Summary of the Corporate Plan for to and Operating and Capital Budgets for

Transcription

1 Summary of the Corporate Plan for to and Operating and Capital Budgets for

2 Ai Weiwei Note: Tree, For the purpose of this Summary of the Corporate Plan, Wood and steel, cm the terms partner and partnership do not refer to partnerships installed (3.1 tons) in the legal sense, but rather to liaisons with other organizations National Gallery of Canada, Ottawa with similar purposes to those of the Gallery, as provided for in Photo: NGC the Museums Act, Section 6(1) (i) and (m). 2 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

3 TABLE OF CONTENTS 1. INTRODUCTION CORPORATE PROFILE...5 MANDATE...5 HISTORY...5 GOVERNANCE...6 PROGRAM ALIGNMENT ARCHITECTURE (PAA)...10 CANADIAN PHOTOGRAPHY INSTITUTE NATIONAL GALLERY OF CANADA FOUNDATION PLANNING ENVIRONMENT ENVIRONMENTAL SCAN...14 ADDRESSING GOVERNMENT PRIORITIES RESULTS STRATEGIC PRIORITIES FOR THE PLANNING PERIOD OVERVIEW...26 OUTCOMES, KEY DELIVERABLES AND TARGETS...28 National Gallery of Canada* 380 Sussex Drive P.O. Box 427, Station A Ottawa, ON K1N 9N FINANCIAL INFORMATION OVERVIEW ASSUMPTIONS AND PROJECTIONS OPERATING BUDGET CAPITAL BUDGET FINANCIAL STATEMENTS...41

4 1. INTRODUCTION The National Gallery of Canada s (hereafter the Gallery or the NGC ) Corporate Plan for to , approved by the Board of Trustees on July 26, 2016, builds on those strategic priorities set forth in the previous plan, with a focus on increasing attendance to the Gallery s main facility in Ottawa. The Plan continues to articulate a shift in the Gallery s strategic direction, with a renewed emphasis on visitor s needs, while aiming to build a visitor-oriented culture. Over the planning horizon, the commitment to enhance the visitor experience and achieve excellence in delivering its mandate will be paramount. This Summary of the Corporate Plan highlights the strategic objectives for to and presents the Capital and Operating Budgets for In , the Gallery will focus on the following strategic priorities: Increase Attendance Expected outcome: The Gallery s programming and the quality of the visitor experience consistently attract a large and diverse audience. Diversify Revenues Expected outcome: Revenue sources are established that contribute materially to the institution s financial sustainability and growth. Invest in Infrastructure Expected outcome: The Gallery s infrastructure its collections, facilities, systems, business tools, partnerships and networks is strengthened to support the delivery of the Gallery s mandate. Strategies, key deliverables, and targets for each priority are further outlined in section 5 of this Plan. In , the Gallery will operate within the context of the following environment: For and over the planning period, the Gallery s base parliamentary appropriations are expected to remain constant at $ million. This amount is inclusive of $8 million for the acquisition of objects for the collection and other costs attributable to this activity. The Gallery s operating budget for continues to be challenged by the increased cost of doing business and significant non-discretionary expenses to operate the facility: payments in lieu of taxes, utilities, security, and building maintenance services. Funding for these expenses is not indexed against inflation. Moreover, the Gallery is inadequately staffed to meet the needs of Canada s national network of art museums that relies on the national art collection for their programming. The capital budget is challenged by the need for significant infrastructure renewal of the ageing building that is now in its 28th year of operation. Annual appropriations of $1 million for capital allocated on a risk basis to address emerging issues and to remain compliant with occupational health and safety regulations and ever-changing building codes are insufficient to address current requirements. The demand for investment in life-cycle maintenance and repairs to the building and mechanical systems are expected, given the ageing infrastructure. Escalating construction costs, increased project scope and the identification of additional projects over time place significant pressure on the capital envelope. 2 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

5 Budget 2016 supplementary funding of $18.4 million in total appropriated over the next five years beginning in is a welcome boost to the Gallery s capital allotment. Consequently, a noted increase in the Gallery s capital budget and capital expenditures will be reported over the five-year planning period. In and onward, the Gallery will continue mobilizing its resources to broaden its appeal by ensuring it clearly understands and responds to visitors expectations. Marketing and communications strategies that can increase visibility and awareness of the brand are under development. The goal is to stabilize attendance at a minimum of 400,000 visitors annually by the end of fiscal year and beyond. To accomplish this, in the coming years, the Gallery is planning to maintain a strong offering of major shows. To celebrate Canada s 150th anniversary of Confederation in 2017, the Gallery will undertake a major re-conception and full renovation of the Canadian and Indigenous Galleries, complemented by a commemorative publication on these collections. A key component of this transformative initiative is the systematic integration of Indigenous art within a chronologically expanded storyline of Canadian art history, so as to contextualize and broaden a more inclusive representation of the Canadian identity. The new Canadian and Indigenous Galleries will include works by several Aboriginal artists, including Alex Janvier, Norval Morrisseau, Daphne Odjig, and Robert Houle and will serve as a resource for the understanding, study and enjoyment of Canadian and Indigenous art by the public and scholars alike. Outreach initiatives are part of the Gallery s commitment to a national presence. The Gallery will explore several business models for making the national collection more available to other art institutions across Canada. In , the institution will engage partners to establish the best program delivery option. By the end of the planning period, significant progress will have been made toward a comprehensive NGC National Outreach Strategy that is fiscally responsible from the Gallery s perspective, while appropriately serving its art community partners to the best of its ability. In November 2015, the Gallery, in conjunction with the NGC Foundation, announced the creation of the Canadian Photography Institute (CPI) as a curatorial department within the institution, devoted to the research, conservation, exhibition and dissemination of photography in all its aspects. The Institute will foster partnerships and cooperation opportunities worldwide for the integrated study of its collection, drawing upon a broad range of disciplines interested in social, cultural, aesthetic, scientific and historical issues. Revenue generation remains a high priority for the Gallery. Further study of commercial activities is planned to increase their cost effectiveness and profitability. Concerted and focused efforts to secure significant and long-term sponsorships to support programming and educational activities will be maintained. The Gallery s transformative 2017 initiatives will require a reallocation of existing resources, and contributions from individuals, corporations and foundations. National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 3

6 2. CORPORATE PROFILE 4 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

7 MANDATE Pursuant to the Museums Act (1990), the NGC is mandated to: develop, maintain and make known throughout Canada and internationally, a collection of works of art, both historic and contemporary, with special but not exclusive reference to Canada, and to further knowledge, understanding and enjoyment of art in general among all Canadians. As a distinct legal entity, wholly owned by the Crown, the Gallery is subject to the Crown corporation accountability framework established under Part X of the Financial Administration Act. It also complies with other statutes. While it functions at arm s length from the government in its daily operations, as a member of the Canadian Heritage Portfolio, the Gallery supports the Department in its mission and contributes to the achievement of the Government of Canada outcome of a vibrant Canadian culture and heritage. HISTORY The National Gallery of Canada was founded in 1880 by the then-governor General, the Marquess of Lorne, in concert with the Royal Canadian Academy of Arts. The federal government assumed responsibility for the Gallery with the enactment of the National Gallery of Canada Act in 1913 and has continued its stewardship through successive acts of Parliament. On July 1, 1990, the National Gallery of Canada became a Crown corporation with the proclamation of the Museums Act. National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 5

8 GOVERNANCE Government of Canada Sets public policy objectives Minister of Canadian Heritage The link between the Gallery and Parliament Board of Trustees Eleven-member governing body appointed by the Minister, with the approval of the Governor in Council NGC Management CEO, appointed by the Board of Trustees with the approval of the Governor in Council, accountable to the Board Figure 1 Crown Corporation Governance Model Pursuant to section 88 of the Financial Administration Act, the Gallery is accountable to Parliament, through the Minister of Canadian Heritage, for the conduct of its affairs. 6 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

