The role of financial management in Maltese theatre companies : a study

Abstract

Purpose: The purpose of this study was to analyse the sources of funds of Maltese TCs, and how these funds are managed, with a focus on cash management. An analysis of how TCs budget for productions was also conducted and recommendations on how TCs may improve their FM system were provided. Design: A qualitative approach was adopted to achieve the objectives of this study. Semi-structured interviews were conducted with representatives of TCs and a semi-structured interview was also conducted with a representative of the ACM. Findings: In the study was shown that the main sources of funds for many Maltese TCs are ticket sales and government funding, whilst expenses are generally incurred during a production. Furthermore, many TCs stated that they have some form of controls in place when it comes to cash management. Budgets are usually prepared for every production and on a short term basis. The impact of COVID-19 on TCs was also analysed. Conclusion: The study concludes that although many TCs may not operate full time, they try to optimise their resources through the use of budgets and preparation of accounts. Some areas for improvement could be training for TCs to gain a better understanding of the financial requirements needed, easier access to information about funding schemes, and disclosures should be made about donations in kind. Value: This study provides an overview of the FM of TCs in Malta. Moreover, the theatre industry seems to be becoming more professional in Malta, thus this study may aid interested parties in gaining a better understanding of the finances of TCs.