PRESENTATION BY VOORTREKKER AND NCOME MUSEUMS TO PC ON ARTS AND CULTURE, BY PROF Z L M KHUMALO, CHAIRPERSON OF VOORTREKKER AND NCOME MUSEUMS COUNCIL.

Madam Chair and Honourable members of the Portfolio Committee on Arts and Culture, thank you for inviting us to make this presentation.

The Museums continued to deliver their core functions in the 2006/07 financial year using the Public Finance Management Act and the Cultural Institutions Act. We are glad to report that we received an unqualified Audit Report for the third time in a row.

The Museums continued to safeguard South Africa’s tangible and intangible national heritage and a number of activities were undertaken by the museums as reported under 3.10 in our Annual Report for the period ending in March 2007. These key objectives delivered by the Museums also focused on research, exhibition, education, outreach and collection management. Our outreach also pay special attention to nation – building and social cohesion.

During this period new exhibitions on the ‘River Runs Through It …, Zulu Heritage, Indian, Coloured and Prince Imperial exhibitions were mounted. The research broadly look at South Africa’s past and various contributions played by different population groups in economic, political, social and religious development of the Country.

In addition to research carried for the above mentioned exhibition, research was done for the Voortrekker Complex, 1838 Boer – Zulu confrontations, multi – cultural herb garden and for temporary exhibitions on HIV/AIDS, 16 Days of activism, Human Rights, Women and Heritage days. The museums were also able to collect additional items to compliment their exhibitions and research. This led to an increase the number of our items and book collection.

The Museums also conducted skill enhancing workshops whereby local craft practioners were advised and skilled on products most preferred by Museum visitors and others.

Education programmes were given to visiting schools, groups and educators. Unguided and guided tours were also given to general visitors. During the year under review the Museums were visited by 49 425 persons. This is a big improvement from 2003 where the Museums recorded a visitorship of 15 115 persons. What may be the factor in this improvement is the fact that after March 2003 the Museums intensified their efforts to diversify and increase their audience.

The Museums continued to interact with the Department of Arts and Culture (DAC) and Department of Public Works (DPW) to finalise Capital Works projects planned for Ncome and Voortrekker Museums. Phase II for Ncome Museum capital works was started in January 2007 and this is scheduled to be completed in 2008. The Voortrekker Museum needs infrastructure facilities for physically challenged people and has been continuously challenged by them. They argue that they are denied access by the Museum to public galleries and that our infrastructure is not “disable friendly”. Adapting the Museums building to be user friendly to physically challenged persons will enable them to comply with national guidelines regarding access to public institutions for the physically challenged and visually impaired people.

The new Council is also addressing the question of performance management and the system is about to be finalised. The performance management process was started by our predecessors, i.e. 2003 – 2006 Council.

As the new Council we understand the importance of a sound performance management system and sound corporate governance. However, at its first meeting the Audit Committee indicated that Human Resource costs (personnel expenditure) constitute a biggest part of the overall budget. On the other hand, the HR Committee has noted that it is becoming increasingly difficult for the Museum to match staff salaries to Department of Public Service and Administration (DPSA). The result is that the Museum staff is under-paid compared to the Public Sector and as a public entity the Museums would continue to lose experienced staff to other sectors.

Attached herewith is a copy of our Annual Financial Statements and the Auditor – General report. In conclusion, Madam Chair, we thank the members of the Committee for having shown interest in us and we hope that the Museums will continue to deliver quality services to South Africans and in terms of their mandate in documenting, preserving, collecting, researching and exhibiting about our country’s tangible and intangible cultural heritage.

Voortrekker Museum
(includes Ncome Museum information)

Annual financial statements

for the year ended 31 March 2007

Annual financial statements
for the year ended 31 March 2007

Contents

Approval of the annual financial statements 1

Council members 2

Statement of financial position 3

Statement of financial performance 4-5

Statement of changes in net assets 6

Cash flow statement 7

Notes to the cash flow statement 8

Notes to the annual financial statements 9-18

Approval of the annual financial statements

The annual financial statements for the year ended 31 March 2007, set out on pages three to eighteen, were approved by the Council on 31 May 2007 and are signed on its behalf by:

Council members
for the year ended 31 March 2007

Director for the period

Mr B Ndhlovu

Council members for the period

Professor Zamokwakhe Khumalo University of Zululand, Private Bag X1001, Kwa Dlangezwa, 3886
Telephone: (035) 9026582

