Financial Report 2007/08

Financial Report 2007/08

www.museumwales.ac.uk  Published in 2008 by Amgueddfa Cymru - National Museum Wales, Cathays Park, Cardiff CF10 3NP © The National Museum of Wales

Production: Mari Gordon Welsh text: Meleri MacDonald/Catherine Jones Design: Andrew Griffiths Design Printed by: Xpedient

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electrical, mechanical or otherwise, without the prior permission in writing of The National Museum of Wales, or the copyright owner(s), or as expressly permitted by law. Enquiries concerning reproduction outside the scope of the above should be sent to the Publications Department, , CARDIFF CF10 3NP. All images are © The National Museum of Wales unless stated otherwise.

This Financial Report is available on our website: www.museumwales.ac.uk.

This Report is printed on paper that has an ISO 14001 Environmental Certification. It is made from wood fibre from sustainably managed forests, fully recyclable and biodegradable. Financial Report Financial Report of the Board of Trustees of Amgueddfa Genedlaethol Cymru – the National Museum of Wales

Statutory background principles and key participatory techniques which 2007/08 The ‘National Museum of Wales’ (the Museum) directed Amgueddfa Cymru’s main consultative was established by Royal Charter in 1907 and activities for last year. continues to be registered as a legal entity and charity under this name (Charity No. 525774, VAT No. GB 783 4541 10). The current public-facing title Aims and Objectives of the organization is ‘Amgueddfa Cymru – National Amgueddfa Cymru – National Museum Wales’s Museum Wales.’ current aims and objectives are to:

An independent registered charity, the Museum • create living museums where the collections tell receives its core funding through grant-in-aid from their stories more clearly, and visitors the Welsh Assembly Government as an Assembly experience life in the past and present and Government Sponsored Body (AGSB). explore a variety of possible futures

Its core objective is ‘the advancement of the • develop flourishing collections that are well- education of the public’ involving developing, caring used, sustained and growing for, studying and sustaining access to its collections for the benefit of society in perpetuity. The Charter • find paths to make sense of the world using a (1907, revised 1991 & 2006) states that this is to variety of media suitable for diverse learning be achieved: styles to create equality of access to the collections (i) primarily, by the comprehensive representation of science, art, industry, history • develop as a learning organisation through and culture of, or relevant to, Wales, and sharing our plans with our visitors and jointly developing the ways in which we work, to (ii) generally, by the collection, recording, provide meaningful access to the collections for preservation, elucidation and presentation of the diversity of peoples who have made Wales objects and things and associated knowledge, their home whether connected or not with Wales, which are calculated to further the enhancement of • develop as a learning organisation by understanding and the promotion of research. embedding learning skills at the heart of all our work On 19 September 2006 the Museum was granted a supplemental Royal Charter and Statutes. This new • communicate our message so that Amgueddfa Charter changed the Museum’s governance Cymru – National Museum Wales becomes arrangements by abolishing the Court of Governors. known worldwide as a centre of learning of Stakeholder engagement, however, remains the international quality and provides greater access cornerstone of Amgueddfa Cymru’s vision. and increasing local profile of the national collections through our work with partner To this end, the Operational Plan 2007-08 set out organisations an objective to devise and implement a cost- effective consultation scheme to reflect the fact • build our resources so that we have a strong that the collections are held in trust on behalf of the and solid base, from which we will be able to public and to encourage stakeholders to take part in deliver our Vision for the next decade and a variety of consultative mechanisms, suitable for beyond. the diverse needs of users and non-users, by providing meaningful participation in the museum’s These strategic priorities will enable us to achieve planning processes at all levels. our vision to become a ‘World-Class Museum of Learning’, as well as supporting the Welsh The resulting Consultation Scheme and Ownership Assembly Government’s strategic vision as set out Action Plan for 2007-08 set out the values, in the ‘One Wales’ coalition agreement, 2007.

www.museumwales.ac.uk   Financial Report 2007/08 conduct its business. its conduct toTrustees inpublic, basis, aregular on meets of Board The of institution. the for purpose the granted or devised inkind gifts or buildings, lands, all and from other sources derived Government or by Welsh the Assembly contributed monies isvested all inwhich of Museum the property and of finances the administration and management of Trustees Board the for the isresponsible it and with rests of Museum the executive authority The D the G www.museumwales.ac.uk are agreed with the Welsh Assembly Government. of the Director General whose terms of appointment Employment, applicable to all staff, with the exception under the standard Museum Terms and Conditions of employed and competition open through appointed of are Directorate the members All this report. in are included also of which Directorate, details the by a are issues handled operational Day-to-day basis. aquarterly meet on committees These Museum’s the directing activities. company trading of subsidiary the Board the and Government; ofrepresentative Welsh the Assembly a including members, three other independent plus Chair anindependent has which Committee, Audit the issues; remit to operational broad monitor a has which Review Committee, Performance the principally sub-committees, various to of Trustees Board The authority delegates also to Museum. the of service her Trustees to appreciation their wish record staff and of Board the and 13 on 2007 died September Jones Trustee to public. the isopen Peirson which Jane interests of inaRegister Interests are maintained other and significant directorships company their of Details to this report. isattached appointments, retirements new and including report, until yearup the date and the of this throughout of Trustee of Board A schedule members are remunerated by Museum. the of Trusteesof the Board members No appointment. their after shortly handbook, comprehensive by a supported programme, an induction follow new appointees All process. the on advise to and assist established been has committee sub- Review. Appointments by Nolan the An recommended as selection of open principles the with inaccordance and RoyalCharter supplemental the within set out innumbers Museum the and Government by Welsh the Assembly are appointed of Trustees of Board the Members of Charity the overnance –T overnance irectorate irectorate he Board of T of Board he rustees and and rustees St Fagans, Cardiff Fagans, St Museum, History National Fagans: St Geology and Biodiversity & Systematic Biology. national collections of Archaeology & Numismatics,a distinct National Museum of Art, alongside the displays. During 2007-08 it started work on developingmuseums in the UK in its range of arts and scienceNational Museum Cardiff is unique among Cardiff Park, Cathays national Cardiff, Museum National Wales: across museums inseven locations operated directly Museum the 2007-08, During Wales’s locations C Amgueddfa Commission. Charity by the endorsed fully and Hub Governance National by the issued Sector Community and Voluntary for the of Governance Code the with compliant Museum’s are fully The arrangements governance of splitting and dressing slate by hand. slate dressing by and hand. of splitting live give displays craftsmen skilled Britain, mainland on waterwheel working largest the and sheds well foundry, the as forges, As workshops. quarry of slate unfolds original inthe Here, story the The , Llanberis, Gwynedd Britain. inRoman bases legionary permanent site the three on of one only stands of Caerleon jewellery. town and glass The pottery, equipment, military mosaic, alabyrinth materials, building tombstones, inscriptions, sculptures, include These for over finds of Roman years. 150 collection arich displaying been has Museum Legion Roman National the in1930, transferred and 1850, in Association Antiquarian by Caerleon the Founded Newport Caerleon, Museum, Legion Roman National The day. worked after miners the that inday darkness total the of experience mine the and depths metres to very the over 90 descend visitors miners, by ex- to unique Guided and Wales. in Britain unparalleled an experience mine. now offers It coal working former isacomplete Pit Big Blaenafon, Site at Heritage of World the heart inthe Set Big Pit: National Coal Museum, Blaenafon, Torfaen from all over Wales. collected have that been buildings period re-erected inover forty of years history enjoyand over 2,000 explore can Visitors Museums. History Industrial and of of four group our Social ispart St Fagans museums, of Europe’sOne open-air leading ymru –N ymru ational M ational useum useum

