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ANNUAL REPORT

SCHOENBERG

Sidney Myer Music Bowl

2010 Melbourne Symphony Orchestra – Annual Report

2010Melbourne Symphony Orchestra PTY LIMITED

Annual Report

Contents Page

Chairman’s Report 3

Corporate Governance Statement 5

Directors 7

Managing Director’s Report 8

The Year in Performance 10

Artistic Self-Assessment Processes 17

Audience Access to the MSO 18

Education and Community Outreach 19

Government and Private Sector Support 24

Donors 26

Key Performance Statistics 27

Annual Financial Report 29


Melbourne Symphony Orchestra at the Melbourne Town Hall

2010 Melbourne Symphony Orchestra – Annual Report Page 3

Chairman’s report

The Melbourne Symphony Orchestra’smission is to engage the largest possibleaudiences to experience the great musicperformed by our wonderful Orchestra andChorus. We do this through performances,broadcasts, recordings, and very importantly,our extensive education and communityprograms. While each year we aim to findincreasingly better ways make this vision areality, we can be very proud of ourachievements in all of these areas in 2010.

Without a secure financial platform fromwhich to work, of course, meaningful progressis very difficult. I’m pleased to report that,from a deficit in 2009 of more than$800,000, we concluded 2010 with a modestsurplus of $31,420. That is a remarkableturnaround, one helped immensely by ourprivate donors and patrons, our corporatepartners like Emirates, NAB and Powercor,and support from Government; ultimately,this result is also a fine tribute to the hardwork and commitment of all involved at the MSO. At year end, we retained strongreserves of more than $4 million heading into 2011.

One of the developments of which I am most proud was the Orchestra’s presence and involvement in the life of Melbourne,and indeed Victoria, beyond its traditionalclassical concerts in the city centre. Themusicians play an integral part in such major public events as the AFL Grand Final(the first one for the year, not the second!),the Melbourne Fashion Festival and thelaunch of the Melbourne Rebels rugby team.We also performed full-length concerts ingreater Melbourne – in Brighton, Frankston,Malvern, Moonee Ponds and Ringwood. This was in addition to our long- standingcommitment to performances throughoutregional Victoria. We gave evening concerts in Ballarat, Bendigo, Hamilton, Shepparton,Swan Hill, Warragul and Warrnambool,

and gave performances for primary andsecondary schoolchildren in most of thesecentres, and in the suburban venues, too.

The Orchestra’s strong spirit of engagementin educating young people (indeed people of all ages) about music was also evident inmany other community projects during the year, including our collaborations withFederation Square, the City of Melbourne’sArtPlay, the Australian National Academy of Music; the Baby Proms, presented inassociation with the Melbourne MusicFestival; the concert performed by the MSOChamber Players at the Queenscliff MusicFestival; Keys to Music with Graham Abbott,in collaboration with ABC Classic FM andthe free public concerts we presented in theMelbourne Town Hall to announce our 2011season.

In terms of our concert year in Melbourne,2010 was dominated by our successful movefrom Hamer Hall at the end of June. Therenovation of our main performance home is a key event in the life of the performingcompany, and our planned return to the ArtsCentre in 2012 will see us ready to take onthe many opportunities presented to us by the revitalised precinct of which the Hall will form so central a part. We are using ourtime in the Melbourne Town Hall – wheremany of our concerts take place duringHamer Hall renovation – to reflect on howwe engage the community and deliver greatmusic to people of all ages. To build on ouramazing history of achievement, we areworking to firmly establish ourselves as aninvaluable resource and cultural centrepiece in Melbourne. I would say our keywords aswe shape our future identity as a City and as an Orchestra are Energy, Engagement andOpportunity.

Following the retirement of long-servingManaging Director Trevor Green in February,

Matthew VanBesien joined us as ManagingDirector in February. Most recently the CEOof the Houston Symphony, he has brought atremendous passion and focus to theCompany and the issues we face in order tosecure a successful future. His understandingof the delicate balance the Company needs tofind, to ensure that our success is founded oninnovation, artistic excellence and financialresponsibility, is greatly respected by theBoard.

Emirates has been our Principal Partner since2004, and in 2010 renewed their partnershipwith us at this level for another two years. It isenduring relationships like this, with our keystakeholders, that are so vital to our ability todeliver our programs successfully.

HAROLD MITCHELL ACChairman

This statement outlines the MelbourneSymphony Orchestra’s corporate governancepractices in line with the eight Good PracticeGovernance Principles published andmonitored by the Major Performing ArtsBoard of the Australia Council for the Arts.These principles are based on therecommendations published by the ASX Corporate Governance Council. The statement sets out the MelbourneSymphony Orchestra’s compliance with the eight Principles as at the end of thefinancial and calendar year.

Principle 1:

Lay solid foundations for management and oversight

The practice of the MSO’s Board of directorsis governed by the company’s Constitution.

The Board delegates the management of theorganisation to the Managing Director andsenior management team, and retainsoversight of each of the MSO’s significantbusiness streams through Board sub-committees. Membership of thesub-committees includes at least one Boarddirector as well as senior management.Charters exist for each of the Board sub-committees. The directors who sit on theBoard sub-committees act as a Board interfaceby representing the Board and reporting backat full Board meetings.

Each year, a calendar of Board and Board sub-committee meetings is set. The Boardmet five times in 2010. In addition, the Board and senior management attend twostrategy days each year to review pertinentissues outside the scope of a regular Boardmeeting and develop a response andimplementation plan to these issues. The scope of the Board meetings include but are not limited to the MSO’s three-year

Business Plan, artistic program, budget for the forthcoming season and financial year,updates from the Managing Director andsubcommittees and any priority issues (suchas the arts precinct redevelopment). Membersof the senior management team report to theBoard face- to-face on a regular basis.

In 2010 the Board decided to re-organise theBoard sub-committees along the followinglines:

• Finance and Revenue Sub-Committee(MSO financials and long-term financialmodelling, earned income streams,contributed revenue streams, drivingdiversity in audiences)

• Governance and Community RelationsSub-Committee (Community relationshipsand musical partnerships, Governmentrelations and Education)

• Strategic Planning and TechnologySub-Committee (MSO New HomeStrategy, Periodic review and adjustment of MSO strategic plan, MSO branding and awareness, MSO’s relationship with the ABC, technology plans andimplementation support strategies, overall MSO vision)

• MSO Foundation and DevelopmentSub-Committee (Major gifts for MSOFoundation, Foundation structure re: endowment fund)

All Board subcommittees comprise Boardmembers in their areas of expertise, therelevant senior management representative/sand external experts where appropriate.

In addition, the MSO Artistic Committeecomprises management representatives, the Chief Conductor and/or artistic leader,Concertmaster and elected musicians. Itsmain purpose is to assess the quality of past

performances, performers and performancestandards of the Orchestra (both sections and individuals), take action where requiredto address performance issues, and to assessforthcoming projects. Significant findings of the Artistic Committee are reported to the Board. Regarding Education matters, the MSO Board also receives advice from the Education Advisory group, whichcomprises musicians, members ofmanagement and representatives from the teaching community who specialise in different age groups.

Principle 2:

Structure the Board to add value

The Board includes Directors with a range of skills including finance and accounting,business (both public companies and smallbusiness) and commercial experience, law,government, marketing, fundraising, I.T. andphilanthropy. This experience is set out in theDirectors page which follows on page 7.

Directors are appointed for an initial term ofthree years. Terms may be extended at thediscretion of the Chair and the Board.

As noted in Principle 1, the Board delegates the oversight of the MSO’s significant businessstreams to the Finance and Revenue,Governance and Community Relations,Strategic Planning and Technology, and MSOFoundation and Development Sub-committees.

Page 4 2010 Melbourne Symphony Orchestra – Annual Report

Corporate Governance Statement


Principle 3:

Promote ethical and responsible decision-making

The MSO Board is charged with a number of procedural matters including:

• Review of annual operating plan andbudget

• Articulation of the MSO’s vision and mission

• Establishment and communication ofexpectations in regard to the cultural valuesand ethics of the Company

The MSO, in its formal Code of Conduct,outlines its expected standard of conductbased on three main principles:

• Professionalism and integrity

• Fairness and equity

• Avoidance of real or apparent conflict of interest

The Board Induction Manual includes a copy of the MSO Code of Conduct, and inaddition, the Board holds itself to the higheststandards of ethical and responsible decisionmaking. Codes of conduct exist for musiciansand administrative staff, and are included in aBoard Induction manual which is provided tonew directors.

Principle 4:

Safeguard integrity in financial reporting

The Finance and Revenue Sub-Committeecomprises at least two directors and companysecretary and, by invitation, the ManagingDirector, Chief Financial Officer as well as other operational staff and externalrepresentatives as required. The committeemeets at least quarterly and its functionsinclude:

• Review and monitoring of progress againstStrategic Plan and Budget/forecast, andreporting to the Board on management and annual financial statements

• Management of the MSO’s governingpolicies and procedures, specificallyapproving any new or altered policies

• Provision of input to management insetting the Strategic Plan and Budget

• Evaluation and approval of executiveexpenditure

• Ensuring compliance with applicable laws and regulations

• Ensuring strong internal control, policies and procedures are in place

• Development and monitoring of investment policy

• Approval of Capital expenditure.

The Finance and Revenue Sub-Committeerequires the Managing Director and ChiefFinancial Officer to attest in writing to thetruth and fairness of the MSO’s annualfinancial statements. In addition, theManaging Director and Chief FinancialOfficer must attest that the operational results are in accordance with relevantaccounting standards. The annual accounts are independently audited.

Principle 5:

Recognise and manage risk

The Board delegates oversight of riskmanagement procedures and actions to allBoard sub-committees, and recognition andmanagement of risk to the Managing Directorand senior management team. The charter of the Finance and Revenue Sub-Committeeincludes the safeguarding of company assetsincorporating the amendment of thecompany’s investment policy. Other financialrisk factors and the strategies used by theBoard to mitigate these risks are listed in note 22 to the annual financial report.


Corporate Governance Statement Cont.

Principle 6:

Encourage enhanced performance

The charters of the MSO Board and of the Governance and Community Relationssub-committee include the requirement to:

• Recommend to electing bodies possiblenew Board members, with regard to thediversity of the skills of the MSO Boardmembers and organisation skillrequirements

• Develop Board criteria and skillrequirements

• Evaluate the Board’s performance as awhole and of individual members

• Actively manage the Board rotation system

• Ensure succession planning for ManagingDirector and other key management rolesincluding Chief Conductor and/or artisticleader

• Ensure that new Board members areadequately educated about the MSO

In addition, the Board relies on the advice ofthe Artistic Committee, a group comprisingthe Managing Director, Director of ArtisticPlanning, Director of Operations andOrchestra members. The group meets on a regular basis to assess and improve artisticquality and performance standards, andreview artistic standards and achievements of the MSO’s program.

Principle 7:

Remunerate fairly and responsibly

The Board is specifically charged withensuring the achievement, development and succession of the Company’s seniormanagement team, including remuneration.The Board assesses and, when necessary, takesprofessional advice on market benchmarks for remuneration. The Board provides theManaging Director with parameters withinwhich to negotiate musician andadministration staff agreements.

The Board itself is not remunerated.

Principle 8:

Recognise the legitimate interests ofstakeholders

The Board is charged with ultimateresponsibility to ensure that productiveworking relationships with key MSOstakeholders are maintained. The day to daymanagement of key stakeholder relationshipsis delegated to the MSO’s Managing Directorand in turn to the senior management team.The MSO actively encourages and actionsaudience feedback via its website as well as by verbal, postal and electroniccommunication channels.

The Managing Director, senior managementteam and Board members regularly meet with key stakeholders including government,sponsors, audiences, the Orchestra itself andthose providing professional advice to theMSO. From 2009, a peer-review panel wasimplemented; providing valuable additionalartistic feedback to Board and managementregarding orchestral quality and performancestandards.