9 THE BOARD OF TRUSTEES Under the Museums Act, the Gallery s Board of Trustees serves as its governing body and is responsible for the overall governance and stewardship of the museum. The Crown corporation governance model establishes the Board as independent from Management. Representing various regions of the country, each member of the Board, including the Chair and Vice-chair, is appointed by the Minister of Canadian Heritage, with the approval of the Governor in Council for a period of up to four years. Each trustee is eligible to serve three consecutive terms or, in the case of the Chair and Vice-Chair, two consecutive terms in that role. If a trustee is not appointed to take office on expiration of the term of an incumbent trustee, the incumbent trustee continues in office until a successor is appointed. CURRENT BOARD OF TRUSTEES Chair Michael J. Tims Calgary, Alberta Nov. 22, 2012 to Nov. 21, 2016 Vice-Chair Harriet E. Walker Toronto, Ontario Apr. 25, 2013 to Apr. 24, 2017 Trustees Paul R. Baay Calgary, Alberta June 27, 2013 to June 26, 2017 Jean-François Béland Gatineau, Quebec Feb. 10, 2014 to Feb. 9, 2018 Allan D. Benoit Winnipeg, Manitoba June 6, 2013 to June 5, 2017 Guy Bourgeois St-Bruno, Quebec Oct. 4, 2012 to Oct. 3, 2016 Linda Hutchison Kentville, Nova Scotia March 1, 2012 to Feb. 29, 2016 Nezhat Khosrowshahi Vancouver, British Columbia May 16, 2013 to May 15, 2017 G. Howard Kroon Calgary, Alberta April 25, 2013 to April 24, 2017 Marsha Sobey New Glasgow, Nova Scotia Nov. 1, 2012 to Oct. 31, 2016 The Board provides strategic direction and oversight to the Gallery with the assistance of six committees: Acquisitions Audit and Finance Executive Governance and Nominating Human Resources Programmes and Advancement National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 7

10 SENIOR EXECUTIVE TEAM The Board of Trustees delegates the day-to-day management of the Gallery to the Director and Chief Executive Officer (CEO), who is supported by four Deputy Directors and three Directors (see Figure 2). The Director and CEO is appointed by the Board of Trustees with the approval of the Governor-in-Council. The Director and CEO is accountable to the Board for the management of the Gallery s performance, longterm viability, and achievement of corporate objectives. The Chair of the Board is responsible for the establishment of a performance agreement with the CEO, which is reviewed and assessed by the Board at the end of each fiscal year. A recommendation for a performance rating is then made to the Minister. Each member of the Senior Management team is bound by his/her individual performance agreement; the achievement of results against the objectives stated in these agreements is evaluated by the CEO on an annual basis. BOARD OF TRUSTEES Acquisitions Committee Audit and Finance Committee Executive Committee Governance and Nominating Committee Human Resources Committee Programmes and Advancement Committee CEO, NGC Foundation Director and CEO Deputy Director Collections and Research, and Chief Curator Deputy Director, Administration and Chief Financial Officer Deputy Director, Advancement and Public Engagement Deputy Director, Exhibitions and Outreach. Director, Human Resources Director, Conservation and Technical Research Director, Corporate Secretariat and Ministerial Liaison Figure 2 Governance and Management Structure 8 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

11 AUDIT AND EVALUATION Pursuant to the Financial Administration Act, the Office of the Auditor General of Canada (OAG) conducts an annual audit of the transactions and financial statements of the Gallery. Additionally, the OAG performs a special examination every 10 years; the last special examination took place in In addition, the Gallery conducts internal audits on a regular basis to promote the highest ethical standards, contribute to accountability and transparency across the corporation, and to uphold effective and efficient management of public funds. Emily Carr Off the Trail, 1907 Watercolour and black ink over graphite on beige wove paper, cm National Gallery of Canada, Ottawa Photo: NGC Emily Carr The Intozicating Sweet Perfume of Gasoline!, 1907 Watercolour and black ink over graphite on beige wove paper, cm National Gallery of Canada, Ottawa Photo: NGC National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 9

12 PROGRAM ALIGNMENT ARCHITECTURE (PAA) The Gallery has four programs that are strategically designed to achieve its mandate: Collection The Gallery acquires art, conducts research and preserves the collection for present and future generations through comprehensive conservation initiatives. Outreach The Gallery exhibits art in Canada and abroad, educates on and communicates the importance of the visual arts to Canadians from all walks of life and in various regions of the country. Accommodation The Gallery ensures building operations are carried out efficiently and sound investments are made in capital infrastructure for facilities to be secure, suitable for the preservation and exhibition of the national collection, and safe for visitors and staff. Internal Services The Gallery provides for sound governance, effective management of its human and financial resources, and optimization of self-generated revenues in support of programs and initiatives. The Gallery s programs are key to the achievement of its mandate and consistent with the Government s priorities. Through them, the Gallery makes a significant contribution to the enrichment of the heritage and cultural life of Canadians. 10 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

13 Program Alignment Architecture (PAA): Overview of Main Programs, Strategic Priorities and Outcomes Government of Canada Outcome Legislated Mandate Ultimate Strategic Outcome A vibrant Canadian culture and heritage To develop, maintain and make known, throughout Canada and internationally, a collection of works of art, both historic and contemporary, with special but not exclusive reference to Canada, and to further knowledge, understanding and enjoyment of art in general among all Canadians Interest in, knowledge of and appreciation and respect for visual art through a collection of historic and contemporary works of art, programs and research that reflect a special but not exclusive perspective on Canada Programs Collection Outreach Accommodation Internal Services Intermediate Outcomes for Each Program and Sub-program (5+ years) A strong national collection representing Canadian and international visual arts for present and future generations Enhanced understanding and enjoyment of art among Canadians through dynamic national and international programming Safe, secure and accessible facilities for the national collection, visitors and staff Effective corporate management practices and controls are in place for efficient management of resources and effective operations Sub-programs: Sub-programs: Sub-programs: Sub-programs: Acquisitions Research Preservation Exhibitions Education Communications Building Operations Capital Expenditures Governance Administration Revenue Generation Strategic Priorities for the Planning Period and Immediate Outcomes for Each Strategic Priority (1 to 5 years) Increase Attendance The Gallery s programming and the quality of the visitor experience consistently attract a large and diverse audience. Diversify Revenues Revenue sources are established that contribute materially to the institution s financial sustainability and growth. Invest in Infrastructure The Gallery s infrastructure its collection, facilities, systems, business tools, partnerships and networks is strengthened to support the delivery of the Gallery s mandate. National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 11

14 CANADIAN PHOTOGRAPHY INSTITUTE On November 27, 2015, the Gallery created the Canadian Photography Institute (CPI) as a curatorial department fully integrated with the Gallery s Department of Photographs and within the management structure of the NGC. Through a tri-partite Memorandum of Understanding signed in 2015 by the donor, Mr. David Thomson, Chairman of Thomson Reuters, the Gallery and the NGC Foundation the donor has committed to the regular transfer of significant parts of his vast photographs collections to the Gallery over the next ten years. The Gallery will preserve this outstanding collection in perpetuity for the benefit of present and future generations. The integration of the donor s collection into those of the Gallery s current photography possessions will serve to create one of the greatest and most comprehensive photography collections in the world an internationally significant collection of the history of photography from its origins to the present day. The Gallery s CPI collection will form the foundation for an active resource institute, with an unparalleled capacity for research along with programs and partnerships that will flow from its use. The CPI exhibitions will have dedicated space within the Gallery walls. Its programs, publications and databases will be accessible to the public and will serve as a resource centre for scholars from a wide variety of disciplines both international and Canadian and curators and artists from a range of related fields in the visual arts, history, architecture, media studies, and global cultural history. In November 2015, Scotiabank pledged $10 million in financial support to the CPI to fund programs and operations. This philanthropic support is administered through the NGC Foundation. NATIONAL GALLERY OF CANADA FOUNDATION A registered charitable organization, the National Gallery of Canada Foundation dedicates its efforts to ensuring the long-term viability and success of the Gallery. By fostering strong philanthropic partnerships, the NGC Foundation is focused on providing leadership on major gifts, endowments, planned giving, and the Distinguished Patrons initiative. Managed by its own Board of Directors, the Foundation has raised over $50 million in philanthropic gifts since its inception in The NGC Foundation s Board of Directors has ultimate authority over, and responsibility for, the Foundation s strategic objectives, the appointment of its Chief Executive Officer, and the management of its investments. Investment decisions are delegated to a qualified investment manager retained by the Foundation, who is assisted by an Investment Committee that regularly reviews the Foundation s Investment Policy and monitors the portfolio s performance. The Foundation works with donors and collectors to develop customized partnerships for contributing both works of art and financial support. Philanthropists help enrich the national art collection through strategic purchases and donations. They help build the Gallery s financial capacity to support various programs and initiatives. 12

