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accompanied. ROBBEN ISLAND MUSEUM. PRESENTATION – 2010/11 ANNUAL REPORT TO THE PORTFOLIO COMMITTEE ON ARTS AND CULTURE 12 OCTOBER 2011. INTRODUCTION. Robben Island Museum (RIM) was established 1997. - PowerPoint PPT Presentation

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  • ROBBEN ISLAND MUSEUMPRESENTATION 2010/11 ANNUAL REPORT TO THE PORTFOLIO COMMITTEE ON ARTS AND CULTURE 12 OCTOBER 2011*accompanied

  • INTRODUCTIONRobben Island Museum (RIM) was established 1997.It is a declared cultural institution in accordance with the Cultural Institutions Act, 119 of 1998.Opened its doors to the public on 01 January 1997. The museum is a based on a site with a rich layered history which goes back to the 17th century.The island was a prison for political and common-law prisoners from the 1960s to the early 1990s. Robben Island Museum was declared a World Heritage Site in December 1999. Consists of 5 main sites: Robben Island, Nelson Mandela Gateway, Mayibuye Archives, Jetty 1 and M-Berth.

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  • Cont...Sites around the Island include Murrays Bay Harbour, Old Faure Jetty, 5 different prisons, and a village that includes a school, village shop, clinic, post office, leper graveyards, gun emplacements, power station, the lighthouse, desalination plant, churches, landing strip, helicopter landing, desalination plant, transport yard, diesel and petrol tanks.RIM completed its first 5-year Integrated Conservation Management Plan (ICMP) in 2007. Currently preparing to review and compile a new ICMP for 2012 2016.*

  • LEGISLATIVE FRAMEWORKAs a unique MUSEUM and World Heritage Site, RIM is managed in accordance with the following laws: National Heritage Resources Act, 1999The Cultural Institutions Act, 1998The National Monuments Act, 1969The World Heritage Convention Act, 1999The Public Finance Management Act, 1999The National Environmental Management Act, 1998Cape Nature and Environmental Conservation Ordinance, 1974Conservation of Agriculture Resources Act, 1983Marine Living Resource Act, 1998Environment Conservation Act, 1989Sea-shore Act, 1935National Veld and Forest Fire Act, 1998National Water Act, 1998

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  • GOVERNANCEThe RIM Council exercises strategic oversight in accordance with the Cultural Institutions Act and the Public Finance Management Act.The Current Council, which consists of 13 members, was appointed in March 2010.Council appointed the following subcommittees: Human Resources Subcommittee; Heritage Subcommittee; Finance, Risk and Procurement Subcommittee; Marketing and Fundraising Subcommittee; Governance Subcommittee; Estates Subcommittee; and Education SubcommitteeAudit Committee was appointed in October 2009.Council appointed internal auditors from August 2010. RIM obtained an Unqualified Audit Report for the first time since 2004/5 financial year.

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  • GOVERNANCE ( cont.)Council prioritised stability and containment of costs.Put in place measures to effectively deal with negative media publicityStrengthened corporate governance by reviewing strategies, policies and contracts. Prioritised executive appointments of the Chief Executive Officer and Chief Financial Officer. Prepared the museum for a visit by UNESCOs World Heritage Committee.*

  • MANAGEMENTCouncil appointed the CEO who started in November 2010.The CFO started in January 2011. Other management appointments: Senior Manager: Ferry and Cargo Operations, December 2010; Company Secretary, February 2011; Senior Manager: Human Resources, July 2011; Unit Manager: Supply Chain Management, May 2011.*

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  • ORGANIZATIONAL STRUCTURERIM personnel stands at 222.More than 90 employees were absorbed during the 2010/11 financial year. RIMs 7 Business Units are: Executive Office, Human Resources, Marketing, Ferry and Cargo, Tourism Services, Heritage and Natural Environment Conservation, Public Heritage Education.*

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  • CHALLENGESLong history of poor financial managementNo stable governance and executive leadership during 2008/2009 and 2009/2010.Huge staff expenditure as a result of staff absorption.Business model not designed for productivityNo fundraising effort (programmes not packaged so as to attract external funding)Inadequate attention being given on the core businessNo alignment between the Strategy and StructureHistory of having a budget that was not synchronised with the strategyLegacy of weak control environment*

  • CHALLENGES ( cont...)Lack of requisite skills in core service delivery units.Absence of a culture of performance against strategic objectives.No organisational review or restructuring since the museums establishmentAllocation of resources to activities which are not the museums core mandate.Unfunded mandates: School, clinic, post office and municipal services.Inadequate protection of RIMs intellectual propertyAccess to the island mainly by boat. Control of natural environment and threat of poaching (protection of 1 nautical mile).Lack of competent Built Environment and Facilities Maintenance Unit.Challenges in the relationship with Public Works in relation to maintenance of the island and provision of municipal services.

