SUMMARY OF THE CORPORATE PLAN FOR 2015-16 TO 2019-20 … · develop, maintain and make known throughout Canada and internationally, a collection of works of art, both historic and

SUMMARY OF THE CORPORATE PLAN FOR 2015-16 TO 2019-20 AND OPERATING AND CAPITAL BUDGETS FOR 2015-16

Summary of the Corporate Plan for 2015-16 to 2019-20 and Operating and Capital Budgets for 2015-16

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Nat iona l Ga l le ry o f Canada* 380 Sussex Dr i ve P .O. Box 427 , S ta t ion A O t tawa, ON K1N 9N4 613 .990 .1985 www.ga l le ry .ca

Note1: Throughout this document, references to the “National Gallery of Canada”, the “NGC” or “the Gallery” include the Gallery’s affiliate museum, the Canadian Museum of Contemporary Photography.

Note 2: For the purpose of this Summary of the Corporate Plan, the terms ‘partner’ and ‘partnership’ do not refer to partnerships in the legal sense, but rather to liaisons with other organizations with similar purposes to those of the Gallery, as provided for in the Museums Act, Section 6(1) (i) and (m).


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TABLE OF CONTENTS

1. INTRODUCTION ....................................................................................................................................... 4

2. CORPORATE PROFILE ........................................................................................................................... 5

3. STRATEGIC ISSUES FOR THE PLANNING PERIOD ......................................................................... 13

4. ASSESSMENT OF RESULTS ACHIEVED DURING THE 2014-15 FISCAL YEAR ............................. 14

5. STRATEGIC PRIORITIES FOR THE PLANNING PERIOD .................................................................. 16

6. FINANCIAL INFORMATION .................................................................................................................. 23


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1. INTRODUCTION

This Corporate Plan highlights the National Gallery of Canada’s (NGC or the Gallery) priorities, strategies, and performance measures for the 2015-16 to 2019-20 planning period, and describes the environment in which the Gallery operates. The capital and operating budgets for the 2015-16 fiscal year are also included.

Approved by the Board of Trustees on March 10, 2015, this Plan builds on previous ones with some modifications, including a new priority that addresses the goal of increasing attendance to the Gallery’s main facility in Ottawa. The Plan continues to articulate a major shift in the Gallery’s direction over the planning horizon, brought about by the need to reconcile significant changes in its financial situation with the organization’s commitment to achieve excellence in delivering its mandate, while achieving a balanced-budget.

Despite the fact that the Gallery has a very strong exhibitions program - recognized world-wide for its excellence and scholarship - attendance to the main facility in Ottawa has declined over the last few years. Factors such as slow tourism, exhibition popularity, admission fees, lack of awareness, and evolving trends in cultural consumption patterns may be at play.

Taking stock of this situation, the Gallery has adopted a visitor-centric approach that influences initiatives aimed at building audiences through products, services and key partnerships in Ottawa and across the country. The aim is to attract and engage more visitors while diversifying the audience. New initiatives that are being piloted or are under consideration include a Great Hall lounge with food service and animation, auditorium and bookstore revitalization projects, seasonally extended visitor hours, and programming changes.

Recognizing the emergence of declining attendance at the main facility as a major issue, the Gallery has modified one of its strategic priorities, replacing Raising the Gallery’s National Profile with Increasing Attendance. The priorities of Investing in Infrastructure and Diversifying Revenues remain unchanged.

Increasing Attendance

Expected outcome in 5 years: The excellence of the Gallery’s programming, and the quality of the visitor experience, attracts a large and diverse audience.

Investing in Infrastructure

Expected outcome in 5 years: The Gallery’s infrastructure - facilities, systems, business tools, partnerships and networks - supports the delivery of programs and services expected by Canadians of a leading national institution.

Diversifying Revenues

Expected outcome in 5 years: An organization-wide, revenue-conscious, entrepreneurial culture is established, resulting in new and diverse revenue sources that contribute to the institution’s financial sustainability and growth.

Strategies, performance measures, and targets for each strategic priority are further outlined in Section 5 of this document.


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2. CORPORATE PROFILE

MANDATE AND GOVERNING LEGISLATION

Pursuant to the Museums Act (1990), the NGC has been mandated to: develop, maintain and make known throughout Canada and internationally, a collection of works of art, both historic and contemporary, with special but not exclusive reference to Canada, and to further knowledge, understanding and enjoyment of art in general among all Canadians.

As a distinct legal entity, wholly owned by the Crown, the Gallery is subject to the Crown corporation accountability framework established under Part X of the Financial Administration Act. It also complies with other statutes, including the Official Languages Act, the Access to Information Act and the Privacy Act. While it functions at arm’s length from the Government in its daily operations, as a member of the Canadian Heritage Portfolio, the Gallery supports that Department in its mission of promoting “an environment in which all Canadians take full advantage of dynamic cultural experiences, celebrating history and heritage, and participating in building creative communities”, and contributes to the achievement of the Government of Canada outcome of “a vibrant Canadian culture and heritage”.

VISION

The National Gallery of Canada strives to provide Canadians with a sense of identity and pride in Canada’s rich visual arts heritage. Through its collection, onsite and travelling exhibitions, loans program, educational programs and publications, professional training programs, and outreach initiatives, the Gallery aspires to be a model of excellence in furthering knowledge of the visual arts, both at home and abroad. Through collaboration with national and international institutions, the Gallery seeks to make art accessible, meaningful, and vital to diverse audiences of all ages.

VALUES

Accessibility: Programs are developed with the public in mind – not only for visitors to the Gallery, but also for those across the country and abroad.

Excellence and Scholarship: The Gallery builds upon the high standards attained over the years in all its endeavours, from research to acquisitions, exhibitions, publications, public programs, and overall service standards.

Corporate Citizenship: The Gallery meets its public policy and legal obligations.

Leadership: The Gallery is a recognized leader in the national and international art museum communities.

Collaboration: The Gallery collaborates with the art museums network across Canada and abroad, and with its partners in the Government of Canada.

Valued Workforce: The Gallery values its workforce and creates a work environment in which people can maximize their potential and contribute fully to the success of the organization.

ADDRESSING GOVERNMENT PRIORITIES

The Gallery adhered to the Government’s broad cost containment measures announced in Budget 2013, which are still in effect. Moreover, the istitution continues to monitor its financial situation to arrive at a balanced budget each year, while fulfilling its mandate. Long-term financial sustainability remains a key priority.


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The Gallery will continue to take steps to ensure that public money is managed prudently. Oversight through an established framework of control is an integral component of the monitoring activities across the institution. The Gallery adheres to the 2015 government directive concerning travel, hospitality, conference and event expenditures and will ensure that it remains fully compliant with its provisions. Alternatives for service delivery and cost savings will be pursued wherever possible to ensure expenditures are based on necessity and demonstrate value for money.

As part of its contribution to support the Government’s priority in commemorating major historical milestones, in 2014, the Gallery organized and presented The Great War: The Persuasive Power of Photography. This exhibition of photographs, drawn from national and international collections, illustrated the many important roles that photography played during the First World War. The Gallery also hosted the screening of the series L’Apocalypse, la Première Guerre Mondiale.

The Gallery is fully committed to celebrating the 150th anniversary of the Confederation of Canada with special programming in 2017, including a reinstallation of the Canadian and Indigenous collection and a commemorative publication.

In support of the Government’s digitization strategy and as part of its commitment to make the national art collection accessible online, the Gallery continues its digitization efforts. To date, close to 75 per cent of the collection is digitized, and over 42 percent of the collection is available online.

