NELSON MANDELA ANNUAL REPORT 2011/2012 TABLE OF … · The Nelson Mandela Museum is located in the authentic landscape of Mr Nelson Mandela’s childhood and retirement. It provides

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NELSON MANDELA ANNUAL REPORT 2011/2012

TABLE OF CONTENTS

PART 1: GENERAL INFORMATION................................ 51.1 VIsION, MIssION ANd VALuEs...................................................................... 7

1.2 OVERVIEw OF ThE MusEuM........................................................................ 8

1.3 REPORT OF ThE AccOuNTING AuThORITy................................................. 9

1.4 chIEF ExEcuTIVE OFFIcER’s REPORT......................................................... 10

PART 2: PROGRAMME OVERVIEw ANd AcTIVITIEs... 11PROGRAMME 1: GOVERNANcE........................................................................... 13

PROGRAMME 2: huMAN REsOuRcEs................................................................ 14

PROGRAMME 3: MARKETING ANd cOMMuNIcATIONs...................................... 20

PROGRAMME 4: hERITAGE................................................................................. 23

PART 3: PROGRAMME PERFORMANcE REPORT....... 273.1 INTROducTION............................................................................................. 29

3.2 PERFORMANcE MATRIx................................................................................ 30

PART 4: ANNuAL FINANcIAL sTATEMENTs.............. 474.1 OVERVIEw...................................................................................................... 49

4.2 AccOuNTING AuThORITy REPORT.............................................................. 50

4.3 REPORT OF ThE AudIT cOMMITTEE............................................................ 51

4.4 MANAGEMENT REPORT................................................................................ 53

4.5 REPORT OF ThE AudITOR GENERAL............................................................ 55

4.6 sTATEMENT OF FINANcIAL POsITION.......................................................... 59

4.7 sTATEMENT OF FINANcIAL PERFORMANcE................................................ 60

4.8 sTATEMENT OF chANGEs IN NET AssETs.................................................. 61

4.9 cAsh FLOw sTATEMENT.............................................................................. 62

4.10 NOTEs TO ThE FINANcIAL sTATEMENTs................................................... 63

4.11 APPENdIx 1: dETAILEd sTATEMENT OF FINANcIAL PERFORMANcE......... 82

4.12 ANNExuRE 1: sTATEMENT OF GIFTs, dONATIONs ANd sPONsORshIPs.. 84

4.13 ANNExuRE 2: sTATEMENT OF LOANs........................................................ 85

4.14 ANNExuRE 3: sTATEMENT OF uNAuThORIsEd,

IRREGuLAR ExPENdITuRE, wAsTEFuL ANd FRuITLEss ExPENdITuRE... 86

4.15 ANNExuRE 4: sENIOR MANAGEMENT EMOLuMENTs................................ 88

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PART 1: GENERAL INFORMATION1.1. VIsION, MIssION ANd VALuEs

1.1.1. VIsION

To be the leading museum that represents and interprets the life story and values of Nelson Rolihlahla Mandela, a product and champion of ubuntu.

1.1.2. MIssION

The mission of the Nelson Mandela Museum is to• Developthemuseumasasiteforthecollectionofartefacts,information,knowledgeandlifeexperiencesof Nelson Rolihlahla Mandela and a centre for curatorship that promotes a critical understanding of his life, memory and legacy as one of the greatest leaders of the 21st century.• Promotethemuseumasacentreforculturallifeintheforefrontoftherestorationofubuntuasapioneering philosophy and a force for the transformation of South African society.• BuildtheNelsonMandelalegacyasavehicleforsocialchange,nationbuildingandthepursuitoftheidealsof human solidarity through educational and advocacy programs• Promotesustainablecommunitydevelopmentandselfupliftmentthroughpartnershipswiththecommunities (especiallyQunu,Mvezo,MqekezweniMthatha),educationalinstitutions,thegovernment,theprivatesectorand otherkeystakeholdersinsociety

1.1.3. VALuEs Thefollowingvalueswillinspiretheleadershipandstaffofthemuseumandwillbecomeanorganicpartoftheiconicposturethemuseumwillassumeasacentreforculturallife.•Ubuntu•Stewardshipandserviceexcellence•Integrityandrespect•Developmentandlearning

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1.2 OVERVIEw OF ThE MusEuM

The Nelson Mandela Museum is located in the authentic landscape of Mr Nelson Mandela’s childhood and retirement. It providesanopportunity forpeople to retrace the footprintsof agreatmanat “the source”. Inmanyways itrepresentsthenation’slegacyasnarratedbyMrMandelainhisownautobiographyandinnumerousresearchandsocialnarrativesrelatedtohislife.MrRolihlahlaNelsonMandela–AhDalibhungaisthesonofChiefHenryGadlaMpakanyiswaandNosekeniMaMpemvuFaniinMvezo.HespenthischildhooddaysinQunuandhisyouthdaysinMqekezweni.Whenhestartedschool,adjacenttothesitewhichiscurrenthometotheQunucampusoftheNelsonMandelaMuseumhewasgiventhenameNelson.2010-2011financialyearmarkstheconclusionofthefirstdecadeofthemuseum,italsomarkstheyearinwhichthemuseumandthewholecountrywereparticipantsinthefirstworldcupheldonAfricansoil.ThemuseumseizedthemomentandearnedagrantfromtheDepartmentofArtsandCulture2010legacycommitteetodevelopandmultiplyatravellingexhibitiononNelsonMandela–AlbertLuthuliinConversationwhichwasputinanumberofsitesacrossSouthAfrica.Thisperiodalsosawthemuseumincreaseitsfootprintsubstantiallymakingitspresenceinsomeoftheairports,majorintersections,anddiverseprovincesinstrategicpointslikeRobbenIslandMuseum,BloemfonteinNationalMuseum,Rustenburg,NelsonMandelaMetro2010InformationCentre.

ThemuseumwasopenedonFebruary11,2000byformerPresidentMandelaandthethenMinisterofArtsandCulture,DrNgubane.TheopeningtooktheformofsodturningsinMvezoandQunu,andopeningofanexhibitionintheBhungaBuilding.Theopeningwasaculminationofextensiveconsultationsandthepainstakinglythoroughworkofasteeringcommitteesetuptofacilitatetheprocessofanationalmuseumestablishment.

Themuseumstrategicplanfortheperiodunderreviewgivesspecialemphasison:1.renewalofofferingsasseeninnewexhibitionsandprogrammes.2. increasing the footprint as seen in more provinces and regions reached.3. building of capacity as seen in more training, albeit there are still serious challenges in sourcing adequate funds tofillallthepositions.4.strengtheningofinfrastructureasseeninapprovalofthefundingfortheBhungaupgradeandmajormaintenanceon Qunu. The museum continued to deliver an improvement in its programming as seen in improved visitor feedback,and improvements in itsgovernanceasseen in improvingaudit reports.Themuseum is locatednotonly in the authentic landscape of his childhood, but also in a landscape that he absolutely loves and reveals the valuesof:Ubuntu;integrity;inspiration;listening;learning;developmentandservice.Ifexecutedwelltheworkofthemuseumwillinspirethepresentandfuturegenerationstostayintouchwiththeirpast,toactaccordingtoinformedconsciences.TheMandelaMuseuminvitesalltolearnfromandenjoythememorableexperiencesinthelandscapethatisamajorpartofthenation’sheritage.

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1.3 REPORT OF ThE AccOuNTING AuThORITy

On behalf of the NelsonMandelaMuseumCouncil, I am pleased to present theMuseums’ Performance andFinancialReportfor2011/12.Thereportsetsforththemuseum’sgoalsandobjectivesandhighlightsourrelatedperformanceandaccomplishments,programmatic,operational,andfinancialforthepastyear.Webuiltuponthesignificantaccomplishmentsofthepreviousthreeyears,whichincludedstrengtheningouraccountingandfinancialsystemsandclarifyingthemuseum’smissionandperformancegoals.Thisallowedthemuseumtoensurethatitismoreintegrated.Italsohelpedspurinnovativeapproachesthroughcreativecommunitypartnershipsandresearchthat addresses education and economic challenges.

Thefinancialyear,2011/12wasthefirstfullyearofconsolidationofdisparatemuseumrelateddatacollection.Inthisregardthemuseumismakingprogressinensuringthatithascomprehensivedata,bothforourheritageassetsandforothermuseumassets.Thefocusofthemuseumintheareaofheritageassetshasallowedusthroughresearchtofurtherunderstandourcollectionbetterthanweeverdidinthepreviousyears.Thisisanareathatweaimtokeepimproving on.

TheupgradingoftheBhungabuilding,oneoftheexcitingprojectsthatisinprogress,willallowthemuseummorespacefordisplays.Throughthis,weaimtotransformandexpandthedisplaysandusethisopportunitytoincreaseandwidentherangeofpeoplevisitingthemuseum.TheNelsonMandelaMuseum’soutstandingcollectionswillthenhaveahometobeproudof.Asaresultofthis,theCouncilischallengedbythesedevelopmentstoembarkonaconcertedefforttofund-raisefortheexhibitions,displaysandoutreachworktoensurethatthevisionoftheNelsonMandelaMuseumisspreadandunderstoodthroughoutSouthAfricaandtheworld.

As themuseum’sactivitiesareset toexpand in readiness for thenewdevelopment, theboardwould facilitatea tightly-costed business plan. This will include costs for the museum’s collections, acquisitions, exhibitions,publications,educationalworkandconservationofthecollections.TheCouncilwouldalsofacilitatesessionstoempowermanagement,specificallytheexecutivemanagementteamtoleadtheorganisationintogreaterefficiency.Inadditiontothis, thestrengtheningof themanagementteamwillgivespacetotheseniormanagementof theinstitution,especiallytheCEOandtheseniorMarketingmanager,tofocusonthetaskofbroadeningthefootprintsof theNelsonMandelaMuseum, both inside our country’s borders and beyond. TheCouncil togetherwith itsmanagementwillconcentrateonfurther improvingonthedeliveryofthecorebusinessofmuseumsasoutlinedinourstrategicplan.However,keyelementsofthisstrategywerealreadybeingworkedthroughinthelastyearsthroughfourbroadthemes:• increasingpublicengagement;• developingphysicalspacesforvisitors,collectionsandstaff;• improvingorganisationaleffectiveness;and• achievingfinancialsustainability.

Theannouncementthatthemuseumwastoundergoamajorrefurbishmentschemewastheculminationofmuchhardworkandadvocacyandthebeginningofasignificantprojectmanagementanddeliverychallenges.WearegratefultotheDepartmentofPublicworksfortheirsupportandourparentdepartment,theDepartmentofArtsandCultureforalwaysensuringthatitsolicitsfundsforcapitalprojectsonourbehalf.

Lastly,theessentialcharacteristicsofgoodgovernanceare:communication,accountabilityandtransparency.ThisAnnualReportisonecontributiontothemuseums’commitmenttotellingpeopleaboutitsworkanddemonstratesitsaccountabilityinfurtheranceofthelegacyofNelsonMandela.Definingthelegacyofamanwhoisrenownedthroughout the world and whose life and work embodies an enduring spirit of hope is complex and almostinsurmountable.Themuseumneedstocontinuetoreflectonitsworkandimprovethewaysinwhichittacklesitstasksandmakessurethatproblemsandchallengesareresearchedandunderstoodsothatdecisionsaremadeon thebestpossible informationandevidenceandnot tobeafraid to trynewwaysofdoing things,andtobeconstrained only by the limits of our imagination.

Theresponsibilitythatgoeswiththemuseummandateisonethatwedonottakelightly.Wepledgeourselvestoconfrontinstitutionalchallengeswithintegrityinawaythathonoursthemantowhomthismuseumisdedicated.Iampleasedtoaffirmthattheperformanceandfinancialdatacontainedinthisreportis,tothebestofmyknowledge,reliableandcompleteandthatitisatruereflectionoftheactivitiescarriedoutbythemuseumduringthefinancialyearunderreview.

........................................PumlaMadibaChairpersonNelson Mandela Museum

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1.4 chIEF ExEcuTIVE OFFIcER’s REPORT

WhentheNelsonMandelaMuseumCounciladoptedthevision,“tobetheleadingmuseumthatrepresentsandinterpretsthelifestoryandvaluesofNelsonRolihlahlaMandela,aproductandchampionofUbuntu”itaspiredtoseemanagementandstaffnotonlyemulatingthesacrificesthatPresidentMandelamadebutalsoensuringthatthemuseumbecameaninstitutionwhicheverypersonwouldvisitandlearnfromthelifeofNelsonMandela.

For any institution that is associatedwith the name of NelsonMandela, such an institution is expected to beexemplaryinbothconductandcommitmenttothetransformationoftheSouthAfricansociety.Asamuseum,wederive inspiration from this commitment through our activities that are outlined in our strategic plans and other similar documents.

In this vision andmission of becoming a “site for the collection of artefacts, information, knowledge” and the“promotionofsustainablecommunitydevelopmentandselfdevelopmentthroughpartnershipswithcommunities”weareguidedbyahighlycompetentmuseumCouncilmadeupof individualswithdiverseskills,expertiseandexperiencesfromacrossacademicdisciplines.

Forthecurrentreportingyear,theCouncilhadmandatedthemuseumstaffandmanagementtoachievethefollowingobjectives:• Buildingandimprovingthequalityofthecontentofthemuseumtocreatefertilegroundforresearch,education and recreation• Upgradingthephysicalinfrastructuretoensurethesafetyandconservationoftheartifactsandtheimmovable property of the NMM• Strengtheninggovernanceandaccountabilityoftheinstitution

Inordertoachievethisbroadmandate,themuseumdividedtheseintofourprogrammesthatwouldensurethateachofthemandatesisconvertedintocleardeliverables.Thefocusareaswereasfollows:• Administration-withaclearfocusonourhumanresourcestrategy,informationcommunicationtechnology, compliancewithsupplychainmanagementandasecuredinstitution.• Marketing-toensurethatthemuseummessagespreadswidelywithinandbeyondourbordersandthatour toursareprofessionallyconductedandareabletoattractawidevarietyofpeople• HeritageServices-toensurethatmuseumartifactsareproperlyconservedandthatthereissufficient informationoneachandeveryobjectinourcollectionwhilealsodevelopingdynamiceducationmaterial• Enterprise-thattheNelsonMandelaMuseumYouthandHeritageCentreinQunuisutilisedtoitsmaximum capacity and that it is professionally managed.

