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NATIONAL ENGLISH LITERARY MUSEUM ANNUAL REPORT FOR THE PERIOD 1 APRIL 2014 TO 31 MARCH 2015
NATIONAL
ENGLISH LITERARY MUSEUM an agency of the
Department of Arts and Culture
NATIONAL ENGLISH LITERARY MUSEUM
STREET ADDRESS 87 Beaufort Street Grahamstown 6139 SOUTH AFRICA
POSTAL ADDRESS Private Bag 1019 Grahamstown 6140 SOUTH AFRICA
TELEPHONE +27 046 622 7042
FAX +27 046 622 2582
WEB http://www.nelm.org.za
RP 334/2013 ISBN 978-0-621-42385-3
NATIONAL ENGLISH LITERARY MUSEUM an agency of the
Department of Arts and Culture
ANNUAL REPORT FOR THE PERIOD 1 APRIL 2014 TO 31 MARCH 2015
1
CONTENTS
PART A: GENERAL INFORMATION
FOREWORD BY THE CHAIRPERSON ....................................................................................................................... 4
DIRECTOR’S OVERVIEW .......................................................................................................................................... 9
STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ................... 10
STRATEGIC OVERVIEW ...........................................................................................................................................
PART B: PERFORMANCE INFORMATION
1. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES .................................................................................... 14
2. SITUATIONAL ANALYSIS................................................................................................................................ 14
3. PERFORMANCE INFORMATION BY PROGRAMME ....................................................................................... 17
PART C: GOVERNANCE
1. INTRODUCTION ............................................................................................................................................ 34
2. PORTFOLIO COMMITTEE .............................................................................................................................. 34
3. EXECUTIVE AUTHORITY ................................................................................................................................ 34
4. THE ACCOUNTING AUTHORITY .................................................................................................................... 34
5. COMPOSITION OF THE COUNCIL .................................................................................................................. 34
6. RISK MANAGEMENT ..................................................................................................................................... 37
7. INTERNAL AUDIT AND AUDIT COMMITTEE .................................................................................................. 37
8. COMPLIANCE WITH LAWS AND REGULATIONS............................................................................................ 38
9. FRAUD AND CORRUPTION ........................................................................................................................... 39
10. MINIMISING CONFLICT OF INTEREST ........................................................................................................... 39
11. CODE OF CONDUCT ...................................................................................................................................... 39
12. HEALTH AND SAFETY AND ENVIRONMENTAL ISSUES .................................................................................. 39
REPORT OF THE AUDIT COMMITTEE OF THE NATIONAL ENGLISH LITERARY MUSEUM ...................................... 40
PART D: HUMAN RESOURCE MANAGEMENT
1. INTRODUCTION ............................................................................................................................................ 44
2. HUMAN RESOURCE OVERSIGHT STATISTICS ................................................................................................ 44
PART E: FINANCIAL INFORMATION
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS
OF THE NATIONAL ENGLISH LITERARY MUSEUM FOR THE YEAR ENDED 31MARCH 2015 .................................. 52
STATEMENT OF RESPONSIBILITY FOR FINANCIAL INFORMATION ....................................................................... 56
ACCOUNTING AUTHORITY’S REPORT FOR THE YEAR ENDED 31 MARCH 2015 .................................................... 57
1. REVIEW OF OPERATIONS ............................................................................................................................. 57
2. PRINCIPAL ACTIVITIES OF THE MUSEUM ..................................................................................................... 57
3. MATERIALITY AND SIGNIFICANCE FRAMEWORK FOR THE 2014/2015 FINANCIAL YEAR ............................ 58
4. APPROVAL .................................................................................................................................................... 58
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2015 ............................................................................. 59
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2015 ......................................... 60
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2015............................................. 61
2
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2015 ....................................................................... 62
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED
31 MARCH 2015 ...................................................................................................................................................... 63
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 .............................................. 65
1. ACCOUNTING POLICIES ................................................................................................................................ 65
2. PROPERTY, PLANT AND EQUIPMENT ........................................................................................................... 75
3. HERITAGE ASSETS ......................................................................................................................................... 76
4. INVENTORY ................................................................................................................................................... 78
5. INVESTMENTS .............................................................................................................................................. 79
6. TRADE AND OTHER RECEIVABLES ................................................................................................................ 80
7. CASH AND CASH EQUIVALENTS.................................................................................................................... 80
8. REVENUE ...................................................................................................................................................... 81
9. OTHER INCOME ............................................................................................................................................ 82
10. EXPENDITURE ............................................................................................................................................... 82
11. PROVISION FOR POST-RETIREMENT MEDICAL BENEFITS ............................................................................. 83
12. TRADE AND OTHER PAYABLES...................................................................................................................... 85
13. RECONCILIATION OF SURPLUS TO CASH UTILISED IN/GENERATED FROM OPERATIONS ............................ 86
14. RECONCILIATION OF ORIGINAL/ADJUSTED BUDGET AND ACTUAL EXPENDITURE ...................................... 86
15. IRREGULAR EXPENDITURE ............................................................................................................................ 87
16. FRUITLESS AND WASTEFUL EXPENDITURE ................................................................................................... 88
17. CONTINGENT LIABILITY ................................................................................................................................ 88
18. RELATED PARTY DISCLOSURE ....................................................................................................................... 89
19. EMOLUMENTS OF COUNCIL AND COMMITTEE MEMBERS AND SENIOR MANAGEMENT ........................... 89
20. RESTATED PRIOR YEAR COMPARITIVES ....................................................................................................... 91
21. CAPITAL COMMITMENTS ............................................................................................................................. 92
22. EVENTS SUBSEQUENT TO BALANCE SHEET .................................................................................................. 92
23. FINANCIAL RISK MANAGEMENT ................................................................................................................... 92
ANNEXURES
A MATERIALITY AND SIGNIFICANCE FRAMEWORK FOR THE 2014/2015 FINANCIAL YEAR
B LIST OF ABBREVIATIONS/ACRONYMS
3
PART A
GENERAL INFORMATION
NATIONAL ENGLISH LITERARY MUSEUM
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FOREWORD BY THE CHAIRPERSON
The National English Literary Museum is proud to present its Annual Report for the 2014/2015 financial year.
The terms of office of the previous Council members of NELM came to an end at the end of September 2014. The
Minister of Arts and Culture appointed a new Council with effect from 1 December 2014. One member of the
previous Council was reappointed. On 27 January 2015 the Department of Arts and Culture presented an
induction workshop for new Council members in Pretoria. All six of NELM’s new Council members and the Director
and Chief Financial Officer attended this workshop. The inaugural meeting of the new Council took place on
27 February 2015.
The Council of NELM enters into a performance agreement, based on the Annual Performance Plan, with the
Minister of Arts and Culture. On 3 April 2014 the Chairperson, accompanied by the Director, attended the signing
ceremony of the 2014/2015 Shareholder’s Compact at Ditsong’s National Museum of Cultural History in Pretoria.
On 30 June 2014, the new Minister, Mr Nathi Mthethwa, convened a meeting of Chairpersons and CEOs to be
briefed on the functions and activities of the institutions under his control. NELM’s presentation, presented by the
Deputy Chairperson with the assistance of the Director, focused on the new building and NELM’s current priority
areas. The matter of extending the mandate of NELM to include the literatures of other languages was also
presented.
Council has been closely following the Department of Arts and Culture’s progress in developing and revising the
Revised White Paper on Arts, Culture and Heritage and the Draft National Museum’s Policy and look forward to
further engagements with the Minister and the Department on these important developments.
Council approved three new policies in the year under review: Research Policy, Education and Public Programmes
Policy and Language Policy.
I would like to thank the previous Council and Audit Committee of NELM for their work and commitment. The new
Council has taken over a mature institution with a clear vision and will continue to pursue the matter of extending
NELM’s mandate to include the indigenous language literatures.
The Council would like to acknowledge the support of the Department of Arts and Culture and most importantly,
the considerable investment that they are making in NELM’s future by providing it with a new museum building.
MR GCINISIZWE DLANJWA
CHAIR OF COUNCIL DATE: 12 August 2015
LEFT: DAVID MAAHLAMELA AND PETER SANDLER, CLERK OF WORKS, AT THE BUILDING SITE. RIGHT: PETER SANDLER, DEBBIE LANDMAN, BEVERLEY THOMAS, GCINISIZWE DLANJWA AND CHARL MALAN.
ANNUAL REPORT 2014/2015
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DIRECTOR’S OVERVIEW
In November 2010 the Department of Arts and Culture indicated their wish to explore widening the scope of the
museum to include the literatures of the historically disadvantaged languages of South Africa and their intention
to establish a Task Team to deal with this matter. In June 2013 NELM presented its Annual Performance Plan for
2013/14 to the Portfolio Committee on Arts and Culture. NELM’s current mandate and the Department’s desire to
change this to include the literatures of the indigenous languages was the main topic of discussion. This would be
an opportunity to redress the imbalances of the past and affirm NELM as a national heritage institution serving
the broadest possible audience.
Construction on the new museum that the Department is building for NELM is progressing well. NELM constituted
a committee, in cooperation with officials in Corporate Governance and Heritage at the Department, to manage
the commissioning of an outdoor artwork (sculpture) for the building. The terms of reference were worked out
and the call for submissions was advertised.
Over the last few years the Department has increased its capacity in their Corporate Governance Unit and this has
been of great benefit to NELM. Staff members in the Unit provide both strategic and operational support to the
entities through the Heritage Sector Forum, the CFO’s Forum, the CEO’s Forum and one-on-one interactions. We
thank them for this support.
Two Heritage Sector Forums, two DAC CFO’s Forums and a National Treasury Public Entity CFO’s Forum, and one
CEO’s Forum were attended by members of NELM’s management. NELM was also present at DAC’s consultations
with their institutions for the preparation of their 2015 to 2019 Strategic Plan and 2015/16 Annual Performance
Plan. The Corporate Governance Unit convened a workshop on the standardisation of key performance indicators
for national museums.
The CFO’s Forums dealt with a number of pertinent issues, notably the challenges in implementing GRAP 103 –
the accounting standard for heritage assets, cost containment measures, infrastructure development plans and
audit findings. The Heritage Sector Forum focused on the Revised White Paper on Arts, Culture and Heritage, the
Draft National Museums Policy, remuneration schemes within the sector and key performance indicators. All
these matters were cascaded up to the CEO’s Forum.
In August 2014 the Department hosted its first consultative workshop on the Draft National Museums Policy.
NELM staff have closely followed the development of this policy and the Director served on the Focus Group on
grading criteria in 2013. At the 2014 workshop she facilitated a breakaway session on defining a South African
Museum. One of NELM’s Curators, Mr Brian Wilmot, delivered a paper at the South African Museums
Association’s 78th National Conference in November 2014 titled ‘Towards the Development of a National
LEFT: VISIT OF THE DEPUTY MINISTER, MS REJOICE MABUDAFHASI, TO THE BUILDING SITE IN JULY 2014. RIGHT: A GUIDED TOUR OF THE EASTERN STAR GALLERY, NELM’S PRINTING AND PRESS MUSEUM.
NATIONAL ENGLISH LITERARY MUSEUM
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NEW EXHIBITIONS AT SCHREINER HOUSE. LEFT: PROF. DIRK KLOPPER, DEPUTY CHAIR OF NELM’S COUNCIL, DELIVERING THE OPENING ADDRESS. BELOW LEFT: PROF. KAREN (NELM COUNCIL MEMBER) AND GERHARD DE JAGER WITH BEVERLEY THOMAS. BELOW RIGHT: SCHREINER KAROO WRITERS’ FESTIVAL PARTICIPANTS WITH NELM STAFF MEMBERS MARIKE BEYERS AND CRYSTAL WARREN (LEFT) AND ZONGEZILE MATSHOBA AND BASIL MILLS (RIGHT).
Museums Policy’. As a highly experienced museologist, Mr Wilmot tracked the transformation agenda in South
African museums since the mid 1980s. Further consultations, especially with the national museums, will take place
during 2015.
Following public workshops on the review and revision of the 1996 White Paper on Arts, Culture and Heritage in
2013, members of NELM management attended a further consultative workshop in March 2015. We eagerly await
feedback on the outcome of this workshop.
The Director attended two meetings, hosted by the Department of Arts and Culture during the course of the year,
aimed at ensuring that government departments and entities comply with the Use of Official Languages Act, Act
No. 12 of 2012. NELM’s Language Policy was drafted in September 2014 and published for comment in the
Provincial Gazette for the Eastern Cape, No. 3367, on 30 March 2015. No comments were received and
consequently NELM adopted isiXhosa, Afrikaans and English as their official languages. The policy recognises that
NELM has an obligation to share South Africa’s rich English literary heritage with all South Africans, even those for
whom English is not their mother tongue.
NELM was delighted to receive the Deputy Minister of Arts and Culture, Ms Rejoice Mabudafhasi, in July 2014. The
Deputy Minister undertook a visit to the construction site of NELM’s new facility and was the guest of honour at
an informal luncheon with NELM management and local arts and culture stakeholders.
NELM’s most impressive achievement of the year under review was the refurbishment and installation of new
exhibitions at Schreiner House in Cradock. The exhibition was opened during the Schreiner Karoo Writers Festival
on 26 July 2014 at a function attended by over 100 guests. New trilingual marketing material has been produced.
Schreiner House is a c. 1860 historic building and extreme weather conditions over the 30 years since it was
restored have affected the fabric of the building. NELM commissioned a specialist conservation architect to
ANNUAL REPORT 2014/2015
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Schreiner HouseWORLD-CLASS MUSEUM
S C H R E I N E R H O U S E I S A
S A T E L L I T E O F T H E
NATIONAL ENGLISH LITERARY MUSEUM
an agency of the
Department of Arts and Culture
The exhibitions at Schreiner House explore Olive Schreiner’s life and work and recognise her significance as
a writer, a feminist and a champion of human rights. Some of her personal possessions and part of her
fascinating library are on display.
The exhibition in the Ikhamanga Hall presents the local history of Cradock from the time of its earliest
inhabitants to the present day, making it an exciting educational resource for educators and learners of all
grades. It is beautifully illustrated and includes associated extracts from South African literature.
Die uitstallings by die Schreinerhuis ondersoek Olive Schreiner se lewe en werk en erken die belang van
haar as ’n skrywer, ’n feminis en ’n kampvegter vir menseregte. Sommige van haar persoonlike besittings
en ’n deel van haar fassinerende biblioteek word vertoon.
Die uitstalling in die Ikhamangasaal beeld die plaaslike geskiedenis van Cradock sedert die vroegste
inwoners tot vandag uit en is dus ’n opwindende opvoedkundige hulpbron vir opvoedkundiges en leerlinge
van alle grade op skool. Dit is lieflik geïllustreer en sluit relevante uittreksels van Suid-Afrikaanse
letterkunde in.
Lo mboniso useSchreiner House uphonononga ubomi buka-Olive Schreiner, imisebenzi yakhe, kwaye
iqaphela igalelo lakhe njengombhali, umlweli wamalungelo oomama netsha-ntliziyo lamalungelo oluntu.
Ezinye zezinto zakhe kunye nenxenye yethala leencwadi zakhe zikulomboniso.
Lo mboniso useholweni iKhamanga uzisa imbali yaseKaladokhwe ususela ngexesha labemi bokuqala
uzokutsho ngoku, nto leyo eyenza ube sisixhobo esinika umdla kootitshala nakubafundi bamabanga onke.
Unemifanekiso ehlengiswe kakuhle, kwakunye nezicatshulwa ezithathwe kuluncwadi.
Story of an African Writer
NATIONAL ENGLISH LITERARY MUSEUM
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inspect the building and develop a plan for rehabilitation and long-term management. The plan will be
implemented in the year to come.
Management and staff have spent much of the year juggling regular activities and goings-on with the new
building, particularly planning the layout of the collections storage areas and the new exhibitions. The majority of
service delivery indicators presented on pages 17-32 were achieved and portfolios of evidence kept for auditing.
Staff must be commended for that. We have set ourselves realistic goals for the next two years while we move
and settle into our new facility.
I would like to thank the outgoing Council for all their support, particularly the chairperson, Prof. Michael
Titlestad, and the chairs of the Audit Committee, the Literature and Culture Committee and the Finance and
General Purposes Committee.
The new Council is welcomed and I look forward to a productive working relationship with all the members in the
years to come.
MS BEVERLEY THOMAS
DIRECTOR DATE: 12 August 2015
ANNUAL REPORT 2014/2015
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STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT
To the best of my knowledge and belief, I confirm the following:
─ All information and amounts disclosed in the Annual Report are consistent with the Annual Financial
Statements audited by the Auditor-General.
─ The Annual Report is complete, accurate and is free from any omissions.
─ The Annual Report has been prepared in accordance with the guidelines issued by National Treasury.
─ The Accounting Authority is responsible for establishing and implementing a system of internal control
designed to provide reasonable assurance as to the integrity and reliability of the performance information,
the human resources information and the Annual Financial Statements.
─ The Auditor-General is engaged to express an independent opinion on the performance information and the
Annual Financial Statements contained in the Annual Report.
─ In our opinion, the Annual Report fairly reflects the operations, the performance information, the human
resources information and the financial affairs of the public entity for the financial year ended 31 March
2015.
Yours faithfully
MR CHARL MALAN
CHIEF FINANCIAL OFFICER DATE: 12 August 2015
MS BEVERLEY THOMAS
DIRECTOR DATE: 12 August 2015
MR GCINISIZWE DLANJWA
CHAIR OF COUNCIL DATE: 12 August 2015
NATIONAL ENGLISH LITERARY MUSEUM
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STRATEGIC OVERVIEW
1. VISION
Our vision is to be a leading literary heritage institution, dedicated to the collection, preservation and
promotion of South Africa’s rich and diverse heritage, in partnership with related institutions.
2. MISSION
The National English Literary Museum will promote reading, storytelling and research by providing access
to its diverse collections, exhibitions and public programmes.
