CONTENTS adopts the following values to underpin and guide our future development and the ......

LETTER OF TRANSMITTAL 2

MISSION AND VALUES 3

VICTORIA UNIVERSITY AT A GLANCE 4

KEY ACHIEVEMENTS IN 2006 5

MESSAGE FROM THE CHANCELLOR 6

VICTORA UNIVERSITY’S VICE-CHANCELLOR 7

OVERVIEW OF UNIVERSITY STRUCTURE 8

COUNCIL STRUCTURE AND MEMBERS 9

OPERATIONAL STRUCTURE 11

EDUCATION AND RESEARCH STRUCTURE 12

TEACHING AND LEARNING STATISTICS 13

STAFFING STATISTICS 34

OCCUPATIONAL HEALTH AND SAFETY 36

FEES AND CHARGES 40

STATEMENT ON RISK MANAGEMENT 42

REPORTING ON UNIVERSITY ASSOCIATES AND COMMERCIAL VENTURES 43

EXPENDITURE OF CONSULTANTS 44

WHISTLEBLOWERS PROTECTION PROCEDURES 45

COUNCIL AND COMMITTEES ATTENDANCE 46

UNIVERSITY REGULATIONS 47

FREEDOM OF INFORMATION REPORTING 49

• Statement of information available on request 50

ADDITIONAL COMPLIANCE DISCLOSURES 51

• Statement of compliance with the building and 51maintenance provisions of the Building Act 1993

• Summary of environmental performance 51

• Grievance and complaint procedures for students and staff 51

• 2006 Student complaints summary 52

• National competition policy 52

• Statement of compliance with ESOS Act. 52

• Indemnity of Council members 52

• Indemnity of senior offi cers 52

• Declarations of interest by Council members 52

• Key Performance Indicators 53 – Strategic Plan KPIs 53 – TAFE KPIs 53 – Auditor General’s Report on TAFE Statement of Performance 56 Management Certifi cate

– TAFE Statement of Performance Management Certifi cate 57

FINANCIAL OVERVIEW 2006 58

VICTORIA UNIVERSITY AND SUBSIDIARIES – FIVE-YEAR FINANCIAL SUMMARY 60

2006 FINANCIAL STATEMENTS INDEX 61

AUDITOR-GENERAL’S REPORT 62

FINANCIAL STATEMENTS 2006 64

STATEMENT BY THE PRINCIPAL ACCOUNTING OFFICER 64

REPORT BY THE MEMBERS OF COUNCIL 66

• Statement by the Chancellor and the Vice-Chancellor and President 65

• Income statement 67

• Balance sheet 68

• Statement changes in equity 69

• Cash fl ow statement 70

• Notes to the fi nancial statements 71

COMPLIANCE INDEX OF DISCLOSURE REQUIREMENTS 2006 113

CONTENTS

NOTE: Victoria University’s VU Achievements 2006 is a companion to the VU Annual Report 2006. VU Achievements 2006 contains a number of disclosures within the State Government of Victoria’s 2006 annual reporting compliance FRD 22A as well as compliance PAEC (December 1997). All other required 2006 compliance disclosures are contained in the VU Annual Report 2006.

LETTER OFTRANSMITTAL

2

MISSION AND VALUES

3

MISSION

The mission of Victoria University is to: transform the lives of individuals and develop the capacities of industry and communities within the western Melbourne region and beyond through the power of vocational and higher education.

VICTORIA UNIVERSITY’S VALUES

VU adopts the following values to underpin and guide our future development and the day-to-day teaching, learning, research and other activities that make us a university.

WE VALUE:

• knowledge, skills and critical and imaginative inquiry for their capacity to transform individuals and the community;

• equality of opportunity for students and staff;

• diversity, for its contribution to creativity and the enrichment of life;

• cooperation as the basis of engagement with local and international communities;

• integrity, respect and transparency in personal and collaborative action; and

• the pursuit of excellence in everything we do.

VU is committed to making these values real for the institution, staff and students.

VICTORIAUNIVERSITYAT A GLANCE

4

OUR HISTORY

• founded in 1916 as Footscray Technical School

• became Footscray Institute of Technology in 1968

• Victoria University of Technology established by an act of State Parliament in 1990

• Victoria University of Technology commenced operation in 1992 following the amalgamation of the Footscray Institute of Technology and Western Institute

• amalgamated with the Western Melbourne Institute of TAFE in 1998

• renamed as Victoria University in 2005

OUR STUDENTS AND STAFF

• 45,298 local and international students studying more than 700 courses in both Technical and Further Education (TAFE) and higher education sectors

• 5594 offshore international students

• 3667 onshore international students

• 45.5% of enrolments by Melbourne western metropolitan residents

• 36.4% of students from a non-English-speaking background

• students and staff of more than 90 nationalities

• almost 3000 full-time equivalent staff

WHERE WE SERVE

• 11 campuses and sites - City Flinders, City King, City Queen (site), Footscray Nicholson, Footscray Park, Melton, Newport, St Albans, Sunbury, Sunshine and Werribee

• offshore programs with 16 institution agreements for study abroad and student exchange with a large number of international institutions (including locations in China, Hong Kong, Malaysia and Bangladesh), vocational and other programs provided in many industry and school sites

• 21 VET in School (VETiS) programs with 2200 secondary school students enrolled from over 100 secondary schools across Melbourne

FACULTIES

• Arts, Education and Human Development

• Business and Law

• Health, Engineering and Science

TAFE SCHOOLS

• Business and Service Industries

• Engineering, Construction and Industrial Skills

• Further Education, Arts and Employment Services

• Human Services, Science and Technology

INSTITUTES

• Institute for Community Engagement and Policy Alternatives

• Institute for Sustainability and Innovation

• Institute for Logistics and Supply Chain Management

• Institute for Health and Diversity

RESEARCH CENTRES

• Centre for International Corporate Governance Research

• Centre for Strategic Economic Studies

• Centre for Ageing, Rehabilitation, Exercise and Sport Science

• Centre for Environmental Safety and Risk Engineering

• Centre for Hospitality and Tourism Research

• Centre for Telecommunication and Microelectronics

GENERAL ENQUIRIES

Phone +61 3 9919 4000

POSTAL ADDRESS

Victoria University

PO Box 14428 Melbourne VIC 8001

www.vu.edu.au

KEY ACHIEVEMENTS IN 2006

5

STUDENTS• VU improved demand and desirability for its TAFE and higher education courses.

• VTAC preferences for both TAFE and higher education courses increased.

• Student Kevin Baker won Australian Apprentice of the Year at the Australian Training Awards.

• Student services and campus life were maintained following the introduction of Voluntary Student Unionism.

• VU opened the fi rst of an innovative series of Learning Commons facilities.

STAFF• VU improved organisational effectiveness and ensured staff performance remained high

through a series of new workplace initiatives, staff renewal, and the implementation of a Staff Performance and Development Plan (SPDP).

• VU approved a new strategy for increasing the number of Indigenous employees at the University.

• Two new Deputy Vice-Chancellors were appointed.

• The Voice It Climate Survey, which provides a measure of staff satisfaction and identifi es broad areas for improvement, was carried out.

COMMUNITY• VU celebrated its 90th birthday with the publication of the book, 90 Years, 90

Legends, an inspirational account of VU’s history told through the profi les of VU’s 90 legends.

• The Access and Success in the West project, which will work to enhance the learning opportunities of young people in the west of Melbourne, was launched.

• VU celebrated its part in the opening of the $1.8 million Visy Cares Youth Hub in Sunshine, an initiative aimed at enhancing young people’s futures.

• The Offi ce for Industry and Community Engagement was opened.

INDUSTRY AND PROFESSIONS• VU affi rmed its commitment to locally relevant and internationally signifi cant research

with a $15 million pledge to priority research projects.

• The fi rst facility of its kind in Australia – the Large Scale Experimental Building-Fire Facility – was launched.

• Our partnership with the Western Bulldogs was strengthened through an agreement, which included Maribyrnong Secondary College and the Victorian Institute of Sport, to plan the State’s fi rst government sports school.

• A $380,000 Smart Water funded project focusing on the removal of colour from recycled water using titanium dioxide was launched.

GOVERNMENTS AND THE PUBLIC• The VU statement of differentiation, Making VU a New School of Thought, was

endorsed, paving the way for VU to uniquely position itself in the higher education market.

• A major fi ve-year audit by the Australian Universities Quality Agency (AUQA) was carried out.

• Robust fi nancial management practices and approaches that provide greater accountability and focus to continued future sustainability were implemented.

6

2006 has been both a year of considerable progress and change for Victoria University.

It was also one in which it proudly embraced its past as the University celebrated its 90th year in operation. As part of the celebrations, a book, 90 Years, 90 Legends, was published which profi led students and staff who had made a signifi cant contribution to the University and its predecessor institutions. Two honorary degrees

were awarded to 90th legends Mr Peter Thomson, Director of Perrett Golf Course Architects, and Mr James Court, volunteer worker for people with disabilities.

The University Council continued to monitor the University’s strategic direction in line with the implementation of the University Strategic Plan 2004 – 2008. Extensive operational plans at departmental level and individual employee work plans, refl ecting annual institutional goals, were integrated throughout the University.

In October, the Council approved a new and unique positioning for Victoria University that will shape its future. The new position draws upon discussions with State and Federal Ministers and the overt need for VU to differentiate itself within the education sector. The new direction will focus on:

• a network of courses centred around twelve industry and community clusters;

• the University continuing to target students from a broad range of academic and socio economic backgrounds; and

• ensuring that VU education and training is student focused and producing work-ready graduates.

The implementation of the new positioning will commence early in 2007.

High on the agenda for the University in 2006 was the issue of quality assurance. Internally, the University completed its second cycle of Quality Improvement Reviews, in which every major department or unit listed its progress and achievements against identifi ed operational goals. Responses from staff were gathered through an externally managed online survey, which provided valuable insight into the University’s activities and management, enabling further improvements and refi nements to be considered.

In 2006, the Council continued to oversee and promote a viable fi nancial situation for the University. This was particularly important in light of the recent downturn in international student numbers. The Council has adopted a cautious and careful approach to the management of University fi nances with careful monitoring through its Resources, and Audit and Risk Committees as well as the Council itself, while at the same time ensuring that funding is prioritised in strategic areas such as campus renewal, infrastructure, campus and course alignment and research development.

Periods of rapid development and challenge inevitably increase the pressures under which all involved in an institution like Victoria University must operate. The change, and the possibility of change, can be disturbing to those affected. On behalf of the Council, I wish to express our recognition and deep appreciation of the commitment of the staff of the University at all levels to securing the future of Victoria University and the enthusiasm with which they have initiated and responded to change and challenge.

Finally, on behalf of the Council I take this opportunity to thank the Vice-Chancellor, Professor Elizabeth Harman, whose leadership capacity and industry has been repeatedly displayed again during this year and are refl ected in our University’s strengthening position and standing as an academic institution.

THE HON. JUSTICE FRANK VINCENT AO QC

Chancellor

MESSAGE FROM THE CHANCELLOR

7

Professor Elizabeth Harman is the Vice-Chancellor and President of Victoria University. In 2006, the Vice-Chancellor led a series of new initiatives, strengthening VU’s position in the education sector. They included:

• the launch of fi ve bold commitments that reposition VU within a crowded education sector as A New School of Thought;

• the implementation of a staff renewal program leading to a more balanced staffi ng profi le.;

• the strengthening of external relationships with community, industry and professional groups both locally and abroad;

• a successful external audit of the University undertaken by the Australian Universities Quality Agency;

• a celebration of the 90th anniversary of the founding of Victoria University as Footscray Technical School in 1916; and

• a commitment of $15 million over fi ve years for priority research projects as a lynchpin of the University’s resolute determination to strengthen research.

VICTORIA UNIVERSITY’SVICE-CHANCELLOR

8

ORIGINS

COUNCIL

Victoria University of Technology was established by legislation of the Victorian Parliament, the Victoria University of Technology Act 1990. Victoria University’s predecessor institutions date from 1916. Today, Victoria University is one of the largest of the fi ve Australian universities that combine higher education and TAFE. The relevant minister until 28 November 2006 was the Hon. Lynne Kosky, Minister for Education and Training. The relevant minister from 29 November 2006 was The Hon. Jacinta Allan, Minister for Skills, Education Services and Employment.

The Council is the governing authority of the University and has the direction and superintendence of the University. The Council has established a number of standing committees to assist it in its work. They are:

• Chancellor’s Committee;

• Audit and Risk Committee;

• Resources Committee;

• Strategy Committee; and

• Nominations Committee.

Membership of these standing committees consists primarily of members of Council. During the calendar year 2006, Council met six times. In addition, it held two weekend retreats. The standing committees generally met on a monthly or bimonthly basis.

There is one statutory Board, the Education and Research Board, that is required by the Act or subordinate legislation to provide advice to Council. The Education and Research Board met on ten occasions.

OBJECTSThe objects of the University as provided by the University Act include:

• development of an institution with excellence in teaching, training, research and scholarship, with particular emphasis on technological development and applications of knowledge;

• provision of high-quality educational, research, residential, social, recreational, sporting and other facilities;

• promotion, advancement and transmission of knowledge and its practical application by research and other means; the dissemination by various means of the outcomes of research and the commercial exploitation of the results of that research;

• provision of a wide range of programs and courses of study in post-secondary education, including courses of instruction or training relevant to a trade or other skilled occupation, and facilitation of articulation between programs;

• participation in commercial ventures and activities;

• conduct of teaching, research, consultancy and development activities within and outside Australia;

• fostering of the general welfare and development of all enrolled students;

• conferring of prescribed degrees and the granting of prescribed diplomas, certifi cates and other awards;

• offering of opportunities for development and further training to teaching and other staff of the University;

• development and provision of educational, cultural, professional, technical and vocational services to the community and, in particular, the fostering of participation in post-secondary education for persons living or working in the western metropolitan region of Melbourne;

• provision of programs and services in ways that refl ect principles of equity and social justice;

• development and carrying on of a university providing such appropriate and accessible academic and other programs, courses of study and research activity as the Council considers necessary for the attainment of the foregoing within Victoria and elsewhere; and

• promotion of critical inquiry within the University and general community.

OVERVIEWOF UNIVERSITYSTRUCTURE

9

COUNCILSTRUCTURE ANDMEMBERS

AUDIT AND RISK COMMITTEE

CHANCELLOR’S COMMITTEE

NOMINATIONS COMMITTEE

RESOURCES COMMITTEE

COUNCIL

COUNCIL MEMBERS

PERSONAL DETAILS CATEGORY OF PROFESSION FIRST APPOINTED MOST RECENT MEMBERSHIP TO COUNCIL APPOINTMENT

The Hon. Justice Frank Vincent, AO QC Chancellor Supreme Court Judge, Court of Appeal 01.01.01 01.07.05 Supreme Court of Victoria

Commissioner Dianne Foggo Appointed by Council Deputy Chancellor; Commissioner, 01.01.99 19.04.06DipTching, DipPhysEd, GradDipMulticulturalEdMelb Australian Industrial Relations Commission

Professor Elizabeth Harman BA, MAAuck, PhDMcM, FIPAA, FAIM Ex Offi cio Vice-Chancellor; President, Victoria University 01.10.03 01.10.03

Ms Trish McCluskey BAEd Auck Ex Offi cio Chair, Education and Research Board 01.12.05 13.12.06

Associate Professor Michael Hamel-Green Ex Offi cio Deputy Chair, Education and Research Board 01.12.05 13.12.06BA Melb, MA Melb, PhD La Trobe

Mr Michael Zaar Elected by staff (general) Student Administration, 01.01.06 01.01.06

Mr Kevin Baker Elected by staff (TAFE) Information Technology Department 26.10.06 26.10.06

Ms Gabriella Pretto Elected by staff (TAFE) Information Technology Department 01.05.99 (ceased membership 4 August 2006)GradDipCompEdMelb, GradDipREAustCath, BADipEdMonash, MEdMelb

Dr James Doughney BBus(Econ) GIAE, PhDVicMelb Elected by staff (higher education) Senior Lecturer, Applied Economics 01.01.06 01.01.06

Mr Lambros Tapinos Elected by students Student, Victoria University 01.01.06 01.01.06

Mr Jeremy Kelly Elected by students Student, Victoria University 01.01.06 01.01.06

EDUCATION AND

RESEARCH B0ARD

10

COUNCIL MEMBERS

PERSONAL DETAILS CATEGORY OF PROFESSION FIRST APPOINTED MOST RECENT MEMBERSHIP TO COUNCIL APPOINTMENT

Mr John O’Rourke BCommMelb, GradDipFinRMIT Governor-in-Council Principal of the Plenary Group 16.02.05 16.02.05

Ms Maria Tarrant BAEco, GradDipIndRel, MCOMMelb Governor-in-Council Director Policy, Business Council of Australia 28.10.04 28.10.04

Mr Doug Thomas Governor-in-Council Retired 1994; formerly Secretary, 04.04.95 01.01.04PSM, ADIPAccChisholmIT, CPARMIT Department of Finance

Mrs Afshan Mantoo Governor-in-Council Legal Executive, Victorian State Manager, 18.04.06 18.04.06 Muslim Aid Australia

Ms Margaret Haggart Governor-in-Council Opera singer 28.10.04 16.02.05

Mr Ken Latta Governor-in-Council Executive Director, Victoria Police 02.03.98 28.06.05BSc(Hons)Melb, GradDipEdAdminDeakin, DipAgnScLongernon, MBA

Mr Michael White Ministerial appointee Director of Satewide Outcomes for Children, 23.08.00 Resigned Offi ce for Children, Department of 06.02.06 Human Services

Professor Richard Teese BAMonash, PhDMonash Appointed by Council Director, Centre for Post-Compulsory 24.04.06 24.04.06 Education and Lifelong Learning University of Melbourne

Mr George Buckland DipAppGeol, GradDipMgmt, MBARMIT Appointed by Council Manager, Minerals and Petroleum Tenements, 06.03.95 01.01.04 Department of Primary Industries

Dr Ian Gilmour BscBirmingham, PhDBirmingham Appointed by Council Senior company executive, Orica 01.01.05 01.01.05

Dr Richard Gould Appointed by Council Executive Director, 09.11.04 01.01.06DipTechMgmtUTS, MBAAGSM, PhDRMIT, QPMR,FAMI, FAICD International Market Selection

Mr Ken Loughnan AO DipAccRMIT, FCPA, FAIM, FAICD Appointed by Council Chairman, the Skilled Group 04.08.03 01.01.04

COUNCIL OBSERVERS CATEGORY OF MEMBERSHIP FIRST APPOINTED MOST RECENT TO COUNCIL APPOINTMENT

Mr Arnold Mayfi eld MAICD, AAIM, FCPA An observer representing the Melba Memorial Conservatorium of Music, Victoria University 23.08.04 N/A

COUNCIL STRUCTURE AND MEMBERS CONTINUED

11

OPERATIONALSTRUCTURE

INSTITUTIONAL SERVICES

RESEARCH AND REGION EDUCATION PROGRAMS EDUCATION SERVICES CAPITAL AND MANAGEMENT

SERVICES

VICE-CHANCELLOR AND PRESIDENT PROFESSOR

ELIZABETH HARMAN

COUNCIL

PRO VICE-CHANCELLORAND DIRECTOR

GOVERNANCE, POLICY AND PLANNING SERVICES

MR ROB BROWN

DEPUTY VICE-CHANCELLOR PROFESSOR

JIM MIENCZAKOWSKI(INTERIM)

SENIOR DEPUTY VICE-CHANCELLOR AND

DIRECTOR TAFEPROFESSOR

JOHN MCCALLUM

SENIOR DEPUTY VICE-CHANCELLOR

PROFESSOR RICHARD CARTER

DEPUTY VICE-CHANCELLORMR JON HICKMAN

UNIVERSITY GENERAL COUNSELAND DIRECTOR LEGAL SERVICES

DIRECTOROFFICE FOR INDUSTRY AND COMMUNITY ENGAGEMENT

PRO VICE-CHANCELLORINTERNATIONAL

PRO VICE-CHANCELLOR STUDENTS AND DIRECTOR STUDENT SERVICES

DIRECTORFINANCE

COUNCIL SECRETARY DIRECTOROFFICE FOR RESEARCH

PRO VICE-CHANCELLOREDUCATION, STRATEGY AND ENTERPRISE

PRO VICE-CHANCELLOR TEACHING AND LEARNING SUPPORT

DIRECTORFACILITIES

GENERAL MANAGERGOVERNANCE AND POLICY BRANCH

DIRECTOROFFICE FOR POST GRADUATE RESEARCH

EXECUTIVE DEANFACULTY OF ARTS, EDUCATION AND HUMAN DEVELOPMENT

UNIVERSITY LIBRARIANLIBRARY/LEARNING COMMONS

DIRECTORHUMAN RESOURCES

GENERAL MANAGERQUALITY, INFORMATION AND PLANNING BRANCH

DIRECTORINSTITUTE FOR LOGISTICS AND SUPPLY CHAIN MANAGEMENT

EXECUTIVE DEANFACULTY OF BUSINESS AND LAW

DIRECTOR MARKETING AND COMMUNICATIONS

DIRECTORINSTITUTE FOR SUSTAINABILITY AND INNOVATION

EXECUTIVE DEANFACULTY OF HEALTH, ENGINEERING AND SCIENCE

DIRECTOR DEVELOPMENT

DIRECTORINSTITUTE FOR COMMUNITY ENGAGEMENT AND POLICY ALTERNATIVES

ASSOCIATE DIRECTORSCHOOL OF BUSINESS AND SERVICE INDUSTRIES

DIRECTOR INFORMATION TECHNOLOGY

DIRECTORINSTITUTE FOR HEALTH AND DIVERSITY

ASSOCIATE DIRECTORSCHOOL OF ENGINEERING, CONSTRUCTION AND INDUSTRIAL SKILLS

ASSOCIATE DIRECTORSCHOOL OF FURTHER EDUCATION, ARTS AND EMPLOYMENT

ASSOCIATE DIRECTORSCHOOL OF HUMAN SERVICES, SCIENCE AND TECHNOLOGY

12

EDUCATION AND RESEARCHSTRUCTURE

COUNCIL

EXECUTIVE DEANS

SCHOOL OF BUSINESS, AND SERVICE INDUSTRIES

SCHOOL OF ENGINEERING, CONSTRUCTION AND INDUSTRIAL SKILLS

SCHOOL OF FURTHER EDUCATION, ARTS AND EMPLOYMENT SERVICES

SCHOOL OF HUMAN SERVICES, SCIENCE AND TECHNOLOGY

FACULTY OF ARTS, EDUCATION ANDHUMAN DEVELOPMENT

FACULTY OF BUSINESS AND LAW

FACULTY OF HEALTH, ENGINEERING AND SCIENCE

VICE–CHANCELLORAND PRESIDENT

DEPUTY VICE–CHANCELLOR

(EDUCATION PROGRAMS) AND DIRECTOR TAFE

ASSOCIATE DIRECTORS

EDUCATION AND

RESEARCH B0ARD

13

TEACHING ANDLEARNINGSTATISTICSSTUDENT ENROLMENTS 2004–06

STUDENT LOAD

2005 2006

No. of Reportable Students

Reportable SCHReportable

EFTSLNo. of Reportable

StudentsReportable SCH

Reportable EFTSL

% Difference

TAFE 26,342 8,719,294 12,110.1 25,093 8,845,263 12,285.1 1.42%

HIGHER ED 20,780 10,675,166 14,826.6 20,205 10,382,093 14,419.6 -2.82%

TOTALS 47,122 19,394,460 26,936.7 45,298 19,227,356 26,704.7 -1.40%

TAFE overall delivery increased by 1.4% – higher education delivery dropped by 2.82% (Figures used to calculate variation were Student Contact Hours for TAFE and Equivalent Full Time Student Load for higher education.)

TAFE Student Numbers continue to drop in 2006 (compared to 2005) decreasing by 5% but activity/load has increased. Higher education student numbers decreased by 2.8%. (The decrease in TAFE student numbers can also be attributed to the fact that short course enrolments were not included in the 2006 data.)