Itwas thenclear to us that the achievementof theseobjectivesdependson soundandeffectivegovernance.Consequently,ourprogrammesandactivitiesweregearedtowardsachievingthesesetgoalsasreflectedinthisannualreport.Someofthehighlightsofthisreportingyearinallouractivitiesareasfollows:• Anunqualifiedauditreport,althoughtherearemanyareasinwhichwemuststillimproveasaninstitution;• Bhungaupgradewhichisstillintheprocessofcompletion;• Travellingexhibitionstoatleast8provincesoftheRepublicofSouthAfrica;• Anincreaseinthenumberofpositivemediareports;• ConsolidationofinstitutionalstakeholdersandpartnershipswithHousesofTraditionalLeadership,schools, churchesandotherinstitutionsassociatedwithNelsonMandelasuchastheNelsonMandelaCentreof MemoryattheNelsonMandelaFoundation,VictorVersterprison,parliamentofRSA,heritageandcultural institutions, etc.

Againinthisreportingyearthemuseumcontinuedtostrengthenpartnershipsinareaswhereitisstrongandthoseinwhichitstillneedstoimproveon.Thissummaryishoweveranindicatoroftheroadthathasbeentravelledbythemuseumintheyearunderreviewbutasitwouldbeobserved,italsoindicatesourlimitationsasaninstitutionandareasinwhichweneedtoimprove.Asayounginstitutionthatis12yearsoldwithlimitedbudgetandstaffcompliment,wearedeterminedtocontinuallyimproveonbothouradministrationandprogrammeactivities.

Lastly,thefinancialstateofanyinstitutionandtheefficientmanagementofpublicfundsisoneofthedeterminingindicators of an improving and efficient institution. In this regard, as in the previous year, theNelsonMandelaMuseumhasagainreceivedanunqualifiedauditreport.Weowethistoourcogentlycoordinatedsystems,whichmust continue to improve in order to ensure that our report does not have any matters of emphasis in future.

..........................NoelL.ZSolaniActingCEONelson Mandela Museum

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PART 2: PROGRAMME OVERVIEW AND ACTIVITIES

2.1. PROGRAMME 1: GOVERNANcE

TheNelsonMandelaMuseumisaNationalPublicEntitywhichisgovernedbytheMinisterasanExecutiveAuthority,aCouncilasanAccountingAuthority,aChiefExecutiveOfficerasanAccountingOfficerwiththesupportofaChiefFinancialOfficer.TheCouncilispart-timeChiefExecutiveandtheChiefFinancialOfficersengagetheirrespectiveadministrativearmstosupporttheCouncil in its legislatedduties. AstheCouncil ispart-time, ithasdelegatedthebulkofitsresponsibilitiestotheadministrativewingofthemuseumandperformsanoversightroletoensureeffectiveriskmanagement,generalco-ordinationandaccountability.

ImportanthighlightsofthisprogrammeincludetheappointmentoftheMuseumCouncil,addressingofGovernanceissues,andstrengtheningofstakeholderrelations.

SoonafteritsestablishmentinApril2011,theCouncilestablishedcommittees,namely:

1. AuditandRiskCommittee;2. FinanceCommittee;3. InstitutionalDevelopmentCommittee;4. ContentCommittee;aswellasappointingan5. InternalAuditorand6. A Travel Agent

TheNelsonMandelaMuseum,particularlytheCouncilfacedadifficulttask.Firstly,itneededtostudythepoliciesandevaluatealltheprogrammesofthepreviousyearinwhichtherewasalacuna–noCouncil.Secondly,ithadtoreviewtheStrategicPlanoftheyearunderreview.Thirdly,itreviewedthevisionandmissionofthemuseumwhileitmonitoredandevaluatedtheactivitiesofthemuseum.Althoughthisisworkinprogress,theCouncilisconfidentthat the museum is going from strength to strength in serving the local, provincial, national and international clientele.

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2.2. PROGRAMME 2: huMAN REsOuRcEs 1. why hR dEPARTMENT:TheHRDepartmentistheheartoftheInstitutionandavitalorganoftheMuseum.Itsaimistoensureclearundilutedhumancapitalmanagementof theMuseumand itsstakeholdersaswell as tocontribute towards themuseumdevelopmentandeffectivedeploymentofstafftaskedtoensurethattheMuseumdeliversonitsmandatethroughretention, and attraction of human capital. Furthermore, another task of theHRDepartment is to balance andharmonize the labour relations of the Organisation.NMMbeing a knowledge base and living organisation, its human capital is critically important in ensuring thesuccess of the museum initiatives.ThefollowingarethemajorhighlightsoftheHRDepartmentforthe2011/2012financialyear:• Training&Development• Recruitmentandselection• Policyreviews• Organisationaldevelopment• HandlingResignationsandTerminations• HRAlignment• LabourRelationsMatters• PMS• Wellnessprogrammes• EmploymentEquity• Leaveschedule

2. TRAINING & dEVELOPMENTThere has been good progress in the training and development of the people in general. The development and changemindsetaspartoftrainingisofparamountimportanceintheHRfunctionandneedstocontinueasapriorityoftheOrganisation.ThegrowingneedofTechnicalskillsandcapacitybuildingisprevailingfromtimetotime.Thiscalls for prompt action.FinanceofficialswerealsodevelopedinareasthatwereraisedbytheAuditorGeneral(e.g.SupplyChainManagement,AssetsManagement,etc.).

3. REcRuITMENT & sELEcTIONTheorganisationhasadvertisedonepositionintheyearunderreview,whichis:• SecurityfacilitiesandlogisticsspecialistThefillingofthispositionwassuccessful.

Positionswerefilledasfollows:Department Position Incumbent Date started

QunuYouthHeritageCentre Admin Officer S.Mazwana 29-03-2011

Internshipprogramme:Department Position Incumbent Date started

Marketing TempTourGuide U.Songca 01-04-2011

Marketing TourGuidingIntern N. Ncapai 01-04-2011

Marketing TourGuidingIntern Z.Gamakhulu 01-04-2011

Programme Temp Researcher Sinazo Mtshemla Feb2011

Programme Temp Researcher IsabelGwaze March2011

4. ORGANIsATIONAL dEVELOPMENTInternsareallplacedunderDepartmentsaccordingtotheirexpertiseandfieldofstudieswithaclosementorshipoftheHeadsofDepartments,e.g.Marketing,ProgramsandQunuHeritageCentre.Reporting lines have been addressed in order to monitor the performance and personnel development areas.Thereisachallengeinthefillingofthevacantpositionsintheorganogramduetobudgetconstraintsandthisiscreatingcapacitygapandiscausingmulti-taskingincertainareas.

5. REsIGNATIONs ANd TERMINATIONsDuringtheyearunder review,oneresignationwasreceived fromtheSecurityFacilitiesLogisticsSpecialist; thisresignationwasduetotheincumbentgettingabetterofferelsewhereandwasalsonecessitatedbytheincumbent’sresolvetoseepersonalgrowth.

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6. huMAN REsOuRcEs ALIGNMENTTheMuseumhasengagedaconsultanttodraftaRemunerationandRetentionPolicy.Thealignmentofmuseumstaffsalarieswithapropergradingsystemwasconducted.TwogradingsystemswererecommendedtoCOUNCIL.Thesewere:EquateSystemandPattersonGradingSystem.TheexercisewasapprovedbymuseumcouncilandthePattersonGradingSystemwasfoundtobesuitableforMuseumemployees.Theimplementationthereofhasbeen put on hold until there are enough funds to align salaries of all museum employees. This matter requires urgent attention.

7. LABOuR RELATIONs MATTERs TherehasbeenastablelabourrelationsenvironmentwithintheOrganisation;therearetwocaretakershopstewardsdeployedbyNEHAWUwithintheInstitution.DISCIPLINARYCASESTherearenodisciplinarycasestobereportedforthefinancialyearunderreview.CCMAArisingfromtheabove,nocasewenttoCCMAduringthefinancialyearunderreview.GRIEVANCESStaff meetings are held on a monthly basis and the Agenda comes from both the employees and management. Managementmeetingsareconvenedeverysecondweekof themonth.Thesemeetingsassist the Institution inperformancemonitoringandalsoserveasa360degreefeedbackmechanism.

8. PERFORMANcE MANAGEMENT sysTEMThe performance management system policy has been approved by museum council. Each manager has aperformanceagreementwithclearKeyPerformanceAreas(KPAs)linkedtotheStrategy.PerformancediscussionsaredonetwiceayearonasixmonthsbasisbytheCEOandHODswiththeirdirectreports.QuarterlyreportsaresubmittedbyeachmanagertotheCEO’sofficetomonitortheperformanceoftheindividualandoftheInstitution’sannualtargets.TheCouncilassessestheCEO’sPerformance.

9. huMAN REsOuRcEs POLIcy REVIEwTheHRpoliciesmatrixwassenttothecouncilinMarch2010/2011forrevieworfornotingasfollows:• LeavePolicy–noted-2011• GrievanceandDisciplinaryProcedure–noted-2011• CodeofGoodConduct–noted-2011• EmployeeStudyAid–noted-2011• Cellphonepolicy–noted-2011• RecruitmentandSelectionpolicy–noted-2011NoreviewoftheHRPoliciestookplaceduringtheyearunderreview.

10. ANALysIs OF dEMOGRAPhIcs OF ThE INsTITuTIONCategories a / male a / female c / male c / female w / male w / female total

1.CEO 1

2.CFO 1

3.HRM 1

4. Security Spe-cialist

5.ExecutiveAs-sistanttoCEO.

1

6. Snr Manager Programs

1

7. Snr Manager Marketing

1

8.Accountant 1

9.Educationmaterial develop-

ment manager

1

10.HeritageCentreManager

11.Heritagetoursco-ordi-

nator

1

12.FinanceSecretary

1

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Categories a / male a / female c / male c / female w / male w / female total

13.AdMINOf-ficer

1

14. Admin Officer – Qunu

1

15.CommunityLiaisonOfficer

1

16.HeritageConservator

1

17.Communica-tion and Media

Officer

1

18.Design,GraphicsandWebsiteOfficer

1

19.Caretaker 1

20.GenaralAs-sistant

1

21.EducationOutreach Officer

1 1

22.FinancialController

1

23.TourGuideInterns

2 1

24 Temp Researcherx2

2

25.ExhibitionsAssistant

Total 1

14 14 =28

11. sTAFF wELLNEssDuringtheyearunderreviewthereistheBhungaupgradeproject.ThemoveofstafffromBhungabuildingtoQunucreatedalotofstressamongststaffduetothefactthattheyhadtotravel66kmeverydaytowork.NMMprovidedfreetransportforemployeestoandfromwork.Thechangeofworkingconditionsfromnormalofficestoparkhomesandnetworkproblemswereamongstthechallengesfacedbyemplyees.

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13. schEduLE OF huMAN REsOuRcEs cOsTITEM COST

Salaries 7284122

Staffwelfare 5100

Recruitment 44058

Benefits 349052

14. sTAFF sKILLs dEVELOPMENTPOSITION Number of trained staff COURSE DETAILS

Museum staff 12 Customercare

CEO 1 King111

Financialcontroller 2 scm

ExecutiveAssistant 1 GOVERNANCE

Communityliasonofficer 1 BA

Graphicdesigner 1 BA

CARETAKER&ASSISTANTSFL 2 NOSA

FinanceAdminofficer 1 HonoursinB.Comaccounting

Secretary in finance 1 Advanced payroll course.

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PROGRAMME 3: MARKETING ANd cOMMuNIcATIONs

TheMarketingDepartmentisresponsibleforattracting,welcoming,retaining,andincreasingvisitorstothemuseumfromaroundtheworldusingdiversemarketingtoolsandplatforms.Itbuildsandmaintainsrelationswithpartners,stakeholdersandthemedia.

1. MEdIA cOORdINATION ANd PuBLIcITyMediaCoordinationhasbeenoneofthetacticalapproachestobuildrelationswithlocal,nationalandinternationalmedia.Thishasbeenmadepossiblebythetimelyavailabilityoftherelevantspokespersonofthemuseum.Writinganddisseminationofpressreleases,storypitching,groupandindividualjournalistsmediatours,filmcrewandphotoshootcoordinationandaresponsetomediaqueriesledtopositiverelationswithmediaandminimisednegativepublicity.ThemuseumreachedouttheentirecontinentthroughWorldWideWebpublicity.

2. BROAdcAsT MEdIATheinterestsshownbybroadcastmediainconveyingthestoryofNelsonMandelathroughthemuseumincreasedthemuseumvisitationphysicallyandvirtually.ThisplacedQunuasoneofthemostattractivespacesintheworld,firedupbyitsamazingrichcontentwhichincludesexhibitions,vastopenairheritage,unspoiltenvironment,soundsand legends, authentic information about the life and times of Nelson Mandela, topography and unpolluted air, as wellasworldclassaccommodation,conferencingandsecureparking.

Growing interest fromfreelancers,filmcrewsandTelevisionproducers tocovermuseumprogramsenabled themuseum to feature prominently in diversemedia networkswhich includeSABCTelevision andRadio,ChineseTelevision,CCTV4,CBSNEWS,TopBilling,CanadaNews,andotherlocalcommunityradiostationssuchasRadioPulpit,VukaniCommunityRadio,UCR,KhanyaCommunityRadio,AlfredNzoCommunityRadioand InkonjaneCommunityRadio.

3. PRINT MEdIAThemuseumreachedmillionsofpeoplearoundtheglobe.Itsprintmediacoveragereachedthehighestpointsinceitsinception.Themuseumfeaturedinmajornationalandinternationalnewspapersandmagazines,withhighestreadership,suchasTheSundayTimes,Citizen,DailySun,DailyDispatch,SowetanGautengandKZN,TheLondonGuardian,Huisgenoot,YouMagazine,DieBurger,Newage,StarNewspaper,IlangaLangeSonto,Isolezwe,CapeTimes,NamibianSun,SAPA,Reuters,afpnewsagencies-etc.AFPcoverstheworldwithacombined5,000storiesadayinEnglish,French,Spanish,German,PortugueseandArabic.OtherlanguagesareofferedthroughpartneragenciesincludingChineseandJapanese,andmanyotherinternationalnewsagencies.

In2011,themuseumbrochurewasupdated;_anewsletterandtwosetsofminiaturebrochuresweredevelopedtoreachourtargetdemographicofyoungfamiliesmoreeffectively.Theminiaturebrochuresweredistributedbylearnersaroundthreemajorcities;_CapeTown,BloemfonteinandMthathabylearnerswhoparticipatedinmuseumprogrammes.Thepurposeof thebrochure is todrivepotentialvisitorstotheNelsonMandelawebsite formoreinformationonhowtovisitthemuseums.