The outcomes of the Gallery’s activities, whether undertaken in its Ottawa facilities or through outreach initiatives in institutions across Canada, dovetail those of the Department of Canadian Heritage, offering Canadians an array of cultural experiences such as outstanding artworks from the national collection.

HISTORY

The National Gallery of Canada was founded in 1880 by the then-Governor General the Marquess of Lorne, in concert with the Royal Canadian Academy of Arts. The federal government assumed responsibility for the Gallery with the enactment of the National Gallery of Canada Act in 1913 and has continued its stewardship through successive acts of Parliament.

On July 1, 1990, the National Gallery of Canada became a Crown corporation with the proclamation of the Museums Act, which also confirmed the Canadian Museum of Contemporary Photography (created in 1985 from the former Still Photography Division of the National Film Board) as an affiliate of the Gallery.


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GOVERNANCE

Figure 1: Crown Corporation Governance Model

Pursuant to section 88 of the Financial Administration Act, the Gallery is accountable to Parliament through the Minister of Canadian Heritage for the conduct of its affairs.

THE BOARD OF TRUSTEES

Under the Museums Act, the Gallery’s Board of Trustees serves as its governing body. The Board is accountable for the overall governance and stewardship of the museum.

The eleven-member Board, representing various regions of the country, is appointed by the Minister of Canadian Heritage, with the approval of the Governor-in-Council for a period not exceeding four years. Each trustee is eligible to serve three consecutive terms or in the case of the Chair and Vice-Chair, two consecutive terms in that role. If a trustee is not appointed to take office on expiration of the term of an incumbent trustee, the incumbent trustee continues in office until a successor is appointed.

The Crown corporation governance model establishes the Board of Trustees as independent from Management. The Board provides strategic direction and oversight to the Gallery with the assistance of six committees:

Acquisitions Audit and Finance Executive

Governance and Nominating Human Resources Programmes and Advancement

Each member of the Board has duties on three committees. The Chair of the Board of Trustees is the Chair of the Executive Committee and an ex-officio member of all other Committees. Each committee is governed by its own Terms of Reference.

Government of Canada Sets public policy objectives

Minister of Canadian Heritage The link between the Gallery and Parliament

Board of Trustees 11-member governing body appointed by the Minister, with the approval of the Governor-in-Council

NGC Management CEO - appointed by the Board of Trustees with the approval of the Governor in Council - and his management team are

accountable to the Board for advancing the Gallery’s strategic objectives and for its day-to-day operations


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Acquisitions Committee The Acquisitions Committee recommends policies and plans for the growth of the national collection, approves acquisitions on behalf of the Board valued between $100,000 and $1,000,000, and makes recommendations to the Board of Trustees for acquisitions valued at $1,000,000 or greater. The work of the Acquisitions Committee is supported by eight external advisors, who are appointed by the Board, following consultation with the Director and the Chief Curator. Drawing on their education, expertise and experience, those individuals offer advice to the Acquisitions Committee on whether proposed works of art should be acquired by the National Gallery of Canada. Audit and Finance Committee The Audit and Finance Committee serves as the Board’s advisory body on accountability and audit-related matters, ensures maintenance of sound internal controls, monitors the Gallery’s financial situation, and recommends specific courses of action to the Board, as required. Executive Committee The Executive Committee acts on behalf of the Board of Trustees between meetings of the full Board of Trustees. Governance and Nominating Committee The Governance and Nominating Committee seeks to enhance corporate performance by assessing and making recommendations regarding governance, corporate values, Board effectiveness and the recruitment of Trustees. Human Resources Committee The Human Resources Committee provides strategic direction and oversight to the management of the Gallery’s human resources. Programmes and Advancement Committee The Programmes and Advancement Committee serves as the Board of Trustees’ advisor on the general direction and promotion of the Gallery’s public programs, and supports the Board and Management in achieving greater self-sufficiency. Current Board of Trustees Chair

Michael J. Tims Calgary, Alberta November 22, 2012 to November 21, 2016

Vice-Chair

Harriet E. Walker Toronto, Ontario April 25, 2013 to April 24, 2017

Trustees

Paul R. Baay Calgary, Alberta June 27, 2013 to June 26, 2017 Jean-François Béland Gatineau, Quebec February 10, 2014 to February 9, 2018 Allan D. Benoit Winnipeg, Manitoba June 6, 2013 to June 5, 2017 Guy Bourgeois St-Bruno, Quebec October 4, 2012 to October 3, 2016 Linda Hutchison Kentville, Nova Scotia March 1, 2012 to February 29, 2016 Nezhat Khosrowshahi Vancouver, British Columbia May 16, 2013 to May 15, 2017 G. Howard Kroon Calgary, Alberta April 25, 2013 to April 24, 2017 Marsha Sobey New Glasgow, Nova Scotia November 1, 2012 to October 31, 2016


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THE MANAGEMENT The Board of Trustees delegates authority for day-to-day management of the Gallery to the Director and Chief Executive Officer (CEO), who is supported by three Deputy Directors and four Directors (see Figure 2). The Director and CEO is appointed by the Board of Trustees with the approval of the Governor in Council; he is accountable to the Board for the management of the Gallery's performance, long-term viability, and achievement of its objectives.

Figure 2: NGC Organizational Chart

The following represents the composition of the Gallery’s senior management team: Marc Mayer Director and Chief Executive Officer Jan. 19, 2009 to Jan. 18, 2014 Extended for a second term Jan. 19, 2014 to Jan. 18, 2019 Senior Management Team Jean-François Bilodeau Deputy Director, Advancement and Public Engagement Paul Lang Deputy Director, Collections, Research and Education and Chief Curator Julie Peckham Deputy Director, Administration and Chief Financial Officer Stephen Gritt Director, Conservation and Technical Research Sylvie Sarault Director, Human Resources Matthew Symonds Director, Corporate Secretariat and Ministerial Liaison Anne Eschapasse Director, Exhibitions and Outreach (as of December 7, 2015)

Deputy Director

Collections, Research and

Education, and Chief Curator

Director and CEO

BOARD OF TRUSTEES

Deputy Director,

Advancement and Public

Engagement

Director, Corporate Secretariat

and Ministerial

Liaison

Director, Human

Resources

Director, Conservation

and Technical Research

CEO, NGC Foundation

Deputy Director,

Administration and Chief Financial

Officer

Director, Exhibitions

and Outreach

Acquisitions Committee

Audit and Finance

Committee

Executive Committee

Governance and Nominating Committee

Human Resources Committee

Programs & Advancement

Committee


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PROGRAM ALIGNMENT ARCHITECTURE (PAA) The Gallery has four programs that are strategically designed to achieve its mandate:

Collection: The Gallery acquires art, conducts research and preserves the collection for present and future generations through comprehensive conservation initiatives.

Outreach: The Gallery exhibits art, educates and communicates the importance of the visual arts to Canadians from all walks of life and in most regions of the country.

Accommodation: The Gallery ensures building operations are carried out efficiently and sound investments are made in a capital infrastructure for facilities to be secure, suitable for the preservation and exhibition of the national collection, and safe for visitors and employees.

Internal Services: The Gallery provides for sound governance, effective management of its human and financial resources, and optimization of self-generated revenues in support of programs and initiatives.

The Gallery’s programs are key to the success of its mandate and consistent with the Government’s priorities for the Canadian Heritage Portfolio. Through them, the Gallery makes a significant contribution to the enrichment of the heritage and cultural life of Canadians.