Financial Report The , Dre-fach Felindre, • a strong public programme of Centenary Carmarthenshire anniversary exhibitions and events during 2007 Located in the heart of the west Wales countryside, this museum tells the story of the forty mills once The 2007 Centenary celebrations were launched in clustered around Dre-fach Felindre. Cambrian Mills – January 2007 with the Art Treasures of Wales

the only mill that has remained in continuous operation exhibition. More than 30 paintings, sculptures and 2007/08 since it was built – now houses the Museum. items of decorative art were displayed at a central London location to mark the UK-wide launch of the The National Waterfront Museum, Maritime Centenary fundraising project to create a distinctive Quarter, Swansea new home for the National Art Collections at In the heart of Swansea’s regenerated Maritime Cathays Park. Quarter, the National Waterfront Museum is housed in a listed waterfront warehouse linked to a new, ultra- It was also an exciting time for St Fagans: National modern slate and glass building. The opening of the History Museum too as one of Amgueddfa Cymru’s Museum in October 2005 was the culmination of a major centenary projects was realised in April 2007. ten-year strategy that saw £40m of investment in our A new indoor gallery, Oriel 1, uses objects, four industrial museums across Wales. The Museum photography, film, art and personal stories to show provides a unique insight into the effects of the multiplicity of experiences that have created the industrialisation and maritime trading on life in Wales. nation that we call Wales today.

The Museum also has its National Collections Visitors from Wales and beyond also flocked to Centre in Nantgarw, Rhondda Cynon Taf, which is National Museum Cardiff to see works created by also open to the public by appointment. In addition, artists such as Monet, Cézanne and Van Gogh as we are currently involved in partnership the extraordinary story of Gwendoline and Margaret arrangements with local organisations for the Davies was explored in the major centenary management of Segontium Roman Museum in exhibition, Industry to Impressionism. Caernarfon, Gwynedd, and the in Penarth, Vale of Glamorgan, and with the Thanks to the launch of Rhagor website at the end Coast National Park Authority for a of the summer these works and much more can new facility at St Davids, Pembrokeshire, which is also be enjoyed online. This brand new ‘virtual’ currently under construction. museum reveals, for the first time, many previously unseen treasures from the collections housed at Wales’s seven national museums. Achievements The Rhagor site includes a wealth of authoritative During 2007-08, the Museum celebrated a number articles with interactive comment and rating facilities, of notable achievements across its sites, including: breathtaking image galleries, quizzes, dynamic maps and interactive image ‘navigators’. Users are also able Nearly 1.7 million visits were made to national to submit their own images and memories to the site. museums in Wales during 2007-08 – the highest Updated regularly and designed to expand into the total on record and 124% up on the number of future, the site’s ultimate goal is to present a holistic visits made in the last financial year before free approach to collections data, research activity and entry was introduced in April 2001. academic knowledge.

The 1,672,677 visits was 9% up on 2006-07 and The nation’s collections are also highlighted in included a record 674,678 to St Fagans: National Amgueddfa Cymru – National Museum Wales: History Museum, 353,509 to National Museum celebrating the first 100 years published by National Cardiff in Cathays Park and 264,195 to Wales’s Museum Wales Books. The book contains historical newest museum, the National Waterfront Museum photographs from the Museum’s archives together in Swansea. The Museum attributes this success to with striking modern images, which tell the story of three main factors: some of those who helped create the museum over the last century. • the continuing popularity of the Welsh Assembly Government funded free entry policy In October 2007, the opening of St Teilo’s medieval church at St Fagans saw many more thousands • the opening of the National Waterfront Museum coming to see a stunning ‘new’ re-erected historic in Swansea in 2005 building at the nation’s most popular visitor attraction.

www.museumwales.ac.uk   Financial Report 2007/08 across Wales and beyond. Its two flagship flagship two Its beyond. and Wales across of bodies arange with collaboration and partnership to in work continued Cymru Amgueddfa P in Working we are who today. understand us helps inaway that frompast the objects to question visitors challenges display innovative archaeology This Cardiff. Museum at National exhibition Nations Small and conference, international major a with 2007 inDecember closed centenary The www.museumwales.ac.uk Young Heritage Culture: and People, Creating a conference, Museum’s Ground The Common On shape. took collections, fromnational the exhibitions and take displays to able be will which newthe centre inSt Davids, Park, National Pembrokeshire with Coast closely Working towards inSt yParc Davids. new the Oriel investment planning in asignificant made Staff Newport. and Cardiff in Swansea, developed was programme learning based a community Alongside, libraries. community of venue, from museums to types different for suitable formats inalternative available made then was inSwansea which Museum Waterfront atNational the into exhibition amajor developed slavery, and Wales at looking project funded Lottery Heritage The space at Scolton Manor Museum, Pembrokeshire. the summer and autumn in a newly refurbished Cavalier – of presentation in Carmarthen. The treasures – literally was shown at following its Llandudno Museum, while their assessment of the Field Club collection held by The Departments of Geology and BioSyB completed art. contemporary alongside collections art historic works from our major included Both 2008. inFebruary Newtown Davies at Oriel and 2008 inJanuary Castle at Bodelwyddan round opened Wales for year’s support three for afurther Foundation Fairbairn Esmée to the made was application create. Asuccessful they of opportunities range the illustrating projects, Wales Gyfan-ArtShare TreasuresCymru Gyfan-Sharing venues insmall around– Wales collections featuringnational the to displays devise schemes The Tregwynt Hoard - Coins, Cromwell & and the final two exhibitions in the presentthe in two exhibitions final the and were displayed with great success through artnership , and the opening of the opening the , and Celf Cymru Gyfan-ArtShare Celf Cymru Gyfan-ArtShare Everywhere Chains in – saw some contrasting contrasting some –saw Dinosaurs in your Garden and and National Museums Museums National Celf Cymru , Origins Cyfoeth

