mcclelland sculpture park+gallery annual report 2018-19...is a place for reflection, that celebrates...

McClelland Sculpture Park+Gallery Annual Report 2018-19

CONTENTS

Cover image: McClelland Sculpture Park+Gallery. Photo Mark Chew.

OUR MISSION, VISION AND VALUES

CHAIRMAN’S REPORT

DIRECTOR’S REPORT

TREASURER’S REPORT

ARTISTIC PROGRAM

EDUCATION PROGRAM

PHILANTHROPY & SPONSORSHIP

STAFF & BOARD OF TRUSTEES

AUDITED ACCOUNTS

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OUR MISSION

To promote public understanding, education and the experience of sculpture and contemporary artistic practice in an Australian bushland environment.

OUR VISION

To be an internationally recognised open air art institution that celebrates the value of creative practice through its connection to the natural environment.

WHAT WE VALUE

• Artisticrigourinallprojectsandlearningprograms;• RespectforAustralia’sFirstNationsPeople,theircountryandwaters;• Spaceandtimeforcontemplationbeyondoureverydaylife;• Theopportunitytopromoteandembedpositiveexperiencesandaccessforallpeople, irrespectiveofage,mobilityandethnicity,andthroughvaluingourculturaldifference;• Ethicalinnovationthatpromotesconsideredandhighqualityexperiencesacrossour fourcentraltenets:culture,education,environmentandcommunity;• FinancialsuccessthatcontinuestoseeMcClellandflourishinaprudentandsustainable way,reflectingMcClelland’ssignificantplaceasalargeculturalassetofgreatvaluein Australian art history.

WHAT WE OFFER

Aunique,discoverybasedexperienceoficonicAustraliansculptureinanopenairenvironmentwithin a safe and welcoming setting for all people.

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Opposite: Phil Price, Tree of life 2012, McClelland Southern Way Commission 2012.

CHAIRMAN’S REPORT

Inthisfastmoving,materialworld,theservicesandofferingofMcClellandGalleryandSculptureParkhaveneverbeensoimportant.InthewordsofformerPremierDickHamerin1972:“Whatistheprofit,theysay,insteadilyexpandingandimprovingman’ssupplyofmaterialthings,ifthethingsofthespiritare dimmed, and the very environment in which we live threatened?”

McClelland stands, surrounded by the urban sprawl that is greater Melbourne, as a beautiful, peaceful natural place, providing valued experiences that enhance and expand on matters of the spirit. McClelland isaplaceforreflection,thatcelebratescreativityandinnovation,andpromotesartandeducation,forpeopleofallagesfromallplaces,tocomeandenjoy.

We have had wonderful year and have welcomed over 175,000 visitors to the park and the gallery. Our exhibitionprogram,listedintheDirector’sreport,hasbeenoutstandingandbrilliantlycuratedtomuchacclaim.

We are thrilled to announce that Baillieu Myer AC and Lyn Williams AM have become Patrons of McClelland. They have each been enormous supporters throughout the life of McClelland. We also welcomedColinSimpson,FoundationPrincipalofRichmondHighSchooltotheboard,withhisstrongbackground in art and education.

Weareparticularlygratefultoourhardworkingstaffandvolunteersforanothersuccessfulyear,andaresorrytoloseouresteemedEducationOfficer,ImogenGoodafter9yearsofoutstandingservice,includingsupervisingthebuildingofnewEducationPavilion.Wewerealsoverysaddenedtoloseourlong term Weekend Manager Joan Crowther and greatly miss her warm and welcoming smile. ThehighlightoftheyearisnodoubtthemarvellousopeningoftheSarah&BaillieuMyerEducationPavilion and Graham Terrace. This exceptional facility opens a whole new chapter for educational programs at McClelland, and a wonderful function space for hire. The opening was a memorable event attended by a collection of loyal long-term supporters, artists, local dignitaries and members of the local community.RupertMyerAOandMichelleGrahamspokewithgreateloquenceandpoignancyonbehalfoftheirfamilies,asdidMartinCarlsonOAM,ChairmanofTheHughD.T.WilliamsonFoundation.

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Image: SolidLight:JosefStanislawOstoja-Kotkowski exhibition installation view. Photo Christian Capurro.

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On behalf of the Board, I would like to thank Lisa Byrne, our Director, for a very busy and productive year and congratulate her on all she has achieved, with the support of our small, highly competent team across the gallery, sculpture park and cafe at McClelland. Special thanks to Trish Delves, our volunteer who operates our lovely gift shop, for her amazing contribution to the operations at McClelland.

Thanks also to the involvement and commitment of each member of our very collaborative board whohaveworkedhardtooverseetheactivitiesofMcClellandaswellasrefineandconsolidatetheorganisation’smissionandvision.TheBoardhasengagedKPMGtoprepareasustainablebusinessmodel for the organisation for the future, which will form the basis of a new strategic plan to be prepared in 2020.

ExpandingthemembershipandtheMcClellandCircle,andprovidingfourspecialexperiencestoCirclemembers has been a priority this year. We thank and welcome all new members and encourage all supporters to consider Circle Membership. McClelland relies on our generous donors to be able to openourdoorsandbeautifulbushgrounds,andprovidehighqualityartexhibitions,educationalandrecreational services to the public, and we particularly thank all those who have generously donated throughout the year.

McClellandisaprizedculturalassettotheFrankstonCitymunicipalityandthepeopleofVictoria.AsourMinisterforCreativeIndustriesMichaelFoleyrecentlyrecognised:“Ourcreativeindustriesbringsignificantsocial,culturalandeconomicbenefitstoVictoria.They’reattheheartofouridentity,ourprizedliveability and our appeal to visitors.” We very much look forward to your visits throughout the coming year!

Susie Hamson, Chairman

Image:TheSarah&BaillieuMyerEducationPavilionopening,McClellandSculpturePark+Gallery.PhotoAndyDrewitt.

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DIRECTOR’S REPORT

2018-2019 at McClelland was a triumphant year across all that McClelland did to promote public understanding, education and the experience of sculpture and contemporary artistic practice in an Australian bushland environment, in striving to be an internationally recognised open air art institution that celebrates the value of creative practice through its connection to the natural environment.

WiththenotablecompletionofthelongaspiredforSarah&BaillieuMyerEducationPavilioninFebruary2019,designedbyKerstinThompsonArchitectsandfullyfundedbySarah&BaillieuMyertogetherwiththeYulgilbarFoundation,TheSidneyMyerFoundation,AidanGrahamFamilyTrust,theCalvertJonesFoundationandTheHughD.T.WilliamsonFoundation,thisnewpavilionwillprovidemuchneededindoorspaceforteachingandlearning,aswellasprovideasignificantafter-hourseventvenueintheouterSouthEast,attractinggreaterandnewaudiencestoMcClellandintothefuture.

TheexhibitionprogramincludedarangeofsoloandgroupexhibitionsthatreflectMcClelland’scommitment to the promotion and understanding of contemporary and modern spatial practice. McClelland continues to be a free cultural asset for its visitors. Our program in 2018-19 included the exhibition AtlasofMemory:(re)visualisingGordonFord’snaturalAustraliangarden, with researcher Annette Warner, Black Paintings by Sanné Mestrom, Splash:ContemporaryWatercolourAcquisitiveAward, and Solid Light,thefirstmajorshowingofJosefStanislawOstojaKotkowskiinAustraliawithPiavanGelder’sfabulousnewworkPsychic Synth. Our program received numerous reviews in both general andscholarlyjournals,blogsandthepress.

Our education programs for schools in the park were once again booked out over the warmer spring and summer months. Public programs were reactivated with the opening of the pavilion and a whole new suite of annual programming has commenced bringing new audiences to McClelland and importantly the appreciationandunderstandingofart,sculptureandouruniquesculptureofferhereatMcClelland.

McClelland’ssignificantsculpturecommissioningpartnershipwithPlenaryGrouprealisedthedevelopmentofanewpermanentmajoroutdoorsculpture,aspartoftheWesternRoadsUpgradeProject,fortheMajorProjectsDepartmentoftheVictorianStateGovernment.Thiswillbecompletedinmid-2020. Our corporate partners grew in 2018-19 to include several increased commitments and new partnerships. We are delighted to see what these new relationships will bring to us into the future.

