25861 annual report 03'04

NELSON MANDELA NATIONAL MUSEUM

Annual Report

CONTENTS Page

Vision, Mission and Values 2

Historical Background 3

Nelson Mandela National Museum Council 4

Nelson Mandela National Museum Staff Members 4

Message from the Chairperson 5

Executive Annual Report 6 - 16

Panorama Pictures 17 - 20

Annual Financial Statements 21 - 35

1.NELSON MANDELA NATIONAL MUSEUM

Annual Report 2003/2004

OUR VISION

To be a living museum

that embraces development and is

a fi tting tribute to Nelson R Mandela that learns

and shares his story ...our story.

OUR MISSION

Exercise stewardship and care over heritage resources

linked to the Neslson R Mandela legacy thus:

• impacting development through education, tourism and culture

• sharing and learning his story our story

• perpetuating and conserving his legacy in context

• inspiring people


OUR VALUES

• Integrity

• Inspiration

• Learning and Development

• Sustainability and Viability

The museum corporate priorities are: - Building a sustainable and well-governed institution. - Develop, retain, attract committed competent knowledgeable people. - Enagage stakeholders meaningfully, profi le the institution, grow and diversify visitor numbers, mobilise resources and generate income. - Create a leading place for learning on Nelson R Mandela in context. - Develop and deliver memorable quality experiences, services and products through sustainable enterprises. - Implement and deliver on infrastructure programs.




HISTORICAL BACKGROUND

3.

After his release from political imprisonment, Nelson Mandela, as the fi rst democratically elected President of South Africa, received a signifi cant number of gifts from the South African and international community in recognition and appreciation of the role he played in the struggle for peace, freedom and democracy in South Africa and the world. In accepting the gifts he indicated that he did so on behalf of all the people of South Africa and further expressed the wish that the gifts be displayed for the benefi t and appreciation of the Nation at or near his home village of Qunu in the Eastern Cape. The then Department of Arts, Culture, Science and Technology, as the engine of national cultural heritage development, was tasked with the responsibility of establishing this museum.

The initial idea of building one big museum at Qunu was communicated to communities in 1996. In a thorough consultative process the concept was later changed in favour of a tri-campus museum distributed across Mvezo, Qunu and Umtata respectively, thereby spreading the benefi cial impact of the museum. The museum was based on telling the story of Madiba in his social, spatial and political context, with his autobiography, Long Walk to Freedom as a starting point. The fi rst phase of the museum was opened to the public in February 2000. The full complex, as envisaged, will consist of the museum exhibitions and collections of gifts in the Bunga building in Umtata; a heritage site and interpretation facility at Madiba’s birthplace at Mvezo; Qunu Youth and Heritage Centre (currently under construction), and the landscape of his childhood and fi rst school days.

2003 - 2004 fi nancial year marked the fourth year of the museum’s sustained growth and improved service delivery with a new, even more committed council appointed, visitor numbers successfully diversifi ed and trebled, dynamic memorable programming in place, organizing and hosting the fi rst national iintonga tournament, improved governance and accountability measures.



Council Members & Staff of the


COUNCIL MEMBERS: (Not standing in order of list below)

Mr Vuyani Jarana (Chairman) Mr Mthunzi Ndimande Mr Garth Bennyworth Ms Andiswa VikilahleMr Vuyani Booi Mr Ayanda Wakaba Adv Patekile Holomisa Mr Denver WebbAdv Loyiso KB Mpumlwana Mr Temba Zakuza, CIA, (CA.SA)

STAFF: (Not standing in order of list below)

Khwezi kaMpumlwana (Chief Executive Offi cer)Nambita Kasi (Executive Assistant to CEO)Ncediwe Ndima (Secretary )Mfuneko Mdludlu (Chief Financial Offi cer)André Kotze (Security, Logistics & Facilities Specialist)Nokuzola Tetani (Co-ordinator Tours & Programs) Pumeza Mandela (Supervisor: Tour guides)Pumlani Ngcebetshana (Tour guide)Simpiwe Mfuduka (Tour guide)Nolubabalo Ngxekana (Tour guide)Nozodwa Matikinca (Tour guide)Tembakazi Mvitshane (Tour guide)Zibekile Mrebelele (Tour guide)Mtshutshisi Tyalakhulu (Mvezo caretaker & tour guide)Andiswa Nangu (General Assistant)



Message from the Chairperson of the Council

“Out of the experience of an extraordinary human disaster that lasted too long, must be born a society of which all humanity will be proud.”

- Nelson Mandela, Long Walk to Freedom (1994), p.744.

The Hon. Dr P.Z. Jordan (MP), Minister for Arts and Culture:

It is with great pleasure that the Council of the Nelson Mandela National Museum presents the institution’s Annual Report for the period ended March 31, 2004.