STUDENT ENROLMENTS

TOTAL HIGHER ED TAFE

2004 47,249 20,229 42.8% 27,020 57.2%

2005 47,122 20,780 44.1% 26,342 55.9%

2006 45,298 20,205 44.6% 25,093 55.4%

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WESTERN METROPOLITAN RESIDENTS 2006 (REPORTABLE STUDENTS)

2006 WESTERN METROPOLITAN RESIDENTS (REPORTABLE STUDENTS)

WESTERN MELBOURNE REGION INDICATOR TOTAL VU HIGHER ED TAFE

OTHER REGIONS 14,077 31.1% 6906 34.2% 7171 28.6%

OVERSEAS 8866 19.6% 5293 26.2% 3573 14.2%

UNKNOWN 1750 3.9% 1658 8.2% 92 0.4%

WESTERN REGION OF MELBOURNE 20,605 45.5% 6348 31.4% 14,257 56.8%

TOTAL 45,298 100.0% 20,205 100.0% 25,093 100.0%

TEACHING AND LEARNING STATISTICS CONTINUED

15

STUDENT ENROLMENTS BY FACULTY HIGHER ED (COURSE ENROLMENTS)

2004 2005 2006

ARTS, EDUCATION AND HUMAN DEVELOPMENT 4802 23.74% 5162 24.84% 5343 26.44%

BUSINESS AND LAW 9426 46.60% 10,154 48.86% 9830 48.65%

HEALTH, ENGINEERING AND SCIENCE 5528 27.33% 5033 24.22% 4636 22.94%

MUSIC AND OTHER 473 2.34% 431 2.07% 396 1.96%

TOTAL COURSE ENROLMENTS 20,229 100.00% 20,780 100.0% 20,205 100.0%

STUDENT ENROLMENTS BY FACULTY


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STUDENT ENROLMENTS BY FACULTY TAFE (COURSE ENROLMENTS)

2004 2005 2006

BUSINESS AND SERVICE INDUSTRIES 10,709 31.64% 10,749 33.36% 9066 29.46%

ENGINEERING, CONSTRUCTION AND INDUSTRIAL SKILLS 7764 22.94% 7997 24.82% 7601 24.70%

FURTHER EDUCATION, ARTS AND EMPLOYMENT SERVICES 5607 16.57% 5076 15.76% 6918 22.48%

HUMAN SERVICES, SCIENCE AND TECHNOLOGY 6182 18.26% 6011 18.66% 6314 20.52%

TEACHER AND LEARNING SUPPORT 3585 10.59% 2385 7.40% 768 2.50%

LOGISTICS 102 0.33%

TOTAL COURSE ENROLMENTS 33,847 100.00% 32,218 100.00% 30,769 100.00%


17

HIGHER ED (DELIVERY EFTSL)

2004 2005 2006

ARTS, EDUCATION AND HUMAN DEVELOPMENT 3634.3 25.41% 3926.7 26.48% 4171.7 28.93%

BUSINESS AND LAW 6592.9 46.09% 7059.6 47.61% 6599.8 45.77%

HEALTH, ENGINEERING AND SCIENCE 3901.7 27.28% 3691.6 24.90% 3489.7 24.20%

MUSIC AND OTHER 174.4 1.22% 148.8 1.00% 158.4 1.10%

TOTAL DELIVERY 14,303.3 100.00% 14,826.6 100.00% 14,419.6 100.00%


18

TAFE (DELIVERY STUDENT CONTACT HOURS)

2004 2005 2006

BUSINESS AND SERVICE INDUSTRIES 2,604,750 28.98% 2,929,962 33.60% 2,959,575 33.46%

ENGINEERING, CONSTRUCTION AND INDUSTRIAL SKILLS 1,823,325 20.29% 1,768,620 20.28% 1,719,516 19.44%

FURTHER EDUCATION, ARTS AND EMPLOYMENT SERVICES 1,500,298 16.69% 1,511,068 17.33% 1,819,557 20.57%

HUMAN SERVICES, SCIENCE AND TECHNOLOGY 2,210,635 24.60% 2,113,204 24.24% 2,110,535 23.86%

TEACHER AND LEARNING SUPPORT 848,565 9.44% 396,440 4.55% 212,690 2.40%

LOGISTICS 23,390 0.26%

DELIVERY STUDENT CONTACT HOURS 8,987,573 100.00% 8,719,294 100.00% 8,845,263 100.00%


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GENDER DISTRIBUTION 2005–06

MALE 49.8%

FEMALE 50.2%

GENDER DISTRIBUTION 2006

MALE 50.9%

FEMALE 49.1%

GENDER DISTRIBUTION 2005

GENDER DISTRIBUTION

2005 2006

TOTAL % TAFE Higher Ed Total % TAFE Higher Ed

FEMALE 23,125 49.1% 12,346 10,779 22,740 50.2% 11,942 10,798

MALE 23,997 50.9% 13,996 10,001 22,558 49.8% 13,151 9407

TOTAL 47,122 100.0% 26,342 20,780 45,298 100.0% 25,093 20,205


INDIGENOUS STUDENTS 2005–06

Note: Indigenous students are self identifi ed.

INDIGENOUS

2005 2006

TOTAL % TAFE Higher Ed Total % TAFE Higher Ed

FEMALE 53 51.0% 40 13 53 39.0% 41 12

MALE 51 49.0% 35 16 83 61.0% 70 13

TOTAL 104 100.0% 75 29 136 100.0% 111 25

STUDENTS WITH A DISABILITY 2006STUDENTS WITH A DISABILITY 2.6%

STUDENTS WITH A DISABILITY 2006

2006 STUDENTS WITH DISABILITY

HIGHER ED 353

TAFE 804

TOTAL 1157

Note: Students with a disability are self identifi ed. This represents 2.6% of total students.


20

21

NON–ENGLISH-SPEAKING BACKGROUND (NESB) STUDENTS 2004–06

NON–ENGLISH-SPEAKING

2004 LOTE IDENTIFIER TOTAL % HIGHER ED % TAFE %

NON–ENGLISH-SPEAKING 15,924 33.7% 8076 39.9% 7848 29.0%

SPEAKS ENGLISH ONLY 20,076 42.5% 9111 45.0% 10,965 40.6%

UNKNOWN 11,249 23.8% 3042 15.0% 8207 30.4%

TOTAL 47,249 100.0% 20,229 100.0% 27,020 100.0%

2005 NON–ENGLISH-SPEAKING 16,556 35.1% 8538 41.1% 8018 30.4%

SPEAKS ENGLISH ONLY 18,774 39.8% 8086 38.9% 10,688 40.6%

UNKNOWN 11,792 25.0% 4156 20.0% 7636 29.0%

TOTAL 47,122 100.0% 20,780 100.0% 26,342 100.0%

2006 NON–ENGLISH-SPEAKING 16,490 36.4% 7665 37.9% 8825 35.2%

SPEAKS ENGLISH ONLY 17,394 38.4% 7577 37.5% 9817 39.1%

UNKNOWN 11,414 25.2% 4974 24.6% 6440 25.7%

TOTAL 45,298 100.0% 20,216 100.0% 25,082 100.0%


22

COURSE LEVELS 2004–06

STUDY MODE DISTRIBUTION 2004–06

STUDY MODE DISTRIBUTION

2004 2005 2006

FULL-TIME STUDENTS 17,039 36.0% 16,773 18,514 39.9%

PART-TIME STUDENTS 32,320 64.0% 29,962 46,367 60.1%

TOTAL 49,359 100.0% 46,735 64,881 100.0%

COURSE LEVELS

2004 2005 2006

POSTGRADUATE 5549 10.5% 5089 9.8% 4331 9.6%

UNDERGRADUATE 47,140 89.5% 46,807 90.2% 41,013 90.4%

Note: Course level at the highest level includes all TAFE and higher education courses. Students may be undertaking more than one course within calendar year.


23

APPRENTICES/TRAINEES – % TOTAL TAFE STUDENTS ALL FUNDED SOURCES

Apprentices/Trainees Proportion

2004 3483 12.38%

2005 3929 14.43%

2006 4040 15.70%

OTTE MODULE LOAD COMPLETION RATE (MLCR)/COMPARATIVE ANALYLSIS

2005 2006

All Government Funded Training Activity

Government Funded Koorie DeliveryAll Government Funded

Training ActivityGovernment Funded Koorie Delivery

MLCR Pass Load Rate MLCR Pass Load Rate MLCR Pass Load Rate MLCR Pass Load Rate

77.96% 77.02% 82.40% 82.32% 78.74% 78.25% 82.16% 82.13%

MCR Pass Rate MCR Pass Rate MCR Pass Rate MCR Pass Rate

80.43% 79.85% 80.24% 80.14% 80.48% 80.24% 83.73% 83.71%

APPRENTICES/TRAINEES BY GENDER

2004 2005 2006

FEMALE 1019 29.26% 1196 30.44% 1112 27.5%

MALE 2464 70.74% 2733 69.56% 2928 72.5%

TOTAL 3483 100.00% 3929 100.00% 4040 100.00%

APPRENTICES/TRAINEES


Note: The Module Completion Load Rate (MCLR) is calculated as the scheduled hours assessed and passed or satisfactorily completed divided by total scheduled hours reported less hours recorded with credit transfer and continuing studies outcomes.

24

COURSE ENROLMENTS BY CAMPUS

ONSHORE 2006

The following two graphs show the numbers of higher education and TAFE student enrolments at onshore campuses.

COURSE ENROLMENT BY CAMPUS – ONSHORE – HIGHER ED

HIGHER ED

CITY FLINDERS 2264 11.5%

CITY KING 60 0.3%

ECHUCA (SITE) 14 0.1%

FOOTSCRAY PARK 10,348 52.7%

INTERNET (AUSTRALIA) 344 1.8%

MELTON 573 2.9%

CITY QUEEN (SITE) 706 3.6%

ST ALBANS 3549 18.1%

SUNBURY 941 4.8%

SYDNEY-ALPHA BETA (SITE) 27 0.1%

WERRIBEE 804 4.1%

TOTAL 19,630 100.0%


TAFE COURSE ENROLMENT BY CAMPUS – ONSHORE

TAFE

CITY FLINDERS 496 1.8%

CITY KING 2465 9.1%

FLEX ED 625 2.3%

FOOTSCRAY NICHOLSON 5686 21.0%

FOOTSCRAY PARK 232 0.9%

HOPPERS-WERRIBEE 1707 6.3%

INDUSTRY/WORKPLACE 4061 15.0%

INTERNET (AUSTRALIA) 17 0.1%

MELTON 287 1.1%

NEWPORT 2435 9.0%

CITY QUEEN (SITE) 20 0.1%

CITY SOUTH MELBOURNE 916 3.4%

ST ALBANS 2196 8.1%

SUNBURY 892 3.3%

SUNSHINE 3773 13.9%

WERRIBEE 1301 4.8%

TOTAL 27,109 100.0%

25

Note: City South Melbourne Campus closed in June 2006.



26

The two major countries for recruiting international students to Victoria University are China and India. Students coming to VU through our offshore course delivery partnerships are mainly from China and Malaysia. In China, there are approximately 2100 students enrolled in VU TAFE diplomas and approximately 500 students enrolled in VU undergraduate and postgraduate degrees.

When developing offshore course delivery partnerships the priority is for partnerships that lead to students completing their studies at VU in Melbourne. A common model is the ‘two plus two’, where students complete an English language development program and VU TAFE diploma offshore over two years before transferring to Melbourne for a further two years to complete an undergraduate degree.

The University’s International Plan identifi es a transnational strategy that is based on the concept of fewer but stronger partnerships in a more diverse range of markets.

HIGHER ED COURSE ENROLMENT BY CAMPUS – OFFSHORE

HIGHER ED

BANGLADESH - AHC 115 4.0%

CHINA - BJU 148 5.1%

CHINA - CUFE 76 2.6%

CHINA - LIAONING UNI 343 11.9%

CHINA - TIANJIN MEDICA 5 0.2%

CHINA - TIANJIN UNI 32 1.1%

HONG KONG - CHINESE UNI OF HK 249 8.6%

HONG KONG - HKIT 303 10.5%

HONG KONG - SPACE UNI OF HK 67 2.3%

HONG KONG - MEI 16 0.6%

INTERNET (OFFSHORE) 18 0.6%

MALAYSIA - SUNWAY 1283 44.5%

SINGAPORE - INST COMM 71 2.5%

THAILAND - BURAPHA UNI 36 1.2%

THAILAND - KASETSA 73 2.5%

VIETNAM - HANOI UNI OF FS 48 1.7%

TOTAL 2883 100.0%

OFFSHORE 2006

The following two graphs show the numbers of higher education and TAFE student enrolments at VU’s offshore campuses.

%

27

TAFE – COURSE ENROLMENT BY CAMPUS – OFFSHORE

TAFE

CHINA - HENAN 1480 38.7%

CHINA - LIAONING UNI 1498 39.2%

CHINA - SICHUAN UNIV 97 2.5%

CHINA - TIANJIN UNI 474 12.4%

HENAN COLLEGE OF FIN 124 3.2%

INTERNET (OFFSHORE) 6 0.2%

NZ - EDENZ COLLEGE 14 0.4%

SHANDONG JIANZHU UNI 133 3.5%

TOTAL 3826 100.00%


STUDENT HOME RESIDENCE 2005

The two graphs show home residence fi gures for VU’s higher education and TAFE students.

HOME RESIDENCE (NUMBER OF STUDENTS)

2005

TOTAL % HE TAFE

ACT 19 0.04% 8 11

NEW SOUTH WALES 249 0.53% 111 138

NORTHERN TERRITORY 18 0.04% 8 10

QUEENSLAND 180 0.38% 50 130

SOUTH AUSTRALIA 59 0.13% 29 30

TASMANIA 41 0.09% 25 16

VICTORIA 35,738 75.84% 12,545 23,193

WESTERN AUSTRALIA 73 0.15% 32 41

OVERSEAS 9127 19.37% 6468 2659

UNKNOWN 1618 3.43% 1504 114

TOTAL 47,122 100.00% 20,780 26,342

28

STUDENT HOME RESIDENCE 2006

The two graphs show home residence fi gures for VU’s higher education and TAFE students.

HOME RESIDENCE (NUMBER OF STUDENTS)

2006

TOTAL % HE TAFE

ACT 30 0.07% 15 15

NEW SOUTH WALES 278 0.61% 110 168

NORTHERN TERRITORY 10 0.02% 7 3

QUEENSLAND 95 0.21% 32 63

SOUTH AUSTRALIA 38 0.08% 21 17

TASMANIA 28 0.06% 19 9

VICTORIA 34,122 75.33% 12,979 21,143

WESTERN AUSTRALIA 47 0.10% 37 10

OVERSEAS 8876 19.59% 5303 3573

UNKNOWN 1774 3.92% 1682 92

TOTAL 45,298 100.00% 20,205 25,093


29

2005 9127 (19.4%)2006 8876 (19.6%)

HOME RESIDENCE OVERSEAS

020

0040

0060

0080

0010

000

2005

2006

HOME RESIDENCE OVERSEAS

2005 2006

OVERSEAS 9127 19.4% 8876 19.6%

INTERNATIONAL STUDENTS

2004 2005 2006

TOTAL HE TAFE TOTAL HE TAFE TOTAL HE TAFE

OFFSHORE 3722 2347 1375 5065 3149 1916 5594 2736 2858

ONSHORE 4667 3793 874 4428 3621 807 3667 2892 775

TOTAL 8389 6140 2249 9493 6770 2723 9261 5628 3633


30

2006 – PERCENTAGE INTERNATIONAL STUDENTS ONSHORE/OFFSHORE

TOTAL HIGHER ED TAFE

OFFSHORE 5594 60.4% 2736 48.6% 2858 78.7%

ONSHORE 3667 39.6% 2892 51.4% 775 21.3%

TOTAL 9261 100.0% 5628 100.0% 3633 100.0%


HIGHER ED - INTERNATIONAL STUDENT QUALIFICATIONS OFFSHORE

2006

BACHELOR 2134 77.7%

HIGHER DEGREE - COURSEWORK 515 18.8%

HIGHER DEGREE - RESEARCH 36 1.3%

NON AWARD 10 0.4%

OTHER POSTGRADUATE 50 1.8%

TOTAL 2745 100.0%

Note: Students may be undertaking more than one course within calendar year.

%

31

INTERNATIONAL STUDENT QUALIFICATIONS 2006

HIGHER ED - INTERNATIONAL STUDENT QUALIFICATIONS ONSHORE

2006

BACHELOR 1551 53.0%

ENABLING 8 0.3%



NON AWARD 203 6.9%


TOTAL 2926 100.0%



TAFE - INTERNATIONAL STUDENT QUALIFICATIONS OFFSHORE

2006

ADVANCED DIPLOMA 240 6.3%

CERTIFICATE II 717 18.8%

CERTIFICATE III 1176 30.8%

DIPLOMA 1687 44.2%

TOTAL 3820 100.0%Note: Students may be undertaking more than one course within calendar year.

32


TAFE - INTERNATIONAL STUDENT QUALIFICATIONS ONSHORE

2006


AQF - DIPLOMA 71 8.4%



CERTIFICATE IV 33 3.9%

DIPLOMA 161 19.1%

TOTAL 845 100.0%Note: Students may be undertaking more than one course within calendar year.

HIGHER ED STUDENT QUALIFICATIONS – NON-INTERNATIONAL

2006

BACHELOR 13,756 76.1%

ENABLING 212 1.2%



NON AWARD 532 2.9%


TOTAL 18,072 100.00%


NON-INTERNATIONAL STUDENT QUALIFICATIONS – 2006

33


TAFE STUDENT QUALIFICATIONS – NON-INTERNATIONAL

2006


AQF - DIPLOMA 991 4.0%

AQF - SENIOR SECONDARY 285 1.1%

BACHELORS DEGREE 40 0.2%

CERTIFICATE 13 0.1%

CERTIFICATE I 1724 6.9%



CERTIFICATE IV 4625 18.6%

DIPLOMA 2986 12.0%

GRADUATE CERTIFICATE 178 0.7%

NON AWARD 289 1.2%

STATEMENT OF ATTAINMENT 1667 6.7%

TOTALS 24,882 100.0%

34

STAFFINGSTATISTICS

This table identifi es all staff employment modes for 2006.

*EFT: the equivalent full-time calculation of all staff.

STAFFING STATISTICS AT 31 DECEMBER 2006 – ONGOING AND FIXED TERM

YEAR MALE FEMALE TOTAL EFT

TAFE TEACHING 20062005

288300

246263

534563

484.33512.20

ACADEMICS 20062005

357364

239233

596597

557.10557.00

GENERAL 20062005

338348

811787

11491135

1035.751020.90

SENIOR MANAGEMENT 20062005

1514

912

2426

24.0026.00

TOTAL 20062005

9981026

13051295

23032321

2101.202116.20

COMPARISON 2005–2006 -2.7% 0.8% -0.8% -0.7%

This table compares both ongoing and contract staff for 2005 and 2006.

STAFFING STATISTICS AT 31 DECEMBER 2006 – ONGOING, FIXED TERM, SESSIONAL AND CASUAL

STAFF CATEGORYMALE

HEAD COUNTFEMALE

HEAD COUNT TOTAL

HEAD COUNTEFT

TAFE TEACHING Ongoing/Fixed Term Sessional

28887

246169

534256

484.33164.99

ACADEMICS Ongoing/Fixed Term Sessional

35784

23995

596179

557.1180.53

GENERAL Ongoing/Fixed Term Casual

338112

811199

1149311

1035.75116.01

SENIOR MANAGEMENT Ongoing/Fixed Term 15 9 24 24.00

TOTALTOTAL

Ongoing/Fixed Term Sessional

998283

1305463

2303746

2101.18461.53

COMBINED TOTAL 1281 1768 3049 2562.71

35

STAFFING TRENDS

STAFF CATEGORY 2004 2005 2006

TAFE TEACHING ONGOING/FIXED TERM 575 563 534

TAFE TEACHING SESSIONAL 220 264 256

TOTAL TAFE TEACHING 795 827 790

ACADEMICS ONGOING/FIXED TERM 555 597 596

ACADEMICS SESSIONAL 129 142 179

TOTAL ACADEMICS 684 739 775

GENERAL ONGOING/FIXED TERM 1098 1135 1149

GENERAL CASUAL 222 255 311

TOTAL GENERAL 1320 1390 1460

SENIOR MANAGEMENT ONGOING/FIXED TERM 29 26 24

TOTAL STAFF 2828 2982 3049

The total number of staff employed at Victoria University has increased by 7.8% between 2004 and 2006. There has been a small but steady decrease in the number of ongoing and fi xed-term TAFE teaching staff while the number of TAFE sessional staff has seen an increase overall in the last three years. The number of academic ongoing and fi xed-term staff has remained stable over the past two years while the number of academic sessional staff has steadily increased over the three year period. The number of general staff has increased and the number of senior management staff has declined during this period.

This table and graph show staffi ng trends 2004–06.

STAFFING STATISTICS CONTINUED

36

As part of the University’s Strategic Plan 2004–08 key strategy, ‘the provision of a safe workplace and learning environment’, and following periods of extensive consultation, an OHS Improvement Plan (OHSIP) has been approved for implementation across the University. The OHSIP provides for the University to meet the requirements of the OHS Act 2004.

Consistent with the strategy in the OHSIP, an overall policy framework for OHS has been approved. Within the framework there are a number of revised and new policies that provide guidance to managers and staff to ensure legislative compliance and best practice.

The peak policy is the revised OHS Charter which clarifi es both management and employee commitment to OHS best practice and continuous improvement. The other policies include:

• OHS Training Matrix and guideline – New

• Incident Reporting and Investigation Policy and Incident Report Form – Revised

• Inspection, Testing and Tagging of Electrical Equipment Policy – New

• Working Alone or in Isolation Policy – New

• OHS Legislative Compliance Policy and Register – New

• OHS Drugs and Alcohol Policy – Revised

• Occupational Rehabilitation Policy – New

• First Aid Policy – New

• OHS Equipment Safety Management Policy – New

• OHS Safe and Healthy Working Policy – New

• OHS Hazardous Materials Policy – Revised

WORKSAFE UNIVERSITIES CHEMICALS MANAGEMENT PROGRAM

In May 2004, WorkSafe advised Victoria University of an intervention program in universities regarding the safe management of chemicals in laboratories and chemical stores. This resulted from a major Australian university having a serious incident involving chemicals. Victoria University campuses were audited by WorkSafe as part of this intervention program. The status of chemical management across all campuses was reviewed and an action plan was prepared and implemented. Staff of the Human Resources OHS Team worked with staff responsible for chemical storage, handling and management across the University. There has been a signifi cant improvement in compliance with the legislation as well as a marked change in attitudes and behaviours. WorkSafe returned to audit VU in May and June 2006 and this concluded our involvement in the project with no further actions required.

The ChemWatch chemicals management database has been implemented across VU, replacing the InfoSafe system with a much more user friendly and effective system. The ChemWatch chemicals management database will improve the standard of recording of chemical inventories and provide ready access to update chemical safety information in multilingual format across the University for staff and students. Training of key personnel in the system was completed in 2006.

WORKSAFE TAFE PROJECT

In October 2006, WorkSafe notifi ed the University of its intention to conduct compliance inspections of selected TAFE institutes across Victoria. For Victoria University this inspection program commenced on 13 November 2006 and will continue with up to 15 visits over the nine months to July 2007.

OTHER OHS ACHIEVEMENTS

• the development of an in-house OHS course for the education sector for implementation in 2007;

• WorkSafe accredited fi ve-day and one-day refresher OHS courses continued to be conducted for all staff;

• introduction of emergency information presentations for students so that they ‘Know What to Do In Emergency’, while continuing to ensure OHS was an integral focus in all staff induction programs;

• exercising the Emergency Management Team to ensure effective emergency management planning and response;

• communication of plans for responding to an infl uenza pandemic and the preparation of infection control training material for rollout to all staff early in 2007;

• ongoing Emergency Warden training and the conduct of emergency drills at all campuses for 423 new and existing wardens;

• a standard of at least one emergency warden per fl oor per building at all campuses has been achieved; and

• continued provision of Manager Assist and Employee Assistance Programs.

APPLICATION OF EMPLOYMENT AND CONDUCT PRINCIPLES

Victoria University is committed to ensuring that staff are aware of, and adhere to, appropriate practices at all times. VU has developed a range of policies and human resource systems and processes to support this. The strategy for ensuring that sound employment and conduct principles are upheld includes the following initiatives:

• recruitment decisions are determined by merit-based employment processes and are in line with University policies and guidelines covering advertising, shortlisting, interviewing and selection;

• induction content is comprehensive and references key policies including the Staff Code of Conduct;

• the EO Online Training program is available to all staff on the University’s intranet and is supported by face-to-face training workshops; and

• the Staff Performance and Development Plan implemented during 2006 also includes a section on Conduct and Values, directly referencing the University’s Code of Conduct and values.

OCCUPATIONALHEALTH AND SAFETY

NUMBER OF WORKCOVER CLAIMS BY YEAR

CORPORATE SECTOR

HIGHER EDUCATION

TAFE SECTOR TOTAL

2002 27 23 23 73

2003 23 10 27 60

2004 24 13 20 57

2005 19 11 27 57

2006 23 10 18 51

NUMBER OF WORKCOVER CLAIMS BY YEAR

COMPARISON OF CLAIMS COST PHYSICAL AND PSYCHOLOGICAL

PHYSICAL CLAIMS COST PHYSICAL

INSURER’S ESTIMATE PHYSICAL

PSYCHOLOGICAL CLAIMS COST PSYCHOLOGICAL

INSURER’S ESTIMATE PSYCHOLOGICAL

2002 60 $189,923.53 $407,303.53 13 $220,396.14 $252,069.14

2003 47 $238,660.12 $638,623.12 13 $294,098.51 $375,953.51

2004 50 $345,651.29 $1,320,595.29 7 $206,207.62 $294,332.62

2005 47 $241,144.03 $867,805.03 10 $238,187.54 $829,893.54

2006 41 $197,526.53 $1,661,096.03 10 $77,181.68 $822,403.07

COMPARISON OF CLAIMS COST – PHYSICAL AND PSYCHOLOGICAL

WORKCOVER STATISTICS 2006

37

Note: The fi gures presented above are the total of both standard and minor claims.Minor claims are those where the claim cost is below the insurer’s excess while standard claims are those where the claim cost is greater than the insurer’s excess.

