingconditions• an Equal EmploymentOpportunities (EEO)programme• the impartial selection ofsuitably qualified people forappointment• recognition of:--the aims and aspirations ofMāori--the employmentrequirements of Māori--the need for involvement ofMāori as employees• opportunities for individualemployees to enhance theirabilities• recognition of the aims andaspirations of ethnic or minoritygroups, and recognition of theiremployment requirements andcultural differences• recognition of the employmentrequirements of women• recognition of the employmentrequirements of people withdisabilities.Improving ourperformanceCreative New Zealand is committedto ensuring that our programmesare effective and provide goodvalue for money. We have identifiedseveral opportunities to improveour performance and maximise theefficiency of our operations overthe next three years:• Better governance structure– Streamlining our governancestructure (see page 28) willprovide a key opportunity todeliver greater efficiencies.The shift to a single board willresult in direct savings in ouroperating costs (estimated at$200,000 each year), as wellas freeing up staff resources tofocus on delivering services tothe arts sector.• Monitoring and evaluation– We will further improve ourmonitoring and evaluationprocesses. We will focus firston Contestable Funding grants,introducing improvements thatcame out of the major reviewof this programme completedin 2009. To improve ourperformance we will developbetter measures of quality, togive us a clearer understandingof the impacts of our fundingdecisions.• Web technology – We will alsowork to improve our use ofweb technology, particularlyfor dealing with fundingapplications and externalArts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 49

assessments. This increasedautomation will reduce ouradministration costs, as well asreducing the time it takes us toprocess applications.• Better performanceinformation – We are currentlyimplementing a new tool, theBalanced Scorecard, to measureour organisational health from1 July 2010. This will providebroader and more meaningfulinformation about ourperformance, and a better basisfor us to assess the impact of ourinvestment.Managing ourcapital assetsCreative New Zealand’s significantcapital assets include:• part-ownership of the OldPublic Trust Building, 131–135Lambton Quay, Wellington• a 199-piece collection ofNew Zealand art and craft work,and• computer equipment used in theorganisation’s operations.The Old Public Trust BuildingThis building, which is the siteof Creative New Zealand’s mainWellington Office, is registered asa Category 1 Historic Place by theNew Zealand Historic Places TrustPouhere Taonga and is subject to aHeritage Order.We acknowledge the need toadopt the highest professionalconservation standards to protectand preserve this building. Weare aware that the WellingtonCity Council and the New ZealandHistoric Places Trust encourageorganisations to manage heritageresources proactively, and we haveprepared a conservation plan and amaintenance plan to assist in this.The value of Creative New Zealand’sownership interest in the building,as reported in the 30 June 2009Annual Report, was $4.727 million.The building is insured andadministered by the Old PublicTrust Building Body Corporate.Our art collectionCreative New Zealand’s artcollection consists mostly of workscollected in the 1970s and 1980s.Currently we are not actively addingto or removing items from thecollection.The collection consists of 199works. The value of the collectionwas reported at $2.339 millionin the 30 June 2009 AnnualReport. The collection is insured,professionally managed, andindependently valued every threeyears.Most of the collection is ondisplay at the Wellington Office,with some works on display inour Christchurch and AucklandOffices and some on loan to otherorganisations or to museumsand galleries. The Museum ofNew Zealand Te Papa Tongarewaholds some of the more significantpieces, including Colin McCahon’sLandscape theme and variations:Series B, valued at $1.2 million.Computer equipmentThe value of Creative New Zealand’scomputer equipment, as reportedin the 30 June 2009 Annual Report,was $0.846 million. All of theequipment is insured.We do not have a specialist inhouseInformation Technology(IT) department: all our keyinformation systems aremaintained and supported byexternal parties that are contractedthrough appropriate service-levelagreements.We operate a virtualised ITplatform.50 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Mitigating risksTe whakangawari ngā tūponoThe table below sets out the key risks for the next three years, and the strategies we will adopt to mitigate them:Risk type Description of risk Mitigation strategyOperational riskCompliance riskReputation riskTechnological riskThe risk of not delivering to strategicand business plansThe risk of failing to comply withlegislation and service-deliveryobligationsThe risk of losing the confidence andtrust of stakeholdersThe risk of IT resources andtechnology being inadequate to supportour operations and business continuity• Ensure operational plans are aligned withthe Strategic Plan 2010–13 and this Statementof Intent• Undertake quarterly reporting againstoperational plans• Report every two months on financial resultsto the Finance, Risk and Audit Committee(a committee of the Arts Council)• Carry out six-monthly compliance testing, andreport the findings to the Finance, Risk andAudit Committee• Enforce controls on governance, business andlegal compliance• Ensure prompt and effective communicationwith all stakeholders and the arts sector• Maintain a reputation for making soundgranting decisions• Annually review information systems andtechnology to support operations andbusiness continuityArts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 51

