CULTURAL FACILITIES CORPORATION
Objectives
The vision of the Cultural Facilities Corporation (the Corporation) is to be a cultural leader in the ACT community and region.  The Corporation’s primary objective is to enrich the cultural life of people living in, and visiting, the ACT and region by managing its facilities and delivering its programs in a creative, professional, and business-like manner.
The Corporation’s functions include the performing arts, the visual arts, social history and cultural heritage management.  The organisation delivers a range of cultural services to the community by providing activities such as theatre presentations, exhibitions, and education and public programs, and through conserving and presenting significant aspects of the ACT’s cultural heritage.
The Corporation aims to provide cultural leadership, excellence and innovation and to promote community involvement in activities at the Corporation’s facilities.
2009-10 Priorities
Strategic and operational issues to be pursued in 2009-10 include:
•	maximising visitation to, and patronage of, the Corporation’s facilities through a wide range of visual arts, social history and performing arts programs including targeted audience development and community outreach;
•	presenting exhibitions, education and public programs at the museums and galleries managed by the Corporation, with involvement in significant events and festivals and participation in a range of partnerships with other cultural organisations;
•	presenting a varied program of performing arts productions at the Canberra Theatre Centre;
•	undertaking the first year of a multi-year capital project comprising a package of conservation/upgrade works needed to bring the ACT Historic Places managed by the Corporation (Lanyon, Calthorpes’ House and Mugga Mugga) up to a sound condition and to protect their structural integrity and heritage values into the future; and
•	undertaking priority repairs and maintenance works at the ACT Historic Places, together with priority capital upgrades and repairs and maintenance at the Canberra Theatre Centre and Canberra Museum and Gallery.
Estimated Employment Level
2008-09
Budget			2008-09
Est. Outcome	2009-10
Budget	
691		  Staffing  (FTE)	881	862	
Notes:
1.	The high number of casuals employed and the variations in patterns of casual employment make a definitive FTE difficult to estimate.  The 2008-09 estimated outcome levels have been based on average casual FTE hours for the past 12 month period.  The 2008-09 Budget level was lower as it was based on a specific pay period rather than an average over a 12 month period.
2.	The reduction in the 2009-10 Budget level from the 2008-09 estimated outcome is predicted to be as a result of decreased venue hirers and subsequently decreased average casual FTE due to the economic downturn in 2009-10.

Strategic Indicators

Strategic Indicator 1
Provision of cultural leadership, excellence and innovation
The Corporation seeks to be recognised as promoting cultural leadership in the ACT, including through the development of strategic partnerships.
The Corporation also seeks to ensure that the activities and programs at its facilities are recognised for their excellence, innovation, and diversity.

Strategic Indicator 2
Promotion of community involvement in activities at Corporation facilities
The Corporation seeks to develop increased awareness of its facilities and activities amongst the ACT community and visitors to Canberra, and to ensure a strong community orientation, with proud and willing community support.
The Corporation also seeks to maintain and, where possible, to increase visitation to its facilities and participation in its programs, whilst recognising and balancing this with its cultural responsibilities, especially with regard to conservation.
In addition, the Corporation seeks to contribute to Canberra’s economic development and attractiveness as both a business and tourist destination.

Output Classes
	Total Cost1	Government Payment for Outputs	
	2008-09
Est. Outcome
$’000	2009-10
Budget
$’000 	2008-09
Est. Outcome
$’000 	2009-10
Budget
$’000 	
Output Class 1:
Cultural Facilities Management	13,185	13,704	7,105	7,435	
Output 1.1: Cultural Facilities Corporation	13,185	13,704	7,105	7,435	
Note:
1.	Total cost includes depreciation of $1.824 million in 2008-09 and $1.905 million in 2009-10.
Output Description
The Cultural Facilities Corporation manages a number of the ACT’s major cultural assets, comprising:
•	the Canberra Theatre Centre;
•	the Canberra Museum and Gallery and the Nolan Gallery; and
•	the ACT Historic Places (Lanyon, Calthorpes' House and Mugga Mugga).
In managing these facilities, the Corporation provides a range of cultural services to the community through the provision of activities (performing arts presentations, exhibitions, education programs, public programs and other events) at each site, and through the conservation and interpretation of the ACT Historic Places.
The Corporation also has responsibility for managing and developing the Civic Square precinct as a cultural focus of the ACT.