OCCUPATIONAL HEALTH AND SAFETY CONTINUED

38

CLAIMS COST – ALL SECTORS

PHYSICAL AND PSYCHOLOGICAL

INSURER’S ESTIMATE

NUMBER OF STANDARD

CLAIMS

AVERAGE COST PER STANDARD

CLAIM

2002 $410,319.67 $659,372.67 44 $9,325

2003 $532,758.63 $1,014,576.63 36 $14,799

2004 $551,858.91 $1,614,927.91 44 $12,542

2005 $479,331.57 $1,697,698.57 34 $14,098

2006 $274,708.21 $2,483,499.10 35 $7,849

WORKCOVER CLAIMS COST TO UNIVERSITY – ALL SECTORS

Note: The insurer’s estimate for standard claims is used in the formula for determining premiums.


39

CLAIMS COST – HIGHER EDUCATION SECTOR

CLAIMS COST INSURER’S ESTIMATE

NUMBER OF STANDARD CLAIMS


CLAIM

2002 $145,057.52 $270,720.52 14 $10,361

2003 $144,154.14 $240,937.14 8 $18,019

2004 $126,119.85 $314,124.85 10 $12,612

2005 $117,937.36 $182,228.36 6 $19,656

2006 $46,603.84 $472,146.68 8 $5,825

CLAIMS COST – TAFE SECTOR

CLAIMS COST INSURER’S ESTI-MATE

NUMBER OF STAN-DARD CLAIMS


CLAIM

2002 $110,279.85 $131,383.85 8 $13,785

2003 $238,125.73 $351,065.73 15 $15,875

2004 $304,087.99 $715,224.99 17 $17,888

2005 $285,373.88 $1,177,004.88 16 $17,836

2006 $129,009.78 $569,727.47 11 $11,728

CLAIMS COST – CORPORATE SECTOR

CLAIMS COST INSURER’S ESTIMATE

NUMBER OF STANDARD CLAIMS


CLAIM

2002 $154,982.30 $257,268.30 22 $7,045

2003 $150,478.76 $422,573.76 13 $11,575

2004 $121,651.07 $585,578.07 17 $7,156

2005 $76,020.33 $338,465.33 12 $6,335

2006 $99,094.59 $1,441,624.95 16 $6,193


Effective from 1 January 2005, the Commonwealth Government amended higher education fee payments for higher education providers. As part of these changes, the Government gave providers the opportunity to deregulate Commonwealth supported student contributions (formerly known as Higher Education Contributions), allowed full-fee undergraduate courses, and introduced a national priority student contribution band for nursing and education students.

As a consequence, VU increased student contribution fees by 25% for higher education students who began their studies in 2006. Pre-2005 and 2005 continuing students were exempt from any fee increase.

Student contribution amounts are based on the number of units of study (subjects) undertaken, their differential student contribution band (except for students who commenced their studies prior to 1997) and equivalent full-time study load (EFTSL) value. Units of study are divided into four bands.

As a result of State Government changes, TAFE fees were capped over a 12-month period from the earliest course commencement date.

TUITION FEE(payable per student year)

HIGHER EDUCATION PRE-2005 FROM 2005

Band 1 $3920 $4899

Band 2 $5583 $6979

Band 3 $6535 $8170

National priority $3920 $3920

TAFE

Full time: $839 (maximum)

Concession: $52

GENERAL SERVICE FEE(payable per student year)

A General Service Fee (GSF) is calculated for higher education students (semester 1 and 2, 2006) on the basis of a charge of $2.60 per 0.01 effective full-time student load (EFTSL), with the addition of a $40.00 building levy fee.

The GSF is calculated for TAFE students on the basis of a charge of $0.361 per student contact hour, with the addition of a $40.00 building levy fee. The GSF and building levy fi gures for different classes of students are tabled.

HIGHER EDUCATION

Full time (1.0 EFTSL): $260

Part time (0.5 EFTSL): $130

TAFE

Full time: $260 (maximum)

Concession: $18

FEES AND CHARGES

40

VICTORIA UNIVERSITY AND SUBSIDIARIES

STATEMENT OF RECEIPTS AND PAYMENTS OF THE GENERAL SERVICE FEE FOR THE YEAR ENDED 31 DECEMBER 2006

NOTE2006

$ 2005

$

REVENUE

General Service Fees (including Building Levy) 1 4,219,696 4,326,691

GSF and Building Levy Contribution from full fee paying students 2 911,178 1,031,713

Income from trading activities 3 81,881 483,984

Other Miscellaneous Income (funding from other sources) 269,118 -

Total Income 5,481,873 5,842,388

EXPENSES

Staff Cost 2,519,063 2,856,282

Media and Communication 114,825 280,404

Insurance 12,155 55,487

Professional Services 9,682 67,239

Legal Fees 1,322 200

Health and Safety 25,405 51,127

Orientation Week Expenses 18,240 96,576

Audio Visual Equipment 17,361 40,756

Student Activities and Excursions 309,219 474,866

Other Academic Support Expenses 623,753 680,356

Other Miscellaneous Expenses - 272,407

Total Expenses 3,651,025 4,875,699

NET SURPLUS 4 1,830,848 966,689

Under the terms of the Amendments to the Tertiary Education Act 1993, enacted in 2000, monies collected from students by way of General Service Fee may only be spent on facilities, services or activities of direct benefi t to the University or students of the University. This statement shows the manner in which the income collected was distributed, including the provision of libraries and reading rooms, childcare, sports and recreation, counselling, housing and employment and other student support services that were of direct benefi t to the University or to the students of the University.

Victoria University did not make any payments from compulsory non-academic fees to a student organisation.

NOTES: (1) Includes General Service Fee and Building Levy income collected from undergraduate students. (2) Includes General Service Fee and Building Levy income collected from onshore Australian and overseas fee-paying students. (3) External income is generated predominantly from sport programs and student activities. (4) Surpluses generated are used to fund prior year operational losses and transferred into reserve to fund future capital projects. In 2006, $800,000 (2005, $810,629)

collected through the Building Levy was transferred to reserves to fund future capital projects. The balance of the surplus was transferred to fund prior period operational losses from General Service Fee funded areas.

41

FEES AND CHARGES CONTINUED

42

STATEMENT ONRISK MANAGEMENT

RISKS FOR ASSOCIATES AND COMMERCIAL VENTURES

ASSOCIATE/COMMERCIAL VENTURE PRINCIPAL OBJECTS LEVEL OF FINANCIAL RISK LEVEL OF REPUTATION RISK

Victoria University of Technology (Singapore) Pte Ltd

Provide educational services Low Low

Victoria University Foundation Provide support for educational services Low Low

Victoria University Foundation Ltd To act as trustee of the Victoria University Foundation Low Low

Victoria University Enterprises Pty Ltd Provide educational services Low (did not trade in 2006) Low

Victoria University International Pty Ltd

Victoria University - AFIC College Ltd

Provide educational services

Procure the provision of courses to students in an environment that is consistent with Islamic culture.

Low (did not trade in 2006)

Low (did not trade in 2006)

Low

Low

Risk management is an integral part of sound corporate governance practice. It encompasses the identifi cation and assessment of risks, the adoption of appropriate risk mitigation strategies to effectively manage risks, and ensures Victoria University is proactively working towards a robust risk management framework.

Victoria University has implemented policies and procedures to ensure a culture of risk management is in place and integrated as part of the University’s strategic planning cycle. The University’s risk management strategy includes:

• the ongoing development and implementation of a University-wide risk management plan;

• regular reporting and monitoring on the implementation of action plans developed to mitigate risks identifi ed;

• overview by the University’s Audit and Risk Committee and management committees to ensure robust risk management practices University-wide;

• classifying the University’s high-level risks in alignment with the University’s strategic objectives; and

• alignment of internal audit activities to provide targeted assurance over specifi c risks identifi ed through VU’s risk management plan.

The University’s overall risk management strategy in relation to its associates and commercial ventures is as follows:

• regular reporting to various governance committees;

• year-end fi nancial audits;

• the employment of qualifi ed personnel; and

• business case proposal.

A summary of the extent and nature of the risk for these associates and commercial ventures is outlined, as indicated in the table below.

43

REPORTING ON UNIVERSITYASSOCIATES AND COMMERCIAL VENTURES

The University does not have any associates or other commercial ventures that would warrant separate disclosure under the Victorian Government response to the Review of University Governance regulations. The details of the University’s subsidiary companies are as follows:

INCOME STATEMENT

Name Principal Activities

Domicile Ownership Interest

Total Revenue 2006

Total Revenue 2005

Total Expenditure 2006

Total Expenditure 2005

Tax/Extra Ord Items 2006

Tax/Extra Ord Items 2005

Operating Result 2006

Operating Result 2005

Contribution to Uni operating results 2006

Contribution to Uni operating results 2005

% $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Victoria University Foundation Ltd

trustee for the trust

Australia 100% - - - - - - - -

Victoria University Foundation Trust*

Fund raising for VU

Australia 100% 377 1,380 163 116 - - 214 1,264 214 1,264

Victoria University Enterprises Pty Ltd

Dormant Australia 100% 2 - - - 1 - 2 - 2 -


Hub for Singapore activities

Singapore 100% 148 368 138 177 (7) 7 17 184 17 184

Victoria University International Pty Ltd

Dormant Australia 100% - - - - - - - - - -

Victoria University – AFIC College Ltd

Dormant Australia 50% - - - - - - - - - -

Total – University Associates and commercial ventures

526 1,748 301 293 (6) 7 231 1,448 231 1,448

BALANCE SHEET

Name Working Capital 2006

Working Capital 2005

Physical Assets 2006

Physical Assets 2005

Total Assets 2006

Total Assets 2005

Internal Borrowings 2006

Internal Borrowings 2005

External Borrowings 2006

External Borrowings 2005

Total Liabilities 2006

Total Liabilities 2005

Equity 2006 Equity 2005

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Victoria University Foundation Ltd.

- - - - - - - - - - - - - -

Victoria University Foundation Trust*

2,542 2,329 25 25 2,589 2,356 - - - - 22 2 2,567 2,354

Victoria University Enterprises Pty Ltd**

1 - - - 1 - - - - - - - 1 -


20 3 - - 169 16 - - - - 149 13 20 3

Victoria University International Pty Ltd***

- - - - - - - - - - - - - -

Victoria University – AFIC College Ltd

- - - - - - - - - - - - - -

Total – University Associates and commercial ventures

2,563 2,334 25 25 2,759 2,372 - - - - 171 15 2,588 2,357

* Victoria University Foundation Ltd, a company limited by guarantee acts as trustee of Victoria University Foundation.

** Victoria University Enterprise Pty Ltd has shareholdings in three research spin-off companies, which are valued at nominal value of $1. Hence, the total asset value at 31 December 2006 is $3.

*** Company has $2 share capital, which is represented in its cash assets.

CONSULTANTS’ EXPENDITURE GREATER AND LESS THAN $100,000

FOR THE YEAR ENDED 31 DECEMBER 2006

(a) Consultants costing less than $100,000 Number of engagements Cost $’000

Payments to consultants 190 2,870

(b) Consultants costing more than $100,000 Description Cost $’000

Blomquist & Wark Architects Pty. Ltd. Architectural Consultants 106

Payne Pattenden Architects Pty. Ltd. Architectural Consultants 113

Fish Payne Pattenden Viney Pty. Ltd. Architectural Consultants 130

Agility Consulting Pty. Ltd. Budget Framework Review 156

Hyder Consulting Pty. Ltd. Building Services Engineering Consultants 158

Gartner Australia Pty. Ltd. Information Technology Services External Review 179

John Wardle Pty. Ltd. Architectural Consultants 192

1,034

TOTAL CONSULTANTS 197 3,904

44

EXPENDITUREOF CONSULTANTS

Victoria University is committed to the aims and objectives of the Whistleblowers Protection Act 2001. It does not tolerate improper conduct by its offi cers and staff, nor the taking of reprisals against those who come forward to disclose such conduct.

The University will take all reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making the disclosure. It is conscious of the rights of persons against whom allegations might be made and has a policy to afford the subject natural justice.

Victoria University’s Whistleblower Protection Procedures establish a system for reporting disclosures of improper conduct or detrimental action by employees and other public offi cers. These procedures are available at www.vu.edu.au/GovernancePolicy. The system enables such disclosures to be made to Victoria University’s Whistleblower Hotline or to the Protected Disclosure Co-ordinator. In addition to staff or students, members of the general public may make disclosures.

Victoria University’s Whistleblower Hotline may be contacted on 1800 288 86. The Protected Disclosure Co-ordinator, Dr Steven Stern, may be contacted on +61 3 9919 4008. Potential whistleblowers may also contact the Ombudsman on +61 3 9613 6222.

The Ombudsman recommended in 2006 that the University review its system for reporting disclosures.

In 2006, there were twelve disclosures purportedly made under the Act. All of these disclosures were assessed not to be protected disclosures and are considered resolved. No disclosures were referred to the Ombudsman by Victoria University in 2006 for determination as to whether they were public interest disclosures. As a general summary, the overall reason why these disclosures were assessed to be outside the Act was that they were more in the nature of feedback and complaints, rather than disclosures of corrupt or other serious improper conduct governed by the Act.

Several sources independently made disclosures in 2005 relating to a matter that had been assessed to be protected disclosures and referred then by Victoria University to the Ombudsman for a determination of whether there was a public interest disclosure. The Ombudsman determined in 2006 that there was a public interest disclosure relating to this matter covered by those protected disclosures and consequently instituted a public interest investigation into the matter that he referred to the University for undertaking. The University has completed its investigation and provided the results of its investigation to the Ombudsman and the Minister. While none of the particulars of each allegation were substantiated, the investigation concluded that there was the necessary substance underlying the overall allegations. Consequently, the University terminated the employment of a staff member and revised its administrative procedures to prevent any recurrence.

With another disclosure initially made in 2004 that the Ombudsman had agreed was not a protected disclosure, the Ombudsman subsequently received further information which, in 2006, led to the implementation of a public interest investigation into certain aspects of this disclosure that were referred to the University for investigation. The outcome of this investigation, which found the allegations not to be substantiated, is presently with the Ombudsman.

There was a disclosure in 2006 that was initially made to the Ombudsman outside the Act, but was subsequently brought within the Act. A public interest investigation was instituted and referred to the University to undertake towards the end of 2006.

During 2006, there were no disclosed matters (a matter determined by the Ombudsman to be a public interest disclosure) referred by Victoria University to the Ombudsman to investigate. No investigations were taken over by the Ombudsman from Victoria University and the University is not aware of any requests made to the Ombudsman under section 74 of the Act for the Ombudsman to investigate disclosed matters. Victoria University has not declined to investigate a disclosed matter.

WHISTLEBLOWERS PROTECTION PROCEDURES

45

46

COUNCIL

MEMBER TOTAL NO. ELIGIBLE TO ATTENDThe Hon. F Vincent AO QC 7 8 Commissioner D Foggo 8 8Professor E Harman 8 8Mr K Baker 2 2Mr G Buckland 8 8 Dr J Doughney 7 8Dr I Gilmour 8 8 Dr R Gould 8 8 Ms M Haggart 6 8 A/P M Hamel-Green 5 8Mr J Kelly 7 8Mr K Latta PSM 8 8 Mr K Loughnan AO 6 8 Mrs A Mantoo 3 7Ms T McCluskey 8 8Mr J O’Rourke 8 8 Ms G Pretto 1 4Mr L Tapinos 8 8 Ms M Tarrant 8 8 Professor R Teese 1 7Mr D Thomas PSM 8 8 Mr M Zaar 7 8

CHANCELLOR’S COMMITTEE

MEMBER TOTAL NO. ELIGIBLE TO ATTEND

The Hon. F Vincent AO QC 7 7Commissioner D Foggo 6 7Professor E Harman 6 7A/P M Hamel-Green 5 7Mr G Buckland 6 7Ms T McCluskey 6 7Mr K Latta PSM 4 7Mr K Loughnan AO 5 7Mr L Tapinos 0 2

AUDIT AND RISK COMMITTEE


Mr K Latta PSM 5 5Dr I Gilmour 5 5Dr R Gould 4 4Mr T Greenwood 5 5Ms A Hassett 3 5Mr A Mayfi eld 5 5Mr J Watson 5 5

RESOURCES COMMITTEE


Mr G Buckland 9 10Dr J Doughney 4 7Professor E Harman 10 10Ms T McCluskey 6 7Mr J O’Rourke 9 10Ms M Tarrant 9 10Mr D Thomas PSM 10 10

STRATEGY COMMITTEE


The Hon. F Vincent AO QC 4 5Commissioner D Foggo 5 5Ms M Haggart 5 5Mr M Hamel-Green 3 4Professor E Harman 3 4Mr J Kelly 2 4Mr K Loughnan AO 3 5Ms A Mantoo 1 3Ms G Pretto 0 3Professor R Teese 1 4Mr M Zaar 2 3

NOMINATIONS COMMITTEE

MEMBERS

The Hon. Justice Frank Vincent AO QC Commissioner Dianne FoggoProfessor Elizabeth Harman Mr George BucklandMr Ken Latta Mr Kenneth Loughnan AOAssociate Professor Michael Hamel-Green Ms Trish McCluskyMr Lambros Tapinos

COUNCIL AND COMMITTEESATTENDANCE

STATUTES AND REGULATIONS MADE OR AMENDED DURING THE 2006 CALENDAR YEAR

COUNCIL APPROVED THE FOLLOWING LEGISLATION DURING THE PERIOD 1 JANUARY 2006 TO 31 DECEMBER 2006:

Regulation 2.2 – Education and Research Board (Amendment No. 1) (Made by Council on 27 February 2006)

Regulation 2.2 – Education and Research Board (Amendment No. 2) (Made by Council on 28 August 2006)

Regulation 2.2 – Education and Research Board (Amendment No. 3) (Made by Council on 28 August 2006)

Regulation 11.1 – Fees and Charges (Made by Council on 28 August 2006)

Regulation 6.1.1 – Prescribed Details of Coursework Awards Pertaining to the Faculty of Arts (Revocation) (Made by Council on 28 August 2006)

Regulation 6.1.2 – Prescribed Details of Coursework Awards Pertaining to the Faculty of Business and Law (Revocation) (Made by Council on 28 August 2006)

Regulation 6.1.3 – Prescribed Details of Coursework Awards Pertaining to the Faculty of Engineering and Science (Revocation) (Made by Council on 28 August 2006)

Regulation 6.1.5 – Prescribed Details of Coursework Awards Pertaining to the Faculty of Human Development (Revocation) (Made by Council on 28 August 2006)

Regulation 6.1.9 – Prescribed Details of University Awards Relating to Masters Degrees by Research and Doctorates (Revocation) (Made by Council on 28 August 2006)

Regulation 6.1.10 – Prescribed Details of Other Awards of the University (Revocation) (Made by Council on 28 August 2006)

Regulation 6.3 – Assessment and Examination (Made by Council on 11 December 2006)

THE VICE-CHANCELLOR AND PRESIDENT APPROVED (BY DELEGATION) THE FOLLOWING LEGISLATION DURING THE PERIOD 1 JANUARY 2006 TO 31 DECEMBER 2006:

Regulation 11.1.1 – Fees and Charges for 2006 (Amendment No. 2) (Made by the Vice-Chancellor and President on 3 February 2006)

Regulation 11.1.1 – Fees and Charges for 2006 (Amendment No. 3) (Made by the Acting Vice-Chancellor on 15 February 2006)

Regulation 11.1.1 – Fees and Charges for 2006 (Amendment No. 4) (Made by the Vice-Chancellor and President on 3 March 2006)




Regulation 6.1.4 – Amendment No. 183 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Vice-Chancellor and President on 13 March 2006)

Regulation 6.1.4 – Amendment No. 199 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Vice-Chancellor and President on 13 March 2006)





Regulation 11.1.1 – Fees and Charges for 2006 (Amendment No. 12) (Made by the Acting Vice-Chancellor on 10 April 2006)

UNIVERSITYREGULATIONS

47

48

Regulation 11.1.1 – Fees and Charges for 2006 (Amendment No. 13) (Made by the Acting Vice-Chancellor on 10 April 2006)

Regulation 6.1.4 – Amendment No. 201 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Acting Vice-Chancellor on 10 April 2006)

Regulation 11.1.1 – Fees and Charges for 2006 (Amendment No. 14) (Made by the Vice-Chancellor and President on 2 May 2006)

Regulation 6.1.4 – Amendment No. 203 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Vice-Chancellor and President on 6 June 2006)

Regulation 11.1.1 – Fees and Charges for 2006 (Amendment No. 16) (Made by the Acting Vice-Chancellor on 29 June 2006)

Regulation 6.1.4 – Amendment No. 211 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Acting Vice-Chancellor on 22 July 2006)



Regulation 6.1.4 – Amendment No. 210 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Vice-Chancellor and President on 3 August 2006)




Regulation 6.1.4 – Amendment No. 208 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Vice-Chancellor and President on 4 September 2006)

Regulation 6.1.4 – Amendment No. 212 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Vice-Chancellor and President on 4 September 2006)

Regulation 11.1.1 – Fees and Charges for 2006 (Amendment No. 17) (Made by the Acting Vice-Chancellor on 26 September 2006)

Regulation 6.1.4 – Amendment No. 186 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Acting Vice-Chancellor on 27 September 2006)

Regulation 6.1.4 – Amendment No. 214 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Vice-Chancellor and President on 31 October 2006)

Regulation 6.1.4 – Amendment No. 205 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Vice-Chancellor and President on 10 November 2006)

Regulation 6.1.4 – Amendment No. 215 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Vice-Chancellor and President on 10 November 2006)

Regulation 6.1.4 – Amendment No. 218 to Statute 6.1 - Academic Awards, Programs, Courses and Subjects) (Made by the Acting Vice-Chancellor on 14 December 2006)

THE UNIVERSITY’S SENIOR FINANCE OFFICER APPROVED (BY DELEGATION) THE FOLLOWING LEGISLATION DURING THE PERIOD 1 JANUARY 2006 TO 31 DECEMBER 2006:

Regulation 11.1.1 – Fees and Charges for 2006 (Amendment No. 15) (Made by the Executive Director, Finance and Staffi ng on 16 May 2006)

Regulation 11.1.1 – Fees and Charges for 2007 (Made by the Deputy Vice-Chancellor on 27 November 2006)

Regulation 11.1.1 – Fees and Charges for 2007 (Amendment No. 1) (Made by the Deputy Vice-Chancellor on 21 December 2006)

UNIVERSITY REGULATIONS CONTINUED

FREEDOM OFINFORMATION REPORTING

APPLICATION AND COMPLIANCE WITH THE FREEDOM OF INFORMATION ACT 1982

GENERAL STATEMENT

The Freedom of Information Offi cer and the Freedom of Information Co-ordinator located within the Governance and Policy Branch administer applications made under the Freedom of Information Act 1982 (FOI Act). In 2006, the University received seven applications for access to documents under the Act.

Total Number of Applications Made

Access Denied Pending

7 0 1

Request Withdrawn Internal Review Review by Victorian Civil and Administrative Tribunal

1 1 0

DESCRIPTION OF FUNCTIONS AND DECISION-MAKING POWERS OF THE UNIVERSITY

The Victoria University of Technology Act 1990 established the University. The University is described and reference to its objectives are made on page 8. The Council is the governing authority of the University and has the direction and superintendence of the University. The structure of University Council (including a list of its committees) is outlined on page 9. Some limited open access is available to ‘observers’ at Council meetings. Further details can be obtained from the Council Secretary, Governance and Policy Branch, Building K, Footscray Park Campus, Footscray, Phone: +61 3 9919 4023.

The Education and Research Board is responsible to Council for academic oversight of the University’s research, academic programs and courses of study in TAFE and higher education. The Education and Research Board has established a number of standing committees to assist it in this work:

• Courses Committee;

• Education and Research Policy and Planning Committee;

• Higher Education Course Approvals Panel;

• Postgraduate Research Committee;

• Quality Teaching and Learning Committee;

• Research Committee;

• TAFE Course Approvals Panel; and

• Discipline Committee.

Further details concerning the Education and Research Board can be obtained from the Senior Policy Offi cer – Education and Research Board, Governance and Policy Branch, Building K, Footscray Park Campus, Footscray, Phone: +61 3 9919 4415.

DOCUMENTS OF THE UNIVERSITY

In pursuing its objects and mission, Victoria University creates and holds a large range of documents, including agreements, contracts, assessment records, correspondence, minutes and committee papers, reports, policies and procedures, statutes and regulations. These can cover such functions as:

Alumni

Asset management

Curriculum development

Research

Student admissions

Student recruitment

Student services

Teaching and learning

Budgets and fi nance

Community engagement/partnerships

Facilities

Governance

Graduations

Information technology

Planning

Procurement

Staffi ng

Documents are held at Central Administration or at Faculty or School locations. General inquiries related to accessing these documents may be made directly to the offi ce in which these functions occur. The University’s Administrative structure provided on page 11 depicts the major divisions making up the University.