Directors at 31 december 2010

Name Board Committees Skills Date of Appointment

Mr H Mitchell AC Media, Philanthropy & General Business 27 November 2008

Mr M VanBesien FSC, GSC MSO Managing Director 15 February 2010

Hon. A Goldberg AO QC GSC Legal 15 March 2000

Dr. B. Adams MITSC, DSC Government and General Business 24 November 2004

Mr P Biggs MSC Marketing and Commercial Business 1 January 2007

Ms A Peacock DSC Fundraising and Corporate Sponsorship 1 January 2007

Mr M Ullmer FSC Financial and General Commercial Business 1 January 2007

Mr K Wong MITSC, DSC Information Technology 1 January 2007

Mr A McKean Employee Elected Director 23 March 2009

Cr J Kanis MSC Local Government and Legal/IR 23 March 2009

The names of the director/s of the company who retired during the year and the date of their retirement are:

Mr T Green Director ceased 29 January 2010

FSC = Finance Sub-CommitteeGSC = Governance Sub-CommitteeMSC = Marketing Sub-CommitteeMITSC = Marketing IT Sub-CommitteeDSC = Development Sub-Committee

Directors of the Company during the financial year and until date of this report were as follows:

Name Director since

Mr H Mitchell AC (Chairman) 27 November 2008

Mr T.J. Green 8 February 1999 (ceased 29 January 2010)

Mr M VanBesien 15 February 2010

Hon. A Goldberg AO QC 15 March 2000

Dr. B. Adams 24 November 2004

Mr P Biggs 1 January 2007

Ms A Peacock 1 January 2007

Mr. M Ullmer 1 January 2007

Mr K Wong 1 January 2007

Mr A McKean 23 March 2009

Cr J Kanis 23 march 2009

Company Secretary

Mr Oliver Carton Appointed 13 February 2004


Managing Director’s report

Any performing arts company of theMelbourne Symphony Orchestra’s size and ambition is compelled to recognise theneeds of the communities it serves. “Build it and they will come,” it used to be said, or in musical terms, “present great art andaudiences will attend.” Yet, along with themany thousands of people in Melbourne,Geelong and regional Victoria who arepassionate about the music our Orchestra and Chorus perform in our main subscriptionand touring programs, there are manythousands more whose main point of contact with us will be through our MSO Pops programs, concerts with leading entertainment figures like Stingand Tim Minchin, or appearances at suchmajor public events as the AFL Grand Final,the Melbourne Fashion Festival and thelaunch event for the Melbourne Rebelsrugby franchise.

It’s this diversity of activity, and commitmentto be active throughout Melbourne andVictoria, that are absolutely crucial to ourongoing success, and were key factors in ourturnaround from deficit to surplus in 2010.We also spent much of the year re-focussingon another central activity that has massiveimplications for the Orchestra’s long-termrelevance: our Education and CommunityOutreach program. Although our inauguralEducation Week – our week-long, ‘open-house’ for MSO learning activities – takesplace later in 2011, the groundwork for thisintensive showcase of workshops, forums and performances was ‘laid in’ last year.

During 2010, our collaboration with the City of Melbourne’s ArtPlay strengthenedconsiderably, with the introduction of a new ArtPlay/MSO ensemble, City Beats; and our MSO Jams and Family Jamsprograms continued to increase theirattendance and engagement. Also significantwas the growing success of our PizzicatoEffect program at Meadows Primary School,which received not only more resources andfocus internally, but was featured in severalmedia publications and a feature story onABC TV’s 7:30 Report.

Much of the year was dominated for us by the closure of the Hamer Hall in June for amajor renovation, and our temporary moveback to the Orchestra’s original home, theMelbourne Town Hall, for many of ourconcerts. The interim challenges of movingfrom a purpose-built concert hall of the late20th century to a Victorian Town Hall notdesigned specifically for orchestral music areconsiderable, and our Operations andMarketing staff, in particular, worked veryhard in the latter half of the year to ensurethat MSO performances were greatexperiences for both our audiences and ourmusicians.

While our time in Town Hall is providing us with a valuable opportunity to lookcarefully at our performance offerings, the re-opening of Hamer Hall, scheduled for mid-2012, is a key event in the life of the performing company. With dramaticimprovements in acoustics, facilities, foyer

spaces and the customer experience, the newhall is set to provide a tremendous showcasefor the Orchestra and its many diverseprograms to audiences of all ages andinterests.

Hand in hand with our constant re-examination of our mix of activity, we endeavoured to build a longer-termfinancial model for the MSO, to betterunderstand the company’s financial structureand the work ahead. There is strongcommitment from all stakeholders to see the MSO not only thrive as an artisticenterprise, but to be supported by anorganisation built on best practices, soundfinancial acumen and increased resources.Now and for the future, we must ensure thatthe MSO increases private philanthropy andcorporate support, delivers robust ticket salesand earned income and secures generous andadequately indexed government funding. At the heart of our mission is great symphonicmusic, but we must always understand what is practically necessary to truly support andnurture the MSO’s artistic development andits educational and community programs.

While our Orchestra and Chorus are in fine artistic shape, the musicians, choristers,staff, audiences and key stakeholders – fromMSO Friends groups through to high-levelcorporate supporters – all acknowledge theimportance of appointing an artistic leader for the MSO. While this occupied much ofour attention during 2010, it will be sometime before any announcement is made.


It is of the greatest importance to us toappoint someone who believes in theCompany’s goals of community engagementand ambassadorship, artistic excellence,product diversity and innovation, and webelieve in taking the time to appoint the right person. Given that all these qualitiesneed to be fully aligned with great artistry and outstanding conducting abilities, thisprocess will, inevitably, not be concludedswiftly.

In terms of major internal appointments,2010 saw us welcome a new Director ofMarketing, Merri Hagan, and a number of new orchestral musicians. At the end of the year, Matthew Tomkins passed his trial as Principal Second Violin. We also welcomedLerida Delbridge to the First Violin section,Philippa West and Patrick Wong to theSecond Violin section, Justin Williams to theviolas, Michelle Wood and Rohan de Korte tothe Cello section and Saul Lewis as PrincipalThird Horn.

On a personal note, I have enjoyedimmensely my first year as the MSO’sManaging Director, having arrived inFebruary 2010. I’d like to thank mypredecessor, Trevor Green, for his kind efforts during my transition, our Chairmanand Board of Directors for their full andongoing support, the countless audiencemembers, patrons and donors who have been so welcoming and encouraging, and to our MSO family of musicians and administrative team – all of whom

are extraordinarily gifted and committed to our Company’s purpose; I’m particularlyhonoured to work with them.

Finally, I must re-iterate our Chairman’sacknowledgement of our corporate andphilanthropic supporters, the wonderfulMSO Friends groups in Melbourne andGeelong, and our own MSO Board ofDirectors for their dedication and generosityin 2010. Along with the substantial fundingwe receive from the CommonwealthGovernment through the Australia Council,from the Victorian Government through Arts Victoria and from the City ofMelbourne, their collective passion andsupport for the MSO helps ensure that ourOrchestra and Chorus are thriving, vibrantand integral parts of this community.

MATTHEW VANBESIENManaging Director


2010 – the year in performance

Following the commercial projects in the early part of the year – including threeperformances with The Beach Boys inJanuary and three performances with Nigel Kennedy in February – the 2010 Sidney Myer Free Concerts were blessed with predominately good weather and fantastic audiences. The MSO was joinedfor these concerts by a number of local artistsincluding violinist Rebecca Chan, pianistMaxwell Foster, cellist Julian Smiles,conductors Benjamin Northey and RichardGill, and soloists and the chorus of VictorianOpera. The Opera Gala with Victorian Operaon the second Saturday proved to be the mostambitious program of the four.

A high-profile project early in 2010 showedthe remarkable development of theMelbourne Symphony Orchestra Chorussince the integration of the MSO andMelbourne Chorale in January 2008.Opening the Master Series under the baton of Vladimir Ashkenazy, in Rachmaninov’s

Cantata The Bells, the Chorus gained ravereviews, from conductor, audience, orchestramembers and media alike. The choristers, and chorus master Jonathan Grieves-Smith,have proved to be wonderful advocates for the MSO and their further high-profileengagements with the Orchestra later in theyear included Ravel’s Daphnis and Chloeunder Sir Andrew Davis and Britten’s War Requiem under Tadaaki Otaka, as well as their own a capella performances.

Under Brett Kelly’s direction, the preliminaryconcert of our 2010 Cybec 21st CenturyComposers scheme was highly successful,with a full Iwaki Auditorium and a standardof composition that seems to rise year on year.The two works that went through to beperformed at the Metropolis performance atthe Malthouse on Wednesday 5 May underthe baton of Bramwell Tovey were LunaticFringe by Amy Bastow and Icy Disintegrationby Annie Hsieh. The orchestra alsoparticipated in Symphony Australia’sConductor Training scheme duringFebruary, in which five young Australianconductors were mentored for the week byGerman pedagogue Lutz Koehler, as well ashaving valuable podium time in front of theMSO.

The Metropolis Festival was outstandinglysuccessful, thanks largely to the input ofBramwell Tovey, conductor and curator of thethree concerts. The repertoire focused on thecrossover area between contemporary classicalmusic and jazz, and the concerts werepresented in association with the MelbourneInternational Jazz Festival. Maestro Toveywas perfect casting, both for the repertoireand the occasion. He was humorous andenlightening in his spoken introductions, henavigated the MSO through some extremelytricky scores, was piano soloist in his ownmusic and even found time to lead a post-

concert four-piece jam in the foyer of theCUB Malthouse Theatre. The performance ofMark-Anthony Turnage’s Blood on the Floor,which made up the second concert in theFestival, was one of the true highlights of thelast few years of music-making at the MSO.

Vladimir Ashkenazy


Maestro Tovey was also a great help to thetwo young composers whose Cybec 21Cworks were performed at the MetropolisFestival; as well as interpreting their worksand finding additional time for advice andencouragement, he also offered to find anopportunity to perform the works with hisown orchestra, the Vancouver Symphony.

The standard of visiting conductors in theearly part of the year was high. After VladimirAshkenazy’s opening concerts of the season,Alexander Shelley – the young Britishconductor who has now visited the MSOthree times in the last three years – conducteda thrilling programme of Revueltas, Rodrigo,Bernstein and Ravel. Tadaaki Otakaconducted his first official concerts as theOrchestra’s Principal Guest Conductorwith a solid account of Beethoven’s EroicaSymphony, while Andrew Litton returned tothe MSO podium after an absence of 15 yearsand produced a polished reading of Strauss’ A Hero’s Life.

The MSO then recorded two discs for ABCClassics: orchestral music of Richard Millswith the composer conducting and Dvorák’sNew World Symphony under Tadaaki Otaka.The first of these has already been released, to much acclaim.

The MSO Chorus performed two a capellaconcerts, on tour in Albury and in theMelbourne Recital Centre, under JonathanGrieves-Smith’s direction. Both of theseconcerts featured Brahms’ A GermanRequiem, which was later committed to discwith the MSO and Johannes Fritzsch inrecording sessions in December.

Our Meet the Orchestra concerts in April,designed for primary school children inGrades 3-6, were very successful, and it was particularly gratifying to see BenjaminNorthey – the MSO’s Education Conductor– develop so assuredly in his concertpresentation.

Swiss conductor Mario Venzago returned tothe MSO for the final concerts in Hamer Hallbefore its closure for renovation, and achieved

wonderful things in Liszt, Ravel and Haydn;the stage-managed orchestral withdrawal atthe end of the Haydn Farewell Symphonymade for a fitting final concert before closure.Shortly thereafter, the first weekend of theMSO’s residency at the Melbourne Town Hallproved to be a great success, both in customerrelations and in artistic terms. Principal GuestConductor Tadaaki Otaka led the orchestra inone of his signature pieces, Rachmaninov’sSymphony No.2, which was recorded forrelease on our MSO Live series on ABCClassics. The first half of the program was also Rachmaninov, his Piano Concerto No.3,and the visit of American virtuoso GarrickOhlsson proved to be one of the highlights of the season. It is rare to hear the workperformed with such extraordinary delicacy as well as technical accuracy.

Other mid-year artistic highlights includedthe visit of Sir Andrew Davis, who managedto slot in a week into his schedule at shortnotice following his great success with the

Tadaaki Otaka

Sir Andrew Davis


MSO in 2009. His wonderful interpretationof Ravel’s complete ballet Daphnis and Chloeincluded the MSO Chorus, while theperformance by Andrew Bain in Mozart’sHorn Concerto No.4 proved to be a fittingshowcase for our Principal Horn. Finnishpianist, Olli Mustonen, began his three-yearcycle of the six Beethoven Piano Concertos at the Melbourne Recital Centre; standingovations are rare in Melbourne but theaudience reaction was testament to hisextraordinary interpretation.

June and July were very busy months in termsof Education and Outreach. MSO musicianswere involved at the Hamer Hall CommunityDay in early July while MSO Jams atFederation Square during the winter schoolholidays attracted record numbers ofparticipants. June also saw the latest instalmentof the flagship collaboration between the MSOand ArtPlay, a relationship we hope willdeepen in 2011, with involvement in ourBeethoven Festival and Education Week.

In August, Orchestra and Chorus worked withJohannes Fritzsch, the Chief Conductor of the Queensland Symphony Orchestra inperformances with Australian soloists Li-Wei(cello) and Amir Farid (piano); Fritzschexcelled in the central European repertoire that is his speciality. He also found time in his schedule to rehearse the MSO Chorus, in advance of the ambitious Brahms GermanRequiem recording project for ABC Classics in November/December; during this rehearsalperiod he forged an excellent relationship thechoristers.

