Recommendation 5.6: Governments should monitor outcomes to ensure that activities that are funded are delivered. Such an approach is consistent with the principle of accountability; and Governments rightfully have an expectation that if an activity is funded, it should be delivered. Recommendation 5.7: If a company does not deliver on funded activities, a proportion of the funding provided for that activity should be withheld from future grant payments unless a prior renegotiation has been agreed with the relevant Government funding agencies. Companies should not be funded for activities they do not deliver; Such an approach would encourage greater and earlier dialogue between the companies and the relevant Governments; and Such an approach strike a more appropriate balance between the flexibility suggested under Recommendation 5.4 and the need for increased accountability. Recommendation 5.8: If a company fails for three years in a row or consistently fails to deliver on a major commitment for which it is funded, it should lose its status as a major performing arts company. The company should receive one year’s advance notice (after the second year) of the funding agencies’ intention to change its status. Consistently failing to meet a stipulated funding requirement is a serious breach; and The ultimate penalty is loss of the privilege of being a major performing arts company. This would represent a change to the criteria for being a major performing arts company, which in the near term would apply only to the Major Opera Companies. Recommendation 5.9: Overall, the companies should remain subject to Government requirements to maintain specific overall financial and balance sheet requirements. Such an approach allows the companies to pursue their own strategic agenda while ensuring fiscal prudence; Such an approach is consistent with the overall requirements to become and remain a major performing arts company; and Additional rigour could be added to the overall approach by setting specific targets in relation to fiscal requirements. 5.4 What type of activities should be supported The approach articulated in Chapter 5.3 about Government funding necessitates that a decision be made in relation to what activities should be supported for Government funding.
Strengthen the balance sheet 9.13 Opera Australia to revalue property assets OA • 9.14 Use of proceeds of the sale of Opera Australia’s Melbourne property OA • 9.15 Opera Queensland to rebuild its balance sheet Australia Council, Arts Qld • • • 9.16 Minimum level of reserves set at 30 per cent of costs for each Major Opera Company All companies • Chapter 10: Providing strong governance and management Year of implementation Recommendation number Description Key initial responsibility 1 2 3 4 Provide strong governance 10.1 Skills and diversity mix of boards All companies 10.2 Provision of data to each Board of Directors All companies 10.3 Workshops for directors to understand dynamics All companies 10.4 Boards of Directors to establish protocols for managing artistic and financial tensions All companies 10.5 Culture of openness and debate on boards All companies 10.6 Annual board and director evaluations All companies 10.7 Tenure limits on directors All companies 10.8 South Australian Government to consider SOSA being governed by Corporations Law Arts SA, SOSA • • 10.9 Establish mechanisms for dialogue between boards and funding agencies All companies Provide strong management 10.10 Strengthen management accounting All companies • • 10.11 Companies to improve understanding of dynamics All companies • • 10.12 Operating results to be separated from Capital Fund results OA 10.13 Companies to balance strength of artistic and financial management All companies
and Territory Governments artsACT Arts NSW Arts Queensland Arts SA Creative Victoria Department of Culture and the Arts, Western Australia Department of State Growth, Tasmania Department of Arts and Museums, Northern Territory Orchestras Adelaide Symphony Orchestra Queensland Symphony Orchestra Tasmanian Symphony Orchestra West Australian Symphony Orchestra The Australian Ballet, which has ownership of Orchestra Victoria Australia, which has ownership of the Australian Opera and Ballet Orchestra Venues Adelaide Festival Centre Arts Centre Melbourne Griffith University Conservatorium of Perth Theatre Trust Queensland Performing Arts Centre Sydney Opera House Theatre Royal, Hobart Festivals Perth International Arts Festival Ten Days, Tasmania Training organisations The Lisa Gasteen National School Tasmanian Conservatorium of Music Artists’ managers and representatives Arts Management Australasian Classical Music Managers Association Media, Entertainment and Arts Alliance Patrick Togher Artists’ Management