Die Afrikaanse Taalmuseum & -monument

Presentation to Arts and Culture Portfolio Committee, National

Assembly, RSA2 March 2011

Legal Mandate

• In compliance with the South African Constitution

• Established in terms of the Cultural Institutions Act

• Subject to the National Heritage Resources Act

• Subject to the Public Finance Management Act and Treasury Regulations

Who the Afrikaans Lanuage Museum and Monument are

• A national museum and monument established in terms of the Cultural Institutions Act

• A Schedule 3A public entity in terms of the PFMA

• A museum and monument that tells the story of Afrikaans

• We are located in Paarl, Western Cape– Museum and Administration: 11 Pastorie Avenue,

Paarl– Monument and Amphitheatre: Gabbema Doordrift

Street, Paarl Mountain

What the Afrikaans Language Museum and Monument do

• Governed by a non-executive council of independent members appointed by the Minister broadly representative of all South Africans

• Managed by a full time management team• Collect, conserve, exhibit and educate• Offer educational, public, research and outreach

programmes• Build relationships individually and collectively

on a multicultural and multilingual basis

Entity arrangements• Was established on 1 July 1977 and consists of

a museum, a monument and a an amphitheatre• Arts & Culture Minister appoints Non-Executive

Council to oversee strategy and policy execution for 3 year terms

• Management implements the Council strategy within Council policy framework subject to the law and established norms and standards for institutions of this type and purpose

• Account to Minister, National Treasury and Parliament

Vision

• The vision of the ATM is to operate the national Afrikaans Language Museum & Monument in such a manner that all South Africans are able to respect and appreciate Afrikaans

Mission• Build relationships with all South Africans through the medium of Afrikaans

and in the context of multilingualism• Collect relevant material and information related to the origin and

development of Afrikaans• Conduct research that would deepen and broaden existing knowledge about

Afrikaans• Portray the origin, development, benefit and expansion of Afrikaans;

thereby stimulating visitor interaction• Give exposure to the different facets of Afrikaans by means of lectures and

articles• Promote and stimulate Afrikaans at all levels of society by offering

educational programmes, guided tours and cultural activities• Manage the ATM on sound financial principles and strive for its independent

economic management• Increase the number of visitors and generate funds• Maintain the ATM’s culture-historical buildings and heritage sites and the

heritage of Afrikaans for the benefit of visitors

Values• Strives for the wellbeing of Afrikaans in South African

society.– Encourage and support Afrikaans among the youth and non-

mother-tongue speakers– Establish mutual respect between Afrikaans and other

indigenous languages– Acknowledge the mutual influence of different languages on

each other• Strive to always work candidly and transparently.

– High standards are maintained in educational presentations to learners and other groups of visitors

– Strong emphasis on operating within the framework of relevant legislation and requisite rules and policies

• Strive for high levels of integrity, reliability, transparency and professionalism.

Strategic priorities

• Attract more visitors to our facilities through improved service delivery

• Increase average self-generated funds annually from 20% to 25% in next 5 years

• Improve infrastructure, facilities and security

Challenges on service delivery• Improved visitor experience – implement feedback from visitors’

questionnaires• New exhibition in place and preparing a new exhibition• Guided tours in place• New services to public

– Youth Club– Sunset Concerts– Venue for weddings at Monument

• Staff development an ongoing programme• Human capacity still a challenge

– Funding needed for at least 7 posts being subsidised by ATM reserve fund and normal wages budget which is running low at an alarming rate

• Delays in council appointment still a challenge

Self-generated funding

• Positive news coverage• Introduced profitable events and courses

– Full-moon Picnics, Stargazing evenings, Author’s events, courses, e.g. Creative Writing Sessions and Book repair courses

• Photo shoots• Wedding and Function venues• New ATM products for sale

Improve infrastructure, facilities and security

• Construction of new Interpretation Centre at Monument• Upgrading of the Amphitheatre• Enlarge stage for music concerts• Facilities for people with disabilities:

– Wheel chair parking and wheel chair path available at the Monument

– New wheel chair path to viewing area to be build from the Interpretation Centre

– Urgent need for wheel chair toilet facilities at the Monument• Security cameras are installed inside and in the parking

area behind the Museum, as well as at the Monument gate and Coffee Shop– Urgent need for security cameras at the new Interpretation

Centre

What we accomplished and not accomplished in the year under

review• Swedish Kalmar Läns Museum targeted ATM as only national

museum in South Africa where Time Travel would be offered• Participated in the Roots project at the University of the Western

Cape by staging an exhibition on the historical roots of Afrikaans• Full-moon picnics and stargazing evenings offered at the Monument

is increasing in popularity• 22 museums and heritage institutions were brought together by the

ATM to participate in the Museum and Heritage Expo• The curator presented a paper at the Commonwealth workshop held

in Durban• A researcher was appointed to found a research centre and

establish a network with all relevant institutions• The ATM generated 16% of the institution’s total income• The ATM did not achieve an unqualified audit report which was the

aim for the year 2009/2010

Financial information

• Statement of Financial Performance

2010 2009

Total revenue 4 640 225 4 173 676

Total expenses 4 619 140 4 222 489

Surplus/(deficit) for the year 21 085 (48 813)

Financial information (cont.)

