Costing the Vision for Carriageworks
THE CONTEXT
The centre for the contemporary arts at CarriageWorks was completed and opened in January 2007. Funding was provided based on a business case that assumed no ongoing cost to Government. As commercial uptake on the site was evolving, Arts NSW (now Create NSW) required more information to determine the appropriate interim subsidies for the organisation.
THE BRIEF
Positive Solutions was engaged to undertake an operational and cost analysis of CarriageWorks, focusing on clarification of the costs of two models: operating the arts centre as a receiving venue only, and as an active arts development entity.
OUR APPROACH
Positive Solutions reviewed CarriageWorks’ business plan, annual accounts and financial data. We held in-depth interviews with the CEO to clarify financial data and examine areas of risk and opportunity, in addition to interviews with the management team. Cost, revenue and subsidy data was collated from a number of theatres and arts centres in Australia to provide benchmark comparison, before the assembly of an amended 2010-2013 financial forecast based on the income and expenditure probabilities.
THE RESULT
Positive Solutions presented an informed cost-benefit analysis to Arts NSW with a number of risks, opportunities and recommendations outlined for CarriageWorks’ future direction. This included an overview of the industry context, commentary on their 2008 financial report, suggested changes to forecasted financials up to 2013, and suggested ongoing subsidy amounts from government based on benchmark evidence.