The MSO undertook numerous projects withthe Melbourne-based conductor BenjaminNorthey in the second half of the year. Theseincluded regional tour concerts in Ballarat,Warrnambool and Hamilton with associatedschools concerts; Classic Kids performancesat the Iwaki Auditorium, and the educationconcerts for secondary schools as part of theMetropolitan Town Halls tour. It waswonderful to see the relationship with Bencontinue to grow as his skills as a presenter

and communicator, as well as a musician,flower. His relationship with the MSO,already formalised as Conductor of ourEducation Program was enhanced greatly

2010 – the year in performance Cont.

Olli Mustonen

Benjamin Northey


when, towards the end of 2010, he wasnamed Patricia Riordan Associate ConductorChair. The Metropolitan Town Halls tourevening concerts took an all-Mozart programto Brighton, Malvern, Ringwood andMoonee Ponds, under the direction of theOrchestra’s Associate Concertmaster RoyTheaker.

Other education work in the third quarterincluded the second in Richard Gill’s EarsWide Open series which focused on Ravel’sSuite from Mother Goose. This was the firstEars Wide Open concert outside Hamer Hall.Both sets of Classic Kids concerts in theIwaki Auditorium in the second half of theyear proved to be among the most successfulset of children’s concerts of the recent past. The energy and balance of education andentertainment provided by the Playschoolpresenter Jay Laga’aia gave the first series ofevents in August a unique flavour.

The second set of Classic Kids performancesfeatured Noni Hazlehurst in a presenting

role. In these, for the first time, Classic Kidsutilised lighting and visual imagery, in thedepiction of the story of Maximus Musicus,the musical mouse. The reception to thisshow was overwhelmingly positive andshowed the need to continually push theboundaries in our presentations to children.Highly successful public Jams at FederationSquare plus our ongoing work with primaryschool children at Broadmeadows with thePizzicato Effect completed a busy year forthe Education team.

The MSO’s ever-popular Chamber PlayersSeries once again provided MSO musicianswith opportunities to work in a chambersetting. The 2010 series, with its uniqueSunday morning slot, attracted packed housesto the Iwaki Auditorium. Masterworksperformed during the season includedSchoenberg’s Transfigured Night, Schubert’sTrout Quintet and Beethoven’s Septet.

A decision was taken not to re-audition theentire MSO Chorus as planned. Instead,

Jonathan Grieves-Smith concentrated onindividual development sessions with theChorus members; in this manner, theemphasis was placed on raising the standardof the existing membership before lookingagain at re-auditions. This also allowed us tomaintain higher numbers for big choralworks, such as Orff’s Carmina Burana, duringthe 2011 season. The Chorus performed an acapella programme in Brighton and in St.Patrick’s Cathedral in September before theannual performances of Messiah in December.

Due to the closure of Hamer Hall, there wereonly two MSO Pops programs in 2010, thefirst featuring talents of Anthony Inglis in aconcert of ‘athletic’ music entitled SportingScores. The second, called Some EnchantedEvening, was devoted to music by Rodgersand Hammerstein, in which three visitingartists from London’s West End packed theArts Centre’s State Theatre for two sold-outperformances.

The last quarter of the year was full of artistichighlights, not just of this season but of recent

Richard Gill


2010 – the year in performance Cont.

years. Chief amongst these was the visit of one of the most important artistic voices ofour time, Thomas Adès, for concerts in theMelbourne International Arts Festival,

which culminated in a program with theMSO. This included performances of bothhis Piano and Violin concertos under hisdirection, and not only featured outstandingsolo and orchestral playing (by the composer’sown admission), but also expanded ourhorizons about what kinds of performancesare possible at the Melbourne Recital Centre.

Swiss Maestro Charles Dutoit returned to the MSO after a gap of 32 years, and had aremarkable effect on the Orchestra’s sound,ensemble and performance levels across histwo weeks. His Friday night performance of Rimsky-Korsakov’s Scheherazade was thesingle finest MSO night many can remember,while the Orchestra also rose to the notoriouschallenges of Richard Strauss’ Suite from Le Bourgeois Gentilhomme; efforts are alreadyunderway to secure Dutoit’s return as soon aspossible. He was joined for his two programsby outstanding soloists: Dutch mezzo-sopranoChristianne Stotijn, who sang Berlioz’ songcycle Summer Nights, and flamboyant Frenchpianist Jean-Yves Thibaudet, who was soloistin Saint-Saëns’ Piano Concerto No.5Egyptian.

Another conductor spending two weeks with the MSO – although someone who has performed with the Orchestra almostevery season for a decade – was MarkWigglesworth, whose two programs (and other associated events) concentrated on music written in the year 1910. Markachieved outstanding results across his two weeks, notably in Strauss’ Suite from Der Rosenkavalier and Sibelius’ SymphonyNo.4. Mark also collaborated with Canadianviolinist James Ehnes for a memorableperformance of Elgar’s Violin Concerto, while James’ performances of Vivaldi’s The Four Seasons in Melbourne Town Halland the Frankston Performing Arts Centreproduced sell-out houses.

In October, the MSO once again collaboratedwith the talented composers of the Universityof Melbourne and their teaching staff in aday of workshops. Six young composers –Mike Fitzpatrick, James Hodson, PhilNoack, Andrew Perkins, Felipe PintoD’aguiar and Catherine Sullivan – had the opportunity to hear their worksperformed by the MSO with feedback andadvice coming from orchestra members andconductor Benjamin Northey. This is aninvaluable program in assisting a composer’sdevelopment, and builds on the importantrelationship between the Orchestra and thestudent community of Melbourne.

December brought not only the annualperformances of Messiah but also the MSOChorus’ first commercial recording –Brahms’ A German Requiem for ABC Classics,under the baton of Johannes Fritzsch, withvocal soloists Nicole Car and Teddy TahuRhodes. This is a flagship project for the MSO,which will provide international benchmarkingfor Chorus and Orchestra alike.

Charles Dutoit


Over the first weekend in December, theMSO promoted three concerts in PlenaryHall at the new Melbourne Exhibition and

Conference Centre, marking the MSO’sinaugural performances in this venue. Thefirst event featured Australian pop groupHuman Nature, while the second two wereaimed at family audiences with a collection ofsome of the most beloved music from Disneyfilms. Artistically, the Disney in Concertshows were very satisfying, with an excellentcast of North American singers underBenjamin Northey’s baton and utilising stills from the films; this program alsodemonstrated that Plenary Hall is a viablealternative as a venue for amplified sound,while the different seating configurationsallow halls of varying sizes.

The annual performances of Handel’sMessiah had a number of differences in 2010:the decision to include a performance in oursubscription series at Robert Blackwood Hall,Monash University, was successful; thisconcert attracted the largest audience of the2010 Monash series, while the closure ofHamer Hall meant that the city performances

were given at the Melbourne Recital Centre;this proved to be an excellent acoustic for Roy Goodman’s historically-informedperformance, which featured especiallywonderful solo singing from tenor AndrewStaples.

HUW HUMPHREYSDirector of Artistic Planning

Mark Wigglesworth

Melbourne Symphony Orchestra ChorusJonathan Grieves-Smith Chorus Master

Jean-Yves Thibaudet Bramwell Tovey

The MSO in performance at the Melbourne Town Hall

2010 guest artists included:


2010 Artistic Self-Assessment Processes

Internal Processes

In 2010, the MSO Artistic Committeewas made up of management representatives,Concertmaster, and elected musicians. Itsmain purpose is to assess the quality of pastperformances, performers and performancestandards of the orchestra and to assessupcoming projects and program choices.

During 2010, the Artistic Committee met on six occasions. All meetings were minutedand the agenda items included, but were not limited to:

• Review of performances in 2010, including soloists, conductors and programming choices

• Orchestral performance standards

• Audition processes

• Commercial projects

• Rostering issues

• 2011 repertoire and season plans

• Future artistic leadership issues

In addition, the MSO Artistic LeadershipCommittee comprises four managementrepresentatives (including one boardmember), and four elected MSO musiciansfrom the Artistic Committee. Its mainpurpose is to consider various ArtisticLeadership models as well as identify andresearch potential Chief Conductorcandidates for consideration.

Established since the integration of theMelbourne Chorale and the MelbourneSymphony Orchestra, the Chorus Committeecomprises eight elected members of the MSOChorus plus the Chorus Master and Chorus

Co-ordinator; the Director of ArtisticPlanning and Managing Director also attend from time to time. Since mid-2010,the Committee have formally discussed issuesof artistic quality and performance standard,which is then fed back to management inwriting.

The MSO continues to work diligently tomaintain a formal and transparent procedurefor managing artistic proficiency for itsorchestral musicians. This process continuesto be refined.

External Processes

The MSO’s concerts continue to be reviewedon frequent basis through the media,primarily through Melbourne newspapers.More than 80% of its mainstage concerts had published reviews in 2010.

Visiting artists (both conductors and soloists)continue to provide feedback throughinformal discussions with the Director ofArtistic Planning and/or the ManagingDirector. Where appropriate, this feedbackwas then tabled at the Artistic Committeemeetings for further discussion. Throughthese discussions, the MSO was able to obtain these artists’ feedback about theperformance of the Orchestra and benchmarkthe Orchestra’s performances against otherorchestras with which the artist hadperformed.

The MSO continues to receive feedback from recording partners with each programrecorded through ABC Classic FM, receivinga Live Music Production Advice, whichcontains an assessment of the performance by the Orchestra as well as views on itssuitability for broadcast.

The MSO also received audience feedbackinformally through letters, feedback via itswebsite, verbal feedback in person at theconcerts and well as via telephone and social media.

In 2010, the MSO continued the formalisedprocess of self-assessment through the Peer Review Panel. This panel comprisesmembers of Melbourne’s arts community,including journalists, music educators,performers and arts administrators. Panelmembers attend approximately five concertsper year from our core Master and GreatClassics series along with Town Hall Promsand various other programs. Confidentialfeedback is received regarding theperformances of conductors, soloists and the Orchestra. Other considerations are givento concert presentation; repertoire selectionand their overall enjoyment of the concerts.This information is presented to the ArtisticCommittee for feedback and review.

The MSO Educational Advisory Group,established in 2009, continued its processthroughout 2010. The group comprisesmanagement representatives, externalspecialists in Music Education, and electedMSO musicians. Its main purpose is to review MSO Education activity, consider and ensure said activity is in line with thecurrent state curriculum and to provide aforum in which MSO Management andplayers can access expert advice.


2010 AUDIENCE ACCESS TO THE MSO

The Melbourne Symphony Orchestraendeavours to maintain a balance between the financial viability of its operations and thedesire to eliminate barriers to entry that mayexist for many people in the community.

Price

The Melbourne Symphony Orchestra’s 2010 pricing policy offered a diverse pricingstructure, with adult single tickets rangingfrom $20 to $170 and new and existingsubscribers offered up to 33% discount onsingle ticket prices, ensuring that theMelbourne Symphony Orchestra experienceremained affordable to music loversthroughout the community. In addition, alimited number of $40 ‘last minute rush’ tickets are availableone hour prior to most performances.

The Melbourne Symphony Orchestra alsodelivered its long-standing commitment tofree concerts with four free performances inFebruary 2010 at the Sidney Myer MusicBowl, before an audience of 40,000.

The Melbourne Symphony Orchestra offersspecial incentives to the following groups withspecial needs:

• Primary and Secondary School Students,through an extensive education programand low-price tickets to main seasonconcerts.

• The elderly, through low-price single andsubscription ticket options to the concertseason, including weekend matinees withspecial discounts available to Seniors’ Cardholders for selected concerts.

• Young people, through special StudentPassport packages designed to introducethem to orchestral music and the benefits

of subscription for only $15 per concert.$20 ‘student rush’ tickets are available onehour prior to every performance of themain season (unless already sold out).

• The physically impaired, throughperformances in venues which provideaccess to people with disabilities, andthrough cooperation with Arts Access,through which the MSO provides acomplimentary ticket to a careraccompanying a concertgoer with adisability

Location

The MSO continued to use a variety ofvenues within the City (The Arts Centre –Hamer Hall and State Theatre, MelbourneTown Hall, Sidney Myer Music Bowl, ABC Southbank Centre, Melbourne RecitalCentre, CUB Malthouse and Plenary Hall at the Melbourne Convention and ExhibitionCentre) as well as venues in the greatermetropolitan area, including RobertBlackwood Hall at Monash University in the south-eastern suburb of Clayton,Frankston Cultural Centre, Malvern TownHall, Brighton Town Hall, The George WoodPerforming Arts Centre (Ringwood) and the Clocktower Centre in Moonee Ponds.The Orchestra presented a five-concertsubscription season at Costa Hall in Geelong,and also performed in the regional centres of Ararat, Ballarat, Bendigo, Dandenong,Frankston, Hamilton, Sale, Shepparton,Warragul and Warrnambool, giving schoolsand evening concerts in each venue.