comparable activities under the Welsh Assembly Welsh the Assembly under activities comparable anextensive review completed so, having of to continue will ofand do Wales, Library National the with worked also has closely Museum The Wales. across communities disadvantaged most the being areas, First Communities 17 and are in part schools of those taking schools aresult there are now As 141 project. Schools’ Bulbs for ‘Spring the on Officer Learning SCAN the by organized days of one 6training attended Wales from all over 140 teachers than more Whilst Môn. by Menter funded and Wales, from north teachers with Anglesey, on undertaken Parys Mynydd about resources learning of web-based development the completed Officer Learning Archaeology The funders. and young people with together sectors, art and heritage fromyouth, the practitioners and academics included Speakers Thomas. Glyn Rhodri Minister the for Heritage, including delegates, by over ahundred attended was It project. large Future from the Past expended were £26,802,000 (£26,696,000 in (£26,696,000 were £26,802,000 expended total and resources in2006-07) (£29,685,000 Total were resources £30,633,000 incoming in2006-07). incoming (£2,723,000 £3,705,000 were of capital before costs resources notional Museum’s netThe incoming consolidated Y the for Results Financial National Waterfront Museum in Swansea. prime function was the development of the new with the City and County of Swansea Council, whose Waterfront Museum Swansea Limited, a joint venture Museum’s figures is its50% share of National Museum’s trading activities. Also contained within the Enterprises Limited, which operates all of the subsidiary, National Museums & Galleries of Wales Museum are the results of the wholly owned Incorporated within the consolidated figures for the by Charities’. ‘Accounting Reporting and 2005) (SORP Practice Statementthe of Recommended requirements the of with are compliant accounts Museum’s Museum’s The of Finance. Director to the application on isavailable Direction Accounts of Treasury. the approval the of the Acopy Government with by Welsh the Assembly directed inaform 1992 Act &Galleries Museums the of 9(4) Section under are prepared accounts The T strategy.Government’s Connections” the “Making he Format of the Accounts the of Format he reviewed the impact of this reviewed impact the ear Financial Report 2006-07). The net increase in funds for the year While all of the collections are documented according after taking account of all realised and unrealised to the Museums Documentation Association gains and losses was £11,135,000 (£1,391,000 in guidelines, we have continued with a programme of 2006-07). Fund balances at 31 March 2008 stood computerising collections records with the aim of at £103,806,000 (£92,671,000 at 31 March 2007). achieving appropriate levels of computerised

National Museums &d Galleries of Wales documentation for the objects within the Museum’s 2007/08 Enterprises Ltd. reported a profit before gift aid to collections. During 2007-08, and based on a total the Museum of £308,000 for the 2007-08 financial collection size of 4,700,000, we achieved 52.9% of year (£255,000 in 2006-07). the collections with computerised inventory level records that allows an item to be accurately and swiftly identified and located and 29.1% of the Risk Management collections with full catalogue level records, including academic data and references to publications. Both of The Museum’s Board, Committees and Directors these figures were slightly down against the targets consider the major strategic, business and set for the year (55% and 30% respectively) due to operational risks which the Museum faces on a the heavy curatorial workload involved in the delivery continuous basis and have established a Risk of public programming during the Centenary Year. Management Group to ensure risks are reviewed However, steady progress continues to be made in and reported across the whole organisation and this area with the anticipation that targets will be met that appropriate positive mitigating actions are in during 2008-09. place. These systems have been embedded for many years and remain fully operational in The number of research projects (142) during the year accordance with best practice. The work of the exceeded the target (100), illustrating the continued Risk Management Group is scrutinised by both the strength of the Museum’s work in disseminating the Performance Review and Audit Committees, and knowledge inherent in the collections. the meetings are attended by the internal auditors. In addition, all risks are reviewed annually as an integral part of the operational planning process Capital Investment whilst also informing the internal audit plan. To underpin the delivery of the Museum’s Vision, a major programme of capital works continues and Performance Indicators the capital masterplanning programme focuses on the redefinition of our two most visited Museum During 2006-07, the Museum commissioned a sites. St Fagans has become the National History review of how we evaluate our work and activities Museum and National Museum Cardiff, Cathays at all levels. The report on this was published in Park, will evolve into two connected museums, a January 2007 and the recommendations of this National Museum of Natural History and a National report were carried forward during 2007-08 by an Museum of Art. internally convened Evaluation Review Group, resulting in an Evaluation Framework and 2008-09 Early work in this area has focused on ensuring that Action Plan for the organization that was approved the collections are held in appropriate storage. This by Trustees in April 2008. During the Pilot Year of has then been supported by addressing the 2008-09, progress in relation to this Action Plan will significant maintenance backlog which, when fully be monitored in parallel with the standard quarterly implemented, will ensure that the Museums are monitoring of progress against agreed quantitative weather tight, with improved public spaces, and and qualitative targets, with a fully integrated this will be followed by the re-display of the planning and evaluation framework then permanent collections at these sites. commencing in 2009-10. Initial projects within the Master Plan have included: The total number of visits made to our sites during 2007-08 was 1,672,677, against a target of Collections Care and Access Project 1,500,000. The number of visits to the Museum The major development during the year was the website was 1,926,781, which exceeded the target completion of the work to the building of the figure of 1,750,000, illustrating the continuing Domestic Collection Centre at St Fagans as well as growth in the numbers of our visitors and other the refurbishment of the “Atcost” Store which users who choose to access information about our houses the Museum’s agricultural collections. To work within the ‘virtual’ sphere. facilitate this work the collections were temporarily

www.museumwales.ac.uk   Financial Report 2007/08 over a three-year period ending 31 March 2008 to The Welsh Assembly Government committed £3.0m Works Maintenance Essential works of Art. larger store for to create aspecialist Cardiff Museum stores ceramic at National two anticipate converting we now However, 2008-09 during inaddition, of £4.4m. budget rose to orginal the this project on expenditure oftotal the expenditure £1.1m in2007-08, With moved to at Nantgarw. new the building www.museumwales.ac.uk to the valuations will be made. valuation in 3 years time, at which point adjustments Indexation will continue until the next professional re- than utilise charitable funds on annual re-valuations. indices to provide an estimation of valuation rather 2006, have been re-valued by the application of which were last professionally re-valued at 31 March In line with the Museum’s accounting policies, assets, Assets Fixed of Valuation Block. Centre inthe Sisters” “Davies the Collection of of re-display therethe this, also was advance In 2007.November in was phase re-opened first the new “hang”, for acompletely preparation of which to takenin be down collection Art the required also has Cardiff Museum at National wing east works to Maintenance rest the of Essential the The 2007. inNovember opened which into as anewknown installation exhibition by their completed was Cardiff Museum National at collections of Archaeological the re-display The Collections the of Re-display maintenance items. total, In £1.7mgalleries. these on expended was one the of and entrance the to roofing defective replacing on concentrated work the St Fagans, at whilst completed was Cardiff Museum National of wing renewing to roofcovering the East the on work 2007-08, during priorities, these Reflecting to enable these works to be addressed. has added per£500k annum from its capital budget maximise the impact of this funding, the Museum electrical services across these two sites. In order to Museum, there will also be the need to improve the Museum Cardiff and St Fagans: National History replacing the defective parts of the roof at National faces. Whilst the majority of this work focuses on longer term capital investment issues that it now allow the Museum to start to address some of the Origins , • They include: purchases. significant to make some possible was it grant-funders, and of supporters help the with Nevertheless, market. antiquities and the art in inflation to continuing fundcompared acquisition specimen nature of the of static the fewbe because to continued purchase through acquisitions Major Acquisition Specimen the cost of valuation of heritage assets is prohibitive. been recorded at cost. The Trustees consider that capitalised and heritage assets since that date have assets acquired prior to 1 April 2001 have not been assets over time, and heritage assets. Heritage assets, due to the general lowering in price of IT The only assets not re-valued by indexation are IT • • • welcome. particularly been has this initiative and of Museum, the supporter amajor been long has Trust Williams Derek centenary. the celebrate The to art contemporary and works of modern suitable Trust ofWilliams buying for expresspurpose the Derek the and by Museum the fund set jointly up Museum’s centennial year, from the bought and the to were above the Both celebrate purchased •

