A Year in Review 2002 Annual Report

engaging with contemporary art and contemporary ideas

Facing page: Museum of Contemporary Art

Photo: Cameron Bloom

Front cover (from top): Max Pam, Asiatic Iconic

Decalogue, (detail) 2001.Installation view, Meridian: Focus on

Contemporary Australian Art, MCA Sydney 2002.

Jurek Wybraniec, Untitled (Target)(detail) 1996/2002.

Installation view, Meridian: Focus onContemporary Australian Art,

MCA Sydney 2002.

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A Year in Review 2002 Annual Report

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Contents

Introduction

Chairman’s Message

Director’s Message

MCA Highlights

Exhibitions

Education

Supporters

Corporate Sponsorship

Visitor Statistics 2000-2002

Outward Loans from the MCA Collections

Board of Directors

Financial Statements

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The Museum of Contemporary Art is Australia's only museum dedicated to the exhibition and interpretation of work by contemporary Australian and internationalartists and engaging in discussion and debate on contemporary visual cultural issues.

Situated at West Circular Quay at the entrance to Sydney’s historic Rocks precinct,the MCA seeks to make contemporary art accessible for a broad spectrum of publicaudiences through a diverse range of exhibitions incorporating new and moretraditional media, stimulating and hands-on educational programs and special events.

The Museum of Contemporary Art gratefully acknowledges the ongoing funding and support of the NewSouth Wales Government and triennial grant funding from the Commonwealth Government through theAustralia Council, its arts funding and advisory body. The MCA was established by The University ofSydney through the J W Power Bequest, with the assistance of the New South Wales Government.

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When at the beginning of 2002 I accepted the role of MCA Chairman from longstanding MCA supporter and arts patron John Kaldor AM, the institution’s futureand long-term stability were secure. I am delighted that throughout the year thisstrong foundation has acted as a platform from which the Museum has delivered highquality exhibitions which cater to a broad and ever increasing audience. We havebrought to Australian audiences exhibitions which spark the imagination and challengeperceptions. We have also played an important role in taking some of the finest workbeing produced by living Australian artists to national and international audiencesthrough a deliberate regional and international touring strategy.

I would like to thank the NSW State Government, the NSW Ministry for the Arts andthe Premier of NSW, The Honourable Bob Carr MLA who continue to value and support the unique role the MCA plays in the cultural life of NSW. I would also liketo acknowledge the Sydney Harbour Foreshore Authority, with whom we are workingclosely to improve all visitor facilities and access to the MCA building. The Museumalso gratefully acknowledges the triennial grant funding it receives from theCommonwealth Government through the Australia Council, its arts funding and advisory body.

On behalf of the Museum I would like to thank the Board members: Matthew Howison,Lucy Turnbull, Julie Rrap, Peter Steigrad, Peter Thomas and Greg Woolley for thetime and effort they have contributed to the Museum.

At the end of my first year as Chairman I am pleased that the Museum has not onlymaintained its integral place within the cultural fabric of this country, but that it has continued to develop its role as Australia’s only institution dedicated to exhibiting, interpreting and collecting contemporary visual art.

My thanks go to the Staff, Executive and Director for their dedication to the Museum.

David CoeChairman

David Coe, MCA Chairman

Chairman’s Message

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2002 marked the beginning of a new era at the MCA. With secured governmentfunding and continued support from corporate sponsors, patrons, MCA Ambassadorsand Members, the Museum has continued to grow its already strong audience base.We have engaged in long-term strategic planning to develop exhibitions and programs of the highest standards.

The MCA plays a vital role in promoting the work of Australian artists. Our first showto open in 2002 was a solo exhibition of work by Iranian-born, Australian artistHossein Valamanesh. Tracing the Shadow: Hossein Valamanesh Recent Workspresented key works from the artist’s career, including a recreation of his 1981installation Earth work on the MCA’s Circular Quay forecourt.

With debate in the community circling in relation to stem-cell research and cloning,Patricia Piccinini’s exhibition, Call of the Wild, presented a timely perspective onthese very topical issues. We were delighted to hear mid-way through the exhibitionthat Piccinini had been selected by the Australia Council to represent Australia at the2003 Venice Biennale.

In December the Museum opened two more solo exhibitions of work by Australianartists – Dorothy Napangardi and Ron Mueck. As part of the 2003 Sydney Festival’sVisual Arts program, Dancing up Country: The art of Dorothy Napangardi was thefirst major solo exhibition by Napangardi – described as one of the most experimentalIndigenous painters of Central Australia. We were delighted to announce that AsiaLinkwill tour the exhibition to Vietnam and Malaysia in 2003.

Ron Mueck’s exhibition included new work created by the artist during his residencyas the fifth National Gallery’s Associate Artist in London. We were fortunate enoughto show these sculptures before the National Gallery exhibition later in 2003. It wasalso the first time Mueck’s work, acclaimed throughout Europe and the United States,was seen in Australia and justifiably caught the attention of a critical and generalaudience alike. Over 16,000 visitors flocked to the exhibition in its first 12 days.

Our series of exhibitions positioning the work of an Australian artist alongside that ofan international peer continued in 2002 in associated with the 2002 Sydney GayGames and Cultural Festival. This thought provoking exhibition brought together thework of Australian-born, London-based artist Mathew Jones and Glasgow-basedartist Simon Starling.

Primavera 2002, the MCA’s annual exhibition of young Australian artists, brought theworlds of underground street culture and pop-art to the gallery. Curated by David

Elizabeth Ann Macgregor, MCA Director

Director’s Message

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Broker, Deputy Director at the Institute of Modern Art in Brisbane, the exhibition presented work by nine artists from across Australia.

Our Artists Advisory Group continued to provide a regular forum for an exchange ofviews and information in relation to issues of concern to artists and the artistic community. The group provides feedback on the MCA's exhibition, public and education programs, and makes suggestions on ways the MCA can be of service toAustralian artists. I would like to thank Brook Andrew, Pat Brassington, MatthysGerber, Scott Horscroft, Robert Owen, Jacky Redgate and Ann Thomson for theircommitment to the MCA. Emerging from these discussions was the concept behindthe first in what will be a recurring exhibition – MERIDIAN: Focus on contemporaryAustralian art, which opened at the Museum in November.

One of our biggest shows for 2002, ARTE POVERA: Art from Italy 1967 – 2002,stretched across more than half our gallery spaces. The Arte Povera artists haveinfluenced contemporary artistic practice like few others this century. To spend timewith these works was a must for anyone with even a slight interest in the developmentof contemporary art. It was also a thrill for the MCA staff to work with a number ofthese artists who travelled to Sydney for the installation.

The Museum aims to bring work by significant international artists to Australian audiencesand early in the year we presented a solo show by celebrated young AfricanAmerican painter Ellen Gallagher. Ellen Gallagher: Watery Ecstatic, organised by theInstitute of Contemporary Art in Boston, featured a selection of subtle, yet charged,paintings and drawings that probe issues of race, identity and abstraction.

The Biennale of Sydney provided a major showcase for 58 artists from 21 countriesat seven venues around Sydney. The MCA was a major venue, once again dedicatingall galleries to the exhibition. Artistic Director and practising artist Richard Graysonfocused on the fantastic and the fictional, the way artists explore and create worlds,futures, and characters that are hypothetical, fake, hallucinated and subversive. "It'sabout how the fantastic collides with the real world," explained Grayson, "aboutinvented systems and invented people, about countries and histories that may neverhave existed, about flying machines and strange museums, conspiracy theories, andnew ways of reading the 'normal'."

The MCA was also a major venue for a host of events run in association with theBiennale including public lectures by influential American artist Vito Acconci andVenezuelan-born author and social commentator Celeste Olalquiaga.