15 Lawren S. Harris Billboard (Jazz), 1921 Oil on canvas, cm National Gallery of Canada, Ottawa Gift of Imperial Oil Limited, Calgary, 2016 Family of Lawren S. Harris Photo: NGC National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 13

16 3. PLANNING ENVIRONMENT ENVIRONMENTAL SCAN The strategic issues for the planning period are influenced by both external and internal circumstances that may impact the Gallery in and beyond. Below is a description of the major factors. Economic and financial factors According to the Ottawa Chamber of Commerce, the Ottawa economic region i.e., the National Capital Region (NCR) and surrounding areas has faced slower growth over the past two years as federal government restraint has limited broader employment growth and impacted the housing market. Regional employment increased by only 1.3% in 2014 and only in areas surrounding the NCR: despite these modest gains, current employment remains at 2013 levels. Employment growth in the Ottawa economic region is expected to average 1.3% in , with slightly weaker performance in the NCR itself. The flat employment numbers in the capital will limit the disposable income of the local population and may result in reduced spending on arts and culture. Philanthropy in Canada has become a huge endeavour; the number of registered charities reached almost 86,000 at the end of The fact that Ottawa-Gatineau is home to a number of large, prestigious health, academic and cultural organizations, all competing for the same philanthropic dollar, must be considered when the Gallery develops fundraising strategies to reach patrons and donors locally and across Canada. Donors are attracted to healthy, relevant and well-financed institutions with an eye to expanding and improving them with new programmes that meet the evolving needs of a changing society. It is very difficult to attract philanthropic support for day-to-day operations of core mandate activities. 14 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

17 Tourism In its 2014 Annual Report, the Canadian Tourism Commission reported that all major tourism indicators for Canada including tourism revenue, GDP, arrivals and employment increased year over year. In 2014, Canada welcomed 16.4 million international overnight visitors, up 2.7% over 2013, largely driven by increased visitation from Asia. While tourism numbers in Canada rose, the tourism market in Ottawa remains stable. The challenge is, therefore, to attract visitors to Ottawa and have them stay for a longer period to take advantage of cultural offerings such as the Gallery. Some tourism industry leaders indicate that growth is not expected until Canada s 150th anniversary celebrations in Of interest, the City of Ottawa and its partners have set out a clear strategy for success for that year: attract 8 million visitors, about 20% more than in an average year. This creates opportunities to capitalize on the influx of Canadian and international tourist expected to come to the region in Social and Demographic Factors According to Statistics Canada s census of metropolitan areas, the population of Ottawa- Gatineau, largely comprised of working-age inhabitants, was just over 1.3 million in 2014, an increase of 4% since The City of Ottawa alone grows, on average, 9% per year, surpassing the national average of 5.9% for metropolitan centres. In terms of diversity, according to Statistics Canada projections, by 2031, close to 32% of Canadians could belong to a visible minority group and nearly 30% would have a mother tongue that is neither English nor French. Superimposed on Canada s historic charter populations of Indigenous, English and French peoples, this trend will present an opportunity for the Gallery in terms of potential new audiences but it will also challenge the institution to define programming that is relevant and appeals to our country s increasingly-diverse populations. Of note is the fact that, over the last ten years, the average age of the Gallery s visitor has increased from 44 to 50. With 80% of visitors possessing a university degree, the Gallery continues to attract a highly educated audience. When it comes to programming, marketing and fundraising, trends in leisure activities coupled with demographic factors such as population growth; the proportion of seniors, a population segment that will grow rapidly over the next two decades; and the proportion of families with children, all offer opportunities (e.g. potential new audiences) and challenges (e.g. programming for visitors of all ages and for a tech-savvy population, and addressing accessibility issues for an aging clientele) for the Gallery. It is clear that these challenges must be met with re-investment in the Gallery s visitor experience and technological infrastructures. National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 15

18 As the Gallery plans, it is important to recognize the unique circumstances within which the institution operates. These conditions can be described by the following realities: More effort is required to build a commonly shared understanding of the usefulness of art, its richness as a source of information and knowledge about the past and the present, its unique capacity to delight, its particular role as an investment, its influence as a field of study and its exemplary status within the creative economy as a source of pure and relatively unrestricted creativity. Increased advocacy is required to ensure that the basic skills necessary to experience the fullest benefit from direct contact with art is an integral part of the standard educational curriculum in Canada. Information about international art is produced primarily by foreign sources, while Canadian sources are often uniquely preoccupied with contemporary Canadian art. This may give a false impression that Canadian art is a separate and/or lesser category within art history. Moreover, one might erroneously conclude that Canadian expertise on international art does not exist. There is an opportunity for the Gallery to work towards better recognition of Canadian art and the art expertise Canadians offer within the broader context of art history. Broadening access to art, particularly in smaller and rural regions of Canada, remains a challenge. As major art museums in Canada are clustered in large metropolitan centres, direct access to art in other areas of the country is often limited and inconsistent, if available at all. In addition, access to Canadian art online is still relatively new and is frequently restrained by copyright and other legislation peculiar to Canada; and general interest books on various aspects of Canadian art addressed to a broad audience are relatively rare. Because of Canada s geographic size and its modest population, its cultural institutions are often challenged in their ability to access wealth and earned income to the same extent as their foreign (notably American) counterparts. Research indicates that, because of Ottawa s moderately-sized population, national cultural institutions situated therein must temper their expectations with respect to visitorship and the revenue it can generate. 16 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

19 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 17

20 ADDRESSING GOVERNMENT PRIORITIES As a federal Crown corporation, the Gallery aims to fulfill its legislative mandate in a manner that embraces and advances the Government s cultural and other priorities. Additionally, as a member of the Canadian Heritage portfolio, the Gallery contributes to the achievement of the Government of Canada outcome of a vibrant Canadian culture and heritage, affording Canadians an opportunity to explore and enjoy the most outstanding artworks from the national collection. Over the planning period, the Gallery will undertake a series of programmatic plans and projects that directly link to key Government priorities; several are outlined below. THE 150TH ANNIVERSARY OF THE CONFEDERATION OF CANADA IN 2017 To celebrate the 150th anniversary of Confederation, in June 2017, the Gallery plans to unveil an unprecedented new narrative of Canadian and Indigenous art by rearticulating the art history of Canada in a way that will fully integrate and distinguish Indigenous art in Canada through a transformative renovation of the permanent collection galleries. This flagship project will be the first comprehensive transformation of the Gallery s permanent collection since the building was inaugurated in The transformed Canadian and Indigenous Galleries will highlight the best of Indigenous art history which dates back thousands of years and Canadian art that begins a few hundred years ago, side by side. The reconceived galleries will break from the traditional, chronological approach to installing permanent collections; it will mix both historic and contemporary Indigenous works as a testament to the ongoing vibrancy of these ancient cultures, fostering a new appreciation for and understanding of Indigenous art and artists, and of art history in Canada in general. PROMOTING INDIGENOUS HISTORY AND HERITAGE In addition to its 2017 flagship project, the Gallery enriches the relationship between Canada and its Indigenous peoples. By investing in creative industries whether through the acquisition of Indigenous art in Canada or collaborations with First Nations, Métis and Inuit artists for the production and staging of exhibitions, and publications on Indigenous art, all of which contribute to the world s art history the Gallery fosters, for all Canadians, an understanding of Indigenous peoples in Canada and their culture. While other federal entities (e.g., Indigenous and Northern Affairs Canada, Canadian Heritage or the Canada Council for the Arts) are charged with developing over-arching plans and programs that are national in scope, the Gallery is pursuing initiatives that support recommendations contained in the Truth and Reconciliation Commission s Final Report, namely: Recommendation # 79 We call upon the federal government, in collaboration with Survivors, Aboriginal organizations, and the arts community, to develop a reconciliation framework for Canadian heritage and commemoration. ii. Revise policies, criteria and practices of National Program of Historical Commemoration to integrate Indigenous history, heritage values and memory practices into Canada s national heritage and history iii. Develop / implement a national heritage plan and strategy to commemorate residential school sites, history / legacy and contributions of Indigenous peoples 18 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