MysincerethankstotheBoardofTrustees,Patrons,andallthestaffatMcClellandfortheirongoingenthusiasm and energy, and to all our supporters, especially artists with whom we had the great privilege toworkoverthelastfinancialyear.

Lisa Byrne, Director

Image:FionaMcMonagle,The park at the end of my road 2016, watercolour animated video. Collection of McClelland. Splash Contemporary Watercolour Award 2018 Highly Commended.

TREASURER’S REPORT

Whilewecontinuetoseechallengingfinancialtimes,2019deliveredayearofsteadyimprovementfortheMcClellandGroup.ThekeyfocusofTrusteesandmanagementhasbeentobuildourfinancialsustainabilityoverthelongterm.TheopeningoftheSarah&BaillieuMyerEducationPavilionwasanotherstepforward,expandingMcClelland’scapacitytoenhanceitseducationalprogrammestothecommunity as well as increase our revenue generating capacity through the use of the new centre as a uniquefunctioncentre.Inaddition,2019sawtheupgradeofourfinancialreportingsoftwarewhichhasenabledimprovedmanagementandmonitoringofourfinancialresources,betterperformancereportingaswellasimprovedfinancialcontrolsanddecisionmaking.

McClellandrunsaverytightshipwithrespecttostaffinganddaytodayoperations.Despitecarefulbudgetingandmanagementthefinancialperformancefortheyearshowsamodestloss,reflectingthe cost pressures of rising energy and operating costs, as well as the continued challenge around maintainingfinancialsupport.Costcontrolremainsverytightandiscarefullymonitored,andpleasinglythecaféisgeneratingamodestprofitandtheexhibitionprogrammeisseeingrecordnumbersofvisitorsto the gallery and our sculpture parklands.

Thekeytoimprovedfinancialsuccessisongoingsupportfromthephilanthropicsector,publicdonationaswell as government funding and the wonderful donor and public support is much appreciated. However, like most organisations in the arts sector, operational funding remains a key challenge and focus for McClelland to ensure we continue our arts programmes for the community and remain the home of sculpture in Australia. The Trustees and management team are working hard to maintain and build the funding support across all sectors to ensure McClelland remains at the forefront of arts institutions in VictoriaandmaintainsitsuniqueplaceasAustralia’spremieroutdoorSculptureParkandGallery.

MikeKendall,Treasurer

Image:StephenKillick,The Big Coin 1986, silver, paper, tin, acrylic, oil paint, 50.0 x 60.0 cm. Collection of McClelland. Donated byBruceParncuttAOthroughtheAustralianGovernment’sCulturalGiftsProgram.

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ARTISTIC PROGRAM

Sanné Mestrom: Black Paintings AtlasofMemory:(re)visualisingGordonFord’snaturalAustraliangarden29July-11November2018

Splash: McClelland Contemporary Watercolour Award 25November2018–17March2019

SolidLight:JosefStanislawOstoja-Kotkowski/PiaVanGelder:PsychicSynthII1April–14July2019

McClelland’sexhibitionprogramhasfocusedoncross-culturalengagementandmigrationhistories,newmedia, critically investigating our relationship with the environment, and supporting contemporary arts practice.

AnnetteWarnerpresentedhercurrentresearchintotheiconicpracticeofVictorianlandscapedesignerGordonFord,creatingauniquedeepmappingofFord’spractice.TheAtlasofMemory(re)visualisedFord’snaturalAustraliangardenasacollectionofarchivesgatheredoverthelastfiveyears.TheresultingexhibitionwasanarrangementofhistoricalmaterialgleanedfromFord’scollectionwithadditionalcontentfromcollaboratorsandfriendsdrawingupontechniquesfromthefinearts,fieldworkand landscape practice.

ComplementingthisexhibitionwasaseriesofSannéMestrom’sBlack Paintings, made from undyed unspun wool mounted on steel frames and derived from a series of minimal abstract paintings by the AmericanpainterFrankStellafromthe1960s.Mestrom’sseriescelebratestheroughtextureandcomfortingqualitiesofwoolandtheassociatednotionsofweavingasafemininecraft.Stella’scanvaseswerere-posedbyMestromasendearingsculpturalobjectsandinstallations,complementedbyaseriesof gouache paintings.

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Image: SolidLight:JosefStanislawOstoja-Kotkowski exhibition installation view. Photo Christian Capurro.

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Above left: SolidLight:JosefStanislawOstoja-Kotkowski exhibition catalogue cover.Aboveright:JohnMeadeandEmilyKaranikolopoulos’sLoveFlowerinfabricationatShapeshift’sIndonesianfactory.

The inaugural $30,000 Splash: McClelland Contemporary Watercolour Award was established with funds fromtheFornariBequesttoshowcaseAustralianwatercolourartists.Theacquisitivetriennialawardisgranted for an outstanding original art work in the medium of watercolour, and aims to promote artistic excellenceandtosupportcontemporaryartistswhileexpandingMcClelland’shighqualitycollectionforthebenefitofthelocalcommunityandMorningtonPeninsularegion.Artistsincludedwere:LeeBethel,KateBeynon,JacquieBlight,JamesBoissett,MitchelBrannan,LeahBullen,ChrisCasali,MichelleCawthorn,CarlaCescon,GlenClarke,GregCreek,DuChonggang,AnneEdmonds,BelindaFox,RosiGriffin,DavidHurwitz,DeeJackson,GGJolliffe,SonjaKarl,DominikaKeller,WaratahLahy,DuncanLannan,TaniaMason,MaxineLeighMcKee,FionaMcMonagle,JenniferMills,ClaudiaNicholson,HubertPareroultja,JohnPastoriza-Piñol,JanPittman,RebeccahPower,AnnetteRaff,AnnikaRomeyn,SteveSalo,SangeetaSandrasegar,AndrewSeward,NicolaSmith,TangYing,EbonyTruscott,MichelleUssher,ElkeVarga.

Jennifer Mills was awarded the $30,000 award for her work, In the echo chamber (WARNING NUEAO, Brendan 1976-78) 2018,judgedbyLindaMichael,independentcuratorandeditor.FionaMcMonagle’sanimated video work, The park at the end of my road 2016, was selected for the $10,000 highly commendedwork,judgedbySamanthaComte,Curator,TheIanPotterMuseumofArt,UniversityofMelbourne.

The exhibition Solid Light: Josef Stanislaw Ostoja-Kotkowski was popular with all ages and received excellentreviewsandattendance.Thecatalogue,generouslysupportedbytheGordonDarlingFoundation,hassoldwellandgeneratedmuchinterestamongothercurators,artistsandinstitutions.ThiswasthefirstmonographonOstoja-Kotkowski’sworkandthefirstmajorexhibitionofhisground-breakingsculpturalpractice.

COMMISSIONS

The 2018 Southern Way McClelland Commission, Love FlowerbyJohnMeadewithEmilyKaranikolopoulos,beganfabricationandisscheduledforinstallationonCranbourneRdinOctober2019.ThiswillreplaceGregorKregar’sReflective Lullaby,affectionatelyknownasthe‘chromegnome’.TheWesternRoadsUpgradeCommissionwasmanagedbyMcClellandinpartnershipwithPlenary,alongwithfurtherbidsforpublicartinfrastructureprojects.ThismajorcommissionsoughtapplicationsfromartistswithastrongconnectiontoMelbourne’sWesternsuburbs,andwillbeamajorstatementincontemporaryAustraliansculpture.TheseinitiativesconsolidateMcClelland’skeyinvolvementinpublicartinAustralia,alreadyevidencedbyourcollectionofCentre5artistssuchasIngeKingandLentonParr.

