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04?
City Delivery Committee
TaurangaCity
March 2015
Tauranga Art Gallery Trust - Six-monthly Report to 31 December
2014 compared against the 2014/15 Statement of Intent
DC No: 65
Purpose
1.
To present the performance report of Tauranga Art Gallery Trust for the six months to
31 December 2014 as compared to the 2014/15 Statement of Intent.
Executive Summary
2.
The performance report shows financial and non-financial performance tracking
ahead of expectations agreed in the adopted statement of intent. However the hiring
of a Business Development Manager on a fixed term basis means that the year end
results are expected to be unfavourable compared to budget.
Recommendation
That the City Delivery Committee:
(a)
Receives Tauranga Art Gallery Trust's report on performance for the six-months to
31 December 2014 as required by the 2014/15 Statement of Intent.
Discussion
Requirement to report
3.
Tauranga Art Gallery Trust (TAGT) is a Council Controlled Organisation.
4.
In accordance with the Statement of Intent and the Local Government Act 2002 the
Trust is required to report to Council on financial and non-financial performance six
monthly and annually.
5.
Specifically the Statement of Intent requires that the six-monthly report includes:
6.
•
a statement of financial performance
•
a statement of financial position
•
notes to the financial statements
•
statements of performance against financial and non-financial
targets, and
•
a commentary on the results.
The Statement of Intent requires the six-monthly report to be delivered to Council
within six weeks of the end of the six-month period. With the significant personnel
Objective ID: A6169009
-1 Tauranga Art Gallery Trust - Six-monthly Report to 31 December 2014 compared against the 2014/15 Statement
of Intent
048
City Delivery Committee
16th March 2015
T a u r a n g a City
changes occurring within the trust this time limit staff extended this to the statutory
deadline of two months. This legislative timeframe was met by the Trust.
7.
The Trust's report for the six months to 31 December 2014 is included as Attachment
1 to this report.
8.
Representatives of the Trust will attend the meeting to talk to their report.
Summary of performance
9.
10.
11.
Overall financial performance is favourable compared to budget.
Revenue is significantly favourable compared to budget. This predominantly relates
to increased revenue from Events, Exhibitions and retail sales.
Budgeted expenditure is also over budget, due to increased activity in the gallery.
12.
While the financial performance for the first half of the year is favourable compared to
budget year to date, the result for the end of the year is expected to be unfavourable
compared to budget. This is predominantly through the employment of a Business
Development Manager employed in November (one year fixed term) and increased
costs in relation to computer equipment. The Business Development Manager
position was informally advised to elected members.
13.
While, due to staff changes, the reporting does not detail results compared to the
KPI's in the Statement of Intent, the Art Gallery appears to be on track to meeting its
non financial KPI targets.
14.
Visitor numbers to the Gallery (29,184) are tracking ahead of target (53% of full year
target).
Consideration
Significance
15.
The receipt of the Trust's six-monthly performance report is not significant in terms of
Council's significance policy. It is a report of actual performance against objectives
previously agreed in the adopted statement of intent
Objective ID: A6169009
-2Tauranga Art Gallery Trust - Six-monthly Report to 31 December 2014 compared against the 2014/15 Statement
of Intent
043
4^
City Delivery Committee
16th March 2015
TauranffaCity
Attachments
No.
Title
Tauranga Art Gallery Trust's six-month performance report for the period ending 31
December 2014
Objective ID: A6168605
Signatories
Authors
Frazer Smith, CCO & Finance Specialist
Authorisers
Jaine Lovell - Gadd, General Manager: Organisational Services
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Objective ID: A6169009
-3
Tauranga Art Gallery Trust - Six-monthly Report to 31 December 2014 compared against the 2014/15 Statement
of Intent
050
4.