I would like to welcome the new Minister and deputy minister of arts and culture, Dr Pallo Jordan and Ms Mantombazana Botha respectively. The Nelson Mandela National Museum Council is looking forward to a good working relationship with you as we tackle the next phase of institutional development for the Museum. The fi rst three years of establishment the council focused on building organizational capacity as well as policy framework required to meet the mandate of the Nelson Mandela National Museum. The 2003/2004 fi scal year has seen the further growth and development of the Nelson Mandela National Museum in terms of both programming and infrastructure roll out. The key focus areas for the next three years include new audience development, fi nalisation of organisational development process, income generation as well as consolidation of stakeholder engagement strategies.The past year has seen our stakeholder engagement strategy creating critical linkages and dialogue with key partners, amongst such partners are the two Mandela sister institutions, the Nelson Mandela Foundation and the Children’s Fund, relations have improved signifi cantly and possibilities of joint programming are being explored at executive level. We remain committed to discussions with the provincial government to ensure that the Nelson Mandela National Museum is part of the growth strategy and could be used as one of anchor projects for Mthatha’s renewal. We remain confi dent of the contribution the institution can make towards tourism in the area.To Nelson MandelaOn behalf of the council I would like to salute you on your 85th birthday, may you have many more to come. We greatly appreciate the opportunity you have constantly provided for us to consult with you on some of the processes of building the Museum, these included, presentation of the concept whilst you were still the president, the presentation of plans for the youth and heritage centre as part of consultative process and presentation of birthday messages given by various stakeholders of the museum. Your patronage to the museum is highly appreciated. To the inaugural council members:I would like to pay tribute to the inaugural council members of the Nelson Mandela National Museum whose term ended in 2003. We appreciate their invaluable input, wisdom and contributions they made during the critical stage of the establishment of the museum as an institution. Their input shall not be lost to the institution as we invite them to join the League of Friends of the Nelson Mandela National Museum. To the Staff of the Nelson Mandela national museum:The council observes with great sense of pride and appreciation the commitment and diligence in which the executive and staff of the museum execute their duties. We are mindful of the resource limitations within which you operate and we are committed to creating an enabling environment in which your talent, creativity and your passion for the work of the Nelson Mandela National Museum will continue to make the institution an example of service delivery and batho pele principles.To the Local Community both rural and UrbanThe council views the Nelson Mandela National Museum as being more than just museum.We continue to explore ways and means in which our policy position could ensure that the Museum is a fi tting tribute to Madiba. Collaboration with partners and local government lies at the centre of our policy positions and strategy for further development. We see the Nelson Mandela National Museum as a potential anchor development towards Mthatha’s renewal. Current discussions on the Nelson Mandela precinct development are positive indicators of such collaborative strategy. The council remains committed to community participation and empowerment in every project of the Nelson Mandela National Museum. Community participation in the construction of the Nelson Mandela Youth and Heritage Centre (Qunu node of the Museum) is a living example of this commitment. We will continue to engage communities both at Qunu and Mvezo for possible spin-offs from both our programs and projects. Our procurement and programming practices illustrate the above.

Finally, the challenge of building an organisation which will be a fi tting tribute to the legacy of Nelson Mandela is bigger than any group of individuals can handle.It is a national duty that requires contribution and commitment from all South Africans. Whilst resource limitations continue to be an impediment in steering the institution to greater heights, the council remains committed to looking at innovative ways of addressing the key challenges.

Vuyani Jarana Chairperson NELSON MANDELA NATIONAL MUSEUM COUNCIL



Executive Report

for the year ended 31 March 2004

1. OVERVIEW

2003-2004 was an eventful year, a period of anticipation, growth and excitement. An exciting beginning to the celebrations of 10 years of democracy, an overwhelming consensus on a government program for a partnership against poverty, for job creation, social inclusion, nation building, economic renewal and African Rennaisance. These gave a clarion call to all public institutions and government clusters to implement a clear program of action. The museum is part of this big contract and has heartened to this call as will be seen in its narrative of program delivery and lessons learned.

All of these combined with the appointment of a dynamic committed new council enabled the museum to reach new heights in pursuing its mandate of becoming a living museum, that embraces development and is a fi tting tribute to Nelson Mandela. Major resource limitations have challenged the museum in a number of ways.

• The Nelson Mandela National Museum was established in February 2000. It has turned a new page as it approaches its fi fth anniversary. The museum is distributed across 3 campuses Qunu, Mvezo and Bunga building in Umtata. The institutional profi le of the museum is improving, with growing media coverage and accessibility leading to the museum becoming a key destination for school groups and tourists alike, with average visitor numbers having trebled from 1500 per month to 4500 per month

• The limited staff numbers available to the museum have delivered beyond expectation so far. The museum continues to operate within a legacy of fi nancial and human resource limitations as a consequence of grant allocation that has not kept track of the evolution of the institution in line with its mandate. Arising from the afore going fi scal situation key appointments could not be made, programs befi tting of a truly national institution remain pending, signifi cant best practice operations are only in planning stages.

• Major progress has been achieved on accountability and governance issues, with fully functioning council committees, an Audit Committee in the prescribed manner, risk management and fraud prevention planning being completed, a strategic plan in place and timely reporting in progress.

• The museum has been proceeding well with its stakeholder engagement and partnerships plan with a number of victories seen in the implementation of joint programs with provincial and local government departments and institutions, NGOs and with Robben Island Museum.

• The museum had the privilege of making a presentation to the Provincial Government’s social cluster to discuss partnering in making the Eastern Cape a compelling province to live, work and invest in.

• The museum is discussing with the relevant local government developmental organs its input to urban renewal. • Youth programs that promote social cohesion, understanding of human rights culture, and moral regeneration

were put in place. • Public programs that showcase and promote cultural creativity and living heritage conservation were put in

place in the year under review, as a result of work in this regard new groups have arisen on art forms that were no longer prevalent.

• Construction of the Qunu: Nelson Mandela Youth and Heritage centre started creating close to 100 local jobs for the 18 month period of the construction envisaged, with specifi c training for beyond the construction. A number of operational, service delivery and quality control challenges have been met in this regard resulting in delays in completion of this project and suffering for the project benefi ciaries. These took a longer time to address than expected. The change of contractor and project manager bring new hope.

• The coming fi nancial year will see the commencement of the Bunga Building upgrade and possible work on Mvezo.



We keenly anticipate the opportunities and challenges of the period ahead. Government has received an overwhelming mandate to implement a clear program of action many priorities of which we are able to embrace and continue to do practical work on. Growing and attracting the right capacity to enable us to: appropriately present to the world a fi tting tribute to a son and father of this soil, grow a sustainable institution, contribute to the people’s contract, put out appropriate products and services, all which are challenges that we have been preparing to meet. The specifi c issues we have been working on include:

• Improving our stakeholder interface, working closer with local and provincial government and institutions related to our work.

• Aligning our work to meet government objectives more directly. • Resource mobilization, securing independent grant/funding for programs, and securing a revision of the

museum’s baseline MTEF at the same time, in order to keep track of the mandated institutional growth and the strategic requirements.

• Improving the conservation, management and interpretation of the Mvezo site, (South Africa is the cradle of humanity, Mvezo is the cradle of Nelson R Mandela).

• Securing the upgrading of the remaining portion of the Bunga Building, and adequate development of the road access to Mvezo component of the museum.

• Accessing, developing and retaining adequate human capacity in specialist areas like fi nance, heritage resource management, marketing, education and research at affordable rates

• Developing sustainable partnerships within the framework of local economic development and tourism like participating in the Local Tourism Organisation and Regional Tourism Organisation.

• Communicating, profi ling and marketing the institution despite and because of its location in the light of existing prejudices and access to resources. This will include the development of a new corporate ID by public participation.

