ANNUAL REPORT 2011 - Auckland University of Technology · and The Hon Sir Paul Reeves, Chancellor...
Transcript of ANNUAL REPORT 2011 - Auckland University of Technology · and The Hon Sir Paul Reeves, Chancellor...
ANNUALREPORT2011
AucklAnd university of technology
manu täwhiowhio >>In many cultures the bird is a symbol of navigation.Manu Täwhiowhio or ‘bird satellite’ stands proudly at the entrance to AUT , symbolic of our role as navigator for our students, equipping them with the skills and values that will guide them toward successful careers.
welcome to auckland university of technology
[[
E ngä mana, e ngä reo, e ngä hau e whäTënä koutou katoa.
Nau mai piki mai, haere mai ki Te Wänanga Aronui o Tamaki Makau Rau.
Piki mai ki tënei Whare WänangaHaere mai ki te whiriwhiri ngä körero ka hiki tonu te möhiotangaKia tutuki ai koe ki ngä whäinga o ngä whänau me ngä iwi whänui o te ao.Tënä koutou katoa.
To the many communities of the world, greetings.
Welcome to AUT .
Come to AUT to participate in discussion and higher learning opportunities. Achieve your goals, those of your family and those of the local and international community.
Tënä koutou katoa.
To fosTer excellence, equiTy and eThics
in learning, Teaching, research and scholarship,
and in so doing serve our regional, naTional
and inTernaTional communiTies.
te whakatipu tino pükekotanga, tauriteritenga me ngä mahi tika o roto i te akomanga, whakaako, rangahau me ngä pou mätauranga me te mea hoki ka manaakitia o tätau rohe, me ngä häpori o te motu me era o täwahi.
2011 ann ual report 1
tHe Year: 2011 Acting Chancellor’sForeword................................ 2
TheCouncilofAucklandUniversity
ofTechnology....................................................... 3
Vice-Chancellor’sReport........................................ 4
OfficersofAucklandUniversity
ofTechnology....................................................... 7
FinancialReview...................................................... 8
StatementofManagement
Responsibility...................................................... 9
IndependentAuditor’sReport..............................10
outCoMeS FraMeWorK OutcomesFramework..........................................14
Whytheseimpacts?..............................................15
Evidenceofimpact................................................16
StateMent oF SerVICe perForManCe LearningandTeaching..........................................18
ResearchandDevelopment..................................23
Engagement...........................................................27
Staff.......................................................................30
Sustainability........................................................32
eQual opportunItIeS EqualOpportunities..............................................36
F InanCIal StateMentS IncomeStatement.................................................38
StatementofComprehensiveIncome.................39
BalanceSheet........................................................40
StatementofChangesinEquity...........................41
StatementofCashFlows......................................42
NotestotheConsolidated
FinancialStatements.........................................43
StateMent oF reSourCeS Library...................................................................88
InformationTechnologyServices.........................89
LandandBuildings................................................90
DIreCtorY IndustryAdvisoryCommittees............................94
ProfessionalStaff.................................................97
ResearchInstitutes...............................................99
K eY FaCtS anD FIGureS KeyFactsandFigures........................................ 102
contents
2 2011 annual repo rt
withstudentsandsecondaryschoolsacrossAucklandandtheNorthIslandtoraiseaspirationsfortertiaryeducation;wepartneredwithbusinesstoprovideexperientiallearningopportunitiesforourstudents;andwecontinuedtodeveloptheAUTMillenniumCampus.InOctober,theNationalTrainingCentreforhighperformancesportwasofficiallyopenedbyDrJacquesRogge,PresidentoftheInternationalOlympicCommittee,attheAUTMillenniumCampus.Furtherdevelopmentwillincludeexpandedhealthandmedicalfacilities,apurpose-builtrehabilitationgymandtheexpansionoftheexistinglodgetoincreaseaccommodationcapacity.
AUTCouncilmemberscommendtheUniversity’sresponsetoFebruary’sdevastatingearthquakeinChristchurch.OurparamedicalstudentsprovidedassistanceinChristchurch;theFacultyofBusinessandLawprovidedstudyspacefordisplaceddoctoralstudentsfromLincolnandCanterbury;andtheFacultyofHealthandEnvironmentalSciencesofferedsupporttoaffecteddistricthealthboards.Staffandstudentstookpartinthenationalcommemorationon1March.AuSM,AUT’sstudents’association,organisedfundraisingfortheRedCrossappealduringOrientationandstaffwereabletodonatetoappealsthroughpayroll.SomestaffalsoacceptedtheUniversity’sofferofuptofivedays’specialleavetoassistaffectedfamilymembers.AlongwiththeotherNewZealanduniversities,AUTaccepteduniversitystudentsfromtheCanterburyregionthatwishedtostudyelsewhereforpartorallof2011.
IwishtothankallCouncilmembersfortheirdedicationandexpertise.IknowtheirguidanceandadviceisvaluedbytheVice-ChancellorandhisExecutiveManagementTeam,whomanagetheUniversitysoeffectively.IhopethisAnnualReportdemonstratesthecontributionthatAUTmakesacrosssomanyfieldsandgivesyouasenseoftheexcitementwefeelaboutwhatwewillachieveforNewZealand.
Lex HenryActingChancellor
IbeginthisforewordbyacknowledgingTheRtRevdandTheHonSirPaulReeves,ChancellorofAucklandUniversityofTechnology,whodiedon14August2011.IwelcomethisopportunitytopaytributetoSirPaul’ssterlingleadershipoversix verysuccessfulyearsfortheUniversity.IworkedwithSirPaulonCouncilfromthebeginningofmytermin2008andhiscommitmenttoandvisionforAUTandwhatitseekstocontributetoAucklandandNewZealandwasborneoutinnumerousways.HeactivelyengagedwithgovernmentabouttheneedforuniversityprovisioninManukauandwasever-mindfulofAUT’soriginsasaneducationalinstituteofferingopportunitiestothosewhowereunder-representedintertiaryeducation.Mostrecently,SirPaultookaleadingroleintheearlydevelopmentofAUT’snewStrategic Plan 2012-2016andhisenthusiasmforAUT’sfuturecontributionwasboundless.HisdesiretocontinueasChancellor,evenashisillhealthbecameapparentandhereluctantlycutdownhispublicroles,wasatestamenttohiscommitmenttoAUT.HisleadershipandvisionaresorelymissedbyCouncilmembers,theExecutiveManagementTeamandthewiderAUTcommunity.Keitakumanukura,keitakupikikötuku,nohoihoräitönahäneaneatanga.
ThisAnnualReportsetsoutAUT’sperformancefor2011.Itcontainsinformationabouttheservicesweprovide,thegraduatesandresearchweproduceandthepositiveimpactwemakeforourstudents,staffandwiderstakeholders.Mostobviously,thisincludesthefutureprofessionalswedevelopandtheknowledgeandinnovationwecontributeforthebenefitofbusiness,industryandourcommunities.Wearealsoagentsofsocialjusticeandmobility,attractorsofinternationaltalentintotheAucklandregionandcontributorstotheeconomic,socialandculturalvitalityofNewZealand.
IwouldliketofocusonjustoneaspectofAUT’sactivitiesin2011,thoserelatingtoitspartnerships.Workingincollaborationwithothers,particularlyinthecurrentfiscallyconstrainedenvironment,allowsustoachievemorethanwemightotherwiseachieveonourown.In2011AUTrenewedanddevelopeditsarticulationagreementswithotheruniversitiesintheAsia-Pacificregion;wefurtheredmanyofourstrategicresearchpartnershipsandundertookconsultancyandcommercialisationactivitieswithbusinessandindustry;weengaged
Acting cHAnceLLor’s foreword
2011 ann ual report 3
For the year ended 31 December 2011
chancellor the rt revd and the Hon sir Paul reeves ONZ,GCMG,GCVO,QSO,KSt.J,MA,LTh Co-optedmember.Deceased14August2011.
Acting chancellor Lex Henry LLB AppointedbytheMinisterofEducation
secretary to council dr Andrea Vujnovich LLB(Hons),MSc(Hons),PhDAuckland GeneralCounselandDirectorofGovernance
Members dr Pat Alley MBChB,FRACS,DipProfEthics AppointedbyAucklandUniversityofTechnologyCouncil (afterconsultationwiththeCouncilofTradeUnions)
greg campbell BCom(Hons) AppointedbytheMinisterofEducation
dr Alan cocker MA(Hons),PhDAuckland ElectedbytheacademicstaffofAucklandUniversityofTechnology
filomena davies BA(Hons),NZLSC,ALIANZA ElectedbythegeneralstaffofAucklandUniversityofTechnology
dr Henry duncan BSc,MS,PhDUCLA,DipTchg AppointedfromthenominationsofAucklandUniversityofTechnology AcademicBoard
Kizito essuman AppointedbytheAucklandStudentMovementatAucklandUniversityofTechnology
Pauline Kingi CNZM,BA,LLB,LLM,DipCrim AppointedbyAucklandUniversityofTechnologyCouncil(afterconsultation with,andfromthenominationsof,theAucklandDistrictMäoriCouncil)
Lyn Lim LLB(Hons) AppointedbytheMinisterofEducation
John Maasland MA,FIOD AppointedbyAucklandUniversityofTechnologyCouncil (afterconsultationwiththeCentralOrganisationofEmployers)
derek Mccormack MSc,DipTchg Vice-ChancellorofAucklandUniversityofTechnology
Veronica ng Lam BHSc(Podiatry) AppointedbytheAucklandStudentMovementatAucklandUniversityofTechnology
Paul Phillips BE,MBA Co-optedmember
James schofield BCom,MSc(Econ),FCA Co-optedmember
stephen stehlin BA AppointedbyAucklandUniversityofTechnologyCouncil (afterconsultationwithPacificIslandorganisationsandcommunitiesofNewZealand)
Judith thompson BSocSc,MMgt AppointedbytheMinisterofEducation
tHe counciL of AucKLAnduniVersity of tecHnoLogy
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Vice-cHAnceLLor’s rePort
introduction2011wasayearofsignificantdevelopmentandachievementforAucklandUniversityofTechnology(AUT).Ourenrolmentprofilecontinuedtoshiftfurthertowardsdegreeandpostgraduatequalifications,wecelebratedtheresearchsuccessesofanumberofstaff,andendedtheyearinagoodfinancialposition.
However,thecommunityofAUTalsoexperiencedprofoundsadness.Thedeath,inAugust,ofourChancellorofthepastsixyears,SirPaulReeveswasahugelossfortheUniversity.SirPaulwasaninspirationalleaderandamanofgreatwisdom,manaandcompassion.Heissorelymissed.
our AcHieVeMentsReflectingastrongperformance,AUTachievedalltargetsassociatedwiththe$50millionSuspensoryLoanprovidedbyGovernmentin2008.AUTreceivedconfirmationoftheearlyconversionofthisloantoequityin2011.TheassociatedKPIsaddressedperformanceacrossarangeofresearchandfinancialareas,andthepositiveoutcomeisareflectionoftheUniversity’sdevelopment.
Academic performanceTheNewZealandUniversitiesAcademicAudit Unit(NZUAAU)undertookanacademicauditof AUTin2011.Thelastauditwasin2007.Theauditreportmademanysignificantcommendationsandaffirmations,includinganacknowledgementoftheUniversity’sresponsivenesstoopportunities,anditsagilityandleadershipinfurtheringitsmission.Thereportcommendedourlearningandteachingapproaches,affirmeddevelopmentofourresearchandcommendedourcommunityengagementstrategies.ItalsonotedtheUniversity’sstrengthsinpreparingstudentsforprofessionalpracticeandemployment,andthevalueplacedonthesebystudentsandemployers.Drawingondatafroma2010surveyofAustralasianuniversities,thereportnotedthatstudentshadratedAUTparticularlyhighlywithregardtoclassinteraction,activelearningandwork-relatedlearning.
ThereweresignificantdevelopmentsineachofthefivefacultiesoftheUniversity.
• TheBusinessSchoolwasawardedinternationalAACSB1accreditation(placingitwithinthetopfivepercentofbusinessschoolsworldwide)andwasrankedintheworld’stop200,inAccountingandFinance,ontheQSWorldUniversityRankings®.TheFacultyofBusinessandLawtaught4,788EFTS.
• TheFacultyofAppliedHumanitiescompletedacomprehensivereviewofitsmissionandpurposein2011,culminatinginareconceptualisationofitsroleandfunctionsandanamechangetobecometheFacultyofCultureandSocietyfromthestartof2012.TheFacultytaught3,554EFTS.
• TheFacultyforMäoriDevelopment,TeAraPoutamaachievedinternationalrecognitionthroughthelaunchoftheInternationalCentreforLanguageRevitalisationattheUnitedNations,inNewYorkCity–acentrewhichcouldbreathelifeintomanyoftheworld’sendangeredlanguages.TheFacultytaught219EFTS.
• TheFacultyofHealthandEnvironmentalSciencesshowedcontinuedleadershipandsuccess,earningsignificantresearchfunding–approximatelythreequartersoftheUniversity’stotal.TheMiddlemore-basedKoAwatea2(innovativehealthcare)partnershipwaslaunchedin2011.AUTPhysiotherapy,OccupationalTherapyandMidwiferystudentsundertookpartoftheirprogrammesthereandjointresearchprojectsgotunderwaywiththeDistrictHealthBoard.TheFacultytaught4,900EFTS.
• TheFacultyofDesignandCreativeTechnologiesstudents,graduatesandacademicstaffreceivedanextraordinarynumberofawardsin2011, including:1stand2ndplacesintheinternationalCannesYoungCreatives(advertising)competition;twoMiromodaMäoriFashionDesignAwards;winningtheBestBookDesignaward;andwinning11medalsattheBestDesignAwards–fourofthemgold.TheFacultytaught4,692EFTS.
ThequalityoftheoverallstudentexperienceisfundamentaltotheUniversity’ssuccessandAUTachievedverypleasingresultsinanumberofinternationalstudentbenchmarkingexercisesin2011.
ResearchWetakeprideinthenationalandinternationalawardsachievedbystaffin2011.ParticularmentionmustbemadeofProfessorStephenHenry,whowasawardedtheRoyalSocietyofNewZealand’sprestigiousRJScottMedal.ProfessorNikolaKasabovandProfessorAhmedAl-JumailybothreceivedMarieCurieFellowshipsfundedthroughtheEuropeanCommissionFramework7researchprogrammeandDrPaulCullen,aseniorlecturerinVisualArts,receiveda2012FulbrightNewZealandSeniorScholarAward.
1 AACSBInternationalistheAssociationtoAdvanceCollegiateSchoolsofBusiness2 KoAwateaisajointventurepartnershipbetweenCountiesManukauDistrictHealthBoard,AUT,theUniversityofAucklandandManukau InstituteofTechnology
2011 ann ual report 5
In2011,theUniversityhaditsmostsuccessfulyeareverwithapplicationstotheMarsdenFundandtheFacultyofHealthandEnvironmentalSciencescontinueditssuccessatsecuringcontractswiththeHealthResearchCouncil.ThereweresignificantincreasesintheUniversity’sexternalresearchincomeandthenumberofresearchdegreecompletions,whilethemajorleapinthenumberofresearchoutputsthatoccurredin2010wasmaintained.
TheAustralasianbidtohosttheinternationalSquareKilometreArray(SKA)wassubmittedinSeptember.Oneofthe21stcentury’smostambitiousscienceprojects,theSKAwillconsistofaseriesofradiotelescopesspreadoverawidearea,creatingagiantradiotelescopewithadiscoverypotential10,000timesgreaterthanthebestexistinginstruments.AUThasledNewZealand’scontributiontothejointAustralasianbid.Thesite–eitherSouthernAfricaorAustralia/NewZealand–willbedecidedinApril2012.Whatevertheoutcome,AUT’sInstituteforRadioAstronomyandSpaceResearchhasdemonstratedsomeoftheopportunitiesthatradioastronomyoffersNewZealand.
StudentsOurAugustandDecembergraduationceremoniessawfirst-handwhattheexperienceatAUTmeantforthemorethan4,500graduates,theirwhänauandfriends.Itwasaprivilegetoseetheexcitementandprideofthegraduatesastheyreceivedtheirparchments.
WehavecontinuedbuildingourrelationshipwithAuSM(AucklandStudentMovementatAUT)inpreparationfortheintroductionofvoluntarystudentunionmembershipeffectivefrom1January2012.StudentswillcontinuetohaveavenuesforstudentadvocacyandsupportandarepresentativestudentvoiceinUniversitydecision-making.
EngagementAUT’sManukauCampusishelpingtomakeuniversityeducationaccessibletothepeopleofSouthAuckland.Thenewcampuscompleteditssecondyearofoperationin2011withsignificantenrolmentgrowth,andaveryhighlevelofstudentsatisfaction.ThiscontinuestobeaveryhighpriorityfortheUniversityasameansofaddressinghighereducationneedintheManukauregion.TheUniversitywelcomedPrimeMinisterJohnKeyforavisittothecampusinJuly.
InMay,wewereproudtohostAUTMäoriExpo2011,alarge-scalecelebrationofMäoriachievementinpolitics,sports,educationandtheartswhichwasattendedbyover25,000students,whänauandmembersofthepublic.Itwasadayofinspiration,empowermentandcelebrationofMäoriachievements.In2011,AUTalsopartneredwithAucklandschoolstodeliveraseriesofinnovativeengagementprojects.TheseincludedaleadershipandtertiarypreparationprogrammeforMäoristudents,aprogrammetore-engageyoungmeninlearning,andahealthscienceprogrammewhichtransitionssecondarystudentsintohealthsciencedegreesandultimatelythehealthcareworkforce
InNovember,theNationalTrainingCentreatAUTMillenniumCampuswasopenedbythePresidentoftheInternationalOlympicCommittee,DrJacquesRogge.TheNationalTrainingCentreisasuccessfulcollaborationbetweenresearchersatAUT’sSchoolofSportandRecreation,andHighPerformanceSportNewZealand.DrRoggeratesitasbeingoneofthetopthreecentresofthistypeintheworld.
InternationalIn2011,AUTmaintainedenrolmentlevelsinaverytightandcompetitiveinternationalmarket,enrollingmorethan3,000internationalstudentsfrom85countries.Thesestudentsbringarichdimensiontoourcampuslifeandtheirpresenceunderscoresourgrowinginternationalreputation.AlongwiththeUniversityofAuckland,AUTremainsoneofthetwotertiaryinstitutionsinNewZealandwiththelargestenrolmentsofinternationalstudentsatundergraduateandpostgraduatelevels.
TheUniversity’sexistingpartnershipinChinacontinuedtodevelopandanewarticulationagreementincomputingwasfinalisedwithChinaJiliangUniversity.Inaddition,newdevelopmentworkcommencedinBrazil,UruguayandArgentina,toleverageLatinAmerica’smoreactiveengagementintheAsiaPacificregion.TheMiddleEastalsoremainsasignificantgrowthareaforAUTwithongoingcurriculumdevelopmentanddeliveryintheUnitedArabEmiratesandQatar.
StaffInAugustanindependentsurveyfirm,JRA,carriedout ‘Our People Staff Survey’toestablishabase-lineofthelevelofstaffengagement,identifyanychangesneededtoimproveengagement,andallowustomonitorprogressinthefuture.OneofthemostpleasingfindingswasthestrongsenseofcommitmenttotheUniversityanditsmissiondisplayedbyAUTstaffmembers.
6 2011 annual repo rt
At72.5%,AUTstaffhaveanaboveaveragelevelofengagementwiththeUniversitycomparedtobenchmarkorganisations.OurstaffalsoexperienceastrongsenseofpersonalachievementintheirworkandarepositiveaboutlearninganddevelopmentopportunitieswithinAUT.
Facultyanddivisionleadershavefinalisedactionplansfocussingonourstrengths,opportunitiesforimprovementandpossiblechangesthataddressareasofconcern.Inadditiontoplansineachfacultyanddivision,IhavegivenmypersonalsupporttotwoUniversity-wideinitiatives:
• AnewleadershipprogrammetobeimplementedthroughPeopleandOrganisationin2012thatwillfocusonimprovingmanagers’skillsincoaching,performanceimprovement,andchangeleadership.
• CreatingopportunitiesforgreatercollaborationandcommunicationbetweendifferentpartsofAUT.
FacilitiesMajorbuildingworkbeganontheCityCampusin2011.TheWGLearningPrecinctwillprovideanadditional20,000squaremetresandwillaccommodatelecturetheatres,flexibleformalandinformallearningspaces,amediacentre,aperformancetheatreandcafes.Aswellasrespondingtostudents’learningneeds,theprecinctwillintegratethecampuswithitscitysurroundings.Thisworkwillbecompletedinearly2013.
FurthergovernmentfundingandcapitalinvestmentisneededtosupportcontinuedgrowthatAUT,particularlywithregardtobuildingacriticalmassatManukauCampusoverthenextdecade.
Enrolments2011wasthefirstyearinrecenttimesthatAUTenrolledfewerdomesticstudentsthaninthepreviousyear.Afterrecordapplicationsin2010,newprocessesandamoreguardedapproachtoadmissionswereadoptedtoavoidbreachingthehardenrolmentcapsetbytheTertiaryEducationCommission(TEC).Theapproachturnedouttobeoverlycautiousandslow(problemsthathavesincebeenaddressed)–alikelyfactorinthelowerEFTSresults.Itispossiblethattherewerealsodemographicandotherexternaleffectsonenrolmentlevels,asotheruniversitiesreportasimilarexperiencetoAUT’s.
InkeepingwithAUT’sstrategicdirection,themajorityofthedeclineinEFTSwasatpre-degreelevelwhich,in2011,constituted15%ofAUT’soverallprovision.Enrolmentsinresearchdegreescontinuedtogrowin2011,up3%from2010.
ItisworthnotingthatananalysisofMinistryofEducationdatashowsthatAUT’sgrowthanddevelopmenthavecombinedtogiveustheleadingincreasesovertheeightyearperiod,2003–2010,inbothundergraduateandpostgraduatedegreeEFTS–byactualnumbersaswellaspercentages.Forbachelor’sdegreeEFTS,AUTcontributednearlyall(87%)ofthetotaluniversitysectorincreasesince2003.ForpostgraduateEFTS,AUTisfirstequalwiththeUniversityofOtagoforincreasesinthenumberofmastersanddoctorateEFTSsince2003.
tHe future – Aut’s StRAtEgIc PlAn 2012-2016Asauniversityforthechangingworldourprimaryfocusistheeducationofourstudents,theirlearningexperienceandtheirsuccess.ThedevelopmentofourStrategic Plan 2012-2016hasinvolvedsignificantconsultationthroughthesupportandguidanceoftheCouncilandseniormanagementandconsiderableconsultationwithstaffandstudents.
Thefivestrategicthemesare:learningandteaching;researchandscholarship;staff;engagementwithcommunities;andcontinuousimprovement.
concLusionsAUTisanincreasinglypowerfulforceforlearninganddiscoverythatpromotesthewellbeingofpeopleandtheirenvironments,andprovidesthemwithopportunitiestoexpandandachievetheiraspirations.
OurprogressisinlargepartduetothediligenceandexpertiseofourCouncil,andIwouldliketoacknowledgeandthankCouncilmembersfortheirsupportandcommitmentoverthepast12months.
OurperformanceisalsoduetothesuccessofourstudentsandthepositiverelationshipthatwehavewithAuSM.InparticularIwouldliketoacknowledgetheoutstandingcontributionmadebytheretiringPresidentofAuSM,VeronicaNgLam.
Finally,IwouldliketothankallofthestafffortheircontributionsandcommitmenttoAUT,uponwhichtheUniversity’ssuccessisfounded.
derek MccormackVice-Chancellor
2011 ann ual report 7
For the year ended 31 December 2011
Vice-chancellor derek MccormackMSc,DipTchg
deputy Vice-chancellor Professor robert AllenBA(Econ),PhDEdinburgh
Pro Vice-chancellors and deans
ProVice-Chancellor(International)Dean,FacultyofAppliedHumanities
Professor nigel HemmingtonBSc(Hons),PhDSurrey,FCIM,FICPD,FIH,CharteredMarketer
Dean,FacultyofBusinessandLaw dr geoff Perry BA,MA,MPhil(Hons),PhDAuckland,DipCom,PGDipSocSci(Dstn),DipTchg
Dean,FacultyofDesignand CreativeTechnologies
desna JuryMEd(Hons),DipTchg,FDINZ,FRSA
ProVice-Chancellor(NorthShore)Dean,FacultyofHealthandEnvironmentalSciences
ProfessorMaxAbbottBA,BSc,MA(Hons),PhDCanterbury,DipClinPsych,TColDip(Dstn), MNZCCP,MRSNZ
ProVice-Chancellor(MäoriAdvancement)ProVice-Chancellor(LearningandTeaching)andDean,TeAraPoutama(FacultyofMäoriDevelopment)
AssociateProfessorPare KeihaQSO,MBA,MComLaw,MSc,PhDAuckland,FRSA,MInstD,MRSNZ
ProVice-Chancellor(Research) Professor richard BedfordQSO,MA(Hons),PhDAustralian National University,FRSNZ
ProVice-Chancellor(InnovationandEnterprise)
Professor John raineBE(Hons),PhDCanterbury, CEng,FIMechE,FIPENZ,MSAE,MASPACI
ProVice-Chancellor Professor Philip sallisBA,PhDCity(UK),FNZCS,MRSNZ,MACM,MIEEE
ProVice-Chancellor Professor ian shirleyMA(Hons),PhDMassey
general Managers
CorporateServices richard HallOBE,MNZM,MAFinanceandEstates JudithMcKayBA,BCom,CA,MInstD,MNZSCTUniversityRelations VivienBridgwaterDipTchg
general counsel dr Andrea VujnovichLLB(Hons),MSc(Hons),PhDAuckland
internal Auditor Alastair BurrowsCFIIA,AIIA(NZ)
Bankers AnZ national Bank Limited
Auditor Audit new Zealand on behalf of the Auditor-general
officers of AucKLAnduniVersity of tecHnoLogy
8 2011 annual repo rt
finAnciAL reViewFor the year ended 31 December 2011
Key finAnciAL indicAtors un i v ersi ty 2011 2011 2010
Actual Budget Actual
operations $000s $000s $000s
total revenue 298,455 294,355 287,391
total expenses before finance costs 285,860 275,735 265,496
surplus before finance costs 12,595 18,620 21,895
finance costs
Interestonborrowings 1,171 1,174 1,072
Financechargesonfinanceleases 2,203 2,446 2,476
total finance costs 3,374 3,620 3,548
total expenses 289,234 279,355 269,044
net surplus 9,221 15,000 18,347
cash flows
Operatingcashreceipts 306,670 295,300 291,724
Operatingcashpayments 251,360 248,346 232,780
net cash flows 55,310 46,954 58,944
Property, plant & equipment – net book value 495,198 488,745 464,525
debt
Bankborrowings 40,594 44,700 33,550
Financeleases–current 5,320 5,905 5,079
Financeleases–term 35,115 36,892 36,851
total debt 81,029 87,497 75,480
equity 364,078 374,491 354,850
operating ratios
Netsurplus/revenue 3.1% 5.1% 6.4%
Cashratio 122% 119% 125%
Interestcoverratio 3.7 5.1 6.2
capital ratios
Debtcoverratio 1.5 1.9 1.3
Debt/debt+equity 18% 19% 18%
2011 ann ual report 9
For the year ended 31 December 2011
IntermsoftheEducationAct1989andtheCrownEntitiesAct2004wecertifythat:
WehavebeenresponsibleforthepreparationofthesestatementsofserviceperformanceandthesefinancialstatementsforAucklandUniversityofTechnologyandGroupandthejudgementsusedtherein;and
Wehavebeenresponsibleforestablishingandmaintainingasystemofinternalcontroldesignedtoprovidereasonableassuranceastotheintegrityandreliabilityofperformancereportingandfinancialreporting;and
WeareoftheopinionthatthesestatementsofserviceperformanceandthesefinancialstatementsfairlyreflectthefinancialpositionforAucklandUniversityofTechnologyandGroupat31December2011andtheresultsoftheoperationsfortheyearended31December2011.
Lex Henry derek Mccormack ActingChancellor Vice-Chancellor
26March2012
stAteMent of MAnAgeMentresPonsiBiLity
10 2011 annual rep o rt
indePendent Auditor’s rePort
To the readers of Auckland University of Technology and group’s financial statements and statement of service performancefor the year ended 31 December 2011
TheAuditor-GeneralistheauditorofAucklandUniversityofTechnology(theUniversity)andgroup.TheAuditor-Generalhasappointedme,LeonPieterse,usingthestaffandresourcesofAuditNewZealand,tocarryouttheauditofthefinancialstatementsandstatementofserviceperformanceoftheUniversityandgrouponherbehalf.
Wehaveaudited:
• thefinancialstatementsoftheUniversityandgrouponpages37to85,thatcomprisethebalancesheetasat31December2011,theincomestatement,statementofcomprehensiveincome,statementofchangesinequityandstatementofcashflowsfortheyearendedonthatdateandthenotestothefinancialstatementsthatincludeaccountingpoliciesandotherexplanatoryinformation;and
• thestatementofserviceperformanceoftheUniversityandgrouponpages17to34.
oPinionInouropinion:
• thefinancialstatementsoftheUniversityand grouponpages37to85:
–complywithgenerallyacceptedaccounting practiceinNewZealand;and
– fairlyreflecttheUniversityandgroup’s:
• financialpositionasat31December 2011;and
• financialperformanceandcashflowsfor theyearendedonthatdate;
• thestatementofserviceperformanceoftheUniversityandgrouponpages17to34fairlyreflectstheUniversityandgroup’sserviceperformanceachievementsmeasuredagainsttheperformancetargetsadoptedfortheyearended31December2011.