3. VALUES
NELM is committed to the following values:
─ Accessibility;
─ Service excellence;
─ Good governance and accountability;
─ Transparency;
─ Cultural diversity;
─ Community focus;
─ Ethical practice;
─ Equity and redress of past imbalances;
─ Professionalism; and
─ Sustainability.
4. LEGISLATIVE AND OTHER MANDATES
NELM is governed by the Cultural Institutions Act, Act No. 119 of 1998, as amended by the Cultural Laws
Second Amendment Act, Act No. 69 of 2001, and operates under the jurisdiction of a Council appointed by
the Minister of Arts and Culture. NELM is listed as a schedule 3A national public entity in terms of the Public
Finance Management Act, Act No. 1 of 1999, as amended by Act No. 29 of 1999.
The operations of NELM are further governed by the following:
─ National Heritage Resources Act, Act No. 25 of 1999;
─ Public Audit Act, Act No. 25 of 2004;
─ White Paper on Arts, Culture and Heritage, 1996.
ANNUAL REPORT 2014/2015
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STAFF OF THE ADMINISTRATIVE DIVISION, FROM LEFT: BEVERLEY THOMAS, CYNTHIA MATA, CINDY-ANN POTGIETER, PATRICIA PETERSON, CHARL MALAN AND SAM ADAMS.
5. ORGANISATIONAL STRUCTURE (FUNDED POSTS)
DIRECTOR/CHIEF EXECUTIVE OFFICER Ms Beverley Thomas
CHIEF FINANCIAL OFFICER
Mr Charl Malan
MANAGER: CURATORIAL DIVISION
Ms Crystal Warren
ACCOUNTING AUTHORITY COUNCIL OF NELM Chairperson: Prof. Michael Titlestad (until 30 September 2014)
Mr Gcinisizwe Dlanjwa (from 1 December 2014)
MANAGER: EDUCATION & PUBLIC PROGRAMMES
Mr Zongezile Matshoba
CHIEF REGISTRAR
RESEARCH CURATORS (3)
EDUCATION OFFICER
CURATOR OF EXHIBITIONS
CURATOR: SCHREINER HOUSE CURATOR: EASTERN STAR/
GRAPHIC DESIGNER
TECHNICAL ASSISTANT
RECEPTIONIST/ ADMINISTRATIVE ASSISTANT
MESSENGER/DRIVER CLEANER
ACCOUNTS CLERK
SECURITY GUARDS (2)
PERSONAL ASSISTANT TO THE DIRECTOR
REGISTRARS (2)
LIBRARIANS (3) LIBRARY/CURATORIAL
ASSISTANT
13
PART B
PERFORMANCE INFORMATION
NATIONAL ENGLISH LITERARY MUSEUM
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BRIAN WILMOT, CURATOR OF SCHREINER HOUSE, WROTE ‘A LITERARY WALKING TOUR OF OLD CRADOCK’. HE IS PICTURED HERE WITH LIBRARIAN LYNNE GRANT.
1. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES
The Auditor-General currently performs the necessary audit procedures on the performance information to
provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance
against predetermined objectives is included in the report to management, with material findings (if any)
being reported under the ‘Predetermined objectives’ heading in the ‘Report on other legal and regulatory
requirements’ section of the Auditor-General’s report on pages 53-54.
2. SITUATIONAL ANALYSIS
2.1. SERVICE DELIVERY ENVIRONMENT
NELM is situated in Grahamstown, a small university city in the Eastern Cape with a population of about
120 000 people, inclusive of the surrounding areas. NELM competes with the much more visible Albany
Museum (a provincial museum) but as a national museum, NELM should deliver services all over the
country in both rural and urban environments. NELM’s reach in the Eastern Cape is increasing steadily by
taking museum education programmes to schools in smaller towns. NELM’s two important visitor sites,
namely the Eastern Star Gallery in the centre of Grahamstown and Schreiner House in Cradock – a Chris
Hani District Municipality Liberation Heritage Site – have both been significantly revamped with new
exhibitions in recent years. Visitor numbers at both sites are increasing. Extending NELM’s reach to the rest
of the country remains a challenge.
Poor Grade 12 results point to the need for support to educators and learners in language skills. NELM’s
public programmes need to support teaching and learning across a range of subjects and a love of reading
should be nurtured from an early age.
Museums contribute to the educational and social needs of communities and to economic development,
especially in small towns where they are often the prime tourist attraction. NELM’s satellite museum in
Cradock, Schreiner House, attracts both domestic and foreign tourists and the curator is active in tourism
structures in the town and district. Participation and co-operation in tourism structures is essential and
NELM has had more success in Cradock than in Grahamstown.
NELM functions in a scholastic environment and the demand for services by the academic community
appears to be fairly consistent, as are services to schools and the community at large.
A key item of discussion in the heritage sector at present is digitisation and digital asset management. NELM’s
digitisation projects, aimed at both preserving the collections – especially paper-based ones – and increasing
access to them, are proceeding well.
ANNUAL REPORT 2014/2015
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2.2. ORGANISATIONAL ENVIRONMENT
NELM’s organisational structure was reviewed in 2013, rationalising the management structure and
streamlining functional areas.
The administrative staff at NELM are subject to considerable work pressure as a result of ever-evolving
compliance measures. NELM will not consider retrenchments in other divisions to resource the
administrative division at this time.
2.3. KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES
There were no key policy developments or legislative changes affecting NELM. However, the Department of
Arts and Culture is in the process of revising the 1996 White Paper on Arts, Culture and Heritage and
developing a Policy Framework for National Museums.
The Director attended DAC’s National Museums Policy Consultative Workshop in Cape Town on 14-15
August 2014 and facilitated the discussion group on the definition of a (South African) museum.
Subsequently comprehensive feedback was submitted on the draft policy.
2.4 STRATEGIC OUTCOME ORIENTED GOALS
2.4.1 To develop the institution within the framework of sound corporate governance.
Goal statement
NELM will soon be challenged to re-orientate the way it works and the way it serves the public when it
relocates to its new, purpose-built facility in 2016. In preparation for this, NELM will need to develop a
sound policy framework, implement its organisational structure and build partnerships that will ensure its
sustainability well into the future.
2.4.2 To be a pre-eminent source of expertise in South African literary heritage.
Goal statement
NELM collects, documents and researches South African literary heritage and makes it accessible through
exhibitions, education programmes and public events. NELM must ensure that it practises the highest level
of care in managing its collections and urgently addresses the issue of digitisation. Collaboration with
similar literary and heritage institutions will enhance this goal.
2.4.3 To promote the understanding and enjoyment of South African literature.
Goal statement
The richness and diversity of South African literature is an ideal medium for building a national identity and
social cohesion. The challenge is to make more people, especially children, aware of this national asset and
to encourage reading for pleasure and writing as a means of creative expression.
NATIONAL ENGLISH LITERARY MUSEUM
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ANNUAL REPORT 2014/2015
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3. PERFORMANCE INFORMATION BY PROGRAMME
3.1 PROGRAMME 1 ADMINISTRATION
BUSINESS UNIT Administrative division.
PROGRAMME PURPOSE Administrative and support services.
SUB-PROGRAMME Entity management.
STRATEGIC OBJECTIVE To ensure compliance in terms of the Cultural Institutions Act, the Public Finance
Management Act and applicable National Treasury Regulations.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Council meetings 2 2 3 Over achieved. See below.
Executive committee meetings
2 2 1 Partially achieved.
Induction of new Council only took place in January; no executive committee meeting but additional full Council meeting.
Sub-committee meetings
4 5 4 Partially achieved.
Induction of new Council only took place in January; no committee meetings.
Audit committee meetings
3 4 5 Over achieved. Audit Committee’s meeting schedule adjusted; note shortfall in previous year.
Compliance documents
Quarterly Reports; Annual Report/ Annual Financial Statements; Annual Performance Plan.
Quarterly Reports; Annual Report/ Financial Statements; Strategic Plan; Annual Performance Plan and other compliance documents.
Quarterly Reports; Annual Report/ Financial Statements; Strategic Plan; Annual Performance Plan.
Achieved.
Internal audit Biannual audits; 2 internal audit reports.
Biannual audits; 2 internal audit reports.
Biannual audits; 2 internal audit reports.
Achieved.
Two internal audits were undertaken: the period October 2013 to March 2014 was reviewed in April 2014
and the period April to September was done in October. The internal auditor is helpful and constructive in
assisting staff to deal with deficiencies identified by the Auditor-General.
NATIONAL ENGLISH LITERARY MUSEUM
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SUB-PROGRAMME Finance administration.
STRATEGIC OBJECTIVE To manage financial resources within a structured policy and procedural
framework.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Financial management policy
Policies reviewed; 2 revised.
Review policies. Policies reviewed.
Achieved.
SUB-PROGRAMME Corporate services
STRATEGIC OBJECTIVE To manage human resources within a structured policy and procedural
framework.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Human resource management policies
Policies reviewed; 2 revised.
Review policies. Policies reviewed.
Achieved.
STRATEGIC OBJECTIVE To ensure a safe environment for museum visitors and staff.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Health and safety monitoring
Monthly H&S inspections and meetings.
Monthly H&S inspections and meetings; recommend-ations implemented.
Monthly H&S inspections and meetings; recommend-ations implemented.
Achieved.
STRATEGIC OBJECTIVE To build relationships with organisations with similar aims and objectives to NELM.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Partnerships Joint event concluded and reported on.
New partnership agreed.
Schreiner Karoo Writers Festival co-hosted, and SKWF Youth Programme
Achieved.
ANNUAL REPORT 2014/2015
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PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
initiated; new partnership with Puku agreed, event co-hosted.
STRATEGIC OBJECTIVE To build the public profile and image of NELM.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Popular media items 7 4 24 Over achieved. More opportunities especially around literary events.
NELM News - 2 - Not achieved. Social media substituted; note over achievement of media items.
Promotional exhibitions
6 4 7 Over achieved. More opportunities for promotional exhibitions; note shortfall in new exhibitions curated.
Staff from the Department of Arts and Culture’s marketing and communication team visited NELM on 29
May 2014 to assess and assist us in developing an overall marketing strategy, especially about the new
museum building.
A Twitter account, @Nelmza was set up and linked to NELM’s Facebook page. These social media sites have
been well used in publicising NELM events and activities, as well as providing information about NELM
collections, and South African literature.
NELM received considerable media coverage during the year. Articles covered NELM’s exhibitions at
Wordfest, the Women’s Month exhibition featuring Ellen Kuzwayo, the new exhibitions at Schreiner House,
several features on the Eastern Star Gallery and NELM events and programmes.
NELM set up a promotional exhibition at the 40th Annual Conference of the African Literature Association
held at Wits University from 9-13 April 2014. Over 150 delegates from all over the world visited the stand.
Three travelling exhibitions were displayed: ‘A Brief History of Black South African Literature in English’,
‘Origins of IsiXhosa Publication’ and ‘Can Themba’s 50th Anniversary: The Suit’.
NELM participated in the 2nd Sitting of the Karoo Parliament at the Vusubuntu Cultural Village in Cradock
from 5-6 November 2014. A promotional exhibition was mounted at the Expo and the Director presented a
talk about the new exhibitions at Schreiner House – ‘Schreiner House: World Class Museum’.
NATIONAL ENGLISH LITERARY MUSEUM
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CRYSTAL WARREN, VONANI BILA, GARY CUMMISKEY, CHRIS MANN, ROBERT BEROLD, ALAN FINLAY AND DENIS HIRSON AT THE OPENING OF THE ‘NEW COIN’ EXHIBITION DURING WORDFEST 2014.
NELM is pursuing its partnership with the Schreiner Karoo Writers Festival and participated in the festival in
July 2014.
The Manager: Education and Public Programmes represented NELM at the Eastern Cape Tourism Agency’s
Careers Expo in October 2014 where a promotional exhibition was also mounted.
From 20-21 March 2015 NELM exhibited at the first Indie Book Fair, organised by AFNA (African Narratives),
in Johannesburg. This was an opportunity to promote NELM and to network with new writers and small
publishers. NELM’s promotional exhibition and the exhibition ‘20 Years of South African Literature’ were
displayed.
‘A Brief History of Black South African Literature in English’ was displayed at the Steve Biko Foundation’s
event on Human Rights Day.
Linking performance with budget
PROGRAMME EXPENDITURE
2013/14 2014/15
ACTUAL R’000
ORIGINAL BUDGET
R’000
REVISED BUDGET
R’000
ACTUAL EXPENDITURE
R’000
Administrative Division 3 205 3 385 3 498 3 980
% of total (excl. capital expenditure) 36% 38% 39% 42%
Capital expenditure 90 260 620 638
ANNUAL REPORT 2014/2015
21
3.2 PROGRAMME 2 BUSINESS DEVELOPMENT
BUSINESS UNIT Curatorial division.
PROGRAMME PURPOSE Collections development, preservation, documentation and research.
SUB-PROGRAMME Curation and conservation of collections.
STRATEGIC OBJECTIVE To manage collections management functions within a structured policy and
procedural framework.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Policy to guide collections and curatorial functions
Collections management, registration and preventive conservation policy and procedure implemented.
2 policies approved.
Research Policy and Care and Conservation Policy approved.
Achieved.
STRATEGIC OBJECTIVE To collect and ensure the long-term preservation of literary heritage artefacts.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
New accessions 1 023 800 854 Over achieved. Process of acquisition is not suspended when target is reached.
Collections preservation practice
52 temp/RH reports, 2 condition reports.
52 temp/RH reports; 2 storage environment condition reports.
52 temp/RH reports; 2 storage environment condition reports.
Achieved.
Assessment and condition reporting of collection items
40% of all collection items inspected.
60% of all collection items.
60% of all collection items inspected; report.
Achieved.
Digitisation 51% of all rare/fragile manuscripts.
Digitise rare/ fragile manuscripts and obsolete audio-visual material.
80% of rare/fragile manuscripts.
Partially achieved.
Clean-up and consolidation of digitised material revealed repetition as well as items needing to be redone; supplier for audio-visual difficult to source.
NATIONAL ENGLISH LITERARY MUSEUM
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ANNUAL REPORT 2014/2015
23
In November 2013 NELM purchased a collection of letters by Thomas Pringle and John Fairbairn to a mutual
friend, Benjamin Moodie. An additional set of letters appeared on auction in April 2014. Pringle is well
known as an early South African poet, and with Fairbairn was instrumental in the establishment of
newspapers and the struggle for the freedom of the press in the early 19th century. The collection includes:
A letter, dated 17 April 1829, Cape Town, to Benjamin Moodie from John Fairbairn, which discusses
political affairs of the 1820 Settlers, the war against Gaika, and Fairbairn’s plan to travel to Uitenhage
and Grahamstown.
Two letters from Thomas Pringle to Benjamin Moodie, dated 22 October 1824, Genadenthal, and
January 1826, Uitenhage.
A four page satirical poem by John Fairbairn entitled ‘An Humble Deprecation of the Wrath of the
Great Government Quarterly Reviewer for the Department of the Cape’ (LEFT). John Fairbairn (1794-
1864) was a journalist, publisher and politician in the early Cape. Together with Thomas Pringle he
founded the periodical the South African Journal in 1824, and edited The South African Commercial
Advertiser, the first independent newspaper published at the Cape. The publications were subject to
frequent government censorship. The first lines read:
Lord of the Cape, and patron of the Muse
Auditor General of all Reviews
Oh thou that hads’t the fortunes of all books
That hang’st on thy censorial tenterhooks
It was not previously known that Fairbairn wrote poetry and this poem does not appear to have been
published.
Other archival material added to the collection includes:
Material collected by Dorothy Driver including two folders of writing on J.M. Coetzee, a draft of In the
Water Margins by C.J. Driver, interviews with authors done by Dorothy Driver, a draft of In this City by
Stephen Watson and poems and letters by C.J. Driver.
Theatre documents relating to Junction Avenue Theatre including letters, contracts, speech
transcripts, photographs, academic material on the theatre and material relating to three productions:
Marabi, Sophiatown and Tooth and Nail.
Mike Nicol’s letters, notebooks, manuscripts, page proofs, photographs, research material and
photographs relating to his many novels.
Manuscripts and page poofs from Kwela Books relating to novels by Ken Barris, K. Sello Duiker,
Songeziwe Mahlangu, Zakes Mda, Niq Mhlongo, Kgebetli Moele, Esk’ia Mphahlele, Cheryl Ntumy, Gail
Schimmel, Diale Tlholwe, Zukiswa Wanner and others.
Material relating to the works of poets Shabbir Banoobhai, J.D.U. Geldenhuys and Andile Ecalper
Nayika.
Published works added to the collection include:
A Year's Housekeeping in South Africa by Lady Barker (Mary Anne Broome). This collection of letters
was published in 1879 and gives insight into daily life, particularly of women, in the 19th century.
South African Sketches, Parodies, and Verses Up-to-Date by W.S. Sutherland, published in Cradock in
1901.
‘Saved from the Waste-Paper Basket’ and Other Stories by Herman Charles Bosman (juvenilia) edited
by Mark Kretschmann.
Books that Matter by Marie Philip, the autobiography of the writer and publisher, one of the founders
of David Philip Publishers.
NATIONAL ENGLISH LITERARY MUSEUM
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Peopress, edited by Helen Namponya, a compilation, with a dvd recording, of poems recited at
Mangaung Cultural Festival (Macufe) 2012 featuring Lesego Rampolokeng, Myesha Jenkins, Napo
Masheane, Hector Kunene, Natalia Molebatsi and others.
Africa39: New Writing from Africa South of the Sahara edited by Ellah Wakatama Allfrey. The
anthology includes poetry and prose by many South African authors.
Terra Incognita: New Short Speculative Stories from Africa, edited by Nerine Dorman.