49

50

STATEMENT OF INFORMATION AVAILABLE ON REQUEST

Consistent with the requirements of the Financial Management Act 1994, Victoria University has prepared material on the following items, details of which are available on request:

• statement regarding declarations of pecuniary interest;

• shares held benefi cially by senior offi cers as nominees of a statutory authority or subsidiary;

• publications;

• changes in prices, fees, charges, rates and levies;

• major external reviews;

• major research and development activities;

• overseas visits undertaken;

• occupational health and safety assessments and measures;

• industrial relations issues; and

• major committees sponsored by Victoria University.

Enquiries regarding details of the above should be addressed to:

The Pro Vice-Chancellor (Institutional Services), Mr Rob Brown,

Victoria University

PO Box 14428

Melbourne VIC 8001

Phone: +61 3 9919 4005

The Marketing and Communications Department also produces a range of publications, including the current and previous annual reports, for distribution within and outside the University. These can be viewed at:

www.vu.edu.au/publications

A wide range of information about the University and its operations is also available from the University’s website at www.vu.edu.au. The website includes reference to the annual university calendar; media releases; admissions information; student information; whistleblower references; and the various faculties, schools and divisions making up the University.

LIBRARY ACCESS

The University has 12 libraries that are available for use by members of the general public as well as staff and students. Details concerning locations and opening hours can be found at:

w2.vu.edu.au/library/Contacts/oul.htm

PROCEDURE FOR HANDLING REQUESTS

Preliminary inquiries concerning Freedom of Information requests should be made to the FOI Co-ordinator. Formal requests for access to documents in the University’s possession under the Victorian Freedom of Information Act 1982 (FOI Act) are made in writing to:

Mr Murray Dri , FOI Co-ordinator,

Governance and Policy Branch

Footscray Park Campus (F116)

Victoria University

PO Box 14428

Melbourne VIC 8001

Phone: +61 3 9919 4118

Fax: +61 3 9919 5061

Requests must clearly identify that they are made under the FOI Act and be accompanied by the requisite application fee of $21.50. Fees may be waived or reduced in circumstances of fi nancial hardship. Applications for waiver should be directed, in the fi rst instance, to the FOI Co-ordinator. The charges applicable for processing FOI requests are prescribed in the FOI legislation.

Applicants are notifi ed in writing of the decision on a valid request as soon as possible but within 45 days of the receipt of the application. In accordance with the FOI Act, applicants can seek internal review of primary decisions for access. Offi cers authorised to conduct those reviews are identifi ed in relevant notices to applicants.

FREEDOM OF INFORMATION REPORTING CONTINUED

ADDITIONALCOMPLIANCE DISCLOSURES

STATEMENT OF COMPLIANCE WITH THE BUILDING AND MAINTENANCE PROVISIONS OF THE BUILDING ACT 1993All new buildings and renovations comply with the building and maintenance provisions and requirements of the Building Act 1993. All other buildings comply with the building regulations that existed at the time of construction.

SUMMARY OF ENVIRONMENTAL PERFORMANCEThe University seeks to do much more than simply comply with environmental legislation and regulations. A culture of environmental responsibility is fostered among both staff and students so that sustainability is a prime consideration in all of the University’s activities.

The University has an Environmental Charter which outlines our environmental ideals and objectives. The charter is supported by a more detailed Environmental Management Plan. Continuing improvement is being made each year in reducing the University’s environmental impact. During 2006, the University joined the Greenhouse Challenge as a further means of supporting and expanding our current initiatives.

GRIEVANCE AND COMPLAINT PROCEDURES FOR STUDENTS AND STAFF

STAFF

Both the Human Resources Department and Equity and Social Justice departments of the University play a major role in assisting staff to resolve grievances. Information for staff is available on these departments’ websites.

While grievance procedures for staff vary depending on the nature of the issue, the emphasis is on timely and confi dential resolution as close as possible to the local level and in accordance with principles of natural justice. All managers and staff are responsible for ensuring a safe and productive workplace. They are also responsible for meeting the requirements of their positions and working to their employment contracts within the bounds of legislation, and university policies and procedures.

STUDENTS

The University also has a formal set of Procedures for the Resolution of Student Grievances, available via the website www.vu.edu.au/students. Alternatively, students can contact the Director, Student Services on +61 3 9919 5072. The prime objective of these grievance resolution procedures is to achieve a sound and fair settlement of a grievance in the context of the following principles:

• there shall be a desire by the parties involved to resolve the grievance in good faith;

• there shall be a desire for the amicable resolution of grievances rather than the apportioning of blame;

• grievance resolution procedures shall be conducted in accordance with principles of natural justice and all parties shall be treated equally and fairly;

• at all levels of authority every effort shall be made to resolve grievances as quickly as possible;

• at all levels of authority every effort shall be made to resolve a formal grievance within 13 university working days; and

• all grievances will be received and dealt with in confi dence.

51

52

2006 STUDENT COMPLAINTS SUMMARY

NOTES: 1. The summary information includes formal complaints lodged with the Offi ce of the PVC (Students). 2. ‘Disputes’ includes student issues where there is dispute between a student and a staff member or Faculty/School offi ce. 3. ‘Other’ includes issues relating to Student Village, Disability Access, Scholarships and Library.

NATIONAL COMPETITION POLICY The University has established policies and procedures to comply with its obligations under the Trade Practices Act 1974 and to practice competitive neutrality in relation to its relevant commercial activities. The University provides training and advice on trade practices and competitive neutrality.

STATEMENT OF COMPLIANCE WITH ESOS ACTVictoria University complies with the Education Services for Overseas Students Act 2000, incorporating the National Code of Practice for Registration Authorities and Providers of Education and Training to Overseas Students (The National Code).

Victoria University is a signatory to the Australian Vice-Chancellor’s Committee Provision of Education to International Students Code of Practice and Guidelines for Australian Universities.

INDEMNITY OF COUNCIL MEMBERSUniversity Acts contain provisions concerning the indemnifi cation of Council members by their universities. In VU’s case, the pertinent provisions are set out at section 21 of its Act. Under that provision, VU must indemnify and keep indemnifi ed each member of the Council and any member of a committee constituted by resolution of the Council or by or under a statute or regulation of the University against all actions or claims (whether arising during or after the term of offi ce of that member) in respect of any act or thing done or omitted to be done in good faith in the exercise or purported exercise of any powers or duty conferred or imposed upon the Council or committee or upon any member or members of the Council by or under the Act.

INDEMNITY OF SENIOR OFFICERSThe University has in place insurance that covers all University offi cers for:

1. the legal liability of directors or offi cers of the insured for wrongful acts committed by them on the course of their duties; and

2. the amount the insured organisation is permitted by law to indemnify any of their directors or offi cers for wrongful acts committed by them in the course of their duties.

Note: ‘Offi cers’ includes senior offi cers of the University.

DECLARATIONS OF INTEREST BY COUNCIL MEMBERSAt the beginning of each Council or Council Standing Committee meeting, members of Council and the standing committees are required to declare any interest in relation to the matters being considered by the group at that specifi c meeting.

As a guide, the Council has listed the following as possible areas for confl ict of interest:

• employment by, shareholding in, or directorship of a company dealing with the University;

• membership of a body that is in competition or confl ict with VU;

• membership of other boards;

• outsourcing or restructuring of work sections by VU staff members;

• any matters under discussion that would result in personal fi nancial advantage; and

• in the case of government offi cials, those who are responsible for any aspect of policy or operations which affect a matter under consideration by the University.

Declarations on all of these matters are formally collected from members of Council and retained for reference. The Victoria University Council Code of Conduct, Responsibilities and Protocols also articulate Council members’ responsibilities in relation to confl ict of interest and procedures stemming from a potential confl ict of interest.

PERIODNATURE OF COMPLAINT

ADMISSIONS ENROLMENTS FEES RESULTS DISPUTES OTHER TOTAL

Oct–Dec 2006 2 5 7

July–Sep 2006 1 1 3 2 7

April–Jun 2006 4 2 1 7

Jan–Mar 2006 2 3 3 3 5 16

Total 2006 2 3 8 3 8 13 37

ADDITIONAL COMPLIANCE DISCLOSURES CONTINUED

KEY PERFORMANCE

INDICATORS

STRATEGIC PLAN KEY PERFORMANCE INDICATORS

Table 1 (p.54), showing KPI performance provides an overview of annual performance against the Key Performance Indicators (KPIs) defi ned in the University’s Strategic Plan. It is a consolidated report, compiled from the regular reports on KPIs provided for each stakeholder group to Council during 2006. Wherever possible, relevant external benchmarks are used as comparators for VU’s performance. In some cases, however, data for 2006 is not yet available. A review of comparator institutions and groups is underway and will be implemented for the 2007 consolidated report.

In 2006, existing performance indicators for industry (Industry and the Professions) and for community were replaced by composite indexes. These indexes consist of a series of qualitative statements that can be scored on a scale of 1 to 3. In 2006, targets were initially set at 1 (total of 5); in 2007, the targets will be set at 2 (total of 10), which represents good practice. The implementation of these composite indexes as KPI measures will be reviewed in 2007 as part of the broader review of the University’s KPI Framework.

A new defi nition has been used to measure TAFE demand in 2006. Previously, the percentage change in the top three VTAC preferences was used, which had an internal focus and does not allow a comparison with the sector. Following further analysis of VTAC data during 2006, it was decided to change this defi nition to become more meaningful. Market share for the top three preferences has now been used, and compared to the market share for top three preferences for all TAFE providers.

Table 1 shows a summary of all KPI data reported to Council in 2006. Performance against most KPIs was relatively stable in 2006, although some trends are apparent as indicated below.

1 Graduate outcomes: Higher education graduate employability has increased from 72.8% to 76.9%, improving after a decline in 2005 to a level higher than that in 2004. Graduate satisfaction remains stable from 2005 to 2006.

2 The demand ratio for VU’s higher education courses continues to decline. This ratio measures the number of fi rst preference applications to places available. Interpretation of this indicator, however, needs to occur in the context of total preferences. Since 2000, VU’s fi rst eight preferences for higher education programs have increased by more than 19%, with fi rst preferences increasing over this period by 26.4%.

3 VU’s staff turnover is considerably lower than the university sector (8.55% compared to 16.89% in 2004). However, while the number of Workcover claims at VU is decreasing, lost time and cost of claims is increasing. At VU, a small number of claims involving lengthy absences have contributed to the increase as, given our overall low number of claims, a small number of unusual claims can skew averages for data. An alternative KPI, which is less susceptible to such ‘skewing’ by unusual cases, is being investigated for 2007.

4 Research performance continues to improve, increasing by 8% from 2004 to 2005.

TAFE KEY PERFORMANCE INDICATORSTable 2 (p.55) shows key performance indicators applicable to TAFE operations at VU.

Table 3 (p.55) provides additional detail about the Energy Consumption KPI. The University’s energy base has not remained static, i.e. there has been an increase in fl oor space and TAFE load has increased. In June last year the University started purchasing Green Energy. This ‘value’ will increase, not decrease, as a result, it is not appropriate to expect a “percentage reduction” in Green Power as stated in the KPI (unless that value is determined to be a factor in the reduction of energy consumption).

53

54

TABL

E 1:

Vict

oria

Uni

versi

ty St

rate

gic P

lan:

Key

Per

form

ance

Indi

cato

rs 20

06 C

onso

lidat

ed R

epor

t

KEY P

ERFO

RMAN

CE IN

DICA

TOR

2004

EXTE

RNAL

BE

NCHM

ARK

2005

EXTE

RNAL

BEN

CHMA

RK20

06EX

TERN

AL B

ENCH

MARK

STUD

ENTS

GRAD

UATE

OUT

COME

S: G

RADU

ATE E

MPLO

YABI

LITY

- High

er Ed

ucati

on

74.2

%UW

S 75

.3%

72.8

%UW

S 73

.1%

76.9

%No

t yet

avail

able

- TAF

E 72

.2%

74.9

%82

.8%

GRAD

UATE

COUR

SE SA

TISF

ACTI

ON1

- High

er Ed

ucati

on (C

ourse

Expe

rienc

e Que

stion

naire

- mea

n sco

re)44

.4UW

S 28

.942

.9UW

S 24

.6

42.3

Not y

et av

ailab

le

- TAF

E (Co

urse E

xperi

ence

Que

stion

naire

- mea

n sco

re)49

.655

.354

.2

DEMA

ND

- High

er Ed

ucati

on (p

refere

nces

to pl

anne

d inta

ke)

6.15

5.30

3.

50

- TAF

E (%

VU V

TAC T

op 3

prefe

rence

s of T

AFE O

nly Pr

ovide

rs To

p 3

)12

.2%

12.5

% 12

.5%

12.5

% 11

.5 %

12.5

%

STAF

F

STAF

F RET

ENTI

ON/R

ENEW

AL

- Turn

over

7.6%

15.6

8% al

l unis

8.5%

16.1

8% al

l unis

8.2%

18.3

4% al

l unis

- New

Appo

intme

nts

8.7%

6.1%

8.7%

Staff

satis

factio

n (ba

sed o

n sele

cted t

hree q

uesti

ons i

n the

Voice

It su

rvey,

fi rst r

un in

200

4 an

d rep

orted

in 2

005)

Not

Appli

cable

Not A

pplica

ble69

%Ne

wcas

tle an

d CSU

70%

Seco

nd su

rvey c

ondu

cted i

n Octo

ber 2

006

and t

heref

ore

not r

eport

ed un

til 20

07

Lost

time (

hours

of le

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KEY PERFORMANCE INDICATORS CONTINUED

TABLE 3: Key Performance Indicators applicable to energy consumption

The University’s energy base has not remained static. There has been an increase in fl oor space and the TAFE student load has increased. In June last year the University started purchasing Green Energy. This ‘value’ will increase, not decrease. As a result, it is not appropriate to expect a ‘percentage reduction’ in Green Power as stated in the KPI (unless that value is determined to be a factor in the reduction of energy consumption).

Note: the University does not have LPG or heating oil.

YEAR TAFE EFTSL % ELECTRICITY GAS SPACE INCREASE (M2)

CONSUMPTION (GJ) GREEN (GJ) 7 MONTHS 2006

CONSUMPTION (GJ)

1999 (base year) 43% 34910 34879 254885

2006 46% 50657 2455 44243 288804

Variation up 3% up 45% up 5% up 28% up 13%

TABLE 2: Key Performance Indicators applicable to TAFE operations

IKPI DEFINITION 20066

Module Load Completion Rate Scheduled hours assessed and passed or satisfactorily completed / Total scheduled hours reported less hours recorded with Credit Transfer and continuing studies outcomes.

78.74%

Participation of 15-24 Year olds No. of Students within the age group 14,265


Total Cost per Student Contact Hour (SCH) Total funded expenditure (excl Depreciation) / Total SCH 11.74

Working Capital Ratio Current Assets / Current Liabilities (adjusted for non-current LSL) 2.08

Net Operating Margin Funded Operating Surplus / Total Revenue (excl Capital) 0.02

Revenue per EFT Staff Total Revenue (excl Capital) / Average EFT Staff 120,579.18

Energy Consumption Percentage reduction in energy consumption for Electricity, Gas, LPG, Green Power and Heating Oil See table below

KPI DEFINITION

Student Contact Hours (SCH) Total SCH reported (Includes training activity from all funding sources, Fee-for-service and overseas full fee paying students)

8,845,263


Disability Numbers No. of Students with Disability 803

Aboriginality Numbers No. of Students from a Aboriginal or Torres Strait Island background 111

55

56

AUDITOR GENERAL’S

REPORT

58

FINANCIAL OVERVIEW 2006

INTRODUCTIONVictoria University and its controlled entities (the Group) returned total net operating surpluses of $12.18 million for the year ending 31 December 2006; this represents a 14% ($1.46 million) increase over the 2005 result. VU’s contribution towards the net operating surplus was $11.95 million, while its subsidiary companies generated combined surpluses of $0.23 million.

Table 1, below (Key Financial Data (Group)), shows that group revenue increased steadily over the period 2002 to 2005 with revenue falling by 2% ($5.79 million) to $322.93 million in 2006. Group expenses also fell by 2% ($7.24 million) to $310.76 million in 2006.

The Group experienced a 3% ($19.76 million) drop in the value of its net asset base during 2006; net assets at 31 December 2006 were $584.14 million, the reduction largely a result of a downward revaluation of University land and buildings. University liquidity remained healthy during 2006.

TABLE 1: KEY FINANCIAL DATA (GROUP)

2002$M

2003 $M

2004*$M

2005 $M

2006 $M

Revenue 280.71 291.70 321.82 328.72 322.93

Expenses 260.56 268.62 305.34 318.00 310.76

Operating Surplus 20.15 23.08 16.48 10.72 12.18

Net Assets 549.12 589.08 609.41 603.90 584.14

* 2004 fi gures have been recast due to international accounting standard requirements (AIFRS)

GROUP OPERATING RESULTS FOR PERIOD 2002–2006

REVENUE As indicated above, the group experienced a 2% fall ($5.79 million) in revenue in 2006 compared to 2005, with total revenue generated of $322.93 million.

The decrease was in the main a result of two factors, namely a reduction in the value of VU’s deferred superannuation liabilities (and the resulting reduction in expected government reimbursements to fund the liabilities – an impact of $19.60 million) and secondly, decreases in student fees and charges following falls in onshore full-fee paying international student numbers (an impact of $6.02 million). Offsetting these reductions were increases in funding from both State and Federal Governments. Federal grants and HECS receipts increased 8.4% ($10.79 million) following increases in DEST funded enrolments and HECS premium increases applying to a broader student base. In addition, the University received approximately $1m as Collaboration and Structural Reform Funding. State Government funding increased 7% ($5.28 million); this was largely attributable to capital funding for engineering works at VU’s Sunshine Campus.

Commonwealth Government funding continues to be the main source of funding for the Group, closely followed by Victorian Government Grants, and Fees and Charges as illustrated below:

Note that ‘Other Income’ is comprised of investment, consultancies and contract research (non DEST), HECS-Help upfront student payments, sale of goods, property leases, childcare fees, deferred government superannuation fees and other miscellaneous income.

59

EXPENSESTotal expenses fell by 2% ($7.24 million) to $310.76 million during 2006. A reduction in unfunded superannuation liabilities ($19.60 million) was the main factor contributing to this, partly offset by increases in employee benefi t costs ($13.16 million) resulting from salary increases and payments relating to staff departures. Strategies were also implemented in 2006 to reduce costs in response to the decrease in the international fee revenue. This included tighter controls on recruitment of new and vacant positions.

Employee benefi ts continued to be the largest group expenses, accounting for approximately 65% of total expenses as is illustrated in the chart below:

The main components of ‘Other Expenses’ are scholarships grants and prizes, telecommunications, non-capitalised equipment, travel and staff development, energy costs, inventory used, printing and stationery, consumables, postage, advertising/marketing, legal and professional fees.

Note: employee benefi ts include deferred expenditure relating to unfunded superannuation liabilities.

BUDGET FRAMEWORK REVIEWThe University undertook a complete review of its budget framework during 2006. The scope of the review included an analysis of the current budget model, processes and funding allocations, and whether the current model would best serve VU to position itself in an emerging education environment of increased competition. The review delivered a comprehensive set of recommendations and budget principles that will be gradually implemented during 2007 and 2008.

COMPLIANCE WITH THE HIGHER EDUCATION SUPPORT ACT (HESA)The University has continued to meet the reporting and compliance requirements of the Higher Education Support Act.

REPORT ON KEY PERFORMANCE INDICATORSThe Strategic Plan establishes Key Performance Indicators (KPIs) against which outcomes are monitored and reported as indicators of progress towards the achievement of strategic objectives.

The non-government income ratio (with HECS included as government income) measures the proportion of University revenue generated from non-government income sources as a proportion of total income. There has been little change in this ratio in recent years. Measured against our benchmark competitors (new generation universities – NGUs), the contribution of non-government to government income remains slightly below the benchmark ratio of 38:62 (2005 NGU benchmark); VU’s ratio is 34:66.

The current ratio KPI is a liquidity ratio measuring the University’s ability to meet its short-term fi nancial obligations. A ratio of less than 1.0 is an indication of potential liquidity risk. At 31 December 2006, VU’s current ratio was a healthy 1.69 compared to the external NGU benchmark of 1.81 (2005).

FINANCIAL OVERVIEW CONTINUED

60

FIVE YEAR FINANCIAL SUMMARY 2006 2005 2004 2003 2002

$’000 $’000 $’000 $’000 $’000

CONSOLIDATED INCOME STATEMENT

Income from Continuing Operations Government Sources

Australian Government grants 88,425 84,207 75,528 80,056 73,830

HECS, FEE-HELP (PELS & BOTPLS) 50,204 43,630 40,848 46,395 46,567

Victorian Government grants 78,194 72,911 71,058 66,844 65,637

Non-Government Sources

Fees and charges 69,748 75,768 79,823 72,491 59,721

Other 36,362 52,202 54,564 25,915 25,952

Total revenues 322,933 328,718 321,821 291,701 271,707

Total operating expenses 310,753 318,003 305,342 268,618 260,559

Operating surplus / (defi cit) after tax 12,180 10,715 16,479 23,083 11,148

Other Item (Note 1) - - - - 9,003

Operating result for the year 12,180 10,715 16,479 23,083 20,151

Add accumulated funds at beginning of year 322,117 312,261 301,842 272,843 252,662

Less accounting policy change adjustment - - (6,100) (1,419) -

334,297 322,976 312,221 294,507 272,813

Transfers:

To / (from) reserves (20) (859) 40 7,335 30

ACCUMULATED FUNDS AT END OF YEAR 334,277 322,117 312,261 301,842 272,843

CONSOLIDATED BALANCE SHEET

Current assets 112,106 119,224 96,062 80,634 59,168

Non-current assets 643,914 667,959 675,718 653,710 632,300

Current liabilities 64,902 70,242 35,403 40,604 33,653

Non-current liabilities 106,979 113,041 126,971 104,658 108,697

NET ASSETS 584,139 603,900 609,406 589,082 549,118

Reserves 249,862 281,783 297,145 287,240 276,275

Accumulated funds 334,277 322,117 312,261 301,842 272,843

TOTAL EQUITY 584,139 603,900 609,406 589,082 549,118

Note 1 For the year ended 31 December 2002 and in accordance with AASB 1004 ‘Revenue’, the University changed its accounting policy relating to the treatment of grants in advance received from the Commonwealth Department of Education Science & Training (DEST). In accordance with this policy change, the December 2002 grant paid for the 2003 year was recognised as 2002 revenue. Had this change not occurred, the University would have incurred a Net Operating Surplus of $11.1 million in 2002.

Note 2 The years 2002 - 2003 are prepared under AGAAP, not A-IFRS

VICTORIAUNIVERSITYAND SUBSIDIARIES

61

For the Year Ended 31 December 2006

CONTENTS PageAuditor’s Report 62, 63Certifi cations 64, 65Report by the members of Council 66Financial Report 67 Income statement 67 Balance sheet 68 Statement of changes in equity 69 Cash fl ow statement 70

Note No. Contents of the notes to the fi nancial statements Page 1 Summary of signifi cant accounting policies 71–782 Disaggregated information 79–82 INCOME 3.1 Australian Government fi nancial assistance including HECS-HELP and other Australian Government loan programmes 83, 843.2 State and Local Government fi nancial assistance 843.3 Fees and charges 853.4 Investment income 853.5 Consultancy and contracts 853.6 Other income 86 EXPENSES 874.1 Employee related expenses 874.2 Depreciation and amortisation 884.3 Repairs and maintenance 884.4 Finance costs 884.5 Bad and doubtful debts 884.6 Other expenses 885 INCOME TAX 89 ASSETS 896 Cash and cash equivalents 897 Trade and other receivables 908 Inventories 909 Other fi nancial assets 9110 Other non-fi nancial assets 9111 Non-current assets classifi ed as held for sale 9112 Property, plant and equipment 92–9413 Intangible assets 94 LIABILITIES14 Trade and other payables 9515 Provisions 9516 Other liabilities 95 EQUITY 9617 Reserves and retained surplus 96, 9718 Key Management and Personnel Disclosures 98–10019 Remuneration of Auditors 10120 Contingencies 10121 Commitments 101, 10222 Related parties 10223 Subsidiaries 10324 Events occurring after the balance sheet date 10325 Reconciliation of operating result after income tax to net cash fl ows from operating activities 10426 Financial instruments 105–108

27 Acquittal of Australian Government fi nancial assistance 109–112

FINANCIAL STATEMENT INDEX

AUDITOR GENERAL’S

62

REPORT

64

FINANCIAL STATEMENTS FOR THE YEAR 2006

STATEMENT BY PRINCIPAL ACCOUNTING OFFICER

In my opinion:

a) the fi nancial report of Victoria University and the consolidated entity presents fairly the fi nancial transactions of the University and the consolidated entity during the fi nancial year ended 31 December 2006 and the fi nancial position of its operations for the year ended on that date; and

b) the amount of Australian Government fi nancial assistance expended during the reporting period was for the purpose(s) for which it was intended and Victoria University has complied with applicable legislation, contracts, agreements and programme guidelines in making expenditure; and

c) the fi nancial report has been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRSs), other mandatory professional reporting requirements, the requirements of the Department of Education, Science and Training and the Financial Management Act 1994.

In addition, I am not aware at the date of signing these statements of any circumstances which would render any particulars included in the statements to be misleading or inaccurate and there are reasonable grounds to believe that Victoria University will be able to pay its debts as and when they fall due.