Ourauditwascompletedon26March2012. Thisisthedateatwhichouropinionisexpressed.
Thebasisofouropinionisexplainedbelow.Inaddition,weoutlinetheresponsibilitiesoftheCouncilandourresponsibilities,andweexplainourindependence.
BAsis of oPinionWecarriedoutourauditinaccordancewiththe Auditor-General’sAuditingStandards,whichincorporatetheInternationalStandardsonAuditing(NewZealand).Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandcarryoutouraudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsandstatementofserviceperformancearefreefrommaterialmisstatement.
Materialmisstatementsaredifferencesoromissionsofamountsanddisclosuresthatwouldaffectareader’soverallunderstandingofthefinancialstatementsandstatementofserviceperformance.Ifwehadfoundmaterialmisstatementsthatwerenotcorrected,wewouldhavereferredtotheminouropinion.
Anauditinvolvescarryingoutprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatementsandstatementofserviceperformance.Theproceduresselecteddependonourjudgement,includingourassessmentofrisksofmaterialmisstatementofthefinancialstatementsandstatementofserviceperformance,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheUniversityandgroup’spreparationofthefinancialstatementsandstatementofserviceperformancethatfairlyreflectthematterstowhichtheyrelate.Weconsiderinternalcontrolinordertodesignauditproceduresthatareappropriateinthecircumstancesbutnotforthepurposeofexpressinganopinionontheeffectivenessof theUniversityandgroup’sinternalcontrol.
an audit also involves evaluating:
• theappropriatenessofaccountingpoliciesusedandwhethertheyhavebeenconsistentlyapplied;
• thereasonablenessofthesignificantaccountingestimatesandjudgementsmadebytheCouncil;
• theadequacyofalldisclosuresinthefinancialstatementsandstatementofserviceperformance;and
• theoverallpresentationofthefinancial statementsandstatementofserviceperformance.
Wedidnotexamineeverytransaction,nordoweguaranteecompleteaccuracyofthefinancial statementsandstatementofserviceperformance.
2011 annual report 11
Leon PieterseAuditNewZealandOnbehalfoftheAuditor-GeneralAuckland,NewZealand
Wehaveobtainedalltheinformationandexplanationswehaverequiredandwebelievewehaveobtainedsufficientandappropriateauditevidencetoprovideabasisforourauditopinion.
resPonsiBiLities of tHe counciL TheCouncilisresponsibleforpreparingfinancialstatementsthat:
• complywithgenerallyacceptedaccountingpracticeinNewZealand;and
• fairlyreflecttheUniversityandgroup’sfinancialposition,financialperformanceandcashflows.
TheCouncilisalsoresponsibleforpreparingastatementofserviceperformancethatfairlyreflectstheUniversityandgroup’sserviceperformanceachievements.
TheCouncilisresponsibleforsuchinternalcontrolasitdeterminesisnecessarytoenablethepreparationoffinancialstatementsandastatementofserviceperformancethatarefreefrommaterialmisstatement,whetherduetofraudorerror.
TheCouncil’sresponsibilitiesarisefromtheEducationAct1989andtheCrownEntities Act2004.
resPonsiBiLities of tHe Auditor Weareresponsibleforexpressinganindependentopiniononthefinancialstatementsandstatementofserviceperformanceandreportingthatopiniontoyoubasedonouraudit.Ourresponsibilityarisesfromsection15ofthePublicAuditAct2001andtheCrownEntitiesAct2004.
indePendenceWhencarryingouttheaudit,wefollowedtheindependencerequirementsoftheAuditor-General,whichincorporatetheindependencerequirementsoftheNewZealandInstituteofCharteredAccountants.
Otherthantheaudit,theperformance-basedresearchfundingexternalresearchincomeengagementandtheauditsofthegroupsubsidiaries,wehavenorelationshipwithorinterestsintheUniversityoranyofitssubsidiaries.
MAtters reLAting to tHe eLectronic PresentAtion of tHe Audited finAnciAL stAteMents And stAteMent of serVice PerforMAnce ThisauditreportrelatestothefinancialstatementsandstatementofserviceperformanceofAucklandUniversityofTechnology(theUniversity)andgroupfortheyearended31December2011includedontheUniversityandgroup’swebsite.TheUniversity’sCouncilisresponsibleforthemaintenanceandintegrityofUniversityandgroup’swebsite.WehavenotbeenengagedtoreportontheintegrityofUniversityandgroup’swebsite.Weacceptnoresponsibilityforanychangesthatmayhaveoccurredtothefinancialstatementsandstatementofserviceperformancesincetheywereinitiallypresentedonthewebsite. Theauditreportrefersonlytothefinancialstatementsandstatementofserviceperformancenamedabove.Itdoesnotprovideanopiniononanyotherinformationwhichmayhavebeenhyperlinkedtoorfromthefinancialstatementsandstatementofserviceperformance.Ifreadersofthisreportareconcernedwiththeinherentrisksarisingfromelectronicdatacommunicationtheyshouldrefertothepublishedhardcopyoftheauditedfinancialstatementsandstatementofserviceperformanceaswellastherelatedauditreportdated26March2012toconfirmtheinformationincludedintheauditedfinancialstatementsandstatementofserviceperformancepresentedonthiswebsite.LegislationinNewZealandgoverningthepreparationanddisseminationoffinancialinformationmaydifferfromlegislationinotherjurisdictions.
12 2011 annual rep o rt
2011 annual report 13
outcoMes frAMeworK
14 2011 annual rep o rt
AucklandUniversityofTechnology,individuallyandcollectivelywithNewZealand’ssevenotheruniversities,contributessignificantlytowardshelpingNewZealandachieveitseconomicandsocio-culturalgoals.ThefollowingschematicidentifiesthethreeprimaryoutcomesAUTseekstoachieveinconjunctionwiththeotheruniversities(seethelightpurplebox).ItalsodepictshowtheUniversity’sresources,processesandactivities,includingGovernmentinvestment,feedintotheseoverarchingoutcomes.TheschematicprovidesastructureforreportingontheUniversity’smedium-termgoalsandannualperformancethroughtheStatementofServicePerformance(seepages17-34).AUT’sOutcomesFrameworkreflectsthebroadthematicareasofitsStrategic Plan 2007-2011;in2011,italsounderpinnedthedevelopmentoftheUniversity’snewStrategic Plan 2012-2016.AUTplanstomakethreekeyimpacts(seethedarkpurplebox)throughtworelatedsetsofactivities–thosedirectedspecificallyatmeetingtheprioritiesidentifiedintheTertiary Education Strategy (TES) 2010-2015andthosethattheUniversityundertakestomeetitsownmissionandroles.
Outcomes
Intermediate
impacts
Outputs
Enablers
Learning and teaching
Graduates successfully
completing qualifications
Strategic theme 1
Research and development
Research outputs
Research degree
completions
Knowledge transfer
Commercialisation
Strategic theme 2
Community engagement
Raising aspirations for
higher education
Leading public debate
Local, national and
international partnerships
Strategic theme 3
Graduates who are
advanced
practitioners, highly
sought after and
who will make an
impact
Research that is
valued for
advancing and
applying knowledge
and professional
practice
Increased
participation in
higher education for
New Zealanders, in
particular Māori and
Pasifika
Contributing to
the sustainable use and
enhancement of the
environment
Contributing to rewarding
and fulfilled lives for
individuals and a more
engaged and inclusive
society
Contributing to New
Zealand’s economic
development
Strategic theme 5
Systems and
processes
Resources and
infrastructureReputation
Sustainability
Staff
Strategic theme 4
Community and
business engagement
programmes
Curriculum
Research and
development
programmes
TES Priority
Improved
educational and
financial
performance
TES Priorities
More young
people with Level
4 qualifications
Increased Māori
student success
Increased
Pasifika student
achievement
Greater transition
from school to
tertiary education
Strengthened
research
outcomes
2011 annual report 15
wHy tHese iMPActs?iMPAct one u graduates who are advanced practitioners, highly sought
after and who will make an impact
RecentOECDreportshavedemonstratedtheimportanceofuniversity-leveleducation,toboththeindividualswhoparticipateinitandtotheregionalandnationaleconomiesinwhichitisdelivered3.Theevidenceclearlyidentifiesthatpublicandprivatereturnsaregreaterforundergraduateandpostgraduatedegreeprogrammesthanforpre-universitypost-secondaryprogrammes.Highereducationleadstoincreasedincomelevelsandcareerpossibilities,aswellasbetterjobsecurityforindividuals;italsobuildsthenecessaryproductiveskillsbasetodriveeconomicgrowthandimprovehealthandsocialoutcomes.
iMPAct two u research that is valued for advancing and applying knowledge and professional practice
ResearchgreatlybenefitsNewZealandersifitisvalued,takenupandapplied.Disseminatingknowledgeenhancesopportunitiestotranslateitintonewproductsorservices,oruseresearchfindingsforpolicyformulationorprofessionalpractice.AsNewZealand’sonlyuniversityoftechnology,AUThasalwayshadanappliedandpractice-basedemphasistoitsresearch;itengageswithanincreasingnumberofprivatesectorresearchclients,largeandsmall,acrosstherangeofindustriesandcontinuouslydevelopsandstrengthensitslinkageswiththeinternationalresearchcommunity.Suchpartnership’sallowAUTtoleveragefunding,shareexpertiseandresources,andachievemutually-beneficialgoals.
iMPAct tHree u increased participation in higher education for new Zealanders, in particular Mäori and Pasifika
SuccessiveNewZealandgovernmentshaveaimedtoincreasethenumberofyoungpeopleinhighereducation;theyrecognisethatawell-educatedcitizenryisthefoundationofsocialequity,engagementandinclusion,anddeterminesanation’ssuccessfulparticipationintheglobalknowledgeeconomy.AUThasshownthehighestgrowthofanyNewZealanduniversityintermsofitsdegreeenrolmentsoverthelastdecadeandremainscommittedtobroadeningaccessforthosewhohavebeenhistoricallyunder-representedintertiaryeducation.Auckland’sMäoriandPasifikacommunitiesaregrowingquicklyandhaveyoungeraverageages;theirimprovededucationaloutcomesarecriticalforAucklandandNewZealandastheywillrepresentalargerproportionofNewZealand’sfutureworkforce.
3 SeeEducationataGlance:OECDIndicatorspublishedannuallybytheOECD,Paris
16 2011 annual rep o rt
eVidence of iMPAct examples from 2011
impact one – graduates impact two – research impact three – Participation
SchoolofCommunicationsgraduateswonnineseparateawardsin2011includinganAsiaNewZealandFoundationmediascholarship;thecovetedSupremeAwardatthePublicRelationsInstituteofNewZealand;theSallyLogan-MilneYoungPractitioneroftheYearaward;andthenational2011FairfaxMediayoungprintLionsaward.EachawardisnoteworthybuttogethertheyprovidegoodevidenceofthesuccessofAUT’sCommunicationsprogrammesinpreparingstudentsfortheirprofessionalcareers.
In2011,AUTgraduatesalsowonprizesin:design(theindustrialdesigncategoryofthe2011Australasianstudentdesignawards);medicallaboratoryscience(theNZInstituteofMedicalLaboratorySciencePrize,theDiagnosticMedlabPrize,theBeckmanCoulterPrizeforoutstandinggraduateinHaematology);appliedscience(theFletcherTrustAwardforbestresearchproject,theMacartneyPrizeformostoutstandingBAppScigraduateinfoodscience);andadvertising(NZPoststudentmarketersoftheyear).
AUTalumnusMarkD’ArcyjoinedFacebookin2011asitsdirectorofglobalcreativesolutions.
SeventeenprivatesectorclientsdirectlyfundedAUTresearchin2011includingorganisationsintheareasof:sports(RugbyWorldCup,FootballNewZealand,ASICS);healthcare(BayerHealthCare,FisherandPaykelHealthcare,NewZealandSocietyofPhysiotherapists,LivingHealthyLtd,CavitABI);foodandbeverages(Fonterra,FrucorBeveragesLtd);manufacturing(NationalAluminiumLtd);andcivilcontracting(FultonHogan).
Newcommercialresearchfundingin2011(valuedat$100,000ormore)includedaTechnologyTransferVoucherprojectwithFultonHogantodevelopaRoadTextureDepthMonitor,ASICS’fundingoftheAUTPodiatryClinic,andworktomonitorandmodelswimperformanceforHighPerformanceSportNZ.AUTalsoreceivedfundingforseveralTechnologyforIndustryFellowshipsandwascommissionedtodevelopaninteractivedigitalartgalleryguidefortheAucklandArtGallery.
BasedonA*rankedjournalsinfinanceandaccounting(themostinfluentialjournalsinthefield),AUT’sAccountingandFinancedepartmentswererankedtenthinAustraliaandNewZealand.
AUTismakingarealcontributiontoAuckland’snetworkoftertiaryeducationprovision,particularlythroughthenewManukauCampus.2011markedthecompletionofthesecondfullyearatManukauCampus.Enrolmentsatthecampusexceededthe2011targetof464andtheCampuswasparticularlysuccessfulatattractingMäoriandPasifikastudents.
AUTcontinueditstrendofincreasingtheproportionofstudentsagedunder25(63%in2011).WhileMäoriandPasifikaproportionsofthestudentbodyremainedstaticin2011,therewasstronggrowthintheproportionofMäoristudentsinhighereducation,up5%to87%in2011.TheproportionofPasifikastudentsinhighereducationrose4%to70%in2011.
InitialfindingsfromtheevaluationofAgents of Change,AUT’sstudentengagementprogramme,showeditwaseffectiveinpreparingNewZealandsecondarystudentsfortheirfutureandraisingaspirationsfortertiarystudy.
2011 annual report 17
stAteMent of serVice PerforMAnce
AucklandUniversityofTechnology’sStrategic Plan 2007-2011outlinestheUniversity’sstrategicdirectionforafiveyearperiod.Itincludeshigh-levelinformationontheorganisation’spurposeandrole,aswellasthenatureandscopeofitsoperationsanditsfitwiththeGovernment’slong-termobjectives.FivekeythemesguidetheUniversity’sdevelopment–LearningandTeaching,ResearchandDevelopment,Engagement,StaffandSustainability.Fromthese,asetofassociatedobjectivesandCriticalSuccessFactorsdefinetheimpactsandoutcomestheUniversitystrivesfor.SomeareexternallyfocussedwhileothersrelatetoaspectsoftheUniversity’soperations.AUT’seffectivenessisthenmeasuredbyaseriesofkeyperformanceindicators(KPIs).ThesearerecordedintheUniversity’sInvestment Plan 2011-2013.BasedonAUT’sstrongperformanceinmeetingthegoalsoftheStrategic Plan 2007-2011,andinadvanceoffinalisingitsnewStrategic Plan 2012-2016,theUniversitysetsomeambitioustargetsforitsKPIsfortheperiod2011-2013.2011isthefirstyearthattheUniversitywillbereportingagainstthissetofindicators.
ThefollowingStatementofServicePerformancecontainsinformationontheUniversity’sobjectives,CriticalSuccessFactorsandKPIsinordertodocumenttheservicesprovidedbyAUTtomeetstakeholderneedsandtoensuretheintentoftheStrategic Planisfulfilled.ForanoverallviewoftheperformanceoftheUniversity,theStatementofServicePerformancesectionmustbereadinconjunctionwiththesectionentitled ‘The Year: 2011’.
18 2011 annual rep o rt
LeArning And teAcHing strAtegic tHeMe u Auckland university of technology will provide excellent education that inspires students to reach their full potential.
criticAL success fActors 1, 2 And 5 uto be the best place to learn u to consolidate our higher education contribution u to sustain the quality and relevance of our curriculum
oBJectiVes uto ensure our graduates are knowledgeable, sought after and inspirational uto enhance curriculum flexibility and increase student choice uto build and broaden discipline strengthsuto encourage students to progress to, and be successful in, higher education programmes uto ensure that the learning experience is of high quality
AucklandUniversityofTechnologyoffersanactive,flexibleandwork-integratedlearningexperience;onethatinspirescreativity,curiosityandresourcefulnessinourgraduates.Corelearningandteaching,researchandcommunityengagementactivitiesareinterrelatedsothateachinformsandenrichestheother,resultingingraduateswhoareequippedwiththeskillsandknowledgetomakeapositiveimpactonandfortheircommunities.
TheAcademicAuditpanelvisitedAUTinJune2011,holdinginterviewswithvariousstaff,studentandotherstakeholdergroups.ThesubsequentreportdescribedAUT’slearningandteachingframeworkas“comprehensiveandambitious”,andcommendedtheUniversityforitsstrongemphasisonlearningspacesandadvancedtechnologiestoenhancethestudentlearningexperience.TheAuditpanelalsocommendedtheuseofAnnualProgrammeReportsaspartoftheUniversity’squalityassuranceandenhancementgoals.AUTwaspraisedforitscommitmenttoattractingandsupportingstudentsfromtraditionallyunder-representedgroupsandforitssupportofstudentsthroughtheFirst-YearExperienceprogrammeandtheStudentMentorProgrammes.
AUT’sBusinessSchoolgainedaccreditationfromtheinternationallyprestigiousAssociationtoAdvanceCollegiateSchoolsofBusiness(AACSB).Thisisanoutstandingachievement;AACSBaccreditationistheinternationalhallmarkofexcellence,placingtheschoolinthetopfivepercentinternationally.AACSBInternationalexpressedaparticularinterestintheschool’sbusinessinternships,auniqueworkplacementprogrammethatprovidesstudentswithhands-onbusinessexperience.
OtherbenchmarkingexercisesalsocommendedthelearningandteachingenvironmentatAUT.TheAustralasian Survey of Student Engagement (AUSSE) surveyedAUTstudentsandinvestigatedareassuchasactivelearning,academicchallenge,higherorderthinkingandcareerreadiness.AUTachievedconsistentlyaboveaverageresultswhencomparedwithbothotherNewZealanduniversities,anduniversitiesfromtheAustralianTechnologyNetwork.AUTalsoparticipatedinthe2011 International Student Barometer (ISB)survey.Onceagain,theUniversityachievedpleasingresults;participantsrecognisedAUT’sholisticapproachtolearningandteaching,andon-arrival,learning,livingandsupportservicesallratedhighly.Theseachievementsaretimely,asteachingandstudentsupportreceivegreaterscrutinythaneverbefore.
Improvingtheacademicreadinessoffirst-yearstudentsenteringAUTwasakeyfocusfor2011.TheUniversityundertookaprojectontertiaryreadinessofstudents,establishingaprotocolforidentifyinghigh-priorityorat-riskstudentsbasedonapplicationdata.Thisenabledtailoredandproactiveservicesandpersonalassistancewheretheneedwasgreatest.ThisworkbuiltontheUniversity’sin-depthorientationandtransitionprogrammes.
Inadditiontoacademicsuccess,AUT’sexperientiallearningprogrammepreparesstudentsforafulfillingandrewardingcareer.AswasnotedbytheAACSBreviewers,theprofessionallyorientedcurriculumisadistinctiveandvaluablefeatureofundergraduatestudyatAUT.Throughco-operativeeducation,clinicalplacementsandinternships,studentsgainreal-worldexperienceandcrucialtraininginmodernworkplaceskillssuchasteamwork,businessawarenessandcommunication.
2011 annual report 19
ProjectsalignedwithAUT’sLearningandTeachingEnabledbyTechnology(LATENT)strategyin2011includedatrialofdigitalrecordingsoflearningcontenttopromotestudentengagement,exploringtheuseofi-Padsinteachingandlearning,andtheprovisionofaprototypeblendedlearningspacetosupportthedevelopmentofthenewWGLearningPrecinct.
Duringtheyear,AUT’sInstitutionalResearchUnitpublishedtheresultsofits2010Postgraduate Research Experience Survey.ExcellentandefficientresearchsupervisionisanessentialcomponentoftheteachingenvironmentandAUThascommittedtogatherfeedbackfrompostgraduatestudentsonaregularbasis,inordertocontinuouslyimprovesupervisorypractices.Overall,77%ofrespondentsindicatedtheyweresatisfiedwiththeirresearchexperienceatAUT.Studentsweremostsatisfiedwiththewaytheirsupervisortreatedthemasanadultlearnerandcolleague(94%)andtheirsupervisor’senthusiasmfortheirresearcharea(93%).
Akeyfactorunderpinningalltheseresultsin2011wasAUT’senthusiasticandinspirationalstaff,bothacademicandadministrative.TheannualVice-Chancellor’sAwardsforExcellenceinTeachingrecognisetheoutstandingcontributionofteachingstafftotheUniversity.The2011winnerswereRouxelledeVilliers,FacultyofBusiness&Law;LexieMatheson,AppliedHumanities;DrRoyNates,Design&CreativeTechnologies;andAssociateProfessorDavidRobie,Design&CreativeTechnologies.Allwerecommendedfortheirsustainedcommitmenttoexcellentteaching,theirinnovativeandstudent-centredpractices,andtheirpositiveinfluenceontheircolleagues.
GraduationisalwaysahighlightoftheyearatAUT;achancetocelebratethesuccessofstudentsandthewiderUniversitycommunity.Thisyear,morethan4,500graduatesattendedtheceremoniesheldinAugustandDecember.Thisincluded40doctoralstudents,evidenceofthecontinuinggrowthofAUT’sresearchprogramme.
PerforMAnce MeAsures
Key performance indicators Target Actual Actual Actual EFTS 2011 2011 2010 2009
1.1.1 Domesticstudents 15,618 15,057 15,489 14,833
1.1.2 Internationalstudents 2,400 2,369 2,445 2,257
Notachieved
ThedomesticEFTStargetof15,618wasnotreachedin2011.StudentnumbersatAUTwerethehighestinitshistoryin2010andledtoconcernsaboutbreachingtheGovernment’slimitonenrolments.Anew,centrallymanagedadmissionssystemwasintroducedin2011toensuretheUniversitystayedwithinthedomesticenrolmentslevelssetbytheTertiaryEducationCommission(TEC).Thisproducedanovercautiousapproachtoadmissionssofeweroffersofplaceweremadethanwaswarranted.ThemajorityofthedeclineinEFTSwasatpre-degreelevel(down4%from2010).UndergraduateEFTSincreasedto75%ofallfundedEFTS(up4%from2010)andpostgraduateEFTSremainedstableat12%ofallfundedEFTS.Overall,thistrendofdecliningpre-degreeEFTSisconsistentwiththeUniversity’scommitmenttoincreasestudyatdegreelevelandabove.
The2011targetof2,400Internationalstudentswasnarrowlymissed.Aswithdomesticstudents,themajorityofthedeclinewasatpre-degreelevel(down2%to11%in2011).
1.1 Tomeetenrolmenttargets.
20 2011 annual rep o rt
PerforMAnce MeAsures (continued)
Key performance indicators Target ytd Actual Actual 2011 2011 2010 2009
1.2.1 AucklandUniversity 84% 82.1% 81.4% 81.0% ofTechnologyaverage
1.2.2 Agedunder25years 84% 81.4% 80.8% 80.2% (level4andabove)
1.2.3 Mäori(level4andabove) 78% 78.5% 76.8% 76.8%
1.2.4 Pasifika(level4andabove) 68% 68.9% 68.0% 65.4%
1.2.5 International5 85% 83.4% 83.7% 84.0%
Partiallyachieved(basedonprovisionalresults)
2011provisionalresultsarecalculatedusingtheTECWorkspace.Finalresultsfor2011willnotbeavailableuntilaftersubmissionoftheUniversity’sAprilSingleDataReturn(SDR).AUT’s2010provisionalaveragecoursecompletionresultsimprovedbyonepercentagepointwhenthefinal2010resultswerereleasedbytheTECin2011.
All2011provisionalresultsfordomesticstudentsimprovedon2010performance.Positively,AUThasexceededitstargetsforMäoriandPasifikaatlevels4andabove;Mäoriresultsinparticulararepleasing,up1.7percentagepointsonthepreviousyear.ItisnotpossibleatthisstagetodeterminewhetherAUTwillmeetits2011targetsforoverallcoursecompletionandforstudentsagedunder25years.
TheprovisionalfigureforInternationalstudentsiscalculatedusingAUT’sinternaldatasourcesandisthereforenotdirectlycomparabletoothercoursecompletionrates.The2011resultforInternationalstudentsissubjecttochangeandwillbefinalisedafterthesubmissionoftheAprilSDR.
1.2 Tomaintainorimprovethesuccessfulcoursecompletionratesofourstudents.4
4 Performancemeasures1.2,1.3,1.5and1.6areallTECeducationalperformanceindicatorsandprovideonemeasureoflearningandteaching performanceatAUT5 ResultsforInternationalstudentsarenotavailableontheTECWorkspace(whereallotherprovisional2011dataisheld).FiguresforInternational studentsarecalculatedusingtheUniversity’sDecember2011SDRfileandexcludemoduleswithanend-dateof2012
2011 annual report 21
Key performance indicator Target Actual Actual Actual 2011 2011 2010 2009
1.4.1 Percentageofstudentsin ≥90% 92% 91% 93% employmentorfurtherstudy
Achieved
1.4 Toensureatleast90%ofAUTgraduatesareinemploymentorfurtherstudysixmonthsaftergraduating.
Key performance indicators Target ytd Actual Actual 2011 2011 2010 2009
1.3.1 AucklandUniversityof 67% 64.2% 62.7% 66.4% Technologyaverage
1.3.2 Agedunder25years 64% 59.2% 59.8% 62.4% (level4andabove)
1.3.3 Mäori(level4andabove) 60% 57.4% 52.8% 59.0%
1.3.4 Pasifika(level4andabove) 50% 47.3% 45.6% 43.1%
1.3.5 International6 77% 65.1% 71.6% 76.0%
Notachieved(basedonprovisionalresults)
2011provisionalresultsarecalculatedusingtheTECWorkspace.FinalresultswillnotbeavailableuntilaftersubmissionoftheUniversity’sAprilSDR.AUT’s2010provisionalaveragequalificationcompletionresultsimprovedbyfourpercentagepointswhenthefinalresultswerereleasedbytheTECin2011.QualificationcompletionratesinparticulararesubjecttochangeduetotheUniversity’sSummerSchoolprovisionandco-operativeeducationmoduleswhichoftentakeplaceoverthesummerperiod.
AUT’sprovisional2011performanceshowsimprovedqualificationcompletionratesforallgroupsapartfromthoseagedunder25whichremainedstatic.AUTcontinuestoraiseconcernswithTECregardingthemethodusedtocalculatequalificationcompletion;thestrongenrolmentgrowthexperiencedin2009and2010islikelytoimpactnegativelyontheUniversity’squalificationcompletionratesin2010and2011.
TheprovisionalfigureforInternationalstudentsiscalculatedusingAUT’sinternaldatasourcesandisthereforenotdirectlycomparabletootherqualificationcompletionrates.The2011resultforInternationalstudentsissubjecttochangeandwillbefinalisedafterthesubmissionoftheAprilSDR.
1.3 Tomaintainorimprovethequalificationcompletionratesofourstudents.
6 ResultsforInternationalstudentsarenotavailableontheTECWorkspace(whereallotherprovisional2011dataisheld).FiguresforInternational studentsarecalculatedusingtheUniversity’sDecember2011SDRfileandexcludemoduleswithanend-dateof2012
PerforMAnce MeAsures (continued)
22 2011 annual rep o rt
Key performance indicator Target ytd Actual Actual 2011 2011 2010 2009
1.6.1 AucklandUniversityof 57% 80.1% 64.1% 44.9% Technologyaverage
Achieved(basedonprovisionalresults)
2011provisionalresultsarecalculatedusingtheTECWorkspace.Thefinalresultwillnotbeavailableuntilmid-2012,aftersubmissionoftheUniversity’sAprilSDR.AUT’s2010provisionalaverageprogressionrateimprovedbytwopercentagepointswhenthefinalresultswerereleasedbytheTECin2011.
TheUniversity’sprovisional2011progressionrateof80.1%exceededthe2011targetandsignificantlyimprovedon2010performance.
1.6 Tomaintainorimprovetheprogressionratefromfoundationleveltoundergraduatelevelcourses.
Key performance indicators Target Actual Actual Actual 2011 2011 2010 2009
1.7.1 Percentageofstudents ≥80% 84% 83% 84% whowouldrecommendAUT toothers
1.7.2 Percentageofstudents ≥80% 79% 80% 81% whowouldrecommendtheir programmeofstudytoothers
Partiallyachieved
AUT’sinternalmeasurementofstudentsatisfactionviatheAnnual Programme Survey(APS)reflectedtheUniversity’sperformanceonexternalbenchmarkingtoolssuchasAUSSEandtheISB;84%ofAUT’sstudentswouldrecommendtheUniversitytoothers.The2011targetof80%ormoreofstudentsrecommendingtheirprogrammeofstudywasnarrowlymissedalthoughthefigureremainedhighat79%andwasnotsignificantlydifferentfromthepreviousyear.AUTwillcontinuetodevelopcustomised,faculty-specificProgrammeActionReportswhichfocusonpriorityareasidentifiedintheAPS.Thereportsareusedtodevelopfacultyordepartmentalactionplansandthestudentexperienceofthoseprogrammesisthentrackedinsubsequentsurveystoensureactionshavebeeneffective.Inthisrespect,thefeedbackprovidedbystudentsplaysacriticalroleinAUT’scommitmenttocontinuousqualityassuranceandimprovement.
1.7 Toensureatleast80%ofstudentsaresatisfiedwithAUT.
PerforMAnce MeAsures (continued)
Key performance indicator Target ytd Actual Actual 2011 2011 2010 2009
1.5.1 AucklandUniversityof 83% 79.0% 79.5% 79.2% Technologyaverage
Notachieved(basedonprovisionalresults)
2011provisionalresultsarecalculatedusingtheTECWorkspace.FinalresultswillnotbeavailableuntilaftersubmissionoftheUniversity’sAprilSDR.AUT’s2010provisionalaveragestudentretentionrateimprovedbyonepercentagepointwhenthefinalresultswerereleasedbytheTECin2011.