• Developing of appropriate educational and other products and services including a decade of democracy exhibition.

Fuller details of the above appear in the Programme reports below.

2. PROGRAMMES

2.1 Capital Works

The aim of this program is to ensure that suitable facilities for administration, storage of collections, exhibitions, education and public programmes, enterprises and related functions are developed and completed in line with museum requirements.

Main deliverables accomplished in the reporting period in respect of this program: • Appointment of the professional team for the upgrade of the Bunga Building which is due before the end of the

new fi nancial year. • Recommencement of the Qunu construction:

• Construction of the Qunu Youth and Heritage Centre is in progress although initially delayed with the run up to the welcome change of contractorand project manager.

• The independent report into shortcomings that had been commissioned was released and its recommendations are being addressed.



2.2 Governance, Finance and Administration

The aim of this program: is to ensure good governance, compliance with PFMA, render organizational support, ensure administrative services, budgeting, and good reporting. Ensuring optimal institutional operation in a way that refl ects the values on the one hand and involves judicious legitimate use of resources on the other is important to the sustainability of this institution. This program leads the processes required for ensuring accountability, transparency, forward planning, risk management and oversight.

• A Chief Financial Offi cer was appointed following a long search period, in the very fi rst month of

appointment he made a visible difference in PFMA compliance, the development and implementation of systems and procedures.

• Adequate division of duties is still being affected by fi scal constraints, although big strides are being made in this regards,

• Risk management and fraud prevention plans have been completed in the year under review, • A diverse range of policies were considered and approved by the new council. • A strategic plan, budget, reporting and tracking systems are in place for use in the new fi nancial year and

to leverage the lessons derived from the fi rst three years• Now that the required investment has been determined through a strategic planning exercise, negotiations

continue with the department to effect a review of the museum’s MTEF baseline. • When the museum was set up no scientifi c basis for determining appropriate investment level was in place,

now this results in a situation where the allocations are completely out of line with what it takes to operate the institutions.

• Five grant applications were submitted to different sources and two have been approved in the year under review. We take this opportunity to acknowledge the DAC’s transformation fund and the National Lottery Distribution Trust Fund.



TABLE 1: SCHEDULE OF COUNCIL MEETING ATTENDANCE: OLD COUNCIL

NAME POSITION 5TH APRIL 2003 25TH APRIL 2003

Mr Vuyani Jarana Chairperson In Attendance In Attendance

Mr Ahmed Kathrada Councilor Not in Attendance Apology tendered

Mrs Vuyo Mahlati Councilor Apology tendered In Attendance

Prof. Fink Haysom Councilor Not in Attendance Apology tendered

Prof. Jakes Gerwel Councilor Not in Attendance Apology tendered

Mrs Graca Machel Councilor Not in Attendance Apology tendered

Prof. Peggy Luswazi Councilor Not in Attendance Apology tendered

Mr Joseph Lekay Councilor In Attendance In Attendance

Mr Ernest Booi Councilor Apology tendered Apology tendered

Mr David Nokayi Councilor Not in Attendance Not in Attendance

Ms Tabisa Nodada Councilor In Attendance Apology tendered

Ms Lindiwe Msengana-Ndlela Councilor Not in Attendance Apology tendered

Mr Temba Zakuza Councilor In Attendance In attendance

Adv. Mathobela Sishuba Councilor In Attendance In attendance

Mr Denver Webb Councilor In Attendance In Attendance

2.3 Education and Public Programmes

The aim of this programme is to deliver quality memorable experiences for and with our audiences and communities, to ensure learning from the Mandela legacy, to achieve growth and diversity in visitor numbers, and to build sustainable relationships between the museum and communities and key stakeholders.

The program draws direct inspiration from the requirement of legacy projects to contribute to national unity, and the imperatives of contributing to African renaissance and moral regeneration. These programs seek to inspire people to be the best they can be. To realize these and more the program harnesses the story, the sites, the collections of Nelson Mandela in context for the benefi t and enjoyment of residents and visitors alike. At establishment it was decided that the museum is primarily for the local people to enjoy and in the process share the experience with visitors from everywhere. The depth and breadth of offerings refl ects this. This is a work in progress and is seen as central to ensuring that the museum becomes a living museum.

This program delivered on all its planned projects with captivating success, as seen in increased participation and partnerships, more integration with government objectives, social impact and economic impact.

The following programs were planned and delivered in the year under review:

• 4th Anniversary Celebrations, Iintonga Games & Indigenous Knowledge Systems. The museum turned 4 in the year under review amid much fanfare. The then chair of the portfolio committee represented the deputy minister, the former premier and veteran Mr Mhlaba, the Project Manager for the National Heritage Council along with public and private sector role players celebrated with us.

The celebrations this year showcased the results of years of behind the scenes work on Indigenous Knowledge and Iintonga indigenous games – by highlighting Iintonga and traditional music. Iintonga is a game loved and played by the young Rolihlahla. Following research and interactions with various role players the National Sports Commission and Mr Lawana enabled the museum to host a National Tournament of this game. The Limpopo delegation won the day convincingly. The long term objective is to enable Qunu to be a leading site for the development of this indigenous game.



TABLE 2: SCHEDULE OF COUNCIL MEETING ATTENDANCE: CURRENT COUNCIL

NAME POSITION 26TH JULY 2003 31ST OCT. 2003 13TH FEB. 2004

Mr Vuyani Jarana Chairperson In Attendance In Attendance In Attendance

Mr Temba Zakuza Councilor In Attendance In Attendance In Attendance

Ms Andiswa Vikilahle Councilor In Attendance In Attendance Apology tendered

Mr Ayanda Wakaba Councilor In Attendance In Attendance In Attendance

Mr Denver Webb Councilor In Attendance Apology tendered Apology tendered

Mr Vuyani Booi Councilor In Attendance In Attendance In Attendance

Chief Patekile Holomisa Councilor In Attendance In Attendance In Attendance

Adv. Loyiso Mpumlwana Councilor In Attendance In Attendance In Attendance

Mr Garth Bennyworth Councilor In Attendance In Attendance Apology tendered

Mr Mthunzi Ndimande Councilor In Attendance In Attendance In Attendance

10.

The ongoing program of indigenous knowledge enables us to offer tours by arrangement which incorporate story telling, indigenous food and indigenous games for a fee, thus benefi ting those offering the services and those visiting.