Listening Opportunities

As an independent company since 2007, the organisation continued its longrelationship with ABC Classic FM, with all major concert programs being broadcastnationally. These broadcasts give theopportunity for the whole of Australia (both regional and metropolitan centres) to access the work of the MSO. More than 40 concerts were broadcast in 2010.


Education and Community Outreach 2010

YOUNG ARTISTDEVELOPMENT

Cybec 21st Century Australian Composers Program

The annual Cybec 21st Century AustralianComposers Program saw four youngAustralian composers – Amy Bastow, AlexPozniak, Annie Hsieh and Charlie Sdraulig –complete a commission for an ensemble ofMSO musicians, performed in a free publicperformance in February 2010. All under theage of 30, the composers were fromMelbourne and Sydney and had spent severalmonths working with their mentors – JulianYu, Brenton Broadstock, Mary Finsterer andMatthew Hindson – on their ten-minuteorchestral composition. The two works byAmy Bastow and Annie Hsieh were thenselected to be performed again at theOrchestra’s Metropolis concerts in May 2010.

The Cybec 21st Century Australian ComposersProgram is made possible through the generoussupport of The Cybec Foundation.

2010 Young Performers Awards

The MSO hosted the first two stages of the ABC/Symphony Australia YoungPerformers Awards for Victorian applicantsin the Iwaki Auditorium. A panel made up ofthe MSO’s Director of Artistic Planning HuwHumphreys; the Orchestra’s Concertmaster,Wilma Smith; the MSO Principal Piccolo,Andrew Macleod; pianist Caroline Almonteand ABC Classic FM’s Stephen Snellemanheard 64 young musicians audition for theprestigious title.

Of these emerging artists, four Victoriansprogressed through to the Stage III round.From this, one Victorian, clarinettist AshleySmith, competed in the Grand Final concert,hosted by the Queensland SymphonyOrchestra and conducted by SymphonyAustralia Assistant Conductor Sarah-GraceWilliams. The MSO’s Wilma Smith joinedRichard Wenn, Stephen McIntyre and MarkoLetonja on the adjudication panel; theyannounced Queensland pianist Oliver She the winner with his performance ofRachmaninov’s Third Piano concerto.

Oliver was awarded a $20,000 cash prize, a professionally-produced CD of his winningperformance, concert engagements withmajor Australian symphony orchestras, as wellas his own recital. He was also presented withthe David Paul Landa Memorial Scholarshipfor Pianists – a biennial scholarship valued at$25,000.

Family Classic Kids


Education and Community Outreach 2010 Cont.

Australian Youth Orchestra /Melbourne Symphony OrchestraString Fellowships

The Melbourne Symphony Orchestracontinued its collaboration with theAustralian Youth Orchestra in thepresentation of the String Fellowshipprogram.

Nine string players from across Australia were accepted into the Fellowship program,spending one week with the MSO. Duringthis time participants were assigned a mentorfrom within the Orchestra, who providedindividual feedback and tuition throughoutthe week. In addition to attending and playing alongside MSO musicians duringrehearsals with conductor Andrew Litton,students participated in various professionaldevelopment sessions including concerto and excerpt preparation workshops, mediatraining, and a seminar on life as a professional

musician. The week culminated with eachFellow completing a casual audition for theOrchestra.

Five students passed their casual auditions at the end of the week and are now on theMSO’s casual musicians list. Four studentsprogressed to Stage II of the program, duringwhich they were engaged by the MSO torehearse and perform for two to three weeksand to further continue the relationship withtheir MSO mentor.

Snare Drum Award

An initiative of MSO musician RobertCossom, the MSO Snare Drum Awardcontinued in 2010, with 16 first- and second-year tertiary percussionists from Melbourne,Adelaide, Sydney and Brisbane auditioning inStage I. Three students progressed to theperformance final of Stage II, with AndrewPenrose from the Elder Conservatorium ofAdelaide winning the Award – a Mastroconcert snare drum and case, a bitsandpiecestrap table, and a one-year mentorship withthe Melbourne Symphony Orchestra.

Classic Kids


ADULT EDUCATION

Pre-Concert Talks

These talks, attended by concertgoers of allages, were given before MSO performancesheld in Robert Blackwood Hall, MonashUniversity; Deakin University, Waterfront,Costa Hall, Geelong and in all regional tourvenues.

Conductors in Conversations

Huw Humphreys, the MSO’s Director of Artistic Planning, hosted pre-concertdiscussions with a number of great musiciansthroughout 2010. Those interviewedincluded Bramwell Tovey, MarkWigglesworth, Mario Venzago and Andrew Litton.

Ears Wide Open

Richard Gill presented three of these 80-minute musical lectures for audiences of all ages, which took listeners on a guidedjourney of orchestral masterworks featuredwithin the MSO’s main-stage series. Theseinteractive and informative presentations offer a wonderful learning experience fornewcomers and seasoned-concert goers alike,in addition to being fantastic complementarymaterial for all students undertaking electivemusic courses.

MSO Education Forum

With the support of Allans Music, the MSOpresented an Education Forum for 44 schoolteachers and delegates from the Victorianmusic education community, who cametogether to discuss topics such as theimportance of dynamic partnerships in musiceducation and the importance of providingstudents with access to live music.

PROGRAMS FOR SCHOOL-AGED CHILDREN

Schools Concerts

The MSO presented school concerts inmetropolitan and regional Victoriathroughout 2010. The program reached more than 15,000 students through concertsincluding Classic Kids, Meet the Orchestraand Up Close and Musical, all conducted by Benjamin Northey.

In 2010 we developed our content for Classic Kids (and Family Classic Kids)program for children from pre-school toGrade 2 significantly, through our work withrenowned children’s presenters and TVpersonalities, Noni Hazlehurst and JayLaga’aia. Laga’aia designed and presented anenergetic program around his popular CDCome Dance and Sing, and Noni Hazlehurstwas the narrator and presenter of a wonderfulnew children’s story called Maximus Musicus

Visits the Orchestra by Icelandic authorHaffiridur Olafsdottir, about a mouse whodiscovers a symphony orchestra. We alsopresented a series of special Classic Kidsperformance in Melbourne Town Hall as part of Melbourne Music Week, incollaboration with the City of Melbourne.

Another success was The Composer is Dead, in our Meet the Orchestra series for upperprimary school children. The Composer is Dead, a recent commission by the SanFrancisco Symphony, has a text by popularchildren’s author Lemony Snickett, whichintroduces the instruments of the orchestrain the form of a whodunit murder mystery.Each school attending a Meet the Orchestraconcert had access to teaching resourcesprovided on the MSO’s website. Resourcesincluded background information about thecomposers and music heard in schoolperformances and suggested classroomactivities.

MSO ArtPlay Ensemble


Our Up Close and Musical program wasdesigned to complement the VCECurriculum by providing students with an in-depth exploration of Joaquin Rodrigo’sConcierto de Aranjuez. This wascomplemented for the first time by anadditional VCE project, in which theOrchestra’s Education Conductor, BenjaminNorthey, analysed and then performed AaronCopland’s Appalachian Spring with membersof the MSO. The project saw the MSOperforming at metropolitan venues includingBrighton Town Hall, the Clocktower inMoonee Ponds, Yarra Valley Grammar Schooland Malvern Town Hall.

Education Passports

The discounted three-concert subscriptionpackage, available to school groups, musicschools and home educators, continued in2010. Approximately 250 teachers, parentsand students enjoyed the experience of liveorchestral performance through this program.

Family Classic Kids

In the eight Family Classic Kidsperformances in 2010, we welcomed around3,500 children and parents to the IwakiAuditorium. The concerts, held on Saturdays,are open to families as a way of introducingtheir children to the symphony orchestra, its instruments and some great classical music.

COMMUNITY OUTREACH

The Orchestra’s Community Outreachprojects in 2010 continued to explore thepower of music to connect people, and createopportunities for groups and individuals tointeract and collaborate with MSO musiciansin diverse ways.

In 2010 we developed a core group of 28 players – both permanent and casual –who were involved in Outreach projectsthroughout 2010, with many participating in more than one project during the year.Teaching Artists were employed to leadintensive projects such as The Pizzicato Effect.The number of participants for each projectvaried from as little as 20 through to 100,with more than 1,900 people participating in the program across the year.

Projects in Schools

Community Outreach projects took MSOmusicians into schools across metropolitanand regional Victoria through the Hire aHero and School Residencies programs.These highly popular projects includedmasterclasses, creative workshops, tutorials for instrumental groups and ensembles, and Jams.

Allans Regional School Workshops

With the support of Allans Music, MSOmusicians presented schools workshops in the regions of Swan Hill, Shepparton,Bendigo and Ballarat.

PING – Remote Music Education Pilot Program

Pingmusic.com.au is an online, interactiveproject that provides music education tomiddle year students in rural and regionalVictorian schools.

Pingmusic aims to develop new collaborativemodels for music and arts education for the21st century by using innovative e-learningtools such as music composition programs,video conferencing, online tutorials, blogs and forums to deliver music education torural and regional schools. Pingmusicincorporates three different types of learning– an online blended learning program, onlinemaster class workshops and onlineperformance experiences.

The online blended program encouragesstudents to participate in music and musiccomposition through singing and notationworkshops. Video tutorials are designed to getstudents composing, recording, and workingin group activities including singing andpercussion. Students upload compositions to the Pingmusic website where their peers,teachers, and musician mentors make

Education and Community Outreach 2010 Cont.

Classic Kids


comments and provide feedback throughforums. Students can also create personalisedblogs to document their musical journey.Following a successful pilot program in 2009,the MSO contributed to the program throughonline tutorials in 2010 which providedopportunities for students in regional andrural locations to communicate with eliteperformers through the use of audio/videoand text chat applications.

One of the aims of Pingmusic.com.au is tobuild the capacity of rural schools andcommunities to deliver music educationprograms, provide greater access for rural andregional schools to elite, city-based performancecompanies, and strengthen the ICT and musicskills of generalist teachers.

Pingmusic is a collaboration between The Song Room, the Melbourne SymphonyOrchestra, Orchestra Victoria, Victorian Opera,Country Education Project and 3MBS FM,and is funded by the Victorian Government.

The Pizzicato Effect

The Pizzicato Effect is a collaborative projectbetween Meadows Primary School inBroadmeadows (Melbourne) and the MSO,which aims to create new learning pathwaysfor children in Broadmeadows through theintroduction of instrumental learning.Following a successful pilot program in 2009,each child in grades 2 and 3 is provided witha violin, viola or cello and one groupinstrumental class and one aural class perweek, lead by a team of MSO teaching artists.The children, parents and school teachers arealso given tickets to attend MSO concerts,providing extra opportunities and experiencearound live musical performance.

This program has provided children not onlywith opportunities to become exposed tomusic, but through engaging in various new

and challenging activities, they are alsogaining important social skills and self-confidence, and already the program’s impactis starting to show in many ways, withimproved focus, self confidence andbehaviour reported by their teachers. “The children follow structure, they’re more disciplined, they sit, listen, learn andplay,” says teacher and project coordinator,Helen Hatzikalis. “And all these little skills are transferring over to their other classes.”

MSO Teaching Artists Danielle Arcaro, andcello teacher Bonnie Smart, continued theirteaching at the school on Monday afternoonsin 2010. Mid-way through the year they werejoined by conductor Mark Shiell, who hasbeen taking additional aural and theoryclasses on Tuesday mornings. Together theMSO Teaching Artists teach approximately95 Grade Two and Three students.

MSO/ArtPlay Ensemble Program

The award-winning MSO/ArtPlay Ensembleprogram is a unique suite of collaborativeprojects between MSO musicians and youngplayers aged 8 and upwards. The programfocuses on composition and performance, and complements the young musicians’instrumental learning by providingopportunities for intensive development incomposition, improvisation, ensemble skillsand performance, along with access to MSOrehearsals, performances, conductors andsoloists.

The program aims to develop the wholemusician, with a view to the kinds of skillsand versatility that will be required ofprofessional musicians in the 21st century. It is also training a new generation of active,informed, engaged listeners, building inparticipants a life-long appreciation of theorchestral music tradition.

In 2010, the MSO/ArtPlay Ensemble met for three intensive school holiday workshops,each being based on a piece of repertoirewhich was being featured in the MSO main-stage programming. The ensemble was madeup of 28 young musicians of varying musicalability from across Victoria, who were selectedas a result of their positive involvement in anOpen Workshop at the start of the year. Threeparticipants’ fees were subsidised by the MSOin order to enable them to take part in theprogram.