,,
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Sixth Month Report
1 July - 31 December 2014
Non-Financial and Financial
Prepared by, Tauranga Art Gallery and Emma Cooper, Tauranga City Council
Attachment 1
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Contents
Financial Performance
Trustees Commentary and Outlook
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Financial Position
Notes to the Financial Statements
Non Financial Performance
3
4
5
6
7
10
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TAURANGA ART GALLERY TRUST
Board Commentary and Outlook
Financial Statements for the 6 months ended 31 December 2014
The financial statements for the six months ended 31 December 2014 report a surplus of $15,185.
This is compared with a normalised deficit in December 2013 of $(3,255).
The surplus compares with a budget deficit of $(16,665) and is due largely to increased revenue from
the activities that excite visitors and encourage them to visit the Gallery. To illustrate:
Venue hire
Retail Sales
Events
Exhibitions
December 2014 Actual
December 2014 Budget
7,411
5,000
27,923
10,000
7,500
24,353
34,487
10.000
94.174
32.500
While the additional activity also drives additional expenditure, the net result is a pleasing surplus.
However, expenditure in the following six months is likely to exceed budget. The Trust in November
2014 employed a Business Development Manager for a twelve-month period to identify sustainable
revenue opportunities for the Gallery.
In addition the Gallery will need to replace its outdated computer system (hardware and software) in
the next twelve months and that expenditure will commence in the 2015 financial year. There is also
other important maintenance that will need to be undertaken, such as building maintenance and
HVAC air-conditioning filter replacement requirements that are necessary to comply with Health and
Safety regulations and the Museum Aotearoa Code of Ethics. We therefore anticipate that we will
record a deficit for the full 2015 year.
We continue to actively pursue revenue generation opportunities and maintain strong cost control
measures while delivering a diverse, quality exhibition and event programme.
Judith Stanway
Tauranga Art Gallery Trust Audit Committee Chair
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statement of Comprehensive Income
For the six months ended 31 December 2014
Note
Dec 2014
Dec 2014
Dec 2013
6 months
6 months
6 months
Actual
Budget
Actual
Revenue
Tauranga City Council Operational Grant
Western Bay of Plenty District Council Grant
Sponsorship and Donations*
Interest and Dividends
Other Revenue
432,174
16,500
54,604
29,148
125,179
432,174
16,500
59,000
22,500
61,562
432,174
16,500
72,631
24,903
96,676
Total Revenue
657,605
591,736
642,884
Expenditure
Employee Related Expenses
Depreciation
Other Expenses
Finance Costs
329,205
55,072
258,143
0
306,120
56,250
246,031
0
307,325
56,165
252,649
0
Total Expenses
642,420
608,401
616,139
15,185
(16,665)
26,745
15,185
(16,665)
26,745
Operational Surplus/(Deficit)
Other Comprehensive Income
Property, Plant and Equipment Revaluation
Reserve Gains/(Losses
Other Comprehensive Income
Total Comprehensive Income Surplus/(Deficit)
The accompanying notes form part of these financial statements
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statement of Changes In Equity
For the six months to 31 December 2014
Tauranga
City
Council
Interest
Opening
Equity
Retained
Earnings
Balance 31 December 2014
Surplus for the six months
1,000,000
0
1,000,000
3,835,868
0
3,835,868
2,937,146
15,185
2,952,331
1,937,944
0
1,937,944
9,710,958
15,185
9,726,143
Balance 31 December 2013
Surplus for the six months
1,000,000
0
1,000,000
3,835,868
0
3,835,868
2,785,524
26,745
2,812,269
1,937,944
0
1,937,944
9,559,336
26,745
9,586,081
Revaluation
Reserves
The accompanying notes form part of these financial statements
Total
Equity
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statement of Financial Position
As at 31 December 2014
Note
Dec 2014
Dec 2013
6 months
6 months
Actual
Actual
Current Assets
Cash and Cash Equivalents
Inventories
Trade and Other Receivables
Assets Available for Sale
1,250,210
19,261
43,988
6,800
1,063,508
24,088
58,775
6,800
Total Current Assets
1,320,259
1,153,171
Non-current Assets
Property, Plant and Equipment
Intangibles
8,585,051
3,424
8,608,480
4,280
Total Non-current Assets
8,588,475
8,612,760
Total Assets
9,908,734
9,765,931
120,388
60,153
110,814
59,309
180,540
170,123
2,051
9,727
2,051
9,727
182,591
179,850
9,726,143
9,586,081
1,000,000
1,000,000
1,937,944
6,788,199
1,937,944
6,648,137
9,726,143
9,586,081
Current Liabilities
Trade and Other Payables
Employee Uabilities
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7
Total Current Liabilities
Non-current Liabilities
Interest Bearing Loans and Borrowings
Total Non-current Liabilities
Total Liabilities
NET ASSETS
Equity
Tauranga City Council Interest in Tauranga Art
Gallery Trust
Revaluation Reserves
Retained Earnings
TOTAL EQUITY
The accompanying notes form part of these financial statements.