total cost of £253,000. This group will be a be will group This of £253,000. total cost at a dealers from various bought late 1940s, and made for Sir Watkin Williams Wynn in1773, Wynn forWilliams Watkin Sir made and £11,760. being Museum the to cost the with institution, of each collection works have entered Three 1820. the Delamotte, O. Vale the by and G. of Neath Glamorgan of sketches six purchase the Wales of Trust. Williams Derek the by supported again was treaty. acquisition This by private for were £42,000 purchased 1982) from a private collection for £290,000. as it is for its aesthetic merit. This was purchased ‘Degenerate held Art’ in Nazi Germany in 1937 - – it was shown in the infamous exhibition of (1927). This painting is as important for its history Vassily Kandinsky titled museums. to national British of work unique Picasso’srepresentation ceramic Four ceramics decorated by Pablo Picasso in the Picasso by Pablo decorated ceramics Four A pair of sauceboats designed by Robert Adam Adam by Robert designed of sauceboats A pair of Library the National with shared Museum The (1889- Morris Cedric by Sir Seven paintings A watercolour painting by the Russian artist Acid Green Crescent

Financial Report purchased for £71,000, with the help of the advocacy work in recruiting other supporters to the Art Fund. scheme. In 2007 the Development Department launched a Patrons Centenary Appeal. This was • A gilded relief panel by Sir Edward Burne-Jones, recently closed and has generated in excess of Perseus and the Graiae, was accepted in lieu of £43k including gift aid, and has been used to

inheritance tax and allocated to the Museum purchase items for St Teilo’s Church at St Fagans. 2007/08 through the Welsh Assembly Government. A balance of £60,000 was met in part by a grant During the year the Development Board, which is from the Art Fund and the specimen is valued in made up of individuals who have kindly agreed to the Museum’s accounts at £250,000. assist the Museum in meeting its fundraising targets, has started to focus on key projects, in Other important acquisitions were made through particular the refurbishment of St Fagans: National donation, bequest, and fieldwork and excavation. History Museum. One of its members assisted in They included: the facilitation of a grant from the Principality Building Society, and following this the Museum • A collection of some 7,000 dandelion specimens successfully submitted the Principality for one of for the Welsh National Herbarium, donated by the prestigious Arts and Business Wales awards. Professor A. Richards. The Friends of the Museum continued to support • 500 specimens related to medicinal plant the work of the Museum via three main avenues. research, donated by Cardiff University. Firstly, as ambassadors for the Museum’s work, providing a programme of talks, trips and other • A large enamelled horse-strap union and bell activities that complements the Museum’s own from Cwm Parc, Rhondda, dating to the 1st educational activity. century AD and decorated in the La Tène art style, donated by Forestry Commission Wales. Secondly, the Friends provide a volunteer group to support the Museum’s own activities. Friends meet • The barn and calf-shed from Kennixton, Gower and greet groups and individuals, such as Friends were donated by Messrs. Glyn and David Rogers, groups from other museums, interested casual whose family donated the original farmhouse to visitors and also assist curatorial staff across the the Museum for re-erection at St Fagans in the spectrum of the Museum’s activities. It is important 1950s. These buildings will join the farmhouse. to note that such activity is regarded by the Museum as valuable additionality, rather than the Details of all individual heritage assets acquired provision of core work by volunteers. In total we during the year with a value over £5,000 are received 285 hours of attendance by the Friends in contained in Note 10 to the accounts. a volunteering capacity.

Thirdly, the Friends also provide financial support Fundraising and Volunteers for a number of projects and this year generously contributed towards an education van, research The total income secured during the year by the Museum’s Development Department was £876k grants, the redevelopment of Oriel 1 at St Fagans from a range of public sources, trusts and and the Origins displays and east wing gallery at foundations, companies and individuals. A further National Museum Cardiff. £542k in pledges was also secured.

Not reflected in these figures are a number of long Prompt Payment Performance term initiatives that are also in the planning stage or The Museum subscribes to the objectives of the being implemented - such as a legacy promotion Better Payment practice code issued by HM and significant major donor and corporate work. Treasury and aims to pay valid invoices within 30 The Development Department has also days of receipt. The average time taken for commenced planning for income generation for the payment of invoices during 2007-08 was 8 days (7 redevelopment of St Fagans: National History days in 2006-07), which includes 98% (by number) Museum. of invoices settled within 30 days (98% in 2006- 07). There were no payments of interest under the The Patrons continue to increase their invaluable Late Payment of Commercial Debts (Interest) Act support through their membership, and through 1998 (£Nil in 2006-07).