• National Youth day program This was celebrated in partnership with the Provincial Department of Sports, Recreation, Arts & Culture

and the local municipality.

Sponsorships by Meeg Bank enabled the production and distribution of soccer kits to rural clubs who did not have them following a month long preparation and eliminations.

• The Dawn project In celebrating heritage month the museum developed the dawn project. Young learners between the ages of 8 to 14 years were recruited from public schools within a 40 km radius of Umtata. A 3D and visual arts program to enhance and showcase their talent was organized. They made a human size bust of Nelson Mandela with clay as the training medium under a professional artist over the spring school holidays.

They learned to initially make their own fully casted preparatory training models.

Art critic commentary session, old memories, story telling, clay ceramic conservation and restoration were some of the components

This is to be an annual program of the museum focusing on different art forms.

Expressing and enhancing young people’s talent in 3D and visual arts. This program practically builds the capacity of selected young people to create sculpture and visual arts, opens up opportunities and promotes social cohesion.

NELSON MANDELA NATIONAL MUSEUMAnnual Report 2003/2004

The traditional leaders, healers and religious leaders conducted a cleansing ceremony at

Mvezo the cradle of Nelson Mandela

11.

• Youth Skills Development Our government has identifi ed human resources development and fi ghting poverty as key priorities. The museum has embraced this in ways appropriate to it. In the year under review the museum negotiated with INTAC, TEP (Tourism Enterprise Project), and CreateSA, a project of the MAPPP seta, on skills programs that will benefi t local people and the museum. To date a skills audit and a selection process for courses in catering, hospitality, tour guiding, heritage resource management, and small enterprise management has been completed. In the new fi nancial year this training will be rolled out to benefi t between 5 and 25 rural young people and women in each program. What this means for the museum is that there will be a reliably trained pool of people in communities to meet the requirements presented by tourism and to optimize on the opportunities created by the museum.

• 85TH birthday celebrations The museum annually celebrates Madiba’s birthday in a manner fi tting with its mandate. The period under review is no different. The theme of this program was Lessons from the life of Nelson Mandela to celebrate Madiba’s birthday – conveying the idea that all goals are possible with perseverance and dedication. An intimate celebration with the children of SOS children’s village Umtata was held. The celebrations featured SOS Children offering different art forms, local kwaito group and artists from a popular TV drama which was one of the highlights for the children. The audience included local and international visitors.

• Children’s Christmas celebrations The museum partnered with the Nelson Mandela Children’s Fund in co-ordinating the children’s Christmas celebrations held annually at Madiba’s Qunu residence. In addition to the children who benefi ted from participating at the event, some tertiary students got part time jobs for three weeks, the museum facilitated the selection of 400 learners as peace keepers / marshals, some HIV/Aids orphans benefi ted as well from the program and valuable footage and a documentary were generated from this program.

The program was a well co-ordinated resounding success.

• Human rights day Promoting awareness of human rights focusing on the right to nutrition and children’s rights was the chosen focus in the year under review. A rich program featuring specialist presentations, a human rights garden, drama, music, debate and beautiful choreography was implemented. SAPS child protection unit, lawyers for human rights, farmers association and the Department of Agriculture participated in the whole program. This led to some of the community gardening initiatives linking directly with the department of agriculture.



2.4 Marketing, Tourism and Enterprise Development.

The aims of this programme are to:• Help retain museum audiences, achieve growth and diversity in visitor numbers,• Communicate the museum’s message, develop and sell its products and services, and,• Grow the museum profi le and build sustainable corporate relationships.• Generate sustainable income for the museum.

2.4.1 Marketing & Tourism

Marketing is an integral part of the museum’s work. However the following dedicated operations are its most visible aspects and help the museum achieve growth and diversity in visitor numbers. In spite of the seasonal nature of tourism, a look at table 3 shows a sustained year on year growth and that the museum’s peak period is in September (Heritage & Tourism Month & School holidays being main drivers).

(i) Advertising Diverse relevant local and international publications were selected for advertising looking at travel guides, hotel room magazines, infl ight publication, and the commemorative publication of the 10 years of democracy.

(ii)Media Presence The museum also featured positively in other local and national newspapers as well as television. There is major improvement to be done to this area. The Unitra Community Radio played a very important role in putting the museum in contact with its audiences and facilitating access to museum programs. The public broadcaster in its news bulletins played a signifi cant role as well in showcasing the museum’s contributions to promotion of living heritage. In the year under review the website, while many of its sections are in progress, attracted a number of visitors and international enquiries for tours, research and related issues.

(iii)Trade shows and expos For maximum exposure and content communication the museum participated in:

• The Tourism Indaba, South Africa’s premier tourism international showcase annually held in Durban. • Various provincial getaway shows

2.4.2 Enterprise Development This is one big area of potential improvement for the museum so that the museum generates substantial income from this area. The overall plan is for at least 40% of the items sold in the museum shop to be unique, draw on the museum brand, be locally produced under licence, benefi ting the museum and the people who produce them. So far the following has been accomplished in this area:

• Appointment of a consulting team to outline and analyse opportunities for enterprise development by the museum and entrepreneurs in communities.

• Museum Shop planning process including detailed research and design of plans. (Already limited sales of books have started).

• Training of the construction workers in making paving, light fi ttings, doors for life beyond the construction period.

• Approached a Development Finance Institution for technical assistance on developing a business plan and sustainability models.