The2011provisionalstudentretentionrateof79.0%remainedatasimilarleveltopreviousyears.
1.5 Tomaintainorimprovethestudentretentionrate.
2011 annual report 23
reseArcH And deVeLoPMent strAtegic tHeMe u Auckland university of technology will conduct excellent research, advancing knowledge and practice in its areas of expertise and supporting its higher education programmes.
criticAL success fActors 2, 3 And 4 uto consolidate our higher education contribution u to enhance our research contribution u to enhance our international reputation
oBJectiVes uto increase research activity uto enhance our research reputationuto ensure research activity is sustainable
TheUniversityhasmadeimpressivestridesindevelopingitsresearchcapabilitiesoverthelastdecade,althoughfurthergrowthisrequired.Preparationsforthe2012Performance-BasedResearchFund(PBRF)qualityevaluationroundwereunderwaythroughout2011.AUTcurrentlyreceivesapproximately$7millionayearfromPBRF,just5%ofthetotalfund.Toincreasethisshare,improvementinresearchqualityandoutcomeswouldneedtooutpacethatoftheexperienced,research-intensiveuniversities.Thisisachallenginggoal,butonetheUniversityhasembracedthroughaseriesofpolicyandproceduralchanges,increasedallocationofresources,andincentivesforacademicstaff.
Researchrevenueincreasedby17%in2011butnarrowlymissedthetargeted$11million.Thiswasadisappointingresultbutnotentirelysurprisinggiventhecurrentfiscally-constrainedenvironment.PositiveexamplesofourgrowingresearchcapacityincludeAUT’sexcellentresultsintheHealthResearchCouncil’s(HRC)fundinground.ProfessorValeryFeigin,ProfessorJaneKoziol-McLainandAssociateProfessorDeniseTaylorweresuccessfulingaininghealthresearchfundingtotallingapproximately$2.52million.AUTreceivedanadditional$829,000inHRCfellowshipfundingtodevelopcareersforemerginghealthresearchers.TwoAUTresearchersalsoreceived2011MarsdenFundgrants,eachvaluedatover$300,000.TheMarsdenFundsupportsleading-edgeresearchandisregardedasahallmarkofexcellence.DrIreneRyanwilluseherfundingtostudytherolesportplaysinmale-dominatedleadershipculturesandDrJiamouLiuwillfurtherhisresearchongametheorytounderstandhowcomputersystemsprioritiseconflictingrequestsfrommultipletasks.TheMinistryofHealthawardeda$2.6millioncontracttoProfessorMaxAbbottandhisteam,toundertakeanationalgamblingstudywithalongitudinalfollow-upcomponent.
During2011,AUT’scommercialisationteammanaged30projects,14ofwhichreceivedearlystagecommercialisationfundingorMinistryofScienceandInnovation(MSI)Pre-Seedfunding.Growthinindustry-engagedresearchisalsoastrategicpriorityandnewpartnershipswereestablishedin2011withAucklandArtGallery,FultonHogan,HighPerformanceSportNewZealand,andASICS,whonowsponsorAUT’spodiatryclinic.TheUniversityalsoheavilypromotedthestudentinternshipsfundedbytheMSI,andwasaprominentpresenceatindustryshowcaseevents.Twelvenewprojectshaveresultedfromtheseevents,worthatotalofalmost$0.5million.
TheVice-Chancellor’sawardsforresearchexcellencecelebratetheUniversity’sdevelopingareasofstrength.In2011,ProfessorElaineRushreceivedtheawardforresearchexcellenceforherworkwithProject Energize,whichhasdemonstrablyimprovedphysicalactivityandnutritionforthousandsofchildrenintheWaikatoregion.Emergingresearcherawardsweregivento:DrJiamouLiuforworkincomputerscienceandmathematics;NicolaKayes,specialisinginclient-centredapproachestorehabilitation,particularlyphysicalactivityforpeoplewithmultiplesclerosis;andDrBeomCheol(Peter)Kim,forraisingtheresearchprofileofthehospitalitydepartmentthroughpostgraduatesupervision.ProfessorJohnBitchenerreceivedanawardforexcellenceinpostgraduatesupervision.EstablishedResearchTeamawardswerepresentedtotheCentreforPhysicalActivityandNutritionandtheInstituteofBiomedicalTechnologies.TheGenderandDiversityResearchGroup,basedintheFacultyofBusinessandLaw,receivedtheawardforEmergingResearchTeam.
24 2011 annual rep o rt
PerforMAnce MeAsures
Key performance indicator Target Actual Actual Actual 2011 2011 2010 2009
Increasethenumberofquality 1,277 1,619 1,627 1,103 assuredresearchoutputs
Achieved
At1,619,totalqualityassuredresearchoutputsfor2011substantiallyexceededthetargetof1,277althoughwereslightlybehindthe2010result.The2011targetwassetinmid-2010basedonincrementalgrowthfromthe2009result.AUThasplacedsignificantresourcesintogrowingitsresearchcapabilityoverthepastthreeyearsandboththe2010and2011resultsprovideevidenceoftheUniversity’sachievementinthisarea.Itislikelythatthe2012Performance-BasedResearchFundqualityevaluationroundhasprovidedadditionalimpetustopublishresearchoutputs.
2.1 Increasethenumberofqualityassuredresearchoutputs.
Specialistandinter-disciplinarypostgraduateeducationisincreasinglyimportantintheknowledgeeconomy.In2011,12%ofAUT’sstudentpopulationwereenrolledinpostgraduateprogrammes.BasedonfindingsfromthePostgraduate Research Experiencesurvey,70%ofdoctoralrespondentshadnopreviousenrolmentatAUT,suggestingthattheUniversity’sresearchprofileandreputationisgrowing.
ProfessorJohnRaine,ProVice-Chancellor(InnovationandEnterprise),chairedanindependentreviewfortheMSIwhichresultedinthepubliclyreleasedreportPowering Innovation – Improving access to and update of R&D in the high value manufacturing and services sector.Thereporthadanumberofrecommendationsformaximisingtheeconomicandsocialbenefitsofthesector,including:increasingconnectionsbetweenresearchorganisationsandbusinesses;promotinggreatercommercialisationofnewideas;andmorefocussedGovernmentinvestment.
Key performance indicator Target Actual Actual Actual 2011 2011 2010 2009
Improvetheratioofoutputsto 1.40:1 1.62:1 1.70:1 1.19:1 facultyacademicstaff
Achieved
Aratioof1.62qualityassuredoutputsperacademicstaffmemberinthefacultiesexceededthe2011targetof1.40:1.The2011targetwassetinmid-2010basedonincrementalgrowthfromthe2009result(1.19:1).Thisexplainswhythe2011targetislowerthanwhatwasactuallyachievedin2010.AUThadbetterthanexpectedresultsin2010so,whilethe2011resultisslightlybelowthatachievedin2010,AUThasimproveditsoverallperformanceoverthepastthreeyearswithregardtoresearchoutputs.Giventhattherewereanadditional42academicFTEinthefacultiesin2011,theresultprovidesgoodevidenceofthewideningofAUT’sresearchactivity.
2.2 Improvetheratioofoutputstofacultyacademicstaff.
2011 annual report 25
Key performance indicators Target Actual Actual Actual 2011 2011 2010 2009
2.3.1 Totalexternalresearch $11.0M $10.8M $9.2M $8.4M revenue
2.3.2 Externalresearchrevenue $3.3M $3.6M $3.2M $2.4M fromresearchwithindustry
Partiallyachieved
Althoughthe2011targetforexternalresearchrevenuewasnarrowlymissed,AUT’sexternalresearchrevenuecontinuestoincrease,up17%to$10.8millionin2011.Theprevailingeconomicclimatehasledtoconstrainedfundingpoolsand,insomecases,theterminationoffundingstreams.AUT’ssuccessingarneringprestigiousgrantsfromtheMarsdenFundandHRCin2011istobecommendedinthishighlycompetitiveenvironment.Sourcesofresearchrevenuewerealsodiversifiedin2011,particularlywithrespecttoresearchwithindustry.Thirty-threepercentoftotalresearchrevenuewasderivedfromsuchresearch,withpartnersasdiverseasFisherandPaykelHealthcare,RugbyWorldCup,FonterraandFultonHogan.
2.3 Increaseexternalresearchrevenue.
Key performance indicator Target Actual Actual Actual 2011 2011 2010 2009
Increasetheproportionofstudents 12% 12% 11% 11% (EFTS)inpostgraduatestudy
Achieved
2.4 Increasetheproportionofstudents(EFTS)inpostgraduatestudy.
Key performance indicator Target Actual Actual Actual 2011 2011 2010 2009
Increasethenumberof 264 246 212 218 researchdegreecompletions
Notachieved
Althoughthe2011targetof264researchdegreecompletions(RDCs)wasnotmet,goodgrowthof16%wasseenfromthepreviousyear.Thisexceedsplannedgrowthof10%perannumintheInvestment Plan 2011-2013,butthe2010resultshavehadaflow-oneffectin2011.TheUniversitymonitorsbothindividualprogressandprogrammeissueswithregardtoresearchdegrees.Researchstudentsarerequiredtosubmitsix-monthlyreportstotheirsupervisorsdetailingtheprogressoftheirresearchwork.Ifanyproblemsareidentified,theseareraisedbythesupervisorwiththeAssociateDean(Postgraduate)beforesubmissionofthereportstothefacultypostgraduateboard.AUTwillcontinuetoinvestinbuildingpostgraduatecapabilitiesoverthenextfewyears.
2.5 Increasethenumberofresearchdegreecompletions.
PerforMAnce MeAsures (continued)
26 2011 annual rep o rt
PerforMAnce MeAsures (continued)
TheUniversitycelebratednumerousresearchachievementsin2011,asstaffmembersgarnerednationalandinternationalawards.ProfessorNikolaKasabovbecamethefirstAUTacademictogainagloballyprestigiousMarieCuriefellowship,andwasfollowedlaterintheyearbyProfessorAhmedAl-Jumaily.TheMarieCuriefellowshipsarefundedbytheEuropeanCommission’sFramework7researchprogramme;ProfessorKasabovusedhisfellowshiptospendseveralmonthsinEuropefurtheringhisresearchintoneuro-computing.ProfessorAl-Jumaily’sfellowshipwillbeusedtoadvancehisworkinrespiratoryengineeringwithinternationalcolleagues.ProfessorStephenHenrywasawardedtheRoyalSocietyofNewZealand’sprestigiousRJScottmedalforengineeringscienceandtechnology.ProfessorHenryisdirectorofAUT’sBiotechnologyResearchInstituteandreceivedthemedalinrecognitionofhispioneeringresearchintocellsurfacemodificationtechnology.SeveralstaffmemberswerealsorecognisedfortheircontributiontoNewZealandsociety.HohepaSpooner,TeAraPoutama,receivedanAppleDistinguishedEducators(ADE)award,forhisinnovativeuseofAppleproductsineducation.Oneoffewerthan20NewZealandrecipients,MrSpoonerledthedevelopmentofdigitalresourcesfortheteachingandlearningoftereoMäori.ProfessorElaineRushwasafinalistinNextmagazine’sWomanoftheYearawards,inrecognitionofherresearchonestablishinghealthylifestylesinchildren.
Achieved
2.6 ToenhancetheUniversity’sresearchreputation:staffcontributionstoresearchandinnovationarerecognisedwithnationalandinternationalawards.
AUTwasaprominentmemberoftheTEC-fundedindustryshowcaseeventsin2011,whichsoughttofacilitatealliancesbetweenresearchinstitutionsandbusinesses.Theeventswerehighlysuccessfulforbothparties;AUTnegotiated12partnershipsasaresult,worthalmost$0.5millionintotal.TheUniversityalsoestablishedascheduleofregularcommunicationwithAucklandbusinesses,promotingresearchopportunities,celebratingachievementsandseekingnewpartners.AUTsoughttobuildonitsinitialsuccessintheTechnologyTransferVoucherinitiative,usingadditionalMSIfundingtooffera‘FreeExpertforaDay’schemetobusinessesinterestedininvestinginresearch.Sevenvoucherproposalsarecurrentlyunderdevelopment,includingfivethatresulteddirectlyfromthisscheme.During2011,AUT’scommercialisationteammanaged30projectsandprovidedmarketingandbusinessdevelopmentadvicetoresearchgroupsaroundtheUniversity,includingtheTextileandDesignLaboratory,IndustrialInformationandControlCentre,FoodScienceResearchCentreandCoLab.Twospin-outcompanieswereestablishedin2011,withAUTEnterprisesLtdnegotiatingequityshareholdingsbasedonuniversityintellectualproperty.Finallyin2011,theInstituteofBiomedicalTechnologiesbecameafoundationmemberofthenationalCentreforMedicalDeviceTechnologies(CMDT),inpartnershipwiththeUniversityofAucklandandIndustrialResearchLtd.TheCMDTisaninnovationhubforthedevelopmentofmedicaldevicesandhealthtechnologies.
Achieved
2.7 Increasecommercialisationactivitiesorevents.
2011 annual report 27
engAgeMent strAtegic tHeMe u Auckland university of technology will actively engage with the communities we serve and contribute to their social and economic development.
criticAL success fActors 4 And 6 uto enhance our international reputation uto ensure that the staff and student profile better reflects the population we serve
oBJectiVes uto strengthen and build strategic relationships and partnerships that advance education, research, and economic and social development uto honour the commitment to the treaty of waitangi by being the university of choice for Mäoriuto encourage access and success in university education for students from the diverse communities within the Auckland region
Universitieshelptoshapetheircommunitiesthroughintellectualleadershipandpartnershipsthatdrivesocial,culturalandeconomicdevelopment.Asauniversitythatpromotesopportunity,AUTembracesitsresponsibilitytocreatechange,bothforindividualsandforsociety.Thiscommitmentunderliesallitsactivities;frominternationalagreementstoresearchpartnershipsandfromstudentrecruitmentinitiativestocommunityevents,theUniversityseeksmutuallybeneficialpartnershipsthatwillresultinsharedsuccess.
TheAcademicAuditreportmadeanumberofcommendationswithregardtoTeTiritioWaitangi,Pacificpeoplesandwidercommunityengagementactivities.TheentireAUTcommunitywascommendedfor“theembeddedethosofsupportfortheaspirationsofMäoriandforthemannerinwhichkaupapaMäoriisintegratedwithinstitutionalactivity”.ThepanelalsopraisedtheeffortstakentoensureresearchactivityandcurriculuminitiativesreflectedtheneedsandaspirationsofMäori;thecommitmenttoPacificresearchwasalsocommended,aswasAUT’s“responsivenesstoexistingandemergingcommunitiesofengagement”.
ThebiennialMäoriExpotookplaceinMay;onceagainthisexceptionaleventcelebratedtheverybestofMäoricultureandachievement,andguidedyoungMäoritowardsparticipationinhighereducation.TheExpowassupportedbyaseriesofotherinitiatives,includingKoAwatea,apartnershipbetweenAUTandtheCountiesManukauDistrictHealthBoard,theUniversityofAucklandandManukauInstituteofTechnology.ThisprojectaimstoaddressSouthAuckland’sfuturehealthworkforceneeds,andcomplementsAUT’shealthscienceprovisionatManukauCampus,andtheRangatahiproject,whichmentorsyoungMäorithroughschool,universityandintocareersashealthprofessionals.
Initssecondyearofoperation,ManukauCampusremainedakeymechanismbywhichAUTbroadenedaccesstoandparticipationinhighereducation.TheCampusexceededenrolmenttargetsfor2011andisemergingasafocalpointforthelocalcommunity.TheannualPlantationBusinessChallengewasheldattheCampusin2011;thisbusinesscasecompetitionforPasifikasecondarystudentsdevelopsentrepreneurialskillsandwasdeliveredinpartnershipwithManukauInstituteofTechnologyandthePacificBusinessTrust.PlantationBusinessChallengewasoneofaseriesofprojectsfundedbytheTECtoincreaseaspirationforhighereducationamongstsecondarystudents.Manyoftheseprojectsfocussedonstudentsfromtraditionallyunder-representedgroups.TheTECfundingendedinDecember2011andtheUniversityisinvestigatingalternativefundingopportunitiestoensuretheprojects’long-termsustainability.
TheAUTMillenniumCampusonAuckland’sNorthShorecontinuestobethefulcrumforAUT’sinvolvementinsportsscienceresearchandelitesport.TheNationalTrainingCentreforhighperformanceathletesisthefirststageofa$29millionexpansionoftheCampus.Thisworld-classtrainingandresearchcentrehousesasportssciencelaboratory;astrength,conditioningandrecoverycentre;sportsmedicineservices;andtheheadquartersofHighPerformanceSportNewZealand.Thecentreisbeingusedbymanyeliteathletesintheirpreparationforthe2012OlympicGamesinLondon.
28 2011 annual rep o rt
7 Participationiscalculatedusingtheprimaryself-selectedethnicityforeachstudent.ThisisdifferentfromhowparticipationiscalculatedbyTECwhich usesallethnicidentitiesselectedbyastudent;thatis,thesamestudentcanbecountedmultipletimesiftheyselectmorethanoneethnicidentity
PerforMAnce MeAsures
AsingleAucklandCounciloffersopportunitiesforgreaterregionalcollaborationandcohesionbetweenmajorstakeholders.AUThasworkedcloselywiththeCounciloverthelastyear,sharingexpertise,promotingaregion-widetertiaryeducationstrategy,andidentifyinganumberofsharedinitiativesforthefuture.AUTCommercialisationandtheFacultyofDesignandCreativeTechnologieshavealsobeeninvolvedindiscussionsonthedevelopmentofahigh-techinnovationprecinctinWynyardQuarter.EngagementwiththisprojectwouldprovideopportunitiestostrengthentheUniversity’slinkswithothernationalandlocalgovernmentagencies,includingAucklandTourism,EventsandEconomicDevelopment(ATEED),theMinistryofScienceandInnovation(MSI)andIndustrialResearchLtd.
CommercialisationisakeyaspectofAUT’sengagementstrategy,bothnationallyandinternationally.TheBusinessInnovationCentrecurrentlyhosts17start-upcompaniesinvaryingstagesofdevelopment.Thisyear,AUTwasalsochosenasapreferreduniversitypartnerfortheMSI’sTechnologyTransferVoucherscheme.Thispilotschemeprovidesfundingtosupportresearchanddevelopmentpartnershipsbetweenbusinessesandresearchagencies.AUTwascloselyinvolvedasafounderandshareholderinKiwinet,anetworkofcommercialisationorganisationsfromsixuniversitiesandthreecrownresearchinstituteswithacombinedresearchexpenditureofmorethan$500million.Kiwinet,whichencompassesalargeproportionofNewZealand’ssciencecapability,willincreasethescaleandimpactofcommercialisationinNewZealandbyfacilitatingacollaborativeandcapablecommercialisationecosystem.Severalinternationalcommercialisationprojectswereadvancedin2011;representativesofAUTCommercialisationandtheGeoinformaticsResearchCentre(GRC)travelledtoIndiainMaytoparticipateinanation-wideprojecttoprovideagro-meteorologicalinformationtofarmersthroughthemobilephonenetwork.ThisvisitwasfollowedbyaMemorandumofUnderstandingbetweentheGRCandIndia’sTataConsultancyServices,whichwillfurtheramutualinterestinagro-meteorologicalresearch,andthedevelopmentofrelatedtechnologies.
Finally,AUTdevelopedanewInternationalisationStrategyin2011,whichoutlinedaimsandprocessesforinternationalengagementactivities.AUThasbeenhighlysuccessfulinattractingstudentsfromabroad,collaboratingwithinstitutionsoverseasandbringingourexpertisetobearonglobalchallenges.
Key performance indicators Target Actual Actual Actual 2011 2011 2010 2009
3.1.1 Mäoriparticipation 9% 9% 10% 10%
3.1.2 Pasifikaparticipation 11% 12% 12% 11%
Achieved
3.1 ToensuretheproportionofMäoriandPasifikastudentsbetterreflectthedemographicmixoftheregion.7
Throughout2011,seniorrepresentativesofAUTworkedwiththenewAucklandCounciltodetermineeducation,skillsandeconomicdevelopmentprioritiesfortheregion.AUTwasalsoheavilyinvolvedinthecreationofKiwinet,andwasafoundingmemberoftheMSI’sTechnologyTransferVoucherscheme.Bothinitiativesaredesignedtofosterresearchpartnershipsbetweenthepublicandprivatesectors,withresultantbenefitsforbothpartiesandtheeconomyasawhole.NinenewpartnershipswereestablishedduringtheyearwithuniversitiesinthePacific,AsiaandEurope.Amongthese,thePacificMediaCentreincreaseditspresenceinthePacificregionformalisingarelationshipwiththeUniversityoftheSouthPacificinRarotonga.TheFacultyofDesignandCreativeTechnologiessignedMemorandaofUnderstandingwithGermany’sLeibnizUniversityofHanoverandUniversitiTunHusseinOnninMalaysia.TheSchoolofEducationagreedtoprovideteachingtrainingforThailand’sNationalTeacherIn-serviceCentre(NIDTEP)andtheUniversityformalisedanarticulationagreementinhospitalityandtourismwithSouthKorea’sNamseoulUniversity.
Achieved
3.2 Tocreatenewlocal,nationalandinternationalpartnershipsthatenhancetheUniversity’sprofile.
2011 annual report 29
PerforMAnce MeAsures (continued)
AUTfunctionsasacriticandconscienceofsociety;thissectionsummarisessomeofmanyinstancesin2011wheremembersoftheUniversitysharedtheirexpertisewithawideraudience.InOctober,theGovernmentannouncedaseriesofreformstothecriminaljusticesystem,inresponsetoanAUTinvestigationintotheexperiencesofchildwitnesses.Thecourtwilladoptamoreinquisitorialsystemwhendealingwithchildwitnesses,seektoexpeditethetrialprocess,andprovideasafeandnon-threateningenvironmenttotestifyin.ThereformsweredrivenbyresearchundertakenbytheInstituteofPublicPolicy’sDrsKirstenHannaandEmmaDavies,whichraisedconcernsthatchildrenweretraumatisedbytheprevailingadversarialsystem.ProfessorElaineRushreceivednationalrecognitionforherworkon Project Energize,whichrespondedtoconcernsabouttheincreasedincidenceofchildhoodobesity.ProfessorValeryFeiginreceivedmediaattentionforhisresearchintotheefficacyofsupplementscontainingenzogenol,apinebarkextract,forimprovingmemoryandcognitivefunctionforsufferersoftraumaticbraininjury.Moregenerally,duringtheperiodfromlateFebruarytotheendofMay,mediamonitoringshowedthatAUTstaffweresoughtforexpertcommentoncurrenteventsorissuesofnotemorethan220times.WhileProfessorPaulMoon,fromTeAraPoutama,wasAUT’smostprolificcommentatorin2011,AUTstaffmemberscommentedonawiderangeofissues,includingtheenvironment,health,racerelationsandlocalgovernment.
Achieved
3.3 Tobeengagedinpublicdebateandenquiry.
30 2011 annual rep o rt
stAff strAtegic tHeMe u Auckland university of technology will attract, develop and retain excellent staff.
criticAL success fActor 7 uto ensure our people are inspired by, and contribute to, the achievement of our mission
oBJectiVes uto ensure the university provides a challenging, stimulating and rewarding work environment for all staff uto promote the development of well-rounded careers for all staff
HighlevelsofstaffengagementareanimportantdeterminantforachievingAUT’sstrategicgoals.Throughout2011,theUniversityhasincreaseditseffortstomeasuretheengagementofstaff,improvesafetyandsecurityofstaffwhileatwork,recognisegoodperformanceandcelebratesuccessthroughouttheinstitution.
Theinauguralstaffengagementsurveyinmid-2011highlightedtheUniversity’sstrengthsasanemployerandidentifiedsomeareasfordevelopment.Broadly,theresultswereverypositive;AUThadaboveaveragelevelsofstaffengagementwhencomparedtootherlarge-scaleorganisationsinthepublic,privateandeducationsectors.StaffreportedexperiencingastrongsenseofpersonalachievementfromtheirjobsandfeelingpositiveabouttheopportunitiestheyhaveatAUT.ThisstrongsenseofbelongingandpridewasalsonotedbytheAcademicAuditpanelintheirreviewandisreflectedinthestaffturnoverratein2011;4.5%foracademicstaffand6.6%foradministrativestaff.Thesurveyalsorevealedthekeydriversofengagementforstaff:asenseofcommonpurpose;confidenceinleadersandleadership;andafocusonlearningandcontinuousimprovement.TheUniversityhasadoptedacomprehensiveresponsetothesurvey,withaparticularfocusonthesecrucialaspects.Eachfacultyanddivisionhasadetailedplantoincreasestaffengagement,basedonthespecificissuesidentifiedforthatarea.Inaddition,university-wideinitiativeswillaimtoimprovecoaching,performancemanagementandleadershipskills,andtofostergreatercollaborationandco-operationopportunities.Thestudywillberepeatedin2013.
Increasingtheresearchcapabilityandimpactofacademicstaffcontinuedtobeafocusin2011.TheAcademicWorkExecutiveGroupreleasedthenewAcademicContributionFrameworkwhichestablishestheUniversity’sexpectationsofacademicstaffinthreeareas:learningandteaching,researchandscholarship,andacademicleadershipandservice.Theframeworkalsorecognisesthatstaffworkloadsmustallowforabalanceofallthreeactivities.ThepolicywassubsequentlyendorsedbytheTertiaryEducationUnion.Afurther116academicstaffmembersvoluntarilytransferredontoemploymentconditionsthatareconducivetoconductingresearchin2011.Thiswasintendedtobethefinalyearofthisinitiative,butcontinuingdemandhasledtoitsextensionforanotheryear.TheDoctoralStudyAwardsareanothersought-afterinitiativedesignedtoincreaseresearchcapacity;recipientsarereleasedfromteachingdutiesforonesemestertofocusontheirdoctoralstudy.Therewere14successfulapplicantsin2011,andinthethreeyearsoftheawardstodate,16recipientshaveeithergraduatedorarenowunderexamination.TheUniversityalsolaunchedasuccessfulshort-termpostdoctoralfellowshipsprogrammein2011.Thefellowshipsproviderecentdoctoralgraduateswiththeopportunitytoestablisharesearchcareer,gainexperiencewithpeer-reviewprocessesandreceiveguidancefromanexperiencedmentor.
Thecontributionandexpertiseofresearchstaffgainednationalandinternationalrecognitionin2011.InadditiontoresearchawardspreviouslynotedintheResearchandDevelopmentsectionofthisreport,DrPaulCullen,fromtheFacultyofDesignandCreativeTechnologies,wasawardedaFulbrightSeniorScholarshiptoresearchcollaborativeandnon-galleryartpracticesatAuburnUniversityinAlabama;ProfessorJohnRaine,ProVice-Chancellor(InnovationandEnterprise)wasappointedastheprincipalmoderatorforthe2012Performance-BasedResearchFundqualityevaluationround,andTagaloateleProfessorPeggyFairbairn-DunlopwillchairthePacificResearchExpertAdvisoryGroup.Anothertenstaffhavebeenappointedaspanellists,inrecognitionoftheirstandingintheirdiscipline.Ninestaffwerepromotedtoprofessorshipsinthe2011academicpromotionsround.
2011 annual report 31
PerforMAnce MeAsures
TheUniversityremainscommittedtomaintainingasafeplaceofworkandstudyforstaffandstudents,includingestablishingsafetysystemsattheManukauandAUTMillenniumCampuses.Thefocusofoccupationalhealthandsafetyworkin2011wasparticipationandaccountability,involvingmanagement,staffandcontractorsinordertomaintaincurrentlevelsofcompliance,improvethesafetycultureandreducethenumberandseverityofinjuries.AccidentCompensationCorporationmeasuresAUTfavourablyagainstindustrypeergroups;theUniversity’sIncidentRate(numberofincidentspermillionhoursworked)reducedfrom48to17overthefiveyearperiodfrom2007andtheCompensationClaimsRateremainedsteadyoverthesameperiod(13in2007to12in2011).EmergencymanagementprocedureswerereviewedfollowingthedevastatingChristchurchearthquakes.ThenewEmergencyManagementPlanwasadoptedinOctober2011andisdesignedtocontrolandmitigatetheeffectofacrisisontheUniversity.Thiscomprehensiveplanoutlinestheproceduresfordirectingtheimmediateresponse,co-ordinatingsupportforstaffandstudentsandrestoringessentialinfrastructure,andthetimelyrestorationofusualbusiness.
Key performance indicators Target Actual Actual Actual 2011 2011 2010 2009
4.1.1 Ensureexpenditureofstaff 1.50% 1.52% 1.62% 1.10% development(academicand allied)equals1–1.5%of grosssalaries
4.1.2 Ensureaveragestaff turnoverisnohigherthan: 6%foracademicstaff ≤6% 4.5% 4.3% 6.0% 14%foradministrativestaff ≤14% 6.6% 6.7% 9.1%
Achieved
4.1 Toensurethedevelopmentandretentionofstaff.
32 2011 annual rep o rt
sustAinABiLitystrAtegic tHeMe u Auckland university of technology will ensure its sustainability through good management and strong performance and reputation.
criticAL success fActors 8, 9 And 10 uto improve the physical infrastructure of the campus uto be a high performing organisation uto ensure financial viability
oBJectiVes uto ensure financial sustainability uto enhance the effectiveness and efficiency of the university’s operations uto be a good steward of the university’s assets
Amajorfinancialhighlightfortheyearwasthesuccessfulconversionofthe$50millionSuspensoryLoanintoequity.TheloanwasgrantedbytheCrownin2008andwasintendedtosupportinfrastructureinitiatives,reducedebt,andassistAUTwithdevelopingresearchcapability.TheUniversitymetallitsdevelopmenttargetstwoyearsearlierthananticipated,enablingfullconversionoftheloanin2011ratherthan2013.ThisisasignificantachievementandistestamenttothedriveanddeterminationofmanystaffacrosstheUniversity.Inthisconstrainedfinancialclimate,AUTisinvestigatingpotentialoptionsfordiversifyingitsrevenuebase,includingleveragingofnon-coreassetsandjointventuressuchasthesuccessfulAUTMillenniumCampus.
