<P><U>The Mandate</U></P>
<P>Having been located in various ministries in recent years, the division entrusted with arts grants has been residing&nbsp;as Division II with the Federal Chancellery since February 1997, due to government regulation.</P>
<P>The typical activities of the 'Kunstsektion', and the major portion of its workload, consist in providing subsidies, grants and scholarships designed to support contemporary Austrian artists and to enhance their presence abroad.&nbsp; In conformity with the Arts Funding Act (Kunstförderungsgeetz), the available funds are allocated to projects in the fields of fine arts, architecture, fashion and design, music and performing arts, photography, film and media, literature, publishing and translation,&nbsp;regional cultural initiatives, professional arts, visual arts and crafts, cultural animation, museums and galleries, archives, training of artists and/or cultural workers, cultural industries, and&nbsp;media and multi-media arts.</P>
<P>The Council</P>
<UL>
<LI>Provides financial support to arts/cultural organisations
<LI>Provides financial support to individuals in the arts/culture
<LI>Advises the national government on matters related to arts/culture
<LI>Has responsibility for government legislation related to the arts/culture
<LI>Develops national arts/cultural policies
<LI>Implements national arts/cultural polices
<LI>Evaluates national arts/cultural policies
<LI>Conducts research in the arts/culture
<LI>Promotes public understanding and appreciation of the arts/culture
<LI>Has lead responsibility at the national level for coordinating international cultural relations and exchanges
<LI>Has responsibility for copyright and intellectual property matters
<LI>Organises and manages cultural activities or events
<LI>Manages cultural facilities or venues
<LI>Arranges tax benefits for contribution to the arts/culture
<LI>Awards prizes/honours in the arts/culture
<LI>Provides training and professional development in artistic/cultural fields.</LI></UL>
<P><U>The Staff</U></P>
<P>The organisation has 69 members of staff who are public servants.&nbsp;&nbsp;The staff who have direct program responsibilities (those who manage programs of support to organisations and/or individuals) come from the field.</P>
<P><U>Budget and Revenue Sources</U></P>
<P>Funds channelled through the Federal Chancellery&nbsp;amounted to roughly €220m in 2003, with around €140m earmarked for the four major operas and theatres in Vienna and €80m allocated under the political responsibility of the State Secretary for the Arts and Media.&nbsp; The government contributes 100% of the organisational budget.&nbsp; In the last five years the organisations funding from government has decreased.</P>
<P><U>Programs of Financial Support for the Arts/Cutlural Community</U></P>
<P align=left><SPAN>The Council provides financial support to organisations and individuals, and it provides financial support to lower levels of government. Most of its programs are organised by discipline or sector. </SPAN></P>
<P align=left><SPAN>The funds can be used for</SPAN></P>
<UL>
<LI>
<DIV align=left><SPAN>Creation</SPAN></DIV>
<LI>
<DIV align=left><SPAN>Research and development</SPAN></DIV>
<LI>
<DIV align=left><SPAN>Production, presentation and exhibition</SPAN></DIV>
<LI>
<DIV align=left><SPAN>Publication</SPAN></DIV>
<LI>
<DIV align=left><SPAN>Organisational operations</SPAN></DIV>
<LI>
<DIV align=left><SPAN>Conservation and Preservation</SPAN></DIV>
<LI>
<DIV align=left><SPAN>Capital expenses (new buildings, renovations, etc)</SPAN></DIV></LI></UL>
<P align=left><SPAN>Program funds cannot be used for </SPAN></P>
<UL>
<LI>
<DIV align=left><SPAN>Amateur arts</SPAN></DIV>
<LI>
<DIV align=left><SPAN>Other public bodies</SPAN></DIV></LI></UL>
<P align=left><SPAN><U>Assessment of Applications for Financial Support</U></SPAN></P>
<P align=left><SPAN>Funding is provided on the basis of applications submitted to one of the Division's eight departments.&nbsp; A number of panels of experts from the various disciplines are appointed by the State Secretary to assist the administrators in the project evaluation and funding process, with the ultimate decision being taken by the responsible political leaders.&nbsp; The panel members serve for a term of approximately three years and follow rules regarding conflicts of interest.&nbsp; The assessors must not be involved in the projects they are considering.</SPAN></P>
<P align=left><SPAN><U>Greatest Current Challenge</U></SPAN></P>
<P align=left><SPAN>Coping with the contradiction of a decrease in public fundsfor culture and an increase of demand for more money from the cultural sector.</SPAN></P>
<P align=left><SPAN><U>Greatest Current Strength</U></SPAN></P>
<P align=left><SPAN>In comparison to other countries funds for culture are still relatively high, even though they are continuously decreasing.</SPAN></P>
<P align=left><SPAN></SPAN>&nbsp;</P>
<P><BR>&nbsp;</P>