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Notes to the Financial Statements
1.
Sponsorship and Donations
Dec 2014
6 months
Actual
Admission Donations
Art Bus Sponsorship
Creative New Zealand Family Fun Day Grant
Exhibition and other Sponsorship
Other Donations
Donations - Non cash*
Dec 2014
6 months
Budget
Dec 2013
6 months
Actual
6,338
12,691
2,500
27,587
5,488
0
7,500
20,000
0
31,500
0
0
9,801
15,355
0
16,000
1,475
30,000
54,604
59,000
72,631
*Dec 2013 - Non-cash donations consist of three donated artworks totalling $30,000
2.
Other Revenue
Dec 2014
6 months
Actual
Venue Hire
Retail Sales
Events
Exhibitions
Education
Other Income
3.
7,411
27,923
24,353
34,487
25,774
Dec 2014
6 months
Budget
Dec 2013
6 months
Actual
5,231
5,000
10,000
7,500
10,000
27,500
1,562
8,506
30,875
8,601
17,618
26,632
4,444
125,179
61,562
96,676
Other Expenses
Exhibitions and Events*
Collections
Education
Advertising and Marketing
Building and Maintenance
Insurance
Vehicles
Administration
Accounting
Audit
Cost of Goods Sold
Venue Hire
Dec 2014
Dec 2014
Dec 2013
6 months
6 months
6 months
Actual
Budget
Actual
86,631
904
22,269
27,882
55,818
14,492
2,013
17,837
6,817
11,044
9,325
3,111
50,250
2,500
30,000
32,250
70,871
13,750
3,300
20,300
8,000
9,560
5,000
250
59,958
0
35,530
22,186
68,960
13,365
3,114
17,302
6,623
8,859
16,484
268
258,143
246,031
252,649
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•December 2014 includes $21,939 expenses related to the Miles Art Award.
Notes to the Financial Statements
4.
Cash and Cash Equivalents
Dec 2014
6 months
Actual
Bank Balances
Cash
Depreciation and Maintenance Deposits
Other Short Term Deposits
Dec 2013
6 months
Actual
149,300
4,532
490,573
605,805
61,276
3,404
422,259
576,569
1,250,210
1,063,508
The carrying value of cash at bank and term deposits with maturities twelve months or less approximate
their fair value.
5.
Trade and Other Receivables
Debtors
Interest Accrual
Dec 2014
Dec 2013
6 months
6 months
Actual
Actual
24,467
19,521
37,826
20,949
43,988
58,775
Fair Value
Debtors and other receivables are non-interest bearing and receipt is normally on 30 day terms,
therefore the carrying amount of debtors and other receivables approximates their fair value.
6.
Trade and Other Payables
Payables and Accruals
Sponsorship Income Received in Advance
GST Payable
Dec 2014
Dec 2013
6 months
6 months
Actual
Actual
62,743
45,000
12,644
60,690
33,000
17,124
120,387
110,814
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Notes to the Financial Statements
7.
Employee Benefit Liabilities
Payroll Accruals
Annual Leave
8.
