The Museum Board, a statutory authority established pursuant to the South Australian Museum Act 1976, is responsible for the management of the South Australian Museum. The role of the South Australian Museum is to increase knowledge and understanding of the State’s natural and cultural heritage; to serve the community by acquiring, preserving, interpreting and presenting to the public, material evidence concerning people and nature; and to provide opportunities for study, education and enjoyment.
The grants from the State Government increased by $11.2 million to $19.4 million primarily as a result of funds provided for the redevelopment of the South Australian Museum buildings.
As a result of these increased grants the operating result for the year was an Increase in Net Assets Resulting from Operations of $10.8 million.
Subsection 16(2) of the South Australian Museum Act 1976 provides specifically for the Auditor-General to audit the accounts of the Board in respect of each financial year.
The audit program covered all major financial systems and was directed primarily towards obtaining sufficient evidence to enable an audit opinion to be formed with respect to the financial statements and internal control.
During 1999-2000 specific areas of audit attention included:
revenue including receipting and banking
expenditure including accounts payable and salaries and wages
general ledger
property, plant and equipment including the adequacy of asset register maintenance.
An audit management letter conveying the scope of the audit and related findings was forwarded to the Director, South Australian Museum. A satisfactory response to the matters raised was received.
The overall internal control environment was assessed as satisfactory. There were, however, areas where Audit considered there was room for improvement. A number of these areas were raised as a result of the 1998-99 audit. Commentary with respect to these areas follows.
The audit of heritage collection registers identified that improvement could be achieved in the documentation of policies and procedures regarding collections and the undertaking of regular confirmation of the existence of collection items. The latter issue was raised last year.
In response the Board indicated that revised procedures will be implemented, incorporating the appointment of a senior officer to oversee collection management activity.
The audit of asset registers identified opportunities for improvement in the management of attractive asset items, including the development of policies and procedures and the undertaking of regular confirmation of the existence of these assets.
In response the Board indicated that policies and procedures will be developed in conjunction with Arts SA and regular confirmation of the existence of assets will be undertaken.
As required by subsection 36(1)(a)(iii) of the Public Finance and Audit Act 1987, the audit of the Museum Board included an assessment of the controls exercised in relation to the receipt, expenditure and investment of money, the acquisition and disposal of property and the incurring of liabilities. The assessment also considered whether those controls were consistent with the prescribed elements of the Financial Management Framework as required by Treasurer’s Instruction 2 ‘Financial Management Policies’.
Audit formed the opinion that the controls exercised by the Museum Board in relation to the receipt, expenditure and investment of money; the acquisition and disposal of property; and the incurring of liabilities, were sufficient to provide reasonable assurance that the financial transactions of the organisation were conducted properly and in accordance with the law.
The operating result for the year was an Increase in Net Assets Resulting from Operations of $10.8 million, an increase of $8.3 million over the previous year. The result was due mainly to an increase in Grants from State Government of $11.2 million. Of this increase $10.8 million related to grants provided in relation to the redevelopment of the South Australian Museum buildings.
Grants from the State Government for operating and capital purposes totalled $19.4 million ($8.3 million) and represented 91 percent (79 percent) of the Total Operating Revenues. As expressed in Note 2(m) to the Financial Statements the Board is dependent on the ongoing financial support of the State Government.
The written down value of the item Property, plant and equipment was $38.7 million compared with $28.2 million last year. The increase of $10.5 million primarily relates to the cost of redevelopment of the South Australian Museum buildings which was undertaken during 1999-2000 and which is included in the item Work in progress.