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Selected by Australian journalist, filmmaker and author John Pilger, Reporting theWorld presented an array of powerful images taken by leading photojournalists whohad worked with Pilger around the world. Given the international political developmentstaking place during 2002, the exhibition was a major talking point around Sydney,drawing new audiences to the Museum through the powerful issues addressed inthe exhibition. To coincide with this exhibition the MCA hosted the BORDERPANICsymposium which brought together philosophers, lawyers, artists and social scientiststo explore current debate on border issues in Australia. Organised by artists DeborahKelly and Zina Kaye in association with Performance Space, it provided an opportunityfor people interested in issues of national borders, migration, refugees and racism toexchange ideas for cultural action and change.

Throughout the year the Museum worked with a number of international institutionsincluding the Institute of Contemporary Art, Boston, USA, on Ellen Gallagher:Watery Ecstatic; Barbican Art, London, UK, on Reporting the World: John Pilger’sGreat Eyewitness Photography; The Castello di Rivoli Museum of Contemporary Art,Turin, Italy, on Arte Povera: Art from Italy 1967 - 2002; and The Fabric Workshop andMuseum, Philadelphia, USA, on an exhibition of work from its extensive collection.

In 2002 our traffic figures continued to soar. We enjoyed a further 26% increase ingallery visitors and through extensive touring exhibition reached an ever expandingaudience. MCA Unpacked continued its tour of regional galleries and museums, travelling to Orange, Grafton, Port Macquarie, Manning and Caloundra, while PeterRobertson’s Sharpies toured to 200 Gertrude Street, Melbourne. The Native Born,our exhibition of Aboriginal art from Ramingining, Arnhem Land, toured internationallyto the Reina Sofia National Museum of Contemporary Art in Madrid as part of ARCOand to Pinacoteca do Estado de São Paulo, Sao Paulo, Brazil, before opening at TheAsia Society and Museum in New York, USA. In association with the New York legof the tour, the MCA took the opportunity to launch its International Ambassadors’Program which aims to build a strong international profile for the MCA and its activitiesin North America. Over 150 invited guests were welcomed by Ken Allen, theAustralian Consul in New York. Guests of honour at the event included long standingMCA patron Ann Lewis and artist Tracey Moffatt.

Research conducted throughout the year indicated that our audience continued todiversify with increases in visitors from greater metropolitan Sydney, in particularwestern Sydney, and regional New South Wales. We maintained a balance of male(48%) and female (52%) visitors, and continue to receive new visitors to theMuseum with an average of 28% first time visitors in 2002. We were delighted thata recent survey found 46% of visitors found their MCA experience exceeded all

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expectations. Thanks to our visitor research sponsor Stollznow Research for theirongoing assistance in conducting this important evaluation.

Education is at the core of the MCA’s activities and 2002 saw attendances for publicprograms increase by over 80% to 7,346. Numbers of booked group visitors alsorose from 9,117 (2001) to 12,716 (2002). The MCA’s commitment to work closelywith artists was reflected in the significant contribution made by artists in public programming, with artists directly participating in over 59% of all programs presented.

Leading sponsor Telstra entered its third year of underwriting free admission to the Museum, as well as launching a pilot series of on-line chats with artists. We weredelighted that Telstra and the MCA were awarded the Australia Business Arts Foundation 2002 ANZ Community Award. Bimbadgen Estate Wines and theMCA were Winners of the Arts Category in The Australian Financial ReviewMagazine 2002 National Sponsorship Awards. Well deserved recognition for thesevisionary organisations.

We launched a new communications initiative – a monthly electronic newsletter. Thisfree service allows us to inform an interested audience about our exhibitions andevents program on a regular basis.

I would like to take this opportunity to thank the Museum’s dedicated team ofVolunteer Guides, and a force of regular volunteers who staff and manage theLibrary, maintain artist files, research exhibition projects and assist with day-to-dayadministrative duties across the Museum. The MCA is extremely grateful to them allfor their committed hours of service in assisting the MCA.

Without the committed MCA staff, members of the MCA Board, artists and lenders,volunteers who have contributed hundreds of hours of service, and the thousands ofsupporters in the community, both individuals and corporations, we would not behere. I extend my heartfelt thanks and appreciation.

Elizabeth Ann MacgregorDirector

In 2002 our traffic figures continued to soar.We enjoyed a further26% increase in galleryvisitors and throughextensive touring exhibition reached an ever expanding audience.

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• Reflecting the diversity of programming the Museum enjoyed record crowds ofover 65,000 visitors to its Spring 2002 suite of exhibitions headlined by Arte Povera:Art from Italy 1967 – 2002.

• Ron Mueck: Sculpture opened in late December 2002 presenting previouslyunseen work created by the artist as part of the National Gallery Artist in ResidencyProgram in London.

• MERIDIAN: Focus on Contemporary Australian Art opened as the first in anongoing series of exhibitions, to be held every second year, of work by leadingAustralian artists.

• MCA Unpacked I, presenting work from the Museum’s collection, continued itshighly popular tour of galleries and museums to Orange, Grafton, Port Macquarie,Manning and Caloundra. During 2002 the exhibition was seen by over 10,000regional visitors.

• The Collex Primavera Acquisitive Art Award was established to support the careerof a previous exhibiting artist from the annual Primavera exhibition. The inauguralAward winning artist for 2002 was Primavera 2000 artist David Sequeria.

• The MCA’s international tour of The Native Born: Aboriginal Art from Raminginingexhibited at a further three venues in its extensive tour. From Reina Sofia in Madridto São Paulo, Brazil, and The Asia Society and Museum in New York, the exhibitionwas attended by over 90,000 visitors.

• The MCA enjoyed its highest ever annual gallery attendance with over 290,000 visitors. This growth reflects a 26% increase to the impressive statistics recordedin 2001.

• Attendances to public gallery programs increased by over 80% in 2002.

• Reflecting its international reputation the MCA was the only museum in Australiato be gifted the Leo Castelli artist print portfolio.

• Thanks to support by leading sponsor, Telstra, the MCA conducted the first in anon-going series of on-line chats with Australian artist Patricia Piccinini.

• The MCA’s fundraising event the Bella Dinner, held in 2002 at Quadrant EastCircular Quay, raised over $45,000 for the Museum’s education programs.

From top: Ron Mueck: Sculpture

Installation view.

L - R: Australian Consul General inNew York Ken Allen, artist Tracey

Moffatt, Elizabeth Ann Macgregor andMCA patron Ann Lewis at the launch

of the International AmbassadorsProgram, Asia Society Gallery and

Museum, New York.

Highlights 2002

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• The MCA launched its International Ambassadors Program with a gala event at theAsia Society Gallery and Museum in New York.

• A free monthly email newsletter, ARTeMATTERS, was launched.

• Telstra and the MCA were awarded the Australian Business Arts Foundation 2002ANZ Community Award.

• Bimbadgen Estate Wines and the MCA were announced winners of the ArtsCategory in The Australian Financial Review 2002 National Sponsorship Awards.

• MCA Director Elizabeth Ann Macgregor was selected as a New South WalesFinalist in the 2002 Telstra Business Woman of the Year Awards.

• The MCA Venues department continued to attract a number of high profile corporateevents including the X Media Lab and Conference; Macquarie Bank Melbourne CupDay events; Toyota National Skills Contest Gala Dinner; Westmead Children’sHospital Ball; Exhibition of Victorian Wine Makers; Miele Product Launch.

• Culinary Edge, the MCA Café caterers, completed renovations and restoration tothe American Express Foundation Hall and MCA Café.

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MCA Art School Exhibition8 January – 11 January 2002

Works by 15 secondary school students following a 4-day workshop, studio visits, discussions and debates.Supported by Malleson Stephen Jaques.