Part 3: Annual Outlook –Forecast Performance for thePeriod 1 July 2010–30 June2011 Ngā whakatutukinga ā tau tewāhanga 1 Hurae 2010–30 Hune 201152 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Forecast service performanceTe matapae whakatūtukitangaCreative New Zealand’s outputscontribute to the output classPromotion and Support of Arts andFilm. This is funded through VoteArts, Culture and Heritage and isadministered by the Ministry forCulture and Heritage. We receive$15,689,000 through Vote Arts,Culture and Heritage and a grant of$23,070,193 from the New ZealandLottery Grants Board. 1212 Funding from the New Zealand LotteryGrants Board is yet to be confirmed for2010/11.Our outputs describe the variousways in which we operate to achieveour outcomes. Three main outputareas contribute to the output classPromotion and Support of Arts andFilm in the 2010/11 year:Output 1. Funding for artists,practitioners and arts organisationsOutput 2. Capability-buildingfor artists, practitioners and artsorganisationsOutput 3. Advocacy for the artsThese three outputs have beendeveloped so as to reflect theoverall purpose of CreativeNew Zealand as stated in theArts Council of New Zealand ToiAotearoa Act 1994, which is to“encourage, promote, and supportthe arts in New Zealand for thebenefit of all New Zealanders”.The table below presents therevenue we expect to earn and theexpenses we propose to incur forkey activities contributing to thethree outputs.2010/11 Forecast 2011/12 Forecast 2012/13 ForecastRevenueGovernment Grant $15,689,000 $15,689,000 $15,689,000New Zealand Lottery Grants Board $23,070,913 $23,070,913 $23,070,913Other $1,394,076 $1,503,660 $1,503,660Total revenue $40,153,989 $40,263,573 $40,263,573ExpensesFundingRecurrent Funding Programme $17,321,788 $17,321,788 $17,051,788Contestable Funding Programmes 13 $10,045,767 $10,430,767 $10,045,767Creative Communities Scheme $2,789,500 $2,789,500 $2,789,500International Programme Funding $340,000 $340,000 $340,000Capability-building programmes 14 $1,402,000 $1,402,000 $1,402,000AdvocacyResearch and Strategy $350,000 $300,000 $400,000Total expenses 15 $32,249,055 $32,584,055 $32,029,05513 The Contestable Funding programme includes Distribution Strategy activities, the ToiAke Programme, the Independent Film Makers Fund, the Smash Palace CollaborationFund and residencies, bursaries and scholarships.14 Capability-building programmes includes International Market Development andDistribution Strategy activities.15 Not all activities are detailed in this section.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 53

OUTPUT 1:Funding for artists,practitioners andarts organisationsDescriptionCreative New Zealand providesfinancial assistance to artists,practitioners and arts organisationsand their projects. We do this in avariety of ways:• ongoing funding fororganisations that we haveinvited to apply for it• as grants in response toapplications that meet publishedcriteria• through initiatives establishedby the arts boards and the PacificArts Committee in response tospecific needs• by devolving funds to partnersfor them to distribute.The four key funding programmesare:• Recurrent Funding• Contestable Funding• International FundingProgramme, and• the Creative CommunitiesScheme.Output 1.1:Recurrent FundingDescriptionCreative New Zealand’s investmentin this programme supports thedevelopment of a sustainableinfrastructure in the arts sectorby funding key arts organisationsfor a fixed term. With our support,organisations are able to plan one,two or three-year programmes ofactivity.Arts organisations must be invitedto apply for Recurrent Fundingby the Arts Board or Te Waka Toi.To be invited, organisations mustbe closely aligned with CreativeNew Zealand’s outcomes, and havea proven track record of CreativeNew Zealand project funding(usually at least three years). Theymust also have strong governanceand management structures, anda reputation for delivering qualityarts activities or services.We regularly monitor theperformance of the organisationsthroughout the year, and wework with the organisations toimprove their performance, asdemonstrated under Output 2:Capability-building.Performance measuresCreative New Zealand is reviewingits portfolio of Recurrently FundedOrganisations. The review isexpected to be completed in mid-2010 with changes implementedfrom 1 January 2012. Theoutcomes of the review may affectperformance measures for the2012/13 financial year.54 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

QuantityNumber of organisationsthat are managed to deliverprogrammes of activityTotal performances,exhibitions and publicationspresented by organisationsQualityOrganisations’ performancesor services are assessedagainst quality criteriaNotes2008/09Actual2009/10EstimatedActual2010/11Forecast2011/12ForecastNote 1 36 35 35 35 352012/13ForecastNote 2 3,916 4,000 4,000 4,000 4,000Note 3100% oforganisationshaveperformancesor servicesassessedagainstqualitycriteria100% oforganisationshaveperformancesor servicesassessedagainstqualitycriteria100% oforganisationshaveperformancesor servicesassessedagainstqualitycriteria100% oforganisationshaveperformancesor servicesassessedagainstqualitycriteria100% oforganisationshaveperformancesor servicesassessedagainstqualitycriteriaProgrammes of activityare delivered in accordancewith funding agreementsTimelinessPayments are deliveredwithin agreed timeframesOrganisations meetcontractual obligationson timeNote 4 New measure New measure New measure New measure New measureNote 5 100% 100% 100% 100% 100%Note 6 New measure New measure New measure New measure New measureNotes1. This is an activity measure. However, it provides context for the Recurrent Fundingprogramme.2. This is an activity measure. However, it provides context for the Recurrent FundingProgramme. While Creative New Zealand does not have full control over the total number ofperformances, this measure is an indicator of good management of the organisations. Baselinedata will be developed in 2010.3. A new process for assessing organisations was implemented in early 2010. All organisationsself-assess the quality of their work against quality criteria set by Creative New Zealand.4. This performance measure has been introduced in 2009/10. Creative New Zealand managesand monitors the organisations to ensure that their forecast programmes of activity can beachieved. Baseline data will be developed in 2010.5. This measure is included to reflect the importance that Creative New Zealand places on timelypayments to the organisations.6. This performance measure has been introduced in 2009/10. Creative New Zealand managesand monitors the organisations to ensure that their forecast programmes of activity can beachieved within reasonable timeframes. Baseline data will be developed in 2010.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 55