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Program Al ignment Archi tectu re (P AA): Overv iew of M ain Programs, St rateg ic Pr ior i t ies and Outcomes

Government of Canada Outcome

A vibrant Canadian culture and heritage

Legislated Mandate

To develop, maintain and make known, throughout Canada and internationally, a collection of works of art,

both historic and contemporary, with special but not exclusive reference to Canada, and to further knowledge, understanding and enjoyment of art in general among all Canadians

Ultimate Strategic Outcome

Interest in, knowledge of and appreciation and respect for visual art through a collection of historic and contemporary works of art, programs and research that reflect a special but not exclusive perspective on

Canada

Programs C o l l e c t i o n O u t r e a c h A c c o m m o d a t i o n I n t e r n a l S e r v i c e s

Intermediate Outcomes for Each Program

and Sub-program

(5+ years)

Strong national

collection representing Canadian and

international visual arts for present and future

generations

Sub-programs:

Acquisitions Research

Preservation

Enhanced

understanding and enjoyment of art among

Canadians through dynamic national and

international programming

Sub-programs:

Exhibitions Education

Communications

Safe, secure and

accessible facilities for the national collection,

visitors and staff

Sub-programs:

Building Operations Capital Expenditures

Effective corporate

management practices and controls in place for

resources managed efficiently and

operations carried out effectively

Sub-programs:

Governance Administration

Revenue Generation

Strategic Priorities for the Planning

Period

and

Immediate Outcomes for Each Strategic

Priority (1 to 5 years)

Increasing Attendance The excellence of the Gallery’s programming and the quality of the visitor experience

attract a large and diverse audience.

Investing in Infrastructure The Gallery’s infrastructure - facilities, systems, business tools, partnerships and networks - supports the

delivery of programs and services expected by Canadians of a leading national institution.

Diversifying Revenues An organization-wide, revenue-conscious, entrepreneurial culture is established, resulting in new and

diverse revenue sources that contribute to the institution’s financial sustainability and growth.


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CANADIAN PHOTOGRAPHY INSTITUTE On November 27, 2015, the Gallery established the Canadian Photography Institute (CPI) as a department within the institution. The CPI is built on an important partnership that has grown between a key donor and the Gallery over the past decade. Through a tri-partite Memorandum of Understanding signed in 2015 by the donor, the Gallery and the NGC Foundation, the donor has committed to the regular transfer of significant photography collections to the Gallery over the next ten years. The integration of the donor’s collections into those of the Gallery will create one of the greatest and most comprehensive photography holdings worldwide - an internationally acclaimed collection of the history of photography from its origins to the present day. The Gallery’s CPI collection would form the foundation for an active research and resource institute; an increased capacity for research, along with programs and partnerships, will flow from its use. The CPI will serve as a resource centre for scholars of the history of photography – both international and Canadian - as well as for scholars, curators and artists from a range of related fields in the visual arts, history, architecture, media studies, and global cultural history. The programs, publications and databases of the CPI will be accessible to the public. Lastly, the Gallery will maintain and preserve this magnificent collection in perpetuity for the benefit of future generations. NATIONAL GALLERY OF CANADA FOUNDATION A registered charitable organization, the National Gallery of Canada Foundation dedicates its efforts to ensuring the long-term viability and success of the Gallery. The Foundation is focused on providing leadership on Major Gifts, Endowments, Planned Giving, and the Distinguished Patrons initiative. Managed by its own Board of Directors, the Foundation has raised almost $30 million in philanthropic gifts since its inception in 1997, of which nearly $14 million has been dedicated for endowment purposes.

The Board of Directors of the Foundation appoints the Chief Executive Officer, who is accountable for advancing the Foundation’s strategic objectives and for its day-to-day operations. Karen Colby-Stothart was appointed Chief Executive Officer of the National Gallery of Canada Foundation in July 2013. The Board of Directors of the NGC Foundation has ultimate authority over and responsibility for the Foundation’s investments. Investment decisions are delegated to a qualified investment manager retained by the Foundation, assisted by an Investment Committee that regularly reviews the Foundation’s Investment Policy and monitors the portfolio’s performance.


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3. STRATEGIC ISSUES FOR THE PLANNING PERIOD The strategic issues for the planning period are grouped under three broad categories: financial sustainability, attendance, and information management/technology. FINANCIAL SUSTAINABILITY In 2015-16, the Gallery’s parliamentary appropriations are expected to amount to $43.888 million (excluding $1.758 million in supplementary funding to cover accumulated severance that was paid out in 2015-16). This amount is inclusive of $8.0 million for the acquisition of objects for the collection and other costs attributable to this activity. Permanent capital appropriations are at a base annual level of $1 million, while appropriations for operating expenses amount to $34.888 million. Capital appropriations of $1 million for 2015-16 and future years are allocated on a risk-basis to address emerging issues associated with an aging building - now in its 27th year of operation - and to remain compliant with occupational health and safety regulations. The demand for investment in life-cycle maintenance and repairs to the building and mechanical systems will continue to increase. Escalating construction costs, increased project scope and the identification of additional projects over time, continue to put pressure on the capital envelope: the Gallery will utilize all avenues available to secure the necessary funding. While the Gallery seeks long-term financial sustainability, revenue-generation remains a high priority for the Gallery. Concerted and focused efforts to secure significant and long-term sponsorships to support programming will be maintained. The Gallery’s 2017 initiatives will require a reallocation of existing resources, or contributions from individuals, corporations and foundation. ATTENDANCE Despite the fact that the Gallery has a very strong exhibitions program - recognized world-wide for its excellence and scholarship - attendance to the main facility in Ottawa has declined over the last few years. Factors such as slow tourism, exhibition popularity, admission fees, lack of awareness, and evolving trends in cultural consumption patterns may be at play. Work is underway to address this situation. In 2015-16 and onward, the Gallery will continue mobilizing its resources to broaden its appeal by ensuring it clearly understands and responds to visitors’ expectations. The goal is to reverse the trend of declining attendance such that it stabilizes at 350,000 to 400,000 visitors by the end of fiscal year 2019-2020. The 2015-16 fiscal year will bring a change in attendance as the Gallery reached its target of 315,000 visitors by mid-December and projects the final attendance to be close to 400,000 visitors. The commitment to implement a strong visitor-centric culture will inform decisions. Better integrated planning for programming, cultivating relationships with repeat visitors, providing more convenient access and better amenities should have a positive impact on attendance. As well, marketing and communications strategies that can increase visibility and awareness of the “brand” are under development. INFORMATION MANAGEMENT AND INFORMATION TECHNOLOGY Recognizing the value of investments in information management and information technology (IM/IT), the Gallery has allocated resources to advance a number of key IM/IT projects. The Gallery continues to modernize a number of its key IT platforms, including migration to virtual servers, replacement of tape backups with disk backups, life-cycle recapitalization in security control monitoring and surveillance systems. Projects to implement a Digital Asset Management System and SharePoint are at 75 percent completion: implementation will continue throughout 2015-16 and beyond. Resources are required to continue the evolution of key IM/IT infrastructure systems, to leverage opportunities for system integration, and improve collaboration across the workforce.