TABLE 3: VISITOR FIGURES AND TRENDS, 1/4/2001 TO 31/3/20042001/02 2002/03 2003/04

MONTH FOR DOM LOC LEA TOTAL FOR DOM LOC LEA TOTAL FOR DOM LOC LEA TOTALAPR 90 304 808 1483 2685 156 192 659 1976 2983 91 476 1113 1678 3358

MAY 51 143 1449 1396 3039 112 273 1729 2080 4194 132 244 1703 1085 3164

JUN 59 307 1516 1299 3181 63 402 1462 342 2269 146 356 1271 2066 3839

JUL 144 278 266 1930 2618 172 402 2156 416 3146 237 354 1783 560 2934

AUG 122 252 1250 1182 2806 307 326 1878 1147 3658 278 334 1557 3878 6047

SEP 53 575 2524 1098 4250 132 357 1727 3894 6110 301 493 1740 2592 5126

OCT 131 507 2487 1725 4850 219 697 1486 3289 5691 470 463 2229 3913 7075

NOV 158 278 1323 1537 3296 244 385 385 1742 2756 273 408 1305 1694 3680

DEC 62 319 1110 44 1535 161 300 1256 256 1973 233 410 1253 124 2020

JAN 111 219 40 1092 1462 100 367 1503 17 1987 239 317 1169 159 1884

FEB 89 193 604 1269 2155 126 309 1247 720 2402 195 257 1479 456 2387

MAR 142 293 1170 1913 3518 199 298 1363 2497 4357 173 292 1190 1539 3194

1212 3668 14547 15968 35395 1991 4308 16851 18376 41526 2768 4404 17792 19744 44708

FOR = Foreign Tourists

DOM = Domestic Tourists

LOC = Local Tourists

LEA = Learners

2.5 Human Resource Development

The aims of the human resource development program of the museum are to:• Develop, retain, attract and create an environment to effectively deploy competent motivated people • Compensate fairly and competitively, manage and recognize excellence and above average performance. • Respond effectively to the scourge of HIV / Aids primarily within the workplace. • Develop relevant policies and procedures and comply with relevant legislation.

The human resource context in which the museum operates and some of the related initiatives are as follows:

• Museums in general especially a national museum dealing with this subject matter often require rare and specialized skills in areas of curatorship, education, exhibition development, research, program development, project management, design, fundraising, evaluation, tourism and marketing.

• The majority of the museum staff started out as volunteers, and have demonstrated an admirably unshaking commitment to the museum, rendering their best throughout the fi rst years.

• Drawing largely on local labour has ensured that so far the staff refl ects overally the demographics of the region.

• The corporate planning exercise yielded an indication of a revised organization chart, which the council deliberated upon and approved. However many of these positions while essential cannot be fi lled due to lack of fi nancial resources.

• The staff complement changed with the addition of a Chief Financial Offi cer, Security Specialist and Executive Assistant to the CEO,

• Employee benefi ts continued to be implemented smoothly. • In the year under review a recognition agreement was concluded with the Nehawu union. • The year under review saw the commencement of three disciplinary hearings for matters relating to

attendance and compliance with standing procedures.

In the year under review the museum conducted a board workshop for the draft human resources policies.The board considered and adopted pay level guidelines and approved a new organization chart.



TABLE 4: ORGANIZATIONAL STRUCTURE OF MUSEUM, 1/4/03-31/3/04Details of Post Number of

Approved Posts on Structure

Salary Level p.a.

Posts Filled Posts Vacant

CEO 1 4 1 0

Secretary 1 1 1 0

Executive Assistant to CEO 1 2 1 0

Chief Financial Offi cer 1 3 1 0

Accountant 1 2 0 1

Financial Controller 1 2 0 1

Senior Manager: Corporate Services 1 3 0 1

Secretary 2 1 0 2

Administrative Assistant 4 1 0 4

Specialist: Security, logistics & Facilities 1 2 1 0

Assistant Security and Logistics Offi cer 1 1 0 1

Human Resources Specialist 1 2 0 1

Information Technology Specialist 1 2 0 1

Senior Manager:Programs

1 3 0 1

Secretary 1 1 0 1

Co-ordinator Tours & Public Programs 1 2 1 0

Tour guides 8 1 8 0

Education & Material development Specialist

1 2 0 1

Material Developer- Design & Layout 1 1 0 1

Research Specialist 1 2 0 1

Librarian-Archivist 1 1 0 1

Senior Manager: Communication, Marketing and Enterprise Development

1 3 0 1

Secretary 1 1 0 1

Marketing Specialist 1 2 0 1

Enterprise Contracts Offi cer 1 1 0 1

General Assistant 1 1 1 0

TOTAL: 37 15 22

TABLE 5: SCHEDULE OF HUMAN RESOURCE COST TO THE MUSEUM, 1/4/03-31/3/04

Description Amount

Salaries 1 702 165

Staff Benefi ts 191 143

Recruitment 73 054

Other Expenses 2 037

Total 1 968 399



TABLE 6: ANALYSIS OF DEMOGRAPHICS OF MUSEUM EMPLOYEES, 1/4/03-31/3/04

Post Total African Female

African Male

Coloured Male

Coloured Female

White Female

White Male

CEO 1 1

Secretary 1 1

Executive Assistant to CEO 1 1

Chief Financial Offi cer 1 1

Specialist SLF 1 1

Co-ordinator – Tours & Public Programs

1 1

Tour guides 8 4 4

General assistant 1 1

TOTAL: 15 8 6 1

TABLE 7: LEAVE ARRANGEMENTS, 1/4/03 - 31/3/04

Post No. Days Vacation

Leave Accrued

No. Days Vacation

Leave Taken

No. Days Sick leave Accrued(in 3 yrs)

No. Days Sick

Leave Taken

No. Days Special Leave

Accrued

No. Days Special Leave Taken

No. Days

Absent-eeism

CEO 41.75 7.50 29 Nil 3 Nil NilExecutive Assistant 22.75 21 13 47 3 3 NilSecretary 42 21 12 2 3 Nil NilCo-ordinator Tours 42 21 12 9 3 Nil NilChief Financial Offi cer

15.75 3 9 Nil 3 Nil Nil

Specialist SFL 17.75 6 10 2 3 Nil NilTour guides 307 76 120 80 24 14 8General assistant 42 21 12 17 3 2 NilTOTAL: 531 176.5 217 157 45 19 Nil

TABLE 8: TRAINING AND CAPACITY BUILDING, 1/4/03 - 31/3/04

Post No. Trained

Details of Course Cost of Training

Executive Assistant - CEO

1 Business Communications Course R 850.00

Secretary 1 Payroll Processing R 1 224.00

Museum Staff 15 Team Building Exercise R 3 200.00

TOTAL: 17 R 5 274.00

16.

TABLE 9: MISCONDUCT AND/OR DICSIPLINARY HEARINGS, 1/4/2003 - 31/3/2004

The museum conducted three disciplinary enquiries during the year under review:(a) The fi rst was against an offi cer for gross negligence in that he damaged the museum motor vehicle, but he was

found not guilty.(b) The second was when charges of not taking proper care of the museum vehicle were preferred against second

offi cer for which he was found guilty and given a warning as sanction.(c) The third was when charges of absenteeism from work without permission/authority were preferred against offi cer in (a) above, the proceedings of which are still in progress.