Dec 2014
Dec 2013
6 months
6 months
Actual
Actual
29,625
30,528
40,411
18,898
60,153
59,309
Interest Bearing Loans and Borrowings
Dec 2014
Dec 2013
6 months
6 months
Actual
Actual
Non-current
Loan from Benefactor
2,051
2,051
9,727
9,727
The benefactor loan is an advance from the Benefactor Trust. This was originally an advance of
$1,000,000. It is interest free and is repayable in October 2030. The carrying value is the
amortised cost of the principal owing, net of debt forgiveness, using the effective interest rate
method.
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Non-Financial Performance
1.0
Governance
Peter Anderson, Judith Stanway and Mary Stewart were appointed to the Tauranga Art
Gallery Trust Board.
The Board held a strategy day on 5 May 2014. Revision of the Statement of Intent and
Business plan was useful to induct new Trustees and clarify and review strategic
direction.
2.0
Staffing
The Gallery was fully staffed during this period with the following exceptions:
• Toni Edmeades resigned from her position of Registrar and her last day of
employment was 12 September 2014. Jo Torr was appointed to this role and
commenced on 3 November 2014. The Gallery operated without a Registrar in situ
for a period of 7 weeks during 2014 .
• Jamie Richardson resigned from his position of Exhibition Designer and his last day
of employment was 30 November 2014. Mark Trufitt was appointed to this role
and commenced in early January. The Gallery operated without an Exhibition
Designer in situ for 5 weeks during 2014.
•
Lee Warbrick commenced in a newly established role as Business Developer at the
Gallery on 1 December 2014.
•
Penelope Jackson resigned from her role of Director on 2 December 2014.
3.0
Staff Activity and Sector Liaison
Staff made external visits to schools and galleries:
Penelope Jackson to Mornington Peninsula Art Gallery (Dodd)
Penelope Jackson spoke to Probus Omokoroa
Penelope Jackson conducted Q&A with Terry Stringer
Penelope Jackson spoke to U3A about art crime in NZ
Penelope Jackson opened Bethlehem College art exhibition at the Cargo Shed
Tauranga Art Gallery involved in Tauranga Arts Trail pamphlet with Tourism BOP,
Cargo Shed and Creative Tauranga (Tuskany)
Penelope Jackson attended official opening of Te Uru, Titirangi.
Hannah Wilson attended Wallace Art Awards.
Hannah Wilson and Jo Torr attended public programmes workshop at Te Pukeariki
in New Plymouth, provided by National Services.
Hannah Wilson and Melissa McDonald attended NZ Association Art Educators
(NZAAE) Conference in Auckland
Hannah Wilson assisted with project coordination of the Tauranga Public Art Talks
and also presented.
Hannah Wilson attended Wallace Art Awards on behalf of Gallery.
Anya Sinclair Exhibition Opening held in conjuction with Tauranga Garden & Arts
Festival
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•
•
Susan Martin, Donna Forde, Kalou Koefoed and Nicola Spijkerbosh attended First
Aid Course.
Penelope Jackson resigned as Director.
The Director also offered professional advice to:
•
Hairy Maclary Sculpture Art Committee
•
Bay of Plenty Polytechnic degree mock accreditation panel
•
Waikato Museum of Art and History
4.0
Exhibitions Delivered
Between July and December the Gallery delivered 11 exhibitions and three touring
exhibitions:
S/oc/c Rainbow - Michaei Parekowhai
•
•
Landscape of the Head - Terry Stringer
• ART 101
•
Burton Brothers
•
2014 Miles Art Award
•
lan Scott
•
Phatasyland (TAG Collection)
• John and Juliet (TAG Collection)
•
The Painter in the Painting - Euan McLeod
•
The Garden of Forking Paths - Anya Sinclair
•
In the Shadow of the Mount - John Blackburn
Touring Exhibitions:
•
Lynley Dodd: A Retrospective (State Library NSW)
•
Corrugations: the art of Jeff Thomson (Expressions, Upper Hutt)
•
With bold Needle & Thread: Rosemary McLeod (MTG, Napier)
5.0
Tauranga City Council Civic Art Collection
•
Rotation of works in Willow Street building
•
6.0
Cleaning and maintenance of works
School attendances for the period
•
4,143 students visited the Gallery during the six-month period. In addition, 500
adults accompanied these school visits.