Tracing the Shadow: Hossein Valamanesh Recent Works15 February – 28 April 2002

Curator: Rachel Kent6-page colour visitor’s guideThis project was made possible through the generous support ofMCA Ambassadors with thanks to the Art Gallery of South AustraliaFree admission to Tracing the Shadow: Hossein Valamanesh was proudly sponsored by Telstra.

MATERIAL WORLD From Lichtenstein to Viola25 Years of The Fabric Workshop and Museum28 February – 28 April

Curator: Vivienne Webb35 artists6-page colour visitor’s guideSupported by Saville 2 Bond Street.Free admission to Material World. From Lichtenstein to Viola. 25 Years of the Fabric Workshop and Museum was proudly sponsored by Telstra.

Ellen Gallagher: Watery Ecstatic13 March – 1 May 2002

Curator: Jessica Morgan, The Institute of Contemporary Art, BostonEllen Gallagher: Watery Ecstatic was organized by The Institute of Contemporary Art, Boston.Free admission to Ellen Gallagher: Watery Ecstatic was proudly sponsored by Telstra.

Exhibitions

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From top:Hossein Valamanesh The Lover Circles His Own Heart 1993Collection of the artist© the artist

Material WorldMaria Fernanda Cardoso Installation viewPhoto: Greg Weight

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From top:Biennale of Sydney

Artist performance by Cang Xin

Patricia PiccininiProtein Lattice 1997

Installation view. Photo: Greg Weight

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BIENNALE OF SYDNEY 2002(The World May Be) Fantastic15 May – 28 July 2002

Curator: Richard Grayson, assisted by an international advisory panel of Susan Hiller, Janos Sugar and Ralph Rugoff58 artists - 27 artists (in MCA component of 2002 Biennale of Sydney)264-page colour catalogue published by Biennale of Sydney LtdSponsored by Transfield Pty Ltd; Tempo Services Ltd; the Visual Arts & Craft Board andAudience and Market Development Division of The Australia Council for the Arts.MCA Gallery wall colours supplied courtesy of Wattyl Paint.Free admission to MCA component of Biennale of Sydney 2002: (The World May Be) Fantastic was proudly sponsored by Telstra.

Reporting the World: John Pilger’s Great Eyewitness Photographers8 August – 6 October 2002

Selection by John PilgerMCA curatorial liaison: Russell Storer22 artists / photojournalists6-page colour visitor’s guide112-page catalogue published by 21 Publishing LtdAn exhibition organised and toured by Barbican Art, LondonSupported by the British Council.Free admission to Reporting the World: John Pilger’s Great EyewitnessPhotographers was proudly sponsored by Telstra.

PATRICIA PICCININICall of the Wild9 August – 29 September 2002

Curator: Rachel Kent60-page colour catalogueFree admission to PATRICIA PICCININI: Call of the Wild was proudly sponsored by Telstra.This exhibition was made possible through the generous support of MCA Ambassadors.

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ARTE POVERAArt from Italy 1967- 200223 August – 10 November 2002

Co-curators: Judith Blackall, Carolyn Christov-Bakargiev, and Ida Gianelli.11 artists144-page colour catalogue6-page colour visitor’s guideOrganised in association with Castello di Rivoli Museo d’Arte Contemporanea,Rivoli, Turin.Supported by Saville 2 Bond Street.Free admission to Arte Povera: Art from Italy 1967- 2002 was proudly sponsored by Telstra.

Mathew Jones / Simon Starling11 October – 1 December 2002

Curator: Russell StorerTwo artists68-page colour catalogueFree admission to Mathew Jones / Simon Starling was proudly sponsored by Telstra.This exhibition was made possible through the generous support of MCA Ambassadors.

PRIMAVERA 2002Exhibition of Young Australian Artists16 October – 8 December 2002

Guest curator: David BrokerNine artists52-page colour catalogueSponsored by Sweeney Vesty.Free admission to Primavera 2002: Exhibition of Young Australian Artistswas proudly sponsored by Telstra.The Primavera exhibition was founded through the generous benefaction of Dr Edward and Mrs Cynthia Jackson, and the Jackson family, in memory of theirlate daughter Belinda.

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From top:ARTE POVERA: Art from ItalyInstallation view

Matthew JonesMy Life if I Lived There(Melbourne) 1998Installation viewPhoto: Greg Weight

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From top: Jurek Wybraniec,

Unititled (Target) (detail) 1996/2002.

Installation viewMERIDIAN: Focus on

Contemporary Australian ArtPhoto: Jane Dyson,

Sydney Morning Herald

Ron MueckCrouching Boy with Mirror

2002. Installation viewPhoto: Greg Weight

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MERIDIAN:Focus on Contemporary Australian Art28 November 2002 – 23 February 2003

Co-curators: Rachel Kent, Russell Storer and Vivienne Webb17 artists168-page colour catalogueFree admission to Meridian: Focus on Contemporary Australian Art was proudly sponsored by Telstra.Presented in association with Sydney Festival 2003.

Dancing up country:The Art of Dorothy Napangardi11 December 2002 – 23 February 2003

Curator: Vivienne WebbCuratorial Advisor: Dr Christine Nicholls88-page colour catalogueSponsored by American ExpressFree admission to Dancing up country: The Art of Dorothy Napangardi was proudly sponsored by Telstra.Presented in association with Sydney Festival 2003.

RON MUECK: SCULPTURE20 December 2002 – 2 March 2003

MCA curatorial liaison: Russell Storer4-page colour visitor’s guideJointly sponsored by Calliburn Partnership and Lion NathanFree admission to Ron Mueck: Sculpture was proudly sponsored by Telstra.Presented in association with Sydney Festival 2003.

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The Native BornAboriginal Art from Ramingining, Arnhem Land

Guest curator: Djon Mundine

Ramingining: Arte aborigen australiano de la tierra de ArnhemPalacio Velázquez, Parque del Ritiro, Museo Nacional Centro de Arte Reina Sofia, Madrid, Spain31 January – 31 March 2002

The Native Born – Arte Aborígine da AustráliaPinacoteca do Estado de São Paulo, Brazil29 June – 11 August 2002

The Native BornAboriginal Art from Ramingining, Arnhem LandAsia Society Gallery and Museum, New York, USA19 September 2002 – 5 January 2003

MCA Unpacked I

Curator: Rachel Kent

Coffs Harbour Regional Gallery13 December 2001 – 26 January 2002

Orange Regional Gallery26 April – 2 June 2002

Grafton Regional Art Gallery17 July – 25 August 2002

Port Macquarie – Hastings Regional Art Gallery4 September – 20 October 2002

Manning Regional Art Gallery6 September – 6 October

Caloundra Regional Art Gallery4 December 2002 – 24 January 2003

Touring Exhibitions

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Sharpies

Curator: Russell Storer

200 Gertrude Street, Melbourne8 March – 28 March 2002

Institute of Modern Art, Brisbane30 November 2002 – 25 January 2003

The Native BornInstallation view, Sprengel Museum,Hannover Germany

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During 2002 the MCA undertook wide ranging educational initiatives which aimed toincrease access to contemporary art and ideas. Throughout the year, the planning of programs was increasingly integrated into the development of the Museum’s exhibition schedule.

Keynote lectures were presented to capacity audiences in the American ExpressFoundation Hall. Speakers included architectural critic Charles Jencks (11 March);artist Vito Acconci, who presented the 2002 Lloyd Rees Memorial Lecture with support from the NSW Ministry for the Arts (15 May); journalist and filmmaker JohnPilger (8 August); and broadcaster Matthew Collings (8 October). Gallery talks byartists such as Maria Fernanda Cardoso (7 April) and Ellen Gallagher (13 March),were presented in an informal and conversational style to provide opportunities forthe Museum’s visitors to hear directly from artists about their ideas and inspirations.

The MCA extended its highly successful program of talks with the first online artistchat. With support from MCA Leading Sponsor Telstra, an online chat with artistPatricia Piccinini (16 August) attracted an audience comparable to traditional talksheld in the gallery and offered non-metropolitan audiences the opportunity to engagein Museum initiatives without the constraints imposed by geography.

