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FINANCIAL ANALYSIS FOR 2004-5
Corporate activities during the past year emphasized programs designed to improve efficiencies and enhance the organizational
ability to protect the collections. A comprehensive collections risk assessment project was completed with the support of the
Canadian Museum of Nature. Looking forward within a 100-year context, the assessment identified scenarios for deterioration
and the probability of risks to the archival, human history and natural history collections. Based upon the assessment, the
Corporation will develop and implement mitigating strategies to ensure the long-term protection of the collections.
Activity-based management workshops were completed in three business areas. Services and activities were evaluated and
quantified to determine the costs to deliver these services based on current processes and practices. This information will provide
benchmarks to identify process improvements to reduce costs and ensure appropriate costs are applied to fee-based services.
REVENUES
In 2004-5, the Province of British Columbia (the Province)
contributed 57% of the Corporation’s revenues. The
Province has made a financial commitment to provide
$12.105 million to the Royal BC Museum each year until
the 2009-10 fiscal year.
A primary objective of the Royal BC Museum is to
increase earned revenue. This fiscal year, the Royal BC
Museum earned 43% of revenue from sources other than
the Province. These sources include admissions revenue
and other museum enterprise revenue.
Revenues
OPERATING EXPENSES
Operating expenditures were higher in 2004-5 as a
direct result of the Eternal Egypt temporary exhibit.
These incremental costs covered salaries for exhibit line
management and support staff, security for the exhibit,
marketing, materials, supplies and the exhibit lease fee.
As a Crown Corporation, the Royal BC Museum is no
longer self-insured through the Province. Insurance costs
are $200,000 annually.
Operating Expenses
Amortization of
Deferred Capital
Contributions
3%
Museum
Enterprises
9%
Special Exhibits
15%
Amortization
4%
Salaries and
Benefits
36%
Museum
Admission Fees
31%
Province of
British Columbia
57%
Other Operating
16%
Building and
Security
29%
As a direct result of hosting the Eternal Egypt: Masterworks
of Ancient Art from the British Museum travelling exhibit
in 2004-5 admission revenue increased from $4.1 million
in 2003-4 to $7.017 million in 2004-5. Future admission
revenue will fluctuate dependent on the pricing and
appeal of temporary exhibits. Other revenue consists
of royalties earned from Destination Cinema Canada,
grants, sponsorships, and fees for activities at the
Royal BC Museum.
The Friends of the Royal British Columbia Museum solicits
membership and coordinates other support activities on
behalf of the Royal BC Museum. In 2004-5, the Friends
donated $657,500. The Royal British Columbia Museum
Foundation holds long-term investments and endowments
for the Royal BC Museum Corporation.
As the Royal BC Museum revitalizes exhibits and
programming to attract new and repeat visitors, additional
capital is being directed toward expanding the exhibit
spaces. Capital projects completed this year included the
Living Land, Living Sea Gallery which includes a topical
exhibit on climate change and its effects in British
Columbia, and a three-dimensional map of BC generated
solely from satellite imagery.
Amortization costs included $100,000 from external
sources. Amortization costs increased as a result of these
increased capital purchases.
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