Commitmenttosustainabilitypervadesallaspectsofuniversitylife,extendingbeyondfinancialconsiderationstoencompassbuildingdesign,curriculumdevelopments,environmentalandhealthissues,andrelationshipswithourstaff,studentsandcommunities.Akeystrategicfocusfor2011continuedtobethedevelopmentoftheManukauCampus,thesuccessofwhichreliesonaflexible,innovativeapproachtoteachingandlearning,maximisingresources,andasolidpartnershipwiththeCountiesManukaucommunity.Todate,theUniversityhascreatedadaptablelearningspacesattheManukauCampusthatsupportbothteacher-ledandself-directedstudy.Goodusehasbeenmadeoftechnologiestosupportlearning,includingtwo-wayvideoconferencinglinkstotheNorthShoreandCityCampuses,wirelessaccessoncampusandtheadoptionofnewapproachestosupportstudentaccesstocomputersandbroadband.AUThasalsoexploredthebenefitsofalternativetimetablesandopeningaccesstothecampustomeettheneedsoflocalfamiliesandbusinesses.AUTintendstodevelopthecampusfor5,000EFTSby2020.Thiswillrequireamajorbuildingprogrammethatwillbeoutlinedinthecampusplantobepreparedin2012.
Workhasprogressedthroughout2011onAUT’slargest-evercapitalproject;theWGLearningPrecinctisonscheduleforoccupationbyearly2013.Thenewprecinctincorporatessustainablebuildingmethods,includingsolarheating,naturalventilationanddaylight,low-energylighting,sustainablyharvestedtimberandlong-lifematerials.Thedesignoftheprecinctalsoreflectsthechangingnatureofteachingandlearninginthe21stcentury.Studentsareseekingmorecollaborativeandimmersiveexperiencesandthedemandsofinterdisciplinaryresearcharestimulatingnewacademicrelationshipsandinteractions.Asaresult,learningcanhappenanywhereandwillincreasinglytakeplaceinvirtualspacesaswellasphysical.WGLearningPrecinctwillthereforehaveflexiblelearningspacesthatcanbereallocatedandreconfigured,largelobbiesforuseassocialstudyareas,andwillbeequippedwiththelatesttechnologiestoenergiseandinspirestudentsandstaff.
AUT’sinnovativeandfuture-focussedapproachtobuildingdesignwasagainrecognisedbythePropertyCouncilofNewZealandinthe2011PropertyIndustryAwards.AUTreceivedmeritawardsforthreebuildingsintheeducationandartscategory:thenewSchoolofEducationBuildingandthenewAFLectureTheatresandConferenceCentre,bothontheNorthShoreCampus;andtheretrofitoftheMCTeachingandLibraryBuildingatManukauCampus.TheMCretrofitalsoreceivedameritawardintheheritageandadaptivereusescategory.
OnWorldSmoke-freeDay2011,AUTannouncedthatitscampuseswillbetotallysmokefreefrom1February2012.Asmoke-freepolicyisconsistentwithAUT’spositionasamajorproviderofhealtheducationandresearchandwillcreateahealthierenvironmentforstudents,staffandvisitors.TheUniversityisprovidingarangeofsupportservicestostaffandstudentswhowishtostopsmoking.
2011 annual report 33
PerforMAnce MeAsures
Key performance indicators TEC 2011 Target Actual
tec financial covenants
1. MaximumCommercialDebt $70,000 Maximum $40,594 Borrowings($000s)
2. MaximumAggregateFinancings $110,000 Maximum $81,029 ($000s)
3a. MinimumNetSurplusRatio 3.0% Minimum 3.09%
3b. MinimumOperatingCashInflows/ 111% Minimum 122% OperatingCashOutflows
3c. DebttoDebtPlusEquity 25% Maximum 18%
3d. InterestCoverRatio 2.00 Minimum 3.73
3e. DebtCoverRatio 3.25 Maximum 1.47
Achieved
5.1 TomeettheratiosrequiredundertheUniversity’sConditionsofFunding.
Key performance indicator Target Actual Actual Actual 2011 2011 2010 2009
5.2.1 Totalstaffcostsasa <60% 61% 59% 62% proportionoftotalrevenue
Notachieved
Totalstaffcostsincreasedby$14millionin2011,up8.3%from2010.Staffcostsincludedanunbudgetedprovisionof$1.9millionforresearchandstudyleave,whichwillenablecontinuedsupportofstrategicprioritiesregardingresearchcapabilityandcapacitybuilding.Ifthisprovisionwasexcluded,staffcostswouldhavetotalled60%ofrevenue.
5.2 Tomaintainaneffectiveandefficientoperatingenvironment.
Key performance indicator Budget Budget Actual Actual 2012 2011 2011 2010
5.3.1 Todevelopandimplementa fiveyearcapitalplan($000s)
Major new buildings
CityCampus
WGPrecinct 45,915 35,000 32,850 7,294
Other – – – 134
NorthShoreCampus
EducationBuilding – – – 2,945
ManukauCampus
Refurbishment 1,382 3,100 1,984 3,366
AUTMillenniumCampus 814 – 5,838 –
total major new buildings 48,111 38,100 40,672 13,739
5.3 ToensureprogressismadeagainsttheCapitalAssetManagementPlan.
34 2011 annual rep o rt
PerforMAnce MeAsures (continued)
Key performance indicator Budget Budget Actual Actual 2012 2011 2011 2010
5.3.1 Todevelopandimplementa fiveyearcapitalplan($000s)
other capital
Plannedmaintenance/ 4,000 4,149 2,951 1,748 minorcapitalworks
Library 6,000 5,551 5,238 4,732
Informationtechnology 7,906 5,781 3,319 2,441
Plantandequipment 6,833 4,899 5,245 2,954
Other – 120 – –
total other capital 24,739 20,500 16,753 11,875
total capital plan 72,850 58,600 57,425 25,614
Achieved
TheUniversityhasdevelopedatenyearCampus Asset Management Plan 2010-2020whichisderivedfromandsupportsthestrategicdirectionoftheUniversityfortheperiod.ThefiveyearcapitalplanisasubsetofthetenyearPlan.ThePlanwillensureapositivelegacyforAUT’sstakeholders,bothpresentandfuturegenerations.ThecurrentmajorprojectistheWGPrecinct,abuildingof20,000squaremetres,whichwilltransformtheCityCampusonitscompletioninFebruary2013.SignificantresourcescontinuetobedirectedtowardsrefurbishingManukauCampus,toconvertthepreviousofficebuildingsintomodernlearningandteachingspaces.During2011,landadjacenttotheAUTMillenniumCampusbecameavailableandwasacquiredtoallowforfutureexpansionoftheCampus.Furtherresourcewasappliedtofit-outthenewextensiontotheexistingbuilding.Thiswillcontinuein2012.TheUniversityplanstocontinuetoinvestinitsLibrary,ITandequipmentandtomaintainaprogrammeofplannedmaintenanceoverthenextfiveyears.
5.3 ToensureprogressismadeagainsttheCapitalAssetManagementPlan.
continued
2011 annual report 35
equALoPPortunities
36 2011 annual rep o rt
equAL oPPortunitiesThroughitsTertiary Education Strategy 2010-2015,theGovernmentcontinuestoprioritiseparticipationandsuccessofMäori,Pasifikaandstudentswithadisabilityintertiaryeducation.AUTretainsitscommitmentstothesegroupsbutwideneditsequalopportunitiespracticein2011tobettersupportthediversecommunitiesthatworkandstudyattheUniversity.SomeexamplesfromtheyearincludethedevelopmentofanAUTgenderequitystudytoadvanceunderstandingofthecareerpathwaysoffemaleacademicstaffandtoidentifyissuesandbarriersfacedbythemduringthepromotionprocess.TheUniversityalsohostedanumberofinternationalconferencesfocussedonsharingbestpracticeandresearcharoundequityanddiversity.TheseincludedtheEDI(EqualityDiversityandInclusion),EOPHEA(EqualOpportunityPractitionersinHigherEducationAustralasia)andRefugeeEducationConferences.
AUTwaspleasedtobeselectedasafinalistintheEqualEmploymentOpportunities(EEO)TrustWorkLifeAwardsin2011.AUT’snominationsincludedtheHäpaiprogrammethatseekstobuildtheMäoriacademicworkforceatAUT,andthePasifikaLearningVillagesprogrammewhichsupportsPasifikastudentstoenterthehealthworkforce.AssociateProfessorPareKeihawasalsonominatedasaninnovatorinthisarea.AllnominationsareatestamenttothecalibreofworkundertakentosupportequalopportunitiesatAUT.
studentsImprovingMäoriandPasifikasuccessremainedafocusin2011.TheUniversityiscommittedtoliftingcompletionandretentionscoresforMäoriandPasifikastudentsasmeasuredbytheTEC’seducationalperformanceindicators.AUTrecognisesthelimitsofsuchmetricsandcontinuestoadvocateforaholisticviewofwhatisconsideredstudentsuccessandachievement.
TheAgents of ChangeandRangatahiprogrammescontinuedtotakeabroadapproachtoliftingaspirationfor,andtransitioninto,tertiaryeducation,aswellasprovidingappropriatepastoralandacademicsupporttoaidprogressionandcompletion.Studentsuccessisfosteredbyinvolvingfamilies,schoolsandcommunitynetworksinthestudentjourneyatAUT.
Resultsfromthe2011Annual Programme SurveyshowedthatMäoriandPasifikastudentsratedtheirexperienceatAUThigherthanotherethnicgroups.Eighty-threepercentofbothMäoriandPasifikastudentsweresatisfiedwithAUTwhichsurpassestheoverallstudentsatisfactionrateof79%fortheUniversityandalignswith2010scoresforMäoriandPasifika.
stAffAUTremainscommittedtoincreasingthenumberofMäoriandPasifikastaff,particularlyinacademicpositions.TheUniversityrecognisesthatthemarketforMäoriandPasifikaacademicsiscompetitivesohasfocussedinrecentyearsongrowingapooloftalentfromwithinitsownMäoriandPasifikastudentcohort.
In2011,theUniversity’sstaffnetworkscontinuedtocontributetotheUniversity’ssenseofcommunity.NgaWhänauMäorikiHorotiu(theMäoriStaffNetwork),thePasifikaStaffNetwork,WomenonCampus,theAsianStaffNetwork,OUT@AUTStaffNetworkandtheAUTStaffDisabilitiesNetworkwereallsupportedfinanciallybytheUniversityin2011;thenetworkshostedeventsandprofessionaldevelopmentworkshopsfortheirmembersandparticipatedintheconsultationprocessfortheUniversity’snewStrategic Plan 2012-2016.
2011 annual report 37
finAnciAL stAteMents
38 2011 annual rep o rt
For the year ended 31 December 2011
university consolidated 2011 2011 2010 2011 2010 Actual Budget Actual Actual Actual $000s $000s $000s $000s $000s
Note
reVenue
Governmentoperationalfunding 2 141,620 140,668 138,709 141,620 138,709
Studenttuitionfees 3 116,437 117,653 112,849 116,437 112,849
Researchgrants 4 10,766 12,340 9,215 10,858 9,270
Otherincome 5 29,632 23,694 26,618 30,293 26,961
totAL reVenue 298,455 294,355 287,391 299,208 287,789
eXPenses
Personnelcosts 6 182,286 174,748 168,268 182,286 168,268
Suppliesandothercosts 7 70,436 70,626 64,906 71,060 65,150
Depreciation,amortisation 8 33,138 30,361 32,322 33,138 32,322andimpairment
total expenses before finance costs 285,860 275,735 265,496 286,484 265,740
Operatingsurplusbeforefinancecosts 12,595 18,620 21,895 12,724 22,049
Financecosts 9 3,374 3,620 3,548 3,374 3,548
operating surplus 9,221 15,000 18,347 9,350 18,501
Shareofassociate’ssurplus 14 – – – 11 45
Shareofjointly-controlled 15 – – – 726 2,266entity’ssurplus
net surPLus 9,221 15,000 18,347 10,087 20,812
TheaccompanyingnotesformpartoftheseFinancialStatements.
incoMe stAteMent
2011 annual report 39
For the year ended 31 December 2011
university consolidated 2011 2011 2010 2011 2010 Actual Budget Actual Actual Actual $000s $000s $000s $000s $000s
Note
net surPLus 9,221 15,000 18,347 10,087 20,812
otHer coMPreHensiVe incoMe
Netgain/(loss)onavailable-for-sale 26 (2) (4) (4) (2) (4)financialassets
Netgain/(loss)oncashflow 26 9 300 (371) 9 (371)hedges
Netgain/(loss)onlandand 26 – – 242 – 242buildingsrevaluation
total other comprehensive income 7 296 (133) 7 (133)
totAL coMPreHensiVe incoMe 9,228 15,296 18,214 10,094 20,679
TheaccompanyingnotesformpartoftheseFinancialStatements.
stAteMent of coMPreHensiVeincoMe
40 2011 annual rep o rt
As at 31 December 2011
university consolidated 2011 2011 2010 2011 2010 Actual Budget Actual Actual Actual $000s $000s $000s $000s $000s
Note
current Assets Cashandcashequivalents 10 2,821 1,879 3,706 3,891 4,662Short-terminvestments – – 129 – 129Tradeandotherreceivables 11 4,358 8,547 23,474 4,523 23,550Inventories 214 171 204 214 204Prepayments 1,938 1,059 1,771 1,938 1,771Derivativefinancialinstruments 23 52 – 14 52 14
total current assets 9,383 11,656 29,298 10,618 30,330
non-current Assets Available-for-salefinancialassets 12 135 185 157 135 157Investmentinsubsidiaries 13 100 100 100 – –Investmentinassociate 14 417 417 417 526 535Investmentinjointly-controlled 15 18,300 18,300 18,300 21,147 20,421entityProperty,plantandequipment 16 495,198 488,745 464,525 495,198 464,525Intangibleassets 17 3,220 3,549 3,442 3,220 3,442
total non-current assets 517,370 511,296 486,941 520,226 489,080
totAL Assets 526,753 522,952 516,239 530,844 519,410
current LiABiLities Tradeandotherpayables 18 28,944 20,636 26,185 28,969 26,156Incomeinadvance 19 32,201 24,725 42,778 32,201 42,778Employeeentitlements 20 14,307 12,333 13,565 14,307 13,565Provisions 21 488 90 82 488 82Financeleaseborrowings 22 5,320 5,905 5,079 5,320 5,079Derivativefinancialinstruments 23 18 30 176 18 176
total current liabilities 81,278 63,719 87,865 81,303 87,836
non-current LiABiLities Borrowings 24 40,594 44,700 33,550 40,594 33,550Employeeentitlements 20 4,529 2,375 2,214 4,529 2,214Provisions 21 808 720 706 808 706Financeleaseborrowings 22 35,115 36,892 36,851 35,115 36,851Derivativefinancialinstruments 23 351 55 203 351 203
total non-current liabilities 81,397 84,742 73,524 81,397 73,524
totAL LiABiLities 162,675 148,461 161,389 162,700 161,360
equity Generalequity 25 247,062 255,879 237,841 251,128 241,041Revaluationreserves 26 117,016 118,612 117,009 117,016 117,009
total equity 364,078 374,491 354,850 368,144 358,050
totAL LiABiLities And equity 526,753 522,952 516,239 530,844 519,410
TheaccompanyingnotesformpartoftheseFinancialStatements.
BALAnce sHeet
2011 annual report 41
For the year ended 31 December 2011
university consolidated 2011 2011 2010 2011 2010 Actual Budget Actual Actual Actual $000s $000s $000s $000s $000s
totAL equity At tHe 354,850 359,195 336,636 358,050 337,371Beginning of tHe yeAr
coMPreHensiVe incoMe
NetSurplus 9,221 15,000 18,347 10,087 20,812
OtherComprehensiveIncome 7 296 (133) 7 (133)
total comprehensive income 9,228 15,296 18,214 10,094 20,679
totAL equity At tHe 364,078 374,491 354,850 368,144 358,050end of tHe yeAr
TheaccompanyingnotesformpartoftheseFinancialStatements.
stAteMent of cHAnges in equity
42 2011 annual rep o rt
For the year ended 31 December 2011
university consolidated 2011 2011 2010 2011 2010 Actual Budget Actual Actual Actual $000s $000s $000s $000s $000s
Note
cAsH fLows froMoPerAting ActiVities
Receiptsfromgovernmentgrants 141,379 139,560 140,072 141,379 140,072
Receiptsfromstudenttuitionfees 122,911 117,791 112,162 122,911 112,162
Receiptsfromservice-providedactivities 31,696 29,059 24,270 31,696 24,270
Interestreceived 510 199 373 537 389
Dividendreceived 262 25 22 262 22
Receiptsfromotherrevenue 9,912 8,666 13,292 10,523 13,619
Paymentstoemployees (179,229) (174,748) (166,031) (179,229) (166,031)
Paymentstosuppliers (65,210) (67,788) (63,201) (65,733) (63,618)
Interestpaid (3,374) (3,810) (3,548) (3,374) (3,548)
NetGSTreceived/(paid)8 (3,547) (2,000) 1,533 (3,548) 1,512
net cAsH fLows froM 29 55,310 46,954 58,944 55,424 58,849oPerAting ActiVities
cAsH fLows froMinVesting ActiVities
Proceedsfromsaleofproperty, 93 – 50 93 50plantandequipment
Purchasesofproperty, (56,545) (55,501) (25,614) (56,545) (25,614)plantandequipment
Purchasesofintangibleassets (1,029) (3,099) (1,430) (1,029) (1,430)
Receiptonmaturity/(placement) 129 – (129) 129 (129)ofshort-terminvestments
Disposal/(acquisition)ofinvestments 20 – (7,500) 20 (7,500)
net cAsH fLows froM (57,332) (58,600) (34,623) (57,332) (34,623) inVesting ActiVities
cAsH fLows froMfinAncing ActiVities
Proceedsfrom/(repaymentof) 7,044 16,779 (15,150) 7,044 (15,150)borrowings
Repaymentoffinancelease (5,907) (5,079) (6,282) (5,907) (6,282)borrowings
net cAsH fLows froM 1,137 11,700 (21,432) 1,137 (21,432)finAncing ActiVities
Netincrease/(decrease) (885) 54 2,889 (771) 2,794incashandcashequivalents
Cashandcashequivalents 3,706 1,825 817 4,662 1,868atbeginningoftheyear
cAsH And cAsH equiVALents 2,821 1,879 3,706 3,891 4,662 At end of tHe yeAr
TheaccompanyingnotesformpartoftheseFinancialStatements.
stAteMent of cAsH fLows
8 TheGSTcomponentofoperatingactivitiesreflectsthenetGSTpaidto,andreceivedfrom,theInlandRevenueDepartment.TheGST componenthasbeenpresentedonanetbasis,asthegrossamountsdonotprovidemeaningfulinformationforfinancialstatementpurposes
2011 annual report 43
notes to tHe consoLidAtedfinAnciAL stAteMents
For the year ended 31 December 2011
note 1: suMMAry of significAnt Accounting PoLicies
TheprincipalaccountingpoliciesappliedinthepreparationoftheseFinancialStatementsaresetoutbelow.TheFinancialStatementscompriseFinancialStatementsforAucklandUniversityofTechnology(theUniversity)asanindividualentity,andfortheconsolidatedentityconsistingoftheUniversity,itssubsidiaries,interestinanassociateandjointventureinterests(theConsolidatedGroup).
(a) Basis of preparation
Reporting entity
AucklandUniversityofTechnologyisauniversityundertheAucklandUniversityofTechnology(Establishment)Order1999andisdomiciledinNewZealand.TheprimaryobjectiveoftheUniversityistoprovidetertiaryeducationservicesforthebenefitofthecommunityratherthanmakingafinancialreturn.Forthepurposesoffinancialreporting,theUniversityandtheConsolidatedGroupareconsideredtobepublicbenefitentities.
TheFinancialStatementsoftheUniversityandtheConsolidatedGrouparefortheyearended31December2011.TheFinancialStatementsareauthorisedforissuebytheCouncilofAucklandUniversityofTechnologyon26March2012.
Statement of compliance
TheFinancialStatementsoftheUniversityandtheConsolidatedGrouphavebeenpreparedinaccordancewiththerequirementsoftheCrownEntitiesAct2004,asreferredtoinsection203oftheEducationAct1989.
TheFinancialStatementshavebeenpreparedinaccordancewithgenerallyacceptedaccountingpracticeinNewZealand.TheycomplywithNewZealandEquivalentstoInternationalFinancialReportingStandards(NZIFRS)andotherapplicableFinancialReportingStandards,asappropriateforpublicbenefitentities.
NeworrevisedStandardsandInterpretationsthathavebeenapprovedbutarenotyeteffectivehavenotbeenadoptedbytheUniversityandtheConsolidatedGroupforthereportingperiodended31December2011.TheadoptionoftheseStandardsandInterpretationsisnotexpectedtohaveamaterialrecognitionormeasurementimpactontheseFinancialStatements.
Measurement base
TheFinancialStatementshavebeenpreparedonanaccrualsbasisandarebasedonthehistoricalcostconventionasmodifiedbytherevaluationofcertainassetsandliabilitiesasidentifiedinthesummaryofsignificantaccountingpolicies.Theseincludetherevaluationofavailable-for-salefinancialassets,financialassetsandliabilities(includingderivativeinstruments)atfairvaluethroughprofitorlossandcertainclassesofproperty,plantandequipment.
Functional and presentation currency
TheFinancialStatementsarepresentedinNewZealanddollarsandallvaluesareroundedtothenearestthousanddollars,unlessotherwisestated.ThefunctionalcurrencyoftheUniversityanditssubsidiariesisNewZealanddollars.
Changes in accounting policies
Therehavebeennochangesinaccountingpoliciesduringthefinancialyear.
Adoption of the revised NZ IAS 24 Related Party Disclosure
TherevisedNZIAS24RelatedPartyDisclosures(Revised2009)hasbeenadoptedfortheyearended31December2011.TheeffectofadoptingtherevisedNZIAS24is:
• moreinformationisrequiredtobedisclosedabouttransactionsbetweentheUniversityandgovernmentrelatedentities;
and
• commitmentswithrelatedpartiesnowrequiredisclosure.
44 2011 annual rep o rt
Standards, amendments, and interpretations issued that are not yet effective and have not been early adoptedStandards,amendments,andinterpretationsissuedbutnotyeteffectiveandwhichhavenotbeenearlyadopted,andarerelevanttotheUniversityandtheConsolidatedGroup,are:
• NZIFRS9FinancialInstrumentswillreplaceNZIAS39FinancialInstruments:RecognitionandMeasurementthroughthefollowingthreemainphases:Phase1ClassificationandMeasurement,Phase2ImpairmentMethodology,andPhase3HedgeAccounting.Phase1ClassificationandMeasurementoffinancialassetshasbeencompletedandhasbeenpublishedinthenewfinancialinstrumentstandardNZIFRS9.NZIFRS9usesasingleapproachtodeterminewhetherafinancialassetismeasuredatamortisedcostorfairvalue,replacingthemanydifferentrulesinNZIAS39.TheapproachinNZIFRS9isbasedonhowanentitymanagesitsfinancialassets(itsbusinessmodel)andthecontractualcashflowcharacteristicsofthefinancialassets.ThefinancialliabilityrequirementsarethesameasthoseofNZIAS39,exceptwhenanentityelectstodesignateafinancialliabilityatfairvaluethroughthesurplusordeficit.Thenewstandardisrequiredtobeadoptedfortheyearended31December2014.TheUniversityandtheConsolidatedGrouphavenotyetassessedtheeffectofthenewstandardandexpectitwillnotbeearlyadopted.
• FRS-44NewZealandAdditionalDisclosuresandAmendmentstoNZIFRStoharmonisewithIFRSandAustralianAccountingStandards(HarmonisationAmendments)issuedinMay2011withthepurposeofharmonisingAustraliaandNewZealand’saccountingstandardswithsourceIFRSandtoeliminatemanyofthedifferencesbetweentheaccountingstandardsineachjurisdiction.Theamendmentsmustbeadoptedfortheyearended31December2012.TheUniversityandtheConsolidatedGrouphavenotyetassessedtheeffectsofFRS-44andtheHarmonisationAmendments.
AstheExternalReportingBoardisconsultingonanewaccountingstandardsframeworkforpublicbenefitentities,itisexpectedthatnonewNZIFRSnoramendmentstoexistingNZIFRSwithamandatoryeffectivedateforannualreportingperiodscommencingonorafter1January2012willbeapplicabletopublicbenefitentities.Thismeansthatthefinancialreportingrequirementsforpublicbenefitentitiesareexpectedtobeeffectivelyfrozenintheshortterm.Accordingly,nodisclosurehasbeenmadeaboutneworamendedNZIFRSthatexcludepublicbenefitentitiesfromtheirscope.
(b) Basis of consolidation
TheconsolidatedFinancialStatementscomprisetheFinancialStatementsoftheUniversity,itssubsidiaries,interestinanassociateandjointventureinterests.
SubsidiariesSubsidiariesareallthoseentitiesoverwhichtheUniversityhasthepowertogovernthefinancialandoperatingpolicies,generallyaccompanyingashareholdingofmorethanonehalfofthevotingrights.SubsidiariesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheUniversity.Theyaredeconsolidatedfromthedatethatcontrolceases.
Inter-companytransactions,balancesandunrealisedgainsontransactionsbetweenconsolidatedentitiesareeliminated.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceoftheimpairmentoftheassettransferred.
Investmentsinsubsidiariesarecarriedatcostintheparententityfinancialstatements.
AssociatesAssociatesareentitiesoverwhichtheUniversityhassignificantinfluencebutnotcontrol,generallyaccompanyingashareholdingbetween20%and50%ofthevotingrights.Investmentsinmaterialassociatesareaccountedforintheparententityfinancialstatementsusingthecostmethodandintheconsolidatedfinancialstatementsusingtheequitymethodofaccounting,afterinitiallybeingrecognisedatcost.
Joint VenturesAjointventureisacontractualarrangementwherebytheUniversityandotherpartiesundertakeeconomicactivitiesthataresubjecttojointcontrol.TheUniversityhasinterestsinjointventureswhichcompriseajointly-controlledentityandjointly-controlledassets.
Jointly-controlled entityInterestinajointly-controlledentitywherebytheventurershaveacontractualarrangementthatestablishesjointcontrolovertheeconomicactivitiesoftheentity.TheUniversityrecognisesitsinterestinthejointly-controlledentityusingtheequitymethodofconsolidation.
Undertheequitymethod,theinvestmentinthejointly-controlledentityiscarriedatcostintheparententityfinancialstatements.Intheconsolidatedfinancialstatements,theinvestmentisinitiallyrecognisedatcostandsubsequentlyadjustedforchangesintheUniversity’sshareofnetassetsofthejointventure,lessanyimpairmentinthevalueofinvestment.TheUniversity’sshareoftheresultsofthejointventureisrecognisedintheIncomeStatement.
ThefinancialstatementsofthejointventurearepreparedforthesamereportingperiodastheUniversity.AdjustmentsaremadewherenecessarytobringtheaccountingpoliciesinlinewiththoseoftheUniversity.
2011 annual report 45
Jointly-controlled assets
Interestinjointlycontrolledassets,wherebytheventurershaveacontractualarrangementthatinvolvesjointcontrolandownershipofassetsdedicatedtothepurposesofthejointventure.TheUniversityrecognisesitsshareofthejointlycontrolledassetsinthefinancialstatements,classifiedaccordingtotheirnature.Liabilitiesandexpensesincurreddirectlyinrespectofinterestsinjointlycontrolledassetsareaccountedforonanaccrualbasis.IncomefromthesaleoruseoftheUniversity’sshareoftheoutputofthejointventureanditsshareofjointventureexpensesarerecognisedwhenitisprobablethattheeconomicbenefitsassociatedwiththetransactionswillflowto/fromtheUniversityandtheamountcanbemeasuredreliably.
(c) revenue recognition
Revenuecomprisesthefairvalueofthesaleofgoodsandservices,netofGoodsandServicesTax,rebatesanddiscountsandaftereliminatingsaleswithintheConsolidatedGroup.Revenueisrecognisedasfollows:
• Governmentgrants–onentitlement;
• Studenttuitionfees–onacoursepercentageofcompletionbasis.Thepercentageofcompletionismeasuredbyreferencetothedaysofthecoursecompletedasaproportionofthetotalcoursedays;
• Researchgrantswhichwillprovidereciprocalbenefitstotheresearchfundingprovider–onthepercentageofcompletionmethod.Thestageofcompletionismeasuredbyreferencetototalexpenditureincurredtodatecomparedwiththefundingprovided.LiabilitiesarerecognisedintheBalanceSheetasafutureobligationtocompletetheresearchinrespectofthegrantswhichareunearnedatthebalancedate.Researchgrantswhichprovidenoreciprocalbenefitstotheresearchfundingproviderarerecognisedasincomewhenthegrantsarereceived;
• Subsidies,donationsandbequests–whentherighttoreceivethefundorassethasbeenestablished;
• Revenuefromthesaleofgoods–whenthegoodshavebeendeliveredandthesignificantrisksandrewardsofownershiphavebeentransferredtothecustomerandcanbemeasuredreliably;
• Revenuefromrenderingaservice–uponthedeliveryoftheservice;
• Interestincome–onatime-proportionbasisusingtheeffectiveinterestmethod;
• Dividendincome–whentherighttoreceivepaymenthasbeenestablished.