Other programs included discussions, tours and performances to enhance visitors’understanding of, and engagement with, works on display. These events offered critical perspectives on exhibitions such as the Biennale of Sydney 2002 and ArtePovera: Art from Italy 1967-2002. Live gallery performances by Iranian-bornAustralian composer Davood Ardalan Tabrizi, jazz musicians Sandy Evans and AlisterSpence, and an outdoor performance by Pope Alice, fostered relaxing, pleasurableand nonverbal responses to exhibitions.

Guided tours of all MCA exhibitions were conducted by 49 dedicated VolunteerGuides who led 4,150 visitors through the galleries.

With a key objective to contribute to the debate on broader social issues the MCAhosted the BORDERPANIC symposium in partnership with The Performance Spaceon 21 and 22 September. This event brought together socially engaged artists andthinkers, such as Julian Burnside QC and Dr Ghassan Hage.

During 2002 the MCA exhibition program afforded many opportunities for the presentation of strategic speakers targeting a broader audience. The programincluded a sellout screening of films by John Pilger (13 August) and a gallery discussion by Dr Tim Flannery, Director of the South Australian Museum, with Senior

Education 2002

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Curator Rachel Kent titled “Pursuit of the Perfect Specimen” (16 September), specifically targeting scientists and the science community.

Two new media programs, the Very Strange Weather Seminar (19 November) andFibreculture’s 2002 Annual Conference (22 – 24 November) continued the MCA’sclose links with media academics in Australian and New Zealand universities.

Conceptual Art for Beginners, held in association with the exhibition Mathew Jones/Simon Starling, ran over three weeks and offered participants an introduction to con-ceptual art and its place within contemporary artistic practice.

Through initiatives such as Bella, the MCA’s unique program providing free educationalexperiences for children and young people with specific needs; and tours and work-shops linking schools’ syllabus to MCA exhibitions, the Education Department tailored the delivery of learning opportunities to a variety of school audiences.

Artist Matthew Jones’ unconventional use of materials provided a starting point formany 2002 Bella workshops, as did the ‘street style’ theme of Primavera 2002:

MCA Education programs

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Exhibition of Young Australian Artists, including a special program in associationwith International Day of People with a Disability.

Gallery-based activity sheets were developed for younger visitors for the exhibitionMERIDIAN: Focus on Contemporary Australian Art and were offered to many ESL(English as a second language) groups. This new initiative successfully extended thetime spent in the exhibition by younger visitors.

The MCA’s continued association with Carnivale multicultural art festival enabledartist Hossein Valamanesh to participate in the Museum’s Down to the Ground: ArtePovera School Holiday Sculpture Workshop in which participants, aged between 8and 12, created a collaborative sculpture which was displayed in the MCA’s GeorgeStreet public foyer (8 – 11 October).

At the same time the MCA developed a Bella workshop for ten teenagers from disadvantaged backgrounds who are part of The Smith Family’s Learning for Life program which is supported by the law firm Mallesons Stephen Jaques. The MCAhas since arranged work experience placements for several of these young peopleand others have participated in the MCA’s annual Art School with the continued support of Mallesons Stephen Jaques.

The 2002 MCA Art School Exhibition (5 – 10 February) presented work by 12 senior secondary students who worked alongside artists Shiro Matsui, a participatingartist in the MCA’s Neo Tokyo exhibition during the 2002 Sydney Festival, RaquelOrmella and Geoff Harvey, to create work which investigated new influences, techniques and ideas.

Throughout the year, work experience students, interns and volunteers were placedacross the Museum for terms ranging from one week to six months.

Biennale of Sydney 2002 gallery talk

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Volunteers 2002

Volunteer Museum GuidesMargo Anderson, Annie Armstrong, Rachel Arndt, Kay Berryman, Pamela Blacket,Patricia Blau, Rae Bolotin, Melanie Burns, Miriam Cardinaletti, Joan Dale, FranDerwent, Barbara Diemar, Abigail Elliott, Eleanor Er, Susan Field, Sharon Fowler,Wendy Fraser, Judy Friend, Kate Gardiner, Angela Gregory, Leng Hernandez, DianeKershaw, William Levantrosser, Janine Macfarlan, Patrick Marco, Valerie Marshall, JanMcDonald, Antoinette McSharry, Tina Melick, Kim Murray, Faye Paisio, Fay Raven,Alicia Ritson, Annette Robinson, Wendy Russell, Emily Sawtell, Mandy Shaul,Patricia Shaw, Irene Shillington, Christina Simpson, Claire Souillac, Denyse Spice,Colleen Taylor, Inga Tribe, Jocelyn Van Heyst, Gwen Wallis, Susan Young, Judy Zavos

Library VolunteersCarmel Aiello, Sue Anderson, Ed Ashmore, Margaret Gor, Don Hemingway, PeggyMaguire, Marie Marlow, Judy Stefanek, Cathy Tang, Meg Taylor, Rita Todrin

Administration VolunteersNadine Binder, Mark Booth, Claire Brown, Ruth Cappelen-Smith, Jeffrey Carig,Lucinda Donnelley, Ana Jimenez, Victoria Lawson, Jo Lee, Ineke McIntosh, JoanneNewham, Brani Simonovska, Izabella Skorczynski, Annette Vieusseux

Work Experience Placements 2002Rhiannon Pettit – Terrigal High SchoolPrudence Kenny – DLS CronullaGemma Nethercote Way – Elderslie High SchoolTim Warner – Manly High SchoolLakkari Kasjan – Chevalier College BurradooAnna Lu – St George Girl's HighMelissa Thompson – Holsworthy High SchoolTiffany So – Cherrybrook Technology High SchoolKartarina Sousanis – Fairfield High SchoolEmily Banyard – Newtown High School of Performing ArtsCrystal Bolton – MSAM College, North SydneyRohini Laxmanalal – Baulkham Hills High School Baulkham HillsHenry Fitzpatrick – Model Farms High School Baulkham HillsLisa Pham – Macarthur Girls High SchoolHelene Blanning – Hornsby Girls High SchoolJasmin Bojarski – Dover Heights High SchoolAymeric DeMeautis – Killara High SchoolMadeleine Synnott

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Patricia Piccinini – Call of the WildInstallation view.

Photo: Katie Kaars

VisionariesAmerican ExpressTelstraGeoff & Vicki AinsworthDavid & Michelle CoeLoti & Victor SmorgonAnonymous

InnovatorsGinny & Leslie GreenMatthew HowisonDr Edward & Mrs Cynthia Jackson

FuturistsNeil & Diane BalnavesColin & Liz LavertySimon & Catriona MordantThe Annabel & Rupert Myer FoundationJohn Reid AO & Lynn RainbowPeter & Suzanne SteigradMalcolm & Lucy Turnbull

ContemporariesMichele Asprey & Lindsay PowersMr and Mrs Daniel BesenTerry & Robin BolinAndrew & Cathy CameronMichael CarrSusan CatoLeo Christie & Marion BorgeltPatrick Corrigan AMPaul & Sandra FermanBarbara Flynn & William GroundsSimon GohStephen Grant & Bridget Pirrie

Tony GreenLinda GregoriouCatherine HarrisAngelo & Despina HatsatourisAndrew HorsleyJohn & Mary IndykErika JumikisChristina KennedyMichael KingDoug & Sue KnoxChristopher KuanAnn Lewis AMAndrew & Amanda LoveJenny MantonLisa & Egil PaulsenDr Dick QuanSusan RothwellAnna SchwartzPenelope SeidlerIan Hill & Morna SeresVivienne SharpeDr Gene & Mr Brian ShermanGillian Simon & Darren KindrachukEzekiel SolomonRobyn ThurstonPeter Vogliotti & Angela McHughMr John Walton AM & Josie WaltonMichael Whitworth & Candice BruceDavid Williams & Jo Green

InitiatorsDr Bruce CaldwellTanya & Mark CarnegieGordon Darling AO CMG & Marilyn DarlingElisabeth Drysdale

MCA Ambassadors 2002

The MCA Ambassadors Program, founded in 2000, recognises philanthropic donorsfor their support of the Museum and its exhibition and education programs.

