<P><U><B>The Mandate</B></U></P>
<P>The National Institute of Culture was established by legislation in 1974 to orient, promote, coordinate and direct cultural activities in Panama.</P>
<P>The Institute serves professional arts, community arts, amateur arts, music, theatre, dance, visual arts, crafts, heritage, folk or traditional culture, museums and galleries, libraries, archives, archeology, preservation and conservation of artifacts, language preservation, training of artists and/or cultural workers, writing, book publishing, magazine publishing and arts education.</P>
<P>The Institute</P>
<UL>
<LI>provides financial support to arts/cultural organizations
<LI>provides financial support to individuals in the arts/culture
<LI>advises the national government on matters related to the arts/culture
<LI>has responsibility for government legislation related to the arts/culture
<LI>develops national arts/cultural policies
<LI>implements national arts/cultural policies
<LI>evaluates national arts/cultural policies
<LI>conducts research in the arts/culture
<LI>promotes public understanding and appreciation of the arts/culture
<LI>has lead responsibility at the national level for coordinating international cultural relations and exchanges
<LI>organizes and manages cultural activities or events
<LI>manages cultural facilities or venues
<LI>awards prizes/honours in the arts/culture
<LI>provides training and professional development in artistic/cultural fields
<LI>publishes books and/or magazines </LI></UL>
<P>There is no governing body.</P>
<P><U><B>The Staff</B></U></P>
<P>The Institute has 765 government employees. The chief executive officer is appointed by the president of the country. Staff with direct program responsibilities come from the field.</P>
<P>The organization has regional offices to coordinate the cultural activities of the National Institute of Culture in the rest of the country.</P>
<P><U><B>Relationship With Government</B></U></P>
<P>The Institute is an independent governmental institution that is represented in the executive national venue by the Ministry of Education, the department with which the Institute has the closest relationship.</P>
<P>The organization's independence from government is ensured by the fact that it has its own legal authority, budget, administration and autonomy.</P>
<P>The chief executive of the National Institute of Culture is in charge of preparing the budget which must go through several government bureaus before it is fully approved.</P>
<P>The government</P>
<UL>
<LI>appoints the chief executive officer
<LI>establishes the overall policies within which the organization works
<LI>establishes the various funding programs of the organization </LI></UL>
<P>The Institute</P>
<UL>
<LI>has its financial accounts audited by the government auditor or an auditor appointed by the government
<LI>is required to file an annual report with the legislature or government
<LI>selects its staff members </LI></UL>
<P>The allocation of the organizations budget to various programs and activities is in part determined by government and in part by the organization. Approximately 2 % of the Institute budget is required to be spent on a specific purpose/recipients.</P>
<P>Generally speaking, the organization has little relationship with other funding bodies.</P>
<P><U><B>Budget and Revenue Sources</B></U></P>
<P>The organizations total budget in the current year is</P>
<P>$8 million U.S. dollars. The portion contributed by the national government represents 84% and the balance is self-generated revenues, which have decreased over the last five years. The Institute can provide tax benefits for contributions and is actively pursuing revenues from non-government sources.</P>
<P>The organization was set up with an initial endowment from the government. It receives a legally obligated contribution from the government (annual funding from the general revenues or culture budget). The organization also receives government funding from other sources. Funding from government has increased over the last five years.</P>
<P><U><B>Programs of Financial Support for the Arts/Cultural Community</B></U></P>
<P>The Institute provides financial support to organizations and lower levels of government. Most of the financial support programs are organized by discipline or sector, by function (e.g., preservation, creation, audience development, etc.), or geographically.</P>
<P>The funds can be used for</P>
<UL>
<LI>creation
<LI>research and development
<LI>production, presentation and exhibition
<LI>publication
<LI>the operations of an organization
<LI>conservation and preservation
<LI>capital expenses </LI></UL>
<P><U><B>Assessment of Applications for Financial Support</B></U></P>
<P>Applications for financial support are assessed by the members of the staff.</P>
<P><U><B>Greatest Current Challenge</B></U></P>
<P>At the present time, expanding regional offices under democratic cultural policies and getting more financial resources to implement a wider variety of artistic programs are the main challenges.</P>
<P><U><B>Greatest Current Strength</B></U></P>
<P>The Institute's strengths are the country's heritage and folklore.</P>
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