(d) Property, plant and equipment
Eachclassofproperty,plantandequipmentisvaluedathistoricalcostorfairvalueless,whereapplicable,anyaccumulateddepreciationandimpairmentlosses.
Land and buildings
Crown-ownedlandandbuildingsthatareusedbytheUniversityareincludedaspartoftheUniversity’sproperty,plantandequipment.TheUniversityhassoleandunrestricteduseoftheselandandbuildingsandhasassumedownershipoftheseassetsbymeansofaleasefromtheMinistryofEducationforaperiodofthirtythreeyearsfrom1November1994,withrightsofrenewalfortwofurtherperiodsofthirtythreeyearseach.
Followinginitialrecognitionatcost,alllandandbuildings,whetherownedbytheCrownorpurchasedandbuiltoutoftheUniversity’sreserves,areshownatfairvalue.Revaluationoflandandbuildingsiscarriedoutatleasteverythreeyearsbyindependentvaluerstoensurethatthecarryingamountsoftheseassetsdonotdiffermateriallyfromtheirfairvalueatthebalancedate.
AnyrevaluationsurplusarisingonrevaluationiscreditedtotheassetrevaluationreserveincludedintheequitysectionoftheBalanceSheet.Decreasesthatoffsetpreviousincreasesofthesameassetclassarechargedagainsttheassetrevaluationreservedirectlyinequity;allotherdecreasesarechargedtotheIncomeStatement.
Library collection
Thelibrarycollectionisvaluedathistoricalcostlessaccumulateddepreciationand,whereapplicable,anyimpairmentlosses.
Work in progress
Workinprogressisvaluedonthebasisofexpenditureincurreduptobalancedateandisnotdepreciated.Financingcostshavenotbeencapitalisedduringtheconstructionofassets.Thetotalcostofaprojectistransferredtotherelevantassetclassoncompletionandisthendepreciated.
Depreciation
Property,plantandequipmentaredepreciatedusingthestraight-linemethod(exceptformotorvehicles,whichusesthediminishingvaluemethod)toallocatecostorrevaluedamounttoresidualvalueovertheirestimatedusefullives,asfollows:
46 2011 annual rep o rt
Buildings 20-50yearsstraight-line
Librarycollection 5-10yearsstraight-line
Plantandequipment 5-20yearsstraight-line
Specialtyelectronics 6yearsstraight-line
Furnitureandfittings 5yearsstraight-line
Leaseholdimprovements 5yearsstraight-line
Officeequipment 5yearsstraight-line
Computersandelectronicequipment 3yearsstraight-line
Motorvehicles 20%diminishingvalue
Residualvaluesandusefullivesarereviewedandadjusted,ifappropriate,ateachbalancedate.Anychangesareaccountedforprospectivelyasachangeinaccountingestimate.Anasset’scarryingamountiswrittendownimmediatelytoitsrecoverableamountifitscarryingamountisgreaterthanitsestimatedrecoverableamount(seeNote(f)).Gainsandlossesondisposalsaredeterminedbycomparingproceedswithcarryingamounts.TheseareincludedintheIncomeStatement.
Land,worksofartandworkinprogressarenotdepreciated.
(e) intangible assets
Computer software
Computersoftwarelicencesarecapitalisedonthebasisofthecostsincurredtoacquireandtobringthesoftwaretouse.Thesecostsareamortisedonastraight-linebasisovertheirestimatedusefullives,beingthreeyears.
Costsassociatedwithmaintainingcomputersoftwarearerecognisedasanexpensewhenincurred.CoststhataredirectlyassociatedwiththedevelopmentofidentifiableanduniquesoftwarecontrolledbytheUniversity,andthatwillprobablygenerateeconomicbenefitsexceedingcostsbeyondoneyear,arerecognisedasintangibleassets.Directcostsincludesoftwaredevelopment,employeecostsandanappropriateportionofrelevantoverheads.Computersoftwaredevelopmentcostsrecognisedasassetsareamortisedonastraight-linebasisovertheirestimatedusefullives,beingthreeyears.
Programme development
Costsincurredondevelopmentofnewacademicprogrammesarecapitalisedtotheextentthatsuchcostsareexpectedtoberecovered.Capitalcostsareamortisedfromthecommencementofaparticularprogrammeonastraight-linebasisovertheperiodoftheirexpectedbenefit,beingthreeyears.
Intellectual property
Intellectualpropertyisvaluedatcostofacquisitionandisamortisedonastraightlinebasisovertheperiodofitsexpectedbenefits,beingfiveyears.
(f) impairment
Financial assets
AteachbalancedatetheUniversityassesseswhetherthereisanyobjectiveevidencethatafinancialassetorgroupoffinancialassetsisimpaired.ImpairmentlossesarerecognisedintheIncomeStatement.
Non-financial assets
Non-financialassetsthathaveanindefiniteusefullife,orarenotyetavailableforuse,arenotsubjecttoamortisationandaretestedannuallyforimpairment.Non-financialassetsthathaveafiniteusefullifearesubjecttoamortisationordepreciationandarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverable.Animpairmentlossisrecognisedastheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellanditsvalueinuse.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cash-generatingunits).ImpairmentlossesarerecognisedintheIncomeStatement.
(g) cash and cash equivalents
Cashandcashequivalentsincludecashonhand,depositsheldatcallwithbanks,othershort-term,highlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlessthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalues,andbankoverdrafts.BankoverdraftsareshownwithinborrowingsincurrentliabilitiesontheBalanceSheet.
2011 annual report 47
(h) short-term investments
Short-termdepositswithfinancialinstitutionsthathavematuritiesofgreaterthanthreemonths,butlessthanoneyear,areclassifiedasshort-terminvestmentsandareincludedwithininvestingactivitiesintheStatementofCashFlows.Interestonshort-terminvestmentsisrecognisedonanaccrualsbasisoverthelifeoftheinvestment.
(i) trade and other receivables
Tradeandotherreceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcost,lessanyprovisionforimpairment.
Collectabilityofreceivablesisreviewedonanongoingbasis.Receivableswhichareknowntobeuncollectablearewrittenoff.AprovisionforimpairmentofreceivablesisestablishedwhenthereisobjectiveevidencethattheUniversitywillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofreceivables.
(j) inventories
Inventoriesavailableforresalearevaluedatthelowerofcostandnetrealisablevalue,withadjustmentforslowmovingandobsoleteinventories.Costisdeterminedonafirst-infirst-outbasis.Allconsumablesarechargeddirectlytoexpenditure.Noinventoriesarepledgedassecurityforliabilitiesatthebalancedate.
(k) investments and other financial assets
TheUniversityclassifiesitsinvestmentsintothefollowingcategories:financialassetsatfairvaluethroughprofitorloss,loansandreceivables,held-to-maturityinvestments,andavailable-for-salefinancialassets.Theclassificationdependsonthepurposeforwhichtheinvestmentswereacquired.TheUniversitydeterminestheclassificationofitsinvestmentsatinitialrecognitionandre-evaluatesthisdesignationateachbalancedate.
Financial assets at fair value through profit or loss
Thiscategoryhastwosubcategories:financialassetsheldfortrading,andthosedesignatedatfairvaluethroughprofitorlossoninitialrecognition.Afinancialassetisclassifiedinthiscategoryifacquiredprincipallyforthepurposeofsellingintheshort-termorifsodesignatedbytheUniversity.
ThepolicyoftheUniversityistodesignateafinancialassetatfairvaluethroughprofitandlossifthereexiststhepossibilityitwillbesoldintheshort-termandtheassetissubjecttofrequentchangesinfairvalue.Assetsinthiscategoryareclassifiedascurrentassetsiftheyareeitherheldfortradingorareexpectedtoberealisedwithin12monthsofthebalancedate.Derivativesthatarenotdesignatedashedgesarecategorisedasfinancialassetsheldfortrading.
Loans and receivables
Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.TheyarisewhentheUniversityprovidesmoney,goodsorservicesdirectlytoadebtorwithnointentionofsellingthereceivable.Theyareincludedincurrentassets,exceptforthosewithmaturitiesgreaterthan12monthsafterthebalancedatewhichareclassifiedasnon-currentassets.LoansandreceivablesareincludedinreceivablesintheBalanceSheet.
Held-to-maturity investments
Held-to-maturityinvestmentsarenon-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturitiesthattheUniversityhasthepositiveintentionandabilitytoholdtomaturity.
Available-for-sale financial assets
Available-for-salefinancialassets,comprisingprincipallymarketableequitysecurities,arenon-derivativesthatareeitherdesignatedinthiscategoryornotclassifiedinanyoftheothercategories.Theyareincludedinnon-currentassetsunlesstheUniversityintendstodisposeoftheinvestmentwithin12monthsofthebalancedate.
Purchasesandsalesofinvestmentsarerecognisedontrade-date,thedateonwhichtheUniversitycommitstopurchaseorselltheasset.Allinvestmentsareinitiallyrecognisedatfairvalueplustransactioncostsforallfinancialassetsnotcarriedatfairvaluethroughprofitorloss.FinancialassetscarriedatfairvaluethroughprofitorlossareinitiallyrecognisedatfairvalueandtransactioncostsareexpensedintheIncomeStatement.InvestmentsarederecognisedwhentherightstoreceivecashflowsfromtheinvestmentshaveexpiredorhavebeentransferredandtheUniversityhastransferredsubstantiallyallrisksandrewardsofownership.
Available-for-salefinancialassetsandfinancialassetsatfairvaluethroughprofitorlossaresubsequentlycarriedatfairvalueoratcostincaseswherethefairvaluecannotbereliablymeasured.Loansandreceivablesandheld-tomaturityinvestmentsarecarriedatamortisedcostusingtheeffectiveinterestmethod.
48 2011 annual rep o rt
RealisedandunrealisedgainsandlossesarisingfromchangesinthefairvalueofthefinancialassetsatfairvaluethroughprofitorlosscategoryareincludedintheIncomeStatementintheperiodinwhichtheyarise.Unrealisedgainsandlossesarisingfromchangesinthefairvalueofnon-monetarysecuritiesclassifiedasavailable-for-salearerecognisedinequityintheavailable-for-salerevaluationreserve.
Whensecuritiesclassifiedasavailable-for-salearesoldorimpaired,theaccumulatedfairvalueadjustmentsareincludedintheIncomeStatementasgainsandlossesfrominvestmentsecurities.
Thefairvaluesofquotedinvestmentsarebasedoncurrentbidprices.Ifthemarketforafinancialassetisnotactive(andforunlistedsecurities),theUniversityestablishesfairvaluebyusingappropriatevaluationtechniques.Theseincludereferencetothefairvalueofrecentarm’slengthtransactions,involvingthesameinstrumentsorotherinstrumentsthataresubstantiallythesame,discountedcashflowanalysis,andoptionpricingmodelsrefinedtoreflecttheissuer’sspecificcircumstance.Wherethefairvaluecannotbereliablydeterminedtheinvestmentsaremeasuredatcost.
TheUniversityassessesateachbalancedatewhetherthereisobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.Inthecaseofequitysecuritiesclassifiedasavailable-for-sale,asignificantorprolongeddeclineinthefairvalueofthesecuritybelowitscostisconsideredanindicatorthatthesecuritiesareimpaired.Ifanysuchevidenceexistsforavailable-for-salefinancialassets,thecumulativeloss,measuredasthedifferencebetweentheacquisitioncostandthecurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinprofitorloss,isremovedfromequityandrecognisedintheIncomeStatement.ImpairmentlossesrecognisedintheIncomeStatementonequityinstrumentsarenotreversedthroughtheIncomeStatement.
(l) Leases
Finance leasesLeaseswheretheUniversityassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases,whetherornottitleiseventuallytransferred.
Financeleasesarecapitalisedatthelowerofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsatinceptionofthelease,lessaccumulateddepreciationandimpairmentlosses.Thecorrespondingliabilitytothelessor,netoffinancecharges,isincludedintheBalanceSheetasafinanceleaseobligation.
Leasepaymentsareapportionedbetweenfinancechargesandreductionofthefinanceleaseobligationsoastoachieveaconstantrateofinterestontheremainingbalanceoftheliability.FinancechargesareincludedintheIncomeStatementasfinancecosts.
Capitalisedleasedassetsaredepreciatedovertheestimatedusefullifeoftheassetortheleaseterm,whicheverisshorter.
Foraleaseoflandandbuildingsinwhichtheminimumleasepaymentscannotbeallocatedreliablybetweenthelandandthebuildingelementsinproportiontotherelativefairvaluesoftheleaseholdinterestsinthelandelementandbuildingselementoftheleaseattheinceptionofthelease,theentireleaseisclassifiedasafinancelease,unlessitisclearthatbothelementsareoperatingleases,inwhichcasetheentireleaseisclassifiedasanoperatinglease.
Operating leasesLeaseswherethelessorretainssubstantiallyalltherisksandrewardsofownershipareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelessor)arechargedtotheIncomeStatementonastraight-linebasisovertheperiodofthelease.
(m) foreign currency translation
TransactionsinforeigncurrenciesaretranslatedtoNewZealanddollarsattheforeignexchangeraterulingatthedateofthetransaction.MonetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthebalancedatearetranslatedtoNewZealanddollarsattheforeignexchangeraterulingatthatdate.AllforeignexchangedifferencesarisingontranslationarerecognisedintheIncomeStatement.
(n) derivative financial instruments and hedge accounting
TheUniversityusesderivativefinancialinstruments,suchasinterestrateswapsandforwardforeignexchangecontractstohedgeitsinterestraterisksandforeigncurrencyrisksrespectively.Inaccordancewithitstreasurypolicy,theUniversitydoesnotholdorissuederivativefinancialinstrumentsfortradingpurposes.However,derivativesthatdonotqualifyforhedgeaccountingareaccountedforastradinginstruments.Derivativefinancialinstrumentsareinitiallyrecognisedatfairvalueonthedateaderivativecontractisenteredintoandaresubsequentlyremeasuredattheirfairvalue.Thefairvaluesofinterestrateswapsandforwardforeignexchangecontractsaredeterminedbyreferencetomarketvaluesforsimilarinstruments.
2011 annual report 49
Forthepurposesofhedgeaccounting,alltheUniversity’shedginginstrumentsaredesignatedascashflowhedges.Acashflowhedgeisdefinedasthatwhichmitigatestheexposuretovariabilityincashflowsattributabletoaparticularriskassociatedwitharecognisedassetorliability,firmcommitment,orhighlyprobableforecasttransaction,whichcouldaffectprofitorloss.Acashflowhedgeprotectsagainsttheriskcausedbyvariableprices,costs,ratesorterms,whichcauseuncertaintyinthefuture.
TheUniversitydocuments,attheinceptionofthetransaction,therelationshipbetweenhedginginstrumentsandhedgeditems,aswellasitsriskmanagementobjectiveandstrategyforundertakingvarioushedgetransactions.TheUniversityalsodocumentsitsassessment,bothathedgeinceptionandonanongoingbasis,ofwhetherthederivativesthatareusedinhedgingtransactionsarehighlyeffectiveinoffsettingchangesinfairvalueorcashflowsofhedgeditems.
TheportionofthegainorlossonthehedginginstrumentthatisdeterminedtobeaneffectivehedgeisrecogniseddirectlyinOtherComprehensiveIncomewithintheStatementofComprehensiveIncomeandtheineffectiveportionisrecognisedimmediatelyintheIncomeStatement.
ThegainorlossaccumulatedinequityisrecognisedintheIncomeStatementwhenthehedgedcashflowsaresettled.
ChangesinthefairvalueofanyderivativeinstrumentthatdonotqualifyforhedgeaccountingarerecognisedimmediatelyintheIncomeStatement.
(o) goods and services tax (gst)
AucklandUniversityofTechnologyisaregistered‘person’asdefinedbytheGoodsandServicesAct1985.TheFinancialStatementshavebeenpreparedonaGSTexclusivebasiswiththeexceptionofaccountsreceivableandaccountspayable,whicharestatedGSTinclusive.WhenGSTisnotrecoverableoninputtaxthenitisrecognisedaspartoftherelatedassetorexpense.
ThenetGSTrecoverablefrom,orpayableto,theInlandRevenueDepartmentatbalancedateisincludedaspartoftheaccountsreceivableoraccountspayableintheBalanceSheet.
ThenetGSTpaidto,orreceivedfrom,theInlandRevenueDepartment,includingtheGSTrelatingtoinvestingandfinancingactivities,isclassifiedasanoperatingcashflowintheStatementofCashFlows.
CommitmentsandcontingenciesaredisclosedexclusiveofGST.
(p) taxation
TheUniversityanditssubsidiariesareexemptfromthepaymentofincometaxastheyaretreatedbytheInlandRevenueDepartmentascharitableorganisationsforthepurposesoftheIncomeTaxAct.Accordingly,noprovisionforincometaxhasbeenmade.
(q) Budget figures
ThebudgetfiguresarethoseapprovedbytheCounciloftheAucklandUniversityofTechnologybeforethebeginningofeachfinancialyear.TheyhavebeenpreparedinaccordancewithgenerallyacceptedaccountingpracticeandareconsistentwiththeaccountingpoliciesadoptedbytheCounciloftheUniversityforthepreparationoftheFinancialStatements.
(r) creditors and other payables
Creditorsandotherpayablesareinitiallymeasuredatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.
(s) employee entitlements
Employeeentitlementstosalariesandwages,annualleave,sickleave,longserviceleave,retirementleaveandothersimilarbenefitsarerecognisedintheIncomeStatementwhentheyaccruetoemployees.Employeeentitlementstobesettledwithintwelvemonthsarereportedattheamountexpectedtobepaid.Theliabilityforlong-termemployeeentitlementsisreportedasthepresentvalueoftheestimatedfuturecashoutflows.
Annual leaveLiabilitiesforannualleavearemeasuredattheamountofunusedentitlementaccumulatedatbalancedateatrelevantcurrentratesofpay.
Sick leaveLiabilitiesforsickleavearerecognisedtotheextentthatabsencesinthecomingyearareexpectedtobegreaterthanthesickleaveentitlementsearnedinthecomingyear.Theamountiscalculatedbasedontheunusedsickleaveentitlementthatcanbecarriedforwardatbalancedatetotheextentitwillbeusedbyemployeestocoverthosefutureabsences.
50 2011 annual rep o rt
Long service leave and retirement leaveLiabilityforlongserviceleaveandretirementleavearecalculatedonanactuarialbasisandarebasedon:likelyfutureentitlementsaccruingtostaff,basedonyearsofservice,yearstoentitlement,thelikelihoodthatstaffwillreachthepointofentitlementandcontractualentitlementsinformation,andthepresentvalueoftheestimatedfuturecashflows.ExpectedfuturepaymentsarediscountedusingmarketyieldsonNewZealandgovernmentbondsatbalancedatewithtermstomaturitythatmatch,ascloselyaspossible,theestimatedfuturecashoutflowsforentitlements.Theinflationfactorisbasedontheexpectedlong-termincreaseinremunerationforemployees.
Research and study leaveLiabilitiesforresearchandstudyleaveismeasuredasthevalueoftheunusedguaranteedentitlementaccumulatedatbalancedatethattheUniversityanticipatesemployeeswilluseinthefutureperiods.
Superannuation Schemes
Defined contribution schemesObligationsforcontributionstoKiwiSaverandtwooftheNationalProvidentFund(NPF)Superannuationschemes,namelytheLumpSumNationalschemeandthePensionNationalscheme,areaccountedforasdefinedcontributionschemesandarerecognisedasanexpenseintheIncomeStatementasincurred.
Defined benefit schemesTheUniversitybelongstotheGovernmentSuperannuationFund(GSF)schemewhichisadefinedbenefitschememanagedbytheGovernmentSuperannuationFundAuthority.TheUniversityhasnounderwritingresponsibilitiesasanyshortfallismetbytheGovernment.Assuch,theGSFschemeisaccountedforasadefinedcontributionscheme.
(t) interest-bearing borrowings
Interest-bearingborrowingsareinitiallyrecognisedatcost,beingthefairvalueoftheconsiderationreceivednetoftransactioncostsassociatedwiththeborrowing.
Subsequenttoinitialrecognition,interest-bearingborrowingsaremeasuredatamortisedcostusingtheeffectiveinterestmethod.Amortisedcostiscalculatedbytakingintoaccountanytransactioncostsandanydiscountorpremiumonsettlement.
GainsorlossesarerecognisedintheIncomeStatementwhentheliabilitiesarederecognisedaswellasthroughtheamortisationprocess.
(u) Borrowing costs
TheUniversityandtheConsolidatedGrouphaveelectedtodefertheadoptionoftherevisedNZIAS23BorrowingCosts(Revised2007)inaccordancewiththetransitionalprovisionsofNZIAS23thatareapplicabletopublicbenefitentities.
Consequently,allborrowingcostsarerecognisedasanexpenseintheperiodinwhichtheyareincurred.
(v) Provisions
ProvisionsarerecognisedwhentheUniversityhasapresentlegalorconstructiveobligationasaresultofpastevents,whenitismorelikelythannotthatanoutflowofresourceswillberequiredtosettletheobligation,andwhentheamounthasbeenreliablyestimated.Provisionsarenotrecognisedforfutureoperatinglosses.
Wherethereareanumberofsimilarobligations,thelikelihoodthatanoutflowwillberequiredinsettlementisdeterminedbyconsideringtheclassofobligationsasawhole.Aprovisionisrecognisedevenifthelikelihoodofanoutflowwithrespecttoanyoneitemincludedinthesameclassofobligationsisnegligible.
Provisionsaremeasuredatthepresentvalueoftheexpendituresexpectedtoberequiredtosettletheobligationusingadiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheobligation.TheincreaseintheprovisionduetopassageoftimeisrecognisedintheIncomeStatement.
(w) equity
Equityismeasuredasthedifferencebetweentotalassetsandtotalliabilities.Equityisdisaggregatedandclassifiedintoanumberofcomponents.Thecomponentsofequityare:
General equityGeneralequitycomprisesEquityandSuspensoryLoansfromtheCrownwithequityconversionfeatures.
Revaluation reservesRevaluationreservescomprise:assetrevaluationreservewhichrelatestotherevaluationoflandandbuildingstofairvalue;available-for-salefinancialassetsrevaluationreservewhichrelatestotherevaluationofmarketableequitysecuritiestofairvalue;andcashflowhedgereservewhichrelatestothegainorlossonthehedginginstrumentthatisdeterminedtobeaneffectivecashflowhedgeandthechangeinthefairvalueofthehedginginstrumentthroughothercomprehensiveincome.
2011 annual report 51
(x) critical accounting estimates and assumptions
InpreparingtheseFinancialStatements,theUniversityandtheConsolidatedGrouphavemadeestimatesandassumptionsconcerningthefuture.Theseestimatesandassumptionsmaydifferfromthesubsequentactualresults.Estimatesandassumptionsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:
Revaluation of land and buildingsNote16providesinformationabouttheestimatesandassumptionsexercisedinthemeasurementofrevaluedlandandbuildings.TheUniversityreliesontheservicesofindependentvaluerstoassessthecarryingvaluesoflandandbuildings.
Long service leave and retirement leaveNote20providesananalysisoftheexposureinrelationtoestimatesanduncertaintiessurroundinglongserviceleaveandretirementleaveliabilities.Assumptionsmadeincludediscountrates,salaryinflationandthenumberofstaffwhowillreachthepointofentitlement.
Reinstatement provisionNote21representstheUniversity’sestimatedliabilitytoreinstateleasedbuildingstotheiroriginalstateattheexpiryoftheleaseterms.
Depreciation and amortisationAteachbalancedate,theUniversityreviewstheusefullivesandresidualvaluesofitsproperty,plantandequipment,andintangibleassets.Assessingtheappropriatenessofusefullifeandresidualvalueestimatesofproperty,plantandequipment,andintangibleassetsrequirestheUniversitytoconsideranumberoffactorssuchasthephysicalconditionoftheasset,expectedperiodofuseoftheassetbytheUniversity,andexpecteddisposalproceedsfromthefuturesaleoftheasset.Anincorrectestimateoftheusefullifeorresidualvaluewillimpactonthedepreciableoramortisableamountofanasset,thereforeimpactingonthedepreciationoramortisationexpenserecognisedintheIncomeStatement,andonthecarryingamountoftheassetintheBalanceSheet.
Thecarryingamountsofproperty,plantandequipmentaredisclosedinNote16andintangibleassetsinNote17.
Changes to accounting estimates on depreciation charges
TheUniversityandtheConsolidatedGrouphaverevisedtheestimatedusefullivesofcertainproperty,plantandequipmentwitheffectfrom1January2011.BasedontheinformationgainedfromtheUniversity’spropertyexperts,managementbelievesthatpartofthebuildingstructuresandcomponentswillhaveestimatedusefullivesoffiftyyearsfordepreciationpurposes;anddefinedplantequipmentsuchasgymequipment,willhaveestimatedusefullivesoffiveyearsfordepreciationpurposes.Theoriginalestimatedusefullivesweresixtyyearsforbuildingstructuresandcomponents,andtenyearsfortheplantandequipment.
Therevisionswereaccountedforprospectivelyasachangeinaccountingestimatesand,asaresult,thedepreciationchargesforthefinancialyearended31December2011havebeenincreasedby$0.7million.
(y) critical judgements in applying accounting policies
TheUniversityhasmadethefollowingcriticaljudgementsinapplyingaccountingpoliciesfortheyearended31December2011:
Crown-owned land and buildingsPropertyinthelegalnameoftheCrownthatisoccupiedbytheUniversityisrecognisedasanassetintheBalanceSheet.TheUniversityconsidersthatithasassumedallthenormalrisksandrewardsofownershipofthispropertydespitelegalownershipnotbeingtransferred.AccordinglyitwouldbemisleadingtoexcludetheseassetsfromtheFinancialStatements.
TheUniversityhassecuredtheuseofthepropertybymeansofaleasefromtheMinistryofEducationforaperiodofthirtythreeyearsfrom1November1994,withrightsofrenewalfortwofurtherperiodsofthirtythreeyearseach.
Research LeaveSomeacademicstaffareentitledtoguaranteedresearchandstudyleaveincertaincircumstances.Thesubstanceofthisleaveistoenablestafftotakeleavefromteachingdutiesinordertoundertakeresearchactivity,whilstcontinuingtoearntheirsalaryandotheremployeeentitlements.TheUniversityisoftheviewthatguaranteedresearchandstudyleaveisthevalueofthefuturebenefitthatacademicstaffhaveearnedinreturnfortheirserviceinthecurrentandpriorperiods.Accordingly,aliabilityhasbeenrecognisedforsuchleave.