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Helen EagerSusan FieldMichael HawkerMichael HobbsStephanie HousteinJudy JoyeGary LangsfordMichael Magnus & Michele FergusonMr Anthony & Mrs Suzanne Maple-BrownDaniel Moquay & Prof Rotraut KleinDr Gerard Wain and Ms Veronique LajoieLex Watson

SupportersBaz Archer and Keltie McGoldrickDr Jennifer ArnoldAnthony Battaglia and Catie DyceBobbe Bowman ZelenyNatalia BradshawEmily CarneyHayes CostelloRoderick & Gillian DeaneLouise DuffPeter FayPenny FieldAnnette FreemanDr Mark GianoutsosChris GoffinGiovanna GromoRobert & Lori HarrisonGreg HatterAshley HempsallMark IsaacsBarry KeldoulisDouglas Kippax

Judy KlinePaul KornmehlGregory Lindsay-OwenRichard LudbrookGeorge MariasSusan McHattieSasha McQuaidAnnie ParnellClarissa PattersonJulianne PierceLiz RaglandAmanda RowellGillian & David SerisierPatrick & Gabrielle SimpsonLara StellaThe Hon Peter Underhill OBE & Prof Nancy UnderhillMerrill & Scott WittVera YakimenkoWye Yap

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2002 Members

Antoinette AlbertGeoff AinsworthVicki AinsworthMichele AspreySue Cato Stuart ClarkDivonne Holmes a CourtBeth DaviesElisabeth DrysdaleRobin DrysdaleMichelle FergusonSandra FermanErin FlahertyJenny FletcherBarbara FlynnJenny FoxRobyn FoxxStephen Grant Linda Gregoriou

Robert HampshireCatherine HarrisDivonne Holmes a CourtJudy JoyeBarry KeldoulisAnnette LarkinAmanda LoveSimon MordantRoslyn OxleyBridget PirrieReg RichardsonLiane RosslerSusan RothwellAnna SchwartzVivienne SharpeMandy ShaulGillian SimonMichael WalshMichael Whitworth

Director’s Working Circle

The MCA Director’s Working Circle is a group committed to, and proud of, thedynamic place that is the MCA. It is a group that is active in its support of meetingthe Museums’ objectives and purpose to broaden the reach of the MCA in order toincrease involvement in the MCA experience.

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Primavera 2003: Exhibitionof Young Australian ArtistsInstallation view

Artists’ Advisory Group

The Artist Advisory Group was established to develop the MCA’s relationship withartists by providing a regular forum for an exchange of views and information in relationto the Museum and the wider arts community in Sydney, regional NSW and interstate.The aim of the group is to ensure the representation of the views of members of theartistic community on matters pertaining to the Museum and its programs, to give theMCA feedback on its exhibitions, public and education programs, to bring to theMCA’s attention issues of concern to artists and to advise the MCA on ways in whichit can be of service to Australian artists.

2002 Members

Julie Rrap (Chair)Pat Brassington Brook AndrewScott Horscroft

Jacky RedgateMatthys GerberAnn ThomsonRobert Owen

Sponsor partnerships are fundamental to the growth and development of the MCAand its programs. From corporations such as Leading Sponsors Telstra and AmericanExpress to small and medium sized businesses such as Bimbadgen Estate Winesand accommodation sponsor Saville 2 Bond Street, MCA sponsor companies havechosen to partner with the MCA to develop mutually beneficial strategic alliances.

The MCA Corporate Membership program continues to deliver an annual program ofunique benefits from exclusive networking and entertaining opportunities, complimentarypasses to MCA ticketed exhibitions and special events, and ‘can’t buy’ MCA experiences to involve Corporate Members’ staff and clients in the life of the Museum.

The MCA thanks the many companies in its sponsor family for their ongoing supportof the Museum and of contemporary visual art in Australia.

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Supporting SponsorsBimbadgen Estate WinesDeependEakin McCaffery CoxJCDecaux

As at 31 December 2002

CORPORATE MEMBERS

Corporate PrincipalsClariti Pty LtdColliers International AustraliaFunktionality Pty LtdHaycom StagingMillward Brown AustraliaNational Learning Institute Pty LtdSaville 2 Bond StreetSpherionStancombe Research & Planning Pty Ltd

Corporate PartnersCulinary EdgeHennessy (Swift & Moore)IIR ConferencesRaleigh Paper Company Pty LtdStollznow Research Pty LtdSweeney VestyTransfield Pty LtdWattyl AustraliaWebsdale Printing Group

Corporate AssociatesLittle CreaturesBelinda Franks CateringCollex Pty LtdGastronomyCaliburn PartnershipLion Nathan

SPONSORS

Leading Sponsor

Major Sponsor

Corporate Sponsorship

2000 2001 2002

Gallery/Exhibition Visitors 195,612* 232,554 293,488

After hours events/programs 13,980 36,027 10,886

Commercial Functions 63,970 30,831 43,476

MCA Café 44,246 31,566 48,500

Touring Exhibitions 17,982 17,882 110,781**

TOTAL MCA AUDIENCE 335,790 348,860 507,131

* Free general admission introduced from 26 May 2000

** National touring program – 13,008 visitors

International touring program – 97,773 visitors 31

Max Pam Asiatic Iconic Decalogue2002. Installation view, MERIDIAN:Focus on Contemporary AustralianArt, MCA Sydney.Photo: Jane Dyson, Sydney Morning Herald

Visitor Statistics

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The following details outward loans from the MCA Collection both nationally andinternational, specifically 59 works in total were sent on loan in 2002 to sevenAustralian and three international venues. Through the MCA’s outwards loans of artworks 243,346 visitors were exposed to works from the MCA collection during 2002.

The University of Sydney, The War Memorial Art Gallery 8 May 2002 – 27 June 2002John Power exhibition32 works by John Power

Museum of New Zealand / Te Papa Tongarewa29 June 2002 – 28 February 2003Voyagers exhibitionOne work by Fordham Roam

Stedelijk Museum of Modern Art, The Netherlands30 August – 8 November 2002Colin McCahon; A Question of Faith exhibitionOne work by Colin McCahon

Lake Macquarie City Art Gallery, New South Wales1 August 2002 – 15 September 2002Bag That! exhibition16 works by Maningrida artists including Shirley Minjingala, Margaret Rinybuma, LenaGurinyia, Elizabeth Gamalanga, Mabel Gulumbarka, Lena Kala Kala, Ruby Bilidja,Susan Imangala, Laurie Miljita

Neues Museum Weserburg, Bremen, Germany11 August – 3 November 2002 Art After Art exhibitionOne work by Imants Tillers

Powerhouse Museum, SydneyBayagul – speaking up; contemporary Indigenous communication exhibition9 July 2002 – 9 July 20033 works by Anchor Kalunba and Frank Malkorda

MCA Collection Outward Loans

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Museum of Modern Art at Heide, Melbourne7 October – 24 November 2002 Good Vibrations exhibitionFive works by Bridget Riley, Yvaral, Victor Vasarely, Günther Uecker, Martha Boto

National Gallery of Australia, Canberra4 October 2002 – 27 January 2003 The Big Americans exhibitionOne work by Helen Frankenthaler

The Power Institute, The University of SydneyOffice displayTwo works by John Power

Colin McCahonThis day a man is February 1970JW Power Bequest, purchased 1985© the artist

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Chairman of the MCA BoardDavid Coe, Managing Director, Allco Finance Group

Board MembersMatthew Howison, Director, Investment Banking, Salomon Smith BarneyJulie Rrap, ArtistPeter Steigrad, Chairman, CEO Young & RubicamPeter Thomas, Partner – International Tax Group, KPMGLucy Turnbull, Deputy Lord Mayor, The City of SydneyGreg Woolley, Managing Director, Allco Investment Bank

MCA Board

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MUSEUM OF CONTEMPORARY ART LIMITEDACN 003 765 517ABN 15 003 765 517A COMPANY LIMITED BY GUARANTEE140 GEORGE STREETSYDNEY NSW 2000AUSTRALIA

FINANCIAL REPORTFOR THE YEAR ENDED 31 DECEMBER 2002

Financial Statements 2002

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Your directors present their report on the company for the year ended 31 December 2002.

