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The “Teatro alla Scala” in Milan.
The support of the financial statement to governance models from 1921
to 1946.
Mariarita PIEROTTI University of Milano Bicocca – Italy
[email protected]
Enrico DEIDDA GAGLIARDO University of Ferrara – Italy –
[email protected]
Salvatore MADONNA University of Ferrara – Italy –
[email protected]
Acknowledgements: This study is the fruit of a group elaboration and should be considered a
shared cultural heritage; however paragraph 1 (Introduction) should be attributed to Salvatore
Madonna, paragraphs 3.1, 4.1, 5.1, 6.1, and 7 should be attributed to Enrico Deidda Gagliardo,
whilst paragraphs 2, 3.2, 4.2, 5.2, 6.2 and 8 should be attributed to Mariarita Pierotti.
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The “Teatro alla Scala” in Milan.
The support of the financial statement to governance models from 1921
to 1946.
Abstract
This study is the result of research focusing on the accounting systems of the Teatro alla
Scala in Milan in the period spanning 1921 to 1946.
The Teatro alla Scala in Milan is internationally recognised as a world stage for Opera.
The aim of this research is to seek to understand, through the study of the evolution of the form and
content of the informational tools, if these were able to provide relevant data in order to adequately
support the governing bodies during the period analysed.
The investigation has revealed a parabolic trend in the way the data was structured.
In an attempt to offer valid food for thought to current scientific debates we have focused on
the role played by the bookkeeping informational system of this institution during a very specific
historical period, and how it balanced out and/or enforced the relations of the powers at the time.
Keywords: Teatro alla Scala, Milan, accounting report system, financial statement, governance
models, opera companies, theatre.
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1) Introduction
This study is the result of historical research which focused on the “Teatro alla Scala” in Milan.
Opera theatres are historically characterised by the dichotomy between artistic concerns which
influence the institutional aims, and the financial concerns. This is nevertheless an essential
condition in order to accomplish the statutory mission. The use of new governance models
supported by adequate financial statement systems seems to be the only means of ensuring a
financial and artistic equilibrium (on the subject of financial equilibrium, please refer to: GIANNESSI
E., 1960, more specifically, for companies in the field of the Arts, BAUMOL W.J., BOWEN W. G.,
1966).
In the field of historical research, our contribution can be considered part of the vast literature
available regarding the evolution of accounting reports and of accounting instruments, which have
always been the focus of other academics in our discipline (please see, amongst others, PODDIGHE
F., 1973; PODDIGHE F., CORONELLA S., MADONNA S., DEIDDA GAGLIARDO E., 2007).
As far as specific historical studies on Theatres and similar organisations are concerned, there
have been numerous important contributions, among which we feel it is important to highlight:
ANTONELLI, V., D’ALESSIO, R., IULIANO, G., 2007, BERGAMIN BARBATO, M. AND MIO, C., 2007.
Today1 the “Teatro alla Scala” is considered to be one of the world temples of Opera.
The Teatro alla Scala was founded under the
Figure n. 1. Church Santa Maria alla Scala
auspices of the Empress of Austria following the fire that
on the 25th February 1776 destroyed the Teatro Regio
Ducale, the historic home of the Milanese opera. The
cost of building the new theatre was supported entirely
by the owners of the boxes [“Corpo dei Palchettisti”] at the Ducal theatre in exchange for the
renewal of their ownership of their boxes. The land on which the church of Santa Maria alla Scala2
stood was given to the Palchettisti for free by the Ducal Camera in 1381, in virtue of an obligation
in 1717.
3
The theatre was inaugurated on 3rd August 1778 with the Opera by Antonio Salieri, “L'Europa
riconosciuta”.
In 2004, after an important restoration, the new
Figure n. 2. The Teatro alla Scala today
Theatre was inaugurated with a performance of
“L'Europa riconosciuta”, in a symbolic parallel with the
first historic opening in 1778. The Theatre is managed
by the “Fondazione Teatro alla Scala di Milano”. In
1997 the Theatre was juridically transformed from Independent Body to Foundation3 in order to
guarantee constant and flexible development to the Mission so that it might promote musical culture
in Italy and around the world. The Founders (by Law4, Ordinary and Permanent5) gave life to a
private law, not-for-profit institution, constituting one of the institutes of national interests as
according to Law n. 800/1967.
For the purpose of this paper, historical research on the “Teatro alla Scala” in Milan has
particularly concentrated on the period from 1921 – 1946. On the one hand we focused our
investigation into the Theatre on institutional aspects, organisational structures and the governance
models, and on the other hand on the financial statements (ROBERTS, J. and SCAPENS R.W. 1985).
The time scale we have chosen will be subdivided into two periods:
•
the transformation of “La Scala” into an Independent Body (1921-1935)
•
the more hybrid State-Institution reports (1936-1946).
The reason for this separation from 1921-1935 can be traced to the transformation of the
Theatre into an Independent Body with its own juridical personality.
The research covering the period 1936-1946 is linked to the time when the “Regio Decreto
Legge” [Royal Charter](R.D.L.) n.438/1936 came into force, which limited the Body’s autonomy
and was in line with the totalitarian Fascist regime.
4
As a consequence to the changes in the relationship between State and Institution, the
accounting tools were also modified and therefore we have specifically referred to the level of
support provided to the governance models in place at the time.
The study will focus on the evolution of the form, the structure and the content of the financial
statement. We will evaluate its efficiency in providing information that would have been useful in
adequately supporting the governing bodies in their strategic and managerial decision making
processes. Therefore the “research question” is the following: Was the financial statement used in
the periods from 1921-1935 and from 1936-1946 efficient in adequately supporting the governance
models in place at the time?
In order to answer this question, our paper will have the following structure:
In the second paragraph we have outlined the research strategy that we have adopted. In the
third paragraph, we have provided information on the historical context of the two periods covered,
in order to then continue with an in-depth study of the institutional and organisational aspects of the
Theatre. We then get to the heart of the study, or rather, an analysis of the balance sheets from 1921
to 1946. Finally, the sixth paragraph questions whether the function of the balance sheets provided
the support needed to the governance models at the time. We conclude in the final two paragraphs
with a temporal comparison that provides conclusive reflections on the research carried out.
2) Research Methodology
The objective for this historical study is not only to provide a “narration of the past”, but rather
an analysis of a subject (in this case the Teatro alla Scala) and its development. In this way the
historical study is intrinsically bound to the scientific research. In other words, this allows for us to
define any causal or functional relationships between the events observed and to find a link between
the present, the past and the future – as with all social phenomena (GIANNESSI, E., 1992).
5
The description of the events or of past incidents does not necessarily cancel out historical
methods. The fact of carrying out historical investigations does not mean limiting ourselves to
telling the stories without highlighting the subliminal network of connecting relationships.
Therefore whilst our work began on the basic understanding of the events which made up part
of the history of one of the most important theatres in the world, we have undertaken the task of
highlighting the links which make those events interpretable.
In order to achieve this, our research has mostly been based on the primary sources obtained
from the archives at the Teatro della Scala. We have referred in particular to the balance sheets and
attached accounting documents from 1921 to 1946, as well as the Juridical Rules and Regulations –
or rather the statutes of the Institution that regulated affairs during those years.
The first step of gathering data on which the historical analysis was based concluded with the
collection of secondary sources. These came from historical texts covering the national political
situation at the time, as well as texts regarding theatre organisations.