21 The following Gallery initiatives have been identified in support of the above recommendation: 1. The subject of residential schools is present in artworks found in the national collection, housed at the Gallery. These include artworks by artists Marianne Nicolson, Jane Ash-Poitras and Joane Cardinal Schubert. The inclusion of works by these artists, and artworks that touch on this important issue, serves to integrate Indigenous history, heritage values and memory practices into Canada s national heritage and history. 2. In November 2016, the Gallery opened Janvier, the retrospective exhibition dedicated to Alex Janvier, Dene-Suline Indigenous abstract painter and a residential school survivor. Some of his artworks reference an ancient past, as well as recent Indigenous history, including his own experience of the effects of colonization and residential schools. Janvier is the Gallery s 6th solo exhibition devoted to Indigenous artists. 3. The Gallery is exploring the possibility of recruiting an Indigenous Educator, who will serve as the primary resource for the delivery of Indigenous content to visitors to the Gallery in Ottawa, and for those who engage with the collection digitally. The Educator will develop programming that engages Indigenous communities in meaningful ways with the ideas, issues, heritage and perspectives that inform the artworks in the collection. 4. To celebrate the 150th anniversary of the Confederation of Canada in 2017, the Gallery will offer visitors an unprecedented narrative of art history in Canada highlighting iconic artworks from its unique collection of Canadian and Indigenous art, as well as borrowed masterworks by First Nations artists, along with innovative didactic tools and programming. 5. The Indigenous Quinquennial a major international exhibition of Indigenous Contemporary Art that recurs every five years is organized by the Gallery s Department of Indigenous Art. Its second iteration is scheduled for the fall of This widely applauded cultural initiative was specifically designed to raise the profile of Canadian Indigenous artists in the world, and to assert Canada as a leader in the production, promotion and dissemination of contemporary Indigenous Art, a field of rapidly growing interest in the broader art world. 6. Contemporary Indigenous art from Canada and abroad is prominently included in the Gallery s Canadian Biennial exhibition which showcases the newest Contemporary art acquisitions for the national collection. National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 19

22 SHOWCASING CANADA S CULTURAL INDUSTRIES IN THE WORLD Canada s Participation in the Venice Biennale The Venice Biennale is the largest and most prestigious international contemporary visual art event, which creates an enormous outreach opportunity for Canada to present the best examples in Canadian contemporary art to the world. Held in Venice, Italy every two years, the event draws artists from nearly 100 countries, who are represented with curated exhibitions shown in national pavilions. Canadian representation at the Biennale dates back to 1953, and remains the only visual arts exhibition in the world to which Canada sends official representation. The Gallery manages the production and administration of exhibitions, contributes staff time in project and on-site event management as well as fundraising support. In tandem with the NGC Foundation, the Gallery has developed a framework for long-term financial sustainability to support Canada s participation in the Biennale; the Gallery expects this framework to be finalized by the end of fiscal year Sobey Art Award The Sobey Art Award (SAA) has become the pinnacle of contemporary Canadian art awards, and so it was with great pride that the Gallery announced in December 2015 that the institution will now administer this prestigious prize and its attendant exhibition and public programmes. Building on the success achieved by the Award s founding partner institution, the Art Gallery of Nova Scotia, the new partnership of the Sobey Art Foundation with the National Gallery seeks to increase awareness of young Canadian artists on the international stage. Since taking over the responsibility for this award, the Gallery has noticed a marked increase of mentions, including artists names, in the international art press. INVESTING IN CULTURAL AND RECREATIONAL INFRASTRUCTURE In keeping with the Government priority of Investing in Arts and Culture and Investing in Cultural and Recreational Infrastructure, the Gallery is undertaking a renewal of the Canada Pavilion in Venice, which is dedicated to showcasing Canadian art at the Venice Biennale. Constructed in 1957 in the Giardini di Castello, a Venice heritage park, the Canada Pavilion is a distinctive structure of brick, glass, wood and steel. Now a designated heritage site due to its architectural importance, its age (over 50 years) and its location in the Giardini, the building is in need of significant renovation to permit basic utility upgrades and improvements to lighting, temperature control, security and accessibility within the exhibition space. In response, the NGC Foundation, in partnership with the Gallery, established The Canada Pavilion Renovation Fund, with a fundraising target of $3 million, to finance much-needed renovations of the Canada Pavilion. An initial anonymous pledge of $3 million has already been secured. Forecast date for the project s completion is the spring of HELPING YOUTH OBTAIN VALUABLE WORK EXPERIENCE Embracing the Government initiative of Helping Youth Obtain Work Experience, the Gallery entered into partnership with Carleton University s Art History Department to create a Curatorial Study Program. The innovative program aids the cultivation of the next generation of art historians and curators through in-depth exposure to the inner workings of museum management and decision-making. Affording youth an opportunity to obtain valuable work experience in the art field through potential internships at the Gallery is ongoing and will be further explored during the planning period. 20 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

23 ADVANCING OFFICIAL LANGUAGES The Gallery has long been a strong advocate of the promotion of linguistic duality and advancing both official languages in language minority communities. Its efforts were recognized by the Office of the Commissioner of Official Languages, who noted in a past Annual Report that The National Gallery of Canada strives to achieve an equal balance between English and French in its exhibitions in Canada and abroad, even though, in some cases, it has no obligation under the Official Languages Act to do so. The Gallery has maintained the practice of ensuring that didactic information, including extended labels for artworks, are available in both official languages, and ensures that these materials are sent, in both official languages, to all institutions who present the Gallery s travelling exhibitions. PRUDENT MANAGEMENT OF PUBLIC FUNDS The Gallery will continue to take steps to ensure that public money is managed prudently. Oversight through an established framework of control on travel, hospitality, conference and event spending is an integral component of the monitoring activities across the institution. The Gallery adheres to the July 16, 2015 Order in Council that directed Crown corporations to align travel, hospitality, conference and event expenditure policies, guidelines and practices with those of the Treasury Board, in a manner that is consistent with its legal obligations. The Gallery will continue to ensure that alternatives for service delivery and cost savings are pursued wherever possible and expenditures are based on necessity and demonstrate value for money. National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 21

24 RESULTS In , the Gallery successfully advanced its three strategic priorities: INCREASING ATTENDANCE INVESTING IN INFRASTRUCTURE DIVERSIFYING REVENUES 22 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

