Portfolio Budget Statements - NATIONAL MUSEUM of AUSTRALIA

NATIONAL MUSEUM OF AUSTRALIA

Section 1: Entity overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The National Museum of Australia (NMA) brings to life the rich and diverse stories of the nation through compelling objects, ideas and programmes. The NMA has stewardship of the National Historical Collection; creates exhibitions and other public programmes on Australia’s past, present and future; contributes to research on Australian history; and undertakes commercial activities in support of these functions. All of this is mandated under the National Museum of Australia Act 1980.

The NMA’s mission is to promote an understanding of Australia’s history and an awareness of future possibilities by: • developing, preserving, digitising and exhibiting a significant national collection • taking a leadership role in research and scholarship • engaging and providing access for audiences nationally and internationally • delivering innovative programmes.

The NMA’s four-year strategic plan establishes that the NMA will: • lead the research, documentation and expression of the nation’s history through programmes committed to organisational excellence and innovation • develop, manage and preserve the National Historical Collection and other NMA collections to promote public access and engagement • establish strong, enduring relationships with community interests and institutional partners that promote public attachment and involvement in the NMA’s work • deliver creative, innovative exhibitions and related content programmes that will attract national and international audiences to the NMA, onsite and online • maximise the potential of the NMA’s people, assets and financial resources to deliver efficient and effective learning experiences for online audiences and physical visitors to our sites.

The NMA’s focus in 2015–16 will be to: • maximise service delivery through efficient use of financial and human resources • embrace new technologies to deliver services to regional and remote areas across the country as well as international audiences

165 National Museum of Australia

• implement a shared-services delivery model for back-of-house services to enable efficient business delivery • focus on building own-source revenue and fostering partnerships with philanthropic enterprises • expand the NMA’s platform of digitisation initiatives, particularly in the sector of collection access and online engagement • extend areas of the NMA’s business where it currently delivers best practice standards, including touring exhibitions, collection development and research • extend the NMA’s international profile through expanding its current touring programme, and exhibition exchanges throughout Asia and Europe.

1.2 ENTITY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources.

Table 1.1: Entity resource statement—Budget estimates for 2015–16 as at Budget May 2015 Estimate of Actual prior year available amounts Proposed Total appropriation available in at Budget estimate 2014–15 2015–16 2015–16 2015–16 Source $’000 $’000 $’000 $’000 Opening balance/reserves at bank 39,682 39,682 – 39,682 REVENUE FROM GOVERNMENT Ordinary annual services(a) Outcome 1 41,590 – 41,441 41,441 Total ordinary annual services 41,590 – 41,441 41,441 Other services(b) Non-operating 1,964 – 1,944 1,944 Total other services 1,964 – 1,944 1,944 Total annual appropriations 43,554 – 43,385 43,385 Total funds from government 83,236 39,682 43,385 83,067 FUNDS FROM OTHER SOURCES Interest 1,630 – 1,552 1,552 Sale of goods and services 2,560 – 2,519 2,519 Other 500 – 200 200 Total 4,690 – 4,271 4,271 Total net resourcing for entity 87,926 39,682 47,656 87,338 All figures are GST exclusive. The NMA is not directly appropriated as it is a corporate Commonwealth entity. Appropriations are made to the Attorney-General’s Department which are then paid to the NMA and are considered ‘departmental’ for all purposes. (a) Appropriation Bill (No. 1) 2015–16. (b) Appropriation Bill (No. 2) 2015–16.

1.3 BUDGET MEASURES

Measures announced in the 2014–15 Mid-Year Economic and Fiscal Outlook (MYEFO) and other measures not previously reported in a portfolio statement are summarised in Part 2 of Table 1.2.

Table 1.2: Entity 2015–16 Budget measures Part 1: Measures announced since the 2014–15 MYEFO The NMA has no new post-MYEFO measures.

Part 2: MYEFO measures and other measures not previously reported in a portfolio statement 2014–15 2015–16 2016–17 2017–18 2018–19 Programme $’000 $’000 $’000 $’000 $’000 Measures Smaller Government—collection agencies—consolidation of back office functions(a) 1.1 Departmental expenses – (36) (272) (272) (272) Total – (36) (272) (272) (272) Prepared on a Government Finance Statistics (fiscal) basis. (a) This measure was originally announced in the 2014–15 Budget (see page 63 of Budget Paper No. 2 2014–15 for further information).

Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programmes are the primary vehicle by which government entities achieve the intended results of their outcome statements. Entities are required to identify the programmes that contribute to government outcomes over the budget and forward years.