With reference to this latter part we did not find any publications on the accounting systems
used by these organisations during the period studied in any business administration literature. The
oldest studies on this subject are the following: Valle’s publication in 1823, on the more operational
aspects rather than accounting aspects, and Castellino’s dating 1946, following the Second World
War.
Therefore, in the next stage which involved the identification of causes that might have had
consequences on the accounting tools used by the Theatre management, we concentrated almost
exclusively on the political stage, which during the ‘30’s and ‘40’s were some of the most intense
years involving the establishment and consolidation of a totalitarian state.
As a preview to our conclusions, we can reveal that during the decade mentioned above the
ideologies and corporate management at the time influenced the scientific debates and organisation
of the economic disciplines, and were the basis for the changes of the structure of the accounting
informational system at the Teatro alla Scala.
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3) Historical Context6
3.1. The “Teatro alla Scala” from 1921 to 1935
From 1868-21 the “Palchettisti” were the sole owners of the theatre. After which the Milan City
Council entered into co-ownership, and this agreement is still in place today.
The management was passed from pillar to post, alternating between public bodies and private
management until the establishment of the Autonomous Municipal Body in 1921.
The funding of the Theatre was totally or largely public.
With the Contract of 9th November 1920 between City Council, “Palchettisti” and private
benefactors a formal agreement was made for the establishment of the “Autonomous Body of the
Teatro alla Scala of Milan”. This took over the management of the Theatre for a trial period of 9
years. The agreement declared that if these 9 years had passed with no problems, the Body
(following a final decision of its Board of Managers), the City Council (at no extra cost) and the
“Palchettisti” (upon payment) would have passed on their respective property rights of the Theatre
to the Body.
The process of juridical recognition began in 1920 and reached a conclusion when the
Autonomous Body was declared a Moral Entity with the Royal Charter (R.D. Regio Decreto) n.
2143/1921, signed by the King of Italy Vittorio Emanuele III. At the same time the first Statutes
were approved. After 3 years of enforced closure due to the 1st World War, in 1921 the Theatre was
restored to the public in all its splendour.
A new era in the power relations began with the Royal Charter in 1929: the Board of Managers
of the Body was dissolved and a Special Commission was assigned. With the Convention of 18th
November 1930, registered in the presence of a Notary on 27th May 1931, the management of La
Scala was reviewed under the following terms:
•
concentration of the entire property so that the Milanese municipality7 was sole owner,
via the free acquisition of the assets belonging to the Autonomous Body (mainly
7
•
concession of the use of the collateral real estate to the Autonomous Body and transitory
accessories to the Municipality;
•
Renewed management of the Theatre and of all its sister institutions in the hands of the
Autonomous Body;
•
concession of the right to free action to the Autonomous Body, except in the limits set
down by law and by the Convention, and not including the fixed destination of the opera
performances and for institutional ends.
In short, there was the initial transfer of ownership of the collateral real estate from the
Autonomous Body to the Municipality. After the transfer there followed the concession of the use
of the collateral real estate from the Municipality to the Autonomous Body. The latter, despite
having lost ownership of the real estate, could continue making use of the buildings.
The changes ended with the approval of the second Statute with the Royal Charter (R.D.) of
30th March 1931, n. 436, which were then slightly modified with the R.D. of 4th January 1934,
n.123. The new Statutes were in place until the Royal Charter (R.D.L.) n.438/1936 that gave life to
a hybrid form of Opera Company, thus permanently ending the Theatre structure as it had been until
that date.
3.2. The Teatro alla Scala from 1936 to 1946
In 1936, the juridical structure of the Theatre that had been a model of reference for the
establishment of the Theatre di Roma in Rome in 1929 and for that of Florence in 1933, went under
a radical transformation following the enforcing of the R.D.L. [Royal Charter] of 3rd February
n.438. In order to improve a difficult situation that had taken shape at the time, caused by the
disastrous effects in the wake of the Second World War, it was not until 1946, when the R.D.L of
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30th May n.538 attempted to change the previous structure in favour of more autonomy (largely
financial) of the Theatre Companies.
With the R.D.L n.438, many other Autonomous Bodies were created in order to reach a total of
thirteen. Aside from those already in place such as Milan, Rome and Florence, there were the
following new additions: Verona, Venice, Turin, Genoa, Naples, Palermo, Bologna and Trieste, as
well as the Concert Institutions of Santa Cecilia in Rome and Cagliari. The decree regulated their
administration in a uniform manner, and many restrictions were introduced in particular with
reference to the performances allowed. It was a decidedly strict intervention which was in line with
the political atmosphere at the time that was under a Totalitarian Regime. This regime was
particularly attentive towards the cultural events that involved the mid-to-upper class social levels.
It could have seemed at first glance to be the beginning of a State Theatre, but in actual fact, as we
will see below, this never happened as its juridical configuration remained suspended in a StateInstitution rapport of a particularly hybrid nature11.
The government wanted to homogenise the management of the major institutions with the aim
of gaining more political control and improving artistic quality, thus eliminating any contractors and
promoting musical and theatrical education to the people. The reduction of the activities of the great
Opera Companies to a homogeneous management was achieved through the elimination of any
private management and the establishment of methods of control from central management.
In 1935, a state-run management was set up with the
specific aim of managing the affairs linked to the Arts: the
Figure n. 3. “La Scala” seriously damaged
Ministry for Press and Propaganda, which became the Ministry for
Popular Culture two years later. That same year, the Duce introduced
an “Inspectorate of Theatres”, in order to guarantee greater control of
the performances from a State point of view, and in order to keep
them under direct government power.
9
When the Royal Charter R.D. n.438 was enforced by law in 1936, disciplining the Opera
Companies in an organic and uniform manner, there was also the introduction of government
figures such as the Supervisor of Opera Companies and the members of the Management
Committee. Furthermore, there was also the introduction of necessary ministerial approval for any
acts of relevant importance and for the programming of the theatrical seasons.
In 1943 La Scala was hit by enemy bombing and seriously damaged. The Theatre was only
restored after the end of the War and performances did not start again until 11th May 1946 with an
historic concert directed by Toscanini, who had recently returned from the United States where he
had been in exile following the advent of the Fascist regime.
Antonio Ghiringhelli was appointed supervisor and during his mandate, La Scala rapidly
regained its high level of production and artistic excellence. In order to decree the new period of
theatrical performances, in May 1946 the R.D. n.538 (known as the Scoccimarro Law after the then
Finance Minister) was enforced, in which the State was declared direct sponsor of the Opera. By
this, the State had to provide 12% of treasury rights, and the income came from the performance
intakes to the Autonomous Bodies, to the Accademia di Santa Cecilia and other not-for-profit
theatrical bodies and institutions.
4. Institutional organisation, Organisational Structure and
Governance Models9
4.1. The first period: 1921-35
In the period covered by this study, the Statutes were therefore reviewed three times: in 1921,
1931 and in 1934.
Beginning with the juridical form: with the D.R. of 1921, the Theatre was declared a not-forprofit Autonomous Moral Body; with the Statutes of 1931 and their modification of 1934 the
previous juridical form was confirmed.
10
In the Statutes of 1921 the founding members were the Municipality of Milan, the “Palchettisti”
and the private benefactors who had invested individual quotes that were no lower than £50’000. In
the Statutes of 1931 and ’34, the members featured the Municipality alone, which had bought sole
property of the Theatre.
