237 Jabu Ndlovu Street, Private Bag 9070, Pietermaritzburg 3200, South Africa Tel: +27 (0)33 345 1404 • Fax: +27 (0)33 345 0561 Website: http://www.nmsa.org.za PR221/2019 • ISBN: 978-0-621-47564-7
Photo Below: Justine Wintjes, a researcher in the Human Sciences department, recently published a paper in the museum’s journal Southern African Humanities, about a set of unusual early twentieth-century engraved cow horns. They were created by an unnamed African artist and depict imagery from the South African War (Object: accession number 1994.28.2, Pitt Rivers Museum, University of Oxford. Photo: J. Wintjes, 2010.)
Photo Opposite: The newly discovered Ceratogyrus Attonitifer spider. Credit: Dr Ian Enelbrecht Our mission
The KwaZulu-Natal Museum is dedicated to serving the people of South Africa by interpreting material evidence of the cultural and natural world, in order to increase knowledge, understanding and appreciation of the nation’s wealth of history and biodiversity.
Our vision
To position the KwaZulu-Natal Museum as a leading, inclusive and transformed heritage institution in South Africa.
Core Values
The KwaZulu-Natal Museum’s core values are: • Accountability: to foster a culture of accountability, learning and enlightenment for staff and stakeholders • Understanding and Respect: to increase tolerance, understanding and mutual respect among staff and the diverse elements of South African society • Professionalism and honesty: to be honest and professional in undertaking our duties and the execution of the Department’s mandate • Loyalty: to be loyal to the mandate given to the Museum by the Department and in addressing the government imperatives • Promote Ubuntu values: to promote a sense of cultural identity and worth by enabling people to attain knowledge and new perspectives regarding the history of humanity in general and the historical and cultural record of their own communities • Excellence: continuously strive to be a centre of excellence in our core duties and reputation • Responsiveness: to respond to the needs of our stakeholders with our best work in a timely manner TABLE OF CONTENTS
PART A: GENERAL INFORMATION
1.1.1 Council of Trustees 2 1.1.2 Honorary Associates 3 1.1.3 Museum Staff 4 - 9
1.2 Legislative and Other Mandates 11 1.3 Organisational Structure 12 1.4 Foreword by the Chairperson 13 -14 1.5 Directors Overview 15 - 16 1.6 Strategic Overview 17
PART B: PERFORMANCE INFORMATION
PROGRAMME 1: ADMINISTRATION 19 – 23 PROGRAMME 2: BUSINESS DEVELOPMENT 24 – 27 PROGRAMME 3: PUBLIC ENGAGEMENT 3.1 EXHIBITION 28 – 29 3.2 EDUCATION 30 – 35
PART C: HUMAN RESOURCE MANAGEMENT 36 – 38 1 Employment Equity 2 HIV/AIDS & Health Promotion Programmes 3 Labour Relations 4 Skills Development
PART D: GOVERNANCE 39 – 44 1 Introduction 2 Council 3 Risk Management 4 Internal Control Unit 5 Compliance with Laws and Regulations 6 Minimising Conflict of Interest 7 Code of Conduct 8 Health, Safety and Environment Issues 9 Social Responsibility
PART E: FINANCIAL INFORMATION 45 1 Report of the Audit and Risk Committee 2 Report of the Auditor General 3 Annual Financial Statements 3.1 Approval of the Financial Statements 3.2 Council members 3.3 Statement of Financial Position 3.4 Statement of Financial Performance 3.5 Statement of Change in Net Assets 3.6 Cash Flow Statement 3.7 Notes to the Annual Financial Statements
ANNUAL REPORT 2018-2019 1 Council of Trustees
Mazibuko, Prof NM (Chairperson) BA (UNIZULU), BA (Hons) (UNIZULU), MA (SocSci) (UN), PhD (Illinois), Dip (PR) Damelin) Stobie, Prof B (Deputy Chairperson) Bachelor of Commerce, Certificate in the Theory of Accountancy (UN) Chartered Accountant (S.A.) (Institute of C.A.s), Master of Accountancy (UN) Jivan, Mr U B.A, LLB (UKZN) Khorommbi, Mr TC Audiovisual Production Management, (RAU) Magaqa, Adv S BProc (UNITRA), LLB (Wits) Mhlongo, Ms N CA (SA), CTA (Honours Bcompt) (UNISA), BCom (UKZN) Musundwa, Ms S Masters (MA) in Media Theory and Practice (UCT), Honours in Economics (BCom) (UCT) BCom Degree (Economics & Finance) (UCT) Nkosi, Dr N Dip.PHC Ed. WITS, M.B.Ch.B. (UN) UB, B.Sc. UB, Lesotho and Swaziland Ramagoshi, Ms M Masters in PAAD (UP), BEd, BA (UL-Turfloop) Junior Secondary Teachers Certificate (Transvaal College of Education), Homecraft Teachers Certificate
Mazibuko, Prof NM Stobie, Prof B Jivan, Mr U Khorommbi, Mr TC
Magaqa, Adv S Ramagoshi Mrs M Musundwa, Ms S Nkosi Dr N Mhlongo Mrs N COUNCIL FOR THE PERIOD 01 APRIL – 31 AUGUST 2018
Mazibuko, Prof. N.M. (Chairperson) BA (UNIZUL), BA (Hons) (UNIZUL), MA (Soc.Sci) (UN), PhD (ILLINOIS), Dip (PR) (DAMELIN) Dantile, Mr. F. (Deputy Chairperson) BCom (University of Transkei), BA (Hons) (WSU), Dip (Business Management) (Executive Education), Dip (Labour law) (IDEC), Strategic Human Resources Management Programme (UCT), Directors Induction Programme (Wits Business School) Coovadia, Mr. D. B.Compt (Hons), CA (SA), RA, FIMC, CMC, FIAC, FCIS, FSAIM, BA (SA), PIA (SA), FIIASA CAT (UK), MInstD Magaqa, Adv. S. BProc (UNITRA), LLB (Wits) Makunga, Prof. N. BA (Hons) (Fort Hare), MA Clinical Psychology (Natal), D Litt et Phil (UNISA); Dip (Management Practice) (Isis College), Dip (General Nursing) (Natalspruit) Malapane, Dr. S. Doctor in Divinity (Honorary) (Wesleyan Theological Seminary), Project Management (Cert.), Professional Presentation Skills (Cert.) (CBM), Estate Agency (Cert.) (Estate Agency Affairs Board), Marketing (Cert.) Nkosi, Dr. N. Dip.PHC Ed. University of Witwatersrand, M.B.Ch.B. UN, B.Sc. University of Botswana, Lesotho and Swaziland Ranchod, Mr. K. Pr. Teachers Certificate, Pr. Teachers Diploma (Dower Training College), BA (UPE), B. Ed (Rhodes), MA in Education Planning, MA in Education Theory & Policy (Penn State University, USA), MA in Social Research (UJ)
2 ANNUAL REPORT 2018-2019 Honorary Associates of the Museum
Emeritus Directors
Dr JGH Londt – 2003
Honorary Keepers
Dr JGH Londt – 2003 Dr AJ Lambiris – 1991
Honorary Research Associates
Dr RM Miller – 1982 Dr DE van Dijk – 1982 Dr JC Poynton – 1982 Dr BH Lamoral – 1983 Mr PE Reavell – 1985 Mr D Green – 1988 Mr M Moon – 1988 Mr LE Schoeman – 1988 Mrs P Trafford – 1988 Dr JP Marais – 1990 Dr T Dikow – 2016 Dr C Thorp – 2018 Mrs M Cole (née Bursey) – 2003
Honorary Associates
Mr C Auret – 1983 Mrs S Henderson – 1983 Mrs R McGuire – 1983 Mrs J Stannard – 1985 Mr IJ Knight – 1992 Mr G Borthwick – 1983 Mr D Bundhoo – 1994 Mrs M Taylor – 1994 Ms M Manqele – 1995 Ms S Tshabalala – 1995 Dr R Maud – 1996 Mr E Ndlovu – 1997 Dr JD Plisko – 1998 Mrs VF Ward – 1998 Ms I Bornman – 2002 Mr J Huntly – 2002 Dr DA Barraclough – 2003
ANNUAL REPORT 2018-2019 3 Museum Staff
DIRECTORATE
Director: Mr LJ Maphasa AB (Earlham, USA), MSc (UCT)
Deputy Director: Mr SR Miya BA (Natal), AUDIS (Natal), BBibl (Hons) (UKZN)
Mr LJ Maphasa EDUCATION DEPARTMENT Mr SR Miya
Assistant Director: Mrs TS Ntombela BSc (UKZN), Post. Grad. Dip (UKZN)
Chief Education Officer (Outreach): Mrs G Kalika BSc (Rhodes), BSc (Hons) (UNISA)
Mrs TS Ntombela Mrs G Kalika Chief Education Officer (In-house): Mr D Jali BA (UDW), H.Dip.Ed. (UDW), B. Admin (Hons) (UDW), ABET Cert. (UNISA) Education Officer: Mr S Maphumulo Nat Dip (Tourism Mgt) (DIT), BA: Human & Social Studies (Comm. Dev.) (UNISA) Mr D Jali Mr S Maphumulo
Education Officer: Mr A Lukhozi BSc (UFH), Post. Grad. Cert. (Education) (UKZN)
Information Officer: Ms. BP Nene ND: (Tourism) DUT
Mr A Lukhozi Ms. BP Nene
Information Officer: Ms S Ngubane ND: (Eco-tourism Mgt) (DUT)
Information Officer: Mr T Sithole N6 Tourism (Applesbosch TVET College)
CORPORATE SERVICES DEPARTMENT Ms S Ngubane Mr T Sithole Finance and Administration Division
Executive Manager: Finance & Administration: Mr SE Dlamini ND: (Cost & Mgt Accounting) (MUT) Contract Finance Officer: Mr MH Mazibuko ACCA, B. Compt. (UNISA), BTech (Taxation) (DUT), Mr SE Dlamini Mr MH Mazibuko
4 ANNUAL REPORT 2018-2019 Museum Staff
Director’s Personal Assistant: Mrs NP Gumede Dip Office Admin (VARS. COLL), N6 Public Mgt (Umgungundlovu TVET College)
Switchboard Operator/Junior Clerk: Mrs LP Molefe Dip Office Admin (VARS. COLL)
Mrs NP Gumede Mrs LP Molefe
Chief Human Resource Officer: Mr LT Ntombela ND: (HRM) (DIT) (from 01 October 2018)
Finance and Administration Officer: Ms M Ndlovu ND: (Accounting) (DUT)
Mr LT Ntombela Ms M Ndlovu Contract IT Technician: Mr N Mhlongo Dip PC Support (VARS. COLL) (from 01 March 2018)
Human Resource Officer: Mrs LP Molefe Dip Office Admin (VARS. COLL) (from 1 September 2018)
Mr N Mhlongo
Contract SCM Officer: Ms VV Mncwabe BSc: Applied Mathematics & IT (UKZN), BSc (Hons) (UKZN) (from 01 February 2019)
Acting Switchboard Operator/Junior Clerk: Ms N Mathonsi N6 (Human Resource) (FET)
Ms VV Mncwabe LIBRARY Ms N Mathonsi
Chief Librarian: Mrs V Dlomo-Mtshare BSoc Sc (Natal), AUDIS (Natal), BBibl (Hons) (UKZN)
Assistant Librarian: Ms P Zondi ND: (Lib Info Studies) (DUT)
Mrs V Ms P Zondi Dlomo-Mtshare Library Assistant: Ms TC Makhaye
Contract Learners Resource Centre Officer: Mr N Molotsoane
Ms TC Makhaye Mr N Molotsoane
ANNUAL REPORT 2018-2019 5 Museum Staff
PUBLIC RELATIONS DIVISION PR/Marketing Executive: Mrs V Frank ND (Public Relations) (ML Sultan), Dip. (Marketing) (Varsity College)
Receptionist/Information Officer: Ms N Mathonsi N6 (Human Resource) (FET) Mrs V Frank Ms N Mathonsi Acting Receptionist/Information Officer: Mr M Maphanga Nat Dip (Eco-tourism Management) (DUT)
TECHNICAL DIVISION Chief Technical Officer: Mr R Maharaj Mr M Maphanga Mr R Maharaj
Technical Officer: Mr ES Rampersad N2 (Electrical Trade) (FET)
Technical Officer: Mr BG Zulu N2 (Electrical) (FET)
Mr ES Rampersad Mr BG Zulu
Senior Maintenance Officer: Mr R Mazibuko
Senior Maintenance Officer: Ms NI Xaba
Mr R Mazibuko Ms NI Xaba
Senior Maintenance Officer: Mrs SP Muthwa
Maintenance Officer: Mrs ED Zuma
Mrs SP Muthwa Mrs ED Zuma
Maintenance Officer: Mr RM Mthembu
Maintenance Officer: Ms SK Mncube
Mr RM Mthembu Ms SK Mncube
6 ANNUAL REPORT 2018-2019 Museum Staff
Maintenance Officer: Mrs EN Ndabezitha
Maintenance Officer: Ms MS Nzimande
Mrs EN Ndabezitha Ms MS Nzimande
Security Officer: Mr B Ndwandwe
Security Officer: Mr T Letele
Mr B Ndwandwe Mr T Letele
Security Officer: Mr J Mkhize
Temporary Security Officer: Mr Z Chiya
Mr J Mkhize HUMAN SCIENCES DEPARTMENT Mr Z Chiya Principal Curator: Dr G Blundell BA (WITS), (Hons) (WITS), MA (WITS), PhD (Uppsala University, Sweden) (from 02 April 2018)
Chief Curator: Dr GD Whitelaw BSc (Hons) (WITS), MSc (Archaeology) (WITS), PhD (WITS)
Dr G Blundell Dr GD Whitelaw
Curator: Mrs G Laue Bsc (Hons) (Wits), MSc (Archaeology) (Wits)
Collections Technician: Mr FM Munzhedzi BHCSc Heritage and Cultural Tourism (UP), BA Honours in Archaeology (VENDA)
Mrs G Laue Mr FM Munzhedzi
Research Technician: Ms D Tlhoaele BSc (Hons) (UCT)
Technical Assistant: Mr P Madonda Archives & Records Mgt Higher Cert. (UNISA)
Ms D Tlhoaele Mr P Madonda
ANNUAL REPORT 2018-2019 7 Museum Staff
Contract Research Assistant: Miss I Maree B Consumer Science (Interior Merchandise Retail Mgt) (UP), MA (Interior Design) (UP), MA (Ancient Languages and Culture Studies) (UP) (from 02 April 2018)
Miss I Maree NATURAL SCIENCES DEPARTMENT Dr JM Midgley Assistant Director: Dr JM Midgley BSc (Hons) (RU), MSc (RU), PhD (RU)
ARTHROPOLOGY DIVISION Curator: Mrs TC Nxele BSc (Ecological Science) UKZN MSC (Biology) UKZN Mrs TC Nxele Dr K Williams Curator: Dr K Williams BSc (Hons) (RU), MSc (RU), PhD (RU)
Research Technician: Mrs T Pillay BSc (UKZN) Post Grad. Cert. Education (UKZN)
Collections Officer: Vacant
Mrs T Pillay Mr S Zamisa Contract: Data Technician: Mr S Zamisa BSc (Biological Sc.) (UKZN), Post. Grad. Dip Education (UKZN), (from 02 April 2018)
Temporary Research Assistant: Mr M Mungwe BSc (Zoology and Life Sc.) (UFS) (from 02 May 2018 until 30 September 2018)
Mr M Ziganira Research Technician: General Collections Mr M Ziganira MSc (UKZN) (from 01 October 2018) Contract Research Technician: Wet Collections Mr M Ziganira MSc (UKZN) (from 01 April 2018 until 30 September 2018) Data-Capturer: Ms H Mnikathi BSc (Environ. Sc.) (UKZN), (from 01 October 2018) Ms H Mnikathi Ms M Ndlovu Data-Capturer: Ms M Ndlovu BSc (Environ. Sc.) (UKZN), (from 01 October 2018)
Ms. N Mhlongo BSc (Biological Sc.) (UKZN), BSc (Hons) (Biological Sc.) (UKZN), from 01 October 2018)
Ms. N Mhlongo Mr M Mthembu
8 ANNUAL REPORT 2018-2019 Museum Staff
Data Capture: Mr M Mthembu BSc (Ecology) (UKZN), BSc (Hons) (Biological Sc.) (UKZN), (from 01 October 2018)
Data Capture Intern: Mrs K Magcaba Miss N Muthwa Mrs K Magcaba Miss N Muthwa MALACOLOGY DIVISION Curator: Dr I Muratov BSc (Acad. of Sciences: Moscow), MSc (Acad. of Sciences: Moscow), PhD (Acad. of Sciences: Moscow)
Research Technician: Mrs L Davis Dr I Muratov EXHIBITIONS DEPARTMENT Mrs L Davis
Assistant Director: Mr WD Flanagan MSc (Visual Arts) (UKZN)
Senior Exhibitions Officer: Mr NL Brazier N1 (Machinist/ Joiner)
Mr WD Flanagan Mr NL Brazier
Senior Exhibitions Officer (Studio Manager): Ms H Pattenden BA (Visual Arts) (Hons) (UKZN)
Senior Exhibitions Officer: Miss C Viljoen BA (Visual Studies) (US) (until 30 May 2018)
Ms H Pattenden Miss C Viljoen
Exhibitions Officer: Mr N Gumede
Senior Maintenance Officer: Mr EKV Xaba
Mr N Gumede Mr EKV Xaba Maintenance Officer: Mr V Mbele
Mr V Mbele
ANNUAL REPORT 2018-2019 9 Long Service Awards
Recipients of the Long Service Awards 2018
15 years Mr L J Maphasa
10 years 10 years 10 years Mrs T S Ntombela Dr I Muratov Mrs V Dlomo-Mtshare
10 years 10 years 10 years Mr S E Dlamini Mr P Madonda Mr E S Rampersad
10 ANNUAL REPORT 2018-2019 Legislative and Other Mandates
LEGISLATIVE AND OTHER MANDATES
The KwaZulu-Natal Museum (formerly Natal Museum) is a Declared Cultural Institution established in terms of section 3A of the Cultural Institutions Act, 1998 (Act No. 119 of 1998) and is governed by a Council appointed by the Minister of Arts and Culture. The KwaZulu-Natal Museum is listed under Schedule 3A of PFMA (Act No. 1 of 1999).
Statement of Responsibility and Confirmation of Accuracy for the Annual Report
To the best of my knowledge and belief, I confirm the following:
All information and amounts disclosed in the annual report is consistent with the annual financial statements audited by the Auditor-General.
The annual report is complete, accurate and is free from any omissions.
The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.
The Annual Financial Statements (Part E) have been prepared in accordance with the GRAP standards applicable to the public entity.
The accounting authority is responsible for the preparation of the annual financial statements and for the judgments made in this information.
The accounting authority is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.
The external auditors were engaged to express an independent opinion on the annual financial statements.
In our opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the entity for the financial year ended 31 March 2019.
Yours faithfully
ANNUAL REPORT 2018-2019 11 Organizational Structure
house -
house - Officer In
Snr. Information Snr. Information Education Officer: Officer: Education 1 Chief Education Officer: In Information Officers
Education
Executive Manager: Manager: Executive Outreach Chief Education Chief Education Officer: Outreach Officer: Education Officer: Officer: Education
s
Officer Officer Officer Officer Exhibitions Maintenance Exhibitions Snr. Exhibitions Maintenance Executive Manager: Manager: Executive Snr
Officer Anthropology Collections Curator: Historical Historical Curator:
Human Sciences Human Principal Curator: Curator: Principal Archaeology Chief Curator:
Officer Assistant Technical ollections Research Curator/s: Technician Archaeology Technician Collections C Research
Executive Executive
Director’s PA&
Committee Audit & Risk Council Secretary Council
Data Capturer Manager: Manager:
esearch
Officer R Curator/s Collections Technicians Arthropoda Chief Curator:
Natural Sciences Natural Principal Curator: Curator: Principal
Deputy Council Director Director Officer Research KZN Museum Curator/s Technician Collections Malacology Chief Curator:
house -
house -
Officer In
Snr. Information Snr. Information Education Officer: Officer: Education 1 Chief Education Officer: In Information Officers
Education
Executive Manager: Manager: Executive
Officer
Chief PR & Receptionist Outreach Chief Education Chief Education Officer: Outreach Officer: Education Officer: Officer: Education Advancement Marketing Officer Officer Marketing Information Officer/ Officer/ Information Officer Security
s
Officer Officer Officer Officer Exhibitions Maintenance
Exhibitions Snr. Exhibitions Maintenance Executive Manager: Manager: Executive Snr
Officer Officer echnical echnical Officers Officer
T
Officer Anthropology Collections Chief Technical Maintenance Curator: Historical Historical Curator: Snr Maintenance Snr
Human Sciences Human Principal Curator: Curator: Principal Archaeology Chief Curator:
Maintenance Maintenance
Officer Assistant ollections Technical Research Curator/s:
Technician Archaeology Technician Collections C Officer (Cleaner) Research
Executive Executive
Director’s PA& Director’s
Committee Audit & Risk Council Secretary Council Data Capturer Library Manager: Manager: Librarian Assistant Assistant
esearch
Officer R Chief Librarian Chief Curator/s Collections Arthropoda Technicians Chief Curator:
Natural Sciences Natural Principal Curator: Curator: Principal
Deputy Council Director Director Officer Research KZN Museum Curator/s Technician Collections Malacology Chief Curator:
IT Support Officer Technician
Chief PR & Receptionist Advancement Marketing Officer Officer Marketing Information Officer/ Officer/ Information Officer Security
Officer Officer echnical echnical Officers Officer T
Chief Technical Maintenance Snr Maintenance Snr
Maintenance Maintenance
Officer (Cleaner) are vacant. Most are not funded, except for Advancement Officer position. Officer Advancement for except funded, not are Most vacant. are
Officer
Chief HR Chief Library HR Officer Librarian Assistant Assistant Chief Librarian Chief Executive Executive
Manager: F&A Manager:
IT Support Technician red font
in
are vacant. Most are not funded, except for Advancement Officer position. Officer Advancement for except funded, not are Most vacant. are Finance & Officer
Chief HR Chief HR Officer Admin Officer Executive Executive Manager: F&A Manager:
red font
in
operator
Finance & ositions Admin Officer Switchboard P :
ositions
Switchboard P Organizational Structure Organizational :
Organizational Structure Organizational SCM Officer SCM Officer 1.7 NOTE
1.7 NOTE
12 ANNUAL REPORT 2018-2019 Foreword by the Chairperson
educational outreach projects were boosted by a grant of R500 000 from the Natural Sciences Collections Facility of the National Research Foundation (NRF) that enabled further improvements on the Museum’s collections storerooms and compliance with the Occupational Health & Safety Act. The KwaZulu-Natal Museum was also approved as one of the sites to host the National Science Week, an initiative of the South African Agency for Science & Technology Advancement (SAASTA), which is an agency of the NRF. The National Science Week’s 2018 theme was “Deepening our democracy through science”, and promoted science amongst learners mostly from disadvantaged backgrounds and took place from 30 July to 04 August 2018.