25 INCREASING ATTENDANCE An impressive exhibition program was featured at the Gallery throughout The Gallery organized and presented 27 exhibitions, which were on view in the National Capital Region and beyond; 15 of them were shown at the main location in Ottawa. The 2015 summer show, Alex Colville, organized by the Art Gallery of Ontario in collaboration with the National Gallery of Canada, was followed by Monet: A Bridge to Modernity, which explored Claude Monet s innovative experiments with the motif of the bridge. From the NGC Prints and Drawings collection, two exhibitions were shown in Ottawa, both of which were very-well received: Chagall: Daphnis & Chloé and Beauty s Awakening: Drawings by the Pre-Raphaelites and their Contemporaries from the Lanigan Collection. The NGC@ program, as well as In association with collaborations with Canadian institutions enjoyed ongoing success. Through strategic partnerships, the NGC@ program enables Canadians in various metropolitan centres the opportunity to explore art from the national collection where they live. In , seven shows were presented at the three partner museums: Toronto s Museum of Contemporary Canadian Art, the Art Gallery of Alberta in Edmonton and the Winnipeg Art Gallery. Additionally, two other Canadian museums and three international venues presented NGC-organized exhibitions during the year. In , highlights of the program included: the presentation of Christian Marclay s The Clock at the Art Gallery of Alberta in Edmonton; a retrospective of the renowned Ron Mueck at the Winnipeg Art Gallery; and the Store Fronts exhibition in Toronto s Museum of Canadian Contemporary Art. The Gallery continued to enhance the overall visitor experience in Data analysis of the Gallery s 2014 survey of visitors to the National Capital Region to measure awareness of the Gallery amongst tourists and to better understand their profile will inform future programming and marketing decisions. Overall, was a very successful year that saw a significant increase in attendance to the main facility in Ottawa. By year end, annual attendance registered 416,442 visitors, with an additional 460,282 visitors reported for all other venues where Gallery programming was on offer. The Gallery continued its efforts to engage audiences through digital platforms. By year end, social media activity across the Gallery s Facebook, Twitter, YouTube, Instagram and Pinterest platforms rose by 48%, with 718,030 active users reported on March 31, As a means of ensuring that the largest number of Canadians (and others world-wide) can access the national collection, digital technology was leveraged by the Gallery in To that end, over 25,000 works are currently available online via the Gallery s website; copyright permitting, efforts to increase the works accessible online continue. Concurrently with its efforts to attract large audiences, the Gallery aims to raise its national and international profile. In the Collection program, the Gallery continued to enhance its reputation as Canada s premier art-collecting institution. In close collaboration with the NGC Foundation, many significant art donations were secured in , which are a testament to the Gallery s reputation for outstanding collections, programming and scholarship. By March 31, 2016, the Gallery acquired 11,452 works of art, 10,989 of which were donated as gifts. In addition, 512 rare books and large collections of archival material were donated to the Gallery. The total value of all acquisitions purchased and donated amounted to $58,376,000. Particularly noteworthy is the value of donated works of art and archival material, which totalled $50,403,000, an increase of more than 1,000% when compared to $3.949 million (restated), the value of works donated in the previous year. National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 23

26 INVESTING IN INFRASTRUCTURE In parallel with building audiences, the Gallery continued its capital infrastructure renewal. Notables included the launch of the Boutique revitalization project, a $2 million capital initiative over two fiscal years. This renovation aimed to remodel the store s footprint to maximize sales potential, reduce operating costs, and enhance the visitor experience. The project represented the first major reinvestment in this important retail space since its inception in 1988, and was completed by late spring of The Gallery undertook further studies of exterior safety and the electrical distribution system, paying attention to previously identified code-compliance recommendations. Resultant recommendations were prioritized and incorporated into the Long Term Capital Plan. During , Protection Services completed a closed circuit television and security hardware upgrade, resulting in the modernization of two communication rooms, and upgrades to cameras and motion detectors. Work on a planned renewal of the Canada Pavilion in Venice also proceeded, with funding provided by the NGC Foundation. The work is scheduled for completion in the spring of The Gallery s initiatives in support of its information management / information technology (IM/IT) strategic plan have progressed very well. By March 31, 2016, implementation of the SharePoint document management system reached 85% completion. The institution is on target to achieve its stated IM/IT objectives and key deliverables by late Overall, in , a total of $1.7 million was invested in capital projects of which $1.5 million related to facilities, and the remaining $200,000 represented upgrades to protection services and improvements to the IM/IT infrastructure. DIVERSIFYING REVENUES The Gallery continued to invest significant time and energy to secure its financial sustainability. The Gallery s second and third naming of capital space took place during the year, in recognition of gifts of $2 million and $10 million respectively from two distinguished donors: the Sobey Family and Scotiabank. The Gallery continued its efforts to expand audiences and increase revenue. In , the Gallery reported an upward trend in attendance to the main facility in Ottawa. The established attendance target of 315,000 visitors was reached by the end of the third quarter, which positively impacted attendance-driven revenue. By March 31, 2016, the institution reported $7.644 million in operating revenues, which represents an increase of 39% when compared to the target of $5.498 million. Overall, operating revenue in increased by 32% over last year s result. By March 31, 2016, revenues from sponsorships, annual giving, and contributions (including contributed services and those from the NGC Foundation) totalled $ million ($1.830 million when $ in contributed items for the collection is excluded). The Gallery monitored revenues and expenditures closely to ensure that the fiscal year closed with a balanced budget or better. A year-end surplus of just over $1 million was achieved. This is in addition to a $2.6 million transfer of funds to the capital budget for future capital investments. 24 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

27 CONCLUSION Through best practices, active engagement of visitors and donors, a vibrant outreach program, and its dedicated expert staff, the Gallery has effectively met its mandate, while successfully advancing the strategic priorities set by its Board of Trustees. National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 25

28 5. STRATEGIC PRIORITIES FOR THE PLANNING PERIOD OVERVIEW As the cost of doing business increases each year, the Gallery must explore ways to diversify revenues beyond its traditional sources to ensure that it has the requisite financial resources to fulfil its public mandate. Specifically, over the planning period, the Gallery will aim to foster improved services to Canadians, appeal to a much broader public beyond major retrospective exhibitions, and adopt a more diverse funding structure for long-term sustainability. In considering the Gallery s strategic objectives, it is important to remember a series of fundamental principles non-negotiable qualities of the Gallery s mission that cannot be compromised and that constitute its robust brand. 26 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

29 Art. The Gallery is a museum dedicated to the visual arts. Although the field of art is broader than the collecting and exhibiting areas covered by the Gallery, if the institution grows, it will be in the direction of art as its definition evolves, rearticulated by succeeding generations. Excellence. The Gallery is exclusively concerned with the most outstanding examples of the visual arts made by the most exceptional visual artists. Creativity. The Gallery believes that art plays a leadership role in the creative economy, not only as a pure manifestation of intellectual and cultural advancement, but as a practical source of ideas, inspiration and example for creative pursuits of all kinds in every field that values innovation. Public. As a national institution, one of the Gallery s key roles is to serve the public. Seeking to understand the interests and needs of various audience segments is important to design relevant experiences, foster engagement, attract new audiences and retain repeat visitors. Professionalism. The work undertaken by the Gallery, the judgments it makes regarding individual objects and the information it produces on the subject of art, are the responsibility of accredited, experienced and well-trained professionals with expertise in the various fields of art that are covered by the Gallery s mandate. Objectivity. The Gallery provides the Canadian public with access to the finest works of art as these are identified by impartial and non-partisan professionals who are exclusively concerned with excellence in art and accuracy in scholarship. Pan-Canadian. Although the Gallery is located in Ottawa, it serves the entire country and is always looking for new ways to expand and extend its services throughout Canada, while honourably representing the Canadian perspective on art for the world. Diversity. The Gallery believes that all forms of visual art-making should be represented in both its collection and exhibition program to the limits of its mandate, expertise and capacity. Moreover, the Gallery strives to ensure that its collections and displays reflect every effort to be accommodating and inclusive. Access. The Gallery strives for everyone to have access to Canada s national art collection and to the information about art that it generates. The Gallery provides direct and digital access to serve audiences with various interests in multiple locations. Knowledge. The Gallery is a center of knowledge and learning, not only about art, but also about every aspect of human culture and history to which art bears witness. Security. The Gallery will not put Canada s national treasure at risk of damage or destruction, whether in the galleries, or on loan. Every precaution is taken to ensure that the works in the Gallery s care will survive in the most ideal state of preservation possible, for the pleasure and edification of present and future generations. Given these fundamental principles in which the institution operates, the organization will concentrate on three closely-interrelated, strategic priorities that it believes will help stabilize revenue and grow its services in the long term. National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 27