52 2011 annual rep o rt
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
StudentAchievementComponent(SAC) 122,070 103,725 122,070 103,725TertiaryEducationOrganisationalCapability(TEOC) – 12,618 – 12,618Performance-BasedResearchFunding(PBRF)-Note(A) 7,301 7,145 7,301 7,145Tripartitefunding 4,490 6,963 4,490 6,963PrioritiesforFocus 1,208 1,581 1,208 1,581EncouragingandSupportingInnovation(ESI) 1,417 1,335 1,417 1,335MangereRefugeeCentre 1,530 1,530 1,530 1,530Tertiarystudentswithdisabilities 442 432 442 432MäoriandPacificPeoples 836 657 836 657TOPS/ETSA 831 761 831 761Earlychildhoodeducation-Note(B) 414 430 414 430Othergovernmentfunding(excl.researchcontracts) 1,081 1,532 1,081 1,532
totAL goVernMent oPerAtionAL funding 141,620 138,709 141,620 138,709
TEOCfundingwasdisestablishedon31December2010andthecomponentofTEOCfundingwastransferredintoSACfundingfrom1January2011.Therearenounfulfilledconditionsorothercontingenciesattachedtogovernmentgrantsrecognisedasincome.
note 2: goVernMent oPerAtionAL funding
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actualnote (A): PBrf funding $000s $000s $000s $000s
ProvisionalPBRFfundingreceived 7,107 7,386 7,107 7,386PrioryearPBRFfinalwash-up 194 (241) 194 (241)
total PBrf funding 7,301 7,145 7,301 7,145
incomeEarlychildhoodeducationbulkfunding 408 419 408 419Supportgrantforprovisionallyregisteredteachers 6 11 6 11
total early childhood education funding received 414 430 414 430
Otherincome* 217 190 217 190
total income 631 620 631 620
expenditureOperatingexpenses (669) (694) (669) (694)Supportgrantexpenses (7) (9) (7) (9)
total expenditure (676) (703) (676) (703)
net deficit (45) (83) (45) (83)
Valueofsupportgrantsreceived 6 11 6 11Amountspentonsupportingprovisionally 7 9 7 9registeredteachers
Supportgrantswereappliedto:Teachingresourcesandequipment – 1 _ 1Training,coachingandsupport 7 8 7 8
totAL 7 9 7 9
Numberofsupportgrantsreceived 18 37 18 37
*OtherincomerepresentsearlychildhoodeducationfeesreceivedfromparentswhichhavebeenreflectedaspartofthetradingincomeinNote5.
note (B): early childhood education
2011 annual report 53
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Domesticfees 69,387 67,758 69,387 67,758
Internationalfees 47,050 45,091 47,050 45,091
totAL student tuition fees 116,437 112,849 116,437 112,849
note 3: student tuition fees
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Researchgrantsreceived 11,655 11,139 11,747 11,194
Researchgrantscarriedforward (889) (1,924) (889) (1,924)
totAL reseArcH grAnts 10,766 9,215 10,858 9,270
Researchgrantscarriedforwardrepresentthefutureobligationstocompleteresearchinrespectofgrantswhichareunearnedatthebalancedate.
note 4: reseArcH grAnts
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Tradingincome 14,093 12,835 14,093 12,835
Accommodationincome 5,002 4,376 5,002 4,376
Interestincome 510 373 540 388
Incomefromavailable-for-salefinancialassets 242 4 242 4
Incomefrominvestmentinassociate 20 18 – –
Donationreceived 26 29 26 29
Gainondisposalofproperty,plant&equipment 14 – 14 –
Gainonforeigncurrencytranslation 116 – 116 –
Gainonderivativefinancialinstruments 52 14 52 14
Otheroperatingincome 9,557 8,969 10,208 9,315
totAL otHer incoMe 29,632 26,618 30,293 26,961
note 5: otHer incoMe
54 2011 annual rep o rt
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Consumables/facultycosts 23,942 22,739 23,942 22,739
Occupancy/propertycosts 12,048 10,376 12,048 10,376
Operatingleasecosts-buildings 8,982 8,087 8,982 8,087
Operatingleasecosts-equipment 1,731 942 1,731 942
Administrationexpenses 9,795 7,859 9,795 7,859
Feestoprincipalauditor:
Financialstatementsaudit(NoteA) 147 149 154 158
Performance-BasedResearchFundaudit 8 8 8 8
Provisionforbaddebts:
Changeinprovisionfordoubtfuldebts (243) 560 (243) 560
Baddebtswrittenoff 311 445 311 445
Councilfees(Note28) 123 110 123 110
Lossondisposalofproperty,plantandequipment – 17 – 17
Lossonforeigncurrencytranslation – 54 – 54
Otheroperatingcosts 13,592 13,560 14,209 13,795
totAL suPPLies And otHer costs 70,436 64,906 71,060 65,150
Note(A)–Includesauditfeesof$9,430(2010:$9,040)forAucklandUniversityofTechnologyFoundationpaidonbehalfbyAucklandUniversityofTechnology.
note 7: suPPLies And otHer costs
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Academic:
Salariesandwages 101,014 95,177 101,014 95,177
Definedcontributionschemeemployercontributions 520 466 520 466
Employeeentitlements 2,585 796 2,585 796
Otherstaffrelatedcosts 5,916 4,927 5,916 4,927
110,035 101,366 110,035 101,366
Administration:
Salariesandwages 67,198 62,317 67,198 62,317
Definedcontributionschemeemployercontributions 346 305 346 305
Employeeentitlements 805 459 805 459
Otherstaffrelatedcosts 3,902 3,821 3,902 3,821
72,251 66,902 72,251 66,902
totAL PersonneL costs 182,286 168,268 182,286 168,268
EmployercontributionstodefinedcontributionschemesincludecontributionstoKiwiSaver,theNationalProvidentFundSuperannuationschemesandtheGovernmentSuperannuationFundscheme.
note 6: PersonneL costs
2011 annual report 55
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Depreciation(Note16) 28,851 26,913 28,851 26,913
Amortisation(Note17) 1,423 2,568 1,423 2,568
Impairment(Note16&17) 2,864 2,841 2,864 2,841
totAL dePreciAtion, AMortisAtion 33,138 32,322 33,138 32,322And iMPAirMent
note 8: dePreciAtion, AMortisAtion And iMPAirMent
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Interestonborrowings 1,171 1,072 1,171 1,072
Financechargesonfinanceleases 2,203 2,476 2,203 2,476
totAL finAnce costs 3,374 3,548 3,374 3,548
note 9: finAnce costs
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Cashatbankandinhand 1,078 2,995 2,148 3,951
Short-termbankdeposits 1,743 711 1,743 711
totAL cAsH And cAsH equiVALents 2,821 3,706 3,891 4,662As Per tHe stAteMent of cAsH fLows
Short-termbankdepositsaremadeforvaryingperiodsoftime,fromonedaytothreemonths,dependingonimmediatecashrequirements,andearninterestattherespectiveshort-termdepositrates.Thecarryingvalueofshort-termdepositswithmaturitydatesofthreemonthsorlessapproximatestheirfairvalue.
Thetotalvalueofcashandcashequivalentsthatcanonlybeusedforspecifiedpurposesasoutlinedbydonorsis$1,070,000(2010:$956,000).
Theweightedaverageeffectiveinterestrateforcashandcashequivalentswas3.08%(2010:3.20%).
note 10: cAsH And cAsH equiVALents
56 2011 annual rep o rt
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
trade debtors:
Openingprovisions 601 525 601 525
Additionalprovisionsmadeduringtheyear – 311 – 311
Releaseofprovisionsduringtheyear (77) – (77) –
Amountofprovisionsutilisedduringtheyear (33) (235) (33) (235)
closing provisions for impairment of trade debtors 491 601 491 601
student debtors:
Openingprovisions 745 261 745 261
Additionalprovisionsmadeduringtheyear 145 694 145 694
Amountofprovisionsutilisedduringtheyear (278) (210) (278) (210)
closing provisions for impairment of student debtors 612 745 612 745
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Tradedebtors 2,040 3,275 2,157 3,351
Lessprovisionforimpairmentoftradedebtors (491) (601) (491) (601)
1,549 2,674 1,666 2,750
Studentdebtors 1,697 19,957 1,697 19,957
Lessprovisionforimpairmentofstudentdebtors (612) (745) (612) (745)
1,085 19,212 1,085 19,212
Relatedparties(Note27) 95 11 95 6
Accruedrevenue 914 1,141 918 1,141
TertiaryEducationCommission – – – –
Otherdebtors 715 436 759 441
totAL trAde And otHer receiVABLes 4,358 23,474 4,523 23,550
Tradedebtorsandstudentdebtorsarenon-interestbearingandreceiptisnormallyon30-dayterms,thereforethecarryingvalueoftradeandotherreceivablesapproximatestheirfairvalue.
Movementsintheprovisionforimpairmentoftradedebtorsandstudentdebtorsareasfollows:
note 11: trAde And otHer receiVABLes
2011 annual report 57
university consolidated
Gross Impairment Net Gross Impairment Net $000s $000s $000s $000s $000s $000s
trade debtors:
2011 –Under30days 1,492 – 1,492 1,609 – 1,609
31–60days 156 (99) 57 156 (99) 57
61–90days 62 (62) – 62 (62) –
Over90days 330 (330) – 330 (330) –
total trade debtors 2,040 (491) 1,549 2,157 (491) 1,666
2010 –Under30days 2,052 – 2,052 2,128 – 2,128
31–60days 408 – 408 408 – 408
61–90days 257 (43) 214 257 (43) 214
Over90days 558 (558) – 558 (558) –
total trade debtors 3,275 (601) 2,674 3,351 (601) 2,750
student debtors:
2011 – Under30days 426 – 426 426 – 426
31–60days 326 – 326 326 – 326
61–90days 49 – 49 49 – 49
Over90days 896 (612) 284 896 (612) 284
total student debtors 1,697 (612) 1,085 1,697 (612) 1,085
2010 – Under30days 18,419 – 18,419 18,419 – 18,419
31–60days 102 – 102 102 – 102
61–90days 117 – 117 117 – 117
Over90days 1,319 (745) 574 1,319 (745) 574
total student debtors 19,957 (745) 19,212 19,957 (745) 19,212
note 11: trAde And otHer receiVABLes (continued)
Theageingprofileoftradedebtorsandstudentdebtorsatthebalancedateisasfollows:
58 2011 annual rep o rt
name of entity country of nature of ownership interest incorporation business 2011 2010
AucklandUniversityof NewZealand Promoteacademic 100% 100%TechnologyFoundation excellenceatAuckland UniversityofTechnology bycharitablemeans.
AUTEnterprisesLimited NewZealand Commercialisationof 100% 100% researchandprovision ofconsultingservices.
university
2011 2010 Actual Actual $000s $000s
investment in subsidiaries:
AucklandUniversityofTechnologyFoundation – –
AUTEnterprisesLimited 100 100
totAL inVestMent in suBsidiAries 100 100
note 13: inVestMent in suBsidiAries
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Listed securities (at fair value):
IndependentNews&MediaPlc 2 4 2 4
2 4 2 4
unlisted securities (at cost, less impairment):
NewZealandVice-Chancellors’Committee 100 100 100 100
PolytechnicsInternationalNewZealandLimited 33 33 33 33
NewZealandTertiaryEducationConsortiumLimited – 20 – 20
133 153 133 153
totAL AVAiLABLe-for-sALe finAnciAL Assets 135 157 135 157
Duringtheyear,theshareholdersofNewZealandTertiaryEducationConsortiumLimitedgaveapprovalfortheCompanytogointoavoluntarysolventliquidationandtodistributealltheremainingequitybacktotheshareholders.Asaresult,thesharecapitalinvestmentinNewZealandTertiaryEducationConsortiumLimitedhasbeenvaluedatnil,afterthedistribution.
Listed securitiesThefairvaluesoflistedsecuritiesaredeterminedbyreferencetopublishedcurrentbidpricequotationsinanactivemarket.
unlisted securitiesUnlistedsecuritiesarecarriedatcostlessanyimpairmentasthefairvalueofunlistedsecuritiescannotbereliablydeterminedusingastandardisedvaluationtechniqueandthereisnoactivemarketforsuchsecurities.
note 12: AVAiLABLe-for-sALe finAnciAL Assets
2011 annual report 59
note 14: inVestMent in AssociAte
InvestmentinassociateisaccountedforintheFinancialStatementsusingtheequitymethodofaccounting.Informationrelatingtotheassociateissetoutbelow:
name of entity country of nature of ownership interest incorporation business 2011 2010
LCoNewZealandLimited NewZealand Provideslibrary 20% 20% solutionstomembers oftheConsortium.
Lco new ZeALAnd LiMitedLCoNewZealandLimitedisanunlistedcompanywhichhasthesamebalancedateasAucklandUniversityofTechnology.Thereisnopublishedpricequotationtodeterminethefairvalueofthisinvestment.
TheinvestmentintheassociateiscarriedatcostinAucklandUniversityofTechnology’sBalanceSheet.
university
2011 2010 Actual Actual $000s $000s
investment in associate:
LCoNewZealandLimited 417 417
totAL inVestMent in AssociAte 417 417
Therewerenoimpairmentlossesrelatingtotheinvestmentintheassociateandnocapitalcommitmentsnorothercommitmentsrelatingtotheassociate.
AucklandUniversityofTechnology’sshareoftheresultofLCoNewZealandLimitedisasfollows:
consolidated 2011 2010 Actual Actual $000s $000s
share of associate’s balance sheet:
Assets 796 586
Liabilities (270) (51)
net assets 526 535
share of associate’s revenue and profit:
Revenue 291 289
Netsurplus 11 45
Movement in carrying amount of investment in associate:
Balanceatthebeginningoftheyear 535 508
Shareofassociate’snetsurplus 11 45
Dividendreceived (20) (18)
carrying amount at the end of the year 526 535
60 2011 annual rep o rt
note 15: inVestMent in JointLy-controLLed entity
AucklandUniversityofTechnologyhasa50%interestinAUT/MillenniumOwnershipTrust,ajointly-controlledentityestablishedbytheUniversityandtheNorthShoreBaysCommunityFitnessCentreTrust,topromotecommunityfitnessandwell-beingandtosupportelitesport.
AUT/MillenniumOwnershipTrusthasthesamebalancedateastheUniversity.
Theinvestmentinthejointly-controlledentityiscarriedatcostintheUniversity’sBalanceSheet.
university 2011 2010 Actual Actual $000s $000s
investment in jointly-controlled entity:
AUT/MillenniumOwnershipTrust 18,300 18,300
totAL inVestMent in JointLy-controLLed entity 18,300 18,300
AucklandUniversityofTechnology’sshareoftheresultofAUT/MillenniumOwnershipTrustisasfollows:
consolidated 2011 2010 Actual Actual $000s $000s
share of jointly-controlled entity’s balance sheet:
Assets 27,684 20,169
Liabilities (6,881) (91)
net assets 20,803 20,078
share of jointly-controlled entity’s revenue and surplus:
Revenue 1,307 821
Netsurplus 726 2,266
Movement in carrying amount of investment in jointly-controlled entity:
Balanceatthebeginningoftheyear 20,421 10,655
Capitalcontribution–cash – 7,500
Shareofjointly-controlledentity’snetsurplus 726 2,266
carrying amount at the end of the year 21,147 20,421
note 16: ProPerty, PLAnt And equiPMent
revaluation of land and buildingsAlllandandbuildings,whetherCrown-ownedorAUT-owned,werelastrevaluedbySeagarsandPartners,RegisteredValuers,at31December2010toafairvalueof$379,261,000usingthedepreciatedreplacementcostmethod.
Adesktoprevaluationoflandandbuildingswascompletedasat31December2011bySeagarsandPartners,RegisteredValuers.Thepercentagechangebetweenthevaluer’sdesktoprevaluationandthecarryingnetbookvalueisnotsignificantlydifferent,andthereforenochangehasbeenmadetotheassetrevaluationreserve.
non-cash transactionsDuringtheyear,theUniversityacquired$4.4millionofcomputersandelectronicequipmentunderfinanceleases(2010:$5.1million).
2011 annual report 61
no
te
16:
Pr
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LAn
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13,5
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11,3
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12,2
61
2,16
92,
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13,2
19
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–(6
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13,4
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11,3
37
697
(61)
–
11,9
73
1,88
21,
450
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orv
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les
645
51
–(9
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602
396
55
(74)
7
384
249
218
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quip
men
t4,
894
937
–(3
9)
5,79
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(37)
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men
t21
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309
––
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9–
––
––
309
309
WIP
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ings
10
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35
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–
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,231
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)–
–8,
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31W
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Man
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ings
25
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)–
–24
5–
––
––
253
245
WIP
–o
ther
s67
558
–
–73
3–
––
––
675
733
totA
L A
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Ass
ets
42
3,75
456
,545
–
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)47
9,95
983
,425
21
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(1
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)2,
861
105,
630
340,
329
374,
329
cro
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:La
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39,2
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––
–39
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–
––
––
39,2
02
39,2
02B
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ings
48
,960
–
––
48,9
60
–1,
382
––
1,38
248
,960
47
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totA
L cr
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n-o
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An
d &
Bu
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s
88,1
62
––
–88
,162
–
1,38
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–1,
382
88,1
62
86,7
80
Ass
ets
unde
r fi
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ases
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and
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nic
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,400
4,
412
–(5
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)18
,954
13
,823
4,
353
(5,8
58)
–12
,318
6,
577
6,63
6B
uild
ings
43
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–
––
43,2
42
13,7
85
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29
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27
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totA
L A
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s u
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s
63,6
42
4,41
2–
(5,8
58)
62,1
96
27,6
08
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28,1
07
36,0
34
34,0
89
totA
L P
ro
Per
ty, P
LAn
t &
eq
uiP
Men
t
575,
558
60,9
57
–(6
,198
)63
0,31
711
1,03
328
,851
(7
,626
)2,
861
135,
119
464,
525
495,
198
62 2011 annual rep o rt
no
te
16:
Pr
oP
ert
y, P
LAn
t A
nd
eq
uiP
Men
t (c
onti
nued
)
c
ost/
rev
alua
tion
A
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ulat
ed d
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and
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irm
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s n
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ook
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ity/
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lanc
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nlo
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Dec
at
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31
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2010
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(dec
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valu
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20
10
2010
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ts:
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Man
ukau
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29,1
90
–(1
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––
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28
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ldin
gs
237,
558
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(37)
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–
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5
totA
L A
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Ass
ets
42
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525
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(2
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(1,7
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754
87,5
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18,7
95
(24,
930)
2,
046
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25
336,
801
340,
329
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d la
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nd b
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34,9
25
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277
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–
–
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39
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Bui
ldin
gs
55,1
52
–(6
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)–
48,9
60
2,73
61,
368
(4,1
04)
––
52,4
16
48,9
60
totA
L cr
ow
n-o
wn
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An
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s
90,0
77
–(1
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62
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368
(4,1
04)
––
87,3
41
88,1
62
Ass
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unde
r fi
nanc
e le
ases
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ters
and
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nic
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pmen
t18
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104
–(3
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12
,238
4,
745
(3,1
60)
–13
,823
6,
218
6,57
7B
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43
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–
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43,2
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11,7
80
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31
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29
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totA
L A
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s u
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e Le
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s
61,6
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(3,1
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63,6
42
24,0
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27,6
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totA
L P
ro
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ty, P
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eq
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t
576,
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30,7
18
(26,
328)
(4
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5,55
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4,26
826
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(3
2,19
4)
2,04
611
1,03
346
1,82
246
4,52
5
2011 annual report 63
no
te
17:
intA
ng
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As
set
s
cos
t/r
eval
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Acc
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)–
–91
–
totA
L in
tAn
giB
Le A
sset
s
16,4
67
1,43
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17
,857
11
,818
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568
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514
,415
4,
649
3,44
2
64 2011 annual rep o rt
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Tradecreditors 3,489 3,168 3,489 3,168
Creditorsaccruals 19,206 12,448 19,372 12,567
Sundrycreditors 2,649 3,392 2,649 3,349
GSTpayable 1,390 4,937 1,393 4,940
Withholdingtaxpayable 1,780 1,668 1,780 1,668
Relatedparty(Note27) 430 331 286 223
TertiaryEducationCommission – 241 – 241
totAL trAde And otHer PAyABLes 28,944 26,185 28,969 26,156
Tradeandotherpayablesarenon-interestbearingandarenormallysettledon30-dayterms,thereforethecarryingvalueoftradeandotherpayablesapproximatestheirfairvalue.
note 18: trAde And otHer PAyABLes
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Studentsfeesinadvance 19,661 31,314 19,661 31,314
Trustfunds 2 2 2 2
Researchfundingreceivedinadvance 9,250 8,657 9,250 8,657
Otherincomeinadvance 3,288 2,805 3,288 2,805
totAL incoMe in AdVAnce 32,201 42,778 32,201 42,778
note 19: incoMe in AdVAnce
2011 annual report 65
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Annualleave 10,245 9,184 10,245 9,184
Accruedsalarypayments 2,122 1,806 2,122 1,806
Sickleave 450 440 450 440
Otheremployeeentitlements 1,490 2,135 1,490 2,135
total employee entitlements – current 14,307 13,565 14,307 13,565
Longserviceleave 793 757 793 757
Retirementleave 1,783 1,457 1,783 1,457
Researchandstudyleave 1,953 – 1,953 –
total employee entitlements – non-current 4,529 2,214 4,529 2,214
totAL eMPLoyee entitLeMents 18,836 15,779 18,836 15,779
Thepresentvalueofthelongserviceleaveandretirementleaveobligationsdependsonanumberoffactorsthataredeterminedonanactuarialbasisusinganumberofassumptions.Twokeyassumptionsusedincalculatingthisliabilityincludethediscountrateof3.81%andthesalaryinflationfactorof3.0%.Anychangesintheseassumptionswillimpactonthecarryingamountoftheliability.
Indeterminingtheappropriatediscountrate,theUniversityconsideredtheinterestratesonNewZealandgovernmentbondswithtermstomaturitysimilartothoseoftheestimatedfuturecashoutflows.Theinflationfactorhasbeenbasedontheexpectedlong-termincreaseinremunerationforemployees.
Since2000whenAucklandUniversityofTechnologyobtaineduniversitystatus,certainlecturershavebeengrantedpositionswithenhancedresearchconditions.Upontheiragreementtocarryforwardandaccumulatetwoweeksannualprofessionaldevelopmenttimeandtheannualindividualentitlementforthefinancialsupportofprofessionaldevelopmentactivities,staffmembersareguaranteedresearchandstudyleaveofnotlessthantheaccumulatedprofessionaldevelopmenttimeandtheaccumulatedannualindividualentitlementsforthefinancialsupportofprofessionaldevelopmentactivities.
note 20: eMPLoyee entitLeMents
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
reinstatement provision for leased buildings:
Openingbalance 788 669 788 669
Provisionmadeduringtheyear 508 119 508 119
cLosing BALAnce 1,296 788 1,296 788
Comprising:
Current 488 82 488 82
Non-current 808 706 808 706
totAL ProVisions 1,296 788 1,296 788
ThereinstatementprovisionrepresentstheUniversity’sestimatedliabilitytoreinstateleasedbuildingstotheiroriginalstateattheexpiryoftheleaseterm.Theprovisioniscalculatedonthenetpresentvalueoftheestimatedliabilityatleaseexpiry.
note 21: ProVisions
66 2011 annual rep o rt
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Notlaterthanoneyear 7,404 7,324 7,404 7,324
Laterthanoneyearandnotlaterthanfiveyears 17,801 17,977 17,801 17,977
Laterthanfiveyears 32,895 36,641 32,895 36,641
total minimum finance leases: 58,100 61,942 58,100 61,942
Futurefinancecharges (17,665) (20,012) (17,665) (20,012)
total present value of minimum finance 40,435 41,930 40,435 41,930leases payments
Present value of minimum finance leases:
Notlaterthanoneyear 5,320 5,079 5,320 5,079
Laterthanoneyearandnotlaterthanfiveyears 10,301 9,989 10,301 9,989
Laterthanfiveyears 24,814 26,862 24,814 26,862
total minimum finance leases borrowings 40,435 41,930 40,435 41,930
Comprising:
Current 5,320 5,079 5,320 5,079
Non-current 35,115 36,851 35,115 36,851
totAL Present VALue of MiniMuM 40,435 41,930 40,435 41,930finAnce LeAses Borrowings
AucklandUniversityofTechnologyhasenteredintofinanceleasesforvariousproperties,computersandelectronicequipment.Thenetcarryingamountoftheleaseditemswithineachclassofproperty,plantandequipmentisshowninNote16.
ThefinanceleasescanberenewedattheUniversity’soption,withrentssetbyreferencetocurrentmarketratesforitemsofequivalentageandcondition.TheUniversityhastheoptiontopurchaseassetsattheendoftheleaseterms.TherearenorestrictionsplacedontheUniversitybyanyofthefinanceleasingarrangements.
TheUniversityleasesapproximately18,332squaremetres(2010:18,332squaremetres)ofaccommodationspaceinAucklandtoprovideresidentialaccommodationforstudents.
TheUniversityleases6,464computersanditemsofelectronicequipmentforteaching,researchandadministrativepurposes(2010:6,411computersanditemsofelectronicequipment).
note 22: finAnce LeAses Borrowings
2011 annual report 67
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
current asset portion
ForwardForeignExchangeContract–Non-hedges 52 14 52 14
totAL deriVAtiVe finAnciAL instruMent 52 14 52 14Assets
current liability portion
Interestrateswap–Cashflowhedges (18) (176) (18) (176)
non-current liability portion
Interestrateswap–Cashflowhedges (351) (203) (351) (203)
totAL deriVAtiVe finAnciAL instruMent (369) (379) (369) (379)LiABiLities
fair value
Interest rate swapsThefairvaluesofinterestrateswapshavebeendeterminedbycalculatingtheexpectedcashflowsunderthetermsoftheswapsanddiscountingthesevaluestopresentvalue.Theinputsintothevaluationmodelarefromindependentlysourcedmarketparameterssuchasinterestrateyieldcurves.Mostmarketparametersareimpliedfrominstrumentprices.
Forward foreign exchange contractsThefairvaluesofforwardforeignexchangecontractshavebeendeterminedusingadiscountedcashflowsvaluationtechniquebasedonquotedmarketprices.Theinputsintothevaluationmodelarefromindependentlysourcedmarketparameterssuchascurrencyrates.Mostmarketparametersareimpliedfrominstrumentprices.
Thefairvaluesofinterestrateswapshavebeendeterminedusingadiscountedcashflowsvaluationtechniquebasedonquotedmarketprices.
notional Principal Amount
Interest rate swapsThenotionalprincipalamountsofinterestrateswapcontractsasat31December2011totalled$14.0million(2010:$19.0million).At31December2011,thefixedinterestratesofinterestrateswapsvariedfrom4.46%to4.49%(2010:4.46%to6.98%).
Forward foreign exchange contractsThenotionalprincipalamountsofforwardforeignexchangecontractsinNewZealanddollarstotalled$2.49million(2010:$0.41million).TheforeigncurrencyprincipalamountswereUnitedStatesdollars$2.0million(2010:Australiandollars$0.33million).
note 23: deriVAtiVe finAnciAL instruMents
68 2011 annual rep o rt
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
opening balance 33,550 48,700 33,550 48,700
Netborrowings/(repayments) 7,044 (15,150) 7,044 (15,150)
cLosing BALAnce 40,594 33,550 40,594 33,550
fair valueThecarryingamountsofborrowingsrepayablewithinoneyearapproximatetheirfairvalue,astheimpactofdiscountingisnotsignificant.
note 24: Borrowings
AucklandUniversityofTechnologyrenewedthemulti-facilityagreement(andtheaccompanyingnegativepledgedeed)withtheANZNationalBankLimitedon10October2011.Therenewedfacilityisforamaximumamountof$70millionasfollows:(a) from(andincluding)1Marcheachyearto(andincluding)31Julyeachyear,$40million;(b) (subjectto(c)below)from(andincluding)1Augusteachyearto(andincluding)thelastdayofFebruary
eachyear,$70million;and(c) from(andincluding)1August2014to(andincluding)31December2014,$60million.
At31December2011,$40.59million(2010:$33.55million)hadbeendrawndownonthisfacility.TheUniversityusesthefacilityasaflexiblefinancefacility,seekingtominimisedebtascashflowspermit.Theweightedaverageinterestrateontheoutstandingloanfortheyearwas4.07%(2010:4.28%).
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
equity:
Balanceatthebeginningoftheyear 187,841 149,161 191,041 149,896
Netsurplusfortheyear 9,221 18,347 10,087 20,812
Transfersfromsuspensoryloans 50,000 20,333 50,000 20,333
Balance at the end of the year 247,062 187,841 251,128 191,041
suspensory Loan:
Balanceatthebeginningoftheyear 50,000 70,333 50,000 70,333
Converttoequity(Note37) (50,000) (20,333) (50,000) (20,333)
Balance at the end of the year – 50,000 – 50,000
totAL generAL equity 247,062 237,841 251,128 241,041
Duringthefinancialyear,thesuspensoryloanamountof$50millionwasconvertedintoequityuponreceivingtheConversionConfirmationNoticefromtheCrownasdetailedinNote37.
note 25: generAL equity
2011 annual report 69
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Assets revaluation reserve:
Balanceatthebeginningoftheyear 117,424 117,182 117,424 117,182
Changesduetorevaluationof:
Crown-ownedland – 4,277 – 4,277
Crown-ownedbuildings – (2,088) – (2,088)
AUT-ownedland – (7,606) – (7,606)
AUT-ownedbuildings – 5,659 – 5,659
Balance at the end of the year 117,424 117,424 117,424 117,424
Available-for-sale financial assets
revaluation reserve:
Balanceatthebeginningoftheyear (37) (33) (37) (33)
Netfairvaluegains/(losses)intheyear (2) (4) (2) (4)
Balance at the end of the year (39) (37) (39) (37)
cash flow hedge reserve:
Balanceatthebeginningoftheyear (378) (7) (378) (7)
Netfairvaluegains/(losses)intheyear 9 (371) 9 (371)
Balance at the end of the year (369) (378) (369) (378)
totAL reVALuAtion reserVes 117,016 117,009 117,016 117,009
note 26: reVALuAtion reserVes
note 27: reLAted PArty trAnsActions
significant transactions with government-related entitiesThegovernmentinfluencestherolesoftheUniversityaswellasbeingamajorsourceofrevenue.TheUniversityhasreceivedfundingandgrantsfromtheTertiaryEducationCommissiontotalling$141.62million(2010:$138.70million)toprovideeducationandresearchservicesfortheyearended31December2011.TheUniversityalsoleases,atanannualrentalamountof$100plusGSTifdemanded,landandbuildingslegallyownedbytheCrown.FurtherinformationontheaccountingforCrown-ownedlandandbuildingsisdisclosedinNote1(y).
collectively, but not individually, significant transactions with government-related entitiesInconductingitsactivities,theUniversityisrequiredtopayvarioustaxesandlevies(suchasGST,PAYE,andACClevies)totheCrownandentitiesrelatedtotheCrown.Thepaymentofthesetaxesandlevies,otherthanincometax,isbasedonthestandardtermsandconditionsthatapplytoalltaxandlevypayers.TheUniversityisexemptfrompayingincometax.TheUniversitypurchasesgoodsandservicesfromentitiesrelatedtotheCrownanditalsoprovidesservicestoentitiesrelatedtotheCrown.Thepurchaseandtheprovisionofgoodsandservicestogovernment-relatedentitiesfortheyearended31December2011aresmallwhencomparedtotheUniversity’stotalexpenditureandrevenueandhaveallbeenconductedonanarms’lengthbasis.ThepurchaseofgoodsandservicesincludedthepurchaseofelectricityfromMeridianEnergy,airtravelfromAirNewZealand,postalservicesfromNewZealandPost,andstudentplacementservicesfromvariousDistrictHealthBoards,SchoolsandPolytechnics.Theprovisionofservicestogovernment-relatedentitiesmainlyrelatedtotheprovisionofeducationalcourses.