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4. ASSESSMENT OF RESULTS ACHIEVED DURING THE 2014-15 FISCAL YEAR In 2014-15, the Gallery successfully advanced the three strategic priorities it had set for itself: Raising the Gallery’s National Profile; Investing in Infrastructure; and Diversifying Revenues. The following are the Gallery’s results in advancing these priorities:

Raising the Gallery’s National Profile An impressive exhibition program was featured at the Gallery during 2014-15. The 2014 summer show, Gustave Doré (1832–1883): Master of Imagination, organized in collaboration with the Musée d’Orsay, was followed by Shine a Light: Canadian Biennial 2014, which highlighted recent acquisitions to the Canadian Contemporary, Indigenous and Photography collections. Very well-received by art critics and very well-attended, the retrospective exhibition Jack Bush, which was presented in Ottawa during the fall-winter season, offered a complete picture of this Canadian artist who garnered international recognition as an abstract painter. The fiscal year concluded with M.C. Escher: The Mathemagician, an exhibition of one of the world's most famous and recognized artists. As part of its contribution to support the Government’s priority of commemorating major historical milestones, such as the 100th anniversary of the declaration of the First World War, the Gallery organized and presented The Great War: The Persuasive Power of Photography during the summer of 2014. In 2014-15, the Gallery welcomed significant donations that confirmed its reputation of excellence amongst major Canadian and foreign collectors, including an anonymous donation of an exceptional photography collection valued in excess of $15 million. The Gallery shares its collection through its NGC@ partnerships, unique collaborations with the Art Gallery of Alberta in Edmonton, the Museum of Contemporary Canadian Art in Toronto and the Winnipeg Art Gallery. Through these distinctive arrangements, the Gallery presents selected works from the national collection in several of the country’s metropolitan areas, allowing Canadians in key centres an opportunity to experience their national collection where they live. In 2014-15, eleven shows were presented at the three partner museums. Additionally, six other Canadian museums and two British institutions hosted NGC travelling exhibitions during the year. Year-end annual attendance was 292,397 visitors. The Gallery continued to excel in its efforts to engage audiences through social media and other digital platforms. Virtual attendance for the year reached 3,941,000 user sessions by March 31, 2015, compared to 3,542,000 for the last fiscal year, an increase of 11 percent. Social media activity across the Gallery’s Facebook, Twitter and YouTube platforms also increased, with 483,700 engaged people (active users) as at March 31, 2015, compared to 321,268 in the last year, an increase of 50 percent. Efforts to raise its profile, while maintaining excellence, have earned high praise for the Gallery. In the fall of 2014, the NGC Magazine won the 2014 Canadian Online Publishing Award (COPA) for Best Corporate Website – consumer niche, a recognition by the digital industry for its interesting and intelligent content as well as its responsive platform.

Investing in Infrastructure

During the review period, the Gallery continued to undertake initiatives to improve the overall visitor experience, developing a vision, establishing an appropriate governance structure, and gradually implementing changes to positively impact the onsite and online visitor experience. For example, in the summer of 2014, the Gallery commissioned a survey of visitors to the National Capital Region to measure the awareness of the Gallery amongst tourists and to better understand the tourist profile. Analysis of this data will inform future programming and marketing decisions. To further animate the facility, a café was installed in the Great Hall as a seasonal pilot throughout December 2014; its impact will be taken into consideration in future planning.


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In parallel with initiatives to improve the overall visitor experience, the Gallery launched the Bookstore revitalization project, a major capital renovation initiative to remodel the store’s footprint so as to: maximize sales potential and profitability; reduce day to day operating costs; and enhance the visitor experience. Estimated to cost $2,000,000 over two fiscal years, this project will be the first major renovation beyond paint and carpet replacement in the Bookstore’s 27 years of operation. The Gallery undertook further studies of the exterior safety and the electrical distribution system, paying attention to previously identified code-compliance recommendations. Resultant recommendations will be prioritized and incorporated into the Long Term Capital Plan. The Gallery’s initiatives in support of its information management/information technology (IM/IT) strategic plan have progressed very well. By March 31, 2015, implementation of the SharePoint document management system reached 75 per cent completion, with pilot testing underway for live implementation across six departments. The institution is on target to achieve its stated objectives and key deliverables by late 2015-16.

Diversifying Revenues The Gallery continues to invest significant time and energy to secure its financial sustainability. For example, the Gallery’s inaugural naming of capital space took place during the year. In February 2015, the National Gallery of Canada Foundation announced the receipt of an exceptional gift of $2 million from the Donald R. Sobey Family Foundation to establish the Canadian Artists in Venice Endowment. This fund will provide vital financial support to Canadian artists representing our country at the Venice Biennale in Italy, the most important recurring international gathering of the contemporary art community. In consideration of the gift, the Gallery took the unprecedented step of naming a major space within its facility after the Donald R. Sobey family. Overall, by March 31, 2015, the Gallery’s operating revenue, sponsorship and contributions totalled $8,024,000 ($11,973,000 when contributed items for the collection valued at $3,949,000 are included). This amount represents an increase of 7 percent when compared to the annual target of $7,515,000. Self-generated revenues - consisting of admission sales, audio-guide rentals, parking, memberships, bookstore and publishing sales and rental of public spaces - totalled $5,768,000. By fiscal year end, the Gallery exceeded its target of $5,565,000 in self-generated revenues by 4 percent. As at March 31, 2015, revenues from sponsorships, annual giving, and contributions (including contributed services and those from the NGC Foundation) totalled $2,256,000 ($6,205,000 when $3,949,000 in contributed items for the collection is included). This amount represents an increase of 16 percent when compared to the annual target of $1,950,000. The Gallery monitored revenues and expenditures closely to ensure the 2014-15 fiscal year closed with a balanced budget.


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5. STRATEGIC PRIORITIES FOR THE PLANNING PERIOD OVERVIEW The Gallery faces a challenging financial climate over the planning period. As the cost of doing business rises each year and the government freeze on operating budgets is still in effect in 2015-16, the Gallery must explore ways to diversify revenues beyond its traditional sources. It is within this context that the Board and Management have decided to maintain focus and efforts on rethinking key aspects of the Gallery’s business approach – work that was initiated in 2013-14. Specifically, over the planning period, the Gallery will aim to foster improved services to Canadians, appeal to a much broader public beyond major retrospective exhibitions, and adopt a more diverse funding structure for long-term sustainability. Each of the strategic priorities is elaborated in detail below. However, in considering these priorities, it is important to remember a series of fundamental principles - “non-negotiable” qualities of the Gallery’s mission that cannot be compromised and that constitute its robust brand.

Art. The Gallery is a museum dedicated to the visual arts. Although the field of art is broader than the collecting and exhibiting areas covered by the Gallery, if the institution grows, it will be in the direction of art as its definition evolves, rearticulated by succeeding generations. Excellence. The Gallery is exclusively concerned with the most outstanding examples of the visual arts made by the most exceptional visual artists. The Gallery’s relevance and usefulness is predicated upon its being uncompromising in this regard. The quality of the institution’s work and scholarship is also covered by this fundamental principle. Creativity. The Gallery believes that art plays a leadership role in the creative economy, not only as a pure manifestation of intellectual and cultural advancement, but as a practical source of ideas, inspiration and example for creative pursuits of all kinds in every field that values innovation. Public. As a national institution, one of the Gallery’s key roles is to serve the public. Seeking to understand the interests and needs of various audience segments is important to design relevant experiences, foster engagement, attract new public and retain repeat visitors. Professionalism. The work undertaken by the National Gallery of Canada, the judgments it makes regarding individual objects and the information it produces on the subject of art, are the responsibility of accredited, experienced and well-trained professionals with expertise in the various fields of art that are covered by the Gallery’s mandate. Objectivity. The Gallery was established and is maintained by the Government of Canada to provide the Canadian public with access to the finest works of art as these are identified by impartial and non-partisan professionals who are exclusively concerned with excellence in art and accuracy in scholarship. Pan-Canadian. Although the National Gallery of Canada is located in Ottawa, it serves the entire country and is always looking for new ways to expand and extend its services throughout Canada, while honourably representing the Canadian perspective on art for the world. Diversity. The Gallery believes that all forms of visual art-making should be represented in both its collection and exhibition program to the limits of its mandate, expertise and capacity. Moreover, the Gallery strives to ensure that the full variety of Canada’s population feels at home and is represented in the Gallery’s collections and displays as the institution makes every effort to be accommodating and inclusive. Access. The Gallery strives for everyone to have access to Canada’s national art collection and to the information about art that it generates. While ensuring adequate protection of the collection and


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the security of visitors, the Gallery provides direct and digital access to serve audiences with various interests in multiple locations. Knowledge. The Gallery is a center of knowledge and learning, not only about art, but also about every aspect of human culture and history to which art bears witness. Security. Although the Gallery is committed to provide access and share the collection, the institution will not put Canada’s national treasure at risk of damage or destruction, whether in the galleries, or on loan. Every precaution is taken to ensure that the works in the Gallery’s care will survive in the most ideal state of preservation possible, for the pleasure and edification of present and future generations.