In all three Statutes, the aim of the Body was mainly that of using the Theatre for performances
and concerts that honoured its tradition.
Moving onto the institutional organisation: The Statutes of 1921, together with the
Administration Regulations of 1922-1925, listed the authorities: the Board of Administrators (and
their eventual Delegates), the President, the Secretary, and two auditors. With the Statutes of ’31
and ’34 the same authorities were confirmed but with the addition of an Executive Commission
within the Board of Directors and a Theatre Director, both at the head of the organisation.
The organisation was composed in a hierarchical configuration defined by functional areas,
which was neither too complex nor articulated. The head was held by the General Director, to
whom the Administration Offices, the Technical Office and the Stage Services answered directly.
As far as the governance models are concerned, the Statutes of 1921 outlined a simple model,
based on the presence of a Board of Administrators and two auditors: in order to facilitate the
fulfilling of the statutory goals, these subjects were respectively appointed for addressing and
controlling all the activities of the organisational structure, entrusting the General Director with the
full coordination of said structure.
With the Statutes of ’31 and ’34 the Simple Model was confirmed with few integrations: the
Board of Administrators, nominated for its governing responsibilities, was assisted by an Executive
Commission (added in the ’31 Statutes) or by a Delegated Advisor from the Theatre Direction (in
the ’34 version); the Auditors (one or more in the ’31 statutes; three in ’34) were responsible for
accounting and administrative control; the Board of Administrators entrusted the coordination of the
structure to the Theatre Director, who was assisted by an Executive Commission (in ’31) or by a
Delegated Advisor (in ’34).
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4.2. The second period: 1936-4612
In the period covered by this study, the changes to the institutional organisation, to its structure
and to the governance models, can be mostly traced to the R.D.L. n.438 of 1936. At the time, no
changes were made to the statutes since, according to the documents available, the new Statutes
written in 1943 were never approved. The law of 1936 is therefore the only juridical reference that
can help us understand the institutional organisation in place at the time.
As far as the juridical form is concerned, the R.D.L. of 1936 confirmed the body’s juridical and
managerial autonomy, and that it could be non-for-profit and aspire above all to the musical and
theatrical education of the people. During those years, the body’s autonomy was transformed into a
formality, since the Royal Charter above imposed a tight control over any decision or appointment
made.
Among the founding institutions there was only the Municipality of Milan, and the Theatre was
placed under the direct supervision of the Ministry for Popular Culture.
The aim of the Body was that of organising opera performances and concerts that were at the
heart of the Theatre’s tradition, as well as programming concerts and plays exclusively with the
personnel from La Scala, in order to draw attention to La Scala and the Italian Arts.
As far as the institutional organisation is concerned, the decree in 1936 established that the
Body was controlled by the Podestà who was supported in his role by a Management Committee.
The Supervisor was appointed by the Ministry for Popular Culture but, nevertheless, all the other
nominations presented by the Municipality or by other Bodies had to be approved by the Ministry.
Among the other authorities there was the Board of Administration and three auditors.
In actual fact, the law of ’36 deprived the administrative bodies of any authority, and their
responsibilities were endorsed by the Supervisor and therefore by the Ministerial authorities. The
12
Board was basically “emptied” of its specific tasks, and its existence responded purely to formal
requirements.
In the figure no. 3 (in appendix) the powers and functions of each body have been highlighted.
The simple governance model was confirmed, but with a few integrations:
•
the role of Supervisor was introduced, directly from the Ministry for Popular Culture,
and he was to propose all the necessary steps for the administration and management of
the Theatre to the President.
•
the Podestà was assisted by an executive committee with the role of examining and
approving the final balance and the financial statement, as well as approving the artistic
programme for the following season that would be submitted for the Ministry’s
approval;
•
there were three Auditors: two appointed by the prefecture and the other by the Podestà.
It is clear how the intention of the Regime was to control the management of the Body “from
the inside”, through the appointment of staff that were continually monitored by the ministry.
5) The financial statement
5.1. The reports of 1921-3510
The study of the accounting information system of La Scala from 1921 to 1935 was possible
through the use of the following documents:
•
the Statutes of 1921 and the Administrative Regulations of 1922-25, the Statutes of
1931 and their modifications of 1934;
•
the Financial statements from 1922-23 to 1930-31 (whose model was based on the
Body’s first financial statement, dated 1921-22 but which has been lost), and those from
1931-32 to 1934-35.
The first evidence is that the main changes in the balancing format can be seen in line with the
Statutory changes: a renewal of the governance model required a renewed supporting tool. The
balance sheet covering 1922-23 had the advantage of being the first financial statement of the
13
Autonomous Body, but suffered from the confusion that was inevitable for a first attempt. The final
balance in 1931-32 could boast of having rationalised the disorganised financial statements
beforehand: until 1930-31, so many new items had been added to the ’22-23 balance sheets in such
an arbitrary way that a veritable “informational jungle” had been created.
We will compare the various financial statement models, first with respect to the general
aspects of the balance, and then with respect to the characteristics of its sections for synthesis.
REGULATORY FRAMEWORK. The balance sheets had, as their sole reference, the Code of
Commerce of 1882: this did not contain any specific instructions for financial statements, and was
limited to a generic outline, supported by evidence and fact, of the consolidated income and losses.
DRAFTER. The drafting of the financial statement was the prerogative of the President of the
Board of Administrators, who could if necessary delegate the task.
APPROVER. The approval of the Final Balance was a prerogative of the Board. Following
approval, the financial statement had to be sent to the Municipality together with the annual
accounts, in order for the Municipality to carry out its role of supervisor.
REFERENCE PERIOD. The administrative year reflected the opera seasons at the time, which
began on 1st July of each year (n) and ended on 30th June of the following year (n+1). For example,
the financial statement dated 1931-32 was approved on 30.06.1932. In order to respect such timing,
some data was automatically presumed and therefore brought about inevitable accounting
superficiality.
DOCUMENTS: COMPONENTS, INTEGRATION, TOOLS. The accounting model of 1922-23 presented
some new elements with respect to the previous models and gave a modern nod to the future, which
can be seen in particular in the presence of multidimensional data, both accounting and statistical.
However, it bore obvious weaknesses. Firstly, it was a disorganised amalgam of too many
documents that were heterogeneous and uncoordinated. The quality of the data had one fundamental
fault: the “Economic Account” in actual fact was a simple Financial Statement containing
incomings and expenses; furthermore, the prolific lack of analysis of the data from ’22-23 to ‘30-31
14
determined a loss of precision and clarity in the already confusing data sheet. The financial
statement was also the shape of a confused data pyramid: both synthetic and analytical data were
exposed in one single section, and at times on the same level.
The accounting model of 1931-32 introduced substantial differences. This was the result of an
effort to rationalise the data: it had become apparent that the excess of disorganised information was
as bad as no information at all. The move went from more than twenty tools to just five: and the
“Economic Account” was no longer articulated in four sections, but became one single document,
integrated with detailed tables. Instead of the thirteen integrated documents three documentation
blocks were inserted: 1) the Sections and Statistical Data of the Theatre management; 2) the
Attachments to the Balance Sheet and 3) the Attachments to the “Economic Account”, the
predecessors to the present Additional Note. The basic structure of the account was redesigned in
order for it to go from an indistinct mass of documents to a more systematic structure of correlated
tools: the balance sheet was no longer the sum of many documents but rather one single balance
system. Subsequently, the confused pyramid built on numerous different levels within the same
document was substituted with one single synthetic data level in the main documents (Financial
Situation and “Economic Account”) and the transfer of the more analytical levels to the integrated
attachments.
