national english literary museum - national . · 2016-03-07the national english literary museum

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

http://www.ru.ac.za/nelm/

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

DIRECTORS OVERVIEW .......................................................................................................................................... 9

STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT ................... 10

STRATEGIC OVERVIEW ...........................................................................................................................................

PART B: PERFORMANCE INFORMATION

1. AUDITORS 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 AUTHORITYS 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

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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