BrochureManagement,acompanythatdistributesbrochureswascontractedforbrochuredistributiononstrategicareas.This,too,provedtobeastrategicmovewhichpaidoff.

4. dIGITAL MEdIAEngagingwithonlinesocialspacesbrokebarriersofcommunicationandimprovedthemuseum’saccessibilitytoyoungpeoplearoundtheglobe.Digitalcampaignsarerunregularlyonthemuseumfacebook.TheNelsonMandelaMuseumLaunched itsownyouTubechannel in2010andscreens short videosabout exhibitionsandmuseumeventsanduploadsthemonthemuseumyouTubechannel.Uploadsforthereportingperiodinclude:_ArchbishopTutu’sbirthdaywishtoMadibavideo=61.8%,MuseumcelebratesMandelaDay=21,8%,Mandela&LuthuliExhibitionlaunch=10,9%,andOkuhleMndendepraisesinging=3,6%Twitterfollowinghasgrowntremendouslywithmorethan737followers.Thewebsiteisupdatedregularlytofeatureprominentevents,andtogetherwiththemuseumsocialmediadrewbigfiguresreaching5,481visits.

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5. hIGhLIGhTs OF wORLd wIdE wEBsITE PROMOTING NELsON MANdELA MusEuMwww.iafrica.safarinow.com/destinations/mthatha - with over a million unique users, www.iol.co.za IndependentOnline’ssuiteofwebsitescurrentlyrecordover22millionpageimpressions,withover1.6millionuniquereaderspermonth–bothlocallyandinternationally.OtheronlinechannelsincludethatoftheCapeTimes,SinChewDaily,andnews24,attractingmillionsofpeoplebasedonchannelsfollowing.TheNelsonMandelaMuseumiscommittedtocreatingastrongeronlinepresencethroughonlinemarketing.Thisgoalhasbeenachievedinthecurrentfinancialyearalthoughthereisstillroomforimprovement.

NelsonMandelaMuseumYouthAmbassadorProgrammeThisprogrammewaslaunchedinMarch2012andaimstoincreasethemarketshareofNelsonMandelaMuseumnetworkbydevelopingacompetitiveandcollaborativeapproachtoaudiencedevelopmentinordertostrengthenandexpandtheextent towhichschoolsanduniversitiesuseNelsonMandelaMuseumasculturaland learningresource.Thisprogrammehasgrowninleapsandbounds.

AdvertisingDespiteadvertisingbudgetconstraintsinthisreportingperiod,advertswereplacedinvariousnationalandregionalmedianetworks,eachtargetingacertaincomponentofthemuseumofferings.TheyincludeMojaHeritageCollection,EasternCapeBusinessandAATravelMagazine.

6. sTAKEhOLdER RELATIONs & OuTREAchVariousmeetingswereheldwiththeMqhekezweniGreatplaceandthepeopleofMqhekezwenisinceJune2011.The meetings focused on the restoration and development of the site to be a source of learning and a tourist hub. Asiteplanwasdevelopedandimplementationofinterpretativeboardsisonthecards,pendingtheavailabilityoffunds.However,phaseonewhichconstitutedmarkingandprotectionofimbizospacewasimplemented.

The NelsonMandelaMuseum hosted the Nkantolo Development Trustmembers. The delegation includedMsGetrudeTambo,whoisO.R.Tambo’sonlysurvivingsister,theChiefofNkantolo,and,Nkantoloyouth.Themeetinglastedfortwodays.ItsaimwastoexposemembersofthetrusttoNelsonMandela’shumblebeginnings,fromMvezotoallsitesthataredirectlyassociatedtohimaroundQunu,andtoMqhekezweni.ThetourendedatNelsonMandela’sresidenceinQunu,wherethedelegationwaswarmlywelcomedbytheMandelafamily.ThisledtoaformalisedpartnershipbetweenthetwoInstitutionsand,moreover,anoralhistoryprojecttracingOR’sfootprintsaroundMbizanawasestablished.

RestorationofearthbuildingswasatthecoreoftheMandelaDay2011activities.ThisunlockedthepotentialofMqhekezweniGreatPlacewhereNelsonMandelawasraisedbytheRegentJongintabaMtirara,whowasMadiba’sUncle.TheoldhutofMrsNodanileinQunuwasrestoredandatemporalstructureputupbytheDepartmentofHumanSettlement.Shealsobecamea recipientof theDepartmentofSocialDevelopmentcommunitysupportprogramme.Avisdonatedblanketsandothergifts.

TheRestorationofearthbuildingprojectaimedtointroducelearnerstopreservationofheritagebuildingsandsitesofhistoricalsignificance.

Therewereanumberof engagements ,whichbrought togetherEducationCircuitManagers,Schools,Politicalorganisations, Government Departments, Traditional Councils, Local Municipalities, SAPS, SANDF, MKMVA,MunicipalPolice,Unions,WSU,LocalCommunities,CivicorganisationsCommunities,SASCOandCOSAS.Theseandother stakeholdersparticipated in themuseumevents suchas, learnerdebatesanddialogue, stakeholderconsultative forums, and other museum annual events. This has yielded positive results for the museum.

TheNelsonMandelaMuseumpartneredwithlike-mindedNGOssuchasTheEnterprisePartnership(TEP),topromoteNelsonMandelaMuseumproductsandservices.ItwonmembershipoftheTEPHiddenTreasuresProgrammeanditfeaturesinallTEPHiddenTreasurespublications,printandonline.

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7. PuBLIc BENEFIT, susTAINABILITy, sOcIAL ANd cOMMuNITy IssuEs

Sportdevelopmentasaplatformtoengagingout-of-schoolyouthprovedasuccess.AtournamentwasheldattheMuseumSportGroundswhichweresponsoredbytheGermanDevelopmentBank.Sixteenteamsfromthevillageand itsneighbourhoodparticipated.PartnershipwithDSRACandORTamboDistrictMunicipality in thisprogram,ensuresgrowthandsustainability.SeveralsportingequipmentwasdonatedbytheDepartmentOfSport,Recreation,Arts&Culture(DSRAC)andtheO.R.TamboDistrictMunicipality.

AnAfricantraditionalbeautycontestwasheldforthelocalyouthwhereknowledgeofIKSwasanaddedadvantageto the beauty pageants.

ANelsonMandelaJourneyofDiscoverytourtotheWesternCapeexposedlearnersfromQunutotheinjusticesoftheapartheidrule.Varioussitesofhistoricalsignificancewerevisitedanddiscussionsessionswereheld.Thevisitedsites includedRobben Island,TheNationalAssembly,Gugulethu7memorial, and,VictorVersterPrisontodayknownasDrakensteinPrison.

8. ExPOs ANd MARKETING ExhIBITIONsTheTourismIndaba2011furtherpositionedtheNelsonMandelaMuseumasasignificantinstitutionintheSouthAfricanHistoryandtourismlandscape.NewtwentyNationalandinternationaltouroperatorspackagedthemuseumandthereforeincreasedthemuseum’stourismmarketshare.

TheannualnationaloutdoorexhibitionheldatLowrensfordwineestatesexposedthemuseumandfurtherincreaseditsdomesticmarketshare.

9. VIsITATIONTheNelsonMandelaMuseum audiences reflect a broad range of interests and needs. In order tomeet theseneeds, the museum focuses on numerous areas of activity including school programs, youth programs, community outreachonsiteandtravellingexhibitions.Thisledtoanimpressivegrowthinvisitornumbersdespitethetemporalclosureofoneofitscorenodes,theBhungaBuildingwhichisbeingupgraded.Intotal33000peoplephysicallyvisitedtheNelsonMandelaMuseuminMthathaandQunuduringtheyearunderreview.Severalothereventsaswellasexhibitionlauncheshostedinvariouscities,townsandvillagesgaveaccesstomillionsofpeoplearoundthecountryandtheSADCregion.TheseincludemarketingexhibitionsduringtheANCYouthleagueConference,NgquzaHillCommemoration,HeritageDayCelebrationsinGiyaniandtheCentenaryLaunchinQueenstown.

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PROGRAMME 4 hERITAGE

TheNelsonMandelaMuseumPrograms/HeritageDepartmentismandatedtoengageinvariousprogrammesthatareeducationalandcultural,whichareaimedatsharingtheresourcesthatarelinkedtoPresidentNelsonMandela.Someoftheseprojectsareexecutedthroughpartneringwithotherinstitutions.Therearefivekeyareasofdeliveryandtheyareasfollows:(i) MaterialDevelopment:developmentofeducationsupportmaterialssuchaslearningguides,catalogues basedonourexhibitionsandworkingeneralaswellasproductionofworksheetsforlearners.(ii) LeadershipInstitute:Undertheleadershipinstitutethereare3campsthatarealternatecampsheldeachyear. They focus on young people at school and those out of school. (iii) Outreachprogrammes:Travellingexhibitionsandschoolvisits.(iv) Intellectualagenda:thefocusofthisistostimulatedebateonheritageandthelegacyofNelsonMandelaand his contemporaries through seminars, conferences, symposiums and continuous research.(v) Heritageresources:Thisfocusesonthecollection,protectionandpreservationofmaterialsthatreflectthe legacy of Nelson Mandela. The following is the report of the 2011/12 financial year end thatmade theNelsonMandelaMuseums’ publicprogramming a reality and connected the museum to its communities and the general public

1. EducATION

Inthereportingyear,thedepartmenthosted3campsthatformpartoftheLeadershipInstitute.Thesecampsareenumeratedbelow.

1.1. International Youth CampOnthe13to23March2011,theNelsonMandelaMuseumparticipatedinanInternationalYouthCampinGermany.TheMuseumsent5learnersfrom5provincestoparticipateinthecamp.The5learnersweredrawnfromEasternCape,Kwa-Zulu-Natal,Mpumalanga,LimpopoandNorthernCape.ThisisaresultofapartnershipbetweenthemuseumandtheAnneFrankHouse,inLowerSaxony,Germany.Thecampattractsparticipantsfrom9EuropeancountriesandSouthAfricaisthe10thcountry

1.2 Winter School CampOnthe04-09July2011,themuseumhostedaWinterSchoolCampattheNelsonMandelaYouthandHeritageCentre,Qunu.Thecampattracted60learnersbetweentheagesof14to18yearsand9educatorsfromallthe9ProvincesoftheRepublicofSouthAfricatobeinspiredbythevaluesthatNelsonMandelastoodfor.The themeof the campwas “Youth nurturingMandela’s legacy beyond 2010.”Youngpeoplewere inspired tocontributetimetoengageinvoluntaryworkwithintheircommunitiesandschools.

1.3 Artist in ResidencyOnthe24thOctobertothe8thofDecember2011,themuseumhostedanArtsincubatorprogramme.TheprogrammeattractedoutofschoolyouthfromtheEasternCapethathaveaninterestindevelopingtheirartskillsinordertobecomeentrepreneurs.Duringtheprogramme,artworkswereproducedandlaunchedonthelastdayofthecamp.Theartworkswereexhibitedfor3monthsattheNelsonMandelaYouthandHeritageCentreforpublicviewing.

2. INTELLEcTuAL AGENdA

TheNelsonMandelaMuseumsubscribestotheconceptoflifelonglearningthroughthefollowingactivities.

2.1 Seminar on Sasol New Art Signatures CompetitionTheseminarwasconductedonthe13May2011atBhungaBuildingwithapresentationmadebytheSasolNewArtSignaturesChairpersonPeterBinsbergen.Theseminarwaspartoftheentryprocesswhereallartistswishingtotakepartinthecompetitionwereencouragedtoattend.OneofourparticipantswhosubmittedhisartworkthathehaddevelopedduringtheartsincubatorprogrammewontheSasolnewsignaturecompetition.TheritualsofamaXhosainfluencedMrSkhumbuzoMakandula’spieceandhisworkwastitled“ilolo.”

2.2 Seminar on Long Walk to Freedom ExhibitionAspart of our outreachprogramme,on the25May2011 thedepartment conductedan Interactive seminar atKraaipanMuseum inNorthWest.Further to this, apresentationon theexhibitionwasdone toschoolsaroundKraaipanforaudiencedevelopment.

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2.3 Winter School WorkshopOnthe3rdtothe5thJune2011,thedepartmentconductedaworkshopattheNelsonMandelaYouthandHeritageCentretogetherwiththeNelsonMandelaMuseumcamppioneersandeducatorsfromallthenineProvincesofSouthAfricainpreparationfortheWinterSchoolCamp.Throughthisworkshop,thecampactivitiesweredevelopedandimplementedduringthewinterschoolcamp.

2.4 Seminar on the meaning of Mandela and LuthuliOnthe26July2011,6secondaryschools(Grades10and11)participatedinadebatethattookplaceinHammanskraalonthemeaningofMandelaandLuthuliaspartofabuildupprogrammetowardsthelaunchoftheMandelaandLuthuliexhibitionatTembaLibrary.Onthe25August2011,anotherseminaronMandelaandLuthuliwasconductedatMiddelburgCulturalMuseumwithapresentationmadebyMrJabulaniSitholefromtheUniversityofKwaZulu-Natal.

2.5 Curatorial FellowshipDuringthisperiod,thedepartmenthostedMrBala,adoctoralstudentfromMichiganStateUniversity,USAbetweenJuneandJuly2011.MrBala’sfellowshipwasfacilitatedbyourpartnershipwithMichiganStateUniversityMuseumthatallowsonefellowfromMichiganStateUniversitytovisitusonaresearchprogrammethatwejointlyidentified.WhileinSouthAfrica,MrBalaworkedonaprogrammefororalhistoryresearch.

3. MATERIAL dEVELOPMENT

NelsonMandela’s life story is an important story in thehistoryofSouthAfrica and theworld, particularly as itpertainstospecificvaluessuchasthoseoffreedom,humanity,resilience,peaceandreconciliation.Duringthisperiodthedepartmenthasproducedthefollowing:

3.1 Winter School Camp MagazineThedepartmenthasdevelopedamagazinethatreflectsthejourneysthattookplaceduringthewinterschoolcampinJune2010/11.

3.2 Catalogue BookThedepartmenthasdevelopedtwocataloguebooks,onefocusesontheLongWalktoFreedomExhibitionthatiscurrentlyhousedatReakgonaYouthCentreinNorthWest.Thesecondonefocusesontheartworksthatwereproduced by young artists from O R Tambo Municipality during the Arts incubator programme.