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Total revenue Total expenses Surplus/(deficit)

20102009

• Graphic Analysis of Financial Performance

Financial Highlights

• Revenue– The ATM received most of its funding from the

subsidy allocations from the National Government through the Department of Arts & Culture. The ATM also received a sponsership of R50 000 from the Het Jan Marais National Fund for educational programmes and free transprotation of needy learners to the ATM

– Total Revenue for the year under review increased by 10% from R4 173 676 to R4 640 225

Financial Highlights

• Revenue (continued)– The subsidy of the Department of Arts and

Culture accounted for 84% of the total revenue. 9% for entrance fees, 1% a sponsorship for educational programmes, 2% generated through interest from bank investments and 4% from rental of facilities, events held and sales of stock (i.e. postcards, T-shirts, etc.)

Financial Highlights

• Expenses– The expenditure for the year under review is R4 619

140 eliciting an increase of 9% from the recorded previous year due to a relative increase in other expenses comprised of communications expenses, staff expenses, audit fees, council travel and accommodation, exhibition expenses, repairs and maintance and security expenses as main contributors. The total expenses is made up of 70% fixed costs on personnel, 8% on administrative costs and 22% on core functions.

Financial Highlighs

• Budget– The Afrikaans Language Museum and

Language Monument is a going concern with a budget of R4 975 851 for the year 2010/2011. The ATM will continue to adopt a going concern basis in preparing its financial statements in the year ahead as the budget indicates.

Financial Highlights• While a great deal of work still needs to done to improve

the baseline funding to facilitate meeting targets set in the ATM’s strategic plan, the results for the year under review demonstrate progress, and Management remains committed to achieving their strategic objectives. The vision of erecting an Interpretation Centre at the monument is becoming a reality once it is completed by the planned date i.e. 25 May 2011. The Centre will meet in a great need to welcome and orientate visitors concerning the establishment and evolution of Afrikaans.

Financial Information

• Statement of Financial Position2010 2009

Non-Current Assets 1 960 370 1 778 497

Current Assets 288 174 635 432

Non-Current Liabilities 53 246 49 092

Current Liabilities 429 250 619 874

Financial Information (cont.)

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100000012000001400000160000018000002000000

Non-CurrentAssets

CurrentAssets

Non-Current

Liabilities

CurrentLiabilities

20102009

• Graphic Analysis of Financial Position

Financial Highlights

• Non-current Assets– Non-current Assets consists of Property, plant &

equipment and Short-term Investments. Property, plant & equipment showed an increase from R693 684 to R1 046 619 yielding a net amount of R352 935. This increase is attributed to additions to fixed assets. Investments showed a decrease from R1 084 813 to R913 751 yielding a net amount of R171 062. This decrease is mostly attributed to the remuneration of 7 unfunded posts.

Financial Highlights

• Current Assets– Current Assets consists of Inventories, Trade-

& other receivables and Cash & cash equivalents which is the main contributor to current assets. Cash & cash equivalents decreased from R545 209 to R231 125. This decrease is attributed to capital that the Department of Arts & Culture deposited at the end of the year 2008/2009 for small capital works done at the Museum.

Financial Highlights

• Non-current Liabilities– Non-current liabilities consists of Provisions

which is for Post-employment benefit liability and increased from R49 092 to R53 246.

Financial Highlights

• Current Liabilities– Consists of Trade- & other payables and

Accruals. Current liabilities decreased from R619 874 to R429 250 in the year under review. Trade- & other payables which forms the larger part of current liabilities is mostly creditors which were paid in April 2010. Accruals is staff’s leave provision at the end of the year 2009/2010.