DirectorsThe following persons were directors of the company during the whole of the financial year andup to the date of this report:

David CoePeter ThomasJulie RrapPeter Steigrad (appointed on 1 January 2002)Greg Woolley (appointed on 1 January 2002)Matthew Howison (appointed on 1 January 2002)Lucy Turnbull (appointed on 1 January 2002)

John Kaldor was a director from the beginning of the financial year until his resignation on 24January 2002.

Attendance's by Directors who held office during the year at meetings of the board are as follows.

Meetings Held Meetings AttendedDavid Coe 7 5 Peter Thomas 7 7 Julie Rrap 7 7 Peter Steigrad 7 6 Greg Woolley 7 6 Matthew Howison 7 6Lucy Turnbull 7 5

Principal activitiesThe principal activity of the Company was the operation of a Museum of Contemporary Art.

After providing $nil for income tax, operations for the year ended 31 December 2002, resultedin a surplus of $170,705 [2001: surplus of $7,457,638]

DividendsThe Company is a Company limited by guarantee and is restricted from declaring any dividends.

Significant changes in the state of affairsDuring the year ended 31 December 2002, there was no significant change in the state ofaffairs of the company.

Matters subsequent to the end of the financial yearThere has not been any matter or circumstance that has arisen since the end of the financialperiod (refer to subsequent events note 20 in the financial report), that has significantly affectedor may significantly affect the operations of the Company, the results of those operations or thestate of affairs of the company in subsequent years.

Directors’ ReportFor the year ended 31 December 2002

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No director has received or become entitled to receive, during or since the financial year, a benefit because of a contract made by the Company, controlled entity or a related body corporatewith the director, a firm of which the director is a member or an entity in which the director hasa substantial financial interest.

Environmental regulationThere are no significant environmental regulations which affect the Company's operations.

Insurance of officersDuring the financial year, the company paid a premium of $15,125 to insure the directors, secretary and senior officers of the company.

The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of thecompany, and any other payments arising from liabilities incurred by the officers in connectionwith such proceedings, other than where such liabilities arise out of conduct involving a wilfulbreach of duty by the officers or the improper use by the officers of their position or of informationto gain advantage for themselves or someone else or to cause detriment to the company. It is notpossible to apportion the premium between amounts relating to the insurance against legal costsand those relating to other liabilities.

Proceedings on behalf of the companyNo person has applied to the Court under section 237 of the Corporations Act 2001 for leaveto bring proceedings on behalf of the company, or to intervene in any proceedings to which thecompany is a party, for the purpose of taking responsibility on behalf of the company for all or partof those proceedings.

No proceedings have been brought or intervened in on behalf of the company with leave of theCourt under section 237 of the Corporations Act 2001.

Likely developments and expected results of operationsInformation on likely developments in the company's operations and the expected results ofoperations have not been included in this report because the directors believe it would be likelyto result in unreasonable prejudice to the company.

This report is made in accordance with a resolution of the directors.

D COE P R THOMASCHAIRMAN OF THE BOARD CHAIRMAN OF THE FINANCE COMMITTEE

Sydney16 April 2003.

Notes 2002 2001$ $

Revenue from ordinary activities 2 8,795,847 15,200,209

ExpensesBorrowing cost expense 3(a) - (25,769)Depreciation & Amortisation expenses 3(a) (309,510) (321,840)Employee benefits expense (3,302,455) (3,154,793)Rent 3(a) - (573,380)Purchase of inventories for resale (510,484) (519,842)Changes in inventories (74,978) (188,638)Exhibition costs (1,518,170) (818,228)Advertising (215,042) (220,498)Cleaning (155,610) (176,460)Contractors & Artist fees (118,255) (90,141)Insurance (222,941) (15,412)Electricity (213,091) (205,293)Marketing & Promotion (266,384) (94,882)Repairs and Maintenance (339,413) (144,040)Security (145,763) (136,530)Telephone (96,094) (85,626)Travel Local & Overseas (131,185) (110,345)Printing & Stationery (87,766) (55,526)Signage & Display (57,436) (14,800)Storage Rental (75,530) (13,420)Computer Maintenance & Consumables (88,613) (83,898)Other expenses (696,422) (693,210)

Profit from ordinary activities before income tax expense 3 170,705 7,457,638

Income tax expense - -

Net profit 170,705 7,457,638

Revenue, expenses and valuation adjustmentsrecognised directly in equity - -

Total changes in equity other than those resultingfrom transactions with owners as owners 170,705 7,457,638

The above statement of financial performance should be read in conjunction with the accompanying notes.

38

Statement of financial performanceFor the year ended 31 December 2002

39

Notes 2002 2001$ $

Current assets

Cash assets 6 3,569,485 2,995,688Receivables 7 440,235 739,893Inventories 8 243,987 318,965Prepayments 9 154,066 189,102

Total current assets 4,407,773 4,243,648

Non-current assets

Property, plant and equipment 10 12,713,928 12,617,404

Total non-current assets 12,713,928 12,617,404

Total assets 17,121,701 16,861,052

Current liabilities

Payables 11 1,411,273 1,265,880Provisions 12 195,614 215,571 Income in Advance 13 1,620,508 1,656,000

Total current liabilities 3,227,395 3,137,451

Total liabilities 3,227,395 3,137,451

Net assets 13,894,306 13,723,601

Equity

Retained Profits 14(b) 13,894,306 13,723,601

TOTAL MEMBERS' FUNDS 13,894,306 13,723,601

The above statement of financial performance should be read in conjunction with the accompanying notes.

Statement of financial positionAs at 31 December 2002

Notes 2002 2001 $ $

Inflows/(Outflows) Inflows/(Outflows)

Cash flows from operating activitiesReceipts from customers (inclusive of goods and services tax) 9,752,027 9,764,568 Payments to suppliers and employees (inclusive of goods and services tax) (8,918,763) (7,419,529)Interest received 102,621 41,013 Interest paid - (25,769)

Net cash inflow from operating activities 24 935,885 2,360,283

Cash flows from investing activitiesPayments for property, plant and equipment (362,088) (224,713)Proceeds from sale of property, plant and equipment - 22,500

Net cash (outflow) from investing activities (362,088) (202,213)

Net increase in cash held 573,797 2,158,070

Cash at beginning of the financial year 6 2,995,688 837,618

Cash at the end of the financial year 6 3,569,485 2,995,688

The above statement of financial performance should be read in conjunction with the accompanying notes

40

Statement of cash flowsFor the year ended 31 December 2002

41

1 STATEMENT OF ACCOUNTING POLICIESThis general purpose financial report has been prepared in accordance with AccountingStandards, other authoritative pronouncements of the Australian Accounting Standards Board,Urgent Issues Group Consensus Views and the Corporations Act 2001

It is prepared in accordance with the historic cost convention. The accounting policies adoptedare consistent with those of the previous year.

(A) DEPRECIATION & AMORTISATION

Depreciation is calculated on a straight line basis so as to write off the net cost of each depre-ciable non-current asset over its expected useful life.