3.3 Journal on colloquium proceedingsAmockuponcolloquiumproceedingshasalreadybeendeveloped.Thebookiscurrentlyatthereviewingstageandwillbereadyforprintingverysoon.

3.4 PuzzlesThedepartmenthasdevelopedpuzzlesforGradeR–3basedonthemuseumexhibitions.Thepuzzlesarepopularwithyounglearners,especiallythosethatparticipateinourprogrammes.

4. OuTREAch PROGRAMME

Themuseumoutreachprogrammeisaimedattakingthemuseumtothepeopleregardlessoftheirlocation.Thishasbeendonethroughthefollowingactivities:

4.1 School VisitsAspartoftheoutreachprogramme,thedepartmenthasvisited118schoolsinMthathaandsurroundingsbetweenNyandeniDistrictandAlfredNzoDistricttointroducethemuseumactivitybook.

4.2 Travelling ExhibitionExhibitionsarethedominantinterpretationtooloftheNelsonMandelaMuseum

4.3 In Conversation: Mandela and Luthuli ExhibitionInpresentingthemultisiteexhibitionatthevenueslistedbelowacrossthecountry,themuseumisinvitingpeopleofSouthAfricaandtheworldtoexamineforthemselvesthecontinuedrelevanceofthesetwoNobelLaureates:• Onthe5May2011,theexhibitionwaslaunchedatBodibengLibrayinSoshanguveinGautengProvince;the sameexhibitionalsotravelledtoHammanskraalandwaslaunchedonthe27July2011• Onthe16July2011,theexhibitionwaslaunchedatBramfortintheFreeState• Onthe25August2011,theexhibitionwaslaunchedatMiddelburgCulturalMuseumintheEasternCape• ThesameexhibitionisrunningatNelsonMandelaGatewayinWesternCapeuntilMay2012.• AnotheroneisrunningatPolokwaneCulturalMuseuminLimpopoandalsoatKwa-MuhleMuseuminKwa- ZuluNatal.

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4.4 Nelson Mandela Photographic ExhibitionThisexhibitioniscurrentlyhostedattheNelsonMandelaacademichospital.Theexhibitionispopularwithbothstaffandpatients.Itisalsopopularduringtheschooltermwithlearnersdoingtheirownresearch.

4.5 Dear Mr Mandela, Dear Mrs Parks: Children’s ExhibitionDuringthisperiodJune2011toMarch2012,theexhibitionwasonshowatAlbanyMuseuminGrahamstown;itattractedbothmembersofthepublicandstudentsatthenearbyRhodesUniversity.AsaresultofthepresenceofthisexhibitionatthenearbycampusofRhodesUniversity,webelievethat ithadan influenceonthenamingof residences for theuniversitybecausewhen theuniversitywas renamingsomeof its residencesoneof themwasrenamedafterMrsRosaParks.Theuniversityinvitedustoparticipateinthelaunchofthenewnameoftheresidence.

4.6 Long Walk to Freedom exhibitionThisexhibitionisrunningatRaekgonaCulturalMuseuminNorthWest.

4.7 At the museumDuringthisperiodthemuseumhoused2exhibitionsatBhungaBulidinginMthathaOnewastitled:MandelaandLuthuliexhibitionandfocusesonconversationsmadebybothleadersduringtheapartheidyearsandtowardstheadoptionofthearmedstruggle.TheMakingofNelsonMandelaexhibitionfocusesonthe“triumphofthehumanspirit”andtheimprintNelsonMandelaleftinSouthAfrica,thecontinentandtheworld.Atouryouthandheritagecentre,wehaveoneoftheinterestingexhibitionsknownas“ParentingtheNation”anditisbasedonthelifestoriesofAlbertinaandWalterSisulu.

5. REsEARch

Duringthisperiod,theunitwasbusywithcontinuousinvestigationandengagementwithconservationandanalysisofmuseum collection. Some of the artefactswere donated anonymously. The research unit aims to completeresearchingtheprovenanceofthiscollectionbytheendof2014sothatthemuseumcanhaveacompletedataofwhomadetheartefact,whenwasitmade,wherewasitmade,whywasitmade,andbywhomwasitdonated?Anoralhistoryprojectwasalsostartedinordertoprovidein-depthinformationaroundtheseartefact.Formanypeopleundertakingresearch,museumsprovideanunrivalledwealthofinformationandresourcesaswellasaccesstoarchives.Asaresultofthis,scholarsandhighlytrainedprofessionalsvisitmuseumstosourceinformation.Inthereportingyear,theresearchunitinterviewed20individualswhodonatedsomeobjectstothemuseum.

6. hERITAGE cONsERVATION

Someofthekeyresultareasofthedepartmentarecollections,protectionandpreservationofmaterialthatreflectsthe legacy of Nelson Mandela.Duringthisperiod,theunit ledtheremovalofthemuseumcollectionswheretheyarekeptsafely inpreparationfortheBhungaclosure.Theprocessinvolvedresearchingandpurchasingoflabelsandlabellingandreconcilingoftheexistingregisters,verifyingofobjects,takingphotographsofobjects,lookingforquotationsforpackagingandtransportationof theobjectstotheplacewheretheyarekeptsafely.Theunitwasalsoresponsible forde-installationofthestoragematerialatNelsonMandelaYouthHeritageCentre.TheverificationoftheobjectslistedonthereceivedfilefromVikingRemovalCompanywashandedovertothecollectionsofficer.

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PART 3: PROGRAMME PERFORMANCE REPORT

TheNelsonMandelaMuseumwasopenedon11February2000at3sites(Mvezo,QunuandBhugaBuilding)byFormerPresidentMandelaandthenMinisterofArtsandCultureanditwasgazettedinthesameyearintermsoftheCulturalInstitutionsAct.ThemuseumopeningfollowedalongconsultativeprocessthatstartedshortlyafterMrMandelain1996announcedthathewilldonatehisgiftstoamuseumthatwastobeestablishedintheEasternCape,atameetingchairedbyGeneralHolomisa(thenDeputyMinisterofEnvironmentandTourism)inQunu.Theconsultativeprocessculminatedinadefinitonofwherethemuseumsiteswillbe,whatthemuseumwillcontributeto and broadly the strategic direction of the museum.

TheMinisterofArtsandCultureappointsaCounciltooverseethestrategicandpolicydirectionofthemuseum,thecouncilexercisesoversightoveramanagementteaminitsexecutionofthestrategyandbudgetsodeterminedwiththesaidpolicyframework.ThepresentperformancereportagainstthepredeterminedobjectivesispresentedtotheExecutiveAuthority,NationalAssemblyandstakeholdersingeneraltodemonstrateprogressagainstpredeterminedobjectivesandtoindicateareaswheretherehasbeendeviationfrompredeterminedtargetswithreasons.

2011-2012wasamomentousyearforthemuseum.ThefinancialyearsawtheaccelerationoftheBhungaUpgrade,themuseumhasnowachievedpresenceinalltheprovincesthroughthetravelingexhibitionsandcamps.TherehavebeenunforeseeabledelaysintheexecutionoftheQunuUpgradeduetomattersrelatedtoappointmentofProgrammeManager.

ThemuseumhasattemptedtodeliveronastrategythatisalignedtoMzansi’sGoldenEconomy.

Themuseum’sperformancegoalsintheperiodunderreviewwerethefollowing:1. Tostrengthenthemuseum’scontentandofferingswithitscorebusinessastobeingtobecometheliving heritage of Mr Nelson Mandela.2. Tobuildandmobilizeresources(financial,humanandmaterial)ofthemuseumtoincreaseitsorganisational capacitytofulfilitsmandateandpursueitsstrategicdirectiongoingintothefuture.Atthesametimeto ensure there is good and improved governance.3. Toimprovethemuseum’scommunications,image,publicprofileandfootprinttoensureaccessibilityanddo justicetoitsname.Themuseuminthisregardplannedtoalsocontributetothegovernment’s2010efforts and at the same time leverage the opportunities that arise thereby.4. Torenewthemuseum’sinfrastructureisthatismorefitforthepurposeandsothatitismoreuserfriendly.

Thetablethatfollowshighlightsprogressinperformanceagainstthepredeterminedtargets.

ThemuseumthankstheMinisterofArtsandCulture,theNationalAssembly,Theportfoliocommitteeforartsandculture,thetouroperators,thecommunities,thedonors,itsvarioussupportersandthevariousstakeholdersthathave been part of the museum’s success to date.

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31


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49


ANNuAL FINANcIAL sTATEMENTs

TypeofFinancialStatements Entity NameofControllingDepartment DepartmentofArts&Culture NameofNational/ProvincialPublicEntity NationalPublicEntity Fortheyearended 31March2012 TypeofFinancialstatements PublicEntitiesAnnualFinancialStatements Contactinformation: NameofChiefFinancialOfficer: Mr.WMdludlu Contacttelephonenumber: (047)5325110 Contacte-mailaddress: [email protected] Nameofcontactatrelevanttreasury: ThomasMatjeni Contacttelephonenumber: (012)3155792 Contacte-mailaddress: [email protected] NameofrelevantAuditor: Auditor-GeneralofSouthAfrica Contacttelephonenumber: (047)5310409 Contacte-mailaddress: Rasmeni,Malusi:[email protected] Preparer Contacttelephonenumber: SizweNtsalubaGobodo Contacte-mailaddress: [email protected]

50


AccOuNTING AuThORITy REPORT

1. GENERAL INFORMATIONThe Role of the Council of the Nelson Mandela MuseumInAccordancewiththeprovisionsofthePublicFinanceManagementAct,Act1of1999(PFMA),asamended,andtheTreasuryRegulations, theCouncilof theNelsonMandelaMuseum(theCouncil) is theAccountingAuthority.ItsroleincludesthesubmissiontotheExecutiveAuthority,theTreasuryandtheAuditorGeneralinformationsuchasAnnualFinancialStatementsandPerformanceInformationtwomonthsaftertheendofthefinancialyear.SinceitsinaugurationinApril2011,theCouncilhasaddressedtheprioritytaskstoenableittofunctionefficientlyandeffectively.ItestablishedaFinanceCommitteeaswellasanAuditCommitteeamongotherswhichdidnotexistinthepreviousyearandbeforethecurrentCouncilwasestablished.

2. sTATEMENT OF REsPONsIBILITyThePublicFinanceManagementAct(Act1of1999)asamendedrequirestheCounciltoensurethattheNelsonMandelaMuseumkeeps fullandproper recordsof itsfinancialaffairs.TheAnnualFinancialStatementsshouldfairly present the state of affairs of theNelsonMandelaMuseum, its financial results, its performance againstpredeterminedobjectivesand itsfinancialpositionat theendof theyear in termsof theGenerallyRecognisedAccountingPractice(GRAP)andinthemannerrequiredbytheCompaniesAct1973inSouthAfrica(ActNo.61of1973).

TheseAnnualFinancialStatementshavebeenpreparedinaccordancewithStatementsofGenerallyRecognisedAccountingPractice.Theyarebasedonappropriateaccountingpolicies,supportedbyreasonableandprudentjudgementsandestimates.

Thestrategy,operationalplans,budgetandcashflowprojectionstotheendof2017werereviewed.Onthebasisofthisreview,andintheviewofthecurrentfinancialposition,theCouncilhaseveryreasontobelievethattheNelsonMandelaMuseumwillbeagoingconcernintheyearaheadandhasadoptedthegoingconcernbasisinpreparingtheFinancialStatements.

Although,asstatedabove,theCouncilcouldnothaveperformedthe‘GeneralResponsibilities’aslistedinsection51ofthePFMA,ithasthepleasuretosubmittheFinancialStatementsofNelsonMandelaMuseumforthefinancialyear2011/2012.

3. FINANcIAL REsuLTsFulldetailsoftheFinancialResultsaresetoutinpages59to89ofthereport.

4. AudIT REPORTTheAuditReportoftheAuditorGeneralwillbepresentedonpages55to58.

5. BusINEss AddREssPhysicalAddress: BhungaBuilding CnrNelsonMandelaDrive&OwenStreetMthatha

6. OPINIONIntheopinionoftheCouncilbasedontheinformationavailabletodate,theAnnualFinancialStatementsfortheyearendedon31March2012andsetoutinpages59to89,fairlypresentthefinancialpositionoftheNelsonMandelaMuseum.TheresultsoftheoperationsandtheCashFlowfortheyearunderreviewfairlycomplywithprovisionsofthePFMAandTreasuryRegulations.

7. wORd OF GRATITudETheMuseumisgratefulforthecontinuedsupportoflocal,nationalandinternationalstakeholderssomeofwhomarededicatedpartners.WealsoacknowledgetheadministrativesupportoftheDepartmentofArtsandCultureandthecloserelationshipwiththeMinistertheHonourablePaulMashatiletheExecutiveAuthority.

........................................ChairpersonofCouncilDate:31MAY2012

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REPORT OF ThE AudIT cOMMITTEE FOR ThE yEAR ENdEd 31 MARch 2012ThisreportwaspreparedaspertheTreasuryRegulations27.1.6,27.1.7and27.1.10(b)&(c)forpublicentitiesissuedintermsofthePublicFinanceManagementAct,1999(ActNo1of1999)asamendedbyAct29of1999.

AudIT cOMMITTEE MEMBERs ANd ATTENdANcETheAuditCommitteeoftheNelsonMandelaMuseumconsistsoffourmembers,twoofwhomhavebeenappointedfromtheMuseumAccountingAuthorityandtheothertwoinvitedfromoutsidethePublicServiceasindependentmembersinaccordancewiththeprescriptsofsections51(1)(a)(ii),76(4)(d)and77ofthePublicFinanceManagementAct,1999(No.1of1999)asamendedbyAct29of1999asregulatedthroughTreasuryRegulations.

ThecompositionoftheCommitteeissetoutbelow:

Name of member No. of meetings

1.ProfLindelwaMajova-Songca(Chairperson) 6 2.MsLindiweGadd 53.MsL.Kangala nil4.MrDon.Saunders nil

Forthegreaterpartoftheyearunderreview,theNelsonMandelaMuseumhadanAuditCommitteeconsistingoftwomembersdrawnfromtheMuseum’sAccountingAuthoritymembershipwhileprocesseswereunderwaytoappointthetwoprofessionallyindependentmembersfromoutsidethePublicService.TheprocessofappointingindependentmembersoutsidethepublicservicewascompletedinDecember2011.Subsequently,MsL.KangalaandMrD.Saunderswereappointed.MsL.KangalahassinceconfirmedheracceptanceoftheappointmentwhileMrD.Saunderswasstillconsideringhisappointmentbyyearend.