30 OUTCOMES, KEY DELIVERABLES AND TARGETS The following section highlights the strategic priorities, their expected outcomes, key deliverables and targets for through to INCREASE ATTENDANCE Expected outcome in five years: The Gallery s programming and the quality of the visitor experience consistently attract a large and diverse audience. Among the indicators of success for the Gallery is the number of visitors and the extent to which the public learn from and appreciate their national collection and the complementary programs that the Gallery offers. To that end, the Gallery will invest effort to stabilize attendance at 350,000 to 400,000 visitors by the end of fiscal year It is paramount that Canadians and tourists are aware of the Gallery and what it does. Resources will be allocated over the planning period to ensure that the visitor experience is relevant and meaningful. Among the strategies to be deployed are a visitor-centric approach to exhibition planning; a better understanding of the visitors profile; and a stronger public awareness of the Gallery s offerings. Amenities and services that contribute to a positive visitor experience will continue to be reviewed with the goal of increased convenience, comfort and engagement, including: a rethinking the Gallery s hours of operation; food and beverage services; a refreshed boutique image and operations; and the use of new didactic technologies and techniques. The Gallery will make special and concerted efforts to engage stakeholder communities of all kinds situated in the National Capital Region and those who visit the area. Although the organization has achieved tremendous success in raising the profile of art in Canada and in providing access to the national collection both in Canada and abroad, its capacity to provide a vibrant program and a high quality visitor experience is fundamental to the fulfillment of its mandate. Accordingly, over the planning period, increasing attendance by reaching a wide and diversified public will be a primary objective for the Gallery. 28 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

31 STRATEGIC PRIORITY 1: INCREASE ATTENDANCE Strategic Outcome The Gallery s programming and the quality of the visitor experience consistently attract large and diverse audiences Objective To stabilize annual attendance at 350, ,000 by and beyond Objective To achieve minimum attendance of 300,000 visitors. STRATEGY 1: ENHANCE THE GALLERY S PROGRAMMING Key Deliverables and Targets: Design and implement a balanced, five-year exhibition program by March 2017, which stabilizes attendance at 350, ,000 visitors annually by Accountable Deputy Director, Exhibitions and Outreach, Deputy Director, Collections and Research, Deputy Director, Advancement and Public Engagement 2016 summer season attracts 100,000 visitors. Deputy Director, Exhibitions and Outreach Deputy Director, Collections and Research, Deputy Director, Advancement and Public Engagement Tell anew the story of art history in Canada through a new installation of the Canadian and Indigenous collections by May 2017, on budget and on time. Deputy Director, Exhibitions and Outreach, Deputy Director, Collections and Research STRATEGY 2: IMPROVE THE VISITOR EXPERIENCE Key Deliverables and Targets: Design the ideal visitor experience for select visits (six journeys within the Gallery) by March Design and implement improvements in signage (digital, didactic, way-finding) by May 2017, increasing visitor satisfaction of way-finding. Design and implement a mobile experience to replace aging audio guide technology by March Accountable Deputy Director, Advancement and Public Engagement, Deputy Director, Advancement and Public Engagement, Deputy Director, Administration and CFO Deputy Director, Advancement and Public Engagement STRATEGY 3: RAISE THE PROFILE OF THE GALLERY Key Deliverables and Targets: Increase the Gallery s social media presence, achieving annual growth of 45% in the total number of active users year-over-year. By March 2017, design and implement a strategic approach to digital image management, resulting in over 26,000 artworks from the national collection available to the public in digital format on the Gallery s website. Accountable Deputy Director, Advancement and Public Engagement Deputy Director, Advancement and Public Engagement, Deputy Director, Administration and CFO Director, Technical Research and Conservation, Deputy Director, Exhibitions and Outreach Implement targeted marketing approaches to attract diverse audiences by March 2017 and measure their success through visitor surveys. Issue a commemorative publication, which highlights key works from the Canadian and Indigenous collection, by May Deputy Director, Advancement and Public Engagement Deputy Director, Exhibitions and Outreach Director and CEO National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 29

32 DIVERSIFY REVENUES Expected outcome in five years: Revenue sources are established that contribute materially to the institution s financial sustainability and growth. The increasing cost of doing business challenges the organization s stability and impedes the Gallery s capacity to respond to the ever-changing expectations of art lovers and Canadians in general. Traditionally, the organization relies on two sources of funding, federal government appropriations at around 80-85%, and earned and contributed income at approximately 15-20%. However, the Gallery must continue to develop in the areas of philanthropy, sponsorship and commercial activities. The institution must invest in its ability to appeal to Canadian benefactors and foreign philanthropists with a special interest in Canada. It is also important that the organization concentrate on improving and expanding the network of Distinguished Patrons and other art-loving individuals who can support the Gallery through the NGC Foundation, whether in naming opportunities or new fundraising initiatives. The traditional museum-sponsor relationship tends to focus on credited support for special exhibitions. Where appropriate, the Gallery will broaden its efforts to seek sponsorships for a wider range of its activities, not only for exhibitions, but for public programs as well. Through relationships with key partners, efforts to encourage increased and long-term support, which can cross over into product and service development, will continue. The Gallery will continue to find opportunities to reinforce its brand in an effort to raise its profile and secure the means to improve and extend its services. Moreover, the Gallery must explore possibilities, both within its facility, as an inducement to increased attendance, and through an expanded distribution network to ensure a greater retail presence far beyond its walls. The Gallery will ensure that strategies are in place to attract and engage new audiences and maximize revenue potential. The institution will reallocate resources, if required, to respond to the changing needs of the organization. 30 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

33 STRATEGIC PRIORITY 2: DIVERSIFY REVENUES Strategic Outcome Revenue sources are established that contribute materially to the institution s financial stability and growth Objective All revenue sources (operating, sponsorship and contributions, including those from the NGC Foundation) generate funding of $8 million annually (excluding contributed items for the collection) Objective Operating revenue totals $5.895 million by March 31, STRATEGY 4: PHILANTHROPIC GIVING Key Deliverables and Targets: Receive a disbursement of funds from the NGC Foundation of $1.2 million in support of the Gallery s major initiatives of national importance in collections, outreach, special projects and research, including national outreach, the Canadian Photography Institute, the Venice Biennale, the Canadian Artists in Venice Endowment and the Canada Pavilion Restoration Fund. Accountable CEO, NGC Foundation STRATEGY 5: INCREASE FUNDRAISING Key Deliverables and Targets: Secure sponsorship of $500,000 in cash and in kind to fund NGC programs and/or projects by March Raise $500,000 in contributions (from individuals, members, corporations and foundations, excluding the NGC Foundation) by March Accountable Deputy Director, Advancement and Public Engagement Deputy Director, Advancement and Public Engagement STRATEGY 6: INCREASE OPERATING REVENUE Key Deliverables and Targets: Achieve operating revenue of $5.895 million in Accountable Deputy Director, Administration and CFO, Deputy Director, Exhibitions and Outreach, Deputy Director, Advancement and Public Engagement Emily Carr White Pass Trip, 1907 Watercolour and black ink over graphite on beige wove paper, cm National Gallery of Canada, Ottawa Photo: NGC National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 31