Accountability Indicators
	2008-09
Targets	2008-09
Est. Outcome	2009-10
Targets	
Output Class 1: Cultural Facilities Management	
Output 1.1: Cultural Facilities Corporation	
				
a.	Estimated number of visitors/patrons to facilities1, 2	344,000	316,000	310,000	
b.	Number of exhibitions at facilities managed by the Corporation3	21	19	18	
c.	Number of education and public programs at facilities managed by the Corporation4	350	400	400	
d.	Number of days venue usage at the Canberra Theatre Centre’s venues5	480	480	450	
e.	Customer satisfaction with quality of services provided by the Corporation, as measured by annual survey	80%	>80%	80%	
f.	Cost to Government per estimated visitor/patron to facilities managed by the Corporation6, 7	$20.65	$22.48	$23.95	
g.	Own sourced revenue as a proportion of total revenue for the Corporation8	39%	36.9%	37.1%	
				
Notes:
1.	The reduction in the 2008-09 estimated outcome relative to the 2008-09 target relates primarily to lower than projected theatre patron numbers due to the current economic downturn.  The reduction in the 2009-10 target from the 2008-09 target is recognition of the ongoing effect of the economic downturn on theatre visitors/patrons.  Some impact is also expected due to periods of closure at some historic places while major capital works are undertaken.
2.	This accountability indicator was originally ‘Number of visitors/patrons to facilities’ in the 2008-09 Budget papers.  During the audit of the 2007-08 financial statements the ACT Auditor-General suggested that as the indicator is measured by multiple systems that contain a degree of unavoidable variance, a more appropriate description of the indicator is ‘Estimated number of visitor/patrons to facilities’.
3.	The reduction in the 2008-09 estimated outcome relative to the 2008-09 target is due to lengthier display periods for each exhibition.  The reduction in the 2009-10 target from the 2008-09 target is recognition that lengthier display periods for exhibitions will continue and that a special exhibition held at Calthorpes’ House in 2008-09 will not take place in 2009-10.
4.	The increase in the 2008-09 estimated outcome relative to the 2008-09 target is due to high demand for education programs offered by the Corporation.  The increase in the 2009-10 target from the 2008-09 target relates to a continued meeting of this demand in 2009-10.
5.	The reduction in the 2009-10 target from the 2008-09 target relates to the anticipated effect of the economic downturn on theatre business.
6.	The increase in the 2008-09 estimated outcome from the 2008-09 target is due to a lower projected number of visitors/patrons.  The increase in the 2009-10 target from the 2008-09 target is due to a lower projected number of estimated visitor/patrons and to increased costs associated with additional repairs and maintenance, wage increases and indexation.
7.	This accountability indicator was originally named ‘Cost to Government per visitor/patron to facilities managed by the Corporation’ in the 2008-09 Budget papers.  Consistent with note 2, a more appropriate description of the indicator is ‘Cost to Government per estimated visitor/patron to facilities managed by the Corporation.
8.	The decrease in the 2008-09 estimated outcome relative to the 2008-09 target, and the 2009-10 target relative to the 2008-09 target are due to projected decreases in theatre revenues from an anticipated reduction in venue hirers.

Changes to Appropriation
						
Changes to Appropriation - Departmental						
 	2008-09	2009-10	2010-11	2011-12	2012-13	
Government Payment for Outputs	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	7,105	7,250	7,398	7,541	7,541	
						
2009-10 Budget Policy Adjustments						
Additional Repairs and Maintenance	 - 	177	 - 	 - 	 - 	
Efficiency Dividend	 - 	 - 	(37)	(38)	(38)	
						
2009-10 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	(9)	(9)	(9)	181	
Revised Superannuation Contributions 	 - 	17	15	14	14	
						
2009-10 Budget	7,105	7,435	7,367	7,508	7,698	

						
						
Changes to Appropriation - Departmental						
 	2008-09	2009-10	2010-11	2011-12	2012-13	
Capital Injections	Est. Out.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2008-09 Budget	1,164	325	334	342	342	
						
3rd Appropriation						
Canberra Theatre Centre Upgrades	44	 - 	 - 	 - 	 - 	
Historic Places Upgrades	71	 - 	 - 	 - 	 - 	
						
2009-10 Budget Policy Adjustment						
Historic Places Major Project	 - 	1,637	1,227	511	308	
						
2009-10 Budget Technical Adjustments						
Revised Indexation Parameters	 - 	 - 	 - 	 - 	9	
Rollover - Nolan Collection Gallery at the Canberra Museum and Gallery	(260)	260	 - 	 - 	 - 	
						
2009-10 Budget	1,019	2,222	1,561	853	659	

2009-10 Capital Works Program
 	Estimated	Estimated	2009-10	2010-11	2011-12	Expected 	
	Total	Expenditure	Financing	Financing	Financing	Completion 	
	Cost	Pre 2009-10				Date  	
 	$’000	$’000	$’000	$’000	$’000	 	
							
New Capital Works							
Historic Places Major Project1	3,683	-	1,637	1,227	511	Jun 2013	
							
Total New Works	3,683	-	1,637	1,227	511		
							
Capital Upgrades							
Canberra Theatre Centre	166	-	166					
ACT Museums and Galleries	148	-	148				
Historic Places	11	-	11				
							
Total Capital Upgrades	325	-	325				
							
Total New Capital Works	4,008	-	1,962	1,227	511		
							
Works in Progress							
							
Nolan Collection Gallery at the Canberra Museum and Gallery	260	-	260	-	-	Jun 2010	
							
Total Works in Progress	260	-	260	-	-		
	 	 	 	 	 		
Total Capital Works Program	4,268	-	2,222	1,227	511	 	
Note:
1.	$0.308 million forecast for the 2012-13 financial year.