TheChiefExecutiveOfficer,MrKhweziMpumlwanaandtheChiefFinancialOfficer,MrMfunekoMdludluwereinvited to attend the committee meetings.

AudIT cOMMITTEE`s REsPONsIBILITyTheauditcommitteesupportstheNelsonMandelaMuseum`sAccountingAuthorityinfulfillingitsoversightresponsibilityrelatingtointernalcontrols,risksmanagement,financialmanagementandcompliancewithlawsand regulations. The committee hereby reports that it has adopted appropriate formal terms of reference as its charter.Itfurtherreportsthatithasregulateditsaffairsincompliancewiththischarterandhasdischargedallitsresponsibilitiesascontainedtherein.Accordingly,thecommitteeoperatesinaccordancewiththetermsofthesaidcharterandissatisfiedthatithasdischargeditsresponsibilitiesincompliancetherewith.

ThE EFFEcTIVENEss OF INTERNAL cONTROLsThesystemsofinternalcontrolaredesignedtoprovidecosteffectiveassurancethatassetsaresafeguarded;andthatliabilitiesandworkingcapitalareefficientlymanaged.InlinewiththePublicFinanceManagementAct,theinternalauditprovidesthecommitteeandmanagementwithassurancethattheinternalcontrolsareappropriateandeffective.Thisisachievedbymeansofariskmanagementprocess,aswellastheidentificationofcorrectiveactions and suggested enhancements to the controls and processes. The internal audit reports functionally to the chairpersonoftheAuditCommitteeandadministrativelytotheChiefExecutiveOfficer.

AlthoughtheCommitteedidnothavetheopportunitytoreceiveandconsiderreportsoftheInternalAuditFunctionasthetermoftheInternalAuditServiceProvidercametoanendonthe31stOctober2011,therewerenoreportsofsignificantnoncompliancewiththeprescribedpoliciesandproceduresbroughttoitsattentionbytheMuseumManagement.AnewInternalAuditServiceProviderhassincebeenappointedandisnowinplace.

TheAuditCommitteehasnotedtheissuesraisedintheAuditor-General’sReporttoParliamentandtheFinalManagementReportoftheAuditor-General,indicatingdeficienciesinthesystemofinternalcontrol.TheAuditCommitteehadtaskedmanagementtoprepareacomprehensiveactionplantoindicatehowtheMuseumwilladdresstheissuesraisedinthereport.Managementhasalreadyembarkedontheprocessofaddressingtheseissueswithimmediateeffect.

52


ManagementwillreportdirectlytotheAuditCommittee,withInternalAuditreportingindependentlyontheprogressmadebymanagementinimplementingtheplantoenabletheAuditCommitteetoevaluatetheprogressmade.

EVALuATION OF FINANcIAL sTATEMENTsTheAuditCommitteehas;• reviewedanddiscussedtheauditedfinancialstatementstobeincludedintheentity`sannualreportwith thereportoftheAuditorGeneralandtheAccountingAuthority.• reviewedtheAuditor-General`smanagementletterandmanagementresponse.

OnbehalfoftheAuditCommittee,IconcurandaccepttheAuditor-General`sconclusionsontheAnnualFinancialStatementsandIamoftheopinionthattheAuditedAnnualFinancialStatementsbeacceptedandbereadtogetherwiththereportoftheAuditorGeneral.

……………………………………………ProfLindelwaMajova-SongcaCA(SA)ChairpersonAuditCommittee

53


MANAGEMENT REPORT

REPORT OF ThE AccOuNTING OFFIcER TO ThE ExEcuTIVE AuThORITy ANd PARLIAMENT OF ThE REPuBLIc OF sOuTh AFRIcA

1. General review of the state of affairsTheNelsonMandelaMuseumislocatedintheruralpartoftheEasternCape,MthathaandQunu.ThisisontheN2,halfwaybetweenDurbanandPortElizabeth;halfwaybetweentheIndianOceanandtheDrakensbergUkhahlambaWorldHeritageSite.Themuseumsitestraverse,includeandoverlooktheauthenticlandscapeofMrNelson Mandela’s childhood and retirement.

ThemuseumwasopenedonFebruary2000,byformerPresidentNelsonMandelaandthethenMinisterofArtsandCulture,havingbeenestablishedintermsoftheCulturalInsitutionsActof1998.2011-2012wasasignificantyearfortheNelsonMandelaMuseumbecausethisistheyearwherehighlightslike,theappointmentofaCouncil,thestartoftheBhungaupgrade,amultimillionrandproject,theincreaseofthereachofthemuseumtoallprovinces,thesuccessfulrelocationtoQunu,successfulparticipationinandleveragingoftheNationalCentenaryprocesswereattained.

Oversightoverthemuseum,strategicandpolicydirectionareprovidedbyaCouncilestablishedbytheministereverythreeyears.AnewcouncilcommenceditsresponsibilitiesinApril2011rightatthestartoftheseconddecade of the museum.

Asanorganofstate,themuseumdeliversitsservicesinalignmentwithgovernmentobjectives.Themuseumcontributes to social cohesion, patriotism, unity, reconciliation, economic regeneration through tourism and itsprocurementpractices,citizenparticipationandawarenessthroughoutreach,educationprogrammesandexhibitions.

Themuseumprogrammesinclude:Governance(whichdealswithadministrationandcouncilsupport);HumanResources;MarketingandCommunication;HeritageServices;InfrastructureServices.

Intheyearunderreview,themuseumtookdifferentmeasurestostrengthengovernance;buildinstitutionalcapacity;renewprogrammeofferingsinthewayofanewresearchlibrary;newexhibitionsandneweducationprogrammes;improvingtheinfrastructure;improvingconservationmeasures.Theperformanceinformationdetails progress in each of these areas and areas of deviation.

Itispleasingtonotethatintheyearunderreviewmorethan50.82%oftheannualoperatingbudgetwasspentoncorebusinessexecutionespeciallyresearchandexhibitions.

TheNelsonMandelaMuseum’sresultsfortheyearshowadecreaseinreservesfromR9291620toR6431907whichislargelyattributabletotheneteffectoftheuseofrolledoversurplusesfrompreviousyears,useofwhichwasauthorisedbyNationalTreasurythroughtheDepartmentofArtsandCultureduring2008aswellasaugust2011,andoverrunofbudgetonauditfeepaidtotheAuditorGeneral.IntheyearunderreviewanetdecreaseinCashandCashequivalentfromR23179998toR20932644partofwhichisattributabletoareceiptofagrantfromgovernmentforaQunuMuseumredevelopmentspecialprojectcommencementofwhichisabouttotakeplaceaswellasreceiptanduseofgrantfortransportationandstorageofartefactsandmovementtoQunuduringBungaupgradehasbeenrecorded.

The Nelson Mandela Museum received most of its funding from the subsidy allocations from the National GovernmentthroughtheDepartmentofArtsandCulture.TotalrevenuecollectedbytheNelsonMandelaMuseumfortheyearunderreviewdecreasedby18.07%fromR24560714toR20070418.Thisdecreaseisattributabletotherelativelyreducedpaceinwhichthespecialprojectsprogressastheyareapproachingcompletionresultinginrevenuebeingrecognisedasprojectsimplementationprogressbeingreduced.ThesubsidyfromtheDepartmentofArtsandCultureaccountedfor82.86%ofthetotalrevenuewhile.028%wasfromdonorfunding,12.19%fromprojectfundingrecognisedasrevenueasprojectsprogress,4.67%realisedasourownincomegeneratedthroughinterestfrombankinvestmentoftheamountreceivedfromvariousprojectfunders,rentalofconferencevenueandchargeforaccommodationatQunuYouthandHeritageCentreaswellassalesrealisedonthesaleofbooksandgolfshirts.TheoperatingexpenditurefortheyearunderreviewisR22930131elicitingadecreaseof3194498fromthatrecordedthepreviousyear,constitutingasubstantialvarianceduetoadecreaseinotheroperatingexpensescomprisedofadvertisingexpensesandexhibitionexpenses,auditfees,admincostsandgeneraltravelandaccommodationasmaincontributors.Theoperatingexpenditureismadeupof33.29%fixedcostsonpersonnel,10.31%administrativeandgovernance,and50.82%corefunctionactivitiesandcostofsalesof0.37%,Financecosts0.25%aswellas4.96%statutoryauditfees.TheNelsonMandelaMuseumis

54


agoingconcernwithabudgetofR17467000fortheyear2012/13.TheMuseumwillcontinuetoadoptagoingconcernbasisinpreparingitsfinancialstatementsintheyearaheadasthebudgetindicates.

2. Services rendered by the Nelson Mandela MuseumThe core business of the Nelson Mandela Museum is honouring and celebrating Mr Nelson Mandela, conserving, presentingandinterpretingheritageresourceslinkedtohim,andinspirepeopletolearnandsharefromhislegacywhilecontributingtoeducation,culturalrenewalandeconomicdevelopment.

Inthecourseofconductingitsbusiness,theMuseumhasidentifiedthesaleofmemorabilia,booksandserviceslikeconferencevenuesandaccommodationaskeyincomegeneratingmechanisms.TheaccommodationfacilitiesatQunuYouthandHeritageCentrehaveacquiredathreestargradedstatusandwenowexpecttocontinuemakinginroadsintothemarketswehaveestablishedandelicitsubstantialincreaseinvisitorship.

3. TariffsTariffs are charged for rental of conference facilities, supply of sleeping accommodation, hiring out of buses asmeansoftransport.Pricesarefixedforthesaleofbooksandgolfshirts.ThesehavebeendeterminedbybenchmarkingagainsttheconferencefacilitiesrentalschargedinthisareaaswellastheconsiderationofthemuseumoperatingcostsandhavebeenreviewedandapprovedbytheChiefExecutiveOfficerondelegationfromCouncilandbytheMuseumCouncilitselfthroughtheapprovaloftheNewMuseumRevenuePolicy,havingtakeninto account the museum’s graded status and changes in prices in the industry.

4. Capacity ConstraintsAlthoughcertainpostsinourorganogramhavebeenfilled,themuseumisstillchronicallyunderstaffedwhichisoccasionedbyananomalyintheoriginalbaselinefunding.Howeverthemuseumisconstantlyknockingatourmotherdepartment’sdoorwithregardtofundingandfillingofcriticalpostsinordertofulfilbothitscorefunctionactivitiesaswellassupportingfunctions.Thisisevidentfromthemuseum’sorganogramwhichisnowalittleabove50%populated.

Capacityconstraintsdelayedtheinstitutionandcompletionofanumberofprojects,andalsoaffectedtheabilityofthemuseuminaddressingcompliancewithvariouspiecesoflegislationandregulations.Forexample,theNelson Mandela Museum has put in place procurement guidelines and asset management controls through the developmentofacomprehensiveSupplyChainManagementPolicyandafixedassetmanagementpolicybutthereisnorelevantllyqualifiedpersonnellikeProcurementManager/Officertodriveandimplementthesepolicieseffectively.Themuseumwillthereforebecompelledtorelyonconsultacyservices.

5. Current ActivitiesTheMuseumiscurrentlybusywithanupgradeofitsmainBuilding,theBhungaBuilding,themuseumisbusywithan outreach programme that reaches all the different provinces.

6. Donor FundingTheNelsonMandelaMuseumhasestablishedaDonationsBoxthroughwhichithasmanagedtocollectR6146duringtheyearunderreview.

7. Equipment for QunuTheequippingoftheQunuYouthandHeritageCentreiscompleteandtheoperationshaveyieldedasubstantialamountinincomewithcontinuedimprovementsinthefurnishingoftheaccommodationfacilitiesandjerkingupofsecurity in and around the premises.

8. ConclusionTheeffortsthathavebeenputinplaceintheyearunderreview,puttheMuseumonacourseinfulfillingitsmandate, in honouring Mr Mandela, providing valuable learning opportunities for all its audiences, and an accountablesustainableinstitution.Weappreciatethecontributionofpreviousandcurrentcouncils,ofthemuseumstaff,ofthemuseumstakeholder,ofthemuseumfundersandtheentiregovernmentoftheRepublicofSouth Africa.