Mr Bheki Linda 13 Pieter van Den, Glencoe, 2930
Telephone: (072) 1752503

Mr Bruce Hopwood PO Box 52, Mthunzini, 3867
Telephone: (035) 3401531

Mr Mlungisi Ngubane 77 Aliwal Street, Durban, 4001
Telephone: 083 2594981

Professor Patrick Ngubane Private Bag X9012, Scottsville, Pietermaritzburg, 3200
Telephone: (033) 2605972

Mr Albert van Jaarsveld PO Box 292, Mthunzini, 3867
Telephone: (035) 9026364

General Gert Opperman PO Box 1514, Groenkloef, 0027
Telephone: (012) 3266770

Mr Pieter Nel Private Bag X9012, Pietermaritzburg, 3200
Telephone: (033) 3424712

Audit committee

Mr AL Norman
Ms B Mnganga
Mr B Linda
Gen G Opperman
Mr M Pillay

Bankers

ABSA Bank

Auditors

Auditor General

Registered office

P O Box 998, Pietermaritzburg, 3200

Voortrekker Museum Building

351 Langalibalele Street, Pietermaritzburg, 3201

Statement of financial position
at 31 March 2007

	Note	2007	2006
		R	R
Assets
Non-current assets
Plant, furniture and equipment and intangibles	3	1 459 866	1 118 877
Intangibles	3	3 826	12 039
		1 463 692	1 130 916
Current assets
Accounts receivable	4	22 552	15 056
Inventory on hand	5	43 806	50 253
Investments	6	2 943 699	2 312 049
Bank and cash	7	293 235	1 143 886
		3 303 292	3 521 244
Total assets		4 766 984	4 652 160
Funds and liabilities
Funds and reserves
Fair value reserve – investments		628 366	438 952
Accumulated surplus		2 463 715	2 211 021
		3 092 081	2 649 973
Non-current liabilities
Post-retirement benefit obligations	8	183 515	217 137
Current liabilities
Accounts payable	9	104 235	153 838
Leave pay provision	10	373 674	344 973
Deferred income – transformation grants	11	1 013 479	1 286 239
		1 491 388	1 785 050
Total funds and liabilities		4 766 984	4 652 160

Statement of financial performance
for the year ended 31 March 2007

	Note	2007	2006
		R	R
Revenue	12	23 641	27 042
Other income
Government and other grants	13	7 296 760	6 383 599
Income from investments		100 708	65 717
Donations received		3 894	3 806
Rent received		18 883	19 104
Entrance fees		12 223	5 610
Parking income		88 085	64 432
Other income		7 132	4 725
Discount received for cash		551	147
Insurance claims		-	57 041
Revaluation of plant, furniture and equipment and intangibles		78 424	‑
Total income		7 630 301	6 631 223
Expenditure		7 377 607	6 164 526
Operating expenditure (refer page 5)		7 014 865	5 859 241
Cost-of-sales		35 180	27 071
Depreciation		317 053	200 108
Inventory valuation		1 535	(1 214)
Loss on sale of fixed asset		13 895	-
Provision for leave pay		28 701	(137 817)
Provision for retirement benefit obligations		(33 622)	217 137
Surplus for the year		252 694	466 697

Statement of financial performance (continued)
for the year ended 31 March 2007

	2007	2006
	R	R
Expenditure
Accounting fees	6 563	27 359
Advertising	47 587	47 318
Auditors remuneration	76 099	60 083
Advisory and admin fees	5 234	4 569
Audit committee expenses	32 297	62 532
Bank charges	17 751	14 583
Bad debts	2 570	-
Cleaning materials	13 119	12 292
Computer expenses	43 443	29 202
Casual labour	94 620	127 876
Conferences	18 767	8 068
Discount allowed for cash	-	(275)
Donations	7 000	-
Educational facilities	48 242	19 255
Entertainment	12 305	21 442
Equipment storage	1 061	41
Equipment expenses	5 769	11 599
Exhibition openings	2 857	626
Functions (Living Heritage)	137 228	103 780
Furniture	13 811	4 068
Financial assistance	3 699	4 140
Honorarium	31 587	49 529
Human resource consultation	82 409	24 975
Insurance	83 521	72 487
Interior décor and display	40 885	10 125
Internal audit function	74 101	114 817
Legal expenses	6 183	5 859
Library books	5 502	5 927
Lights and water	52 281	61 372
Motor vehicle expenses	197 401	164 612
Museum items purchased	2 906	1 152
Photocopier rental	135 249	125 806
Photographic material	6 793	1 991
Postage	2 177	3 921
Printing and stationery	54 477	38 953
RSC – levies	1 979	7 296
Repairs and maintenance	71 634	53 064
Rental equipment	29 492	4 882
Security	129 620	112 579
Staff expenditure	4 972 502	4 055 509
Staff training	21 423	14 688
Subscriptions	12 679	10 910
Subsistence allowance	11 293	5 739
Sundries	1 037	1 036
Signage	13 669	1 972
Telephone and fax (less recoveries)	95 389	125 487
Tools	441	874
Transformation budget	203 495	119 961
Travel and accommodation	73 944	95 721
Uniforms	10 774	9 439
	7 014 865	5 859 241