70 2011 annual rep o rt
note 27: reLAted PArty trAnsActions (continued)
related party transactions with subsidiaries, interest in an associate, and jointly-controlled entityAucklandUniversityofTechnologyistheultimateparentofthegroup.ThegroupcomprisestheUniversity,itssubsidiaries,interestinanassociateandjointventureinterestsasdisclosedintheFinancialStatements.Duringtheyear,thefollowingtransactionswerecarriedoutwithrelatedparties:
2011 2010 Actual Actual $000s $000s
suBsidiAry coMPAnies
Auckland university of technology foundation
Donationreceivedonbehalf – 1
Grantsandscholarshipsreceivedonbehalf 77 20
Grantsandscholarshipspaidtosubsidiary 77 –
Grantsandscholarshipsreceivedfromsubsidiary – 5
Creditorpaymentonbehalf 3 1
Accountsreceivable – 5
Accountspayable – –
Aut enterprises Limited
Operatingrevenuereceivedonbehalf 230 70
DevelopmentFundpaidtoSubsidiary 100 188
Operatingexpensespaidonbehalf 194 185
ManagementservicesprovidedtoSubsidiary 100 80
Accountspayable 144 108
AssociAte coMPAny
Lco new Zealand Limited
Purchaseofservices 396 311
Accountspayable 286 223
JointLy-controLLed entity
Aut/Millennium ownership trust
Capitalcontribution–cash – 7,500
Reimbursementofcapitalexpenditure 567 –
Operatingexpensespaidonbehalf 69 10
Accountsreceivable 95 6
Allrelatedpartytransactionsareonmarkettermsandconditions.
Key management personnel university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Salariesandothershort-termemployeeentitlements 4,404 3,762 4,404 3,762
Post-employmententitlements – – – –
Otherlong-termbenefits – – – –
Terminationbenefits – – – –
totAL Key MAnAgeMent 4,404 3,762 4,404 3,762PersonneL coMPensAtion
2011 annual report 71
note 27: reLAted PArty trAnsActions (continued)
Key management personnel (continued)KeymanagementpersonnelincludetheChancellor,Vice-Chancellor,MembersofCouncil,andotherseniormanagementpersonnelreportingdirectlytotheVice-Chancellor.
ThereareclosefamilymembersofkeymanagementpersonnelemployedbytheUniversity.ThetermsandconditionsofthosearrangementsarenomorefavourablethantheUniversitywouldhaveadoptediftherewerenosuchrelationship.
TheVice-ChancellorandProViceChancellor(NorthShore)areTrusteesofAUT/MillenniumOwnershipTrust(ajointly-controlledentityoftheUniversity).TheirfeesinrelationtothosepositionsarepaiddirectlytotheUniversity.
councillorsDuringtheyear,thefollowingCouncillorsandkeymanagementpersonnelweremembersoforganisationsthathaveenteredintotransactionswithAucklandUniversityofTechnologyaspartofitsnormaloperations. Accounts Accounts Purchases Sales payable receivable Actual Actual Actual Actual2011 $000s $000s $000s $000s
g campbell VodafoneNZLimited(Director) 803 58 63 –
P dunphy AccidentCompensationCorporation(Director) 681 72 – –NewZealandPost(Director) 296 – 12 –
L Henry CranleighMerchantBankers(Chairman) – – – –Trans-TasmanBusinessCircle(DeputyChairman) 50 4 – –MedtechLimited(Director) 9 – 1 –MinterEllisonRuddWatts(SpecialCounsellor) 105 – 3 –
J Maasland TheRadioNetworkLimited(Chairman) 2 – – –APNNews&Media(Director) 13 – 1 –AucklandRegionalChamberofCommerceand 3 – – –IndustryLimited(Director)
V Bridgwater AucklandTourismEventsandEconomic 17 24 17 –DevelopmentLimited(Director)
2010
P dunphy NewZealandPost(Director) 277 16 22 –AccidentCompensationCorporation(Director) 802 75 – 9
L Henry CranleighMerchantBank(Chairman) 10 – – –TransTasmanBusinessCircle(DeputyChairman) 43 – – –MedtechLimited(Director) 14 – – –
n glavish Health&DisabilityCommission(Chairman) 1 – – –AucklandDistrictHealthBoard(GeneralManager) 1,073 60 – –
J Maasland APNNews&Media(Director) 9 – 2 –
J Martin MinterEllisonRuddWatts(Consultant) 122 – – –
Alltransactionsweremadeonnormalcommercialtermsandconditions.Outstandingbalancesatbalancedateareunsecuredandinterestfree.Noprovisionhasbeenrequiredoranyexpenserecognisedforimpairmentofaccountsreceivablefromrelatedparties(2010:$nil).
72 2011 annual rep o rt
note 28: counciLLors’ fees
ThefollowingfeeswereearnedbymembersoftheCouncilofAucklandUniversityofTechnology.
2011 2010 Actual Actual $000s $000s
council Member
UAiono – 7
PAlley 3 1
GCampbell 4 –
ACocker 6 5
FDavies 6 7
HDuncan 5 6
PDunphy – 2
KEssuman 3 –
NGlavish – 1
LHenry* 8 8
JHill – 7
PKingi 9 5
LLim 4 –
JMaasland 5 3
JMartin 7 7
VNgLam 7 7
JO’Hara – 3
PPhillips 12 6
PReeves 25 25
DSchofield – 6
JSchofield 11 4
SStephen 3 –
JThompson 5 –
totAL counciLLors’ fees 123 110
*LHenryisaTrusteeofAUT/MillenniumOwnershipTrust(ajointly-controlledentityoftheUniversity)andreceivedfeesof$10,000(2010:$10,000)inrelationtothatposition.
2011 annual report 73
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Netsurplusfromoperations 9,221 18,347 10,087 20,812
Adjustments for items not involving cash
Depreciation,amortisationandimpairment 33,138 32,322 33,138 32,322
Increase/(decrease)inemployeeentitlements 2,315 168 2,315 168–termportion
Increase/(decrease)inreinstatementprovision 508 119 508 119
(Gain)/lossonforeigncurrencytranslation (116) 54 (116) 54
(Gain)/lossonderivativefinancialinstruments (52) (14) (52) (14)–non-hedged
Shareofassociate’snetsurplus – – (11) (45)
Shareofjointly-controlledentity’snetsurplus – – (726) (2,266)
total items not involving cash 35,793 32,649 35,056 30,338
Movements in working capital
(Increase)/decreaseintradeandotherreceivables 19,116 (15,921) 18,996 (15,946)
(Increase)/decreaseinprepayments (167) 23 (167) 23
(Increase)/decreaseininventories (10) (44) (10) (44)
Increase/(decrease)intradeandotherpayables 2,759 5,121 2,844 4,879
Increase/(decrease)inincomeinadvance (10,577) 18,246 (10,577) 18,246
Increase/(decrease)incurrentemployeeentitlements 742 2,069 742 2,069
total movements in working capital 11,863 9,494 11,828 9,227
Increase/(decrease)incapitalaccruals (1,553) (1,563) (1,533) (1,545)
(Gain)/lossondisposalofproperty,plant (14) 17 (14) 17andequipment
Add/(less) items classified as investing activities (1,567) (1,546) (1,547) (1,528)
net cAsH fLow froM oPerAting ActiVities 55,310 58,944 55,424 58,849
note 29: reconciLiAtion of net surPLus to net cAsH fLow froM oPerAting ActiVities
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Capitalexpenditurecontractedforatbalancedate 50,378 75,541 50,378 75,541butnotyetincurredforproperty,plantandequipment(NoteA)
totAL cAPitAL coMMitMents 50,378 75,541 50,378 75,541
Note(A)–InNovember2010,theUniversityenteredintoaconstructioncontractfor$74.5millionwithFletcherConstructionCompanyLimitedaspartoftheconstructionofa20,000squaremetreprecinctonthecitycampus.
note 30: cAPitAL coMMitMents
74 2011 annual rep o rt
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Notlaterthanoneyear 6,940 5,911 6,940 5,911
Laterthanoneyearandnotlaterthanfiveyears 14,932 15,603 14,932 15,603
Laterthanfiveyears 823 1,167 823 1,167
totAL non-cAnceLLABLe oPerAting LeAses 22,695 22,681 22,695 22,681
AucklandUniversityofTechnologyleasesproperty,plantandequipmentinthenormalcourseofitsbusiness.Themajorityoftheseleaseshaveanon-cancellabletermof36months.TheUniversityhastheoptiontopurchasetheassetattheendoftheleaseterm.
TheUniversityleases29,923squaremetres(2010:26,431squaremetres)ofofficespaceinAucklandforteaching,research,andadministrativepurposes.ThemajorityoftheseleasescanberenewedattheUniversity’soption,withrentssetbyreferencetocurrentmarketratesforitemsofequivalentageandcondition.
note 32: finAnciAL instruMent
financial instrument categoriesTheaccountingpoliciesforfinancialinstrumentshavebeenappliedtotheitemsbelow:
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
finAnciAL Assets
Loans and receivablesCashandcashequivalents 2,821 3,706 3,891 4,662Short-terminvestments – 129 – 129Tradeandotherreceivables 4,358 23,474 4,523 23,550Investmentscarriedatcost 133 153 133 153
totAL LoAns And receiVABLes 7,312 27,462 8,547 28,494
fair value through other comprehensive incomeListedsecurities 2 4 2 4
derivatives not designated as hedgesForwardforeignexchangecontracts 52 14 52 14
finAnciAL LiABiLities
derivatives designated as cash flow hedgesInterestrateswap 369 379 369 379
financial liabilities measured at amortised costsTradeandotherpayables 28,944 26,185 28,969 26,156Borrowings 40,594 33,550 40,594 33,550
totAL finAnciAL LiABiLities 69,538 59,735 69,563 59,706MeAsured At AMortised costs
note 31: oPerAting LeAses coMMitMents – As Lessee
Commitmentsforfutureaggregateminimumleasepaymentsinrelationtonon-cancellableoperatingleasescontractedatthebalancedatebutnotrecognisedasliabilitiesareasfollows:
2011 annual report 75
Valuation technique Quoted Significant market Observable non-observable Total price inputs inputuniversity 2011 $000s $000s $000s $000s
financial assets Forwardforeignexchangecontracts–non-hedged 53 – 52 –
Listedsecurities 2 2 – –
financial liabilities Interestrateswap–cashflowhedges 369 – 369 –
consolidated 2011
financial assets Forwardforeignexchangecontracts–non-hedged 52 – 52 –
Listedsecurities 2 2 – –
financial liabilities Interestrateswap–cashflowhedges 369 – 369 –
university 2010
financial assets Forwardforeignexchangecontracts–non-hedged 14 – 14 –
Listedsecurities 4 4 – –
financial liabilities Interestrateswap–cashflowhedges 379 – 379 –
consolidated 2010
financial assets Forwardforeignexchangecontracts–non-hedged 14 – 14 –
Listedsecurities 4 4 – –
financial liabilities Interestrateswap–cashflowhedges 379 – 379 –
note 32: finAnciAL instruMent (continued)
fair value hierarchy disclosuresForthoseinstrumentsrecognisedatfairvalueontheBalanceSheet,fairvaluesaredeterminedaccordingtothefollowinghierarchy:
1. Quotedmarketprice–financialinstrumentswithquotedpricesforidenticalinstrumentsinactivemarkets.
2. Valuationtechniqueusingobservableinputs–financialinstrumentswithquotedpricesforsimilarinstrumentsinactivemarketsorquotedpricesforidenticalorsimilarinstrumentsininactivemarketsandfinancialinstrumentsvaluedusingmodelswhereallsignificantinputsareobservable.
3. Valuationtechniqueswithsignificantnon-observableinputs–financialinstrumentsvaluedusingmodelswhereoneormoresignificantinputsarenotobservable.
ThefollowingtableanalysesthebasisofthevaluationofclassesoffinancialinstrumentsmeasuredatfairvalueontheBalanceSheet:
76 2011 annual rep o rt
note 33: finAnciAL instruMent risKs
AucklandUniversityofTechnology’sactivitiesexposeittoavarietyoffinancialrisksincludingmarketrisk(interestraterisk,currencyriskandpricerisk),creditriskandliquidityrisk.TheUniversity’sTreasuryManagementPolicyandoverallriskmanagementprogrammefocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotentialadverseeffectsonthefinancialperformanceoftheUniversity.TheUniversityusesderivativefinancialinstrumentssuchasinterestrateswapsandforwardforeignexchangecontractstohedgecertainriskexposures.
FinancialriskmanagementiscarriedoutundertheTreasuryManagementPolicyapprovedbytheCounciloftheUniversity.TheCouncilprovideswrittenprinciplesforoverallriskmanagement,aswellaspoliciescoveringspecificareassuchasinterestraterisk,creditrisk,useofderivativefinancialinstrumentsandnon-derivativefinancialinstruments,andinvestmentofexcessliquidity.
TreasuryManagementPolicydoesnotallowanytransactionsthatarespeculativeinnaturetobeenteredinto.
Market risk
Interest rate riskInterestrateriskistheriskthatthefairvalueorfuturecashflowsoftheUniversity’sfinancialinstrumentswillfluctuateduetochangesinmarketinterestrates.AucklandUniversityofTechnologyisexposedtointerestrateriskfromitsinterest-earningfinancialassetsandinterest-bearingliabilities.
TheUniversityisriskaverseandseekstominimiseexposurearisingfromitstreasuryactivities.Itdoesnotundertakeunnecessaryinvestmentorborrowingactivity,norisitspeculativeintheactivityitundertakes.
TheUniversitymanagesitsinterestrateriskonborrowingsbyusingfloating-to-fixedinterestrateswaps.SuchinterestrateswapshavetheeconomiceffectofconvertingborrowingsatfloatingratesandswappingthemintofixedratesthataregenerallylowerthanthoseavailableiftheUniversityborrowedatfixedratesdirectly.Undertheinterestrateswaps,theUniversityagreeswithotherpartiestoexchange,atspecifiedintervals,thedifferencebetweenfixedcontractratesandfloating-rateinterestamountscalculatedbyreferencetotheagreednotionalprincipalamounts.
Currency riskCurrencyriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuateduetochangesinforeignexchangerates.AucklandUniversityofTechnologyhastransactionalcurrencyexposure.Suchexposurearisesfromthepurchaseofgoodsandservicesincurrenciesotherthanthelocalcurrency.
ItistheUniversity’sTreasuryManagementPolicytomanageforeigncurrencyrisksarisingfromcontractualcommitmentsandliabilitiesthatareabovespecifiedamountsbyenteringintoforwardforeignexchangecontractsorsupplierguaranteedNewZealandDollarpurchasepricecontractstohedgetheforeigncurrencyriskexposure.
Price riskAucklandUniversityofTechnologyisexposedtoequitysecuritiespricerisk.ThisarisesfrominvestmentsheldbytheUniversityandclassifiedintheBalanceSheeteitherasavailable-for-salefinancialassetsoratfairvaluethroughprofitorloss.
TheUniversitydoesnotmanagethepriceriskarisingfrominvestmentsinequitysecurities.Thepriceriskfortheequitysecuritiesisimmaterialintermsofthepossibleimpactonprofitorlossortotalequity.Ithasthereforenotbeenincludedinthesensitivityanalysis.
2011 annual report 77
note 33: finAnciAL instruMent risKs (continued)
credit risk
CreditriskistheriskthatathirdpartywilldefaultonitsobligationstotheUniversity,therebycausingtheUniversitytoincuraloss.TheUniversity’sTreasuryManagementPolicylimitstheamountofcreditexposuretoanyonefinancialinstitutionororganisation.TheUniversityonlyinvestsfundswithentitiesthathaveaStandardandPoor’screditratingofatleast‘A-2’forshort-termand‘A’forlong-terminvestments.
TheUniversityhasnocollateralorothercreditenhancementsforfinancialinstrumentsthatgiverisetocreditrisk.
Themaximumcreditexposureforeachclassoffinancialinstrumentisasfollows:
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
Cashandcashequivalents 2,821 3,706 3,891 4,662
Short-terminvestments – 129 – 129
Tradeandotherreceivables 4,358 23,474 4,523 23,550
totAL credit risK 7,179 27,309 8,414 28,341
ThecreditqualityoffinancialassetsthatareneitherpastduenorimpairedcanbeassessedbyreferencetoStandardandPoor’screditratings(ifavailable)ortohistoricalinformationaboutcounterpartydefaultrates:
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
counterPArties witH credit rAtings
cash and cash equivalents:
AA- 2,821 3,706 3,891 4,662
total cash and cash equivalents 2,821 3,706 3,891 4,662
short-term investments:
AA- – 129 – 129
total short-term investments – 129 – 129
derivative financial instrument assets:
AA- 52 14 52 14
total derivative financial instrument assets 52 14 52 14
TradeandotherreceivablesarisemainlyfromtheUniversity’soperatingactivities,thereforetherearenoproceduresinplacetomonitororreportthecreditqualityoftradeandotherreceivableswithreferencetointernalorexternalcreditratings.TheUniversityisnotexposedtoanymaterialconcentrationsofcreditrisk.Tradeandotherreceivablebalancesaremonitoredonanongoingbasistoensurethattheexposuretobaddebtsisnotsignificant.
78 2011 annual rep o rt
note 33: finAnciAL instruMent risKs (continued)
Liquidity risk
Management of liquidity riskLiquidityriskistheriskthattheUniversitywillencounterdifficultyraisingliquidfundstomeetcommitmentsastheyfalldue.Prudentliquidityriskmanagementimpliesmaintainingsufficientcashandtheavailabilityoffundingthroughanadequateamountofunutilisedcommittedcreditfacilities.
TheUniversitymanagesliquidityriskbycontinuouslymonitoringforecastandactualcashflowsandmatchingthematurityprofilesoffinancialassetsandliabilities.ToprovideflexibilityinthemanagementoftheUniversity’sliquidity,theUniversityhasestablishedamulti-facilityagreement(andtheaccompanyingnegativepledgedeed)withtheANZNationalBankLimited(fordetailsrefertoNote24).
Contractual maturity analysis of financial liabilitiesThetablebelowanalysestheUniversity’sfinancialliabilitiesintorelevantmaturitygroupingsbasedontheremainingperiodatbalancedatetothecontractualmaturitydate.Futureinterestpaymentsonfloatingratedebtarebasedonthefloatingrateontheinstrumentatbalancedate.Theamountsdisclosedarethecontractualundiscountedcashflows.
Carrying Contractual Lessthan 1-5 Morethan Amount Cashflows 1year years 5years $000s $000s $000s $000s $000s
uniVersity 2011
Tradeandotherpayables 28,944 28,944 28,944 – –
Netsettledderivativeliabilities 369 369 18 351 –
Financeleases 40,435 58,100 7,404 17,801 32,895
Borrowings 40,594 45,442 1,642 43,800 –
totAL 110,342 132,855 38,008 61,952 32,895
consoLidAted 2011
Tradeandotherpayables 28,969 28,969 28,969 – –
Netsettledderivativeliabilities 369 369 18 351 –
Financeleases 40,435 58,100 7,404 17,801 32,895
Borrowings 40,594 45,442 1,642 43,800 –
totAL 110,367 132,880 38,033 61,952 32,895
uniVersity 2010
Tradeandotherpayables 26,185 26,185 26,185 – –
Netsettledderivativeliabilities 379 379 176 203 –
Financeleases 41,930 61,942 7,324 17,977 36,641
Borrowings 33,550 34,982 1,422 33,560 –
totAL 102,044 123,488 35,107 51,740 36,641
consoLidAted 2010
Tradeandotherpayables 26,156 26,156 26,156 – –
Netsettledderivativeliabilities 379 379 176 203 –
Financeleases 41,930 61,942 7,324 17,977 36,641
Borrowings 33,550 34,982 1,422 33,560 –
totAL 102,015 123,459 35,078 51,740 36,641
2011 annual report 79
note 33: finAnciAL instruMent risKs (continued)
Contractual maturity analysis of financial assetsThetablebelowanalysestheUniversity’sfinancialassetsintorelevantmaturitygroupingsbasedontheremainingperiodatthebalancedatetothecontractualmaturitydate.
Carrying Contractual Lessthan 1-5 Morethan Amount Cashflows 1year years 5years $000s $000s $000s $000s $000s
uniVersity 2011
Cashandcashequivalents 2,821 2,821 2,821 – –
Short-terminvestments – – – – –
Tradeandotherreceivables 4,358 4,358 4,358 – –
Netsettledderivativeassets 52 52 52 – –
totAL 7,231 7,231 7,231 - -
consoLidAted 2011
Cashandcashequivalents 3,891 3,891 3,891 – –
Short-terminvestments – – – – –
Tradeandotherreceivables 4,523 4,523 4,523 – –
Netsettledderivativeassets 52 52 52 – –
totAL 8,466 8,466 8,466 – –
uniVersity 2010
Cashandcashequivalents 3,706 3,706 3,706 – –
Short-terminvestments 129 129 129 – –
Tradeandotherreceivables 23,474 23,474 23,474 – –
Netsettledderivativeassets 14 14 14 – –
totAL 27,323 27,323 27,323 – –
consoLidAted 2010
Cashandcashequivalents 4,662 4,662 4,662 – –
Short-terminvestments 129 129 129 – –
Tradeandotherreceivables 23,550 23,550 23,550 – –
Netsettledderivativeassets 14 14 14 – –
totAL 28,355 28,355 28,355 – –
80 2011 annual rep o rt
note 33: finAnciAL instruMent risKs (continued)
sensitivity analysis
Thetablesbelowillustratethepotentialprofitandlossandequity(excludingretainedsurplus)impactforreasonablypossiblemarketmovementsininterestrates,withallothervariablesheldconstant,basedontheUniversity’sfinancialinstrumentexposuresatbalancedate.
university consolidated
+100 bps –100 bps +100 bps –100 bps
Other Other Other Other Profit equity Profit equity Profit equity Profit equity $000s $000s $000s $000s $000s $000s $000s $000s
2011
interest rAte risK
financial assets
Cashandcashequivalents 28 – (28) – 39 – (39) –
Short-terminvestments – – – – – – – –
financial liabilities
Interestrateswaps – 35 – (35) – 35 – (35)
Borrowings (266) – 266 – (266) – 266 –
total sensitivity to (238) 35 238 (35) (227) 35 227 (35)interest rate risk
university consolidated
+10% –10% +10% –10%
Other Other Other Other Profit equity Profit equity Profit equity Profit equity $000s $000s $000s $000s $000s $000s $000s $000s
2011
currency risK
financial assets
Cashandcashequivalents (2) – 6 – (2) – 6 –
Forwardforeignexchange (179) – 336 – (179) – 336 –contracts
total sensitivity to (181) – 342 – (181) – 342 –currency risk
equity Price risK
other financial assets
Listedsecurities – 1 – (1) – 1 – (1)
total sensitivity to – 1 – (1) – 1 – (1)equity price risk
2011 annual report 81
university consolidated
+100 bps –100 bps +100 bps –100 bps
Other Other Other Other Profit equity Profit equity Profit equity Profit equity $000s $000s $000s $000s $000s $000s $000s $000s
2010
interest rAte risK
financial assets
Cashandcashequivalents 37 – (37) – 47 – (47) –
Short-terminvestments 1 – (1) – 1 – (1) –
financial liabilities
Interestrateswaps – 47 – (47) – 47 – (47)
Borrowings (146) – 146 – (146) – 146 –
total sensitivity to (108) 47 108 (47) (98) 47 98 (47)interest rate risk
university consolidated
+10% –10% +10% –10%
Other Other Other Other Profit equity Profit equity Profit equity Profit equity $000s $000s $000s $000s $000s $000s $000s $000s
2010
currency risK
financial assets
Cashandcashequivalents (169) – 611 – (169) – 611 –
Forwardforeignexchange (39) – 46 – (39) – 46 –contracts
total sensitivity to (208) – 657 – (208) – 657 –currency risk
equity Price risK
other financial assets
Listedsecurities – 1 – (1) – 1 – (1)
total sensitivity to – 1 – (1) – 1 – (1)equity price risk
note 33: finAnciAL instruMent risKs (continued)
82 2011 annual rep o rt
note 34: cAPitAL MAnAgeMent
TheUniversity’scapitalisitsequity,whichcomprisesretainedsurplusesandreserves.Equityisrepresentedbynetassets.TheUniversitymanagesitsrevenue,expenses,assets,liabilities,andgeneralfinancialdealingsprudently.TheUniversity’sequityislargelymanagedasaresultofmanagingincome,expenses,assetsandliabilities.
TheobjectiveofmanagingtheUniversity’sequityistoensuretheUniversityeffectivelyachievesthegoalsandobjectivesforwhichithasbeenestablished,whilstremainingagoingconcern.
note 35: segMentAL inforMAtion
AucklandUniversityofTechnologyoperatespredominantlyinoneindustry,tertiaryeducation,andinonegeographicalarea,Auckland,NewZealand.
note 36: eXcePtionAL risKs of oPerAting
ThereareanumberoffactorsthatcouldadverselyaffectAucklandUniversityofTechnology’soperatingsurplus.Mostnotably,internationalstudentrevenuecouldbeaffectedbyasignificantchangetoNewZealand’s,orforeigngovernments’,immigrationorvisitors’permitspolicies.Sixteenpercent(2010:15%)oftotalrevenueisderivedfromInternationalstudentfees.
note 37: contingencies
contingent assets
Asat31December2011,acontractor’sperformancebondinthesumof$1,000,000andacontractor’sbondinlieuofretentionsinthesumof$1,500,000,jointlyissuedbytheFletcherConstructionCompanyLimited(Contractor)andtheFletcherTrust&InvestmentCompanyLimited(Sureties),areheldbytheUniversity.
TheseBondsareheldtoensuretheContractorcomplieswithitsobligationsundertheContractDocumentsbetweentheContractorandtheUniversityinrespectoftheconstructionofthe20,000squaremetreWGPrecinct.TheseBondscanbedrawnbytheUniversityincircumstancesshouldtheContractorfailtomeetitsperformanceobligationsunderthecontractdocuments.
2011 annual report 83
university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s
$50 million suspensory Loan
Balanceatthebeginningoftheyear 50,000 50,000 50,000 50,000
Converttoequity (50,000) – (50,000) –
Balance at the end of the year – 50,000 – 50,000
$25 million suspensory Loan
Balanceatthebeginningoftheyear – 8,333 – 8,333
Converttoequity(seenotebelow) – (8,333) – (8,333)
Balance at the end of the year – – – –
$12 million suspensory Loan
Balanceatthebeginningoftheyear – 12,000 – 12,000
Converttoequity(seenotebelow) – (12,000) – (12,000)
Balance at the end of the year – – – –
totAL susPensory LoAns – 50,000 – 50,000
$50 million Suspensory Loan TheUniversityreceivedaConversionConfirmationNoticedated23August2011fromtheCrown.ThisconfirmedthattheUniversityhadmetalltheSpecificObjectiveandPerformanceTargetspecifiedinSchedule2oftheAgreementregardinga$50millionSuspensoryLoanConvertibleintoEquitybetweentheCrownandtheAucklandUniversityofTechnologydated29May2008(“Agreement”).Subjecttotheconversionconditioninclause9.1.1oftheAgreement,thesuspensoryloanamountof$50millionwasconvertedintoequityfromthedateofConversionConfirmationNotice.
$25 million Suspensory Loan In2010,theUniversityreceivedtheEquityConversionConfirmationNoticedated8April2010fromtheCrown.ThisconfirmedthattheUniversityhadmettheconversioncondition6.1.2underthesuspensoryloanagreementandtheremainingsuspensoryloanamountof$8.33millionwasconvertedintoequityfromthatdate.
$12 million Suspensory Loan In2010,theUniversityreceivedtheEquityConversionConfirmationNoticedated16July2010fromtheCrown.ThisconfirmedthattheUniversityhadmettheconversionconditions9.4.1and9.4.2underthesuspensoryloanagreementandthesuspensoryloanamountof$12millionwasconvertedintoequityfromthatdate.
note 37: contingencies (continued)
contingent liabilities
Suspensory loans from CrownIn2008,theUniversityreceivedthreesuspensoryloansfromtheCrowntothevalueof$50million,$25millionand$12million.Theseloanswererecognisedascontingentliabilities.ThesesuspensoryloanshavebeenrecognisedastheCrown’sequityinjectionwithingeneralequityuntiltheoptiontoconvertexpiresat30November2013,30June2010and30June2014respectively.
Duringthefinancialyear,$50million(2010:$20.33million)hasbeenconvertedtoequityfollowingtheUniversitymeetingtheconversionconditionsnotedbelow.Asaresult,allthesuspensoryloansfromtheCrownhavenowbeenconvertedtoequity.
84 2011 annual rep o rt
note 38: eXPLAnAtion of VAriAnces AgAinst Budget
Explanationsformajorvariancesagainstbudgetinformationareasfollows:
income statement
Government operational fundingGovernmentoperationalfundingwas$0.9millionaheadofbudgetasaresultofthefollowingunbudgetedactivities;$0.2millionprioryearPBRFwashup,$0.2millionadditionaltrainingcontractsand$0.5millionofothergovernmentgrantsrelatedtoareassuchasPrioritiesforFocus.
Student tuition feesStudenttuitionfeeswere$1.2millionbelowbudgetdrivenbya5%shortfallindomesticenrolments,partiallyoffsetbya5%increaseinInternationalenrolments.
Research grantsResearchgrantsreceivedduringtheyearwere$11.6millionwhichwas$1.1millionabovebudget.Ofthese,$0.9millionwascarriedforward,beingtheresearchgrantsunearnedatbalancedate.
Other incomeOtherincomewas$6.0millionabovebudget.Thesignificantitemswere$0.8millionunbudgetedinterestanddividendincome,$0.7millionfromincreasedenrolmentsinInternationalHouse,$0.7millioninsurancerecoveryrelatedtothewidelyreportedfraudintheBusinessInnovationCentreand$0.4millionfromadditionalshort-courses.ThebalancewasmiscellaneousrecoveriesfromavarietyofsourcesacrosstheUniversity.
