Contemporary Art Foundation STATEMENT OF INTENT
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1 Contemporary Art Foundation STATEMENT OF INTENT 1 July June 2017 Board Approved 9th June 1
2 Contents 1.0 Introduction 2.0 Trust Objectives 3.0 Governance 4.0 Nature and Scope of Activities 5.0 Accounting Policies 6.0 Performance Targets 7.0 Reporting 8.0 Distribution of Funds 9.0 Activities to be funded by Auckland Council 10.0 Valuation of Assets 11.0 Other Matters 12.0 Financials 2
3 1.0 INTRODUCTION The Contemporary Art Foundation, as a Council Controlled Organisation under the Local Government Act 2002, established with the assistance of the former Manukau City Council, now Auckland Council and incorporated under the Charitable Trusts Act 1957 in September 2000, sets out below its Statement of Intent for the financial year commencing on 1 July The Trust provides this Statement of Intent in accordance with the requirements of the Local Government Act 2002 to: State publicly the activities that the Trust will engage in and the objectives to which the Trust will contribute for the three years to 30 June 2017 Provide an opportunity for Auckland Council, as stakeholders, to consult on the direction of the Contemporary Art Foundation Provide a basis of accountability of the Trustees to Auckland Council for the performance of the Contemporary Art Foundation 2.0 THE OBJECTIVES OF THE TRUST TO 30 th JUNE The vision of the Trust is to be the preeminent contemporary art organisation that is nationally and internationally renowned for innovative community engagement with leading edge art practices. 2.2 The mission of the Trust is to demonstrate to the Auckland Council, New Zealand and the international arts community our abilities in providing contemporary art experiences; and to educate and engage the wider public in the ideas of contemporary art and its role in our society. 2.3 The Trust operates within the terms of its Trust Deed. The objectives of the Trust are to promote, encourage and support the arts within Auckland for the benefit and enjoyment of the Auckland Community and the public at large. 2.4 The support, promotion and encouragement of the arts within Auckland may include without limitation: 1. The purchase and/or lease of property within Auckland and the development of facilities on that property or properties that will enable the greater Auckland community and the public at large to enjoy and experience the arts. 2. The provision of grants and/or loans either with or without interest, to any organisation, group or society within Auckland that is involved with the arts in any of their forms. 3. Any other action, initiative or programme in relation to the arts that benefits the city and Auckland community and public at large. 2.5 In carrying out these objectives the Contemporary Art Foundation will observe these core values: The Trust is committed to maintaining an open, cooperative and harmonious relationship with Auckland Council 3
4 Exhibit a sense of social and environmental responsibility by having regard to the interest of the city in which it operates Conduct its affairs in accordance with sound and ethical business practices Ensure economic viability Maximise the organisation s value in its own right and for the benefit of the Auckland community by o Working within the goals and objectives of Auckland Council o Winning and fulfilling contracts for service with other organisations and partners o Being culturally and environmentally active o Respecting the Treaty of Waitangi o Complying with legislative requirements o Upholding the highest standards relating to health and safety compliance o Extending the Trust s range of services in line with the objectives of the Trust Conduct research and development and benchmarking to improve its range of services and identify and adopt, if appropriate, global best practice standards within resourcing constraints Ensuring development and maintenance of good working relationships with stakeholders, businesses and communities 2.6 AMETI is an Auckland Transport project that will have a significant impact on the assets CAF holds and on its operating business. 2.7 Auckland Council notes the decision by the CAF Board to pursue options for its contemporary art facility, which may include substantial mitigation work and/or relocating its exhibition and/or learning programmes to more appropriate venues. 2.8 Te Tuhi holds a unique place in Auckland s arts landscape. It is recognised as one of only two highly regarded and dedicated galleries for contemporary art projects in New Zealand. The other is the Govett-Brewster Art Gallery in New Plymouth. 