Prof NM Mazibuko Thirty different schools and about 2 500 learners participated (Chairperson) in the national science week. Ten internship positions for young graduates were created during the national science Honourable Minister, I am proud to present the Annual week at the KwaZulu-Natal Museum. Due to the large Report of the 2018/2019 financial year on the activities of number of participants and inadequate space, the Museum the KwaZulu-Natal Museum. I am grateful of the work of the had to limit the number of schools which unfortunately previous Council whose term ended in August 2018, and the disadvantaged many learners. achievements made by the present Council to ensure that no gaps occurred during the transition period. Council is very grateful of the Department’s commitment to the new Museum project. The improved allocation allowed The 2018/2019 year was remarkable as the country this project to earnestly kick-start during the 2018/2019 celebrated the centenaries of two struggle stalwarts in financial year. At its November 2018 meeting, Council Tata Nelson Mandela and Mama Albertina Sisulu. Among approved the appointment of the Project Manager that would the major highlights of the KwaZulu-Natal Museum were drive the project. The implementation of such a big project will the various events that focused on enriching visitors not only improve the management of our country’s heritage about the teachings and roles played by these stalwarts resources; it will also promote economic development for the in nation building, freedom and promotion of human rights whole uMgungundlovu District Municipality, especially the as enshrined in the constitution. These events culminated local Msunduzi Municipality where the Museum is located. in the KwaZulu-Natal Museum’s Africa Month’s Nelson Mandela Lecture that was given by Mr Sello Hatang of the During the Strategic Planning Session that took place Nelson Mandela Foundation and the opening of the Nelson in December 2016, one key objective was to grow visitor Mandela Exhibition. numbers by 10% in each financial year. I am pleased to report that visitor numbers grew by 19% from 74 000 in 2017/2018 I am pleased to report that the KwaZulu-Natal Museum to 89 000 in the 2018/2019 financial year. The Museum is now fully compliant with the Generally Recognised staff has once again excelled in educational outreach and Accounting Standard for the valuation of heritage assets; research. For the second time in a row, the Museum’s GRAP103. The heritage assets valuation has raised the Education Outreach Project won the Best Education Project value of the KwaZulu-Natal Museum’s heritage collections at the Annual Scifest Awards in Makhanda. This, together to R53 million. Council approved the Loss Control Policy with the discovery of a new spider species by one of the that is aimed at improving the security and management of KwaZulu-Natal Museum’s researchers, Dr John Midgley heritage assets. Six internship positions were created for the during a biodiversity survey in Angola, confirmed the high updating of the heritage databases. calibre of the staff of the KwaZulu-Natal Museum.
The KwaZulu-Natal Museum continues to be a “Centre I extend a word of gratitude to members of Council for of Research Excellence”. Its collaborative research and their hard work and commitment to their oversight role and providing strategic and governance guidance to the
ANNUAL REPORT 2018-2019 13 Foreword by the Chairperson
management team. Council’s priority for 2018/2019 was accountability, recognition and affirmation of commitment to enhance full compliance with the legislative mandate exuded by the Honourable Minister of Arts, Culture, and and ensuring completion of the revision of various policies Sports & Recreation continue to inspire us at KZN Museum. and regulations. Various key policies were revised and/or amended to ensure their compliance with the legislation during the 2018/2019 financial year.
On behalf of Council, I extend my appreciation and encouragement to the Director, the management team and all staff for their hard work in making the programmes of the Museum such a great success during this past financial year. As we move from the Centenary Year of Tata Nelson Mandela and Mama Albertina Sisulu to the celebration of 25 Years of Democracy, the KwaZulu-Natal Museum, as a centre of research excellence, remains at the forefront in creating awareness on how we can uphold South Africa’s democratic ideals in the promotion of our heritage for nation building and social cohesion. The foresight, insight dedication and regular call for mutual
Storytelling with renowed poet and story teller, Gcina Mhlophe for Africa Month
14 ANNUAL REPORT 2018-2019 Directors Overview
very successful national projects that created awareness on how we can uphold South Africa’s democratic ideals in the promotion of our heritage for nation building and social cohesion that both these struggle stalwarts strived for. The highlights of these included the Nelson Mandela Lecture that was also the highlight of the Africa Month’s Program; the opening of the Nelson Mandela Exhibition on the 21 September 2018 and the national youth day vent.
I am pleased that the educational outreach projects of the KwaZulu-Natal Museum were so successful. This was evident in the public response that saw the Museum’s visitor numbers increase by 14 000 or 19% from 75 000 to 89 000. Council also approved the tender for the development of the Sage Customer Relationship Management (CRM) and Mr Luthando Maphasa Sage Evolution Projects. This project which would cost the (Director) Museum about R650 000 will assist the Museum to improve its marketing that would eventually lead to improved relations I am pleased to present the 2018/2019 Annual Report of the between the Museum and its stakeholders, while the Sage KwaZulu-Natal Museum. Evolution will upgrade the accounting system.
The 2018/2019 financial year saw the appointment of a new The KZN Museum was honoured to be one of the national Council whose term came into effect from 01 September sites that officially conducted the National Science Week from 2018. I would like to express my gratitude to the previous 30 July to 04 August 2018. The 2018 National Science Week Council for its great work, foresight and support of the staff theme was “Deepening our democracy through science”. of the KwaZulu-Natal Museum. I also thank the new Council The Museum undertook various science and technology for the support it has given to the work of the Museum activities and experiments that enhanced the understanding and instilling a positive attitude amongst all the staff and for conservation of threatened species, climate change, the various stakeholders of the Museum. Great progress food security, sustainable energy and economic aspects of was achieved in addressing the KwaZulu-Natal Museum’s biodiversity. Learners from various schools benefited from contribution to the transformation of the heritage sector the experiments and behind the scenes talks and visits with during the 2018/2019 financial year. the KwaZulu-Natal Museum’s renowned researchers. Seven interns gained valuable experience and some income when The 2018/2019 financial year saw remarkable achievements they were employed to assist with the Museum’s National made at the KwaZulu-Natal Museum. A visitor survey project Science Week program through the NRF grant. that took almost nine months to undertake was completed in June 2018. While the survey showed that more resources For the second time in a row, the KwaZulu-Natal Museum’s were required to market the Museum, it also highlighted that Science Outreach Project was chosen as one of the winners the majority of the visitors to the Museum had positive views at the Annual Scifest Awards held in Makhanda (formerly of the Museum and viewed their visits as very educational. Grahamstown) on 6 to 12 March 2019. The project was on The various outreach programs that the Museum undertook a homemade water filtration system (Home Made Water in the 2018/2019 financial year all had high attendances, Purification System) that could be used to purify water and in certain cases like the holiday program and the Night and make it safe and drinkable. The filtration system has at the Museum, numbers had to be limited due to space been hailed as a breakthrough for poor communities who limitations. are often exposed to poor drinking water that could lead to various diseases and even to death of people. The national government’s 2018 theme highlighted the centenary celebration events in honour of Tata Nelson The KwaZulu-Natal Museum continues to be a “Centre of Mandela and Mama Albertina Sisulu. The KwaZulu-Natal Research Excellence”. The Natural Sciences Collections Museum partnered with the Msunduzi Museum to develop
ANNUAL REPORT 2018-2019 15 Directors Overview
Facility Project (NSCFP) which is a research project of Another research and scientific advance from the KwaZulu- the National Research Foundation (NRF) whose role is to Natal Museum was the discovery of a new spider species promote the management of natural sciences collections by the Assistant Director: Natural Sciences, Dr John Midgley held its national workshop on challenges facing natural while doing a biodiversity survey in Angola. The finding sciences collections at the KwaZulu-Natal Museum on the is further evidence of the significant role that museum 20 - 21 September 2018. The workshop was attended by research plays in enhancing biodiversity conservation and senior staff from the Department of Science & Technology, empowering communities to preserve their natural and the South African National Biodiversity Institute, and staff cultural heritage. The BBC and other international media from all natural sciences museums. houses extensively reported on this discovery, further highlighting its significance. The KwaZulu-Natal Museum was also awarded an amount of R500 000 to improve its collections management I want to thank the Department and the Council for the especially of the wet collections. The Museum’s new state support they have shown in the New Museum Project. of the art electron microscope and extractor fans for the The tender for the New Museum Project was finally wet collections storerooms were purchased through these awarded to a very competent service provider. A Service funds. A total of 11 research papers were published by Level Agreement was signed between the KwaZulu-Natal the KwaZulu-Natal Museum researchers and 13 scientific Museum and the Service Provider, Akwethu Engineering. presentations made, an increase of more than 100% from A Business Plan has since been developed with Akwethu the previous year where only 6 presentations were made. to guide the implementation of the Project. An amount of There was a significant increase in research funds awarded R21 384 378 was approved for the Project in addition to to staff in the 2018/2019 financial year. In total R758 585 already appropriated funds for the 2019/2020 financial year. direct research funding was received compared to about This project, with an estimated budget of about R400 million, R130 000 in the 2017/2018 year. will have a significant economic impact to the people of the Msunduzi Municipality as job opportunities will be created I am pleased that some of the major achievements in that will promote the socio-economic aspects of the area. research that were made by KZN Museum staff rate the Museum as a leader in the promotion of both national and Through its programs, The KwaZulu-Natal Museum international heritage resources. Amongst these were the continues to demonstrate the role that heritage plays in awarding of PhDs to two of the Museum’s researchers; T. the promotion of indigenous cultures and traditions and the Nxele and G. Laue. Of specific significant is Nxele’s PhD Museum’s commitment to protect and preserve our heritage thesis titled “A revision of the taxonomy and phylogenetic resources as part of nation building for prosperity and social background of the South African genus Kazimierzus Plisko, cohesion. 2006 (Oligochaeta: Kazimierzidae)”. The work expands on the extensive research on the Museum’s collection of I thank the Museum Council, the Department of Arts and Oligochaeta undertaken by the retired Dr Danuta Plisko. Culture, my colleagues at the KwaZulu-Natal Museum and Dr Nxele became the first black South African woman to all our stakeholders for their support and continued presence specialize in the field of Oligochaeta which is the study of in this “never ending journey of discovery”. earthworms.
16 ANNUAL REPORT 2018-2019 Strategic Overview
Vision To position the KwaZulu-Natal Museum as a leading, inclusive and transformed heritage institution in South Africa.
Mission The KwaZulu-Natal Museum is dedicated to serving the people of South Africa by interpreting material evidence of the natural and cultural world in order to increase knowledge, understanding and appreciation of the nation’s wealth of history and biodiversity.
Core Values The KwaZulu-Natal Museum’s core values are:
• Accountability: to foster a culture of accountability, learning and enlightenment for staff and stakeholders. • Understanding and respect: to increase tolerance, understanding and mutual respect among staff and the diverse elements of South African society. • Professionalism and honesty: to be honest and professional in undertaking our duties and the execution of the Department’s mandate. • Loyalty: to be loyal to the mandate given to the Museum by the Department and in addressing the government imperatives. • Promote Ubuntu values: to promote a sense of cultural identity and worth by enabling people to attain knowledge and new perspectives regarding the history of humanity in general and the historical and cultural record of their own communities. • Excellence: continuously strive to be a centre of excellence in our core duties and reputation. • Responsiveness: to respond to the needs of our stakeholders with our best work in a timely manner.
Strategic Outcome Oriented Goals
Programme 1: Administration The objective of the programme is to ensure sound financial sustainability of the Museum, the effectiveness and efficiency of management, administrative and operational activities by implementing sound governance, financial and human resource practices within the Museum to comply with applicable legislation. Furthermore, the objective of the programme is to render institutional support to the Museum’s core functions by broadening the sphere of influence of the Museum by making the public aware of the Museum’s diversity and amenities through publicity and events. To provide professional library services to serve the scientific community and the general public. To ensure proper maintenance of the Museum building and to provide technical support to internal departments.
Programme 2: Business Development This programme is made up of two departments; the Natural Sciences Department and Human Sciences Department. The objective of this programme is to properly manage and maintain the natural and cultural heritage collection to serve as centres for promotion of research and development. To be the centre of research excellence by publishing research output in accredited scientific journals.
Programme 3: Public Engagement The objective of this programme is to design and produce state of the art exhibitions and public programmes that showcase the Museum’s programmes and address national imperatives. To accelerate skills development in the heritage sector by providing mentorship and training opportunities. Furthermore, the objective of this programme is to develop and implement education and outreach programmes for learners that are aligned to the Curriculum Assessment Policy Statement (CAPS) and the National Curriculum Statement (NCS) and enhance heritage knowledge and education. In addition; this programme aims to develop and strengthen local and international partnerships to advance the objectives of the Museum.
ANNUAL REPORT 2018-2019 17 Learners visiting the Natural Science department for Biodiversity day
Museum staff with guest speaker, Sonwabile Ndamase at the Mandela Gallery opening event
18 ANNUAL REPORT 2018-2019 Performance Information
PART B: PERFORMANCE INFORMATION
PROGRAMME 1: ADMINISTRATION
SUB-PROGRAMME 1.1: ENTITY MANAGEMENT AND GOVERNANCE
STRATEGIC OBJECTIVE 1.1.1: GENERATE INCOME Deviation from Planned planned target Performance Actual Achievement Actual Achievement Comment on Target to Actual Indicator 2017/18 2018/19 deviations 2018/19 Achievement for 2018/19 Increase R5 968 R15 525 R4 772 A negative Printing income revenue variance of R10 is solely from printing 753 or 69.2% generated on and creative was recorded. demand. services by 15% per annum.
Increase R40 442 R51 010 R49 310 This results was The shop turnover from R1 700 or 3.3% performed well Museum Shop below target. compared to by 4.6% per the previous annum. year. Stock will be diversified in future to improve productivity.
Increase in R96 690 R116 524 R114 676 There was This indicator Learners a shortfall of is dependent Resource R1 848 or 1.5% on the number Centre below target. of users of the revenue at a facility. The rate of 4.6% increase of per annum. internet café facilities in town affected the output. STRATEGIC OBJECTIVE 1.1.2: SOURCE EXTERNAL FUNDING Deviation from Planned planned target Performance Actual Achievement Actual Achievement Comment on Target to Actual Indicator 2017/18 2018/19 deviations 2018/19 Achievement for 2018/19 Funding R928 000 received in total. Two Six applications submitted. The target was We always applications • R40 000 NRF incentive applications R758 585 received in total: exceeded by 4 endeavour submitted. funding awarded to submitted. • R30 000 NRF incentive funding applications. to exceed This item Whitelaw. awarded to Whitelaw. expectations. is project • R40 000 for Curation • R30 000 NRF incentive funding dependent. obtained by Whitelaw awarded to Londt. from Lyn Wadley • R131 631 NRF Thuthuka • R8 000 for display by funding awarded to Nxele. Whitelaw from York • R325, 534 NRF funding awarded University to Blundell. • 40 000 NRF incentive • R241 420 NRF/BELSPO funding awarded to collaboration funding awarded to research associate Plisko. Midgley. • 800 000 National Lotteries • RMCA grant to participate at Commission for the the 9th International Congress “assisted organisation”, of Dipterology (Namibia, The Oupa Novelties Trust. Windhoek) awarded to Pillay.
ANNUAL REPORT 2018-2019 19 Performance Information
STRATEGIC OBJECTIVE 1.1.3: CONTAIN COSTS Deviation Planned from planned Performance Actual Achievement Actual Achievement Comment on Target target to Actual Indicator 2017/18 2018/19 deviations 2018/19 Achievement for 2018/19 Compliance An internal audit for the Unqualified An internal audit for the year was No deviation. N/A with internal year was conducted by audit report. conducted by Morar Incorporated in control Morar Incorporated in January 2019. procedures January 2018. The internal audit report issued by pertaining to The internal audit report the auditors raised minor exceptions, procurement issued by the auditors indicating that the Museum is on the of goods raised minor exceptions, right track in respect of compliance and services indicating that the Museum with internal controls and PFMA. to prevent is on the right track in irregular and respect of compliance The internal audit report was wasteful with internal controls and presented to the Audit and Risk expenditure. PFMA. Committee in February 2019. Compliance Corrective action was agreed upon with PFMA. The internal audit report to address matters raised by the was presented to the Audit internal auditors. and Risk Committee in February 2018. Corrective The Museum continued to produce action was agreed upon to monthly management accounts and address matters raised by quarterly financial reports to monitor the internal auditors. expenditure trends.
The Museum continued to produce monthly management accounts and quarterly financial reports to monitor expenditure trends.
Winners of the speech competition, with Museum staff, preparing to leave for Robben Island Spring School
20 ANNUAL REPORT 2018-2019 Performance Information
STRATEGIC OBJECTIVE 1.1.4: COMPLIANCE WITH LEGISLATION
Deviation Planned from planned Performance Actual Achievement Actual Achievement Comment on Target target to Actual Indicator 2017/18 2018/19 deviations 2018/19 Achievement for 2018/19
Improved The Annual Financial Unqualified The Annual Financial Statements and No deviation. N/A stakeholder Statements and the audit report. the Annual Report for the year ended relations: Annual Report for the 31 March 2018 were prepared and prepare year ended 31 March submitted to the Auditor-General for and submit 2017 were prepared and audit on 31 May 2018. timeously submitted to the Auditor- the Museum General for audit on 31 The Audited Annual Financial Strategic May 2017. Statements for the year ended 31 Plan, Annual March 2018 including the report of the Performance The Audited Annual Auditor-General were submitted to the Plan, Annual Financial Statements for DAC and National Treasury on 31 July Budget, the year ended 31 March 2018. Quarterly 2017 including the report Reports, of the Auditor-General The 2017/18 Annual Report was Annual were submitted to the DAC submitted to Parliament on 30 August Financial and National Treasury on 2018 in line with the date issued by Statements, 31 July 2017. DAC. ENE and MTEC The 2016/17 Annual The Museum prepared and submitted databases and Report was submitted to timeously all four Quarterly Reports to Annual Report. Parliament on 30 August the DAC within one month of end of Hold regular 2017 in line with the date quarter. Council and issued by DAC. Audit & Risk The MTEC 2018 and ENE 2019 were Committee The Museum prepared compiled and submitted to the DAC meetings, and submitted timeously and National Treasury. Internal Audit. all four Quarterly Reports to the DAC within one The Museum Council held four month of end of quarter. (4) meetings. Twelve (12) Council committee meetings were held during The MTEC 2018 and ENE the period. 2018 were compiled and submitted to the DAC and The Audit and Risk Committee met National Treasury. four (4) times during the year under review. The Museum Council held four (4) Council meetings The Museum prepared and submitted and twelve (12) Council the draft and final Annual Performance Subcommittees meetings Plan, Shareholders Compact and were held during the Budget for the 2019/20 period within period. set timelines.
The Audit and Risk Committee met five times during the year under review.
The Museum prepared and submitted the draft and final Annual Performance Plan, Shareholders Compact and Budget for the 2018/19 period within set timelines.
