News
15 September, 2024
Woodford stages festival fight back
New figures reveal challenges as iconic event receives $2m lifeline
By Marina Gomide and Mitch Gaynor
WOODFORD Folk Festival has been handed a $2 million lifeline from the State Government to help shore up the iconic event’s future.
It follows an almost knockout blow last year when millions was lost as the cost-of-living crisis hit household budgets and reports of severe weather events over the week-long festival culminated to crunch ticket sales.
At the same time festival production costs increased in the order of 30 to 40 per cent.
The dire situation of the 2023/24 event has now been laid bare in financial documents, seen by The Sentinel, that reveal auditors found there was “significant doubt” about the ability of the festival to continue.
Woodordia’s board however stated that while the event may not reach pre-Covid heights again, concerted undertakings including job cuts, reduced budgets and reduced infrastructure investment, along with increased grants, will ensure the festival will continue.
Financial records for Woodfordia Inc – the not-for-profit owner of the folk festival – showed revenue was hit by a $1.1m fall in box office takings as well as a $1.2m fall in grants from the prior years.
Those records show Woodfordia Inc now has $327,000 in cash, compared to $1.87m in 2023, with overall revenue falling from $16.7m in 22/23 to $14.59m in 23/24.
The organisation’s total comprehensive income fell from $667,667 to -$1.94m in 2024, with auditor BDO spelling out its concerns.
“We draw attention to … the financial report which describes the events and/or conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the registered entity’s ability to continue as a going concern and therefore the registered entity may be unable to realise its assets and discharge its liabilities in the normal course of business,” the BDO auditor’s found.
But Woodfordia President, Lachlan Brown, and Treasurer, Ross White, stated that they believed Woodfordia was able to meet its financial obligations but acknowledged “the current financial position gives rise to the existence of a material uncertainty that may cast doubt on the Entity’s ability to return to its pre-COVID-19 business levels”.
They said the organisation had adopted a “conservative budget strategy” in anticipation of similar ticket sales compared to the weather-affected 2023/24 festival.
“The considerable investment made to bring the site back from hiatus during the Covid period will not be required this financial year and has been removed from the budget,” they stated.
A $1.6m state government grant to reduce annual hire equipment expenses and maintenance costs as well as $400,000 in program funding to “increase the competitiveness of the festival’s line-up was also helping reduce cost pressures on the event.
Woodfordia also has significant approved funding of $1m per year over the next two years.
“The entity has monthly reviews of its expenses against budget and quarterly reports to the Management Committee. This ensures expenses are held to budget across all festival departments,” Mr Brown and Ms White stated.
After The Sentinel reached out to Woodfordia organisers, it was announced that the State Government would contribute a further $2m into the 2024/25 program as well as the 500-acre parkland.
Site works include all weather pathways and improving drainage in camping grounds as well as the development of “key event infrastructure”.
“It has always been the goal for Woodfordia to support and facilitate exciting events that enrich the community throughout the year and this vital funding will help us realise this,” Woodfordia’s Amanda Jackes said.
“We would like to thank both Premier Steven Miles and Minister for Arts Leeanne Enoch for their strong support. This backing will contribute to making this year’s festival one not to be missed.
“At a time when the live music industry and festivals are in crisis, we are so appreciative to have such a strong supporter in the Queensland Government.”
Woodford organisers will be revealing the line-up for the 24/25 festival in mid October.