Saturday Jams with the MSO andFederation Square

The MSO presented eight Jams in 2010 at the BMW Edge performance space,Federation Square. In each Jam, over thecourse of an hour, participants develop anoriginal piece of music, using whateverinstruments and ‘sound-makers’ are to hand. Voices, instruments, hands and feet,newspapers, chopsticks and otherparaphernalia are put to musical use in this afternoon workshop for families. Each workshop culminates in a performanceby participants, which is open to the generalpublic.

BRONWYN LOBBActing Manager, Education and Community Outreach


2010 Government and Private Sector Support

In 2010 the MSO Development team soughtsupport from a range of sources to deliver the Orchestra’s many diverse programs,achieve special projects and nurture theCompany’s long-term future. Widening ourfunding base is fundamentally important andwe gratefully acknowledge the expandingcircle of MSO supporters – from individualdonors, philanthropic trusts, corporatepartners and all three levels of government.The year saw an increase in fundraisingactivity, and vital new support, as well as closeinvolvement with Partners and Donors whocontinued their generous involvement.Philanthropic support grew on the previousyear, while sponsorship revenue contributed$971,852 in value, from a total of 18sponsors. This was a slight decline on the2009 number of sponsors and totalsponsorship dollars, quite possibly due to the impact of the Global Financial Crisis on the Melbourne business community.

Partnerships

Private, corporate and government sectorsupport is fundamental to the success andfinancial viability of the MelbourneSymphony Orchestra.

In 2010 the MSO continued its strongrelationship with Principal Partner, Emirates,and at the end of 2010 was delighted toconfirm renewal of this partnership for afurther two years until the end of 2012.

The MSO also welcomed Seppelt as a new beverage sponsor, Epicure as cateringpartner and Lindt, who together supportedmany of the MSO’s major engagement and fundraising activities. The MSO also welcomed Myer as partner of the Metropolitan Touring program. This partnership enabled Myer to engage with key customers in metropolitan Melbourneand regional Victoria.

The Melbourne Symphony Orchestra wasvery honoured to receive a special gift of$50,000 from Cheung Kong Group andPowercor in 2010 in recognition of their ten-year partnership servicing Victoriancommunities. In keeping with the tradition of generously supporting MSO regionaltouring, education and communityengagement, Cheung Kong Group andPowercor kindly directed this special gifttowards the MSO Education Conductorposition, held by Benjamin Northey. TheMSO is very grateful for this special gift toensure the delivery of great music to thepeople of Melbourne, Victoria and beyond.

We also acknowledge the ongoingrelationships with continuing sponsors andthank all our Corporate Partners for helpingus make 2010 a wonderful and rewardingyear.

Government

All levels of government provided invaluableon-going support for the Orchestra. TheMSO would particularly like to acknowledgethe contributions from the Australia Councilfor the Arts, Arts Victoria and the City ofMelbourne. Their support is vital to ourcontinued success, and is particularlygratifying as an acknowledgment of theMSO’s dedication to providing the bestpossible live orchestral experience for itsdiverse audiences.

Melbourne events

The MSO continued its engagement with the wider community through itsparticipation in key Melbourne events. A wonderful group of MSO musicians played at the Myer catwalk parade as part of the L’Oreal Melbourne Fashion Festivalin March, and the orchestra also featured at the first of the AFL Grand Finals.

Game Day Gala

In June 2010 the MSO held its highlyenjoyable and successful Annual Fundraisingevent. Presented by Principal PartnerEmirates, the Game Day Gala centred on the MSO Pops Sporting Scores concert. An entertaining evening of music and sportwas enjoyed by more than 270 of theOrchestra’s Patrons and corporate partners. In the spirit of any great sporting event, one of the evening’s highlights included a celebrity panel, consisting of MSOConcertmaster, Wilma Smith; MSOChairman Harold Mitchell AC; CEO of the Melbourne Rebels Pat Wilson, andMelbourne Heart soccer player JasonHoffman. MC for the night, Ian Cover, led a fun conversation focusing on the links between sport and music.

The event included a live auction and pledge,with all funds raised directed to the MSO’sEducation Program. More than $190,000 wasraised including $50,000 in pledge donationsin support of the MSO’s inaugural EducationWeek in 2011.

Kee Wong and Wai Tang at the MSO Game Day Gala

Fundraising activities

As well as this major annual fundraisingevent, we hosted numerous events throughoutthe year, ranging from concert-basedfunctions to informal, intimate opportunitiesfor our supporters to meet with artists and enjoy a close involvement with theOrchestra’s world.

A series of successful events, as part of theMSO’s Corporate Company program, were held throughout the season,contributing over $80,000 in revenue.Highlights included the Beethoven MastersDinner, Some Enchanted Evening and theFrench Connections Soiree, the last of thesefeaturing soloist Jean-Yves Thibaudet.Enjoying the breadth of these specialoccasions, and new to the MSO wereVictoria Racing Club Members Events,Melbourne Convention and VisitorsBureau, and prospective partners and donors.

A further highlight in our year was theAnnual MSO Golf Day, again hosted byCommonwealth Golf Club, with teams madeup golf-loving MSO Partners, Donors andmusicians.

MSO FOUNDATION

The MSO Foundation relies upon thegenerous support of donors, who throughtheir annual pledges and bequests, contributeto the Orchestra’s artistic independence andlong-term sustainability. The Foundationpermanently strengthens the MSO and itsrole in creating an inspiring future in ourcommunity, and in 2010 we were pleased tosecure commitments totalling $500,000. It isour pleasure to particularly acknowledge theMSO Patrons and MSO Conductor’s Circlemembers for their special role in building the MSO Foundation reserve.

SPECIAL PROJECTS

Many projects need specific support. In 2010these included purchase of a new SteinwayConcert Grand piano, a new portable stagingsystem, and the Orchestra’s inspiringEducation and Artist Development projects.These exciting projects contribute directly tothe MSO’s high standard of artisticachievement, and it was exciting to attractmuch-needed support through the year with a variety of fundraising efforts.

As well as our annual Instrument FundAppeal and other targeted campaigns whichreached out to a cross-section of the MSOfamily, we were very pleased to have thegenerous support of specific grants fromTrusts and Foundations, including the Cybec Foundation, the Schapper FamilyFoundation, the Ivor Ronald EvansFoundation administered by Equity Trustees,and the Matana Foundation for YoungPeople. Each of these grants played animportant role in creating pathways for youngpeople and emerging artists to expand theirhorizons through participation with theOrchestra’s education and artist developmentprograms.

Importantly, The Pratt Family Foundation’spledge to our Education and ArtistDevelopment programs commenced in 2010 and underpinned a wonderful programdelivered to more than 20,000 young people.

MSO Orchestra Chairs

The MSO Orchestra Chair Campaigninitiated in 2010 focuses on major multi-yeargifts, a form of support of the utmostimportance to the Orchestra’s strategicdevelopment. The program provides uniqueopportunities for direct and close associationsbetween major donors and some of the mostbrilliant orchestral musicians in the country.We were privileged to achieve the firstmilestone in this new campaign as the yearclosed, with two major gifts pledged for theperiod 2011-2013: The Harold Mitchell ACConcertmaster Chair and the PatriciaRiordan Associate Conductor Chair.

We look forward to working with ourcommitted supporters again in 2011, andthank all our Corporate Partners and Donorsfor their generous involvement and support.


MSO quartet performing at the reception for long-term supporters at Sofitel on Collins


DONORS at 31 december 2010

Impresario ($20,000+ annually)John McKay and Lois McKayBevelly and Harold Mitchell ACDame Elisabeth Murdoch AC DBE

Maestro ($10,000+ annually)M P ChipmanAndrew and Theresa DyerRachel and Hon. Alan Goldberg AO QCMatsarol FoundationOnbass FoundationElizabeth Proust AOMichael and Jenny UllmerMatthew VanBesien and Rosie Jowitt

Principal ($5000+ annually) Kaye and David BirksJill and Robert GroganHartmut and Ruth HofmannPeter and Jenny HordernNorman and Betty LeesMr and Mrs D R MeagherIan and Jeannie PatersonMrs Margaret S. Ross AMJoy Selby SmithKee Wong and Wai TangAnonymous (3)

Associate ($2500+ annually)Dr Bronte AdamsWill and Dorothy Bailey BequestPeter and Mary BiggsMr John Brockman OAM and Mrs Pat BrockmanPaul CarterThe Cuming BequestPeter and Leila DoyleTim and Lyn EdwardDr Helen M FergusonSusan Fry and Don Fry AORobert and Jan GreenJohn and Agita HaddadNereda Hanlon and Michael Hanlon AMSusan and Gary HearstMichael and Gillian HundAlwynne Jona OAMMimie MacLarenBill and Pat MelleuishWayne and Penny MorganMarie MortonDr Paul Nisselle AMAnn PeacockMaria Sola and Malcolm DouglasGai and David TaylorMr Tam Vu and Dr Cherilyn TillmanLyn Williams AMJoanne WolffAnonymous (2)

Player ($1000+ annually)Marlyn and Peter Bancroft OAM Mr Marc Besen AO and Mrs Eva Besen AOMrs S BignellStephen and Caroline BrainM Ward BrehenyJennifer Brukner Jill and Christopher BuckleyJan and Peter Clark Judith M ConnellyLeslie J Darby and Miss Ann DarbyPanch Das and Laurel Young-DasPat and Bruce Davis William J Forrest AMBrian Gallery David I Gibbs and Susie O’NeillMerwyn and Greta Goldblatt Colin Golvan SCGeorge H Golvan QC Dr Marged Goode Jean Hadges Louis Hamon OAMPeter HartnellTilda and Brian HaughneyHans and Petra HenkellIn memory of Ruth HillDr Alastair JacksonStuart Jennings and Diana MummëDr Elizabeth A Lewis AMNorman Lewis in memory of Dr Phyllis LewisJeff LoewensteinRosemary MaddenSandra and Leigh Masel Dr Gabriele Medley AM Jan MinchinThe Novy FamilyLaurence O’Keefe and Christopher JamesLady Potter AC David RichardsHugh T Rogers AMElzbieta and Tomasz Romanowski Delina Schembri-HardyMax and Jill Schultz Alan and Carol Schwartz David Shavin QC Gary Singer and Geoffrey A SmithDr Robert Sloane and Denise Sloane Mr Sam Smorgon AO and Mrs Minnie SmorgonCharles Sowerwine and Susan FoleyMrs Suzy and Dr Mark SussMargaret TritschMrs Barbara Tucker P and E TurnerBert and Ila Vanrenen Hon. Rosemary Varty

Sue Walker AM Mrs Elaine Walters OAM and Mr Gregory Walters Hon. Michael Watt QC and Cecilie HallBarbara and Donald Weir KSJ Erna Werner and Neil Werner OAMWillcock FamilyMarian and Terry Wills Cooke Ruth Wisniak and Prof John Miller AO Peter and Susan YatesAnonymous (9)

MSO Conductor’s CircleJenny AndersonJoyce Bown Kenneth BullenLuci and Ron Chambers Sandra Dent Lyn EdwardAlan Egan JPMs Susan HenshallTony Howe John and Joan JonesElizabeth Proust AOPenny Rawlins Joan P Robinson Miss Sheila Scotter AM MBEMolly StephensPamela SwanssonDr Cherilyn TillmanMr and Mrs R P TrebilcockMichael UllmerMr Tam VuMarian and Terry Wills CookeMark YoungAnonymous (24)

The MSO gratefully acknowledges the supportreceived from the Estates of Peter Forbes MacLaren,Herta and Fred B Vogel, Jean Tweedie, Gwen Huntand Prof Andrew McCredie.

MSO Special Project SupportersThe Pratt Family Foundation The Cybec Foundation Schapper Family Foundation Ivor Ronald Evans Foundation The Matana Foundation Rob Cossom

Honorary Life MembersJohn Brockman OAM Professor John Hopkins OBESir Elton John


Key Performance Statistics

In 2010 the Melbourne Symphony Orchestra gave 157 performances to an audience of 181,387.

