The audit of Launceston's Queen Victoria Museum and Art Gallery remains on track, along with government funding.
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Over the past month, the City of Launceston council and the state government have developed an agreed set of key performance indicators for the operation of the Queen Victoria Museum and Art Gallery, chief executive Michael Stretton said.
"These are the first KPIs that have been established between the government and the council and we think that's a positive move," he said.
"It should be noted that other than the inclusion of the KPIs, state government funding arrangements for the QVMAG remain unchanged from that which was agreed in 1999 - with a CPI increase applied to level of funding on an annual basis."
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Arts Minister Elise Archer said any assertion that funding to QVMAG was being cut was completely false.
"The Tasmanian Government is a strong supporter of QVMAG which is solely owned and operated by the Launceston City Council, and we recognise the important role QVMAG plays in our cultural landscape as part of a network of high quality museum and gallery facilities across Tasmania," she said.
"The Government has committed to $1,450,600 this financial year upon signing of the funding agreement with the Council."
It is understood the agreement has now been signed.
The council's audit is continuing, with staff working on the works on paper and the furniture collections.
The team of volunteers, who are working daily on the audit, recently completed the Margret Stones botanical works.
City of Launceston mayor Albert van Zetten said it was the first full audit of our collection since the museum's inception in 1891.
"The museum has committed to undertake a thorough Audit of its entire collection including Visual Arts and Design, Natural Sciences and History in order to create an ongoing digitised record, and to ensure that our collections are as accessible as possible," he said.
Prior to the start of this audit, just 18 per cent of objects were registered on our database.
It is understood the museum has 1.5 million artworks and objects.
The missing Brett Whitley drawing Waves V has not been found. Similar works have sold for up to $30,000.
The audit is expected to cost $250,000.
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