Queensland Art Gallery Annual Report 1998-99

5 3 Queensland Art Gallery Appendix Financial Statements Queensland Art Gallery Board of Trustees Queensland Art Gallery Board of Trustees Notes to and Formimg part of the Accounts Notes to and Formimg part o f the Accounts for year ended 3 0 June 1999 for year ended 3 0 June 1999 1999 1998 Note 13Cash $000 $000 For the purposes of the Statement of Cash Flows, cash includes cash on hand Note 7 Artworks and in banks and investments in money market instruments. Cash at the end of Balance - 1 July 109,752 106,895 the financial year as shown in the Statement of Cash Flows is reconciled to the Purchases/Gifts 573 773 related items in the Statement of Financial Position as follows: 110,325 107,668 1999 1998 Less Deaccessioned Art Works - - $000 $000 Cash: 110,325 107,668 General Fund 52 (871) Asset Revaluation Reserve - Increment/(Decrement) 8,178 2,084 Trust Fund 364 199 Investments: Balance - 30 June 118,503 109,752 General Fund 300 800 Trust Fund 897 1,241 Note 8 Plant and Equipment Cost 817 745 1,613 1,369 Less Accumulated Depreciation 477 413 Note 14 Contingent Liability 340 332 A contingent liability exists in relation to some unresolved legal issues. Maximum exposure is not expected to exceed $380,000. Note 9 Research Library Materials Balance - 1 July 908 908 Note 15 Trust Fund Asset Revaluation Reserve - Increment/(Decrement) 77 - In accordance with the Queensland Art Gallery Act 1987 the Queensland Art Gallery Board of Trustees operates a separate Trust Fund through which various Balance - 30 June 985 908 activities are maintained. Separate accounting is carried out for each of these activities. The transactions are incorporated in the Operating Statement. Note 10 Provisions - Employee Entitlements Current 1999 1998 Long Service Leave 72 120 $000 $'000 Recreation Leave 493 451 Balance - 1 July 1,440 1,363 Receipts 1,949 1,787 Total Current 565 571 Expenditure (2,128) (1,710) Non-Current Balance - 30 June 1,261 1,440 Long Service Leave 646 537 Represented by: Cash 364 199 Total Non-Current 646 537 Investments 897 1,241 Total Provisions - Employee Entitlements 1,211 1,108 1,261 1,440 Note 11 Asset Revaluation Reverves Included in the above balance is $171,624 of restricted funds. Balance - 1 July 10,357 8,180 Note 16 Year 2000 Compliance Increment/(Decrement) - Library Research Materials 77 93 The year 2000 issue concerns the potential failure of computer systems, Increment/(Decrement) - Art Works 8,178 2,084 personal computers, and the wide variety of devices utilising microprocessors due to dates being programmed in only two digits, resulting in ambiguity at the Balance - 30 June 18,612 10,357 turn of the century or at times prior. Note 12 Reconciliation of change in Assets resulting from A comprehensive needs analysis of the Gallery's computer hardware and Operations with Net Cash used by Operating Activities software applications was completed in March 1999. This report identified that Change in Net Assets Resulting from Operations 625 900 the Gallery would require a major upgrade to its existing IT infrastructure to Depreciation - Plant and Equipment 109 130 become Year 2000 compliant. (Gain(/Loss on Sale of Plant and Equipment (37) (6) (Gain(/Loss on Deaccessioning of Art Works (4) - The first phase of the project was to install a pilot solution to prove the concept Change in Provisions for a new IT infrastructure. This was undertaken in July 1999. (Decrease)/ Increase in Employee Entitlements 103 (224) Capital Contribution from Government (9,057) (8,885) It is planned to upgrade all the Gallery's computer hardware and software Change in Net Assets and Liabilities applications to be Year 2000 compliant by the end of November 1999 at an Decrease/(Increase) in Receivables 309 (305) estimated cost of $500,000. Decrease/(Increase( in Loans and Advances 15 (17) Decrease/(Increase( in Inventories 62 (11) Decrease/(Increase( in Prepayments 33 (60) (Decrease)/ Increase in Creditors (122) 131 Net Cash Used By Operating Activities (7,964) (8,347)