Annual Report 2008-2009 - National Gallery of Canada

Certain operating costs have increased for the Gallery,
including transportation, insurance for the organization, and
utilities. As well, as the Gallery is a knowledge-intensive
organization, salaries have continued to rise. These increases
pose a considerable challenge to the organization’s capacity to
deliver on its mandate, largely by reducing the proportion of
resources available for public programming.
The corporation must be positioned to effectively compete
for declining private-sector donations and sponsorships.
This is particularly important since the federal government has
encouraged national museums to increase self-generated
sources of revenue. The Gallery has developed and implemented
several strategies to increase non-governmental
sources of income to fund its operating costs and program
delivery; last year it generated 18% of total resources (excluding
the acquisition of art and capital funding) through services
such as the bookstore, admissions and parking. Additionally,
the National Gallery Foundation, now in its twelfth year of
operation, actively seeks private-sector sponsors and donors.
The Foundation’s support is integral to the institution’s outreach
and educational programs.
The Government’s 2007–08 Strategic Review Process,
which involved a comprehensive assessment of the Gallery’s
funding, spending and program performance, has also been a
catalyst for the organization to increase the efficiency and
effectiveness of its program and service delivery. Specific
actions in the last fiscal year under Strategic Review included a
major reduction in expenditures for the annual Shawinigan
exhibition, increased operating efficiencies and the conclusion
of the lengthy process to vacate the Canadian Museum of
Contemporary Photography’s premises on 1 April 2009.
YEAR-END RESULTS
The corporation ended the 2008–09 fiscal year with a small
surplus of $72,000, which represented 0.1% of its operating
budget.
Total resources available for use include Parliamentary appropriations,
earned revenues and contributions. Parliamentary
appropriations, excluding appropriations specifically for capital
needs, currently represent 82% of the budget. This is supplemented
through revenue-generating activities and from
funds received directly from donors and from the National
Gallery of Canada Foundation.
Resource Base 2008-09
Contributions 4 %
Revenues 14 %
Appropriations on
a cash basis excluding
capital 82 %
Parliamentary Appropriations
On a cash basis, Parliamentary appropriations increased from
$51,912,000 in 2007–08 to $56,033,000 in 2008–09. The difference
is largely due to special funding for capital repairs. More
specifically, the corporation received $9,935,000 in 2008–09
for capital investment compared to $5,650,000 in 2007–08. On
an accrual basis, however, Parliamentary appropriations
increased from $52,346,000 in 2007–08 to $53,465,000 in
2008–09. The Gallery defers the recognition of appropriation
income for both art and capital acquisitions until it makes the
related purchases. These factors, as well as an extraordinary
one-time funding for employee benefits, account for the small
increase.
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