The NMA’s outcome is described below together with its related programme, specifying the performance indicators and targets used to assess and monitor the performance of the NMA in achieving government outcomes.

Outcome 1: Increased awareness and understanding of Australia’s history and culture by managing the National Museum’s collections and providing access through public programs and exhibitions

Outcome 1 strategy Over the course of the next four years, the NMA will: • take a lead role in researching, documenting and expressing the nation’s history, and embracing innovative and contemporary approaches to draw public attention to our work • develop, manage and preserve the NMA’s collections, diversify the nation’s history and bring it to life through storytelling and custodianship • build audiences and communities of interest through strong education, public and membership programmes • deliver creative and innovative exhibitions that drive visitation nationally and internationally • create an organisational culture that maximises the potential of our people, assets and financial resources to deliver optimal outcomes.

Outcome 1 expense statement Table 2.1 provides an overview of the total expenses for Outcome 1, by programme.

Table 2.1: Budgeted expenses for Outcome 1 2014–15 Estimated 2015–16 Outcome 1: Increased awareness and understanding of Australia’s actual Estimated history and culture by managing the National Museum’s collections expenses expenses and providing access through public programs and exhibitions $’000 $’000 Programme 1.1: Collection Management, Research, Exhibitions and Programs Revenue from government Ordinary annual services (Appropriation Bill No. 1) 41,590 41,441 Revenues from other independent sources 4,690 4,271 Expenses not requiring appropriation in the budget year(a) 1,477 1,127 Total expenses for Outcome 1 47,757 46,839

2014–15 2015–16 Average staffing level (number) 218 213 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change. (a) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses for heritage and cultural assets.

Contributions to Outcome 1

Programme 1.1: Collection Management, Research, Exhibitions and Programs

Programme 1.1 objective • Bring the stories of Australia to life through innovative exhibitions and programmes. • Develop, manage and preserve the National Historical Collection and enable access through online engagement. • Establish meaningful and long-lived local, national and international partnerships. • Create participatory programmes to build relationships and engage with audiences. • Deliver an active research and scholarship programme that underpins the NMA’s programmes. • Integrate business planning, systems and reporting to maximum performance and accountability.

Programme 1.1 expenses 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 Annual departmental expenses Departmental item 46,280 45,712 45,084 45,340 45,582 Expenses not requiring appropriation in the budget year(a) 1,477 1,127 1,160 1,195 1,206 Total programme expenses 47,757 46,839 46,244 46,535 46,788 (a) Expenses not requiring appropriation in the budget year are made up of depreciation expenses and amortisation expenses for heritage and cultural assets.

Programme 1.1 deliverables • Increase visitation to the NMA site through creating a unique visitor experience. • Develop and deliver an active programme of temporary exhibitions that provide stimulating content to audiences. • Commence redevelopment of the Gallery of First Australians Welcome Space. • Redevelop the forecourt and main hall of the NMA, which will revitalise the entry experience for visitors. • Open the new K-Space gallery. • Deliver educational and public programmes that promote lifelong learning. • Establish partnerships with international organisations. • Deliver a suite of travelling exhibitions that tell the Australian story nationally and internationally. • Expand the NMA’s digital strategy, including in the sectors of online programme delivery, social media, mobile device services and website content. • Increase own-source revenue through commercial opportunities, sponsorship, fundraising and membership programmes.

2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward Deliverables actual Budget estimate estimate estimate Heritage and cultural assets acquisitions budget ($’000) 1,964 1,944 1,947 1,972 1,991 Redevelop permanent galleries 2 4 4 3 2 Deliver temporary gallery programmes 3 4 6 6 6 Deliver travelling exhibitions 3 2 3 3 3 Deliver regional, national and international partnerships 2 2 2 2 2

