Financial Report 2015
UNSW Australia
Never Stand Still
2015
Annual
Report
UNSW’s Financial Results
UNSW • Annual Report 2015
1
Contents
UNSW Annual Report 2015 – Volume 2
2
03
Council Report
09
Statement by Members of Council
10
Independent Auditor’s Report
12
2015 Financial Report
13
Income statement
14
Statement of comprehensive income
15
Statement of financial position
16
Statement of changes in equity
17
Statement of cash flows
18
Notes to the financial statements
105
Supplementary Information
109
2015 Statutory Report
110
Access to Information and Privacy
111
2015 GIPAA Access Applications
113
Disclosure Requirements
114
Statistical Information on EEO Target Groups
UNSW • Annual Report 2015
Council Report
31 December 2015
The members of The University of New South Wales Council present their report on the consolidated
entity consisting of UNSW Australia (The University of New South Wales), referred to as “UNSW” and
the entities it controlled at the end of or during the year ended 31 December 2015.
UNSW is governed by a Council led by the Chancellor under the University of New South Wales Act 1989 (“The
Act”). The Act was amended during 2012 to adopt new governance provisions under The Universities Governing
Bodies Act 2011.
Members
The following persons were the Council members of UNSW at 31 December 2015:
Ex-Officio Council Members
• Mr David M. Gonski AC
• Professor Ian Jacobs
• Professor Prem Ramburuth
Ministerial Appointments
• Mr Brian Long
• Ms Jillian S. Segal AM
Elected Council Members
• Mr Billy Bruffey
• Associate Professor Dorottya Fabian
• Ms Emma Lovell
• Mr Aaron Magner
• Scientia Professor John Piggott
Members Appointed by Council
• Dr Jennifer Alexander
• Ms Maxine Brenner
• Mr Nicholas Carney
• Mr Matthew Grounds
• Mr Warwick Negus
Former Member
Professor Frederick G. Hilmer AO was a Council member from the beginning of the year and completed his term
of office on 31 January 2015.
UNSW • Annual Report 2015
3
Council Report
31 December 2015
Meetings of Council and Committees
The number of meetings of the members of The University of New South Wales Council and each committee
held during the year ended 31 December 2015, and the numbers of meetings attended by each member were:
MEMBER
COUNCIL MEETINGS
A
B
Mr David M. Gonski AC
7
7
Professor Ian Jacobs
7
7
Professor Prem Ramburuth
7
7
Mr Brian Long
4
7
Ms Jillian S. Segal AM
6
7
Mr Billy Bruffey
6
7
Associate Professor Dorottya Fabian
6
7
Ms Emma Lovell
5
7
Mr Aaron Magner
7
7
Scientia Professor John Piggott
6
7
Dr Jennifer Alexander
7
7
Ms Maxine Brenner
5
7
Mr Nicholas Carney
6
7
Mr Matthew Grounds
5
7
Mr Warwick Negus
6
7
Ex-Officio Council Members
Ministerial Appointments
Elected Council Members
Members Appointed by Council
Former Member
Professor Frederick G. Hilmer AO1
A = Number of meetings attended as a member.
B = Number of meetings held during the time the member held office during the year.
1
4
Term ended 31 January 2015.
UNSW • Annual Report 2015
Council Report
31 December 2015
MEETINGS OF COMMITTEES
AUDIT
FINANCE
A
NOMINATIONS &
REMUNERATION
FINANCE
B
A
B
A
B
Mr David M. Gonski AC1
4
4
3
3
Professor Ian Jacobs#2
4
4
2
3
Professor Prem Ramburuth
4
4
2
3
4
4
1
3
HONORARY
DEGREES
RISK
A
B
A
B
3
4
2
2
2
2
2
2
0
2
Associate Professor Dorottya Fabian
1
2
Ms Emma Lovell
1
2
Professor Louise Chappell**
2
2
Emeritus Professor Richard Henry
AM*
2
2
Ex-Officio Council Members
Ministerial Appointments
Mr Brian Long
5
5
Ms Jillian S. Segal AM3
4
5
4
4
2
4
Elected Council Members
Mr Billy Bruffey
Mr Aaron Magner
4
5
Scientia Professor John Piggott
1
5
3
4
Members Appointed by Council
Dr Jennifer Alexander
Ms Maxine Brenner
2
3
4
Mr Warwick Negus
3
4
4
4
4
4
4
4
4
3
Mr Nicholas Carney
Mr Matthew Grounds
3
3
3
1
1
Former Member
Professor Frederick G. Hilmer AO##
External Committee Members
Mr Daniel Gauchat*
Mr Bruce Moore*
4
5
Mr George Sutton*
Mr Michael Wright*
3
5
Academic Board Nominees
A = Number of meetings attended as a member.
B = Number of meetings held during the time the member held office
during the year.
* Not a member of Council
** Commenced as a member of the Honorary Degrees Committee on
23 February 2015.
# Term commenced 2 February 2015.
## Term ended 31 January 2015.
UNSW • Annual Report 2015
As Chancellor, is ex officio a member of all Council committees and
has the right but not the obligation to attend all meetings.
2
As Vice-Chancellor, is ex officio a member of all Council committees
except the Audit Committee and has the right but not the obligation to
attend all meetings.
3
As Deputy Chancellor, is ex officio a member of all Council
committees and has the right but not the obligation to attend all
meetings.
1
5
Council Report
31 December 2015
Principal Activities
During the year, the principal continuing activities of the consolidated entity consisted of:
• The provision of education and research facilities of university standard;
• The encouragement of the dissemination, advancement, development and application of knowledge informed
by free inquiry;
• The provision of courses of study or instruction across a range of fields, and the carrying out of research, to
meet the needs of the community;
• The participation in public discourse;
• The conferring of degrees, including those of Bachelor, Master and Doctorate;
• The provision of teaching and learning that engage with advanced knowledge and inquiry;
• The development of governance, procedural rules, admission policies, financial arrangements and quality
assurance processes that are underpinned by the values and goals of UNSW’s core activities, and that are
sufficient to ensure the integrity of all UNSW programs.
Review of Operations
The operating result using the agreed Group of Eight methodology is a loss of $1.8m.
The operating result is driven by the university’s core activities of teaching and research. Consequently, funding
from non-core operating activities, those restricted for specific purposes, as well as the extraordinary items
referred to below are excluded as these funds are not available to support the university’s day-to-day operations.
CONSOLIDATED
2015
2014
$’000
$’000
Total revenue and income
1,761,317
1,747,147
Employee costs
(964,009)
(942,056)
Other expenses
(719,804)
(675,041)
77,504
130,050
Accounting result
Restricted for specific purposes:
Philanthropic funds
Capital grants
Specific purpose grants
(17,668)
(16,670)
(6,720)
(20,776)
(24,382)
(11,576)
(30,509)
(52,017)
-
(18,309)
(1,775)
10,702
Non-core operating:
Investment funds
Extraordinary items¹
Operating surplus/(loss)
2
Recognition of the Commonwealth and NSW Governments’ agreement to fund the State Authorities
Non-contributory Superannuation Scheme (SANCS) liabilities.
2
The operating loss in 2015 includes a one-off accounting adjustment of $13m relating to systems valuation.
Without this adjustment, the Operating result would be an $11m surplus.
1
6
UNSW • Annual Report 2015
Council Report
31 December 2015
The consolidated group’s operating result for 2015 has decreased by $12m compared to 2014.
Total assets of the consolidated group in 2015 increased by $135m to $4.4b while net assets increased by
$113m to $2.4b in 2015. This is mainly attributed to an increase in fixed assets and intangibles.
The consolidated group’s cash balances including cash and cash equivalents and current portion of heldto-maturity investments increased by $59m from $182m in 2014 to $241m in 2015. The cash balances held
by the consolidated group forms part of UNSW’s working capital and is used to settle current liabilities,
capital commitments for major capital works, research grants held as income in advance, and various other
commitments due within one year.
Significant Changes in the State of Affairs
There were no significant changes in the State of Affairs of UNSW or any of its subsidiaries during the year and
up to the date of this report.
Matters Subsequent to the End of the Financial Year
There were no significant matters subsequent to the end of the financial year that require disclosure.
Likely Developments and Expected Results of Operations
The University has released the UNSW 2025 Strategic Plan, which will influence future priorities and directions.
Environmental regulations
The significant environmental regulations to which UNSW is subject are as follows:
- Environment Protection and Biodiversity Conservation Act 1999 (Cth)
- Environmental Planning and Assessment Act 1979 (NSW)
- Environmentally Hazardous Chemicals Act 1985 (NSW)
- Heritage Act 1977 (NSW)
- National Greenhouse and Energy Reporting Act 2007 (Cth)
- Native Vegetation Act 2003 (NSW)
- Noxious Weeds Act 1993 (NSW)
- Ozone Protection Act 1989 (NSW)
- Protection of the Environment Operations (POEO) Act 1997 (NSW)
- Threatened Species Conservation Act 1995 (NSW)
- Waste Avoidance and Resource Recovery Act 2001 (NSW)
- Water Management Act 2000 (NSW)
- Water Management Amendment Act 2010 (NSW).
UNSW has not been issued with any environmental licenses although some of the activities, in particular
research activities, involving hazardous materials and dangerous goods, as well as construction activities and
grounds maintenance, involve risks that have the potential to cause material environmental harm. Appropriate
and proportionate emphasis is given to identifying, controlling and minimising these risks within UNSW’s
environmental management system and the University’s risk management framework.
UNSW • Annual Report 2015
7
Council Report
31 December 2015
Insurance of officers
UNSW obtains commercial insurance to indemnify persons who serve on UNSW Boards and Committees and
on Boards and Committees of all entities in the Group. Coverage also extends to UNSW appointees who serve
on the Boards of other entities, as designated representatives of UNSW, and who are not otherwise indemnified.
This insurance provides funds to defend each officer and Board appointee of UNSW against claims from third
parties which result from actual or alleged wrong acts, as permitted by law.
The premium for this commercial insurance is paid for by UNSW, and UNSW self-insures all claims expenses
which fall below the policy deductible or for liabilities which are excluded or not covered by the commercial
insurance contract.
Proceedings on behalf of UNSW
There are no material proceedings against or on behalf of UNSW or its controlled entities.
This report is made in accordance with a resolution of the members of UNSW.
Mr David M. Gonski AC
Chancellor, 30 March 2016
8
UNSW • Annual Report 2015
Statement by Members of Council
Pursuant to Section 41C (1B), (1C) and (1D) of the Public Finance and Audit Act 1983 (as amended) and clause
7 of the Public Finance and Audit Regulation 2015, we state that:
1.
The financial report exhibits a true and fair view of the financial position as at 31 December 2015 and the
financial performance for the year then ended for the University and Controlled Entities; and
2.
The financial report for the year ended 31 December 2015 has been prepared in accordance with:
(a) the provisions of the Public Finance and Audit Act 1983, Public Finance and Audit Regulation 2015
and the Commonwealth Department of Education and Training Financial Statement Guidelines for
Australian Higher Education Providers for the 2015 Reporting Period; and
(b) Australian Accounting Standards, Australian Accounting Standards Board Interpretations and other
mandatory professional reporting requirements.
3.
As at the date of the statement, we are not aware of any circumstances that would render any particulars
included in the financial report to be misleading or inaccurate.
As required by the Financial Statement Guidelines for Australian Higher Education Providers for the 2015
Reporting Period issued by the Commonwealth Department of Education and Training, we also certify to the best
of our knowledge and belief that all the Australian Government Financial Assistance expended by the University
during the year ended 31 December 2015 was expended for the purposes for which it was intended and that
The University of New South Wales has complied with applicable legislation, contracts, agreements and program
guidelines in making that expenditure.
Signed in accordance with a resolution of Council.
\
Professor Ian Jacobs
President and Vice-Chancellor
Mr David M. Gonski AC
Chancellor
30 March 2016
UNSW • Annual Report 2015
9
Independent Auditor’s Report
10
UNSW • Annual Report 2015
Independent Auditor’s Report
31 December 2015
UNSW • Annual Report 2015
11
2015
Financial
Report
12
UNSW • Annual Report 2015
Income statement
For the year ended 31 December 2015
The University of New South Wales
Income statement
For the year ended 31 December 2015
Consolidated
Note
Income from continuing
operations
Australian Government financial
assistance
Australian Government grants
HELP - Australian Government
payments
State and local government financial
assistance
HECS-HELP - Student payments
Fees and charges
Investment revenue
Royalties, trademarks and licences
Consultancy and contracts
Other revenue
Gains on disposal of assets
Share of profit or loss on investments
accounted for using the equity
method
Other investment income
Other income
2014
$'000
$'000
2014
$'000
$'000
698,850
718,083
698,850
718,083
2(b)
203,548
197,865
203,548
197,865
3
26,303
31,197
629,492
37,822
6,752
67,135
36,890
66
27,867
31,122
565,576
40,267
5,520
62,549
36,222
117
26,303
31,197
522,857
36,864
4,701
60,246
69,906
49
27,471
31,122
473,357
41,261
6,164
55,852
56,493
105
2,903
6,569
13,790
6,725
23,373
31,861
5,521
11,769
21,210
29,944
1,761,317
1,747,147
1,671,811
1,658,927
959,439
143,763
34,361
2,485
14,967
458
4,570
523,778
942,056
135,230
34,006
2,832
2,741
648
410
499,119
906,447
141,546
32,968
2,483
13,287
370
4,570
495,337
894,119
133,338
32,730
2,832
1,442
478
410
468,080
1,683,821
1,617,042
1,597,008
1,533,429
4
5
6
7
17
5
7
8
9
10
11
12
8
13
Total expenses from continuing
operations
Net result before income tax
Income tax (expense)/benefit
2015
2(g)
Total income from continuing
operations
Expenses from continuing
operations
Employee related expenses
Depreciation and amortisation
Repairs and maintenance
Borrowing costs
Impairment of assets
Loss on disposal of assets
Deferred superannuation expense
Other expenses
Parent
2015
77,496
8
130,105
(55)
74,803
-
125,498
-
Net result after income tax for the
period
77,504
130,050
74,803
125,498
Net result from continuing
operations after income tax for the
period attributable to members of
The University of New South
Wales
77,504
130,050
74,803
125,498
14
The above income statement should be read in conjunction with the accompanying notes.
