ROBBEN ISLAND MUSEUM Annual Report Presentation PORTFOLIO COMMITTEE ON ARTS AND CULTURE, 13 OCTOBER 2015 3. Purpose 4. Introduction 5. Key Issues highlighted in the Annual Report Robben Island Museum Strategic Overview 11. Governance 12. Current organisational structure 13. Visitor numbers Financial performance Non-financial performance Audit outcomes 20.Post-Annual Report Achievements Contents To brief the Portfolio Committee on Arts and Culture on the 2014/2015 Annual Report of the Robben Island Museum, a declared cultural institution and a World Heritage Site 1. Purpose 2. Introduction Robben Island Museum (RIM) is a public entity responsible for managing, maintaining, presenting, developing and marketing Robben Island as a national estate and World Heritage Site. It was established by the Department of Arts and Culture in 1997 and is declared as a cultural institution per the Cultural Institutions Act, No 119 of 1998 and a public entity by the Public Finance Management Act No 1 of RIM is governed by a Council appointed by the Minister of the Department of Arts and Culture with duties prescribed in the Cultural Institutions Act. The museum opened its doors to the public on 1 January The museum is based on a site with a multi-layered history of human occupation which goes back to the 16 th century. Robben Island Museum was declared a World Heritage Site in December Its World Heritage status is operationalised through its Integrated Conservation Management Plan (ICMP), which is compiled every 5 years. Robben Island Museum exists to conserve the multi-layered heritage landscape as testament to the significance of the triumph of the human spirit over adversity and injustice. Operating environment during the 2014/2015 financial year Significance of the ICMP and the implementation of the New Business Model Challenges of funding the Implementation Plan of the ICMP (RIMs funding does not take into account its World Heritage Status and its compliance requirements) Need to align the Strategy, Structure and Budget RIMs aim to diversify income sources by using facilities on the island for conferences, meetings and events Challenges of Infrastructure Maintenance, Ferry Operations and Organisational Structure Key partnerships to enhance Visitor Management and Interpretation Achievements [Financial and Performance Information] 3. Key Issues Highlighted in the Annual Report 4. Robben Island Museum Strategic Overview Strategic achievements : Core business: Steps taken to develop a Tour Guiding Manual so as to improve on Visitor Management and standardise the Narrative of Robben Island, as well as development of DVDs on Reference Groups and new exhibitions Condition assessments were performed on RIM exhibitions 3 public seminars were held and the Mandela Cell travelling exhibition was launched and exhibited which contributed to the diversification of products which will ensure the sustainability and growth of RIM. A collections policy and standard operating procedures were developed Archival items were digitised, the RIM-Mayibuye Archives website was developed Loan and use agreements managed A nomination document was drafted to nominate RIM-Mayibuye Archives for recording on the UNESCO World Memory Register which contributed to the protection and conservation of heritage assets. RIM launched its new interactive website in partnership with MTN and published advertorials/articles on RIM which contributed to the promotion of RIM through various media to the local and international public. RIM entered into four new strategic partnerships during the year which contributed increases stakeholder relationships. The GRAP103 plan was developed and implemented during the year which contributed towards the continued enhancement of the Robben Island World Heritage Site through the appropriate and systematic conservation, maintenance and protection measures. 5. Robben Island Museum Strategic Overview Strategic achievements : Corporate and Support Services: The evaluation of the RIM financial position, compliance with quarterly financial reporting requirements and the development of an approved SCM policy which contributed towards RIM being developed as a sustainable and fully capacitated World Heritage Site, which makes use of effective internal controls and financial and operating systems. RIM Council and Executive attended an annual governance workshop which contributed to the effective and efficient strategic management and compliance to relevant legislation. Executive attended a training session on World Heritage Conservation. Finalisation of the RIM State of Conservation report which contributed to the protection of South Africas cultural heritage and the conservation of Robben Island as a national estate and World Heritage Site. Development and implementation of a performance information system to accurately track RIMs annual performance targets. 6. Robben Island Museum Strategic Overview Challenges : Ferry operations: In line with the new Business Model, plans are underway to finalise the implementation of the new Ferry Operating Model, which will include the purchase of new ferries. RIM is currently in the process of engaging with DAC, National Treasury and the Department of Trade and Industry with regards to the legal requirements related to the procurement of items of high value and local content. The outcome of this interaction will determine whether or not a new ferry can be acquired in a short space of time or not. Council and Management will during the current period also review new information regarding the usability of the main ferry Sikhululekile, which has not been in operation since January 2014. 7. Robben Island Museum Strategic Overview Challenges : Infrastructure and municipal services: During RIM took responsibility for the maintenance of the island and aimed to gradually build capacity. However, the uncertainty regarding long-term funding for infrastructure, especially the provision of electricity, water and waste removal, continued to pose problems and affected the museums ability to achieve its strategic objectives, especially those outlined in the ICMP. RIM is the only museum in South Africa that had to assume the responsibility for municipal services, and it is vitally important to highlight that this mandate was not accompanied with the requisite resources. In September 2014, RIM entered into a relationship with the Department of Correctional Services, to assist with the maintenance and enhancement of Robben Islands narrative. In February 2015 RIM was informed by DAC and DPW Directors General that DPW intends to resume its responsibility of facilities maintenance on the island. A Tripartite Agreement outlining the relationship between RIM and the other two departments has