Culture doesn’t pay, COA finds in audit of CCP

Filipino talents may be sweeping the world stage, but back home their countrymen are not really coming in droves to theater shows, the Commission on Audit (COA) has found.

In its latest audit report on the Cultural Center of the Philippines, the COA said the CCP failed to meet its targeted audience count for 2010, which was a similar finding in previous years.

This affects the CCP’s ability to fulfill its mandate, which includes making Filipinos aware of their cultural heritage and encouraging them to take part in preserving, promoting, enhancing and developing it, according to the COA.

The CCP stages plays, musicals, dance shows like ballet and folkloric performances, film showings, art exhibits, poetry readings, storytelling sessions and the like.

It generates income from operations, contributions from the private sector and from other local and foreign sources. It also receives a subsidy from the national government.

Less than stellar turnout

The COA cited figures from 2007 to 2010 to highlight the less than stellar turnout at CCP events.

In 2010, the expected audience count was 510,252, but the actual turnout was just a little over half that—292,755 people for 757 performances, or an average 387 persons per audience.

In 2009, the expected turnout was 468,820 for 812 performances. But only 248,548 people came. In 2008, the audience count was expected to reach 514,704 for 778 performances, but only 273,633 attended. In 2007, the expected turnout was 514,672 but only 255,496 people turned up for the 742 performances.

27 % paying customers

The COA further found that a little over half of the 292,755 people who attended the theater in 2010 came on complimentary or nonrevenue tickets. Only 27 percent were regular paying customers, while 29 percent were discounted patrons.

From 2007 to 2009, the number of nonrevenue customers also made up half or more than half of the audience. For 2009, 60 percent were nonpaying, while in 2008, 50 percent were nonpaying. In 2007, 55 percent were nonrevenue tickets.

Losses in revenue

Because of this, the CCP was hard-pressed to come up with much needed revenue.

“The high ratio of nonrevenue/complimentary audience and discounted tickets against the regular paying audience indicated losses in revenues of the Center. Coupled with the shortfall in target audience count, the ability of the Center to generate corporate funds for its operations was adversely affected,” the COA said.

Missed income target

It also pointed out the CCP did not generate its target corporate income for the past years, as seen in its statement of income and expenses.

For instance, its projected income for 2010 was P152.59 million, but actual income was P113.834 million. It also incurred deficits from 2005 to 2009, ranging from nine percent to 45 percent of its projected income.

This shows there is a need for the CCP to improve its financial performance so that it could sustain its operation and existence, the COA said.

“For the past years, the center was heavily dependent on national government subsidy to continue as an operating entity. As a corporation, it is incumbent that it generates sufficient income to sustain its operations and attain its mandate,” it said.

It recommended the CCP review its policies for ways to sustain its operations from its corporate revenues.

It also said the CCP should improve its marketing and administrative strategies for programmed performances.

The CCP, it noted, was amenable to the suggestion.