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COLLECTION

2018-19sawtheacquisitionofanumberofkeyworksfortheMcClellandcollection,includinganexquisitebronzePearbyGeorgeBaldessin,astunningsuiteofBenjaminArmstronglinocutprints,aseries of sculptures made with natural materials by Lisa Waup, and a body of nineteen tapestries by Sanné Mestrom:

AdrianPAGEFour Columns; natural forms and Revelation 2008DonatedbyIreneBarberisthroughtheAustralianGovernment’sCulturalGiftsProgram

IngeKINGAwakening (Maquette II) late 1980sDonatedbyIreneSuttonthroughtheAustralianGovernment’sCulturalGiftsProgram

SannéMESTROMBlack paintings 2014-2018 (21 works total)2workspurchasedthroughtheElisabethMurdochSculptureFund19donatedbytheartistthroughtheAustralianGovernment’sCulturalGiftsProgram

NormaREDPATHPaessaggio Caryatide (Maquette) 1980PurchasedthroughtheElisabethMurdochSculptureFund

BenjaminARMSTRONGInvisible Stories: Meditations on Port Essington 2018 (11 works)PurchasedthroughtheFornaribequest

StephenKILLICKThe big coin 1986DonatedbyBruceParncuttAOthroughtheAustralianGovernment’sCulturalGiftsProgram

SimeonNELSONFrench Curve no 4 1998DonatedbyBruceParncuttAOthroughtheAustralianGovernment’sCulturalGiftsProgram

LisaWAUPAncestors 2018 (series of four works)PurchasedthroughtheElisabethMurdochSculptureFund

Image: Sanné Mestrom, Black painting III 2014 (detail), unspun undyed woollen tapestry, steel, 200 x 250 cm. Courtesy the artist and Sullivan+Strumpf, Sydney. Photo Christian Capurro.

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YvonneKENDALLAbout artichokes and other hearts 2005DonatedbyMichaelBuxtonthroughtheAustralianGovernment’sCulturalGiftsProgram

RobertJACKSUntitled (violin) 1996Gift of Julienne Jacks

FionaMcMONAGLEThe park at the end of my road 2016Splash McClelland Contemporary Watercolour Award 2018 Highly Commended

Jennifer MILLSIn the echo chamber (WARNING NUEAO, Brendan 1976-78) 2018Splash McClelland Contemporary Watercolour Award 2018

Updatingofthecataloguedatabasecontinuestomakeourcollectionmoreaccessibleanddocumentationmorethorough.AsecondcuratorialinternfromMelbourneUniversity’sMastersprogram,TrishButcher,hasbeenassistingwiththisprocess.AnumberofMcClelland’sworkswereloanedtoimportantexhibitions,including Patricia Piccinini & Joy Hester: Through love at TarraWarra Museum of Art, and Melbourne Modern: European art & design at RMIT since 1945atRMITGallery.

McClelland’sstorageareaswereconsolidated,andoutdoorworkscurrentlyonlong-termloanhavebeenidentified,withaviewtoreturningthesetotheirownerstoallowmorespaceintheparkforupcomingcommissionsandacquisitions.MajorconservationworkwascompletedonPeterCorlett’sTarax Play Sculpture 1969,whichentailedrepaintinginconsultationwiththeartistandtheNationalGalleryofVictoria.

LOANS

AnumberofworksfromMcClelland’scollectionwereloanedformajorexhibitionsatotherinstitutions,expandingtheaccessibilityandreachofthecollection.Theseinclude:GeorgeBALDESSIN,1 pear (single large bronze pear) 2009 - Baldessin / Whiteley: Parallel Visions,NationalGalleryofVictoria,31August2018–28January2019;JanetLAURENCE,Forensic sublime (Crimes against the landscape series: Styx Forest) 2008 - Janet Laurence: After Nature,MuseumofContemporaryArtAustralia,1March–10June2019;PatriciaPICCININI,Doubting Thomas 2008 - Patricia Piccinini and Joy Hester: Through love, TarraWarraMuseumofArt,24November2018to11March2019;VincasJOMANTAS,Landing Object II 1971;TeisutisZIKARAS,Mother and childc.1960;TeisutisZIKARAS,The Bride1965(cast2008);SannéMESTROM,Black painting IV2018;SannéMESTROM,Black painting V 2018 - Melbourne Modern: European art and design at RMIT since 1945,RMITGallery,20June–17August2019.

Image left: Adrian Page, Four Columns; natural forms and revelation 2008. Collection of McClelland. Donated by Irene Barberis throughtheAustralianGovernment’sCulturalGiftsProgram,2019.PhotoChristianCapurro.Image right: Jennifer Mills, In the echo chamber (WARNING NUEAO, Brendan 1976-78) 2018. Collection of McClelland. Splash McClelland Contemporary Watercolour Award 2018. Image courtesy the artist.

EDUCATION PROGRAM

EarlyYearsProgrammingKindergartensandearlylearningcentregroupsgreatlyenjoyvisitingMcClelland.Toursforthisage group respond to the sculptures in the park with activities incorporating movement and stories. Students gain language and communication skills by sharing ideas about art and the way in which art is made, while their time in the park helps in the development of spatial and mathematical skills.

Primary SchoolsPrimary school students are invited to identify and interpret visual cues, share their thoughts, and use these discussions as a group to construct meaning and develop the idea that art is a visual language for reading and interpretation. Workshops further develop these skills by encouraging students to tell a story or share an idea through their visual art. Primary school workshops often generate responses in the students to ideas relating to our humanity, climate changeandworldconflict.

Secondary Schools Asstudentsadvancethroughtheirsecondaryeducationandtheirstudiesbecomemorespecific,visitstoMcClellandintentionallyfocusoninterpretingandfindingmeaninginart,developingspecificartterminologyaswellaslearningaboutthematerialsandprocessesusedbyartists.AtMcClellandwerunspecificprogramsforVCEstudioartstudents.Aspartoftheirassessment,students are expected to write in detail about the way in which galleries operate, best practices forstoringandcaringforartworks,theroleofvariousgallerystaffmembers,andexhibitiondevelopment, design and layout.

McClelland supports a number of schools by presenting awards and speaking at annual art shows, presentations and events. This engagement helps solidify the importance of art to the wider school community and supports emerging artists in schools in the development of their creative potential.

In 2018-19, 2831 students and 750 teachers, carers and parents booked in to visit McClelland. Otherschoolgroupsvisitwithoutnotification.

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Image: School Holiday Prgram 2019.

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Image:YarrabahSchoolArchi-LoomprojectwithTheSlowArtCollective.

YarrabahSchoolArchi-LoomprojectwithTheSlowArtCollectiveOver seven weeks during term 2 of 2019, McClelland worked with the Yarrabah School and the SlowArtCollectiveartistsChacoKatoandDylanMartorellonthecreationoftwoArchi-Loominstallations. Yarrabah is a Specialist School that caters for students with intellectual, physical and/ormultipledisabilities.Yarrabah’spurposeistomaximisestudentpotentialbyprovidinganindividualised safe learning environment that promotes active learning, encourages adventure, independenceandself-esteem.ThisprojectwasmadepossiblethankstoCreativeVictoria’sCreative Learning Partnerships.

School Holiday ProgramsOurschoolholidayprogramsincludeenjoyablestudio-basedworkshopswithchildren,wherewefocus on learning practical art making skills related to current exhibitions or sculptures in the park. Our family sculpture making workshops continue to be popular over summer. These workshops encouragefamiliestoworktogethertocreatesculpturesfromdiscardedobjectsandarerunfreeof charge to enable greater participation.

Overthesummerschoolholidayperiod,weagainpartneredwiththeNationalGalleryofVictoriatoruntheNGVKidsonTourprogram.Theseprogramsareheldoutdoors,andareverywellreceivedby the local community, as large numbers of children and families participate. To coincide with the Splash exhibition over summer, we also held two very successful watercolour workshops. Inautumnweranourfirstworkshopwith100StoryBuildingusingthesculptureparkastheinspiration for creating narratives and story writing.

NaturePlayWeekNaturePlayweekisastatewideinitiativeheldduringApriltoencouragefamiliesandchildrentoenjoytheoutdoors.Thisyearchildrenwereabletoexploreorganicsculpturalandarchitecturalforms and space by creating huts inspired by the Aboriginal mia-mia with sticks, fallen branches, barkandrocks,anddiscoverpatternsandtexturesinnatureusingtheFrenchfrottagetechnique,taking rubbings from trees and leaves in the park to create a collage.