Statement of changes in net assets
for the year ended 31 March 2007

	Accumulated surplus	Fair value reserve - investments	Total
	R	R	R
Balance at 1 April 2005	1 744 324	117 269	1 861 593
Appreciation in the market value of investments	‑	321 683	321 683
Surplus for the year	466 697	‑	466 697
Balance at 31 March 2006	2 211 021	438 952	2 649 973
Balance at 1 April 2006	2 211 021	438 952	2 649 973
Appreciation in the market value of investments	‑	189 414	189 414
Surplus for the year	252 694	‑	252 694
Balance at 31 March 2007	2 463 715	628 366	3 092 081

Cash flow statement
for the year ended 31 March 2007

	Note	2007	2006
		R	R
Cash flow from operating activities
Cash receipts from customers		7 443 673	6 594 892
Cash paid to suppliers and employees		(7 367 496)	(5 316 385)
Cash generated from operations	A	76 177	1 278 507
Income from investments		100 708	65 717
		176 885	1 344 224
Cash flow from investing activities
Capital expenditure		(586 770)	(789 100)
Proceeds from sale of property, furniture and equipment and intangibles		1 469	‑
Increase in investments		(442 235)	(861 185)
		(1 027 536)	(1 650 285)
Decrease in cash and cash equivalents		(850 651)	(306 061)
Cash and cash equivalents at beginning of year		1 143 886	1 449 947
Cash and cash equivalents at end of year	B	293 235	1 143 886

Notes to the cash flow statement
for the year ended 31 March 2007

		2007	2006
		R	R
A	Cash generated from operations
	Surplus for the year	252 694	466 697
	(Decrease)/add:
	Income from investments	(100 708)	(65 717)
	Loss on disposal of property, furniture and equipment and intangibles	13 895	-
	Expenditure not involving a cash outflow
	Provision for leave pay	28 701	(137 817)
	Depreciation	317 053	200 108
	Revaluation of plant, furniture and equipment and intangibles	(78 424)	‑
	Provision for retirement benefit obligations	(33 622)	217 137
	Deferred income	(272 760)	484 401
	Grants received 2006/2007	‑	1 000 000
	Expenditure 2006/2007	(272 760)	(515 599)
	Changes in working capital	(50 652)	113 698
	Accounts receivable	(7 496)	29 386
	Inventory	6 447	4 705
	Accounts payable	(49 603)	79 607
	Cash generated from operations	76 177	1 278 507
B	Cash and cash equivalents at 31 March 2007
	Cash at bank – Voortrekker	261 214	1 065 342
	Cash at bank – Ncome	29 661	76 744
	Cash at bank – Ncome savings account	560	‑
	Cash on hand	1 800	1 800
		293 235	1 143 886

Notes to the annual financial statements
for the year ended 31 March 2007

1

Accounting policies

1.1

Basis of preparation

The financial statements have been prepared in accordance with the South African Statements of Generally Accepted Accounting Practices (GAAP) including any interpretations of such Statements issued by the Accounting Practices Board, with the prescribed Standards of Generally Recognised Accounting Practices (GRAP) issued by the Accounting Standards Board replacing the equivalent GAAP Statement as follows:

Standard of GRAP	Replaced Statement of GAAP
GRAP1:Presentation of financial statements	AC101: Presentation of financial statements
GRAP2: Cash flow statements	AC118: Cash flow statements
GRAP3: Accounting policies, changes in accounting estimates and errors	AC103: Accounting policies, changes in accounting estimates and errors