TOTAL AUDIENCE

100 150 200 250 (,000s)

2009 211,9932010 181,387

REGIONAL PAID ATTENDANCE

0 3 6 9 12 15 18 21 (,000s)

2009 17,6442010 14,045

TOTAL PAID ATTENDANCE

50 100 150 (,000s)

2009 144,5752010 124,330

MUSICIANS (FTES) – AVERAGE THROUGHOUT YEAR

0 25 50 75 100 125 150

2009 104.362010 100.79

NUMBER OF PERFORMANCES

125 130 135 140 145 150 155 160 165

2009 1662010 157

MANAGEMENT STAFF (FTES) – AVERAGE THROUGHOUT YEAR

0 5 10 15 20 25 30 35 40

2009 37.402010 39.33

SELF PRESENTED CONCERTS

125 130 135 140 145 150 155 160

2009 1542010 149

TOTAL EMPLOYEES (FTES) – AVERAGE THROUGHOUT YEAR

0 25 50 75 100 125 150

2009 141.762010 140.12

REGIONAL CONCERTS

0 5 10 15 20 25 30 35

2009 312010 22

SCHOOL CONCERTS

0 10 20 30 40 50 60

2009 482010 41

SCHOOL CONCERT ATTENDANCES

12 13 14 15 16 17 18 19 20 21 (,000s)

2009 20,1782010 16,225

including Geelong series

including Regional school concerts and Family Classic Kids

OUTREACH WORKSHOPS / SEMINARS*

0 15 30 45 60 75 90 105

2009 822010 94

OUTREACH WORKSHOPS / SEMINARS – PARTICIPANTS*

0 500 1000 1500 2000

2009 1,6572010 1,900

*Not including Schools Concerts, listed above


Melbourne Town Hall


Melbourne Symphony Orchestra PTY Limited

Annual FINANCIAL Report31 DECEMBER 2010ABN 47 078 925 658

Contents Page

Directors’ Report 31

Statement of Comprehensive Income 33

Statement of Financial Position 34

Statement of Changes in Equity 35

Statement of Cash Flows 36

Notes to the Financial Statements 37

Directors’ Declaration 53

Auditor’s Independence Declaration 54

Independent Audit Report 55

Powercor Regional Touring

The MSO in performance at Costa Hall, Geelong


Directors’ Reportfor the year ended 31 december 2010

The Directors present their report together with the financial report of Melbourne Symphony Orchestra Pty Limited for the year ended 31st December 2010 and the auditor’s report thereon.

DIRECTORS

The Directors of the Company during the financial year and until the date of this report were as follows:Mr H Mitchell AC (Chairman) Director since 27 November 2008Mr T Green (Managing Director) Director since 5 February 1999 (ceased 29 January 2010)Mr M VanBesien (Managing Director) Director since 15 February 2010Hon. A Goldberg, AO QC Director since 15 March 2000Dr B Adams Director since 24 November 2004Mr P Biggs Director since 1 January 2007Ms A Peacock Director since 1 January 2007Mr M Ullmer Director since 1 January 2007Mr K Wong Director since 1 January 2007Mr A McKean Director since 23 March 2009Cr J Kanis Director since 23 March 2009

COMPANY SECRETARY

Mr O Carton Appointed 13 February 2004

PRINCIPAL ACTIVITIES

The principal activity of the Company during the year was the performance of symphonic music. There were no significant changes in the natureof the activities of the Company during the year.

REVIEW AND RESULTS OF OPERATIONS

The operating result for the year ended 31 December 2010 was a surplus of $31,420 (equivalent result for the year ended 31 December 2009 was a loss of $869,901).

Melbourne Symphony Orchestra Pty Limited presented 157 performances during the twelve months ended 31 December 2010. The majority of the concerts were held in Melbourne.

STATE OF AFFAIRS

In the opinion of the Directors, there were no significant changes in the state of affairs of the Company that occurred during the financial yearunder review.

ENVIRONMENTAL REGULATION

The Company’s operations are not subject to any significant environmental regulations under either Commonwealth or State legislation. However, the Board believes that the Company has adequate systems in place for the management of its environmental requirements and is not aware of any breach of those environmental requirements, as they apply to the Company.

RECENT DEVELOPMENTS

The Victorian government announced in September 2008 that MSO’s primary concert venue Hamer Hall will be renovated as part of a $129m upgrade of the Victorian Arts Centre. Accordingly, Hamer Hall closed from July 2010 for a period of approximately 2 years. The Boardand management of the Company are continuing to liaise with relevant stakeholders to ensure that any negative financial consequences of theclosure will be minimised.


The Company will continue to present performances of symphonic and other orchestral music during the next financial year, with performancescurrently scheduled to be presented during this period. The Company’s continuing success is dependent on increasing its current level ofgovernment funding, corporate sponsorship, ticket sales and philanthropy.

DIVIDENDS

No dividends were paid, declared or recommended during or since the end of the financial year.

INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS

IndemnificationSince the end of the previous financial year, the Company has not indemnified, nor made a relevant agreement for indemnifying against a liability,any person who is or has been an officer or auditor of the Company.

Insurance premiumsDuring the financial year, the Company has paid premiums in respect of Directors’ and officers’ liability, legal expenses and insurance contracts for the year ended 31 December 2010. Since the end of the financial year, the Company has paid or agreed to pay premiums in respect of suchinsurance contracts for the year ended 31 December 2011. Such insurance contracts insure persons who are or have been directors or officers of the Company against certain liabilities (subject to certain exclusions).

Directors have not included details of the nature of the liabilities covered or the amount of the premium paid as such disclosure is prohibited under the terms of the contract.

EVENTS SUBSEQUENT TO BALANCE DATE

No events have occurred subsequent to balance date that materially affect the accounts and are not already reflected in the Statement ofComprehensive Income and Statement of Financial Position.

AUDITORS INDEPENDENCE DECLARATION TO THE DIRECTORS OF MELBOURNE SYMPHONY ORCHESTRA PTY LIMITED

The Directors have received a declaration from the auditor which is attached to this report.

Signed in accordance with a resolution of the Directors:

Harold Mitchell AOChairman

Melbourne30 March 2011

Directors’ Report CONT.for the year ended 31 december 2010


Statement of Comprehensive Incomefor the year ended 31 december 2010

Note 2010 2009$ $

REVENUESFunding revenue direct from government 3a 1,844,210 541,061Funding revenue from parent (MSOHL) 3b 11,861,976 11,520,012Ticket sales 4 6,750,193 7,856,828Sponsorship and donation revenue 5 1,844,580 1,670,679Other revenues 6 1,535,939 1,560,537

23,836,898 23,149,117

EXPENSESEmployee expenses 13,677,794 13,444,985Artists fees and expenses 2,513,141 3,508,054Marketing expenses 2,194,238 1,803,399Production expenses 2,879,696 2,508,392Selling expenses 365,310 501,802Depreciation and amortisation 11 120,636 143,529Management fee 357,649 347,882Other expenses 1,697,014 1,760,975

23,805,478 24,019,018

Net Profit / (Loss) 31,420 (869,901)

TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR 31,420 (869,901)

The Statement of Comprehensive Income should be read in conjunction with the accompanying notes to the financial statements.


Statement of Financial Positionas at 31 december 2010

Note 2010 2009$ $

CURRENT ASSETSCash and cash equivalents 16 4,099,177 1,929,898Other financial assets 10 5,967,782 6,785,674Receivables 8 260,336 356,359Other 9 1,144,833 1,175,173

TOTAL CURRENT ASSETS 11,472,128 10,247,104

NON-CURRENT ASSETSReceivables 8 28,046 28,046Plant and equipment 11 410,656 290,183

TOTAL NON-CURRENT ASSETS 438,702 318,229

TOTAL ASSETS 11,910,830 10,565,333

CURRENT LIABILITIESPayables 12 5,108,902 3,854,071Provisions 14 2,488,862 2,457,866

TOTAL CURRENT LIABILITIES 7,597,764 6,311,937

NON-CURRENT LIABILITIESProvisions 14 336,873 308,623

TOTAL NON-CURRENT LIABILITIES 336,873 308,623

TOTAL LIABILITIES 7,934,637 6,620,560

NET ASSETS 3,976,193 3,944,773

SHAREHOLDERS’ EQUITYContributed equity 15 438,002 438,002MSO Foundation 23b 1,639,917 1,394,388MSO RIS Reserve 23c 3,237,772 3,105,778Retained surplus / (accumulated deficit) 23a (1,339,498) (993,395)

TOTAL SHAREHOLDERS’ EQUITY 3,976,193 3,944,773

The Statement of Financial Position should be read in conjunction with the accompanying notes to the financial statements.


Statement of changeS in equityfor the year ended 31 december 2010

Contributed Retained Foundation MSO RIS Total Equity Surplus / Reserve Reserve Equity

(deficit)(Note 15) (Note 23) (Note 23) (Note 23)

$ $ $ $ $SHAREHOLDERS’ EQUITY

As at 31 December 2008 438,002 - 1,313,195 3,063,477 4,814,674

Total comprehensive income / (loss) for the year - (869,901) - - (869,901)Transferred to reserves - (123,494) 81,193 42,301 -

As at 31 December 2009 438,002 (993,395) 1,394,388 3,105,778 3,944,773

Total comprehensive income / (loss) for the year - 31,420 - - 31,420Transferred to reserves - (377,523) 245,529 131,994 -

As at 31 December 2010 438,002 (1,339,498) 1,639,917 3,237,772 3,976,193

The Statement of Changes in Equity should be read in conjunction with the accompanying notes to the financial statements.


Statement of Cash Flowsfor the year ended 31 december 2010

Note 2010 2009$ $

CASH FLOWS FROM OPERATING ACTIVITIESCash receipts in the course of operations 9,116,177 9,996,333Cash payments in the course of operations (22,130,748) (23,569,736)Grants received from government funding bodies 14,332,283 12,271,172Interest received 142,788 241,936

NET CASH FLOWS PROVIDED BY / (USED IN) OPERATING ACTIVITIES 16b 1,460,500 (1,060,295)

CASH FLOWS FROM INVESTING ACTIVITIESMonies placed on Term Deposit 10 (444,500) (3,679,895)Proceeds from Term Deposit maturity 10 1,394,388 -Payment for property, plant and equipment 11 (241,109) (150,752)

NET CASH FLOWS PROVIDED BY / (USED IN) INVESTING ACTIVITIES 708,779 (3,830,647)

NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES - -

NET INCREASE / (DECREASE) IN CASH HELD 2,169,279 (4,890,942)

Cash and Cash equivalents at the beginning of the financial year 1,929,898 6,820,840

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 16a 4,099,177 1,929,898

The Statement of Cash Flows should be read in conjunction with the accompanying notes to the financial statements.


Notes to the Financial Statementsfor the year ended 31 december 2010

1. CORPORATE INFORMATION

The financial report of Melbourne Symphony Orchestra Pty Limited for the year ended 31 December 2010 was authorised for issue in accordance with a resolution of Directors on 26 March 2011.

Melbourne Symphony Orchestra Pty Limited is a proprietary limited company incorporated in Australia. The ultimate parent of Melbourne Symphony Orchestra Pty Limited is Melbourne Symphony Orchestra Holdings Limited.

Melbourne Symphony Orchestra Holdings Limited is a public company limited by guarantee and was incorporated in Australia on 19 October 2006 and subsequently purchased all shares in Melbourne Symphony Orchestra Pty Limited from the Australian BroadcastingCorporation for Ten Dollars.

The nature of the operations and principal activities of the Company are described in the Directors’ Report.

2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparationThe financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

The financial report has been prepared on the basis of historical costs and, except where stated, does not take into account changing money values or fair values of non-current assets.

These accounting policies have been consistently applied by the Company and, except where there has been a change in accounting policy, are consistent with those of the previous period.

Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures.

The financial report is presented in Australian dollars.

b) Statement of compliance

Compliance with IFRSThe financial report complies with Australian Accounting Standards and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

Accounting Standards and Interpretations issued but not yet effectiveThere are a number of Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective,and have not been early adopted by the Company for the financial report for the year ending 31 December 2010. The Company does not expectthe impact of these standards and interpretations to have a material impact on the Company’s financial position and performance.


2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

c) Revenue recognitionRevenues are recognised at fair value of the consideration received net of the amount of Goods and Services Tax (GST) payable to the taxationauthority. Exchanges of goods or services of the same nature and value without any cash consideration are not recognised as revenues.

Ticket Sales Ticket sales are recognised at the time of concert performance. The value of tickets sold in advance of each concert is recorded as unearned income.

Sponsorship revenueSponsorship revenue is recognised during the period in which sponsorship benefits are provided. Sponsorship revenue is traditionally paid inadvance – the value of unearned sponsorship revenue is recognised as a liability.

Funding revenueFunding revenue comprises funding from the Australia Council for the Arts and the State Government of Victoria through the Ministry for the Arts and the City of Melbourne.

Funding revenue was received from the Australia Council for the Arts through the Major Performing Arts Board, and the Victoria Ministry for theArts, through Arts Victoria, under the terms of the Tripartite Funding Agreement entered into in January 2007 and the Deeds of Variation dated22 December 2009 and 23 December 2010. Funding is received based on payment schedules contained in those agreements between the fundingbodies and Melbourne Symphony Orchestra Holdings Ltd. The agreement was entered into for the five years ending 31 December 2011.

Funding revenue is recognised when due under the terms of the funding agreement. Special purpose funding, which requires the Company to fulfilan obligation outside its normal operations, is recognised at the time the obligation is fulfilled.

