Detail: Anton Bruehl Boat hull c.1937 gelatin silver photograph National Gallery of Australia click detail to view full image

Objective
The National Gallery seeks to obtain and strategically manage the resources required to deliver agreed outputs and support its operations.

Strategies
The National Gallery obtains revenue through Commonwealth Government appropriation and through its commercial operations, sponsorship, and other fundraising activities. The Gallery manages its resources in order to maximise support for the Gallery’s objectives and strives to apply best practice policies and procedures associated with the provision of effective support services.

Financial Operations
Revenue from National Gallery operations in the year totalled $198.279 million including $138.440 million for the capital use charge and $18.383 million for a one-off adjustment associated with the recognition of the Gallery’s library collection. The operating revenue, excluding these sums, totalled $41.456 million comprising $25.484 million (61.5%) from the Commonwealth Government and $15.972 million (38.5%) from other sources.

Operating expenditure totalled $35.229 million, while the capital use charged payable was $139.049 million. Employee expenses totalled $13.666 million, up 9.2% over the previous year due to a program driven increase in the average full-time equivalent staff level from 221 to 234, the full year effect of salary increases payable from January 2000 and the conclusion of the Gallery’s staffing restructure. Supplier expenses increased by 4.9% to $14.334 million due principally to the increased costs of the major exhibitions program.

The net operating surplus, after payment of capital use charge and excluding the one-off inclusion of the value of the Research Library Collection, was $5.6 million. This surplus included works of art valued at $988,000 and donations of $169,000. The surplus is to be applied to the acquisition of works of art and the refurbishment of the Gallery building.

Works of art valued at $21.242 million were added to the Gallery’s collections during the year, with $14.717 million of this sum being payable in future years. Funds carried forward at the conclusion of the year included $11.205 million for the acquisition of works of art. In addition, the National Gallery of Australia Foundation carried forward the sum of $3.757 million. This sum includes donations for the purchase of works of art.

Commercial operations
The National Gallery Shop and major exhibition shops have an important role in generating revenue to support the Gallery’s programs and activities. During the year exhibition shops operated for the major exhibitions: Inside Out: New Chinese art, Federation: Australian art and society 1901–2001, and Monet & Japan. Merchandise was produced and bought for the shops to complement the themes of the exhibitions. The majority of retail revenue came from exhibition shops.

The National Gallery Shop supplements its distribution through mail order, e-commerce and wholesale sales. These methods ensure that the broadest audience is reached, allowing visitors access nationally and internationally to merchandise which is related to the collection.

The Gallery’s commercial operations are at the forefront of museum retailing including its exclusive merchandise designed and produced in-house.

Art Indemnity Australia
The Commonwealth Government’s art indemnity scheme, Art Indemnity Australia, enables significant works of art to be displayed in venues throughout the country. Indemnity of up to $1.5 billion at any one time was available to cover works of art included in major exhibitions in 2000–2001. Indemnity was provided for the exhibition Monet & Japan, which was organised by and displayed at the National Gallery from 9 March to 11 June 2001 and at the Art Gallery of Western Australia from 7 July to 16 September 2001.

Sponsorship
The National Gallery’s program this year was achieved with the generous support of many sponsors. As well as continuing to build on long-term partnerships, new partnerships were established during the year. The National Gallery acknowledges the following sponsors for their generous support:

• Sony Australia Ltd for sponsorship of Monet & Japan
• Seven Network for sponsoring of Monet & Japan and Federation: Australian art and society 1901–2001
• Qantas Airways Ltd for sponsoring of Monet & Japan, and the National Gallery’s Birthday Lecture
• Art Indemnity Australia for providing indemnity for Monet & Japan
• National Council for the Centenary of Federation for sponsorship of Federation: Australian art and society 1901–2001
• Macquarie Bank for sponsorship of the National Sculpture Prize and Exhibition
• Jim and Elaine Wolfensohn for their continued support of the Wolfensohn Gift
• Australian Air Express, Visions of Australia and Acoustiguide of Australia for supporting the National Gallery Travelling Exhibitions Program
• Art Exhibitions Australia, the Department of Foreign Affairs and Trade, the Australia Council (Aboriginal & Torres Strait Islander Arts Board), the International Olympic Committee, the Thomas Foundation, the Aboriginal and Torres Strait Islander Commission, the Northern Territory Government through the Department of Arts and Museums, and the Northern Territory Tourist Commission for assisting with the exhibition Australian Aboriginal Art in Modern Worlds arranged by the National Gallery with the collaboration of the National Museum of Australia and the Australian Institute of Aboriginal and Torres Strait Islander Studies
• National Australia Bank for sponsoring the exhibition Arthur Boyd and the exile of imagination whilst at Australia House, London
• Gordon Darling Australasian Print Fund for its continuing support of the development and promotion of the Australasian print collection, and the Fourth Australasian Print Symposium
• SMS Consulting, Qantas Airways Ltd, the Australian International Hotel School, the Arthur and Yvonne Boyd Education Centre at Bundanon, and the Rotary Club of Belconnen for supporting the 2001 Summer Scholarship;
• Maxwell Optical Industries Pty Ltd for assisting the Gallery’s photography collection
• Time Inc., New York, and Nikon-Maxwell Optical Industries for jointly sponsoring Going to Extremes: George Silk, photojournalist
• Thomas Foundation for supporting the travelling exhibition Keeping Culture: Aboriginal art to keeping places and cultural centres
• Canberra Southern Cross Club for supporting the Community Arts Program
• AppleCentre, Canberra, for supporting the multimedia component of exhibitions in the Children’s Gallery
• Hotel Kurrajong for assisting with accommodation for guest speakers
• Domaine La Chevaliére Wines for assisting with wines for the opening function for Drawn to Painting: Leon Kossoff drawings and prints after Nicolas Poussin
• Elderton Wines for assisting with wines for the opening function for Painting Forever: Tony Tuckson