Personnel costsTotalpersonnelcostswere$7.5millionabovebudget.Ofthis$1.9millionwasaccruedresearchandstudyleave.Thebalanceof$5.6millionreflecteda5.7%increaseinfull-timeequivalentstaff(FTE).
Depreciation, amortisation and impairmentDepreciationwas$2.8millionabovebudgetprimarilyduetoanadjustmentofdepreciationratestomoreaccuratelyrecognisetheestimatedusefullivesofbuilding,plantandequipment.
Balance sheet
Trade debtors and other receivablesTradedebtorsandotherreceivableswere$4.2millionbelowbudget.Thiswasmainlyduetoadecreaseinstudentdebtors,reflectingdeferredinvoicingofstudentsuntilJanuary2012forthe2012enrolmentyear.Forthe2011enrolmentyear,asubstantialamountofinvoicingwasdoneinDecember2010.
Property, plant and equipmentProperty,plantandequipmentwas$6.4millionabovebudget,mainlyduetotheunbudgeted$4.6millionpurchaseoflandatApolloDrive,MairangiBay,toenablefutureexpansionoftheAUTMillenniumCampus.
Trade and other payablesTradeandotherpayableswere$7.0millionabovebudget.Thiswasmainlyduetoanincreaseincreditoraccruals,offsetbydecreasesinGSTpayableandwithholdingtaxpayable.
Income in advanceIncomeinadvancewas$7.5millionabovebudget.The2011budgetof$24.7millionwasbasedonthe2009actualincomeinadvanceof$24.5million.Changesinenrolmentpatternsandinvoicingproceduresoverthelasttwoyearshaveproducedsignificantmovementsintheincomeinadvancebalancesatbalancedate.
Employee entitlementsEmployeeentitlementswere$4.1millionabovebudget.Thesignificantitemswerea$1.9millionprovisionforresearch&studyleave,a$1.1millionannualleaveaccrual,a$0.8millionrestructuringprovisionanda$0.3millionsalaryaccrual.
Bank borrowingsBankborrowingsof$40.6millionwere$4.1millionbelowthebudgetof$44.7millionatyearend.Thiswasduetoabovebudgetreceiptsfromgovernmentgrants($1.8million)andstudentfees($5.9million),andlowercapitalexpenditure($1.3million),offsetbya$3.2millionincreaseinemployeepaymentsanda$1.5millionincreaseinGST.
Finance lease borrowingsFinanceleaseborrowingsat$40.4millionwere$2.4millionlessthanthebudgetof$42.8million,mainlyduetoahigherproportionofnewequipmentbeingpurchasedoutrightinsteadofbywayoffinanceleases.
statement of cash flows
Theexplanationfor“Bankborrowings”aboveexplainstheCashFlowvariances.
2011 annual report 85
note 39: interest in JointLy controLLed Assets
TheUniversityhasajointventureinterestinKoAwateaEducationCentre,situatedatMiddlemoreHospital.ThejointventureisbetweenCountiesManukauDistrictHealthBoard(39.4%),ManukauInstituteofTechnology(31%),UniversityofAuckland(16.4%)andAucklandUniversityofTechnology(13.2%),withCountiesManukauDistrictHealthBoardasmanagerandoperatorofthejointventure.
ownership interest
Jointly controlled assets nature of joint venture 2011 2010
KoAwateaEducationCentre Partnershipwithhealthcareprofessionalsand 13.2% – educationalinstitutestoimproveefficiencyand achieveeffectiveapplicationofhealthcare.
TheUniversity’sshareofthejointlycontrolledassetswhichareincludedintheFinancialStatementsisasfollows: university
2011 2010 Actual Actual $000s $000s
Property,plantandequipment 287 –
totAL JointLy controLLed Assets 287 –
Therewerenomaterialcapitalexpenditurecommitmentsorcontingentliabilitiesinrelationtothejointlycontrolledassets.
note 40: eVents After tHe rePorting Period
Therehavebeennosignificanteventsafterthereportingperiod.
note 41: coMPArAtiVe figures
Certaincomparativefiguresintheprioryearhavebeenreclassifiedtoconformwiththisyear’spresentation.
86 2011 annual rep o rt
2011 annual report 87
stAteMent of resources
88 2011 annual rep o rt
2011 2010LeArning And teAcHing/reseArcH And deVeLoPMent
e-resources e-journaltitles 111,261 105,462e-booktitles 74,734 57,295e-Reserveitems(AUTonline) 3,702 3,047Researchrepositoryitems(ScholarlyCommons) 1,805 966
Print resources (titles) Books 214,188 207,406Journals(serials) 2,367 2,360Multimedia(AVitems) 17,570 17,308
engAgeMent
online access – full-text downloads e-journalfull-textdownloads 1,691,095 1,928,639e-bookfull-textdownloads 58,562 33,514e-Reservefull-textdownloads 37,443 32,415Researchrepositoryfull-textdownloads 436,868 578,090
online access – page views Researchrepositorypageviews 265,103 193,523Libraryguidespageviews 591,629 592,277Librarywebsitepageviews 1,720,777 1,675,553
Physical access Turnstilecounts(visitstoLibrary) 1,508,200 1,517,197Openinghours(perweek)9 86 86
Loans Printandmultimedia 305,294 335,537Coursereserve(highdemand) 56,294 55,877Interloanitemssuppliedandreceived 9,047 10,508
information services Informationliteracyworkshops(participants) 17,213 14,583Informationliteracyworkshops(groups) 650 612Researchconsultations 3,886 3,729LibraryHelpDeskenquiries 11,786 14,971
stAff TotalLibrarystaff(FTE) 62.7 57.7
sustAinABiLity
expenditure — $000s Operatingexpenditure–excludingdepreciation 5,520 5,345Depreciationandassetimpairment10 9,230 5,689
Totaloperatingexpenditure 14,750 11,034Capitalexpenditure—informationresources 5,232 4,799
total Library expenditure 19,982 15,833
TotalLibraryexpenditure($)perEFTS(MoE 1,025 796andInternational)andFTE
LiBrAry
9 Weeklyopeninghoursincreaseto98hoursforthelastfourweeksofeachsemester10 Theincreaseindepreciationandassetimpairmentiscausedbychangestothedefinitionoftheusefullifeofe-resourcesandserials.Thisresultedina $1.99millionimpairmentcostswriteoffofe-resourcesandserialsolderthanfiveyears
2011 annual report 89
2011 2010
LeArning And teAcHing
computers and student users
Totalnumberofcomputers(includinglaptops) 6,852 6,810
Numberofcomputersinclassroomsandopen-accesslaboratories 5,323 4,586
TotalEFTS:computerratio 3.5:1 4.1:1
computer facilities and support
Availableopen-accesslaboratoryhours11 2,709,384 1,987,879
Totalnumberofopen-accesshoursused 593,544 623,139
Percentageopen-accessusage 21.9% 31.3%
Numberofstudentlog-onstothewirelessnetwork(peak)12 2,090 1,221
Numberofstudentlog-onstothewirelessnetwork(busiestday)13 3,373 1,942
Totalservicedeskenquiries 74,658 75,077
Percentageincidentresolutionwithinfourhours–students14 94.4% –
reseArcH And deVeLoPMent
KARENnetwork(averagetraffic) 23.8Mb –
KARENnetwork(maximumtrafficbothways) 447Mb –
TotalAUTtraffictoGoogleScholar 27,456 Mb 7,839Mb
URLhitstoGoogleScholar 3,071,382 1,370,670
coMMunity engAgeMent
NumberofpageviewsonAUTwebsitefromexternalusers 8,352,049 6,229,581
NumberofdistinctusersforAUTonline 27,025 28,097
Numberofpageviews(events/activities)forAUTonline 506,929 339,549
stAff
StaffsatisfactionwithInformationTechnologyServices(ITS)15 94.1% –
Percentageincidentresolutionwithinfourhours–staff 77.2% –
sustAinABiLity
expenditure — $000s
OperatingexpenditureforITS–excludingdepreciation 11,961 12,050
Depreciation 1,961 1,397
Operatingexpenditureforcomputerleasesinotherdivisions 3,030 3,549
TotaloperatingITSexpenditureforUniversity 16,952 16,996
Capitalexpenditure 1,732 1,558
total its expenditure 18,684 18,554
Percentageincrease/(decrease)totalITSexpenditure <1% 5%
ITSoperatingexpenditureaspercentageoftotal 5.9% 6.3%
Universityexpenditure
ITSsalaries/totalITSoperatingexpenditure 41% 36%
TotalITSstaff(FTE)16 90 82
TotalITSexpenditureperEFTS(MoEandInternational)andFTE($) 959 933
inforMAtion tecHnoLogyserVices
11 Theincreaseinopen-accesshoursfor2011istheresultofalargernumberoflabsprovidingaccessfor24hoursaday/7daysaweek12 Thisistheaveragelog-insinthepeakmonthforusagein2011whichwasOctober13 Thisisthetotalstudentlog-insonthebusiestdaywhichwas4Octoberin2011and11Mayin201014 TheInformationTechnologyServicesreportwasreviewedin2011toalignwithbestpracticereportingandreflectAUT’sstrategicpriorities. Someinformationpresentedinthe2011reportwasnotpreviouslycollectedandcannotbereportedfor2010(thisisindicatedwithadash)15 Thisfigureisbasedonthestaffresponseto“OverallsatisfactionwithITsupport”fromthe2011staffengagementsurvey16 DuetomoreprecisereportingofFTEbyfacultyandadministrationarea,the2010figurefortotalITSstaffhasbeenrestated(previouslyreportedas85FTE)
90 2011 annual rep o rt
2011 2010 gross Value Gross Value LAnd Area ha $000s Areaha $000s
crown owned land 16.9 39,202 16.9 39,203
Aut owned landCityCampus 1.0 19,298 1.0 19,298ManukauCampus 7.8 28,022 7.8 28,022AUTMillenniumCampus 1.3 4,552 total land 27.0 91,074 25.7 86,523
2011 2010 net Book NetBook gross Value Gross Value BuiLdings Area m2 $000s Aream2 $000s
crown owned buildingsCityCampus 12,063 20,627 12,062 19,289NorthShoreCampus17 18,947 26,951 19,223 29,622total crown owned buildings 31,010 47,578 31,285 48,911
Aut owned buildingscity campusArtandDesignBuilding 9,266 21,835 9,266 22,053BusinessBuilding 10,681 34,391 10,681 34,705DadleyBuilding 2,975 2,222 2,975 2,296HotelandRestaurantStudiesBuilding 7,887 26,800 7,887 27,096NgäWaiOHorotiuMarae 559 1,624 559 1,640ScienceandTechnologyBuilding 10,012 23,038 10,012 22,869SymondsStreetBuilding 10,320 10,786 10,320 10,987TeAraPoutamaandHikuwaiBuildings 7,896 15,528 7,896 15,714WellesleyLearningCentre(TeAmorangi) 16,500 34,955 16,500 35,13446WakefieldStreet 3,221 2,064 3,221 2,111Otherbuildings18 – 7,766 515 13,501Siteimprovementsandinfrastructure – 1,471 – 1,469Workinprogress – 45,619 – 8,528total city campus 79,317 228,099 79,832 198,103
north shore campusAABuilding 3,320 1,917 3,320 2,135ADBuildingLevel1Extension 553 252 553 232AEBuilding19 515 24 – –AFLectureTheatreComplex 2,059 9,648 1,272 9,812AkorangaLearningCentre 2,677 6,089 2,677 6,126AkorangaAdministrationBuilding 1,129 2,710 1,129 2,741EducationBuilding 817 2,719 817 2,762SportandRecreationCentre 5,930 9,419 5,930 9,481Otherbuildings20 – 4,048 – 2,940Siteimprovementsandinfrastructure – 1,059 – 1,014Workinprogress – 613 – 238total north shore campus 17,000 38,498 15,698 37,481
LAnd And BuiLdings
17 ThegrossareaofCrownownedbuildingsonNorthShoreCampuswasoverstatedin2010.The2011figureincludestheportionofAFLectureTheatre ComplexthatisCrownowned;theremainingportionhasbeencorrectlyallocatedtotheAFLectureTheatreComplexunderAUTownedbuildings18 The2011netbookvaluefor‘Otherbuildings’relatestotherefurbishmentofbuildingsforwhichthegrossfloorareaisincludedunder‘Crownownedbuildings’. The2010netbookvaluefor‘Otherbuildings’onCityCampushasreducedfromwhatwasreportedinthepreviousAnnualReport($17.455million).$2.94 millionisnowshownunder‘Otherbuildings’and$1.01millionisnowshownunder‘Siteimprovementsandinfrastructure’,bothonNorthShoreCampus19 ThegrossareaofAEBuildingwasincorrectlyallocatedto‘Otherbuildings’ontheCityCampusin201020 Thenetbookvaluefor‘Otherbuildings’relatestotherefurbishmentofbuildingsforwhichthegrossfloorareaisincludedunder‘Crownownedbuildings’
2011 annual report 91
2011 2010 net Book NetBook gross Value Gross Value Area m2 $000s Aream2 $000s
Aut owned buildings (continued)
Manukau campus
ManukauCampusbuildings 8,075 18,368 8,075 16,904
Workinprogress – 245 – 361
TotalManukauCampus 8,075 18,613 8,075 17,265
total Aut owned buildings 104,392 285,210 103,605 252,849
total land and buildings 423,862 388,283
Contractualleases(various)21 53,362 46,999
MangereRefugeeCentre 1,312 1,312
university total gross area 190,076 183,201
Less:Nonleasablearea 33,575 31,030
net usable area 156,501 152,171
2011 2010utilised as follows gross taught Area m2 Gross Taught Aream2
usable efts per per Usable EFTSper per Area m2 faculty efts Aream2 Faculty EFTS
faculties
FacultyofAppliedHumanities 15,316 3,554 4.3 15,524 3,816 4.1
FacultyofBusinessandLaw 10,875 4,788 2.3 10,511 4,837 2.2
FacultyofDesignandCreativeTechnologies 35,667 4,692 7.6 34,445 4,777 7.2
FacultyofHealthandEnvironmentalSciences 28,468 4,900 5.8 25,878 4,951 5.2
TeAraPoutama 1,030 219 4.7 1,106 230 4.8
AUTInternationalHouse 1,780 287 6.2 1,658 229 7.2
total faculties 93,136 18,44022 89,122 18,84023
Administration
Administrationservices 33,964 35,596
Carparks 10,712 9,387
Studentaccommodation 15,232 15,759
Indevelopment/vacant24 3,457 2,307
totAL 156,501 152,171
21 Grossareaofcontractualleasesincreasedin2011tomeettheUniversity’sneedformoreofficespacepriortothecompletionoftheWGLearning Precinctin201322 The2011figuredoesnotinclude78EFTSthatarenotassignedtoanyfaculty23 The2010figuredoesnotinclude112EFTSthatarenotassignedtoanyfaculty24 Thegrossusableareaindevelopmentorvacantincreasedin2011duetodevelopmentoftheWGLearningPrecinct
92 2011 annual rep o rt
2011 annual report 93
directory
94 2011 annual rep o rt
Following is a list of the Industry Advisory Committees and their respective Chairs.
fAcuLty of APPLied HuMAnities
CentreforRefugeeEducation Abdirizak Abdi,MinistryofEducation
Education–Career gabrielle riley,ElectriciansIndustryTraining Organisation
Education–EarlyChildhood rosemary searle,AucklandKindergartenAssociation
Education–PasifikaEarlyChildhood dr Mere Kepa,Community
Education–Postgraduate dr Vicki carpenter,TheUniversityofAuckland
Education–Primary Paul engles,StMary’sSchool
Education–Secondary Miranda Makin,AlbanySeniorHighSchool
Education–Tertiary Helen sword,TheUniversityofAuckland Jens Hansen,IndependentEducationResearcher (co-Chairs)
HospitalityandTourism david comery,WaipunaHotelandConferenceCentre
InternationalLanguages James Penn,AsiaNewZealandFoundation
LanguageEducation dr sue gray,TheUniversityofAuckland
SocialSciences Prof charles crothers,AucklandUniversityof Technology
industry AdVisory coMMittees
2011 annual report 95
fAcuLty of Business And LAw
Dean’sAdvisoryBoard Mark Porath,PorathExecutiveSearch
BusinessSchoolIndustryAdvisoryBoard rory walker,Silkroad
fAcuLty of design And creAtiVe tecHnoLogies
CommunicationStudies selwyn Manning,scoop.co.nz(ActingChair)
ComputerandInformationScience Jan Hilder,PanaceaHealthcare
ConstructionManagement dan Ashby,HawkinsConstruction(NZ)Ltd
ElectricalandElectronicEngineering tim otley,TruTestLtd
FashionTechnology Peter Meadowcroft,GlobalTextilesLtd geoff Mertz,Mertz&AssociatesLtd(co-Chairs)
GraphicDesign Kerenza smith,DesignsmithLtd
MathematicalScience rowan robinson,TelecomNewZealand
MechanicalandProductionEngineering rotating chairs
SpatialDesign Mark gascoigne,GascoigneAssociates
VisualArts ron Brownson,AucklandArtGallery
96 2011 annual rep o rt
fAcuLty of HeALtH And enVironMentAL sciences
AdultandChildPsychotherapy Anna Hedley,Privatepractice(ActingChair)
AppliedMentalHealth John cavanagh,MinistryofSocialDevelopment
AppliedSciences Karen de Lacy,AucklandLaboratory
MedicalLaboratoryScience colleen Behr,NewZealandBloodService
Midwifery Anne yates,NewZealandCollegeofMidwives
Nursing Anne fitisemanu,CountiesManukauDistrictHealthBoard
OccupationalTherapy Kim Henneker,Hawke’sBayDistrictHealthBoard
OralHealth Pip Zammit,NorthlandDentalServices
ParamedicandEmergencySpecialities Major Brendon wood,NewZealandDefenceForce
Physiotherapy darren Knight,AccidentCompensationCorporation
Podiatry Leigh shaw,TaurangaHospital
PostgraduatePsychology Associate Professor douglas Boer,UniversityofWaikato
SportandRecreation
Cricket colin Mcgough,AucklandUniversityofTechnology (ActingChair)
Golf colin Mcgough,AucklandUniversityofTechnology (ActingChair)
HealthandPhysicalEducation Karen stimson,AlbanySeniorHighSchool
OutdoorRecreation Lyndsay simpkin,AdventureSpecialities
SportandExerciseScience Andrew Kilding,AucklandUniversityofTechnology
2011 annual report 97
ProfessoriAL stAff
Professors
faculty of Applied Humanities
faculty of Business and Law
faculty of design and creative technologies
faculty of Health and environmental sciences
te Ara Poutama
DrAllanBell
DrJohnBitchener
DrCharlesCrothers
DrPeggyFairbairn-Dunlop
DrNigelHemmington
DrSimonMilne
DrMarkOrams
DrIanShirley
DrMarilynWaring
DrTrishCorner
DrBillDoolin
DrIanEagles
DrPeterEnderwick
DrKeithHooper
DrKateKearins
DrMing-HuaLiu
LouiseLongdin
DrTimMaloney
DrRaymondMarkey(resignedNovember2011)
DrRogerMarshall
DrDerylNorthcott
DrChrisOhms
DrJudithPringle
DrErlingRasmussen
DrFelixTan
DrAlirezaTourani-Rad
DrAdnanAl-Anbuky
DrAhmedAl-Jumaily
DrZhanChen#
DrOlafDiegel
DrAlvisFong
DrSergeiGulyaev
DrJeffreyHunter
DrWelbyIngs#
DrNikolaKasabov
DrBarryKing
DrTek-TjingLie#
DrStephenMacDonell
GaryMersham(resignedOctober2011)
DrAjitNarayanan
DrThomasNeitzert
DrKrishnamacharPrasad
DrJohnRaine
DrDavidRobie#
DrPhilipSallis
DrLeongYap
DrAlbert(Wai)Yeap
DrMaxAbbott
DrJohnBrooks
DrJohnCronin
DrValeryFeigin
DrStephenHenry
DrClareHocking#
DrWillHopkins
DrPatriaHume
DrJaneKoziol-McLain
DrPeterMcNair
DrKathrynMcPherson
DrJanisPaterson
DrKeithRome
DrElaineRush
DrGrantSchofield
DrDavidSeedhouse(resignedOctober2011)
DrTaniaKa’ai
DrPaulMoon
DrJohnMoorfield
DrMuirisO’Laoire
#promotedtoProfessorinOctober2011
98 2011 annual rep o rt
AssociAte Professors
faculty of Applied Humanities
faculty of Business and Law
faculty of design and creative technologies
faculty of Health and environmental sciences
te Ara Poutama
DrAndyBegg
DrLoveChile
DrNestaDevine
DrSharynGrahamDavies
DrMichaelLuck
DrPatStrauss
DrBrettCollins
DrMargaretCraig-Lees(resignedAugust2011)
DrBartFrijns
DrSonjayaGaur
DrMarkGlynn
DrAhsanHabib
DrCandiceHarris*
DrKennethHyde*
DrCoralIngley
DrFelicityLamm
DrRomieLittrell
DrKeithMacky
DrSimonMowatt
DrGailPacheco*
DrAndrewParsons
DrEdwinaPio
DrPeimingWang
DrWilliamWang
DrDonaldWebber(resignedJuly2011)
DrNevanWright
DrChristopherBraddock
DrJilingCao
DrTonyClear*
DrPaulCowpertwait
NancydeFreitas
DrTinaEngels-Schwarzpaul
DrMartinHirst(resignedJuly2011)
DrWayneHope
DrLoulinHuang
DrMarkJackson
DrFrancesJoseph
DrSergiyKlymchuk
DrTomMoir
DrSigridNorris
DrAukjeThomassen
AndyThomson
DrJohnTookey
DrCharlesWalker
DrDavidWilson
DrAndreaAlfaro
DrStephenAppel
DrMarkBoocock
DrSimeonCairns
DrGeoffDickson
DrLynneGiddings
DrWayneHing
DrMarionJones
DrJustinKeogh(resignedAugust2011)
DrPaulaKersten
DrAndrewKilding
DrAntoinetteMcCallin
DrSteveO’Shea
DrDuncanReid
DrJohnF.Smith
DrLizSmythe
DrDeniseTaylor
DrKeithTudor
DrAlainVandal
DrDeniseWilson
DrOwenYoung
DrPareKeiha
*promotedtoAssociateProfessorinOctober2011
2011 annual report 99
reseArcH institutes
fAcuLty of APPLied HuMAnities
InstituteofCulture,Discourse Director:Professor Allan BellandCommunication
InstituteofPublicPolicy Director:david wilson(toJune2011) ActingDirector:Associate Professor Love chile (fromJuly2011)
NewZealandTourismResearchInstitute Director:Professor simon Milne
fAcuLty of Business And LAw
NewZealandWorkand Director: Professor ray Markey(toNovember2011)LabourMarketInstitute ActingDirector:Professor erling rasmussen (fromNovember2011)
fAcuLty of design And creAtiVe tecHnoLogies
CreativeIndustriesResearchInstitute Director:Professor olaf diegel
EngineeringResearchandInnovationCluster Director:Professor thomas neitzert
InstituteofBiomedicalTechnologies Director:Professor Ahmed Al-Jumaily
InstituteforRadioAstronomy Director:Professor sergei gulyaevandSpaceResearch
KnowledgeEngineeringand Director:Professor nikola KasabovDiscoveryResearchInstitute
fAcuLty of HeALtH And enVironMentAL sciences
BiotechnologyResearchInstitute Director:Professor stephen Henry
EarthandOceanicSciencesResearchInstitute Director:Associate Professor steve o’shea
HealthandRehabilitationResearchCentre Director:Professor Peter Mcnair
SportsPerformanceResearchInstitute Director:Professor John cronin NewZealand
NationalInstituteforPublicHealth Directors:Professor Max Abbott andMentalHealthResearch Professor Janis Paterson
NationalInstituteforStrokeand Director:Professor Valery feiginAppliedNeurosciences
te ArA PoutAMA
TeIpukarea:theNationalMäori Director:Professor tania Ka’aiLanguageInstitute
100 2011 annual rep o rt
2011 annual report 101
Key fActs And figures
102 2011 annual rep o rt
Key fActs And figuresALL efts
efts 2011 2011 2010 2009 Budget Actual Actual Actual
DomesticMinistryfundedEFTS 15,861 14,942 15,391 14,767
OnshoreInternationalPhDEFTS 57 109 93 58
InternationalpostgraduateresearchMOE 8 6 5 8
funded efts25 15,926 15,057 15,489 14,833
DomesticRGAEFTS 68 217 161 151
InternationalEFTS26 2,261 2,369 2,445 2,257
OtherinternationalEFTS 333 492 530 453
NonEFTS 93 96 98 80
total programme efts 18,681 18,231 18,723 17,774
AUTInternationalHouse 170 287 229 289
total efts 18,851 18,518 18,952 18,063
total number of students 26,243 27,141 26,002
efts By quALificAtion tyPe
2011 2010 2009
funded efts
Postgraduate 1,735 12% 1,759 11% 1,557 11%
Bachelordegreeand 11,345 75% 11,034 72% 10,118 68%
graduateprogramme
Diplomaandcertificate 1,975 13% 2,691 17% 3,129 21%
Notcategorised 2 <1% 5 <1% 29 <1%
total funded efts 15,057 100% 15,489 100% 14,833 100%
international efts
Postgraduate 427 18% 476 19% 379 17%
Bachelordegreeand 1,675 71% 1,641 67% 1,494 66%
graduateprogramme
Diplomaandcertificate 267 11% 328 13% 384 17%
total international efts 2,369 100% 2,445 99% 2,257 100%
25 FundedEFTSareallEFTSreceivingStudentAchievementComponent(SAC)funding.TheyincludeonshoreinternationalPhDstudentsandinternational studentsenrolledinresearchmasterscourses26 NotincludingRevenueGeneratingActivity(RGA)orSpecialPurposeFunding(SPF)
2011 annual report 103
doMestic Ministry funded students
2011 2010 2009
students by ethnicity27
Asian 5,380 26% 5,692 27% 5,555 27%
Mäori 1,932 9% 2,064 10% 2,038 10%
NewZealandEuropean/Päkehä 8,619 42% 8,903 42% 8,684 42%
Pasifika 2,492 12% 2,538 12% 2,256 11%
Other 1,828 9% 1,865 9% 1,783 9%
Nondeclared 232 1% 236 1% 296 1%
students by mode of study
Full-time 13,912 68% 14,157 66% 13,501 66%
Part-time 6,571 32% 7,141 34% 7,111 34%
students by age
Under25years 12,909 63% 13,172 62% 12,631 61%
25-39years 5,208 25% 5,553 26% 5,329 26%
40+years 2,366 12% 2,573 12% 2,652 13%
students by gender
Female 12,441 61% 13,004 61% 12,806 62%
Male 8,042 39% 8,294 39% 7,806 38%
27 Thefiguresforethnicbreakdownofstudentstotal99%duetorounding28 ThisincludesInternationalstudentsthatareSACfunded.Percentagesfor2010havebeenadjustedtoreflecttheinclusionofSACfundedinternational students
internAtionAL students
Internationalstudentswereenrolledfrom85countries.Thetoptenarelistedbelow.
2011 2011 2010 numbers Percentage Percentage
China 1,140 35% 32%
India 482 15% 19%
SouthKorea 223 7% 8%
SaudiArabia 205 6% 5%
Vietnam 200 6% 5%
Russia 100 3% 3%
Malaysia 97 3% 4%
Taiwan 73 2% 3%
Thailand 56 2% 1%
HongKong 51 2% 2%
Other(75countries) 600 19% 18%
total international students28 3,227
104 2011 annual repo rt
quALificAtions AwArded
2011 2010 2009
Doctorates 40 37 37
Masters 592 593 597
Honours,PostgraduateDiplomasandPostgraduateCertificates 750 810 777
Degrees,GraduateDiplomasandGraduateCertificates 3,458 3,378 4,126
Diplomas 657 849 1,413
Certificates 1,301 1,761 1,097
total qualifications awarded 6,798 7,428 8,047
2011 annual report 105
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106 2011 annual repo rt
stAff
For the year ended 31 December 2011
2011 2010 31
faculties Academic Admin total Academic Admin total
AppliedHumanities 190 69 259 190 58 248
BusinessandLaw 182 54 236 181 49 230
DesignandCreativeTechnologies 269 89 358 256 85 341
HealthandEnvironmentalSciences 339 116 455 313 106 419
TeAraPoutama 21 3 24 19 3 22
total faculty fte 1,001 331 1,332 959 301 1,260
central Administration services
CorporateServices 4 177 181 2 174 176
FinanceandEstates – 122 122 – 117 117
InnovationandEnterprise – 9 9 – 10 10
International 29 21 50 25 20 45
LearningandTeaching 8 11 19 10 10 20
Library – 63 63 – 58 58
MäoriAdvancement 2 1 3 2 1 3
ResearchandDevelopment 7 17 24 6 20 26
UniversityRelations 11 235 246 13 221 234
Vice-Chancellor’sOffice 8 6 14 7 5 12
total central Administration services fte 69 662 731 65 636 701
total university fte 1,070 993 2,063 1,024 937 1,961
31 Thefiguresfor2010havebeenrestatedtoincludecontractualstaffnotpreviouslyreported
2011 annual report 107
108 2011 annual rep o rt
Auckland University of Technology March 2012 Private Bag 92006Auckland 1142 City Campus55 Wellesley Street EastAuckland, New Zealand
Phone: +64 9 921 9999Fax: +64 9 921 9983www.aut.ac.nz
AR-03/2012-350