2.9 CAF will continue to develop high quality contemporary art projects and maintain a costeffective cultural and education service for Aucklanders. CAF will continue to support Te Tuhi by providing free exhibitions to all visitors We will align the gallery and operations with international standards within the field of contemporary art. Its core driver will be supporting innovation in contemporary art practice while increasing public engagement in art and the ideas of artists We are committed to providing integrated outcomes for Mäori and Pacific artists within Te Tuhi s curatorial programming. This will contribute to the national and international reputations for Auckland as a destination that can consistently produce cutting edge international quality exhibitions that are relevant to this place We are committed to youth recognition and opportunities particularly in the tertiary development area. This includes the commitment to providing quality learning opportunities through our LEOTC contract and other creative subject offerings for the creative communities of Auckland. 4
5 3.0 GOVERNANCE 3.1 Governance of the Trust is the sole responsibility of the Board of Trustees. Current Trustees term start and end dates: Brenda Chappell 1/11/ /06/2015 Lois Perry 1/11/ /06/2015 Noel Robertson 1/11/ /06/2015 Carolynn Whiteman Richard Northey 1/11/2011 1/06/ /06/ /06/2015 Bernardine Vester 1/10/2014 1/10/ Administration of existing projects is delegated to Te Tuhi Contemporary Art Trust formerly named the Eastern Manukau Arts Trust. 3.3 The primary role of the Board of Trustees is to: Allocate income and resources to enable the organisation to achieve its objectives and performance targets Effectively represent and promote the arts in Auckland Direct and supervise the management of the business affairs of the Trust including: o Establishing strategies, goals and objectives o Establishing policies for strengthening the performance of the Trust o Monitoring the performance of management o Protecting the organisation s financial position o Ensuring that audited financial statements are true and fair and conform to the law o Ensuring the organisation adheres to a high standard of ethics and behaviours and agreed protocols for communication between the Trust, Council officers and elected members. o Ensuring the organisation has appropriate risk management and mitigation and regulatory compliance policies Satisfy itself that the organisation is achieving its goals Actively seek opportunities to advance the arts within the city Evaluate economic, political, social and legal issues that may impact on the performance of the Trust and delivery of its objectives Assess the performance of the Board in accordance with the best practice guidelines of the New Zealand Institute of Directors The Contemporary Art Foundation (CAF) to act in accordance with statutory provisions referring to the Treaty of Waitangi Actively seek opportunities to contribute to Maori wellbeing in the area of contemporary art and community engagement by including Maori artists in curated exhibitions. CAF will have continued engagement with Ngai Tai and will continue to use educational tools (e.g. Atarangi II by Michael Parekowhai) for South Auckland schools in its education programme. 5
6 3.4 The Trustees meet at regular intervals to consider the business of the Trust. A comprehensive report on the operational activities, finances, building maintenance and other matters is provided at appropriate times. 3.5 Trustees do not receive any fees or expenses. 4.0 NATURE AND SCOPE OF ACTIVITIES 4.1 The Trust provides advocacy, leadership and facilitation on the arts to the Auckland region and national art community. 4.2 The current scope of the Contemporary Art Foundation s activities for the Statement of Intent will continue to be delivered through the facility situated at 13 Reeves Road, Pakuranga, and from time to time at other non-permanent venues until the issues relating to AMETI are resolved. 4.3 The Contemporary Art Foundation will continue to build its established relationships, working both locally and globally to advance Te Tuhi s curatorial remit. 4.4 The Contemporary Art Foundation will deliver art-based learning experiences outside the classroom through its contract with the Ministry of Education (to December 2015). 4.5 The Contemporary Art Foundation will continue to provide quality creative learning opportunities in the community. 