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PHILANTHROPY & SPONSORSHIP

Throughout2018-19,McClelland’sgenerouspartners,sponsors, donors and supporters have enabled us to provide a high level of service to our visitors across all aspects of our operations.

We gratefully acknowledge the support of:

CreativeVictoriaFrankstonCityCouncilTheBalnavesFoundationTheGordonDarlingFoundationCrownResortsandThePackerFamilyFoundationTheElisabethMurdochSculptureFundTheFornariBequestPlenary Group International Art ServicesHaymes PaintElgeeParkVineyardMornington Peninsula Brewery

We are also indebted to the dedicated volunteers who support us in all our daily operations, the gallery guides and colleagues from the arts industry who have willingly participated in our public programs and supported our exhibitions.

Image:KenUnsworth,Annulus2007.CollectionofMcClelland.CommissionedbytheElisabethMurdochSculptureFoundationin memory of Ann Miller (1938-2005). Image Mark Chew.

Opposite: Annette Warner, Atlas of Memory: (re)visualising Gordon Ford’snaturalAustraliangarden, installation views. Photo Christian Capurro.

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Image: Annette Warner, AtlasofMemory:(re)visualisingGordonFord’snaturalAustraliangarden, installation views. Photo Christian Capurro.

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Opposite:NormaRedpath,Paesaggio Cariatide 1980,bronzemaquette,19.6x32.5x5.4cm.CollectionofMcClelland.ImagecourtesyCharlesNodrumGallery.

STAFF

LISABYRNE:DIRECTOR

IANCAIL:FACILITIES&GROUNDSMANAGER

ANTHONYCHRISTIE:HEADCHEF

IMOGENGOOD:EDUCATION&SPECIAL PROJECTSMANAGER(UNTIL16JUNE 2019)

CAROLYNHANSEN:CARETAKER

AARONHAZELTON:ASSISTANTCHEF (UNTILAPRIL2019)

SAMANTHAHULL:APPRENTICE/1STYRCHEF

RACHELISAAC:WEEKENDFRONTOFHOUSE OFFICER

SIMONLAWRIE:THEBALNAVESCURATOROF AUSTRALIANSCULPTURE

SHIREENLONGLEY:PAYROLL&HR COORDINATOR

DEREKLYALL:MCCLELLANDCAFÉMANAGER

SUSIERAVEN:CURATOROFPROGRAMS

ESTHERRAWORTH:FRONTOFHOUSE COORDINATOR

BOARD OF TRUSTEES

SUSIEHAMSON:CHAIRMAN

CAMILLAGRAVES:DEPUTYCHAIRMAN

MICHAELKENDALL:TREASURER

JOHNCALVERT-JONESAM

STEPHENCHARLESAO,QC

JONATHANCLEMENTS

JULIEKANTOR

LISAROET

COLINSIMPSON

JOHNYOUNG

McCLELLAND SCULPTURE LTD ACN 082 448 262

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JUNE 2019

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DIRECTORS’ REPORT

The Directors of McClelland Sculpture Ltd submit herewith the financial report of the Company for the year ended 30 June 2019. Directors The names of the Directors in office during the year and to the date of this report are: Susie Hamson (Chairman) Mike Kendall Camilla Graves (Deputy Chairman) Lisa Byrne All Directors were in office for the full year unless stated. Principal Activities The principal activity of the Company during the financial year was operating the McClelland Sculpture Park & Gallery. No significant changes in the nature of the Company’s activity occurred during the financial year. Operating Results The net profit before Donations to Estate of A.M. McClelland amounted to $850,789 (2018: net loss $2,523). The net loss after Donations to Estate of A.M. McClelland amounted to $41,233 (2018: net loss $570,705). Review of Operations During the year, the Directors of McClelland Sculpture Ltd resolved to donate significant Art and Sculpture Collection items to the Estate of A.M. McClelland, totalling $892,022 (2018: $568,182). The Estate of A.M. McClelland is the owner of the McClelland Group Art and Sculpture Collection. The Company’s donation of $892,022 (2018: $568,182), to the Estate of A.M. McClelland, was the main contributor to the significant net operating loss. Also, contributing to the Company’s net operating loss this year was the finalisation of the Company’s restructure and transformation programme. Other than the matters described above, it is the opinion of the Directors that the results of the Company’s operations during the year were not substantially affected by any other item, transaction or event of a material and unusual nature. Dividends Paid or Recommended No dividends can be paid, as there is no share capital.

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DIRECTORS’ REPORT

Significant Changes in State of Affairs No significant change in the state of affairs of the Company occurred during the financial year. Events after the Reporting Period No matters or circumstances have arisen since the end of the financial year, which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in financial years subsequent to the financial year ended 30 June 2019. Likely Developments No information is included on the likely developments in the operations of the Company and the expected results of those operations as it is the opinion of the Directors of the Company that this information would prejudice the interests of the Company if included in this report. Meetings of Directors During the financial year, four meetings of Directors were held. Attendances by each director during the year were as follows: Meetings

Attended Number of Meetings held whilst a Director

Susie Hamson 4 4 Mike Kendall 4 4 Camilla Graves 4 4 Lisa Byrne 4 4 Members’ Guarantee The Company is a Company limited by guarantee. If the Company is wound up, the constitution states that each member is required to contribute a maximum of $50 each towards meeting any outstanding obligations of the Company. At 30 June 2019, the total amount that members of the Company are liable to contribute if the Company is wound up is $200 (2018: $200).

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DIRECTORS’ REPORT

Directors or Auditor Indemnification The Company has not, during or since the financial year in respect of any person who is or has been an officer or auditor of the Company or a related body corporate;

• Indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer, including costs and expenses in successfully defending legal proceedings; or

• Has paid or agreed to pay a premium in respect of a contract insuring against a liability

incurred as an officer for the costs and expenses to defend legal proceedings. With the exception of the following matters: During the financial year, the Company has paid premiums to insure each of the Directors against liabilities for cost and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the Company, other than conduct involving a wilful breach of duty in relation to the Company. The amount of the premium is not disclosed as it is confidential. Directors’ Benefits No director has received or become entitled to receive, during or since the end of the financial year, a benefit because of a contract made by the Company, controlled entity or a related body corporate with a director, a firm of which a director is a member or a Company in which a director has a substantial financial interest. This statement excludes a benefit included in the aggregate amount of emoluments received or due and receivable by Directors shown in the Company’s financial statements, or the fixed salary of a full-time employee of the Company, controlled entity or related body corporate. Auditor’s Declaration A copy of the auditor’s independence declaration as required under section 60-40 of the Australian Charities and Not for Profits Commission Act 2012 can be found on the page following this report. Signed in accordance with a resolution of the Board of Directors: Director ………………………… Director ………………………… Camilla Graves Mike Kendall Dated this 9th day of September 2019 21

Liability limited by a scheme approved under Professional Standards Legislation

Shepard Webster & O’Neill Audit Pty Ltd is a CPA Practice

Shepard Webster & O’Neill Audit Pty Ltd Certified Practising Accountant, Authorised Audit Company ABN: 89 154 680 190

Level 1 / 31 Beach Street, Frankston Victoria 3199 P.O. Box 309, Frankston Victoria 3199 T: (03) 9781 2633 F: (03) 9781 3073

E: [email protected] W: www.shepard.com.au

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AUDITOR’S INDEPENDENCE DECLARATION To McClelland Sculpture Ltd, In accordance with the requirements of section 60-40 of the Australian Charities and Not for Profits Commission Act 2012, as lead auditor for the audit of McClelland Sculpture Ltd for the year ended 30 June 2019, we declare that, to the best of our knowledge and belief, there have been:

i) No contraventions of the auditor independence requirements of the Australian Charities and Not for Profits Commission Act 2012 in relation to the audit, and;

ii) No contraventions of any applicable code of professional conduct in relation to the audit.