2
UNSW • Annual Report 2015
13
Statement of comprehensive income
For the year ended 31 December 2015
The University of New South Wales
Statement of comprehensive income
For the year ended 31 December 2015
Consolidated
Note
Net result after income tax for the
period
Items that may be reclassified to profit or
loss
Net losses on revaluation of available-forsale financial assets
Exchange differences on translation of
foreign operations
28(a)
28(a)
Parent
2015
2014
2015
$'000
$'000
$'000
77,504
130,050
74,803
(18,557)
(10,145)
(17,773)
108
40
-
2014
$'000
125,498
(9,843)
-
(18,449)
(10,105)
(17,773)
(9,843)
28(a)
61,487
64,647
61,487
64,647
28(b)
(7,165)
(18,419)
(7,159)
(17,604)
Total
54,322
46,228
54,328
47,043
Total other comprehensive income for
the year, net of tax
Total
Items that will not be reclassified to profit
or loss
Net gains on revaluation of property,
plant and equipment
Net actuarial losses on defined benefit
superannuation plans
35,873
36,123
36,555
37,200
Total comprehensive income for the
year
113,377
166,173
111,358
162,698
Total comprehensive income
attributable to members of The
University of New South Wales
113,377
166,173
111,358
162,698
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
3
14
UNSW • Annual Report 2015
Statement of financial position
As at 31 December 2015
The University of New South Wales
Statement of financial position
31 December 2015
Consolidated
Parent
2015
2014
2015
$'000
$'000
$'000
$'000
217,739
170,068
1,146
24,057
101,499
147,774
1,155
81,586
128,933
195,265
24,057
38,710
161,300
81,586
413,010
332,014
348,255
281,596
16
1,305,437
1,332,650
1,305,383
1,332,592
17
18
16,139
449,526
13,988
442,208
445,635
436,921
20
19
22
2,157,448
8,851
67,190
2,087,252
8,247
65,993
2,150,321
8,851
64,243
2,083,752
8,247
62,930
Total non-current assets
4,004,591
3,950,338
3,974,433
3,924,442
Total assets
4,417,601
4,282,352
4,322,688
4,206,038
105,801
761
303,388
451
100,885
107,119
625
270,987
447
89,689
93,827
761
296,409
436
51,541
96,706
625
264,550
447
54,893
511,286
468,867
442,974
417,221
38,341
1,452,799
10
19,298
39,102
1,469,323
19
22,551
38,341
1,450,255
10
19,298
39,102
1,467,144
19
22,100
Total non-current
liabilities
1,510,448
1,530,995
1,507,904
1,528,365
Total liabilities
2,021,734
1,999,862
1,950,878
1,945,586
Net assets
2,395,867
2,282,490
2,371,810
2,260,452
751,334
1,644,533
708,551
1,573,939
743,400
1,628,410
699,941
1,560,511
2,395,867
2,282,490
2,371,810
2,260,452
Note
2014
Assets
Current assets
Cash and cash equivalents
Receivables
Inventories
Other financial assets
15
16
18
Total current assets
Non-current assets
Receivables
Investments accounted for
using the equity method
Other financial assets
Property, plant and
equipment
Investment properties
Intangible assets
Liabilities
Current liabilities
Trade and other payables
Borrowings
Provisions
Other financial liabilities
Other liabilities
23
24
25
26
27
Total current liabilities
Non-current liabilities
Borrowings
Provisions
Other financial liabilities
Other liabilities
Equity
Reserves
Retained earnings
Total equity
24
25
26
27
28
28
The above statement of financial position should be read in conjunction with the accompanying notes.
4
UNSW • Annual Report 2015
15
Statement of changes in equity
For the year ended 31 December 2015
The University of New South Wales
Statement of changes in equity
For the year ended 31 December 2015
Parent
Balance at 1 January 2014
Net result for the period
Net gains on revaluation of property, plant and equipment
Net losses on revaluation of available-for-sale financial assets
Net actuarial losses on defined benefit superannuation plans
Transfers from reserves
Total comprehensive income
Retained
Earnings
Reserves
Total
$'000
$'000
$'000
1,452,657
125,498
(17,604)
(40)
645,097
64,647
(9,843)
40
2,097,754
125,498
64,647
(9,843)
(17,604)
-
107,854
54,844
162,698
Balance at 31 December 2014
1,560,511
699,941
2,260,452
Balance at 1 January 2015
1,560,511
74,803
(7,159)
255
699,941
61,487
(17,773)
(255)
2,260,452
74,803
61,487
(17,773)
(7,159)
-
Net result for the period
Net gains on revaluation of property, plant and equipment
Net losses on revaluation of available-for-sale financial assets
Net actuarial losses on defined benefit superannuation plans
Transfers from reserves
Total comprehensive income
67,899
43,459
111,358
Balance at 31 December 2015
1,628,410
743,400
2,371,810
Consolidated
Balance at 1 January 2014
Retained
Earnings
Reserves
$'000
$'000
Total
$'000
1,462,348
130,050
(18,419)
(40)
653,969
64,647
(10,145)
40
40
2,116,317
130,050
64,647
(10,145)
40
(18,419)
-
Total comprehensive income
111,591
54,582
166,173
Balance at 31 December 2014
1,573,939
708,551
2,282,490
Balance at 1 January 2015
1,573,939
77,504
(7,165)
255
708,551
61,487
(18,557)
108
(255)
2,282,490
77,504
61,487
(18,557)
108
(7,165)
-
Net result for the period
Net gains on revaluation of property, plant and equipment
Net losses on revaluation of available-for-sale financial assets
Exchange differences on translation of foreign operations
Net actuarial losses on defined benefit superannuation plans
Transfers from reserves
Net result for the period
Net gains on revaluation of property, plant and equipment
Net losses on revaluation of available-for-sale financial assets
Exchange differences on translation of foreign operations
Net actuarial losses on defined benefit superannuation plans
Transfers from reserves
Total comprehensive income
70,594
42,783
113,377
Balance at 31 December 2015
1,644,533
751,334
2,395,867
The above statement of changes in equity should be read in conjunction with accompanying notes.
5
16
UNSW • Annual Report 2015
Statement of cash flows
For the year ended 31 December 2015
The University of New South Wales
Statement of cash flows
For the year ended 31 December 2015
Consolidated
Note
Cash flows from operating activities:
Australian Government grants
OS-HELP (net)
Superannuation Supplementation
State Government grants
HECS-HELP - Student payments
Receipts from student fees and other
customers
Payments to suppliers and employees
Contributions to related parties
Investment income received
Contribution from related parties
Interest received
Interest and other costs of finance paid
GST recovered
Income taxes paid
Net cash provided by operating activities
2(h)
2(h)
Cash flows from investing activities:
Proceeds from sale of property, plant and
equipment
Proceeds from sale of available-for-sale
and other financial assets
Payments for property, plant and
equipment
Payments for available-for-sale and other
financial assets
Payments for intangible assets
Payments for investment properties
Net cash used in investing activities
Cash flows from financing activities:
Repayment of borrowings
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at the
beginning of the financial year
Cash and cash equivalents at the end
of the financial year
2015
2014
$'000
$'000
$'000
918,310
408
61,633
25,093
31,046
754,359
(1,605,279)
25,433
10,120
(2,485)
29,131
(4)
34
15
Parent
2015
924,598
2,897
29,077
31,360
721,277
(1,530,851)
32,138
6,476
(2,933)
35,300
(55)
918,310
408
61,633
25,304
31,046
590,508
(1,490,064)
(7,352)
26,047
26,431
8,549
(2,483)
28,959
-
2014
$'000
924,598
2,897
28,641
31,360
605,702
(1,443,018)
(6,071)
34,441
15,137
5,165
(2,933)
35,534
-
247,765
249,284
217,296
231,453
222
189
194
176
465,714
354,790
462,448
346,644
(146,987)
(250,087)
(141,965)
(249,157)
(427,823)
(21,425)
(601)
(301,571)
(22,571)
(8,247)
(427,205)
(19,319)
(601)
(299,581)
(20,177)
(8,247)
(130,900)
(227,497)
(126,448)
(230,342)
(625)
(17,368)
(625)
(17,368)
(625)
(17,368)
(625)
(17,368)
116,240
4,419
90,223
(16,257)
101,499
97,080
38,710
54,967
217,739
101,499
128,933
38,710
The above statement of cash flows should be read in conjunction with the accompanying notes.
6
UNSW • Annual Report 2015
17
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
18
Contents
Summary of significant accounting policies
Australian Government financial assistance including Australian Government loan programs
(HELP)
State and Local Government financial assistance
Fees and charges
Investment revenue and other investment income
Consultancy and contracts
Other revenue and income
Employee related expenses
Depreciation and amortisation
Repairs and maintenance
Borrowing costs
Impairment of assets
Other expenses
Income tax
Cash and cash equivalents
Receivables
Investments accounted for using the equity method
Other financial assets
Investment properties
Property, plant and equipment
Public Private Partnerships (PPP)
Intangible assets
Trade and other payables
Borrowings
Provisions
Other financial liabilities
Other liabilities
Reserves and retained earnings
Key management personnel disclosures
Remuneration of auditors
Contingencies
Commitments
Subsidiaries
Reconciliation of net result after income tax to net cash provided by operating activities
Financial risk management
Fair value measurements
Defined benefit plans
Acquittal of Australian Government financial assistance
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UNSW • Annual Report 2015
7
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements
include separate financial statements for UNSW Australia (The University of New South Wales), referred to as
"UNSW", an individual entity (the "parent entity") and the consolidated entity (the "Group") consisting of the University
and its controlled entities.
(a)
Basis of preparation
These general purpose financial statements have been prepared on an accrual basis in accordance with the
requirements of the Public Finance and Audit Act 1983 and Public Finance and Audit Act Regulations 2015, the
Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards
Board, Australian Accounting Interpretations and the Higher Education Support Act 2003 (Financial Statement
Guidelines) and other State/Australian Government legislative requirements.
UNSW is a not-for-profit entity and the financial statements and notes of UNSW have been prepared on that
basis. Some of the Australian Accounting Standards requirements for not-for-profit entities are inconsistent with
the International Financial Reporting Standards (IFRSs) requirements.
Date of authorisation for issue
The financial statements were authorised for issue on 30 March 2016 by the Council.
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the
revaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments)
at fair value through the income statement and certain classes of property, plant and equipment.
Critical accounting estimates
The preparation of financial 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 Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the financial statements are disclosed below:
(i) Superannuation liability - Deferred Government Receivables
UNSW contributes to three State superannuation schemes, namely the State Authorities Superannuation
Scheme (SASS), the State Superannuation Scheme (SSS) and the State Authorities Non-contributory
Superannuation Scheme (SANCS).
On 5 December 2014, a Memorandum of Understanding (MOU) was signed between the Commonwealth and
NSW Governments providing confirmation of the governments' intention to fund the superannuation liabilities
associated with these schemes (including contributions tax and other taxes) subject to the terms set out in the
MOU.
An amendment to the Other Grants Guidelines (Education) 2012, made under the Higher Education Support
Act 2003 (HESA), as well as a grant made under those Guidelines (Grant), enables the Commonwealth to
provide funds to UNSW.
Accordingly, the liabilities have been recognised in the statement of financial position under provisions with
corresponding assets recognised under receivables. The recognition of both the asset and liability does not
affect the year end net asset position and net result of UNSW for those schemes, except as otherwise
disclosed.
The MOU stipulates that UNSW receives funding from governments when assets in the State Super reserve
accounts are run down to a one year asset buffer level. Accordingly, a proportion of both the liability and
receivable is recognised as current, representing the amounts payable, and therefore receivable, in the next
year.
The calculation of the liability requires the use of various assumptions. Refer to note 37 for details of various
assumptions used in calculating the superannuation liabilities and the corresponding deferred Government
receivables.
(ii) Employee related provisions and obligations
The Group makes provisions in respect of superannuation obligations and additional on-costs on payments
made to employees.
The Group assesses the appropriateness of these provisions at each reporting date by evaluating conditions
8
UNSW • Annual Report 2015
19
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(a)
Basis of preparation (continued)
specific to the Group. The calculation of these provisions requires the use of various assumptions, such as
expected rate of return on the funds and superannuation entitlements, and is based on a range of possible
outcomes.
(iii) Long-term leases of UNSW properties
The Group considers the substance of the leasing arrangements and the likelihood of continuance of the leases
through exercise of renewal options in order to determine the appropriate accounting treatment of the leased
properties. Where at the inception of a lease, management considered that it would be reasonably certain that
an option to extend a lease would be exercised, the assumed lease term is inclusive of the additional option
period. This assessment impacts management's determination of the accounting treatment of the leased
properties.
(b)
Basis of consolidation
The consolidated financial statements incorporate the assets and liabilities of all entities controlled by the
parent entity as at 31 December 2015 and the results of all controlled entities for the year then ended.
Controlled entities are all those entities (including structured entities) over which the Group has control. The
Group has control over an investee when it is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its power over the investee. Power over the
investee exists when the Group has existing rights that give it current ability to direct the relevant activities of
the investee. The existence and effect of potential voting rights that are currently exercisable or convertible are
considered when assessing whether the Group controls another entity. Returns are not necessarily monetary
and can be only positive, only negative, or both positive and negative.
Controlled entities are fully consolidated from the date on which control is transferred to the Group. They are
de-consolidated from the date that control ceases.
The acquisition method of accounting is used to account for the acquisition of controlled entities by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies 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.
(c)
Associates
Associates are all entities over which the Group has significant influence but not control, generally
accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are
accounted for in the parent entity's financial statements using the cost method and in the consolidated financial
statements using the equity method of accounting, after initially being recognised at cost. The Group's
investment in associates includes goodwill (net of any accumulated impairment loss) identified on acquisition.
The Group's share of its associates' post-acquisition profits or losses is recognised in the income statement,
and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post
acquisition movements are adjusted against the carrying amount of the investment. Dividends receivable from
associates are recognised in the parent entity's income statement, while in the consolidated financial
statements they reduce the carrying amount of the investment.
9
20
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(c)
Associates (continued)
When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any
other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or
made payments on behalf of the associate.
(d)
Joint arrangements
The interest in a joint venture entity is accounted for in the consolidated financial statements using the equity
method and is carried at cost by the parent entity. Under the equity method, the share of the profits or losses of
the entity is recognised in the income statement, and the share of movements in reserves is recognised in
reserves in the statement of comprehensive income and the statement of changes in equity.
(e)
Public Private Partnerships (PPP)
The Group enters into PPP with the private sector in relation to the construction and operation of new student
accommodation. Each individual PPP is accounted for in accordance with its substance and economic reality,
and not merely its legal form. The Group recognises the new buildings that are the subject of the PPP as an
emerging asset, incrementally over the lease period. Land leased to the private sector and any other service
elements that are part of the PPP, excluding the buildings, are accounted for separately in accordance with the
applicable Australian Accounting Standards.
The private entity will retain rental revenue during the operating phase and will transfer the student
accommodation to UNSW at the end of the concession period.
(f)
Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the controlled entities are measured using the currency of
the primary economic environment in which the entity operates (‘the functional currency’). The consolidated
financial statements are presented in Australian dollars, which is the parent entity’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.
If gains or losses on non-monetary items are recognised in other comprehensive income, translation gains or
losses are also recognised in other comprehensive income. Similarly, if gains or losses on non-monetary items
are recognised in the income statement, translation gains or losses are also recognised in profit or loss.
(iii) Controlled entities
The results and financial position of all the controlled entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:

assets and liabilities for each statement of financial position presented are translated at the closing rate
at the date of that statement of financial position;

income and expenses for each income statement are translated at average exchange rates (unless this
is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction
dates, in which case income and expenses are translated at the dates of the transactions); and

all resulting exchange differences are recognised as a separate component in other comprehensive
income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities,
and of borrowings, are taken to other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of foreign entities are treated as assets and
liabilities of the foreign entities and translated at the closing rate.
10
UNSW • Annual Report 2015
21
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(g)
Revenue recognition
The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the Group and specific criteria have been met for each of the Group’s activities as
described below.
Amounts disclosed as revenue are net of returns, duties and taxes paid, and amounts collected on behalf of
third parties.
(i) Government grants
Grants from the government are recognised at their fair value where the Group obtains control of the right to
receive the grant, it is probable that economic benefits will flow to the Group and it can be reliably measured.
(ii) Student fees and charges
Student fees are recognised as revenue in the year in which the service is provided. Student fees received that
relate to courses to be held in future periods are treated as income in advance.