As the Gallery plans, it is important to recognize the unique circumstances within which the institution operates. These conditions can be described by the following realities, seen both as challenges and opportunities:

• More effort is required to build a commonly shared understanding of the usefulness of art, its richness as a source of information and knowledge about the past and the present, its unique role as an investment, its influence as a field of study and its exemplary status within the creative economy as a source of pure and relatively unrestricted creativity.

• Increased advocacy is required to ensure that the basic skills necessary to experience the fullest pleasure from direct contact with art is an integral part of the standard educational curriculum in Canada.

• Information about international art is produced primarily by foreign sources, while Canadian sources are often uniquely preoccupied with contemporary Canadian art. This may give a false impression that Canadian art is a separate and/or lesser category within an art history. Moreover, one might erroneously conclude that Canadian expertise on international art does not exist. This situation challenges the Gallery to work towards better recognition of Canadian art and the art expertise Canadians offer within the broader context of art history.

• Broadening access to art, particularly in smaller and rural regions of Canada, remains a challenge. As major art museums in Canada are clustered in large metropolitan centres, direct access to art in other areas of the country is often limited and inconsistent. In addition, access to Canadian art online is still relatively new and is frequently restrained by copyright and other legislation peculiar to Canada; and general interest books on various aspects of Canadian art addressed to a broad audience are relatively rare.

• Because of Canada’s geographic size and its modest population, its cultural institutions are often challenged in their ability to access wealth and earned income to the same extent as their foreign (notably American) counterparts. Research indicates that, because of Ottawa’s moderately-sized population, national cultural institutions situated therein must temper their expectations with respect to visitorship and the revenue it can generate.

• While federal appropriations to the institution have remained relatively stable, given the rising cost of doing business, in real dollars, the Gallery’s spending power is declining: finding reliable, long-term, alternative sources of revenue is vital to the institution’s stability and growth.

Given these fundamental principles and the circumstances in which the institution operates, the organization will concentrate on three closely-interrelated, strategic priorities that it believes will help stabilize its revenue and grow its services in the long term, while correcting some of Canada’s disadvantages with respect to the full exploitation of art as a rich national resource.


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The following section highlights the three strategic priorities and their expected outcomes for 2015-16 through to 2019-20.

Increasing Attendance Expected outcome in five years: The excellence of the Gallery’s programming and the quality of the visitor experience attract a large and diverse audience. Attendance to the Gallery’s main facility has been in decline since 2001, a trend noted in visitorship to both the special summer exhibitions and to the permanent collection. This trend is coupled with major shifts in the demographic profile of visitors to the Gallery. Together, these changes challenge the institution’s fundamental ability to fulfill its mandate, and impede its ability to generate revenue. Among the indicators of success for the institution is the number of visitors and the extent to which the public learn from and appreciate its collection and programs. To that end, the Gallery will invest efforts to reverse the trend of declining attendance to its main facility in Ottawa, such that it stabilizes at 350,000 to 400,000 visitors by the end of fiscal year 2019-2020. It is paramount that Canadians and tourists are aware of the Gallery and what it does. To that end, resources will be allocated over the planning period to ensure that the visitor experience is relevant and meaningful. Among the strategies to be implemented are a more visitor-centric approach to exhibition planning; a better understanding of visitors’ profile; and a stronger public awareness of the Gallery’s offerings. Amenities and services that contribute to visitors’ wellness are to be reviewed with the goal of increased convenience, comfort and engagement, including a rethinking the hours of operation, expanded food and beverage services and the use of new didactic technologies and techniques. The Gallery needs to make special and concerted efforts to engage stakeholder communities of all kinds situated in the National Capital Region and those who visit the area. Although the organization has achieved tremendous success in raising the profile of art in Canada and in providing access to the national collection, both nationally and abroad, its capacity to provide a vibrant program and high quality visitor experience is fundamental to the fulfillment of its mandate. Accordingly, over the planning period, increasing attendance by reaching a wide and diversified public will be a primary objective for the Gallery.

Investing in Infrastructure Expected outcome in five years: The Gallery’s infrastructure - facilities, systems, business tools, partnerships and networks - supports the delivery of programs and services expected by Canadians of a leading national institution. Traditionally, the word “infrastructure” is used to describe the physical plant but the infrastructure at the Gallery’s disposal is actually broader and reaches much further than the building, and includes for example, its network of Canadian and international museum partners, its list of members, donors and sponsors, its direct Internet access to millions of Canadians and foreigners through the website and direct e-bulletins, etc. The Gallery has yet to fully exploit these valuable networks as part of its “soft infrastructure” with potential to raise the Gallery’s profile, extend the reach of its services and diversify its revenue sources.

Notwithstanding this expanded definition of infrastructure, the Gallery needs to improve and expand its physical plant; be it in climate control or visitor experience, it also requires attention over the next five years. From replacing the windows in the Colonnade to the reinstallation of the Canadian collection in the galleries in time for the 150th anniversary of Confederation in 2017, the physical plant will need Management’s attention over the next five years as much as the exploitation of the Gallery’s networks.


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The important key goal is to have a more holistic and comprehensive infrastructure and to understand how it can all work together for the benefit of the Gallery’s mission and Canadians.

Diversifying Revenues Expected outcome in five years: An organization-wide, revenue-conscious, entrepreneurial culture is established, resulting in new and diverse revenue sources that contribute to the institution’s financial sustainability and growth. The increasing cost of doing business challenges the organization’s stability and impedes the Gallery’s capacity to respond to the ever-changing expectations of art lovers and Canadians in general. Traditionally, the organization relies on two sources of funding, federal Government appropriations at around 80-85 per cent and earned and contributed income at approximately 15-20 per cent. However, the Gallery needs to continue to develop in the areas of philanthropy, sponsorship and commercial activities.

Philanthropy is an area of growth that the Gallery has only begun to develop and the limits of which it has yet to fully test. The institution must invest in its ability to appeal to Canadian and foreign philanthropists with a special interest in Canada. It is also important that the organization concentrate on improving and expanding the network of Distinguished Patrons and other art-loving individuals who can support the Gallery through the NGC Foundation, whether through naming opportunities or new fundraising initiatives that the NGC Foundation will undertake with the Gallery’s support and guidance.

The traditional museum-sponsor relationship tends to focus on credited support for special exhibitions, especially high-profile, major exhibitions. Where appropriate, the Gallery will broaden its efforts to seek sponsorships for a wider range of its activities, not only for smaller exhibitions, but for public programs as well. Through relationships with key partners, efforts to encourage increased and long-term support that can cross over into product and service development will continue.

Another area of potential revenue - the least developed in the Gallery’s case - is commercial activity, a potentially profitable zone with broad possibilities for growth, including in the realm of audience development.

The Gallery will continue to find opportunities to reinforce and exploit its strong brand in an effort to raise its national profile and secure the means to improve and extend its services. STRATEGIES, PERFORMANCE MEASURES AND TARGETS In recognition of the challenges ahead, and the fiscal restraint required to address them, seven strategies have been devised to meet the expected outcomes of each of the three strategic priorities.