P. Lodhiya

Principal Accounting Offi cer

15 March 2007

65

STATEMENT BY THE CHANCELLOR AND THE VICE-CHANCELLOR AND PRESIDENT

In our opinion:

a) the fi nancial report of Victoria University and the consolidated entity presents fairly the fi nancial transactions of the University and the consolidated entity during the fi nancial year ended 31 December 2006 and the fi nancial position of its operations for the year ended on that date; and

b) the amount of Australian Government fi nancial assistance expended during the reporting period was for the purpose(s) for which it was intended and Victoria University has complied with applicable legislation, contracts, agreements and programme guidelines in making expenditure; and

c) the fi nancial report has been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRSs), other mandatory professional reporting requirements, the requirements of the Department of Education, Science and Training and the Financial Management Act 1994.

In addition, we are not aware at the date of signing these statements of any circumstances which would render any particulars included in the statements to be misleading or inaccurate and there are reasonable grounds to believe that Victoria University will be able to pay its debts as and when they fall due.

The Hon Justice F Vincent AO QC Professor E Harman

Chancellor Vice-Chancellor and President

15 March 2007 15 March 2007

FINANCIAL STATEMENTS FOR THE YEAR 2006

66

The members of the Council present their report on the consolidated entity consisting of Victoria University and the entities it controlled at the end of, or during, the year ended 31 December 2006.

Members and Meetings of MembersA list of Victoria University Council Members during 2006 is on pages 9 and 10 of this report. The numbers of meetings of the members of Victoria University Council and of each board committee held during the year ended 31 December 2006, and the number of meetings attended by each member, are on page 46 of this report.

Principal Activities During the year, the principal continuing activities of the consolidated entity consisted of provision of educational and related services. No signifi cant changes in the nature of the activities of the consolidated entity occurred during the year.

Review of Operations Information on the operations and fi nancial position of the University and the entity is as set out in the fi nancial report.

Signifi cant Changes in the State of Affairs No signifi cant changes occurred in the state of affairs of the entity during the year.

Matters Subsequent to the End of the Financial YearNo matters or circumstances have arisen since the end of the fi nancial year which signifi cantly affected or may signifi cantly affect the operations of the entity, the results of those operations, or the state of affairs of the entity in future fi nancial years.

Likely Developments and Expected Results of Operations No signifi cant developments have arisen since the end of the fi nancial year which signifi cantly affect the results of the operations, or the state of affairs of the entity in future fi nancial years.

Environmental Regulation The University is subject to environmental regulation in respect of its building works. The relevant authorities are provided with regular updates, and to the best of our knowledge, all activities have been undertaken in compliance with the requirements of the planning approvals.

Insurance of Offi cers As provided under the Constitution, the University indemnifi es Council Members and senior offi cers for any loss arising from any claim by reason of any wrongful act committed by them in their capacity as Council Members or offi cer. During the year, the University has paid a premium in respect of a contract insuring its Council Members and senior employees against a liability of this nature. In accordance with normal commercial practices, under the terms of the insurance contract, the nature of the liabilities insured against and the amount of premiums paid are confi dential.

Proceedings on behalf of Victoria University No person has applied for leave of Court to bring proceedings on behalf of the entity or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the entity for all or any part of these proceedings.

This report is made in accordance with a resolution of the members of the Council. Dated at Melbourne the 15th day of March 2007

The Hon Justice F Vincent AO QC Professor E Harman Chancellor Vice-Chancellor and President

REPORT BY THE MEMBERS OF COUNCIL

67

INCOME STATEMENT

INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006

CONSOLIDATED UNIVERSITY

2006 2005 2006 2005

NOTES $’000 $’000 $’000 $’000

INCOME FROM CONTINUING OPERATIONS

Australian Government fi nancial assistance

Australian Government grants 3.1 88,425 84,207 88,425 84,207

HECS-HELP - Australian Government payments 3.1, 27.2 47,421 40,987 47,421 40,987

FEE-HELP 3.1, 27.2 2,783 2,643 2,783 2,643

State and local Government fi nancial assistance 3.2 78,194 72,911 78,194 72,911

HECS-HELP - student payments 6,925 6,329 6,925 6,329

Fees and charges 3.3 69,748 75,768 69,601 75,562

Investment income 3.4 6,519 5,556 6,377 5,491

Royalties, trademarks and licenses 291 50 291 50

Consultancy and contracts 3.5 6,812 6,681 6,812 6,681

Other revenue 3.6 21,251 19,425 21,028 19,241

328,369 314,557 327,857 314,102

Deferred Government Superannuation Contributions (5,436) 14,161 (5,436) 14,161

TOTAL REVENUE FROM CONTINUING OPERATIONS 322,933 328,718 322,421 328,263

EXPENSES FROM CONTINUING OPERATIONS

Employee benefi ts and on costs 4.1 208,352 195,189 208,348 195,185

Depreciation and amortisation 4.2 16,141 15,708 16,141 15,708

Repair and maintenance 4.3 15,015 14,801 15,015 14,801

Finance costs 4.4 - 107 - 107

Bad and doubtful debts 4.5 40 1,156 40 1,158

Other expenses 4.6 76,648 76,874 76,365 77,877

316,196 303,835 315,909 304,836

Deferred Employee Benefi ts for Superannuation (5,436) 14,161 (5,436) 14,161

TOTAL EXPENSES FROM CONTINUING OPERATIONS 310,760 317,996 310,473 318,997

OPERATING RESULT BEFORE INCOME TAX 12,173 10,722 11,948 9,266

Income tax expense 5 (7) 7 - -

OPERATING RESULT AFTER INCOME TAX FOR THE PERIOD 17 (B) 12,180 10,715 11,948 9,266

The above income statement should be read in conjunction with the accompanying notes.

68

BALANCE SHEETBALANCE SHEET AS AT 31 DECEMBER 2006

CONSOLIDATED UNIVERSITY

2006 2005 2006 2005

NOTES $’000 $’000 $’000 $’000

ASSETS Current Assets Cash and cash equivalents 6 89,202 96,605 86,648 94,288

Trade and other receivables 7 14,616 12,345 14,581 12,345

Inventories 8 1,604 1,360 1,604 1,360

Other non-fi nancial assets 10 3,732 3,448 3,732 3,448

109,154 113,758 106,565 111,441Non-current assets classifi ed as held for sale 11 2,952 5,466 2,952 5,466

Total Current Assets 112,106 119,224 109,517 116,907

Non-Current Assets Trade and other receivables 7 101,386 107,199 101,386 107,199

Other fi nancial assets 9 1,199 670 1,349 820

Property, plant and equipment 12 540,583 559,740 540,558 559,715

Intangible assets 13 746 350 746 350

Total Non-Current Assets 643,914 667,959 644,039 668,084

TOTAL ASSETS 756,020 787,183 753,556 784,991

LIABILITIES Current Liabilities

Trade and other payables 14 16,830 21,751 16,804 21,766

Provisions 15 41,694 42,827 41,694 42,827

Other liabilities 16 6,378 5,664 6,378 5,664

Total Current Liabilities 64,902 70,242 64,876 70,257

Non-Current Liabilities Provisions 15 106,906 112,962 106,906 112,962 Other liabilities 16 73 79 73 79

Total Non-Current Liabilities 106,979 113,041 106,979 113,041

TOTAL LIABILITIES 171,881 183,283 171,855 183,298

NET ASSETS 584,139 603,900 581,701 601,693

EQUITY Reserves 17 (A) 249,862 281,783 247,533 279,428

Retained surplus 17 (A) 334,277 322,117 334,168 322,265

TOTAL EQUITY 584,139 603,900 581,701 601,693

The above balance sheet should be read in conjunction with the accompanying notes.

69

STATEMENT CHANGES

IN EQUITY

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2006

CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 NOTES $’000 $’000 $’000 $’000

Total equity at the beginning of the fi nancial year 603,900 609,406 601,693 608,650

- Net loss / gain on revaluation of land and buildings (31,940) 1,729 (31,940) 1,729

- Impairment loss on revalued asset 17 (B) - (17,952) - (17,952)

- Exchange differences on translation of foreign operations 17 (A) (1) 2 - -

Net income recognised directly in equity (31,941) (16,221) (31,940) (16,223)

Operating result for the year 12,180 10,715 11,948 9,266

Total recognised income and expense for the year (19,761) (5,506) (19,992) (6,957)

TOTAL EQUITY AT THE END OF THE FINANCIAL YEAR 17 (A) 584,139 603,900 581,701 601,693

The above statement of changes in equity should be read in conjunction with the accompanying notes.

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2006

CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 NOTES $’000 $’000 $’000 $’000CASH FLOWS FROM OPERATING ACTIVITIES

Australian Government Grants received 135,274 130,206 135,274 130,206

State Government Grants received 78,468 72,808 78,468 72,808

Local Government Grants received 20 - 20 -

HECS-HELP - Student payments 6,925 6,328 6,925 6,328

Receipts from student fees and other customers (inc. of GST) 106,681 110,593 106,324 110,432

Interest received 3.4 6,519 5,556 6,377 5,491

Payments to suppliers and employees (inc. of GST) (314,031) (286,939) (313,763) (287,926)

Interest and other cost of fi nance paid 4.4 - (107) - (107)

Income taxes paid 7 (7) - -

NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES 25 (B) 19,863 38,438 19,625 37,232

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment 12.3 140 1,124 138 1,124

Payments for property, plant and equipment 12.2, 13 (26,872) (15,597) (26,872) (15,597)

Proceeds from sale of other fi nancial assets - 22,427 - 22,430

Payments for other fi nancial assets (528) - (528) -

Net cash (used in) / provided by investing activities (27,260) 7,954 (27,262) 7,957

CASH FLOWS FROM FINANCING ACTIVITIES Repayment of interest bearing liabilities - (4,130) - (4,130)

Repayment of non- interest bearing liabilities (3) (6) (3) (6)

NET CASH (USED IN) / PROVIDED BY FINANCING ACTIVITIES (3) (4,136) (3) (4,136)

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS 25 (A) (7,400) 42,256 (7,640) 41,053

Cash and cash equivalents at the beginning of the fi nancial year 96,605 54,347 94,288 53,235

Effects of exchange rate changes on cash and cash equivalents (3) 2 - -

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 1(i),6, 25 (A) 89,202 96,605 86,648 94,288

NON-CASH FINANCING AND INVESTING ACTIVITIES - - - -

The above cash fl ow statement should be read in conjunction with the accompanying notes.

CASH FLOWSTATEMENT

70

71

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the fi nancial report are set out below. The policies have been consistently applied to all the years presented, unless otherwise stated. The fi nancial report includes separate fi nancial statements for the University as an individual entity and the consolidated entity consisting of the University and its controlled entities.

(A) BASIS OF PREPARATION

This fi nancial report is a general purpose fi nancial report which has been prepared on an accrual basis in accordance with Australian Accounting Standards, AASB Interpretations, the requirements of the Department of Education, Science and Training and other State/Australian Government legislative requirements. Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS).

COMPLIANCE WITH IFRS

The fi nancial statements and notes of Victoria University comply with Australian Accounting Standards, some of which contain requirements specifi c to not-for-profi t entities that are inconsistent with IFRS requirements.

HISTORICAL COST CONVENTION

These fi nancial statements have been prepared on an accrual basis under the historical cost convention, as modifi ed by the revaluation of available-for-sale fi nancial assets, fi nancial assets and liabilities (including derivative instruments) at fair value through profi t or loss, certain classes of property, plant and equipment and investment property.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of fi nancial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the University’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are signifi cant to the fi nancial statements, are disclosed below:

KEY ESTIMATES (1) IMPAIRMENT

The group assesses impairment at each reporting date by evaluating conditions specifi c to the University and to its controlled entities that may lead to the impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. A number of key estimates are incorporated in the value-in-use calculations performed in assessing recoverable amounts.

(2) STATE SUPERANNUATION FUND

AASB 119 Employee Benefi ts requires that the estimated present value of superannuation obligations recognised in the fi nancial statements should be determined as at balance date. These fi nancial statements recognise estimated superannuation obligations in respect of the State Superannuation Fund using an actuarial estimate as at 30 June 2006. As there is no net impact on the balance sheet or income statement from these superannuation obligations (due to recognition of a corresponding receivable), the costs of providing an actuarial assessment at balance date (31 December 2006) outweigh the benefi ts. The University has therefore elected not to obtain an estimate of its superannuation obligations as at balance date. Consequently superannuation obligations (and corresponding receivable) are stated in the fi nancial statements based on estimates prepared 6 months in arrears.

KEY JUDGEMENT (1) ALLOWANCE FOR DOUBTFUL DEBTS

Included in accounts receivable at 31 December 2006 are amounts which have been outstanding beyond the normal trading terms. The likelihood of the recovery of these amounts has been assessed and an estimated allowance made for non recovery of particular amounts outstanding.

(B ) PRINCIPLES OF CONSOLIDATION

“The consolidated fi nancial statements incorporate the assets and liabilities of all controlled entities of the University (‘’parent entity’’) as at 31 December 2006 and the results of all controlled entities for the year then ended. The University and its controlled entities together are referred to in this fi nancial report as the Group or the Consolidated Entity. Controlled entities are all those entities over which the Group has the ability to govern the fi nancial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Controlled entities are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date control ceases.

Inter entity transactions, balances and unrealised gains on transactions between Group entities are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of controlled entities have been changed where necessary to ensure consistency with the policies adopted by the Group.

Refer to note 23 for details on controlled entities.

(C) FOREIGN CURRENCY TRANSLATION

(I) FUNCTIONAL AND PRESENTATION CURRENCY

Items included in the fi nancial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated fi nancial statements are presented in Australian dollars, which is Victoria University’s functional and presentation currency.

(II) TRANSACTIONS AND BALANCES

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.

Exchange differences arising on the translation of non-monetary items are recognised directly in equity, otherwise the exchange difference is recognised in the income statement.

(III) GROUP COMPANIES

The results and fi nancial position of all the Group entities (none of which has the currency of a hyperinfl ationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

- assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;

- income and expenses for each income statement are translated at average exchange rates; and

- all resulting exchange differences are recognised as a separate component of equity.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities are taken to equity.

(D) REVENUE RECOGNITION

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of any taxes paid. Revenue is recognised for the major business activities as follows:

(I) GOVERNMENT GRANTS

Commonwealth and State Government operating grants are recognised at their fair value as income in the period in which they are received when the university obtains control of the rights to receive the grants, it is likely that the economic benefi ts will fl ow to the entity and it can be reliably measured.

(II) OTHER REVENUE

Student fees and charges revenue is recognised by reference to the percentage of services provided. Where student fees and charges revenue has been clearly received in respect of courses or programs to be delivered in the following year, any non-refundable portion of the fees is treated as revenue in the year of receipt and the balance as revenue in advance.

Fee for service revenue is recognised by reference to the percentage completion of each contract, i.e., in the reporting period in which the service is rendered. Where fee for service revenue of a reciprocal nature has been clearly received in respect of programs or services to be delivered in the following year, such amounts are deferred and disclosed as revenue in advance.

Investment income is recognised on a proportional basis taking into account the interest rates applicable to the fi nancial assets.

Revenue from the provision of goods or services is recognised when goods are delivered or services have been rendered.

All other revenues are recognised in the year to which they apply.

(E) INCOME TAX

Victoria University, Victoria University Foundation and Victoria University Foundation Ltd are exempt from income tax pursuant to section 23(e) of the Income Tax Assessment Act 1936, as amended. All other controlled entities are subject to income tax.

(F) LEASES

Leases in which a signifi cant portion of the risks and rewards of ownership are retained by the lessor are classifi ed as operating leases (note 21(A)). Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease. Lease income from operating leases is recognised in income on a straight-line basis over the lease term.

(G) ACQUISITION OF ASSETS

The purchase method of accounting is used to account for all acquisitions of assets regardless of whether equity instruments or other assets are acquired. Cost is measured as the fair value of the assets given plus costs directly attributable to the acquisition.

The Group’s policy is to capitalise non-current physical assets and intangible assets (with the exception of land and works of art) costing $5,000 or more.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 – 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED

72

73

(H) IMPAIRMENT OF ASSETS

Assets that have an indefi nite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifi able cash fl ows (cash generating units).

(I) CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes cash on hand, deposits held at call with fi nancial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignifi cant risk of changes in value.

(J) TRADE RECEIVABLES

Trade receivables are carried at nominal amounts due less any allowance for doubtful debts and are due for settlement no more than 30 days from the date of recognition of debtors.

Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash fl ows, discounted at the effective interest rate. The amount of the provision is recognised in the balance sheet and in the income statement.

(K) INVENTORIES

Annual stock takes of inventories are undertaken at each location. Inventories held for sale are valued at the lower of cost or net realisable value. Cost is determined predominantly on the fi rst-in-fi rst-out basis of valuation.

Costs are assigned to individual items of inventory on the basis of weighted average costs. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale.

(L) NON-CURRENT ASSETS HELD FOR SALE

Non-current assets are classifi ed as held for sale and stated at the lower of their carrying amount and fair value less costs to sell if their carrying amount will be recovered principally through a sale transaction rather than through continuing use.

An impairment loss is recognised for any initial or subsequent write down of the asset to fair value less costs to sell.

A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of derecognition.

Non-current assets are not depreciated or amortised while they are classifi ed as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classifi ed as held for sale continue to be recognised.

Non-current assets classifi ed as held for sale and the assets of a disposal group classifi ed as held for sale are presented separately from the other assets in the balance sheet.

(M) INVESTMENTS AND OTHER FINANCIAL ASSETS

The University classifi es its investments into the following two categories:

- Financial assets at fair value through profi t and loss; and

- loans and receivables

The classifi cation depends on the purpose for which the investments were acquired. Management determines the classifi cation of its investments at initial recognition and re-evaluates this designation at each reporting date.

I) FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

This category has two sub-categories: - fi nancial assets held for trading; and

- designated at fair value through profi t or loss on initial recognition.

A fi nancial asset is classifi ed in this category if acquired principally for the purpose of selling in the short term or if so designated by management. The policy of management is to designate a fi nancial asset if there exists the possibility it will be sold in the short term and the asset is subject to frequent changes in fair value. Assets in this category are classifi ed as current assets if they are either held for trading or are expected to be realised within 12 months of the balance sheet date.

(II) LOANS AND RECEIVABLES

Loans and receivables are non derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active market. They arise when the University provides money, goods or services directly to a debtor with no intention of selling the receivable. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classifi ed as non-current assets. Loans and receivables are included in receivables in the balance sheet.

At each reporting date, the Group assesses whether there is objective evidence that a fi nancial instrument has been impaired.

Impairment losses are recognised in the income statement in ‘other expenses’.

(N) FAIR VALUE ESTIMATION

The fair value of fi nancial assets and fi nancial liabilities have been estimated for recognition and measurement or for disclosure purposes.

The fair value of fi nancial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques. The University uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Techniques, such as estimated discounted cash fl ows, are used to determine fair value for the remaining fi nancial instruments.

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate to their fair values.


74

(O) PROPERTY, PLANT AND EQUIPMENT

Each class of property, plant and equipment is carried at cost or fair values, and where applicable, net of any accumulated depreciation and impairment losses.

Land and buildings are shown at fair value, based on periodic, valuations by external independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. All other property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefi ts associated with the item will fl ow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the fi nancial period in which they are incurred.

Increases in the carrying amounts arising on revaluation of land and buildings are credited to revaluation reserves in equity. Where an increase reverses a decrease previously recognised in profi t or loss, the increase is fi rst recognised in profi t and loss. Decreases that reverse previous increases of the same asset are fi rst charged against revaluation reserves directly in equity to the extent of the remaining reserve attributable to the asset; all other decreases are charged to the income statement.

Land and works of arts are not depreciated. Other assets are depreciated from the date of acquisition or, in respect of buildings under construction, from the time they are made ready for use. Depreciation on these assets is calculated using the straight line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives, as follows:

2006 2005

Buildings 40 years 40 years

Plant and equipment

- Furniture and fi ttings 10 years 10 years

- Computer equipment 4 years 4 years

- Motor vehicles 5 years 5 years

- General equipment 8 - 20 years 8 - 20 years

Library Collections

- Books 10 years 10 years

- Serials 5 years 5 years

- Audio Visual and software 4 years 4 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amounts. These are included in the income statement. When revalued assets are sold, it is Group policy to transfer the amounts included in other reserves in respect of those assets to retained earnings.

Assets other than those that are carried at cost are revalued with suffi cient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value. The Group’s policy is to formally revalue those assets with useful lives of 30 or greater years every six years provided there are no material movements in the in between years. The Group has no assets with useful lives of less than 30 years that would warrant a revaluation. Revaluation increments or decrements arise from differences between an asset’s depreciated cost or deemed cost and fair value.

Last formal revaluation was undertaken in December 2006.


75

(P) INTANGIBLE ASSETS

(I) RESEARCH AND DEVELOPMENT

Expenditure on research activities, undertaken with the prospect of obtaining new scientifi c or technical knowledge and understanding, is recognised in the income statement as an expense when it is incurred.

(II) COMPUTER SOFTWARE

Internal use software is capitalised only when the amount involved is material to the University. Internal use software is recognised at cost and amortised over the useful life of 4 years.

(Q) UNFUNDED SUPERANNUATION

In accordance with the 1998 instructions issued by the Department of Education, Training and Youth Affairs (DETYA) now known as the Department of Education, Science and Training (DEST) the effects of the unfunded superannuation liabilities of the University and its controlled entities were recorded in the income statement and the balance sheet for the fi rst time in 1998. The prior years’ practice had been to disclose liabilities by way of a note to the fi nancial statements.

The unfunded liabilities recorded in the balance sheet under Provisions have been determined by the actuaries and relates to State Superannuation Fund based on the 30 June 2006 valuation date.

An arrangement exists between the Australian Government and the State Government to meet the unfunded liability for the University’s benefi ciaries of the State Superannuation Scheme on an emerging cost basis. This arrangement is evidenced by the State Grants (General Revenue) Amendment Act 1987, Higher Education Funding Act 1988 and subsequent amending legislation. Accordingly the unfunded liabilities have been recognised in the balance sheet under Provisions with a corresponding asset recognised under Receivables. The recognition of both the asset and the liability consequently does not affect the year end net asset position of the University and its controlled entities.

Any unfunded liabilities in respect of TAFE employees who are members of the State Superannuation Scheme controlled by the Victorian Superannuation Board will be recognised by the State Government in its balance sheet.

(R) PAYABLES

These amounts represent liabilities for goods and services provided to the University prior to the end of the fi nancial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(S) BORROWINGS

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement over the period of the borrowings using the effective interest method.

Borrowings are classifi ed as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

(T) BORROWING COSTS

Borrowing costs, including borrowing costs incurred for the construction of any qualifying asset, are recognised as an expense in the period in which they are incurred.

(U) JOINT VENTURES

JOINTLY CONTROLLED OPERATIONS

The proportionate interests in the assets, liabilities and expenses of a jointly controlled operation have been incorporated in the fi nancial statements under the appropriate headings.

(V) PROVISIONS

Provisions for legal claims and service warranties are recognised when the Group has a present legal or constructive obligation as a result of past events; it is more likely than not that an outfl ow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses.


76

(W) EMPLOYEE BENEFITS

Provision is made for benefi ts accruing to employees in respect of wages and salaries, annual leave and long service leave when it is probable that settlement will be required and they are capable of being measured reliably. The calculation of employee benefi ts includes all relevant on-costs and are calculated as follows at reporting date.

(I) WAGES AND SALARIES, AND ANNUAL LEAVE

Liabilities for wages and salaries, and annual leave expected to be settled within 12 months of the reporting date are recognised at their nominal values using the remuneration rate expected to apply at the time of settlement.

(II) LONG SERVICE LEAVE

The liability for long service leave is recognised in the provision for employee benefi ts and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outfl ows.

Regardless of the expected timing of settlement, provisions made in respect of employee benefi ts are classifi ed as a current liability unless there is an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date, in which case it would be classifi ed as a non-current liability. Provisions made for annual leave and unconditional long service leave would be classifi ed as a current liability where the employee has a present entitlement to the benefi t. A non-current liability would include long service leave entitlement accrued for employees with less than 10 years of continuous service.

(III) RETIREMENT BENEFIT OBLIGATIONS

The majority of the employees of the Group are entitled to benefi ts on retirement, disability or death from the Group’s superannuation plan. The Group has a defi ned benefi t and contribution scheme within one of its plans. The defi ned benefi t scheme provides defi ned lump sum benefi ts based on years of service and fi nal average salary. The defi ned contribution scheme receives fi xed contributions from the Group and the Group’s legal or constructive obligation is limited to these contributions.

A liability or asset in respect of one of the defi ned benefi t superannuation plans, State Superannuation Fund, is recognised in the balance sheet, and is measured as the present value of the defi ned benefi t obligation at the reporting date plus unrecognised actuarial gains (less unrecognised actuarial losses) less the fair value of the superannuation fund’s assets at that date and any unrecognised past service cost. The present value of the defi ned benefi t obligation is based on expected future payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outfl ows.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to income over the employees’ expected average remaining working lives.