The expected useful lives are as follows:Plant and Equipment 3 - 5 YearsMotor Vehicles 5 YearsBooks and Publications 5 YearsFurniture and Fittings 2 - 9 YearsComputer Equipment 3 - 5 YearsWorks of Art Refer 1 (D)

Amortisation of the leasehold improvements is calculated on the straight line basis so as to writeoff the net cost over the remainder of the lease term ending in 2039.

(B) EMPLOYEE ENTITLEMENTSWages, salaries and Annual Leave

Liabilities for wages, salaries and annual leave are recognised, and are measured as the amountunpaid at the reporting date at current pay rates in respect of employee's services up to that date.

Long Service Leave

A liability for long service leave is recognised and is measured as the present value of expectedfuture payments to be made in respect of services provided by employees up to the reportingdate. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rateson national guaranteed securities with terms to maturity that match, as closely as possible, theestimated cash outflows.

(C) J W POWER BEQUEST AND THE UNIVERSITY OF SYDNEY

The MCA entered in the management agreement with the University of Sydney on 31 December2001 in which the University appoints the Museum as manager of the Collection. At that timethe University also waived all outstanding loans and interest owed by the Museum to theBequest in return for an on-going agreement to provide Services to the Collection. The value ofthose works is not reflected in the financial statements.

(D) WORKS OF ART

The company acquires and is gifted art from time to time. Such works when acquired are capitalised at their acquisition cost. Works of Art gifted to the Museum have been recognisedat fair value at the time of the gift in accordance with UIG11 "Accounting for contributions of,or contributions for the acquisition of, non-current assets". Expenses relating to the acquisition,including freight and packaging where applicable, are written off in the year in which they are incurred.

Works of Art have been valued on a cost basis as at 31 December 2002 and are not depreciated.

The Company also, from time to time, holds on trust, works of art belonging to various other bodies. These works are not reflected within the financial statements of the company.

(E) EXHIBITION INCOME AND EXPENDITURE

The Company, as part of its activities, organises exhibitions and other projects of contemporaryworks, both from Australia and overseas. Such exhibitions and other projects may incur costsand expenses in years prior to them being held. In addition, the Company seeks sponsorshipsand grants to offset those expenses and these may also be received prior to the exhibition orother project.

Both income and expenditure for projects are brought to account progressively on a pro-ratabasis over the period of the relevant exhibition and the unrealised portion carried forward asIncome in Advance or Prepayments.

(F) INVENTORIES

Inventories are valued at the lower of cost and net realisable value.

(G) BOOKS AND PUBLICATIONS

Books and Publications acquired for the Library are capitalised at their acquisition cost. Books and Publications gifted to the Museum are brought to account if of value. The books andpublications are depreciated in accordance with (A) above.

42

43

(H) FOREIGN CURRENCY TRANSACTIONS AND BALANCES

Foreign currency transactions during the period are converted to Australian currency at the ratesof exchange applicable to the dates of transactions. Amounts receivable and payable in foreigncurrencies at balance date are converted at the rates of exchange ruling at balance date.

The gains and losses from conversion of short term assets and liabilities, whether realised orunrealised, are recognised in determining profit or loss.

(I) SPONSORSHIP INCOME

Income received from sponsors for Corporate Membership is recognised at the date of receipt,whilst income from Corporate Sponsorship is amortised over the life of the sponsorship.

(J) LEASEHOLD IMPROVEMENTS

The MCA entered into an agreement to lease with Sydney Harbour Foreshore Authority for aterm of thirty seven years from 1 January 2002 to 15 March 2039. The expenditure onLeasehold Improvements has been recognised as an asset of the Company. LeaseholdImprovements will be amortised over the remaining period of the lease.

(K) RECEIVABLES AND REVENUE RECOGNITION

Trade receivables are recognised at the amounts receivable as they are due for settlement no more than 30 days from the date of recognition.

Collectibility of trade debtors is reviewed on an ongoing basis. Debts which are known to beuncollectable are written off. A provision for doubtful debts is raised when some doubt as to collection exists.

(L) TRADE AND OTHER CREDITORS

These amounts represent liabilities for goods and services provided to the economic entity priorto the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(M) BORROWINGS

The MCA has no outstanding loans to any parties for the 2002 financial year.

(N) CASH

For the purpose of the statement of cash flows, cash includes Cash on hand and Cash at Bank.Cash at the end of the financial year as shown in the statement of cash flows is detailed in Note6 to the financial statements.

2 REVENUE

Notes 2002 2001 $ $

Revenue from operating activitiesTrading Revenue 22 898,581 1,151,705 Other Revenue:Membership Income 22,218 28,864 Grants:Ministry for the Arts NSW - Operations 21 2,700,000 1,450,000 Ministry for the Arts NSW - Rent 21 - 573,500 Australia Council grants 280,000 300,000 Sydney Harbour Foreshore Authority grant 400,000 - Other 138,636 - University of Sydney Funding - 250,000

Sponsorship 520,306 725,630Donations 536,799 527,938 Education Income 57,275 51,569 Entrance Fees 48,694 169,611 Function Room Hire 893,536 781,804Fundraising Events 77,372 142,505 Rent Received 1,967,003 1,695,226 Lease surrender payment received - 514,035 Other 108,860 373,979

8,649,280 8,736,366

Revenue from outside the operating activities

Interest Received 102,621 41,013 Gifts of Work to the Collection 43,946 22,830University of Sydney loans forgiven - 6,400,000

146,567 6,463,843

Revenue from ordinary activities 8,795,847 15,200,209

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45

3 PROFIT FROM ORDINARY ACTIVITIES

Notes 2002 2001 $ $

(a) Net gains and expenses

Profit from ordinary activities before income tax expense includes the following specific netgains and expenses:

Net gainsNet gain on disposal of Property, plant and equipment - 1,957

ExpensesCost of sales of goods 585,462 708,480

DepreciationPlant & Equipment 67,819 65,865 Books & Publications 6,495 7,796 Furniture & Fittings 33,550 33,065 Computer Equipment 31,521 45,446 Motor Vehicle 14,009 13,551 Total depreciation 153,394 165,723

Write down of leasehold improvements to recoverable amount - 371,076

AmortisationLeasehold improvements 156,116 156,117

Borrowing costs - 25,769

Other expensesEmployee entitlements 285,197 191,637 Stock write-down and obsolescence 36,000 89,600 Doubtful debt - 35,823 Sponsor benefits 16,730 32,900

Total other provisions 337,927 349,960

Rental expense relating to operating leases - 586,800

4 AUDITORS REMUNERATION

Notes 2002 2001 $ $

Remuneration for audit of the financial report of the company 26,000 25,000

5 INCOME TAX

The Company has been granted an exemption from paying income tax under section 50-5 of theIncome Tax Assessment Act (1997)

6 CURRENT ASSETS - CASH

Cash on hand 1,800 2,600 Cash at bank:

Cheque account - Operations 439,479 2,664,826 Cash Management Fund and Term Deposit 3,056,857 - Capital Appeal Fund Account 38,526 326,072 Belinda Jackson Acquisition Fund 32,823 2,190

3,569,485 2,995,688 Cash at bank earns interest at variable rates.