4.6 These activities will include but are not limited to: Facilitating and supporting initiatives designed to attract, retain and grow art Liaising and fostering closer relationships with other regional art institutions throughout New Zealand and with appropriate international art institutions Encouraging, facilitating, recognising and celebrating artistic excellence Assist with the development of arts and culture in the region Encourage and assist with the development of arts tourism opportunities within Auckland Such other activities as the Board thinks fit (but subject to the provisions of the Trust's deed) to carry out the general purposes of the Trust Te Tuhi will run a sustainable business with equitable funding from council and from a variety of sources as and when feasible and available 5.0 ACCOUNTING POLICIES 5.1 The accounting policies of the Trust. Reporting Entity: The Contemporary Art Foundation is registered under the Charitable Trust Act 1957 Due to the size of CAF we are still able to apply all the differential reporting exemptions available under NZ IFRS 6
7 Measurement Base: The measurement base adopted is that of historical cost unless otherwise specified. Reliance is placed on the fact that the Trust is an ongoing concern General Accounting Policies: CAF came into auditing alignment of a public entity by adopting the international standards of accounting the NZ IFRS in LCCO s are required by section 69 of the Local Government Act 2002 to comply in full with GAAP this means preparing financial statements in accordance with NZ IFRS Accordingly, it has taken advantage of all differential reporting exemptions allowed under the Framework for Differential Reporting, except for FRS 19 Accounting for Goods & Services Tax, with which it has fully complied Particular Accounting Policies: The following specific accounting policies which materially affect the measurement of financial performance and financial position have been applied; o Accounts Receivable: Accounts receivable have been stated at their net realisable value o GST: The Statement of Financial Performance has been prepared on a GST exclusive basis. All items in the Statement of Financial Position are stated net of GST, with the exception of receivables and payables, which include GST o Taxation: The Contemporary Art Foundation is approved as a charitable organisation and is exempt from income tax on income, other than business income, derived by the organisation, provided that such income is applied for the charitable purposes as set out in the founding document, and exempt from income tax on business income derived by the organisation for charitable purposes in New Zealand o Finance Leases: Currently there are no finance leases held by the Trust o Operating Leases: Te Tuhi Café, Barnados and the Manukau Symphony Orchestra hold sub-leases from the Trust to operate out of the Te Tuhi Centre o Investments: Investments are stated at the lower of cost or net realisable value. Any decreases are recognised in the Statement of Financial Performance o Fixed Assets: Fixed Assets are stated at cost less accumulated depreciation. Depreciation has been calculated on a straight line basis, spreading the original cost over the assets s estimated useful life and agreed with Auckland Council 5.2 That adherence to AC accounting and reporting schedules, deadlines, and practices be used as the standard for the Trust. 5.3 That the Trust be audited by an external auditor agreed by the New Zealand Audit Office and that they are part of the consolidated financial reporting statements and Auckland Council Annual Report. 6.0 PERFORMANCE MEASUREMENT 7
8 The performance for activities are outlined in schedule one in the funding agreement with CDAC. Specific Summary of OBJECTIVES AND MEASURES (As defined in Schedule 1 of the Funding Agreement ). Programme Targets 1. Target a minimum of 150,000 visitors per annum 2. Target a minimum of 10 exhibitions per annum. 3. Target a minimum of 4000 students participating in programmes per annum). 4. Target a minimum of 130 classes per annum. 5. Target a minimum of 15 public forums, seminars, lectures, panel discussions, artist floor talks or performances throughout the year. 6. Target greater than 75% positive responses for the period of the Funding Agreement Sector Development Targets 1. Three events a year that require partnerships with community groups. 2. One exhibition, event, performance that includes Tangata Whenua. 