Programme 1.1 key performance indicators 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward Key performance indicators actual Budget estimate estimate estimate Visitor interactions Total number of visits to the organisation 690,627 771,029 918,115 1,063,666 1,193,642 Total number of visits to the organisation’s website 1,299,000 1,390,000 1,450,000 1,500,000 1,540,000 Total number of onsite visits by students as part of an organised educational group 90,275 91,050 92,850 99,125 99,860 Participation in public and school programmes Number of people participating in public programmes 33,000 37,000 38,000 46,000 46,300 Number of students participating in school programmes 90,275 92,050 93,850 100,125 100,860 Quantity of school learning programmes delivered Number of organised programmes delivered onsite 550 1,610 1,630 1,650 1,670 Number of programme packages available online 5 6 6 7 8 Number of educational institutions participating in organised school learning programmes 1,616 1,620 1,625 1,630 1,635 Visitor satisfaction Percentage of visitors that were satisfied or very satisfied with their visit 85% 95% 95% 95% 95% Programme survey rating (by teachers) Percentage of teachers reporting overall positive experience 90% 95% 95% 95% 95% Percentage of teachers reporting relevance to the classroom curriculum 90% 95% 95% 95% 95% Expenditure mix Expenditure on collection development (as a % of total expenditure) 14% 14% 15% 15% 15% Expenditure on other capital items (as a % of total expenditure) 14% 17% 15% 15% 14% Expenditure on other (i.e. non- collection development) labour costs (as a % of total expenditure) 32% 30% 30% 29% 29% Other expenses (as a % of total expenditure) 43% 42% 44% 44% 44%

Programme 1.1 key performance indicators (continued) 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward Key performance indicators actual Budget estimate estimate estimate Collection management and access Number of acquisitions (made in the reporting period) 650 650 650 650 650 Total number of objects accessioned (in the reporting period) 750 750 750 750 750 % of the total collection available to the public 48% 49% 50% 51% 52% % of the total collection available to the public online 43% 44% 45% 46% 47% % of the total collection available to the public on display 4% 4% 4% 4% 4% % of the total collection available to the public on tour 1% 1% 1% 1% 1% % of the total collection digitised 87% 88% 89% 90% 91%

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, and government Indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between years The NMA has no administered funds.

3.1.2 Special accounts The NMA has no special accounts.

3.1.3 Australian Government Indigenous expenditure Table 3.1.3: Australian Government Indigenous expenditure (AGIE) Approp Approp Special Total Bill No. 1 Bill No. 2 approp approp Other Total $’000 $’000 $’000 $’000 $’000 $’000 Programme Outcome 1 Departmental 2015–16 2,638 – – 2,638 – 2,638 1.1 Departmental 2014–15 2,673 – – 2,673 – 2,673 1.1 Total AGIE 2015–16 2,638 – – 2,638 – 2,638 Total AGIE 2014–15 2,673 – – 2,673 – 2,673

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in entity resourcing and financial statements There is no material difference between the entity resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements Comprehensive income statement The NMA anticipates total budgeted revenue to decrease by $0.568m from $46.280m in 2014–15 to $45.712m in 2015–16. The decrease reflects a reduction in revenue from government as a result of government savings measures announced in the 2014–15 Budget; a decrease in interest earnings due to increased use of cash reserves to fund capital projects; and lower revenue from exhibitions, as no entrance fee will be charged for the NMA’s major temporary exhibition for 2015–16.

Total expenses show a reduction of $0.918m from $47.757m in 2014–15 to $46.839m in 2015–16. The decrease in employee benefits is due to a reduction in staffing numbers resulting from the transfer of NMA back office functions to consolidated shared services with other collection agencies. Supplier expenses do not significantly change, and depreciation and amortisation expenses will increase by $0.133m, reflecting an increased replacement cost of assets.

Budgeted departmental balance sheet The NMA’s net assets are budgeted to increase by $0.817m. The increase is primarily due to a reduction in employee provisions and an increase in non-financial asset acquisitions, partially offset by a reduction in other investments.

Departmental capital budget statement The departmental capital budget statement shows total capital expenditure of $11.863m funded from departmental resources of $9.919m and an equity injection of $1.944m from the government for the acquisition of heritage and cultural assets.

The proposed increase in the capital budget reflects planned gallery redevelopments and the ongoing replacement of assets as they reach the end of their useful lives.

3.2.3 Budgeted financial statements tables Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 EXPENSES Employee benefits 21,796 21,099 19,993 20,129 20,257 Suppliers 17,617 17,263 17,741 17,862 17,975 Depreciation and amortisation 8,344 8,477 8,510 8,544 8,556 Total expenses 47,757 46,839 46,244 46,535 46,788 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 2,560 2,519 2,534 2,584 2,614 Interest 1,630 1,552 1,512 1,472 1,438 Other 500 200 200 200 200 Total own-source revenue 4,690 4,271 4,246 4,256 4,252 Total own-source income 4,690 4,271 4,246 4,256 4,252 Net cost of (contribution by) services 43,067 42,568 41,998 42,279 42,536 Revenue from government 41,590 41,441 40,838 41,084 41,330 Surplus (deficit) attributable to the Australian Government (1,477) (1,127) (1,160) (1,195) (1,206) OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus – – – – – Total other comprehensive income – – – – – Total comprehensive income (loss) (1,477) (1,127) (1,160) (1,195) (1,206) Total comprehensive income (loss) attributable to the Australian Government (1,477) (1,127) (1,160) (1,195) (1,206)