New novels from Lauren Beukes, Edyth Bulbring, Imraan Coovadia, Damon Galgut, Michiel Heyns,
Mandla Langa, Sarah Lotz, Zakes Mda, Thando Mgqolozana, Nthikeng Mohlele, Futhi Ntshingila,
Marguerite Poland, Ishtiyaq Shukri, Alex Smith and Zukiswa Wanner.
Debut novels from Penny Busetto, Z.P. Dala, Nadia Davids, Máire Fisher, Perfect Hlongwane, Karen
Jennings, Kholofelo Maenetsha, Tshifhiwa Given Mukwevho, Beverly Rycroft and Karina M. Szczurek.
Rare volumes of poetry: Deliria by Sinclair Beiles (limited edition published 1971) and Valley of a
Thousand Hills by H.I.E. Dhlomo (published 1944).
New poetry collections from Gus Ferguson, Stephen Gray, Kerry Hammerton, Shafinaaz Hassim, Mazisi
Kunene, James Matthews, Mzwakhe Mbuli, Joan Metelerkamp, Pitika Ntuli and Douglas Reid Skinner.
The Sol Plaatje European Union Poetry Anthology; Volume IV, compiled by Liesl Jobson.
African Folktales Onstage!: Plays for Pre-Teens compiled by Fatima Dike, André Lemmer, Robin Malan
and Omphile Molus.
The Shadow of the Hummingbird, a new play by Athol Fugard.
Skierlik by Phillip Dikotla, the published version of this award-winning play.
SUB-PROGRAMME Research and information management.
STRATEGIC OBJECTIVE To document and provide access to South African literary heritage resources.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Documentation and cataloguing records
26 208 20 000 25 342 Over achieved. Process is not suspended when target is reached; see over achievement of new accessions.
New collections management system
- Introduce Spectrum compliant CMS and migrate all data.
New CMS set up and all data migrated.
Achieved.
Online database of holdings and digitised resources; number of users
Database online; 24% of digitised resources linked to database.
Maintain online database; increase number of digitised resources.
- Not achieved. Website not yet set up to record users; requires change of circumstances with Rhodes University's provision of data services to NELM.
ANNUAL REPORT 2014/2015
25
STRATEGIC OBJECTIVE To contribute to the body of knowledge on South African literary and cultural
heritage.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Research articles, conference papers etc.
10 8 8 Achieved.
The Director and the Manager of the Curatorial Division attended the ICOM-SA conference, ‘Museum
Research in South Africa – Relevance and Future’, in Durban, from 26-27 August 2014. The Director led the
first session on the role and significance of museum research in South Africa.
The following papers by NELM staff members were published:
R.P. Burmeister. ‘A Fine Art: Nineteenth Century Composing and Printing’. Published in Grahamstown
Historical Society Annals, No. 42, 2015.
M.P. Stevens, A.J. Martin and L.V. Grant. ‘Bibliography of the Work of Douglas Livingstone’. Published
in English in Africa Vol. 40 No. 3, December 2013. (This special issue on Douglas Livingstone was
delayed in production, only appearing in 2014).
M.P. Stevens. ‘Introduction’ (Overview of Douglas Livingstone holdings at NELM). Published in English
in Africa Vol. 40 No. 3, December 2013. (This special issue on Douglas Livingstone was delayed in
production, only appearing in 2014).
M.P. Stevens. ‘Urban Ecology and the Property Rights of Baboons’. Published in Scrutiny2 19 (2) 2014.
(A paper on the novel The Reluctant Passenger by Michiel Heyns.)
C.A. Warren. ‘South Africa and Zimbabwe’. Bibliography of literature published in 2013, with a critical
introduction and overview. Published in The Journal of Commonwealth Literature 49(4) 2014.
Conference papers presented:
A.J. Martin . ‘Writer and Publisher: The Contribution of James Matthews to the Literature of the Black
Consiousness Movement’. Paper presented at a Human Rights Day event, Tribute to Black Consciousness
Era Poets, at the Steve Biko Centre in Ginsberg, near King William’s Town, 21 March 2015.
M.P. Stevens. ‘Literary Letters’. Paper presented at the SAMA (South African Museums Association)
78th National Conference and AGM, ‘Collections Making Connections’, in November 2014.
B.C. Wilmot. ‘Towards the Development of a National Museums policy’. Paper presented at the South
African Museums Association 78th National Conference and AGM, ‘Collections Making Connections’, in
November 2014.
Linking performance with budget
PROGRAMME EXPENDITURE
2013/14 2014/15
ACTUAL R’000
ORIGINAL BUDGET
R’000
REVISED BUDGET
R’000
ACTUAL EXPENDITURE
R’000
Curatorial Division 3 898 3 507 3 520 3 500
% of total (excluding capital expenditure) 44% 40% 40% 38%
Capital expenditure 276 122 111 105
NATIONAL ENGLISH LITERARY MUSEUM
26
STAFF OF THE CURATORIAL DIVISION, FROM LEFT: MTHET SUKULA, ANDREW MARTIN, PETRO NHLAPO, CRYSTAL WARREN, DEBBIE LANDMAN, MARISS STEVENS, AMY GOODENOUGH, VICTOR CLARKE, LYNNE GRANT AND MARIKE BEYERS.
STAFF OF THE EDUCATION AND PUBLIC PROGRAMMES DIVISION, FROM LEFT: BASIL MILLS, RICHARD BURMEISTER, THOMAS JEFFERY, BUBBLES DU PREEZ, ZONGEZILE MATSHOBA AND BRIAN WILMOT.
ANNUAL REPORT 2014/2015
27
3.3 PROGRAMME 3 PUBLIC ENGAGEMENT
BUSINESS UNIT Education and public programmes division
PROGRAMME PURPOSE Exhibitions, educational services and events
SUB-PROGRAMME Exhibitions
STRATEGIC OBJECTIVE To present engaging exhibitions by interpreting our collections and research.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Exhibitions strategy and implementation plan for new building
- Storylines finalised and thematic research commenced.
Storylines finalised and thematic research commenced.
Achieved.
New exhibitions curated
New exhibitions: Schreiner House; 2 travelling/ temporary exhibitions.
New exhibition in main building; 2 travelling/ temporary exhibitions.
2 travelling/ temporary exhibitions.
Partially achieved.
Aim to install new exhibition in main building re-evaluated as not viable because of imminent move.
(a) Guided tours 79 30 324 Over achieved. Greater demand for services.
(b) Visitors to museum and off-site exhibitions
3 867 2 750 14 406 Over achieved. Greater demand for services; data on off-site exhibitions reliably received.
Construction on the new museum that the Department is building for NELM is progressing well. The project
plan for the exhibitions in the new building has been developed and research is being undertaken by NELM
staff. The permanent exhibitions will be presented as an integrated narrative incorporating the following
themes: the history and establishment of NELM, gazes in travel writing, connect : disconnect, landscape in
literature, assimilation, trans(form)ations, the writing life, dystopian literature and museums in literature.
There will also be a special children’s section and a cabinet of curiosities.
The new exhibition at Schreiner House, ‘Story of an African Writer’, was opened by the Deputy Chair of
NELM’s Council, Professor Dirk Klopper, during the Schreiner Karoo Writers Festival on 26 July 2014. The
exhibition explores Olive Schreiner’s life and work and recognises her significance as a writer, a feminist and
a champion of human rights. The exhibition includes traditional object and text elements as well as multi-
media. New marketing material for Schreiner House was developed to promote the revamped museum.
NELM, in association with the Institute for the Study of English in Africa (ISEA) at Rhodes University,
developed an exhibition titled, 50 Years of New Coin. The exhibition was displayed at Wordfest during the
2014 National Arts Festival in Grahamstown.
NELM’s celebratory travelling exhibition for this year, ‘20 Years of South African Literature 1994-2014’, was
exhibited at National Book Week in Port Elizabeth, the Eastern Cape Book Festival in Port Elizabeth and the
SA Infantry Battalion Book Month in Grahamstown.
NATIONAL ENGLISH LITERARY MUSEUM
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SUB-PROGRAMME Public education programmes.
STRATEGIC OBJECTIVE To manage the delivery of public programmes within a structured policy
framework.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
Policy to guide education services and public programmes
- 1 policy approved.
Education and Public Programmes Policy approved.
Achieved.
STRATEGIC OBJECTIVE To support the teaching and learning of a range of subjects through South
African literature.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
New and upgraded educational
6 6 8 Over achieved. Greater demand for services.
ANNUAL REPORT 2014/2015
29
BOOK LAUNCH FOR ARI SITAS (ABOVE) – From Around the World in Eighty Days. DAVID MAAHLAMELA AND LESEGO RAMPOLOKENG WITH ZONGEZILE MATSHOBA AT THE EVENT.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
materials and programmes
(a) Education programmes presented
52 45 144 Over achieved. Greater demand; service is not suspended after target is achieved.
(b) Learners reached 1 593 2 250 8 228 Over achieved. Greater demand for services; learners are not turned away after target is achieved.
An extraordinary number of education programmes on themes ranged from animal stories – presented
outdoors – to the history of printing and printing techniques presented at the Eastern Star Gallery. A
programme on ‘The Last Tree’ was presented at a rural primary school and the learners scripted and
produced their own play on the theme.
In April NELM presented a week-long education programme on the history of the press at its Eastern Star
Gallery for Rhodes University’s School of Journalism. 273 first year journalism students attended.
NELM organised the Schreiner Karoo Writers Festival youth programme, which included writing, drama and
story-telling workshops, a drama performance and the rendition of the National Anthem. During the
Festival the Curator of Schreiner House presented three literary walking tours of historic Cradock. The first
of these was televised for screening on the SABC 2 programme ‘Mooi Loop’.
NATIONAL ENGLISH LITERARY MUSEUM
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WORLD READ ALOUD DAY WITH EDUCATORS AND LEARNERS FROM OATLANDS PRIMARY SCHOOL.
Staff in the Education and Public Programmes Division presented education programmes to over 200
learners from all over the country during Scifest in March 2015. Special programmes were also presented
for National Science Week.
NELM strives to reach disadvantaged, out of town schools. These include Hendrik Kanise Combined School
in Adelaide, Riebeeck East Combined School, Velile Secondary School in Bathurst, Kuyasa in Port Alfred and
Sithembiso Secondary School in Mdantsane, Buffalo City Metro. John Kani’s Nothing But The Truth is a
prescribed setwork for Grade 12s studying English First Additional Language, and NELM staff screen the dvd
and facilitate a discussion on the play. Three ABET learners registered with the Grahamstown District Office
(DoBE) also participated in this programme.
New education programmes were developed for World Read Aloud Day and International Children’s Book
Day in March 2015. The days are celebrated annually and the first is an awareness day to advocate literacy
as a right and to motivate children, teens, and adults worldwide to celebrate the power of words. The latter
is celebrated to inspire a love of reading and to call attention to children’s books. In June 2014 NELM was
part of the national Fathers’ Story Week initiative by Front Page Father, which aims to encourage fathers
across the country to read and tell stories to their children.
ANNUAL REPORT 2014/2015
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BACK TO SCHOOL CAMPAIGN AT CARLISLE BRIDGE PRIMARY SCHOOL.
STRATEGIC OBJECTIVE To present public programmes that promote the discovery, understanding and
enjoyment of South African literary and cultural heritage.
PERFORMANCE INDICATORS
ACTUAL ACHIEVEMENT 2013/2014
PLANNED TARGET 2014/2015
ACTUAL ACHIEVEMENT 2014/2015
DEVIATION FROM PLANNED TARGET TO ACTUAL ACHIEVEMENT
COMMENT ON DEVIATIONS
(a) Talks and presentations
17 6 10 Over achieved. Greater demand; service is not suspended after target is achieved.
(b) Attendees at talks and presentations
855 180 769 Over achieved. Greater demand for services; visitors are not turned away after target is achieved.
(a) Literary and cultural events
13 12 14 Over achieved. Greater demand; service is not suspended after target is achieved.
(b) Attendees at literary and cultural events
714 360 473 Over achieved. Greater demand for services; visitors are not turned away after target is achieved.
NATIONAL ENGLISH LITERARY MUSEUM
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BEVERLEY THOMAS AND ZONGEZILE MATSHOBA AT THE BUILDING SITE.
Events hosted by NELM include:
the launch of Frederick I’Ons Artist, 1802-1899, with Cory Library and a talk by Dr Cornelius Thomas;
the launch of Otherwise and Other Poems by Brian Walter;
the launch of The Chameleon House by Melissa de Villiers;
the launch of From Around the World in Eighty Days by Ari Sitas;
the launch of Mantloane… Let’s Play by Charmaine Kolwane Mrwebi;
the launch of Aerial 2014 (a creative writing journal);
the launch of Mangaliso Buzani’s poetry collection Ndisabhala Imibongo; and
a talk by Janice Warman, author of The Class of 79.
Linking performance with budget
PROGRAMME EXPENDITURE
2013/14 2014/15
ACTUAL R’000
ORIGINAL BUDGET
R’000
REVISED BUDGET
R’000
ACTUAL EXPENDITURE
R’000
Education and Public Programmes Division 1 785 1 920 1 902 1 885
% of total (excluding capital expenditure) 20% 22% 21% 20%
Capital expenditure - 30 5 -
33
PART C
GOVERNANCE
NATIONAL ENGLISH LITERARY MUSEUM
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1. INTRODUCTION
Corporate governance embodies processes and systems by which public entities are directed, controlled
and held to account. In addition to legislative requirements based on a public entity’s enabling legislation,
corporate governance with regard to public entities is applied through the precepts of the PFMA and the
principles contained in the King Report on Corporate Governance.
Parliament, the Executive Authority (the Minister of Arts and Culture) and the Accounting Authority (the
Council of NELM) of the public entity are responsible for corporate governance.
2. PORTFOLIO COMMITTEE
NELM was not called to the Portfolio Committee on Arts and Culture during the year under review.
3. EXECUTIVE AUTHORITY
The Cultural Institutions Act places museums under the control of a Council appointed by the Minister of
Arts and Culture.
The Annual Report for 2013/2014 was submitted to the Department of Arts and Culture and tabled in
Parliament by the Minister on 16 September 2014.
The Chairperson of Council concluded a Shareholder’s Compact with the Minister of Arts and Culture for
the 2014/2015 financial year on 4 April 2014.
The Council of NELM submitted quarterly reports to the Minister of Arts and Culture in the months
following the end of each quarter. Encouraging and supportive feedback was received on the first and
second quarterly reports.
The Annual Performance Plan for 2014/2015 was submitted to the Department of Arts and Culture and
tabled in Parliament by the Minister on 8 March 2014.
4. THE ACCOUNTING AUTHORITY
The functions of a Council, as described in the Cultural Institutions Act, are:
to formulate policy;
to hold, preserve and safeguard all movable and immovable property of whatever kind placed in the
care of or loaned or belonging to the declared institution concerned;
to receive, hold, preserve and safeguard all specimens, collections or other movable property placed
under its care and management under section 10 (1);
to raise funds for the institution;
to manage and control the moneys received by the declared institution and to utilise those moneys for
defraying expenses in connection with the performance of its functions;
to keep a proper record of the property of the declared institution, to submit to the Director-General
any returns required by him or her in regard thereto and to cause proper books of account to be kept;
to determine, subject to this Act and with the approval of the Minister, the objects of the declared
institution; and
to generally, carry out the objects of the declared institution.
5. COMPOSITION OF THE COUNCIL
The term of office of the Council appointed by the Minister of Arts and Culture for the period 1 May 2011 to
30 April 2014 was extended to 30 September 2014. In December the Minister appointed a new Council.
ANNUAL REPORT 2014/2015
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DESIGNATION NAME MEETINGS
SCHEDULED MEETINGS ATTENDED
Chair (until 30 September 2014) Prof. M.F. Titlestad 3 2
Deputy Chair (until 30 September 2014) Prof. D.C. Klopper 3 2
Member (until 30 September 2014) Prof. K. de Jager 3 2
Member (until 30 September 2014) Dr D. Lewis 3 2
Member (until 30 April 2014) Mrs P. Madiba 3 -
Member (until 30 April 2014) Mr P. Mtheleli 3 -
Member (until 30 September 2014) Prof. J.A. Ogude 3 1
Member (until 30 September 2014) Prof. A. Oliphant 3 1
Member (until 30 September 2014) (from 1 December 2014)
Ms M. Rall 3 3
Member (until 30 September 2014) Dr W.P. Rowland 3 2
Member (until 30 September 2014) Mr H. Smith 3 2
Chair (from 1 December 2014) Mr G. Dlanjwa 3 1
Deputy Chair (from 1 December 2014) Ms S. Nhlabatsi 3 1
Member (from 1 December 2014) Ms E. Dido 3 1
Member (from 1 December 2014) Mr D. Maahlamela 3 1
Member (from 1 December 2014) Dr U. Roopnarain 3 1
Member (from 1 December 2014) Ms J. Williams 3 1
Director (ex officio) Ms B.A. Thomas 3 3
5.1 EXECUTIVE COMMITTEE OF COUNCIL
The Executive Committee meets between Council meetings and is delegated primarily to deal with
quarterly performance and financial reports and any other business not affecting long-term policy and
strategy.
DESIGNATION NAME MEETINGS
SCHEDULED MEETINGS ATTENDED
Chair (until 30 September 2014) Prof. M.F. Titlestad 1 1
Chair: Finance and General Purposes Committee (until 30 September 2014)
Ms M. Rall 1 -
Chair: Literature and Culture Committee (until 30 September 2014)
Prof. D.C. Klopper 1 1
Chair (from 1 December 2014) Mr G. Dlanjwa 1 -
Chair: Finance and General Purposes Committee (from 1 December 2014)
Mr D. Maahlamela 1 -
Chair: Literature and Culture Committee (from 1 December 2014)
Ms J. Williams 1 -
Director Ms B.A. Thomas 1 1
Chief Financial Officer Mr C.W. Malan 1 1
NATIONAL ENGLISH LITERARY MUSEUM
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5.2 COMMITTEES
Council has constituted two other committees in order to provide strategic and policy direction to the
functions of NELM.
