principal source of funding continues to be the UK Government,
which provides grant-in-aid under a three-year agreement
and special payments for essential capital projects. Grant-in-aid
accounted for 91% of our available funding for the year
– the balance came from admission charges for special
exhibitions, sponsorship and donations, and commercial activities.
This was the second year of the current three-year funding
agreement, which requires that we meet a series of performance
targets in return for assured levels of financial support.
We received £28.9 million in baseline grant-in-aid,
with a further £6.7 million to compensate for the
loss of revenue that followed the introduction of free entry
for all adults in December 2001.
During the year we signed a revised Financial Memorandum,
which sets out key financial principles, and a new Management
Statement, which defines our relationship with the Department
for Culture, Media and Sport (DCMS). We value our relationship
with our sponsoring body and intend to work closely with
DCMS to review and strengthen this further.