www.museumwales.ac.uk   Financial Report 2007/08 Pit, the National Slate Museum, the National Wool Wool National the Museum, Slate National the Pit, Big Scheme. Environmental Accreditation Dragon’ ‘Green the within status Levelits 3Accreditation maintained Museum Legion Roman National The biodiversity. global and to threats the and climates local of changing impact the involvedissues with of well as visitors’ our as understanding operations, to of day our day sustainability the enhanced that of communication methods and practices working to develop continued Museum the 2007-08, During Sustainability www.museumwales.ac.uk upon based forthcoming be may that operations its on defer to and impact the inorder reduce 2008-09 during reserves to cash generate endeavouring however, limits, these Within is Museum the year-end. financial created the at barrier artificial investedthe after profitably more be could possibly which balances tocash inorder reduce expenditure in-year encourage could and management financial prudent hinder believes can it as it AGSBs within limits carryover annual restrictive these of regrets imposition Museum the The year end. financial the straddle which projects capital and of Swansea) County and City the with arrangement jointthe funding reflect Swansea (to Museum, Waterfront of National the inrespect application upon exemptions available be may Further income. self-generated and Grant Purchase Specimen exemptions of with the from any limitinrespect to 2% grant-in-aid, of its reserves limited cash 08 2007- year-end atfinancial the which Memorandum Museum’s Statement Financial and Management Government inthe granted by Welsh the Assembly authority the on dependent iscurrently policy This only. reserves cash to disposable applies here stated reserves on policy the to objectives, in order aims and achieve its conservation and collection with charged abody As P organization. of footprint the total the carbon reduce to years to us help coming the throughout us with Trust work will who Carbon the with partnership entered also has Museum into The aformal 2008-09. during Level 2status gaining towards work preparatory undertook both Centre Collections National the and Museum Waterfront National the and Level their 2status all maintained Cardiff Museum National and St Fagans Museum, olicy on Reserves on olicy to minimising the tax consequences of trading. the consequences to minimising tax the consideration due gives also Museum the to profits for transfer the of returns. Arrangements trading improve to inorder further subsidiary trading the in being re-invested this mightresult inprofits occasions On of Museum. the objectives aims and towards funding the to additional utilised provide are to Limited, be Enterprises NMGW subsidiary, trading wholly-owned the within generated Profits Funds. Private the within contained use on restrictions any within remaining whilst support, grant other or to funding core receive isunable it which for schemes Capital and projects on utilisation for funds these hold and isto maximise policy Museum’s the limitand to acarryover subject areThese not accounts. the within specified and maintained are funds separately Private 2010-11. and for 2009-10 Assembly from the received allocations grant-in-aid indicative scheme which is available to all permanent to all isavailable permanent which scheme pension benefit adefined operates Museum The P to £83k. £104k fell year the also from during ofvalue this portfolio The investment companies. ineleven chip blue anequity from bequests, held, also Museum The marketstock investments. movement general the in reflects which £1,848k to fell year the from £2,029k during portfolio the of value to The review basis. aregular subject on is funds of those performance The deposits. based incash elementretained asubstantial plus portfolio are funds the invested and risk risk inamedium to attitude isacautious Ltd. There Management Investment Gerrard advisors by its managed Museum’sThe investments funds private are I notes Accounts. to Financial the the within provided ananalysis with £103,806,000 Museum’s wereThe Total 2008 at 31 Funds March fromtrading. profits retained and funds private carry-over, retention via isavailable in reserve flexibility maximum that isessential it developments, these to in order part-fund locations, refurbishments at its and developments capital of plan a long-term on continuing the Museum With nvestment P nvestment ension L ension iability olicy and P and olicy erformance Financial Report employees. In common with the vast majority of Future Developments such schemes, recent annual valuations for the The Museum used its Centenary year as a platform statutory accounts have shown a deficit of scheme to drive our vision to become ‘a world-class assets when compared to scheme liabilities. The museum of learning’. Building on the visioning deficit was predominantly caused in the first place exercise undertaken in 2005, including consulting by a significant fall in the valuation of the scheme’s with around 5,000 organizations and individuals in 2007/08 investments, particularly equity investments, a few Wales and beyond, the views expressed through years ago. Whilst investment returns remain this process were taken into account in preparing variable, further factors also affect the scheme our plans for the future. In summary, there was a valuations including the anticipated increased general consensus in several areas: longevity of the members. However, it is highly significant to note that on 21 June 2006 the 1. The need to split National Museum Cardiff to National Assembly for Wales issued a Crown become a National Museum of Natural Science Guarantee in respect of “all such sums as are on the ground floor and a National Museum of necessary to secure that the assets of the scheme Art on the upper floors. are sufficient to meet in full all of its liabilities”. 2. That the moving of the Archaeology collections Details of how pension costs are accounted for are to St Fagans and a major future development at contained in the accounting policies note to the that site would be beneficial in developing the accounts. Disclosure requirements contained in site as a National History Museum. Financial Reporting Standard 17 are contained within note 16 to the Financial Statements, and 3. That the Museum needs to work towards compare the present day value of the scheme’s developing its Art facilities as an essential assets to the potential scheme liabilities. The value precursor to the development of a National Art of the scheme deficit has fallen at 31 March 2008 Gallery. to £11.754m compared to the opening deficit of £14.001m. A key component in the calculations of 4. That our existing partnership arrangements are the scheme’s position is the discount rate that is already extending access to our collections used to calculate the present day value of the across Wales and wider, and that this should be liabilities. The Museum is required to comply with maintained and developed. accounts guidance from HM Treasury which this 5. That the public already use much of the year set a discount rate of 2.5% above inflation and Museum’s intellectual assets via the internet but this rate was accordingly incorporated within the the development of the ‘virtual museum’ will calculation by scheme’s actuary. The fall in the enhance this provision. scheme’s deficit balance is predominantly due to the use of this higher discount rate compared to Against this background, the Museum has last year’s rate of 1.8%, as it significantly reduced assessed the relative priorities of its developments the liabilities. This effect has been offset, to some as follows: extent, by the fall in equity investments. i. Completing the essential maintenance works Over the last few years, the Museum has taken project to address the significant maintenance various steps to address the deficit including an backlog at National Museum Cardiff and St increase in employer contributions of 4.5% to the Fagans: National History Museum. current 21.3% plus there have been capital ii. Converting spaces within National Museum injections from the Welsh Assembly Government. Cardiff so as to extend the spaces available for The Museum will continue to seek financial support the display of Art and giving greater focus and for the Scheme from the Welsh Assembly space to Natural Science. Government and it will also continue to make iii. Support the Pembrokeshire Coast National Park further lump sum contributions from within its own in its aspirations to develop their existing St resources if they become available. In the Davids Tourist Visitor Centre into an meantime, the Museum and the Scheme’s environmental centre which will be able to Trustees have agreed that the current level of house the collection of Graham Sutherland contributions will remove the deficit over an which has been left in trust to the Museum. acceptable time frame, taking due account of the iv. Developing the facilities at St Fagans such that Crown Guarantee. it becomes “The National History Museum”.

www.museumwales.ac.uk  10 Financial Report 2007/08 wanted in terms of the future direction of St Fagans wanted of St interms Fagans of future the direction public the what steer about aclear Museum exercise consultation gave the 2005 The Wales. for Museum History aNational as attraction visitor popular most to country’s the redevelop strategy the on started already has work At St Fagans, www.museumwales.ac.uk the throughout diversity champions group year. past the during This Advocates Disability to employees become over trained 60 has Museum To information. and the buildings this work, assist to both access to improve facilities disabled public to continues invest Museum the in Furthermore, to remain inemployment. able to ensure are ismade employees that effort every – helped are similarly of employment their course the during disabled become who Employees are metappointment. on people disabled to of ensure needs the Advisors Employment Disability local works with Museum The merit. on only therefore appoints and interviews and procedures recruitment discriminatory to non- continues implement Museum The E P today. country adiverse such of whyis and it roots Wales the about more learn want who visitors of to the is toexpectations fulfil aim The told. be can afuller story that so St Fagans at re-displayed and Cardiff Museum centre National moved fromcity the be will period modern the predate that collections of archaeology the Much of Wales. history of context national the wider into the collections history social and buildings existing the sensemore of site the by putting making through at St Fagans offer the enhance totimes present the day. will development The offrom earliest Wales, nation and of peoples the tells that story the place the to become developed be will St Fagans decade, next the During of anation. development the of story the to experience expect and pilgrimage make a many topeople which place isthe Fagans telling have over us been St –that years abroad the and manyhome fromvisitors what confirmed and v. quality of Opportunity of quality olicies Relating to Staff Relating olicies of Wales. Library National the for and Wales, Council Arts the Government, Welsh the Assembly with inconjunction appraisal anoptions undertaking by at avenue yet to identified, be Gallery To develop proposals to create a National Art To Art to create aNational proposals develop

