The Australia Council for the Arts has been "responsive and resilient" in an extraordinary year that saw its budget cut by $110 million across four years, largely to support an alternative funding platform, the National Program for Excellence in the Arts. 
The agency's annual report for 2014-15 covers a period in which a new strategic plan and grants program were unveiled, followed by the federal government's surprise move in the   May budget to redirect funding to the NPEA.
"We have come to embody the same type of resilience as the sector itself, demonstrating our capacity to transform to ensure that our own expectations, and those of our communities of interest, are well served in every circumstance," writes chairman Rupert Myer.
The Australia Council's allocation from the federal government in 2014-15 was $211.7 million, reduced from $218.8m the previous year. Total grants were worth $191.5m, of which $106m was for major performing arts companies, $23m for key organisations and $33.7m for other grants. Staff salaries amounted to $12m, or 5.4 per cent of expenditure.
The report shows artists and organisations supported by the Australia Council reached a combined audience of 17.7 million people. About 8855 new Australian artworks were supported with grants worth $9m.
The refurbished grants model came into play last   January, which streamlined more than 140 grant categories to five, and simplified the criteria and application dates. The first funding round that closed in   March received 1700 applications, plus another 500 applications for the proposed six-year funding program (now revised to four years). Grants announced in that round were worth a combined $9.1m, with $3.1m awarded to individuals and $4.6m to organisations.
Among the successful grants, 20 per cent were first-time applicants to the Australia Council.
The report is the first to measure the Australia Council's activities against the objectives stated in its strategic plan to encourage a culturally ambitious nation. However, the full impact of the budget cuts, which reduced the Australia Council's allocation to $184.5m this year, will not be known until future grant rounds are published.Among the savings are a reduction in the number of grant rounds offered each year, a revised four-year funding program for arts organisations, and the cancellation of programs such as the Creative Communities Partnership Initiative ($4m) and the Artstart grant for emerging artists ($1.9m).