ANNUAL REPORT 2018-2019 21 Performance Information
STRATEGIC OBJECTIVE 1.1.5: IMPROVE EMPLOYEE SATISFACTION Deviation Planned from planned Performance Actual Achievement Actual Achievement Comment on Target target to Actual Indicator 2017/18 2018/19 deviations 2018/19 Achievement for 2018/19 Improved An amount of R931 R401 000. An amount of R2 414 407 was spent The Museum The over productivity. 439 was spent on the on the acquisition of new assets. Of overspent its expenditure Effectiveness acquisition of new assets. this amount, R1 086 487 was financed asset budget is attributable & efficiency Of this amount, R111 123 by deferred grants and project funding. by R926 920. to the of Museum was financed by deferred The Museum spent R1 327 920 of its replacement operations. grants and project funding. own funding on acquiring new assets. of a Museum Provide annual The Museum spent R820 vehicle; Budget for 316 of its own funding on installation of equipment. acquiring new assets. backup air- conditioning units in the Natural Science Department; upgrading the payroll to SAGE VIP Premier and Board pack gadgets. STRATEGIC OBJECTIVE 1.1.6: STAFF TRAINING Deviation Planned from planned Performance Actual Achievement Actual Achievement Comment on Target target to Actual Indicator 2017/18 2018/19 deviations 2018/19 Achievement for 2018/19 Training During the period under R229 470. R227 235. R2 235 saving The deviation budget set review, the Museum recorded. is not material, at 1% of spent R144 534 on staff and did not personnel training and development affect the expenditure benefiting 37 staff number per annum. members. of training opportunities. SUB-PROGRAMME 1.2: SUPPORT SERVICES
STRATEGIC OBJECTIVE 1.2.1: TO PROMOTE AND MARKET THE MUSEUM USING APPROPRIATE MEDIA Deviation Planned from planned Performance Actual Achievement Actual Achievement Comment on Target target to Actual Indicator 2017/18 2018/19 deviations 2018/19 Achievement for 2018/19 An annual 74 571 visitors. 74 758 89 080 visitors. The target Outreach increase of 5% visitors. was exceeded Programme in the number by 14,322 numbers are of visitors. visitors, or now recorded. 19% over the Previously, they target. were excluded. Advertising R 191 800 was spent R188 000. R214 404 was spent on advertising The amount Additional and marketing on advertising in various and promoting various events at the spent was funding was in various publications and print & Museum. Advertising was purchased R26, 404 or appropriated media electronic media including in The Witness, Mum’s Mail Magazine 14% over the for the platforms. the What, Where & When and Calendar and Facebook, Moja target. implementation Magazine, Mum’s Mail, Heritage Magazine, Mum’s Mail, of the Museum Dr’s TV Ads, Capital Media Capital Media newspapers, Dr’s TV Membership newspapers, The Witness, Ads, Maritzburg Fever, KZN Tourist platform and The Fever, Albert Falls Magazine and Map, The Amble to support the Amble, and promotional (Tourist magazine), What Where and Museum’s pamphlets When Tourist Magazine. Purchased branding and Free Entry Cards and promotional marketing pamphlets to promote specific strategy. programmes.
22 ANNUAL REPORT 2018-2019 Performance Information
STRATEGIC OBJECTIVE 1.2.2: COORDINATE THE PUBLICATION OF THE STRATEGIC PLAN, ANNUAL PERFORMANCE PLAN AND ANNUAL REPORT Deviation Planned from planned Performance Actual Achievement Actual Achievement Comment on Target target to Actual Indicator 2017/18 2018/19 deviations 2018/19 Achievement for 2018/19 Publication An amount of R46 856 Produce An amount of R52 353 was spent in The Museum The of Strategic was spent in producing 1 Annual producing 2017/18 Annual Report, recorded an Shareholder Plan, Annual 2016/17 Annual Report, Report and Annual Performance Plan for the underspending Compact for Performance Annual Performance Plan 1 Annual 2019/20 period. of R9 647. 2018/19 period Plan and for the 2018/19 period and Performance was deferred Annual Report Shareholder Compact for Plan. until the new done timeously the 2018/19 period. R62 000. national to meet government applicable administration. deadlines.
STRATEGIC OBJECTIVE 1.2.3: MAINTENANCE AND UPKEEP OF MUSEUM PROPERTY Deviation Planned from planned Performance Actual Achievement Actual Achievement Comment on Target target to Actual Indicator 2017/18 2018/19 deviations 2018/19 Achievement for 2018/19 Repair An amount of R289 Monitor and An amount of R409 940 was spent No deviation. N/A identified 205 was spent on the repair all on the maintenance of the building, defects and maintenance of the identified vehicles and equipment. keep Museum buildings, vehicles and defects. building, equipment. All identified defects were repaired or vehicles reported to DPW. and other All identified defects were equipment well repaired or reported to maintained DPW. and safe to use. Effective 4 H&S meetings were 4 H&S Four (4) meetings were held: in June No deviation. N/A Health and held, July 2017, October Committee 2018, September 2018, December Safety (H&S) 2017, January 2017 and meetings. 2018 and March 2019. Committee March 2018. in place (4 Fumigation to building and collections meetings held Quarterly fumigation to storerooms were done in May 2018, per annum). building and collection August 2018, December 2018, rooms done as per February 2019 and March 2019. schedule. The fire communicator (link to fire National Fire and Safety department) was checked and (Chubb Alarms) appointed serviced quarterly. as new service provider to monitor the Fire Detection All fire equipment was serviced in System at the Museum. March 2019.
30 fire extinguishers were serviced by the Museum. DPW have appointed a contractor to service the firefighting equipment, replace the condemned fire extinguishers, and service/repair the detection system. They have serviced the hose reels and 32 expired extinguishers.
ANNUAL REPORT 2018-2019 23 Performance Information
PROGRAMME 2: BUSINESS DEVELOPMENT STRATEGIC OBJECTIVE 2.1: DISSEMINATION OF RESEARCH OUTPUT (KNOWLEDGE) THROUGH PUBLICATION AND POPULAR PRESENTATION Deviation Planned from planned Performance Actual Achievement Actual Achievement Comment on Target target to Actual Indicator 2017/18 2018/19 deviations 2018/19 Achievement for 2018/19 Publish 12 papers of Volume 58 1 volume 11 papers of Volume 59 published on- No deviation. N/A one volume published online, volume published. line; volume 59 printed. of African 57 and 58 printed Invertebrates in hardy copy and electronic format. One issue / 1 volume of SAH 1 volume 11 papers published online in Volume No deviation. N/A volume of the published in the time to be 31. Volume 31 printed. peer reviewed frame. published. Southern African Humanities Journal per annum. Number DHS: 1 Research Paper 7 papers 7 papers published. No deviation. N/A of original by Whitelaw. published. research paper 2 Research Papers by DHS: 2 papers published in peer- on Southern Laue. reviewed journals and 1 book produced: African 1 Book Review by Laue. • Blundell: Tusk and Transformation. mallusca, • Thorp: Thoughts on Thinking Strings. arthropod, DNS: 5 papers published: • Book by Garth Sampson on earthworm Archaeology of Seacow River Valley - faunas, fossil Herbert, D.G. 2017. A edited by Whitelaw – was published. invertebrates new genus and eight new and the species of tail-wagger DNS: 4 scientific papers published: national snails from eastern South • Londt & Dikow: A review of the cultural Africa, with a key to assassin-fly genus Laphyctis Loew, heritage. genera within Sheldonia 1858 with descriptions of two new s.l. (Gastropoda: species (Diptera, Asilidae, Laphriinae) Urocyclidae). European • Nxele, et al.: The first proandric Journal of Taxonomy 309: species of Tritogenia Kinberg, 1867 1–50. doi.org/10.5852/ from Botswana, Tritogenia talana ejt.2017.309 sp.n. (Clitellata, Crassiclitellata, Armstrong, A.J. and Tritogeniidae) Nxele, T.C. 2017 English names of the megadrile • Midgley: Engelbrecht I (2019) New earthworms (Oligochaeta) collection records for Theraphosidae of KwaZulu-Natal. African (Araneae, Mygalomorphae) in Angola, Invertebrates 58(2): 11–20 with the description of a remarkable Daniel, C.A., Midgley, new species of Ceratogyrus. African J.M. and Villet, M.H. Invertebrates 60: 1–13. doi: 10.3897/ 2017 Identification of afrinvertebr.60.32141 larvae of the Afrotropical • Williams & Villet, M.H. In press. species of Thanatophilus Spatial and seasonal distribution Leach, 1817 (Coleoptera, of forensically important blow flies Silphidae) African (Diptera: Calliphoridae) in Makhanda, Invertebrates 58(2): 1–10 Eastern Cape, South Africa. Journal Nxele et al. 2017. Four of Medical Entomology. new earthworm species of Kazimierzus Plisko, 2006 (Clitellata, Kazimierzidae). Zootaxa 4353 (1): 187–194. Ziganira, M., 2018. Using web-based tools to transform the Bivalvia collection database in the KwaZulu-Natal Museum. Journal of Natural Science Collections, 5, pp.66-77.
24 ANNUAL REPORT 2018-2019 Performance Information
Number of 2 Presentations: Nxele, 6 presen- 13 Presentations. Target We always research TC 2017 “English tations. exceeded by 8 endeavour papers Common Names for KZN DHS: presentations. to exceed • Laue: 3 papers presented at IFRAO, presented at Earthworms” Valcamonica: expectations. conferences Ziganira, M 2017 • Rock art, regionality and ethnography: and “Digitization of collection towards understanding difference in workshops. databases of the KwaZulu- southern African rock art. Natal Museum and • Concerning heritage: Lessons from rock art management in the Maloti- introduction of NSCF for Drakensberg Park World Heritage South Africa”. Museum Site.A history of research into regional Computer Network difference in Southern African rock art. Conference. Pittsburgh, Pennsylvania, USA, • Whitelaw: 1 paper presented at SAFA, Toronto. November 7-10 2017. • Laue: 2 lectures at Workshop for ASAPA, Lesotho: Rock art: survey and documentation Getting your work published. DNS: • Nxele, Danuta Plisko, Tarombera Mwabvu, Oliver Zishiri. Molecular phylogeny of Kazimierzus Plisko, 2006 (Clitellata, Kazimierzidae) from the Western and Northern Cape Province inferred from mitochondrial DNA sequences. International Earthworm Congress 1, Shanghai, China, 24–29 June 2018.
• Williams, K.A. 2018. Collections, Research and Society – The value of natural history collections today. SAMA KZN Annual Conference 2018 Multi Media Center, uMgungundlovu. 18 – 19 April 2018.
• Midgley, JM. 2018. Impacts of GRAP 103 compliance on Natural History collections. SAMA KZN Annual Conference 2018, Multi Media Center, uMgungundlovu. 18 – 19 April 2018.
• Williams, K.A. and Villet, M.H. 2018. Seasonal and spatial distribution of forensically important blowflies in Makhanda, Eastern Cape, South Africa. 9th International Congress of Dipterology, 25 Nov – 1 Dec 2018, Windhoek, Namibia.
• Pillay, T., Midgley, J.M. and Jordaens, K.A.M. The KwaZulu-Natal Museum’s contributions to the PINDIP project. 9th International Congress of Dipterology, 25 Nov – 1 Dec 2018, Windhoek, Namibia.
• Midgley, J.M. and Dikow, T. Honouring Jason G.H. Londt – Afrotropical Asilidae, the KwaZulu- Natal Museum and a career dedicated to discovering and describing new species. 9th International Congress of Dipterology, 25 Nov – 1 Dec 2018, Windhoek, Namibia.
• Midgley, J.M. Diptera biodiversity informatics – moving entomological data forward. 9th International Congress of Dipterology, 25 Nov – 1 Dec 2018, Windhoek, Namibia. Number of DHS: 4 loans managed by 35 loans 19 loans issued / managed. Output under Loans are loan requests Humanities. issued. target by 16 issued on per annum. loans. request and we Responses have no control to collection DNS: 52 loans managed over the total based (Stoffels 9, Pillay 28, Davis number issued. enquiries. 10 Ziganira 5) We endeavor to meet all requests.
ANNUAL REPORT 2018-2019 25 Performance Information
Number of DHS: 10 local and 24 42 visitors accommodated. No deviation. N/A visiting international visitors visitors. researchers were accommodated in DHS: 15 research visitors. accommodat- Humanities. ed per annum. DNS: 20 Local and 7 International DNS: 21 local and 4 visitors. international visitor.
Popular 11 popular presentations 6 popular 24 popular presentations delivered. Target ex- We always presentation delivered. presenta- ceeded by 18 endeavour of research tions DHS: 17 presentations. presentations. to exceed and collection DHS: Whitelaw delivered 2 DNS: 7 presentations. expectations. information. talks to SAAS. DNS: 9 presentations given.
Assist with Whitelaw & Laue organ- 8 events. 11 South African Archaeological Society Target We always organizing ized 8 events. Events organized. exceeded by 3 endeavour South African events. to exceed Archaeo- expectations. logical Society events.
STRATEGIC OBJECTIVE 2.2: COLLECTIONS MANAGEMENT Deviation from planned Performance Actual Achievement Planned Target Actual Achievement Comment on target to Actual Indicator 2017/18 2018/19 2018/19 deviations Achievement for 2018/19 Proper 13 000 Malacology All Curation Activities: No deviation. N/A recording of records updated, 4 631 newmaterial • New material added to appropriate collections in new Arthropoda records added to catalogues as necessary. the accession added, 17 757 Arthropoda collections • Alcohol levels checked in Wet register records verified and incorporated collections and Malacology (Electronic updated for GRAP103 into collection collections quarterly. Heritage Asset assessment. databases. Registers). Continued • All display items checked quarterly Contract staff progress for signs of deterioration. appointed to reduce • Wet collection fumigated twice per to fast track backlog of year the process. undatabased • Returned loan material packed Temperature material. away. and humidity Proper levels systems Databasing: controlled, in place • 20926 new records captured, 28438 use of air- to ensure records updated. conditioners conservation and & dehumidifies. preservation Monitored by of collections. data loggers devices, in collection storerooms.
26 ANNUAL REPORT 2018-2019 Performance Information
Temperature Data Loggers/Monitors Complete • Data Loggers/Monitors checked 1 No deviation N/A and humidity checked 3 times a week Electronic times a week and data downloaded levels and data downloaded Heritage monthly. monitored to monthly. Assets • 66 new items accessioned into the ensure proper Register History Collection. upkeep of 6 new items accessioned database (to • 66 items fumigated. collections. into the Anthropological be updated • Made progress on sorting out Collection. by collection backlog of errors in database/ 20 Items in fumigation but managers). collections for History, Anthropology not yet accessioned. and Archaeology Collection and cleaning up databases. Archaeology/Anthropology Collections completed on EHAR. Made progress on sorting out backlog of errors in database/collections for Historical Collection.
Number of DHS: Whitelaw undertook 11 field trips. 14 field trips. Target Additional field trips 1 field excursion with DHS: exceeded by 3 fieldwork conducted. Tlhoaele, Laue, Madonda, • Whitelaw/Madonda/Tlhoaele/ trips. by staff Thorp, Munzhedzi. Munzhedzi @ Ntshekane Iron Age members is Site encouraged. DNS 10 field trips: Herbert • Laue @ Border Cave Stone Age and Davis field trips Site to Widenham (11 May • Blundell/Laue @ Eastern Cape rock 2017) and Scottburgh art sites. (26 June 2017); 38 km DNS: WSW of Harrismith, 18th of • Midgley and Williams: 10 April October – 19th of October 2018 and 12 April 2018: Greytown, (Muratov); Kologha Estcourt, Himeville, Hella Hella Forest and Great Fish pass. River Reserve, Eastern • Muratov: 16 June 2018: Chase Cape 2 to 10 October Valley Heights. (Midgley and Pillay), • Nxele and Munzhedzi: 04/05: Drakensville (Farmers day): 07 November 2017 Karkloof. (Nxele), Highover NR: 16 • Nxele and Munzhedzi: 07/05: November 2017 (Nxele); Loskop. Midgley and Williams • Midgley, Williams and Muratov: 2-5 Cumberland Nature September 2018: Treasure Beach Reserve, 12 January and Bluff Nature Reserves. 2018; Nxele to Loskop: • Midgley and Muratov: 8 October 20 March 2018, Kokstad: 2018: Cato Ridge, Bartlett Estate. 21–22 March 2018, • Midgley, Williams, Muratov, Davis, Vernon Crookes: 23 March Nxele and Zamisa: 1-2 November 2018 2018: Constantia farm. • Midgley and Williams 13-16 November: Pietermaritzburg district. • Midgley, Williams and Muratov: 7-10 February: Ntsikeni Nature Reserve. • Midgley, Williams, Muratov, Nxele, Zamisa, Ziganira, Z Mnikathi and M Ndlovu: 14-19 January: Royal Natal National Park. • Nxele: 21–22 February: Roosefontein Nature Reserve. • Nxele and Ziganira: 19–20, 26–27 March: Zunckel Farms. • Nxele: 22 March: Gourton Farm.
ANNUAL REPORT 2018-2019 27 Performance Information
PROGRAMME 3: PUBLIC PROGRAMMES
SUB-PROGRAMME 3.1: EXHIBITIONS
STRATEGIC OBJECTIVE 3.1.1: DEVELOP EXHIBITIONS Deviation from planned Performance Actual Achievement Planned Target Actual Achievement Comment on target to Actual Indicator 2017/18 2018/19 2018/19 deviations Achievement for 2018/19 Conduct A floor plan and exhibition Continue A new proposal for the exhibition was Partial Exhibitions research and flow chart was generated development presented to the Display Focus Group Achievement. Department plan the Rise for the gallery. of exhibition. on 5 March 2019. A task team was efforts were of the Zulu established to fast track the project focused on Kingdom New designs were and the first meeting was held on 20 the research exhibition generated for the March 2019. and production and open it modification of the existing of the Nelson to the public. glass cabinets. Mandela Centenary Paint, cork and timber were Exhibition, purchased for the upgrading which was of the glass cabinets. not initially planned. Number of Six traveling displays were Produce and Produced the Nelson Mandela Target ex- Target was temporary produced, they include: open the Centenary Exhibition. ceeded by 2 exceeded due displays or Oliver Tambo and the Nelson 2 traveling displays/exhibitions were exhibitions. to outreach travelling Frontline States, African Mandela also produced. demands. exhibitions Textiles, Climate Change in Exhibition to produced per a box, Sibudu in a box and the public. annum. 1 per a double helix DNA model. annum.
Host one ‘Africa - a celebration of Host one The Photographic Exhibition ‘City of Achieved N/A temporary heritage and diversity’ was temporary Contrasts’ was produced and was exhibition per developed and produced in exhibition. opened on 18 October 2018. annum. conjunction with the Africa month celebrations with Local junior schools participated Msunduzi Museum. in the Africa Month celebrations by decorating silhouettes of Africa that Products showcasing the were inspired by Nelson Mandela outcome of the African as part of the commemoration of Textiles Workshop were put Mandela’s Centenary celebration, the up on display in the BTE silhouettes were installed in the BTE gallery. gallery.
The National Symbols Exhibition featured silhouettes that were decorated by schools for the Heritage Day celebrations. Develop The exhibition space Continue 2 Modular wall systems were No deviation. N/A proposal has been repaired and upgrade of designed and constructed for the and source repainted. exhibition. Invertebrate and Diptera Information funding Six plinths have been panels. for the designed and produced as Entomology/ standalone bases for the Invertebrate large-scale insect models. exhibition in the Foreign Further research has been Mammal generated on invertebrates Hall, focusing in mythology. on insects and research done at KZN Museum.
28 ANNUAL REPORT 2018-2019 Performance Information
STRATEGIC OBJECTIVE 3.1.2: MAINTAIN AND UPGRADE EXISTING EXHIBITIONS Deviation from planned Performance Actual Achievement Planned Target Actual Achievement Comment on target to Actual Indicator 2017/18 2018/19 2018/19 deviations Achievement for 2018/19 Properly Freestanding mammals Quarterly The freestanding mammals were No deviation. N/A maintained received quarterly treatment inspection, regularly monitored and inspected, and relevant of leather care along with treatment they also received quarterly leather exhibitions. regular inspections for any of hides. care treatment. All the freestanding deterioration. Regular animals showed signs of climate maintenance damage, the specimens were restored Both the Hippopotamus done. and the repair work was repainted. and the White Rhinoceros The annual fumigation of the showed signs of taxidermy collections was conducted temperature damage, on 21 December 2018. however cracks were repaired and repainted.
Annual Fumigation of galleries was conducted on 15 December 2017.
Indigenous New dinosaur labels Relabel and A new case was built to house Partially There was a Knowledge have been designed and include IKS the Orangutan. Information was Achieved delay from our (IKS) added translated into isiZulu. into one researched and translated into isiZulu suppliers for to the Exhibition and the information panels have been the materials exhibitions Hall. designed and completed. needed to through complete the relabeling project on and time. upgrading.
Upgrade Flanagan, Gumede and Open new Information was captured from the Not Achieved. This project out-dated Pattenden paid a site visit exhibition. previous display and has been edited was started exhibitions to Sibudu cave to document and translated into isiZulu. Design late in the (Stone tool, the Archaeological process work has commenced on the new financial year Bushman/ and video interview the panels. San); include residing archaeologists as priority was information on their various functions placed on the on within the team. research and international production of relevance of the Nelson the Sibudu Mandela site and the Exhibition. work done by Museum Water damage researchers. to the display area due to leaks in the Museum building further slowed progress. The production of the new display is underway, and once the display area has been maintained the display will be installed.
ANNUAL REPORT 2018-2019 29 Performance Information
SUB-PROGRAMME 3.2: EDUCATION AND OUTREACH PROGRAMMES STRATEGIC OBJECTIVE 3.2.1: DEVELOP AND IMPLEMENT QUALITY EDUCATION AND OUTREACH PROGRAMMES TO EXPAND THE AUDIENCE BASE Deviation from planned Performance Actual Achievement Planned Target Actual Achievement Comment on target to Actual Indicator 2017/18 2018/19 2018/19 deviations Achievement for 2018/19
10% annual 21 785 learners visited the 20,052 24 884 Museum Museum increase in museum. learners. recorded hosted the number a positive National of visitors variance Science from schools. of 4 830 Week, which in school contributed to visitors. the increase in the number of school visitors. Visits to Circuit Meetings also brought in new schools. Increase in 1 046 participating learners. 1 162 1 583 participating learners. Museum Three new the number participating recorded schools of learners learners. a positive (Edendale attending the variance Primary, programme: of 421 in Esigodini and 10% annual participating Ashdown increase in primary) the number joined the of learners. programme. Number 18 participating schools 18 19 participating schools. Museum Ndeleshane of schools participating recorded Primary participating schools. a positive joined the in the variance of 1 rural outreach programme school. programme per annum. this year.
