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National Museum, Bloemfontein

Presentation to the Parliamentary Portfolio

Committee on Arts & Culture Wednesday, 24 August 2011

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National Museum, Bloemfontein1. Overview of the National Museum

a. Legislative mandateb. Vision and Missionc. Governance & Organisational structuresd. Main complex & satellite museums

2. Strategic objectives 2009/20103. Annual Report 2009/2010

a. Internal controls (Internal Audit & Risk Assessment)

b. Financial overview (Budget 2009/10, AFS, Audit Report)

c. Human Resource Management4. Successes / Highlights / Challenges

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Overview of the National Museum

• Legislative mandate

– The National Museum is a Declared Cultural Institution in terms of section 3 of the Cultural Institutions Act (Act 119 of 1998), resorting under the National Department of Arts and Culture (DAC)

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• Legislative mandate

– The National Museum is a Schedule 3A public entity in terms of the Public Finance Management Act (Act 1 of 1999)

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• Vision– To be known as the best heritage

centre in Africa

• Mission– To provide heritage information and an

enjoyable experience to all people through quality research, conservation, education and exhibitions

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• Governance structure

COUNCIL COMMITTEES

AUDIT COMMITTEE

Ad hoc COMMITTEE(S)

CORE BUSINESS

DAC

COUNCIL

MANAGEMENT

SUPPORTSERVICES

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• Operational structure

MANAGEMENTMANAGEMENT

AdministrativeSupportServices

Education & Information

Services

Research &Collections

TechnicalServices

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Overview of the National Museum• Main complex & satellites

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• Satellites: Oliewenhuis Art Museum

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• Satellites: Oliewenhuis Art Museum

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• Satellites: Freshford House Museum

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• Satellites: Florisbad Research Station

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• Satellites: First Raadsaal & Wagon Museums

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The National Museum performs its conservation, research and

educational functions in a broad spectrum of disciplines in the

Natural Sciences, Human Sciencesand Visual Arts.

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• Natural Sciences (9 departments)

– Acarology– Arachnology– Botany– Entomology– Herpetology

– Mammalogy– Ornithology– Karoo Palaeontology– Florisbad Quaternary

Research

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• Human Sciences & Visual Arts(5 departments)

– Anthropology– Archaeology– History– Rock Art– Oliewenhuis Art Museum

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Strategic objectives 2009/2010

• The Museum pursues the achievement of strategic objectives in the following key areas of operation:

– Curation & Conservation of Collections– Research– Education & Public Programmes– Support Services

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• Curation & Conservation of Collections

– To collect, conserve & curate materials & objects of natural & cultural heritage, as part of the collective National Estate, relevant to the disciplines of the National Museum

– To expand collections to include materials, objects & information which will promote an enhanced sense of national pride in the diverse heritage shared by all South Africans

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• Research

– To undertake heritage research relating to the various disciplines of the National Museum to produce quality results

– To communicate the relevance & meaning of these results to a broad audience

– To promote a greater awareness of the importance & role of previously marginalisedcommunities in contributing to South Africa as a nation

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• Education & Public Programmes

– To provide informative and enjoyable educational experiences through relevant formal & informal activities, exhibitions & public outreach programmes

– To contribute to promoting a greater awareness & better understanding of South Africa’s diverse cultural & natural heritage

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• Support Services

– To provide necessary support to ensure the achievement of the Museum’s primary objectives (undertaking quality research, expanding & managing diverse heritage collections, communicating to all the importance of this heritage to the South African nation)

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Annual Report 2009/2010

• Internal controls 1• Budget: Regular monitoring of budget and

expenditure

• Assets: Asset register complete; loss control procedures in place

• Risk Management: Risk Management Strategy, Fraud Prevention Plan in place

• Internal Audit: Internal Audit Function outsourced (PwC); fully functional

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• Internal controls 2• Audit Committee: Audit Committee fully

functional

• Information Technology: Disaster Recover Plan (DRP) and Business Continuity Plan (BCP) in place

• Finance Policies: Policies are regularly reviewed and aligned with legislative imperatives

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19,629 21,09823,401 24,462

30,96034,071

36,347

2007

/200

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2008

/200

9

2009

/201

020

10/2

011

2011

/201

2

2012

/201

320

13/2

014

Subsidy Received R'000

• Financial overview: Budget 2009/2010

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Revenue/Funding

92%

2%

1% 5%

Subsidy from DAC

NRF

Interest received

Other income


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Staff Costs vs

Operating Costs

Staff Costs78%

Operating Costs22%


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Annual Report 2009/2010• Financial overview: AFS