34 INVEST IN INFRASTRUCTURE Expected outcome in five years: The Gallery s infrastructure its collection, facilities, systems, business tools, partnerships and networks is strengthened to support the delivery of the Gallery s mandate. Traditionally, the word infrastructure is used to describe the physical plant but the infrastructure at the Gallery s disposal is actually broader and reaches much further than the building. It includes, for example: its network of Canadian and international museum partners; its list of members, donors and sponsors; and its direct internet access to millions of Canadians and foreigners through the website and direct e-bulletins, etc. All of these constitute valuable infrastructure that can serve to aid in the achievement of the Gallery s mandate. The Gallery has yet to fully exploit these valuable networks as part of its soft infrastructure with potential to raise the Gallery s profile, extend the reach of its services and diversify its revenue sources. Notwithstanding this expanded definition of infrastructure, the Gallery needs to improve and expand its physical plant over the next five years, be it in climate control or the visitor experience. From replacing the windows in the Colonnade, to the reinstallation of the Canadian and Indigenous collections in the galleries in time for the 150 th anniversary of Confederation in 2017, the physical plant will need management s attention over the next five years just as much as the exploitation of the Gallery s networks. The important goal is to have a holistic and comprehensive infrastructure and to understand how it can all work together for the benefit of the Gallery s mission and Canadians. STRATEGIC PRIORITY 3: INVEST IN INFRASTRUCTURE Strategic Outcome The Gallery s infrastructure its collection, facilities, systems, business tools, partnerships and networks is strengthened to support the delivery of the Gallery s mandate Objective Major components of the Gallery s infrastructure and networks are revitalized Objective $13,165,000 is invested in infrastructure improvements to renew physical and technological assets. STRATEGY 7: MODIFY PUBLIC OUTREACH MODEL Key Deliverables and Targets: Design the NGC National Outreach Plan by March 2018, which will include a fiscally-responsible framework for collaborative agreements with regional institutions. Implement a sustainable management model for the Venice Biennale by September Implement recommendations from the Audit of Education by March Accountable Deputy Director, Exhibitions and Outreach Deputy Director, Exhibitions and Outreach CEO, NGC Foundation Deputy Director, Advancement and Public Engagement, Director, Human Resources 32 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

35 STRATEGY 8: REVITALIZE CAPITAL INFRASTRUCTURE Key Deliverables and Targets: Investigate and, where feasible, address deficiencies identified in Phase 1 of the code compliance by March Implement projects to address high-risk elements of exterior site hazards by March Address deficiencies identified in electrical distribution studies to ensure safe and stable operation of electrical infrastructure by March Complete the Boutique revitalization on budget by June Accountable Deputy Director, Administration and CFO Deputy Director, Administration and CFO Deputy Director, Administration and CFO Deputy Director, Administration and CFO Complete the renovation of the Canada Pavilion in Venice on budget by May Implement audio-visual life-cycle reinvestment in the Auditorium, the Lecture Hall, the Scotiabank Great Hall, and the Ron Mannix Boardroom by March Complete Digital Strategy Phase 1: investment in the redevelopment of the NGC website with a different web content management system by May Complete Digital Strategy Phase 2 investment in a client relationship management system to track NGC relations with clients in all stages of engagement from users, to visitors, to repeat visitors, to event participants, members, donors, partners and stakeholders by March Complete replacement of parking access and control systems by March Develop an integrated space allocation plan for all users and usage requirements on-site including public spaces, gallery and exhibitions spaces, and office accommodation by June Deputy Director, Administration and CFO CEO, NGC Foundation Director, Conservation and Technical Research, Deputy Director, Administration and CFO, Deputy Director, Advancement and Public Engagement Deputy Director, Advancement and Public Engagement Deputy Director, Administration and CFO, Deputy Director, Advancement and Public Engagement Deputy Director, Administration and CFO, Deputy Director, Advancement and Public Engagement Deputy Director, Administration and CFO, Deputy Director, Exhibitions and Outreach, Director, Conservation and Technical Research STRATEGY 9: IMPLEMENT CORPORATE PROGRAMS Key Deliverables and Targets: Integrate the NGC Department of Photographs within the Canadian Photography Institute and develop the Institute s long-term strategic plan by March Enact the Information Management Strategy and implement component plans by September 2016 including a fully functional SharePoint with a document management system, Retention and Disposition Schedule, and Vital Records Initiative. Finalize and implement the Risk-Based Internal Audit Plan by March Accountable Director, Canadian Photography Institute Deputy Director, Administration and CFO Director, Corporate Secretariat and Ministerial Liaison National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 33

36 6. FINANCIAL INFORMATION Vilhelm Hammershøi Sunshine in the Drawing Room (Solskin i dagligstuen), 1910 Oil on canvas, cm National Gallery of Canada, Ottawa Photo: NGC 34 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

37 OVERVIEW The Gallery receives annual appropriations from the Government of Canada, which it supplements through revenue-generating activities. It also receives contributions from the National Gallery of Canada Foundation, other foundations, corporations and individuals in support of projects, acquisitions, and programming. Table 1 below represents an overview of financial resources for the planning period: Table 1: Overview of Financial Resources Status on March 31 Actual Actual Actual* Budget** Planned** Planned** Planned** Planned** Appropriations for operating and capital expenditures (Vote 1) 36,193,222 36,308,269 37,776,761 38,078,410 46,203,410 37,243,410 38,113,410 38,173,410 Appropriations for the acquisition of objects for the Collection and other costs attributable to this activity (Vote 5) 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 Total appropriations 44,193,222 44,308,269 45,776,761 46,078,410 54,203,410 45,243,410 46,113,410 46,173,410 Earned revenue 4,807,000 5,768,000 7,644,000 5,895,000 6,424,000 6,563,000 7,058,000 6,765,000 Sponsorship & Contributions 2,518,000 6,205,000 52,233,000 4,080,000 4,050,000 4,100,000 4,100,000 4,100,000 Total for Sponsorship & Contributions 7,325,000 11,973,000 59,877,000 9,975,000 10,474,000 10,663,000 11,158,000 10,865,000 * In , Sponsorship and Contributuions include $50,403,000 in contributed items for the collection **For and beyond, the figures in this table represent estimates only and may be subject to change. Table 2 below reconciles the budget with the sources of funding. Table 2: Budget Reconciliation NGC Budget for Operating Capital Total Operating expense 53,296,000 53,296,000 Amortization expense 7,100,000 7,100,000 Capital expenditures 13,165,000 13,165,000 Total expenses 60,396,000 13,165,000 73,561,000 Sources of funding Vote 1 Base appropriations for the operating and capital budget 34,888,410 1,000,000 35,888,410 Vote 5 Appropriations for the acquisition of art 8,000,000 8,000,000 Supplementary funding for capital projects (out of $9.6M) 1,000,000 1,000,000 Supplementary funding for capital projects (out of $8.8M) 1,190,000 1,190,000 Restriction of unrestricted funds for capital purposes (5,518,160) 5,518,160 Deferred contributions for capital purchases 4,456,840 4,456,840 Deferred contributions for amortization 7,100,000 7,100,000 Revenues and Contributions 9,975,000 9,975,000 54,445,250 13,165,000 67,610,250 Net decrease in unrestricted net assets (5,950,750) (5,950,750) Note: $5,950,750 consists of $5,518,125 (for capital) and $432,625 (for the 2017 Project s operating expenses) National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 35

38 ASSUMPTIONS AND PROJECTIONS Parliamentary appropriations include additional funding received through Budget Revenue projections are presented in a conservative manner based on planned exhibitions for their respective years. The expenditures are forecast by program, as are allocated resources to achieve the stated priorities and the strategies outlined above. This approach also considers historical spending. Parliamentary Appropriations Federal appropriations represent about 80 to 85% of the total non-art acquisition resources available to the Gallery for operations and capital. For and future years, the Gallery s base parliamentary appropriations for its operating and capital budget, and acquisitions of art, are expected to remain constant at $34,888,410 and $8,000,000 respectively. Permanent capital appropriations are at a base annual level of $1,000,000. In addition to the base capital budget, capital funding in the amount of $2,190,000 in was allocated through Budget In total, from through to , the Gallery will see an increase of $18.4 million in appropriations for capital, a welcome relief to current pressures on its capital budget. Figure 4 illustrates the Gallery s resource base for the fiscal year for operations and art acquisitions. 68% 14% Appropriations for Operating and Capital Appropriations for Art Acquisitions Earned Revenue Contributed Revenue 7% 11% Figure 4 Resource Base for Operations and Art Acquisitions, Earned and Contributed Revenues Earned and contributed revenues consist of operating revenue, sponsorships and contributions. In an environment where competition for attendance, sponsorship and fundraising is fierce, the Gallery has to make strategic choices so that it can deliver its mandate with the level of excellence expected of a national and world-leading museum. As appropriations for the operating budget are expected to remain at current levels over the planning period, as a way to augment its resource base, the Gallery will continue to focus on increasing its operating revenue from admissions, Boutique sales, parking and food services. These operating revenues are directly linked to attendance, which fluctuates from year to year depending on many factors, including popularity of the summer exhibition and tourism levels in the National Capital Region. 36 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