Number of Three holiday programmes 2 creative Three holiday programmes were held One extra Museum workshops and two evenings at the arts and two Nights at the Museum events workshop was decided to take held per museum were held over workshops. were held. conducted. advantage of annum. the winter and summer the unusually holidays. long school break in March 2019.
Hosting of Heritage Quiz Competition 1 Heritage The Heritage Competition event was No deviation. N/A Heritage took place on 28 Quiz. held on 05 September 2018. Winning Quiz. September 2017. Twelve learners were sent to a Spring School schools participated in the Camp at Robben Island Museum from competition. Total of 108 28 September to 06 October 2018. people attended the event.
30 ANNUAL REPORT 2018-2019 Performance Information
Number Freedom Day was 10 days Commemorated 10 special days – No deviation. N/A of Special celebrated on the 24th of observed. (National April 2017. 138 learners Freedom Day event took place on Days) days attended the event. 26 April 2018. The theme was voter celebrated education targeted at the youth who per annum. Biodiversity Day - The will be voting for the first time in 2019. event was hosted in A total of 213 youths attended. collaboration with Msunduzi Museum as part of Africa Biodiversity Day event was hosted in Month celebrations. collaboration with WESSA, Ezemvelo- Mhlophe. The event was KZN Wildlife on 22 May 2018. attended by 297 people. Learners participated in the natural sciences behind the scenes tour. A Africa Day- The event was total of 85 leaners participated. hosted in collaboration with Msunduzi Museum on the Africa Day event was hosted in 26th of May 2017. collaboration with Msunduzi Museum The event was attended on 25 May 2018. Learners participated by 177. in a fabric painting workshop and the renowned poet Dr Gcina Mhlophe Youth Day - The event took rendered a storytelling session. A total place on the 23 of June of 135 learners participated. 2017. All museum departments Youth Day – A sports day took participated in the event. 39 place on 14 June 2018 at Maqongqo sport fields. Three sports code were learners attended the event. on display - soccer, netball and running. Participating schools were Mandela Day - The event Nonzila Primary, Villa Maria Primary, was celebrated with H.S Maqongqo Primary and Gcina Ebrahim. Museum donated Primary. Local professional football beam bags, football tables, players were invited to motivate the soccer balls, worm farm children. Present were Sphesihle and herbs for the vegetable Ndlovu of Maritburg United, Nkanyiso garden. Mngwengwe of Lamontville Golden Arrows, etc. Football veteran and - The event took Arbor Day coach, Mr Thabo Dladla was also place on 01 September at present. Table Mountain primary school. Trees and flowers Mandela Day event was held on 18 were donated and planted July 2018 at Umkhuleko Creche in in the school and herd Sweetwaters. The Museum donated garden was established in food items, mattresses, floor mats and the school as well. carpets to the crèche. The crèche was painted and a vegetable garden was Heritage Day -The event planted. was held on the 22nd of September. The theme was The crèche has 87 learners and four National Symbols. staff members. Total of165 people attended the event. Arbour Week event was held from 03 September to 07 September 2018 in 16 Days of Activism collaboration with Cedara College. for no violence against Cedara College did soil testing and women and children- The sponsored herbs for planting to event took place on 30 establish gardens at schools. November 2017. There Heritage Day event was held on 21 were talks delivered by September 2018. It was a gallery Lifeline and Childline to opening for the Nelson Mandela children. Exhibition. Mr Sonwabile Ndamase A total of 48 people was the guest speaker. A total of 169 attended the event. people attended.
ANNUAL REPORT 2018-2019 31 Performance Information
World Aids Day -The 16 Days of Activism event took place day was commemorated on 30 November 2018. The speakers in collaboration with Red were from the following organizations: Cross and Siyayinqoba Alutta Labyrinth Organization, SOS Beat It. A total of 80 people Care Centre, Vuka Uqhakaze, attended the event. Siyanqoba, Child Line and the Traveling Thought. A total of 80 people Human Rights Day - attended. The event was held at Swayimane hall on 20 World Aids Day - A display was put March 2018. It was held in up at reception with information on collaboration with South HIV/AIDS and 16 Days of Activism. African Humans Rights Red and white ribbons were Commission, Red Cross distributed to the public. and Beat it Siyayinqoba. Total number of people who Human Rights Day event took attended the event was place on 20 March 2019. The aim of 160. the event was to help the children to understand the history and background of Human Rights Day. A total of 61 people from SOS Children’s Village attended. Number of Women’s Day -The event 64 women 122 women attended the Women’s No deviation. N/A local women was held on the 08th of participants. Day event held on 08 August 2018. participating August 2017.Sindiso in skills Chamane (former Sabalala transfer pupil) was guest speaker on workshops the day. 60 people attended per annum. the event.
STRATEGIC OBJECTIVE 3.2.2: BUILD AND MAINTAIN PARTNERSHIPS WITH THE DEPARTMENT OF EDUCATION AND OTHER HERITAGE / CONSERVATION INSTITUTIONS Deviation from planned Performance Actual Achievement Planned Target Actual Achievement Comment on target to Actual Indicator 2017/18 2018/19 2018/19 deviations Achievement for 2018/19 Hold two Educator’s workshop 2 workshops. Life Science Educators Workshop Achieved. N/A workshops was hosted in collaboration was held on 16 August 2018 for grade with the with the Midlands Meander 10 & 11 educators. Educators Education project on Hosted a History Educators and Subject the 08th of September. Workshop. Advisors per Educators were taught annum. different hands on activities that they can employ in the classroom. 24 educators attended the event.
Educators Workshop - A Life Science workshop for grade 12 educators took place on 22 February. Three sections were covered in the workshop: Genetics, Evolution and errors usually made by learners in exams. Total of 92 educators attended the workshop.
32 ANNUAL REPORT 2018-2019 Performance Information
Number of Happy earth Festival 3 shared Happy Earth Festival took place at One extra An opportunity collaborative -The event took place in educational Botanical gardens on 19 and 20 project was to conduct projects per Botanical Gardens on the projects. April 2018. A total of 666 learners conducted. the Sibudu annum. 20 and 21 April 2017.1500 participated over the two days. Heritage learners from 65 schools Competition participated in the event. Cell C’s Take A Girl Child to Work presented event took place on 24 May 2018. itself as there Cell C Take a girl child to was funding work - The department in Nelson Mandela Lecture event was available to collaboration with SANBI, hosted in collaboration with Msunduzi promote this Umgeni Water, EDTEA Museum. Mr Sello Hatang, CEO important and Msunduzi Museum of the Nelson Mandela foundation heritage site. participated in Take Girl delivered the lecture. Child to work. 30 girls participated in the Sibudu Heritage Competition programme. was held on 17 August 2018 at Lihlithemba High school in Fabric Workshops - Two eNdwendwe. workshops were held in collaboration with Msunduzi museum as part of Africa month Celebrations. The first workshop was held on the 4th of May 2017 at the kwaZulu - Natal museum. 36 learners attended the event. Second workshop was held on the 9th of May at Msunduzi museum and was attended by women. Host one Traditional Healers 1 seminar to Traditional healers Summit event No deviation. N/A seminar Workshop - The event be held. was hosted in collaboration with with various was held on 12 December Ezemvelo-KZN Wildlife and SANBI community in collaboration with from 30 October to 1 November 2018. leaders per DAFF, EKZN Wildlife annum. and Umgungundlovu District. Traditional leaders were taught about the importance of permits and the process they need to undergo to obtain them. 50 people attended.
Learners who attended the National Science Week programmes, hosted at the Museum.
ANNUAL REPORT 2018-2019 33 Performance Information
STRATEGIC OBJECTIVE 3.2.3: MAINTAIN AND STRENGTHEN LOCAL AND INTERNATIONAL LINKS FOR THE ADVANCEMENT OF RESEARCH COLLABORATION Deviation from planned Performance Actual Achievement Planned Target Actual Achievement Comment on target to Actual Indicator 2017/18 2018/19 2018/19 deviations Achievement for 2018/19 Number of DHS: Collaborative 12 14 collaborative projects: Target exceed The output collaborative project with Lawrence collaborative by 4 projects. exceeded projects Owens on human remains projects. Midgley 5: Dr Kurt Jordaens (Royal the target. undertaken morphology. Museum for Central Africa, Belgium), We always per annum. Dr Terence Bellingan (Albany endeavour DNS: 1) Ben Rowson (Nat. Museum, South Africa), Prof Martin to exceed Mus. Wales) [Herbert]; Villet (Rhodes University, South expectations. 2) Mary Cole (East London Africa), Dr Ian Engelbrecht (NSCF/ Mus.) [Herbert]; SANBI, South Africa), Dr Timo van 3) Suzanne Williams der Niet (UKZN, South Africa). (NHMUK) [Herbert]; 4) Adnan Moussalli (Mus. Williams 2: Prof. Martin Villet, Rhodes Victoria) [Herbert]; University, Dr Haemish Melville, 5) Owen Griffiths UNISA. (Mauritius) [Herbert]; 6) Vasily Kovtunovich Nxele 5: Tarombera Mwabvu, (Moscow) [Muratov]; University of Mpumalanga, Oliver 7) Alain Robin (France) Zishiri, UKZN, Bright Mashiyana, [Muratov]; KZN DARD, Adrian Armstrong, KZN 8) Taro Mwabvu (University Wildlife, Emma Sherlock, British of Mpumalanga) [Nxele]; Museum Boipelo Ramongalo, Dept of 9) SERG (Stellenbosch) Agricultural Research, Botswana. [Nxele], 10) Martin Villet (Rhodes Muratov 1: Kovtunovich, Moscow University) [Midgley and Society of Nature Explorers. Williams], 11) Michael Forthman (University of Departmental collaboration 1: UKZN Florida) [Midgley] Community of Practice Bioblitz series. Number DHS: Collaborative Fieldtrip 3 joint field 5 joint field trips were conducted. Target exceed The output of joint with 1 staff and 3 students trips. by 2 projects. exceeded field trips from Winchester University. Midgley, Williams and Muratov: 2-5 the target. undertaken September, KZN: Durban area, We always per annum. Laue attended Border Cave Treasure Beach and Bluff Nature endeavour excavation (ESI). Reserves. (joint with UKZN). to exceed expectations. Laue attended Klasies Midgley and Muratov: 8 October, River Mouth excavation KZN: Cato Ridge (joint with UKZN). (Wits). Midgley, Williams, Muratov, T Nxele, L DNS: 1 joint field trip: Davis, S Zamisa 1-2 November, KZN: Field work in Kologha Constantia farm (joint with UKZN). Forest and Great Fish River Reserve, Eastern Midgley and Williams 13-16 Cape 2 to 10 October November: Pietermaritzburg district (Midgley and Pillay): Joint (joint with Royal Museum for Central trip with National Museum, Africa, Belgium). Bloemfontein Midgley, Williams, Muratov 7-10 February Ntsikeni Biobliz field trip (joint with UKZN). Number of DHS: Laue reviewed 1 9 manuscripts 4 manuscripts reviewed. Below target Reviews are manuscripts paper for Azania. reviewed. by 4 reviews. per demand. reviewed for Whitelaw reviewed 1 DHS: 2 Reviews: We have no international paper for the South African Laue: reviewed 1 paper for the Global control over journals per Archaeological Bulletin. Encyclopedia of Archaeology. the number annum. Whitelaw reviewed 1 paper. of requests. DNS: 5 manuscripts However, reviewed: Muratov (PeerJ), DNS 2 reviews: review activities Midgley (International Nxele: International Journal of form an Journal of Legal Medicine), Agricultural Science and Food important part Midgley (International Technology. of research Journal of Legal Medicine), activities. Muratov (ZooKeys), Nxele Williams: Journal of Medical (International Letters of entomology. Natural Science).
34 ANNUAL REPORT 2018-2019 Performance Information
STRATEGIC OBJECTIVE 3.2.4: BUILD RELATIONSHIPS WITH OTHER MUSEUMS AND TOURIST ATTRACTIONS IN THE CITY Deviation from planned Performance Actual Achievement Planned Target Actual Achievement Comment on target to Actual Indicator 2017/18 2018/19 2018/19 deviations Achievement for 2018/19 Number of Partnered with the 4 2 collaborations achieved. Only 50% of There were collaborative Msunduzi Museum and collaborative Collaborated with Happy Earth Forum the target was limited projects Project Gateway to host projects. (comprising +20 stakeholders) on achieved. opportunities with other the Museum Passport participating in the Happy Earth for such institutions competition. Festival held over 2 days at the partnerships held per Collaborated with the Botanical Gardens (targeted at 1 500 in the period annum. Happy Earth Forum (a total school children). under review. of 20 organisations) to promote the Museum at the Partnered with 3 other institutions Happy Earth Festival held in hosting the Museum Passport at the Botanical Gardens. competition which was targeted at Partnered with the schools to encourage their support of Msunduzi Museum to host Museums in the city. joint events for Africa Month (Africa Day event and Africa Exhibition Opening).
STRATEGIC OBJECTIVE 3.2.5: CAPACITY BUILDING Deviation from planned Performance Actual Achievement Planned Target Actual Achievement Comment on target to Actual Indicator 2017/18 2018/19 2018/19 deviations Achievement for 2018/19 Number of Edu Dept: 18 students/ 14 students/ 23 students/ interns supervised/ Target The output students interns trained. interns trained: exceeded exceeded trained or supervised/ by 9 interns/ the target. Exh Dept: 3 students/ supported interns trained trained. Education Department: 16 students students. We always each year. and interns trained. endeavour Successful Hosted 5 Travel and to exceed award of tourism students from Exhibitions Dept.: 2 students/ interns expectations. postgraduate ICESA for 3 months. trained. degrees and Hosted 8 Ecotourism other tertiary students from the Durban DHS: 5 students supervised at qualifica- University of Tertiary Institutions. 2 Completed, 1 tions. Technology for six months. PhD and 1 MSc at Wits. Hosted 3 Cathsseta interns for a year. Hosted 2 Travel and tourism student from Umbumbulu FET and Appelsbosch FET. Whitelaw supervised Tlhoaele and Munzhedzi, both for Masters degrees (UNISA/Wits). Maree submitted Masters for examination in Feb 2018. Host one Inandi Maree interned with 1 NRF intern Nil. Output under The KZN (per annum) NRF support in Humanities. hosted. target by 1. Museum was NRF intern in not eligible to the research benefit from the departments NRF internship (Natural programme / Human during the Sciences). period in review.
ANNUAL REPORT 2018-2019 35 Performance Information
PART C: HUMAN RESOURCES MANAGEMENT Personnel Costs Total Expenditure Personnel Expenditure Training Consultancy Pension Personnel Costs Average Expenditure services Fund as a % of total personnel cost R R Contribution expenditure per employee R R 39,151,292 24,876,478 227,135 Nil 2,258,555 63.5% 437,501
Salaries, Overtime, Housing Allowance & Medical Assistance Salaries Overtime Housing Allowance Medical Assistance Amount Salaries as a % of Amount Overtime Amount H/A as Amount Medical personnel cost as a % of a % of as a % of personnel personnel personnel (R) cost (R) cost (R) cost 20,316,939 81.5% - - 537,600 2.6% 1,094,627 4.4%
Employment and Vacancies Number of posts Number of posts filled Vacancy Rate
61 57 6%
Annual Turnover Rates by Salary Levels for the Period Appointments Termination & Number as at Number of employees as of 1 April 2018 & transfers into transfers out of Turnover rate 31 March 2019 the institution the institution 60 12 5 11.67% 67
Reasons Why Staff Are Leaving the Institution Termination type Number % of total
Death 0 0
Resignations 0 0
Expiry of Contract 4 5.9%
Dismissal – Operational changes 1 1.5%
Dismissal – misconduct 0 0
Dismissal –In-efficiency 0 0
Discharge due to ill health 0 0
Retirement 0 0
Other 0 0
Total 5 0
Total number of employees who left as a % of the total employment 0 7.4%
Employment Equity
Post level Male Female Total
African Coloured Indian White African Coloured Indian White
Senior Management 2 0 0 0 0 0 0 0 2
Management 3 0 1 3 2 0 1 0 10
Middle management & high level 1 0 0 3 1 0 1 3 9 specialist
36 ANNUAL REPORT 2018-2019 Performance Information
Supervisor & high level skilled/ clerical 10 0 1 0 10 0 1 1 23
Lower level skilled/ clerical 7 0 0 0 6 0 0 0 13
Temporary contracts and internships 4 0 0 0 5 0 0 1 10
Total 27 0 2 6 24 0 3 5 67
HIV / AIDS & Health Promotion Programmes Units/ categories of employees identified to be at high risk of contracting HIV & related diseases (if any) N/A
Labour Relations
Misconduct and Disciplinary Hearing Finalised Outcomes of the disciplinary hearings Number
Correctional Counseling 0
Verbal Warning 0
Written Warning 0
Final Written Warning 0
Suspended Without pay 0
Fine 0
Demotion 0
Dismissal 0
Not Guilty 0
Case Withdrawn 0
Total 0
Types of Misconduct Addressed at Disciplinary Hearings Type of misconduct Number
Unauthorized absence 0
Late arrival 0
Poor Work Performance 0
Gross Irregularities 0
Skills Development Training Needs Identified Gender Number of employees as at 1 Training needs identified at the start of reporting period April 2018 Learnerships Skills programmes and other short Other forms of Total courses training Female 29 0 24 0 24 Male 23 0 15 0 15 Total 52 0 39 0 39
ANNUAL REPORT 2018-2019 37 Performance Information
Training Needs Provided Gender Number of employees as at Training needs provided at start of reporting period 31 March 2019 Learnerships Skills programmes and other short Other forms of Total courses training Female 24 0 25 0 25 Male 25 0 24 0 24 Total 49 0 49 0 49
38 ANNUAL REPORT 2018-2019 Performance Information
PART D: GOVERNANCE
1. Introduction Corporate governance embodies processes and systems by which the KwaZulu-Natal Museum is directed, controlled and held to account. In addition to legislative requirements based on the KwaZulu-Natal Museum’s enabling legislation, corporate governance with regard to the KwaZulu-Natal Museum is applied through the precepts of the Public Finance Management Act (PFMA) and run in tandem with the principles contained in the King’s Report on Corporate Governance.
Parliament, the Executive and the Accounting Authority of the public entity are responsible for corporate governance.
Council The KwaZulu-Natal Museum, a Declared Cultural Institution in terms of the Cultural Institutions Act, 1998 (Act 119 of 1998) has no share capital. The Institution is governed by the Council, appointed by the Minister of Arts and Culture. The term of the old Council began on 01 September 2015 and ended 31 August 2018. On 01 September 2018 a new Council assumed office and its term is due to expire in August 2021.
2.1. The Functions of Council
The functions of Council are:- • To formulate policy; • To hold, preserve and safeguard all movable and immovable property of whatever kind placed in their care or loaned or belonging to the KwaZulu-Natal Museum; • To receive, hold, preserve and safeguard all specimens and collection of all other movable property placed under its care and management under Section 10 (1) of the Cultural Institutions Act; • To raise funds for the KwaZulu-Natal Museum; • To manage and control the monies received by the KwaZulu-Natal Museum and to utilise those monies for defraying expenses in connection with the performance of its functions; • To keep a proper record of the property of the KwaZulu-Natal Museum, and to submit to the Director-General any returns required by him or her in regard thereto and to cause proper books of account to be kept; • To determine and substitute the Cultural Institutions Act and with the approval of the Minister, the object of the declared institution; and • To generally carry out the objects of the declared institution.
Council may determine the hours and conditions to which the public may visit the KwaZulu-Natal Museum. The Council shall have the power to appoint such persons as it considers necessary to perform the functions of the KwaZulu-Natal Museum. The determination of the remuneration and terms and conditions of services shall be in accordance with the scheme approved by the Minister in consultation with the Minister of Finance.
2.2. Statement of Council Members’ Responsibility Council members are responsible for the maintenance of adequate accounting records and the preparation and integrity of the Annual Financial Statements (AFS) and related information. The auditors are responsible for reporting on the fair presentation of the Annual Financial Statements for 2018/2019. The AFS are prepared on a going-concern basis. Nothing has come to the attention of the members of Council to indicate that the institution will not remain a going concern for the foreseeable future.
The AFS was prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP 1 to 3). The Institution’s Audit and Risk Committee approved the AFS at its meeting on 17 May 2019. Council approved the AFS at its meeting on 25 May 2019.
Council is also responsible for the systems of internal controls that are designed to provide reasonable, but not absolute, assurance as to the reliability of the financial statements, and to adequately safeguard, verify, and maintain accountability for assets, and to prevent and detect material misstatements and losses.
In line with the Cultural Institutions Act of 1998 and the Public Finance Management Act of 1999, and in order to undertake its role in a more effective manner, Council has delegated its management responsibilities to the Director and suitably trained personnel appointed by and under the management of the Director. Council continues to develop policy and provide an oversight role. Nothing has come to the attention of the members of Council to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review.