Output 1.2:Contestable FundingDescriptionCreative New Zealand providesContestable Funding through arange of programmes, selecting thebest artists, practitioners or artsorganisations and their projects.Approximately 450 projects aresupported each year throughContestable Funding.A key aspect considered by theContestable Funding assessmentprocess is how effectively a projectwill achieve one or more of theresults (“impacts”) that CreativeNew Zealand is seeking.There are four types of grants orinvestments available throughContestable Funding: QuickResponse Grants, Arts Grants,Arts Investments and SectorInvestments.The quality of projects is assessedby Creative New Zealand staff.Arts Grants, Arts Investmentsand Sector Investments projectsare also assessed by external peerassessors. Projects are assessed forartistic quality on a seven-pointscale across four areas:1. The idea: What is it that youwant to do?2. The process: How will youcarry out the project and whereand when will it occur, and howwill you evaluate the completedproject?3. The people: Who is involved?4. The budget: How much will itcost?Where relevant, projects are alsoassessed for their contributionto cultural diversity, innovationand community arts participation.Projects are also assessed againsthow they meet one or more ofCreative New Zealand’s outcomes.The Contestable Fundingprogramme includes SpecialOpportunities (residencies,bursaries, scholarships) and theToi Ake Programme. Applicants areassessed against additional criteriathat are specific to these particularprogrammes. Information aboutCreative New Zealand’s ContestableFunding is available on our websiteat www.creativenz.govt.nz.56 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Performance measuresQuantityNotes2008/09Actual2009/10EstimatedActual2010/11Forecast2011/12Forecast2012/13ForecastNumber of projects funded Note 1 436 450 450–500 450–500 450–500Total performances, exhibitionsand publications presentedthrough the ContestableFunding programmeQualityNote 2 New measure New measure New measure New measure New measureProject acquittal rate Note 3 99% 99% 99% 99% 99%Projects meet or exceedexpectations as outlined inthe Contestable Funding guideTimelinessGrants are processedwithin published timeframesProjects are delivered ontime in accordance withfunding agreementsNotesNote 4 New measure New measure New measure New measure New measureNote 5 100% 100% 100% 100% 100%Note 6 New measure New measure New measure New measure New measure1. This is an activity measure and is demand driven. However, it provides context for theContestable Funding programme.2. This performance measure has been introduced in 2009/10. It aims to measure the finalresults of the Contestable Funding programme. Baseline data will be developed in 2010.3. A project is “acquitted: when a project completion report has been received. As a project maynot be completed in the same year as it is funded, the project acquittal rate presented hereincludes all contestable projects funded across previous financial years. Creative New Zealandhas improved acquittal rates since 2007/08 and, as the targets reflect, we will continue to focuson this area.4. This performance measure has been introduced in 2009/10. Creative New Zealand aims toimprove monitoring of the results of projects and better evaluate the quality of the works thathave been delivered. Baseline data will be developed in 2010.5. This performance measure has been included to reflect the importance that CreativeNew Zealand places on timely application and assessment processes. Funding timeframesare published in the Contestable Funding Guide which is published each year and availableat www.creativenz.govt.nz.6. This performance measure has been introduced in 2009/10. Creative New Zealand aimsto improve our monitoring of the outcomes of projects including when they are delivered.Baseline data will be developed in 2010.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 57

Output 1.3:Creative CommunitiesSchemeDescriptionEstablished in 1995, the CreativeCommunities Scheme is a smallgrantsscheme that supportscommunity arts projects andactivities that take place withinthe local area of a territorialauthority (TA). In contrast with theRecurrent Funding and ContestableFunding programmes, fundingunder the Creative CommunitiesScheme is devolved by CreativeNew Zealand to 73 local authorities,who administer the schemethemselves or through suitablethird parties.Local assessment committeesconsider applications for fundingunder the scheme. Fundingdecisions are made on thebasis of criteria set by CreativeNew Zealand. Among other things,these criteria seek to promote theuniqueness and cultural diversity oflocal communities.This output directly supportsOutcome 1: New Zealandersparticipate in the arts.58 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Performance measuresQuantityNumber of territorial authoritiesthat will distribute CreativeCommunities Scheme fundingTotal performances,exhibitions and publicationspresented through the CreativeCommunities SchemeQualityProjects are successfullycompleted in accordance withcontractsTimelinessAll Creative CommunitiesScheme funds are distributedwithin the required timeframeNotes2008/09Actual2009/10EstimatedActual2010/11Forecast2011/12ForecastNote 1 73 73 67 67 672012/13ForecastNote 2 New measure New measure New measure New measure New measureNote 3 New measure New measure New measure New measure New measureNote 496% of allCreativeCommunitiesSchemefunds weredistributed inthe 2008/09period.An estimated97% of allCreativeCommunitiesSchemefunds will bedistributed inthe 2009/10period.98% of allCreativeCommunitiesSchemefunds will bedistributed inthe 2010/11period.99% of allCreativeCommunitiesSchemefunds will bedistributed inthe 2011/12period.100% ofall CreativeCommunitiesSchemefunds will bedistributed inthe 2012/13period.Notes:1. This is an activity measure. However, it provides context for the Creative Communities Scheme.2. This performance measure has been introduced in 2009/10. It aims to measure the final resultsof the Creative Communities Scheme. Baseline data will be developed in 2010.3. This performance measure has been introduced in 2009/10. Creative New Zealand aims toimprove our monitoring of the distribution of funding under the Creative Communities Schemeto ensure that the programme is achieving maximum results. Baseline data will be developedin 2010.4. This timeliness performance measure has been introduced in 2009/10. With this measure,as with the performance measure ”Projects are successfully completed in accordance withcontracts, Creative New Zealand aims to monitor the distribution of funding under the CreativeCommunities Scheme to ensure that the programme is achieving maximum results. Baselinedata will be developed in 2010.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 59