Finance and General Purposes Committee
DESIGNATION NAME MEETINGS
SCHEDULED MEETINGS ATTENDED
Chair (until 30 September 2014) Ms M. Rall 2 2
Member (until 30 April 2014) Mrs P. Madiba 2 -
Member (until 30 April 2014) Mr P. Mtheleli 2 -
Member (until 30 September 2014) Prof. A. Oliphant 2 1
Member (until 30 September 2014) Mr H. Smith 2 2
Member (until 30 September 2014) Prof. M.F. Titlestad 2 2
Chair (from 1 December 2014) Mr D. Maahlamela 2 -
Member (from 1 December 2014) Ms E. Dido 2 -
Member (from 1 December 2014) Dr U. Roopnarain 2 -
Member (from 1 December 2014) Ms J. Williams 2 -
Director Ms B.A. Thomas 2 2
Chief Financial Officer Mr C.W. Malan 2 2
Literature and Culture Committee
DESIGNATION NAME MEETINGS
SCHEDULED MEETINGS ATTENDED
Chair (until 30 September 2014) Prof. D.C. Klopper 2 2
Member (until 30 September 2014) Prof. K. de Jager 2 2
Member (until 30 September 2014) Dr D. Lewis 2 2
Member (until 30 September 2014) Prof. J.A. Ogude 2 1
Member (until 30 September 2014) Prof. A. Oliphant 2 1
Member (until 30 September 2014) (from 1 December 2014)
Ms M. Rall 2 2
Member (until 30 September 2014) Dr W.P. Rowland 2 2
Member (until 30 September 2014) Prof. M.F. Titlestad 2 2
Member (until 30 September 2014) Prof. P.S. Walters 2 1
Chair (from 1 December 2014) Ms J. Williams 2 -
Director Ms B.A. Thomas 2 2
Manager: Curatorial Division Ms C.A. Warren 2 2
Manager: Education and Public Programmes Mr T.Z. Matshoba 2 2
ANNUAL REPORT 2014/2015
37
5.3 REMUNERATION OF COUNCIL MEMBERS
The outgoing Council members, including the chair, were paid R500.00 per Council meeting. This is
significantly less than the rate approved by National Treasury for office bearers of statutory and other
institutions. The incoming Council, at its meeting on 27 February 2015, adopted the maximum rate of
remuneration approved by National Treasury. This additional expenditure is, in terms of regulation, being
defrayed from NELM’s existing budget allocation. Members are entitled to claim for out-of-pocket expenses
in attending meetings, e.g. use of private vehicles and airport parking.
NAME
REMUNERATION R
OTHER RE-IMBURSEMENTS
R TOTAL
R
Prof. K. de Jager 1 000 - 1 000
Prof. D.C. Klopper - - -
Dr D. Lewis 1 000 - 1 000
Mrs P. Madiba - - -
Mr P. Mtheleli - - -
Prof. J.A. Ogude 500 - 500
Prof. A. Oliphant 500 - 500
Ms M. Rall 1 000 515 1 515
Dr W.P. Rowland 1 000 2 654 3 654
Mr H. Smith 1 000 - 1 000
Prof. M.F. Titlestad 1 000 - 1 000
Mr G. Dlanjwa 1 344 1 944 3 288
Ms S. Nhlabatsi 1 216 - 1 216
Ms E. Dido 1 080 - 1 080
Mr D. Maahlamela 1 080 - 1 080
Dr U. Roopnarain 1 080 - 1 080
Ms J. Williams 1 080 - 1 080
6. RISK MANAGEMENT
The Council of NELM approved a Risk Management Policy in 2011. The purpose of this policy is to articulate
NELM’s risk management philosophy. NELM recognises that risk management is a systematic and
formalised process to identify, assess, manage and monitor risks and therefore adopts a comprehensive
approach to the management of risk.
The Audit Committee serves the dual function of a Risk Management Committee. Risk assessments are
carried out annually to identify risks and determine a risk mitigation plan. A progress report on risk
mitigation forms part of the Quarterly Report submitted to the Executive Authority.
7. INTERNAL AUDIT AND AUDIT COMMITTEE
7.1 INTERNAL AUDIT
The internal audit activity evaluates and contributes to the improvement of risk management, control and
governance systems. The objective is to ensure that:
NATIONAL ENGLISH LITERARY MUSEUM
38
─ risks are appropriately identified and managed;
─ significant financial, managerial and operating information is accurate, reliable and timely;
─ employees’ actions are in compliance with policies, standards, procedures and applicable laws and
regulations; and
─ resources are acquired economically, used efficiently and adequately protected.
The focus of internal control reviews during the year under review was on human resources and the
payroll, supply chain management and fixed asset management. The internal audit function at NELM is
outsourced.
7.2. AUDIT AND RISK MANAGEMENT COMMITTEE
The Audit Committee is an independent committee responsible for oversight of reporting processes and
systems of internal control. It also assists the Council of NELM to review the risk management processes
and the effectiveness of risk management activities.
DESIGNATION NAME MEETINGS SCHEDULED
MEETINGS ATTENDED
Chair (until 27 February 2015) Mr L. Kruiskamp 5 5
Member Mr H. Harnett 5 4
Member (until 30 April 2014) Mr P. Mtheleli 5 -
Member Prof. P.S. Walters 5 4
Member (from 27 February 2015) Ms S. Nhlabatsi 5 -
Director (ex officio) Ms B.A. Thomas 5 5
7.3 REMUNERATION OF AUDIT COMMITTEE MEMBERS
The chair of the Audit Committee was paid R1 000.00 per meeting and other members R600.00 per
meeting. This is significantly less than the rate approved by National Treasury for members of commissions,
commissions of inquiry and audit committees. The incoming Council, at its meeting on 27 February 2015,
adopted the maximum rate of remuneration approved by National Treasury. This additional expenditure is,
in terms of regulation, being defrayed from NELM’s existing budget allocation.
NAME
REMUNERATION R
OTHER RE-IMBURSEMENTS
R TOTAL
R
Mr H. Harnett 1 200 - 1 200
Mr L. Kruiskamp 3 000 - 3 000
Mr P. Mtheleli - - -
Prof. P.S. Walters - - -
Ms S. Nhlabatsi - - -
8. COMPLIANCE WITH LAWS AND REGULATIONS
A few compliance issues raised in the 2013/2014 audit report were considered by management to be mid-
level risks during the 2014/2015 risk assessment exercise. Controls were put in place to limit the possibility
of these risks. The attendance of the Director and Chief Financial Officer at forums hosted by the
ANNUAL REPORT 2014/2015
39
Governance Directorate of Department of Arts and Culture and National Treasury has proved worthwhile,
especially the contact with other entities of similar size and capacity.
All NELM’s policies are systematically being reviewed in terms of compliance. However, a number of
compliance measures remain a challenge because of NELM’s relatively small size and limited capacity.
NELM cannot consider retrenchments in other divisions to resource the administrative division at this time.
9. FRAUD AND CORRUPTION
The Council of NELM approved a Fraud Prevention and Anti-Corruption Strategy, inclusive of policy, control
strategies and procedures for investigations, in 2011. The staff of NELM have been made aware of this
policy and the Department of Arts and Culture’s Anti-Fraud and Corruption Campaign.
Fraud and corruption is a standing item on staff meeting agendas and the toll-free hotline for reporting
suspected fraud and corruption is displayed on the staff notice board.
10. MINIMISING CONFLICT OF INTEREST
Council members of NELM are required to declare conflicts of interest at every meeting. All employees are
required to disclose to the Council of NELM particulars of any registrable interests.
11. CODE OF CONDUCT
NELM is a member of the International Council of Museums and subscribes to its Code of Ethics.
12. HEALTH AND SAFETY AND ENVIRONMENTAL ISSUES
NELM established a Health and Safety Committee in 2010. The Committee meets once a month and
undertakes inspections of the premises on a regular basis. Healthy and safety issues are reported to NELM
management for action.
The Council of NELM adopted an Environmental Policy in 2011. The primary objective of this policy is to
ensure that the museum makes use of resources, from paper to electricity, in a manner that minimises and
ultimately eradicates unnecessary waste.
NATIONAL ENGLISH LITERARY MUSEUM
40
REPORT OF THE AUDIT COMMITTEE OF THE NATIONAL ENGLISH LITERARY MUSEUM
We are pleased to present our report for the financial year ended 31 March 2015.
AUDIT COMMITTEE RESPONSIBILITY
The Audit Committee reports that it has complied with its responsibilities arising from sections 51(1)(a)(ii) and
76(4)(d) of the Public Finance Management Act, Act No. 1 of 1999, and Treasury Regulation 27. The Audit
Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter,
has regulated its affairs in compliance with this Charter and has discharged all its responsibilities as contained
therein and its responsibilities relating to risk management.
The Audit Committee held five meetings in the year under review. Details of the Audit Committee’s membership,
meeting attendance and remuneration can be found on page 38.
THE EFFECTIVENESS OF INTERNAL CONTROL
Our review of the findings of the internal audit work which was based on the risk assessments conducted in the
public entity, revealed certain weaknesses, which were then raised with the public entity.
The following internal audit work was completed during the year under review:
─ Internal audit assignments
◦ human resources and payroll;
◦ corporate governance and compliance;
◦ commitments, contracts, projects and contingencies; and
◦ follow-up of internal and external audit control deficiencies.
─ Financial and control audits
◦ fixed asset management;
◦ banking; and
◦ procurement, including supply chain management and expenditure.
Internal audit tested the completeness of the asset register and the existence of assets and made
recommendations to management which were subsequently carried out.
IN-YEAR MANAGEMENT AND QUARTERLY REPORTS
The public entity has submitted quarterly reports to the Executive Authority.
EVALUATION OF FINANCIAL STATEMENTS
We have reviewed and discussed the audited Annual Financial Statements included in the Annual Report with the
Director, acting on behalf of the Council – NELM’s accounting authority, reviewed changes in accounting policies
and practices, and reviewed and endorsed adjustments resulting from the audit.
AUDITOR’S REPORT
The Audit Committee concurs and accepts the conclusions of the external auditor on the Annual Financial
Statements and is of the opinion that the audited Annual Financial Statements be accepted and read together
with the report of the Auditor-General. However, the Audit Committee is concerned about the following matters
which gave rise to the Auditor-General’s qualified opinion:
ANNUAL REPORT 2014/2015
41
Contingent liability: Auditor-General’s fee
In terms of section 23(6) of the Public Audit Act, Act No. 25 of 2004, NELM should only be liable for an audit fee
not exceeding 1% of its total expenditure and the excess must be defrayed from the National Treasury’s vote.
In previous years, NELM did not raise a liability for their full audit fees and the Office of the Auditor-General was in
agreement with this. Negotiations with them resulted in NELM disclosing an outstanding balance of R1 800 000 at
the end of the 2013/2014 financial year and we were confident that National Treasury would, on receipt of the
required documentation from the Office of the Auditor-General, settle the outstanding balance. The amount
outstanding at 31 March 2015 is R1 569 024.
The Auditor-General was not, as required in terms of Treasury Regulation 27.1.13, in attendance at any Audit Committee meetings for the year under review; consequently this issue remains unresolved.
Accounting for Heritage Assets
The Auditor-General’s finding as a result of NELM not valuing its heritage assets highlights one of the issues that
the museum profession in South Africa has with the implementation of GRAP 103: section 5.2 of the ICOM Code of
Ethics reads: “… when the museum itself may be the beneficiary, appraisal of an object or specimen must be
undertaken independently.” As it is contrary to the ICOM Code of Ethics, museum professionals are not trained in
appraisal and are therefore not competent to do so or to establish a provisional amount. Appraisals must be
carried out, at considerable cost, by the private sector. The Chief Financial Officers of the national museums have
costed the implementation of GRAP 103 and, together with the Department of Arts and Culture, have applied to
National Treasury for funds to implement GRAP 103. The Minister of Arts and Culture has been extensively briefed
on the matter and has consequently made application to the Minister of Finance to extend the full
implementation of the Standard. Unfortunately, no outcome on this petition was received before or during the
audit.
Supply Chain Management
The Audit Committee has noted the issues relating to supply chain management and is satisfied that the
management of NELM will take steps to ensure that this is corrected without delay.
Other matters
The Audit Committee will review the Auditor-General’s Management Report and NELM management’s response
thereto, and will task internal audit with instituting a process of monitoring the implementation of the Auditor-
General’s recommendations.
The Audit Committee noted that the Internal Auditor resigned, and that NELM management has commenced with
the process of procuring a new service provider.
MS LINDSAY WEBBER
CHAIR OF THE AUDIT COMMITTEE DATE: 31 July 2015
43
PART D
HUMAN RESOURCE MANAGEMENT
NATIONAL ENGLISH LITERARY MUSEUM
44
1. INTRODUCTION
NELM’s organisational structure was reviewed in 2013, rationalising the management structure and
streamlining functional areas.
The administrative staff at NELM are subject to considerable work pressure as a result of ever-evolving
compliance measures; NELM has neither a human resources section nor a supply chain section, both of
which require a great deal of expertise to administer. The new organisational structure makes provision for
the expansion of the administrative division and NELM was able to fund one of these posts on a part-time,
fixed-term contract basis. NELM will not consider retrenchments in other divisions to further resource the
administrative division at this time.
2. HUMAN RESOURCE OVERSIGHT STATISTICS
Personnel cost by programme
PROGRAMME NUMBER OF EMPLOYEES
TOTAL EXPENDITURE
R’000
PERSONNEL EXPENDITURE
R’000
PERSONNEL EXPENDITURE
AS % OF TOTAL R’000
AVERAGE COST PER EMPLOYEE
R’000
Administrative Division 10 4 619 2 260 49% 226
Curatorial Division 18 3 604 3 232 90% 180
Education and Public Programmes Division 8 1 885 1 794 95% 224
ALL PROGRAMMES 36 10 108 7 286 72% 202
Museum core functions are labour intensive. Collections development and the development of the
database are the principal non-personnel costs in the Curatorial Division. Education and Public Programmes
is a service-oriented division focusing on exhibitions and public programmes – mainly to school learners.
Travel and subsistence, exhibition printing and hosting of events are the main non-personnel expenditure
items.
Personnel cost by salary band
LEVEL NUMBER OF EMPLOYEES
PERSONNEL EXPENDITURE
R’000
% OF PERSONNEL
EXPENDITURE R’000
AVERAGE COST PER EMPLOYEE
R’000
Top management 1 681 9% 681
Senior management 3 1 410 19% 470
Professional specialists 7 2 025 28% 289
Skilled professionals 6 1 754 24% 292
Professional and administrative support 3 583 8% 194
Semi-skilled administrative and technical support 5 659 9% 132
Contract 1 98 1% 98
Casuals (student 7 37 1% 5
ANNUAL REPORT 2014/2015
45
LEVEL NUMBER OF EMPLOYEES
PERSONNEL EXPENDITURE
R’000
% OF PERSONNEL
EXPENDITURE R’000
AVERAGE COST PER EMPLOYEE
R’000
assistants)
Casuals (relief staff) 3 39 1% 13
ALL LEVELS 36 7 286 100% 202
Performance rewards
PROGRAMME PERFORMANCE
REWARDS
PERSONNEL EXPENDITURE
R’000
PERFORMANCE REWARDS AS % OF PERSONNEL
EXPENDITURE R’000
Administrative Division - 2 260 0%
Curatorial Division - 3 232 0%
Education and Public Programmes Division - 1 794 0%
ALL PROGRAMMES - 7 286 0%
PROGRAMME PERFORMANCE
REWARDS
PERSONNEL EXPENDITURE
R’000
PERFORMANCE REWARDS AS % OF PERSONNEL
EXPENDITURE R’000
Top management - 681 0%
Senior management - 1 410 0%
Professional specialists - 2 025 0%
Skilled professionals - 1 754 0%
Professional and administrative support - 583 0%
Semi-skilled administrative and technical support - 659 0%
Contract - 98 0%
ALL LEVELS - 7 210 0%
NATIONAL ENGLISH LITERARY MUSEUM
46
Training costs
PROGRAMME
NUMBER OF EMPLOYEES
TRAINED
PERSONNEL EXPENDITURE
R’000
TRAINING COSTS R’000
TRAINING COSTS AS % OF
PERSONNEL EXPENDITURE
R’000
AVERAGE TRAINING COST PER
EMPLOYEE R’000
Administrative Division 2 2 260 1 0.03% -
Curatorial Division 9 3 232 16 0.50% 2
Education and Public Programmes Division 4 1 794 6 0.33% 1
ALL PROGRAMMES 15 7 286 23 0.31% 2
PROGRAMME
NUMBER OF EMPLOYEES
TRAINED
PERSONNEL EXPENDITURE
R’000
TRAINING COSTS R’000
TRAINING COSTS AS % OF
PERSONNEL EXPENDITURE
R’000
AVERAGE TRAINING COST PER
EMPLOYEE R’000
Top management 1 681 0.5 0.04% 0.3
Senior management 2 1 410 2 0.17% 1
Professional specialists 6 2 025 12 0.59% 2
Skilled professionals 5 1 754 8 0.45% 2
Professional and administrative support 1 583 0.5 0.05% 0.3
Semi-skilled administrative and technical support - 659 - - -
Contract - 98 - - -
Casuals (student assistants) - 37 - - -
Casuals (relief staff) - 39 - - -
ALL LEVELS 15 7 286 23 0.31% 2
Training expenditure has once again focused on museology and heritage management and the attendance
at conferences for professional development. Two staff members completed the First Aid level III course.
One staff member is studying archives and records management through Unisa.