Currently the recognition and measurement principles in the above GRAP and GAAP Statements do not differ or result in material differences in items presented and disclosed in the financial statements. The implementation of GRAP 1, 2 & 3 has resulted in the following changes in the presentation of the financial statements:

1. Terminology differences:

Standard of GRAP	Replaced Statement of GAAP
Statement of financial performance	Income statement
Statement of financial position	Balance sheet
Statement of net changes in net assets	Statement of changes in equity
Net assets	Equity
Surplus / deficit for the period	Profit / loss for the period
Accumulated surplus / deficit	Retained earnings
Contributions from owners	Share capital
Distribution to owners	Dividends

2. The cash flow statement can only be prepared in accordance with the direct method.

3. Specific information has been presented separately on the statement of financial position such as:

a) Receivables from non-exchange transactions, including taxes and transfers;

b) Taxes and transfers payable;

c) Trade and other payables from non-exchange transactions.

4. The amount and nature of any restrictions on cash balances is required.

Paragraph 11 – 15 of GRAP 1 has not been implemented due to the fact that the budget reporting standard is in the process of being developed by the international and local standard setters and the international standard is not effective for this financial year. Although the inclusion of budget information would enhance the usefulness of the financial statements, non-disclosure will not affect fair presentation.

Notes to the annual financial statements (continued)
for the year ended 31 March 2007

1	Accounting policies (continued)
1.2	Plant, furniture and equipment and intangibles
1.2.1	Fixed Assets are stated at historical cost less accumulated depreciation. Depreciation on fixed assets is written off on a straight line method using rates deemed to be suitable for writing off the assets over their expected economic life.
1.2.2	Depreciation
	The depreciation rates used for the different asset classes are as follows: Equipment 17 % Computer equipment 33 % Furniture and fittings 17 % Motor Vehicles: Cars: 25 % Bakkies 20 % Computer software 50 %
1.3	Inventory
1.3.1	Inventory is valued at the lower of cost or estimated net realisable value, using first-in, first-out method of valuation.
1.4	Investments
1.4.1	Investments with banks and institutions including money market are reflected at cost including interest capitalised to the investment.
1.4.2	In the case of the investment in Collective Investments the book value of the investment at 31 March 2007 represents the market value of the investment as at that date. The net appreciation/loss on the investment over the investment period is reflected on the Fair Value Reserve – Investments.
1.5	Government Grants
	Government grants are not recognised until there is reasonable assurance that the Museum will comply with the conditions attaching to them and the grants will be received. Government grants whose primary condition is that the Museum should purchase, construct or otherwise acquire non-current assets are recognised as deferred income in the balance sheet and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets. Other government grants are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Museum with no future related costs are recognised in profit or loss in the period in which they become receivable.

Notes to the annual financial statements (continued)
for the year ended 31 March 2007

1	Accounting policies (continued)
1.6	Revenue recognition
	Revenue is recognised when it is probable that future economic benefits will flow to the enterprise and these benefits can be measured reliably.
1.7	Interest
	Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.
1.8	Provisions
	Provisions are recognised where the institution has a present legal or constructive obligation as result of 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.
1.9	Retirement benefits
	The Museum operates a defined benefit plan together with a defined contribution plan, the assets of which are generally held in separate trustee – administered funds. The plans are funded by payments from the entity and members. Payments to these retirement plans are charged to the statement of financial performance in the year to which they relate.
1.10	Critical accounting judgements and key sources of estimation uncertainty
	In the application of the Museum’s accounting policies, which are described in note 1, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing 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 periods if the revision affects both current and future periods.
	Critical judgments in applying accounting policies
	The following are the critical judgements, apart from those involving estimations (see below), that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognised in financial statements.
	Revenue recognition
	In making its judgement, management considered the detailed criteria for the recognition of revenue from the sale of goods set out in IAS 18 Revenue and, in particular, whether the Museum had transferred to the buyer the significant risks and rewards of ownership of the goods.

Notes to the annual financial statements (continued)
for the year ended 31 March 2007

1	Accounting policies (continued)
1.10	Critical accounting judgements and key sources of estimation uncertainty (continued)
	Key sources of estimation uncertainty
	The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
	Useful lives of property, plant and equipment
	As described in note 1.2, the Museum reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. During the financial year, the directors determined that the useful life of certain items of equipment should be shortened, due to developments in technology.

2	Listed investments
	Listed investments are accounted for as available-for-sale financial instruments, recorded at fair value with the fair value adjustment held as a non-distributable reserve.