(iii) Sale of goods
Sales revenue comprises revenue earned (net of returns, discounts and allowances) from the supply of
products to entities outside the Group. Sales revenue is recognised when significant risks and rewards of
ownership are transferred to the customer.
(iv) Fees and charges for services
Revenue from services rendered is recognised in the period in which the service is provided, having regard to
the stage of completion of the service.
(v) Investment income
Interest income is recognised as it accrues. Dividend income is recognised when the dividend is declared by
the subsidiary or investee.
(vi) Other revenue
This represents miscellaneous income and other grant income not derived from core business and is
recognised when it is earned.
(h)
Income tax
The parent entity is exempt from income tax under Commonwealth income taxation legislation. Within the
Group, however, there are entities that are not exempt from paying income tax.
For those entities not exempt from tax, the income tax expense or benefit for the period is the tax payable on
the current period's taxable income, based on the income tax rate for each jurisdiction, adjusted by changes in
deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and
liabilities and their carrying amounts in the financial statements, and unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply
when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or
substantially enacted for the jurisdiction where the entity is situated. An exception is made for certain temporary
differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is
recognised in relation to these temporary differences if they arose in a transaction, other than a business
combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount
and tax bases of investments in controlled entities where the parent entity is able to control the timing of the
reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable
future.
11
22
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(i)
Operating leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. 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, where the Group is a lessor, is recognised in the income statement on a straight-line
basis over the lease term.
(j)
Non-current assets (or disposal group) held for sale and discontinued operations
Non-current assets (or disposal groups) are classified 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.
A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group),
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 (or disposal group) is recognised at the date of
derecognition. An impairment loss is recognised for any initial or subsequent write down of the asset (or
disposal group) to fair value less costs to sell.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while
they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group
classified as held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are
presented separately from the other assets in the statement of financial position. The liabilities of a disposal
group classified as held for sale are presented separately from other liabilities in the statement of financial
position.
A discontinued operation is a component of the Group that has been disposed of or is classified as held for sale
and that represents a separate major line of business or geographical area of operations, is part of a single coordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired
exclusively with a view to resale. The results of discontinued operations are presented separately on the face of
the income statement.
(k)
Impairment of assets
Intangible assets that have an indefinite useful life are not subject to depreciation or amortisation and are tested
annually for impairment. All other assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised in
the income statement for the amount by which the asset's carrying amount exceeds its recoverable amount. An
impairment loss on a revalued asset is recognised against the revaluation reserve of that class of asset to the
extent that the impairment reverses a previous revaluation surplus. The recoverable amount is the higher of an
asset's fair value less costs of disposal and value in use.
In accordance with AASB 136 Impairment of assets in respect of not-for-profit entities, value in use is the
depreciated replacement cost of an asset when the future economic benefits of the asset are not primarily
dependent on the asset's ability to generate net cash inflows and where the entity would, if deprived of the
asset, replace its remaining future economic benefits. In respect of for profit components of the Group, for the
purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (cash generating units).
(l)
Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other shortterm, highly liquid investments with original maturities of three months or less from date of purchase that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value,
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of
financial position.
12
UNSW • Annual Report 2015
23
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(m)
Receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost less any
provision for impairment. Receivables are due for settlement generally no more than 30 days from the date of
recognition. Cash flows relating to short-term receivables are not discounted if the effect of discounting is
immaterial.
Collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are
written off. Subsequent recoveries of amounts previously written off are credited to the income statement.
A provision for impaired receivables 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. Significant financial difficulties of
the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or
delinquency in payments are considered indicators that the receivable is impaired. The amount of the provision
is the difference between the asset’s carrying amount and the present value of estimated future cash flows.
The amount of the provision is recognised in the income statement within impairment of assets.
(n)
Inventories
Inventories are measured on weighted average cost basis at the lower of cost and net realisable value. Net
realisable value is the estimated selling price in the ordinary course of business less the estimated costs
necessary to make the sale.
(o)
Investments and other financial assets
The Group classifies its investments in the following categories: financial assets at fair value through profit or
loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. The
classification depends on the purpose for which the investments were acquired. Management determines the
classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity,
re-evaluates this designation at each reporting date.
(i) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading. A financial asset is
classified in this category if acquired principally for the purpose of selling in the short term or if so designated by
management. The policy of the Group is to designate a financial asset if the possibility it will be sold in the
short-term exists and if the asset is subject to frequent changes in fair value. Derivatives are held for trading
unless they are designated as hedges. Assets in this category are classified as current assets.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. They arise when the Group 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 classified as non-current assets. Loans and
receivables are included in receivables in the statement of financial position.
(iii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed
maturities that the Group's management has the positive intention and ability to hold to maturity. Held-tomaturity investments are included in non-current assets, except for those with maturities less than 12 months
from the reporting date, which are classified as current assets. Held-to-maturity investments are carried at
amortised cost using the effective interest method.
(iv) Available-for-sale financial assets
Available-for-sale financial assets, comprising principally marketable equity securities (held through managed
funds), are non-derivatives that are either designated in this category or not classified in any of the other
categories. They are included in non-current assets unless the Group intends to dispose of the investment
within 12 months of the balance sheet date.
Regular purchases and sales of investments are recognised on the trade date, being the date on which the
Group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction
costs for all financial assets not carried at fair value through profit or loss. Financial assets are derecognised
when the rights to receive cash flows from the financial assets have expired or have been transferred, and the
Group has transferred substantially all the risks and rewards of ownership.
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24
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(o)
Investments and other financial assets (continued)
(v) Subsequent measurement
Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently
carried at fair value. Realised and unrealised gains and losses arising from changes in the fair value of the
'financial assets at fair value through profit or loss' category are included in the income statement in the period
in which they arise. Unrealised gains and losses arising from changes in the fair value of securities classified as
available-for-sale are recognised in other comprehensive income. When securities classified as available-forsale are sold or impaired, the accumulated fair value adjustments recognised in other comprehensive income
are included in the income statement as gains and losses from investment securities.
(vi) Fair value
The fair values of investments and other financial assets are based on quoted prices in an active market. If the
market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using
valuation techniques, that maximise the use of relevant data. These include reference to the estimated price in
an orderly transaction that would take place between market participants at the measurement date. Other
valuation techniques used are the cost approach and the income approach based on the characteristics of the
asset and the assumptions made by market participants.
(vii) Impairment
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or
group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a
significant or prolonged decline in the fair value of a security below its cost is considered in determining whether
the security is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss,
measured as the difference between the acquisition cost and the current fair value, less any impairment loss on
that financial asset previously recognised in the income statement is removed from equity and recognised in the
income statement. Impairment losses recognised in the income statement on equity instruments are not
reversed through the income statement.
(p)
Derivatives
Derivatives are initially recognised at fair value on the date a derivative contract is entered into, and are
subsequently remeasured to their fair value. Changes in the fair value of derivative instruments that do not
qualify for hedge accounting are recognised immediately in the income statement.
(q)
Fair value measurement
The fair value of assets and liabilities must be measured for recognition and disclosure purposes. Refer to note
36 for further disclosure.
(r)
Investment property
Investment properties exclude properties held to meet service delivery objectives of UNSW.
Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are
capitalised when it is probable that future economic benefits in excess of the originally assessed performance
of the asset will flow to UNSW. Where an investment property is acquired at no cost or for nominal
consideration, its cost shall be deemed to be its fair value, as at the date of acquisition.
Subsequent to initial recognition at cost, investment property is carried at fair value, which is based on active
market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset.
If this information is not available, the Group uses alternative valuation methods such as recent prices in less
active markets or discounted cash flow projections. These valuations are reviewed annually by external
independent valuers. Changes in fair values are recorded in the income statement as part of the other income.
Rental revenue from the leasing of investment properties is recognised in the income statement in the periods
in which it is receivable, as this represents the pattern of service rendered though the provision of the
properties.
14
UNSW • Annual Report 2015
25
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(s)
Property, plant and equipment
Land and buildings (including campus land, campus buildings, off-campus properties and leasehold
improvements), works of art and rare books are shown at their fair value, based on annual valuations by
external independent valuers. Any accumulated depreciation at the date of revaluation is restated
proportionately with the change in the gross carrying amount of the asset so that the carrying amount of the
asset after revaluation equals its revalued amount. All other property, plant and equipment are stated at cost
less any accumulated depreciation and impairment. 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 benefits associated with the item will flow 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 financial period in which they are incurred.
Increases in the carrying amounts arising on revaluation of land and buildings are recognised in other
comprehensive income and accumulated in equity under the heading of property, plant and equipment
revaluation reserve. To the extent that the increase reverses a decrease previously recognised in the income
statement, the increase is first recognised in the income statement. Decreases that reverse previous increases
in that class of asset are first charged against revaluation reserves in other comprehensive income, to the
extent of the remaining reserve attributable to the asset class; all other decreases are charged to the income
statement.
Land, works of art and rare books are not depreciated. Depreciation on the other classes of 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. The depreciation rates are as follows:
Controlled
Entities
Parent
2.50% to 6.67% 2.50% to 6.67%
Campus buildings and off-campus properties
20% to 33.33%
33.33%
Computer equipment
10%
10% to 20%
Other equipment
12.50% to 33.33%
12.50%
Motor vehicles
10%
10%
Library collections
2.50% to 20%
2.50% to 20%
Leasehold improvements
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 (note 1(k)).
Gains and losses on disposals are determined by comparing net disposal proceeds with the carrying amount.
The net gains and losses from the sale of assets are included in the income statement when the asset is
derecognised. When revalued assets are sold, it is the Group's policy to transfer the amounts included in
property, plant and equipment revaluation reserves in respect of those assets to retained earnings.
(t)
Intangible assets
(i) Research and development - Patents
Expenditure on research activities, undertaken with the prospect of obtaining new scientific or technical
knowledge and understanding, is recognised in the income statement as an expense when it is incurred.
Expenditure on development activities, being the application of research findings or other knowledge to a plan
or design for the production of new or substantially improved products or services before the start of
commercial production or use, is capitalised if the product or service is technically and commercially feasible;
adequate resources are available to complete development and if it is sufficiently certain that the future
economic benefits to the Group will cover not only the usual operational and administrative costs but also the
development costs themselves. There are also several other criteria relating to the development projects and
the processes or products being developed, all of which have to be met to justify asset recognition.
15
26
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(t)
Intangible assets (continued)
The expenditure capitalised comprises all directly attributable costs, including costs of materials, services,
direct labour, and an appropriate proportion of overheads. Other development expenditure is recognised in the
income statement as an expense as incurred. Capitalised development expenditure is stated at cost less
accumulated amortisation. Amortisation is calculated using the straight line method to allocate the cost over the
period of the expected benefit, which will vary depending on useful life, usually 20 years.
(ii) Computer software
Computer software is stated at cost less accumulated amortisation and impairment.
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 benefits associated with the item will flow to the
Group and the cost of the item can be measured reliably. All other upgrades and maintenance are charged to
the income statement during the financial period in which they are incurred.
Computer software is amortised using the straight line method to allocate its cost, net of any residual value,
over its estimated useful life usually between 5 to 10 years.
(iii) Digitalised library research collections
Digitalised library research collections are perpetual licences to access online research material. Digitalised
library research collections are stated at cost less accumulated amortisation and impairment. Amortisation is
calculated using the straight line method to allocate the cost over its estimated useful life of 10 years.
(u)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the
financial year, which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition.
(v)
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. Fees paid on the establishment of loan facilities, which are not an incremental cost relating to
the actual draw-down of the facility, are recognised as prepayments and amortised on a straight-line basis over
the term of the facility.
Borrowings are removed from the statement of financial position when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has
been extinguished or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in other income or other expenses.
Borrowings are classified 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 and does not expect to settle the liability for at
least 12 months after the balance sheet date.
(w)
Borrowing costs
Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time
that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are
expensed.
The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted
average interest rate applicable to the entity's outstanding borrowings during the year.
(x)
Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past
events; it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future operating losses.
16
UNSW • Annual Report 2015
27
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(x)
Provisions (continued)
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood
of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the balance sheet date. The discount rate used to determine the present value
reflects current market assessments of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognised as a borrowing cost.
(y)
Employee benefits
(i) Short-term obligations
Liabilities for short-term employee benefits including wages and salaries and non-monetary benefits are
measured at the amount expected to be paid when the liability is settled, if it is expected to be settled wholly
before twelve months after the end of the reporting period, and is recognised in other payables. Liabilities for
non-accumulating sick leave are recognised when the leave is taken and measured at the rates payable.
(ii) Other long-term obligations
The liability for other long-term benefits is recognised in current provisions for employee benefits if they are not
expected to be settled wholly before twelve months after the end of the annual reporting period. Other long-term
employee benefits include such things as annual leave, accumulating sick leave and long service leave
liabilities.
It is measured at the present value of expected future payments to be made in respect of services provided by
employees up to the reporting date using the projected unit credit method. Consideration is given to the
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 outflows.
Regardless of the expected timing of settlements, provisions made in respect of employee benefits are
classified 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 classified as a non-current liability.
(iii) Bonus plans
The Group recognises a liability and an expense for bonuses where contractually obliged or where there is a
past practice that has created a constructive obligation and when a reliable estimate of the obligation can be
made.
(iv) Retirement benefit obligations
All employees of the Group are entitled to benefits on retirement, disability or death, from the superannuation
plans contributed to by the Group. The plans have both defined benefit sections and defined contribution
sections. The defined benefit sections provide defined lump sum benefits based on years of service and final
average salary. The defined contribution section receives fixed contributions from the Group and its legal or
constructive obligation is limited to these contributions.
A liability or asset in respect of each defined benefit superannuation plan is recognised in the statement of
financial position, and is measured as the present value of the defined benefit obligation at the reporting date
less the fair value of the superannuation fund's assets at that date and any unrecognised past service cost. The
present value of the defined benefit obligation is based on expected future payments which arise from
membership of the plan to the reporting date, calculated annually by independent actuaries using the projected
unit credit method. Consideration is given to the 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
outflows.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognised in the period in which they occur, outside of the income statement, in the statement of
comprehensive income.
17
28
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(y)
Employee benefits (continued)
Past service costs are recognised immediately in the income statement.
Contributions to the defined contribution plan are recognised as an expense as they become payable.
(v) Unfunded superannuation
The superannuation liabilities recorded in the statement of financial position have been determined by
independent actuaries relating to the defined benefit superannuation plans: State Superannuation Scheme
(SSS), State Authorities Superannuation Scheme (SASS), State Authorities Non-Contributory Superannuation
Scheme (SANCS) and the UNSW Professorial Superannuation Fund. Information relating to these schemes is
set out in note 37 and note 1(a)(i). Since 5 December 2014 when the Memorandum of Understanding was
signed by the Commonwealth and NSW Governments, the only unfunded liabilities comprise of the UNSW
Professorial Superannuation Fund, and the SSS, SASS and SANCS liabilities relating solely to UNSW
Canberra at ADFA.
(vi) Workers compensation
The parent entity is a licensed self-insurer for workers compensation in New South Wales (NSW) and the
Australian Capital Territory (ACT).
Workers compensation matters are managed through two funds, one to record the parent entity's workers
compensation activities in New South Wales (known as the NSW Fund) and one to record the parent entity's
workers compensation activities in the Australian Capital Territory (known as the ACT Fund). The provision for
the outstanding claims liability for each fund is recognised based on an independent actuarial assessment at
balance sheet date.