ANNUAL REPORT 2014/2015
47
Employment and vacancies
PROGRAMME
2013/2014 APPROVED (FUNDED)
POSTS
2013/2014 NUMBER OF EMPLOYEES
2014/2015 APPROVED (FUNDED)
POSTS
2014/2015 NUMBER OF EMPLOYEES
2014/2015 NUMBER OF VACANCIES
VACANCY RATE %
Administrative Division 9 9 10 10 - -
Curatorial Division 18 18 18 18 - -
Education and Public Programmes Division 7 7 7 8 - -
ALL PROGRAMMES 34 34 35 36 - -
LEVEL
2013/2014 APPROVED (FUNDED)
POSTS
2013/2014 NUMBER OF EMPLOYEES
2014/2015 APPROVED (FUNDED)
POSTS
2014/2015 NUMBER OF EMPLOYEES
2014/2015 NUMBER OF VACANCIES
VACANCY RATE %
Top management 1 1 1 1 - -
Senior management 3 3 3 3 - -
Professional specialists 5 7 7 7 - -
Skilled professionals 8 6 6 6 - -
Professional and administrative support 3 3 3 3 - -
Semi-skilled administrative and technical support 5 5 5 5 - -
Contract - - 1 1 - -
Casuals (student assistants) 7 7 7 7 - -
Casuals (relief staff) 2 2 2 3 - -
ALL LEVELS 34 34 35 36 - -
Employment changes
LEVEL
NUMBER OF EMPLOYEES
AT BEGINNING OF PERIOD
APPOINT-MENTS
TERMINAT-IONS
NUMBER OF EMPLOYEES AT END OF
PERIOD
Top management 1 - - 1
Senior management 3 - - 3
Professional specialists 7 - - 7
Skilled professionals 6 - - 6
Professional and administrative support 3 - - 3
Semi-skilled administrative and 5 - - 5
NATIONAL ENGLISH LITERARY MUSEUM
48
LEVEL
NUMBER OF EMPLOYEES
AT BEGINNING OF PERIOD
APPOINT-MENTS
TERMINAT-IONS
NUMBER OF EMPLOYEES AT END OF
PERIOD
technical support
Contract - 1 - 1
Casuals (student assistants) 7 7 7 7
Casuals (relief staff) 2 1 1 2
TOTAL 34 9 8 35
Reasons for staff leaving
LEVEL NUMBER %
Death 1 3%
Resignation - -
Dismissal - -
Retirement - -
Ill health - -
Expiry of contract 7 20%
TOTAL 8 23%
An additional part-time, fixed-term contract post in the Administrative Division was funded from savings
when a senior staff member at the level of professional specialist resigned in the previous year and the post
was filled at entry level. NELM employs seven student contract workers, a relief curator and a relief night
watchman. The contracts of the students expired and the relief curator passed away. All eight vacancies
were filled.
Labour relations: misconduct and disciplinary action
NATURE OF DISCIPLINARY ACTION NUMBER
Verbal warning -
Written warning -
Final written warning -
Dismissal -
TOTAL -
ANNUAL REPORT 2014/2015
49
Equity target and employment equity status
LEVEL
MALES
AFRICAN COLOURED INDIAN WHITE
CURRENT TARGET CURRENT TARGET CURRENT TARGET CURRENT TARGET
Top management - 1 - - - - - -
Senior management 1 1 - - - 1 1 -
Professional specialists - 2 - - - - 2 -
Skilled professionals - 2 - - - - 4 -
Professional and administrative support 1 1 - 1 - - - -
Semi-skilled administrative and technical support 2 3 1 1 - - 1 -
Contract - - - - - - - -
Casuals (student assistants) 3 2 - - - - 1 -
Casuals (relief staff) 1 1 - - - - 1 -
TOTAL 8 13 1 2 - 1 10 -
LEVEL
FEMALES
AFRICAN COLOURED INDIAN WHITE
CURRENT TARGET CURRENT TARGET CURRENT TARGET CURRENT TARGET
Top management - - - - - - 1 -
Senior management - - - - - - 1 1
Professional specialists - 3 - - - - 5 1
Skilled professionals - 4 - - - - 2 -
Professional and administrative support - - 1 1 - - 1 1
Semi-skilled administrative and technical support 1 1 - - - - - -
Contract - - - - - - 1 -
Casuals (student assistants) - 5 - - - - 3 -
Casuals (relief staff) - 1 - - - - - -
TOTAL 1 14 1 1 - - 14 3
LEVEL
DISABLED
AFRICAN COLOURED INDIAN WHITE
CURRENT TARGET CURRENT TARGET CURRENT TARGET CURRENT TARGET
Top management - - - - - - - -
Senior management - - - - - - - -
NATIONAL ENGLISH LITERARY MUSEUM
50
20
25
30
35
40
45
50
55
60
65
70
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
WHITE
BLACK ANDCOLOURED
LEVEL
DISABLED
AFRICAN COLOURED INDIAN WHITE
CURRENT TARGET CURRENT TARGET CURRENT TARGET CURRENT TARGET
Professional specialists - - - - - - - -
Skilled professionals - - - - - - - -
Professional and administrative support - - - - - - - -
Semi-skilled administrative and technical support - - - - - - - -
Contract - - - - - - - -
Casuals (student assistants) - - - - - - - -
Casuals (relief staff) - - - - - - - -
TOTAL - - - - - - - -
Although NELM has a very low staff turnover, posts occupied by staff members aged 55 and over (vertical
axis), all of which are white, have been identified for improving NELM’s employment equity status when the
post holders’ retire. The targets indicated above therefore represent a ten year plan.
51
PART E
FINANCIAL INFORMATION
NATIONAL ENGLISH LITERARY MUSEUM
52
ANNUAL FINANCIAL STATEMENTS 2014/2015
53
NATIONAL ENGLISH LITERARY MUSEUM
54
ANNUAL FINANCIAL STATEMENTS 2014/2015
55
NATIONAL ENGLISH LITERARY MUSEUM
56
STATEMENT OF RESPONSIBILITY FOR FINANCIAL INFORMATION
The Public Finance Management Act, Act No. 1 of 1999, as amended, requires the Council to ensure that NELM
keeps full and proper records of its financial affairs. The Annual Financial Statements should fairly present the
state of affairs of NELM, its financial results, its performance against predetermined objectives and its financial
position at the end of the year.
The Annual Financial Statements are the responsibility of the Council. The Auditor-General of South Africa is
responsible for independently auditing and reporting on the financial statements. The Auditor-General of South
Africa has audited NELM’s financial statements and his report appears on pages 52-55.
The financial statements have been prepared in accordance with the prescribed standards of GRAP including any
interpretation of such statements issued by the Accounting Standards Board. These Annual Financial Statements
are based on appropriate accounting policies, supported by reasonable and prudent judgements and estimates.
The Council has reviewed NELM’s budgets and cash flow forecasts for the year ended 31 March 2016. On the basis
of the review, and in view of the current financial position, the Council has every reason to believe that NELM will
be a going concern in the year ahead and has continued to adopt the going concern basis in preparing the financial
statements.
The Council sets standards to enable management to meet the above responsibilities by implementing systems of
internal control and risk management, where possible, that are designed to provide reasonable, but not absolute
assurance against material misstatements and losses. The entity maintains internal financial controls to provide
assurance regarding the safeguarding of assets against unauthorised use or disposition, and the maintenance of
proper accounting records and the reliability of financial information used within NELM or for publication.
The controls contain self-monitoring mechanisms, and actions are taken to correct deficiencies as they are
identified. Even an effective system of internal control, no matter how well designed, has inherent limitations,
including the possibility of circumvention or the overriding of controls. An effective system of internal control,
therefore, aims to provide reasonable assurance with respect to the reliability of financial information and the
presentation of financial statements. However, because of changes in conditions, the effectiveness of internal
financial controls may vary over time.
The Council has reviewed NELM’s systems of internal control and risk management for the period 1 April 2014 to
31 March 2015. The Council is of the opinion that NELM’s systems of internal control and risk management were
effective for the period under review.
In the opinion of the Council, based on the information available to date, the Annual Financial Statements fairly
present the financial position of NELM at 31 March 2015 and the results of its operations and cash flow
information for the year.
The Annual Financial Statements for the year ended 31 March 2015, set out on pages 57 to 92, were submitted for
auditing on 30 May 2014 and approved by the Council in terms of section 51(1)(f) of the Public Finance
Management Act, Act No. 1 of 1999, as amended by Act No. 29 of 1999, and are signed on its behalf by:
MR GCINISIZWE DLANJWA
CHAIR OF COUNCIL DATE: 31 July 2015
ANNUAL FINANCIAL STATEMENTS 2014/2015
57
ACCOUNTING AUTHORITY’S REPORT FOR THE YEAR ENDED 31 MARCH 2015
Report by the Council to the Executive Authority, the Minister of Arts and Culture, and Parliament of the Republic
of South Africa.
1. REVIEW OF OPERATIONS
Total revenue
Total revenue for the year was R8 973 262 (2014: R8 498 498) which is an increase of 5.6 % on the previous
year.
Deficit
A loss of R264 234 was incurred in the year under review (2014: surplus R195 948).
Cash and cash equivalents decreased by R73 011 from R354 613 in 2014 to R281 602 in the year under
review.
Last year’s surplus of R195 948 was not transferred out of the current account to investments and was
subsequently utilised to increase the amount budgeted for NELM’s digitisation project. Other significant
budget adjustments were to staff travel and subsistence and the production of the new exhibitions at
Schreiner House – a capital expense – which was funded from investments.
The increased strategic and management support by the Department of Arts and Culture is of great benefit
to the institution but travelling costs are high, especially because NELM is not situated in a major centre.
Attendance by staff at DAC workshops and forums, as well as the CFO’s forums hosted by National
Treasury, is essential in order to maintain our relationship with our funders and to keep abreast of any new
developments in the governance framework. However, in the coming years NELM needs to look at ways to
diversify its income to supplement the subsidy received from the DAC.
Events subsequent to balance sheet
There are no subsequent events that need to be reported on.
Other major items
Council is concerned that no further progress has been made with the Office of the Auditor-General to
resolve the matter of NELM’s outstanding audit fees. In terms of section 23(6) of the Public Audit Act, Act
No. 25 of 2004, NELM should only be liable for an audit fee of 1% of its total expenditure and National
Treasury should, on receipt of the relevant invoices from the Office of the Auditor General, settle the
balance. In past years NELM has corresponded with National Treasury on this matter and been informed
that they require the submission from Auditor-General to submit the accounts. Despite repeated requests
over a number of years, no assurance has been received that the Office of the Auditor-General has
submitted the required documentation to National Treasury. The amount outstanding at 31 March 2015 is
R1 569 024 (2014: R1 746 091).
2. PRINCIPAL ACTIVITIES OF THE MUSEUM
NELM houses a comprehensive collection of resources relating to southern African literature in English. The
collection provides material for the preparation of a variety of temporary and travelling exhibitions and is
accessible to visiting researchers and scholars on request.
NATIONAL ENGLISH LITERARY MUSEUM
58
NELM offers curriculum-related educational programmes for learners and opportunities for lifelong
learning for adults. The schools’ programmes combine literary themes with outdoor environmental
education providing an intellectually stimulating, fun and creative learning experience.
NELM’s satellite museums, Schreiner House in Cradock and the Eastern Star Gallery in Grahamstown,
conserve and present two important aspects of the writing and publishing heritage of South Africa.
3. MATERIALITY AND SIGNIFICANCE FRAMEWORK FOR THE 2013/2014 FINANCIAL YEAR
In terms of the Public Finance Management Act and National Treasury Regulation 28.1.5, the Council of
NELM has developed and agreed to a framework of acceptable levels of materiality and significance. See
ANNEXURE A.
4. APPROVAL
The Annual Financial Statements set out hereunder have been approved by the Council and are signed on
its behalf by:
MR GCINISIZWE DLANJWA
CHAIR OF COUNCIL DATE: 31 July 2015
ANNUAL FINANCIAL STATEMENTS 2014/2015
59
NATIONAL ENGLISH LITERARY MUSEUM STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2015 NOTES 2015
R
2014 (Restated)
R
ASSETS
Non-current assets 4 476 212 4 363 498
Property, plant and equipment 2 891 670 805 532
Heritage assets 3 2 842 543 2 344 502
Investments 5 741 999 1 213 464
Current assets 1 254 008 1 367 308
Inventories 4 74 603 82 195
Investments 5 763 573 836 637
Trade and other receivables 6 134 230 93 863
Cash and cash equivalents 7 281 602 354 613
TOTAL ASSETS 5 730 220 5 730 808
NET ASSETS AND LIABILITIES
Net assets 2 389 873 2 654 107
Accumulated funds 2 389 873 2 654 107
Non-current liabilities 3 190 000 2 868 000
Provision for post-retirement medical benefits 11 3 190 000 2 868 000
Current liabilities 150 347 208 699
Trade and other payables 12 150 347 208 699
TOTAL NET ASSETS 5 730 220 5 730 806
NATIONAL ENGLISH LITERARY MUSEUM
60
NATIONAL ENGLISH LITERARY MUSEUM STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2015 NOTES 2015
R
2014 (Restated)
R
Revenue 8 8 966 597 8 494 987
Other income 9 6 665 3 511
Total revenue 8 973 262 8 498 498
Expenditure 10 (9 365 256) (9 304 716)
(Loss) from operations (391 994) (806 218)
Interest received 127 760 147 166
Actuarial gain in provision for post-retirement medical benefits 11.1 - 855 000
(DEFICIT)/SURPLUS FOR THE YEAR (264 234) 195 948
ANNUAL FINANCIAL STATEMENTS 2014/2015
61
NATIONAL ENGLISH LITERARY MUSEUM STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2015
Accumulated funds
(Restated) R
Total
(Restated) R
Balance at 1 April 2013 2 463 835 2 463 835
Prior year adjustment: Property Plant and Equipment corrected 20.1 (5 676) (5 676)
Restated balance 2 458 159 2 458 159
Surplus for the year 195 948 195 948
Balance at 31 March 2014 2 654 107 2 654 107
Loss for the year (264 234) (264 234)
BALANCE AT 31 MARCH 2015 2 389 873 2 389 873
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NATIONAL ENGLISH LITERARY MUSEUM CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2015
NOTES 2015
R
2014 (Restated)
R
Cash flows from operating activities
Receipts
Service fees, royalties, sales, donations and salary contribution from IYM 275 896 300 837
State subsidy: Department of Arts and Culture 8 657 000 8 148 000
Payments
Compensation of employees (7 266 254) (6 945 049)
Administration and other expenses (1 668 972) (1 857 437)
Cash generated (by)/from operations 13.1 (2 330) (353 649)
Interest received 127 760 147 166
Net cash flows from/(to) operating activities 125 430 (206 483)
Cash flows from investing activities
Acquisition of property, plant and equipment (244 929) (106 311)
Acquisition of heritage assets (498 041) (259 197)
Movement of investments in securities 544 529 93 398
Net cash flows (to) investing activities 13.2 (198 441) (272 110)
Net cash (decrease) in cash and cash equivalents (73 011) (478 593)
Cash at the beginning of the year 354 613 833 206
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 7 281 602 354 613
ANNUAL FINANCIAL STATEMENTS 2014/2015
63
NATIONAL ENGLISH LITERARY MUSEUM STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 31 MARCH 2015
Actual 2014 R
Original budget
R Adjustments
R
Final approved
budget R
Actual amount
R Difference
R
Receipts
Government subsidies 8 190 782 8 789 359 - 8 789 359 8 701 626 (87 734)
DAC subsidy 8 148 000 8 657 000 - 8 657 000 8 657 000 -
Inxuba Yethemba Municipality 42 782 132 359 - 132 359 44 626 (87 734)
Self-generated income: user charges 88 920 67 925 24 575 92 500 93 211 711
Self-generated income: other than user 46 378 43 880 (880) 43 000 42 909 (91)
Donations 87 723 39 000 6 000 45 000 46 072 1 072
Interest and dividends 153 697 142 000 (14 250) 127 750 127 760 10
Transfer from reserves 286 987 142 000 416 000 558 000 558 000 -
TOTAL RECEIPTS 8 854 487 9 224 164 431 445 9 655 609 9 569 578 (86 031)
Payments
Compensation of employees 6 919 878 7 311 227 - 7 311 227 7 226 215 (85 012)
Salaries and wages 5 867 732 6 176 493 - 6 176 493 6 098 219 (78 274)
Social contributions 1 041 895 1 134 734 - 1 134 734 1 127 996 (6 738)
Use of goods and services 1 570 196 1 387 437 97 945 1 485 382 1 476 368 (9 014)
Advertising and promotions 64 813 52 000 33 000 85 000 84 515 (485)
Agency and support/outsourced services 249 681 252 000 (112 000) 140 000 137 724 (2 276)
Assets less than R500 2 351 2 500 1 275 3 775 3 762 (13)
Audit costs 77 773 90 000 6 714 96 714 96 714 -
Bank charges 20 021 22 000 3 000 25 000 24 893 (107)
Board costs 135 867 128 000 27 500 155 500 155 238 (262
Bursaries (employees) 11 310 5 000 6 750 11 750 11 592 (158)
Catering 12 018 9 900 14 100 24 000 23 382 (618)
Communication 78 452 46 600 48 400 95 000 94 772 (228)
Computer services 14 074 155 000 (143 000) 12 000 11 526 (474)
Consultants 318 588 84 600 81 000 165 600 165 597 (3)
Entertainment 1 500 5 000 (2 750) 2 250 2 138 (112)
Inventory 14 487 20 000 2 250 22 250 22 109 (141)
Legal fees 13 151 5 000 (1 250) 3 750 3 707 (43)
Insurance 19 228 24 000 (4 000) 20 000 19 068 (932)
Printing and publication 58 194 80 000 (12 500) 67 500 67 322 (178)
Property payments 22 994 34 500 3 500 38 000 37 882 (118)
Repairs and maintenance to capital ass 69 439 23 000 52 800 75 800 75 748 (52)
Training and staff development 51 603 30 000 (6 000) 24 000 23 166 (834)
Travel and subsistence 188 437 171 200 78 800 250 000 249 411 (589)
Other unclassified expenditure 8 463 147 137 20 356 167 493 166 103 (1 390)
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Actual 2014 R
Original budget
R Adjustments
R
Final approved
budget R
Actual amount
R Difference
R
Transfers and subsidies 137 751 113 500 9 500 123 000 121 898 (1 102)
Municipalities (rates) 123 473 1 100 1 900 3 000 2 830 (170)
Households (post-retirement benefits) 104 570 112 400 7 600 120 000 119 068 (932)
8 718 117 8 812 164 107 445 8 919 609 8 824 481 (95 128)
Receipts less payments 136 370 412 000 324 000 736 000 745 097 9 097
Payments for capital assets
Vehicles - - - - - -
Computer equipment 24 599 245 000 (45 000) 200 000 172 096 (27 904)
Office equipment, conservation equipment an 41 962 10 500 2 500 13 000 12 757 (243)
Furniture and fittings - 26 500 (26 500) - 1 658 1 658
Library resources 16 604 20 000 (2 000) 18 000 17 617 (383)
Heritage assets: land and buildings - 10 000 405 000 415 000 411 093 (3 907)
Heritage assets: collections 259 165 100 000 (10 000) 90 000 86 008 (3 992)
342 329 412 000 324 000 736 000 701 230 (34 770)
TOTAL PAYMENTS 9 060 446 9 224 164 431 445 9 655 609 9 525 711 (129 897)
ANNUAL FINANCIAL STATEMENTS 2014/2015
65
NATIONAL ENGLISH LITERARY MUSEUM NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015
1 ACCOUNTING POLICIES
1.1 LEGISLATION
The National English Literary Museum (NELM) is governed by the Cultural Institutions Act, Act No. 119 of
1998, as amended by the Cultural Laws Second Amendment Act, Act No. 69 of 2001, and operates under
the jurisdiction of a Council appointed by the Minister of Arts and Culture.