Output 1.4: InternationalFunding ProgrammeDescriptionThrough the International FundingProgramme, Creative New Zealandidentifies opportunities to marketand present New Zealand workat key international events andmarkets. We select and invest inindividual artists, practitioners,organisations or clusters of artiststhrough a range of initiatives,including support for artiststo tour, exhibit or performinternationally, and supportfor a New Zealand work to beperformed by an overseas artist orcompany. This will happen aftera New Zealand artist or work hasappeared at a trade fair overseas,or after a particular marketdevelopmentinitiative.The delivery of this programme isspecific and targeted.This output directly supportsOutcome 4: New Zealand arts gaininternational success.60 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Performance measuresQuantityNotes2008/09Actual2009/10EstimatedActual2010/11Forecast2011/12Forecast2012/13ForecastNumber of projects funded Note 1 23 20 At least 20 At least 20 At least 20Total performances,exhibitions and publicationspresented through theInternational FundingProgrammeQualityProjects are delivered inaccordance with fundingagreementsProjects meet qualityassessmentcriteriaTimelinessProjects are delivered ontime in accordance withfunding agreementNote 2 23 20 At least 20 At least 20 At least 20Note 3 New measure New measure New measure New measure New measureNote 4 New measure New measure New measure New measure New measureNote 5 New measure New measure New measure New measure New measureNotes:1. This is an activity measure and is demand-driven. However, it provides context for theInternational Funding Programme.2. This performance measure has been introduced in 2009/10. It aims to measure the final resultsof the International Funding Programme. Baseline data will be developed in 2010.3. This performance measure has been introduced in 2009/10. Creative New Zealand aims toimprove our monitoring of the outcomes of projects and to better evaluate whether projectshave been delivered in accordance with funding agreements. Baseline data will be developedin 2010.4. This performance measure has been introduced in 2009/10. Creative New Zealand aims toimprove our monitoring of the results of projects and to better evaluate the quality of the worksthat have been delivered. Baseline data will be developed in 2010.5. This timeliness performance measure has been introduced in 2009/10. Creative New Zealandaims to improve our monitoring of the outcomes of projects, including when they are delivered.Baseline data will be developed in 2010.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 61

OUTPUT 2: Capabilitybuildingfor artists,practitioners andarts organisationsDescriptionCreative New Zealand deliversadvice and capability-buildinginitiatives to artists, practitionersand arts organisations. Capabilitybuildingis provided in a numberof areas, including leadership,governance, internal organisationalsystems and processes, audiencedevelopment, market development,and international engagement.The programmes offer advice,insight and audience intelligencethrough research, capabilitybuildinginitiatives and coachingconsultancies. They involve expertsworking alongside practitionersto develop strategies for attractingnew audiences and retainingexisting audiences and to gatherdata to help organisationsbenchmark their performance.The programmes deliver strategicinitiatives that aim to build theskills of artists, practitioners andorganisations to produce/curate,plan, promote, negotiate, market,sell and manage internationalengagements. The programmes dothis through workshops, masterclassesand other programmes forbuilding skills and capability.Capability-building includesaudience-development andmarket-development on both anational and international scale,and also includes activities toencourage the regional distributionof work within New Zealand.Information about CreativeNew Zealand’s capability-buildingprogrammes is available on ourwebsite at www.creativenz.govt.nz.The delivery of the programmes isusually specific and targeted.62 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Performance measuresQuantityNumber of capability-buildinginitiatives delivered to the sectorNumber of participants incapability-building programmesQualityProportion of participants who findthe capability-building initiatives tobe relevant and effectiveNotes2008/09Actual2009/10EstimatedActual2010/11Forecast2011/12ForecastNote 1 15 15 15 15 15Note 2 232 250 250 250 250Note 3 90% 90% At least90%At least90%2012/13ForecastAt least90%Notes:1. This is an activity measure. However, it provides context for Creative New Zealand’scapability–building programmes. A review of capability-building initiatives is being carried outin 2010. This may affect all the forecast targets in this section.2. This performance measure has been introduced in 2009/10. While Creative New Zealanddoes not have total control over the number of participants in the programmes, increasedparticipation over time may be an indicator of how effective the initiatives are for the sector.Baseline data will be developed in 2010.3. Not all capability-building programmes were evaluated in 2008/09. The actual figure is for thesix audience- and market-development programmes only.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 63

OUTPUT 3:Advocacyfor the artsDescriptionThe main aims of our advocacyprogramme are to raise awarenessof the role and contribution of thearts and of key issues affectingthe sector, and to change theenvironment for the benefit of thearts.Our advocacy programme includesthe following types of activity:• carrying out research for the artssector• developing strategicpartnerships to increase supportfor the arts• participating in crossgovernmentinitiatives, and• where relevant, makingsubmissions on issues affectingthe arts sector or CreativeNew Zealand.Performance measuresQuantityResearchTotal number of research projectsand other resources delivered tothe sectorStrategic partnershipsTotal number of meetings per keypartnerQualityThe arts sector is using availableresources as indicated by thewebsite usageNotes2008/09Actual2009/10EstimatedActual2010/11Forecast2011/12ForecastNote 1 8 5 5 5 5Note 2 2 3 3 3 32012/13ForecastNote 3 New measure New measure New measure New measure New measureNote1. This is an activity measure. However, it provides context for the quality measure in this section.Note that International Market Development activities are now captured under Output 2:Capability-building for artists, practitioners and arts organisations.2. This is an activity measure. However, it reflects the importance that Creative New Zealandplaces on developing strategic partnerships to increase support for the arts. Identified keypartners for 2010/11 are Auckland City Council, Wellington City Council and ChristchurchCity Council.3. This performance measure has been introduced in 2009/10. Creative New Zealand aims toimprove our monitoring and analysis of website usage to better understand which resources aremost valuable. Baseline data will be developed in 2010.64 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Forecast financial statementsNgā matapae pūrongo pūteaArts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 65