As a self-insurer, the parent entity sets a notional annual premium, which is charged on all employee salaries.
Costs of workers compensation claims, claims administration expenses and actuarially assessed
increases/decreases in the provision for outstanding claims liability are met from the notional premium. The
outstanding claims liability includes an amount for injuries that have already occurred but have not yet been
reported. The annual purchase of reinsurance protects UNSW from the adverse effects of large claims. UNSW
pays a number of administration costs to the workers compensation scheme regulators. In NSW, costs include
the WorkCover Fund Contribution and Dust Diseases Fund. In the ACT, the Default Insurance Fund Levy and
Magistrates Court Levy are recurrent costs.
(vii) Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when
an employee accepts an offer of benefits in exchange for the termination of employment. The Group
recognises termination benefits either when it can no longer withdraw the offer of those benefits or when it has
recognised costs for restructuring within the scope of AASB 137 that involves the payment of termination
benefits, or when it is demonstrably committed to either terminating the employment of current employees
according to a detailed formal plan without possibility of withdrawal, or providing termination benefits as a result
of an offer made to encourage voluntary redundancy. Benefits not expected to be settled wholly before 12
months after the end of the reporting period are discounted to present value.
(z)
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
statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to the taxation authority, are presented as operating
cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority. Any GST payable (and recoverable from the Taxation Authority) on the commitments is
disclosed separately as part of the same note.
18
UNSW • Annual Report 2015
29
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(aa) Early adoption of accounting standard
In 2015, UNSW has decided to early adopt the relief outlined in AASB 2015-7. This new standard makes
amendments to AASB 13 Fair Value Measurement to relieve not-for-profit public sector entities from certain
requirements of the standard.
The relief applies to the following disclosures about Level 3 assets within the scope of AASB 116 Property,
Plant and Equipment which are primarily held for their current service potential rather than to generate future
net cash inflows:
- quantitative information about the significant unobservable inputs used in the fair value measurement.
- the amount of the total gains and losses for the period included in profit or loss that is attributable to the
change in unrealised gains or losses relating to the assets held at the end of the reporting period.
- a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a
change in those inputs to a different amount might result in a significantly higher or lower fair value
measurement.
UNSW has applied this relief for both Campus Buildings and Leasehold improvements. Refer to note 36 for
further disclosure.
(ab) Key management personnel
For the Group, key management personnel are members of UNSW Council and persons having authority and
responsibility for planning, directing and controlling the activities of the Group, directly or indirectly.
(ac) Standards and interpretations issued but not effective for the reporting period
(i) Standards
AASB 15
Name
Revenue from Contracts with Customers
AASB 9
Financial Instruments
AASB 124
Related Party Disclosures
AASB 16
Leases
Application Date
Annual reporting periods beginning
on or after 1 January 20181
Annual reporting periods beginning
on or after 1 January 20182
Annual reporting periods beginning
on or after 1 July 20163
Annual reporting periods beginning
on or after 1 January 20194
1The likely impact on the first time adoption of the standard for the year ending 31 December 2018 may include a change to
the timing of when revenue can be recognised. This is primarily as a result of changes impacting Government Contributions
formerly recognised under AASB 1004: Contributions. ED260: Income of Not-for-Profit Entities was released for comment in
April 2015. This ED is to replace AASB 1004.
2The likely impact on the first time adoption of the standard for the year ending 31 December 2018 may include increased
volatility in the income statement. This is primarily as a result of changes in available-for-sale financial assets recognition
criteria.
3The likely impact on the first time adoption of the standard for the year ending 31 December 2017 may include increased
disclosure requirements relating to related party transactions. Comparative information will not be required in the first year of
application.
4The likely impact on the first time adoption of the standard for the year ending 31 December 2019 is recognition of assets
and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The initial
measurement of assets and liabilities arising from a lease are initially measured on a present value basis, and recognition of
depreciation of lease assets and interest on lease liabilities will be recorded in the income statement over the lease term.
The likely impacts for each of the above standards have not yet been quantified.
19
30
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
1
Summary of significant accounting policies (continued)
(ac) Standards and interpretations issued but not effective for the reporting period
(continued)
(ii) Interpretations
AASB 2013-9
AASB 2014-1
AASB 2014-4
AASB 2014-5
AASB 2014-7
AASB 2014-8
AASB 2014-9
AASB 2015-1
AASB 2015-2
AASB 2015-3
AASB 2015-6
AASB 2015-7
Name
Amendments to Australian Accounting Standards Conceptual Framework, Materiality and Financial
Instruments (Part C: Financial Instruments)
Amendments to Australian Accounting Standards
(Part E: Financial Instruments)
Amendments to Australian Accounting Standards Clarification of Acceptable Methods of Depreciation
and Amortisation (AASB 116 & AASB 138)
Amendments to Australian Accounting Standards
arising from AASB 15
Amendments to Australian Accounting Standards
arising from AAS 9 (December 2014)
Amendments to Australian Accounting Standards
arising from AAS 9 (December 2014) - Application of
AASB 9 (December 2009) and AASB 9 (December
2010) [AASB 9 (2009 & 2010)]
Amendments to Australian Accounting Standards Equity Method in Separate Financial Statements
[AASB 1, AASB 127 & AASB 128]
Amendments to Australian Accounting Standards Annual Improvements to Australian Accounting
Standards 2012-2014 Cycle {AASB 1, AASB 3, AASB
5, AASB 7, AASB 11, AASB 110, AASB 119, AASB
121, AASB 137 & AASB 140]
Amendments to Australian Accounting Standards Disclosure Initiative: Amendments to AASB101
[AASB 7 & AASB 101]
Amendments to Australian Accounting Standards
arising from the Withdrawal of AASB 1031
Amendments to Australian Accounting Standards Extended Related Party Disclosures to Not-for-Profit
Public Sector Entities [AASB 10 & AASB 124]
Amendments to Australian Accounting Standards Fair Value Disclosures of Not-for-Profit Public Sector
Entities [AASB 13]
Application date
Annual reporting periods beginning
on or after 1 January 2015
Annual reporting periods beginning
on or after 1 January 2015
Annual reporting periods beginning
on or after 1 January 2016
Annual reporting periods beginning
on or after 1 January 2018
Annual reporting periods beginning
on or after 1 January 2018
Annual reporting periods beginning
on or after 1 January 2015
Annual reporting periods beginning
on or after 1 January 2016
Annual reporting periods beginning
on or after 1 January 2016
Annual reporting periods beginning
on or after 1 January 2016
Annual reporting periods beginning
on or after 1 July 2015
Annual reporting periods beginning
on or after 1 July 2016
Annual reporting periods beginning
on or after 1 July 2016
(ad) Rounding of amounts
Amounts in the financial statements have been rounded to the nearest thousand dollars, or in certain cases, the
nearest dollar.
(ae) Comparative amounts
Comparative figures have been reclassified and repositioned in the financial statements, where necessary, to
conform to the basis of presentation and classification used in the current year.
20
UNSW • Annual Report 2015
31
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
2
Australian Government financial assistance including Australian Government loan
programs (HELP)
(a)
Commonwealth Grant Scheme and Other Grants
Consolidated
Note
Commonwealth Grant Scheme
Indigenous Support Program
Partnership and Participation
Program
Disability Support Program
Promotion of Excellence in
Learning and Teaching
Australian Maths & Science
Partnership Program
Other
Total Commonwealth Grant
Scheme and Other Grants
(b)
(c)
38(a)
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
269,050
1,151
262,725
1,039
269,050
1,151
262,725
1,039
3,837
189
5,444
202
3,837
189
5,444
202
100
303
100
303
522
(225)
522
522
(225)
522
274,849
270,010
274,849
270,010
157,711
37,279
2,875
161,156
39,453
2,939
157,711
37,279
2,875
Higher Education Loan Programs
HECS-HELP
FEE-HELP
SA-HELP
38(i)
161,156
39,453
2,939
Total Higher Education Loan
Programs
38(b)
203,548
197,865
203,548
197,865
24,508
23,897
24,508
23,897
1,969
1,962
1,969
1,962
10
107
10
107
(44)
5
68
28
(44)
5
68
28
Scholarships
Australian Postgraduate Awards
International Postgraduate
Research Scholarships
Commonwealth Education Cost
Scholarships
Commonwealth Accommodation
Scholarships
Indigenous Access Scholarships
Total Scholarships
38(c)
26,448
26,062
26,448
26,062
21
32
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
2
Australian Government financial assistance including Australian Government loan
programs (HELP) (continued)
(d)
Education Research
Consolidated
Note
Joint Research Engagement
Program (JRE)
JRE Engineering Cadetships
Research Training Scheme
Research Infrastructure Block
Grants
Sustainable Research Excellence
in Universities
Total Education Research
Grants
(e)
38(d)
2014
2015
2014
$'000
$'000
$'000
$'000
32,381
523
63,419
30,976
384
63,032
32,381
523
63,419
30,976
384
63,032
22,034
20,699
22,034
20,699
17,435
15,219
17,435
15,219
135,792
130,310
135,792
130,310
-
10,850
-
10,850
-
10,850
-
10,850
25,706
20,637
27,419
26,707
25,706
20,637
27,419
26,707
379
749
379
749
46,722
54,875
46,722
54,875
5,248
9,036
3,881
10,529
5,248
9,036
3,881
10,529
2,172
709
2,172
709
16,456
15,119
16,456
15,119
4,397
4,412
4,397
4,412
4,397
4,412
4,397
4,412
67,575
74,406
67,575
74,406
Other Capital Funding
Education Investment Fund
Total Other Capital Funding
(f)
Parent
2015
38(e)
Australian Research Council (ARC)
(i) Discovery
Projects
Fellowships
Indigenous Researchers
Development
Total Discovery
38(f)(i)
(ii) Linkages
Infrastructure
Projects
Industrial Transformational
Research Program
Total Linkages
38(f)(ii)
(iii) Networks and Centres
Centres
Total Networks and Centres
Total ARC
38(f)(iii)
22
UNSW • Annual Report 2015
33
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
2
Australian Government financial assistance including Australian Government loan
programs (HELP) (continued)
(g)
Other Australian Government financial assistance
Consolidated
Non-capital
Health and Ageing
Department of Defence
AUSAID
Various Other Australian
Government
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
81,114
61,394
12,444
82,926
60,414
12,424
81,114
61,394
12,444
82,926
60,414
12,424
39,234
50,530
39,234
50,530
194,186
206,294
194,186
206,294
Capital
Various Other Australian
Government
-
151
-
151
Total
-
151
-
151
Total Other Australian
Government financial
assistance
194,186
206,445
194,186
206,445
Total Australian Government
Financial Assistance
902,398
915,948
902,398
915,948
Total
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Reconciliation
Australian Government Grants
HECS-HELP
FEE-HELP
SA-HELP
698,850
161,156
39,453
2,939
718,083
157,711
37,279
2,875
698,850
161,156
39,453
2,939
718,083
157,711
37,279
2,875
Total Australian Government
Financial Assistance
902,398
915,948
902,398
915,948
23
34
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
2
Australian Government financial assistance including Australian Government loan
programs (HELP) (continued)
(h)
Australian Government Grants received - cash basis
Consolidated
Note
CGS and Other Education Grants
Higher Education Loan Programs
Scholarships
Education research
Other Capital Funding
ARC grants - Discovery
ARC grants - Linkages
ARC grants - Networks and
Centres
Other Australian Government
Grants
Total Australian Government
Grants received - cash basis
OS-HELP (Net)
Superannuation Supplementation
Total Australian Government
funding received - cash basis
3
38(g)
38(h)
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
274,077
203,667
26,701
135,792
48,078
17,445
270,533
195,581
26,062
130,310
10,850
56,152
17,414
274,077
203,667
26,701
135,792
48,078
17,445
270,533
195,581
26,062
130,310
10,850
56,152
17,414
9,534
9,480
9,534
9,480
203,016
208,216
203,016
208,216
918,310
408
48,074
924,598
2,897
-
918,310
408
48,074
924,598
2,897
-
966,792
927,495
966,792
927,495
State and Local Government financial assistance
Consolidated
Non-capital
Research financial assistance - State
Research financial assistance - Local
Other financial assistance
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
23,763
396
771
25,023
273
663
23,763
396
771
24,627
273
663
24,930
25,959
24,930
25,563
Capital
Other financial assistance - State
1,373
1,908
1,373
1,908
Total capital
1,373
1,908
1,373
1,908
26,303
27,867
26,303
27,471
Total non-capital
Total State and Local Government
Financial Assistance
24
UNSW • Annual Report 2015
35
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
4
Fees and charges
Consolidated
Note
Course fees and charges
Fee-paying onshore overseas
students
Fee-paying offshore overseas
students
Continuing education
Fee-paying domestic postgraduate
students
Fee-paying domestic undergraduate
students
2014
2015
2014
$'000
$'000
$'000
$'000
442,969
377,861
362,788
319,746
297
16,521
322
15,824
297
16,521
322
15,853
24,220
26,152
23,275
24,690
2,471
3,065
2,471
3,065
486,478
423,224
405,352
363,676
20,313
15,271
32,091
553
23,138
23,469
23,665
4,514
21,280
14,232
29,738
538
23,735
21,695
26,667
4,467
4,791
19,604
27,457
125
10,541
21,089
29,384
4,514
4,877
17,458
25,066
945
10,130
18,759
27,979
4,467
Total other fees and charges
143,014
142,352
117,505
109,681
Total fees and charges
629,492
565,576
522,857
473,357
Total course fees and charges
Other non-course fees and
charges
Educational measurement and
testing
Rental charges
Student accommodation
Publication sales
Miscellaneous sales
Service fees
Cost recoveries1
Student services and amenities fee
1The
5
Parent
2015
38(i)
parent entity recovers costs paid on behalf of controlled entities, associated organisations and external entities.
Investment revenue and other investment income
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Interest
Dividends
Other ATO franking credit
8,324
26,635
2,863
6,753
30,686
2,828
6,752
27,249
2,863
5,444
32,989
2,828
Total investment revenue
37,822
40,267
36,864
41,261
Net gains/(losses) on sale of
investments
Gains reclassified from equity
(418)
6,987
2,643
20,730
(1,043)
6,564
775
20,435
Total other investment income
6,569
23,373
5,521
21,210
44,391
63,640
42,385
62,471
Total investment income
25
36
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
6
Consultancy and contracts
Consolidated
Consultancy
Contract research
Total consultancy and contracts
7
Parent
2015
2014
2015
2014
$'000
9,012
58,123
$'000
8,666
53,883
$'000
2,353
57,893
$'000
2,480
53,372
67,135
62,549
60,246
55,852
Other revenue and income
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Other revenue
Donations, bequests and
contributions1
Scholarships and prizes
Other external grants
30,087
6,280
523
28,874
6,282
1,066
63,103
6,280
523
48,919
6,282
1,292
Total other revenue
36,890
36,222
69,906
56,493
203
7,396
6,191
240
6,874
24,747
203
7,351
4,215
240
6,874
22,830
13,790
50,680
31,861
68,083
11,769
81,675
29,944
86,437
Other income
Subscription
Sponsorship
Miscellaneous income2
Total other income
Total other revenue and income
1Donations,
bequests and contributions for the year ended 31 December 2015 to the Parent include contributions of $32,734,000 from
UNSW Global Pty Ltd (2014: $19,633,000).