Dated at Frankston on the 9th of September 2019 SHEPARD WEBSTER & O’NEILL AUDIT PTY LTD Certified Practising Accountant Authorised Audit Company No 415478 31 Beach Street Frankston 3199, PO Box 309 Frankston Victoria 3199 Telephone (03) 9781 2633 – Fax (03) 9781 3073 Email – [email protected] DAVID A SZEPFALUSY DIRECTOR

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STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 30 JUNE 2019

Notes 2019 2018$ $

CONTINUING OPERATIONS

INCOMERevenue (Contract Fees / Grants) 293,363 375,500 Shop Income 60,623 66,446 Café Income 747,912 644,602 Donations & Fundraising 1,508,878 603,286 Investment Income 22,848 38,713 Profit / (Loss) on the Disposal of Investments (Net) 16,389 ( 5,443 ) Other Income 95,305 67,299

TOTAL INCOME 2 2,745,318 1,790,403

EXPENSESShop Expenses 36,234 34,301 Café Expenses 748,639 664,094 Gallery Activities 201,928 178,431 Buildings & Sculpture Park Development 8,345 16,226 Education Programs 7,711 3,633 Exhibition Expenses 107,974 82,155 Admin Expenses 741,711 783,377 Marketing & Publicity & Fundraising 41,987 30,709 Donations to Estate of A.M. McClelland 892,022 568,182

TOTAL EXPENSES 2,786,551 2,361,108

NET OPERATING PROFIT / (LOSS) ( 41,233 ) ( 570,705 )

The Accompanying Notes Form Part Of These Financial Statements 23

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STATEMENT OF OTHER COMPREHENSIVE INCOME / (LOSS)


Notes 2019 2018$ $

NET OPERATING PROFIT / (LOSS) ( 41,233 ) ( 570,705 )

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified subsequently to profit or loss: - -

Items that may be reclassified subsequently to profit or loss:Movement in Unrealised Gain / (Loss) on Investments ( 30,566 ) ( 2,892 )

TOTAL COMPREHENSIVE LOSS ( 71,799 ) ( 573,597 )


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STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2019

Notes 2019 2018$ $

CURRENT ASSETSCash and Cash Equivalents 3 983,883 1,501,544 Trade and Other Receivables 430,580 95,083 Other Assets 4 26,309 34,034 TOTAL CURRENT ASSETS 1,440,772 1,630,661

NON CURRENT ASSETSInvestments 260,256 593,474 Property, Plant and Equipment 5 - 111,518 Sculptures Collection (at Valuation) 6 168,000 - TOTAL NON CURRENT ASSETS 428,256 704,992

TOTAL ASSETS 1,869,028 2,335,653

CURRENT LIABILITIESTrade and Other Payables 7 656,364 1,041,448 Short Term Employee Entitlements 8 85,446 95,188 TOTAL CURRENT LIABILITIES 741,810 1,136,636

NON CURRENT LIABILITIESLong Term Employee Entitlements 8 - - TOTAL NON CURRENT LIABILITIES - -

TOTAL LIABILITIES 741,810 1,136,636

NET ASSETS 1,127,218 1,199,017

EQUITYRetained Earnings 1,141,351 1,182,584 Financial Asset Reserve 9 ( 14,133 ) 16,433

TOTAL EQUITY 1,127,218 1,199,017


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STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2019

Notes 2019 2018

$ $

EQUITY

Retained Earnings

Opening Balance 1,182,584 1,753,289

Operating Profit / (Loss) from Continuing Operations ( 41,233 ) ( 570,705 )

Closing Balance 1,141,351 1,182,584

Financial Asset Reserve

Opening Balance 16,433 19,325

Movement in Unrealised Gain / (Loss) on Investments ( 30,566 ) ( 2,892 )

Closing Balance ( 14,133 ) 16,433

TOTAL EQUITY 1,127,218 1,199,017

The Accompanying Notes Form Part Of These Financial Statements26

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STATEMENT OF CASH FLOWS


Notes 2019 2018$ $

CASH FLOWS FROM OPERATING ACTIVITIESCash Receipts from Customers and Donors 2,649,873 1,994,423 Interest Received 8,729 7,706 Cash Payments to Suppliers and Employees ( 2,530,411 ) ( 1,552,754 )

NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES 10

128,191 449,375

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from the Sale of Investments 302,652 44,043 Payments for Property, Plant and Equipment ( 780,504 ) ( 111,518 ) Payments for Sculptures Collection ( 168,000 ) ( 93,182 )

NET CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES ( 645,852 ) ( 160,657 )

NET (DECREASE) / INCREASE IN CASH HELD ( 517,661 ) 288,718

CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL YEAR 1,501,544 1,212,826

CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 10 983,883 1,501,544


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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Directors have prepared the financial statements on the basis that the Company is a non-reporting entity because there are no users who are dependent on its general-purpose financial statements. These financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the Australian Charities and Not for Profits Commission Act 2012. The Company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Basis for Preparation The financial statements have been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Australian Charities and Not for Profits Commission Act 2012 and the significant accounting policies disclosed below, which the Directors have determined are appropriate to meet the needs of members. Such accounting policies are consistent with those of previous periods unless stated otherwise. The report has been prepared in using the following applicable Australian Accounting Standards: AASB 101: Presentation of Financial Statements; AASB 107: Statement of Cash Flows; AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors; AASB 1048: Interpretation of Standards; AASB 1054: Australian Additional Disclosures. No other applicable Accounting Standards, Australian Accounting Interpretations or other authoritative pronouncements of the Australian Accounting Standards Board have been applied. Reporting Basis and Conventions The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. The amounts presented in the financial statements have been rounded to the nearest dollar. Revenue and other income Grant revenue Grant revenue is recognised in the statement of profit or loss and other comprehensive income / (loss) when the Company obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the Company and the amount of the grant can be measured reliably.

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FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue and other income (Continued) Grant revenue (Continued) If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied. When grant revenue is received whereby the Company incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt. Donations and bequests Donations are recognised as revenue when the intention of the donation has been expensed. The donation is recognised as a liability until the “intent” is delivered. Bequests are recognised as revenue when received. Interest revenue Interest revenue is recognised as it accrues using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established Contract Services revenue Revenue from services rendered is recognised in profit or loss upon the delivery of service to the customers. All revenue is stated net of the amount of goods and services tax (GST). Income Tax No provision for income tax has been raised as the Company is exempt from income tax under Div 50 of the Income Tax Assessment Act 1997. Inventories Inventories are measured at the lower of cost and current replacement cost. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks and other short-term highly liquid investments with original maturities of three months or less. 29

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FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Trade and Other Receivables Trade and other receivables include amounts due from donors and any outstanding grant receipts. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. Trade and Other Payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Company during the reporting period, which remain unpaid. The balance is recognised as a current liability with the amount being normally paid within 30 days of recognition of the liability. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from, or payable to, the ATO, are presented as operating cash flows included in receipts from customers or payments to suppliers. Employee Entitlements Short-term employee benefits Provision is made for the Company’s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The Company’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of accounts payable and other payables in the statement of financial position. Contributions are made by the Company to an employee superannuation fund and are charged as expenses when incurred.

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FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property, Plant and Equipment Property, plant and equipment are brought to account at cost or at independent or Directors’ valuation, less, where applicable, any accumulated depreciation or amortisation and any impairment in value. The carrying amount of property, plant and equipment is reviewed annually by Directors’ to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows, which will be received from the assets employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts. The carrying values of plant and equipment are also reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any impairment exists, the assets are written down to their recoverable amount and the loss recognised in the income statement. The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, are depreciated over their useful lives commencing from the time the assets held ready for use. Sculptures Collection – At Valuation Sculptures are recognised at cost when purchased. Sculptures that have been contributed at no cost, or for nominal cost, are initially recognised and measured at the fair value of the Sculpture at the date it is acquired. Sculptures are revalued based on periodic, but at least triennial, valuations by an external independent valuer. In periods when the Sculptures are not subject to an independent valuation, the Directors’ conduct Directors’ valuations to ensure the carrying amount for the Sculptures is not materially different to the fair value. Increases in the carrying amount arising on revaluation of Sculptures are recognised in other comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of assets shall be recognised in other comprehensive income under the heading of revaluation surplus. All other decreases are recognised in profit or loss.