•
We also had 4 Early Childhood groups visit, 3 homeschool groups and 5 tertiary
groups including BOP Polytech and Bethlehem Institute.
•
We had a group of 40 from the KatiKati Community Resource Centre.
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6.1
ArtBus
Sponsorship for the ArtBus continues to be secured by local community trusts as well
as the Friends of the Gallery.
6.2
LEOTC Contract
The Ministry of Education has renewed our contract until June 2016. This enables the
Gallery to employ two part-time Educators. The LEOTC report was very positive about
the programmes we offer and the number of schools that visit.
6.3
Public Programmes, Venue Hire 8i Events
A wide variety of public programmes and events were held for the six-month period
including musical performances, theatre, poetry and movie screenings. The Gallery
was utilised by numerous local groups for venue hire:
•
Promise and Promiscuity (NZ Arts on Tour)
The NZ Piano lecture by Kirstine Moffatt
Floortalk: Women's Business Network (Chamber of Commerce)
Jade Quartet
Suzuki Performance
Art After Dark: Art 101 (2 sessions)
Public Playing Sessions (He Korero)
Ralph Hotere documentary screening
Friends ofthe Waikato Museum visit
Amelia Chamber Group
Venue Hire: Fred Bruijn poetry evening
Gretal Muir performance (soloist aged 10 years)
NZ Trio
Q&A Session: Terry Stringer
He Kerero public playing sessions (x8)
He Kerero student playing session
He Kerero Malady Poetry Evening
Two Soprano Singers performance
Venue Hire: TCC - WWl container exhibition
Jan Beets performance
Bel Canto Studio Performance
Life Drawing Sessions
Ariana Odermatt and Jan Beets performance
Frederieke Andrea Quartet Performance
Jenny Harper on Michael Parekowhai's Pianos
Reb Fountain concert
Miles Art Awards Opening
Miles Talk Snippets (artist talks and prize winners)
Venue Hire: Tauranga Girls College Movie Night
Leon Gray piano performance
Safira Neilson cello conference
Le Mont Baroque Performance
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FoGs coffee club meetings
Venue Hire: Tauranga Start Up x 4
Venue Hire: Gordon Paterson Book Launch
Venue Hire: Sydenham Botanic Society
Venue Hire: Adventure Movie Night
Venue Hire: BOP Polytech Fashion Parade
Venue Hire: Gordon McLeod Chiropractic Christmas Function
Venue Hire: BA Law Christmas Function
Venue Hire: TEDx Sponsors Function
Charlotte piano recital
Cellophonics performance
Grant Winterburn/Carol Storey concert
Cooney Lees Morgan exhibition preview
Euan McLeod/Greg O'Brien exhibition opening
Ron Brownson floortalk about lan Scott
Emma Prill workshops
Friends ofthe Gallery Breakfast: Penelope Jackson in conversation with Dame
Jenny Gibbs
Anya Sinclair floortalk
Claudia Jarman Lecture: Greg O'Brien
NZ Guitar Quarter performance
Anya Sinclair Opening in conjunction with the Tauranga Garden & Arts Festival
The Eastern with Reb Fountain performance
Venue Hire: RAD Company Mountain Bike Film Festival
Mark Laurent & Brenda Liddiard performance
Venue Hire: Datacom Christmas Function
Civic Choir Performance
6.4
Community Groups and Other Education
•
Avalon (x2)
•
English Language Students
•
Arrows Home School Group
•
Probus Omokoroa
•
U3A
7.0
Marketing
Visitor sessions on our website www.artgallerv.org.nz for six months 1 July - 31
December 2014 were 12,420, up 5 per cent on the previous six months.