For the year ended 31 December 2014 $18,309,000 related to the recognition of funding the Commonwealth and NSW Governments
for the SANCS superannuation scheme (refer to note 1(a)(i)).
2
26
UNSW • Annual Report 2015
37
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
8
Employee related expenses
Consolidated
Note
Academic1
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
376,890
365,124
366,118
356,406
195
56,058
23,846
360
11,541
34,758
2,988
4,091
53,776
23,485
995
14,286
33,766
3,475
195
54,505
22,942
240
11,103
33,506
2,988
4,091
52,513
22,767
888
13,897
32,718
3,475
Total academic
506,636
498,998
491,597
486,755
Non-academic2
Salaries
338,276
329,545
308,028
301,389
154
46,260
21,037
428
10,727
28,777
7,144
176
44,328
21,088
982
11,902
28,221
6,816
154
43,750
19,134
206
10,112
26,928
6,538
176
41,976
18,946
750
11,326
26,483
6,318
Total non-academic
452,803
443,058
414,850
407,364
Total employee related expenses
959,439
942,056
906,447
894,119
4,570
410
4,570
410
964,009
942,466
911,017
894,529
Salaries
Contributions to superannuation and
pension schemes:
Unfunded schemes
Funded schemes
Payroll tax
Workers compensation
Long service leave expense
Annual leave
Other
Contributions to superannuation and
pension schemes:
Unfunded schemes
Funded schemes
Payroll tax
Workers compensation
Long service leave expense
Annual leave
Other
Deferred superannuation expense
Total employee related expenses,
including deferred employment benefits
for superannuation
1Academic
37(e)
staff includes teaching staff, sessional teaching staff, guest lecturers and academic research staff.
staff includes general and administrative staff, professional staff, examination supervisors and casual general staff.
2Non-academic
27
38
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
9
Depreciation and amortisation
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Depreciation
Campus buildings and off-campus
properties
Computer equipment
Motor vehicles
Leasehold improvements
Other equipment
Library collections
103,281
6,502
154
1,339
25,778
875
96,445
7,305
130
1,530
23,645
620
102,577
6,008
109
1,218
25,743
875
96,004
6,937
83
1,448
23,611
620
Total depreciation
137,929
129,675
136,530
128,703
5,094
166
574
4,991
180
384
4,442
574
4,251
384
Amortisation
Computer software
Patents
Digitalised library research collections
Total amortisation
Total depreciation and amortisation
10 Repairs and maintenance
Service contracts
Buildings
Other equipment
Total repairs and maintenance
5,834
5,555
5,016
4,635
143,763
135,230
141,546
133,338
Consolidated
Parent
2015
2014
2015
2014
$'000
11,394
15,927
7,040
$'000
12,207
16,579
5,220
$'000
10,966
14,965
7,037
$'000
11,966
15,550
5,214
34,361
34,006
32,968
32,730
11 Borrowing costs
Consolidated
Interest expense
Total borrowing costs
expensed
Parent
2015
2014
2015
2014
$'000
2,485
$'000
2,832
$'000
2,483
$'000
2,832
2,485
2,832
2,483
2,832
28
UNSW • Annual Report 2015
39
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
12 Impairment of assets
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Student debtors
Sundry debtors
Loans and other receivables
Available-for-sale and other financial assets
Property, plant and equipment
Intangible assets
503
(2)
178
(29)
14,317
923
704
23
(148)
1,239
503
(177)
(29)
12,990
Total impairment of assets
14,967
2,741
13,287
13 Other expenses
Scholarships, grants and prizes
Non-capitalised equipment
Advertising, marketing and promotional
expenses
Audit fees
Consumables
Travel and entertainment
Commission to agents
Contract services (including consultants)
Cost of books sold
Energy, utilities, postage and telephone
Fees, charges and insurance
Operating lease expenses
Other operating expenses
Total other expenses
Consolidated
923
503
164
(148)
1,442
Parent
2015
2014
2015
2014
$'000
112,554
46,643
$'000
102,172
45,089
$'000
119,589
50,138
$'000
108,578
44,923
16,090
935
37,054
45,163
28,621
146,231
5,352
22,109
31,625
12,089
19,312
14,781
906
34,216
44,659
25,138
142,948
6,023
23,816
31,886
12,238
15,247
14,598
474
35,483
43,970
19,739
139,937
21,550
30,436
5,937
13,486
12,630
479
32,831
43,681
17,301
137,663
22,986
30,988
6,387
9,633
523,778
499,119
495,337
468,080
29
40
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
14 Income tax
(a)
(b)
Income tax
Consolidated
2015
2014
$'000
$'000
Current income tax (expense)/benefit
8
(55)
Income tax (expense)/benefit is attributable:
- Net result from continuing operations
8
(55)
Aggregate income tax (expense)/benefit
8
(55)
Numerical reconciliation of income tax expense/(benefit) to prima facie tax payable
Net result before income tax
Tax at the Australian tax rate of 30% (2014: 30%)
Tax effect of amounts which are not deductible/(taxable) in calculating
taxable income:
Net income of tax exempt entities
Difference in overseas tax rates
Adjustment for current tax of prior periods
77,504
130,105
(23,251)
(39,032)
23,313
(58)
4
39,033
(60)
4
Total income tax (expense)/benefit
15 Cash and cash equivalents
8
Consolidated
(55)
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Cash at bank and on hand
Deposits at call and investments originally
maturing within three months
90,221
56,371
59,415
33,582
127,518
45,128
69,518
5,128
Total cash and cash equivalents
217,739
101,499
128,933
38,710
(a)
Reconciliation to cash and cash equivalents at the end of the financial year
The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the
statement of cash flows.
(b)
Cash at bank
Cash at bank earns floating interest rates between 0.53% and 2.38% (2014: 0.51% and 2.70%).
(c)
Deposits at call and investments originally maturing within three months
The deposits are bearing interest rates between 2.35% and 2.85% (2014: 2.50% and 3.27%).
30
UNSW • Annual Report 2015
41
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
16 Receivables
Consolidated
Note
Current
Sundry debtors
Less: Provision for impaired receivables
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
36,441
(1,268)
39,448
(1,569)
29,471
(715)
33,688
(966)
35,173
37,879
28,756
32,722
5,965
(2,253)
4,900
(2,290)
5,965
(2,253)
4,900
(2,290)
3,712
2,610
3,712
2,610
-
-
32,819
-
20,124
(414)
-
-
32,819
19,710
33,480
608
30,712
567
32,028
572
29,444
545
80,692
12,058
4,345
55,743
18,187
2,076
80,692
12,343
4,343
55,743
18,451
2,075
170,068
147,774
195,265
161,300
4,848
3,475
4,848
3,475
1,296,838
1,325,294
1,296,838
1,325,294
3,751
3,881
3,697
3,823
Total non-current receivables
1,305,437
1,332,650
1,305,383
1,332,592
Total receivables
1,475,505
1,480,424
1,500,648
1,493,892
Student debtors
Less: Provision for impaired receivables
receivables1
Loans and other
Less: Provision for impaired loans
Payments in advance
Sundry advances
Deferred government contributions for
superannuation2
Accrued income
Investment income receivable
37(d)
Total current receivables
Non-current
Payments in advance
Deferred government contributions for
superannuation2
Other receivables
37(d)
1As
at 31 December 2015, loans and other receivables include contributions of $32,734,000 (2014: $19,633,000) due from UNSW
Global Pty Ltd, refer to note 7.
2As
at 31 December 2015, a total of $1,377,530,000 (2014: $1,381,037,000) is receivable from the Commonwealth and NSW
Governments. These amounts include the net assets of UNSW Global Pty Ltd of $2,523,000 (2014: $2,439,000). The corresponding
provisions for Deferred government benefits for superannuation is a total of $1,488,208,000 (2014: $1,485,391,000) (refer to note 25),
with the net provision of $110,678,000 (2014: $104,354,000) relating to UNSW Canberra at ADFA ($108,722,000) and other unfunded
superannuation costs ($1,956,000).
31
42
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
16 Receivables (continued)
(a)
Impaired receivables
Terms of trade are generally 30 days. As at 31 December 2015, current receivables of the Group and the
parent entity with a nominal value of $8,499,000 and $7,946,000, respectively (2014: $9,792,000 and
$9,194,000, respectively) were impaired. The amounts of the provision for the Group and the parent entity were
$3,521,000 and $2,968,000 respectively (2014: $3,859,000 and $3,256,000, respectively), and relate to nongovernment customers, who are in unexpectedly difficult economic situations.
The ageing of the provision of these receivables are as follows:
Consolidated
91 to 180 days
181 to 270 days
271 to 365 days
over 365 days
(b)
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
722
222
876
1,701
856
207
821
1,975
495
136
746
1,591
613
72
732
1,839
3,521
3,859
2,968
3,256
Past due but not impaired receivables
As at 31 December 2015 current receivables of the Group and the parent entity with a nominal value of
$9,555,000 and $7,472,000 respectively (2014: $11,966,000 and $9,395,000 respectively) were past due but
not impaired.
The ageing of the nominal values of these receivables are as follows:
Consolidated
31 - 60 days
61 - 90 days
91 - 180 days
181 - 270 days
271 - 365 days
Parent
2015
2014
2015
2014
$'000
6,116
2,246
1,021
111
61
$'000
5,890
2,664
3,207
179
26
$'000
4,584
1,861
884
104
39
$'000
4,297
2,023
2,887
170
18
9,555
11,966
7,472
9,395
32
UNSW • Annual Report 2015
43
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
16 Receivables (continued)
(c)
Movements
Movements in the provision for impaired receivables are as follows:
Consolidated
Sundry debtors
Opening balance at 1 January
Provision for impairment
added/(released) during the year
Receivables written off during the year
Closing balance at 31 December
Student debtors
Opening balance at 1 January
Provision for impairment added during
the year
Receivables written off during the year
Closing balance at 31 December
Loans and other receivables
Opening balance at 1 January
Provision for impairment added during
the year
Loans and other receivables forgiven
during the year
Closing balance at 31 December
Closing balance at 31 December
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
1,569
(2)
(299)
1,003
704
(138)
966
566
(177)
(74)
503
(103)
1,268
1,569
715
966
2,290
1,792
2,290
1,792
503
(540)
923
(425)
503
(540)
923
(425)
2,253
2,290
2,253
2,290
-
-
414
250
-
-
-
164
-
-
-
-
-
414
3,521
3,859
2,968
3,670
(414)
-
The creation and release of the provision for impaired receivables have been included in 'impairment of assets'
in the income statement, refer to note 12. Amounts charged to the provision account are generally written off
when there is no expectation of recovering additional cash.
The other classes within receivables do not contain impaired assets and are not past due. Based on credit
history of these other classes, it is expected that these amounts will be received when due.
33
44
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
17 Investments accounted for using the equity method
Associates
Joint ventures
2015
2014
$'000
16,139
-
$'000
4,394
9,594
16,139
13,988
Total investments accounted for using the equity method
(a)
Associates
Fair value
2014
$'000
$'000
Ownership Interest %
Name of Entity
Place
of business
UIIT Trust No. 31
Australia
Equity method
10,477
-
100.00
100.00
UIIT Trust No. 6
Australia
Equity method
471
-
100.00
100.00
Australian Technology Park Innovation Pty Ltd
Australia
Equity method
5,191
4,394
25.00
25.00
Acyte Biotech Pty Ltd2
Australia
Equity method
-
-
43.00
43.00
BioParticle Technologies Pty Ltd2
Australia
Equity method
-
-
35.00
35.00
Bionic Vision Technologies Pty Ltd2
Randwick Health and Medical Research
Institute2
Australia
Equity method
-
-
40.00
40.00
Australia
Equity method
-
-
30.00
30.00
Sydney Institute of Marine Science2
Australia
Equity method
-
-
25.00
25.00
Centre for Eye Health2
Australia
Equity method
-
-
38.00
38.00
Dosimetry & Imaging Pty Ltd 3
Australia
Fair value
-
-
13.51
40.00
16,139
4,394
1This
Measurement
method
2015
2015
2014
entity was reclassified as an associate in 2015 following changes to shareholder agreements.
2These
companies are public companies limited by guarantee. The constitutions of these companies prohibit profit
distributions of funds to the members. Accordingly, the results of these companies are equity accounted at nil value.
3In 2015 Dosimetry & Imaging Pty Ltd (D&I) issued additional shares, which resulted in NSI's ownership interest to reduce
from 40% to 13.51%. Accordingly, D&I is accounted for as an available-for-sale financial asset as at 31 December 2015.
34
UNSW • Annual Report 2015
45
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
17 Investments accounted for using the equity method (continued)
(b)
Summarised financial information - associates
Summarised financial information for individually material associates is set out below:
Australian Technology Park
Innovation Pty Ltd
UIIT Trust No. 3
2015
2014
2015
2014
$'000
1,449
10,329
$'000
732
8,903
$'000
5,857
16,345
$'000
6,190
12,675
11,778
1,301
-
9,635
41
-
22,202
1,420
12
18,865
1,333
38
1,301
41
1,432
1,371
Net assets
10,477
9,594
20,770
17,494
Share of associates' net assets
10,477
9,594
5,191
4,394
Reconciliation of carrying amounts:
Balance at 1 January
Share of profit for year
Dividends
Additions
9,594
2,135
(1,252)
-
5,032
6,807
(2,926)
681
4,394
797
-
4,587
(193)
-
Balance at 31 December
10,477
9,594
5,191
4,394
Financial Performance
Income
Profit/(loss) from continuing operations
Other comprehensive income
2,572
2,135
2,135
6,438
6,807
6,807
6,138
3,188
3,188
2,164
(771)
(771)
Share of associates' profit/(loss)
2,135
6,807
797
(193)
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
(c)
Joint Ventures
Fair value
Name of Entity
Place
of business
UIIT Trust No. 31
Australia
1The
(d)
Measurement
method
Equity method
2015
Ownership Interest %
2014
$'000
$'000
-
2015
2014
-
9,594
100.00
entity was reclassified as an associate in 2015 following changes to shareholder agreements.
Individually immaterial associates
Aggregate carrying amount of interests in associates accounted for using the equity method that are not
individually material in the consolidated financial statements:
2015
2014
$'000
$'000
Profit/(loss) from continuing operations
Loss from continuing operations after
income tax
(29)
-
(29)
-
Total comprehensive income
(29)
-
35
46
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
18 Other financial assets
Consolidated
Note
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Current
Available-for-sale financial assets
Other available-for-sale financial
assets
142
-
142
-
Held-to-maturity investments
Term deposit
(a)
23,394
80,182
23,394
80,182
Derivative financial instruments
Forward foreign exchange contracts
(b)
521
1,404
521
1,404
24,057
81,586
24,057
81,586
Available-for-sale financial assets
Unlisted unit trusts
Listed equities
Unlisted equities
438,091
6
11,402
435,162
9
6,987
430,215
9,198
426,323
4,853
Total non-current available-for-sale
financial assets
449,499
442,158
439,413
431,176
23
46
23
46
23
46
23
46
4
4
97
97
-
-
6,102
5,602
Total non-current other financial
assets at cost
4
4
6,199
5,699
Total non-current other financial
assets
449,526
442,208
445,635
436,921
Total other financial assets
473,583
523,794
469,692
518,507
Total current other financial assets
Non-current
Derivative financial instruments
Forward foreign exchange contracts
(b)
Total non-current derivative financial
instruments
Other financial assets at cost
Unlisted companies
Unincorporated venture capital
investment
(a)
(c)
(c)
Held-to-maturity investments
The average interest rate for held-to-maturity investments to which the Group is exposed at the end of the
reporting period was 2.61% (2014: 3.47%).