Council is very grateful to the Minister for the support that he has given. Council has reviewed and approved the Annual Performance Plan for 2018/2019. During the period under review, Council reviewed and approved the following policies:- Service Fees Guidelines Policy Fraud Prevention Policy Capacity Management Policy
ANNUAL REPORT 2018-2019 39 Performance Information
• Collections Management Policy • Employee Relations Policy • Employee Reward Policy • Employment Related Policy • HIV & AIDS Policy • Loss Control Policy • Emergency Financial Assistance Policy • Hardware Usage Policy • Finance and Procurement Committee Terms of Reference • HR & Remuneration Committee Terms of Reference • Audit and Risk Committee Charter • Volunteers Policy
2.3. Composition of Council
Council for the period 01 September 2018 – 31 March 2019 Number of Meetings Name Date Appointed Qualifications Other Committees Attended Mazibuko, Prof. N.M. September 2018 BA (UNIZUL), BA (Hons) 2 (Chairperson) (UNIZUL), MA (Soc.Sci) (UN), PhD (ILLINOIS), Dip (PR) (DAMELIN) Stobie, Prof. B. September 2018 Bachelor of Commerce, Audit & Risk Committee 2 (Deputy Chairperson) Certificate in the Theory and Finance and of Accountancy (UN) Procurement Committee Chartered Accountant (S.A.) (Institute of C.A.s) Master of Accountancy (UN) Jivan, Mr. U. September 2018 B.A, LLB (UKZN) Institutional 2 Advancement and Ethics Committee Khorommbi, Mr. T.C. September 2018 Audiovisual Production Institutional 2 Management Advancement and Ethics Committee Magaqa, Adv. S. September 2018 BProc (UNITRA), LLB Human Resources 2 (Wits) and Remuneration Committee Mhlongo, Ms. N. September 2018 CA (SA), CTA (Honours Audit & Risk Committee 2 Bcompt) (UNISA), BCom and Finance and (UKZN) Procurement Committee Musundwa, Ms. S. September 2018 Masters (MA) in Media Finance and 2 Theory and Practice, Procurement Committee Honours in Economics and Institutional (Bachelor of Commerce), Advancement and Ethics Bachelor of Commerce Committee Degree (Economics & Finance) (UCT), Nkosi, Dr. N. September 2018 Dip.PHC Ed. University Human Resources 2 of Witwatersrand, and Remuneration M.B.Ch.B. UN, B.Sc. Committee University of Botswana, Lesotho and Swaziland Ramagoshi, Ms. M. September 2018 Masters in Public Human Resources 1 Administration (UP), and Remuneration Bachelor of Education, Committee Bachelor of Arts (UL -Turfloop), Junior Secondary Teachers Certificate (Transvaal College of Education), Homecraft Teachers Certificate
40 ANNUAL REPORT 2018-2019 Performance Information
In addition to the above Council members, persons attending the Council meetings included: Mr S. Miya, Deputy Director; Mr S. Dlamini, Executive Manager: Finance & Administration; Mr M. Mazibuko, Project Manager; Miss M. Ndlovu, Finance and Administration Officer and Ms N. Zondi, Council Secretary. Council for the period 01 April – 31 August 2018 Number of Meetings Name Date Appointed Qualifications Other Committees Attended Mazibuko, Prof. N.M. September 2015 BA (UNIZUL), BA (Hons) 2 (Chairperson) (UNIZUL), MA (Soc.Sci) (UN), PhD (ILLINOIS), Dip (PR) (DAMELIN) Dantile, Mr. F. September 2015 BCom (University of Human Resources 2 (Deputy Chairperson) Transkei), BA (Hons) and Remuneration (WSU), Dip (Business Committee Management) (Executive Education), Dip (Labour law) (IDEC), Strategic Human Resources Management Programme (UCT), Directors Induction Programme (Wits Business School) Coovadia, Mr. D. September 2015 B.Compt (Hons), CA Audit & Risk Committee 1 (SA), RA, FIMC, CMC, and Finance and FIAC, FCIS, FSAIM, BA Procurement Committee (SA), PIA (SA), FIIASA CAT (UK), MInstD Magaqa, Adv. S. November 2018 BProc (UNITRA), LLB Human Resources 2 (Wits) and Remuneration Committee Makunga, Prof. N. September 2015 BA (Hons) (Fort Audit & Risk Committee 1 Hare), MA Clinical and Finance and Psychology (Natal), Procurement Committee D Litt et Phil (UNISA); Dip (Management Practice) (Isis College), Dip (General Nursing) (Natalspruit) Malapane, Dr. S. September 2015 Doctor in Divinity Finance and 2 (Honorary) (Wesleyan Procurement Committee Theological Seminary), Project Management (Cert.), Professional Presentation Skills (Cert.) (CBM), Estate Agency (Cert.) (Estate Agency Affairs Board), Marketing (Cert.) Nkosi, Dr. N. February 2018 Dip.PHC Ed. University 2 of Witwatersrand, M.B.Ch.B. UN, B.Sc. University of Botswana, Lesotho and Swaziland Ranchod, Mr. K. September 2015 Pr. Teachers Certificate, Finance and 2 Pr. Teachers Diploma Procurement Committee (Dower Training College), BA (UPE), B. Ed (Rhodes), MA in Education Planning, MA in Education Theory & Policy (Penn State University, USA), MA in Social Research (UJ)
ANNUAL REPORT 2018-2019 41 Performance Information
In addition to the above Council members, persons attending the Council meetings included: Mr S. Miya, Deputy Director; Mr S. Dlamini, Executive Manager: Finance & Administration; Mr M. Mazibuko, Project Manager; Miss M. Ndlovu, Finance and Administration Officer and Ms N. Zondi, Council Secretary.
2.4 Committees Various Committees of the Council met to discuss specific issues and made recommendations to Council. The following Committees met during the 2018/2019 financial year:
Committees for the period 01 September 2018 – 31 March 2019 Committee No. of Meetings Held No. of Members Name of Members Audit and Risk Committee 2 4 Jordan, Mr M.A. PA (SA) (Chairperson independent); Stobie, Prof B. CA (SA); and Mthembu, Ms N. (independent); Mhlongo, Ms. N. CA (SA) Human Resources and 2 3 Magaqa, Adv. S (Chairperson); Nkosi, Dr N. and Remuneration Subcommittee Ramagoshi, Ms. M.
Finance and Procurement 2 3 Stobie, Prof B. CA (SA); Mhlongo, Ms. N. CA (SA); Subcommittee Musundwa, Ms. S.
Committees for the period 01 April – 30 August 2018
Committee No. of Meetings Held No. of Members Name of Members Audit and Risk Committee 2 5 Stobie, Prof B. CA (SA) (Chairperson - independent); Jordan, Mr M.A. PA (SA) (independent); Coovadia, Mr D; Makunga, Prof. N and Mthembu, Ms N. (independent) Human Resources and Remu- 2 3 Dantile, Mr F. (Chairperson); Magaqa, Adv. S and neration Subcommittee Nkosi, Dr N. (from August 2018) Finance and Procurement 2 3 Malapane, Dr. S. (Chairperson); Coovadia, Mr D and Subcommittee Ranchod, Mr K. Institutional Advancement Com- 1 3 Ranchod, Mr K. (Chairperson); Malapane, Dr. S. and mittee Coovadia, Mr D
Risk Management Risks are managed in terms of the KwaZulu-Natal Museum Risk Management Policy and the Risk Assessment Management Plan and Disaster Response and Recovery Plan.
A risk assessment is conducted annually to identify risks; the risks are recorded in the risk assessment management plan. The risk assessment management plan is monitored, reviewed and approved by Council. Management reports on progress made to address the risks identified to the Audit and Risk Committee and Council on a quarterly basis.
Internal Control Unit Internal Audit performs audits as per the approved internal audit strategy. The internal audit services are outsourced.
Compliance with Laws and Regulations The KwaZulu-Natal Museum, in terms of Section 4 of the Cultural Institutions Act, constitutes a corporate body and accordingly, the KwaZulu-Natal Museum, the Council and all members are required to comply with the principles of good corporate governance and all laws and regulations.
The Audit and Risk Committee is in place to ensure that the KwaZulu-Natal Museum complies with all the laws and regulations.
The KwaZulu-Natal Museum has in place an internal audit function that performs a review of compliance with laws and regulations on an annual basis.
The KwaZulu-Natal Museum reports on compliance with laws and regulations on a quarterly basis. The PFMA checklist is completed and approved by Council.
Minimising Conflict of Interest Management and all staff of the KwaZulu-Natal Museum complete an annual declaration of interest form. Management and staff are encouraged to update the form as and when there is a change in circumstances. In addition, prior to the
42 ANNUAL REPORT 2018-2019 Performance Information commencement of the Council meetings, Council members are required to declare potential interest on an agenda item. Code of Conduct
The KwaZulu-Natal Museum has in place the Employee Relations Policy, the policy deals with conduct in the workplace and covers the following topics:-
• Relationship Management Strategy • Statutory Legislative Requirements • Conflict Resolution an Preventative Mechanisms • Disciplinary Code and Procedure • Grievance Procedure • Harassment Policy
The Employee Relations Policy is stored in the public drive on the Museum network to be easily accessible to all staff members.
Health, Safety and Environment Issues The KwaZulu-Natal Museum has established an internal Health and Safety Committee. The primary objective of the committee is to ensure that the Museum is health and safety regulations compliant. Health and safety matters are attended to on a day to day basis. The committee meets on a quarterly basis and a Health and Safety Report is presented at the Audit and Risk Committee on a quarterly basis. Compliance with the health and safety regulations is one of the performance indicators under the Administration Programme (Support Services Sub-programme).
Social Responsibility The KwaZulu-Natal Museum is an entity under the Department of Arts and Culture and accordingly it must address the national imperatives.
As part of contributing towards skills development an agreement of understanding with the Durban University of Technology is in place to offer experiential training to final year tourism students; twenty-three students benefited from this programme. The rural outreach programme is pivotal at ensuring that the rural communities have access to Museum educational programmes by taking the Museum to the people; this initiative goes a long way in supplementing learner education since the Museum’s educational programmes are curriculum aligned. The Museum celebrated the Nelson Mandela Day by conducting activities in the spirit of uplifting the communities where it operates.
PART E: FINANCIAL INFORMATION
REPORT OF THE AUDIT AND RISK COMMITTEE
We are pleased to present our report for the financial year ended 31 March 2019. Audit and Risk committee Members and Attendance
The Audit and Risk Committee consists of the members listed hereunder and met four times during the period under review as per its approved terms of reference.
Members Members for the period 01 September 2018 – 31 March 2019 Name of Members Number of Meetings Attended Jordan, Mr M.A. (independent, Chairperson as of 1 June 2018) 2 Stobie, Prof B 2 Mhlongo, Ms. N. 2 Mthembu, Ms N. (independent) 2
Members for the period 01 April – 31 August 2018 Name of Members Number of Meetings Attended Jordan, Mr M.A. (independent, Chairperson as of 1 June 2018) 1 Stobie, Prof B (Chairperson – independent, until term end on 31 May 2018) 1 Coovadia, Mr D 1 Makunga, Prof. N 2 Mthembu, Ms N. (independent) 2
ANNUAL REPORT 2018-2019 43 Audit and Risk Committee Responsibility
The Audit and Risk Committee reports that it has complied with its responsibilities arising from Section 51 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 27.1. The Audit and Risk Committee also reports that it has adopted appropriate formal terms of reference as its Audit and Risk Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein, except that we have not reviewed changes in accounting policies and practices.
The Effectiveness of Internal Control
Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the previous year revealed certain weaknesses, which were then raised with the public entity.
The following internal audit work was completed during the year under review:
Cash management Procurement and payment cycle Budget management Performance information Safeguarding of assets including heritage assets The information systems environment Reliability and integrity of financial and operational information Compliance with laws, regulations and controls
In-Year Management Quarterly Report
The public entity has reported quarterly to the National Treasury and the Department of Arts and Culture as is required by the PFMA.
Evaluation of Financial Statements
We have reviewed the annual financial statements prepared by the public entity and the management report issued by the Auditor-General.
Auditor’s Report
The Audit and Risk Committee accepts the conclusions of the Auditor-General on the annual financial statements and is of the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor- General.
44 ANNUAL REPORT 2018-2019 Audit Report
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE KWAZULU-NATAL MUSEUM
Report on the audit of the financial statements
Opinion
1. I have audited the financial statements of the KwaZulu-Natal Museum set out on pages 50 to 76, which comprise statement of financial position as at 31 March 2019, the statement of financial performance, statement of changes in net assets, cash flow statement and the statement of comparison of budget information with actual information for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.
2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the KwaZulu-Natal Museum as at 31 March 2019, and its financial performance and cash flows for the year then ended in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No.1 of 1999) (PFMA)
Basis for opinion
3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.
4. I am independent of the entity in accordance with sections 290 and 291 of the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code), parts 1 and 3 of IESBA and the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Responsibilities of the council, which constitutes the accounting authority, for the financial statements
6. The council, which constitutes the accounting authority, is responsible for the preparation and fair presentation of the financial statements in accordance with the SA Standards of GRAP and the requirements of the PFMA, and for such internal control as the council, which constitute the accounting authority, determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.
7. In preparing financial statements, the council, which constitutes the accounting authority, is responsible for assessing the KwaZulu-Natal Museum’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the council, which constitutes the accounting authority, either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.
Auditor-general’s responsibilities for the audit of the financial statements
8. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
9. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.
Report on the audit of the annual performance report Introduction and scope
10. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for the selected programme presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.
11. My procedures address the reported performance information, which must be based on the approved performance planning documents of the entity. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions
ANNUAL REPORT 2018-2019 45 Audit Report
relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.
12. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programme presented in the annual performance report of the entity for the year ended 31 March 2019:
Programme Pages in the annual performance report
Programme 3 – Public engagement 28 – 35
13. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
14. I did not raise any material findings on the usefulness and reliability of the reported performance information for the selected programme.
Other matters
15. I draw attention to the matters below.
Achievement of planned targets
16. Refer to the annual performance report on pages 19 to 35 for information on the achievement of planned targets for the year and explanations provided for the under and over achievement of a number of targets.
Adjustment of material misstatements
17. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of the Public Management programme. As management subsequently corrected the misstatements, I did not raise any material findings on the usefulness and reliability of the reported performance information.
Report on the audit of compliance with legislation
Introduction and scope
18. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the entity with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.
19. I did not raise material findings on compliance with specific matters in key legislation set out in the general notice in terms of the PAA.
Other information
20. The council, which constitutes the accounting authority, is responsible for the other information. The other information comprises the information included in the annual report which includes the director’s report as required by PFMA. The other information does not include the financial statements, the auditor’s report and the selected programme presented in the annual performance report that have been specifically reported in this auditor’s report.
21. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.
22. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programme presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.
23.The other information I obtained prior to the date of this auditor’s report includes the chairperson of the council and the audit committee chair’s reports and the final annual report is expected to be made available to us after 31 July 2019.
46 ANNUAL REPORT 2018-2019 Audit Report
24. If, based on the work I have performed on the other information that I obtained prior to the date of this auditor’s report, I conclude that there is a material misstatement in this other information, I am required to report that fact.
25. After I receive and read the outstanding information, and if I conclude that there is a material misstatement, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.
Internal control deficiencies
26. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it.
27. I did not identify any significant deficiencies in internal control.
Pietermaritzburg 31 July 2019
ANNUAL REPORT 2018-2019 47 ANNEXURE – AUDITOR-GENERAL’S RESPONSIBILITY FOR THE AUDIT
1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected and on the entity’s compliance with respect to the selected subject matters.
Financial statements
2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also:
• identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the council, which constitute the accounting authority.
• conclude on the appropriateness of the council’s, which constitute the accounting authority, use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the KwaZulu-Natal Museum’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause an entity to cease continuing as a going concern
• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation
Communication with those charged with governance
3. I communicate with the council, which constitute the accounting authority, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
4. I also confirm to the council, which constitute the accounting authority, that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards.
48 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 1
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
DIRECTORS for the year ended 31 March 2019
Council Members for the period: (refer Note 16 for details of emoluments)
Council Members for the period between 1 September 2018 - 31 March 2019 Names of Council Members Number of Council Meetings Attended Mazibuko, Prof. N.M. (Chairperson) 2 Stobie, Prof. B (Deputy Chairperson) 2 Maphasa, Mr L.J. (Director) 2 Jivan, Mr U 2 Khorommbi, Mr TC 2 Magaqa, Adv. S 2 Mhlongo, Ms N 2 Musundwa, Ms S 2 Nkosi, Dr N. 2 Ramagoshi, Ms M 1
Council Members for the period between 1 April 2018 - 31 August 2018 Names of Council Members Number of Council Meetings Attended Mazibuko, Prof. N.M. (Chairperson) 2 Dantile, Mr. F. (Deputy Chairperson) 2 Maphasa, Mr L.J. (Director) 1 Coovadia, Mr. D. 1 Magaqa, Adv. S 2 Makunga, Prof. N. 1 Malapane, Dr. S. 2 Nkosi, Dr N. (from 1 February 2018) 2 Ranchod, Mr K. 2
Executive Directors for the period: (refer Note 16 for details of emoluments)
Names of Directors Designation Maphasa, Mr L.J. Director Miya, Mr S.R. Deputy Director Dlamini, Mr S.E. Executive Manager: Finance and Administration Flanagan, Mr W. Executive Manager: Exhibitions Midgley, Dr. J. Principal Curator: Natural Sciences Ntombela, Mrs T.S. Executive Manager: Education Blundell, Dr. G. Principal Curator: Human Sciences
Bankers: First National Bank
Auditors: Auditor-General of South Africa
Registered Office 237 Jabu Ndlovu Street Pietermaritzburg 3201
Contact Details: Telephone: 033 - 345 - 1404 Fax: 033 - 345 - 0561
Website: http://www.nmsa.org.za
ANNUAL REPORT 2018-2019 49 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 2
ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
CONTENTS PAGE
Approval of the Financial Statements 502
Statement of Financial Position 513
Statement of Financial Performance 524
Statement of Changes in Net Assets 535
Statement of Cash Flow 546
Notes to the Financial Statements 7 - 2855-76
APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS
The Annual Financial Statements set out on pages 3 - 28 which are the responsibility of the Director and 49-76 the Council of the Museum, were approved by them on 25 May 2019 and are signed on their behalf by:
PROF. N. M. MAZIBUKO MR L. J. MAPHASA CHAIRPERSON DIRECTOR
50 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 3 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
STATEMENT OF FINANCIAL POSITION as at 31 March 2019
NOTES 2018/19 2017/18 R R ASSETS
Non current assets 59 022 609 56 688 146 Property, plant and equipment 2 5 463 133 3 316 944 Intangible Assets 3 323 515 141 749 Heritage Assets 4 53 235 961 53 229 453
Current assets 38 558 551 16 281 143 Inventories 5 24 428 21 558 Trade and other receivables 6 501 877 379 381 Cash and cash equivalents 7 38 032 245 15 880 204
TOTAL ASSETS 97 581 159 72 969 288
LIABILITIES
Non current liabilities Deferred grants and project funding 8 29 517 332 6 615 274
Current liabilities 5 797 542 6 092 149 Trade and other payables 9 4 143 472 4 908 089 Provisions 10 1 654 069 1 184 060
TOTAL LIABILITIES 35 314 873 12 707 423
NET ASSETS CAPITAL AND RESERVES
Accumulated surplus 9 049 230 7 044 810 Accumulated surplus: from operations 24 8 272 230 6 437 960 Add: Non-repayable funding: funds available 23 777 000 606 850
Valuation Reserve 53 217 055 53 217 055
TOTAL NET ASSETS 62 266 285 60 261 865
TOTAL NET ASSETS AND LIABILITIES 97 581 159 72 969 288
ANNUAL REPORT 2018-2019 51 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 4 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
STATEMENT OF FINANCIAL PERFORMANCE
NOTES 2018/19 2017/18 R R
REVENUE
Non exchange revenue 50 275 594 47 067 922 Transfers and subsidies 11.1 39 145 767 36 539 627 Services in-kind 11.2 11 129 828 10 528 295
Exchange revenue 2 009 946 1 328 468 Sale of goods and rendering of services 12 560 659 574 697 Interest 1 449 287 753 771
TOTAL REVENUE 52 285 540 48 396 390
EXPENDITURE
Compensation of employees 13 (24 876 478) (21 711 966) Goods and services 14 (24 548 730) (24 442 192) Loss on disposal of assets (2 857) (104 778) Depreciation and amortisation of assets 2 (853 055) (674 746)
TOTAL EXPENDITURE (50 281 120) (46 933 682)
NET SURPLUS FOR THE YEAR 2 004 420 1 462 708
52 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 5 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
STATEMENT OF CHANGES IN NET ASSETS
Revaluation Accumulated Total Net NOTES Reserve Surplus Assets
R R R
Balance at 1 April 2017 53 217 055 5 582 102 58 799 157
Surplus for the year - 1 462 708 1 462 708
Balance at 1 April 2018 24 53 217 055 7 044 810 60 261 865
Surplus for the year - 2 004 420 2 004 420
Balance at 31 March 2019 24 53 217 055 9 049 230 62 266 285
ANNUAL REPORT 2018-2019 53 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 6 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
STATEMENT OF CASH FLOW
NOTES 2018/19 2017/18 R R
CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts 41 155 713 42 796 060 Non exchange revenue 11 39 145 767 36 539 627 Sale of goods and rendering of services 12 560 659 574 697 Interest received 1 449 287 753 771 Other operating revenue 26 - 4 927 965
Cash payments (38 715 354) (35 625 863) Compensation of employees 13 (24 876 478) (21 711 966) Goods and services 14 (13 418 902) (13 913 897) Other operating expenditure 26 (419 974) -
Net cash generated from operating activities 25 2 440 359 7 170 197
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of plant and equipment 2 (2 944 976) (937 326) Acquisition of intangible assets 3 (254 891) (104 448) Acquisition of heritage assets 4 (6 507) (12 399) Proceeds from disposal of equipment 16 000 8 285
Net cash (outflow) from investing activities (3 190 375) (1 045 889)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase / (Decrease) in Deferred grants and project funding 8 22 902 058 1 267 536
Net cash (outflow) from financing activities 22 902 058 1 267 536
Net increase in cash and cash equivalents 22 152 042 7 391 844 Cash and cash equivalents at the beginning of the year 7 15 880 204 8 488 360 Cash and cash equivalents at end of the year 7 38 032 245 15 880 204
54 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 7 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2019
1 ACCOUNTING POLICIES
1.1 Basis of Preparation
The financial statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practices (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board in accordance with Section 55(1)(b) of the Public Finance Management Act, (Act No. 1 of 1999). Assets, liabilities, revenues and expenses have not been offset except where offsetting is required or permitted by a Standard of GRAP. The accounting policies are applied consistent with those used to present the previous year's financial statements, unless explicitly stated. The details of any changes in accounting policies are explained in the relevant policy.
