National Museum, Bloemfontein. Presentation to the Parliamentary Portfolio Committee on Arts & Culture Wednesday, 24 August 2011

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2 2 National Museum, Bloemfontein Presentation to the Parliamentary Portfolio Committee on Arts & Culture Wednesday, 24 August 2011

3 3 National Museum, Bloemfontein 1. Overview of the National Museum a. Legislative mandate b. Vision and Mission c. Governance & Organisational structures d. Main complex & satellite museums 2. Strategic objectives 2009/ Annual Report 2009/2010 a. Internal controls (Internal Audit & Risk Assessment) b. Financial overview (Budget 2009/10, AFS, Audit Report) c. Human Resource Management 4. Successes / Highlights / Challenges

4 4 Overview of the National Museum Legislative mandate The National Museum is a Declared Cultural Institution in terms of section 3 of the Cultural Institutions Act (Act 119 of 1998), resorting under the National Department of Arts and Culture (DAC)

5 5 Overview of the National Museum Legislative mandate The National Museum is a Schedule 3A public entity in terms of the Public Finance Management Act (Act 1 of 1999)

6 6 Overview of the National Museum Vision To be known as the best heritage centre in Africa Mission To provide heritage information and an enjoyable experience to all people through quality research, conservation, education and exhibitions

7 7 Overview of the National Museum Governance structure DAC COUNCIL MANAGEMENT COUNCIL COMMITTEES AUDIT COMMITTEE Ad hoc COMMITTEE(S) CORE BUSINESS SUPPORT SERVICES

8 8 Overview of the National Museum Operational structure MANAGEMENT Research & Collections Education & Information Services Administrative Support Services Technical Services

9 9 Overview of the National Museum Main complex & satellites

10 10 Overview of the National Museum Satellites: Oliewenhuis Art Museum

11 11 Overview of the National Museum Satellites: Oliewenhuis Art Museum

12 12 Overview of the National Museum Satellites: Freshford House Museum

13 13 Overview of the National Museum Satellites: Florisbad Research Station

14 14 Overview of the National Museum Satellites: First Raadsaal & Wagon Museums

15 15 Overview of the National Museum The National Museum performs its conservation, research and educational functions in a broad spectrum of disciplines in the Natural Sciences, Human Sciences and Visual Arts.

16 16 Overview of the National Museum Natural Sciences (9 departments) Acarology Arachnology Botany Entomology Herpetology Mammalogy Ornithology Karoo Palaeontology Florisbad Quaternary Research

17 17 Overview of the National Museum Human Sciences & Visual Arts (5 departments) Anthropology Archaeology History Rock Art Oliewenhuis Art Museum

18 18 Strategic objectives 2009/2010 The Museum pursues the achievement of strategic objectives in the following key areas of operation: Curation & Conservation of Collections Research Education & Public Programmes Support Services

19 19 Strategic objectives 2009/2010 Curation & Conservation of Collections To collect, conserve & curate materials & objects of natural & cultural heritage, as part of the collective National Estate, relevant to the disciplines of the National Museum To expand collections to include materials, objects & information which will promote an enhanced sense of national pride in the diverse heritage shared by all South Africans

20 20 Strategic objectives 2009/2010 Research To undertake heritage research relating to the various disciplines of the National Museum to produce quality results To communicate the relevance & meaning of these results to a broad audience To promote a greater awareness of the importance & role of previously marginalised communities in contributing to South Africa as a nation

21 21 Strategic objectives 2009/2010 Education & Public Programmes To provide informative and enjoyable educational experiences through relevant formal & informal activities, exhibitions & public outreach programmes To contribute to promoting a greater awareness & better understanding of South Africa s diverse cultural & natural heritage

22 22 Strategic objectives 2009/2010 Support Services To provide necessary support to ensure the achievement of the Museum s primary objectives (undertaking quality research, expanding & managing diverse heritage collections, communicating to all the importance of this heritage to the South African nation)

23 23 Annual Report 2009/2010 Internal controls 1 Budget: Regular monitoring of budget and expenditure Assets: Asset register complete; loss control procedures in place Risk Management: Risk Management Strategy, Fraud Prevention Plan in place Internal Audit: Internal Audit Function outsourced (PwC); fully functional

24 24 Annual Report 2009/2010 Internal controls 2 Audit Committee: Audit Committee fully functional Information Technology: Disaster Recover Plan (DRP) and Business Continuity Plan (BCP) in place Finance Policies: Policies are regularly reviewed and aligned with legislative imperatives

25 25 Annual Report 2009/2010 Financial overview: Budget 2009/2010 Subsidy Received R'000 19,629 21,098 23,401 24,462 30,960 34,071 36, / / / / / / /2014

26 26 Annual Report 2009/2010 Financial overview: Budget 2009/2010 Revenue/Funding 2% 1% 5% Subsidy from DAC NRF Interest received Other income 92%

27 27 Annual Report 2009/2010 Financial overview: Budget 2009/2010 Staff Costs vs Operating Costs Operating Costs 22% Staff Costs 78%

28 28 Annual Report 2009/2010 Financial overview: AFS Statement of Financial Position Assets R 000 Current Assets 4, 168 Non Current Assets 7, 060 Liabilities Current liabilities 2, 395 Non Current liabilities 15, 274 Earmarked funds 1, 775 Accumulated Deficit 8, 216