(b)
Derivative financial instruments
The Group entered into forward foreign exchange contracts, which are economic hedges but do not satisfy the
requirements for hedge accounting. Changes in the fair value of these instruments are recognised in the
income statement as part of net foreign exchange gains/losses.
Information about the Group and the parent entity’s exposure to foreign exchange risk is provided in note 35.
(c)
Other financial assets
The Group and the parent entity's investments are shown at cost less impairment losses.
36
UNSW • Annual Report 2015
47
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
19 Investment properties
(a)
Consolidated
2014
2015
2014
$'000
$'000
$'000
$'000
At fair value
Opening balance at 1 January
Acquisitions
Capital Work in Progress
Valuation gain
8,247
601
3
8,247
-
8,247
601
3
8,247
-
Closing balance at 31 December
8,851
8,247
8,851
8,247
Amounts recognised in profit or loss for investment properties
Consolidated
Rental income
Direct operating expenses (rent
generating properties)
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
659
396
659
396
(562)
(313)
(562)
(313)
97
83
97
83
Total recognised in profit or
loss
(b)
Parent
2015
Valuation basis
Investment properties (comprising of land and buildings) are fair valued, based on the highest and best use of
the assets. The value reflects the amounts for which the assets could be exchanged between willing parties in
an arm's length transaction, based on current prices in an active market for similar properties in the same
location and condition. Fair value reflects, among other things, rental income from current leases and other
assumptions that market participants would use when pricing the investment property under current market
conditions. The valuation for 2015 was based on an independent assessment by CBRE Valuations Pty Ltd as
at 31 December 2015.
(c)
Leasing arrangements
The investment properties are leased to tenants under long-term operating leases with rentals payable monthly.
Minimum lease payments receivable on investment properties are as follows:
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Within one year
Later than one year but not later
than five years
726
476
726
476
1,846
60
1,846
60
Total future minimum lease
payments receivable
2,572
536
2,572
536
257
54
257
54
Applicable GST recoverable from
the Taxation Authority
37
48
UNSW • Annual Report 2015
49
-
-
Exchange differences
(Impairment charges)/reversal of impairment
-
Accumulated impairment
271,304
-
-
Accumulated depreciation
204,914
-
-
Net book amount
271,304
204,914
Valuation
At 31 December 2014
Cost
-
-
Write-back for assets disposed
271,304
-
-
Depreciation/impairment:
Depreciation
204,914
-
-
Adjustment to accumulated depreciation
Closing net book amount
12,501
-
Revaluation:
Adjustment to cost and valuation
-
-
Exchange differences
Transfers
-
-
-
(173,505)
-
201,801
Additions
Assets disposal
258,803
176,618
Year ended 31 December 2014
Opening net book amount
-
Accumulated impairment
258,803
-
-
Accumulated depreciation
176,618
-
-
Net book amount
258,803
176,618
At 1 January 2014
Cost
$'000
Campus
land
Valuation
$'000
Consolidated
Works in
progress
20 Property, plant and equipment
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
-
182,133
-
(45,410)
227,543
-
182,133
-
-
-
(2,801)
(1,739)
11,868
-
531
-
6,552
167,722
167,722
-
(40,870)
208,592
$'000
Off-campus
properties
-
1,242,178
-
(1,237,215)
2,479,393
-
1,242,178
-
(5)
-
(93,644)
9,162
31,687
3
171,585
-
-
1,123,390
1,123,390
-
(1,152,728)
2,276,118
$'000
Campus
buildings
-
5,161
-
-
5,161
-
5,161
-
-
-
-
-
(76)
-
-
-
-
5,237
5,237
-
-
5,237
$'000
Works of
art
11,068
-
(48,945)
-
60,013
11,068
-
(6)
8,745
(7,305)
-
-
7
-
(8,764)
5,529
12,862
12,862
-
(50,379)
-
63,241
$'000
Computer
equipment
38
659
-
(369)
-
1,028
659
-
-
32
(130)
-
-
-
-
(128)
181
704
704
-
(271)
-
975
$'000
Motor
vehicles
-
13,112
-
(9,759)
22,871
-
13,112
-
(2)
144
(1,530)
2,496
(1,160)
10
1,389
(144)
77
11,832
11,832
-
(10,867)
22,699
$'000
Leasehold
improvements
140,239
(400)
(147,439)
-
288,078
140,239
148
(2)
9,025
(23,645)
-
-
-
-
(9,463)
35,680
128,496
128,496
(548)
(132,817)
-
261,861
$'000
Other
equipment
4,589
-
(86,521)
-
91,110
4,589
-
-
-
(620)
-
-
-
-
-
632
4,577
4,577
-
(85,901)
-
90,478
$'000
Library
collections
-
11,895
-
-
11,895
-
11,895
-
-
-
-
-
(92)
-
-
-
-
11,987
11,987
-
-
11,987
$'000
Rare books
Total
2,087,252
(400)
(1,575,658)
3,018,167
645,143
2,087,252
148
(15)
17,946
(129,675)
9,919
54,728
20
-
(18,499)
250,452
1,902,228
1,902,228
(548)
(1,473,833)
2,783,436
593,173
$'000
50
Campus
land
-
278,416
-
60,967
Net book amount
-
-
At 31 December 2015
Cost
Accumulated impairment
278,416
60,967
Closing net book amount
Accumulated depreciation
-
-
(Impairment charges)/reversal of impairment
-
-
-
Exchange differences
278,416
-
-
Write-back for assets disposed
-
-
-
Depreciation/impairment:
Depreciation
60,967
-
-
Adjustment to accumulated depreciation
Valuation
7,112
-
Revaluation:
Adjustment to cost and valuation
-
-
Exchange differences
Transfers
-
101,288
(245,235)
-
204,914
Additions
Assets disposal
271,304
-
$'000
$'000
Consolidated
Year ended 31 December 2015
Opening net book amount
Works in
progress
20 Property, plant and equipment (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
209,404
-
(50,106)
259,510
-
209,404
-
-
-
(3,430)
(1,266)
10,301
-
17,307
-
4,359
182,133
$'000
Off-campus
properties
1,413,890
-
(1,349,131)
2,763,021
-
1,413,890
-
-
-
(99,851)
(12,065)
57,120
-
226,508
-
-
1,242,178
$'000
Campus
buildings
5,099
-
-
5,099
-
5,099
-
-
-
-
-
(104)
-
-
-
42
5,161
$'000
Works of
art
8,804
-
(50,553)
-
59,357
8,804
-
(14)
4,908
(6,502)
-
-
13
1,362
(4,910)
2,879
11,068
$'000
Computer
equipment
39
833
-
(458)
-
1,291
833
-
-
65
(154)
-
-
-
-
(79)
342
659
$'000
Motor
vehicles
12,238
-
(13,039)
25,277
-
12,238
-
(17)
-
(1,339)
(1,924)
2,259
29
58
-
60
13,112
$'000
Leasehold
improvements
151,746
(371)
(165,810)
-
317,927
151,746
29
(8)
7,415
(25,778)
-
-
12
-
(7,925)
37,762
140,239
$'000
Other
equipment
4,102
-
(87,396)
-
91,498
4,102
-
-
-
(875)
-
-
-
-
-
388
4,589
$'000
Library
collections
11,949
-
-
11,949
-
11,949
-
-
-
-
-
54
-
-
-
-
11,895
$'000
Rare books
Total
2,157,448
(371)
(1,716,493)
3,343,272
531,040
2,157,448
29
(39)
12,388
(137,929)
(15,255)
76,742
54
-
(12,914)
147,120
2,087,252
$'000
51
Campus
land
-
-
(Impairment charges)/reversal of impairment
-
Accumulated impairment
271,304
-
-
Accumulated depreciation
204,181
-
-
Net book amount
271,304
204,181
Valuation
271,304
-
-
Write-back of assets disposed
204,181
-
-
Depreciation/impairment:
Depreciation
At 31 December 2014
Cost
-
-
Adjustment to accumulated depreciation
Closing net book amount
12,501
-
Revaluation:
Adjustment to cost and valuation
Transfers
-
-
-
(173,505)
-
201,068
Additions
Assets disposals
258,803
176,618
Year ended 31 December 2014
Opening net book amount
-
Accumulated impairment
258,803
-
-
Accumulated depreciation
176,618
-
-
Net book amount
258,803
176,618
At 1 January 2014
Cost
$'000
Valuation
$'000
Parent
Works in
progress
20 Property, plant and equipment (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
-
182,133
-
(45,410)
227,543
-
182,133
-
-
(2,801)
(1,739)
11,868
531
-
6,552
167,722
167,722
-
(40,870)
208,592
$'000
Off-campus
properties
-
1,240,192
-
(1,231,444)
2,471,636
-
1,240,192
-
-
(93,203)
9,162
31,687
171,585
-
-
1,120,961
1,120,961
-
(1,147,403)
2,268,364
$'000
Campus
buildings
-
5,156
-
-
5,156
-
5,156
-
-
-
-
(76)
-
-
-
5,232
5,232
-
-
5,232
$'000
Works of
art
10,624
-
(45,914)
-
56,538
10,624
-
7,954
(6,937)
-
-
-
(7,970)
5,341
12,236
12,236
-
(46,931)
-
59,167
$'000
Computer
equipment
40
544
-
(191)
-
735
544
-
32
(83)
-
-
-
(128)
181
542
542
-
(140)
-
682
$'000
Motor
vehicles
-
12,988
-
(9,573)
22,561
-
12,988
-
-
(1,448)
2,496
(1,160)
1,389
-
77
11,634
11,634
-
(10,621)
22,255
$'000
Leasehold
improvements
140,146
(400)
(147,024)
-
287,570
140,146
148
9,025
(23,611)
-
-
-
(9,462)
35,671
128,375
128,375
(548)
(132,438)
-
261,361
$'000
Other
equipment
4,589
-
(86,521)
-
91,110
4,589
-
-
(620)
-
-
-
-
632
4,577
4,577
-
(85,901)
-
90,478
$'000
Library
collections
-
11,895
-
-
11,895
-
11,895
-
-
-
-
(92)
-
-
-
11,987
11,987
-
-
11,987
$'000
Rare books
Total
2,083,752
(400)
(1,566,077)
3,010,095
640,134
2,083,752
148
17,011
(128,703)
9,919
54,728
-
(17,560)
249,522
1,898,687
1,898,687
(548)
(1,464,304)
2,775,233
588,306
$'000
52
Campus
land
96,413
-
278,416
-
60,638
Net book amount
-
-
Accumulated impairment
At 31 December 2015
Cost
Accumulated depreciation
278,416
60,638
Closing net book amount
-
-
-
(Impairment charges)/reversal of impairment
278,416
-
-
Write-back for asset disposed
-
-
-
Depreciation/impairment:
Depreciation
60,638
-
-
Valuation
7,112
-
Adjustment to accumulated depreciation
-
-
204,181
(239,956)
271,304
-
$'000
$'000
Revaluation:
Adjustment to cost and valuation
Transfers
Assets disposals
Additions
Parent
Year ended 31 December 2015
Opening net book amount
Works in
progress
20 Property, plant and equipment (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
209,404
-
(50,106)
259,510
-
209,404
-
-
(3,430)
(1,266)
10,301
17,307
-
4,359
182,133
$'000
Off-campus
properties
1,408,691
-
(1,343,180)
2,751,871
-
1,408,691
-
-
(99,147)
(12,589)
57,644
222,591
-
-
1,240,192
$'000
Campus
buildings
5,094
-
-
5,094
-
5,094
-
-
-
-
(104)
-
-
42
5,156
$'000
Works of
art
7,470
-
(47,385)
-
54,855
7,470
-
4,537
(6,008)
-
-
-
(4,539)
2,856
10,624
$'000
Computer
equipment
41
710
-
(279)
-
989
710
-
21
(109)
-
-
-
(25)
279
544
$'000
Motor
vehicles
12,163
-
(12,715)
24,878
-
12,163
-
-
(1,218)
(1,924)
2,259
58
-
-
12,988
$'000
Leasehold
improvements
151,684
(371)
(165,351)
-
317,406
151,684
29
7,416
(25,743)
-
-
-
(7,925)
37,761
140,146
$'000
Other
equipment
4,102
-
(87,396)
-
91,498
4,102
-
-
(875)
-
-
-
-
388
4,589
$'000
Library
collections
11,949
-
-
11,949
-
11,949
-
-
-
-
54
-
-
-
11,895
$'000
Rare books
Total
2,150,321
(371)
(1,706,412)
3,331,718
525,386
2,150,321
29
11,974
(136,530)
(15,779)
77,266
-
(12,489)
142,098
2,083,752
$'000
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
20 Property, plant and equipment (continued)
(a)
Valuations of campus land and off-campus properties
Campus land and off-campus properties (comprises land and buildings) are fair valued based on the highest
and best use of the assets. The value reflects the amounts for which the assets could be exchanged between
willing parties in an arm's length transaction, based on current prices in an active market for similar properties
in the same location and condition. The revaluations for 2015 were based on independent assessments by
CBRE Valuations Pty Ltd as at 31 December 2015.
(b)
Valuations of campus buildings and leasehold improvements
Campus buildings and leasehold improvements are fair valued using the depreciated replacement cost basis.
The 2015 revaluations were based on independent assessments by CBRE Valuations Pty Ltd as at 31
December 2015.
(c)
Valuations of rare books
Rare books are stated at fair value to reflect the amounts for which the assets could be exchanged between
willing parties in an arm's length transaction, based on current prices in an active market. The 2015
revaluations were based on independent assessments by McWilliam & Associates Pty Ltd as at 31 December
2015.
(d)
Valuations of works of art
Works of art are stated at fair value to reflect the amounts for which the assets could be exchanged between
willing parties in an arm's length transaction, based on current prices in an active market. The 2015
revaluations were based on independent assessments by McWilliam & Associates Pty Ltd as at 31 December
2015.
(e)
Leasing arrangements
Certain parts of campus land, campus buildings and off-campus properties are leased to tenants under shortterm and long-term operating leases with rentals payable monthly.
Minimum lease payments by lessees to the Group and the parent entity (exclusive of GST) under noncancellable operating leases of properties not recognised in the financial statements are receivable as follows:
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Within one year
Later than one year but no later than five
years
Later than five years
6,725
6,846
10,851
10,346
15,806
2,886
14,378
6,364
33,623
26,333
32,756
36,807
Total future minimum lease payments
receivable
25,417
27,588
70,807
79,909
2,494
2,696
7,030
7,928
Total GST payable (at 10%)
42
UNSW • Annual Report 2015
53
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
21 Public Private Partnerships (PPP)
(a)
High Street Housing Project
In 2007, the parent entity entered into a PPP with UNSW Village Pty Limited to finance, design, construct and
commission student accommodation and maintain, manage and operate it for a period of 40 years.
On 1 January 2010, the parent entity granted to UNSW Village Pty Limited a 40 year lease, the concession
period for the land making up the site. The parent entity retains the legal title to the land. The arrangement is
treated as an operating lease with the parent entity being a lessor and the land is leased at a peppercorn rent.
The land is recorded at fair value at the balance sheet date.