However the 1931-32 model still had some weaknesses: whilst it had been improved, the
“Economic Account” was still a simple financial statement.
The comparison between the various balance sheets analysed, as presented below, focuses on
the character of the single sections.
FINANCIAL SITUATION
STRUCTURE. The financial situation (FS) from ’22-23 to 30-31 was structured according to
assets, liabilities and equities of the Body, articulated on two levels of data. The section “Deficit
w/plant” and the statement of the eventual financial statement deficits were inserted as a post note
15
to balance the Assets. The eventual profit for the year was added as post note to balance the
liabilities.
Even in the Financial Situation from ’31-32 to ’34-35, the structure reflected the Assets and
Liabilities on two informational levels, but no longer featured the Body’s Capital, following the
ownership transfer of the Theatre to the Municipality.
FORM. All the Financial Situations presented a form that was divided and compared in sections,
in order to allow for the immediate visualisation of situations in all their components of investment
and funding.
CONTENT. The Financial Situations from ’22-23 to ‘30-31and from ’31-32 to ‘34-35 can be
explained in the tables below.
CLASSIFICATION. The Financial Situations from 1922-23 to 1930-31 highlighted the contents as
according to the natural criteria. The first distinction was between the
LIABILITIES (or
ESTATE ASSETS AND
staple wealth) and FINANCIAL ASSETS AND LIABILITIES. The natural classification was
not sufficient in guaranteeing a clear structure of data and, in fact, it collapsed under the weight of
the added and confused sections from 1922-23 to 1929-30. The reduction it underwent in 1930-31
and the rationalisation of 1931-32 led to the elimination of all the more redundant data.
EVALUATION. The Financial Situations did not contain explicit or systematic indications on the
evaluation criteria that were used. Exceptionally, in the 1924-25 balance sheets the estate accessory
of “Casa dei Filodrammatici” was inserted for “the sum of the cost of its purchase”; furthermore,
complaints were made of the low level of analysis of the Real Assets: for example the Scenery,
whose value would have been of £1’200’000, had been totally depreciated in one year and featured
in the account under £1.
“ECONOMIC ACCOUNT”
STRUCTURE. Fore the purpose of this study we will begin with the general structure of the
“Economic Account” (EA), or with its statement sections, in order to conclude with the specific
structure, or the content of the items inserted.
16
General Structure: from 1921-22 to 1922-23, this was composed of four sections, which were
reduced to two from 1923-24 and until 1924-25. From 1925-26 until the end of this period (193435), the FR on 30.06n+1 became one single section.
Specific Structure: the EA from ’22-23 to ’30-31 were structured on 2 or 3 levels, based around
the additions and increased detail, with no organic structure to which one could refer. Within the
EA there were a number of detailed forms of specific items. The accounts from ’31-32 to ’34-35
were structured on one single level: the FR form was maintained on one synthetic level alone,
whilst the details were increasingly transferred to the Integrated Attachments. It went from one
extreme to another: from a disorganised structure on various levels, to a hermetic structure on one
level alone.
FORM. In the EA from ’22-23 to ’30-31, the numerous “Economic Sections” presented a
structure composed of divided sections set against each other, whilst the Detailed forms, inserted in
each section, had a more simple structure: divided by sections but not set side by side.
In the EA from ’31-32 to 34-35, the only “Economic Section” was divided by sections that
were set side by side, whilst the more systematic Attachments to the EA, moved to the Integrated
Documents had a more simple structure: by divided sections but not set side by side.
CONTENT. The EA was not a true Economic Account, containing costs and assets revealed
thanks to General Financial Accounting following the principles of double-entry bookkeeping; it
was rather a simple Financial Report¸ containing costs and incomings set up with Financial
Bookkeeping following the principles of single-entry bookkeeping, even if this was not always done
in the most simple way (as shown in the “Year Accounts” analysed). Therefore for the purposes of
this study, the term “Economic Account” is always used figuratively.
The subject studied in the accounting system used for the predisposition of the Financial
statement was composed of potential and actual financial flows. The EA was a hybrid document –
both because it used economical terms in place of financial competence, as well as because these
17
had not been identified at the same time but in different phases of the financial year (EXPENSES:
forecastÆliabilityÆpayment. INCOMINGS: forecastÆcost assessmentÆrevenue).
CLASSIFICATION. In the EA from ’22-23 to ’30-31, the synthetic Statements highlighted the
content in kind: on the first level, among the Expenses there were 4 generic cells, inside which
details of the incomings were inserted indiscriminately. The Detailed forms listed expenses and
incomings in kind as well as by destination (in other words per opera performed), exposing these in
absolute values (averages and totals) and in percentages, and compared with other financial years.
In the EA from ’31-32 to 34-35, the only Synthetic Statements highlighted the expenses in part
by destination and in part in kind, and the incomings were rather inserted in kind, delegating further
information to the Integrated Documents. The Attachments rationalised the confused list of items in
previous balance sheets, articulating the items on the first level of synthesis of the FR on a second,
third and at times even a fourth level of information, and subdivided the items in a homogeneous
according to kind.
EVALUATION. The EA determined the financial content partly according to the principle of
financial competence, partly according the criteria of funds.
5.2. The reports of 1936 - 46
The study of the balance sheets of La Scala from 1936 to 1946 was carried out using the
following documents:
•
The D.L. n.438 of 3rd February 1936 that was to be enforced on 4th June 1936;
•
The Financial statements of La Scala from 1935-36 to 1946-47.
In the time scale studied, the informational bookkeeping system underwent substantial changes,
in particular following the much-cited law of 1936. In the following years, the basic structure of the
balance became clearer, remaining faithful to a structure that, whilst being the fruit of fascist
actions, had the merit of reaching high levels of precision and explicative clarity. Once the fascist
regime had collapsed and with it the Governance model of the theatre, the Special Administrator
18
Antonio Ghiringhelli decided to maintain the structure of the financial statement, as proof that the
regime had achieved, as far as the balance sheet was concerned, a level of detail and articulation
that was extremely high.
Ghiringhelli immediately understood that the level of analysis reached, which at first had been
the basis for tight control by the Ministry, could now be used for the efficient running of the
Theatre’s management with the aim of re-launching artistic activities. This he achieved during the
years of his management.
From the observation of such empirical evidence, the decision was made to further explore the
Financial statement of 1935-36 and that of 1936-37, whose structure remains largely unchanged
until 1946-47.
There will be less comparison with respect to the scientific model used in the previous period
studied (from 1921 to 1935). Therefore, for coherence we will firstly tackle the general aspects of
contextualisation, in order to then analyse the character of the synthetic statement.
REGULATORY FRAMEWORK. The balance sheets of the period in question referred to the
Commercial Code from 1882 to 1942, when the Civil Code was then enforced. The new discipline,
whilst having made many steps forward with respect to the previous dictates, still left room for
criticism.
DRAFTER. During the period investigated, the drafting of the Financial statement was a
prerogative of the Supervisor. From 1945 to 1947 this was carried out by the Special Administrator.