Interest revenueInterest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.

Sale of non-current assetsThe gross proceeds of non-current asset sales are included as revenue at the date control of the asset passes to the buyer, usually when anunconditional contract of sale is signed.

The surplus or deficit on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the netproceeds on disposal.

d) Taxation and Goods and Services Tax Revenue recognitionThe Company is exempt from income tax as it is an exempt charitable institution in accordance with Subdivision 50-B of the Income TaxAssessment Act 1997.

Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Statement of Financial Position. Cash flows are included in thestatement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverablefrom, or payable to, the ATO are classified as operating cash flows.



e) Cash and cash equivalentsCash and cash equivalents, including short-term deposits with a maturity of three months or less, are carried at face value of the amountsdeposited. The carrying amounts of cash and cash equivalents, including short-term deposits, approximate net fair value.

f ) Receivables Trade receivables, which generally have 30-90 day terms, are recognised at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any impairment.

Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off when identified. An allowance for doubtful debts is raised when there is objective evidence that the Company will not be able to collect the debt. Managementconsider such objective evidence to include, but not be limited to formal correspondence from a trade receivable indicating its inability to repaythe amount outstanding.

g) Other financial assetsInvestment held in reserve and term deposits that do not meet the definition of Cash and Cash Equivalents are recorded at amortised cost using the effective interest rate method where the amount is materially different from the face value of the investment and term deposit. Otherwise the investment held in the reserve and term deposits are recorded at face value.

h) Impairment of non-financial assets other than goodwillIntangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows that arelargely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered impairment are tested for possible reversal of the impairment whenever events or changes in circumstance indicate that theimpairment may have reversed.

i) Plant and equipmentAll items of plant and equipment are carried at their historical cost of acquisition, being the fair value of the consideration provided plus theincidental costs directly attributable to the acquisition, less any accumulated impairment losses, less accumulated depreciation, and recoverableamount.

Subsequent additional costs Costs incurred on assets subsequent to initial acquisition are capitalised when it is probable that future economic benefits, in excess of theoriginally assessed performance of the asset, will flow to the Company in future years.

Costs that do not meet the criteria for capitalisation are expensed as incurred.

The residual values, useful lives and amortisation methods of all items of plant and equipment are reviewed and adjusted if appropriate, at each financial year-end.


2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

j) Depreciation

Useful livesItems of plant and equipment, leasehold improvements, computer equipment and musical instruments are depreciated using the straight-linemethod over their estimated useful lives. Assets are depreciated from the date of acquisition. Depreciation rates and methods are reviewedannually for appropriateness. Depreciation is expensed.

The depreciation rates used for each class of asset are as follows:

Asset class Depreciation ratesPlant & equipment 10% - 20%Musical instruments 10% - 20%Computer equipment 20% - 30%

k) Leased plant and equipmentLeases of plant and equipment are classified as operating leases as the lessors retain substantially all of the risks and benefits of ownership.Minimum lease payments are charged against statement of comprehensive income over the accounting periods covered by the lease terms exceptwhere an alternative basis would be more representative of the pattern of benefits to be derived from the leased property.

l) PayablesTrade payables and other payables are carried at amortised cost. They represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchaseof these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

m) Employee benefits

Wages, salaries and annual leaveLiabilities for employee entitlement to wages, salaries and annual leave represent present obligation resulting from employees’ services provided upto the balance date. The provisions have been calculated at un-discounted amounts based on rates expected to be paid out for wages and salariesand include related on-costs

Long service leaveThe provision for employee benefits to long service leave represents the present value of the estimated future cash outflows to be made by theemployer resulting from employees’ services provided up to the reporting date.

The provision is calculated using estimated future increases in wage and salary rates, including related on-costs, and expected settlement rates basedon turnover history and is discounted using the rates attaching to national government securities at balance date which most closely match theterms of maturity of the related liabilities.

n) Significant accounting judgements, estimates and assumptionsThe preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amountsin the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities,revenue and expenses. The following critical accounting policies have been identified for which significant judgements, estimates and assumptionsare made.

Provision for employee benefitsProbabilities regarding staff turnover, when staff take leave and future wage rates are based on historical experience.



2010 2009$ $

3. FUNDING REVENUE

a) Direct funding (MSOPL)Arts Victoria - Melbourne Symphony Orchestra Chorus Grant 125,583 122,760Arts Victoria - Thomanercor Grant - 20,000Arts Victoria - Hamer Hall Closure Revenue impacts funding 774,840 -Arts Victoria - Hamer Hall Closure Expense impacts funding 635,387 98,301City of Melbourne - Annual Grant 308,400 300,000

1,844,210 541,061

b) Funding from parent (MSOHL)Australia Council for the Arts - Annual Grant 9,504,570 9,290,880Australia Council for the Arts - Orchestra Review Implementation Grant 62,142 -Arts Victoria - Annual Grant 2,280,402 2,229,132Arts Victoria - Orchestra Review Implementation Grant 14,862 -

11,861,976 11,520,012

Total Funding 13,706,186 12,061,073

Provision of funds by Melbourne Symphony Orchestra Holdings Limited to Melbourne Symphony Orchestra Pty Limited is in respect of fundspayable as a result of the Orchestra Review Implementation Funding Agreement. It originates from federal and state governments, through theAustralia Council for the Arts and Arts Victoria and is paid to Melbourne Symphony Orchestra Holdings Limited. A funding agreement betweenMelbourne Symphony Orchestra Holdings Limited and Melbourne Symphony Orchestra Pty Limited provides the basis for the funds to be passedto Melbourne Symphony Orchestra Pty Limited.

4. TICKET SALES REVENUE

Subscription sales 3,287,706 4,041,953Single night ticket sales 3,462,487 3,814,875

6,750,193 7,856,828


2010 2009$ $

5. SPONSORSHIP AND DONATION REVENUE

Sponsorship 971,852 1,098,200Donations 767,597 392,412Bequests 12,831 3,780Grants from foundations 92,300 176,287

1,844,580 1,670,679

6. OTHER REVENUE

Interest income, other parties - cash and cash equivalents 142,788 241,937Interest income, other parties - other financial assets 402,111 258,203Orchestral hire 724,384 798,781Other 266,656 261,616

1,535,939 1,560,537

7. NET PROFIT / (LOSS) FOR THE YEAR

Net Profit / (Loss) for the year has been arrived at after charging the following items:

Depreciation:Plant and equipment 723 3,194Office equipment, furniture and fittings 12,585 5,599Computers 37,645 47,873Musical instruments 69,683 86,863

120,636 143,529

Superannuation expense 1,698,819 1,721,927

Deficit on disposal of non-current assets - 2,598

Operating lease rental expensesLease payments - office equipment 34,044 44,465



2010 2009$ $

8. RECEIVABLES

a) Trade and other receivablesCurrentTrade receivables 103,356 284,260GST receivable 156,980 72,099

260,336 356,359

Non-currentOther receivables 28,046 28,046

28,046 28,046

b) Past due but not impairedTrade and other debtors ageing:0 to 60 days 100,962 279,97761 to 90 days - -Over 90 days 30,440 32,329

Total trade and other receivables 131,402 312,306

Trade receivables are non-interest bearing and are normally settled in 30 days. Other receivables amounts generally arise from transactions outsidethe usual operating activities of the Company.

9. OTHER CURRENT ASSETS

Prepayments 803,978 850,489Accrued income 340,855 324,684

Total Other Current Assets 1,144,833 1,175,173

10. OTHER FINANCIAL ASSETS

Investment held in RIS Reserve 3,237,775 3,105,779Term deposits with maturity more than 90 days at year end 2,730,007 3,679,895

5,967,782 6,785,674

Investment held in the Reserves Incentive Scheme reserve of $3,237,775 (2009: $3,105,779) comprise funds which are set aside, unencumberedand held in escrow, for 15 years until the 3rd June 2019 (details explained at note (23c).


11. PLANT AND EQUIPMENT

Plant and Musical Office Computerequipment instruments equipment equipment Total

$ $ $ $ $

Cost:Opening balance 103,592 909,856 65,008 231,720 1,310,176Additions - 239,461 - 1,648 241,109Disposal - - - (6,364) (6,364)

Closing balance 103,592 1,149,317 65,008 227,004 1,544,921

Accumulated depreciation:Opening balance 102,869 750,030 10,984 156,110 1,019,993Depreciation expense 723 69,683 12,585 37,645 120,636Disposal - - - (6,364) (6,364)

Closing balance 103,592 819,713 23,569 187,391 1,134,265

Net book value, 31 December 2010 - 329,604 41,439 39,613 410,656

Net book value, 31 December 2009 723 159,826 54,024 75,610 290,183

2010 2009$ $

12. PAYABLES

Trade creditors 947,656 299,518Other creditors and accruals 651,409 719,311Prepaid subscription revenue 2,176,364 2,405,622Prepaid government funding revenue - refer note 13 875,878 308,400Prepaid other revenue 457,595 121,220

Total payables (ageing: all 0 to 60 days) 5,108,902 3,854,071

Trade payables are non-interest bearing and are normally settled in 30 days.



13. PREPAID GOVERNMENT FUNDING REVENUE

Arts Victoria - Arts Australia CouncilHamer Hall Closure Victoria for the Arts

Revenue Expense City of Total Prepaidimpacts impacts Orchestra Review Melbourne GovernmentFunding Funding Implementation Grant Annual Grant Funding

$ $ $ $ $ $

As at 1 January 2010 - - - - 308,400 308,400Funds received (see note below) 760,000 1,193,000 29,455 123,163 316,110 2,421,728Interest earned on funds (where applicable) 17,840 21,843 - - - 39,683Amounts recognised as income relating to prior year - note 3 (98,301) (98,301)Amounts recognised as income relating to current year - note 3 (774,840) (635,387) (14,862) (62,143) (308,400) (1,795,632)

As at 31 December 2010 3,000 481,155 14,593 61,020 316,110 875,878

Funds received from Arts Victoria regarding Hamer Hall Closure (revenue and expense impacts) are subject to the terms and conditions of theseparate respective agreements.

Funds received from the Australia Council for the Arts and Arts Victoria relating to the Orchestral Review Implementation grant are held inescrow and have not been used to secure any liabilities by the Melbourne Symphony Orchestra.

Note 2010 2009$ $

14. PROVISIONS

CurrentEmployee benefits 17 2,488,862 2,457,866

2,488,862 2,457,866

Non-currentEmployee benefits 17 336,873 308,623

336,873 308,623


2010 2009$ $

15. CONTRIBUTED EQUITY

Share capital438,002 (2009: 438,002) ordinary shares, fully paid 438,002 438,002

438,002 438,002

On 31 December 2006 Melbourne Symphony Orchestra Holdings Limited purchased all shares of Melbourne Symphony Orchestra Pty Limitedthat were previously held by the Australian Broadcasting Corporation.

16. STATEMENT OF CASH FLOWS

a) Reconciliation of cash and cash equivalentsFor the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand and at bank and short-term deposits at call.Cash assets as at the end of the financial year as shown in the statement of cash flows are as follows:

Cash 2,402,327 1,229,898Cash equivalents 1,696,850 700,000

4,099,177 1,929,898

Short term deposits mature within 30-90 days and pay interest at a weighted average interest rate of 5.02% (2009: 4.63%).