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  • 2010/2011 ANNUAL REPORTThis is the first annual report of the current Council.It covers a financial year during there was no executive leadership for the first seven months.Financial management was outsourced to Pricewaterhousecoopers (PwC) until end of January 2011.No monitoring of performance against predetermined objectives.A weak control environment prevailed and was worsened by the absence of a supply chain management unit. Other critical business units were occupied by acting senior managers. Company culture not conducive to fiscal discipline.*

  • Cont....Reports of the Chairperson and CEO highlighted achievements and areas requiring attentionCEOs reported highlighted challenges with regard to funding, performance reporting, maintenance of the island and compliance with conventions which govern World Heritage Sites .Performance Reporting has been given special attention and RIM management is working closely with Internal Auditors to address this challenge. *

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  • ACTION PLANS TO ADDRESS CHALLENGES Review of the strategic planning process and configuration of departmentsAllocation of resources to favour of core service delivery unitsInterrogation of strategic objectives and performance reportingHighlighting Human Resources as a key strategic risk and embarking on efforts to use available personnel to address skills shortage.Prioritisation of Risk Management and Internal AuditSetting up of Monitoring and Evaluation Unit in the CFOs OfficeStrengthening of the Supply Chain Unit and revision of Delegations of Authority in order to avoid a recurrence of Irregular ExpenditureReview of policies and proceduresReview of strategic priorities so as to realise the museums potential to generate revenue.

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  • ACTION PLANS TO ADDRESS CHALLENGES (cont...)Review of existing contracts, service level agreements with service providers and partners such as the Department of Public Works.Formalising partnerships with SAHRA, the City of Cape Towns Fire and Emergency Services, the Department of Agriculture, Fisheries and Forestry, and the South African Police ServicesEngaging National Treasury on establishment of Public Private Partnerships on those functions which the museum has no capacity to deliver.Engaging DAC on the establishment of a Project Management Unit to manage the heritage built environment and estates of the island.Appointment of a Facilities Management Contract by the Department of Arts and Culture.Engaging the museums trade union on organisational restructuring. Putting in place a plan to address problems identified in the 2010/2011 Annual Report Prioritisation of the Visitor Management Plan (narrative, interpretation and diversification of tour options to enhance visitor experience)Stabilisation of Ferry Operations so as to address negative publicity and turn attention to RIMs core business.

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  • SUMMARY OF COMPARATIVE INCOME AND EXPENDITURE*

    DESCRIPTION2010/11R 0002009/10R 000% DIFFNOTEOperating Income117,12897,174AOther Income3,0942,319TOTAL INCOME120,22299,49321%

    Administrative Expenditure(12,579)(10,575)Operating Expenditure(109,260)(78,909)BTOTAL EXPENDITURE(121,839)(89,484)36%SURPLUS/(DEFICIT)(1,617)10,009

  • SUMMARY OF COMPERATIVE INCOME AND EXPENDITUREA: Robben Island Museum has two (2) main sources of Income(i.e. Ticket Sales and Subsidy from Government) * Ticket Sales increased by 35% from R 37m in 2010 financial year to just over R 50m during the 2010/11 financial year. * The subsidy from Department of Arts and Culture increased by 6% for the same period.

    B: Operating Expenditure increased by 38% for the period under consideration. This is mainly attributed to significant increases in expenditure incurred with regard to Boat Repair Expenditure, Boat Hire Expenditure and Compensation of Employees.

    RIM had to also incur R 1,7m in the last quarter of the 2010/11 financial year renovating Houses located on the tourists bus routes in preparation of the UNESCO mission.

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  • HISTORICAL PERSPECTIVE OF RIMs AUDIT OUTCOMES*

    2004/052005/062006/072007/082008/092009/102010/11

    UNQUALIFIEDQUALIFIEDQUALIFIEDDISCLAIMERQUALIFIEDQUALIFIEDUNQUALIFIED

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  • MATERIAL AUDIT FINDINGS FOR THE 2010/11 FINANCIAL YEAR1. Irregular Expenditure of R 27,7m (2010: R 8,8m) was reported;2. Restatement of Corresponding figures;3. Material Losses;4. Inadequate systems of recording performance information.

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  • MATERIAL AUDIT FINDINGS FOR THE 2010/11 FINANCIAL YEAR( Cont...)1.1 Irregular ExpenditureThese arose mainly as a result of inappropriate procurement practices. RIM did not have suitably qualified and experience officials in its SCM: Unit who could enforce compliance.

    Corrective Measures that have since been put in place SCM Unit Manager was appointed during the first quarter of

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