Past service costs are recognised immediately in income, unless the changes to the superannuation fund are conditional on the employees remaining in service for a specifi ed period of time (the vesting period). In this case, the past service costs are amortised on a straight-line basis over the vesting period.

Contributions to the defi ned contribution fund are recognised as an expense as they become payable.

The University also contributes to UniSuper, an industry superfund dedicated exclusively to Australia’s higher education and research sector, on behalf of its employees.

UNISUPER

UniSuper is a multi employer superannuation fund operated by UniSuper Limited as the Corporate Trustee and administered by UniSuper Management Pty Ltd, a wholly owned subsidiary of UniSuper Limited. The operations of UniSuper are regulated by the Superannuation Industry (Supervision) Act 1993.

(i) UniSuper offers eligible members the choice of two schemes known as the Defi ned Benefi t Division (DBD) (previously referred to as Defi ned Benefi t Plan) or Accumulation Super (2) (previously referred to as Investment Choice Plan) The contribution rate to the schemes is 21% of member’s salary of which the member contributes 7% and the University 14%. From I July 2006, members can elect to reduce the level of member contributions with corresponding reductions in benefi ts.


77

(W) EMPLOYEE BENEFITS (CON’T)

In 2005, UniSuper advised that the Defi ned Benefi t Plan should be disclosed under the multi employer provisions of AASB 119 Employee Benefi ts which allowed for defi ned benefi t obligations to be reported on a defi ned contribution basis with some additional information. AASB 119 Employee Benefi ts states that this is an appropriate solution for a Defi ned Benefi t Plan where the employer does not have access to the information required and there is no reliable basis for allocating the benefi ts, liabilities, assets and costs between employers

As a consequence of changes to the UniSuper Trust Deed in December 2006, UniSuper have advised that the foregoing no longer applies and that both the Defi ned Benefi t Division and Accumulation Super (2) plans are defi ned as Multi Employer Defi ned Contribution Schemes in accordance with AASB 119 Employee Benefi ts.

(ii) UniSuper also offers a cash accumulation productivity scheme known as Accumulation Super (I) (previously referred to as the Award Plus Plan (APP)). University employees have no requirement to contribute to the scheme. The University contributes the equivalent of 3% of base salary in respect of these employees who were members of the Defi ned Benefi t Division or the Accumulation Super (2) Plan. Employees who do not qualify for membership of Defi ned Benefi t Division and Accumulation Super (2) will have a minimum contribution 9% of their annual salary contributed by the University to Accumulation Super (I) prescribed under the Superannuation Guarantee Charge Act/992.

Casual and non-permanent employees who do not qualify for membership of the Defi ned Benefi t Division and Accumulation (2) are eligible for Accumulation Super (I).

As at 30 June 2006 the assets of the DBP in aggregate were estimated to be $958 million ( 30 June 2005: $230 million) in excess of vested benefi ts. The vested benefi ts are benefi ts which are not conditional upon continued membership (or any factor other than leaving the service of the participating institution) and include the value of CPI indexed pensions being provided by the DBP.

As at 30 June 2006 the assets of the DBP in aggregate were estimated to be $1,834 million (30 June 2005: $1,543million) in excess of accrued benefi ts. The accrued benefi ts have been calculated as the present value of expected future benefi t payments to members and CPI indexed pensioners which arise from membership of UniSuper up to the reporting date.

The vested benefi t and accrued benefi t liabilities were determined by the Fund’s actuary Russell Employee Benefi ts using the actuarial demographic assumptions outlined in their report dated 13 July 2006 on the actuarial investigation of the DBP as at 31 December 2005. The fi nancial assumptions used were: VESTED BENEFITS ACCRUED BENEFITS

Gross of tax investment return 7.0% p.a 8.3%p.a

Net of tax investment return 6.5% p.a 7.8%p.a

Consumer Price Index 2.5% p.a 2.5% p.a

Infl ationary salary increases long term 3.5% p.a 3.5% p.a

Infl ationary salary increases next three years 5.0% p.a 5.0% p.a

(additional promotional salary increases are assumed to apply based on past experience)

Assets have been included at their market value, i.e. allowing for realisation costs.

A small number of University staff are also members of VicSuper and HealthSuper.

The amount charged to the income statement in respect of these superannuation plans represents the contributions made by the University to the superannuation plan in respect to the current services of current University staff.

(X) GOODS AND SERVICES TAX (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case, it is recognised as part of the cost acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash fl ows are presented on a gross basis. The GST components of cash fl ows arising from investing or fi nancing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash fl ows.


78

(Y) COMPARATIVE AMOUNTS

The presentation and classifi cation of employee leave liabilities for the comparable amounts have been amended to better refl ect the provisions contained within AASB 101: Presentation of Financial Statements.

(1) The current long service leave liabilities have been split in to provisions to be settled within the next 12 months and provisions to be settled after more than 12 months.

Overall, there has been no change to the combined carrying value of the long service leave liability; the entity has altered its policy relating to the liability between current liability and non-current liability. Previously the portion of the liability allocated as a current liability now represents the amount which employees are presently entitled to. This change in classifi cation has resulted in the following amendment.

NOTE CURRENT NON-CURRENT TOTAL

2006 Year Amount reportable under previous AGAAP 15 2,893 26,035 28,928 Amounts reported under new classifi cation 15 23,408 5,520 28,928

2005 Year Amount reportable under previous AGAAP 15 3,197 28,766 31,963 Amounts reported under new classifi cation 15 26,000 5,963 31,963

(2) All annual leave laibilities are now treated as current as the entity has no unconditional right to defer the settlement of liability for 12 months after reporting date. This change in classifi cation has resulted in the following amendment.

NOTE CURRENT NON-CURRENT TOTAL

2005 Year Amount reportable under previous AGAAP 15 6,788 6,722 13,510 Amounts reported under new classifi cation 15 13,510 - 13,510

(Z) ROUNDING

All amounts in the fi nancial statements have been rounded to the nearest thousand dollars.

(AA) NEW ACCOUNTING STANDARDS AND UIG INTERPRETATIONS

Certain new Australian Accounting Standards and UIG Interpretations have been published that are not mandatory for 31 December 2006 reporting periods. The entity’s assessment of the impact of these new Standards and Interpretations is set out below:

AASB 101: PRESENTATION OF FINANCIAL STATEMENTS

AASB 101 is applicable to annual reporting periods beginning on or after 1 January 2007. The entity will adopt this standard in its 2007 fi nancial statement. Application of this standard is not expected to affect the company’s fi nancial statement.

AASB 1049: FINANCIAL REPORTING OF GENERAL GOVERNMENT SECTORS BY GOVERNMENTS

This Standard is applicable to annual reporting periods beginning on or after 1 July 2008 and requires a government to prepare a fi nancial report for its GGS in accordance with the requirements of this Standard. As Victoria University is not a Government entity, this standard will not affect the university’s fi nancial statements.

AASB 2006-4 Amendments to Australian Accounting Standards [AASB 134]. This Standard is applicable to interim periods ending on or after 31 December 2006. However, as Victoria University is not a disclosing entity required to prepare half-year fi nancial reports in accordance with Part 2M.3 of the Corporations Act, this standard will not affect the university’s fi nancial statements.


79

2. DISAGGREGATED INFORMATION

(A) GEOGRAPHICAL [CONSOLIDATED ENTITY] REVENUE* RESULTS ASSETS 2006 2005 2006 2005 2006 2005 $’000 $’000 $’000 $’000 $’000 $’000Australia 316,272 322,791 11,356 9,127 755,851 787,167

Asia 6,663 7,153 809 1,636 169 16

Others 63 80 15 (48) - -

TOTAL GEOGRAPHICAL 322,998 330,024 12,180 10,715 756,020 787,183

* The above revenue is the total revenue including the gross proceeds on sale of non-current assets, whereas the Income Statement revenue includes the net (loss) or gain on disposal of non-current assets i.e., proceeds less written down value of assets sold. Refer to note 12.3 for the written down value included in the Income Statement in arriving at the net gain or loss on disposal of property, plant and equipment.

(B) INDUSTRY [PARENT ENTITY] INCOME STATEMENT HIGHER VET TOTAL HIGHER VET TOTAL EDUCATION UNIVERSITY EDUCATION UNIVERSITY 2006 2006 2006 2005 2005 2005 NOTES $’000 $’000 $’000 $’000 $’000 $’000INCOME FROM CONTINUING OPERATIONS Australian Government fi nancial assistance

Australian Government grants 88,425 - 88,425 84,207 - 84,207

HECS-HELP - Australian Government Payments 47,421 - 47,421 40,987 - 40,987

FEE-HELP 2,783 - 2,783 2,643 - 2,643

State and local Government fi nancial assistance 1,473 76,721 78,194 1,625 71,286 72,911

HECS-HELP - Student Payments 6,925 - 6,925 6,329 - 6,329

Fees & charges 44,863 24,738 69,601 49,973 25,589 75,562

Investment income 4,471 1,906 6,377 3,734 1,757 5,491

Royalties, trademarks & licenses 290 1 291 50 - 50

Consultancy and contracts 6,812 - 6,812 6,681 - 6,681

Gains (losses) on disposal of assets

Other revenue 14,491 6,537 21,028 14,247 4,994 19,241

217,954 109,903 327,857 210,476 103,626 314,102 Deferred Government Superannuation Contributions (5,436) - (5,436) 14,161 - 14,161

TOTAL REVENUE FROM CONTINUING OPERATIONS 212,518 109,903 322,421 224,637 103,626 328,263

EXPENSES FROM CONTINUING OPERATIONS

Employee benefi ts and on costs 136,220 72,128 208,348 125,249 69,936 195,185

Depreciation and amortisation 10,492 5,649 16,141 10,205 5,503 15,708

Repair and maintenance 10,398 4,617 15,015 13,090 1,711 14,801

Finance costs - - - 107 - 107

Bad and doubtful debts 18 22 40 523 635 1,158

Other expenses 50,683 25,682 76,365 52,178 25,699 77,877

207,811 108,098 315,909 201,352 103,484 304,836

Deferred Employee Benefi ts for Superannuation (5,436) - (5,436) 14,161 - 14,161

TOTAL EXPENSES FROM ORDINARY ACTIVITIES 202,375 108,098 310,473 215,513 103,484 318,997

OPERATING RESULT AFTER INCOME TAX FOR THE PERIOD 10,143 1,805 11,948 9,124 142 9,266

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 CONTINUED

80

(B) INDUSTRY [PARENT ENTITY] BALANCE SHEET

HIGHER VET TOTAL HIGHER VET TOTAL EDUCATION UNIVERSITY EDUCATION UNIVERSITY 2006 2006 2006 2005 2005 2005ASSETS NOTES $’000 $’000 $’000 $’000 $’000 $’000CURRENT ASSETS

Cash and cash equivalents 68,866 17,782 86,648 72,372 21,916 94,288

Trade and other receivables 11,345 3,236 14,581 9,450 2,895 12,345

Inventories 1,123 481 1,604 929 431 1,360

Other non-fi nancial assets 2,613 1,119 3,732 2,345 1,103 3,448

Non-current assets classifi ed as held for sale 2,952 - 2,952 5,466 - 5,466

TOTAL CURRENT ASSETS 86,899 22,618 109,517 90,562 26,345 116,907

NON-CURRENT ASSETS

Trade and other receivables 101,386 - 101,386 107,135 64 107,199

Other fi nancial assets 944 405 1,349 819 1 820

Property, plant and equipment 330,930 209,628 540,558 345,227 214,488 559,715

Intangible assets 746 - 746 350 - 350

TOTAL NON-CURRENT ASSETS 434,006 210,033 644,039 453,531 214,553 668,084

TOTAL ASSETS 520,905 232,651 753,556 544,093 240,898 784,991

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 11,776 5,028 16,804 15,043 6,723 21,766

Provisions 31,211 10,483 41,694 31,265 11,562 42,827

Other liabilities 5,077 1,301 6,378 5,664 - 5,664

TOTAL CURRENT LIABILITIES 48,064 16,812 64,876 51,972 18,285 70,257

NON-CURRENT LIABILITIES

Provisions 104,975 1,931 106,906 110,742 2,220 112,962

Other liabilities 73 - 73 79 - 79

TOTAL NON-CURRENT LIABILITIES 105,048 1,931 106,979 110,821 2,220 113,041

TOTAL LIABILITIES 153,112 18,743 171,855 162,793 20,505 183,298

NET ASSETS 367,793 213,908 581,701 381,300 220,393 601,693

EQUITY

Reserves 183,628 63,905 247,533 207,233 72,195 279,428

Retained surplus 184,165 150,003 334,168 174,067 148,198 322,265

TOTAL EQUITY 367,793 213,908 581,701 381,300 220,393 601,693


81

(B) INDUSTRY [PARENT ENTITY] STATEMENT OF CHANGES IN EQUITY

HIGHER VET TOTAL HIGHER VET TOTAL EDUCATION UNIVERSITY EDUCATION UNIVERSITY 2006 2006 2006 2005 2005 2005 NOTES $’000 $’000 $’000 $’000 $’000 $’000

TOTAL EQUITY AT THE BEGINNING OF THE FINANCIAL YEAR 381,300 220,393 601,693 370,791 237,859 608,650

- Net gain on revaluation of land and buildings (23,650) (8,290) (31,940) 1,385 344 1,729

- Impairment loss on revalued asset - - - - (17,952) (17,952)

Net income recognised directly in equity (23,650) (8,290) (31,940) 1,385 (17,608) (16,223)

Operating result for the year 10,143 1,805 11,948 9,124 142 9,266

Total recognised income and expense for the year (13,507) (6,485) (19,992) 10,509 (17,466) (6,957)

TOTAL EQUITY AT THE END OF THE YEAR 367,793 213,908 581,701 381,300 220,393 601,693


82

(B) INDUSTRY [PARENT ENTITY] CASH FLOW STATEMENT

HIGHER VET TOTAL HIGHER VET TOTAL EDUCATION UNIVERSITY EDUCATION UNIVERSITY 2006 2006 2006 2005 2005 2005 NOTES $’000 $’000 $’000 $’000 $’000 $’000CASH FLOWS FROM OPERATING ACTIVITIES

Australian Government Grants received 135,274 - 135,274 130,206 - 130,206

State Government Grants received 1,747 76,721 78,468 1,522 71,286 72,808

Local Government Grants received 20 - 20 - - -

HECS-HELP - Student payments 6,925 - 6,925 6,328 - 6,328

Receipts from student fees and other customers 71,047 35,277 106,324 76,262 34,170 110,432

Interest received 4,471 1,906 6,377 3,734 1,757 5,491

Payments to suppliers and employees (inc. of GST) (205,153) (108,610) (313,763) (189,254) (98,672) (287,926)

Interest and other cost of fi nance paid - - - (107) - (107)

NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES 14,331 5,294 19,625 28,691 8,541 37,232

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment 62 76 138 1,085 39 1,124

Payments for property, plant and equipment (17,773) (9,099) (26,872) (10,054) (5,543) (15,597)

Proceeds from sale of other fi nancial assets - - - 22,430 - 22,430

Payments for other fi nancial assets (123) (405) (528) - - -

NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES (17,834) (9,428) (27,262) 13,461 (5,504) 7,957

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of interest bearing liabilities - - - (4,130) - (4,130)

Repayment of non- interest bearing liabilities (3) - (3) (6) - (6)

NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES (3) - (3) (4,136) - (4,136)

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (3,506) (4,134) (7,640) 38,016 3,037 41,053

Cash and cash equivalents at the beginning of the fi nancial year 72,372 21,916 94,288 34,356 18,879 53,235

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 68,866 17,782 86,648 72,372 21,916 94,288

NON-CASH FINANCING AND INVESTING ACTIVITIES - - - - - -


83

3. INCOME


3.1 AUSTRALIAN GOVERNMENT FINANCIAL ASSISTANCE INCLUDING HECS-HELP AND OTHER AUSTRALIAN GOVERNMENT LOAN PROGRAMMES

(A) COMMONWEALTH GRANTS SCHEME AND OTHER GRANTS

Commonwealth Grants Scheme 68,936 66,686 68,936 66,686

Indigenous Support Fund 110 113 110 113

Equity Programmes 273 260 273 260

Workplace Reform Programme 1,038 1,003 1,038 1,003

Workplace Productivity Programme 200 - 200 -

Capital Development Pool 1,451 477 1,451 477

Superannuation Programme 3,263 3,438 3,263 3,438

Collaboration and Structural Reform Programme 1,015 112 1,015 112

Total Commonwealth Grants Scheme and Other Grants 27.1 76,286 72,089 76,286 72,089

(B) HIGHER EDUCATION LOAN PROGRAMMES

HECS - HELP 47,421 40,987 47,421 40,987

FEE-HELP 2,783 2,643 2,783 2,643

Total Higher Education Loan Programmes 27.2 50,204 43,630 50,204 43,630

(C) SCHOLARSHIPS

Australian Postgraduate Awards 813 788 813 788

International Postgraduate Research Scholarships 42 12 42 12

Commonwealth Education Costs Scholarship 676 404 676 404

Commonwealth Accommodation Scholarships 911 760 911 760

Total Scholarships 27.3 2,442 1,964 2,442 1,964

(D) DEST RESEARCH

Institutional Grants Scheme 2,039 1,962 2,039 1,962

Research Training Scheme 5,238 5,340 5,238 5,340

Research Infrastructure Block Grants 827 706 827 706

Total DEST - Research Grants 27.4 8,104 8,008 8,104 8,008

TOTAL DEST 137,036 125,691 137,036 125,691

(E) AUSTRALIAN RESEARCH COUNCIL

DISCOVERY

Discovery Projects - Large Grants 715 712 715 712

Total Discovery 27.5 715 712 715 712

LINKAGES

Special Research Initiatives 36 36 36 36

Linkage Projects - Spirt 497 711 497 711

Total Linkages 27.5 533 747 533 747

(F) OTHER AUSTRALIAN GOVERNMENT FINANCIAL ASSISTANCE

Other 345 687 345 687

Total Other Australian Government Financial Assistance 345 687 345 687

TOTAL AUSTRALIAN GOVERNMENT FINANCIAL ASSISTANCE 138,629 127,837 138,629 127,837


84

CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 NOTES $’000 $’000 $’000 $’000 3.1. AUSTRALIAN GOVERNMENT FINANCIAL ASSISTANCE INCLUDING

HECS-HELP AND OTHER AUSTRALIAN GOVERNMENT LOAN PROGRAMMES (CON’T)

RECONCILIATION

Australian Government Grants (A + C + D + E + F) 88,425 84,207 88,425 84,207

HECS - HELP- Australian Government Payments (B) 47,421 40,987 47,421 40,987

Other Australian Government loan programmes Fee-HELP(B) 2,783 2,643 2,783 2,643

TOTAL AUSTRALIAN GOVERNMENT FINANCIAL ASSISTANCE 138,629 127,837 138,629 127,837

(G) AUSTRALIAN GOVERNMENT GRANTS RECEIVED - CASH BASIS CGS and Other DEST Grants 76,287 72,079 76,287 72,079

Higher Education Loan Programmes 46,848 46,009 46,848 46,009

Scholarships 2,442 1,964 2,442 1,964

DEST research 8,104 8,008 8,104 8,008

ARC grants - Discovery 715 712 715 712

ARC grants - Linkages 533 747 533 747

Other Australian Government Grants 345 687 345 687

Total Australian Government Grants received - cash basis 135,274 130,206 135,274 130,206

OS-Help (Net) 178 157 178 157

TOTAL AUSTRALIAN GOVERNMENT FUNDING RECEIVED - CASH BASIS 135,452 130,363 135,452 130,363

3.2. STATE AND LOCAL GOVERNMENT FINANCIAL ASSISTANCE

Victorian Government grants were received during the reporting period for the following purposes:

HIGHER EDUCATION

Other 107 57 107 57

107 57 107 57

TAFE

Recurrent funding 66,674 63,581 66,674 63,581

Capital 6,550 4,831 6,550 4,831

Fee for service 93 103 93 103

Specifi c funded programs 2,775 2,875 2,775 2,875

Other 1,995 1,464 1,995 1,464

78,087 72,854 78,087 72,854

TOTAL STATE GOVERNMENT FINANCIAL ASSISTANCE 78,194 72,911 78,194 72,911

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 – 3 REVENUE CONTINUED

85


3.3. FEES AND CHARGES

COURSE FEES AND CHARGES

Fee-paying overseas students 40,696 45,687 40,549 45,687

Fee-paying domestic postgraduate students 2,218 1,826 2,218 1,826

Fee-paying domestic undergraduate students 770 612 770 612

Fee-paying domestic non-award students 927 1,086 927 1,086

Other domestic course fees and charges:

TAFE Full Fee Australian Award 951 864 951 864

Fee for service 11,319 11,076 11,319 11,076

Enrolment fees 3,675 4,133 3,675 4,133

TOTAL COURSE FEES AND CHARGES 60,556 65,284 60,409 65,284

OTHER NON-COURSE FEES AND CHARGES

Student accommodation 2,415 2,177 2,415 2,177

General service fees 4,220 4,327 4,220 4,327

Student material fees 1,245 1,270 1,245 1,270

Graduation fees 421 407 421 407

Late enrolment fees 210 230 210 230

Other 681 2,073 681 1,867

TOTAL OTHER FEES AND CHARGES 9,192 10,484 9,192 10,278

TOTAL FEES AND CHARGES 69,748 75,768 69,601 75,562

3.4. INVESTMENT INCOME

Interest on bank bills, term deposits and managed funds 6,519 5,556 6,377 5,491

6,519 5,556 6,377 5,491

3.5. CONSULTANCY AND CONTRACT RESEARCH

Government 1,146 1,509 1,146 1,509

Industry 5,666 5,172 5,666 5,172

TOTAL CONSULTANCY AND CONTRACTS 6,812 6,681 6,812 6,681



3.6. OTHER REVENUE AND INCOME OTHER REVENUE

Net loss / (gain) on sale of non-current assets 12.3 75 (182) 73 (182)

Sale of goods 8,010 7,853 8,010 7,853

Property leases 3,808 5,161 3,808 5,161

Library fees and fi nes 79 102 79 102

Donations and bequests 246 149 28 85

Scholarships and prizes 101 90 86 -

Commissions, subscriptions and sale of publications 785 541 785 541

Health unit fees 277 242 277 242

Facilities and equipment hire 950 828 950 808

Seminar/conference Income 662 478 662 478

Parking meter and fi nes 190 164 190 164

Childcare 2,010 1,926 2,010 1,926

Miscellaneous 3,833 2,073 3,845 2,063

Non Government Grants 225 - 225 -

TOTAL OTHER REVENUE 21,251 19,425 21,028 19,241

86


87


4. EXPENSES

4.1. EMPLOYEE RELATED EXPENSES

ACADEMIC Salaries 92,511 87,329 92,511 87,329

Contributions to superannuation and pension schemes:

- Emerging cost 4,807 2,390 4,807 2,390

- Funded 11,191 10,422 11,191 10,422

Payroll tax 5,721 5,506 5,721 5,506

Worker’s compensation 1,214 1,264 1,214 1,264

Long service leave expense 6 2,767 6 2,767

Annual leave 4,865 4,489 4,865 4,489

Other 123 544 123 544

TOTAL ACADEMIC 120,438 114,711 120,438 114,711

NON-ACADEMIC

Salaries 68,261 60,014 68,257 60,010

Contributions to superannuation and pension schemes:

- Emerging cost 1,181 1,914 1,181 1,914

- Funded 9,452 8,444 9,452 8,444

Payroll tax 4,030 3,709 4,030 3,709

Worker’s compensation 855 851 855 851

Long service leave expense (143) 2,067 (143) 2,067

Annual leave 3,910 3,479 3,910 3,479

Other 368 - 368 -

TOTAL NON-ACADEMIC 87,914 80,478 87,910 80,474

TOTAL EMPLOYEE BENEFITS AND ON COSTS 208,352 195,189 208,348 195,185

Deferred government employee benefi ts for superannuation (5,436) 14,161 (5,436) 14,161

TOTAL EMPLOYEE RELATED EXPENSES, INCLUDING DEFERRED GOVERNMENT EMPLOYEE BENEFITS FOR SUPERANNUATION 202,916 209,350 202,912 209,346


88


4.2. DEPRECIATION AND AMORTISATION

DEPRECIATION

Buildings 10,653 10,722 10,653 10,722

Library collections 2,583 2,528 2,583 2,528

Plant, equipment and motor vehicles 2,733 2,366 2,733 2,366

TOTAL DEPRECIATION 15,969 15,616 15,969 15,616

AMORTISATION

Software 172 92 172 92

TOTAL AMORTISATION 172 92 172 92

TOTAL DEPRECIATION AND AMORTISATION 16,141 15,708 16,141 15,708

4.3. REPAIRS AND MAINTENANCE

Repairs and maintenance 7,342 7,926 7,342 7,926

Minor works 1,923 1,353 1,923 1,353

Cleaning 3,197 3,170 3,197 3,170

Security 2,422 2,240 2,422 2,240

Others 131 112 131 112

15,015 14,801 15,015 14,801

4.4. FINANCE COSTS

Interest on borrowings - 107 - 107

- 107 - 107

4.5. BAD AND DOUBTFUL DEBTS

Trade receivables 37 528 37 313

Student loans 3 23 3 23

Other loans - 605 - 822

40 1,156 40 1,158

4.6. OTHER EXPENSES

Scholarships, grants and prizes 8,536 7,270 8,396 7,174

Refund of income received in prior year 490 - 490 -

Donations 40 39 40 1,163

Telecommunications 3,010 3,080 3,010 3,080

Non-capitalised equipment 6,213 8,311 6,213 8,311

Travel, staff development and entertainment 8,429 8,374 8,429 8,374

Inventory used 4,970 4,805 4,969 4,805

Operating lease rental expenses 2,271 2,221 2,271 2,221

Energy/fuel costs 4,260 4,450 4,260 4,450

Printing and stationeries 3,399 2,638 3,399 2,638

Postage and freight 1,547 1,589 1,547 1,589

Fees and subscriptions 8,821 7,994 8,700 7,994

Legal and professional fees 7,856 12,128 7,834 12,099

Advertising, marketing and promotional expenses 4,334 4,080 4,334 4,078

Class materials and consumables 4,335 2,850 4,335 2,850

Other miscellaneous 8,137 7,045 8,138 7,051

76,648 76,874 76,365 77,877

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 – 4 EXPENSES CONTINUED

89


5. INCOME TAX

(A) INCOME TAX EXPENSE

Current tax 5 (B) - 7 - -

Under / (over) provided in prior years (7) - - -

(7) 7 - -

(B) NUMERICAL RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA FACIE TAX PAYABLE

Operating result from continuing operations before

income tax expense 10 191 - -

Tax at the Singaporean tax rate of 20% (2005:20%) 2 40 - -

Deferred tax benefi t arising during the year not recognised (2) - - -

Utilisation of deferred tax benefi ts previously not recognised - (25) - -

Tax exempt income - (8) - -

5(A) - 7 - -

6. CASH AND CASH EQUIVALENTS * Cash at bank and on hand 5,225 8,429 5,116 8,384

Deposits at call 16,445 5,272 14,000 3,000

Deposits - Other 67,532 82,904 67,532 82,904

89,202 96,605 86,648 94,288

Cash and cash equivalent available for restricted use:

* The above balance includes an amount of $Nil (2005: $3 million) held in trust or designated as restricted use.