Cultural Facilities Corporation
Operating Statement
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		Income								
		Revenue								
7,105		Government Payment for Outputs	7,105	7,435	5	7,367	7,508	7,698		
3,873		User Charges - Non ACT Government	3,683	3,781	3	3,922	4,055	4,055		
457		User Charges - ACT Government	457	457	-	457	474	474		
100		Interest	100	100	-	100	100	100		
39		Resources Received free of charge	39	39	-	39	39	39		
11,574		Total Revenue	11,384	11,812	4	11,885	12,176	12,366		
		Gains								
0		Total Gains	0	0	-	0	0	0		
11,574		Total Income	11,384	11,812	4	11,885	12,176	12,366		
		Expenses								
5,079		Employee Expenses	5,079	5,203	2	5,232	5,275	5,372		
706		Superannuation Expenses	706	729	3	737	763	763		
5,515		Supplies and Services	5,515	5,806	5	5,701	5,872	5,965		
2,014		Depreciation and Amortisation	1,824	1,905	4	1,979	2,022	2,045		
61		Other Expenses	61	61	-	61	61	61		
13,375		Total Ordinary Expenses	13,185	13,704	4	13,710	13,993	14,206		
-1,801		Operating Result	-1,801	-1,892	-5	-1,825	-1,817	-1,840		

Cultural Facilities Corporation
Balance Sheet
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
732		Cash and Cash Equivalents	308	214	-31	261	359	457		
705		Receivables	499	500	..	501	502	503		
26		Inventories	25	25	-	25	25	25		
79		Other	242	242	-	242	242	242		
1,542		Total Current Assets	1,074	981	-9	1,029	1,128	1,227		
		Non Current Assets								
34,098		Property, Plant and Equipment	48,764	49,231	1	48,963	47,944	46,708		
34,098		Total Non Current Assets	48,764	49,231	1	48,963	47,944	46,708		
35,640		TOTAL ASSETS	49,838	50,212	1	49,992	49,072	47,935		
		Current Liabilities								
460		Payables	443	443	-	443	443	443		
5		Finance Leases	13	13	-	13	13	13		
1,199		Employee Benefits	1,059	1,102	4	1,145	1,188	1,231		
123		Other	156	156	-	156	156	156		
1,787		Total Current Liabilities	1,671	1,714	3	1,757	1,800	1,843		
		Non Current Liabilities								
0		Finance Leases	71	71	-	71	71	71		
44		Employee Benefits	60	60	-	60	60	60		
485		Other	433	434	..	435	436	437		
529		Total Non Current Liabilities	564	565	..	566	567	568		
2,316		TOTAL LIABILITIES	2,235	2,279	2	2,323	2,367	2,411		
33,324		NET ASSETS	47,603	47,933	1	47,669	46,705	45,524		
		REPRESENTED BY FUNDS EMPLOYED								
28,165		Accumulated Funds	28,446	28,776	1	28,512	27,548	26,367		
5,159		Reserves	19,157	19,157	-	19,157	19,157	19,157		
33,324		TOTAL FUNDS EMPLOYED	47,603	47,933	1	47,669	46,705	45,524		