......................................KhweziMpumlwanaChiefExecutiveOfficer

55


5989

56


29 45

57


58


59


sTATEMENT OF FINANcIAL POsITION (sPO)As AT 31 MARch 2012

Notes 31 March 2012 31 March 2011

R R

ASSETS

Non-current assets 5,691,102 5,342,871

Property, plant and equipment (SPO) 2 5,691,102 5,342,871

Current assets 21,063,946 23,288,175

Inventory (SPO) 3 32,158 108,177

Loans and receivables:current (SPO) 32 99,145 -

Cash and cash equivalents (SPO) 4 20,932,644 23,179,998

TOTAL ASSETS 26,755,049 28,631,046

LIABILITIES

Non-Current Liabilities 108,720 166,568

Finance Lease Obligation - Non-Current Portion 8 108,720 166,568

Current liabilities 20,214,422 19,172,859

Trade and other payables (SPO) 5 1,412,613 865,349

Finance lease obligation - current portion 8 59,717 85,800

Provisions;current (SPO) 6 824,933 346,002

Unspent conditional grants;current (SPO) 7 17,917,159 17,875,708

TOTAL LIABILITIES 20,323,142 19,339,427

NET ASSETS

CAPITAL AND RESERVES

Accumulated surplus/(deficit) (SPO) 9 6,431,907 9,291,620

TOTAL NET ASSETS 6,431,907 9,291,620

TOTAL NET ASSETS AND LIABILITIES 26,755,049 28,631,046

60


sTATEMENT OF FINANcIAL PERFORMANcE (sPR)FOR ThE yEAR ENdEd As AT 31 MARch 2012

Notes 31 March 2012 31 March 2011

REVENUE

Exchange revenue 744,752 689,251

Sale of goods - exchange transactions 10 32,381 19,688

Other income (SPR) 13 712,371 669,563

Non-exchange revenue 19,133,688 23,805,602

Gifts, sponsorships and donations received (SPR) 12 56,146 15,618

Transfers and subsidies received (SPR) 11 19,077,542 23,789,984

TOTAL REVENUE 19,878,440 24,494,853

EXPENDITURE

Cost of Sales (SPR) (84,424) (33,420)

Administrative expenses (SPR) 14 (2,362,938) (2,794,677)

Staff costs (SPR) 15 (7,633,174) (6,660,320)

Audit fees (SPR) 16 (1,138,277) (1,315,561)

Other operating expenses (SPR) 17 (11,654,041) (15,311,472)

TOTAL EXPENDITURE

(22,872,854)

(26,115,450)

SURPLUS/(DEFICIT) FROM OPERATIONS (2,994,414) (1,620,597)

Finance income (SPR) 18 191,978 65,861

Finance cost (SPR) 19 (57,277) (9,179)

SURPLUS/(DEFICIT) FOR THE YEAR (2,859,713) (1,563,914)

61


sTATEMENT OF chANGEs IN NET AssETsAs AT 31 MARch 2012

Accumulated Surplus/(Deficit)

Total Equity

R R

Balance at 1 April 2010 as originally stated 10,855,532 10,855,532

Surplus/(Deficit) for the year (1,563,912) (1,563,912)

Balance as at 31 March 2011 9,291,620 9,291,620


Balance as at 31 March 2012 6,431,907 6,431,907

62


cAsh FLOw sTATEMENTFOR ThE yEAR ENdEd As AT 31 MARch 2012

31 March 2012 31 March 2011

R R

CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from government and customers 19,977,585 24,494,854

Cash paid to suppliers and employees (20,445,934) (25,269,617)

Cash generated from / (utilised in) operations 20 (468,349) (774,763)

Interest received 191,978 65,861

Interest paid (57,277) (9,179)

Net cash inflows/(outflows) from operating activities 21 (333,648) (718,081)

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of:

Property, plant and equipment (1,871,227) (1,413,550)

Net cash flows from investing activities 22 (1,871,227) (1,413,550)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase/(decrease) in Non-Current Liabilities

Conditional Grants 41,451 16,685,249

Finance Leases (83,931) (183,500)

Net cash flow financing activities 23 (42,480) 16,501,749

Net increase/(decrease) in cash and cash equivalents (2,247,355) 14,370,119

Cash and cash equivalents at the beginning of the year 4 23,179,998 8,809,880

Cash and cash equivalents at end of the year 4 20,932,644 23,179,998

63


NOTEs TO ThE ANNuAL FINANcIAL sTATEMENTs31 MARch 2012

1. AccOuNTING POLIcIEs1.1 Reporting EntityThese financial statements are for the Nelson Mandela Museum. These financial statements encompass thereportingentityasspecifiedinthePublicFinanceManagementAct(ActNo.1of1999)

1.2 Basis of PreparationTheAnnual FinancialStatements havebeenprepared in accordancewithStatementsofGenerallyRecognisedAccounting Practice (GRAP) issued by the Accounting StandardsBoard in accordancewith Section 55 of thePublicFinanceManagementAct (Actno.29of1999).TheAnnualFinancialStatementshavebeenpreparedonthehistoricalcostbasis,andincorporatetheprincipalaccountingpoliciessetoutbelow.Accountingpoliciesformaterialtransactions,eventsorconditionsnotcoveredbytheGRAPreportingframework,havebeendevelopedinaccordancewithparagraphs7,11and12ofGRAP3andthehierarchyapprovedinDirective5issuedbytheAccountingStandardsBoard.Assets,liabilities,revenuesandexpenseshavenotbeenoffsetexceptwhereoffsettingisrequiredorpermittedbyaStandardofGRAP.Theseaccountingpoliciesareconsistentwiththepreviousperiod,unlessexplicitlystated.Thedetailsofanychangesinaccountingpoliciesareexplainedintherelevantpolicy.TheprincipalaccountingpoliciesadoptedinthepreparationoftheseFinancialStatementsaresetoutbelow.

1.3 Presentation CurrencyThefinancialstatementsarepresentedinSouthAfricanRand,whichisthefunctionalcurrencyoftheentity.Unlessstatedotherwise,allfigureshavebeenroundedofftothenearestRand.

1.4 Going concern assumptionTheseAnnualFinancialStatementshavebeenpreparedontheassumptionthattheentitywillcontinuetooperateasagoingconcernforatleastthenext12months.

1.5 Comparative informationWhen the presentation or classification of items in the Annual Financial Statements is amended, prior periodcomparativeamountsarerestated.Thenatureandreasonforthereclassificationisdisclosed.Whereaccountingerrorshavebeenidentifiedinthecurrentyear,thecorrectionismaderetrospectivelyasfarasispracticable,andtheprioryearcomparativesarerestatedaccordingly.Wheretherehasbeenachangeinaccountingpolicyinthecurrentyear,theadjustmentismaderetrospectivelyasfarasispracticable,andtheprioryearcomparativesarerestatedaccordingly.

1.6 Significant judgmentsLoans and ReceivablesTheentityassesses its loansand receivables for impairmentateach reportingdate. IndeterminingwhetheranimpairmentlossshouldberecordedintheStatementofFinancialPerformance,theentitymakesjudgementsastowhetherthere isobservabledata indicatingameasurabledecreaseintheestimatedfuturecashflowsfromafinancialasset.The impairment for loansand receivables iscalculatedonaportfoliobasis,basedonhistoricalloss ratios, adjusted fornational and industry-specificeconomicconditionsandother indicatorspresentat thereportingdatethatcorrelatewithdefaultsontheportfolio.Theseannuallossratiosareappliedtoloanbalancesinthe portfolio and scaled to the estimated loss emergence period.

Allowance for slow moving, damaged and obsolete stockAnallowanceforstockthatisolderthan5yearsandisprojectedtotakemorethan5yearstosellisprovidedforinfull.Anystockthatisphysicallyidentifiedasdamagediswrittenoffwhendiscovered.

Impairment testingManagement used value in use or fair value less cost to sell to determine the recoverable amount of assets that may have been impaired.

ProvisionsProvisionswereraisedandmanagementdeterminedanestimatebasedontheinformationavailable.Additionaldisclosureof theseestimatesofprovisionsare included innote6 -Provisions.Provisionsaremeasuredat themanagementsbestestimateoftheexpenditurerequiredtosettletheobligationatthereportingdate.

64


NOTEs TO ThE ANNuAL FINANcIAL sTATEMENTs (cONTINuEd)

31 MARch 2012

1. AccOuNTING POLIcIEs (cONTINuEd)

1.7 Property, Plant and EquipmentThecostofanitemofproperty,plantandequipmentisrecognisedasanassetwhen:a) itisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheentity;andb) thecostoftheitemcanbemeasuredreliably.

Costsincludecostsincurredinitiallytoacquireorconstructanitemofproperty,plantandequipmentandcostsincurredsubsequentlytoaddto,replacepartof,orserviceit.Ifareplacementcostisrecognisedinthecarryingamount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

Theinitialestimateofthecostsofdismantlingandremovingtheitemandrestoringthesiteonwhichitislocatedisalso included in the cost of property, plant and equipment.

Property, plant and equipment is carried at historical cost less accumulated depreciation and accumulatedimpairmentlosses.Depreciationiswrittenoffovertheusefullifeoftheassetsusingthestraight-linemethod.

Theusefullifeoftheassetsisestimatedasfollows:Motorvehicles 5years Furnitureandfittings 6.7yearsComputerequipment 3years Otherfixedassets 5yearsOfficeequipment 6.7years BuildingsandStructures 10years

Eachpartofanitemofproperty,plantandequipmentwithacostthatissignificantinrelationtothetotalcostoftheitem shall be depreciated separately.

Thedepreciationchargeforeachperiodisrecognisedinprofitorlossunlessitisincludedinthecarryingamountof another asset.

Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.Anygainorlossarisingfromthederecognitionoftheasset(calculatedasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheasset)isincludedinprofitorlossinthe year the item is derecognised.

Assetsheldunderafinanceleasearedepreciatedovertheirexpecteduseful livesonthesamebasisasownedassets. If there isnoreasonablecertaintythattheentitywillobtainownershipbytheendofthe leaseterm,theassets are depreciated over the shorter of the lease term and its useful life.

Theresidualvalue,theusefullifeofanassetandthedepreciationmethodisreviewedannuallyandanychangesare recognisedasachange inaccountingestimate in theStatementofFinancialPerformance.Theentity testsforimpairmentwherethereisanindicationthatanassetmaybeimpaired.Anassessmentofwhetherthereisanindicationof impairment isdoneatreportingdate.Wherethecarryingamountofan itemofproperty,plantandequipment is greater than the estimated recoverable amount ( or recoverable service amount), itwritten downimmediatelytoitsrecoverableamount(orrecoverableserviceamount)andanimpairmentlossischargedtotheStatementofFinancialPerformance.

Repairandmaintenancearegenerallychargetoexpensesduringthefinancialperiodinwhichtheyareincurred.However,majorrenovationsarecapitalisedandincludedinthecarryingamountoftheassetwhenitisprobablethatfutureeconomicbenefitsinexcessoftheoriginallyassessedstandardofperformanceoftheexistingassetwillflowtothecompany.Majorrenovationsaredepreciatedovertheremainingusefullifeoftherelatedasset.

65



31 MARch 2012


1.8 Financial assetsInitial recognitionFinancialassetsarerecognisedintheEntity’sstatementoffinancialpositionwhentheentitybecomesapartytothecontractualprovisionsofaninstrument.Regularwaypurchasesandsalesoffinancialassetsarerecordedonthe trade date.

Financialinstrumentsareinitiallymeasuredatcost(orfairvalueifsignificantdifference),plusinthecaseoffinancialinstrumentsnotatfairvaluethroughprofitorloss,transactioncosts.Thefairvalueofafinancialinstrumentthatisinitiallyrecognisedisnormallythetransactionprice,unlessthefairvalueisevidentfromtheobservablemarketdata.Theentityusesadiscountedcashflowmodelwhichincorporatesentity-specificvariablestodeterminethefairvalueoffinancialinstrumentsthatarenottradedinanactivemarket.Differencesmayarisebetweenthefairvalueinitiallyrecognised(which,inaccordancewithIAS39,isgenerallythetransactionprice)andtheamountdeterminedusingthevaluationtechnique.Anysuchdifferencesaresubsequentlyrecognisedinprofitorlossonlytotheextentthattheyrelatetoachangeinthefactors(includingtime)thatmarketparticipantswouldconsiderinsettingtheprice.

Theentityclassifiesitsfinancialassetsinthefollowingcategories:-atfairvaluethroughprofitandloss-held-to-maturity-loansandreceivablesand-available-for-saleTheclassificationdependsonthepurposeforwhichtheentityacquiredthefinancialassets.

Financial assets at fair value through profit or lossThiscategoryhastwosub-classifications,namelyfinancialassetsheldfortradingandfinancialassetsdesignatedasatfairvaluethroughprofitorlossattheinceptionoftheinstrument.Derivativeinstrumentsareclassifiedasheldfor trading unless they qualify as designated and effective hedging instruments.

Cashandcashequivalentsareclassifiedasfinancialassetsat fairvaluethroughprofitor loss. Cashandcashequivalentsconsistofcashinthebankandshort-termdeposits,andothershort-terminvestmentsthatarehighlyliquid and can readily be converted into cash.

Financialassetsaredesignatedintothiscategorywhentheiraccountingtreatmentintermsofthiscategoryresultsin more relevant information than accounting in terms of another category or it is a contract that contains one or more embedded derivatives.

Financialassetsat fair value throughprofitor lossare initiallymeasuredat fair valueexcludingany transactioncosts.Subsequentlytheseassetsaremeasuredatfairvalue,withgainsandlossesrecognisedinprofitorloss.Netgainsorlossesconsistoffairvalueadjustmentsandgainsandlossesonderecognitionandtheyareincludedin“otherincome”or‘’otherexpenses’’.Interestanddividendincomearereportedseparatelyfromnetgainsorlosses.Interestincome,calculatedusingtheeffectiveinterestratemethod,isincludedin“interestincome’’.

Held to maturity and loans and receivablesThesefinancialassetsareinitiallymeasuredatfairvalueplusdirecttransactioncosts.At subsequent reporting dates these are measured at amortised cost using the effective interest rate method, lessanyimpairment lossrecognisedtoreflect irrecoverableamounts.Animpairment loss isrecognisedinprofitor losswhenthere isobjectiveevidence that theasset is impaired,and ismeasuredas thedifferencebetweentheinvestment’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheeffectiveinterestratecomputedatinitialrecognition.Impairmentlossesarereversedinsubsequentperiodswhenanincreaseintheinvestment’srecoverableamountcanberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised, subject to the restriction that the carrying amount of the investment at thedate the impairment isreversedshallnotexceedwhattheamortisedcostwouldhavebeenhadtheimpairmentnotbeenrecognised.

Financialassetsthatthecompanyhasthepositiveintentionandabilitytoholdtomaturityareclassifiedasheldtomaturity.

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31 MARch 2012


Loans and receivablesThiscategoryrepresentsnon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Itincludesshort-termreceivables,suchastradeandotherreceivables,andlong-termreceivables,suchasloansgranted.Thiscategorymayalsoincludefinancialassetsthatwouldhavebeeninpairedorpastdueifthetermsoftheinstrumentwerenotrenegotiated.

Loansandreceivablesareinitiallymeasuredatfairvalue,plustransactioncosts.Subsequently,itemsincludedinthis category are measured at the amortised cost, calculated based on the effective interest method, and interest incomeisincludedinprofitorlossfortheperiod.Netgainsorlossesrepresentreversalsofimpairmentlosses,impairmentlossesandgainsandlossesonderecognition.Netgainsorlossesareincludedin‘’otherincome’’or“otherexpenses’’.

Short-term receivableswithnostated interest ratearemeasuredat theoriginal invoiceamount, if theeffectofdiscounting is immaterial.

Impairmentlossesarerecognisedonloansandreceivableswhenthereisobjectiveevidenceofimpairment.Animpairment loss is recognised in profit or losswhen the carrying amount of the asset exceeds its recoverableamount.Therecoverableamountiscalculatedasthepresentvalueoftheestimatedfuturecashflowsdiscountedat the original effective interest rate of the instrument.

Assetsthatareindividuallysignificantareconsideredseparatelyforimpairment.Whentheseassetsareimpaired,andimpairmentlossisrecogniseddirectlyagainsttherelatedasset.Assetsthatareindividuallysignificantandthatare not impaired, and groups of small balances are considered for impairment on a portfolio basis, based on similar creditrisk.Impairmentlossesarerecognisedinan“allowanceaccountforcreditlosses’’untiltheimpairmentcanbeidentifiedwithanindividualasset,and,atthatpoint,theallowanceiswrittenoffagainsttheindividualasset.