Statement of accounting policiesFor the years ending 30 June 2011, 30 June 2012 and 30 June 20131. Reporting entityThe Arts Council of New ZealandToi Aotearoa was established on1 July 1994 by the Arts Councilof New Zealand Toi Aotearoa Act1994. The Council has chosen tooperate under the name CreativeNew Zealand.Creative New Zealand is aCrown Entity as defined by theCrown Entities Act 2004 and isdomiciled in New Zealand. CreativeNew Zealand’s ultimate parent istherefore the New Zealand Crown.Creative New Zealand’s purpose,as defined under the Arts Councilof New Zealand Toi Aotearoa Act1994, is to encourage, promote andsupport the arts in New Zealand forthe benefit of all New Zealanders.Accordingly, Creative New Zealandhas designated itself as a publicbenefit entity for the purposesof New Zealand Equivalents toInternational Financial ReportingStandards (“NZ IFRS”).2. Statementof complianceThese forecast financial statementsare prepared in accordance withthe requirements under FinancialReporting Standard 42 ProspectiveFinancial Statements and section141 and 142 of the Crown EntitiesAct 2004.The forecast financial statementshave been prepared in accordancewith NZ GAAP. They comply withNew Zealand equivalents to IFRSand other applicable FinancialReporting Standards as appropriatefor public benefit entities.3. MeasurementbaseThese forecast financial statementshave been prepared on anhistorical cost basis, except wheremodified by the revaluation of landand buildings, works of art andinvestment property.The accrual basis of accounting hasbeen used, unless otherwise stated.4. Functionaland presentationcurrencyThese forecast financial statementsare presented in New Zealanddollars ($), and are rounded to thenearest thousand dollars ($000).The functional currency of the ArtsCouncil is the New Zealand dollar.5. AccountingpoliciesThe following specific accountingpolicies, which materially affectthe measurement of financialperformance and financialposition, have been appliedconsistently to all periodspresented in these forecastfinancial statements.Recognition ofrevenue and expenditureRevenue is measured at the fairvalue of consideration received orreceivable.Revenue from the CrownCreative New Zealand receives asignificant amount of its fundingfrom the Crown. It can use thisfunding only for the purpose ofmeeting its objectives as specifiedin the Statement of Intent.Revenue from the Crown isrecognised as revenue when earnedand is reported in the financialperiod to which it relates.Other grantsCreative New Zealand receivesmost of its funding from theNew Zealand Lottery Grants Board.This is recognised as revenuewhen it becomes receivable, unless66 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

there is an obligation to return thefunds if conditions of the grantare not met. If there is such anobligation the grants are initiallyrecorded as grants received inadvance, and recognised as revenuewhen conditions of the grant aresatisfied.Revenue received from thirdparties on the condition that itis used for a particular purposeis recognised in the Statementof Financial Performance onlywhen the funds are spent for thedesignated purpose. Any unspentfunds at the reporting date areincluded within current liabilitiesin the Statement of FinancialPosition, and carried forward to thenext financial year.InterestInterest income is recognised as itaccrues on bank account balancesand on-call and short-termdeposits.Rental incomeRental income is recognisedin the Statement of FinancialPerformance on a straight-linebasis over the term of the lease.Recognition of grants andinitiatives expenditureNon-discretionary grants aregrants that are awarded if thegrant application meets thespecified criteria. These grants arerecognised as expenditure when anapplication that meets the specifiedcriteria for the grant has beenreceived.Discretionary grants are thosewhich Creative New Zealand has noobligation to award when it receivesthe grant application. These grantsare recognised as expenditure whenCreative New Zealand has approvedthe grant and communicated theapproval to the applicant.The liability disclosed in theStatement of Financial Positionrepresents financial grants toNew Zealand artists and artsorganisations committed byCreative New Zealand but notuplifted at the balance date.When grants that were committedby Creative New Zealand inprevious years are no longerrequired for the purpose for whichthey were committed, they areretired and recognised as a gainin the Statement of FinancialPerformance.During the year funds may be setaside for Council-led or board-ledprojects, known as “initiatives”. Ifthese funds are not fully expendedat the end of the financial year,they are carried forward to thenext financial year within currentliabilities in the Statement ofFinancial Position.Goods and servicestax (GST)All items in the forecast financialstatements are exclusive of GST,with the exception of accountsreceivable and accounts payable,which are stated inclusive of GST.The net amount of GST recoverablefrom, or payable to, the InlandRevenue Department (IRD) isincluded as part of receivablesor payables in the Statement ofFinancial Position.The net GST paid to or receivedfrom the IRD, including the GSTrelating to investing and financingactivities, is classified as anoperating cash flow in the CashFlow Statement.Income taxThe Council is a public authorityand consequently is exempt fromthe payment of income tax inaccordance with the Income Tax Act2007. Accordingly, no charge forincome tax has been provided.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 67