been concluded. It is envisaged that DPW and its implementing agent, Coega Development Corporation, will execute the maintenance responsibilities on the Island from the beginning of the second quarter of financial year. Council has resolved to strengthen RIMs infrastructure management capacity. Senior Managers will be appointed during the financial year. The aim is to ensure that RIMs facilities are maintained with a view of supporting the business model and the Adaptive Re-use Project. Challenges : Organisational structure: RIM continues to face a serious challenge of aligning the museums strategic plan with the organisational structure, the budget, the business model and the ICMP. The prevailing business environment is not geared towards the achievement of RIMs strategic goals. The current staff establishment and configuration of departments need to be reviewed in order for RIM to achieve its strategic objectives. The museums resource capacity is not properly aligned to enable it to deliver on its mandate. Although efforts have been made to strengthen the managerial level by appointing staff in line with the business model, it is apparent that organisation-wide restructuring is required. Previous years decisions regarding the suspension of organisational restructuring and the absorption of casual and temporary employees has resulted in the misalignment of the organisation, with very little attention being given to the core business. Council has resolved to embark on a process of organisational restructuring. It is envisaged that the process would result in an appropriate configuration RIM, with particular focus to reducing employee costs, aligning the structure with strategy, particularly the business model. The organisational re-design is scheduled to be implemented during the financial year. 8. Robben Island Museum Strategic Overview 9. Governance Council: During the period under review Council had 6 meetings and the six Sub-committees of Council had no less than 2 meetings each. Three Council members resigned during the financial year. [Dr. N. Motete, Mr M. Gasela and Bishop S. Mogoba) Current members (9): Mr S. Buthelezi (chairperson), Mrs R. Abdullah (deputy chairperson), Mrs G. Masuku, Mr L. Mpahlwa, Mr P. Nefolovhodwe, Mr M. Dada, Mr M. Gwavu, Mr O. Nqubelani, and Mrs L. Callinicos This is the third year of Councils three year term. The term of office of the Council will expire in March The Council has already corresponded with the Minister regarding this matter. The current CEO, Dr S. Mkhize, will be leaving RIM at the end of his term in October Council has embarked on the process of finding a suitable replacement for him. In addition to reporting to the Minister of Arts and Culture, the Council of the Robben Island Museum reports to the Minister of Environmental Affairs on its status as a World Heritage Site. The Minister of Environmental Affairs has appointed the RIM Council as a management authority for a period of five years. Audit Committee: The Audit Committees composition is in compliance with the Public Finance Management Act. It consists of three external and independent members and two members of RIM Council. It operates in accordance with the Audit Committee Charter which was approved by the Council of RIM. A new Audit Committee was appointed from 1 December 2012, and will serve for a period of three years. Council has already engaged with the members of the Audit Committee with the view to renew their term. 10. Current organisational structure RIM currently employs 240 employees of which 224 are of a permanent nature (as at 30 June 2015). RIM has the following functional departments: ENE classificationDepartments Business Development Heritage and Research Marketing and Tourism Ferry Operations Infrastructure and Estates Public Engagement Public Heritage Education Administration Office of the CEO Finance and SCM Human Resources . 11. Visitor numbers YearVisitor number% increase (decrease) % % (5.9%) % % 12. Financial performance Summary of Statement of Financial Position: Balance % increase (decrease) Current assets % Non-current assets (2.1%) Current (total) liabilities (21.8%) Net assets % Cash & cash equivalents % 13. Financial performance Summary of Statement of Financial Performance: Balance % increase (decrease) Revenue % Government grants % Expenditure( )( )21.8% Operating surplus (0.25%) Revenue increased due to the aggressive scheduling of tours during high demand periods along with increased ticket prices. Government grants show a significant increase due the recognition of the conditional ICMP and Infrastructure Grants and the receipt of unconditional grants related to infrastructure. Expenditure increased due to hiring of ferries and infrastructure and maintenance costs. . 14. Financial performance Sources of revenue 2014/2015 Estimate Actual amount collected Over/(Under) collection REVENUERRR REVENUE FROM EXCHANGE TRANSACTIONS Sale of goods Rendering of services Rental of facilities and equipment ( ) Other income Finance income Total revenue from exchange transactions REVENUE FROM NON-EXCHANGE TRANSACTIONS TAXATION REVENUE Government grants and subsidies Total revenue Revenue collection: R . 15. Financial performance Description2014/2015 Budget Actual expenditure (Over)/Under expenditure EXPENDITURE FOR PROGRAMMESRRR Personnel Depreciation and amortisation Finance costs-842(842) Debt impairment (88 207) General Expenses ( ) Total expenditure ( ) Performance against budget: The over expenditure of general expenses mostly relates to the additional costs related to the hiring of ferries and the infrastructure maintenance and municipal services costs incurred. . 16. Non-financial performance Robben Island Museum has implemented a performance information system which prompts target owners to plan and execute on performance targets. RIM has seen an improvement in the achievement of targets for to However, during only 46% targets could be achieved due to lack of clarity related to the funding of infrastructure maintenance and municipal services. Funding for these items were only provided in the last 2 months of the financial year which impacted negatively on the implementation of strategic targets. . 17. Audit outcomes YearAudit outcome Unqualified with no significant matters RIM received an Excellence Award from the AGSA in year Unqualified RIM received an Excellence Award from the AGSA in year Unqualified Unqualified Unqualified with emphasis of matter . 18. Post-Annual Report Achievements Robben Island World Heritage Site received awards in 2 categories at the Golden Shield Heritage Awards 2015, organised by the National Heritage Council. Robben Island Museum website voted as one of the best in the world by international web designers Thank you