7.0 REPORTING 7.1 The trust will provide the following information to Auckland Council. Reporting as required of CCOs by the Local Government Act 2002 By 28 February Council will receive a written report on the Trust s operations during the first half of the year A draft SOI will be submitted to Council by 1 st March and final SOI submitted by 30 th June each year Council will provide Shareholder comment by 1 May A Trustee approved SOI will be submitted to Council by June 30 By 30 September Council will receive a written report on the Trust s operations during the year The Trust is to advertise and hold a public meeting to consider shareholder comment on 9 June 2014 via advertisement in the public notices section of the local newspaper. Copies of the SOI will be made available from the front desk of Te Tuhi Centre for the Arts The Trust will advertise and hold a public meeting to report performance against plan. This will be on 1 Dec 2014 via advertisement in the public notices section of the local newspaper. Copies of the SOI performance will be made available from the front desk of Te Tuhi Centre for the Arts Public meetings will be held each year in accordance with the above in June and December for 2014, 2015, 2016 and 2017 These reports will contain the information that is necessary to enable an informed assessment of the Trust s operations, including a comparison of the performance of the Trust with this SOI. 8
9 7.2 Six monthly and annual reports as per the funding agreement with CDAC provided to the officer responsible for managing this agreement. 8.0 DISTRIBUTION OF FUNDS CAF has retained funds which are accumulated retained depreciation and will be used for the replacement of all or part of the building. These will only be utilised by the Trust to further its objectives and in accordance with its Trust deed. 9.0 ACTIVITIES TO BE FUNDED BY COUNCIL The Trust will provide services as described in its funding agreement with Auckland Council VALUATION OF ASSETS 10.1 As at 30/06/2014 the principal physical assets of the Trust comprised: Buildings and improvements comprising of an art gallery (which adheres to New Zealand Art Museum standards), community centre, teaching rooms, meeting rooms, auditorium, café, child care facility, research library, and office space. Plant and equipment 10.2 The Trust has intangible assets in the form of: Reputation Research and customer data base Brands Website Processes and procedures Recognition by and relationships with Art Institutions both national and international. The Trustees do not consider it appropriate to place a value on the intangible assets due to the Charitable Trust status of the organisation and the unlikelihood of the Trust ever being sold That the valuation of assets be in accordance with generally accepted accounting principles (GAAP) and in accordance with IFRS The Trustees estimate of the current commercial value of the shareholders investment in the Trust as at 30/6/2013 is $3,144,857.*. This is based on the reported Trust equity as disclosed in the audited financial statements of that date * Fixed assets [i.e. Buildings and Plant] comprise the major portion of this amount On the 29 August 2013 the trust commissioned an independent valuation for the purposes of establishing Fair Value for Potential Swap or Trust to Trust transfer from Sheldon s who 9
10 are registered valuers and property consultants. The amount was established at $5,165,000 plus GST (if any) OTHER MATTERS The Board of Trustees of the Contemporary Art Foundation is pleased to present its Statement of Intent for 1 July 2014 to 30 June The Trustees are committed to delivering on the objectives outlined in this Statement of Intent and are well placed to take the Trust forward. Their combined experience and expertise will ensure that the Contemporary Art Foundation makes a considerable contribution to the future of the arts in the Auckland region. By delivering on our vision and mission, CAF and Te Tuhi will: ensure Aucklanders have great art and cultural experiences by maintaining an exhibition programme featuring significant, high-quality national and international contemporary artists contribute to innovation and economic opportunity in Auckland attract national and international visitors to Auckland through leading-edge contemporary art practice 12.0 FINANCIALS CAF Budget 01/07/ /06/2015 BUDGET 2014/15 Grant Income Auckland Council 535, ,300 Other Income Kindergarten 49,665 Café 18,634 MSO 6,000 Interest 23,000 Rent 12, ,299 Total Income 644,599 Expenses Funding of Te Tuhi Contemporary Art Trust 500,000 Audit Fees 7,000 Insurance 4,000 Development grant to TTCAT 22,500 Depreciation 73,130 10
11 Repairs and Maintenance 10,000 Professional Fees & costs (AMETI Impact and consequences) 15,000 Interest 51,051 Other Expenses 4,000 Total Expenses 686,681 Net Deficit -$42,082 To ensure transparency of Auckland Council s grant income to Contemporary Art Foundation, CAF will supply the Te Tuhi Contemporary Art Trust budgets and actuals in its Half Year and Annual reports. 11
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