12 December 2013

While a few members of the Greater Shepparton community have cast doubt over the future of the Shepparton Art Museum (SAM), Greater Shepparton City Council is undertaking a significant amount of groundwork to secure a long-term vision for the facility.

While a few members of the Greater Shepparton community have cast doubt over the future of the Shepparton Art Museum (SAM), Greater Shepparton City Council is undertaking a significant amount of groundwork to secure a long-term vision for the facility.

Key to the future of the museum will be the fundraising and investment undertaken by the yet to be established SAM Foundation.

The mandate for the Foundation is very clear, to raise funds to undertake a significant capital drive for a new expanded art museum and to grow funds to benefit the SAM collection and program.

The Foundation's facts are:
• The Foundation is yet to be fully established as appointments to the inaugural board are yet to be made.
• The trust deed of the Foundation is independent to the gallery and its purpose is to raise funds for the new SAM.
• The funds raised by the Foundation will be quarantined and cannot and will not be used to support Council operations.
• Council will contribute $545,000 to assist the Foundation in establishing their independent financial management.
• It will be at the discretion of the Foundation as to how their funds are raised and used.
• The current governance arrangements for the establishment of the Foundation are an interim measure while other governance models are being evaluated.
• A Memorandum of Understanding (MOU) between Council and the Foundation has been developed by Herbert, Smith, Freehills who specialise in art gallery governance models. The MOU will ensure that the Foundation is compliant with the Public Ancillary Fund Guidelines (2011) and other taxation laws applicable to public ancillary funds.
• A delegation of Councillors, Council officers and key stakeholders recently visited Melbourne based galleries to review their governance arrangements. These visits will be used to inform the on-going governance structure.
• Council has been in very productive discussions with Regional Development Victoria relating to funding for a business plan for the new SAM facility. The business plan will examine in part, the most appropriate governance structure which will ensure the protection of SAM's significant assets for the benefit and enjoyment of the Greater Shepparton community.

"Comments made to the media by community members regarding the present model of governance for the SAM Foundation is extremely disappointing", suggests City of Greater Shepparton CEO Gavin Cator.

"The perception that a new SAM facility will be sold off in order to fund operational activities is incorrect and misguided. SAM's art works are a significant ratepayer asset, where from over 50 years Council has successfully managed and grown on behalf of the Greater Shepparton community. The art works are owned and have always been managed in the best interests of our Rate payers", explains Mr Cator.

The location and governance of any new facility are yet to be determined. There is still much work to be done.

"We understand that in order to achieve a visionary outcome for any potential museum, the Council will need to partner with a range of private and government stakeholders" contends Mr Cator.

"The design of any proposed new governance structure for the potential museum, whether it is a charity, trust, or company, must have Councillor involvement to ensure it is developed to protect the assets of the Greater Shepparton community. Council needs to be confident in any new governance and it will take detailed research, extensive business planning and consultation with all key stakeholders of which the Foundation will be one such group."

For more information please contact Mr Gavin Cator on 0418 338 659.