1.2 BASIS OF PRESENTATION
The Annual Financial Statements have been prepared on an accrual basis of accounting and are in
accordance with the historical cost convention unless specified otherwise. The Annual Financial Statements
have been prepared in accordance with Standards of Generally Recognised Accounting Practices (GRAP), as
issued by the Accounting Standards Board (ASB), in accordance with Section 91(1) of the Public Finance
Management Act, Act No. 1 of 1999.
The Annual Financial Statements are presented in South African Rands.
1.3 GOING CONCERN
The Annual Financial Statements have been prepared on a going concern basis.
1.4 TAXATION
As from 1 April 2005, the National English Literary Museum was deregistered as a value added tax (VAT)
vendor due to changes in the VAT Act, Section 24(1) of Act No. 45 of 2003 and Act No. 32 of 2004.
The National English Literary Museum has been exempt from taxation.
1.5 SIGNIFICANT JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY
The preparation of financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods affected.
Significant judgements include:
Trade and other receivables
NELM assesses its trade receivables for impairment at the end of each reporting period. In determining
whether an impairment loss should be recorded in surplus or deficit, management makes judgements as to
whether there is observable data indicating a measurable decrease in the estimated future cash flows from
a financial asset.
Useful lives of property, plant and equipment
NELM determines the estimated useful lives and related depreciation charges for property, plant and
equipment. This estimate is based on the condition and use of the individual asset in order to determine
the remaining period over which the asset can and will be used.
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Heritage assets
Heritage assets are culturally significant resources and are shown at cost, are not depreciated due to the
uncertainty regarding their estimated useful lives. The valuation of heritage assets is dependent on the type
of the asset and the availability of reliable information. NELM makes estimates and assumptions about
factors such as the restoration cost, replacement cost and cash flow generating ability in estimating fair
value.
1.6. REVENUE RECOGNITION
1.6.1 Revenue from exchange transactions
Exchange transactions are transactions in which NELM receives assets or services, or has liabilities
extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or
use of assets) to another party in exchange.
Measurement
Revenue is transferred to the statement of financial performance when it is probable that future economic
benefits will flow to NELM and these benefits can be reliably measured. Revenue is measured at the fair
value of the consideration received or receivable, net of discounts. The following specific recognition
criteria must be met before revenue is recognised:
Sale of goods and rendering of services
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership are
transferred to the buyer. NELM as a rule does not charge an entry fee, however where services are
rendered to another party, fees may be charged dependent on a variety of cost factors.
Interest
Interest is recognised, in surplus or deficit, using the effective interest rate method.
1.6.2 Revenue from non-exchange transactions
Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange
transaction, NELM either receives value from another party without directly giving approximately equal
value in exchange, or gives value to another party without directly receiving approximately equal value in
exchange.
Stipulations on transferred assets are in terms of laws and regulations or a binding arrangement imposed
upon the use of a transferred asset by entities external to NELM.
Conditions on transferred assets are stipulations that specify that the future economic benefits or service
potential embodied in the asset is required to be consumed by the recipient as specified, or future
economic benefits or service potential must be returned to the transferor.
Restrictions on transferred assets are stipulations that limit or direct the purposes for which a transferred
asset may be used, but does not specify that future economic benefits or service potential is required to be
returned to the transferor if not deployed as specified.
Recognition
An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue,
except to the extent that a liability is also recognised in respect of the same inflow.
ANNUAL FINANCIAL STATEMENTS 2014/2015
67
As NELM satisfies a present obligation, recognised as a liability in respect of an inflow of resources from a
non-exchange transaction, recognised as an asset, it reduces the carrying amount of the liability recognised
and recognises an amount of revenue equal to that reduction.
Measurement
Revenue from a non-exchange transaction is measured at the amount of the increase in net assets
recognised by NELM. When, as a result of a non-exchange transaction, NELM recognises an asset, it also
recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of
acquisition, unless it is also required to recognise a liability. Where a liability is required to be recognised it
will be measured as the best estimate of the amount required to settle the obligation at the reporting date,
and the amount of the increase in net assets, if any, recognised as revenue. When a liability is subsequently
reduced or a condition is satisfied, the amount of the reduction in the liability is recognised as revenue.
Gifts and donations, including goods and services in kind
Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that
the future economic benefits or service potential will flow to NELM and the fair value of the assets can be
measured reliably. Services in kind are not recognised.
Conditional grants and receipts
Revenue received from conditional grants, donations and funding are recognised as revenue to the extent
that NELM has complied with any of the conditions embodied in the agreement. To the extent that the
conditions have not been met a liability is recognised.
Government transfer payments
Government transfer payments are recognised once the income has been received.
1.7 PROPERTY, PLANT AND EQUIPMENT
Initial recognition and measurement
Property, plant and equipment are tangible non-current assets that are held for use in the supply of goods
or services, or for administrative purposes and are expected to be used for more than one year.
Items of property, plant and equipment are recognised as assets when it is probable that future economic
benefits or service potential associated with the item will flow to NELM and the cost of the item can be
measured reliably.
Items of property, plant and equipment are initially recognised as assets on acquisition date and are initially
recorded at cost where acquired through exchange transactions.
The cost of an item of property, plant and equipment is the purchase price and other costs directly
attributable to bring the asset to the location and condition necessary for it to be capable of operating in
the manner intended by NELM. Trade discounts and rebates are deducted in arriving at the cost at which
the asset is recognised. The cost also includes the estimated costs of dismantling and removing the asset
and restoring the site on which it is operated.
When significant components of an item of property, plant and equipment have different useful lives, they
are accounted for as separate items (major components) of property, plant and equipment. These major
components are depreciated separately over their useful lives.
Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or
monetary assets or a combination of monetary and non-monetary assets, the asset acquired is initially
measured at cost.
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Subsequent measurement
Subsequent to initial recognition, items of property, plant and equipment are measured at cost less
accumulated depreciation and impairment losses.
Subsequent expenditure
Where NELM replaces parts of an asset, it derecognises the part of the asset being replaced and capitalises
the new component.
Subsequent expenditure including major spare parts and servicing equipment qualify as property, plant and
equipment if the recognition criteria are met.
Depreciation
Depreciation is calculated on the depreciable amount, using the straight-line method over the estimated
useful lives of the assets. Components of assets that are significant in relation to the whole asset and that
have different useful lives are depreciated separately. The depreciable amount is determined after taking
into account an asset’s residual value, where applicable.
The assets’ residual values, useful lives and depreciation methods are reviewed at each financial year-end
and adjusted prospectively, if appropriate.
The annual depreciation rates are based on the following estimated useful life of assets:
Motor vehicles 15 years
Electronic and computer equipment 8-10 years
Furniture and fittings 10-12 years
Tools and equipment 8-10 years
Library resources 25 years
Impairments
NELM tests for impairment where there is an indication that an asset may be impaired. An assessment of
whether there is an indication of possible impairment is done at each reporting date. Where the carrying
amount of an item of property, plant and equipment is greater than the estimated recoverable amount (or
recoverable service amount), it is written down immediately to its recoverable amount (or recoverable
service amount) and an impairment loss is charged to the Statement of Financial Performance.
Where items of property, plant and equipment have been impaired, the carrying value is adjusted by the
impairment loss, which is recognised as an expense in the Statement of Financial Performance in the period
that the impairment is identified.
An impairment is reversed only to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined had no impairment been recognised. A reversal of the
impairment is recognised in the Statement of Financial Performance.
Derecognition
Items of property, plant and equipment are derecognised when the asset is disposed of or when there are
no further economic benefits or service potential expected from the use of the asset. The gain or loss
arising on the disposal or retirement of an item of property, plant and equipment is determined as the
difference between the sales proceeds and the carrying value and is recognised in the Statement of
Financial Performance.
ANNUAL FINANCIAL STATEMENTS 2014/2015
69
1.8 HERITAGE ASSETS
Recognition
A heritage asset is recognised as an asset if, and only if:
a. it is probable that future economic benefits or service potential associated with the asset will flow to
NELM, and
b. the cost of the asset can be measured reliably.
Initial measurement
A heritage asset that qualifies for recognition as an asset is measured at its cost.
Subsequent measurement
After recognition as an asset, a heritage asset is carried at its cost less any accumulated impairment losses.
A heritage asset is not depreciated but NELM shall assess at each reporting date whether there is an
indication that it may be impaired. If any such indication exists, NELM will estimate the recoverable amount
or the recoverable service amount of the heritage asset.
Derecognition
The carrying amount of a heritage asset is derecognised:
a. on disposal, or
b. when no future economic benefits or service potential are expected from its use or disposal.
Impairment of heritage assets
Heritage assets will be assessed at each reporting date for any indication of impairment. If any such
indication exists, the asset’s recoverable amount is estimated. The impairment charged to the Statement of
Financial Performance represents the excess of the carrying value over the recoverable amount of the
asset.
An impairment is reversed only to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined had no impairment been recognised. A reversal of the
impairment is recognised in the Statement of Financial Performance.
1.9 IMPAIRMENT OF NON-FINANCIAL ASSETS
NELM assesses at each end of the reporting period whether there is any indication that an asset may be
impaired. If any such indication exists, NELM estimates the recoverable amount of the asset.
If there is any indication that an asset may be impaired, the recoverable amount is estimated for the
individual asset. If it is not possible to estimate the recoverable amount of the individual asset, the
recoverable amount of the cash-generating unit to which the asset belongs is determined. The recoverable
amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in
use. If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset
is reduced to its recoverable amount. That reduction is an impairment loss. An impairment loss of assets
carried at cost less any accumulated depreciation or amortisation is recognised immediately in profit or
loss. Any impairment loss of a revalued asset is treated as a revaluation decrease.
An impairment loss is recognised for cash-generating units if the recoverable amount of the unit is less than
the carrying amount of the units. The impairment loss is allocated to reduce the carrying amount of the
assets on a pro rata basis of the carrying amount of each asset in the unit.
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NELM assesses at each reporting date whether there is any indication that an impairment loss recognised in
prior periods may no longer exist or may have decreased. If any such indication exists, the recoverable
amounts of those assets are estimated.
1.10 FINANCIAL INSTRUMENTS
Financial instruments are recognised when NELM becomes a party to the contractual provisions of the
instrument, and are initially measured at fair value plus, in the case of a financial asset or liability not
subsequently measured at fair value through the Statement of Financial Performance, transaction costs
that are directly attributable to the acquisition or issue of the financial asset or liability. The subsequent
measurement of financial instruments is dealt with as follows:
Financial assets are derecognised when the rights to receive cash flows from the assets have expired or
have been transferred, and NELM has transferred substantially all risks and rewards of ownership, or when
NELM loses control of contractual rights that comprise the assets. Financial liabilities are derecognised
when the obligation specified in the contract is discharged or cancelled or when it expires.
Cash and cash equivalents are measured at amortised cost.
Financial assets
NELM classifies its financial assets according to the following categories:
a. Held to maturity
b. Loans and receivables.
The classification depends on the purpose for which the financial asset is acquired, and is as follows:
a. Held-to-maturity investments are financial assets with fixed or determinable payments and fixed
maturity, where NELM has the positive intent and ability to hold the investment to maturity. They
are subsequently measured at amortised cost, using the effective interest rate method. Any
adjustment is recorded in the Statement of Financial Performance in the period in which it arises.
b. Loans and receivables are financial assets that are created by providing money, goods or services
directly to a debtor. They are subsequently measured at amortised cost, using the effective interest
rate method. Any adjustment is recorded in the Statement of Financial Performance in the period in
which it arises.
Impairment of financial assets
An assessment is performed at each Statement of Financial Position date to determine whether objective
evidence exists that a financial asset is impaired. The carrying amounts of cash investments are reduced to
recognise any decline, in the value of individual investments. This reduction in carrying value is recognised
in the Statement of Financial Performance. Financial assets consist of:
a. Cash and cash equivalents
Cash includes cash on hand and cash with banks. Cash equivalents are short term highly liquid
investments that are held with registered banking institutions with maturities of three months or less
and are subject to an insignificant risk of change in value. For the purposes of the Cash Flow
Statement, cash and cash equivalents comprise cash on hand and deposits held on call with banks
b. Trade and other receivables
Trade and other receivables are initially recognised at fair value. Bad debts are written off in the year
in which they are identified as irrecoverable. Amounts receivable within 12 months from the
reporting date are classified as current. A provision for impairment of other receivables is established
ANNUAL FINANCIAL STATEMENTS 2014/2015
71
when there is objective evidence that NELM will not be able to collect all amounts due according to
the original terms of receivables. An estimate is made for doubtful debts based on past default
experience of all outstanding amounts at year-end.
c. Investments at amortised cost
Investments, which include fixed deposits and short-term deposits invested in registered commercial
banks are categorised as financial instruments at amortised cost and are subsequently measured at
amortised cost. Where investments have been impaired, the carrying value is adjusted by the
impairment loss, which is recognised as an expense in the period that the impairment is identified.
On disposal of an investment, the difference between the net disposal proceeds and the carrying
amount is charged or credited to the Statement of Financial Performance.
Financial liabilities
NELM measures all financial liabilities, including trade and other payables, at amortised costs, using the
effective interest rate method (excluding provisions). Amounts payable within 12 months from the
reporting date are classified as current. Financial liabilities consist of:
a. Trade and other payables
Trade payables are initially measured at fair value and are subsequently measured at amortised cost
using the effective interest rate method.
1.11 INVENTORY
Inventory is initially recognised at cost. Inventory is subsequently valued at the lower of cost or net
realisable value. The basis of determining cost is the first-in, first-out (fifo) method.
Cost of inventories comprises all costs of purchase, cost of conversion, and other costs incurred in bringing
the inventories to their present location and condition.
Redundant and slow-moving inventories are identified at year end and written down from cost to net
realisable value with regard to their estimated economic or realisable values.
1.12 EMPLOYEE BENEFITS
Short term employee benefits
Short term employee benefits encompass all those benefits that become payable in the short term, i.e.
within a financial year or within 12 months after the financial year. Therefore, short term employee
benefits include remuneration, compensated absences and bonuses.
Short term employee benefits are recognised in the Statement of Financial Performance as services that are
rendered, except for non-accumulating benefits, which are recognised when the specific event occurs.
These short term employee benefits are measured at their undiscounted costs in the period the employee
renders the related service or the specific event occurs.
Post-retirement benefits
NELM provides post-retirement medical aid benefits for employees who remain in service up to retirement
age. These benefits are provided as defined benefit plans.
Employees who joined NELM after 31 October 2011 would, after retirement, not be entitled to post-
employment medical benefits.
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Defined benefit plans
NELM belongs to a defined benefit plan which is a post-employment benefit plan under which NELM pays
fixed contributions into a separate entity and will have no legal or constructive obligation to pay further
contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee
services in the current and prior periods.
1.13 PROVISIONS
Provisions are recognised when NELM has a present obligation (legal or constructive) as a result of past
events, and it is probable that an outflow of resources embodying economic benefits or service potential
will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. Provisions are reviewed at the Statement of Financial Position reporting date and adjusted to
reflect the current best estimate.
1.14 BUDGET AND ACTUAL AMOUNTS
NELM presents its approved budget in the Annual Performance Plan on a cash basis.
Entities are typically subject to budgetary limits in the form of appropriations or budget authorisations (or
equivalent), which are given effect through authorising legislation, appropriation or similar. General
purpose financial reporting by entities shall provide information on whether resources were obtained and
used in accordance with the legally adopted budget.
The budget and accounting bases differ. The financial statements differ from the budget, which is approved
on the cash basis. The financial statements are prepared on the accrual basis using a classification on the
nature of expenses in the Statement of Financial Performance.
A reconciliation between the actual amounts on a comparable basis is presented in the Statement of
Comparison of Budget and Actual Amounts.
The Annual Financial Statements and the budget are not on the same basis of accounting, therefore, a
reconciliation between the Statement of Financial Performance and the budget has been included in the
Notes to the Financial Statements. See note 14.