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INCREASING ATTENDANCE Expected Outcome in 5 years

The excellence of the Gallery’s programming and the quality of the visitor experience attract a large and diverse audience.

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STRATEGY 1: Strengthen the visitor-centric approach to enhance the overall visitor experience and attract larger audiences. Accountable: Deputy Director, Advancement and Public Engagement Performance measures: Attendance to the Gallery’s main facility in Ottawa stabilizes at 350,000 to 400,000 by the end of the planning

year 2019-20

Greater public awareness and visitor satisfaction about Gallery’s programmes

Extended seasonal hours are introduced for summer 2015, followed by an evaluation of impact

Feasibility study on ticketing system is completed in 2015-16

Improvements in signage (digital, didactic, way-finding) continue to be introduced

Comprehensive surveys on the visitor experience are tested and implemented (e.g. local community; national awareness; tourist awareness)

Audit on Education is completed and recommendations are addressed.

STRATEGY 2: Establish the Gallery as the widely-recognized number 1 art collecting institution in Canada Accountable: Deputy Director, Collections, Research & Education and Chief Curator Performance measures: Number of significant works of art with the score of 3 and 4 acquired by the Gallery

Scale 1-4 for Acquisitions

4 Outstanding work of art - highest significance and importance (absolutely “must have” in the national collection) 3 Excellent work of art - Very significant for the national collection (fills the gap within a strength of the collection) 2 Significant work of art (enriches a strength of the collection) 1 Desirable work of art due to its scholarly and documentary value

STRATEGY 3: Align the Gallery’s programming to celebrate Canada’s 150th anniversary of Confederation in 2017 Accountable: Director, Exhibitions and Outreach, assisted by the Deputy Director, Collection, Research & Education and Chief Curator Performance measures: The Canadian art collection in the galleries is reinstalled by 2017

A commemorative publication, highlighting works from the Canadian Art collection is issued by 2017

A special exhibition, investigating Canada's cultural identity, is staged in 2017


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INVESTING IN INFRASTRUCTURE Expected Outcome in 5 years

The Gallery’s infrastructure - facilities, systems, business tools, partnerships and networks - supports the delivery of programs and services expected by Canadians of a leading national institution.

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STRATEGY 4: Identify and address facility deficiencies Accountable: Deputy Director, Administration & CFO Performance measures: Safe, suitable and accessible facilities that meet the operating and legislative requirements of the Gallery.

A risk-based long-term capital plan is kept current, and deficiencies and code compliance repairs are

addressed with available resources Entire facility is reviewed for code compliance and building deficiencies by March 2018

Investigation of deficiencies identified in the 1st phase of code compliance review is conducted by March

2016

Phase 2 of code compliance Project (fire system, exterior safety) is completed by March 2016

Projects to address higher risk elements of exterior site hazards are completed by March 2016. Remaining deficiencies will be incorporated into the Long Term Capital Plan.

Study of electrical distribution system to ensure safety and efficiency, including short circuits, arc flash and protective device study. The electrical study recommendations will be prioritized by risk, and projects will commence in 2015/16 to address deficiencies.

STRATEGY 5: Implement key foundational pieces of the IM strategic plan, as well as systems, tools, policies and processes to support “paperless” operations Accountable: Deputy Director, Administration & CFO and Director, Conservation and Technical Research Performance measures: SharePoint with a document management system is fully functional and in use by March 2016

Retention and Disposition Schedule is in use by March 2016

Vital Records initiative is implemented by April 2016

IM Policy is fully enacted by March 2016.

3,000 digital images of the Gallery’s works of art are added to the Digital Asset Management system each

fiscal year


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DIVERSIFYING REVENUE Expected Outcome in 5 years

An organization-wide, revenue-conscious, entrepreneurial culture is established, resulting in new and diverse revenue sources that contribute to the institution’s financial sustainability and growth.

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STRATEGY 6: Strengthen existing initiatives and develop new ones to increase self-generated revenues to support the operations Accountable: Deputy Director, Advancement and Public Engagement/Director, Exhibition/Deputy Director Administration & CFO/NGC Foundation CEO Performance measures:

Investments in strategic partnerships to support building a network of new audiences are assessed, and

initiatives launched when benefits outweigh costs

Investments in profit-oriented business lines are assessed to ensure payback periods are reasonable in the context of the Museum Sector

In 2015-16, established target of $ 5,498,000 is met for self-generated revenues. STRATEGY 7: Develop sustainable and effective programming models for the outreach program Accountable: Director, Exhibitions & Outreach Performance measures:

Partners are engaged in an outreach evaluation process in 2015-16

A fiscally-responsible framework for outreach is ratified by the end of FY 2015-16

A comprehensive National Outreach Strategy for the Gallery is drafted by November 2016


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6. FINANCIAL INFORMATION HUMAN RESOURCES On March 31, 2016, the Gallery expects to have 230 full-time equivalents (FTEs), a level of resources that is consistant with the Gallery’s established strategic priorities related to improving visitor experience, audience building, and revenue diversification. The majority (79 per cent) of the Gallery’s employees is represented by two unions: the Professional Institute of the Public Service of Canada (PIPSC), which includes 18 employees, and the Public Service Alliance of Canada (PSAC), which includes 195 employees. The remaining complement of the Gallery’s staff constitutes unrepresented workforce and its management cadre. The collective agreement with PSAC expired on June 30, 2013; on December 17, 2014 a four (4) year agreement was ratified by PSAC. Additionally in 2014, a new four (4) year agreement with the PIPSC was negotiated, six months prior to the expiry of the previous agreement. Given the completion of negotiations with both unions during 2014, the labour relations landscape should be very stable until 2017. FINANCIAL RESOURCES The Gallery receives annual appropriations from the Government of Canada, which it supplements through revenue-generating activities. It also receives contributions from the National Gallery of Canada Foundation, other foundations, corporations and individuals in support of projects, acquisitions, and programming.

Resource Base for Operations and Art Acquisitions For 2015-16, the Gallery’s parliamentary appropriations are expected to be $43.888 million, excluding $1.758 million in supplementary funding for accumulated severance that was paid out in 2015-16. This amount is inclusive of $8 million for the acquisition of objects for the collection and other costs attributable to this activity. Permanent capital appropriations are at a base annual level of $1 million, while appropriations for operating expenses will stabilize at $34.888 million beyond 2015-16. Figure 4 illustrates the Gallery’s resource base for the fiscal year 2015-16 for operations and art acquisitions.

Figure 4: Resource Base for Operations and Art Acquisitions, 2015-16

69%

15% 11%

5% Appropriations forOperating and CapitalAppropriations for ArtAcquisitionsSelf-GeneratedRevenueContributions


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Revenue, Sponsorship and Contributions The Gallery plans for self-generated revenue, sponsorship and contributions from third parties to achieve a balanced budget; these sources of funds generally account for 15 and 20 per cent of the resource base. Many factors, including public response to the summer exhibition, influence revenue, sponsorship and contributions annually. For 2015-16, the Gallery estimates generated-revenue (i.e., bookstore and publishing, admissions, parking, memberships, sponsorships, contributions and donations in cash) at $8,898,000, which represents an increase of $874,000 when compared to the 2014-15 actual of $8,024,000 (excluding $3,949,000 in contributed items for the collection). The estimated increase is based primarily on forecast attendance to the Gallery’s 2015 summer exhibition.

