| TREASURER'S REPORT
The financial operations of the Museum needed closer scrutiny
this year as we had a deficit last year that had to be eliminated.
A number of areas were identified where savings could be
made, or funds could be deployed more effectively, and appropriate
steps were taken. Consequently we have increased turnover
and brought the Museum back into a surplus, albeit a small
one.
This is not just a matter of making cuts as the Museum,
and any organisation for that matter, needs to maintain
the business for which it exists, so the exercise of restoring
financial buoyancy is quite a complex thing, requiring attention
to many factors and consultation all round. There has also
been a revision of accounting procedures, which gives a
clearer picture of the movement of finances within individual
projects.
There are a couple of abnormal items in the Profit and
Loss Account that we believe pave the way for an even firmer
basis to work from next year.
(1) There has been a write-off of bad debts that have been
deemed irrecoverable.
(2) The long service leave provision has been increased
by $8,000 due to under provision in prior years.
The untied grant of $5,000 from the City of Maribyrnong
was extremely helpful and is greatly appreciated, as was
that of $4,000 from the Department of Environment &
Heritage Australia. These two grants offset the reduction
of $8,000 in the annual grant from Arts Victoria, and lowered
the shortfall in the administration area to approximately
$10,000, but this is still a matter of concern and ways
of bringing it into balance are being explored.
In the Balance Sheet there has been an asset revaluation
of $20,000 for exhibition material, artefacts and built
objects. This is part of a process of assessing the considerable
accumulation of products that are used in the business of
being a museum. There is an area of debate about methods
of valuation of artefacts on which we are seeking further
advice. It is estimated that to replace the cultural assets
of the Museum would probably cost more than $500,000. There
is also the issue of hidden assets.
The Museum has use of assets that belong to Parks Victoria,
such as the buildings on the site, including the one we
work in, and the park itself. A good deal of Pipemakers
Park is effectively a context for cultural events and consequently
an asset employed in the delivery of those events or a hidden
asset. This debate or discussion will go on and it will
always be difficult to pin down a clear answer. However,
the point remains that the Museum has in effect an asset
base considerably larger than that shown in the Balance
Sheet.
Preparations for the introduction of the GST are in hand,
and while the impact of it on the operations and finances
of the Museum will be significant, we are optimistic that
no major problems will be encountered.
Ian Marshall
Treasurer
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