9. Glossary
- Arts presenters
- Arts presenters select the artistic programming for public presentation in their community based on an artistic vision. They hire professional artists, groups and companies and are responsible for paying a guaranteed fee for each presentation. They provide the venue and supply the technical and promotional support. Presenters may also organize audience development and/or outreach in support of their artistic programming. They have a thorough knowledge of the audiences in their communities, of the professional arts community and of the various networks that support both the artists and the presenters.
- Business plan
- The business plan is a working tool for turning a strategic plan into reality. It provides a road map for board, staff and organizational partners and is used to attract in particular private sector funders (foundations, corporations and individual donors). Typical arts business plans project organizational growth for the next two to five years. They include financial projections and targets, the size of markets (actual and potential) as well as information on market trends. A business plan describes how the organization is accountable to the community and the methods for monitoring and evaluating progress. A business plan may be a document separate from the organization's strategic plan, or it may incorporate the strategic plan.
- Capacity
- Capacity refers to organizational competencies and the extent to which these are effective in realizing an articulated mandate. It refers to competencies in financial management, governance practices, planning, marketing and organizational development policies. Capacity building is then any undertaking which would expand, increase or develop an organization's competencies.
- Creation/Production
- Artistic work, research and production of a new or substantially revised artwork, e.g. play, dance, score, script, sculpture, video or installation. Production also covers stage revivals and may include presentation in certain fields, such as theatre or dance.
- Financial statements
Audited financial statements
a) A certified accountant has performed auditing/ verification activities in accordance with generally accepted auditing standards. An auditor’s report, without any qualifications or reservations, will generally include three paragraphs:
- an introductory paragraph identifying what statements have been audited, that the financial statements are the responsibility of the entity's management and that it is the auditor's responsibility to express an opinion on the financial statements based on the results of the audit;
- a scope paragraph indicating that the audit was conducted in accordance with generally accepted auditing standards that require planning and execution of auditing activities to provide reasonable assurance that the statements are free from material misstatements and the nature of audit activities performed; and
- an opinion paragraph stating whether the financial statements present fairly, in all material respects, the financial position, results of operations and cash flows of the entity in accordance with generally accepted accounting principles.
b) Review engagement report
The review engagement report differs from the audit report in that the scope of a review is less than that of an audit; therefore the level of assurance provided to the reader of the financial statements is lower. A review engagement report will generally include three paragraphs:
- an introductory paragraph identifying what statements have been reviewed, that the review was conducted in accordance with generally accepted standards for review engagements, consisting primarily of enquiry, analytical procedures and discussion related to information provided to the certified accountant by the entity;
- a statement that a review does not constitute an audit and that the certified accountant is not expressing an audit opinion on the financial statements; and
- a conclusion indicating whether anything has come to the certified accountant's attention that causes the accountant to believe that the information being reported on is not, in all material respects, in accordance with generally accepted accounting principles.
- Grant
- A grant is a transfer payment made to an organization which is not subject to being accounted for or audited, but for which eligibility and entitlement may be verified, or for which the recipient may need to meet pre-conditions.
- Management letter
- A letter from a chartered accountant which normally accompanies audited financial statements. Based on the chartered accountant's audit and analysis of the organization's financial records and statements, this letter communicates observations of particular interest to the organization's management.
- Net assets
- Net assets equal total assets (excluding externally limited/restricted items) less total liabilities.
- Strategic plan
- The strategic plan is a clearly written document that describes an organization's mandate, its near, mid and long-term goals or objectives, as well as the priority actions necessary to realize these goals and objectives. The strategic planning process should analyze the environmental factors, assess the risks and determine mitigation plans.
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