Notes to the annual financial statements (continued)
for the year ended 31 March 2007

3	Plant, furniture and equipment and intangibles

	Equipment	Computer equipment	Intangibles (software)	Furniture & fittings	Motor vehicle	Total
	R	R		R	R	R
Year ended 31 March 2007
Cost:	1 350 438	199 969	23 859	142 240	374 648	2 091 154
Voortrekker	969 809	155 802	21 721	132 226	105 326	1 384 884
Ncome	380 629	44 167	2 138	10 014	269 322	706 270
Accumulated depreciation:	377 957	121 812	20 131	65 088	120 898	705 886
Voortrekker	211 413	93 479	17 994	59 841	43 251	425 978
Ncome	166 544	28 333	2 137	5 247	77 647	279 908
Subtotal	972 481	78 157	3 728	77 152	253 750	1 385 268
Revaluation of plant, furniture and equipment and intangibles
Voortrekker	2 508	2 080	49	10 297	36 525	51 459
Ncome	(10 529)	(838)	49	1 218	37 065	26 965
	(8 021)	1 242	98	11 515	73 590	78 424
Net carrying amount at 31 March 2007	964 460	79 399	3 826	88 667	327 340	1 463 692
Opening net carrying amount at 31 March 2006	834 733	40 877	12 039	49 071	194 196	1 130 916
Additions 2006/2007:
Voortrekker	336 847	50 322	1 925	48 848	‑	437 942
Ncome	5 793	20 135	‑	‑	122 900	148 828
	342 640	70 457	1 925	48 848	122 900	586 770
Assets scrapped:
Voortrekker	(1)	(4)	‑	(2)	(1)	(8)
Ncome	(15 277)	‑	‑	(80)	‑	(15 357)
	(15 278)	(4)	‑	(82)	(1)	(15 365)
Depreciation 2006/2007:
Voortrekker	(127 126)	(25 488)	(10 236)	(19 174)	(23 605)	(205 629)
Ncome	(62 488)	(7 685)	‑	(1 511)	(39 740)	(111 424)
	(189 614)	(33 173)	(10 236)	(20 685)	(63 345)	(317 053)
Revaluation of plant, furniture and equipment and intangibles
Voortrekker	2 508	2 080	49	10 297	36 525	51 459
Ncome	(10 529)	(838)	49	1 218	37 065	26 965
	(8 021)	1 242	98	11 515	73 590	78 424
Net carrying amount at 31 March 2007	964 460	79 399	3 826	88 667	327 340	1 463 692

Notes to the annual financial statements (continued)
for the year ended 31 March 2007

		2007	2006
		R	R
4	Accounts receivable
	Sundry debtors:
	Ncome	2	2 329
	Voortrekker	22 550	12 727
		22 552	15 056
5	Inventory on hand
	Comprises goods for resale
	Voortrekker Museum	34 183	36 651
	Ncome Museum	9 623	13 602
		43 806	50 253
6	Investments
	Nedbank Market Trader	233 798	78 106
	ABSA 32 day notice deposit account	129 489	121 733
	ABSA - call account Voortrekker	1 040 055	809 534
	Collective Investments:
	Sanlam Sinking Fund	562 858	452 768
	Sanlam Money Market	143 180	135 432
	Sanlam Innofin Money Market	143 301	135 462
	Standard Bank Property Income Fund	691 018	579 014
		2 943 699	2 312 049
	Refer to note 1.4 and note 2.
7	Bank and cash
	Petty cash	1 800	1 800
	ABSA – Voortrekker	261 214	1 065 342
	ABSA – Ncome current account	29 661	76 744
	ABSA – Ncome savings account	560	‑
		293 235	1 143 886

Notes to the annual financial statements (continued)
for the year ended 31 March 2007

8	Post retirement obligations
8.1	Pension Fund

	No of employees	Employers contribution	Employees contribution	Monetary value
Defined Contribution Scheme	13	13.50 %	7.50 %	223 010
Defined Benefits Scheme	24	24.60 %	7.50 %	837 568

The Museum’s Pension Fund is administered by a board of trustees together with ABSA Consultants and Actuaries who are the fund’s advisers. The Museums Pension Fund was valued by the Actuaries as at 01 April 2005. The Museums Pension Fund was funded to the extent of 94.8%. As the April 2006 annual valuation report is not yet finalised the funding level used to calculate the liability per employer was according to the 1 April 2005 valuation results. The actuary of the Museums’ Pension and Museums’ Provident Funds calculated the actuarial reserves per participating institution as at 1 April 2006. The unfunded liability applicable to the Voortrekker Museum as at 01 April 2006 amounted to R183 515 (2006 : R217 137).