The Museum continues to continues invest Museum and time The T Staff appropriate. as of communication methods informal plus intranet and communications, e-mail groups, working meetings, department meetings, staff including of methods by avariety supplemented requirement to is legal consult This organization. inthe changes major on unions, recognised through and directly both staff, with consults and regulations, Consultation and Information 2005 the with to continues comply Museum The C Staff organization”. the within harassment and discrimination to “elimination the organization of all of forms the commits which policy Opportunities anEqual has also Museum the people, disabled with engaging on to policy its addition In Disability. of Model works to and Social the organization automatically awarded to awarded all staff. automatically remit are pay agreed the within contained elements reviews.development Inflationary Museum’s the upon systemdependant of personal remit are pay the under increases Incremental round of until negotiation. next the isbinding which of Museum the for whole the package conditions results inanew and pay This unions. trade recognised the with of negotiations basis the forms which Government and for approval Assembly to Welsh the issubmitted which (proposal) remit apay develops and package remuneration the Museum’s considers group year a working Each issues. grading to consider process appeals internal isanindependent There Government. Welsh the Assembly with directly agreed are terms conditions and whose General Director exception the of with the allcovers employees, treatment for all. This ensure equitable fairand to implemented was which structure grading and pay anagreed inplace has Museum The Report Remuneration towardsare working assessment. Museum History National St Fagans: and Museum Waterfront National the Both Museum. Slate National the and Museum Legion Roman National the Museum, Coal National Pit: atachieved Big been has accreditation This this commitment. measure of external animportant as status People Investors in identified has Museum The employees. for all its informal) and formal (both opportunities training and toresources development provide raining onsultation Financial Report The Director General’s salary consists of a basic Auditor salary with an annual bonus. The amount of this The accounts are audited by the Auditor General for bonus (up to a maximum of 10% of salary) is Wales in accordance with Section 9 (8) of the agreed by a Remuneration Committee which Museums and Galleries Act 1992. Details of consists of the President, Vice President, Treasurer auditors’ remuneration for the year ending 31 and Dr W B Willott. The performance of the March 2008 are contained in Note 6 to the Financial 2007/08 Director General is reviewed against a set of pre- Accounts. determined objectives and this evaluation of performance is then considered by the Remuneration Committee. A percentage of the Principal Office bonus is then consolidated into his annual salary and the amount which can be consolidated is The principal office for the National Museum of established under guidance from the Welsh Wales is: National Museum Cardiff, Cathays Park, Assembly Government. Cardiff CF10 3NP.

Directors of the Museum are shown on page 12 and further details of the remuneration and pension Principal Advisers benefits of Directors are contained within note 7(c) Bankers: Lloyds TSB Bank PLC, Cardiff to the Accounts. No Director is employed on a fixed Solicitors: Geldards LLP, Cardiff term basis, and all, with the exception of the Internal Auditors: RSM Bentley Jennison, Cardiff Director General, are employed on the Museum’s standard terms and conditions. Any changes to the Investment Managers: Gerrard Investment terms and conditions pertaining to the Director Management Ltd, Cardiff General are subject to the agreement of the Pension Fund Managers: BBS Consultants and Remuneration Committee and (where appropriate) Actuaries LLP, Bristol the Welsh Assembly Government. Taxation: Deloitte & Touche LLP, Cardiff

The notice period for the Director General is 6 Michael Houlihan months. Notice period for all the other Directors Accounting Officer and Director General varies with length of service, with 1 week of notice Approved and signed on 23 July 2008 for each year of service (plus 1 further week) up to a maximum of 13 weeks. The dates of J. Peter W. Morgan commencement of employment of the Directorate Treasurer, on behalf of the Board of Trustees are: Michael Houlihan (Director General) -14 April Approved and signed on 23 July 2008 2003; Eurwyn Wiliam – 29 September 1971; Jon Sheppard – 1 November 2002; John Williams- Davies – 1 September 1973; Michael Tooby – 1 January 2000; Mark Richards – 25 January 1999; Robin Gwyn – 1 February 2001. Provision for compensation for early termination is contained within the Museum’s standard redundancy arrangement.

This Remuneration Report and the details contained in note 7(c) to the Accounts are subject to audit.

Welsh Language Policy Each AGSB is expected to draw up and review a Welsh language mainstreaming strategy annually (including the implementation of a Welsh Language Scheme). The Museum’s 2007-08 Mainstreaming Strategy was implemented in full and has now been revised to reflect the mainstreaming implications of the overall Operational Plan for 2008-09.

www.museumwales.ac.uk 11 12 Financial Report 2007/08 Vice President Mathew Prichard,CBE,DL,BA(to31October2007) Immediate Pastresident Paul E.Loveluck,CBE,JP, BA* President (From 1April2007onwards) Board ofTrustee www.museumwales.ac.uk Director ofCommunications Director ofOperations Director ofLearning&Programmes Director ofStFagans:National HistoryMuseum Director ofFinance (Deputy DirectorGeneral) Director ofCollectionsandResearch Director General (From 1April2007onwards) Directora * IndicatesmembersoftheAuditCommittee Dr HaydnEllisEdwards(from1November2007) Prof. JonathanP. Osmond(from1November2007) Dr W. B.Willott,C.B. D. BowenLewis(to31October2007) Prof. J.Last,CBE,MA,D.Litt,HonFMA,FRSA Jane PeirsonJones,MA,FMA(deceased13September2007) Prof. C.L.JonesOBE,FRSA J. W. EvansCBE,MA(to21June2007) Dr IoloapGwynn,B.Sc.,Ph.D.,FRMS Appointed bytheNationalMuseumofWales Christina Macaulay(from1November2007) Prof. GarethWynJones(from1November2007) Miriam HazelGriffiths(from1November2007) Carole-Anne Davies(from1November2007) Gareth Williams H. R.C.Williams Rhiannon WynHughes,MBE Appointed bytheWelsh AssemblyGovernment J. PeterW. Morgan,M.Sc.,FCA*(Boardmemberto31October 2007thenappointedTreasurer) G. WynHowells,ACIB*(to31October2007) T Elisabeth Elias,MA,DL*(Boardmemberto31October2007thenappointedVice President) Dr SusanJ.Davies,BA*(to31October2007) reasurer te Robin Gwyn Mark Richards Michael Tooby John Williams-Davies Jon Sheppard Eurwyn Wiliam Michael Houlihan Financial Report Statement of the Board of Trustees and Director General’s Responsibilities

Under section 9(4) of the Museums and Galleries Act 1992, the Board of Trustees of the National Museum of Wales is required to prepare a statement of accounts for each financial year in the form and on the basis 2007/08 determined by the Welsh Assembly Government, with the consent of the Treasury. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the Museum and of its net incoming resources, realised and unrealised gains and losses and cash flows for the financial year.

In preparing the accounts the Trustees and the Director General are required to comply with the requirements of the Statement of Recommended Practise (2005): Accounting and Reporting by Charities and the Government Financial Reporting Manual and in particular to:

• observe the accounts direction issued by the National Assembly for Wales including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis; • make judgements and estimates on a reasonable basis; • state whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed and disclose and explain any material departures in the accounts; and • prepare the accounts on the going concern basis.

The Principal Accounting Officer for the National Assembly for Wales has designated the Director General as the Accounting Officer for the National Museum of Wales. The Director General’s relevant responsibilities as Accounting Officer, including responsibility for the propriety and regularity of the public finances for which he is answerable and for the keeping of proper records and for safeguarding the Museum’s assets, are set out in the Accounting Officers’ Memorandum issued by the Treasury.