Statement of Financial Position

Assets R’000Current Assets 4, 168Non Current Assets 7, 060

LiabilitiesCurrent liabilities 2, 395Non Current liabilities 15, 274

Earmarked funds 1, 775Accumulated Deficit 8, 216

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Annual Report 2009/2010• Financial overview: AFSStatement of Financial PerformanceRevenue R’000Subsidy from DAC 23, 401NRF funding 0, 598Interest received 0, 262Other Income 1, 602Total Revenue 25, 863

ExpensesStaff costs 23, 607Audit fees 0, 841Operating Expenses 5, 989Total Expenses 30, 437

Deficit for the year 4, 574

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Annual Report 2009/2010• Financial overview: Audit ReportUnqualified audit opinion for 2009/2010

Matters of Emphasis

1. Restatement of corresponding figures

• The numbers for the fixed assets and the corresponding figures for 31 March 2009 had to be restated as a result of the Museum’s policy to only capitalise assets with a cost price above R2 000.

• Items with a cost price below R2 000 had been written off as expenses in previous financial years.

• This resulted in an increase of fixed assets amounting to R382 000 and a decrease in accumulated deficit of R382 000.

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Matters of Emphasis

2. Going Concern

• Due to the recognition of the National Museum’s defined benefit obligations for retirement benefits of employees, as required byInternational Accounting Standard (IAS) 19, the Museum does not have a favourable financial position.

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Reason and action plan: Going Concern 1

• This is due to the additional expenses relating to the application of IAS 19 for the provision of employee benefits, which had to be recognised in the Statement of Financial Position and Statement of Financial Performance.

• The Museum’s budget did not/does not make provision for the “book entries” of 1.343 million relating to the post-retirement medical liability and R 5.792 million relating to the pension benefits as per the actuarial valuation received.

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• Although the liabilities are a reflection of the commitment of the Museum, they are not payable in the near future.

• The application of IAS 19 has a significant impact on the Financial Statements.

• It is however impractical to budget for the charge to the Statement of Financial Performance. This would also result in increased investments and no funds available for operational activities.

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• The Museum provides for subsidies in respect of continuation of member health care costs. Employees have the option to join any of the available plans of the Bestmed medical aid scheme.

• In terms of the Museum’s Subsidy Policy, continuation members who retired before 30 June 1992 receive a 100% subsidy. Employees in service as at 31 December 2007 are subsidised 66% of the required monthly subscriptions.

• The entitlement to these benefits is dependent upon the employeeremaining in service until retirement age.

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• This matter has been discussed at several meetings of the Museum’s Audit Committee and Council.

• The matter has also been raised with officials at the Department of Arts and Culture, who are aware of the implications for Public Entities of the need to recognise IAS 19 in the Statement of Financial Position and Statement of Financial Performance.

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• Policy was amended to limit the liability and was approved in 2007.

• This policy states that employees appointed after 1 January 2008do not qualify for health care benefits after retirement. Thus as employees appointed before 1 January 2008 resign or otherwise leave the service of the Museum, vacancies are filled by employees with no after-retirement health care benefits.

• This issue will thus be addressed in the long term only.

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Annual Report 2009/2010• Human Resource Management

• Skills development: Formal & informal training; internal & external

• Performance Management: System is in place• Occupational Health & Safety: Policies and

procedures are in place• Wellness and Safety: Policies and procedures

are in place (can do more)• Policy Review: Policies are regularly reviewed

and aligned with legislative imperatives

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Successes / Highlights / Challenges

• Education & Outreach– Record visitor numbers: ± 217 300

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• Education & Outreach– Successful Mobile Museum activities

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• Education & Outreach– Exhibitions: 21 temporary art exhibitions

hosted (e.g. Mbongeni Buthelezi)

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• Education & Outreach– Making displays accessible to people with

disabilities

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• Research & Collections– Batho Community History Project

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• Research & Collections– International Collaboration, significant

additions to collections (e.g. Entomological work in DRC, East Africa)

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• Research & Collections– International Collaboration, significant

additions to collections (e.g. Quaternary Research; new extinct fossil zebra discovered)

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• Training– Post-graduate studies, ABET

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Challenges 1

• Lack of proper storage facilities for heritage collections: this is becoming critical; space is extremely limited for most collections

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Challenges 2

• Capacity issues: finding appropriately qualified people to consider employing (specialised disciplines)

• Capacity issues: to address ever-increasing demands (e.g. compliance, performance reporting)

• Resources: to pay market-related salaries• Resources: to replace “old” assets (e.g.

vehicles)

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Challenges 3

• Heritage assets: expertise to evaluate heritage collections / assets?

• Heritage assets: capacity to undertake the exercise?

• Heritage assets: funds to undertake the exercise?

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Thank you for this opportunity

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