1.15 UNAUTHORISED EXPENDITURE
Unauthorised expenditure is expenditure that has not been budgeted for or expenditure that is not in
terms of the conditions of an allocation received from another sphere of government. Unauthorised
expenditure is accounted for as an expense in the Statement of Financial Performance and where
recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance.
Unauthorised expenditure is disclosed in the Notes to the Financial Statements.
1.16 IRREGULAR EXPENDITURE
Irregular expenditure is expenditure that is incurred in contravention of, or that is not in accordance with, a
requirement of any applicable legislation, including the Public Finance Management Act, Act No .1 of 1999
(as amended), or any regulation made in terms of this Act. Irregular expenditure excludes unauthorised
expenditure. Irregular expenditure is disclosed in the Notes to the Financial Statements.
Irregular expenditure is accounted for as expenditure in the statement of financial performance and where
recovered, it is subsequently accounted for as revenue in the statement of financial performance.
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73
1.17 FRUITLESS AND WASTEFUL EXPENDITURE
Fruitless and wasteful expenditure is expenditure that was made in vain and would have been avoided had
reasonable care been exercised. Fruitless and wasteful expenditure is accounted for as expenditure in the
Statement of Financial Performance and where recovered, it is subsequently accounted for as revenue in
the Statement of Financial Performance. Fruitless and wasteful expenditure is disclosed in the Notes to the
Financial Statements.
Recovery of irregular, fruitless and wasteful expenditure: The recovery of irregular, fruitless and wasteful
expenditure is based on legislated procedures, and is recognised when the recovery thereof from the
responsible officials is probable. The recovery of irregular, fruitless and wasteful expenditure is treated as
other income.
1.18 CONTINGENT LIABILITIES
Contingent liabilities are not recognised but are disclosed in the Notes to the Financial Statements to
achieve fair presentation.
1.19 RELATED PARTIES
Individuals as well as their close family members, and/or entities, are related parties if one party has the
ability, directly or indirectly, to control or jointly control the other party or exercise significant influence
over the other party in making financial and/or operating decisions.
The Department of Arts and Culture is the controlling entity and has ownership control of NELM.
Key management personnel are defined as the Director, Chief Financial Officer and all other managers
reporting directly to the Director or as designated by the Director.
1.20 POST BALANCE SHEET EVENTS
Events after the reporting date are those events, both favourable and unfavourable, that occur between
the reporting date and the date when the financial statements are authorised for issue. Two types of events
can be identified:
a. those that provide evidence of conditions that existed at the reporting date (adjusting events after
the reporting date); and
b. those that are indicative of conditions that arose after the reporting date (non-adjusting events after
the reporting date).
NELM will adjust the amounts recognised in the financial statements to reflect adjusting events after the
reporting date once the event occurred.
NELM will disclose the nature of the event and an estimate of its financial effect, or a statement that such
estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could
influence the economic decisions of users taken on the basis of the financial statements.
1.21 COMPARATIVE INFORMATION
When the presentation or classification of items in the Annual Financial Statements is amended, prior
period comparative amounts are reclassified and restated. The nature and reasons for the reclassification
and restatement are disclosed in the Notes to the Financial Statements.
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1.22 PUBLIC FINANCE MANAGEMENT ACT, 1999 (ACT NO. 1 OF 1999)
Section 54(2)
In terms of the PFMA and Treasury Regulation 28.1.5 the Council has developed and agreed to a framework
of acceptable levels of materiality and significance.
Section 55(2)
No material losses through criminal conduct or fruitless or wasteful expenditure were incurred during the
year. Irregular expenditure has been disclosed in Note 15.
Section 55(3)
Council may not accumulate surpluses unless written approval of the National Treasury has been obtained.
Approval for the retention of the accumulated surplus as at 31 March 2013 was obtained.
1.23 NEW AND AMENDED STANDARDS AND INTERPRETATIONS
The following Standards of GRAP have been issued but are not yet effective:
GRAP 20 Related Party Disclosures
GRAP 32 Service Concession Arrangements: Grantor
GRAP 105 Transfer of Functions Between Entities Under Common Control
GRAP 106 Transfer of Functions Between Entities Not Under Common Control
GRAP 107 Mergers
GRAP 108 Statutory Receivables.
Management has considered all of the above mentioned GRAP standards approved but not yet effective
and anticipates that the adoption of these standards will not have a significant impact on the financial
position, financial performance and cash flow of the entity.
Approved Standards of GRAP that entities are not required to apply:
GRAP 18 Segment Reporting.
ANNUAL FINANCIAL STATEMENTS 2014/2015
75
2. PROPERTY, PLANT AND EQUIPMENT
Motor vehicles
R
Computer equipment
R
Furniture and fittings (Restated)
R
Tools and equipment (Restated)
R
Library resources
R
Total
(Restated) R
Year ended 31 March 2014
Net book value 1 April 2013 104 499 241 180 151 186 83 642 241 003 821 510
Cost 220 552 465 533 341 715 145 755 356 623 1 530 178
Accumulated depreciation (116 053) (224 353) (190 529) (62 113) (115 620) (708 668)
Additions - 30 969 58 738 - 16 604 106 311
Transfer to/(from) - - - - - -
Disposals/scrapped - - - - - -
Depreciation charge (11 910) (50 193) (29 273) (16 030) (14 883) (122 289)
Net carrying amount at 31 March 2014 92 589 221 956 180 651 67 612 242 724 805 532
Cost 220 552 496 502 400 453 145 755 373 227 1 636 489
Accumulated depreciation (127 963) (274 546) (219 802) (78 143) (130 503) (830 957)
Year ended 31 March 2015
Net book value 1 April 2014 92 589 221 956 180 651 67 612 242 724 805 532
Cost 220 552 496 502 400 453 145 755 373 227 1 636 489
Accumulated depreciation (127 963) (274 546) (219 802) (78 143) (130 503) (830 957)
Additions - 214 554 8 479 4 278 17 618 244 929
Transfer to/(from) - - - - - -
Disposals/scrapped - (21 236) (1 133) (627) - (22 996)
Depreciation charge (11 910) (55 693) (33 502) (15 589) (19 101) (135 795)
Net carrying amount at 31 March 2015 80 679 359 581 154 495 55 674 241 241 891 670
Cost 220 552 559 094 403 944 143 125 390 845 1 717 560
Accumulated depreciation (139 873) (199 513) (249 449) (87 451) (149 604) (825 890)
NATIONAL ENGLISH LITERARY MUSEUM
76
Cost
R
Accumulated depreciation
R
Carrying amount
R
Carrying amount at 31 March 2014
Motor vehicles 220 552 127 963 92 589
Electronic and computer equipment 496 502 274 546 221 956
Furniture and fittings 400 453 219 802 180 651
Tools and equipment 145 755 78 143 67 612
Library resources 373 227 130 503 242 724
Total 1 636 489 830 957 805 532
Carrying amount at 31 March 2015
Motor vehicles 220 552 139 873 80 679
Electronic and computer equipment 559 094 199 513 359 581
Furniture and fittings 403 944 249 449 154 495
Tools and equipment 143 125 87 451 55 674
Library resources 390 845 149 604 241 241
Total 1 717 560 825 890 891 670
NOTE Included in property, plant and equipment is electronic and computer equipment with a cost of R35
338, furniture and fittings with a cost of R39 203, and office equipment with a cost of R11 846, that has
been fully depreciated, but is still in use.
3. HERITAGE ASSETS
Moveable heritage assets
With the implementation of GRAP 103 in 2012/2013, NELM undertook an assessment of its collections, by
group, comprising authors’ manuscripts, diaries, correspondence, printers’ proofs, publishers’ archives,
play-scripts, theatre programmes and posters, printing equipment, cultural artefacts, published works of
creative or imaginative writing, literary criticism, reference works, journals, press clippings etc. in order to
determine which should be classified as heritage assets. An assessment of each individual item in the
collections was deemed unfeasible.
It was decided to group the collections as follows:
Authors’ manuscripts, diaries, correspondence, printers’ proofs, publishers’ archives, play-scripts,
theatre programmes and posters, printing equipment, cultural artefacts, published works of creative
or imaginative writing and the like be classified as heritage assets.
Literary criticism, reference works and the like be classified as library resources (property, plant and
equipment).
Journals and press clippings continue to be expensed.
All heritage assets are considered inalienable. They are preserved for their historical and cultural value and
are protected, unencumbered, cared for and preserved and are managed in line with museological best
practice. As the acquisition of these assets date back more than three decades and were previously
expensed, no value can reliably be assigned to acquisitions before 1 April 2012. Only acquisitions in the
ANNUAL FINANCIAL STATEMENTS 2014/2015
77
classes detailed above and purchased in the preceding and year under review have been brought into the
financial statements.
NELM will be implementing GRAP 103 over the three year transitional period. In the first year, 2012/2013,
the collections were assessed and verified. In the year under review, condition assessments were
undertaken. In 2014/2015, no valuations were sought as it is anticipated that the implementation date will
be extended. The effect on prior years has therefore not been disclosed.
Immovable heritage assets
NELM owns two properties, both of which are declared heritage sites. Any costs incurred to enhance or
restore these assets to preserve their indefinite useful life are capitalised. Subsequent measurement will be
at these costs less accumulated impairments.
Immovable property
R
Literary artefacts
R
Published works
R
Creative serials
R
Total
R
Year ended 31 March 2014
Net book value 1 April 2013 1 951 382 23 492 108 886 1 545 2 085 305
Cost or valuation 1 951 382 23 492 108 886 1 545 2 085 305
Accumulated impairment - - - - -
Additions - 185 274 73 159 764 259 197
Impairment charge - - - - -
Net carrying amount at 31 March 2014 1 951 382 208 766 182 045 2 309 2 344 502
Cost or valuation 1 951 382 208 766 182 045 2 309 2 344 502
Accumulated impairment - - - - -
Year ended 31 March 2015
Net book value 1 April 2014 1 951 382 208 766 182 045 2 309 2 344 502
Cost or valuation 1 951 382 208 766 182 045 2 309 2 344 502
Accumulated impairment - - - - -
Additions 411 093 30 576 55 029 1343 498 041
Impairment - - - - -
Net carrying amount at 31 March 2015 2 362 475 239 342 237 074 3 652 2 842 543
Cost or valuation 2 362 475 239 342 237 074 3 652 2 842 543
Accumulated impairment - - - - -
NATIONAL ENGLISH LITERARY MUSEUM
78
Cost
R
Accumulated depreciation
R
Carrying amount
R
Carrying amount at 31 March 2014
Immovable property 1 951 382 - 1 951 382
Literary artefacts 208 766 - 208 766
Published creative works 182 045 - 182 045
Creative serials 2 309 - 2 309
Total 2 344 502 - 2 344 502
Carrying amount at 31 March 2015
Immovable property 2 362 475 - 2 362 475
Literary artefacts 239 342 - 239 342
Published creative works 237 074 - 237 074
Creative serials 3 652 - 3 652
Total 2 842 543 - 2 842 543
4. INVENTORY
2015 R
2014 R
Books and postcards 74 603 82 195
Less: provision for obsolete stock - -
74 603 82 195
The following amounts, related to inventory, were recognised in the
Statement of Financial Performance during the year:
2015 R
2014 R
Cost of inventory sold and written off and included in cost of sales 31 007 53 781
ANNUAL FINANCIAL STATEMENTS 2014/2015
79
5. INVESTMENTS
2015 R
2014 R
Non-current investments
GBS Mutual Bank Fixed deposit: 0253790400013 - 119 145
Fixed deposit: 02537904040 - 424 004
Fixed deposit: 02537904073 60 000 60 000
Fixed deposit: 02537904132 431 999 275 957
Fixed deposit: 02537904154 - 84 358
Fixed period shares: 025379020031 250 000 250 000
741 999 1 213 464
2015 R
2014 R
Current investments
GBS Mutual Bank Subscription shares: 02537903012 - 120 467
Nedbank Corporate Nedcor Income Fund 47 760 44 459
Nedcor Prime Linked deposit 715 813 671 711
763 573 836 637
GBS Fixed deposits: interest is receivable on a monthly basis at an average interest rate of:
Fixed deposit: 02537904073 7.00%
Fixed deposit: 02537904132 7.23%
Fixed period shares: 025379020031 8.50%.
GBS Subscription shares: interest is receivable on a monthly basis at the average rate of 8.50% for the year
under review.
Nedcor Income Fund: Interest is receivable on a monthly basis at the average rate of 6.45% for the year
under review.
Nedcor Prime Linked deposit: interest is receivable on a monthly basis at the average rate of 6.45% for the
year under review.
NATIONAL ENGLISH LITERARY MUSEUM
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6. TRADE AND OTHER RECEIVABLES
2015 R
2014 R
Trade receivables 355 822 238 077
Sundry debtors 15 783 8 466
Interest accrued - -
Less: provision for impairments (237 375) (152 680)
134 230 93 863
Trade receivables: ageing
Current 38 870 10 695
30 days 11 310 10 882
60 days and more 305 642 216 500
355 822 216 500
The fair value of trade and other receivables approximates their carrying value.
The credit quality of the trade debtors is fair.
2015 R
2014 R
Provision for impairments
Opening balance (152 680) (123 202)
Contribution (to)/reversal of provision (84 695) (29 478)
Closing balance (237 375) (152 680)
7. CASH AND CASH EQUIVALENTS
NELM operates a current account with the Standard Bank of South Africa, with no overdraft facility. The
details are as follows:
BANK: Standard Bank of South Africa
ACCOUNT NUMBER: 082 000 956
BRANCH: Grahamstown
BRANCH CODE: 05 09 17
NELM operates a call account with the Standard Bank of South Africa. The details are as follows:
BANK: Standard Bank of South Africa
ACCOUNT NUMBER: 088 808 114
BRANCH: Grahamstown
ANNUAL FINANCIAL STATEMENTS 2014/2015
81
2015 R
2014 R
Cash book balance at bank at beginning of the year 165 167 629 968
Cash book balance on hand at beginning of the year 3 607 3 607
Cash book balance on call account at beginning of the year 60 683 80 629
Cash book balance on money market fund at beginning of the year 125 156 119 002
354 613 833 206
Cash book balance at bank at end of the year 222 479 165 167
Cash book balance on hand at end of the year 4 406 3 607
Cash book balance on call account at end of the year 54 717 60 683
Cash book balance on money market fund at end of the year - 125 156
281 602 354 613
Total bank balances and cash included in the Cash Flow Statement comprise the following Statement of Financial Position amounts:
Cash book balances and cash at end of the year 281 602 354 613
Cash book balances and cash as previously reported (354 613) (833 206)
Bank balances and cash movement (73 011) (478 593)
8. REVENUE
An analysis of the museum’s revenue is as follows:
2015 R
2014 R
Non-exchange activities 8 838 180 8 363 199
State subsidy Department of Arts and Culture 8 657 000 8 148 000
Inxuba Yethemba Municipality (contribution to salary: Curator Schreiner Hous 135 105 127 476
Donations 46 075 87 723
Exchange activities 128 417 131 788
Sales (books and postcards) 36 444 42 868
Royalties/permission rights 64 051 52 006
Research services 8 849 12 999
Education/outreach programmes 17 183 19 125
Facilities hire 1 890 4 790
8 966 597 8 494 987
NATIONAL ENGLISH LITERARY MUSEUM
82
9. OTHER INCOME
An analysis of the museum’s other income is as follows:
2015 R
2014 R
Bad debts recovered - -
Sundry income 6 665 3 511
6 665 3 511
10. EXPENDITURE
An analysis of the museum’s expenditure is as follows:
2015
R
2014 (Restated)
R
Administration expenses 1 401 024 1 588 001
Audit fees 96 714 77 773
Bookshop costs: 31 007 53 781
Opening inventories 82 195 121 489
Purchases 23 415 14 487
Add back closing inventories (74 603) (82 195)
Depreciation 135 795 122 289
Compensation of employees 7 285 739 7 031 632
Basic salaries 5 471 431 5 275 566
Bonuses 457 326 439 238
Housing allowances 161 280 165 200
Pension fund contributions 757 400 708 178
Medical aid contributions 306 793 286 191
Long service award - -
Leave payout - 28 181
Other employer contributions 62 875 57 776
Students and casuals 68 634 71 302
Finance costs 260 000 301 000
Post-retirement benefits 99 570 104 570
Actuarial loss in provision for post-retirement medical benefits 62 000 -
Leave pay (reversal)/accrual (29 589) 25 670
Loss on equipment scrapped 22 996 -
9 365 256 9 304 716
ANNUAL FINANCIAL STATEMENTS 2014/2015
83
11. PROVISION FOR POST-RETIREMENT MEDICAL BENEFITS
2015 R
2014 R
Opening balances: beginning of year 1 April 2 868 000 3 335 000
Provision for post-retirement medical benefits 2 868 000 3 335 000
Additional provisions and (adjustments) 322 000 (467 000)
Provision for post-retirement medical benefits 322 000 (467 000)
Closing balances: end of year 31 March 3 190 000 2 868 000
Provision for post-retirement medical benefits 3 190 000 2 868 000
11.1 Provision for post-retirement medical benefits
The provision for post-retirement medical benefits has been created in line with the accounting policy
GRAP 25 and is based on an actuarial valuation carried out in 2014, with a projection for 2015.
According to the rules of the medical aid fund with which NELM is associated, a member, on retirement, is
entitled to remain a continued member of the medical aid fund. NELM will continue to contribute two-
thirds towards the medical aid membership fees of its existing retirees and all staff employed before 31
October 2011. Staff employed after this date will not be entitled to the two-thirds subsidy.
The most recent actuarial valuation of the present value of the unfunded defined benefit obligation was
carried out as at 31 March 2014 by Momentum Specialised Solutions.
The present value of the defined benefit obligation, and the related current service cost and past service
cost, were measured using the projected unit credit method.