Cultural Facilities Corporation
Cash Flow Statement
  2008-09			  2008-09	   2009-10		  2010-11	    2011-12	  2012-13		
    Budget			Est.Outcome	   Budget	     Var	  Estimate	    Estimate	  Estimate		
    $'000			    $'000	   $'000	      %	    $'000	     $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
7,105		Cash from Government for Outputs	7,105	7,435	5	7,367	7,508	7,698		
4,342		User Charges	4,152	4,250	2	4,391	4,541	4,541		
100		Interest Received	100	100	-	100	100	100		
509		Other Revenue	509	511	..	511	511	511		
12,056		Operating Receipts	11,866	12,296	4	12,369	12,660	12,850		
		Payments								
5,009		Related to Employees	5,009	5,160	3	5,189	5,232	5,329		
706		Related to Superannuation	706	729	3	737	763	763		
5,484		Related to Supplies and Services	5,484	5,775	5	5,670	5,841	5,934		
574		Other	574	576	..	576	576	576		
11,773		Operating Payments	11,773	12,240	4	12,172	12,412	12,602		
283		NET CASH INFLOW/ (OUTFLOW) FROM OPERATING ACTIVITIES	93	56	-40	197	248	248		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
1,314		Purchase of Property, Plant and Equipment and Capital Works	1,409	2,372	68	1,711	1,003	809		
1,314		Investing Payments	1,409	2,372	68	1,711	1,003	809		
-1,314		NET CASH INFLOW/ (OUTFLOW) FROM INVESTING ACTIVITIES	-1,409	-2,372	-68	-1,711	-1,003	-809		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
1,164		Capital Injection from Government	1,019	2,222	118	1,561	853	659		
1,164		Financing Receipts	1,019	2,222	118	1,561	853	659		
1,164		NET CASH INFLOW/ (OUTFLOW) FROM FINANCING ACTIVITIES	1,019	2,222	118	1,561	853	659		
133		NET INCREASE/ (DECREASE) IN CASH HELD	-297	-94	68	47	98	98		
599		CASH AT BEGINNING OF REPORTING PERIOD	605	308	-49	214	261	359		
732		CASH AT THE END OF THE REPORTING PERIOD	308	214	-31	261	359	457		

Cultural Facilities Corporation
Statement of Changes in Equity
    Budget			Est.Outcome	    Planned		   Planned	   Planned	   Planned		
as at 30/6/09			as at 30/6/09	as at 30/6/10	   Var	as at 30/6/11	as at 30/6/12	as at 30/6/13		
   $'000			   $'000	     $'000	    %	    $'000	    $'000	    $'000		
33,961		Opening Balance	48,385	47,603	-2	47,933	47,669	46,705		
		Accumulated Funds								
-1,801		Operating Result for the Period	-1,801	-1,892	-5	-1,825	-1,817	-1,840		
		Reserves								
-1,801		Total Income And Expense For The Period	-1,801	-1,892	-5	-1,825	-1,817	-1,840		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
1,164		Capital Injections	1,019	2,222	118	1,561	853	659		
33,324		Closing Balance	47,603	47,933	1	47,669	46,705	45,524		
Notes to the Budget Statements
Significant variations are as follow:
Operating Statement 
•	government payment for outputs:  the increase of $0.330 million in the 2009-10 Budget from the 2008-09 estimated outcome is largely due to increased repairs and maintenance funding, wage increases and indexation.
•	user charges — non ACT Government:  the decrease of $0.190 million in the 2008-09 estimated outcome from the original budget is mainly due to an expected downturn in the level of activity at Canberra Theatre Centre venues.
•	employee expenses:  the increase of $0.124 million in the 2009-10 Budget from the 2008-09 estimated outcome primarily reflects wage increases.
•	supplies and services:  the increase of $0.291 million in the 2009-10 Budget from the 2008-09 estimated outcome primarily reflects additional repairs and maintenance expenditure and indexation.
•	depreciation and amortisation:  the decrease of $0.190 million in the 2008-09 estimated outcome from the original budget is mainly due to an increase in useful life estimates for a number of assets. 

Balance Sheet
•	cash and cash equivalents:
•	the decrease of $0.424 million in the 2008-09 estimated outcome from the original budget reflect lower user charges revenue ($0.190 million) and increased purchases of plant and equipment ($0.240 million); and
•	the decrease of $0.094 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly due to the Corporation internally funding some of its capital items.
•	receivables:  the decrease of $0.206 million in the 2008-09 estimated outcome from the original budget primarily reflects the receipt of insurance monies.
•	other current assets:  the increase of $0.163 million in the 2008-09 estimated outcome from the original budget is mainly due to higher work in progress expenditure associated with future productions at the Canberra Theatre Centre. 
•	property, plant and equipment:
•	the increase of $14.666 million in the 2008-09 estimated outcome from the original budget primarily reflects an independent upward revaluation of the asset base; and
•	the increase of $0.467 million in the 2009-10 Budget from the 2008-09 estimated outcome is mainly due to the Historic Places Major Project capital initiative.
•	current and non current employee benefits:  the decrease of $0.124 million in the 2008-09 estimated outcome from the original budget primarily reflects a downward revaluation of current leave liabilities.
•	other current liabilities:  the increase of $0.033 million in the 2008-09 estimated outcome from the original budget is mainly due to an increase in the amount of hirers’ deposits received by the Canberra Theatre Centre.
•	other non current liabilities:  the decrease of $0.052 million in the 2008-09 estimated outcome from the original budget primarily reflects a more accurate forecast based on the actual 2007-08 audited outcome.
Statement of Changes in Equity 
Variances in the statement are explained in the notes above.