The annual financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention, except for financial instruments that have been measured at fair value.
The following statements of Generally Recognised Accounting Practice (GRAP) issued by the Accounting Standards Board are in issue but not applicable to the Museum:
GRAP 27 Agriculture GRAP 107 Mergers IFRS 4 Insurance contracts IFRS 6 Exploration for and evaluation of mineral resources IAS 12 Income taxes SIC - 25 Income taxes - Changes in tax status of entity or its shareholders SIC - 29 Service concession agreements: disclosures IFRIC 12 Service concession arrangements IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine IFRIC 21 Levies
The following statements of Generally Recognized Accounting Practice (GRAP) issued by the Accounting Standards Board have been approved and an effective date has been determined, the KwaZulu-Natal Museum may consider formulating an accounting policy.
GRAP 20 Related Parties 1 April 2019 GRAP 32 Service Concession Arrangements: Grantor 1 April 2019 GRAP 108 Statutory Receivables 1 April 2019 GRAP 109 Accounting principals and agents 1 April 2019 GRAP 110 Living and Non-Living Resources 1 April 2020
The following statements of Generally Recognized Accounting Practice (GRAP) issued by the Accounting Standards Board have been approved but an effective date has not yet been determined:
IGRAP 17 Service Concession Arrangements Where a Grantor Controls a Significant Residual Interest in an Asset.
1.2 Use of Estimates and Judgements
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future period if the revision affects both current and future periods.
In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the following notes:
Note 1.4 Property, plant and equipment Note 1.6 Intangible assets Note 1.16 Provisions Note 11.2 Services in kind (deemed rental)
1.3 Inventories
Inventories are valued at the lower of cost or net realisable value. Inventory comprises museum shop stock, vending machine stock and consumable stationery. The cost of inventories comprises all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition, and is determined using the first-in, first-out method. Obsolete, redundant and slow moving inventories are identified on a regular basis and are written down to their estimated net realisable values.
1.4 Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. The depreciation rates are in line with the KwaZulu-Natal Museum's Fixed Asset Policy. Depreciation is charged so as to write off the cost or valuation of assets over their estimated useful lives, using the straight line method on the following basis:
ANNUAL REPORT 2018-2019 55 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 8 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Property, Plant and Equipment (Continued)
Vehicles 20% Equipment 16.6% to 25% Furniture - wooden 16.6% Furniture - metal 16.6% Computers 33.3% Scientific equipment 20%
The useful life of assets is reassessed on an annual basis and any change in estimate is taken into account in the determination of remaining depreciation and amortisation charges.
Subsequent Measurement
Subsequent expenditure relating to an item of property, plant and equipment is capitalised when it is probable that future economic benefits from the use of the asset will be increased. All other subsequent expenditure is recognised as an expense in the period in which it is incurred.
1.5 Impairment
Non-Financial Assets
The carrying amount of KwaZulu-Natal Museum assets, other than inventories, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated.
The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. For the purpose of impairment testing, the condition of the asset is evaluated to ascertain its value in use. Where the asset is damaged beyond repair, the fair value of the asset is its scrap value.
An impairment loss is recognised if the carrying amount of the asset exceeds its recoverable amount. Impairment losses are recognised in profit or loss.
Reversals of Impairment
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortisation, if no impairment loss has been recognised.
1.6 Intangible Assets
Intangible assets are shown at cost less accumulated amortisation and impairment losses. The useful life of intangibles is reassessed on an annual basis and any change in estimate is taken into account in the determination of remaining amortisation charges. The amortisation is calculated on a straight line method to write-off intangible assets over their estimated useful life as follows:-
Software: 3 Years
1.7 Assets not Reflected
The following assets are not reflected in the Statement of Financial Position:
Land and Buildings
The land and buildings are made available to the KwaZulu-Natal Museum under section 9 of the Cultural Institutions Act. The land and buildings are owned by the Department of Public Works and are leased to the KwaZulu-Museum at no consideration. It is the policy of the KwaZulu-Natal Museum to include the fair value of the rental benefit in the services in-kind item on the face of the Statement of Financial Performance.
1.8 Heritage Assets
Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic significance, and are held indefinitely for the benefit of present and future generations. Heritage assets are recognised as an asset if, and only if: (a) it is probable that future economic benefits or service potential association with the asset will flow to the entity, and (b) the cost or fair value of the asset can be measured reliably.
1.8.1 Recognition The museum recognises a heritage asset as an asset if it is probable that future economic benefits or service potential associated with the asset will flow to the entity and where cost or fair value of the asset can be reliably measured.
56 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 9 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Heritage Assets (Continued)
The Museum will assess the degree of certainty attached to the flow of future service potential or economic benefits:
(a) If the entity holds an asset that might be regarded as a heritage asset but which, on initial recognition, does not meet the recognition criteria of heritage assets because of the need to analyse the proposed collection items to determine if they conform to the set collection criteria through evaluation and research. (b) For recognition of heritage assets, the asset needs to be controlled by the Museum as a result of past events. Such events may include: Purchase, donation, bequeasts, loan or transfer. (c) Particularly within the Natural History Collection, material is often retrieved in a fragmentary state – finding a completely articulated specimen is the exception rather than the rule. A great deal of knowledge is thus required to identify and systematise the collections. (d) The research required to identify, analyse and classify heritage items is often a collaborative effort between local and international experts that span several months, even years. These items cannot be recognised in the financial statements, but will be recorded and controlled in the register. Relevant and useful information about them shall be disclosed in the notes to the financial statements.
1.8.2 Measurement The value of assets have been determined using either cost or fair value. Values have been assigned to the heritage assets, which may appreciate in value, and which values are to be reviewed from time to time. Wherever possible, the appraisers have adopted the discipline of ‘Open Market’ principles in determining value, however values derived are largely determined by the skill and experience applied by the appraiser at the date of valuation.
1.8.3 Directive 7: Use of Deemed Cost for Heritage Assets Upon Initial Recognition and Adoption of a Standard The following terms are used in this Directive with the meanings specified:
(a) Acquisition cost: When an entity initially recognises assets such as items of property, plant and equipment, investment properties, intangible assets and heritage assets using the Standards of GRAP, it measures those assets using either cost (if the asset is acquired in an exchange transaction) or at fair value (if the asset is acquired in a non-exchange transaction). This cost or fair value on initial acquisition of an asset is the acquisition cost.
(b) Deemed cost: Deemed cost is a surrogate value for the cost or fair value of an asset at its initial acquisition, and is determined by reference to the fair value of the asset at the date of adopting the Standards of GRAP measurement date).
(c) Measurement date (for purposes of this Directive): Measurement date is the date that an entity adopts the Standards of GRAP and is the beginning of the earliest period for which an entity presents full comparative information, in its first financial statements prepared using Standards of GRAP.
For the purposes of this Directive, the measurement of assets at fair value on the adoption of the Standards of GRAP, does not constitute: (a) a revaluation in accordance with the Standards of GRAP on Property, Plant and Equipment, Intangible Assets or Heritage Assets; or (b) the application of the fair value model in the Standard of GRAP on Investment Property, paragraph A4, which states that subsequent depreciation, if applicable, is based on that deemed cost, and starts from the measurement date.
1.8.4 Initial Entries Using Deemed Cost When an entity initially measures assets using the deemed cost approach in this Directive, it recognises the effect:
(a) as an adjustment to the opening balance of accumulated surpluses or deficits in the opening statement of financial position prepared using Standards of GRAP; or (b) in revaluation surplus if an entity adopts the revaluation model in the Standards of GRAP on Property, Plant and Equipment, Intangible Assets or Heritage Assets. (c) The Museum has adopted the cost model for Heritage Assets.
Heritage assets shall not be depreciated but the Museum shall assess at each reporting date whether there is an indication that it may be impaired. If any such indication exists, the entity shall estimate the recoverable amount or the recoverable service amount of the heritage asset.
1.8.5 Valuation of Heritage Assets The existence of published price quotations in an active market is the best evidence of the fair value, such as the quoted price from recent auctions published in local newspapers; however if the fair value cannot readily be ascertained by reference to quoted prices in an active and liquid market; the fair value of a heritage asset can be determined from market-based evidence arrived at by appraisal. An appraisal of the value of the asset is normally undertaken by a member of the valuation profession, who holds a recognised and relevant professional qualification. The fair value will be ascertained by reference to quoted prices in an active and liquid market. (GRAP 103.46). The valuation of heritage assets was performed by a member of the valuation profession.
ANNUAL REPORT 2018-2019 57 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 10 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Heritage Assets (Continued)
(a) Valuation Techniques Where the fair value of an asset cannot be determined, and where no evidence is available to determine the market value in an active market of a heritage asset; a valuation technique may be used to determine its fair value. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, and reference to the current fair value of other heritage assets that have substantially similar characteristics in similar circumstances and locations, adjusted for any specific differences in circumstances. If there is a valuation technique commonly used by market participants to price such an asset, and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions, the entity may use that technique in determining the fair value (GRAP 103.47).
(b) Inability to Value Where no value can be placed on an item, it will not be recognised, but information should be disclosed about such items and the reason why such items cannot be valued (GRAP 103.17). Where the entity holds an asset that might be regarded as a heritage asset but which, on initial recognition, does not meet the recognition criteria of heritage assets because it cannot be reliably measured, relevant and useful information about it shall be disclosed in the notes to the financial statements. These items are controlled in the asset register.
(c) Valuing an Entire Collection In determining the fair value of a collection, the entity has considered where appropriate, whether the entire collection has a higher value than the sum of the values of the individual items making up that collection. Under such circumstances, the carrying value of the entire collection may need to be reassessed, when a group of individual heritage assets constitutes a collection. If items are removed from the collection, the value of the collection may also need to be reassessed (GRAP 103.45).
1.8.6 Heritage Asset Classification A class of heritage assets is a grouping of heritage assets of a similar nature or function in the museums operations, that is shown as a single item for the purpose of disclosure in the financial statements.The museum has recognised the following classes of heritage assets: • Natural History • Cultural History • Library Material
Object collections in the Cultural History Collection consist of tangible artefacts that reflect the cultural and artistic knowledge, expressions, and behaviour of their makers and users, and comprise archaeological, historical and contemporary cultural artefacts and artworks. The Library Collections consists of both published and unpublished material, as well as research material.
1.8.7 Heritage Assets on Loan to other Institutions The financial statement shall also disclose information on heritage assets that are borrowed from, or on loan to other entities.
1.8.8 Retrospective Application Although the Museum adopted the accounting standard on 1 April 2012, it has taken advantage of the transitional period of three (3) years to fully implement GRAP 103 in terms of Directive 2. The three year period in which entities were not required to measure heritage assets for reporting periods beginning on or after a date within three years following the date of initial adoption of the Standard of GRAP on Heritage Assets has ended.
Where entities have not yet determined the deemed cost of those assets within the scope of Directive 7, they should consider GRAP 3 Accounting Policies, Changes in Accounting Estimates and Errors, and consider whether this change in accounting policy can be applied retrospectively from this date, or whether it is impracticable to do so.
GRAP 3 states that: “When it is impracticable to determine the period-specific effects of changing an accounting policy on comparative information for one or more prior periods presented, the entity shall apply the new accounting policy to the carrying amounts of assets and liabilities as at the beginning of the earliest period for which retrospective application is practicable...”
It may be impracticable to determine the deemed cost retrospectively if, for example, the following circumstances exist:
(a) Relevant data may not have been collected in the prior period and cannot be obtained by alternative means that allows for retrospective application. (b) The entity is required to make significant estimates and assumptions about conditions that existed at a point in time in the past and cannot do so objectively without using hind-sight.
1.8.9 Impairments At each reporting date, the entity assesses whether there is an indication that it may be impaired. If any such indication exists, the entity shall estimate the recoverable amount or the recoverable service amount of the heritage asset.
58 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 11 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Heritage Assets (Continued) 1.8.10 Transfers Transfers from heritage assets are made when, and only when, the particular asset no longer meets the definition of a heritage asset. Transfers to heritage assets are made when, and only when, the particular asset meets the definition of a heritage asset.
1.8.11 De-recognition The carrying amount of a heritage asset is de-recognised: • on disposal, or • when no future economic benefits or service potential are expected from its use or disposal.
The gain or loss arising from the de-recognition of a heritage asset is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the heritage asset. Such difference is recognised in surplus or deficit when the heritage asset is de-recognised.
1.9 Employee Benefits
Short-term employee benefits The cost of short term employee benefits is recognised in the period in which the service is rendered and is not discounted.
Provision for employee benefits Provision for employee entitlement to annual leave represents the present obligation that the KwaZulu-Natal Museum has to as a result of employees’ services provided to the reporting date. The provision has been calculated at undiscounted amounts based on salary rates effective on the reporting date.
1.10 Publications
Expenses related to publications are written off in the year in which they are incurred.
1.11 Trust Funds
Funds received from the National Research Foundation (NRF) and other funding bodies (per note 8) are utilised only for approved research projects and programs. Any unspent funding has to be repaid to the funding bodies.
1.12 Recognition of Trust Funds (refer note 8)
Funds are recorded as deferred income and are then recognised as income on a systematic basis over the period necessary to match the funding with the related costs.
1.13 Financial Instruments
Initial recognition and measurements Financial instruments are recognised when the KwaZulu-Natal Museum becomes a party to the contractual provisions of the relevant instrument, and are initially measured at cost. Subsequent to initial recognition, these instruments are measured as set out below:
Cash and cash equivalents Cash and cash equivalents are stated at cost, which is the fair value. Cash and cash equivalents comprise cash at bank and deposits held on call with banks. Credit risk and interest rate risk is fully disclosed in note 15.
Trade and other payables Trade and other payables originated by the KwaZulu-Natal Museum are stated at cost, which is the fair value.
Trade and other receivables Trade and other receivables are stated at cost less provision for doubtful debts. Receivables are written off when considered irrecoverable.
1.14 Related Parties
Related party transaction is a transfer of resources or obligations between the related parties, regardless of whether a price is charged. Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions or if the related party entity and another entity are subject to common control. The disclosure note details the related party transactions.
Only transactions with related parties not at arm’s length or not in the ordinary course of business are disclosed.
ANNUAL REPORT 2018-2019 59 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 12 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
1.15 Cash and Cash Equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held on call and notice with the bank, all of which are available for use by the KwaZulu-Natal Museum unless otherwise stated. Cash and cash equivalents are measured at fair value.
1.16 Provisions
Provisions are recognised where the institution has a present legal or constructive obligation as a result of a past event, a reliable estimate of the obligation can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation.
1.17 Revenue from non-exchange Transactions
Revenue from non-exchange transactions arises when an entity receives value from another entity without directly giving approximately equal value in exchange. An asset acquired through a non-exchange transaction shall initially be measured at its fair value as at the date of acquisition. This revenue will be measured at the amount of increase in net assets recognised by the entity.
An inflow of resources from a non-exchange transaction recognised as an asset shall be recognised as a revenue, except to the extent that a liability is recognised for the same flow. As an entity satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it will reduce the carrying amount of the liability recognised as an amount equal to that reduction.
1.18 Revenue from Exchange Transactions
Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows represent an increase in net assets, other than increases relating to contributions from owners.
An exchange transaction is one in which the entity receives assets or services, or has liability extinguished, and gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.
Fair value is the amount at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.
Revenue from exchange transactions refers to revenue that accrued to the entity directly in return for services rendered and goods sold, the value of which approximates the consideration received or receivable. The full amount of the revenue is recognised and any impairment losses are subsequently recognised.
Interest Income Interest income is recognised on a time proportion basis, taking into account the principal outstanding and the effective rate over the period to maturity, when it is probable that such income will accrue to KwaZulu-Natal Museum.
Other Income Other income is recognised when it is probable that the future economic benefits will flow to KwaZulu-Natal Museum and it can be measured reliably.
1.19 Contingent Liabilities
Contingent liability is a possible obligation depending on whether some uncertain future event occurs, or a present obligation but payment is not probable or the amount cannot be measured reliably. Contingent liabilities are thus not recognised in the statement of financial position as a liability but are included in the disclosure notes, unless the possibilty of an outflow of economic resources is remote.
1.20 Comparative Figures
Comparative figures have been adjusted to conform to changes in presentation and classification, where necessary.
1.21 Taxation
The KwaZulu-Natal Museum is exempt from income tax because it is a Section 3A Public Entity. The KwaZulu-Natal Museum is also exempt from the payment of Output VAT on revenue received. As a result, Input VAT is also not refundable from SARS.
60 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 13 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
1.22 Services in-Kind
The KwaZulu-Natal Museum recognises services in-kind that are significant to its operations and / or service delivery objectives as assets and recognise the related revenue when it is probable that the future economic benefits or service potential will flow to the entity and the fair value of the assets can be measured reliably.
2 NON CURRENT ASSETS 2018/19 PROPERTY, PLANT AND Vehicles Equipment Furniture Furniture Computers Equipment Total EQUIPMENT -other -wooden -metal -Scientific R R R R R R R Year ended 31/3/2019: Net carrying amount 1/4/18 727 008 1 458 698 71 276 259 255 433 291 367 417 3 316 944 Gross carrying amount 1 056 035 3 631 016 426 384 1 348 611 2 056 235 691 862 9 210 143 Accumulated depreciation (329 027) (2 172 318) (355 109) (1 089 357) (1 622 944) (324 445) (5 893 199)
Additions 1 234 881 693 783 14 364 127 906 501 510 372 533 2 944 976 Disposals (16 000) (446) - (242) (2 168) - (18 857) Depreciation (203 912) (310 771) (2 135) (20 036) (109 633) (133 444) (779 930)
Net carrying amount 31/3/19 1 741 977 1 841 263 83 504 366 883 823 000 606 507 5 463 133 Gross carrying amount 2 230 916 4 323 413 440 748 1 474 069 2 550 141 1 064 395 12 083 682 Accumulated depreciation (488 939) (2 482 150) (357 244) (1 107 187) (1 727 141) (457 888) (6 620 549)
Included in the Vehicles item is the Capital Work in Progress amounting to R787, 215 that relates to two vehicles that have been purchased but not yet ready for use at year end.
2017/18 PROPERTY, PLANT AND Vehicles Equipment Furniture Furniture Computers Equipment Total EQUIPMENT -other -wooden -metal -Scientific R R R R R R R Year ended 31/3/2018: Net carrying amount 1/4/17 455 049 1 519 777 64 449 233 585 442 817 443 293 3 158 970 Gross carrying amount 807 995 3 413 641 420 702 1 304 970 1 953 374 696 862 8 597 544 Accumulated depreciation (352 946) (1 893 864) (356 253) (1 071 385) (1 510 557) (253 569) (5 438 573)
Additions 448 030 283 192 5 682 43 758 156 664 - 937 326 Disposals (92 200) (9 537) - (17) (11 010) (250) (113 013) Depreciation (83 871) (334 735) 1 145 (18 071) (155 180) (75 626) (666 339)
Net carrying amount 31/3/18 727 008 1 458 698 71 276 259 255 433 291 367 417 3 316 944 Gross carrying amount 1 056 035 3 631 016 426 384 1 348 611 2 056 235 691 862 9 210 143 Accumulated depreciation (329 027) (2 172 318) (355 109) (1 089 357) (1 622 944) (324 445) (5 893 199)
3 INTANGIBLE ASSETS Software Total R R Year ended 31/3/2019: Net carrying amount 1/4/18 141 749 141 749 Gross carrying amount 377 531 377 531 Accumulated amortisation (235 782) (235 782)
Additions 254 891 254 891 Amortisation (73 125) (73 125)
Net carrying amount 31/3/19 323 515 323 515 Gross carrying amount 632 422 632 422 Accumulated amortisation (308 907) (308 907)
Year ended 31/3/2018: Net carrying amount 1/4/17 45 757 45 757 Gross carrying amount 274 464 274 464 Accumulated amortisation (228 707) (228 707)
Additions 3 109 3 109 Disposals (50) (50) Capital Work in Progress 101 339 101 339 Amortisation (8 407) (8 407)
Net carrying amount 31/3/18 141 749 141 749 Gross carrying amount 377 531 377 531 Accumulated amortisation (235 782) (235 782)
ANNUAL REPORT 2018-2019 61 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 14 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
4 HERITAGE ASSETS 2018/19
Cultural Natural Library Total History History R R R R Opening Balance 43 167 741 5 077 315 4 984 398 53 229 453 Valuation - - - - Additions: Purchases - - 6 507 6 507 Additions: Donations - - - - Revaluation - - - - Closingsurplus/(loss) Balance 43 167 741 5 077 315 4 990 905 53 235 961
2017/18
Cultural Natural Library Total History History R R R R Opening Balance 43 167 741 5 077 315 4 971 999 53 217 055 Valuation - - - - Additions: Purchases - - 12 399 12 399 Additions: Donations - - - - Revaluation - - - - Closingsurplus/(loss) Balance 43 167 741 5 077 315 4 984 398 53 229 453
4.1 Additions For recognition of heritage assets, the asset needs to be controlled by the Museum as a result of past events. Such events may include: Purchase, donation, bequests, loan or transfer. Additions disclosed in respect of the 2018/19 financial period, include only those items purchased. Donations received were valued as part of the 2017/18 valuation of heritage assets.