Statement of disclosure of information to auditors So far as the Director General and the Treasurer, on behalf of the Board of Trustees, are aware, there is no relevant audit information of which the Museum’s auditors are unaware, and they have taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the Museum’s auditors are aware of that information.

www.museumwales.ac.uk 13 14 Financial Report 2007/08

2 1 Statement onInternalControl www.museumwales.ac.uk 4 c 3. . t . t . Scope of responsibility of Scope Membership oftheRiskManagement Groupincludestheinternalauditorinorderto accessissuesof mitigating actionsundertakenagainstthehighestrated risks. the RiskRegisteramendmentsandissuesdiscussedat thegroup’s quarterlymeetings,togetherwith Review andAuditCommittees.Furthermore,thePerformance ReviewandAuditCommitteesreview The groupisalsorequestedtoconsiderspecificpotential risksbytheBoardof Trustees, Performance transferred totheMuseum’s mainregister. duration. Attheendofaproject,thatproject’s RiskRegisterisassessed andallcontinuingrisksare Separate RiskRegistersaremaintainedforthetradingsubsidiary andforallmajorprojectstheir of allExecutivegroupmeetingsinvolvingtheDirectorate andallHeadsofDepartment. Museum’s operations.Theidentificationandmanagementofrisks isalsoastandingitemontheagenda achievement oftheMuseum’s aims,andtherebyensurethattherisksassessedcoverallaspectsof continuously engagewithallHeadsofDepartmentregardingchangesinpotentialthreatstothe according tothelikelihoodofriskmaterialisingandpotentialimpactthereof.Thegroup of theMuseum’s collections.ARiskRegisterismaintainedbythegroupwithallrisksprioritised the progressandeffectivenessofcontrolsmajorrisks,including,course,ongoingsecurity by comparisonwithotherorganisations. experience oftheindependentmembersAuditCommittee,processiscontinuallyrefreshed drawing upontheexperienceofinternalauditors,whoattendriskreviews,andby by thePerformanceReviewsub-committeeofBoardTrustees andtheAuditCommittee.By assessment ofrisksconductedregularlybyaRiskManagementGroup.Thesereviewsarescrutinised control, theMuseumoperatesFraudandWhistleblowingpolicieswhicharesubjecttoauditreview. annual reportandaccounts,accordswithTreasury guidance.Insupportofthesysteminternal been inplacetheMuseumforyearended31March2008,anduptodateofapproval realised andtomanagethemefficiently, effectivelyandeconomically. Thesystemofinternalcontrolhas objectives, toevaluatethelikelihoodofthoserisksbeingrealisedandimpactshouldtheybe designed toidentifyandprioritisetherisksachievementofMuseum’s policies,aimsand not absolute,assuranceofeffectiveness.Thesysteminternalcontrolisbasedonanongoingprocess all riskoffailuretoachievepolicies,aimsandobjectives;itcanthereforeonlyprovidereasonable Managing PublicMoney. Accounting Officerispersonallyresponsibleinaccordancewiththeresponsibilitiesassigned as setbytheBoardofTrustees, whilstsafeguardingthepublicfundsandassetsforwhich control thatsupportstheachievementofNationalMuseumWales policies,aimsandobjectives, coverage ofallpotentialrisks. concern inotherbodies,whilst departmentalrepresentationisreviewedonaregular basistoensure The AccountingOfficerand Trustees haveresponsibilityformaintainingasoundsystemofinternal A robustRiskManagementreviewisconductedbyadedicatedcross-departmentalgroupwho Risk Managementonaday-to-daybasisistheresponsibilityofDirectorate,withformalreviewsand The systemofinternalcontrolisdesignedtomanageriskareasonablelevel,ratherthaneliminate he purpose of the system of internal control internal of system the of purpose he he Risk and C and Risk he apacity to handle risk to handle apacity ontrol Framework ontrol Financial Report Threats to the security of all the Museum’s assets is a fundamental risk, requiring mitigating actions, and is regularly reviewed by internal audit and the Board of Trustees. During the year ended 31 March 2008, the Museum, via the Risk Management Group, also reviewed the risk and mitigating actions relating to the security and confidentiality of personal and other data. Appropriate controls were confirmed and reported thereon from the group’s meetings. 2007/08 The Risk Management Policy and Guidelines set out the framework and roles and responsibilities in managing risk together with guidance on risk identification, assessment, monitoring and control. Audit of the design and operation of the Risk Management process is included within the internal auditors rolling programme of work and was subject to review during the year ended 31 March 2008. No recommendations arose from that review with the conclusion by the internal auditors that “the control framework, as currently laid down and operated, provides substantial assurance that the risks material to the achievement of the organization’s objectives for this area are adequately managed and controlled”.

5. Review of effectiveness The Accounting Officer also has responsibility for reviewing the effectiveness of the system of internal control. The review of the effectiveness of the system of internal control is informed by the work of the internal auditors and the Directorate of the Museum who have responsibility for the development and maintenance of the internal control framework, and comments made by the external auditors in their management letter and other reports. The Accounting Officer has been advised on the implications of the result of his review of the effectiveness of the system of internal control by the Trustees and the Audit Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.

The Museum has established the following processes to complement the risk management framework to maintain an effective system of internal control:

• Detailed financial regulations and administrative procedures including segregation of duties and various levels of delegated authority; • Comprehensive budgeting systems with an annual budget which is approved by the Trustees and regular reviews by Heads of Department, Directorate and the Board of Trustees of monthly financial reports, which indicate financial performance against the forecasts; • setting targets to measure financial and other performance within the Operational Plan, with progress monitored by quarterly meetings of a Performance Review Committee; • clearly defined capital investment control guidelines and monitoring thereof; • regular reports by internal audit to standards defined in the Government Internal Audit Manual which includes the Internal Auditor’s independent opinion on the adequacy and effectiveness of the system of internal control together with recommendations for improvement.

A key component in the Museum’s review of effectiveness of systems of internal control is the Audit Committee. The Committee is made up by Trustees and up to four independent members (one of whom usually acts as the Chairman). The Committee meets quarterly with not only the minutes of the meeting being considered by the Board of Trustees, but also a report from the Chairman. Meetings receive reports from both internal and external auditors and follow-up on all action points arising. Key Directorate members also attend as appropriate to the agenda and annually, the Committee meets the auditors without the Directorate being present and vice-versa. Broad terms of reference for the Committee cover all aspects of risk, control and corporate governance including risk management reports.

Michael Houlihan J. Peter W. Morgan Accounting Officer and Director General Treasurer, on behalf of the Board of Trustees Approved and signed on 23 July 2008 Approved and signed on 23 July 2008