3. CONCLUSION

In conclusion the most sincere appreciation is registered for the sterling work that the museum’s council, led by its chairperson, competent committed committee members and chairpersons. No better caliber of people could have been asked for. A council that not only always achieves a quorum, but almost a 100% participation rate and applies its mind thoroughly to the range of far reaching decisions that it takes. Our staff who serve with integrity, excellence and commitment.

Our visitors and civil society stakeholders make and made our success every step of the way, we most sincerely thank them. Our partners in other government departments and tiers, in the security services (SANDF, SAPS & NIA) NGOs, in private sector who give of their time and resources for the success of our joint programs and the benefi t of our audiences, we really appreciate their efforts.

We are greatly indebted to the last and previous ministers and deputy ministers. We keenly anticipate similar support from the incumbent minister and deputy minister. We pledge our unconditional support to the current departmental leadership.

Khwezi kaMpumlwana

Chief Executive Offi cer



17.

NELSON MANDELA

NATIONAL MUSEUM

preserving the legacyof a great statesmanfor future generations.



20.

We value people and humanity, showing care, respect and dignity to all who interact with us and our organization.

NELSON MANDELA

NATIONAL MUSEUM


ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2004

CONTENTS Page

Museum Council Report 22

Report of The Audit Committee 23

Report of The Auditor-General 24 - 25

Balance Sheet 26

Income Statement 27

Statement of Changes in Equity 28

Cash Flow Statement 29

Notes to the Annual Financial Statements 30 - 33

Detailed Income Statement 34 - 35

The annual fi nancial statements set out on pages 26 to 35 were approved by the museum council on 27/05/2004 and signed on its behalf by:

Vuyani Jarana Khwezi Mpumlwana

Chairperson Chief Executive Offi cer



Museum Council’s Report


1. The Museum council presents its annual report which forms part of the audited fi nancial statements of the Museum for the year ended 31March 2004.

GENERAL REVIEW2. The museum continues to act as a non-profi t making organization. No material event has occurred to the fi nancial affairs of the museum since the balance sheet date until the date of this report.

STATEMENT OF RESPONSIBILITY3. The Museum council is responsible for the maintenance of adequate accounting records and the preparation and the integrity of the annual fi nancial statements and related information. The auditors are resposible for reporting on the fair presentation of the annual fi nancial statements. The annual fi nancial statements have been prepared in accordance with South African Statements of Generally Accepted Accounting Practice and in the manner required by the Companies Act in South Africa.

4. The Museum council is also responsible for the introduction and maintenance of the Museum’s systems of internal fi nancial control and risk management procedures. These are designed to provide reasonable assurance as to the reliability of the annual fi nancial statements and to adequately safeguard, verify and maintain accountability for assets and to prevent and detect misstatement and loss. Nothing has come to the attention of the Museum council to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review.

5. The annual fi nancial statements have been prepared on the going concern basis and the Museum council has every reason to believe that the museum has adequate resources in place to continue operations in the year ahead.

FINANCIAL RESULTS6. Full details of the fi nancial results are set out on pages 26 to 35 in the fi nancial statements.

7. The audit report of the Auditor General is presented on pages 24 to 25.

OPINION8. In the opinion of the Museum council, based on the information available todate, the annual fi nancial statements for the year ended 31 March 2004, set out on pages 26 to 35 fairly comply with the provisions of the Treasury regulations and the Public Finance Management Act (Act 1 of 1999 as amended) and were approved by the Museum council in its capacity as an Accounting Authority on the 27/05/2004 and are signed on its behalf by:

Vuyani Jarana

Chairperson



23.

Report of the Audit Committee


This was indeed a challenging year which saw the Audit Committee taking shape and embarking on tasks that were aimed at assisting the museum council to understand its responsibilities as outlined in the Public Finance Management Act (PFMA) as well as relevant aspects of the recommended Code of Corporate Governance, King 2 report.

The committee was elected by council and the following council members were assigned the responsibility of driving this committee: - Mr. Temba Zakuza (Chairman) - Advocate Loyiso MpumlwanaThe CEO and the CFO are not members but do attend meetings to give input and understand decisions taken in order to effect implementation.

A presentation was made to council in their fi rst sitting by the Chairman. Specifi c tasks were embarked upon and Mr. Jack Mdeni was co opted as the additional member of the committee and since his acceptance of this role; he has generously contributed to the debates and activities of this committee. In my capacity as the chairman, I thank the members of this committee for their absolute commitment and dedication to the activities of this committee.

Milestones:The committee understands its role to be that of assisting the museum in attending to matters affecting both Internal and External Auditing. It strives to achieve this by operating within the Audit Committee Charter which was crafted, discussed and adopted by the Council. Our committee thanks the Council members for the invaluable input that they contributed to the crafting of this document.

The museum continued its highly valued professional relationship with the offi ce of the Auditor General and the committee wants to acknowledge the value it attaches to the recommendations proposed by the offi ce of the Auditor General. The committee believes that despite these achievements, there is still room for improvement and wishes to strive for excellence and be the leader in this area in a way that befi ts the stature of the icon whose legacy the museum is mandated to promote.

On the Internal Auditing front, the committee addressed three aspects that constitute the Internal Audit Activity: - Risk Management

- Corporate Governance- Internal Controls

A professional service provider was engaged to conduct a risk assessment workshop from which risks facing the museum were identifi ed and ranked in order of their importance.

This was followed by a fraud prevention plan which the museum is in the process of understanding for purposes of implementation.

Corporate Governance issues and Internal Controls are intended to be covered extensively by the Internal Audit service provider who has subsequent to the year end been appointed and is due to start the Audit focusing on high risk areas as outlined by the risk matrix that was developed from the risk workshop.

Conclusion:The committee has evaluated the Annual Financial Statements and recommends that they be adopted.The committee wishes to thank the people of South Africa for the honour bestowed upon its members to serve them in this capacity.

T. S Zakuza Chairman of the Audit Committee Umtata, 23 August 2004



24.