Operating Budget The Gallery continues to face escalating non-discretionary costs associated with operating and maintaining its facilities and ensuring the protection of the collection. The source of these pressures relates to price increases for utilities and services from major outsourced providers. Likewise, mounting costs for transportation, exhibition installations and insurance further strain the resource base. The Gallery’s non-discretionary costs for its Accommodation program, which includes facilities, payments in lieu of taxes, security and amortization, require $20.700 million of its operating budget ($14.551 million excluding amortization). Funding for these non-discretionary expenses is not indexed against inflation. Internal services include administration and costs to generate revenue, and require 18 per cent ($9.170 million) of the Gallery’s budget. The remainder of the Gallery’s resource base is used to support core activities related to Outreach (28 per cent, $13.994 million), and building the Collection (13 per cent, $6.622 million), excluding the cost to acquire objects for the Collection. Figure 5 below illustrates the program alignment of the Gallery’s resource base for the fiscal year 2015-16.

Figure 5: Expenses by Program, 2015-16, Excluding Art Purchases For 2015-16 and future years, management will continue optimizing its operations through key investments in technology enablers such as Digital Asset Management and SharePoint systems, mobile technology in the workplace, and replacement of legacy enterprise software to improve business analysis and decision support. All resource allocations will be closely scrutinized and investment opportunities will be prioritized to achieve a balanced budget. The Gallery will re-examine its current revenue-generating opportunities to ensure that strategies in place to attract and engage new audiences also maximize revenue potential.

41%

18%

28%

13%

AccommodationInternal ServicesOutreachCollection


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The strategic initiatives in development include a Great Hall lounge with animation, review of on-site food services, auditorium and bookstore revitalization, increasing visitor access hours during peak seasons, and seasonal animation of the Plaza. The Gallery will reallocate resources, if required, to respond to the changing needs of the organization.

Capital Budget

Capital appropriations of $1 million for 2015-16 and future years are allocated on a risk-basis to address emerging issues associated with an aging building, and to remain compliant with occupational health and safety regulations. As the main facility ages, now in its 27th year of operation, the demand for investment in life-cycle maintenance and repairs to the building and mechanical systems will continue to increase. During 2013-14, the Gallery undertook the Great Hall roof and window replacement project: the most significant, technically challenging and costly project since the construction of the main facility. The Great Hall roof and window replacement project represented only 25 per cent of the total skylight and window replacement work required throughout the entire building. The next area for glass replacement work will be the main entrance and the colonnade, which require an estimated investment of $8.6 million. The project would address longstanding water leakage issues. Without replacement, the Gallery expects to experience additional heating loads, excessive condensation and icing in winter, along with run-off into heating troughs that will reduce the lifespan of heaters, and compromised environmental controls. The Gallery will carry forward the project in the Long Term Capital Plan (LTCP) until funding has been identified. The LTCP addresses risks to building operations through life cycle recapitalization of architectural, mechanical and electrical systems, and also includes specific projects that address risks related to code compliance, health and safety, and protecting the collection. The Gallery updates its LTCP annually with revised cost estimates, of projects prioritized after careful consideration of risk of deferral and affordability. Escalating construction costs, increased project scope and the identification of additional projects over time, continue to put pressure on the capital envelope. The Gallery will utilize all avenues available to secure the necessary funding.

Capital Projects Planned for 2015-16 Fiscal Year In 2015-16, the Gallery’s available capital funds consists of $5,816,022, broken down as follows:

• $4,816,022 in deferred appropriations for the purchase of capital assets, which includes the reallocation of $1,250,000 from operating funds to capital, which took place in 2012-13 as well as $1,170, 000 in 2014-15; and

• Annual appropriations of $1,000,000. Of the available $5,816,022, the Gallery estimates that $3,583,727 (including contingencies) will be required to complete projects that are already in progress and projects approved in 2015-16, including:

• Replace/upgrade sloped roof above office windows on level 200 NW • Replace 600V switchgear circuit breaker (CB12) • Replace Variable Speed Drive on Fan 13 (Special Ex) • Replace Variable Speed Drive on Fan 5 (Permanent Collection galleries) • Upgrade dimming systems in Auditorium and Great Hall • Replace garbage compactor • Install/replace large isolation valves on the heating system • Replace exterior exhaust piping for the diesel generators • Upgrade diesel generators day tank and internal piping


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• Repairs and replacement parts for the two diesel generators • Refurbish Up-Pup Personnel Lift • Office furniture • Lift auditorium • Bookstore professional services • Bookstore revitalization • Exterior plaza • Benches for special exhibitions and prints, drawings and photographs gallery • Roof above parking garage • Re-lamp special exhibitions and prints, drawings and photographs gallery • Wayfinding • IT upgrades • Security upgrades

KEY ASSUMPTIONS IN CORPORATION’S FORECAST Parliamentary appropriations include all amounts approved for the 2015-16 fiscal year. Revenue projections are presented in a conservative manner based on the planned exhibitions for their respective years. The expenditures are forecast by program, and so are allocated resources to achieve the stated priorities and the strategies outlined above. This approach also considers historical spending, and the Gallery’s commitment to balance its budget each year of the planning period. PUBLIC SECTOR ACCOUNTING STANDARDS (PSAS) In April 2013, the Canadian Accounting Standards Board (AcSB) and the Public Sector Accounting Board (PSAB) released the Statement of Principles - Improvements to Not-for-Profit Standards (the “SOP”), applicable to private and public sector not-for-profit organizations that use the not-for-profit standards as their primary source of generally accepted accounting principles. The SOP represents 15 key principles that the AcSB and the PSAB expect to use as a framework for upcoming proposals to amend their respective not-for-profit accounting standard principles. The Gallery will monitor the development of these proposed improvements and the potential impact on the presentation of its financial statements.


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FINANCIAL STATEMENTS

The figures in the above table are represented on an accrual basis.

13-14 14-15 15-16 16-17 17-18 18-19 19-20Actual Actual Planned Planned Planned Planned Planned

Assets Current :

Cash and cash equivalents 7,106$ 6,094$ 8,071$ 8,015$ 7,912$ 7,361$ 7,278$ Restricted cash and cash equivalents 10,924 - - - - - - Investment 5,100 6,641 6,641 6,641 6,641 6,641 6,641 Restricted Investment - 9,452 6,637 6,637 6,637 6,637 6,637 Accounts receivable 1,617 1,324 1,735 1,770 1,805 1,841 1,878 Inventory 542 547 557 568 579 591 603 Prepaid expenses 1,456 1,445 1,587 1,619 1,651 1,684 1,718

26,745 25,503 25,228 25,250 25,225 24,755 24,755

Collection 1 1 1 1 1 1 1 Capital Assets 89,399 84,400 81,833 76,683 71,533 66,383 61,233

116,145$ 109,904$ 107,062$ 101,934$ 96,759$ 91,139$ 85,989$

Liabilities and Net Assets

Liabilities Current liabilities:

Accounts payable and accrued liabilities 3,367$ 3,031$ 5,520$ 5,630$ 5,743$ 5,357$ 5,357$ Accrued salaries and benefits 2,905 4,451 2,744 2,656 2,518 2,434 2,434 Deferred contributions for the purchase of objects for the Collection 5,008 2,787 2,787 2,787 2,787 2,787 2,787 Deferred contributions for the purchase of capital assets 3,911 4,817 2,234 2,234 2,234 2,234 2,234 Other deferred contributions 1,889 1,732 1,500 1,500 1,500 1,500 1,500

17,080 16,818 14,785 14,807 14,782 14,312 14,312

Employee future benefits 2,494 1,161 1,161 1,161 1,161 1,161 1,161 Deferred contributions for the amortization of capital assets 88,776 83,778 81,211 76,061 70,911 65,761 60,611

