2016-09-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                              6 SEPTEMBER 2016


Financial operations for the six-month opening period have been sound with a small net surplus.

                                           Budget Jan – Jun      Actuals Jan – Jun         Variance
                                                       2016                   2016
Revenue (inclusive of Council grant)              79,369.70              80,641.15         -1,271.45
Expenses                                          67,227.20              66,210.38          1,016.82
Surplus                                           12,142.50              14,430.77          2,288.27

Opportunities to attract revenue have been explored and, as anticipated, have eventuated
differently from the forecast budget. The original budget forecast $5,000 revenue from
sponsorship and $2,520 revenue in rental from Sunshine Coast Community College which have
been unrealised. The Sunshine Coast Community College closed down at the beginning of the
year and were unable to commit to their venue hiring arrangement. The management committee
determined that a brand and reputation needed to be established before sponsorship could be
sought in this difficult market. Commission on artist’s sales has been well below original
expectations. However, this deficit has been offset by the CFG pursuing other income initiatives
including venue hire fees, strong exhibition bookings, a membership drive and obtaining an
RADF grant.

The CFG has demonstrated tight fiscal control during this establishment phase. Expenditure has
been limited to essential services and contracts and therefore it has been kept slightly below
budget forecasts. Contract staff costs have been higher than anticipated to ensure consistency of
opening hours and meet venue hire commitments. The CFG have worked diligently to build up
volunteers to supplement paid staffing.

The following governance aspects have been implemented:
 The CFG has gained permission from the Office of Fair Trading to change their financial year
   end from 28 February to 30 June to bring the audited accounts in line with the Council
   financial year to particularly assist with acquitting grant funds.
 The combined income from the joint CFG operations took them over the GST threshold. The
   CFG is now registered for GST and this been applied from 1 July 2016.

4.    Forecast operations July – December 2016

Following on from a positive first six months, the CFG are anticipating a strong second six
months of the trial. Forward bookings for exhibitions are very healthy with all galleries booked
through to the end of December and all exhibition hire fees paid. Provisional bookings are also
being held through to June 2017 pending a decision on the CFG’s longer term operation of the
facility.

Marketing strategies are being developed to increase awareness and maximise exposure in the
local press and other media. A sponsorship package is being drawn up and efforts to attract
sponsorship will commence shortly.

Initiatives planned for the six months July – December 2016 include:
 Expanding the workshop program
 Relocating the staff office upstairs
 Creating an artists’ retail outlet in the original office space
 Sourcing additional grant funding
 Promoting the Butter Factory as a venue for hire

The CFG have prepared a draft Business Plan which builds upon the work undertaken during the
transition period. It will be complete once there is more robust financial data available through the
second six months of the trial.



                                                                                      Page 31 of 47