Tasmanian Symphony Orchestra Foundation Ltd
Trustee of TSO Foundation Trust
Annual Report – 2016

I have pleasure in presenting the Foundation’s Annual Report for 2016, another good year for the Foundation:

• The Foundation’s net assets grew by $227,288 to $1,285,916, an increase of 21.5%
• The Foundation achieved a net profit of $269,633 for the year
• During 2017 the Foundation will distribute $51,347 to Tasmanian Symphony Orchestra Pty Ltd, an increase of $9,092 (21.5%) on the $42,345 distributed during 2016

To maximise investment returns while managing risk, the Board sought proposals for financial advice to determine appropriate asset allocation and benchmarking for the Trust’s investment portfolio. On 29 February, the Board adopted an investment policy and appointed Unica Wealth as investment advisers to the Foundation. During the year:

• New brochures for the Foundation were prepared and published.
• Foundation content on the TSO website was expanded and updated
• The Foundation’s constitution was updated

Directors welcomed Timothy Bugg AM to the Foundation Board on 19 July 2016. Thanks to all directors for their work during the year. Sadly, the Foundation lost a strong supporter when Susie Williams passed away on 4 January 2017. Susie joined the TSO Foundation Board on incorporation in 2008 and contributed 9 years of outstanding service, including formation of the Sculthorpe Society and a period as Chair to 2015. She is remembered as a warm, considerate and astute person, an agile and clear thinker.

The Foundation also loses three exemplary Directors who have been on the Board since incorporation in 2008, Mike Ralston, John Canterford and John Upcher. Mike retired in February 2017 and both John Canterford and John Upcher completed their maximum nine years of service. All have made significant contribution to the Foundation’s growth and development.

Thanks to Nicholas Heyward and TSO management for their strong support to the Foundation. Special thanks to Ed Benyon, Director Development. Thanks to a very special group, the members of the Sculthorpe Society. Your support and commitment to the Foundation is vital to the TSO’s role and future. At a function on 9 April, members celebrated Peter Sculthorpe’s birthday.

It is gratifying to see continued growth and interest in the Conductor’s Circle, a group of like-minded music lovers sharing a special relationship with the TSO. Your interest and support is important to both the TSO and to the Foundation.

Let’s make 2017 a year to remember! There’s still a way to go to reach the Foundation’s long term target of a $20 million fund.

Dick Shoobridge
Chair
4 May 2017

For a full copy of the 2016 Annual Financial Report of the TSO Foundation Trust, please click here.

Financial Summary

Financial Summary
Revenue 2014 2015 2016
Donations $75,850 $37,590 $219,620
Bequests $0 $300,000 $27,964
Investment Income $26,339 $25,729 $37,250
Total Revenue $102,189 $363,319 $284,834
Expenses
Consultants $4,726 $7,453 $6,760
Other Expenses $11,867 $3,368 $8,441
Total Expenses $16,593 $10,821 $15,201
Net Profit $85,596 $352,498 $269,633

Balance Sheet

Balance Sheet
2014 2015 2016
Assets
Cash at bank & term deposits $745,938 $1,052,295 $670,781
Investments $0 $0 $619,389
Other assets $21,429 $6,333 $3,181
Total assets $767,367 $1,058,628 $1,293,351
Liabilities $31,815 $0 $7,435
Net Assets $735,552 $1,058,628 $1,285,916
Growth in net assets $323,076 $227,288
43.9% 21.5%

Purpose and Governance

Purpose

The TSO Foundation Ltd is the trustee of the TSO Foundation Trust. The TSO Foundation Trust is a capital endowment fund, established by deed dated 6 June 2008 as a vehicle for major gifts and bequests, with all Fund earnings to support the financial future of the TSO.

The long term aim an endowment Fund of $20,000,000 in the TSO Foundation Trust. For taxation purposes, the TSO Foundation Trust is exempt from taxation as a Public Ancillary Fund and is a registered Deductible Gift Recipient.

Governance

Currently, the TSO Foundation constitution provides for a maximum of 12 directors:

  • 3 to 5 directors are elected by the members. None of the elected directors can be a director of TSO Holdings Pty Ltd
  • TSO Holdings Pty Ltd can appoint 2 to 4 directors, provided the number of those so appointed is at least one less than the number appointed by the members
  • The Board can appoint up to a further 3 directors to achieve a balance in skills, experience and expertise

Currently, there are 8 directors on the Board and one Board advisory committee, covering audit and risk. On 28 September 2015, directors approved a Board charter, which provides for an annual review process.

Summary of Strategic Plan 2016 to 2018

For the 3 years to December 2018, the key goals are:

  • Achieve an annual income stream sufficient to make a difference to the operations of the TSO

Directors aim to achieve a capital fund of $2M and an income of $100K by 2018.

  • Achieve a critical mass of notified bequests sufficient to establish a stable income stream.

Directors aim to grow the number of notified bequests to 40 by 2018.

  • Nurture the TSO family through conductor’s circle events.

Directors aim to grow the number of participants in TSO and Foundation by events 10% each year to 2018.

The Strategies to achieve the above goals are:

  • Continue to identify potential major donors and people making bequests
  • Develop and deliver annual fundraising plan integrated with TSO annual operations and projects
  • Develop innovative investment strategy
  • Strengthen engagement with pledged and potential donors and people making bequests
  • Develop and implement an annual communications plan, working closely with the TSO