29 29 Annual Report 2009/2010 Financial overview: AFS Statement of Financial Performance Revenue R 000 Subsidy from DAC 23, 401 NRF funding 0, 598 Interest received 0, 262 Other Income 1, 602 Total Revenue 25, 863 Expenses Staff costs 23, 607 Audit fees 0, 841 Operating Expenses 5, 989 Total Expenses 30, 437 Deficit for the year 4, 574

30 Annual Report 2009/ Financial overview: Audit Report Unqualified audit opinion for 2009/2010 Matters of Emphasis 1. Restatement of corresponding figures The numbers for the fixed assets and the corresponding figures for 31 March 2009 had to be restated as a result of the Museum s policy to only capitalise assets with a cost price above R Items with a cost price below R2 000 had been written off as expenses in previous financial years. This resulted in an increase of fixed assets amounting to R and a decrease in accumulated deficit of R

31 Annual Report 2009/ Financial overview: Audit Report Unqualified audit opinion for 2009/2010 Matters of Emphasis 2. Going Concern Due to the recognition of the National Museum s defined benefit obligations for retirement benefits of employees, as required by International Accounting Standard (IAS) 19, the Museum does not have a favourable financial position.

32 Annual Report 2009/ Financial overview: Audit Report Unqualified audit opinion for 2009/2010 Reason and action plan: Going Concern 1 This is due to the additional expenses relating to the application of IAS 19 for the provision of employee benefits, which had to be recognised in the Statement of Financial Position and Statement of Financial Performance. The Museum s budget did not/does not make provision for the book entries of million relating to the post-retirement medical liability and R million relating to the pension benefits as per the actuarial valuation received.

33 Annual Report 2009/ Financial overview: Audit Report Unqualified audit opinion for 2009/2010 Reason and action plan: Going Concern 2 Although the liabilities are a reflection of the commitment of the Museum, they are not payable in the near future. The application of IAS 19 has a significant impact on the Financial Statements. It is however impractical to budget for the charge to the Statement of Financial Performance. This would also result in increased investments and no funds available for operational activities.

34 Annual Report 2009/ Financial overview: Audit Report Unqualified audit opinion for 2009/2010 Reason and action plan: Going Concern 3 The Museum provides for subsidies in respect of continuation of member health care costs. Employees have the option to join any of the available plans of the Bestmed medical aid scheme. In terms of the Museum s Subsidy Policy, continuation members who retired before 30 June 1992 receive a 100% subsidy. Employees in service as at 31 December 2007 are subsidised 66% of the required monthly subscriptions. The entitlement to these benefits is dependent upon the employee remaining in service until retirement age.

35 Annual Report 2009/ Financial overview: Audit Report Unqualified audit opinion for 2009/2010 Reason and action plan: Going Concern 4 This matter has been discussed at several meetings of the Museum s Audit Committee and Council. The matter has also been raised with officials at the Department of Arts and Culture, who are aware of the implications for Public Entities of the need to recognise IAS 19 in the Statement of Financial Position and Statement of Financial Performance.

36 Annual Report 2009/ Financial overview: Audit Report Unqualified audit opinion for 2009/2010 Reason and action plan: Going Concern 5 Policy was amended to limit the liability and was approved in This policy states that employees appointed after 1 January 2008 do not qualify for health care benefits after retirement. Thus as employees appointed before 1 January 2008 resign or otherwise leave the service of the Museum, vacancies are filled by employees with no after-retirement health care benefits. This issue will thus be addressed in the long term only.

37 37 Annual Report 2009/2010 Human Resource Management Skills development: Formal & informal training; internal & external Performance Management: System is in place Occupational Health & Safety: Policies and procedures are in place Wellness and Safety: Policies and procedures are in place (can do more) Policy Review: Policies are regularly reviewed and aligned with legislative imperatives

38 38 Successes / Highlights / Challenges Education & Outreach Record visitor numbers: ±

39 39 Successes / Highlights / Challenges Education & Outreach Successful Mobile Museum activities

40 40 Successes / Highlights / Challenges Education & Outreach Exhibitions: 21 temporary art exhibitions hosted (e.g. Mbongeni Buthelezi)

41 41 Successes / Highlights / Challenges Education & Outreach Making displays accessible to people with disabilities

42 42 Successes / Highlights / Challenges Research & Collections Batho Community History Project

43 43 Successes / Highlights / Challenges Research & Collections International Collaboration, significant additions to collections (e.g. Entomological work in DRC, East Africa)

44 44 Successes / Highlights / Challenges Research & Collections International Collaboration, significant additions to collections (e.g. Quaternary Research; new extinct fossil zebra discovered)

45 45 Successes / Highlights / Challenges Training Post-graduate studies, ABET

46 46 Challenges 1 Lack of proper storage facilities for heritage collections: this is becoming critical; space is extremely limited for most collections

47 47 Challenges 2 Capacity issues: finding appropriately qualified people to consider employing (specialised disciplines) Capacity issues: to address everincreasing demands (e.g. compliance, performance reporting) Resources: to pay market-related salaries Resources: to replace old assets (e.g. vehicles)

48 48 Challenges 3 Heritage assets: expertise to evaluate heritage collections / assets? Heritage assets: capacity to undertake the exercise? Heritage assets: funds to undertake the exercise?

49 Thank you for this opportunity 49

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