7 CURRENT ASSETS - RECEIVABLES

Trade Debtors 283,609 669,851 Less: Provision for doubtful debts 17,186 35,823

266,423 634,028 Other Debtors 173,812 105,865

440,235 739,893

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8 CURRENT ASSETS - INVENTORIES

Notes 2002 2001 $ $

Finished goods 1(F) 307,601 464,965 Less: Provision for Stock Write-down 51,277 100,000 Less: Provision for Stock Obsolescence 12,337 46,000

243,987 318,965

9 CURRENT ASSETS - PREPAYMENTS

Exhibitions 1(E) 141,598 145,430 Other 12,468 43,672

154,066 189,102

10 NON-CURRENT ASSETS - PLANT & EQUIPMENT

Notes 2002 2001 $ $

Leasehold Improvements, at cost 1(J) 7,613,753 7,613,754 Less: Accumulated Depreciation 1(A) (1,993,543) (1,837,427)

Net Book Value 5,620,210 5,776,327

Plant & Equipment, at cost 562,065 548,028 Less: Accumulated Depreciation (473,397) (425,880)

Net Book Value 88,668 122,148

Works of Art, at cost 1(D) 6,580,889 6,536,942 Less: Accumulated Depreciation 1(A) - -

Net Book Value 6,580,889 6,536,942

Books & Publications, at cost 1(G) 113,821 113,822 Less: Accumulated Depreciation 1(A) (111,335) (104,841)

Net Book Value 2,486 8,981

Furniture & Fittings, at cost 641,122 365,029 Less: Accumulated Depreciation (308,482) (298,124)

Net Book Value 332,640 66,905

Computer Equipment, at cost 272,936 269,706 Less: Accumulated Depreciation (217,228) (210,941)

Net Book Value 55,708 58,765

Motor Vehicle, at cost 70,049 70,049 Less: Accumulated Depreciation (36,722) (22,713)

Net Book Value 33,327 47,336

TOTAL PLANT & EQUIPMENT 12,713,928 12,617,404

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* Reconciliations of the carrying amounts of each class of plant and equipment at the beginning and endof the current financial year are set out below:

11 CURRENT LIABILITIES - PAYABLES

Notes 2002 2001 $ $

Trade Creditors 714,432 692,455 Other Creditors 696,841 573,425

1,411,273 1,265,880

12 CURRENT LIABILITIES - PROVISIONS

Provisions 10,000 50,000 Provision for employee entitlements 1(B) 185,614 165,571

195,614 215,571

Employee numbersAverage number of employees during the financial year 66 64

Carrying amount at 1 January 2002

Additions

Disposals

Depreciation/Amortisation expense

Carrying amount at31 December 2002

LeaseholdImprove-ments$

5,776,327

-

-

(156,117)

5,620,210

Plant &Equipment

$

122,148

34,339

-

(67,819)

88,668

Works ofArt

$

6,536,942

43,947

-

-

6,580,889

Books &Publications

$

8,981

-

(6,495)

2,486

Furniture & Fittings

$

66,905

299,285

-

(33,550)

332,640

ComputerEquipment

$

58,765

28,464

-

(31,521)

55,708

MotorVehicle

$

47,336

-

(14,009)

33,327

Total

$

12,617,404

406,035

-

(309,511)

12,713,928

13 CURRENT LIABILITIES - INCOME IN ADVANCE

Notes 2002 2001 $ $

Income in Advance 145,508 181,000 Income in Advance: government grant 1(E) 1,475,000 1,475,000

1,620,508 1,656,000

14 RESERVES AND RETAINED PROFITS

(a) ReservesCapital Building Fund - - Leon Paroissien Endowment Fund - -

- -

Movements:Capital Building FundBalance 1 January 2002 - 2,549,309 Transferred to Retained profits - (2,549,309)Balance 31 December 2002 - -

Leon Paroissien Endowment FundBalance 1 January 2002 - 66,583 Transferred to Retained profits - (66,583)Balance 31 December 2002 - -

(b) Retained ProfitsRetained profits at the beginning of the financial year 13,723,601 3,650,071 Net profit 170,705 7,457,638 Transferred from Reserves - 2,615,892 Retained profits at the end of the financial year 13,894,306 13,723,601

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15 FINANCIAL INSTRUMENTS

Credit Risk Exposures

The credit risk on financial assets of the Company is the carrying value, net of any provision fordoubtful debts.

Interest Rate Risk Exposures

The Company's exposure to interest rate risk and the interest rate for each class of financialassets and liabilities are set out in note 6.

Net Fair Value of Financial Assets and Liabilities

Financial assets and liabilities comprise of cash and borrowings. The net fair value of financialassets and liabilities approximates their carrying value.

16 REMUNERATION OF DIRECTORS

2002 2001Number of directors whose remuneration was within the following band:$0 - $10,000 7 12

2002 2001 $ $

Amounts received or due and receivable from the Company and related corporations by directors of the company: Nil Nil

Director who held office during the period were as follows:David CoePeter ThomasJulie RrapPeter SteigradGreg WoolleyMatthew HowisonLucy TurnbullJohn Kaldor (resigned 24 January 2002)

17 SEGMENTS

The principal activity of the Company during the year was the management of the Museum of Contemporary Art. The Company operates predominantly in one geographical area, being Australia.

18 SHARE CAPITAL

The Company is a company limited by guarantee and as such does not have authorised or issuedcapital. Every member of the Company undertakes to contribute to the property of the Company,in the event of the Company being wound up during the time that the member is a member, orwithin one year afterwards, for payment of the debts and liabilities of the Company contractedbefore the time at which the member ceases to be a member, and of the costs, charges andexpenses of winding up the same, and for the adjustment of the rights of the contributorsamongst themselves, such amounts as may be required not exceeding twenty dollars ($20.00).

19 ECONOMIC DEPENDENCY

The MCA is partially funded by the Government of the State of New South Wales under the auspices of its Ministry for the Arts.

20 SUBSEQUENT EVENTS

There has not been any matter of circumstance that has arisen since the end of the financialperiod that has 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 subsequent years.

21 MINISTRY FOR THE ARTS NSW

Grant of $2.7M [2001: $2,023,500] was received from the Ministry for the Arts NSW for the peri-od from January to December 2002. Grant of $1.35M was also received in advance from theMinistry for the Arts for the period from January to July 2003.

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22 TRADING ACCOUNT

2002 2001 $ $

Sales - Merchandise 898,581 1,151,705Less: Cost of Goods Sold (585,462) (708,480)

Gross Profit 313,119 443,225

23 CONTINGENT LIABILITIES

The Company does not have any contingent liabilities at 31 December 2002.

24 RECONCILIATION OF NET PROFIT TO CASH USED IN OPERATING ACTIVITIES

Net Profit 170,705 7,457,638

Depreciation and Amortisation 309,510 321,840 Write down of leasehold improvements to recoverable amount - 371,076 Donations of artworks (43,946) (22,830)University of Sydney loans forgiven - (6,400,000)Net gain on disposal of fixed assets - (1,957)

Changes in assets and liabilities:

Decrease in provisions (19,957) (46,379)(Decrease)/Increase in income in advance (35,492) 1,115,228 Decrease/(Increase) in receivables 299,658 (400,142)Decrease in prepayments 35,036 8,577 Decrease in inventory 74,978 188,638 Increase in trade creditors 21,977 351,699 Increase/(Decrease) in other creditors 123,416 (583,105)

Net cash used in operating activities 935,885 2,360,283

There were no bank overdrafts at 31 December 2002.

Director's DeclarationFor the year ended 31 December 2002

The Directors declare that the financial statements and notes set out on pages 4 - 15:(a) comply with Accounting Standards and other mandatory professional reporting requirements, and the Corporations Regulations 2001; and

(b) give a true and fair view of the company's financial position as at 31 December 2002and of its performance, as represented by the results of its operations and its cash flows,for the financial year ended on that date.

In the director's opinion:

(a) the financial statements and notes are in accordance with the Corporations Act 2001; and

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

This report is made in accordance with a resolution of the directors.

D COE P R THOMASCHAIRMAN OF THE BOARD CHAIRMAN OF THE FINANCE COMMITTEE

Sydney16 April 2003

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Circular Quay West, Sydney AustraliaPh: 61 2 9252 4033

Fax: 61 2 9252 4361 Email: mail@mca.com.au

www.mca.com.au