This liability is being funded by increased contributions made by the employer, which according to the Actuaries will be sufficient to expunge the shortfall over the next eight years. The total unfunded liability has been charged to the statement of financial performance with a corresponding credit to the statement of financial position. The fund is subject to the Pensions Fund Act, 1956, which requires an actuarial valuation to be made every three years.

The amount of the defined benefit liability arising from the Museum’s obligations in respect of its deferred benefit retirement scheme is as follows:

Present value of defined benefit obligations	R 183 515
Fair value of scheme assets	R 122 340
Over/(underfunded) position	R 61 175
Funding ratio	94,8%
Key assumptions used:
Discount rate	7%
Expected return on scheme assets	10%
Expected rate of salary increases	6%
Future pension increases	5%

8.2 Post retirement medical benefits

No written policy for post retirement medical benefits exists, although the Museum is contributing 66 % of the total medical cost for each retired employee to a maximum of R1 500 per month, subject to review as it deems necessary. There is no contractual liability to pay these medical costs; hence a provision cannot be determined. The Museum will be looking at the implications of these benefits.

Notes to the annual financial statements (continued)
for the year ended 31 March 2007

				2007	2006
				R	R
9	Accounts payable
	Voortrekker
	Accounts payable - operations			78 331	114 020
	Audit committee members fees			2 500	-
	Internal audit			‑	11 575
	Temporary staff costs			‑	2 073
	Ncome
	Accounts payable - operations			18 667	20 383
	Internal audit			‑	5 787
	Salary control account			4 737	‑
				104 235	153 838
10	Leave pay provision
	Opening balance			344 973	482 790
	Movement for the year			29 000	(137 817)
	Closing balance			373 674	344 973
11	Deferred income – transformation grants
		Ncome R	Voortrekker R		Total R
	Unexpended funds at 31 March 2005	147 404		654 434	801 838
	Received 2005/2006	200 000		800 000	1 000 000
		347 404		1 454 434	1 801 838
	Expended 2005/2006	68 448		447 151	515 599
	Unexpended funds at 31 March 2006	278 956		1 007 283	1 286 239
	Unexpended funds at 01 April 2006	278 956		1 007 283	1 286 239
	Received 2006/2007	‑		‑	‑
		278 956		1 007 283	1 286 239
	Expended 2006/2007	54 153		218 607	272 760
	Unexpended funds at 31 March 2007	224 803		788 676	1 013 479

Notes to the annual financial statements (continued)
for the year ended 31 March 2007

			2007	2006
			R	R
12		Museum shop – trading account
		Sales	23 641	27 042
		Opening inventory	50 253	54 957
		Cost of sales / Purchases	28 733	22 367
		Closing inventory	(43 806)	(50 253)
		Cost of sales	35 180	27 071
		Trading loss	(11 539)	(29)
13		Government and other grants
		Operating grant 2006/2007	7 014 000	5 868 000
		Provincial grant (Dept. of Arts, Culture and Tourism)	10 000	‑
		Transformation Grant Funds expended 2006/2007 (Refer note 10)	272 760	515 599
			7 296 760	6 383 599
14	Gross remuneration for Council members
	Mrs BC Ngcana (term expired)		2 026	4 052
	Mr Albert Jaarsveld		5 065	7 597
	Gen GN Opperman		3 039	5 571
	Prof LF Mathenjwa (term expired)		8 811	17 622
	Prof P Ngulube		1 519	-
	Dr MSE Vawda (term expired)		3 039	6 077
	Mr B Hopwood		1 013	-
	Prof ZLM Khumalo		7 075	8 610
			31 587	49 529
15	Audit Committee members
	Mr Alan Norman		6 000	15 000
	Ms Busi Mnganga		3 000	4 500
	Mr Samesh Naidoo (resigned)		‑	3 000
	Mr M Pillay		4 500	3 000
			13 500	25 500

Notes to the annual financial statements (continued)
for the year ended 31 March 2007