APPROVER. From 1936 to 1944 the financial statements had to be specifically approved by the
Board of Administrators who, once the balance sheets were approved, had to send them on to the
Ministry for Press and Propaganda (that then became the Ministry for Popular Culture) and to the
Municipality of Milan. Despite the superior competence of the Ministry, the Ministry preserved a
form of control on the management of the Body.
REFERENCE PERIOD. The administrative year, as with the previous period, began on 1st July of
each year and ended on 30th June of the following year. The Opera season opened on the day of St.
19
Stephen, 26th December; it was only from 1951 onwards that the opening night was moved to 7th
December, on the feast day of St. Ambrogio, in order to meet the needs of Milan’s citizens who
preferred to pass the holiday season outside the city.
APPROVAL TIME. As far as the approval time of the financial statement during this period, we
have been unable to find any data regarding this. From the assessment of the balance sheets
available, we can deduce that the Committee met for the approval of the final balance in SeptemberOctober; only the statement for 1940-1941 was approved in July and that of 1941-42 in November.
DOCUMENTS: COMPONENTS, INTEGRATIVE,
TOOLS.
The balance sheet for 1935-36 had not yet
been affected by the changes following the R.D. n.468 in 1936 that was enforced in June of that
same year, at the same time as the presentation of the balance of the season just passed. The file was
composed of:
•
the Auditors’ Report;
•
the Councillor Delegated for Direction’s report;
•
the Financial Situation
•
the Final Balance
•
statements and statistical notes.
The first two, in other words the Auditors’ Report and that of the Managing Director, can
without a doubt be considered instrumental documents; the Balance Sheet and the Final Balance
made up the heart of the bookkeeping data. The first was a report on the Financial Situation as of
30th June 1936, in which the incomings and liabilities were illustrated, at first synthetically, and
then, thanks to the attachments, it was possible to study them in more detail. The second, or the
Final Balance, was a simple final financial balance containing incomings and outgoings.
From the 1936 season, to the dawn following the revolution brought about by the Royal Charter
often mentioned above, the balance sheet began to assume a different structure, which preserved
some points that we will highlight below. It is certainly difficult not to notice greater sense and
20
clarity in the reports, based on the presence of an initial index where the items were recorded with
the corresponding pages.
The file was composed as follows:
•
auditors’ Report
•
supervisor’s Report (articulated in sub-paragraphs)
•
financial situation
•
final Balance (subdivided into: opera season, May Concerts season, artistic tour in Germany,
Theatrical Saturdays, final balance of the Financial Year XV).
•
statements and relative statistical data.
This composition was maintained by the then Special Administrator Ghiringhelli even after the
Fascist regime collapsed.
“FINANCIAL SITUATION”
STRUCTURE. The Financial Situation for the year 1935-36 is structured according to assets,
liabilities and equities on two informational levels. At the bottom of the Assets is the eventual loss
for the year and the amount carried over. At the bottom of the liabilities is the eventual profit for the
year and the amount carried over. In the following years there are no other changes to the structure
of the sheet except for the addition of certain specific items that will be described in the paragraph
relative to the content below.
FORM. For all the years covered during the era studied, the form does not change and presents
as divided and countering sections aimed at allowing for an immediate comparison between the
uses of the capital and relative sources of funding.
CONTENT. The Financial Situation from 1935-36 to 1946-47 highlighted the assets and
liabilities.
CLASSIFICATION. In each financial situation of the period studied, the main difference is
between the Assets and Liabilities. Within each of these two macro-aggregates the items were
distinguished by kind.
21
EVALUATION. With regards to the criteria for evaluation used there are no particular indications
that can be highlighted from the financial statements analysed. In the Economic Account for 193738, the item “Warehouse for Deposit of Materials” was added, but there are no indications with
regards to the evaluation parameters. The reason for this is explained in the Auditors’ Report: “As
far as the activities, please note the introduction of a new item “Warehouse for Deposit of
Material” for £170’280.10. The current increase in prices has influenced the Supervisor to proceed
to the acquisition of goods to be used in the following year and this will draw an important profit”.
This would suggest an evaluation of the cost of purchase.
“FINAL BALANCE”
STRUCTURE. The Financial statement in 1935-36 was structured according to “Expenses and
Losses” and “Incomings and Profit”, the operating surplus was inserted to total either the expenses
or of the incomings. A tool for this statement was a table for comparing the Final Balance of 193536 and 1934-35. The balance closed with the attachments in which details of the expenses and
incomings were highlighted:
•
details general expenses;
•
details management expenses: personnel and material;
•
details of depreciation 100%;
•
various losses;
•
Theatre profit;
•
contributions;
•
provisions for differing concessions.
From 1936-37 the section dedicated to the final balance was articulated as follows:
• FINAL BALANCE
o Opera Season;
o May Concerts Season;
22
o German artistic tour;
o Theatrical Saturdays;
o General Final Balance of the year.
First there was the drafting of the final balance “in detail”, for example if referring to the Opera
Season, then the results gathered from this particular item were brought over to the general balance
that summarised the results of all the activities carried out by the Theatre during the period
considered. The more analytical Final Balances were structured in “Expenses and Losses” and
“Incomings and Profits”. A table to compare the balance of the two consecutive years was inserted
as a tool for the balance for the Opera Season, as well as – from 1936-37 – the balance of the year
in closure.
The General Balance preserved the structure set up in 1935-36, but unfortunately lost the
instructions for greater detail that were provided in the more analytical balances described above
from that same year. This document, therefore, was a simple list of the totals of incomings and
expenses that had been covered in more detail in the pervious statements. The Final Balance flowed
as the final result into the Summary Account, in which on one side the “Profits” and on the other the
“Losses and Provisions” were highlighted.
FORM. The Final Accounts from 1935-36 to 1946-47 presented a form with divided and
contrasting sections, both for the General accounts as for the more detailed ones. The Detailed
Forms of the incomings and expenses, however, were simpler: they were structured as tables that
were divided by sections but that were not contrasting.
CONTENT. From 1935-36 to 1946-47 there are no further references to an “Economic Account”
but rather to a “Final Balance”. Despite the change in its name, the document remained a financial
report of sorts (expenses and incomings), apparently modified by the presence of items that were
only formally economic in nature, and were purely financial items.
From reading the Auditors’ Reports of the period concerned, reference to the “receipt of
incomings” and “mandates for expenses” is often repeated, referring to documents that are
23
fundamental accounting tools for public administrations. To quote one, taken from a section of the
Auditors’ Report from the balance sheet of the year 1937-38: “The bookkeeping reviewed by us,
[…] is often controlled by us with periodic checks of the funds, in order to allow us to examine the
receipts of all incomings and to be aware of the mandates for expenses in the corresponding items
in the balance.” 13
Expressions of this kind only confirm the conviction that the accounting system of the Theatre
was still based on principles of financial accounting. This conclusion is supported by the analysis of
the accounting daybooks that were predisposed each year. In each of these there is a rather
disorganised list of financial incomings and outgoings, in which the heading of the columns for
DEBIT and CREDIT had nothing to do with double-entry bookkeeping methods.