Cash equivalents at year end of $1,696,850 (2009: $700,000) include short term deposits which had a maturity date of less than three months at year end. At the end of 2010, investments of $2,730,007 were reclassified as other financial assets (refer note 10) as the maturity dates of thesedeposits were greater than three months.

b) Reconciliation of surplus from ordinary activities to net cash provided by operating activitiesSurplus / (deficit) from ordinary activities 31,420 (869,901)Less items classified as investing / financing activities:Loss on disposal of non-current assets - 2,598Add / (deduct) non-cash items:Depreciation 120,636 143,529Interest on other financial assets (450,726) (258,203)

Net cash provided by / (used in) operating activities before change in assets and liabilities (298,670) (981,977)

Change in assets and liabilities:(Increase) / decrease in receivables 96,022 (146,976)(Increase) / decrease in prepayments 46,511 (158,829)(Increase) / decrease in accrued income 302,561 197,693Increase / (decrease) in accounts payable 580,235 (50,452)Increase / (decrease) in prepaid revenue 674,595 (42,406)Increase / (decrease) in provisions 59,246 122,652

Net cash flows provided by / (used in) operating activities 1,460,500 (1,060,295)



2010 2009$ $

17. EMPLOYEE BENEFITS

Current 2,488,862 2,457,866Non-current 336,873 308,623

2,825,735 2,766,489

Aggregate employee benefits presented above include on-costs. The present value of employee benefits not expected to be settled within twelvemonths of balance date have been calculated using the following weighted averages:

Assumed rate of increase in wage and salary rates 3.0% 3.0%Discount rate 5.7% 5.1%Settlement rate 10 years 10 yearsFull-time equivalent employees at year-end 140.12 132.5

18. KEY MANAGEMENT PERSONNEL

a) Details of Key Management Personnel

(i) Directors

Name Position Held Board Meeting AttendancesMr H Mitchell AC Chairman 4 out of a possible 5Mr T Green Managing Director – ceased 29 January 2010 0 out of a possible 0Mr M VanBesien Managing Director – appointed 15 February 2010 5 out of a possible 5Hon. A Goldberg, AO QC Deputy Chairman 5 out of a possible 5Dr B Adams Director 4 out of a possible 5Mr P Biggs Director 3 out of a possible 5Ms A Peacock Director 5 out of a possible 5Mr M Ullmer Director 4 out of a possible 5Mr K Wong Director 4 out of a possible 5Mr A McKean Director 5 out of a possible 5Cr J Kanis Director 5 out of a possible 5

(ii) Executives

Name Position HeldMr H Humphreys Director of Artistic PlanningMs L Oppenheim Director of OperationsMr W Box Chief Financial OfficerMr F Hughes Director of Commercial Development – ceased 1 December 2010Ms C Le Cornu Director of Marketing – ceased 4 August 2010Ms M Hagan Director of Marketing – appointed 3 November 2010


2010 2009$ $

18. KEY MANAGEMENT PERSONNEL (CONTINUED)

b) Compensation of Key Management PersonnelShort-term employee benefits 944,907 964,178Other long-term benefits 91,316 -Post-employment benefits - 111,747Termination benefits 178,094 -

1,214,317 1,075,925

Payments made to Directors are for their contributions as employees of the Company and not for their additional services as Directors.

c) Other transactions and balances with key management personnelThere were no significant transactions between the Company and key management personnel.

19. RELATED PARTIES

a) DirectorsThe names of each person holding the position of Director of Melbourne Symphony Orchestra Pty Limited during the financial year are:

Mr H Mitchell AC, Mr T Green (ceased 29 January 2010), Mr M VanBesien (appointed 15 February, 2010), Hon. A Goldberg AO QC, Dr B Adams, Mr P Biggs, Ms A Peacock, Mr M Ullmer, Mr K Wong, Mr A McKean, Cr J Kanis.

Unless otherwise stated, the directors have been in office for the financial year. Details of directors’ remuneration are set out in note 18.

No Director has entered into a material contract with the Company since the end of the previous financial year and there were no materialcontracts involving Directors’ interest subsisting at year-end.

b) Wholly-owned group The ultimate holding company of Melbourne Symphony Orchestra Pty Limited (MSOPL) is Melbourne Symphony Orchestra Holdings Limited(MSOHL) which owns 100% of the equity in the Company. The Directors of MSOHL are also Directors of MSOPL. An agreement betweenMSOHL and MSOPL exists whereby MSOHL has agreed to fund MSOPL via contributions from the Australia Council for the Arts through the Major Performing Arts Board and the Victoria Ministry for the Arts through Arts Victoria. A service agreement that is governed by thecontents of the Tripartite Agreement exists between the two entities MSOHL and MSOPL. Corporate costs associated with MSOHL have been met by MSOPL.

c) Other related partiesSponsorship from Director-related entities is on terms and conditions no more favourable than those offered to other sponsors.

Cr Jennifer Kanis is a councillor of the City of Melbourne which also makes grants to the Company for various purposes (note 3). Total grants from the City of Melbourne in 2010 were $308,400 (2009 grants were $300,000).



2010 2009$ $

20. AUDITOR’S REMUNERATION

Audit of the financial report 30,000 30,000

30,000 30,000

No other benefits were received by the auditor.

21. EXPENDITURE COMMITMENTS

Artists fees contracted, but not provided for, and payable:Within one year 548,007 705,555One year or later, but not later than five years - -

548,007 705,555

Office equipment lease expenditure committed as per agreements: Within one year 15,733 26,287One year or later, but not later than five years 39,358 3,341

55,091 29,628

Consulting (Professional Services) contracts as per agreements:Within one year 76,309 57,833One year or later, but not later than five years - 50,508

76,309 108,341

Rental leases committed as per agreements (Administrative and Box Office premises):Within one year 204,597 198,015One year or later, but not later than five years 257,127 461,559

461,724 659,574

The Company has provided the lessor of the MSO Box Office with a bank guarantee of $15,657 (2009: $15,657) which can be drawn upon bythe lessor in the event that the Company does not meet its contractual obligations under the lease agreement.

Expenditure commitments are contracted up to the follow dates:• Artist fees – 31st December, 2011• Office equipment – 22nd August, 2014• IT maintenance – 15th October, 2011• Office rent – 30th June, 2013



22. FINANCIAL INSTRUMENTS

The Company’s principal financial instruments comprise cash and cash equivalents (refer note 15) together with trade and other receivables (refer note 8) and trade and other payables (refer note 12), which arise directly from its operations.

The capital of the Company comprises Shareholders’ Equity which in turn comprises Contributed Equity, Retained Profits / (accumulated deficit)and the Foundation and MSO RIS reserves (refer note 23 for further details). The Board manages capital by way of a thorough budgeting andreporting cycle of financial results, together with strategic meetings and the utilisation of various Board sub-committees.

The key financial risk factors that arise from the company’s activities, including policies for managing these risks are outlined below.

a) Interest rate risk

Interest rate risk refers to the risks that the value of a financial instrument or future cash flows associated with the instrument will fluctuate due to movements in market interest rates.

Interest rate risk exposuresThe Company’s exposure to interest rate risk and classes of financial assets are set out below:

Floating Fixed interest maturing in: Non-Interest 1 Year 1 to 5 More than Interest

rate or less Years 5 Years bearing Total$ $ $ $ $ $

31 December 2010

Financial assetsCash and cash equivalents - refer note 16a 2,401,274 1,696,850 - - 1,053 4,099,177Other financial assets - refer note 10 - 5,967,782 - - - 5,967,782

2,401,274 7,664,632 - - 1,053 10,066,959

31 December 2009

Financial assetsCash and cash equivalents - refer note 16a 1,227,898 700,000 - - 2,000 1,929,898Other financial assets - refer note 10 - - 6,785,674 - - 6,785,674

1,227,898 700,000 6,785,674 - 2,000 8,715,572

The Company manages exposure to interest rate risk by monitoring cash flows on a weekly basis and assessing fixed short term deposit interestrates on offer. Amounts are then set aside on fixed short term deposits.

Sensitivity analysisA sensitivity analysis of the effect of interest rate movements on financial assets and liabilities was not undertaken as the prospective impacts were not considered to be material at balance date.

b) Net fair valueThe net fair value of financial assets and liabilities at the balance date are those disclosed in the statement of financial position and related notes.This is because either the carrying amounts approximate net fair value or because of their short term to maturity.


22. FINANCIAL INSTRUMENTS (CONTINUED)

c) Credit riskThe Company’s maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the carrying amount ofthose assets as indicated in the statement of financial position and related notes.

The Company has exposure to credit risk on all financial assets included in the Company’s statement of financial position. To help manage thisrisk, the Company has:

• limited trade receivables;• a policy for establishing credit limits for entities it deals with; and • may require collateral where appropriate.

In addition, the Company restricts investment monies to AA rated Australian banks.

The Company’s credit risk is mainly concentrated across a number of customers. The Company does not have any significant risk exposure to a single or group of customers. Refer to note 8 for an ageing analysis of trade receivables. Based on the credit history of these classes, it isexpected that these amounts will be received when due.

d) Liquidity riskLiquidity risk is the risk that the Company cannot meet its financial obligations as and when they fall due. The Company is exposed to liquidity risk via its trade and other payables (refer note 12) and having cash and cash equivalents invested on fixed short-term deposits for periods of the year. To minimise this risk, the Company monitors cash flow on a weekly basis and strictly limits exposure to trade and other receivables.

2010 2009$ $

23. RESERVES

a) Retained surplus / (accumulated deficit)Retained surplus at the beginning of the year (993,395) -Surplus / (deficit) from ordinary activities for the year 31,420 (869,901)Transfer of interest earned on and donations to the MSO Foundation Reserve (245,529) (81,193)Transfer of interest earned on RIS Reserve (131,994) (42,301)

Retained surplus / (accumulated deficit) at year end (1,339,498) (993,395)

b) MSO Foundation ReserveThe purpose of the MSO Foundation Reserve is to accumulate capital to ensure the long-term viability and financial security of the MelbourneSymphony Orchestra. The interest accrued on the investment of the Fund, and the capital as permitted in its constitution, may be used for MSO projects that come within the purposes of the MSO Articles of Association.

Opening balance 1,394,388 1,313,195Transfer from Retained surplus / (accumulated deficit) 245,529 81,193

Accumulated funds at year end 1,639,917 1,394,388


2010 2009$ $

23. RESERVES (CONTINUED)

c) MSO Reserves Incentives Scheme ReserveThe Reserves Incentives Scheme (RIS) is designed to encourage and assist major performing arts companies to strengthen their balance sheets bybuilding reserves to a level that is sufficient to underpin their financial health and provide a base from which can be taken appropriate artistic andaccess risks.

The Australia Council and the Victorian Government have, together with the Company, contributed funds which are set aside, unencumbered and subject to the terms and conditions of the Reserves Incentives Scheme Funding Agreement. All income received on the funds received must be re-invested with the funds received and held in escrow for 15 years. These funds are not accessible to the Company until 3rd June 2019 and have not been used to secure any liabilities of the Company.

Opening balance 3,105,778 3,063,477Transfer from Retained surplus / (accumulated deficit) 131,994 42,301

Accumulated funds at year end 3,237,772 3,105,778

24. ECONOMIC DEPENDENCY

Provision of federal and state funding via the parent company, Melbourne Symphony Orchestra Holdings Limited, to Melbourne SymphonyOrchestra Pty Limited is in respect of funds payable as a result of the Orchestra Review Implementation Funding Agreement. It originates from federal and state governments, through the Australia Council for the Arts and the Victoria Ministry for the Arts and is paid to MelbourneSymphony Orchestra Holdings Limited. A funding agreement between Melbourne Symphony Orchestra Holdings Limited and MelbourneSymphony Orchestra Pty Limited provides the basis for the funds to be passed to Melbourne Symphony Orchestra Pty Limited. As a result, the company is economically dependent on Melbourne Symphony Orchestra Holdings Limited, and in turn, on the Australia Council for the Arts and the Victoria Ministry for the Arts.

The directors note that the Company’s continued success is also dependent on maintaining current levels of corporate sponsorship and ticket sales and successfully mitigating the negative impact of Hamer Hall closure by way of negotiating additional specific purpose funding to mitigate these impacts for the period until Hamer Hall reopens.

25. SUBSEQUENT EVENTS

No events have occurred subsequent to balance date that materially affect the accounts and are not already reflected in the Statement ofComprehensive Income and Statement of Financial Position.

26. ADDITIONAL DISCLOSURES

Melbourne Symphony Orchestra Pty Limited is a company limited by shares, incorporated in Australia and having its registered office address and principal place of business at:

ABC Southbank Centre120 - 130 Southbank BoulevardSouthbank VIC 3006


The postal address of Melbourne Symphony Orchestra Pty Limited is:

GPO Box 9994Melbourne VIC 3001


DIRECTORS’ DECLARATION

In the opinion of the Directors of Melbourne Symphony Orchestra Pty Limited (“the Company”):

(a) the financial statements and notes of the Company are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the financial position of the Company as at 31 December 2010 and of its performance, as represented by the results of its operations and its cash flows for the period ended on that date; and

(ii)complying with Accounting Standards and the Corporations Regulations 2001; and

(b) there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Directors:

Harold Mitchell ACChairman


Matthew VanBesienManaging Director


Directors’ DECLARATION


Melbourne Symphony Orchestra gratefully acknowledges thefollowing organisations for their generous support:

PRINCIPAL PARTNER

GOVERNMENT PARTNERS

PARTNER – MAESTRO LEVEL

PARTNER – CONCERTMASTER LEVEL

PARTNER – ASSOCIATE LEVEL

SUPPORTING PARTNER

SUPPLIERS

The Crock Group • Kent Moving and Storage • Lindt & Sprüngli

Quince’s Scenicruisers • Melbourne Brass and Woodwind • Nose to Tail

Geoffrey RushMSO AMBASSADOR

2008 Melbourne Symphony Orchestra – Annual Report Page 58 2008 Melbourne Symphony Orchestra – Annual Report

Melbourne Symphony Orchestra Pty Ltd ABN 47 078 925 658

120 – 130 Southbank Boulevard Southbank VIC 3006Postal Address GPO Box 9994 Melbourne VIC 3001www.mso.com.au

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