108,350$ 101,757$ 97,157$ 92,029$ 86,854$ 81,234$ 76,084$

Net AssetsUnrestricted 7,057 7,409 9,167 9,167 9,167 9,167 9,167 Investment in capital assets 622 622 622 622 622 622 622 Permanently endowed 116 116 116 116 116 116 116

Total net assets 7,795 8,147 9,905 9,905 9,905 9,905 9,905 116,145 109,904 107,062 101,934 96,759 91,139 85,989

NATIONAL GALLERY OF CANADASTATEMENT OF FINANCIAL POSITION

AS AT MARCH 31(in thousands of dollars)


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Parliamentary appropriationsFor operating and capital expenditures 36,194 36,309 37,647 35,774 35,774 35,774 35,774Appropriations deferred for the purchase of capital assets (1,000) (2,170) (1,000) (1,000) (1,000) (1,000) (1,000)Amortization of deferred funding for capital assets 5,913 6,262 6,150 6,150 6,150 6,150 6,150

41,107 40,401 42,797 40,924 40,924 40,924 40,924

For the purchase of objects for the collection 8,000 8,000 8,000 8,000 8,000 8,000 8,000Appropriations recognized from prior periods 3,066 5,008 2,787 2,787 2,787 2,787 2,787Appropriations deferred to future periods (5,008) (2,787) (2,787) (2,787) (2,787) (2,787) (2,787)

6,058 10,221 8,000 8,000 8,000 8,000 8,000

Total Parliamentary appropriations 47,165 50,622 50,797 49,038 49,038 49,038 49,038Operating revenue and contributions 9,088 11,973 8,898 8,952 8,765 9,540 9,590

56,253 62,595 59,695 57,990 57,803 58,578 58,628Expenses by activity

Collection Operations 6,555 6,740 6,622 6,616 6,722 6,778 6,808 Art acquisitions 7,618 13,796 7,450 7,450 7,450 7,450 7,450

Total Collections 14,173 20,536 14,072 14,066 14,172 14,228 14,258

Outreach 13,556 13,654 13,994 13,797 13,198 13,512 13,383Accommodation 19,589 19,768 20,701 21,142 21,591 22,050 22,389Administration 8,243 8,285 9,170 8,985 8,842 8,788 8,598

Total expenses 55,561 62,243 57,937 57,990 57,803 58,578 58,628

Excess of revenue over expenses for the period 692 352 1,758 0 0 0 0

NATIONAL GALLERY OF CANADASTATEMENT OF OPERATIONS

FOR THE YEAR ENDED MARCH 31(in thousands of dollars)


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Operating activitiesCash received from clients 4,132$ 6,276$ 8,182$ 8,987$ 8,800$ 9,576$ 9,177$ Parliamentary appropriations received 43,302 41,660 42,774 42,774 42,774 42,774 42,774 Cash paid to suppliers (28,577) (31,179) (27,550) (31,847) (31,416) (32,642) (31,889) Cash paid to employees (20,541) (19,663) (21,671) (23,370) (23,311) (23,709) (23,195) Interest received 345 263 175 150 150 150 150

(1,339) (2,643) 1,910 (3,306) (3,003) (3,851) (2,983) Investing activities

Net Acquisition of investments (5,100) (10,900) - - - - - Total cash flow from investing activities (5,100) (10,900) - - - - -

Capital activitiesAcquisition of capital assets (8,227) (2,494) (3,583) (1,000) (1,000) (1,000) (1,000) Total cash flow from capital activities (8,227) (2,494) (3,583) (1,000) (1,000) (1,000) (1,000)

Financing activitiesFunding for the acquisition of capital assets 1,000 2,170 1,000 1,000 1,000 1,000 1,000 Restricted contributions and related investment income 2,677 1,931 2,650 3,250 2,900 3,300 2,900

3,677 4,101 3,650 4,250 3,900 4,300 3,900

Total cash flow (10,989) (11,936) 1,977 (56) (103) (551) (83)

Cash and cash equivalents, beginning of the yearCash & cash equivalents 13,063 7,106 6,094 8,071 8,015 7,912 7,361 Restricted cash & cash equivalents 15,956 10,924 - - - - -

29,019 18,030 6,094 8,071 8,015 7,912 7,361

Cash and cash equivalents, beginning of the yearCash & cash equivalents 7,106 6,094 8,071 8,015 7,912 7,361 7,278 Restricted cash & cash equivalents 10,924 - - - - - -

Cash, end of the year 18,030$ 6,094$ 8,071$ 8,015$ 7,912$ 7,361$ 7,278$

NATIONAL GALLERY OF CANADASTATEMENT OF CASH FLOWS



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Operating revenueBookstore and publishing 1,559$ 1,855$ 2,510$ 2,045$ 2,095$ 2,145$ 2,145$ Admissions 949 1,363 2,125 1,452 1,540 1,840 1,840 Parking 890 984 1,052 910 910 920 920 Memberships 383 459 600 425 450 465 465 Rental of public spaces 168 266 175 300 300 300 300 Educational services 73 127 100 100 110 110 110 Art loans-recovery of expenses 198 241 200 170 190 190 190 Traveling exhibitions 171 50 50 10 10 10 10 Audio guides 28 63 26 60 30 30 30 Food services 3 43 35 50 50 50 50 Interest 345 263 175 150 150 150 150 Other 40 54 50 30 30 30 30

4,807 5,768 7,098 5,702 5,865 6,240 6,240

Sponsorship and contributionsSponsorship 469 450 300 600 650 650 650 Contributed items for the Collection 1,763 3,949 100 - - - - Contributions from the Foundation 1,198 854 500 1,250 1,250 1,250 1,250 Contributions from other individuals, corporations and foundations 851 952 900 1,400 1,000 1,400 1,450

4,281 6,205 1,800 3,250 2,900 3,300 3,350

9,088$ 11,973$ 8,898$ 8,952$ 8,765$ 9,540$ 9,590$

NATIONAL GALLERY OF CANADASCHEDULE OF OPERATING REVENUE AND CONTRIBUTIONS



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Deferred appropriations for the purchase of capital assets at beginning of year 11,138$ 3,911$ 4,817$ 2,234$ 2,234$ 2,234$ 2,234$

Parliamentary appropriations 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Parliamentary appropriations supplementary estimates - 1,170 - - - - - Contributions for the purchase of capital - - - - - - -

Total Available 12,138 6,081 5,817 3,234 3,234 3,234 3,234

Acquisition of capital assets 8,227 1,264 3,583 1,000 1,000 1,000 1,000 Deferred appropriations for the purchase of capital assets at end of year 3,911 4,817 2,234 2,234 2,234 2,234 2,234

Capital assets

Net book value at beginning of year 87,085 89,399 84,400 81,833 76,683 71,533 66,383

Capital additions 8,227 1,263 3,583 1,000 1,000 1,000 1,000

95,312 90,662 87,983 82,833 77,683 72,533 67,383 Less amortization:Amortization of building 3,898 3,898 3,898 3,898 3,898 3,898 3,898 Amortization other 2,015 2,364 2,252 2,252 2,252 2,252 2,252

5,913 6,262 6,150 6,150 6,150 6,150 6,150

Net book value at end of year 89,399$ 84,400$ 81,833$ 76,683$ 71,533$ 66,383$ 61,233$

NATIONAL GALLERY OF CANADACAPITAL BUDGETAS AT MARCH 31

(in thousands of dollars)

SUMMARY OF THE CORPORATE PLAN FOR 2015-16 TO 2019-20 … · develop, maintain and make known throughout Canada and internationally, a collection of works of art, both historic and

Documents