Cash and cash equivalentsCash and cash equivalents held bythe Council include bank balances,on-call bank deposits and shorttermdeposits with originalmaturities of three months orless that are readily convertible toknown amounts of cash and that aresubject to an insignificant risk ofchanges in value.Property, plantand equipmentLand and buildings are revaluedevery three years to ensure that thecarrying amount does not differmaterially from fair value. Fairvalue is determined from marketbasedevidence by an independentregistered valuer.Any revaluation increment iscredited to the asset revaluationreserve included in othercomprehensive income, exceptto the extent that it reverses arevaluation decrement for thesame asset previously recognisedin profit or loss, in which case theincrement is recognised in profitor loss.Any revaluation decrement isrecognised in profit or loss,except to the extent that it offsetsa previous revaluation incrementfor the same asset, in which casethe decrement is debited directly tothe asset revaluation reserve to theextent of the credit balance existingin the revaluation reserve for thatasset.Any accumulated depreciation as atthe revaluation date is eliminatedagainst the gross carrying amountsof the assets, and the net amountsare restated to the revaluedamounts of the assets.AdditionsThe cost of an item of property,plant or equipment is recognisedas an asset only when it is probablethat future economic benefits orservice potential associated withthe item will flow to the Counciland the cost of the item can bemeasured reliably.Where an asset is acquired at nocost, or for a nominal cost, it isrecognised at fair value whencontrol over the asset is obtained.DisposalsGains and losses on disposals aredetermined by comparing theproceeds with the carrying amountof the asset. Gains and lossesare included in the Statement ofFinancial Performance.When revalued assets are sold, theamounts included in revaluationreserves in respect of those assetsare transferred to general funds.Subsequent costsCosts incurred after initialacquisition are capitalised onlywhen it is probable that futureeconomic benefits or servicepotential associated with the itemwill flow to Creative New Zealandand the cost of the item can bemeasured reliably.The costs of day-to-day servicingof property, plant and equipmentare recognised in the Statement ofFinancial Performance as they areincurred.DepreciationDepreciation is provided on astraight-line basis on all fixedassets, other than freehold land,at a rate that will write off the cost(or valuation) of the assets to theirestimated residual value over theiruseful lives.The useful lives and associateddepreciation rates of major classesof assets have been estimated asfollows:68 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Building 35 years 2.9%straightlineBuildingimprovementsFurniture,equipmentand fittingsComputerequipmentWorks of art10 or35 years10% or2.9%straightline5 years 20%straightline4 years 25%straightlineWorks of art are revalued everythree years to ensure that thecarrying amount does not differmaterially from fair value. Theresults of revaluing works of artare credited or debited to an assetrevaluation reserve for that class ofasset, in the same way as for landand buildings.Works of art are not depreciated, asthey have an indeterminate usefullife and are expected to appreciatein value over time. Works of art arereviewed annually for indicationsof impairment.Investment propertyInvestment property consistsof part of the Old Public TrustBuilding on which rental income isearned.The fair value of the Council’sownership of the premises isdetermined by an independentregistered valuer using marketbasedevidence. In order todetermine the fair value of theinvestment property, this valuationhas been apportioned between theareas occupied by the Council andthe areas leased out on the basis ofthe potential capacity of each areato earn net rental income.Any change in value is recognisedin the Statement of FinancialPerformance in the year ofvaluation.Intangible assetsSoftware acquisitionand developmentAcquired computer softwarelicenses are capitalised on the basisof the costs incurred to acquire anduse the specific software.Costs that are directly associatedwith the development of softwarefor external use by CreativeNew Zealand are recognised asan intangible asset. Direct costsinclude the software development,employee costs and an appropriateportion of relevant overheads. Stafftraining costs are recognised as anexpense when incurred.AmortisationThe carrying value of an intangibleasset with a finite life is amortisedon a straight-line basis over itsuseful life. Amortisation beginswhen the asset is available for useand ceases at the date the asset isderecognised. The amortisationcharge for each period isrecognised in the Statement ofFinancial Performance.The useful lives and associatedamortisation rates of major classesof intangible assets have beenestimated as follows:PartnershipportalAcquiredcomputersoftware4 years 25%straightline1–4yearsImpairment of nonfinancial assets25%straightlineProperty, plant and equipmentand intangible assets that have afinite useful life are reviewed forimpairment whenever events orchanges in circumstances indicatethat the carrying amount may notbe recoverable. An impairment lossis recognised for the amount bywhich the asset’s carrying amountexceeds its recoverable amount.The recoverable amount is theArts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 69

higher of an asset’s fair value lesscosts to sell and value in use.Value in use is depreciatedreplacement cost for an assetwhere the future economic benefitsor service potential of the assetare not primarily dependent onthe asset’s ability to generate netcash inflows and where CreativeNew Zealand would, if deprivedof the asset, replace its remainingfuture economic benefits or servicepotential.If an asset’s carrying amountexceeds its recoverable amount,the asset is impaired and thecarrying amount is written downto the recoverable amount. Forrevalued assets the impairmentloss is recognised against therevaluation reserve for that classof asset. Where that results in adebit balance in the revaluationreserve, the balance is recognisedin the Statement of FinancialPerformance.For assets not carried at a revaluedamount, the total impairment lossis recognised in the Statement ofFinancial Performance.The reversal of an impairmentloss on a revalued asset is creditedto the revaluation reserve.However, to the extent that animpairment loss for that class ofasset was previously recognisedin the Statement of FinancialPerformance, a reversal of theimpairment loss is also recognisedin the Statement of FinancialPerformance.Financial instrumentsThe Council is party to nonderivativefinancial instruments aspart of its normal operations. Thesefinancial instruments include bankaccounts, on-call deposits, shorttermdeposits, trade and otherreceivables, and trade and otherpayables.Except for those items covered bya separate accounting policy, allfinancial instruments are initiallyrecognised in the Statement ofFinancial Position at fair value,and all revenues and expenses inrelation to financial instrumentsare recognised in the Statement ofFinancial Performance.The Council does not use derivativefinancial instruments.Accounts receivableAccounts receivable arerecognised initially at fair valueand subsequently measured atamortised cost using the effectiveinterest method, less an allowancefor impairment.LeasesCreative New Zealand leases officepremises in Christchurch andAuckland, photocopiers, facsimilemachines and printers.These leases, where the lessoreffectively retains substantially allthe risks and benefits of ownershipof the leased items, are classifiedas operating leases. Operatinglease expenses are recognisedin the Statement of FinancialPerformance on a systematic basisover the period of the lease.Lease payments are recognisedas an expense on a straight-linebasis over the term of the leasein the Statement of FinancialPerformance.Creative New Zealand does not haveany finance lease arrangements.Foreign currencytransactionsForeign currency transactionsare translated into New Zealanddollars using the exchange ratesprevailing at the dates of thetransactions. Foreign exchangegains and losses resulting from thesettlement of such transactions andfrom the translation at year-endexchange rates of monetary assetsand liabilities denominated inforeign currencies are recognised70 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

