OKM recovers €500 000 in state funding from Avant

On 9 March 2018, the Ministry of Education and Culture decided to recover from Avant a total of EUR 500 000 in unjustified overpayments of state funding.

Chamber Orchestra Avanti! has been using the VOS reporting model since 1998, which, according to the recovery decision, does not meet the requirements of the current VOS legislation. The reporting model used by Avanti had overstated the number of man-years calculated.

Avant’s Board decided on its reporting method in 1998 after discussions with the Ministry of Education and Culture. The orchestra has followed the same reporting policy ever since. The rationale for this different reporting method from that used by other operators is that the State contribution model is not suitable as such for an operator such as Avant, which employs a large number of freelance musicians on an irregular basis but has to maintain a relatively large permanent staff of design and production personnel.

In early 2017, Avanti! developed its own financial management and reporting system. As a result of this development work, the association sought advice from the Ministry and it became clear that Avanti’s reporting does not meet the requirements of the current VOS legislation. This information was new and came as a surprise to Avant, and led to almost a year of research, which the Ministry has carried out in good cooperation with Avant.

Avant’s understanding remains that there was agreement with the Ministry on the system applied in 1998. In its recovery decision, the Ministry states that ‘it is possible, however, that the views expressed by the Ministry may have contributed to the development of the incorrect practice at the time‘. The Ministry also states in its decision that ‘. in this case there is no reason to doubt Avanti! association acted fraudulently and deliberately misreported personal expenses. The fact that the conduct came to light in the Avanti! ry’s own contacts “.

Avanti! feels that nothing has been brought to its attention that would give cause to revise the practice in force since 1998. In the context of the legislative change, Avanti! amended its rules in accordance with the guidelines. The written instructions on the collection of cost data in 2007 concerned, in Avanti’s view, the collection and reporting of data, not the principle that had guided Avanti’s reporting since 1998.

Avanti! feels that it has acted in accordance with the law and reported its financial figures as agreed. The Avanti Board of Directors decided on the reporting model to be followed in 1998 after very careful analysis.

The Ministry’s decision to recover the money is based almost exclusively on the law on the financing of education and culture, not on cultural policy considerations. The Ministry must order the recovery of the overpayment. But the law also states that if the amount of the benefit to be recovered is insignificant or if the recovery of the benefit or interest is considered excessive, the benefit may not be ordered to be recovered.

Avanti! considers that the recovery is unreasonable. The Ministry is reducing the amount to be recovered to EUR 500 000, but does not consider the partial recovery to be unreasonable, even though the decision poses an extremely serious threat to the continuity of Avanti’s activities.

All these years, the Ministry has had access to Avant’s annual reports and accounts. Avant’s auditor has provided Avant with a clean audit report for all the years of the association’s existence.

Avanti! has been a VOS-supported orchestra since the beginning of the legislation, and the state grant has been the basis of Avanti’s economic activity, enabling the orchestra to employ hundreds of top professionals in the field of art music every year. Avanti! has been a pioneer of new programming in our country, because the artistic starting point has been the repertoire, not the composition. Avanti has developed into an institution whose importance in Finnish musical and cultural life cannot be overstated. It has two main pillars: the orchestral activities and the annual Suvisoitto event, now in its 32nd year, organised in collaboration with the City of Porvoo.

Criteria set by law for receiving state aid Avanti! has been fulfilled throughout its operation. Avanti! has received a grant from the State for its orchestra and concert activities and for the Summer Play. The results speak for themselves.

Avanti! is one of the most prolific premiers of Finnish music in the last thirty-five years. Avanti! has given nearly six hundred premieres in its lifetime. It has literally been instrumental in the breakthrough to international consciousness of many composers, including Magnus Lindberg, Kaija Saariaho, Esa-Pekka Salonen, Jouni Kaipainen and Kimmo Hakola. Through its composition courses and workshops, Avanti! has also trained the next generation of composers and premiered their works.

A significant number of internationally successful conductors have left Avant’s ranks: the founders Esa-Pekka Salonen and Jukka-Pekka Saraste have been followed by Sakari Oramo, John Storgårds, Susanna Mälkki, Hannu Lintu, Tuomas Hannikainen, Tomas Djupsjöbacka, Dima Slobodeniuk and Klaus Mäkelä. The orchestra has also trained new musicians to join its ranks. On their international tours, Avanti! has been an important ambassador for Finnish new music.