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 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 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.
> THE RESULTS
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.