A) RECONCILIATION TO CASH AT THE END OF THE YEAR

The above fi gures are reconciled to cash at the end of the year as shown in the statement of cash fl ows as follows:

Balances as above 89,202 96,605 86,648 94,288

Balance per cash fl ow statement 89,202 96,605 86,648 94,288

(B) CASH AT BANK AND ON HAND

Cash in operating accounts earns interest at the rate of 4.35%.

(C) DEPOSITS AT CALL

The deposits are at fl oating interest rates between 5.50% and 6.36% (2005: 4.50% and 5.73%). These deposits have maturities ranging from 0-92 days.

(D) DEPOSITS - OTHER

Deposits – Other are funds invested in various ‘enhanced’ cash managed funds. The funds earn interest at the rate of 6.23% and are at call between 0-4 days.


90


7. TRADE AND OTHER RECEIVABLES

CURRENT

Trade and sundry receivables 11,433 9,398 11,398 9,398

Less: Provision for doubtful debts (317) (380) (317) (380)

Student loans 27 36 27 36

Less: Provision for doubtful debts (21) (26) (21) (26)

Other Loans - - - -

Deferred Government Contributions for Superannuation 3,494 3,317 3,494 3,317

14,616 12,345 14,581 12,345

NON-CURRENT

Other Loans - 200 - 200

Deferred Government Contributions for Superannuation 101,386 106,999 101,386 106,999

101,386 107,199 101,386 107,199

TOTAL TRADE AND OTHER RECEIVABLES 116,002 119,544 115,967 119,544

(A) BAD AND DOUBTFUL TRADE RECEIVABLES

The Group has recognised a loss of $102,000 (2005: $551,000) in respect of bad and doubtful trade receivables during the year ended 31 December 2006.

(B) EFFECTIVE INTEREST RATES AND CREDIT RISK

Information concerning the effective interest rate and credit risk of both current and non-current receivables is set out in Financial Instruments note 26.

8. INVENTORIES

Trading Stock - at cost 1,604 1,360 1,604 1,360

1,604 1,360 1,604 1,360


91


9. OTHER FINANCIAL ASSETS

NON-CURRENT

Shares in controlled entities at cost - - 150 150

Other shares at cost** 1,519 981 1,519 981

Less: Impairment losses (320) (311) (320) (311)

TOTAL OTHER FINANCIAL ASSETS 1,199 670 1,349 820

** Other Shares include investments in UniSuper Ltd, IDP Australia Ltd, International Training Australia Pty Ltd, AARNet Pty Ltd and VERNet Pty Ltd.

10. OTHER NON-FINANCIAL ASSETS

Prepayments

3,732 3,448 3,732 3,448

3,732 3,448 3,732 3,448

11. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

Land

Net book amount at the beginning of the year 5,466 5,466 5,466 5,466

Impairment losses (2,514) - (2,514) -

NET BOOK AMOUNT AT THE END OF THE YEAR 2,952 5,466 2,952 5,466


92


12. PROPERTY, PLANT AND EQUIPMENT 12.1 PROPERTY, PLANT AND EQUIPMENT

Land 96,353 137,110 96,353 137,110

Buildings 419,872 400,054 419,872 400,054

Plant and equipment 13,160 11,348 13,160 11,348

Other plant and equipment 223 230 198 205

Library collections 10,975 10,998 10,975 10,998

TOTAL PROPERTY, PLANT AND EQUIPMENT 540,583 559,740 540,558 559,715

Represented By:

LAND

At valuation 2006 96,353 137,110 96,353 137,110

At cost - - - -

96,353 137,110 96,353 137,110

BUILDINGS

At valuation 2006 419,872 430,532 419,872 430,532

At cost - - - -

Less: Accumulated depreciation - (30,478) - (30,478)

419,872 400,054 419,872 400,054

PLANT AND EQUIPMENT

At cost 44,050 40,478 44,050 40,478

Less: Accumulated depreciation (30,890) (29,130) (30,890) (29,130)

13,160 11,348 13,160 11,348

OTHER PLANT AND EQUIPMENT

At cost 223 230 198 205

223 230 198 205

LIBRARY HOLDINGS

At cost 20,641 20,151 20,641 20,151

Less: Accumulated depreciation (9,666) (9,153) (9,666) (9,153)

10,975 10,998 10,975 10,998


93

12.2 PROPERTY, PLANT AND EQUIPMENT (RECONCILIATION OF CARRYING AMOUNTS)

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the reporting period are set out below:

OTHER PLANT AND PLANT AND LAND BUILDINGS EQUIPMENT EQUIPMENT* LIBRARY TOTAL NOTES $’000 $’000 $’000 $’000 $’000 $’000CONSOLIDATED Opening net book amount at 1 January 2005 155,974 405,365 9,575 223 10,575 581,712

Additions - 8,231 4,220 9 2,966 15,426

Assets classifi ed as held for sale and other disposals (written down value) - 3 (81) (2) (15) (95) Assets classifi ed as held for sale (5,466) - - - - (5,466)

Revaluation increments/(decrements) 1,729 - - - - 1,729 Depreciation expense - (10,721) (2,366) - (2,528) (15,615)

Impairment (15,127) (2,825) - - - (17,952)

Closing net book amount at 31 December 2005 137,110 400,054 11,348 230 10,998 559,740

Opening net book amount at 1 January 2006 137,110 400,054 11,348 230 10,998 559,740

Additions 300 18,860 4,561 2 2,580 26,303 Assets classifi ed as held for sale and other disposals (written down value) - (20) (16) (9) (20) (65) Assets classifi ed as held for sale - - - - - - Revaluation increments/(decrements) (41,057) 11,631 - - - (29,426) Depreciation expense - (10,653) (2,733) - (2,583) (15,969)

Impairment - - - - - -


UNIVERSITY


Additions - 8,231 4,220 9 2,966 15,426

Assets classifi ed as held for sale and other disposals (written down value) - 3 (80) (2) (29) (108)

Assets classifi ed as held for sale (5,466) - - - - (5,466)

Revaluation increments/(decrements) 1,729 - - - - 1,729

Depreciation/amortisation expense - (10,722) (2,366) - (2,528) (15,616)

Impairment (15,127) (2,825) - - - (17,952)



Additions 300 18,860 4,561 2 2,580 26,303

Assets classifi ed as held for sale and other disposals (written down value) - (20) (16) (9) (20) (65)

Assets classifi ed as held for sale - - - - - -

Revaluation increments/(decrements) (41,057) 11,631 - - - (29,426)

Depreciation/amortisation expense - (10,653) (2,733) - (2,583) (15,969)

Impairment - - - - - -


* Other plant and equipment relates to artworks

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 –12. PROPERTY, PLANT AND EQUIPMENT CONTINUED

94

CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 NOTES $’000 $’000 $’000 $’00012.3 OPERATING RESULT FROM DISPOSAL OF PROPERTY,

PLANT AND EQUIPMENT

Proceeds from sale of property, plant and equipment 140 1,124 138 1,124

Written down value of assets sold (65) 1,306 (65) 1,306

Revaluation reserve realised on disposal - - - -

Written down value of assets sold (65) 1,306 (65) 1,306

Net (loss) / gain on disposal of property, plant and equipment 3.6 75 (182) 73 (182)

12.4 VALUATIONS OF LAND AND BUILDINGS

The valuation basis for land and buildings is fair value based on valuation by external independent valuers, as conducted in 2006, adjusted for any market movements or based on value-in-use. The 2005 revaluations were made by offi cers of the University as at the relevant year-end date. The revaluation surplus / shortfall was taken to revaluation reserves in equity (note 17(b)).

13. INTANGIBLE ASSETS

SOFTWARE TOTAL CONSOLIDATED AND UNIVERSITY $000 $000 Net book amount at 1 January 2005 271 271

Additions 172 172

Amortisation charge (93) (93)

Net book amount at 31 December 2005 350 350

Cost at 31 December 2005 2,039 2,039

Accumulated amortisation and impairment (1,689) (1,689)


Net book amount at 1 January 2006 350 350

Additions 568 568

Amortisation charge (172) (172)


Cost at 31 December 2006 2,608 2,608

Accumulated amortisation and impairment (1,862) (1,862)


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 –12. PROPERTY, PLANT AND EQUIPMENT CONTINUED

95


14. TRADE AND OTHER PAYABLES

OS-HELP Liability to Australian Government - 53 - 53

Trade Creditors 5,453 7,427 5,453 7,427

Other Accruals 11,377 14,271 11,351 14,286

16,830 21,751 16,804 21,766

15. PROVISIONS

CURRENT PROVISIONS EXPECTED TO BE SETTLED WITHIN 12 MONTHS

Employee benefi ts

Annual leave 14,792 13,510 14,792 13,510

Long service leave 2,893 3,197 2,893 3,197

Deferred benefi ts for superannuation 3,494 3,317 3,494 3,317

21,179 20,024 21,179 20,024

CURRENT PROVISIONS EXPECTED TO BE SETTLED AFTER MORE THAN 12 MONTHS

Employee benefi ts


20,515 22,803 20,515 22,803

Total current provisions 41,694 42,827 41,694 42,827

NON-CURRENT PROVISIONS EXPECTED TO BE SETTLED AFTER MORE THAN 12 MONTHS

Employee benefi ts


Deferred benefi ts for superannuation 101,386 106,999 101,386 106,999

106,906 112,962 106,906 112,962

TOTAL PROVISIONS 148,600 155,789 148,600 155,789

16. OTHER LIABILITIES

CURRENT

Student fees - in advance 6,369 5,658 6,369 5,658

Others 9 6 9 6

6,378 5,664 6,378 5,664

NON-CURRENT

Others 73 79 73 79

TOTAL OTHER LIABILITIES 6,451 5,743 6,451 5,743


96


17 . EQUITY

(A) COMPOSITION

Equity at the end of the year comprises:

Accumulated Funds 17(B) 334,277 322,117 334,168 322,265

Reserves

Asset revaluation reserve 17(B) 247,533 279,428 247,533 279,428

Foreign currency translation reserve 17(B) - 1 - -

Special purpose reserves 17(B) 2,329 2,354 - -

249,862 281,783 247,533 279,428

TOTAL EQUITY 584,139 603,900 581,701 601,693

(B) MOVEMENTS

ACCUMULATED FUNDS/ RETAINED SURPLUS

Balance at beginning of fi nancial year 322,117 312,261 322,265 312,593

Operating result for the year 12,180 10,715 11,948 9,266

Adjustment resulting from change in accounting policy - - - -

Revaluation reserve realised on disposal of assets (45) 406 (45) 406

Adjustment on Foreign Currency Translation Reserve - - - - Transfer from/(to) special purpose reserves 25 (1,265) - -

Balance at end of fi nancial year 17(A) 334,277 322,117 334,168 322,265

ASSET REVALUATION RESERVES

LAND


Net movements due to revaluation (43,571) 1,729 (43,571) 1,729

Realised on asset disposals - (479) - (479)

Impairment losses - (15,127) - (15,127)

Balance at end of fi nancial year 103,378 146,949 103,378 146,949

BUILDINGS


Net movements due to revaluation 11,631 - 11,631 -

Realised on asset disposals 45 73 45 73

Impairment losses - (2,825) - (2,825)

Balance at end of fi nancial year 144,155 132,479 144,155 132,479

TOTAL ASSET REVALUATION RESERVES 17(A) 247,533 279,428 247,533 279,428


97


(B) MOVEMENTS (CON’T)

FOREIGN CURRENCY TRANSLATION RESERVE

Balance at beginning of fi nancial year 1 (1) - -

Movement due to translation of foreign subsidiary fi nancial statement (1) 2 - -

BALANCE AT END OF FINANCIAL YEAR 17(A) - 1 - -

SPECIAL PURPOSE RESERVE

Balance at beginning of fi nancial year 2,354 1,089 - -

Transfer from/(to) accumulated funds (25) 1,265 - -

BALANCE AT END OF FINANCIAL YEAR 17(A) 2,329 2,354 - -

(C) NATURE AND PURPOSE OF RESERVES

ASSET REVALUATION RESERVE

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as described in accounting policy note 1(O).

FOREIGN CURRENCY TRANSLATION RESERVE

Exchange differences arising on the translation of the foreign controlled entity, Victoria University of Technology (Singapore) Pte. Ltd, are taken to the foreign currency translation reserve.

SPECIAL PURPOSE RESERVE

The purpose of this reserve is to fund the philanthropic activity of Victoria University Foundation Trust.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 –17. EQUITY CONTINUED

98

18. KEY MANAGEMENT PERSONNEL DISCLOSURES (A) NAMES OF RESPONSIBLE PERSONS AND EXECUTIVE OFFICERS (I) NAMES OF RESPONSIBLE PERSONS For the purposes of the Financial Management Act 1994, the Minister for Education and Training and members of the University Council are the responsible persons of the University. The names of persons who were responsible persons at anytime during the fi nancial year, were:

The Hon. Lynne Kosky, Minister for Education and Training (to 25 November 2006) The Hon. Jacinta Allen, Minister for Education and Training (from 25 November 2006) Professor E.Harman, Vice-Chancellor and President.

Council Members during 2006 were:

Mr K.Baker (Appointed on 26/10/ 2006)

Mr G. Buckland

Dr J.Doughney (Appointed on 1/1/2006)

Commissioner D. Foggo (Deputy Chancellor)

Dr I. Gilmour

Dr R. Gould ( Reappointed on 1/1/2006)

Ms M. Haggart

Associate Professor M.Hamel-Green (Appointed on 1/1/2006)

Professor E. Harman (Vice Chancellor and President)

Mr J.Kelly (Appointed on 1/1/2006 and ceased on 31/12/2006)

Mr K. Latta

Mr K. Loughnan

Mrs A.Mantoo (Appointed on 18/4/2006 and ceased on 31/12/2006)

Ms. T. McCluskey

Mr J. O’Rouke

Ms G. Pretto (Ceased on 4/8/ 2006)

Mr L. Tapinos

Ms M. Tarrant (Ceased on 31/12/2006)

Professor R.Teese (Appointed on 24/4/ 2006 but was on sabbatical leave during 2006)

Mr D. Thomas (Ceased on 31/12/2006)

The Hon. Justice Mr F. Vincent (Chancellor)

Mr M. White ( Resigned 6/2/2006)

Mr M.Zaar (Appointed on 1/1/2006)

(II) NAMES OF EXECUTIVE OFFICERSMr D.Batiste

Professor V. Beck (Ceased on 18/1/2006)

Mr R. Brown

Mr G. Carter

Professor R. Carter

Professor C. Clark

Mr P. County

Ms A. de Villiers

Professor R. Eade

Professor J. Finkelstein

Professor R. Gabb

Professor M. Hamerston (Ceased on 14/7/ 2006)

Professor E. Harman (Vice Chancellor and President)

Associate Professor M.Hamel-Green

Mr J.Hickman (Commenced on 13/11/2006)

Ms. S. Hodgetts

Ms A. Jones

Mr P.Kent (Commenced on 24/4/2006)

Ms. A.T. Jones

Ms C. Kotur (Ceased on 27/1/2006)

Mr P. Lodhiya

Ms L.Maquignaz (Ceased on 23/4/2006)

Professor E. Martin

Professor S. Martin

Professor J. McCallum

Ms. T. McCluskey

Ms B. McLennan

Professor J.Mienczakowski

Dr G. Morris (Commenced on 24/4/ 2006)

Mr D. Nicholson (Ceased on 16/6/2006)

Ms A. Pearce

Ms J. Richards

Professor I. Rouse

Professor M.Ryan

Professor B.Sheehan (Commenced 26/6/2006 and ceased 31/12/ 2006)

Dr S. Stern

Ms S. Thomas

Mr S. Weller

Ms K. Whye

All of the above persons were also key management persons during the year ended 31 December 2006.


99

(B) REMUNERATION OF BOARD MEMBERS AND EXECUTIVES CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 $’000 $’000 $’000 $’000

Income paid or payable, or otherwise made available, to Council members by entities in the consolidated entity and related parties in connection with the management of affairs of the parent entity or its controlled entities: 73 67 69 63

Remuneration paid to Ministers is reported in the Annual Report of the Department of Premier and Cabinet.

REMUNERATION OF BOARD MEMBERS CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 NUMBER NUMBER NUMBER NUMBER

Nil to $14,999 22 22 22 21

$15,000 to $29,999 - 1 - 1

Total Numbers 22 23 22 22

Income paid or payable, or otherwise made available, to executive offi cers by entities in the consolidated entity and related parties: CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 $’000 $’000 $’000 $’000

7,307 5,672 7,307 5,672

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 –18. KEY MANAGEMENT PERSONNEL DISCLOSURES CONTINUED

100

REMUNERATION OF EXECUTIVE OFFICERS CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 NUMBER NUMBER NUMBER NUMBER$100,000 to $109,999 1 1 1 1

$110,000 to $119,999 1 - 1 -

$120,000 to $129,999 3 1 3 1

$130,000 to $139,999 3 5 3 5

$140,000 to $149,999 3 3 3 3

$150,000 to $159,999 3 3 3 3

$160,000 to $169,999 4 1 4 1

$170,000 to $179,999 2 3 2 3

$180,000 to $189,999 - 1 - 1

$190,000 to $199,999 2 1 2 1

$200,000 to $209,999 1 - 1 -

$210,000 to $219,999 1 - 1 -

$220,000 to $229,999 3 - 3 -

$230,000 to $239,999 1 2 1 2

$240,000 to $249,999 - - - -

$250,000 to $259,999 - - - -

$260,000 to $269,999 1 - 1 -

$270,000 to $279,999 - 1 - 1

$280,000 to $289,999 1 - 1 -

$290,000 to $299,999 - 1 - 1

$300,000 to $309,999 - 3 - 3

$310,000 to $319,999 1 - 1 -

$330,000 to $339,999 1 - 1 -

$340,000 to $349,999 1 - 1 -

$430,000 to $439,999 1 - 1 -

$470,000 to $479,999 1 1 1 1

35 27 35 27

The Vice-Chancellor nominated the Vice-Chancellor’s Advisory Committee (Services) and the Vice-Chancellor’s Advisory Committee (Scholarship and Skills) as the primary advisory bodies within the University. Accordingly, the members of these committees are treated as Executives for the purpose of this note.

For 2006 year, four executives ( 2005: six) whose total earnings were below $100,000 are not banded in the above table.

The number of executives increased due to staff movements during the year.

(C) LOANS TO KEY MANAGEMENT PERSONNEL There were no loans in existence by the University to responsible persons or related parties at the date of this report. There were no interests in the shares of related entities held by responsible persons of the University as at reporting date. There were no other transactions between the University and responsible persons or their related parties during the fi nancial year.

Remuneration includes salary, superannuation, retirement benefi ts and other salary related benefi ts including fringe benefi ts and associated tax.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 –18. KEY MANAGEMENT PERSONNEL DISCLOSURES CONTINUED

101

CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 $’000 $’000 $’000 $’000

19. REMUNERATION OF AUDITORS

During the year, the following fees were paid for services provided by the auditor of the parent entity, its related practices and non-related audit fi rms:

ASSURANCE SERVICES

(1) Audit Services

Fees paid to Auditor General of Victoria for audit of Financial Reports 140 123 132 115

Fees paid to Deloitte & Touche (Singapore) for audit of a subsidiary entity in the consolidated entity 7 7 - -

(2) Other Assurance Services

Fees paid to Auditor General of Victoria for audit of US Student Loans 2 - 2 -

Fees paid to non-audit fi rms for internal Audit Services

PricewaterhouseCoopers (Australia) & Moore Stephens 149 104 149 104

Fees paid to non-audit fi rms for acquittal audits and other compliance audits 24 39 24 39

Fees paid to non-audit fi rm as AUQA audit fees 54 - 54 -

Taxation services

Fees paid to Deloittes & Touche (Singapore) for preparation of company income tax returns 3 3 - -

Advisory services

Fees paid to non- audit fi rms for review of policy documents 7 - 7 -

386 276 368 258

20. CONTINGENCIES

There are no contingency assets or liabilities to report.

CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 $’000 $’000 $’000 $’000

21. COMMITMENTS

(A) OPERATING LEASES

Commitments in relation to leases contracted for at

the reporting date but not recognised as liabilities, payable:

Due within one year 1,429 2,221 1,429 2,221

Due after one year, but within fi ve years 1,600 1,917 1,600 1,917

Due after fi ve years 5,610 5,752 5,610 5,752

8,639 9,890 8,639 9,890

GST reclaimable on the above 570 586 570 586

NET COMMITMENTS 8,069 9,304 8,069 9,304

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 – CONTINUED

102

CONSOLIDATED UNIVERSITY 2006 2005 2006 2005 $’000 $’000 $’000 $’000 (B) CAPITAL COMMITMENTS Capital expenditure contracted for at the reporting date but not recognised as liabilities are:

Capital contributions payable to VERNet Pty Ltd 134 278 134 278

Buildings and Major Works 15,215 17,493 15,215 17,493

15,349 17,771 15,349 17,771

GST reclaimable on the above 1,383 1,590 1,383 1,590

Net Commitments 13,966 16,181 13,966 16,181

Net Commitments are payable as follows:

Due within one year 12,589 16,181 12,589 16,181

Later than one year but not later than fi ve years 1,377 - 1,377 -

13,966 16,181 13,966 16,181

(C) OTHER EXPENDITURE COMMITMENTSCommitments for VERNet Pty Ltd. operating subscriptions in existence at the reporting date but not recognised as liabilities, payable:

Due within one year 268 262 268 262

Later than one year but not later than fi ve years - - - -

268 262 268 262

22. RELATED PARTIES

(A) SUBSIDIARIES Interests in subsidiaries are set out in note 23.

(B) KEY MANAGEMENT PERSONNEL Disclosures relating to responsible offi cers and specifi ed executives are set out in note 18.

2006 2005 $’000 $’000 (C) TRANSACTIONS WITH RELATED PARTIESThe following transactions occurred with related parties:

Training fee income from Victoria University of Technology (Singapore) Pte Ltd 118 121

Income received from Victoria University Foundation 2 -

Donations paid to Victoria University Foundation - 1,124

Audit fees paid on behalf of Victoria University International Pty Ltd 1 1

Audit fees paid on behalf of Victoria University Enterprises Pty Ltd 1 1

(D) OUTSTANDING BALANCES The following balances are outstanding at the reporting date in relation to transactions with related parties:

Amount receivable from Victoria University Foundation 13 2

Amount payable to Victoria University Foundation - 7

Amount receivable from Victoria University of Technology (Singapore) Pte Ltd 143 -

Loan write-off to Victoria University of Technology (Singapore) Pte Ltd - 217

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 – 21. COMMITMENTS CONTINUED

103

23. SUBSIDIARIES

The consolidated fi nancial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 1 (b):

NAME OF ENTITY PRINCIPAL ACTIVITIES COUNTRY OF INCORPORATION

CLASS OF SHARES EQUITY HOLDING

2006 % 2005 %

Victoria University Foundation Ltd (ACN 007 151 895)

Acts as a trustee for the Foundation Trust Australia Ordinary 100 100

Victoria University Foundation * To raise funds to develop the University’s educational initiatives and research activities and to provide scholarships and prizes for its students.