Management estimates that the fair value of the student accommodation at the end of the concession period
will be nil, refer to note 1(e).
(b)
New College Postgraduate Village Project
In 2007, the parent entity entered into a PPP with New College Postgraduate Village to finance, design,
construct and commission student accommodation and maintain, manage and operate it for a period of 49
years.
During 2009 the parent entity granted to New College Postgraduate Village a 49 year lease, the concession
period for the land making up the site. The parent entity retains the legal title to the land. The arrangement is
treated as an operating lease with the parent entity being a lessor and the land is leased at a peppercorn rent.
The land is recorded at fair value at the balance sheet date.
Management estimates that the fair value of the student accommodation at the end of the concession period
will be nil, refer to note 1(e).
43
54
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
22 Intangible assets
Consolidated
At 1 January 2014
Cost
Accumulated amortisation and impairment
Net book amount
Year ended 31 December 2014
Opening net book amount
Work in
progress
Patents
Computer
software
Digitalised
library
research
collections
$'000
$'000
$'000
$'000
6,522
8,557
79,533
(7,345)
(39,925)
6,522
1,212
39,608
3,041
50,383
-
3,296
Total
$'000
(255)
97,908
(47,525)
6,522
1,212
39,608
3,041
50,383
Additions
18,933
1,562
187
1,889
22,571
Disposals
-
Transfers
Amortisation/impairment
Amortisation
Impairment charge
Write-back of amortisation and impairment
on disposal
(318)
(648)
-
-
(180)
-
(1,239)
(580)
-
318
-
(4,991)
(384)
(1,228)
(5,555)
-
-
(1,239)
-
481
580
-
1,061
Closing net book amount
25,137
1,188
35,122
4,546
65,993
At 31 December 2014
Cost
25,137
5,185
119,251
Accumulated amortisation and impairment
-
9,471
79,458
(8,283)
(44,336)
(639)
(53,258)
Net book amount
25,137
1,188
35,122
4,546
65,993
Year ended 31 December 2015
Opening net book amount
25,137
1,188
35,122
4,546
65,993
Additions
17,859
1,415
-
2,160
21,434
Disposals
-
-
-
-
18,534
-
-
-
6
-
6
Transfers
Exchange differences
Amortisation/impairment
Amortisation
Write-back of amortisation and impairment
on disposal
Impairment charges
(18,534)
(12,990)
(482)
(166)
394
(1,327)
(5,094)
-
-
-
(14,317)
(4)
-
(4)
-
Closing net book amount
11,472
1,022
At 31 December 2015
Cost
11,472
10,404
(9,382)
1,022
48,564
Accumulated amortisation and impairment
Net book amount
11,472
(5,834)
-
-
Exchange differences
(574)
(482)
48,564
394
6,132
67,190
97,998
7,345
127,219
(49,434)
(1,213)
(60,029)
6,132
67,190
44
UNSW • Annual Report 2015
55
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
22 Intangible assets (continued)
Parent
Work in
progress
Computer
software
Digitalised
library
research
collections
$'000
$'000
$'000
At 1 January 2014
Cost
6,256
76,721
-
Accumulated amortisation and impairment
Net book amount
Year ended 31 December 2014
Opening net book amount
Additions
3,041
47,388
6,256
38,091
3,041
47,388
18,243
45
1,889
20,177
76
-
Closing net book amount
24,423
At 31 December 2014
Cost
24,423
(4,251)
-
Accumulated amortisation and impairment
Net book amount
86,273
(38,885)
38,091
-
Amortisation
(255)
6,256
(76)
Transfers
3,296
(38,630)
Total
$'000
(384)
(4,635)
33,961
4,546
62,930
76,842
5,185
106,450
(42,881)
(639)
24,423
33,961
Year ended 31 December 2015
Opening net book amount
24,423
33,961
4,546
62,930
Additions
17,159
-
2,160
19,319
Transfers
(17,528)
11,064
Closing net book amount
At 31 December 2015
Cost
Accumulated amortisation and impairment
Net book amount
Current
OS-HELP liability to Australian Government
Sundry creditors
Accrued expenses
Employee related liabilities
Total current trade and other payables
62,930
-
(4,442)
(12,990)
Impairment charge
23 Trade and other payables
17,528
-
Amortisation
4,546
(43,520)
(574)
(5,016)
-
-
47,047
6,132
(12,990)
64,243
24,054
94,370
7,345
125,769
(12,990)
(47,323)
(1,213)
(61,526)
11,064
47,047
6,132
64,243
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
2,974
44,262
37,135
21,430
2,566
33,896
51,484
19,173
2,974
38,407
30,872
21,574
2,566
29,233
46,595
18,312
105,801
107,119
93,827
96,706
45
56
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
24 Borrowings
Current
Unsecured
Financing arrangement
Consolidated
Note
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
761
625
761
625
761
625
761
625
38,341
39,102
38,341
39,102
Total non-current borrowings
38,341
39,102
38,341
39,102
Total borrowings
39,102
39,727
39,102
39,727
(a)
Total current borrowings
Non-current
Unsecured
Financing arrangement
(a)
(a)
Financing arrangements
On 15 December 2006, an agreement was signed with Westpac, in which the parent entity granted a 99 year
ground lease over 221-227 Anzac Parade to Westpac Office Trust for an amount of $41,000,000 (excluding
GST), and agreed to take a lease-back on the property for an initial period of 25 years. The parent entity also
holds two ten year options. The lease-back transaction is a “triple net lease” with the parent entity being
responsible for all outgoings, management and capital expenditure/maintenance expenditure for the full period
of the lease-back periods. The transaction was completed on 12 January 2007.
On 22 December 2009, Westpac Office Trust sold the rights and assigned their rights and obligations under the
tenancy lease agreements to the new owners.
The parent entity has retained the significant risks and rewards of ownership of the property, thus it has treated
the transaction as a financing arrangement. Funds received under the transaction have been disclosed as an
interest bearing liability. Payments of “rent” under the lease-back agreement have been treated as interest and
principal repayments. The building will continue to be carried in accordance with the parent entity’s accounting
policy for property, plant and equipment.
The financing arrangement has a borrowing rate of 6% (2014: 6%).
As at 31 December 2015, the maturity analysis of the borrowing costs and principal repayments was as follows:
Consolidated
Within one year
Later than one year but not later than
five years
Later than five years
Borrowing costs
Total
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
3,202
3,108
3,202
3,108
13,796
47,684
(25,580)
13,395
51,288
(28,064)
13,796
47,684
(25,580)
13,395
51,288
(28,064)
39,102
39,727
39,102
39,727
Within one year
Later than one year but not later than
five years
Later than five years
761
625
761
625
4,658
33,683
3,986
35,116
4,658
33,683
3,986
35,116
Present value of loan principal
39,102
39,727
39,102
39,727
46
UNSW • Annual Report 2015
57
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
24 Borrowings (continued)
(b)
Bank loan facilities
Unrestricted access was available at balance date to the following line of credit:
Consolidated
(c)
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Bank loan facilities
Total facilities
250,000
250,000
250,000
250,000
Unused at balance date
250,000
250,000
250,000
250,000
Fair value
The carrying amounts of borrowings at balance sheet date are approximate to their fair value. More information
is provided in note 36.
(d)
Risk exposures
Information about the Group and the parent entity's exposure to risk arising from borrowings is provided in note
35.
47
58
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
25 Provisions
Consolidated
Note
Current provisions expected to be
settled within 12 months
Employee benefits
Annual leave
Long service leave
Employment on-costs
Deferred government benefits for
superannuation2
Workers compensation
Other
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
45,730
24,949
718
43,805
24,323
853
42,568
24,208
718
41,162
23,705
853
81,607
710
11,173
55,743
1,494
10,931
81,607
716
11,173
55,743
1,069
10,992
164,887
137,149
160,990
133,524
Employee benefits
Annual leave
Long service leave
8,470
130,031
8,939
124,899
8,406
127,013
8,879
122,147
Subtotal
138,501
133,838
135,419
131,026
Total current provisions
303,388
270,987
296,409
264,550
30,151
28,933
27,607
26,754
37(d)
9,578
4,173
9,578
4,173
37(d)
1,406,601
6,074
395
1,429,648
6,174
395
1,406,601
6,074
395
1,429,648
6,174
395
Total non-current provisions
1,452,799
1,469,323
1,450,255
1,467,144
Total provisions
1,756,187
1,740,310
1,746,664
1,731,694
37(d)
Subtotal
Current provisions expected to be
settled after more than 12 months
Non-current provisions
Employee benefits
Long service leave
Deferred non-government
benefits for superannuation1
Deferred government benefits
for superannuation2
Workers compensation
Other
1This
relates to the net liabilities of the Professorial Superannuation Fund (refer to note 37(d))
2These
amounts relate to the net liabilities of the SASS, SSS and SANCS superannuation schemes (refer to note 37(d)). Note that
these amounts also include the net liabilities of UNSW Global Pty Ltd of $2,523,000 (2014: $2,439,000).
48
UNSW • Annual Report 2015
59
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
25 Provisions (continued)
(a)
Movements in provisions
Movements in each class of provision during the financial year, other than employee benefits, are set out below:
Workers
compensation
$'000
7,668
471
(833)
(522)
Consolidated 2015
Carrying amount at start of year
Additional provisions recognised
Amounts used
Unused amounts reversed
6,784
Carrying amount at end of year
26 Other financial liabilities
Other
Total
$'000
11,326
342
(100)
11,568
Consolidated
$'000
18,994
813
(833)
(622)
18,352
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Current
Forward foreign exchange contracts
451
447
436
447
Total current other financial liabilities
451
447
436
447
Non-current
Forward foreign exchange contracts
10
19
10
19
Total non-current other financial liabilities
10
19
10
19
461
466
446
466
Total other financial liabilities
Further information about forward foreign exchange contracts is provided in note 18.
49
60
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
27 Other liabilities
Consolidated
Current
Income in advance1
Monies held from associated
parties
Other
Total current other liabilities
Non-current
Income in advance1
Other
Total non-current other liabilities
Total other liabilities
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
90,413
79,842
48,768
50,289
285
10,187
943
8,904
202
2,571
862
3,742
100,885
89,689
51,541
54,893
14,657
4,641
16,570
5,981
14,657
4,641
16,570
5,530
19,298
120,183
22,551
112,240
19,298
70,839
22,100
76,993
1Income in advance (current) includes research income of $31,819,000 (2014: $32,115,000), prepaid tuition fees of $45,042,000
(2014: $32,242,000), the current portion of the rental income received in advance from the Children's Cancer Institute Australia for
Medical Research (CCIA) of $1,862,000 (2014: $1,968,000), and the current portion of grant received in advance from the Health
Administration Corporation (HAC) to fund the construction of the Australian Advanced Treatment Centre of $5,153,000 (2014:
$6,525,000). Income in advance (non-current) represents the non-current portion of the rental income received in advance from the
CCIA of $14,657,000 (2014: $16,570,000).
50
UNSW • Annual Report 2015
61
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
28 Reserves and retained earnings
(a)
Reserves
Consolidated
Reserves
Property, plant and equipment
revaluation surplus
Available-for-sale financial assets
revaluation surplus
Foreign currency translation reserve
Total reserves
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
683,972
67,888
(526)
622,740
86,445
(634)
681,671
620,439
61,729
-
79,502
-
751,334
708,551
743,400
699,941
622,740
7,112
45,055
9,035
54
(104)
558,053
12,501
40,849
10,129
(92)
(76)
620,439
7,112
45,055
9,035
54
(104)
555,752
12,501
40,849
10,129
(92)
(76)
Movements
Property, plant and equipment
revaluation surplus
Opening balance at 1 January
Revaluation of campus land
Revaluation of campus buildings
Revaluation of off-campus properties
Revaluation of rare books
Revaluation of works of art
Revaluation of leasehold
improvements
Transfer to retained earnings
335
(255)
1,336
40
335
(255)
1,336
40
Closing balance at 31 December
683,972
622,740
681,671
620,439
Available-for-sale financial assets
revaluation surplus
Opening balance at 1 January
Gains/(losses) on revaluation
Transfer to income statement
86,445
(11,570)
(6,987)
96,590
10,585
(20,730)
79,502
(11,209)
(6,564)
89,345
10,592
(20,435)
Closing balance at 31 December
67,888
86,445
61,729
79,502
Foreign currency translation reserve
Opening balance at 1 January
Exchange differences on translation of
foreign operations
Closing balance at 31 December
Total reserves
(634)
(674)
-
-
108
40
-
-
(526)
(634)
-
-
743,400
699,941
751,334
708,551
51
62
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
28 Reserves and retained earnings (continued)
(b)
Retained earnings
Consolidated
2015
Opening balance at 1 January
Net result for the period
Actuarial gains/(losses) on defined
benefit superannuation plans
Transfer from reserves
Closing balance at 31 December
(c)
$'000
1,573,939
77,504
(7,165)
255
1,644,533
Parent
2014
$'000
1,462,348
130,050
(18,419)
(40)
1,573,939
2015
$'000
1,560,511
74,803
(7,159)
255
1,628,410
2014
$'000
1,452,657
125,498
(17,604)
(40)
1,560,511
Nature and purpose of reserves
(i) Property, plant and equipment revaluation surplus
The property, plant and equipment revaluation reserve is used to record increments and decrements on the
revaluation of non-current assets, as described in note 1(s).
(ii) Available-for-sale financial assets revaluation surplus
Changes in the fair value and exchange differences arising on translation of investments classified as availablefor-sale financial assets are taken to the available-for-sale financial assets revaluation surplus, as described in
note 1(o). Amounts are recognised in the income statement when the associated assets are sold or impaired.
(iii) Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entities are taken to the foreign currency
translation reserve, as described in note 1(f). The reserve is recognised in the income statement when the net
investment is disposed.
52
UNSW • Annual Report 2015
63
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
29 Key management personnel disclosures
(a)
Council Members
The following persons were responsible persons and executive officers of the parent entity during the financial
year:
(i) Official Council Members
Mr David M. Gonski, AC, Chancellor
Professor Ian Jacobs, President and Vice-Chancellor (commenced 2 February 2015)
Professor Prem Ramburuth, President of the Academic Board
(ii) Ministerial Appointments
Ms Jillian S. Segal, AM, Deputy Chancellor
Mr Brian Long, Pro-Chancellor
(iii) Elected Council Members
Associate Professor Dorottya Fabian
Scientia Professor John Piggott
Mr Aaron Magner
Mr Billy Bruffey
Ms Emma Lovell
(iv) Council-appointed Members
Dr Jennifer Alexander, Pro-Chancellor
Ms Maxine Brenner
Mr Nicholas Carney
Mr Matthew T. Grounds
Mr Warwick Negus
(v) Council Members' term of office completed in 2015
Professor Frederick G. Hilmer, AO (resigned 31 January 2015)
(b)
Other key management personnel
The following persons also had authority and responsibility for planning, directing and controlling the activities
of the Group, directly or indirectly, during the financial year:
Professor Les D. Field, AM
Professor Iain Martin
Mr Peter Noble
Mr Andrew Walters
Ms Jennie Lang
Mr Neil D. Morris
Mr David Ward
Vice-President and Deputy Vice-Chancellor (Research)
Vice-President and Deputy Vice-Chancellor (Academic)
Vice-President and Chief of Staff (commenced 2 February 2015)
Vice-President, Finance and Operations and Chief Financial Officer
(commenced 1 August 2015)
Vice-President, Advancement
Vice-President, Campus Life and Community Engagement
Vice-President, Human Resources (commenced 15 June 2015)
Executive Officers' term of office completed in 2015:
Mr Stephen Rees
Professor Merlin Crossley
Professor David Dixon
Acting Vice-President, Finance and Operations and Chief Financial
Officer (acting role ceased 1 August 2015)
Dean, Faculty of Science (membership ceased 14 June 2015)
Dean, Faculty of Law (membership ceased 14 June 2015)
53
64
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
29 Key management personnel disclosures (continued)
(c)
Remuneration of Council Members and executives
Consolidated
2015
Parent
2015
2014
2014
Remuneration of Council Members
Nil
$90,000 to $104,999
$170,000 to $184,999
$200,000 to $214,999
$225,000 to $239,999
$285,000 to $299,999
$300,000 to $314,999
$345,000 to $359,999
$375,000 to $389,999
$420,000 to $434,999
$450,000 to $464,999
$980,000 to $994,999
$1,010,000 to $1,024,999
10
1
1
1
1
1
1
14
1
1
1
1
1
1
1
-
10
1
1
1
1
1
1
14
1
1
1
1
1
1
1
-
Total
16
21
16
21
In 2015, the Council consists of 15 members (2014: 15 members). Council members include the Group's
employees who may be ex-officio members or elected staff members. No Council member (including
Chancellor and Deputy Chancellor) has received any remuneration in his/her capacity as a Council member.