		2007	2006
		R	R
16	Directors’ emoluments
	Bongani Ndhlovu
	Basic salary	283 378	268 669
	Pension	75 520	71 600
	UIF	1 378	1 188
	Medical aid	13 994	14 565
	Car allowance	85 992	85 992
	Housing subsidy	10 524	10 524
	Bonuses	23 899	22 761
		494 685	475 299
	Henriette Ridley
	Basic salary	210 879	198 105
	Pension	56 199	52 795
	UIF	1 378	1 188
	Medical aid	14 220	15 266
	Housing subsidy	10 524	10 524
	Bonuses	17 836	16 783
		311 036	294 661
	Sinothi Thabethe
	Basic salary	223 991	204 101
	Pension	59 693	54 393
	UIF	1 378	1 188
	Medical aid	8 943	7 880
	Bonuses	19 124	17 291
		313 129	284 853
17	Operating lease agreements
	Museum as lessee
	At the reporting date the Museum had outstanding commitments under non-cancellable operating leases which fall due as follows:
	Up to 1 year	100 716
	1 to 5 years	68 021
	Total	R168 737

REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION OF THE VOORTEKKER MUSEUM FOR THE YEAR ENDED 31 MARCH 2007

REPORT ON THE FINANCIAL STATEMENTS

Introduction

1... I have audited the accompanying financial statements of the Voortrekker Museum which comprise the statement of financial position as at 31 March 2007, statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 3 to 17.

Responsibility of the accounting authority for the financial statements

2... The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance with South African Statements of Generally Accepted Accounting Practice (GAAP), including any interpretations of such Statements issued by the Accounting Practices Board, with the effective Standards of Generally Recognised Accounting Practice (GRAP) issued by the Accounting Standards Board, and in the manner required by the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA). This responsibility includes:

§ designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error

§ selecting and applying appropriate accounting policies

§ making accounting estimates that are reasonable in the circumstances.

Responsibility of the Auditor-General

3... As required by section 188 of the Constitution of the Republic of South Africa, 1996, read with section 4 of the Public Audit Act, 2004 (Act No. 25 of 2004), my responsibility is to express an opinion on these financial statements based on my audit.

4... I conducted my audit in accordance with International Standards on Auditing and General Notices 645 and 647 of 2007, issued in Government Gazette No. 29919 of 25 May 2007. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

5... An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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.

6... An audit also includes evaluating the:

· appropriateness of accounting policies used

· reasonableness of accounting estimates made by management

· overall presentation of the financial statements.

7... I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Basis of accounting

8... The museum’s policy is to prepare financial statements on the basis of accounting determined by the National Treasury, as set out in note 1 to the financial statements.

Opinion

9. In my opinion these financial statements present fairly, in all material respects, the financial position of the Voortrekker Museum as at 31 March 2007 and of its financial performance and cash flows for the year then ended, in accordance with the basis of accounting determined by National Treasury of South Africa, as set out in paragraph 8 and in the manner required by the PFMA.

OTHER MATTERS

I draw your attention to the following matters which are ancillary to my responsibilities on the audit of the financial statements:

10.. Material correction made to the financial statements submitted for audit

The following material corrections were made to the financial statements:

· As a result of the review of residual values and useful lives of property, plant and equipment to comply with IAS16, accumulated depreciation was debited in the amount of R78 000 and current year depreciation decreased by the same amount.

OTHER REPORTING RESPONSIBILITIES

Reporting on performance Information

11.. I have audited the performance information as set out on pages 16 to 45.

Responsibility of the accounting authority

12.. The accounting authority has additional responsibilities as required by section 40(3)(a) of the PFMA to ensure that the annual report and audited financial statements fairly present the performance against predetermined objectives of the Voortrekker Museum.

Responsibility of the Auditor-General

13.. I conducted my engagement in accordance with section 13 of the Public Audit Act, 2004 (Act No. 25 of 2004) read with General Notice 646 of 2007, issued in Government Gazette No. 29919 of 25 May 2007.

14.. In terms of the foregoing, my engagement included performing procedures of an audit nature to obtain sufficient appropriate audit evidence about the performance information and related systems, processes and procedures. The procedures selected depend on the auditor’s judgement.

15.. I believe that the evidence I have obtained is sufficient and appropriate to provide a basis for the audit finds reported below.

Audit findings

16.. No audit findings.

APPRECIATION

17. The assistance rendered by the staff of the Voortrekker Museum during the audit is sincerely appreciated.

V Maharaj for Auditor-General

Pietermaritzburg

31 July 2007