in the Statement of FinancialPerformance.Employee entitlementsShort-term employeeentitlementsEmployee entitlements thatCreative New Zealand expects tobe settled within 12 months ofthe balance date are measuredat undiscounted nominal valuesbased on accrued entitlements atcurrent rates of pay. These includesalaries and wages accrued up tobalance date, annual leave earnedbut not yet taken at balance date,retiring and long-service leaveentitlements expected to be settledwithin 12 months, and sick leave.Creative New Zealand recognisesa liability for sick leave to theextent that compensated absencesin the coming year are expectedto be greater than the sick leaveentitlements earned in the comingyear. The amount is calculatedbased on the unused sick leaveentitlement that can be carriedforward at balance date, to theextent that Creative New Zealandanticipates that it will be used bystaff to cover those future absences.Creative New Zealand recognisesa liability and an expense forbonuses where it is contractuallyobliged to pay them, or where thereis a past practice that has created aconstructive obligation.Long-term employeeentitlementsEntitlements that are payablebeyond 12 months, such as longservice leave and retirement leavehave been calculated on an actuarialbasis.The calculations are based on:a. likely future entitlementsaccruing to staff, based onyears of service, years toentitlement, the likelihoodthat staff will reach the pointof entitlement and contractualentitlements information andb. the present value of theestimated future cash flows.The discount rate is based onthe weighted average of interestrates for government stock withterms to maturity similar to thoseof the relevant liabilities. Theinflation factor is based on theexpected long-term increase inremuneration for employees.6. Changes inaccounting policiesand estimatesThere have been no changes inaccounting policies since thedate of the last audited financialstatements, other than the impactof New Zealand InternationalFinancial Reporting Standards.These policies have been appliedon a basis consistent with previousyears.The useful life of the Old PublicTrust Building has been reassessedas 35 years. This constitutes thechange in accounting estimates.7. Standards andinterpretations thathave been issuedbut are not yeteffectiveThe following new Standards orInterpretations that have beenissued but are not yet effectivemay be relevant for the Council’sfinancial statements in the future.These Standards or Interpretationshave not been applied in theseprospective financial statements,but could have a material effecton these prospective financialstatements if they had beenapplied.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 71

NZ IFRS 9 “FinancialInstruments”, effective from 1January 2013, replaces NZ IAS 39.The Standard may have materialimplications for the classificationand measurement of financialassets. The Council does not havecomplex financial and/or longtermfinancial assets, and doestherefore not expect materialchanges to current disclosures.8. Purpose ofForecast FinancialStatementsThe Statement of Intent is a publicdocument. It enables the publicto have a clear picture of CreativeNew Zealand, including where it isgoing, how it intends to get there,and how it will know it has arrived.The forecast financial statementsform part of the Statement ofIntent. The forecast financialstatements form the basis for endof-yearreporting in the financialstatements contained in the AnnualReport and the basis on whichthose statements are audited. Itis likely that the actual financialstatements presented in the AnnualReport will differ from the forecastfinancial statements and thosedifferences may be material.9. SignificantassumptionsThe users of these forecast financialstatements should note that actualresults achieved may differ fromthese statements in material ways,as a number of assumptions havebeen made in compiling thesestatements.All significant assumptions relatingto expenditure have been based onhistorical data, existing businesspractices or actual business planprojections for each financial year.New Zealand Lottery Grants Boardfunding has been estimated for the2011, 2012 and 2013 years basedon projected income for the 2009financial year.It is assumed that the timing ofbaseline funding will be the samefor each of the financial years.The timing of expenditure underCreative New Zealand’s ContestableFunding programme expenditurecan be variable after each fundinground. A best estimate of thetiming of this expenditure has beenmade, which may vary from thetiming of the actual expenditure.It is assumed that all creditors’terms are net 30 days.It is assumed that staffing levelswill not significantly change in eachof the financial years.The Old Public Trust Buildingand artworks are to be revalued atthe end of each financial year. Noattempt has been made to estimatethe impact of this revaluation in theforecast financial statements.72 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Prospective Statement ofFinancial PerformanceFor the years ended 30 June 2011, 30 June 2012 and 30 June 2013Jun-11$000Jun-12$000Jun-13$000INCOMEGovernment grant 15,689 15,689 15,689Lottery Board Grant 23,071 23,071 23,071Revenue from other government agencies 178 178 178Interest received 932 1,042 1,042Retirement of grants 200 200 200Other income 84 84 8440,154 40,264 40,264EXPENDITUREFunding 31,181 31,951 30,881Capability-building 1,557 1,617 1,687Advocacy 610 560 660Operating costsSalaries and Other Personnel Costs 4,884 4,884 4,884Sponsorship, awards and events 213 213 213Research and policy development 200 200 200Governance, assessment and management costs 1,079 879 879Administration, leases and other operating costs 1,116 1,116 1,116Depreciation 300 300 30041,140 41,720 40,820NET SURPLUS/(DEFICIT) (986) (1,456) (556)Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 73

Prospective Statement ofComprehensive IncomeAs at 30 June 2011, 30 June 2012 and 30 June 2013Jun-11$000Jun-12$000Jun-13$000Surplus / (deficit) for the year (986) (1,456) (556)Other comprehensive incomeRevaluation of land and buildings – – –Revaluation of works of art – – –Total Comprehensive Income (986) (1,456) (556)74 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Prospective Statement of Changes in EquityAs at 30 June 2011, 30 June 2012 and 30 June 2013Jun-11$000Jun-12$000Jun-13$000Total public equity as at 1 July 13,620 12,634 11,178Net operating surplus/(deficit) for the year (986) (1,456) (556)Other comprehensive income – – –Total comprehensive income (986) (1,456) (556)Total public equity as at 30 June 12,634 11,178 10,622Accumulated funds as at 1 July 8,858 7,872 6,416Net operating surplus/(deficit) for the year (986) (1,456) (556)Accumulated funds as at 30 June 7,872 6,416 5,860Revaluation reserve as at 1 July 4,762 4,762 4,762Revaluation of land and buildings – – –Revaluation of works of art – – –Revaluation reserve as at 30 June 4,762 4,762 4,762TOTAL EQUITY AS AT 30 JUNE 12,634 11,178 10,622Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 75