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FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Investments Investments are held at market value and are classified as non-current assets. Any unrealised gains and losses for the investments are recognised as other comprehensive income / (loss). Realised gains and losses are then reversed from other comprehensive income / (loss) and recorded in the statement of comprehensive income / (loss) in the period in which they occur. Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

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2019 2018$ $

NOTE 2 - OPERATING PROFIT / (LOSS)(a) Operating Profit / (Loss) before Income Tax has been determined after:Audit Fees 12,500 10,940 Provision for Annual Leave 1,739 ( 3,978 ) Provision for Long Service Leave ( 11,481 ) 11,782

(b) Operating Revenue

Contract Services 112,045 210,000 Grants - Creative Victoria 115,500 115,500 - Frankston City Council 50,000 50,000 - Gordon Darling 10,818 - - Specific 5,000 - Rent 26,608 26,871 Memberships/Friends 36,848 15,936 Interest Received 8,729 7,706 Shop and Café Income 808,535 711,048 Donations & Fundraising 1,508,878 603,286 Investment Income 22,848 38,713 Profit on Sale Investments - - Loss on Sale investments 16,389 ( 5,443 ) Other Income 23,120 16,786

2,745,318 1,790,403

NOTE 3 - CASH AND CASH EQUIVALENTSCash at Bank 983,033 1,500,694 Petty Cash & Other Cash Floats 850 850

983,883 1,501,544

NOTE 4 - OTHER ASSETSCurrentStock in Trade - at cost 21,340 23,694 Franking Credit Refunds 4,969 10,340

26,309 34,034

Included in Operating Profit / (Loss) are the following items of Operating Revenue:

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2019 2018$ $

NOTE 5 - SCULPTURES COLLECTION (AT VALUATION)Sculptures Collection (at Valuation) 168,000 -

168,000 -

NOTE 6 - PROPERTY, PLANT AND EQUIPMENTPlant and Equipment 57,032 57,032 Less Accumulated Depreciation ( 57,032 ) ( 57,032 ) Education Pavilion - 111,518 Less Accumulated Depreciation - -

- 111,518

NOTE 7 - TRADE AND OTHER PAYABLESCurrentIncome in Advance 522,933 959,023 Trade Creditors and Accruals 133,431 82,425

656,364 1,041,448

NOTE 8 - EMPLOYEE ENTITLEMENTSShort TermAnnual Leave 58,119 56,380 Long Service Leave 27,327 38,808

85,446 95,188 Long TermLong Service Leave - -

- -

NOTE 9 - FINANCIAL ASSET RESERVE

The Financial Assets Reserve records the unrealised gains and losses on Investments.

Financial Assets ReserveOpening Balance 16,433 19,325 Movement in Unrealised Gain / (Loss) on Investments ( 30,566 ) ( 2,892 )

( 14,133 ) 16,433

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2019 2018$ $

NOTE 10 - NOTES TO THE STATEMENT OF CASH FLOWS

Reconciliation of Cash

Cash at Bank, Petty Cash and other Cash Floats 983,883 1,501,544

Operating Profit / (Loss) after Income Tax ( 41,233 ) ( 570,705 )

Non Cash Flows in Operating Profit / (Loss):

Donation of Sculptures 892,022 568,182 Changes in Assets & Liabilities:(Increase)/Decrease in Other Assets 7,725 17,215 (Increase)/Decrease in Trade and Other Receivables ( 335,497 ) 49,663 Increase/(Decrease) in Employee Entitlements ( 9,742 ) 7,805 Increase/(Decrease) in Trade and Other Payables ( 385,084 ) 377,215 Net Cash Provided by Operating Activities 128,191 449,375

NOTE 11 - RELATED PARTY TRANSACTIONS

Directors

NOTE 12 - CONTINGENT LIABILITIESNo contingent liabilities exist as at 30 June 2019, or at 30 June 2018.

For the purposes of this Statement of Cash Flows, cash includes cash on hand and at call deposits withbanks of financial institutions, net of bank overdrafts and investments in money market instrumentsmaturing within less than three months. Cash at the end of the financial year as shown in the Statement ofCash Flows is reconciled to the related items in the Statement of Financial Position as follows:

Reconciliation of Net Cash provided by Operating Activities to Operating Profit / (Loss) after Income Tax

The names of Directors who have held office during the financial year are set out in the Directors Report.

There were no transactions during the year that resulted in income received or due and receivable byDirectors from the Company. The Directors were not remunerated during the year.

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DIRECTORS’ DECLARATION

In accordance with a resolution of the Directors of McClelland Sculpture Ltd, the Directors declare that:

1. The financial statements and notes, as set out on pages 1 to 18, are in accordance with the Australian Charities and Not for Profits Commission Act 2012 and: a. comply with the Australian Accounting Standards applicable to the Company, the

ACNC Regulations 2012 and any other mandatory professional reporting requirements; and

b. give a true and fair view of the financial position of the Company as at 30 June

2019 and its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements.

2. In the Directors’ opinion, there are reasonable grounds to believe that the Company will

be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors. Director ………………………… Director ………………………… Camilla Graves Mike Kendall Dated this 9th day of September 2019

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Page 20 of 23

McCLELLAND SCULPTURE LTD INDEPENDENT AUDIT REPORT

ACN 082 448 262

Report on the Audit of the Financial Report Opinion We have audited the financial report of McClelland Sculpture Ltd, which comprises the Statement of Financial Position as at 30 June 2019, the Statement of Profit or Loss, Statement of Other Comprehensive Income / (Loss), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Directors’ declaration. In our opinion, the accompanying financial report gives a true and fair view of the financial position of McClelland Sculpture Ltd as at 30 June 2019 and of its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements and the requirements Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter – Basis of Accounting We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the Directors’ financial reporting responsibilities under the Australian Charities and Not-for-profits Commission Act 2012. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

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McCLELLAND SCULPTURE LTD INDEPENDENT AUDIT REPORT (CONTINUED)

ACN 082 448 262

Information Other than the Financial Report and Auditor’s Report Thereon The Directors of the Company are responsible for the other information. The other information comprises the information included in the Company’s annual report for the year ended 30 June 2019, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. The Directors of the Company are responsible for overseeing the Company’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

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ACN 082 448 262

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the Directors. • Conclude on the appropriateness of the Directors’ use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including

the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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ACN 082 448 262 Dated at Frankston on the 9th of September 2019 SHEPARD WEBSTER & O’NEILL AUDIT PTY LTD Certified Practising Accountant Authorised Audit Company No 415478 31 Beach Street Frankston 3199, PO Box 309 Frankston Victoria 3199 Telephone (03) 9781 2633 – Fax (03) 9781 3073 Email – [email protected] DAVID A SZEPFALUSY DIRECTOR

40

THE ESTATE OF ANNIE MAY McCLELLAND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JUNE 2019

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THE ESTATE OF ANNIE MAY McCLELLAND (HARRY McCLELLAND ART GALLERY & CULTURAL HALL)

TRUSTEES REPORT

The Trustees have pleasure in submitting their report and the financial statements of the Trust for the year ended 30 June 2019. Trustees The Trustees in office during the year and to the date of this report are: Susie Hamson (Chair) John Calvert-Jones Julie Kantor Lisa Roet Stephen Charles Mike Kendall (Treasurer) Camilla Graves (Deputy Chair) Jonathan Clements John Young Colin Simpson Principal Activities The principal activity of the Trust is that of providing funding from investments to operate an Art Gallery and Cultural Hall, and holding Property and Collection assets utilised by the Art Gallery and Cultural Hall. Operating Results The trading surplus of the Trust before Donations from McClelland Sculpture Ltd amounted to $592,034 (2018: trading deficit $58,630). The trading surplus of the Trust after Donations from McClelland Sculpture Ltd amounted to $1,484,056 (2018: trading surplus $509,552). Review of Operations During the year, the Trust received a significant donation of Art and Sculpture Collection items from McClelland Sculpture Ltd, totalling $892,022 (2018: $568,182). The Estate of A.M. McClelland is the owner of the McClelland Group Art and Sculpture Collection. Other than the matters described above, it is the opinion of the Trustees that the results of the Trust’s operations during the year were not substantially affected by any other item, transaction or event of a material and unusual nature. Trustees Benefits No Trustee of the Trust has received or become entitled to receive a benefit by reason of a contract made by the Trust or a related corporation with a Trustee or with a firm of which he or she is a member, or with a company in which he or she has a substantial financial interest. Likely Developments The likely developments in the operation of the Trust and the expected results of those operations in financial years subsequent to the year ended 30 June 2019 are a continuation of those activities set out above. Auditor’s Declaration A copy of the auditor’s independence declaration as required under section 60-40 of the Australian Charities and Not for Profits Commission Act 2012 can be found on the page following this report. Signed in accordance with a resolution of the Trustees. Trustee ………………………… Trustee ………………………… Camilla Graves Mike Kendall Dated this 9th day of September 2019