CLASSIFICATION. In the 1935-36 financial statement the incomings and outgoings were exposed
in part by destination and in part by kind. Among the Expenses was one cell per destination
(management area of the Theatre): expenses relative to the Dance School. In the criteria of benefits
in kind we can, however, include: expenses for personnel and materials management, paying off of
Materials and Plants, Restoration of scenery destroyed during the fire at the Royal Theatre in Turin,
Reorganisation costumes. At the bottom we have two hybrid accounting cells: Various Losses and
Deficit May Concert Season.
From 1936-37, the general balance sheet included the incomings and outgoings in a way that
was no longer analytical but more synthetic, with totals of the balances in detail: therefore the
criteria used was only by destination, in ideally identifying the management areas of the Theatre in:
•
Opera Season;
•
May Concerts;
•
Symphonic Spring and Autumn Concerts;
•
Theatrical Saturdays;
•
Artistic tour of Germany.
24
Within each balance sheet the predominant criteria was that of benefits in kind, with the
exception of the balance for the Opera season, in which the criteria by destination was not relevant
only in the case of the expenses of the Dance School.
EVALUATION. The Final Balance at the time observed determined its financial content partly on
the principles of juridical and financial competence (Appropriation and income guarantees in the
most juridically correct hypothesis, simple payment and receipt forecast in other cases), in part on
the criteria of funds (payment and effective revenue).
6. The support of the Financial statement to governance models.
This paragraph will evaluate if the accounting system used in the two sub-periods was efficient
in providing support to the governing bodies.
6.1. 1921-35
From ’22-23 to 30-31, the balance sheet was barely adequate: it was too complex and
disorganised, with a consequent output of data that was quantitatively excessive as well as
qualitatively unable to support the decision-making bodies of such an important institution.
From ’31-32 to 34-35, the financial statement was rationalised and became efficient enough in
supporting the renewed governance model. The structure of the Economic Account was redesigned
ex-novo, so that it became an accounting system rather than a confused mass of documents. There
was a move from a blurry pyramid of information within the same document, to the addition of the
more synthetic levels within the main document and to the shifting of the more analytical levels to
the Integrated Attachments: the synthetic data, of bookkeeping nature and created for immediate
assessment, were useful to the Board of Administrators and for strategic decision-making; the
analytical data, of non-bookkeeping or statistical nature and created on various observation levels,
were useful to the Board for managerial decision-making.
25
6.2. 1936-46
In 1935-36, whilst having benefited from the developments of the previous period, the financial
statement was still suffering from a lack of organisation. In particular as far as the Final Account
was concerned, the level of data was still too analytical and did not allow for a quick glance at the
data in order to elaborate an immediate comparison that could support the Board of Administrators
in its strategic decision making.
It was only in 1936-37 that the balance sheet as a whole achieved a high level of transparency.
All the more detailed data was gathered in the attached documents, and both the financial situation
and the final account summarised the synthetic data of accounting nature, which allowed for a quick
comparison. The more detailed data was listed in the Auditors’ Reports and that of the Supervisor,
as well as the statistical prospects attached that were added at the end of the file.
As far as the data tolls exposed in the Auditors’ Report and in the Statistical Prospects, we feel
it is important to underline that these were a little thin from the year 1942-43, the year of the
bombings which damaged the Theatre. In that period the efforts of the Special Administrator
Ghiringhelli were put in resuscitating the Institution and for this reason perhaps a concentration of
effort and care in providing detailed data at such an historic time might have seemed rather
superfluous.
7) Comparison of the historical periods studied.
Following the detailed analyses above, we believe it is useful to outline below a schematic
comparison of the periods studied in order to conclude with the main causes for the trends
highlighted.
•
Until the Financial statement of 1929/30 the Board of Administrators made its decisions on
the basis of a indistinct mass of heterogeneous documents that were not inter-coordinated:
these documents were characterised by their complexity, their number, the confusion
between synthesis and data analysis and their disorganisation.
26
•
From the 1931-32 financial statement to the 1939-40 balance sheet there was an
informational rationalisation that brought about the creation of a true “accounting system”,
distinguished by greater simplicity, a drastic reduction of the number of documents and the
subdivision of data synthesis (used for strategic decision-making) and data analysis (valid
for managerial decisions), as well as by the order between the documents and the data
contained within.
•
From the 1939-40 financial statement to the 1945-46 balance sheet (the temporal limit for
this study) there was an informational involution with respect to the high level achieved up
to the 1939-40 statement. The Accounting System became excessively impenetrable, with a
consequent worsening of the data to support the decision-making bodies: the high level of
more systematic and clearer documents and informational simplification were contrasted by
a spasmodic quest for the essential, which made it highly cryptic, both with reference to the
synthetic data for strategic decision-making as well as the analytical data for managerial
decisions.
The parabolic trend of the level of information on the operating balance of the Teatro alla Scala in
the period from 1921-1946 consequentially determined a parabolic trend in the level of support
provided to the governance models in force at the time.
• In the period from 1921-1931, the indistinct and disorganised mass of heterogeneous
documents that were also uncoordinated provided a low level of support to the Board of
Administrators in their decision-making processes.
• From 1931 to 1935 the “accounting system” was the fruit of the rationalisation of the data
and provided sufficient support to the Board of Administrators both in their strategic
decision-making (thanks to the useful level of synthesis in the financial statement), as well
as their acquisition of managerial data (by virtue of the level of analysis of the integrated
and instrumental documents).
27
• From 1936 to 1946 it is important to distinguish between two sub-periods: until 1940 an
adequate level of support to the Board of Administrators was preserved, thanks to the fact
that the level of data acquired in the previous period was maintained; from 1941 onwards,
however, the search for the simplification of the “Accounting System” was taken to an
extreme, thus making the data cryptic not only in the synthetic reports, but also in the
integrated and instrumental documents that should have been more analytical in order to aid
the authorities in their managerial decision-making. Therefore, the level of informational
support to the Special Administrator was reduced for the managerial decisions and,
automatically, also for the strategic decision-making.
8) Discussion and concluding remarks
In an attempt to provide a useful contribution to this scientific debate, which can be compared
to other historical studies in the field of business administration, as revealed by Carnegie and Napier
(1996), this study has attempted to tackle the “thorny” issue of the role of accounting in specific
public administration institutions.
In the light of the reflections above, we can conclude that the function of the financial statement
for the Teatro alla Scala in supporting the governance models in place from 1921 to 1946 followed
a trend that can be defined as “parabolic”.
In more explicit terms: it is possible to identify a sub-period, from 1921 to 1941, in which the
support of the accounting data to the authorities in place registered a slight improvement, which
then worsened and weakened from 1941 onwards.
Specifically, the financial statement of 1921 was extremely disorganised, and consequently
there was a yearly conquest of greater clarity, which reached a high level of transparency in the
main documents. At the same time there was greater analysis of the attached documents (of
Integration and tools), in particular in the case of the accounting system of 1939-40. From the
28
following balance sheet onwards (1940-41), the accounting data were no longer integrated with
detail and care and inputted in a precise and punctual manner as before. Such tendencies became
evident in the financial statement for the season 1942-43, the year of the disastrous bombings of the
Theatre and, under the management of the special administrator Ghiringhelli, importance was
placed on the difficult act of restoring the artistic activities of the Theatre that had been abruptly
interrupted by the War.