Prospective Statement of Financial PositionAs at 30 June 2011, 30 June 2012 and 30 June 2013Jun-11$000Jun-12$000Jun-13$000NON-CURRENT ASSETSProperty, plant and equipment 7,017 7,017 7,017Intangible assets 549 549 549Investment property 491 491 491CURRENT ASSETSBankMain account 80 136 197Short-term investments 15,032 14,172 13,697Accounts receivable 68 68 68Interest receivable 10 10 10Prepayments 116 116 116TOTAL ASSETS 23,363 22,559 22,145CURRENT LIABILITIESGrants committed 8,280 8,932 9,074Accounts payable 1,724 1,724 1,724GST 490 490 490Employee entitlements 235 235 23510,729 11,381 11,523TOTAL NET ASSETS 12,634 11,178 10,622PUBLIC EQUITYRevaluation reserve 4,762 4,762 4,762Reserves 7,872 6,416 5,86012,634 11,178 10,62276 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Prospective Cash Flow StatementFor the years ended 30 June 2011, 30 June 2012 and 30 June 2013Jun-11$000Jun-12$000Jun-13$000CASH FLOWS FROM OPERATING ACTIVITIESCash was provided from:Government grant 15,689 15,689 15,689New Zealand Lottery Grants Board 23,071 23,071 23,071Interest 932 1,042 1,042Revenue from other government agencies 178 178 178Other income 84 84 84Net GST received 43 20 –39,997 40,084 40,064Cash was applied to:Funding 31,086 31,337 30,733Capability-building 1,591 1,532 1,736Advocacy 505 505 505Salaries and other personnel costs 4,472 4,883 4,884Research and policy development 200 200 200Sponsorship, awards and events 213 213 213Governance, assessment and management costs 1,079 879 879Administration, leases and other operating costs 1,116 1,116 1,116Net GST paid – – 1340,262 40,665 40,279NET CASH FLOW FROM OPERATING ACTIVITIES (265) (581) (215)CASH FLOWS FROM INVESTING ACTIVITIESCash was applied to:Purchase of fixed assets 211 223 199Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 77

Prospective Cash Flow Statement CONTINUEDJun-11$000Jun-12$000Jun-13$000NET INCREASE (DECREASE) IN CASH (476) (804) (414)Add opening cash brought forward:Bank 81 80 136Short-term investments 15,507 15,032 14,172BALANCE AT END OF PERIOD 15,112 14,308 13,894Represented by:Closing cash carried forward:Bank 80 136 197Short-term investments 15,032 14,172 13,69715,112 14,308 13,89478 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013

Glossary of terms PapakupuArts Organisation DevelopmentProgramme – Targeted capabilitybuildinginitiatives aimed atincreasing the skills of artsorganisations and practitioners,including arts leadership.Arts Infrastructure – Aprofessional arts infrastructuremay be seen as comprising thoseorganisations and institutions(such as venues, schools,libraries, galleries, museums,arts organisations, systems andnetworks) that form the basis for,or provide the means by which,the arts in New Zealand can bepreserved, learned, created,presented and distributed.Creative New Zealand’s legislationdefines “professional arts” interms of the ability to earnsignificant income, 16 but thearts sector places an additionalemphasis on professionalism inthe sense of high standards andappropriate skills.Audience DevelopmentProgramme – Targeted initiativesthat aim to encourage artsorganisations and individuals tobuild dynamic and sustainableaudience relationships.Contestable Funding –Creative New Zealand provides16 Arts Council of New Zealand ToiAotearoa Act 1994, section 2.Contestable Funding through arange of programmes. There arefour funding pathways: QuickResponse Grants, Arts Grants,Arts Investments and SectorInvestments. Contestable Fundingincludes the Toi Ake programmeand special opportunities(residencies, scholarships,fellowships, bursaries and awards).Further information is available atwww.creativenz.govt.nz.Creative Communities Scheme –This is a small-grants scheme thatsupports community arts projectsand activities that take placewithin the local area of a territorialauthority. Creative New Zealanddevolves the funding to territorialauthorities, who administer thescheme themselves or throughthird parties. Further informationis available at www.creativenz.govt.nz.Impact – Short- to medium-termoutcomes (see “outcome”).International Capability-Building – Targeted initiatives thataim to build the skills of artists,practitioners and organisationsto produce/curate, plan, promote,negotiate, market, sell and manageinternational engagements. This isdone through workshops, masterclassesand other programmes forbuilding skills and capability.International FundingProgramme – Non-contestablefunding that supportsopportunities to market andpresent New Zealand workinternationally at key events andmarkets. Further information isavailable at www.creativenz.govt.nz.Outcome – The impact on orconsequences for the community ofthe activities of Government.Output – Goods and servicesprovided by an organisation.Recurrent Funding – Fixedtermfunding for selected artsorganisations for programmes ofactivity over one to three years.Further information is available atwww.creativenz.govt.nz.Special Opportunities – Theseinclude residencies, scholarships,fellowships, bursaries and awardsavailable through ContestableFunding. Awards are generallynot contestable.Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013 79

80 Arts Council of New Zealand Toi Aotearoa Statement of Intent 2010–2013