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Page 3 of 21


AUDITOR’S INDEPENDENCE DECLARATION To The Estate of Annie May McClelland, In accordance with the requirements of section 60-40 of the Australian Charities and Not for Profits Commission Act 2012, as lead auditor for the audit of The Estate of Annie May McClelland for the year ended 30 June 2019, we declare that, to the best of our knowledge and belief, there have been:

i) No contraventions of the auditor independence requirements of the Australian Charities and Not for Profits Commission Act 2012 in relation to the audit, and;

ii) No contraventions of any applicable code of professional conduct in relation to the audit.


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TRUSTEES DECLARATION

In accordance with a resolution of the Trustees of The Estate of Annie May McClelland, the Trustees declare that:

1. The financial statements and notes are in accordance with the Australian Charities and Not for Profits Commission Act 2012 and: a. comply with the Australian Accounting Standards applicable to the Trust, the

ACNC Regulations 2012 and any other mandatory professional reporting requirements; and

b. give a true and fair view of the financial position of the Trust as at 30 June 2019

and its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements.

2. In the Trustees opinion, there are reasonable grounds to believe that the Trust will be

able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Trustees. Trustee ………………………… Trustee ………………………… Camilla Graves Mike Kendall Dated this 9th day of September 2019

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STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 30 JUNE 2019 Notes 2019 2018

$ $CONTINUING OPERATIONS

INCOMEBequests and Bequest Investment Income 342,639 49,988 Donations from McClelland Sculpture Ltd 892,022 568,182 Grants Received 100,000 100,000 Dividends and Trust Distributions 98,809 128,156 Interest 11,164 6,208 Imputation Credits Refundable 37,213 50,859 Donations - Monetary - 10,000 Profit on the Disposal of Investments 334,107 44,054 Other Income 12,724 20,694 TOTAL INCOME 1,828,678 978,141

EXPENDITUREAccountancy Fees 5,200 7,650 Air Conditioning Expenses 6,250 25,000 Buildings & Grounds Maintenance 3,149 4,363 Conservation and Valuation Expenses 11,436 4,095 Contract Fee 112,045 210,000 Depreciation 147,126 143,104 Fire & Security Monitoring 1,432 9,217 Insurance 45,746 57,923 Investment Management Fees & Brokerage 9,229 5,531 Freight, Storage, Installation & Signage of Permanent Collection

1,275 1,612

Sundry Expenses 1,734 94 TOTAL EXPENDITURE 344,622 468,589

NET TRADING SURPLUS/(DEFICIT) 1,484,056 509,552

The Accompanying Notes Form Part Of These Financial Statements

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STATEMENT OF OTHER COMPREHENSIVE INCOME


$ $

NET TRADING SURPLUS/(DEFICIT) 1,484,056 509,552

OTHER COMPREHENSIVE INCOME

- -

Unrealised Gain / (Loss) on Investments ( 386,548 ) 9,789

TOTAL COMPREHENSIVE INCOME 1,097,508 519,341

Items that will not be reclassified subsequently to profit or loss:

Items that may be reclassified subsequently to profit or loss:


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STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2019 Notes 2019 2018

$ $

CURRENT ASSETSCash and Cash Equivalents 570,658 564,766 Other Assets 2 118,994 52,105 TOTAL CURRENT ASSETS 689,652 616,871

NON CURRENT ASSETSInvestments 2,094,087 1,968,861 Property, Plant and Equipment 3 10,973,935 10,209,132 Collection (at Valuation) 27,639,109 27,201,811 TOTAL NON CURRENT ASSETS 40,707,131 39,379,804

TOTAL ASSETS 41,396,783 39,996,675

CURRENT LIABILITIESTrade and Other Payables 386,911 84,311 TOTAL CURRENT LIABILITIES 386,911 84,311

TOTAL LIABILITIES 386,911 84,311

NET ASSETS 41,009,872 39,912,364

EQUITYAccumulated Funds 20,845,511 19,361,455 Land & Buildings Revaluation Reserve 4 4,705,199 4,705,199 Collection Revaluation Reserve 5 15,448,515 15,448,515 Financial Asset Revaluation Reserve 6 10,647 397,195

TOTAL EQUITY 41,009,872 39,912,364


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STATEMENT OF CHANGES IN EQUITY


$ $

CHANGES IN ACCUMULATED FUNDSOpening Balance 19,361,455 18,851,903 Surplus / (Deficit) 1,484,056 509,552 Ending Balance 20,845,511 19,361,455

Opening Balance 4,705,199 4,705,199 Increase / (Decrease) in Land & Buildings Valuation - - Ending Balance 4,705,199 4,705,199

Opening Balance 15,448,515 15,448,515 Increase / (Decrease) in Collection Valuation - - Ending Balance 15,448,515 15,448,515

Opening Balance 397,195 544,090 Unrealised Gain / (Loss) on Investments ( 386,548 ) ( 146,895 ) Ending Balance 10,647 397,195

TOTAL EQUITY 41,009,872 39,912,364

CHANGES IN THE LAND & BUILDINGS REVALUATION RESERVE

CHANGES IN THE FINANCIAL ASSET REVALUATION RESERVE

CHANGES IN THE COLLECTION REVALUATION RESERVE


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STATEMENT OF CASH FLOWS


$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Receipts from Customers and Donors 431,689 423,292 Interest Received 11,164 6,208 Cash Payments to Suppliers and Employees ( 127,014 ) ( 390,861 )

NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES 7 315,839 38,639

CASH FLOWS FROM INVESTING ACTIVITIES

Net Proceeds from the Sale / Purchase of Investments ( 177,667 ) 348,632 Payments for Property, Plant and Equipment ( 19,907 ) ( 60,868 ) Payments for Collection ( 112,373 ) -

NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES ( 309,947 ) 287,764

NET INCREASE/(DECREASE) IN CASH HELD 5,892 326,403

CASH AT BEGINNING OF FINANCIAL YEAR 564,766 238,363

CASH AT END OF FINANCIAL YEAR 7 570,658 564,766


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FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Trustees have prepared the financial statements on the basis that the Trust is a non-reporting entity because there are no users who are dependent on its general-purpose financial statements. These financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the Australian Charities and Not for Profits Commission Act 2012. The Trust is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Basis for Preparation The financial statements have been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Australian Charities and Not for Profits Commission Act 2012 and the significant accounting policies disclosed below, which the Trustees have determined are appropriate to meet the needs of members. Such accounting policies are consistent with those of previous periods unless stated otherwise. The report has been prepared in using the following applicable Australian Accounting Standards: AASB 101: Presentation of Financial Statements; AASB 107: Statement of Cash Flows; AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors; AASB 1048: Interpretation of Standards; AASB 1054: Australian Additional Disclosures. No other applicable Accounting Standards, Australian Accounting Interpretations or other authoritative pronouncements of the Australian Accounting Standards Board have been applied. Reporting Basis and Conventions The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise. The amounts presented in the financial statements have been rounded to the nearest dollar. (a) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks and other short-term highly liquid investments with original maturities of three months or less.