To summarise, from the studies carried out we can clearly note how the accounting informational
system was then as now the main tool for exercising some “power” in the field of financial
organisations (BERTINI U., 1978). By doctrine, many scholars have highlighted the role of the
accounting plants in the context of various institutions (ROBERT & SCAPENS, 1985; MACINTOSH &
SCAPENS, 1991; CATTURI & RICCABONI 2001; BUSCO et al. 2002; GIANNINI A., PIEROTTI M., 2006).
This link between informational tool and power is even stronger if one considers the
political scenario upon which our study is based.
In fact, the parabolic trend mentioned above can be linked to the growing need for
information that came from the Corporative state. It was impossible to send data that was
disorganised and unclear to a Regime that was so conscious of the influence of institutions such as
the Theatre, and which created the role of Inspectorate for the Theatre in 1935. From the same
Regime emerged the need for an accounting system that was precise, well organised and which
remained largely untouched until 1939-40 (please refer to HOPWOOD A. G., 1983).
In the ‘30’s, a subject that animated the debates of business administration scholars was that
of the “social” function of institutions and companies, that which has been defined in many reports
at the time as the “corporative company” (CINQUINI, L., 2007).
The corporate institutions in the Fascist State did not carry out a private function alone, but
was also in the hands of the people since it was meant to satisfy the needs of everyone. Therefore, it
was all the more important that a “Theatre Company” respond to this concept of “sociality”
(BIONDI, M. – BORSOTTI, A. 1996, ANTONUCCI, G. 1996).
29
The framework that emerges from a quick overview of the contribution to our field at the
time is undoubtedly that of an influence of corporativism on a theoretical level. In particular,
sociality and subordination to national interest was especially felt (GIOVANNINI P., 1935,
SANTARELLI A., 1935).
In this context the function of accounting – in other words of book-keeping and statistical
analysis – took on an even greater importance since their work was indispensable to the discipline
of corporate activities (PALUMBO, P., 1939, BELLAVISTA, R., 1936). In 1938, Trovati expressed
himself in the following terms whilst referring to the functions of accounting techniques: “ […] it is
of indispensable help for the solution of many problems faced by corporative economics and in
particular those which regard the breakdown of costs, their cuts and their control, perfecting
production and finally the problems faced between costs and the State (fiscal system)” (TROVATI A.
, 1938, pag. 171).
In this scientific context the reports of the Teatro alla Scala could not have any defects or
mistakes of any kind, considering it was a social institution to which the Regime had attributed a
primary position amongst similar organisations. This meant that the documents reached a level of
detail and transparency that had never been achieved before.
In the following years, the upheaval of the political situation and therefore the sudden
absence of control that had been imposed until then, provoked the progressive impoverishment of
the synthetic documents, until the financial statements became “cryptic” such as that of 1942-43.
Even in the instrumental documents the data were synthesised to such an extent that it became
unapproachable, and ended up weakening the informational system in its entirety and, by
consequence, the level of support to the governance models at the time.
The informational parable above in our opinion highlights the passage from an excess of
analysis to an excess of synthesis of the data made available to the decision-making authorities of
the “Teatro alla Scala”. This was not only the result of the mutated need for control on behalf of the
30
“powers that be” at the time, but also and above all the origin of the inadequacy of the annual
financial statements in supporting the strategic and managerial decision-making for future seasons.
31
Notes
1
Data from the website www.teatroallascala.org.
The opera in 1745, by Dal Re, reproduced the gothic church of Santa Maria alla Scala. Source: www.storiadimilano.it.
3
The juridical transformation was carried following the Law n. 549/1995 and the D.Lgs. 367/1996.
4
The founders by right are the State, the Lombardia Region, the Province, the Municipality and the CCIAA of Milan.
5
The Founders were those who put forward a contribution that was no less than € 520.000 (Ordinary) and € 5.200.000 (Permanent).
6
For the paragraph we referred to the documents reproduced in AA.VV, L’ordinamento giuridico del Teatro alla Scala. Raccolta di
leggi, decreti, atti, regolamenti e progetti, E.A. TEATRO ALLA SCALA, Milano, 1963, pagg. XIII-XXVII, and pagg. 1-152.
7
The transfer of ownership from the Municipality and the Palchettisti to the Autonomous Body at the end of the 9 years, as foreseen
in the 1920 convention, never happened; therefore from the concentration of ownership in the hands of the Municipality in effect the
only absences were the private boxes and the new ownerships acquired directly from the Autonomous Body.
8
The expropriation was financed with a loan of £ 10.000.000 contracted with the CARIPLO BANK.
9
Please refer to the Statutes and the Administrative Regulations as reproduced in AA.VV, L’ordinamento giuridico del Teatro alla
Scala, op. cit., pagg. 68-71, 101-104, 144-145, 149-152.
10
The data is taken from the Statutes and the Administrative Regulations reproduced in AA.VV, L’ordinamento giuridico del Teatro
alla Scala, op. cit., pagg. 68-71, 101-104, 144-145, 149-152, both from the financial statements of the Autonomous Body relative to the
period from 1922 to 1935, excluding the Financial statements of 1921-22 and 29-30, since they no longer exists in the archives.
11
Cfr. AA.VV, L’ordinamento giuridico del Teatro alla Scala.op.cit. pag. XXVI.
12
For the whole paragraph we referred to the Statutes and Administrative Regulations reproduced in AA.VV, L’ordinamento
giuridico del Teatro alla Scala, op. cit., pagg. 153-160; 169-175.
13
Report of Auditor to Financial statement of 1937-38, pag. 22.
2
32
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34
Appendix
APPENDIX
Table n. 1 Ownership, management and funding of “La Scala” from 1921 to 1935
From
1921
to 1931
From
1931
to 1935
OWNERSHIP
Co-ownership
- Public (Municipality)
-Public (Autonomous Body
of Teatro alla Scala)
- Private (Palchettisti)
MANAGEMENT
Autonomous Body of
Teatro alla Scala in
Milan
(trial 9 years)
Total
Public Ownership
(Municipality of Milan)
Autonomous Body of
Teatro alla Scala in
Milan
FUNDING
• Partially public from state: from treasury rights on the bets and performances from Province
of Milan + Additional 2% ad hoc.
• Partially public from municipality: contributions and other municipal funds.
• Partially from market: income from boxes+season income+eventual management residue
• Partially from freedom: oblations and donations and inheritance.
Expenses covered both of investments as of management
• Partially public from state: from treasury rights on the bets and performances from Province
of Milan + Additional 2% ad hoc.
• Partially public from other Public Administrations: contributions and other funding from
State, Province, Provincial Council for Economy, other public bodies.
• Partially public from municipality: contributions and other municipal funds
• Partially from market: income from boxes+seasonal income+other income from the Body’s
artistic activities+income from collateral estates and accessories+eventual management residue.
• Partially from freedom: oblations and donations and inheritance.
• Partially private: funding from private institutions
• Partially from banks: loans from Cassa di Risparmio delle Province Lombarde
Expenses covered both of investments as of management
From 1936 to 1946
Table n. 2 Ownership, Management and Funding of the Teatro alla Scala from 1936 to 1946
OWNERSHIP
Totally Public Property
(Municipality of Milan)
MANAGEMENT
Autonomous Body of
the Teatro alla Scala
in Milan
FUNDING
• Totally Public:
from treasury rights on bets and performances in the Province of Milan + additional 2% ad hoc;
o from the Ministry for Popular Culture, in variable measures and depending on the
financial situation of the balance;
o from the Provincial Administration, this too was not fixed and was tied to the financial
trends;
o from the Municipality of Milan, in the form of contributions or funding..