39 Table 3 illustrates fluctuations in attendance broken down by paid and unpaid admission. Table 3: Attendance Actual Actual Actual Actual Projections* Projections* Projections* Projections* Projections* Paid admission N/A 147, , , , , , , ,000 Unpaid admission N/A 89, , ,748 90, , , , ,000 Total attendance 444, , , , , , , , ,000 *For and beyond, the figures in this table represent estimates only and may be subject to change. Plans for operating revenue, sponsorships and contributions generally account for 15-20% of the resource base (when excluding items contributed to the collection). For , the Gallery estimates its earned revenue at $5,895,000. This represents a decrease of $1,749,000 when compared to the actual of $7,644,000. The estimated decrease in operating revenue is based primarily on forecast attendance to the Gallery s 2016 summer exhibition, which is expected to fall short of visitorship realized during the summer of Moreover, a decrease in visitorship is also expected, owing to the closure of the permanent collection galleries for a portion of the fiscal year (from August 2016 through to May 2017) for installation of the Canadian and Indigenous Galleries for Table 4: Earned Revenue (Operating Revenue) (in thousands of dollars) Actual Actual Actual Actual Budget* Projections* Projections* Projections* Projections* Total earned revenue 12,130 4,807 5,768 7,644 5,895 6,424 6,563 7,058 6,765 * For and beyond, the figures in this table represent estimates only. One of the NGC s ongoing efforts is to increase philanthropic support through both the Gallery s Annual Giving campaign and through various initiatives of the NGC Foundation. The contributions from the Foundation are transferred to the Gallery on an as-needed basis. In , the Gallery estimates that contributed revenue, which consists of sponsorships (in cash and in kind) and contributions, including those from the NGC Foundation, will amount to $4,080,000 (this figure excludes contributed items for the collection). Table 5: Contributed Revenue (Sponsorship and Contributions) (in thousands of dollars) Actual Actual Actual Actual Budget* Projections* Projections* Projections* Projections* Total contributed revenue 1,969 2,518 6,205 52,233 4,080 4,050 4,100 4,100 4,150 * Includes $50,403 in Contributed items to the collection. * * For and beyond, the figures in this table represent estimates only. Details on earned and contributed revenue can be found in the Schedule of Operating Revenue and Contributions in Section 6.5. National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 37

40 OPERATING BUDGET Operating Expenses The Gallery s core programs such as Collection (acquisitions, research and preservation) and Outreach (exhibitions, education and communications) require 24% ($14,352,000) and 28% ($16, 723,000) respectively of the Gallery s total budget (including appropriations for the acquisition of art). The Accommodation program (building operations and capital) expends 34% ($20,854,000) of the available resources. The remainder of the Gallery s resource base is used to support the Internal Services program (governance, administration and revenue generation) at 14% ($8,468,000). Figure 5 below illustrates the program alignment of the Gallery s resource base for the fiscal year % 24% Accommodation Outreach Collection Internal Services 34% 14% Figure 5 Expenses by Program, , including art purchases The Gallery continues to face escalating non-discretionary costs associated with operating and maintaining its facilities and ensuring the protection of the national collection. The source of these pressures relates to price increases for utilities and services from major service providers. Funding for these non-discretionary costs is not indexed against inflation. Likewise, mounting costs for transportation, exhibition installations and insurance further strain the resource base. Net Results of Operations In and , the Gallery is forecasting an operating deficit equivalent to the capital and operating investment associated with the Canadian and Indigenous Galleries renovation project, as the source of funds for this investment are unrestricted net assets. 38 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

41 CAPITAL BUDGET Capital Assets Overview The real estate holdings of the National Gallery of Canada are: The main building on Sussex Drive in Ottawa, a 72,200 square metre facility that includes exhibition galleries, art storage vaults, laboratories, a library, offices, a 400-seat auditorium, a lecture hall, a gift shop, a cafeteria, an underground parking garage, workshops, and high-profile special events areas; Two leased warehouse facilities in Ottawa: a 3,140-square metre facility for both art and non-art storage, and a 1,738 square metre facility dedicated solely to art storage; and The Canada Pavilion: a 150-square metre building located in Venice, Italy, which is used for the Venice Biennale, a major international art event. Capital Expenditures With the sunsetting of supplementary funding for capital renewal on March 31, 2013, the base allotment for capital returned to $1 million annually for and beyond. These capital appropriations of $1 million are allocated on a risk-basis to address emerging issues associated with an aging building, and to remain compliant with occupational health and safety regulations. Through Budget 2016, $9.6 million in supplementary capital funding was allocated to the Gallery to: replace windows, roof, sails and blinds in the Main Entrance Pavilion and Colonnade; address a sloped sill safety issue in the Colonnade; and replace two interior elevators to meet building code requirements. Of the $9.6 million, $1 million will be appropriated in with the remaining $8.6 million allotted in In addition, through Budget 2016, the Gallery received supplementary funding to address a series of the most pressing health and safety concerns; 35 projects were identified for completion over the five-year planning period for a total of $8.8 million, which amount will be appropriated as follows: $1,190,000 in $1,715,000 in $1,355,000 in $2,225,000 in , and $2,285,000 in The Gallery s forecast capital expenses for will total $13,165,000 (including contingencies). National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets 39

42 Canadian and Indigenous Galleries Renovation Project The overall budget for this unprecedented project has been set at $7.4 million, which includes a one-time capital investment of close to $6.0 million and operating costs of $1.4 million, both to be expensed over two fiscal years. The expenditures are directed towards facilities and design services, including demolition and construction of walls, fit up, floors, blind controls, Garden Court landscaping, Rideau Chapel enhancements and new seating; materials and equipment, including the acquisition of new display cases and the replacement of the lighting system and multimedia equipment. In keeping with Government direction to federal institutions to self-fund their 2017 projects and programming, the Gallery will access its unrestricted net assets, which are derived from re-spendable revenues generated by the institution in previous years, to fund this major undertaking. Doing so is consistent with the authorities set forth in the Museums Act, the Gallery s enabling legislation. Specifically, Part 1, Section 6(1) (p) of the Act states that: The National Gallery of Canada has the capacity and, subject to the Act, the rights, powers and privileges to charge for goods, services and admission and use the revenue obtained therefrom for its own purposes. The Gallery will restrict up to $5,518,000 of operating funds for capital investment to fund this project. An operating deficit equivalent to the capital and operating expenses is presented in the Statement of Operations in and , as a result of funding this project through unrestricted net assets. Long Term Capital Plan (LTCP) and Unfunded Capital Requirements As the main facility ages, now in its 28th year of operation, the demand for investment in life-cycle maintenance and repairs to the building and mechanical systems will continue to increase. The Gallery updates its LTCP annually with revised cost estimates of projects that are prioritized after careful consideration of risk of deferral and affordability. The LTCP addresses vulnerable areas of the building s infrastructure risks to building operations through life-cycle recapitalization of architectural, mechanical and electrical systems and also includes specific projects that address risks related to code compliance, health and safety, and protecting the collection. As of July 2016, the NGC s LTCP listed $26.7 million in unfunded capital projects. Through Budget 2016, $18.4 million in supplementary capital funding was allocated to the Gallery to address a series of health and safety projects. This funding will address the most immediate health and safety concerns over the next five years, covering the cost for 69% of the projects identified in the LTCP. Notwithstanding the capital investments made possible through Budget 2016, which will be undertaken during the planning period, 31% of the capital projects identified in the Gallery s LTCP remain unfunded. The Gallery will continue to review its LTCP and will prioritize available resources to ensure that the most pressing projects are completed, and others deferred until funding has been identified. The Gallery will utilize all available avenues to secure the necessary funding for its ongoing capital infrastructure needs. 40 National Gallery of Canada Summary of the Corporate Plan and Operating and Capital Budgets

43 FINANCIAL STATEMENTS