Te Papa Remains in a Comfortable Financial Position 

2 May 2014

The Board of Museum of New Zealand Te Papa Tongarewa confirm that there are no financial issues at the Museum.

Te Papa has always operated at a deficit when depreciation on its buildings is included. The Museum has been looking for ways to reduce this deficit and reduce reliance on its reserves to offset the deficit, and to achieve the annual financial targets set by the Board. Te Papa has historically produced an operating surplus, before depreciation on its buildings has been included. Te Papa is currently forecasting an operating surplus before depreciation again this year.  Te Papa remains in a comfortable financial position and the Museum maintains healthy reserves.

Te Papa works to a budget as agreed with the Ministry for Culture and Heritage and the Board of Te Papa. Approximately fifty-five percent of its funding comes from Government (via Ministry for Culture and Heritage) and the Museum self-generates the additional income from its commercial revenue sources such as exhibitions, retail, hospitality and car park businesses, and sponsorship. This revenue contributes to the operating costs and overall economic sustainability of Te Papa.

Te Papa actively manages its business operations as it works toward achieving the annual financial targets set by the Board. As part of this process, the Museum conducted a routine mid-year budget review in November to assist managers with the prioritisation of work programmes consistent with our plans to reduce costs and increase non-exhibition commercial revenue.  Te Papa’s Executive Team and Board are working closely to prioritise work programmes and effectively manage activities within budget.

In February, as part of its continuous improvement activity, Te Papa implemented a Financial Management Review, which includes an assessment of our finance systems, processes and roles to identify where we can improve this area of our operations. It is important that the Museum has systems that align with state sector best practice. The Museum sought advice from finance experts from the public and private sector to benchmark against best practice and make recommendations for improvements, and to assist with future budgeting and planning.

The Statement of Intent 2012-2016 (SOI) and Te Papa’s financial accounts as outlined in the 2012/13 Annual Report are available here:
http://www.tepapa.govt.nz/AboutUs/Pages/Legislationandaccountability.aspx

Te Papa’s audited Financial Statements for 2013/14 will be reported in the Annual Report due for release in November 2014.

For further information please contact:

Bridget MacDonald, Senior Corporate Affairs Adviser
bridgetm@tepapa.govt.nz Mob. 029 601 0010