Venue hire
The National Gallery provides a unique venue for corporate and individual functions. In 2000–2001, revenue from the hire of venues and facilities was $117,786 , an 11.7 per cent increase on the 1999–2000 figure of $105,265.

National Gallery of Australia Foundation
The Foundation is a non-profit organisation established to support the National Gallery. It is a company limited by guarantee under the Corporations Law. The Gallery controls the Foundation through its appointment of the Foundation’s board, and the Gallery’s Director, Council Chairman and Deputy Chairman are directors of the Foundation. The Gallery’s Financial Report incorporates the financial activities of the Foundation.

In 2000–2001 the Foundation received major donations from James Fairfax AO, David Coe, John Schaeffer, Kerry Stokes AO, Philip Bacon AM, Dick Smith AO and Pip Smith, and an anonymous donor.

The National Gallery of Australia Foundation Annual Report 2000–2001 details its operations and activities and lists all members. For further information contact the Development Office, telephone (02) 6240 6410.

National Gallery building
Guided by the findings of the May 1999 Building Audit Report and the principles endorsed in the June 2000, 2050 Building and Site Masterplan, the National Gallery worked closely with the National Capital Authority, architects and a range of specialist consultants to develop designs and specifications for a program of works to refurbish and modify the Gallery building and site. As well as addressing replacement of equipment, safety and code compliance needs, the Stage 1 modifications propose the creation of a new front entrance to the building, improved internal circulation and orientation for visitors, and changes to the site to improve visitor orientation and pedestrian safety. The planning and approval process from the proposed modifications proceeded throughout the year and included consultation about proposed modifications with the architect of the Gallery Building, Mr Col Madigan.

A $42.9 million project budget for the building refurbishment and enhancement project was endorsed by the Commonwealth Government during the year.

In response to allegations concerning the maintenance and operation of its air-conditioning systems the Gallery commissioned an independent investigation of the air-conditioning systems. An October 2000 report identified the existence of a number risk factors, made a number of recommendations in relation to the air-conditioning systems, and concluded that the risk factors did not manifest themselves as occupational health and safety (OH&S) incidents during the period of the investigation. The Gallery welcomed the findings of the report and has made significant progress towards implementing its recommendations, with a number of improvements and upgrades being made to air-conditioning plant and equipment.

In addition to undertaking its recurrent maintenance program, the Gallery initiated and implemented a significant program of repairs, maintenance and replacement of plant and equipment. Contracts were awarded to upgrade the Gallery’s security systems and to replace the Early Warning Information System (EWIS). Work continued to address water ingress issues, with a number of leaks being repaired and action taken to reduce condensation forming on some internal surfaces including walls and internal ramps.

American Friends of the National Gallery of Australia
The American Friends of the National Gallery of Australia (AFANG) is a charitable foundation established for American taxpayers wishing to support the National Gallery. AFANG facilitates gifts of cash, works of art and bequests to the Gallery from American taxpayers.

Information systems
Much of the year was taken up with consolidating the National Gallery’s IT environment following the new system roll-out in 1999–2000.

The Online Action Planning process saw the implementation of an IT forum, and an IT steering committee. The two committees consist of representatives from the Gallery’s programs and have assisted in giving online and IT planning a more strategic focus. This approach is consistent with the background of government online objectives and the Gallery’s strategic plan (to be published later in 2001).

Planning for and selection of an integrated customer information system, which will include ticketing, bookings, development, membership and point of sale systems, was well advanced, with implementation expected in the early part of the 2001–2002 financial year.

Interaction with other authorities
The nature of the business of the National Gallery requires it to deal with Commonwealth, state and local Government Agencies, as well as embassies, universities, galleries, museums, art schools, and other professional bodies within Australia and overseas.

Reference to the interactions that occurred in 2000–01 is made in the various sections throughout this report, where relevant.