Highlights - Glenbow Museum

FINANCIAL OUTLOOK
The most important challenge we face financially in the coming years is to eliminate the ongoing erosion of the purchasing power of
our endowment funds. We continue to look for ways to reduce the annual draw of investment income from these funds to 5.5% by
maximizing other funding opportunities and maintaining very tight control of operating costs. Fundraising activities for the coming year
will focus on public and private funding for projects associated with Alberta’s Centennial year in 2005 as well as opportunities to grow
our endowment funds by direct donations.
The Institute’s operating budget for 2005 can be summarized as follows:
Revenue:
Province of Alberta contract
Investment income allocation for operations
$ 2,738,000
from restricted funds 2,425,706
Fundraising 2,312,290
Admissions & memberships 1,152,660
Museum shop 650,000
New media initiatives 1,317,183
Other activities 589,877
$ 11,185,716
Expenditures:
President’s Office & Human Resources $ 655,040
Central Services 2,483,377
Collections care and maintenance 1,326,731
Program and Exhibit Development 2,373,686
Library and Archives 551,114
Museum shop 552,500
New media expenditures 1,317,183
Fundraising, marketing and communication 1,286,085
Depreciation and amortization 640,000
$ 11,185,716
The capital budget for the year totals $1,372,274. The most significant investments are $904,000 to be spent on the construction of new
compact storage units for the cultural history collections and approximately $278,300 to continue to develop and upgrade our computer
hardware and software systems.
The chief financial officer and senior management of the Institute have the responsibility for maintaining a sound system of internal control
that supports the achievement of the organization’s aims and objectives, whilst safeguarding the Institute’s funds and assets. The system of
internal controls is designed to manage rather than eliminate the risk of failure to achieve aims and objectives; it can therefore only provide
reasonable and not absolute assurance of effectiveness. This system of internal control is based on an ongoing process designed to identify
the principal risks to the achievement of the Institute’s aims and objective, to evaluate the nature and extent of those risks and to manage
them efficiently, effectively and economically. The Board of Governors recognizes the importance of risk management and internal control
and considers these issues on a regular basis during the year. The Board delegates matters concerning internal control and risk management
to the Audit and Investment Committee. The mandate for this committee includes responsibility for ensuring that appropriate systems exist
to identify, monitor and mitigate significant business risks. It also requires that the committee evaluate the appropriateness and efficiency of
systems of internal control particularly with regard to legal, ethical and regulatory requirements, organizational policies and procedures and
financial reporting. This committee also considers comments made by the auditors in their management letter and other reports. This
system of appropriate information systems, procedures and controls ensures that the information, used internally and disclosed externally,
is complete and reliable.
Glenbow Museum ANNUAL REPORT 2003/04 17