Theentityusesthesameindicatorstodeterminewhetherthereisobjectiveevidenceofimpairmentforloansandreceivablesasthecriterialistedunderheld-to-maturityfinancialassets.

Initial RecognitionFinancialassetsarerecognisedintheEntity’sstatementoffinancialpositionwhentheentitybecomesapartytothecontractualprovisionsofaninstrument.Regularwaypurchasesandsalesoffinancialassetsarerecordedonthe trade date.

FinancialinstrumentscarriedontheStatementofFinancialPositionincludeCash,bankbalances,CallandNoticeDeposits,ReceivablesandPayablesandaremeasuredatcost.

1.9 Foreign currency transactionsTransactionsinforeigncurrenciesareaccountedforattheratesofexchangerulingonthedateofthetransactions.Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesaretranslatedattheratesofexchangerulingatthereportingdate.Unrealiseddifferencesonmonetaryassetsandliabilitiesarerecognisedinprofitorlossintheperiodinwhichtheyoccur.

1.10 InventoriesInventoriesareinitiallymeasuredatcostandsubsequentlyatthelowerofcostornetrealisablevalue.Anywrite-downtonetrealisablevalueisrecognisedinprofitorloss.Costcomprisesdirectmaterials,directlabourcostsandthose overheads that have been incurred in bringing the inventories to their present location and condition (based onnormaloperatingcapacity).Costiscalculatedusingthefirst-in,first-out(FIFO)method.Netrealisablevalueisthe estimated selling price in the ordinary course of business less any costs of completion and disposal.

1.11 Trade and other payablesTrade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

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31 MARch 2012


1.12 LeasesAleaseisclassifiedasafinanceleaseifittransferssubstantiallyalltherisksandrewardsincidentaltoownership.Aleaseisclassifiedasanoperatingleaseifitdoesnottransfersubstantiallyalltherisksandrewardsincidentaltoownership.

Finance leases – obligationsFinanceleasesarerecognisedasassetsandliabilitiesinthebalancesheetatamountsequaltothefairvalueoftheleasedpropertyor,iflower,thepresentvalueoftheminimumleasepayments.Thecorrespondingliabilitytothelessorisincludedinthebalancesheetasafinanceleaseobligation.

The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease.The leasepaymentsareapportionedbetweenthefinancechargeandreductionof theoutstandingliability.Thefinancechargeisallocatedtoeachperiodduringtheleasetermsoastoproduceaconstantperiodicrate of on the remaining balance of the liability.

Operating leases – lesseeOperatingleasepaymentsarerecognisedasanexpenseonastraight-linebasisovertheleaseterm.Thedifferencebetween theamounts recognisedasanexpenseand thecontractualpaymentsare recognisedasanoperatinglease asset.

This liability is not discounted.Anycontingentrentsareexpensedintheperiodtheyareincurred.

1.13 Irregular and fruitless and wasteful expenditureIrregularexpendituremeansexpenditureincurredincontraventionofornotinaccordancewith,arequirementofanyapplicablelegislation.FruitlessandWastefulexpendituremeansexpenditurethatwasmadeinvainandwouldhave been avoided had reasonable care been exercised. All irregular and fruitless andwasteful expenditure ischargedagainstincomeintheperiodinwhichtheyareincurred.

1.14 TaxationTheMuseumisexemptfromtaxationintermsoftheprovisionsofsection10(1)(cA)(i)oftheIncomeTaxAct.

1.15 Transfers and subsidies/government grantsAn inflowof resources fromanon-exchange transaction,e.g.grant,other thanservices in-kind, thatmeets thedefinitionofanassetshallberecognisedasanassetwhen,andonlywhen:

-itisprobablethatthefutureeconomicbenefitsorservicepotentialassociatedwiththeassetwillflowtotheentity; and-thefairvalueoftheassetcanbemeasuredreliably.

Theentityonlyrecognisesanassetarisingfromanon-exchangetransactionwhenitgainscontrolofresourcesthatmeetthedefinitionofanassetandsatisfytherecognitioncriteria.

Grantsreceivedwithoutanyconditionsattachedarerecognisedasrevenuewhentheassetisrecognized.Iftheentityhassatisfiedallofthepresentobligationsrelatedtotheinflow, itrecognisesanasset intheStatementofFinancialPositionandcorrespondingrevenueintheStatementofFinancialPerformance..

Iftheentityhaspartiallysatisfiedthepresentobligationsrelatedtotheinflow,itrecognisesanassetandrevenuetotheextentthataliabilityisnotalsorecognisedandaliabilityintheStatementofFinancialPositiontotheextentthatthepresentobligationshavenotbeensatisfied.

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31 MARch 2012


1.16 ProvisionsTheentityrecognisesaprovisionwhenithasapresentobligationasaresultofapastevent,andit isprobablethat theentitywillbe required tosettle theobligation. Provisionsaremeasuredbasedon thebestestimateoftheexpenditurerequiredtosettlethepresentobligationatthereportingdate.Wheretheeffectotthetimevalueofmoneyismaterial,theamountoftheprovisionisdiscountedtopresentvalueusingapre-taxratethatreflectscurrent assessments of the time value of money. The increase in the amount of the provision as a result of the passageoftimeisrecordedinprofitorlossfortheyear.

1.17 Employee benefitsCompensation of employeesShort-termemployeebenefits includesalariesandwages,short-termcompensatedabsencesandbonusplans.Theentityrecognisesaliabilityandcorrespondingexpenseforshort-termemployeebenefitswhenanemployeehasrenderedservicesthatentitlehim/hertothebenefits.

Post-employment benefitsPaymentsmade todefinedcontributionplansare recognisedasanexpenseon theaccrualbasis. TheNelsonMandelaMuseumoperatesdefinedcontributionsplanscalledOmedOrionProvidentFundadministeredbyOldMutualandaMedicalAidSchemeadministeredbyBonitasMedicalAidScheme.Oncethecontributionshavebeen paid the Museum has no further payment obligation. The regular contributions constitute periodic costs for theyearinwhichtheyaredueandsuchareincludedinthestaffcosts.

1.18 RevenueRevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtothecompanyandtherevenuecanbereliablymeasured.Revenueismeasuredatthefairvalueoftheconsiderationreceived,excludingdiscounts,rebatesandothertaxesorduties.Thecompanyassessesitsrevenuearrangementsagainstspecificcriteriainordertodetermineifitisactingasprincipaloragent.Thefollowingspecificrecognitioncriteriamustbemetbeforerevenueisrecognised:

Sale of goodsRevenuefromthesaleofgoodsisrecognisedwhenthesignificantrisksandrewardsofownershiparetransferredto the buyer.

InterestInterestisrecognisedasinterestaccrues(usingtheeffectiveinterestmethod).

1.19 Borrowing costBorrowing costs received on conditional grants are recognised on a systimatic basis using the percentage ofcompletionofprojectsinprofitorloss.Otherborrowingcostsarerecognisedinprofitorlossasincurred.

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31 MARch 2012


1.17 Accounting Standards and Interpretations that have been issued but are not yet effectiveStandardsissuedbutnotyeteffectiveuptothedateofissuanceoftheentity’sfinancialstatementsarelistedbelow.ThecouncilhasconsideredalloftheseStandardsandInterpretationsandfoundnonetobeapplicabletotheentity.

-GRAP18SegmentReporting-GRAP21ImpairmentofNon-cash-generatingAssets-GRAP23RevenuefromNon-exchangeTransactions-GRAP24PresentationofBudgetInformation-GRAP25EmployeeBenefits-GRAP26ImpairmentofCash-generatingAssets-GRAP103HeritageAssets-GRAP104FinancialInstruments

70


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71


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72



31 MARch 2012

31 March 2012 31 March 2011

R R

3. INVENTORy

Finished goods 32,158 108,177

Total 32,158 108,177

4. cAsh ANd cAsh EquIVALENTs

Cash and balances with banks 265,313 229,850

Short-term deposit/investments

20,654,302 22,937,120

Petty Cash 13,028 13,028

20,932,644 23,179,998

For the purposes of the cash flow statement:

Cash & cash equivalents 20,932,644 23,179,998

Cash & cash equivalents at 1 April 2010 8,809,880

5. TRAdE ANd OThER PAyABLEs

Accruals 982,483 568,794

Leave Pay Accrual 430,129 296,554

Total 1,412,613 865,349

Trade and other payables are non-interest bearing and have an average term of 7 - 30 days.

6. PROVIsIONs

Salary and related expense provision

Opening balance 346,002 -

Utilisation/Amounts reversed during the year

(346,002) -

Provisions made during the year

824,933 346,002

Closing balance 824,933 346,002

7. cONdITIONAL GRANTs

Opening balance 17,875,708 1,190,459

Add: current year receipts 1,891,684 24,627,049

Less: Revenue recognised (2,460,763) (8,135,984)

Add: Interest received 613,038 267,760

Less: Interest recognised (2,509) (73,576)

Closing balance 17,917,159 17,875,708

Total Conditional Grants 17,917,159 17,875,708

Analysis for financial reporting purposes:

Current portion 17,917,159 17,875,708

73


8. FINANcE LEAsE LIABILITy

Finance leases relate to rental agreements between the Department or Arts and Culture/Nelson Mandela Museum and Technologies Acceptances to lease two Alcatel Omni VCX office telephones and two Xerox photocopiers.

2012

Minimum Lease Payment

Future Finance Charges

Present value of minimum

lease payments

Amounts payable under finance leases

Within one year 72,745 13,028 59,717

In the second to fifth year inclusive

117,751 9,030 108,720

After five years - - -

190,495 22,058 168,437

Less: Amount due for settlement within 12 months

-59,717

108,720

The lease terms range between 3 and 5 years and the average effective borrowing rate is 12%. Interest rates are determined on inception. No arrangements have been entered into for contingent rent.

2011

MinimumLeasePayment

FutureFinanceCharges

Presentvalue of minimum

lease payments

Amounts payable under finance leases

Within one year 103,926 18,125 85,800

In the second to fifth year inclusive

188,401 21,834 166,568

After five years - - -

292,327 39,959 252,368

Less: Amount due for settlement within 12 months

-85,800

166,568

Theleasetermsrangebetween3and5yearsandtheaverageeffectiveborrowingrateis12%.Interestratesaredeterminedoninception.No arrangements have been entered into for contingent rent.

9. AccuMuLATEd suRPLus/(dEFIcIT)

Balance at the beginning of the year

9,291,620 10,855,532


Balance at the end of the year

6,431,907 9,291,620

74



31 MARch 2012

31 March 2012 31 March 2011

R R

10. sALE OF GOOds

Book sales 3,497 4,091

Qunu craft 28,884 15,597

Total 32,381 19,688

11. TRANsFERs ANd suBsIdIEs REcEIVEd

National Departments 16,630,000 15,654,000

Project funds 2,447,542 8,135,984

Total 19,077,542 23,789,984

12. GIFTs, sPONsORshIPs ANd dONATIONs

REcEIVEd

Annexure1 56,146 15,618

13. OThER INcOME

Qunu rentals 712,371 669,563

Total 712,371 669,563

14. AdMINIsTRATIVE ExPENsEs

Professional fees 217,403 412,965

Entertainment (10,420) 21,700

Stationery and printing 184,078 230,090

Bank charges 52,629 51,810

Cleaning 705,402 565,583

Insurance 202,731 206,041

Internet - 1,648

Licenses 47,248 30,409

Recruitment expenses 44,058 183,168

Telelphone and postage 694,976 607,083

Training and staff development 161,703 411,098

Subscriptions 32,026 54,677

Legal fees 5,100 -

Staff welfare 26,002 17,653

Workmens compensation - 751

Total 2,362,938 2,794,677

75



31 MARch 2012

31 March 2012 31 March 2011

R R

15. sTAFF cOsTs

Wages and salaries 7,284,122 6,318,914

- Basic salaries 4,572,805 3,934,748

- Other non-pensionable allowance

- -

- Temporary staff 40,109 800

Senior Management emoluments

2,671,209 2,383,366

Defined contribution plan expense

71,040 72,869

Social contributions (Employer’s contributions)

278,012 268,537

- Medical 149,215 149,247

- UIF 57,419 62,999

- SDL 71,379 56,291

Total 7,633,174 6,660,320

16. AudIT FEEs 1,138,277 1,315,561

Statutory Audit 1,138,277 1,315,561

17. OThER OPERATING ExPENsEs

Consultants, contractors and special services

479,642 336,165

Equipment items expensed as per entity policy

133,324 106,311

Research Costs 203,984 225,431

Maintenance, repairs and running costs

546,944 523,116

- Property and buildings 246,705 221,600

- Machinery and Equipment 121,971 150,075

- Other maintenance, repairs and running costs

178,268 151,441

Depreciation 1,522,996 1,466,651

Exibition cost 1,822,754 7,166,286

Transportation and storage costs

179,070

General Expenses - unallocated expense

130,691 -

Travel and subsistence 3,517,694 2,229,862

Advertising and promotions 1,182,941 1,763,520

Stock loss 3,559

Functions and catering 284,112 184,476

Security 1,646,331 1,309,651

Total 11,654,041 15,311,470

76



31 MARch 2012

31 March 2012 31 March 2011

R R

18. FINANcE INcOME

Interest on

- Cash and bank deposits 191,978 65,861

Total 191,978 65,861

19. FINANcE cOsTs

Interest on

- Finance Lease 18,381 9,179

- Other interest 38,896 -

Total 57,277 9,179

20. cAsh GENERATEd FROM/

(uTILIsEd IN) OPERATIONs

Surplus/(Deficit) for the year

(2,859,713) (1,563,914)

Interest received (191,978) (65,861)

Interest paid 57,277 9,179

Non-cash movements/working capital changes

2,526,065 845,831

Depreciation 1,522,996 1,466,651

Increase/(Decrease) in payables

547,264 (969,830)

Increase/(Decrease) in provisions

478,931 346,002

(Increase)/Decrease in receivables

(99,145) -

(Increase)/Decrease in inventories

76,019 3,009

Net cash flows from operating activities

(468,349) (774,763)

77



31 MARch 2012

31 March 2012 31 March 2011

R R

21. NET cAsh INFLOws /

OuTFLOws FROM OPERATING AcTIVITIEs

Cash receipts from customers 19,977,585 24,494,854

Cash payments to suppliers and employees

(20,445,934) (25,269,617)

Cash generated from/(utilised in) operations

(468,349) (774,763)

Interest received 191,978 65,861

Interest (paid) (57,277) (9,179)

Net cash inflows/ outflows from operating

activities (333,648) (718,081)

22. NET cAsh FLOws FROM

INVEsTING AcTIVITIEs

Acquisition of:

Property, plant and equipment (1,871,227) (1,413,550)

Net cash flows from investing activities

(1,871,227) (1,413,550)

23. NET cAsh FLOws FROM

FINANcING AcTIVITIEs

Increase/(decrease) in Non-Current Liabilities:

Conditional Grants 41,451 16,685,249

Finance Leases (83,931) (183,500)

Net cash flow financing activities

(42,480) 16,501,749

78



31 MARch 2012

31 March 2012 31 March 2011

R R

24. REcONcILIATION OF BudGET

suRPLus/dEFIcIT wITh sTATEMENT

OF FINANcIAL PERFORMANcE

Net surplus/(deficit) per Statement of Financial

Performance (2,859,713) (1,563,913)

Adjusted for:

Transfers and subsidies received (SPR)

(2,447,542) (8,135,984)

Other income (SPR) (283,458) (187,430)

Cost of sales 84,424 33,420

Administrative Expenses (467,841) 96,541

Staff cost (784,393) (912,632)

Audit fees 971,977 1,161,441

Other operating expenses 4,006,196 7,848,853

Finance income (191,978) (65,861)

Finance cost 57,277 9,179

Net surplus/(deficit) per approved budget

(1,915,051) (1,716,385)

25. uNAuThORIsEd, IRREGuLAR, wAsTEFuL & FRuITLEss ExPENdITuREThe tender process was not followed in enlisting the services of a travel agent (Swift Travel and Tours) by the Nelson Mandela Museum . Refer to Annexure 3 for detail.