The post-retirement health care benefit plan is a defined benefit plan, of which the members are made up
as follows:
2015 2014
In-service members (employees) 16 16
Continuation members (retirees, widowers and orphans) 4 4
Total 20 20
The liability in respect of past service has been estimated to be as follows:
R R
In-service members 1 807 000 1 709 000
Continuation members 1 383 000 1 159 000
Total liability 3 190 000 2 868 000
NELM makes monthly contributions for health care arrangements to the following medical aid scheme:
Rhodes University Medical Aid Scheme.
The current service cost for the year ending 31 March 2015 is estimated to be R163 000 (2014: R178 000)
whereas the interest cost for the ensuing year is estimated to be R261 000 (2014: R301 000).
The principal assumptions used for the purposes of the actuarial valuations were as follows:
NATIONAL ENGLISH LITERARY MUSEUM
84
2015 2014
(i) Rate of interest
Discount rate 1.20% 1.20%
Health care cost inflation rate 8.00% 8.00%
Expected retirement age – females 65 65
Expected retirement age – males 65 65
(ii) Mortality rates
Pre-retirement SA 1956/62
Post-retirement PA(90)-2
(iii) Normal retirement age
The normal retirement age for employees of the museum was assumed to be 65 years.
2015
R 2014
R
The amounts recognised in the Statement of Financial Position are as follows:
Present value of fund obligations 3 190 000 2 868 000
Fair value of plan assets -
3 190 000 2 868 000
Unrecognised past service cost - -
Unrecognised actuarial gains/(losses) - -
Present value of unfunded obligations 3 190 000 2 868 000
Net liability 3 190 000 2 868 000
The movement in the defined benefit obligation over the year is as follows:
Balance at beginning of year 2 868 000 3 335 000
Recognised past service cost -
Current service cost – included under employee related costs 163 000 178 000
Interest cost – included under finance costs 260 000 301 000
Benefits paid – included under employee related costs (101 000) (91 000)
Actuarial (gain)/loss on the obligation - (855 000)
Balance at end of year 3 190 000 2 868 000
ANNUAL FINANCIAL STATEMENTS 2014/2015
85
2015 R
2014 R
The effect of a 1 % movement in the assumed rate of health care cost inflation is as follows:
Increase
Effect on the current cost and the interest cost 506 506
Effect on the defined benefit obligation 3 357 3 357
Decrease
Effect on the current cost and the interest cost (357) (357)
Effect on the defined benefit obligation (2 472) (2 472)
11.2 DEFINED BENEFIT PLAN
2015 R
2014 R
Pension fund contributions 757 400 708 178
All NELM’s permanent staff except one person, who belongs to the GEPF, belong to the Rhodes University Pension Fund.
12. TRADE AND OTHER PAYABLES
2015 R
2014 R
Sundry creditors – accruals 72 958 102 475
Income received in advance 754 -
Leave pay accrual 76 635 106 224
150 347 208 699
Management of NELM is of the opinion that the carrying value of trade payables approximates their fair
values.
Leave pay accrual
The leave pay accrual relates to NELM’s estimated liabilities arising as a result of services rendered by
employees. This accrual represents the total number of days of capped leave due to employees 54 years
and older plus the balance of current leave for all employees on 31 March 2015 calculated at the current
salary rates.
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86
13. RECONCILIATION OF SURPLUS TO CASH UTILISED IN/GENERATED FROM OPERATIONS
13.1 Cash flows from operating activities
2015
R
2014 (Restated)
R
(Deficit)/surplus for the year (264 234) 195 948
Adjusted for:
Increase/(decrease) in provisions 322 000 (467 000)
Interest received (127 760) (147 166)
Depreciation 135 795 122 289
Loss on scrapping of property, plant and equipment 22 996 -
Operating cash flows before working capital changes 88 797 (295 929)
Changes in working capital
Decrease in inventories 7 592 39 294
(Increase) in trade and other receivables (40 367) (49 661)
(Decrease) in trade and other payables (58 352) (47 353)
(91 127) (57 720)
Cash (utilised)/generated by operations (2 330) (353 649)
13.2 Cash flows from investing activities
2015 R
2014 R
Acquisition of property, plant and equipment (244 929) (106 311)
Acquisition of heritage assets (498 041) (259 197)
Acquisition/(disposal) of investment in securities 544 529 93 398
Net cash flows from investing activities (198 441) (272 110)
14. RECONCILIATION OF ORIGINAL/ADJUSTED BUDGET AND ACTUAL EXPENDITURE
The approved budget covers the period from 1 April 2014 to 31 March 2015. The budget is approved by
functional or programme classification in line with NELM’s strategic objectives. The financial statements
and budget documents are prepared for the same period.
The amounts in the financial statements were recalculated from the accrual basis to the cash basis and
reclassified by functional classification to be on the same basis as the final approved budget.
ANNUAL FINANCIAL STATEMENTS 2014/2015
87
Operating R
Financing R
Investing R
Total R
Actual amount on comparable basis as presented in the budget and actual comparative statement 745 097 - (701 230) 1 446 327
Basis difference (619 667) - (899 671) (1 519 338)
Actual amount in the cash flow statement 125 430 - (198 441) (73 011)
14.1 Budget adjustments
Revenue
Revenue derived from user charges includes royalties from literary executorships held by NELM. This is not
easy to project as it is dependent on demand from publishers.
An additional amount was withdrawn from investments to fund improvements to Schreiner House. Interest
on investments was consequently less.
Last year’s surplus of R194 764 was used to fund NELM’s ongoing digitisation project.
Expenditure
Expenditure on a number of items was increased:
a. Advertising and promotions was increased to cover the costs of an advertisement in the Government
Gazette and for further work on NELM’s new website.
b. Board costs were increased to cover the rising costs of transport and accommodation and
remuneration of Council members.
c. Catering was increased as NELM hosted a number of events and received special guests, notably the
new Deputy Minister of Arts and Culture.
d. The cost of Telkom services.
e. Consultancy services for NELM’s digitisation project.
f. Repair and maintenance of NELM’s vehicle; replacement is unaffordable.
g. Staff travel and subsistence to cover the rising costs of transport and accommodation; management
travel frequently to Pretoria to DAC Forums and to participate in other DAC activities. We are
reluctant to reject any of these invitations.
h. It was possible to force savings on some items to make provision for the above.
i. Increased capital expenditure on heritage land and buildings was funded from investments.
15. IRREGULAR EXPENDITURE
Reconciliation of irregular expenditure
2015 R
2014 R
Opening balance 1 185 138 1 185 138
Irregular expenditure current year 271 916 -
Irregular expenditure previous year discovered in current year - -
Condoned or written off by relevant authority - -
Transfer to receivables for recovery – not condoned - -
Irregular expenditure awaiting condonation 1 457 054 1 185 138
NATIONAL ENGLISH LITERARY MUSEUM
88
NELM’s Supply Chain Management Policy was revised and operational procedures were improved in 2014,
including the implementation of a deviations register.
The irregular expenditure incurred in previous years has been written-off by the Council of NELM and a
submission was made to National Treasury seeking approval for the write-off. We are awaiting a response
from National Treasury.
The irregular expenditure in the current year is made up of transactions to the value of R271 916 where
SBD4 forms were not completed by suppliers. This is a contravention of National Treasury Practice Note 7
of 2009/10. Management accepts responsibility for this oversight and will seek condonement from the
Council.
Included in this R271 916 are payments to the value of R240 768 for multi-year outsourced services and
consultancy services. NELM’s Supply Chain Management Policy requires a new supplier to submit a tax
clearance certificate for any business of a value in excess of R30 000 (incl. VAT). The two suppliers in
question submitted tax clearance certificates at the commencement of services. The Auditor-General has
however rejected the tax clearance certificates despite NELM’s compliance with its own policy and NELM is
therefore presenting the transactions in question as irregular expenditure.
16. FRUITLESS AND WASTEFUL EXPENDITURE
Reconciliation of fruitless and wasteful expenditure
2015 R
2014 R
Opening balance 14 373 9 523
Fruitless and wasteful expenditure current year - -
Fruitless and wasteful expenditure previous year discovered in current year - 5 300
Condoned or written off by relevant authority (5 300) -
Transfer to receivables for recovery - -
Recovered during the year - (450)
Fruitless and wasteful expenditure closing balance 9 073 14 373
Management of NELM is still attempting to recover R9 073 fruitless and wasteful expenditure incurred in
the 2011/2012 financial year.
17. CONTINGENT LIABILITY
17.1 Auditor-General’s fee
In terms of the Public Audit Act, Act No. 25 of 2004, section 23(6), NELM is only liable for an audit fee of 1%
of its total expenditure and National Treasury should, on receipt of the relevant invoices from the Office of
the Auditor General, settle the balance.
In previous years, NELM did not raise a liability for their full audit fees and until 2014, the Office of the
Auditor-General was in agreement with this. Negotiations with the Office of the Auditor-General resulted in
NELM disclosing an outstanding balance of R1 746 091 for the 2013/2014, R274 430 for 2012/2013 and
R923 235 for 2011/2012. NELM has again not raised a liability and the balance and on 31 March 2015
NELM’s account with the Auditor General stood at R1 569 024.
ANNUAL FINANCIAL STATEMENTS 2014/2015
89
18. RELATED PARTY DISCLOSURE
The Department of Arts and Culture are the main funders of NELM. They funded the museum to the value
of R8 657 000 (2014: R8 148 000).
Part of the agreement with the Department is that they pay the rent on the buildings occupied by the
museum. There are two leases and had the museum paid for them, it would have cost R168 395 and
R193 440 annually.
There were no other related transactions with the Department. The following key managers of the museum
held positions in the entity where they may have had significant influence over the financial or operating
policies of the museum as follows:
Ms B.A. Thomas, Director
Mr C.W. Malan, Chief Financial Officer
Ms C.A. Warren, Manager Curatorial Division
Mr T.Z. Matshoba, Manager Education and Public Programmes.
No related party transactions were entered into with any of the above managers.
19. EMOLUMENTS OF COUNCIL AND COMMITTEE MEMBERS AND SENIOR MANAGEMENT
19.1 Council
2015 R
2014 R
Prof. M.F. Titlestad (chair) 1 000 1 000
Prof. K. de Jager 1 000 1 000
Prof. D.C. Klopper 1 000
Dr D. Lewis 1 000 500
Prof. J.A. Ogude 500 -
Prof. A. Oliphant 500 1 000
Ms M. Rall 2 080 1 000
Dr W.P. Rowland 1 000 1 000
Mr H. Smith 1 000 1 000
Dr.U. Roopnarain 1 080 -
Mr S. Dlanjwa 1 344 -
Ms J Williams 1 080 -
Ms S. Nhlabatsi 1 216 -
Mr D. Maahlamela 1 080 -
Ms E. Dido 1 080 -
14 960 7 500
NATIONAL ENGLISH LITERARY MUSEUM
90
19.2 Audit committee
2015 R
2014 R
Mr L. Kruiskamp (chair) 3 000 3 000
Mr H. Harnett 1 200 1 800
4 200 4 800
19.3 Senior management
2015 R
2014 R
Director 681 223 637 550
Basic salary 530 472 496 824
Bonus 44 206 41 360
Housing allowance 6 720 6 720
Pension fund contribution 79 571 74 408
Medical aid contribution 15 640 14 640
Other employer contributions 4 614 3 598
Chief Financial Officer 577 328 530 485
Basic salary 433 956 397 207
Bonus 36 163 33 771
Housing allowance 6 720 6 720
Pension fund contribution 65 093 59 581
Medical aid contribution 31 280 29 280
Other employer contributions 4 116 3 926
Manager: Curatorial Division 414 128 409 489
Basic salary 316 128 295 224
Bonus 26 344 24 602
Housing allowance 6 720 6 720
Pension fund contribution 47 419 44 284
Medical aid contribution 15 640 14 640
Service award - 22 142
Other employer contributions 1 877 1 877
Manager: Education and Public Programmes 418 439 385 033
Basic salary 316 128 295 224
Bonus 26 344 18 452
Housing allowance 6 720 6 720
Pension fund contribution 47 419 44 284
Medical aid contribution 18 320 16 953
Other employer contributions 3 508 3 400
2 091 118 1 962 557
ANNUAL FINANCIAL STATEMENTS 2014/2015
91
20. RESTATED PRIOR YEAR COMPARATIVES
20.1 The 2013/2014 financial statements were restated to take the following prior year adjustments into
account:
Tools and Equipment and Furniture and Fittings sold at an auction held in December 2011 were not
removed from the asset register. This error was noted during the current year and has been taken into
account and the relevant items have been removed from the register.
20.2 Restated prior year comparatives
Statement of Changes in Net Assets
2014 R
2013 R
Furniture and fittings - Cost
Previously reported 354 397
Restatement amount 341 715
12 682
Furniture and fittings – Accumulated depreciation
Previously reported
197 535
Restatement amount
190 529
7 006
Net Difference adjusted to Accumulated Funds 5 676
Tools and equipment - Cost
Previously reported 150 289
Restatement amount 145 755
4 534
Tools and equipment – Accumulated depreciation
Previously reported
66 647
Restatement amount
62 113
4 534
Net Difference adjusted to Accumulated Funds -
Statement of Financial Performance
2014 R
2013 R
Furniture and fittings – Depreciation
Previously reported 30 457
27 877
Restatement amount 29 273
26 693
1 184
1 184
NATIONAL ENGLISH LITERARY MUSEUM
92
Statement of Financial Performance
2014 R
2013 R
Tools and equipment – Depreciation
Previously reported -
-
Restatement amount -
-
-
-
21. CAPITAL COMMITMENTS
There were no capital commitments at year end.
22. EVENTS SUBSEQUENT TO BALANCE SHEET
There are no subsequent events that need to be reported on.
23. FINANCIAL RISK MANAGEMENT
NELM’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value
interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.
NELM has developed a comprehensive risk strategy in terms of Treasury Regulation 28.1 in order to
monitor and control these risks. Internal Audit reports quarterly to the Audit Committee, an independent
body charged with the responsibility for financial risk management that monitors risks and policies
implemented to mitigate risk exposure. The risk management process relating to each of these risks is
discussed below:
Liquidity risk
NELM manages liquidity risk through proper management of working capital, capital expenditure and actual
forecast cash flows and its cash management policy. Adequate reserves and liquid resources are also
maintained.
Interest rate risk
As NELM has no significant interest-bearing assets, its income and operating cash flows are substantially
independent of changes in market interest rates.
Credit risk
Credit risk consists mainly of cash deposits, cash equivalents and trade receivables. NELM only deposits
cash with major banks with high quality credit standing and limits exposure to any one counter-party.
Trade receivables are not material. Management evaluated credit risk relating to customers on an ongoing
basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent
rating, risk control assesses the credit quality of the customer, taking into account its financial position, past
experience and other factors. Individual risk limits are set based on internal or external ratings in
accordance with limits set by the Council of NELM. The utilisation of credit limits is regularly monitored.
Foreign exchange risk
NELM does not have foreign currency exposure.
ANNEXURES
i
MATERIALITY AND SIGNIFICANCE FRAMEWORK
In terms of the Public Finance Management Act and National Treasury Regulation 28.1.5, the Council of NELM has
developed and agreed to a framework of acceptable levels of materiality and significance.
SECTION
OF PFMA
DESCRIPTION OF MATERIALITY AND
SIGNIFICANCE LEVELS OF MATERIALITY AND SIGNIFICANCE
55 (2) The annual report and financial statements must
include particulars of:
(a) any material losses through criminal conduct
and any irregular expenditure and fruitless
and wasteful expenditure that occurred
during the financial year;
All instances will be included in the Accounting
Authority’s Annual Report – amount greater than
1% of the total value of assets per Audited
Financial Statements.
(b) any criminal or disciplinary steps taken as a
consequence of such losses or irregular
expenditure or fruitless and wasteful
expenditure;
All instances will be included in the Accounting
Authority’s Annual Report.
(c) any losses recovered or written off; and All instances will be included in the Accounting
Authority’s Annual Report – amount greater than
1% of the total value of assets per AFS.
(d) any financial assistance received from the
state and commitments made by the state on
the Accounting Authority’s behalf.
All instances will be included in the Accounting
Authority’s Annual Report.
54 (2) Before a public entity concludes any of the
following transactions, the Accounting Authority
for the entity must promptly and in writing inform
the relevant treasury of the transaction and
submit relevant particulars of the transaction to
its Executive Authority for approval of the
transaction:
(a) establishment or participation in the
establishment of a company;
Each and every instance.
(b) participation in a significant partnership, trust,
unincorporated joint venture or similar
arrangement;
Each and every instance.
(c) acquisition or disposal of a significant
shareholding in a company;
Each and every instance.
(d) acquisition or disposal of a significant asset; Above R500 000.
(e) commencement or cessation of a significant
business activity;
Each and every instance.
(f) a significant change in the nature or extent of
its interest in a significant partnership, trust,
unincorporated joint venture or similar
arrangement.
Each and every instance.
NATIONAL ENGLISH LITERARY MUSEUM
ii
LIST OF ABBREVIATIONS/ACRONYMS
AGSA Auditor-General of South Africa
BBBEE Broad Based Black Economic Empowerment
CEO Chief Executive Officer
CFO Chief Financial Officer
DAC Department of Arts and Culture
GBSA Green Building Council of South Africa
PFMA Public Finance Management Act
TR Treasury Regulations
MTEF Medium Term Expenditure Framework
NDPW National Department of Public Works
NELM National English Literary Museum
SMME Small Medium and Micro Enterprises
SCM Supply Chain Management
ANNUAL FINANCIAL STATEMENTS 2014/2015
iii
NATIONAL ENGLISH LITERARY MUSEUM
iv
NATIONAL ENGLISH LITERARY MUSEUM ANNUAL REPORT 1 APRIL 2014 TO 31 MARCH 2015 RP 295/2015 ISBN 978-0-621-43968-7