4.2 Loans Valid and duly authorised Loan Agreements have been concluded with all entities in accordance with the Museum's Heritage Asset Management Policy.
4.3 Collections In determining the fair value of a collection, the entity considered whether the entire collection has a higher value than the sum of the values of the individual items making up that collection. For the purpose of valuation and disclosure, the following classes of heritage assets are recorded and, where appropriate, valued as a group or at box level:
Cultural History - 40,752 research collection catalogued items.
Natural History - 6,848 research collection catalogued items.
Library - 9,481 research collection catalogued items.
4.4 Impairment At each reporting date, the entity assesses its heritage assets to determine whether there is an indication that they may be impaired. If any such indication exists, the entity shall estimate the recoverable amount or the recoverable service amount of the heritage asset: • Where acquisitions have been fair valued and assessed, the valuation surplus/ loss has been disclosed accordingly. • Where acquisitions have been assessed with no significant change in fair value for the period under review, they are disclosed at cost or fair value. • All remaining items valued and disclosed have been assessed and fair valued as at the date of recognition. Management has considered the impairment of heritage assets during the period under review and concluded that there were no impairment losses to recognise.
4.5 Inability to Value Where no value can be placed on an item, it will not be recognised, but information should be disclosed about such items and the reason why such items cannot be valued (GRAP 103.17). Where the Museum holds an asset that might be regarded as a heritage asset but which, on initial recognition, does not meet the recognition criteria of heritage assets because it cannot be reliably measured, relevant and useful information about it shall be disclosed in the notes to the financial statements. These items are controlled in the asset register and consist of broken or damaged items.
62 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 15 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Heritage Assets (Continued)
4.6 Inability to Determine Service Potential The Museum has assessed the degree of certainty attached to the flow of future service potential or economic benefits. The service potential of collected items are undetermined until they are subjected to evaluation and research to determine if they conform to the set collection criteria. These items cannot be recognised in the financial statements, but will be recorded and controlled in the register. These items have been verified, but research is still being undertaken to determine what they are, and if the objects meet the recognition criteria of heritage assets.
• Unassembled or fragmented artefacts: these items cannot be recognised in the financial statements, but are recorded and controlled in the register.
4.7 Assets Not Valued and not Affecting the Annual Financial Statements
• Natural History: this collection comprises of a diverse collection of material including: Marine Biology, Invertebrates and Terrestrial Vertebrates, Palaeontology, Rocks and Minerals, and Fossils. The collection is primarily of research significance. While the majority of the collection has been assessed as having no commercial value; all specimens have been physically verified.
• Items on exhibition: these items are largely replicas and are used for exhibition and education purposes. These items are expensed.
5 INVENTORIES 2018/19 2017/18 R R
Stationery: stock on hand 11 276 6 900 Museum visitors shop: stock for resale 9 345 11 166 Vending machine stock 3 807 3 492 24 428 21 558
6 TRADE AND OTHER RECEIVABLES
Trade receivables 200 770 22 007 Sundry debtors 77 848 90 429 Prepaid expense 223 259 266 944 501 877 379 381
7 CASH AND CASH EQUIVALENTS R R
Cash on hand 1 635 1 602
Balances with First National Bank 38 030 611 15 878 602 Cheque account 22 910 597 3 718 973 Daily Call account 2 498 427 7 216 436 Notice account 12 621 587 4 943 193
38 032 245 15 880 204
Balance Additions Utilised Balance 8 DEFERRED GRANTS AND PROJECT FUNDING 1/4/2018 31/3/2019 R R R R 8.1 Research grant: JD Plisko (NRF) - 24 975 (24 975) - 8.2 Research grant: G Whitelaw (NRF) - 24 770 (24 770) - 8.3 Research grant: TC Nxele (NRF) - 109 784 (109 784) - 8.4 Research grant: J Londt (NRF) - 29 815 (29 815) - 8.5 Research grant: G Blundell (NRF) - 262 107 (262 107) - 8.6 DAC: Capital Works: New Museum Project 3 816 394 24 584 000 (688 027) 27 712 366 8.7 DAC: Water Piping Project 935 600 - - 935 600 8.8 DAC: Museum Maintenance Project - 1 000 000 (663 607) 336 393 8.9 DAC: GRAP 103: Heritage Assets Project 1 194 742 - (834 201) 360 541 8.10 National Lotteries Board: GRAP 103 Project 195 815 (172 450) 23 364 8.11 National Lotteries Board: Freedom Exhibition 38 120 - - 38 120 8.12 National Lotteries Board: Oupa Novelties Trust 425 663 - (374 338) 51 325 8.13 National Research Foundation - 64 808 (59 895) 4 912 8.14 SANBI: Natural Sciences Collection Facility - 463 839 (463 839) - 8.15 JRS Biodiversity Foundation 8 941 45 769 - 54 709 6 615 274 26 609 868 (3 707 810) 29 517 332
ANNUAL REPORT 2018-2019 63 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 16 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Deferred Grants and Project Funding (Continued)
Summary of utilised funds: 3 707 810 Capital items 1 086 487 Operational items 2 621 323
Conditions of the Grants and Project Funding: (all funds are repayable if not spent) 8.1 Grant to finance Dr Plisko's scientific research costs 8.2 Grant to finance Dr Whitelaw's scientific research costs 8.3 Grant to finance Dr Nxele's scientific research costs 8.4 Grant to finance Dr Londt's scientific research costs 8.5 Grant to finance Dr Blundell's scientific research costs 8.6 Grant for capital works: upgrading and conversion of Old St Anne’s Hospital to the New KwaZulu-Natal Museum 8.7 Grant for capital works: upgrading of the water pipes in the Museum 8.8 Grant for repairs and maintenance of the Museum building 8.9 Funding provided to assist with the GRAP 103: Heritage Assets compliance project 8.10 Funding provided to assist with the GRAP 103: Heritage Assets compliance project 8.11 Funding for the development and construction of the Freedom Exhibition 8.12 Funding for the Oupa Novelties Trust project 8.13 Funding provided to host the National Science Week 8.14 Funding provided to improve the Natural History Collection management 8.15 Funding provided to improve the Natural History Collection management
2018/19 2017/18 9 TRADE AND OTHER PAYABLES NOTES R R
Trade creditors 4 140 554 4 905 392 Sundry creditors 2 918 2 697 4 143 472 4 908 089
10 PROVISIONS
Balance beginning of the year 1 184 060 922 052 Increase in provision 470 010 262 007 Balance end of the year 1 654 069 1 184 060
This provision is for the estimation of the value of the leave pay that would become payable at the termination date of any employment contract. The event of the full provision being fully payable at any one time is unlikely.
11.1 TRANSFERS AND SUBSIDIES
Donations Received 5 135 4 623 Funding: Department of Arts and Culture 30 023 000 27 495 000 Funding: Department of Arts and Culture: Municipal Charges 4 963 000 4 691 000 Funding: Department of Arts and Culture: Parking 239 000 - Non-repayable Funding: Revenue 23 207 822 82 253 Project Funding: Capital Receipts 8 1 086 487 86 311 Project Funding: Income Available 8 2 621 323 4 180 439 39 145 767 36 539 627
11.2 SERVICES IN-KIND
DPW: Services in-Kind - Parking 28.1 - 222 899 DPW: Services in-Kind - Rental 28.1 11 129 828 10 305 396 11 129 828 10 528 295
The KwaZulu-Natal Museum received direct transfers from the Department of Arts and Culture to defray municipal charges like water and electricity (see Note 11.1). However, the KwaZulu-Natal Museum did not pay the municipal charges in full in the period under review because of the delayed billing by the Department of Public Works. For financial reporting purposes a trade payable has been raised at year end (see Note 9). In addition, the Department of Public Works does not charge the KwaZulu-Natal Museum for the use of the building, these are accordingly classified as services in-kind as per GRAP 23 and the fair value of the benefits have been estimated.
64 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 17 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
2018/19 2017/18 NOTES R R
12 EXCHANGE REVENUE
Entrance charges: general 118 561 118 383 Entrance charges: schools 44 934 43 446 Holiday Program Income 58 780 59 090 Insurance claims - 87 590 Journals 42 212 46 311 Learners Resource Centre 114 676 97 572 Museum Shop sales 49 310 40 442 Other income 22 84 213 46 063 Vending machine sales 47 974 35 802 560 659 574 697 13 COMPENSATION OF EMPLOYEES Salaries 16 814 763 14 398 115 Compensation Commissioner 42 856 38 261 Casual labour 112 484 74 142 Directors emoluments 16 2 291 231 2 169 126 Funeral benefit 17 631 16 279 Housing allowance 537 600 509 600 Leave gratuity 36 134 218 725 (Decrease) / Increase in leave provision 470 010 262 007 Medical aid 1 094 627 1 007 689 Pension 2 258 555 1 951 715 Service bonus 1 098 461 971 083 UIF 102 127 95 222 24 876 478 21 711 966
14 GOODS AND SERVICES PER PROGRAMME ADMINISTRATION ENTITY MANAGEMENT AND Asset Below R500 8 609 3 267 Audit Committee Costs 71 586 118 219 Audit Fees: External 535 275 493 833 Audit Fees: Internal 287 577 370 152 Bank Charges 36 927 34 601 Council Costs 686 538 845 516 Disciplinary Cost 50 439 7 500 Doubtful Debts Written Off 6 626 2 787 Entertainment 15 581 20 131 Foreign Exchange Loss - 223 Insurance 212 082 199 005 LAN 77 230 69 576 Main & Repairs - Computer 236 854 53 385 Multi-Functioning Printer Rental 8 655 - Museum Shop Purchases 20 32 787 23 161 Museum Vending Purchases 21 31 546 31 989 Penalties 29 668 50 745 Postages 66 922 93 040 Staff Training 227 135 144 534 Staff Removal Expenses - 7 455 Stationery 211 956 254 225 Sundries 42 512 30 111 Telephones 80 130 75 579 Tools 5 317 5 918 Transport - Motor 234 608 146 226 Transport - Other 226 740 165 257 Travel and Subsistence 330 915 193 851 Grant Expenditure - Maintenance and Security 18 2 370 224 3 959 451 6 124 438 7 399 738 SUPPORT SERVICES PUBLIC RELATIONS Advertising 271 817 285 509 271 817 285 509 LIBRARY SERVICES Library - Books - 13 371 Library - Photocopies 15 921 18 772 Library - Subscriptions 268 098 273 325 Grant Expenditure - Library Security - 50 890 284 019 356 358
ANNUAL REPORT 2018-2019 65 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 18 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Goods and Services (Continued) TECHNICAL SERVICES Chemicals 97 227 78 907 Cleaning Materials 145 509 127 527 Licences 2 877 1 572 Main & Repair - Buildings 277 403 278 212 Main & Repair - Equipment 65 900 37 503 Main & Repair - Motor Vehicles 77 351 38 691 Security 132 622 60 199 Uniforms 67 986 73 701 DAC: Services in Kind - Municipal Charges 11.2 4 722 065 4 350 165 DAC: Services in Kind - Parking 235 067 222 899 DPW: Services in Kind - Rental 11 129 828 10 305 396 16 953 834 15 574 772
BUSINESS DEVELOPMENT CONSERVATION, PUBLICATIONS AND Curatorial Materials 44 493 60 934 Publications 141 952 191 958 Grant Expenditure - Research Expenses 19 217 225 130 298 Grant Expenditure - Collections Management 19 - 113 832 403 671 497 021 PUBLIC ENGAGEMENT EXHIBITIONS Main & Repair - Display 37 934 12 126 New Displays 105 687 22 630 Grant Expenditure - Exhibition Development 19 1 020 15 999 144 641 50 754 EDUCATION AND OUTREACH PROGRAMME Education Dept. Programmes 295 783 273 708 Grant Expenditure - Education Programmes 70 527 4 332 366 309 278 040 24 548 730 24 442 192
15 FINANCIAL INSTRUMENTS
Overview The KwaZulu-Natal Museum has exposure to the following risks from its use of financial instuments.
- Credit risk - Liquidity risk - Market risk - Interest rate risk
This note presents information about the KwaZulu-Natal Museum's exposure to each of the above risks, the KwaZulu- Natal Museum's objectives, policies and processes for measuring and managing risk.
In terms of Treasury Regulation 27.2.1, issued in terms of PFMA, the accounting authority (Council) must ensure that a risk assessment is conducted regularly to identify emerging risks in the entity. The Council established the Audit and Risk Committee which is responsible for developing and monitoring the KwaZulu-Natal Museum's risk management policies.
The Audit and Risk Committee oversees how management monitors compliance with the KwaZulu-Natal Museum's risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the KwaZulu-Natal Museum. The Audit and Risk Committee is assisted in its oversight role at operational level by the Internal Audit. The Internal Audit undertakes reviews of risk management control procedures, the results of which are reported to the Audit and Risk Committee.
Credit risk Credit risk is the risk of financial loss to the KwaZulu-Natal Museum if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from KwaZulu-Natal Museum's receivables from customers.
The carrying amount of financial assets represent the maximum credit exposure. The maximum exposure to credit risk at 31 March 2019 was:
Trade and other receivables (note 6) 501 877 379 381
66 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 19 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Financial Instruments (Continued)
Analysis of trade and other receivables for reporting purposes:
90 days and over 83 040 19 419 60 days 840 - 30 days 5 134 1 100 Current 412 863 358 862 501 877 379 381
Trade and other receivables The KwaZulu-Natal Museum's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The composition of the KwaZulu-Natal Museum's customer base, including the default of the industry and country in which the customers operate, has less of an influence on credit risk.
The other receivables largely comprise prepaid expenses, outstanding NRF research grants as well as royalties receivable.
The KwaZulu-Natal Museum policy is to monitor its exposure to credit risk on a monthly basis. At year end, the maximum exposure to credit risk is represented by the carrying amount of each financial asset.
Investments The KwaZulu-Natal Museum limits its exposure to credit risk by investing only in high liquid investments that are held only at the approved banking institution with maturities of three months or less and that are subject to insignificant interest rate risk.
Liquidity risk Liquidity risk is the risk that the KwaZulu-Natal Museum will not be able to meet its financial obligations as they fall due. The KwaZulu-Natal Museum's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the KwaZulu-Natal Museum's reputation.
It is the policy of the KwaZulu-Natal Museum, in line with the National Department of Arts and Culture not to borrow monies. The KwaZulu-Natal Museum maintain a business credit card which it uses for air travel arrangements and foreign currency transactions.
Cash and cash equivalents (note 7) 38 032 245 15 880 204
Trade and other payables The KwaZulu-Natal Museum is only exposed to liquidity risk with regard to the payment of its payables. These payables are all due within the short-term.
Trade and other payables (note 9) 4 143 472 4 908 089
Market risk Market risk is the risk that changes in the market prices, such as the interest rates will affect the KwaZulu-Natal Museum's income. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing return.
Currency risk Currency risk is the risk that arises from the exposure of foreign currency transactions and the fluctuations in the forex market. The KwaZulu-Natal Museum is exposed to this risk primarily for library subscription renewals.
Interest rate risk Interest rate risk is the risk that arises from exposure to credit facilities. The KwaZulu-Natal Museum maintain a business credit card facility which it uses for air travel arrangements and foreign currency transactions. The payment plan is through debit order against the current account thus limiting exposure to interest charges.
Fair values The fair values of financial assets and liabilities are the same as the carrying values reflected in the statement of financial position.
ANNUAL REPORT 2018-2019 67 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 20 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
16 DIRECTORS EMOLUMENTS
Council Members: For the period between 1 September 2018 and 31 March 2019. Sub- 2018/19 Council Committee Total Honorarium Travel reim- Total Meetings Meetings Meetings bursement attended attended Attended R R R Mazibuko, Prof. N.M. (Chairperson) 2 - 2 22 722 - 22 722 Jivan, Mr U 2 - 2 7 664 3 922 11 586 Khorommbi, Mr TC 2 - 2 10 268 1 047 11 315 Magaqa, Adv. S 2 2 4 9 605 1 212 10 817 Mhlongo, Ms N 2 4 6 13 020 - 13 020 Musundwa, Ms S 2 1 3 3 906 360 4 266 Nkosi, Dr N. 2 1 3 11 570 848 12 418 Ramagoshi, Ms M 1 2 3 9 114 616 9 730 Stobie, Prof. B 2 4 6 22 671 426 23 097 110 540 8 430 118 970 * In addition to two Council meetings, the Chairperson attended other official engagements.
Council Members: For the period between 1 April 2018 and 31 August 2018.
Sub- 2018/19 Council Committee Total Honorarium Travel reim- Total Meetings Meetings Meetings bursement attended attended Attended R R R Mazibuko, Prof. N.M. * 2 - 2 10 717 5 178 15 895 Coovadia, Mr. D. 1 - 4 6 140 1 860 8 000 Dantile, Mr. F. 2 - 4 7 992 5 832 13 824 Magaqa, Adv. S. 2 2 4 4 912 480 5 392 Makunga, Prof. N. 1 2 3 4 912 7 851 12 763 Malapane, Dr S. 2 3 5 7 368 2 232 9 600 Nkosi, Dr. N. 2 2 4 3 684 309 3 993 Ranchod, Mr K. 2 3 5 8 596 2 604 11 200 54 321 26 346 80 667 * In addition to two Council meetings, the Chairperson attended other official engagements.
Council Members: For the period between 1 April 2017 and 31 March 2018.
Sub- 2017/18 Council Committee Total Honorarium Travel reim- Total Meetings Meetings Meetings bursement attended attended Attended R R R Mazibuko, Prof. N.M. (Chairperson)* 4 - 4 21 763 - 21 763 Coovadia, Mr. D. 4 10 14 20 080 363 20 443 Dantile, Mr. F. 4 3 7 17 344 6 344 23 688 Khuzwayo, Mr N. 1 3 4 6 984 - 6 984 Magaqa, Adv. S. 3 2 5 5 884 297 6 181 Makunga, Prof. N. 4 4 8 15 324 18 007 33 331 Malapane, Dr S. 4 8 12 18 788 - 18 788 Nkosi, Dr N. 1 - 1 1 228 - 1 228 Ranchod, Mr K. 3 8 11 17 624 165 17 789 125 019 25 176 150 195 * In addition to two Council meetings, the Chairperson attended other official engagements.
Executive Directors: 2018/19 Salary Annual Expense Pension Other Total Bonus Allow- Benefits ances R R R R R R Maphasa, Mr L.J. (Director) 803 605 66 967 214 677 130 752 33 782 1 249 782 Miya, Mr S. (Deputy Director) 669 060 55 755 159 666 145 300 11 669 1 041 449 2 291 231 Assistant Directors: Dlamini, Mr S.E. (Manager: Finance) 544 472 46 127 - 44 238 58 069 692 906 Flanagan, Mr W. (Exhibitions) 544 472 46 127 - 44 238 32 348 667 185 Midgley, Dr J. (Natural Sciences) 544 472 46 127 - 88 477 13 620 692 695 Ntombela, Mrs T.S. (Education) 544 472 46 127 - 44 238 13 620 648 457 Blundell, Dr G. (Human Sciences) 545 998 3 603 - 44 362 11 669 605 633 4 196 549 310 833 374 343 541 605 174 777 5 598 107
68 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 21 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Directors Emoluments (Continued) 2017/18 Salary Annual Expense Pension Other Total Bonus Allow- Benefits ances R R R R R R Maphasa, Mr L.J. (Director) 761 711 63 476 206 172 123 571 31 357 1 186 288 Miya, Mr S. (Deputy Director) 631 190 52 599 150 851 136 529 11 669 982 838 2 169 126 Assistant Directors:
Dlamini, Mr S.E. (Manager: Finance) 508 852 43 109 - 41 344 51 023 644 329
Flanagan, Mr W. (Exhibitions) 508 852 43 109 - 41 344 30 555 623 861
Midgley, Dr J. (Natural Sciences) 508 852 43 109 - 82 688 13 200 647 850
Ntombela, Mrs T.S. (Education) 508 852 43 109 - 41 344 11 669 604 975 Thorp, Dr C. (Human Sciences: until 31 December 2017) 379 524 43 109 - 61 673 35 701 520 007 3 807 833 331 622 357 023 528 494 185 176 5 210 148
17 RETIREMENT BENEFIT OBLIGATIONS
The KwaZulu-Natal Museum is a member of the Museums Pension Fund. This is an independent fund managed by a Board of Trustees. The Fund is a defined benefit fund. With effect from 1 April 2003 a defined contribution category has been implemented for all new employees joining the Fund after this date. The Fund provides benefits when members retire, and also when they resign or die before retirement. The disability Income Security Plan provides income replacement in the case of disablement and the Group Life Scheme provides benefits in the event of death. Employees of the KwaZulu-Natal Museum contribute to the Museums Pension Fund. As at 31 March, the following members of staff contributed to the Museums Pension Fund:
No. of Employees Employers Employees Contribution Contribution Defined Benefit 8 7.5% 20% Defined Contribution 44 7.5% 15%
The funding level used to calculate the liability per employer was according to the 31 March 2018 valuation results. The actuary of the Museums Pension Fund calculated the actuarial reserves per participating institution as at 31 March 2019. According to the 31 March 2018 valuation report the fund was 100% funded. The KwaZulu-Natal Museum's updated liability as at 31 March 2019 is NIL.
The contribution to the pension fund R2,258,555 (2017/18: R1,951,715) is included in the compensation of employees.
2018/19 2017/18 18 GRANT AND PROJECT FUNDING: CAPITAL RECEIPTS R R
Deferred Grants and Project Funding (Note 8) 1 086 487 86 311
These capital receipts relate to assets that were purchased during the year, using funds from grants and project funding.