Audit Opinion

• The Auditor-General has issued a qualified opinion on Funding & Marketing income of the Institution for the financial year ended 31 March 2010 (p15 of annual report)

• Attention has also been drawn to the Institution to the following matters of emphasis, which while they do not modify his opinion, we take very seriously and have implemented steps to address them:

Audit Opinion• Qualification:

– Completeness of funding & marketing income could not be verified

• Matters of Emphasis:– Non-compliance with regulatory and reporting

requirements of PFMA and Treasury regulations– Usefulness of reported performance– Reliability of reported performance– Compliance with laws and regulations of PFMA and

Treasury regulations– Internal control: Leadership, Financial & performance

management and Governance

Completeness of funding & marketing income could not be

verified• Issue: The entity did not have an adequate system of

control over funding & marketing income on which the Auditor-General could rely on for the purpose of his audit, and there were no satisfactory alternative audit procedures that he could perform to obtain reasonable assurance that all funding & marketing income was properly recorded.

• Action: The ATM amended it’s income procedure which included funding & marketing with the Auditor-General’s assistance. This was then immediately implemented and personnel are regularly checked to ensure the procedure is adhered to.

Non-compliance with regulatory and reporting requirements of

PFMA and Treasury regulations• Issue:

– Lack of effective, efficient and transparent systems and internal controls regarding performance management (PFMA)

– The strategic plan of the entity did not include the indicators and/or targets for all of the entity’s objectives (Treasury Regulations)

– Inadequate quarterly reporting on predetermined objectives

• Action:– An procedure on the strategic planning were implemented.– Implementing the procedure as well as the help from a

consultant resulted in addressing the requirement of indicators and targets in the strategic plan. This is already implemented in the quarterly reports for 2010/2011 and also for the strategic plan 2011-2014

Usefulness of reported performance

• Issue:– Reported information not consistent with planned

objectives, indicators and targets– Changes to planned predetermined objectives not

approved

• Action:– Implementing the procedure as well as the help from

a consultant resulted in addressing the requirement of indicators and targets in the strategic plan. This is already implemented in the quarterly reports for 2010/2011 and also for the strategic plan 2011-2014

Reliability of reported performance

• Issue:– Reasons for major variances between planned and

actual reported targets were not supported by adequate and reliable corroborating evidence

• Action:– Implementing the procedure as well as the help from a

consultant resulted in addressing the requirement of adequate and reliable corroborating evidence to support the reasons for vaiances between planned and the actual reported targets. This is already implemented in the quarterly reports for 2010/2011

Compliance with laws & regulations of PFMA & Treasury regulations

• Issue:– Internal audit function was only effective for one month of the financial

year (approved on 26 February 2010)– The entity did not undertake a risk assessment to assess any risks of

fraud and has consequently not developed a fraud prevention plan– Quarterly reports, detailing information on its actual revenue and

expenditure up to the end of that quarter, as well as a projection of expected expenditure and revenue for the remainder of that financial year were not submitted within 30 days of the end of each quarter

• Action:– The internal audit plan and charter were presented to the audit

committee on previous meetings but were send back which caused a delay in the approval of the internal audit plan and charter.

– A risk assessment were done but focused more on catastrophic events than fraud risk and the prevention of fraud. An assessment were already done and a draft prevention plan were handed to the ATM.

– Implementing the procedure has resulted in the quarterly reports being submitted on time

Internal control: Leadership• Issue:

– The AG highlighted the fact that:• the procedure for income was not fully implemented,• there were no procedure for strategic planning,• the internal audit function was only fully operational for one month

and • no risk assessment were done for 2009/2010.

• Action:– The procedure for income were amended and is now fully

implemented, – a procedure for strategic planning was developed and

implemented, – the internal audit function is fully operational and – a risk assessment were already done.

Internal control: Financial & performance management

• Issue:– The AG highlighted that the entity

• did not keep proper records to verify the completeness of funding and marketing income and

• that there were no supporting documentation to support performance information.

• Action:– In amending the procedure of income, it was made sure that all

relevant staff will be fully aware that proper records should be kept to help the AG to verify the completeness of income.

– In implementing the procedure on strategic planning all relevant staff now know that supporting documents should be kept for audit purposes.

Internal control: Governance

• Issue:– The AG highlighted that:

• internal audit did not substantially fulfil its responsibilities and• No risk assessments were performed.

• Action:– The internal audit function is now fully operational and

fulfilling their responsibilities and– A risk assessment of financial risks and fraud were

performed for 2010/2011.

Some prospects for 2010/2011

• Infrastructure development– Construction of new Interpretation Centre– Ablution facilities for staff at Monument

• The attainment of a qualified audit report• Public programmes

– Launch of a Youth Club– Sunset evenings accompanied with music

• Maximum utilisation of human resource potential• Increase revenue by generating 25% of total

income

Thank you

www.taalmuseum.co.za / www.taalmonument.co.za