www.museumwales.ac.uk 15 16 Financial Report 2007/08 W Flow Statementandtherelatednotes.Thesefinancialstatementshavebeenpreparedunder Consolidated StatementofFinancialActivities,theBalanceSheet,Cash 31 March2008undersection9(4)oftheMuseumsandGalleriesAct1992.Thesecomprise I certifythathaveauditedthefinancialstatementsofNationalMuseum Wales fortheyearended The Cer Amguedd www.museumwales.ac.uk Auditing PracticesBoard.My auditincludesexamination,onatestbasis,ofevidence relevanttothe I conductedmyauditinaccordance withInternationalStandardsonAuditing(UKand Ireland)issuedbythe Opinions Audit of Basis to anyotherinformation. misstatements ormaterialinconsistencieswiththefinancial statements.Myresponsibilitiesdonotextend audited financialstatements.Iconsidertheimplications formyreportifIbecomeawareofanyapparent I readtheotherinformationcontainedinFinancialReport andconsiderwhetheritisconsistentwiththe Wales corporategovernance proceduresoritsriskandcontrolprocedures. statement coversallrisksandcontrols,orformanopinion ontheeffectivenessofNationalMuseum with HMTreasury’s guidance,andIreportifitdoes not.Iamnotrequiredtoconsiderwhetherthis I reviewwhethertheStatementonInternalControlreflects theNationalMuseumof Wales’ compliance specified byHM Treasury regardingremunerationandothertransactionsisnotdisclosed. records, ifIhavenotreceivedalltheinformationandexplanationsrequireformyaudit,or In addition,IreporttoyouifinmyopiniontheNationalMuseumofWales hasnot keptproperaccounting transactions conformtotheauthoritieswhichgovernthem. income havebeenappliedtothepurposesintendedbyNationalAssemblyforWales andthefinancial consistent withthefinancialstatements.Ialsoreportwhetherinallmaterialrespectsexpenditureand made thereunder. Ireporttoyouwhether, inmyopinion,theinformationgivenFinancialReport,is accordance withsection9(4)oftheMuseumsandGalleriesAct1992Welsh Ministers’directions financial statementsandthepartofRemunerationReporttobeauditedhavebeenproperlypreparedin I reporttoyoumyopinionaswhetherthefinancialstatementsgiveatrueandfairview (UK andIreland). in accordancewithrelevantlegalandregulatoryrequirements,InternationalStandardsonAuditing My responsibilityistoauditthefinancialstatementsandpartofremunerationreportbeaudited Officer’s Responsibilities. transactions. TheseresponsibilitiesaresetoutintheStatementofBoardTrustees andAccounting Act 1992andWelsh Ministers’directionsmadethereunderandforensuringthe regularity offinancial Financial Reportandthefinancialstatementsinaccordancewithsection9(4)ofMuseumsGalleries The BoardofTrustees andtheDirectorGeneral,asAccountingOfficer, areresponsibleforpreparingthe Respective responsibilities of the Board of that isdescribedinreportashavingbeingaudited. accounting policiessetoutwithinthem.IhavealsoauditedtheinformationinRemunerationReport of ales totheNa W a le tifica s fa

G te andRepor enedl tional Assembly forW a eth o l t oftheAuditorGeneralfor C T ym rustees, the Accounting Officer and Auditor r u – the Na ales ti o n a l M u s eum Financial Report amounts, disclosures and regularity of financial transactions included in the financial statements and the part of the Remuneration Report to be audited. It also includes an assessment of the significant estimates and judgments made by the Board of Trustees and Accounting Officer in the preparation of the financial statements, and of whether the accounting policies are most appropriate to the National Museum of Wales circumstances, consistently applied and adequately disclosed. 2007/08 I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements and the part of the Remuneration Report to be audited are free from material misstatement, whether caused by fraud or error, and that in all material respects the expenditure and income have been applied to the purposes intended by the National Assembly for Wales and the financial transactions conform to the authorities which govern them. In forming my opinion I also evaluated the overall adequacy of the presentation of information in the financial statements and the part of the Remuneration Report to be audited.

Opinions In my opinion:

• the financial statements give a true and fair view, in accordance with the Museums and Galleries Act 1992 and directions made thereunder by Welsh Ministers, of the state of the National Museum of Wales, and its group, affairs as at 31 March 2008 and of its incoming resources and application of resources, and cash flows for the year then ended; • the financial statements and the part of the Remuneration Report to be audited have been properly prepared in accordance with the Museums and Galleries Act 1992 and Welsh Ministers directions made thereunder; and • information given within the Financial Report is consistent with the financial statements.

Opinion on Regularity In my opinion, in all material respects the expenditure and income have been applied to the purposes intended by the National Assembly for Wales and the financial transactions conform to the authorities which govern them.

Report I have no observations to make on these financial statements.

Jeremy Colman Auditor General for Wales 24 Cathedral Road Cardiff CF11 9LJ

Date: 1 August 2008

www.museumwales.ac.uk 17 18 Financial Report 2007/08 Costs ofTrading Subsidiary Costs ofGeneratingFunds: Costs ofFundraising Other income Donations &bequests Fundraising income Income fromtradingsubsidiary www.museumwales.ac.uk pension scheme Actuarial Gains/(Losses)ondefinedbenefit valuation ofinvestments Realised/Unrealised Gains/(Losses)onmarket Reversal ofnotionalcostcapital Pension FinanceCosts Museum Operations Collections &Research Investment Income Activities forGeneratingFunds: INCOMING RESOURCES Learning &Programmes Costs ofCharitableActivities: fixed assetsintendedforCharityUse Unrealised Gainsonrevaluationof Notional costofcapital SHARE OFJOINTVENTURE Governance Costs BEFORE NOTIONALCOSTS NET INCOMINGRESOURCES TOTAL RESOURCESEXPENDED THE FINANCIALYEAR NET MOVEMENTINFUNDSDURING BEFORE TRANSFERS NET INCOMING/(OUTGOING)RESOURCES FUND BALANCESB/FWDAT 1APRIL2007 FOR THEFINANCIALYEAR NET INCOMINGRESOURCES Grants Activities inFurtheranceofCharitableObjects: The non-consolidated netincreaseinfundsrecorded the All activitiesarecontinuing. The aboveSOFA includesallrecognisedgainsandlosses. FUND BALANCESC/FWDAT 31MARCH2008 RESOURCES EXPENDED TOTAL INCOMINGRESOURCES Consolida

ted St

a

tement ofFinancilActivitiesforYearEnded31March2008 17 17 Notes 6&7 16 1 0 16 11 8 760 5 4 2,579 0 2 552 6 9 23 79 16 5,532 9 369 21,480 3,689 3

672 0 2,271 0 259 9 4 3,013 43 391 2,579 0 £’000 £’000 £’000 £’000 Unrestricted Restricted Unrestricted Restricted 98 7,394 1,004 0 1 275 83 2,755 115

,0 2,3 61 1 30,633 118 681 25,332 4,502 109,289 101,068 (3,678) 4,502 ,8 53 2 9 3,705 90 8,221 423 3,705 503 90 2,689 26,802 423 3,678 28 503 23,675 258 2,689 28 24,829 258 1,687 21,702 1,687 Public funds (126) 99 90 2 9 424 90 423 900 (989) 568 53 0 2,736 0 0 0 0

The notesonpages 21to35formpartoftheseaccounts. £11,139,000 (£1,382,000increasein2006-07). Museum’s ownStatementofFinancial Activitiesduring2007-08was (10,106) (12,605) 22,753 11,553 1,273 2,499 1,980 (397) (281) 465 397 14 71 164 0 6 10 62 0 (7) (27) (173) 0 0 0

4,114 3,785 ud 2007-08 Private Funds 290 126 329 329 77 0 0 0 0 0 0 0 0 0 0 0

509 423 33 75 86 27 0 0 0 1 0 0 0 0 4 0 0 0 0 2,736 0

103,806 27,620 25,169 92,671 11,135 12,225 (3,281) 2,271 2,579 £’000 5,650 8,497 2,953 1,456 1,980 3,281 Total (200) (126) (281) 465 995 362 672 72 2,233 522 25,101 2,488 68 £’000 Total 2,932 (353) 633 8,300 2,764 2,797 2,723 2,723 26,696 22,872 83

2006-07 92,671 91,280 11,808 29,685 26,915 (4,347) (3,076) 1,391 3,076 1,292 2,770 (266) 394 564 214 Financial Report Consolidated Balance Sheet as at 31 March 2008

Museum Consolidated 2008 2007 2008 2007 £’000 £’0