Note: Impact of net cash appropriation arrangements 2014–15 2015–16 2016–17 2017–18 2018–19 $’000 $’000 $’000 $’000 $’000 Total comprehensive income (loss) excluding heritage and cultural depreciation expenses previously funded through revenue appropriations (383) – – – – Less heritage and cultural depreciation expenses previously funded through revenue appropriations 1,094 1,127 1,160 1,195 1,206 Total comprehensive income (loss) as per the statement of comprehensive income (1,477) (1,127) (1,160) (1,195) (1,206) Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 ASSETS Financial assets Cash and cash equivalents 1,182 1,033 1,037 1,037 1,037 Trade and other receivables 728 729 725 725 725 Other investments 38,500 35,500 33,800 32,800 31,800 Total financial assets 40,410 37,262 35,562 34,562 33,562 Non-financial assets Land and buildings 106,880 105,892 105,177 104,294 103,097 Property, plant and equipment 317,658 322,258 324,886 327,773 330,962 Intangibles 1,325 1,099 973 747 540 Inventories 559 559 559 559 559 Other non-financial assets 439 439 439 439 439 Total non-financial assets 426,861 430,247 432,034 433,812 435,597 Total assets 467,271 467,509 467,596 468,374 469,159 LIABILITIES Payables Suppliers 2,024 2,024 1,324 1,324 1,324 Other payables 132 132 132 132 132 Total payables 2,156 2,156 1,456 1,456 1,456 Provisions Employee provisions 6,197 5,618 5,618 5,619 5,619 Total provisions 6,197 5,618 5,618 5,619 5,619 Total liabilities 8,353 7,774 7,074 7,075 7,075 Net assets 458,918 459,735 460,522 461,299 462,084 EQUITY Parent entity interest Contributed equity 25,408 27,352 29,299 31,271 33,262 Reserves 172,666 172,666 172,666 172,666 172,666 Retained surplus (accumulated deficit) 260,844 259,717 258,557 257,362 256,156 Total parent entity interest 458,918 459,735 460,522 461,299 462,084 Total equity 458,918 459,735 460,522 461,299 462,084 Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity—summary of movement (budget year 2015–16) Asset Contributed Retained revaluation equity/ Total earnings reserve capital equity $’000 $’000 $’000 $’000 Opening balance as at 1 July 2015 Balance carried forward from previous period 260,844 172,666 25,408 458,918 Adjustment for changes in accounting policies – – – – Adjusted opening balance 260,844 172,666 25,408 458,918 Comprehensive income Surplus (deficit) for the period (1,127) – – (1,127) Total comprehensive income (1,127) – – (1,127) Transactions with owners Contributions by owners Equity injection—appropriation – – 1,944 1,944 Sub-total transactions with owners – – 1,944 1,944 Estimated closing balance as at 30 June 2016 259,717 172,666 27,352 459,735 Closing balance attributable to the Australian Government 259,717 172,666 27,352 459,735 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Appropriations 41,590 41,441 40,838 41,084 41,330 Sale of goods and rendering of services 2,881 2,562 2,551 2,433 2,448 Interest 1,676 1,404 1,424 1,472 1,438 Net GST received 2,920 2,811 2,864 2,860 – Other 900 300 300 300 300 Total cash received 49,967 48,518 47,977 48,149 45,516 Cash used Employees 22,231 21,715 19,671 19,725 19,820 Suppliers 17,629 17,221 18,792 18,214 18,346 Other 2,884 2,812 2,860 2,860 – Total cash used 42,744 41,748 41,323 40,799 38,166 Net cash from (used by) operating activities 7,223 6,770 6,654 7,350 7,350 INVESTING ACTIVITIES Cash received Investments 50,000 50,000 47,000 45,300 44,300 Total cash received 50,000 50,000 47,000 45,300 44,300 Cash used Purchase of property, plant and equipment 9,827 11,863 10,297 10,322 10,341 Investments 49,500 47,000 45,300 44,300 43,300 Total cash used 59,327 58,863 55,597 54,622 53,641 Net cash from (used by) investing activities (9,327) (8,863) (8,597) (9,322) (9,341) FINANCING ACTIVITIES Cash received Contributed equity 1,964 1,944 1,947 1,972 1,991 Total cash received 1,964 1,944 1,947 1,972 1,991 Net cash from (used by) financing activities 1,964 1,944 1,947 1,972 1,991 Net increase (decrease) in cash held (140) (149) 4 – – Cash and cash equivalents at the beginning of the reporting period 1,322 1,182 1,033 1,037 1,037 Cash and cash equivalents at the end of the reporting period 1,182 1,033 1,037 1,037 1,037 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement (for the period ended 30 June) 2014–15 2016–17 2017–18 2018–19 Estimated 2015–16 Forward Forward Forward actual Budget estimate estimate estimate $’000 $’000 $’000 $’000 $’000 NEW CAPITAL APPROPRIATIONS Equity injections—Bill 2 1,964 1,944 1,947 1,972 1,991 Total new capital appropriations 1,964 1,944 1,947 1,972 1,991 Provided for: Purchase of non-financial assets 1,964 1,944 1,947 1,972 1,991 Total items 1,964 1,944 1,947 1,972 1,991 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations(a) 1,964 1,944 1,947 1,972 1,991 Funded internally from departmental resources(b) 7,863 9,919 8,350 8,350 8,350 Total purchases of non-financial assets 9,827 11,863 10,297 10,322 10,341 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 9,827 11,863 10,297 10,322 10,341 Total cash used to acquire assets 9,827 11,863 10,297 10,322 10,341 Prepared on Australian Accounting Standards basis. (a) Includes both current Bill 2 and prior year Act 2, 4 and 6 appropriations and special capital appropriations. (b) May include annual and prior year appropriations, donations and contributions, gifts, internally developed assets, and proceeds from the sale of assets.