Report of the Auditor-General to the National Parliament

on the fi nancial statements of Nelson Mandela National Museum for the year ended 31 March 2004

1. AUDIT ASSIGNMENT

The fi nancial statements set out on pages 26 to 35, for the year ended 31 March 2004, have been audited in terms of section 188(1)(a) of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), read with sections 3 and 5 of the Auditor-General Act, 1995 (Act No. 12 of 1995) and section 40(2) of the Public Finance Management Act,1999 (Act No.1 of 1999). These fi nancial statements, the maintenance of effective control measures and compliance with relevant laws and regulations, are the responsibility of the executive authority. My responsibility is to express an opinion on the fi nancial statements and compliance with the relevant laws and regulations applicable to fi nancial matters, based on the audit.

2. NATURE AND SCOPE

The audit was conducted in accordance with Statements of South African Auditing Standards. Those standards require that I plan and perform the audit to obtain reasonable assurance that the fi nancial statements are free of material misstatement.

An audit includes:• examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements, • assessing the accounting principles used and signifi cant estimates made by management, and• evaluating the overall fi nancial statement presentation.

Furthermore, an audit includes an examination, on a test basis, of evidence supporting compliance in all material respects with the relevant laws and regulations, which came to my attention and are applicable to fi nancial matters.

I believe that the audit provides a reasonable basis for my opinion

AUDITOR-GENERAL


25.

3. AUDIT OPINION

In my opinion, the fi nancial statements fairly present, in all material respects, the fi nancial position of Nelson Mandela National Museum at 31 March 2004 and the results of its operations and cash fl ows for the year then ended in accordance with general accepted accounting practice and in the manner required by the Public Finance Management Act, 1999 (Act No 1 of 1999).

4. APPRECIATION

The assistance rendered by the staff of the Nelson Mandela National Museum during the audit is sincerely appreciated.

L.Y MajovaFor Auditor-General

UMTATA31 July 2004

AUDITOR-GENERAL



26.

BALANCE SHEET for the year ended 31 March 2004

2004 2003 Notes R R ASSETS Non-current assets 1 & 2 395 715 480 379 Intangible assets 3 50 654 63 317 Current assets 1 659 946 345 147 Inventory 6 832 697 Sundry Debtors 7 nil 67 611 Staff Loans 7 3 184 4 000 Cash and Cash equivalents 1 655 930 272 839 TOTAL ASSETS 2 106 315 888 843

EQUITY AND LIABILITIES

Accumulated Funds 4 1 937 557 603 130 Current Liabilities 168 758 285 713 Sundry Creditors 8 168 758 285 713 TOTAL EQUITY AND LIABILITIES 2 106 315 888 843


27.

INCOME STATEMENT for the year ended 31 March 2004 2004 2003 Notes R R Revenue 5 6 022 979 3 280 005

Total expenses 4 688 552 4 137 033

Staff Costs 1 968 399 1 241 686

Depreciation and Amortisation expenses 227 909 216 910

Other operating expenses 2 492 244 2 678 437

Net Surplus/(Defi cit) for the year 1 334 427 - 857 028 Retained surplus beginning of year 603 130 1 460 158

Retained surplus end of year 1 937 557 603 130



28.

STATEMENT OF CHANGES IN EQUITY for the year ended 31 March 2004

2004 2003 R R Opening Balance 603 130 1 460 158

Surplus/(Defi cit) for the year 1 334 427 - 857 028

Accumulated funds as at end of year 1 937 557 603 130


29.

CASH FLOW STATEMENT for the year ended 31 March 2004

Notes 2004 2003 R R Cash retained from operating activities: 1 513 673 - 458 685 Cash generated from operations 1 1 558 989 - 646 063 Investment income 3 347 5 944 Utilised to decrease working capital - 48 663 181 434 Cash utilised in investing activities: - 130 581 - 271 879 Acquisition of Assets - 130 581 - 271 879 Net cash fl ow 1 383 092 - 730 564 Cash and Cash equivalents at beginning of the year 272 839 1 003 403 Cash and Cash equivalents end of the year 2 1 655 931 272 839 Notes To The Cash Flow Statement 1. Cash generated from operations: Operating income/(loss) before tax 1 334 427 - 857 029 Adjustment for: Depreciation 227 909 216 910 Investment income - 3 347 - 5 944 1 558 989 - 646 063

2. Cash and Cash equivalentsCash and cash equivalents consist of cash on hand, cash at bank held in current account. 2004 2003

Cash at bank 1 655 406 272 566Petty cash 523 273 1 655 929 272 839 Workings 1. Utilised to increase/(decrease) working capital: Increase in stock 135 697 increase/(decrease) in Accounts Receivable - 68 427 4 115 increase/(decrease) in Accounts Payable 116 955 - 186 248 48 663 - 181 434

2. Addition to fi xed assets: computer equipment 27 597 120 189 offi ce furniture 84 542 55 875 furniture and fi ttings nil 2 998 other fi xed assets 18 442 29 500 intangible assets nil 63 317 130 581 271 879



30.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2004

ACCOUNTING POLICIES The fi nancial statements have been prepared on the historical cost basis incorporating the following principal accounting policies which are consistent in all material respects with those applied in the previous year. 1. Depreciation: 1.1 Depreciation on motor vehicles is provided at 20% per annum on a straight line basis and apportioned for a partial year. 1.2 Depreciation on computer equipment is provided at 33,3 % per annum and apportioned for a partial year. 1.3 Depreciation on Offi ce Equipment and Furniture and Fittings is provided at 15 % per annum and apportioned for a partial year. 1.4 Intangible assets are amortised over their estimated useful lives of fi ve (5) years and apportioned for a partial year. 1.5 Other non current assets are depreciated at 20 % per annum on a straight line basis and apportioned for a partial year. The gifts donated to Dr Nelson Mandela which constitute the assets of the museum are in the process of being valued and have not been included in the assets refl ected above. They will be included in subsequent fi nancial statements once this process is completed. 2. Non Current Assets All property, Plant and equipment are stated at cost. Cost includes all costs directly attributable to bringing the assets to working condition for their intended use and are written off over their useful lives in the manner mentioned in 1 above.