19 GRANT AND PROJECT FUNDING: TOTAL EXPENDITURE
Deferred Grants and Project Funding (Note 8) 2 621 323 4 180 439 Non-repayable funding (Note 23) 37 672 94 361 2 658 995 4 274 800
20 MUSEUM SHOP
Revenue 49 310 40 442 Less: Cost of Sales (32 787) (23 161) 16 523 17 280
ANNUAL REPORT 2018-2019 69 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 22 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
21 VENDING MACHINE
Revenue 47 974 35 802 Less: Cost of Sales (31 546) (31 989) 16 429 3 812
22 OTHER INCOME
Use of premises 40 815 45 390 Profit on foreign exchange 318 - Fruitless and wasteful expenditure recovered 29 668 Sundry income 13 412 673 84 213 46 063 23 NON-REPAYABLE FUNDING
Balance Additions Utilised Balance Additions Utilised Balance 31/3/2017 31/3/2018 31/3/2019 R R R R R R R 23.1 Natural Science Department 10 850 15 030 (754) 25 126 27 000 (2 320) 49 806 23.2 Archaeology Research 26 026 11 184 - 37 210 156 565 (1 244) 192 531 23.3 Education Dept:Sabalala 7 913 285 (4 332) 3 866 860 - 4 726 23.4 Exhibitions Department 15 898 5 018 (59) 20 858 4 772 (1 020) 24 610 23.5 Mollusca Department 1 293 - (1 293) - - - - 23.6 van Doornum Research 11 184 - (11 184) - - - - 23.7 G Laue Research - - - - 18 625 - 18 625 23.8 Whitelaw Research 15 970 48 000 - 63 970 - (22 457) 41 513 23.9 Field Guide Sales 8 116 590 (8 706) - - - - 23.10 Upgrade Sisonke Hall 13 794 2 146 (15 940) - - - - 23.11 Restoration, rep. and maint. 315 596 - - 315 596 - - 315 596 23.12 ICOM-SA: Conference grant 1 203 - (1 203) - - - - 23.13 Security project- Library 149 245 - (50 890) 98 355 - - 98 355 23.14 Lyn Wadley: Sibudu Project 33 886 - - 33 886 - (10 631) 23 254 23.15 Facilities Management 32 795 - (24 812) 7 983 - - 7 983 643 770 82 253 (119 173) 606 850 207 822 (37 672) 777 000
Summary of utilised funds: 119 173 37 672 Capital items 24 812 - Operational items 94 361 37 672
24 RECONCILIATION OF ACCUMULATED SURPLUS 2018/19 2017/18 R R
Total accumulated surplus 9 049 230 7 044 810 Deduct: Non-repayable funding: funds available (Note 23) (777 000) (606 850) Accumulated surplus: from operations 8 272 230 6 437 960
25 NET CASH (UTILISED) / GENERATED FROM OPERATING ACTIVITIES
Surplus / (Deficit) per Statement of Financial Performance 2 004 420 1 462 708 Non- cash adjustments for: - Depreciation and amortisation of assets 853 055 674 746 - Increase in provisions 470 010 262 008 - Loss on disposal of assets 2 857 104 778
Changes in working capital - (Increase) / Decrease in receivables (122 496) (154 902) - Increase / (Decrease) in payables (764 617) 4 829 802 - (Increase) / Decrease in inventories (2 871) (8 943) 2 440 359 7 170 197
26 OTHER OPERATING REVENUE / (EXPENDITURE) - (Increase) / Decrease in receivables (122 496) (154 902) - Increase / (Decrease) in payables (764 617) 4 829 802 - Increase in provisions 470 010 262 008 - (Increase) / Decrease in inventories (2 871) (8 943) (419 974) 4 927 965
70 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 23 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
27 CHANGE IN ACCOUNTING ESTIMATE
The useful lives of certain computer equipment have been extended to 3 years. This resulted in a net increase of R121 396 in surplus.
The useful lives of certain equipment - other have been extended to 4 years. This resulted in a net increase of R94 158 in surplus.
The useful lives of certain furniture - metal have been extended to 4 years. This resulted in a net increase of R15 128 in surplus.
2018/19 2017/18 R R
Net effect on statement of financial performance Decrease in expenditure Decrease in depreciation and amortisation of assets 230 682 -
Net effect on statement of financial position Increase in assets Property, plant and equipment - Computer Equipment 121 396 - Property, plant and equipment - Other Equipment 94 158 - Property, plant and equipment - Furniture - Wood - - Property, plant and equipment - Furniture - Metal 15 128 - Property, plant and equipment - Scientific Equipment - - Intangible assets - Software - -
Increase in net assets Accumulated surplus 230 682 -
28 RELATED PARTIES
28.1 The Department of Arts and Culture The Department of Arts and Culture is the controlling entity of the KwaZulu-Natal Museum. It provides a monthly operational grant. For the 2018/19 period R35, 225, 000 was received and it is anticipated that an amount of R35, 176, 000 will be received for the 2019/20 period.
The Department of Arts and Culture transferred the following amount to the Department of Public Works in respect of the Operating Leases (Parking).The Department of Public Works is the legal owner of land and buildings occupied by the KwaZulu-Natal Museum at no consideration.
The fair values of the benefit received has been recognised as Services in Kind in the Statement of Financial Performance (Note 11.2).
2018/19 2017/18 R R Operating Leases: Parking - 222 899 Deemed Rental 11 129 828 10 305 396 11 129 828 10 528 295
28.2 Council Members Council Members are the Non-Executive Directors appointed by the Minister of Arts and Culture to oversee and ensure good corporate governance. Council has various subcommittees such as the Finance and Procurement, Audit and Risk, Human Resources and Remuneration Committee and the Institutional Advancement and Ethics Committee that guide and assist management which is appointed by Council. Refer note 16.
29 COMMITMENTS
29.1 PROJECT MANAGEMENT SERVICES
At the reporting date, the KwaZulu-Natal Museum had a commitment outstanding in respect of the project management services for infrastructure services contract. The term of the contract is 36 months and the total value of the contract is R4, 534, 000. The total amount which still falls due is:
2018/19 2017/18 R R Project Management Services (Capital Commitment) 4 488 386 -
ANNUAL REPORT 2018-2019 71 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 24 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Commitments (Continued)
29.2 LEASE COMMITMENTS: OPERATING LEASES
At the reporting date, the KwaZulu-Natal Museum had commitments outstanding under a non-cancellable operating lease, which fall due as follows:
2018/19 2017/18 R R Minimum Lease Payments Due Within one year 84 205 59 448 In second to 3rd year 149 422 163 482 233 627 222 930
30 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS: 2018/19
The budget was approved by the Council and submitted to the executive authority in terms of section 53 (1) of the PFMA. The KwaZulu-Natal Museum presents its approved budget and the financial statements on the accrual basis.
The approved budget covers the period 1 April 2018 to 31 March 2019. The budget is approved by functional or programme classification in line with KwaZulu-Natal Museum's strategic objectives and the Annual Performance Plan approved by its Council.
Budget Adjustment
The approved budget was revised based on the actual income and expenditure up to 30 September 2018, and projections were made for the period 1 October 2018 to 31 March 2019. The final budget adjustments formed part of the Quarterly Report for the period ending 30 September 2018 and were approved by Council of KwaZulu-Natal Museum.
Changes between Original Budget and Revised Budget
The changes in the operating budget (excluding Deferred Grants: Income and Project Funding: Capital) primarily arise as a consequence of reallocations within the approved budget parameters.
The Deferred Grants Income and Project Funding: Capital items are project dependent and comprise of external funding; the positive variance is attributable to the funding received during the second half of the period under review.
Last Publicly Adjustment ACTUAL Available REALLOCATION VARIANCE Budget Budget
R R R R R
REVENUE 52 285 540 46 740 509 6 795 575 53 536 084 (1 250 544) State Contribution 30 023 000 30 023 000 (948 000) 29 075 000 948 000 Interest 1 1 449 287 619 147 337 467 956 614 492 672 Donations 5 135 4 215 378 4 593 542 Journals 2 42 212 55 000 1 55 001 (12 789) Entrance Charges 3 118 561 130 000 (1) 130 000 (11 439) School Entrance Charges 4 44 934 47 972 4 186 52 159 (7 225) LRC Income 114 676 116 524 (7 041) 109 483 5 194 Museum Shop 49 310 51 010 606 51 616 (2 306) Vending Machine 5 47 974 30 655 7 825 38 480 9 494 Holiday Programme 58 780 62 045 - 62 045 (3 266) Other Income 84 214 470 000 (414 957) 55 043 29 171 Services in Kind: Revenue 6 11 129 827 11 129 828 - 11 129 828 (0) Municipal Charges 4 963 000 3 762 113 1 200 887 4 963 000 (0) Operating Lease: Parking 239 000 239 000 - 239 000 (0) Deferred Grants Income 7 2 621 323 - 5 680 319 5 680 319 (3 058 996) Grants Funding: Capital 8 1 086 487 - 929 686 929 686 156 801 Non-Repayable Funding 9 207 822 - 4 219 4 219 203 603
72 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 25 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Statement of Comparison of Budget and Actual Amounts: 2018/19 (Continued)
EXPENDITURE 49 428 065 51 263 509 (70 711) 51 192 798 1 764 733
EXPENDITURE Compensation of Employees Administration Entity Management 10 5 717 223 5 776 633 (291 829) 5 484 804 (232 420) Public Relations 11 1 073 685 872 256 138 450 1 010 706 (62 979) Library 1 166 649 1 130 740 27 617 1 158 357 (8 292) Technical Services 3 138 590 3 096 472 - 3 096 472 (42 118) Business Development 12 7 391 968 8 485 145 (859 198) 7 625 947 233 979 Public Programmes Exhibitions 13 2 817 815 3 080 261 (204 399) 2 875 862 58 047 Education 3 570 547 3 576 838 (17 538) 3 559 300 (11 247)
Goods and services Administration Entity Management 14 6 127 295 6 857 086 2 280 339 9 137 425 3 010 129 Public Relations 15 271 817 250 000 289 894 539 894 268 077 Library 16 284 019 332 500 87 503 420 003 135 984 Technical Services 17 16 953 835 16 908 478 (1 968 289) 14 940 189 (2 013 645) Business Development 18 403 671 363 500 353 658 717 158 313 488 Public Programmes Exhibitions 19 144 641 173 600 15 974 189 574 44 933 Education 20 366 309 360 000 77 107 437 107 70 798
Surplus for the year before depreciation 2 857 476 (4 523 000) 6 866 286 2 343 286 (3 015 277)
Less: Depreciation and amortisation of assets (853 055) (440 000) - (440 000) (413 055)
Surplus for the year 2 004 420 - 6 866 286 1 903 286
Budget Variances
REVENUE
1. Interest The positive variance of 51.5% is largely attributable to project funding in the Museum's bank accounts, i.e. New Museum Project and other project funding.
2. Journals The negative variance of 23.3% is attributable to the decrease in royalties received. The substantial amount of royalties come from SABINET for citations of Museum journals. This result suggest a decline in the citations of the Museum journals during the period under review.
3. Entrance Charges: General This item has underperformed by 8.8% during the period under review.
4. School Entrance Charges This item underperformed by 13.9% when compared to the midterm estimate. This is largely attributable to the change in the school academic year, i.e. the last term of 2018 finished earlier than in previous years, because of this the schools that had booked were unable to honour their bookings.
5. Vending Machine Sales This item exceeded its midterm budget target by 24.7%, also reflecting growth when compared to the previous period. The growth is attributable to the growth of the Sabalala Nolwazi In-house Programme, the programme grew by three schools during the reporting period.
6. Services - in - Kind: Revenue This item is made up of deemed rental benefits received from the Department of Public Works, i.e occupation of the building at no fee.
ANNUAL REPORT 2018-2019 73 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 26 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Statement of Comparison of Budget and Actual Amounts: 2018/19 (Continued)
7. Project Funding: Income Available This item has underperformed by 54.7% when compared to the midterm budget estimate; this is attributable to the various infrastructure projects that were not implemented during the period under review. During the course of the financial year, the Museum finalised the appointment of a project management services' provider to help fast track project implementation.
8. Capital Receipts Expenditure on this item has been driven by the grant funding received for the Natural Sciences Collection Facility, research related grant funds as well as the grant funding utilized to upgrade the multi-media equipment at the Pringle Hall and at the Ingede Theatre.
9. Non Repayable Funding The positive variance is attributable to funds received for the production of the Great Zimbabwe Monograph by TN Huffman.
EXPENDITURE
Compensation of Employees
10. Administration - Entity Management The contributing factor was an increase in the leave provision in the current period.
11. Administration - Public Relations The over expenditure of 6.2% or R62, 979 is attributable to the acting roles within the programme. The positions are earmarked to be filled in the first quarter of the 2019/20 period.
12. Business Development - Research The under expenditure of 3.1% or R233, 979 is mainly attributable to the various positions within the programme whose effective dates were delayed on request by the successful candidates. This resulted in under spending.
13. Public Programme - Exhibitions The under expenditure of 2% or R58, 047 is attributable to one position opening within the department. The position is earmarked to be filled in the first quarter of the 2019/20 period.
Goods and Services
14. Administration - Entity Management The under spending of 33.8% is mainly attributable to various infrastructure projects that were not implemented during the period pending the appointment of the project management services' provider. The Museum has finalised the appointment and the projects will be implemented during the course of the 2019/20 and subsequent periods.
15. Administration - Public Relations The Museum received approval to set aside an amount of R250, 000 from its retained surplus for marketing and branding initiatives. A substantial amount of this budget has been deferred to the subsequent financial period.
16. Administration - Library This item has been underspent by 32.4%; the contributing factor is mainly Library Subscriptions that had been over budgeted for in the current period mainly to provide for the negative fluctuation of the Rand against the US Dollar and the Euro currencies.
17. Administration - Technical Services The over spending is mainly attributable to the Municipal Charges item. During the fourth quarter of the year the Department of Public Works advised the Museum that the Department of Arts and Culture has referred back payments for "shared services" to be honoured by the Museum. Also included is the Services-in-kind: deemed rental benefit item received from the Department of Public Works, i.e. for the occupation of the building at no fee.
18. Business Development - Research A substantial portion of research expenditure has gone towards the purchase of equipment which has been disclosed under the Deferred Grants: Capital Receipts in the revenue section.
19. Public Engagement Programme - Exhibitions The actual is 23.7% lower than the budget due to the reprioritisation of certain exhibition projects largely because of the Nelson Mandela Centenary Exhibition project that consumed more time to produce than expected.
20. Public Engagement Programme - Education The under spending of R70, 798 or 16.2% is attributable to the savings that were recorded due to the restructuring of the Museum's Sabalala Nolwazi pogramme year end events; during the period under review, the excursions were held locally thereby reducing significant transport costs.
74 ANNUAL REPORT 2018-2019 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 27 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Statement of Comparison of Budget and Actual Amounts: 2018/19 (Continued)
Capital Expenditure ACTUAL Budget VARIANCE
R R R
Vehicles a 1 234 881 651 116 (583 765) Equipment - Other b 693 783 94 000 (599 783) Furniture - Wooden c 14 364 - (14 364) Furniture - Metal d 127 906 6 050 (121 856) Computers e 501 510 341 341 (160 169) Equipment - Scientific f 372 533 - (372 533) Intangible Assets g 254 891 540 000 285 109 3 199 868 1 632 507 (1 567 361)
a. Vehicles: During the period under review, a budget of R651, 116 was set aside to acquire two vehicles, i.e. a 10 Seater and a Pick-up Truck. However, during the second half of the year one of the 4x4 vehicles that is used for research activities became troublesome thereby necessiating a replacement. The new 4x4 was purchased in March 2019.
b. Equipment - Other: Equipment to the value of R441, 575 was financed through grant funding. In addition, the Museum had to acquire back-up air-conditioning units for storerooms in light of the unrealiable main air-conditioning plant.
c. Furniture - Wood: The expenditure incurred relates to the furniture that was acquired for two new employees.
d. Furniture - Metal: The over expenditure of R121, 856 is made of furniture to the value of R68, 177 that was acquired through grant funding, i.e. Pringle Hall uprade project. In addition, the Museum acquired furniture to meet the collection management and staff requirements during the course of the year.
e. Computers: The budget of R556, 341 had been set aside mainly for the new server, acquisition of media devices for the Council Boardpack system. Expenditure on this item varied, for example, the new server was installed at a cost below budget, the media devices were slightly above budget. Computers to the value of R160, 169 were financed by grant funding.
f. Equipment - Scientific: The expenditure of R372, 533 was financed by grant funding to acquire microscope.
g. Intangible Assets: The budget was set aside for the new accounting system, Customer Relationship Management (CRM) system as well as the Business Process Management (BPM) system. The Museum conducted a scoping exercise to determine the specifications for implementing these systems and to obtain a preliminary costing estimate. The preliminary costing estimate indicated that these systems should be procured through a competitive bidding process. As a result, the project implementation has been deferred to first half of the 2019/20 period. The expenditure of R254, 891 consist of expenditure to acquire software licences for collection management databases, etc.
31 FRUITLESS AND WASTEFUL EXPENDITURE
2018/19 2017/18 R R
Opening Balance 5 954 -
Fruitless and wasteful expenditure relating to current year 33 735 50 745
Less penalty and interest (32 139) - Penalty and interest recovered (29 668) - SARS account: credit balance (2 471) -
Less amount condoned by the Accounting Authority (5 954) (44 791)
Balance to be submitted to Accounting Authority for condonation 1 596 5 954
ANNUAL REPORT 2018-2019 75 Annual Financial Statements
KWAZULU-NATAL MUSEUM Page 28 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 March 2019
Fruitless and wasteful expenditure (Continued)
The opening balance of R5, 954 is in respect of the penalty incurred in relation to the SARS' midyear reconciliation process. The penalty emanate from the tax liability of persons not in the payroll system, e.g. Council members, copy-editors. The Museum deducts a tax portion from the payments made to members for attending official meetings and for services rendered respectively; the tax amount duducted is then payable to SARS. Though the amount was paid over to SARS it was not appropriately allocated as a result a penalty was levied. The Museum is of the view that the penalty should be reversed; however, the Museum decided to settle in order to avert the accumulation of interest while pursuing a refund from SARS.
The current year expenditure is a result of penalties and interest amounting to R32, 139 that accrued in September 2018. Subsequent to the discovery, it was established that the September 2018 payment batch that included the SARS payment did not fully process due to insufficient funds in the Museum's bank account at the time of processing. Though the bank notification indicated that the payment batch was fully processed after it was authorised. The delegated official should have checked the available balance prior to requesting authorisation of the payment batch in order to ensure that there were sufficient funds available for the payment batch to process. Noting the impact of penalties and interest incurred on audit outcomes, the delegated official personally settled an amount of R29, 668 (which is the net of total penalty and interest of R32, 139 and a credit balance of R2, 471 on the SARS account), as a result, the Museum did not incur the expenditure or suffer a loss.
Furthermore an amount of R1, 596 was incurred when the declared UIF portion for October 2018 was erroneously omitted from the SARS payment, this error was rectified in November 2018.
These amounts are therefore regarded as fruitless and wasteful expenditure, as defined by the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA). Submissions were made to the Accounting Authority to condone the amount of R5, 954 as it was found that the expenditure did not arose from an intentional transgression of relevant laws and regulations. Therefore, there is no arise need to recover such expenditure because no official is liable in law, and it was out of the control of management / individual due to circumstances under which this expenditure was incurred. The condonation process was finalised by Council at a meeting held on 26 May 2018. The amount remain as debit against the relevant expenditure item. The current year expenditure will be submitted to the Accounting Authority for condonation during the course of the 2019/20 period.
76 ANNUAL REPORT 2018-2019 Our mission
The KwaZulu-Natal Museum is dedicated to serving the people of South Africa by interpreting material evidence of the cultural and natural world, in order to increase knowledge, understanding and appreciation of the nation’s wealth of history and biodiversity.
Our vision
To position the KwaZulu-Natal Museum as a leading, inclusive and transformed heritage institution in South Africa.
Core Values
The KwaZulu-Natal Museum’s core values are: • Accountability: to foster a culture of accountability, learning and enlightenment for staff and stakeholders • Understanding and Respect: to increase tolerance, understanding and mutual respect among staff and the diverse elements of South African society • Professionalism and honesty: to be honest and professional in undertaking our duties and the execution of the Department’s mandate • Loyalty: to be loyal to the mandate given to the Museum by the Department and in addressing the government imperatives • Promote Ubuntu values: to promote a sense of cultural identity and worth by enabling people to attain knowledge and new perspectives regarding the history of humanity in general and the historical and cultural record of their own communities • Excellence: continuously strive to be a centre of excellence in our core duties and reputation • Responsiveness: to respond to the needs of our stakeholders with our best work in a timely manner 237 Jabu Ndlovu Street, Private Bag 9070, Pietermaritzburg 3200, South Africa Tel: +27 (0)33 345 1404 • Fax: +27 (0)33 345 0561 Website: http://www.nmsa.org.za PR221/2019 • ISBN: 978-0-621-47564-7
Photo Below: Justine Wintjes, a researcher in the Human Sciences department, recently published a paper in the museum’s journal Southern African Humanities, about a set of unusual early twentieth-century engraved cow horns. They were created by an unnamed African artist and depict imagery from the South African War (Object: accession number 1994.28.2, Pitt Rivers Museum, University of Oxford. Photo: J. Wintjes, 2010.)
Photo Opposite: The newly discovered Ceratogyrus Attonitifer spider. Credit: Dr Ian Enelbrecht