Table 3.2.6: Statement of asset movements (budget year 2015–16) Other property, Computer plant & Heritage software & Land Buildings equipment & cultural intangibles Total $’000 $’000 $’000 $’000 $’000 $’000 As at 1 July 2015 Gross book value 6,306 102,003 62,935 261,212 12,841 445,297 Accumulated depreciation/ (19,434 amortisation and impairment – (1,429) (5,583) (906) (11,516) ) Opening net book balance 6,306 100,574 57,352 260,306 1,325 425,863 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase—appropriation equity(a) – – – 1,944 – 1,944 By purchase—other – 527 9,101 91 200 9,919 Total additions – 527 9,101 2,035 200 11,863 Other movements Depreciation/amortisation expense – (1,515) (5,663) (873) (426) (8,477) Total other movements – (1,515) (5,663) (873) (426) (8,477) As at 30 June 2016 Gross book value 6,306 102,530 72,036 263,247 13,041 457,160 Accumulated depreciation/ (27,911 amortisation and impairment – (2,944) (11,246) (1,779) (11,942) ) Closing net book balance 6,306 99,586 60,790 261,468 1,099 429,249 Prepared on Australian Accounting Standards basis. (a) ‘Appropriation equity’ refers to equity injection appropriations provided through Appropriation Bill (No. 2) 2015–16, including collection development and acquisition budgets.

Estimated operating expenditure in income statement for heritage and cultural assets $’000 Operations and maintenance 3,150 Preservation and conservation 2,987 Total operating expenditure on heritage and cultural assets 6,137

3.2.4 Notes to the financial statements Basis of accounting The budgeted financial statements have been prepared on an accrual accounting basis, having regard to Statements of Accounting Concepts, and in accordance with the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

Revenue from government Amounts appropriated in Appropriation Bill (No. 1) are recognised as revenue. Appropriations for the departmental collection development and acquisition budget in Appropriation Bill (No. 2) are recognised as equity injections.

Employee expenses Employee expenses consist of salaries, leave entitlements, redundancy expenses, superannuation and non-salary benefits.

Supplier expenses Supplier expenses consist of administrative costs, travel expenses, exhibition expenses, property operating expenses, heritage and cultural expenses, legal expenses and other operational costs.

Cash and cash equivalents Cash and cash equivalents includes notes and coins held and deposits held at call with a bank or other financial institution.

Assets Assets are made up of cash, receivables, inventory, land and buildings, including leasehold improvements, heritage and cultural assets, intangibles and plant and equipment. All assets are held at fair value.

Liabilities Liabilities are made up of property lease provisions and amounts owed to creditors.

Employee provisions Employee provisions consist of unpaid employee salary and leave entitlements.