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FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (b) Property, Plant and Equipment Property, plant and equipment are brought to account at cost or at independent or Trustee’s valuation, less, where applicable, any accumulated depreciation or amortisation and any impairment in value. The carrying amount of property, plant and equipment is reviewed annually by Trustee’s to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows, which will be received from the assets employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts. The carrying values of plant and equipment are also reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any impairment exists, the assets are written down to their recoverable amount and the loss recognised in the income statement. The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, are depreciated over their useful lives commencing from the time the assets held ready for use. Depreciation The depreciable amount of all property, plant and equipment is depreciated on a straight-line basis over the asset’s useful life commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are Class of Fixed Asset Depreciation Rate Buildings Improvements 10% Furniture and Fixtures 15% Plant and Equipment 15% The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each annual reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of profit or loss and other comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred back and recognised through other comprehensive income.

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FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (c) Artwork and Sculptures Collection – At Valuation Artwork and sculptures are recognised at cost when purchased. Artwork and sculptures that have been contributed at no cost, or for nominal cost, are initially recognised and measured at the fair value at the date it is acquired. Artwork and sculptures are revalued based on periodic, but at least triennial, valuations by an external independent valuer. In periods when the artwork and sculptures are not subject to an independent valuation, the Trustees’ conduct Trustees’ valuations to ensure the carrying amount for the artwork and sculptures is not materially different to the fair value. Increases in the carrying amount arising on revaluation of artwork and sculptures are recognised in other comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of assets shall be recognised in other comprehensive income under the heading of revaluation surplus. All other decreases are recognised in profit or loss. (d) Investments Investments are held at market value and are classified as non-current assets. Any unrealised gains and losses for the investments are recognised as other comprehensive income / (loss). Realised gains and losses are then reversed from other comprehensive income / (loss) and recorded in the statement of comprehensive income / (loss) in the period in which they occur. (e) Trade and Other Receivables

Trade and other receivables include amounts due from donors and any outstanding grant receipts. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. (f) Trade and Other Payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Trust during the reporting period, which remain unpaid. The balance is recognised as a current liability with the amount being normally paid within 30 days of recognition of the liability.

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FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (g) Income Tax The Trust has been exempted from the payment of income tax. (h) Contracts For Capital Expenditure The Trust had not committed to any capital expenditure at balance date, nor the prior balance date. (i) Fees to Trustee The Trust has not yet drawn and not accounted for as a liability, any fees to the Trustees of the Trust. (j) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

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2019 2018$ $

NOTE 2 - OTHER ASSETS

Franking Credit Refunds 88,000 50,847 Trade Debtors 15,293 - GST Clearing 15,701 1,258 Total Other Assets 118,994 52,105

NOTE 3 - PROPERTY, PLANT AND EQUIPMENT

Land (at Valuation) 9,200,000 9,200,000 Total 9,200,000 9,200,000

Buildings (at Valuation) 1,100,000 1,100,000 Less Accumulated Depreciation - Buildings ( 330,000) ( 220,000) Buildings Improvements (at Cost) 936,944 46,869 Less Accumulated Depreciation - Buildings Improvements ( 9,538) ( 4,850) Total 1,697,406 922,019

Furniture and Fixtures (at Cost) 183,532 161,679 Less Accumulated Depreciation - Furniture & Fittings ( 107,003) ( 74,566) Total 76,529 87,113

Total Property, Plant and Equipment 10,973,935 10,209,132

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NOTE 3: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)Movement in the carrying amount of Property, Plant and Equipment:

LandBuildings and

Buildings Improvements

Furniture and Fixtures Total

$ $ $ $

Carrying Amount at 1 July 2017 9,200,000 1,013,565 77,803 10,291,368

Additions at Cost - 22,216 38,652 60,868 Depreciation Expense - ( 113,762 ) ( 29,342 ) ( 143,104 ) Carrying Amount at 30 June 2018 9,200,000 922,019 87,113 10,209,132

Additions at Cost - 890,075 21,854 911,929 Depreciation Expense - ( 114,688 ) ( 32,438 ) ( 147,126 ) Carrying Amount at 30 June 2019 9,200,000 1,697,406 76,529 10,973,935

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2019 2018$ $

Opening Balance 4,705,199 4,705,199 Movement in Revaluation Reserve - - Closing Balance 4,705,199 4,705,199

Opening Balance 15,448,515 15,448,515 Movement in Revaluation Reserve - - Closing Balance 15,448,515 15,448,515

NOTE 6 - FINANCIAL ASSET RESERVE

Opening Balance 397,195 544,090 Unrealised Gain on Investments ( 386,548 ) ( 146,895 ) Closing Balance 10,647 397,195

The Financial Assets Reserve records the unrealised gains and losses on Investments.

NOTE 4 - LAND & BUILDINGS REVALUATION RESERVE

NOTE 5 - COLLECTION REVALUATION RESERVE

A revaluation of the Trust 's Land and Buildings took place in 2016 by Charter Keck Cramer. TheTrustees adopted this valuation resulting in a revaluation increment of $4,705,199, which has beentaken up in the financial statements as an increase in the Land & Buildings Revaluation Reserve.The movements in valuation were recorded through Other Comprehensive Income and allocatedagainst this reserve.

A revaluation of the Trust 's Collection took place in 2016 financial year by an independent valuer.The Trustees adopted this valuation resulting in a revaluation increment of $15,448,515, which hasbeen taken up in the financial statements as an increase in the Collection Revaluation Reserve. Themovements in valuation were recorded through Other Comprehensive Income and allocated againstthis reserve.

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2019 2018$ $

NOTE 7 - NOTES TO THE STATEMENT OF CASH FLOWS

Reconciliation of Cash

Cash at Bank, Petty Cash and other Cash Floats 570,658 564,766

Operating Profit / (Loss) after Income Tax 1,484,056 509,552

Non Cash Flows in Operating Profit / (Loss):Profit on the Disposal of Investments ( 334,107 ) ( 39,946 ) Depreciation 147,126 143,104 Donations from Cultural Gifts Program ( 324,925 ) ( 29,999 ) Donations from McClelland Sculpture Ltd ( 892,022 ) ( 568,182 )

Changes in Assets & Liabilities:(Increase)/Decrease in Other Assets ( 66,889 ) 15,335 Increase/(Decrease) in Trade and Other Payables 302,600 18,775 Increase/(Decrease) in Grants in Advance - ( 10,000 ) Net Cash Provided by Operating Activities 315,839 38,639

Reconciliation of Net Cash provided by Operating Activities to Operating Profit / (Loss) after Income Tax

For the purposes of this Statement of Cash Flows, cash includes cash on hand and at call depositswith banks of financial institutions, net of bank overdrafts and investments in money marketinstruments maturing within less than three months. Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Positionas follows:

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INDEPENDENT AUDIT REPORT Report on the Audit of the Financial Report Opinion We have audited the financial report of The Estate of Annie May McClelland, which comprises the Statement of Financial Position as at 30 June 2019, the Statement of Profit or Loss, Statement of Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Trustees’ Report. In our opinion, the accompanying financial report gives a true and fair view of the financial position of The Estate of Annie May McClelland as at 30 June 2019 and of its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements and the requirements Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Trust in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter – Basis of Accounting We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the Trustees’ financial reporting responsibilities under the Australian Charities and Not-for-profits Commission Act 2012. As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

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INDEPENDENT AUDIT REPORT Information Other than the Financial Report and Auditor’s Report Thereon The Trustees of the Trust are responsible for the other information. The other information comprises the information included in the Trust’s annual report for the year ended 30 June 2019, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Trustees for the Financial Report The Trustees of the Trust are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the Trustees determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Trustees are responsible for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so. The Trustees of the Trust are responsible for overseeing the Trust’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

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INDEPENDENT AUDIT REPORT As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the Trustees. • Conclude on the appropriateness of the Trustees’ use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Trust’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Trust to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including

the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Trustees regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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INDEPENDENT AUDIT REPORT


Backcover:PiaVanGelder,Psychic Synth II 2019, installation view, McClelland. Photo Christian Capurro.61

mcclelland sculpture park+gallery annual report 2018-19...is a place for reflection, that celebrates...

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