26. sENIOR MANAGEMENT EMOLuMENTsRefer to Annexure 4 for detail.

27. RELATEd PARTIEsNorelatedpartytransactionstookplaceduringtheperiodunderreview

Compensation of Key Management PersonnelRefertoAnnexure4fordetails.

79



31 MARch 2012

28. RIsK MANAGEMENT “Theentity’sactivitiesexposeittoavarietyoffinancialrisks:marketrisk(including,fairvalueinterestraterisk,cashflowinterestrateriskandpricerisk)andliquidityrisk.” Corporateservicesidentifiesandevaluatesfinancialriskandhedgestheserisksincloseco-operationwiththemuseum.Riskmanagementiscarriedoutbythecorporateservicesdepartmentunderpoliciesaprovedbythemuseumcouncil.Thecouncilprovideswrittenprinciplesforoverallriskmanagement,aswellaswrittenpoliciescoveringspecificareas. Liquidity risk Theentity’srisktoliquidityisaresultofthefundsavailabletocoverfuturecommitments.Theentitymanagesliquidityriskthroughanongoingreviewoffuturecommitmentsandcreditfacilities. Thetablebelowanalysestheentity’sfinancialliabilitiesandnet-settledderivativefinancialliabilitiesintorelevantmaturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amountsdisclosedinthetablearethecontractualundiscountedcashflows.Balancesduewithin12monthsequaltheircarryingbalancesastheimpactofdiscountingisnotsignificant. At31March2011 Lessthan1year Between1and2years Between2and5years Over5years FinanceLease 85800 166568 - -TradeandOtherPayables 865349- - - At31March2012 Lessthan1year Between1and2years Between2and5years Over5years

FinanceLease 59717 108720 - -TradeandOtherPayables 1568221 - - -

Market Risk Theentity’sactivitiesexposeitprimarilytotherisksoffluctuationsininterestrates. Interestrateriskreferstotheriskthatthefairvalueoffuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates. Marketriskexposuresaremeasuredusingsensitivityanalysis.Asensitivityanalysisshowshowsurplus,and/ornetassets,wouldhavebeenaffectedbychangesintherelevantriskvariablethatwerereasonablypossibleatthereporting date. Theentity’sinterestrateprofileconsistsoffixedandfloatingratebankbalanceswhichexposestheentitytofairvalueinterestrateriskandcashflowinterestrateriskandcanbesummarisedasfollows: Interest rate sensitivity analysis Thesensitivityanalysisbelowhasbeendeterminedbasedonfinancialinstrumentsexposuretointerestratesatreportingdate.Forfloatingrateinstruments,theanalysisispreparedassumingtheamountoftheinstrumentoutstandingatthereportingdatewasoutstandingforthewholeyear. Thebasispointsincreasesordecreases,asdetailedinthetablebelow,weredeterminedbymanagementandrepresent management’s assessment of the reasonably possible change in interest rates. Apositivenumberbelowindicatesanincreaseinsurplus.Anegativenumberbelowindicatesadecreaseinsurplus.

80



31 MARch 2012

As the entity does not have any instruments that effect net assets directly, the disclosure only indicates the effect of the change in interest rates on surplus. Therewerenochangesinthemethodsandassumptionsusedinpreparingthesensitivityanalysisfromoneyeartothenext.

2012 2011

Increase (decrease) in interest rates

The estimated increase (decrease) in basis points 50 50

Effect on surplus 104,663 115,900

Financial risk management objectives and policiesTheentity’sprincipalfinancial liabilitiescomprise tradeandotherpayablesandfinance lease liabilitiy.Themainpurposeofthesefinancialliabilitiesistoraisefinancefortheentity’soperations.Theentityhasafinancialassetsintheformofcashandshort-termdeposits,whicharisedirectlyfromitsoperations.

Classification of Financial Instruments

2012

Loans and Receivables Financial Liability at Amortised Cost

Total

Assets

Cashandcashequivalents 20,932,644 - 20,932,644

Liabilities

Trade and other payables - 1,412,613 1,412,613

Financeleaseliability-currentportion

- 59,717 59,717

20,932,644 1,472,330 22,404,974

2011

Loans and Receivables Financial Liability at Amortised Cost

Total

Assets

Cashandcashequivalents 23,179,998 - 23,179,998

Liabilities

Trade and other payables - 865,349 865,349

Financeleaseliability-currentportion

- 85,800 85,800

23,179,998 951,149 24,131,147

29. GOING cONcERN Thefinancialstatementshavebeenpreparedonthegoingconcernbasisbasedontheassumptionthatfundswillbeavailabletofinancefutureoperationsandthattherealisationofassetsandsettlementofliabilities,commitmentsandobligationswilloccurintheordinarycourseofbusinessinthenearfuture.

81



31 MARch 2012

30. POsT BALANcE shEET EVENTs Therewere no events identified after balance sheet date that require adjustment or disclosure in the financialstatements.

31. EMPLOyEE BENEFIT INFORMATIONTheentitycontributestotheOmedOrionProvidentFund,adefinedcontributionplan.ThisfundhasbeenregisteredandgovernedunderthePensionFundAct,1956asamended. For theperiodending31March2012, themonthlycontributions towardstheProvidentFundareaminimumof7.5%oftheemployee’sbasicsalary,whichiscalculatedasthecosttocompanyanda7.5%iscontributedbytheemployer.Theemployeereservestherighttocontributealargerpercentageasandwhenhe/shesodecides. The contributions of R 71,039.85 (31 March 2011: R 197 275) were expensed in the current year.

32. LOANs ANd REcEIVABLEs Staff loans are composed of: Sundry debtors 91,921

StaffLoans 7,223

Total 99,145

82


APPENdIx 1dETAILEd sTATEMENT OF FINANcIAL PERFORMANcE

FOR ThE yEAR ENdEd 31 MARch 2012

31 March 2012 31 March 2011

R R

REVENUE

Sales 32,381 19,688

Governmentgrant 16,630,000 15,654,000

ConditionalGrantRevenue 2,447,542 8,135,984

Donationsreceived 56,146 15,618

SundryIncome 712,371 669,563

TOTAL REVENUE 19,878,440 24,494,854

LESS: EXPENDITURE

Cost of sales 84,424 33,420

Administrative Expenses 2,362,938 2,794,677

BankCharges 52,629 51,810

Cellphones 480,353 423,222

Cleaning 705,402 565,583

CourierCharges 25,431 50,075

Functions&Catering (10,420) 21,700

Insurance 202,731 206,041

Internet - 1,648

Licences 47,248 30,409

PrintingandStationery 184,078 230,090

Professionalfees 222,503 412,965

Postboxrental 304 304

Recruitmentexpenses 44,058 183,168

Workmen'scompensation - 751

StaffTrainingandwelfare 187,705 428,751

Subscriptions 32,026 54,677

Telephone&Fax 188,888 133,482

Staff cost 7,633,174 6,660,321

CasualLabour 40,109 800

Salariesandwages 7,244,014 6,254,548

UIF 57,419 56,291

Skillsdevelopmentlevy 71,379 126,566

Pension 71,040 72,869

Medical Aid 149,215 149,247

Audit fees 1,138,277 1,315,561

Statutory Audit 1,138,277 1,315,561

83


APPENdIx 1 - cONTINuEddETAILEd sTATEMENT OF FINANcIAL PERFORMANcE

FOR ThE yEAR ENdEd 31 MARch 2012

31 March 2012 31 March 2011

R R

Other operating expenses 11,654,041 15,311,470

MuseumAdvert.&Prom. 1,182,941 1,763,520

ComputerExpenses 6,550 51,714

ConsultingfeesMuseum 463,742 270,722

ConsultingfeesQunuCraft 15,900 65,443

Depreciation 1,522,996 1,466,651

Counciltravelandaccommodation 592,050 9,392

MuseumEquip.Hire 20,484 -

Exhibitionexpenses 1,802,270 7,166,286

MuseumFunction&Catering 284,112 184,476

LeasingCharges - (0)

MotorVehicle-Petrol&Oil 214,264 115,893

MotorVehicle-Repairs&Maintenance 171,718 98,219

QunuCraftMotorVehicleFuel&Oil - 2,579

Buildings 246,705 221,600

Equipment 121,971 150,075

QunuCraftEquip.Repairs - 1,509

Replacements 133,324 106,311

ResearchandDevelopment 203,984 225,431

Securityexpenses 1,646,331 1,309,651

Travel-Local 2,683,994 2,087,811

GeneralExpenses 130,691 -

QunuCraftTravel&Accom. 27,386 14,188

Transportation 4,800 -

Transportation and Storage 174,270 -

StockLoss 3,559 -

TOTAL EXPENDITURE 22,872,854 26,115,448

Financeincome 191,978 65,861

Less:Financecost (57,277) (9,179)

SURPLUS/(DEFICIT) FOR THE YEAR (2,859,713) (1,563,913)

84


ANNExuRE 1sTATEMENT OF GIFTs, dONATIONs ANd

sPONsORshIPs REcEIVEd

12. sTATEMENT OF GIFTs, dONATIONs ANd sPONsORshIPs REcEIVEd31 March 2012 31 March 2011

Name of Donor Nature of gift,

donation or sponsorship

R R

In Cash 56,146 8,504

Nelson Mandela Foundation

Donation 50,000 -

VariousDonation(viadonationsboxessituatedwithin

Museum) 6,146 8,504

Total 56,146 8,504

85


ANNExuRE 2 sTATEMENT OF LOANs

Note 4 Statement of loans

Local Name 31 March 2012 31 March 2011

Other loans R R

Employeeloans 7,223 -

Total Loans 7,223 -

86


ANNExuRE 3sTATEMENT OF uNAuThORIsEd, IRREGuLAR,

wAsTEFuL & FRuITLEss ExPENdITuRE

31 March 2012 31 March 2011

R R

Unauthorised expenditure

Reconciliation of unauthorised expenditure

Opening balance - -

Unauthorisedexpenditure–currentyear

- -

UnauthorisedexpenditureapprovedbyParliament/Legislature

- -

Transfer to receivables for recovery (notapproved)

- -

Unauthorisedexpenditureawaitingauthorisation

- -

TOTAL - -

Analysis of Current Unauthorised expenditure

Incident Disciplinarystepstaken/criminalproceedings

None in current year

Fruitless & Wasteful Expenditure

Reconciliation of fruitless and wastefulexpenditure

Opening balance - -

Fruitlessandwastefulexpenditure–current year

- -

Fruitlessandwastefulexpenditurecondoned

- -

Transfer to receivables for recovery - -

Fruitlessandwastefulexpenditureawaitingcondonement

- -

TOTAL - -

87


ANNExuRE 3 - cONTINuEdsTATEMENT OF uNAuThORIsEd, IRREGuLAR,

wAsTEFuL & FRuITLEss ExPENdITuRE

31 March 2012 31 March 2011

R R

Analysis of Current Fruitless and wasteful expenditure

IncidentDisciplinarystepstaken/criminal

proceedings

None None

Irregular Expenditure

Reconciliation of irregular expenditure

Opening balance 13 503 639 8 665 830

Irregularexpenditure–currentyear

2 741 537 4 837 809

Irregularexpenditurecondoned - -

Irregularexpenditureawaitingcondonement

(16 245 176) (13 503 639)

Total - -

AnalysisofCurrentirregularexpenditure

Incident Disciplinarystepstaken/criminalproceedings

A total amount of R 2 741 537(2010/11 – R 6 034 496) relating to payments made to Swift Travel and Tours in Non-compliance with SCM Policy Provisions regarding Invitation of Tender.

ApplicationforcondonementofIrregularexpenditurehasbeenmadetoNationalTreasurythroughDAC.TenderProcesshassincebeenfollowedandaServiceProviderappointedon4thDecember2011.

A total amount of R nil (2010/11 – R 7 469 143) relating to Non-compliance with 80-20 evaluation requirements of Procurement quotations for transactions falling between R 30 000 and R 500 000.

AnapplicationforcondonementofIrregularexpenditurehasbeenmadetoNationalTreasurythroughDAC. Aformuladriventemplatehas been developed and implemented by the Museum

88


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Bunga Building and Qunu

Corner Owen Str. & Nelson Mandela Dr.

P.O. Box 52808 | Mthatha | 5099

Tell: 047 532 5110 | Fax: 047 532 3345

www.mandelamuseum.org.za

An agency of TheDepartmentofArtsandculture

Documents

NELSON MANDELA ANNUAL REPORT 2011/2012 TABLE OF … · The Nelson Mandela Museum is located in the authentic landscape of Mr Nelson Mandela’s childhood and retirement. It provides