• only after 1943, at the end of the rebuilding of the Theatre damaged by the bombings, were
these accompanied by private benefactors, who had been completely absent during the
Fascist period.
35
Appendix
Figure n.1. Organisational structure from 1921 to 1931
MANAGING
DIRECTOR
Nominated by the CdA
Board of
Administrators (CdA)
Auditors
2 members nominated
by the Board of
Administrators
Members nominated by the
Municipal Council
and by the sposnsor
President CdA
nominated by the
Municipal Council in
Milan
Secretary CdA
nominated by the
Board of
Administrators
Powers
Constitution
and
Composition
Administrative
Offices
Technical Office
Scenery
Services
AUTONOMOUS MORAL BODY OF LA SCALA IN MILAN
STATUTES OF 1921 (15 ARTICLES) AND ADMINISTRATIVE REGULATIONS OF 1922, REVIEWED IN 1925
Board of Administrators (CdA)
President CdA
Secretary CdA
[Statutes Artt. 5, 6, 7, 8, 12, 13, 14, 15]
[Statutes Artt. 9, 10, 12, 15]
[Statutes Art. 11]
[Regulations Artt. 1 e 3]
[Regulations. Art. 2]
• 9 members, including President
• nominated by the Municipal
• nominated by the Board of
Council in Milan
Administrators
• first CdA constituted by Executive Commission
• for each successive CdA: nominations: 2 members from
Ministry; President and 4 members from Municipal Council;
2 from the Palchettisti; 2 from Benefactors
• after the first 9 years of trial, it was foreseen that 9
members of the Municipal Council be integrally nominated.
• powers of ordinary and extraordinary administration
• legal representative of the
• convocation of CdA, upon order
Body by law and to third parties from President
• deliberation on the theatrical seasons
• convocation and presidency
• compilation and diffusion of
• appointing of artistic, technical and administrative
of Board
Agenda of Meetings of CdA.
personnel
• predisposition of financial
• writing up of minutes of meetings
• conservation of heritage
statement
held by CdA.
• definition of Organisational Structure of Theatre
• overseeing of execution of
• execution of deliberations of
• authorisation of President as having power of authority
deliberated acts
CdA pertaining to him
• predisposition of Forecast Financial statement
• emergency deliberations
• management of correspondence
• approving of Final Financial statement, predisposed by
• legal consultation
President and Managing Director
• nomination and revocation of Managing Directors
• nomination of Secretary and his annual salary
• nomination of 2 Auditors from outside Board and
definition of annual emolument.
36
Auditors
[Regulations Art. 4]
• 2 members nominated
by the Board of
Administrators
• review of Budget
• review of Financial
statement
Appendix
Figure n.2 Organisational structure from 1931 to 1936
Director of Theatre
nominated by CdA
Board of Administrators (CdA)
Executive Commission
Or Managing Director
Nominated by the Board
assistance to the Director of the Theatre
Members nominated by the Municipal Council
and by the sposnsor
President CdA
Secretary CdA
nominated by the Board
of Administrators
nominated by the Municipal
Council in Milan
Auditors
2 members nominated by
the Board of
Administrators
Administrative
Offices
Powers
Constitution and Composition
Board of Administrators (CdA)
Technical Office
AUTONOMOUS MORAL BODY OF LA SCALA IN MILAN
STATUTES OF 1931 MODIFIED IN 1934
Executive Commission President CdA
Or Managing Director
Scenery Services
Secretary CdA
• 11 members, including President (from Statutes of 1931).
Nominations: 6 members from Podestà of Milan; 1 from Ministry
of National Education; 1 from Benefactors, 1 from Ministry of
Corporations as representative of National Fascist Syndicate of
Musicians, 1 from President of Province of Milan, 1 from
Provincial Council for Economy of Milan (the last 2 only with
continued contributions) Æ 8 members, including the President
(in Statutes of 1934).
• nominated by • nominated by CdA
• executive
of
Commission:
2 head
members (of which one Government
among those designated
by Municipal Council)
+ President of CdA (in
statutes of 1931)Æ in
alternative to Executive
Commission, managing
director (in Statutes of
1934)
• powers of ordinary and extraordinary administration
• definition of annual periods of activity
• approval of programmes from each theatrical season
• approval of Final Financial statement, predisposed by
President and Managing Director
• authorisation of President as having power of authority
• nomination of Director of Theatre and technical and
administrative personnel (in statutes of 1931) Æ Nomination of
Managing Personnel and technical and administrative
personnel (In statutes of 1934)
• nomination and renewal of 2 members of Executive
Commission (in Statutes of 1931 and 1934) Æ Nomination of
Managing Director, in alternative to Executive Commission (in
Statutes of 1934)
• executive
Commission: assistance
to the Director of the
Theatre; carrying out of
tasks given by CdA,
urgent
and
extraordinary
37
Director of
Theatre
Auditors
• nominated • 1 or +
by CdA
members,
nominated
by CdA (in
Statutes of
1931). Æ 3
members
nominated
by CdA, of
which one
from
benefactors
(in Statutes
of 1934)
• nomination of • convocation of CdA, by • Pariticipati • Review
Vice President
on at CdA with of Budget
order of the President
• legal
• writing up of minutes of advisory vote • Review
representation of minutes of CdA meetings
of Financial
Body by law and
statement
for third parties
Appendix
Figure n. 3 Organisational structure from 1936 to 1946
President
Milan Podestà
Supervisor
Nominated by Ministry for
Popular Culture
Administrative Offices
Technical Office
Scenery Services
Direction Committee
President
Auditors
• Milan Podestà
• Nominated by Ministry for • Supervisor;
Popular Culture
• Three representatives from Municipality;
• President of the Theatre Museum of La Scala;
• One representative of the syndicate organisation of musicians
that was legally recognised and competent on the territory;
• One representative of the National Fascist Federation of
Industrialists of the Arts;
• One representative of the National Fascist Federation of
Workers of the Arts;
• Representative of Body by
law and to third parties
• Convokes the Board of
Administrators each time it is
demeed necessary.
• Subjects
all
acts
of • examination and approval of financial statements and final • Oversee
management
administration and management balance;
bookkeeping
of the Theatre managed by the • approval of artistic programme for future season
Body to the President for his
approval.
Constitution and
Composition
Powers
AUTONOMOUS BODY OF LA SCALA IN MILAN
1936- 1946
Supervisor
Direction Committee
Auditors
38
• Two appointed by
Prefect;
• One by Podestà
All subject to approval by
Ministry for Popular
Culture
of
the
the
Appendix
Figure n. 4:Estate assets of financial situation of 1931-32
39
Appendix
Figure n. 5 Liabilities of financial situation of 1931-32
40
Appendix
Figure n. 6 Incomings of Economic Account of 1931-32
41
Appendix
Figure n. 7 Costs of Economic Account of 1931-32
42
Appendix
Figure n.8 Estate assets of financial situation of 1938-39
43
Appendix
Figure n.9 Liabilities of Financial statement of 1938-39
44
Appendix
Figure n.10 Incomings and profit of Final balance of 1938-39
45
Appendix
Figure n.11 Expenses and Losses of Final Balance of 1938- 1939
46