The overall number of website visitors from within New Zealand was up by 5 per cent
showing pleasing reach to our local and national audiences.
In October 2014 we decided to focus our social media presence on FaceBook. We
revamped our content, using a mix of generic arts posts and Gallery updates.
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Time and budget spent have resulted in us extending our audience, with a big increase
in sharing, liking and commenting on our page. Likes have risen from 870 in Sep 2014
to 1343 in December 2014 but it is the "conversations" we are having which make the
difference in our profile.
Regular email news bulletins on everything from just announced public programmes to
school holiday/Kids Art Studio information to news of touring exhibitions go out to
about 2700 recipients. Other email communications go to specific, targeted groups.
Publications we featured in (editorial/unpaid not advertising) were:
- Life & Leisure
- AA Magazine
- The Listener
- Mindfood
- Sunday Star-Times
- North & South
-Next
- Bay of Plenty Times
- Bay News
We maintained strong radio presence, aside from advertising, through interviews and
chats on Mediaworks stations and National Radio.
We also had a strong presence in local communities through library window displays,
distribution of exhibitions materials including bookmarks and posters, and on strategic
billboards.
8.0
Visitor Satisfaction
The age of those surveyed runs equally across the spectrum from under 15 years old to
66-1- years. Visitor comments are almost all positive about the gallery, and the staff
who work here.
The number who identified as from 'other' was 49 per cent. Tauranga/ Western Bay of
Plenty visitors, therefore, made up 51 per cent.
The results are fairly similar to the last Survey (March 2014) though the number coming
to the Gallery with friends has climbed by 10 per cent. It is pleasing to think the Gallery
is a social option which people consider when making plans with friends or family. Also
many parents or grandparents visit the Gallery after a recommendation from their
child/grandchild who has taken part in our schools or school holiday programme.
Of those surveyed in November 2014, 50% were first time visitors, up from 30% in the
April survey. This aligns with greater numbers of those surveyed being from out of
town.
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It is extremely pleasing to note high marks retained and 'atmosphere of Gallery'
increasing to maximum rating. Marks overall are very high, which is a great result, and
a credit to staff especially Front of House.
Survey comments included:
•
Lovely space"
•
"Very impressive set up all round"
"A great asset to Tauranga"
•
•
"Sometimes not all Gallery space used"
•
"Great, top class gallery"
•
"Great building, well designed. Peaceful ambience."
•
"I thought Tauranga would be a cultural wasteland and this gallery is seriously
good. Surprisingly good and varied series of exhibitions Terry Stringer exhibition
one of the best exhibitions I've seen in 40yrs of art watching"
"Easy to miss from outside"
"Always a great space"
"Always worth a visit"
"Always visit the wonderful gallery when in Tauranga"
"Fantastic venue and layout awesome staff"
"A credit to Tauranga -1st class. I feel the city council should give more financial
support."
"A nice little relaxing and enjoyable place, it takes you inside the artwork"
Very enjoyable and calming"
"Great access in gallery for people with disabilities should promote more"
"Thanks - keep up the great work. The gallery is the jewel in Tauranga's crown."
"Great facility -1 loved seeing the school children enjoying their time here."
"Good source of inspiration! Very relaxing on this cloudy day Thankyou"
"Very nice. A peaceful stop on our journey"
"You Tauranga people are spoilt to have this lovely gallery."
"The art inspired my heart"
9.0
Gallery Attendance
Total visitors to the Gallery for this six-month period: 29,184 [37,129] for the same
2013 six-month period].
10.0
Financial Sustainability Performance Targets.
Gross revenue*
Expenditure
Working Capital Ratio
Interest expense as percentage of total revenue"
New debt
Percentage of revenue from external sources"
15
Target
$591,736
$608,401
=>1:1
<10%
$0
20%
$657,605
$612,884*
$642,420
7.31:1
0%
$0
31%