Australia - 100 100

Victoria University Enterprises Pty Ltd (ACN 007 382 818)

To administer IP from research related spin-off companies

Australia Ordinary 100 100


Acts as a hub for the offshore programs offi ce Singapore Ordinary 100 100

Victoria University International Pty Ltd (ACN 079 529 089)

Not trading Australia Ordinary 100 100

Victoria University - AFIC College Ltd (ACN 117 848 284)

Not trading Australia - 50 -

* Victoria University Foundation Ltd, a company limited by guarantee acts as trustee of the Victoria University Foundation.

NAME OF ENTITY NET EQUITY TOTAL REVENUE OPERATING RESULTS CONTRIBUTION TO OPERATING RESULTS

2006 2005 2006 2005 2006 2005 2006 2005

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Victoria University Foundation Ltd (ACN 007 151 895) - - - - - - - -

Victoria University Foundation 2,567 2,354 377 1,380 214 1,264 214 1,264

Victoria University Enterprises Pty Ltd (ACN 007 382 818) 2 - 2 - 2 - 2 -

Victoria University of Technology (Singapore) Pte Ltd 20 3 148 368 17 184 17 184

Victoria University International Pty Ltd (ACN 079 529 089) - - - - - - - -

Victoria University - AFIC College Ltd ( ACN 117 848 284) - - - - - - - -

24. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

No matters or circumstances have arisen since the end of the reporting period which signifi cantly affected or may affect the operations of the entity, the results of those operations, or the state of affairs of the company in future fi nancial years.


104


25. RECONCILIATION OF OPERATING RESULT AFTER INCOME TAX TO NET CASH FLOWS FROM OPERATING ACTIVITIES

(A) RECONCILIATION OF CASH Cash at Beginning of Year

Cash on hand 82 86 82 86

Cash at bank 8,347 3,332 8,302 3,170

Money market deposits 88,176 50,929 85,904 49,979

96,605 54,347 94,288 53,235

Cash at End of Year

Cash on hand 78 82 78 82

Cash at bank 5,147 8,347 5,038 8,302

Money market deposits 83,977 88,176 81,532 85,904

6 89,202 96,605 86,648 94,288

CASH MOVEMENT FOR THE YEAR (7,403) 42,258 (7,640) 41,053

(B) RECONCILIATION OF NET CASH FROM OPERATING ACTIVITIES TO

NET OPERATING RESULT Operating result for the year 12,180 10,715 11,948 9,266

Add non cash items:

Depreciation and amortisation 16,141 15,708 16,141 15,708

Net loss/(gain) on sale of non-current assets 3.6 (75) 182 (73) 195

Changes in operating assets and liabilities:

Increase/(Decrease) in Employee benefi ts (1,753) 4,409 (1,753) 4,407

Increase/(Decrease) in Payables (4,942) 8,647 (4,962) 8,647

(Decrease)/Increase in Revenue in advance 712 (2,150) 712 (2,152)

(Increase)/Decrease in Receivables (1,872) 1,407 (1,860) 1,640

(Increase)/Decrease in Prepayments (284) (621) (284) (620)

Decrease/(Increase) in Inventories (244) 141 (244) 141

NET CASH PROVIDED BY OPERATING ACTIVITIES 19,863 38,438 19,625 37,232


105

26. FINANCIAL INSTRUMENTS

(A) FINANCIAL RISK MANAGEMENT The University’s fi nancial instruments consist mainly of deposits with banks, local money market instruments, short term investments, funds under management, accounts receivables and payables and leases.

The main risks the University is exposed to through its fi nancial instruments are market risk, credit risk and liquidity risk and cash fl ow and fair value interest rate risk.

(I) MARKET RISK

Market risk is the risk that the value of fi nancial instruments fl uctuating due to changes in foreign exchange rates, changes in market interest rates, and changes in market prices.

Foreign exchange risk

The University is exposed to fl uctuations in foreign currencies arising from the delivery of services in currencies other than Australian dollars. This risk is mitigated by trade receivables being invoiced in Australian dollars.

Price risk

The University is exposed to price risk in respect of fee for service and contract services which are subject to open market competition.

(II) CREDIT RISK

The University’s maximum exposure to credit risk at balance date in relation to each class of recognised fi nancial asset is the carrying amount of those assets as indicated in the balance sheet.

The University minimises concentrations of credit risk in relation to trade accounts receivable by undertaking transactions with a large number of customers within the specifi ed industries, and the majority of customers are concentrated in Australia.

Credit risk in trade receivables is managed in the following ways:

- payment terms are 30 days;

- debt collection policies and procedures including use of a debt collection agency.

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

No other fi nancial assets carry a signifi cant exposure to credit risk.

(III) LIQUIDITY RISK

Liquidity risk is the risk that the entity will encounter in realising assets or otherwise raising funds to meet commitments. This risk is minimised as cash and cash equivalent assets are held in highly liquid cash holdings, and the monitoring of cash fl ows ensures that maximum funds are available for investment.

(IV) CASH FLOW AND FAIR VALUE INTEREST RATE RISK

The entity’s exposure to interest rate risk is the risk that a fi nancial instrument’s value will fl uctuate as a result of changes in market interest rates. The University is exposed to interest rate risk associated with cash management activities whereby excess funds are placed with fi nancial institutions and are subjected to changes in the basis of prime interest rate. Management believes that the interest rate is manageable and hence, the University does not use derivative fi nancial instruments to mitigate this risk.


106

(B) TERMS, CONDITIONS AND ACCOUNTING POLICIES The entity’s accounting policies, including the terms and conditions of each class of fi nancial asset and liability, both recognised and unrecognised at the balance date, are as follows: RECOGNISED FINANCIAL INSTRUMENTS NOTES ACCOUNTING POLICIES TERMS AND CONDITIONS (I) FINANCIAL ASSETS

Cash and cash equivalents - cash at bank and on hand 6 Cash on hand and in operating accounts are carried at Cash in operating accounts earns interest the nominal amount. at the rate of 4.35% Cash and cash equivalents - deposits at call 6 Deposits at call are carried at their nominal amounts. Deposits at call have maturities ranging from Interest revenue is recognised in the profi t and loss 0-92 days and interest rates range between statement when it is earned. 5.50% and 6.36% (2005: 4.50% and 5.73%).

Cash and cash equivalents - deposits - other 6 Deposits - other are carried at their nominal amounts. The managed fund earns interest at the rate of Interest revenue is recognised in the income statement 6.23% and are at call between 0-4 days. when it is earned.

Receivables - Debtors 7 Trade debtors are carried at nominal amounts due less Account Receivable credit terms are 30 days.any allowance for doubtful debts. An allowance for doubtful debts is maintained to recognise that collection of the full nominal amount is no longer probable.

Receivables - Loans to other parties 7 Loans to other parties are stated at cost with the Loans are provided to other effective interest rate of 0%. parties for a term of 2 years at an effective interest rate of 0%.

Other fi nancial assets - Unlisted shares 9 Unlisted shares are stated at cost as there is no active Unlisted shares are stated at cost and reviewed market for them. for impairment annually.

(II) FINANCIAL LIABILITIES

Payables 14 Liabilities are recognised for amounts to be paid Trade creditors are normally settled on in the future for goods and services received, 30 day terms. whether or not invoiced to the economic entity.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 – 26. FINANCIAL INSTRUMENTS CONTINUED

107

(C) INTEREST RATE RISK EXPOSURES The economic entity’s exposure to interest rate risks and the effective interest rates of fi nancial assets and liabilities, both recognised and unrecognised are as follows:

WEIGHTED FIXED INTEREST RATE MATURITIES AVERAGE FLOATING NON INTEREST INTEREST 1 YEAR 1 TO 2 2 TO 3 3 TO 4 4 TO 5 OVER 5 INTEREST

RATE RATE OR LESS YEARS YEARS YEARS YEARS YEARS BEARING TOTAL

% $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2006

(I) FINANCIAL ASSETS

Cash and cash equivalents - at bank 4.4% 5,225 - - - - - - - 5,225

Cash and cash equivalents - deposits at call 6.2% 16,445 - - - - - - - 16,445

Cash and cash equivalents - deposits - other 6.2% 67,532 - - - - - - - 67,532

Receivables - debtors N/A - - - - - - - 11,122 11,122

Receivables - loans to other parties N/A - - - - - - - - -

Other fi nancial assets - unlisted shares N/A - - - - - - - 1,199 1,199

TOTAL FINANCIAL ASSETS 89,202 - - - - - - 12,321 101,523


Payables N/A - - - - - - - 16,830 16,830

Non-interest bearing liabilities - other loans N/A - - - - - - - 82 82

TOTAL FINANCIAL LIABILITIES - - - - - - - 16,912 16,912

NET FINANCIAL ASSETS 89,202 - - - - - - (4,591) 84,611

WEIGHTED FIXED INTEREST RATE MATURITIES AVERAGE FLOATING NON INTEREST INTEREST 1 YEAR 1 TO 2 2 TO 3 3 TO 4 4 TO 5 OVER 5 INTEREST

RATE RATE OR LESS YEARS YEARS YEARS YEARS YEARS BEARING TOTAL

% $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

2005

(I) FINANCIAL ASSETS

Cash and cash equivalents - at bank 4.1% 8,429 - - - - - - - 8,429

Cash and cash equivalents - deposits at call 5.5% 5,272 - - - - - - - 5,272

Cash and cash equivalents - deposits - other 5.9% 82,904 - - - - - - - 82,904

Receivables - debtors N/A - - - - - - - 9,028 9,028

Receivables - loans to other parties N/A - - - - - - - 200 200

Other fi nancial assets - unlisted shares N/A - - - - - - - 670 670

TOTAL FINANCIAL ASSETS 96,605 - - - - - - 9,898 106,503


Payables N/A - - - - - - - 21,751 21,751

Non-interest bearing liabilities - other loans N/A - - - - - - - 86 86

TOTAL FINANCIAL LIABILITIES - - - - - - - 21,837 21,837

NET FINANCIAL ASSETS 96,605 - - - - - - (11,939) 84,666


108

(D) FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The aggregate net fair values of fi nancial assets and fi nancial liabilities, both recognised and unrecognised, at the balance date, are as follows:

TOTAL CARRYING AMOUNT AS PER THE BALANCE SHEET AGGREGATE NET FAIR VALUE

2006 2005 2006 2005

$’000 $’000 $’000 $’000

FINANCIAL ASSETS

Non-Traded

Cash and Cash Equivalents - at bank 5,225 8,429 5,225 8,429

Cash and Cash Equivalents -Deposits at Call 16,445 5,272 16,445 5,272

Cash and Cash Equivalents -Deposits - Other 67,532 82,904 67,532 82,904

Receivables - Debtors 11,122 9,028 11,122 9,028

Receivables - Loans to other parties - 200 - 200

Other fi nancial assets - unlisted shares 1,199 670 1,199 670

TOTAL FINANCIAL ASSETS 101,523 106,503 101,523 106,503

FINANCIAL LIABILITIES

Payables 16,830 21,751 16,830 21,751

Non-interest Bearing Liabilities - Other loans 82 86 82 86

TOTAL FINANCIAL LIABILITIES 16,912 21,837 16,912 21,837

The following methods and assumptions are used to determine the net fair values of fi nancial assets and liabilities:

Recognised Financial Instruments

Cash at Bank, Deposits at call, Deposits - other, Receivables, Creditors These fi nancial instruments have a short term to maturity. Accordingly, it is considered that their carrying amounts refl ect fair values.

Long Term Deposits and Long Term Borrowings The net fair values of these monetary fi nancial assets and fi nancial liabilities are estimated using discounted cash fl ow analysis, based on current interest rates for similar assets and liabilities with similar risk profi les. These fi nancial instruments are carried at an amount in excess of their net fair value but have not been written down as they will be repaid in accordance with the agreed terms on maturity.

Unlisted Shares Since there is no market for these shares, they are carried at nominal cost.

Unrecognised Financial Instruments none


109

27. ACQUITTAL OF AUSTRALIAN GOVERNMENT FINANCIAL ASSISTANCE Parent Entity (University) Only

COMMONWEALTH INDIGENOUS WORKPLACE WORKPLACE GRANTS SUPPORT EQUITY REFORM PRODUCTIVITY SCHEME# FUND PROGRAMMES* PROGRAMME PROGRAMME 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

27.1 DEST - CGS AND OTHER DEST GRANTS Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programmes) 68,937 66,676 110 113 273 260 1,038 1,003 200 -

Net accrual adjustments - 10 - - - - - - - -

Revenue for the period 68,937 66,686 110 113 273 260 1,038 1,003 200 -

Surplus/(Defi cit) from previous year - - 114 - 192 - - - - -

Total revenue including accrued revenue 68,937 66,686 224 113 465 260 1,038 1,003 200 -

Less expenses including accrued expenses (68,937) (66,686) (114) 1 (150) (68) (1,038) (1,003) (200) -

SURPLUS/(DEFICIT) FOR REPORTING PERIOD - - 110 114 315 192 - - - -

# Includes the basic CGS grant amount, CGS-Regional Loading, CGS-Enabling Loading and transition funding. * Includes Higher Education Equity Programme and Students with Disabilities Programme. CAPITAL SUPERANNUATION COLLABORATION & TOTAL DEVELOPMENT PROGRAMME STRUCTURAL REFORM POOL PROGRAMME 2006 2005 2006 2005 2006 2005 2006 2005 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programmes) 1,451 477 3,263 3,438 1,015 112 76,287 72,079

Net accrual adjustments - - - - - - - 10

Revenue for the period 1,451 477 3,263 3,438 1,015 112 76,287 72,089

Surplus/(Defi cit) from previous year 1,295 1,057 - - 78 - 1,679 1,057

Total revenue including accrued revenue 2,746 1,534 3,263 3,438 1,093 112 77,966 73,146 Less expenses including accrued expenses (9) (239) (3,263) (3,438) (407) (34) (74,118) (71,467)

SURPLUS/(DEFICIT) FOR REPORTING PERIOD 2,737 1,295 - - 686 78 3,848 1,679


110

HECS-HELP FEE-HELP OS-HELP TOTAL (AUST. GOVERNMENT PAYMENTS ONLY)

2006 2005 2006 2005 2006 2005 2006 2005 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000PARENT ENTITY (UNIVERSITY) ONLY

27.2 HIGHER EDUCATION LOAN PROGRAMMES Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programmes) 44,765 42,749 2,083 3,260 173 250 47,021 46,259

Net accrual adjustments 2,655 (1,762) 700 (617) 5 (93) 3,360 (2,472)

Revenue for the period 47,420 40,987 2,783 2,643 178 157 50,381 43,787

Surplus/(Defi cit) from previous year - - - - - - - -

Total revenue including accrued revenue 47,420 40,987 2,783 2,643 178 157 50,381 43,787

Less expenses including accrued expenses (47,420) (40,987) (2,783) (2,643) (178) (157) (50,381) (43,787)

SURPLUS/(DEFICIT) FOR REPORTING PERIOD - - - - - - - -

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 – 27. ACQUITTAL OF AUSTRALIAN GOVERNMENT CONTINUED

111

AUSTRALIAN INTERNATIONAL COMMONWEALTH COMMONWEALTH TOTAL POSTGRADUATE POSTGRADUATE EDUCATION COST ACCOMMODATION AWARDS RESEARCH SCHOLARSHIPS SCHOLARSHIPS SCHOLARSHIPS 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000Parent Entity (University) Only 27.3 SCHOLARSHIPS Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programmes) 813 788 42 12 676 404 911 760 2,442 1,964

Net accrual adjustments - - - - - - - - - -

Revenue for the period 813 788 42 12 676 404 911 760 2,442 1,964

Surplus/(Defi cit) from previous year 68 22 (60) 153 16 - 90 - 114 175

Total revenue including accrued revenue 881 810 (18) 165 692 404 1,001 760 2,556 2,139

Less expenses including accrued expenses (759) (742) (156) (225) (622) (388) (882) (670) (2,419) (2,025)

SURPLUS/(DEFICIT) FOR REPORTING PERIOD 122 68 (174) (60) 70 16 119 90 137 114

INSTITUTIONAL RESEARCH SYSTEMIC RESEARCH TOTAL GRANTS TRAINING INFRASTRUCTURE INFRASTRUCTURE SCHEME SCHEME INITIATIVE BLOCK GRANTS 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’00027.4 DEST RESEARCH

Financial assistance received in CASH during the reportingperiod (total cash received from the Australian Government for the Programmes) 2,039 1,962 5,238 5,340 - - 827 706 8,104 8,008

Net accrual adjustments - - - - - - - - - -

Revenue for the period 2,039 1,962 5,238 5,340 - - 827 706 8,104 8,008

Surplus/(Defi cit) from previous year 71 1,036 - - - - - 89 71 1,125

Total revenue including accrued revenue 2,110 2,998 5,238 5,340 - - 827 795 8,175 9,133

Less expenses including accrued expenses (2,110) (2,927) (5,238) (5,340) - - (827) (795) (8,175) (9,062)

SURPLUS/(DEFICIT) FOR REPORTING PERIOD - 71 - - - - - - - 71


112

PROJECTS TOTAL 2006 2005 2006 2005 $’000 $’000 $’000 $’000

Parent Entity (University) Only 27.5 AUSTRALIAN RESEARCH COUNCIL GRANTS (a) Discovery

Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programmes) 715 712 715 712

Net accrual adjustments - - - -

Revenue for the period 715 712 715 712

Surplus/(Defi cit) from previous year 278 32 278 32

Total revenue including accrued revenue 993 744 993 744

Less expenses including accrued expenses (517) (466) (517) (466)

SURPLUS/(DEFICIT) FOR REPORTING PERIOD 476 278 476 278

SPECIAL RESEARCH LINKAGE (SPIRIT) TOTAL INITIATIVES PROJECTS 2006 2005 2006 2005 2006 2005 $’000 $’000 $’000 $’000 $’000 $’00027.5 AUSTRALIAN RESEARCH COUNCIL GRANTS (b) Linkages

Financial assistance received in CASH during the reporting period (total cash received from the Australian Government for the Programmes) 36 36 497 711 533 747

Net accrual adjustments - - - - - -

Revenue for the period 36 36 497 711 533 747

Surplus/(Defi cit) from previous year 32 - 289 379 321 379

Total revenue including accrued revenue 68 36 786 1,090 854 1,126

Less expenses including accrued expenses (50) (4) (168) (801) (218) (805)

SURPLUS/(DEFICIT) FOR REPORTING PERIOD 18 32 618 289 636 321


113

THE ANNUAL REPORT OF VICTORIA UNIVERSITY IS PREPARED IN ACCORDANCE WITH:

FMA Financial Management Act 1994 RUG Victorian Government response to the Review of UniversityGovernance

FRD Financial Reporting Directions ESOS Education Services for Overseas Students Act 2000

SD Standing Directors of the Minister for Finance issued underthe Financial Management Act 1994 DEST Department of Education, Science and Training

TEA 1993 Tertiary Education Act 1993 WPA01 Whistleblowers Protection Act 2001

PAEC Decision of Public Accounts and Estimates Committee oParliament

THIS INDEX WAS PREPARED TO FACILITATE IDENTIFICATION OF COMPLIANCE WITH STATUTORY DISCLOSURE REQUIREMENTS

REPORT OF OPERATIONS

Clause Disclosure Page(s)

FRD 10 Compliance Index 113–114

FRD 11 Disclosure of ex-gratia payments N/A

FRD 21(1)(a), Disclosure of responsible persons and

(b), (c), (d) executive offi cers remuneration 98–103

FRD 21(2)(a), (b), (c) Disclosure of remuneration of executive offi cers 99–102

SD 4.2(g) (h) General and fi nancial information 2–112

SD 4.2 (j) Signature of Chancellor or nominee 2 Date of meeting at which Council approved annual report, or date of delegated approval

GENERAL INFORMATION


FRD 22A Manner in which the university was established 4, 8

FRD 22A Relevant Minister 8

FRD 22A Objectives, functions, powers and duties 8

FRD 22A Nature and range of services, people and 3–5

communities served 13–21

FRD 22A Administrative structure 11

FRD 22A Members of the Council AOR*, 9, 10, 11, 46, 52

FRD 22A Occupants of senior offi ces and areas of responsibility 11

FRD 22A Organisational chart 9–12

FRD 22A Workforce data for current and previous year;

statement on application of merit and equity

principles 34–36

FRD 22A Statement on Occupational Health and

Safety matters 36

FRD 22A Industry and Council members and senior offi cers 52

FINANCIAL YEAR INFORMATION


FRD 22A Summary of the fi nancial results with

comparative results for the preceding four years 60

FRD 22A Summary of signifi cant changes in fi nancial position 58–60

FRD 22A Operational objectives and performance including AOR*

signifi cant activities and achievements A+ (2,3)

13–29, 34, 35, 54, 55, 59

FRD 22A Major changes or factors affecting the achievement

of operational objectives 6

FRD 22A Events subsequent to balance date which may

have a signifi cant effect on operations in

subsequent years 103

FRD 22A Consultancies in excess of $100,000 44

FRD 22A Consultancies less than $100,000 44

AOR* Available on request (subject to the provision of the FOI Act)

A+ See publication, VU Achievements 2006.

COMPLIANCEINDEX OF DISCLOSUREREQUIREMENTS 2006

114

COMPLIANCE INDEX OF DISCLOSURE 2006 CONTINUED

OTHER RELEVANT INFORMATION


FRD 22A Application and operation of the Freedom of

Information Act 1982 49, 50

FRD 22A Compliance with the Building Act 1993 51

FRD 22A Compliance with the Whistleblowers

Protection Act 2001 (section 104) 45

FRD 22A Statement that information listed in Appendix 1 is

available on request to the relevant Minister 50

FRD 22A Implementation and compliance with National

Competition Policy 52

FRD 22A Summary of environmental performance 51

ADDITIONAL INFORMATION ON REQUEST SUBJECT TO THE PROVISION OF THE FOI ACT


FRD 22A Declarations of pecuniary interests AOR*, 50

FRD 22A Shares held by senior offi cers 50, 100

FRD 22A Publications AOR*, 50

FRD 22A Changes in prices, fees, charges, rates and levies 40, 50

FRD 22A Major external reviews AOR*, 50, A+ (2, 16)

FRD 22A Major research and development activities AOR*, 50,

A+ (2–4, 8–17)

FRD 22A Overseas visits AOR*, 50

FRD 22A Promotional, public relations and marketing activities

AOR*, 50, 59, A+ (14–16)

FRD 22A Occupational Health and Safety matters AOR*, 36–39, 50

FRD 22A Industrial relations, accidents and disputes AOR*

FRD 22A List of major committees sponsored by the University

AOR*, 8, 9, 50

ADDITIONAL INFORMATION


s. 12I TEA 1993 Compulsory non-academic fees, subscriptions

and charges 40, 41

PAEC (December 1997) International initiatives and strategies 26–32, A+ (2, 12)

RUG Statement that public funds allocated to the purposes specifi ed by the Government or other

public funding body 64, 65

RUG Council’s risk management strategy 42

RUG Summary table of fi nancial performance of the

University’s associates and commercial ventures 42, 43

ESOS Compliance with ESOS Act 2000 52

DEST Internal grievance and complaint procedures and complaints made to and investigated by

the Ombudsman 45, 51

DEST Website address for the current and previous

Annual Reports 50

FMA 49(A), (B), (C), (D), (E) FINANCIAL STATEMENTS

Clause Disclosure Page(s)SD 4.2 (a) Prepared in accordance with Australian Accounting Standards (AAS and AASB standards) and other mandatory professional reporting requirements (including Urgent Issues Group Consensus Views and Statements of Accounting Concepts), Financial Reporting Directions and Business Rules 64, 65, 71

SD 4.2 (b) Comprised Income Statement and Balance Sheet, Cash Flows Statement and Notes to the fi nancial statements 67–112

SD 4.2 (b) Income Statement 67

SD 4.2 (b) Balance Sheet 68

SD 4.2 (b) Statement of Recognised Income and Expense 69

SD 4.2 (b) Cash Flow Statements 70

SD 4.2 (b) Notes to the Financial Statements 71–112

SD 4.2(c) Signed and dated by the Accountable Offi cer, CFAO

and a member of the Responsible Body 64, 65

SD 4.2 (d) Expressed to nearest thousand dollars 78

4.2 (d) $10,000,000, the amounts shown in the Financial Statements may be expressed by reference to the

nearest $1,000 79

4.2 (d) $1,000,000,000 the amounts shown in the Financial Statements may be expressed by reference to the

nearest $100,000 79

SD 4.2 (e) Reviewed and recommended by the Audit Committee or Responsible body prior to fi nalisation

and submission 2, 64

STATEMENT OF FINANCIAL PERFORMANCE


DEST The fi nancial statements must comply with the Financial Statement Guidelines for Australian Higher Education Providers for 2005

Reporting Period issued by DEST 64–112

AOR* Available on request (subject to the provision of the FOI Act)

A+ See publication, VU Achievements 2006.

NOTE: Victoria University’s VU Achievements 2006 is a companion to the VU Annual Report 2006. VU Achievements 2006 contains a number of disclosures within the State Government of Victoria’s 2006 annual reporting compliance FRD 22A as well as compliance PAEC (December 1997). All other required 2006 compliance disclosures are contained in the VU Annual Report 2006.

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