The cost to run MAMA at June 30 was $1.39 million and up from the $1.14 million projected in March even though the attendance figure has crashed through the 100,000 mark since MAMA opened in October last year.

The $250,00 over-run followed a blowout on the MAMA construction cost from $10.5 million to $11.2 million.

The MAMA annual report was tabled at Albury Council's community and cultural committee meeting on Monday night with newly appointed director Bree Pickering an interested onlooker.

Mayor Kevin Mack asked for an explanation on the “significant” MAMA operational blowout.

Director James Jenkins said the operating budget was based on an independently developed business plan before MAMA opened.

“There were a number of years between when that first business analysis was undertaken and budget created,” he said.

“Despite the best management oversight we could provide there were a number of unexpected costs and reductions in income that came about.

“They included everything from the operational costs of cleaning, money collection, the initial buy-in of stock, the fact the first three months of the financial year there was no income coming in with the gallery not opening until October.”

An upside was philanthropic contributions of $1.08 million exceeding the budgeted amount of $1.05 million.

Also, the tourism economic impact was calculated at $10.86 million in the first 10 months of operation.

A further 50 exhibitions are planned for MAMA next year including the Art Gallery of NSW Archibald Prize.

Also, the donation, acquisition and gifting of 145 artworks to MAMA are valued at more than $730,000.

Cr Alice Glahan said MAMA was an undoubted success story.

“It quite testifies not only the community of Albury, but the regional community interest in this facility,” she said.

“The achievements of the facility are quite renowned for the short period it has been opened.

“It is not only the number of visitations, but also the interest the facility has attracted both nationally and internationally.”

Ms Pickering has replaced inaugural director Jacqui Hemsley.