2004 Cost Cost Net Book 01-04-2003 Additions 31-03-2004 Accum Depr Value Motor Vehicles 205 899 - 205 899 140 698 65 201Computer Equipment 529 840 27 597 557 437 461 578 95 859 Offi ce Equipment 131 037 84 542 215 579 58 715 156 864 Furniture and Fittings 48 053 nil 48 053 20 225 27 828Other non current assets 68 219 18 442 86 661 36 698 49 963

983 048 130 581 1 113 629 717 914 395 715

2003 Cost Cost Net Book 01-04-2002 Additions 31-03-2003 Accum Depr Value

Motor Vehicles 205 899 - 205 899 99 518 106 381Computer Equipment 409 651 120 189 529 840 341 653 188 187 Offi ce Equipment 75 162 55 875 131 037 28 379 102 658 Furniture and Fittings 45 055 2 998 48 053 13 017 35 036Other non current assets 38 719 29 500 68 219 20 103 48 116

774 486 208 562 983 048 502 670 480 378


31.


3. Intagible Assets: This consists of the cost incurred in the development of the museum website and capitalisation takes place as expenditure is incurred. Cost of this asset is

amortised as stated in 1.4 above. 2004 Cost Cost Net Book 01-04-2003 Additions 31-03-2004 Accum Depr. Value NMNM Website 63 317 nil 63 317 12 663 50 654 4. Accumulated Funds: 2004 2003

Opening Balance 603 130 1 460 158 Surplus/(Defi cit) for the year 1 334 427 - 857 028

Closing Balance 1 937 557 603 130 5. Revenue recognition 5.1 Revenue consists of Grants received from the government, sundry book sales,donations,insurance refunds and interest on the cash at bank, and is

recognised when earned. 2004 2003

Government grant 6 000 000 3 226 000 Book sales 735 1 591Donations 18 897 42 150Insurance refund nil 4 320Interest 3 347 5 944

6 022 979 3 280 005 6. Inventory 6.1 Inventory comprise books which are valued at the lower of cost and net realisable value. 2004 2003

Inventory 832 697 7. Accounts Receivable Accounts receivables are stated at their nominal values. 2004 2003

Book sales nil 2 915Enslin-Dept of pub. Works nil 64 696Staff loans 3 184 4 000

3 184 71 611



32.


8. Accounts Payable Accounts payable are stated at their nominal values. 2004 2003

Accruals 168 758 260 714

9. Bad Debts Bad debts consist of irrecoverable amounts of debtors arising from the sale of books which could not be attributed to any particular debtor. 2004 2003

Book Sales 790 nil 10. Council Travel and Accommodation

Council emoluments consists of council travelling expenses, accommodation expenditure and Honorarium

2004 2003

Council Travel & Accommodation 200 547 167 746 Council Honoraria 53 100 nil

253 647 167 746 11. Exhibition Expenses Included in exhibition expenses is an amount of R 52 492 for which no direct benefi t accrued to the museum and in respect of which corrective action has

since been taken. 2004 2003

Exhibition Expenses 52 492 nil 12. Inventory Loss This amount refers to inventory of books acquired for sale but lost and could not be attributed to any one of the employees and therefore was written off. 2004 2003

Inventory Loss 233 nil





13. Leases

Leases of plant and equipment where a signifi cant portion of the risks and rewards of ownership are retained by the lessor are classifi ed as operating leases

and payments made under these leases charged to the income statement over the period of the lease. 2004 2003

Lease Charges 30 861 nil

14. Employee benefi ts

For defi ned contribution plans, the museum employees belong to the Orion Pension fund administered by Old mutual and a medical aid scheme administered

by Bonitas medical scheme. Once the contributions have been paid the museum has no further payment obligations. The regular contributions constitute

periodic costs for the year in which they are due and as such are included in staff costs. Currently 11 employees belong to these funds.

2004 2003

Pension contribution 42 088 9 331Medical aid contribution 120 879 13 395

162 967 22 726

15.Comparatives

Where necessary, comparative fi gures have been adjusted to conform with changes in presentation in the current year.

16.Taxation

In terms of section 10(1)(CA)(i) of the Income Tax Act 1962 as ammended, the museum is exempt from the payment of tax.



DETAILED INCOME STATEMENT for the year ended 31 March 2004

Notes 2004 2003 R R

Revenue 5 6 022 979 3 280 005

Less: Expenses 4 688 552 4 137 033

Accounting fees nil 22 761

Advertising and Promotions 342 304 188 563

Audit fees 2 896 25 000

Bad Debts 9 790 nil

Bank charges 16 787 13 991

Casual Labour 5 655 nil

Cellphones 54 151 14 167

Cleaning 71 795 43 965

Computer licences 7 977 3 980

Consultants’ travel and accommodation 15 479 55 288

Courier fees 7 577 6 399

Council Travel and Accommodation 10 253 647 167 746

Depreciation and Amortisation expenses 227 909 216 910

Equipment Hire 71 405 nil

Exhibition expenses 11 135 662 192 481

Functions and catering 219 348 247 975

Insurance 48 596 41 640

Internet connection 2 157 1 119

Inventory Loss 12 233 nil

Lease Charges 13 30 860 nil

Medical expenses nil 14 478

Motor vehicle costs:

>Repairs and maintenance 35 302 59 001

>Fuel and oil 20 362 43 974

>Licence 247 nil

Post box rental 215 215

Printing and stationery 34 513 114 942

Profesional fees 58 140 nil

Rent paid nil 2 500

Repairs and maintenance - Bldgs 20 457 14 254

Repairs and maintenance - Equipment 51 626 63 537

Replacements nil 1 463



DETAILED INCOME STATEMENT CONTINUED for the year ended 31 March 2004

Notes 2004 2003 R R

Staff costs:

>Salaries 1 702 165 1 139 035

>Medical aid 14 120 879 13 395

>Pension 14 42 088 9 331

>Recruiting expenses 73 054 64 262

>UIF 10 633 7 697

>Skills development levy 17 543 5 766

>Workmen’s compensation 2 037 2 200

Security expenses 498 071 534 696

Staff training 5 274 29 576

Staff welfare 6 909 6 292

Subscriptions 9 027 2 473

Telephone and fax 204 021 169 179

Transport nil 33 372

Travel and accommodation 260 761 563 410

Net Surplus/(Defi cit) 1 334 427 - 857 028

36.

NOTES


25861 annual report 03'04

Documents