Council members may also be executive officers of the parent entity. Where this is the case they have been
included in the remuneration above but excluded from the remuneration band of the executive officers.
There were six Council members (2014: seven) who received remuneration as employees of the parent entity.
There were ten Council members (2014: fourteen) who did not receive remuneration as employees of the
parent entity.
Consolidated
2015
Remuneration of executive officers
$145,000 to $159,999
$170,000 to $184,999
$200,000 to $214,999
$230,000 to $244,999
$245,000 to $259,999
$360,000 to $374,999
$380,000 to $394,999
$420,000 to $434,999
$440,000 to $454,999
$455,000 to $469,999
$550,000 to $564,999
$610,000 to $624,999
$640,000 to $654,999
Total
Parent
2015
2014
2014
1
1
1
2
1
1
1
1
1
-
1
1
1
1
1
1
1
1
1
1
1
2
1
1
1
1
1
-
1
1
1
1
1
1
1
1
10
8
10
8
54
UNSW • Annual Report 2015
65
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
29 Key management personnel disclosures (continued)
(d)
Key management personnel compensation
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Short-term employee benefits
Post-employment benefits
Termination benefits
4,920
624
199
5,275
609
248
4,920
624
199
5,275
609
248
Total
5,743
6,132
5,743
6,132
30 Remuneration of auditors
During the year, the following fees were incurred for services provided by the auditor of the parent entity, its related
practices and non-related audit firms:
(a)
Audit of the financial statements
Audit Office of NSW
Audit of financial statements
Audit of subsidiaries' financial
statements paid by parent entity
Other audit firms
Total
(b)
Other audit and assurance services
Audit Office of NSW
Total
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
708
713
405
405
69
158
74
119
69
-
74
-
935
906
474
479
25
26
25
26
960
932
499
505
55
66
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
31 Contingencies
(a)
Contingent liabilities
Guarantees
The parent entity has a bank guarantee of $650,000 issued by the ANZ Banking Group in favour of Harina
Company Limited for the lease of premises at 1 O'Connell Street, Sydney.
UNSW Global Pty Ltd has a bank guarantee of $583,000 issued by the ANZ Banking Group as a rental bond in
relation to student accommodation at 159-171 Anzac Parade, Kensington and this will expire on 11 June 2020.
The parent entity has a bank guarantee of $260,000 issued by the ANZ Banking Group in connection with an
ATA Carnet for the temporary admission of goods. This bank guarantee is for the life of the Carnet for which it
was issued and will continue until the Carnet has actually been acquitted by the issuing Body or the relevant
National Guaranteeing Organisation.
The parent entity is a licensed self-insurer for workers compensation in New South Wales (NSW) and the
Australian Capital Territory (ACT). In NSW the licence is issued under Division 5 of Part 7 of the Workers
Compensation Act 1987 and under Chapter 8, Part 8.1 of the ACT Workers Compensation Act 1951. In
accordance with both licences the Group has the following bank guarantees:
(i) $2,928,000 with the ANZ Banking Group in favour of WorkCover New South Wales,
(ii) $750,000 with the ANZ Banking Group in favour of the Default Insurance Fund.
Letters of Commitment
The parent entity has issued letters of commitment to controlled entities to ensure that those entities are able to
meet their debts when they become due. The total of letters of commitment for parent in 2015 is $11,750,000
(2014: $11,550,000).
Litigations
The Group is subject to a number of legal claims and associated potential liabilities, which arise from the
activities of the Group in the ordinary course of business, none of which are individually significant. Additionally,
there are a number of legal claims against the Group, which cannot be quantified at this stage and for which no
provision is included.
56
UNSW • Annual Report 2015
67
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
32 Commitments
(a)
Capital commitments
Capital expenditure contracted for at the balance sheet date but not recognised as liabilities are as follows:
Consolidated
Parent
Property, plant and equipment
Within one year
Later than one year but not later than five
years
Total
(b)
2015
2014
2015
2014
$'000
$'000
$'000
$'000
136,610
65,275
136,610
65,275
18,765
4,371
18,765
4,371
155,375
69,646
155,375
69,646
Lease commitments
Commitments for minimum lease payments in relation to non-cancellable operating leases which are not
recognised in the financial statements are as follows:
Consolidated
Parent
2015
2014
2015
2014
$'000
$'000
$'000
$'000
Within one year
Later than one year but not later than five
years
Later than five years
9,031
8,294
3,832
2,956
27,550
7,735
27,630
13,855
10,454
7,424
8,069
10,578
Total future minimum lease payments
44,316
49,779
21,710
21,603
199,691
119,425
177,085
91,249
19,840
11,572
17,638
8,863
Total commitments
Applicable GST recoverable from
the Taxation Authority
57
68
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
33 Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in note 1(b).
Ownership interest
Name of Entity
NewSouth Innovations Pty Limited
- Cystemix Pty Ltd
Qucor Pty Ltd1
UNSW Global Pty Ltd
- UNSW Global (Singapore) Pte Limited
- UNSW Global India Pvt Limited2
- NewSouth Global (Thailand) Ltd3
- Australian Education Consultancy Ltd
UNSW (Hong Kong) Ltd
The University of New South Wales
Foundation Ltd
- as Trustee for the University of New
South Wales Foundation
- as Trustee for the New South Wales
Minerals Industry/University of New
South Wales Education Trust
UNSW Hong Kong Foundation Limited
UNSW & Study Abroad - Friends and
US Alumni, Inc
UK Friends of UNSW Australia
University of New South Wales Press
Ltd
Scientia Clinical Research Limited4
AGSM Ltd5
1Ownership
Principal place of
business
Australia
Australia
Australia
Australia
Singapore
India
Thailand
Hong Kong
Hong Kong
2015
2014
%
%
100
100
60
100
100
100
100
100
100
100
60
100
100
100
49
100
100
Australia
100
100
Australia
100
100
Australia
Hong Kong
100
100
100
100
USA
UK
100
100
100
100
Australia
Australia
Australia
100
100
-
100
100
split: 30% UNSW, 30% NewSouth Innovations Pty Ltd, 40% held for the benefit of the Researchers.
2Ownership
split: 99.6% UNSW Global Pty Ltd, 0.4% Australian Education Consultancy Ltd. The Board resolved to place the
company in a dormant stage from 31 October 2013.
3The
company applied for dissolution in December 2013 and completed the liquidation and deregistration on 9 February 2015.
4Incorporated
on 21 July 2015.
5The
Board resolved on 26 November 2013 to liquidate the company. The company completed the liquidation in June 2015 and
was formally deregistered on 25 November 2015.
58
UNSW • Annual Report 2015
69
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
34 Reconciliation of net result after income tax to net cash provided by operating activities
Consolidated
Net result for the period
Depreciation and amortisation
Write-down on investments to recoverable
amount
Write-down/(reversal) on property, plant and
equipment and intangible assets
Net losses on disposal of property, plant
and equipment
Net gains on sale of investments
Other non-cash items
Share of (profit)/loss of associates and joint
ventures not received as dividends or
distributions
2014
2015
2014
$'000
77,504
143,763
$'000
130,050
135,230
$'000
74,803
141,546
$'000
125,498
133,338
178
23
-
-
14,288
1,091
12,961
392
(6,569)
(162)
531
(23,373)
(365)
321
(5,521)
(136)
(2,903)
(6,725)
226,491
Change in operating assets and liabilities
(Increase)/decrease in sundry and student
debtors
(Increase)/decrease in investment income
receivable
(Increase)/decrease in accrued income
(Increase)/decrease in inventories
(Increase)/decrease in sundry advances
(Increase) in payments in advance
(Increase)/decrease in other assets
Increase/(decrease) in deferred
superannuation
Increase/(decrease) in trade and other
payables
Increase/(decrease) in income in advance
Increase/(decrease) in other liabilities
Increase in provisions
Net cash provided by operating activities
Parent
2015
236,462
(148)
373
(21,210)
(365)
-
-
223,974
237,486
1,604
(4,576)
(9,831)
(12,146)
(2,269)
6,129
9
(41)
(4,141)
1,036
(1,653)
(4,482)
(72)
258
(5,525)
(2,280)
(2,268)
6,108
(27)
(3,957)
1,032
(1,654)
(4,363)
261
(5,670)
(2,281)
4,564
(18,708)
4,570
(17,899)
(1,318)
8,658
(612)
7,655
16,024
4,661
2,593
26,582
(2,879)
(3,434)
(2,740)
6,748
14,464
(4,094)
1,445
25,904
21,274
12,822
(6,678)
(6,033)
247,765
249,284
217,296
231,453
59
70
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
35 Financial risk management
The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk
and cash flow interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses on
the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance
of the Group.
Financial risk management is governed by the UNSW Treasury Policy and managed by the UNSW Treasury and
Investment Services (UNSW Treasury). The UNSW Investment Policy is conformed to the UNSW Treasury Policy for
financial risk management purposes.
The Policy specifically covers:




Foreign exchange risk
Interest rate risk
Credit risk
Liquidity risk
The Group uses different methods to measure different types of risk to which it is exposed at the reporting date. These
methods include foreign exchange exposure analysis, sensitivity analyses (foreign exchange, price and interest rate
risks); approved counterparty limits linked to credit ratings for financial institution credit risk; and ageing analysis for
non-financial institution credit risk.
UNSW Treasury Policy prohibits the Group from engaging in any speculative trading in derivative instruments.
Derivative instruments are entered into for the purposes of managing financial risk, such as foreign exchange risk. The
financial instruments used for foreign exchange risk management are spot and forward foreign exchange contracts.
(a)
Market risk
(i) Foreign exchange risk
Foreign exchange risk refers to the risk that the value of a financial commitment, recognised financial asset or
financial liability will fluctuate due to changes in foreign currency rates.
The Group and the parent entity operate internationally and are exposed to foreign exchange risk arising from
committed transactions such as research grants, expenditure to which the Group is bound or will imminently
incur, and financial assets and financial liabilities which have been recognised in the accounts. The economic
exposure to foreign exchange risk is minimised by entering derivative transactions in foreign exchange markets.
The major currency to which the Group is exposed is the US Dollar (USD).
The group companies are required to fully hedge the foreign exchange risk exposure arising from foreign
currency denominated borrowings. Any exception to this requires approval by the Director of Finance.
The sensitivity analysis below shows the effect on the post-tax net result and equity as at balance sheet date
had the Australian dollar weakened/strengthened by 11.7% against the US dollar (2014: 8.5%) at that date with
all other variables held constant.
The method used to arrive at the possible risk percentages is based on both statistical and non-statistical
analyses. The statistical analysis is based on currency movements for the last twelve months. This information
is then reviewed and if necessary adjusted for reasonableness under current economic circumstances.
60
UNSW • Annual Report 2015
71
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
35 Financial risk management (continued)
(a)
Market risk (continued)
The carrying amounts of the Group’s and the parent entity's financial instruments that are exposed to foreign
currency risk are primarily denominated in US dollars, as set out below:
2015
2014
A$'000
A$'000
Consolidated
Cash at bank and on hand
3,606
Sundry debtors
2,051
Sundry creditors
(177)
Accruals
Forward foreign exchange contracts
(241)
542
942
(924)
-
- sell foreign currency
4,715
4,641
- buy foreign currency
21,459
21,077
Parent
Cash at bank and on hand
3,386
466
Sundry debtors
2,051
Sundry creditors
(177)
Accruals
Forward foreign exchange contracts
(241)
684
(896)
-
- sell foreign currency
4,715
4,641
- buy foreign currency
20,790
20,661
(ii) Price risk
Price risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether
those changes are caused by factors specific to the individual financial instruments or its issuer, or factors
affecting all similar financial instruments traded in the market.
The Group and the parent entity are exposed to securities price risk arising from available-for-sale investments
on the statement of financial position. Neither the Group nor the parent entity is exposed to commodity price
risk.
61
72
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
35 Financial risk management (continued)
(a)
Market risk (continued)
The Group maintains investment portfolios characterised as short term, long term, and endowment. The
investment portfolios are governed by the UNSW Investment Policy and managed by the UNSW Treasury and
Investment Services (UNSW Treasury) who report to the Investment Sub Committee. The investment objective
of the short term, long term and endowment investment portfolios are determined by the Investment Sub
Committee giving consideration to primary and secondary objectives of each portfolio, risk appetite and
investment time frame.
UNSW Investment Policy sets out the acceptable risk parameters for the portfolios. Risk parameters for the
short term portfolio include a maturity of no greater than two years for any investment, limiting the impact of any
change in interest rates, and approved counterparty limits linked to credit ratings. Risk parameters of the long
term portfolios set by the UNSW Investment Policy include asset allocation and portfolio re-balancing
requirements. Portfolio performance is reported to the Finance Committee.
The Investment Sub Committee of the Finance Committee meets periodically to review portfolio performance,
fund manager selection, asset allocation, and other high level investment policy issues (for example the choice
of benchmarks and objectives of the investment portfolios), and to make recommendations on any proposed
changes to the UNSW Investment Policy.
The method used to arrive at the possible risk of 12% (2014: 7.7%) is based on both statistical and nonstatistical analyses. The statistical analysis is based on an observed range of actual historical price data for
comparable indices for the last twelve months. This information is then reviewed and if necessary adjusted for
reasonableness under current economic circumstances.
(iii) Cash flow and fair value interest rate risk
Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the
instrument will fluctuate due to changes in market interest rates.
The Group and the parent entity are exposed to interest rate risk predominantly from holding cash and cash
equivalents, and interest bearing borrowings. Financial instruments issued at variable rates give exposure to
cash flow interest rate risk. Financial instruments issued at fixed rates and carried at fair value expose the
Group to fair value interest rate risk.
As a result of obtaining committed 5 year debt facilities (refer Note 24(b)) UNSW has adopted an interest rate
hedging strategy in accordance with UNSW Treasury Policy. No interest rate hedging has been transacted.
During 2015 and 2014, the Group's borrowings at variable rates were denominated in Australian Dollars.
Following a review of the consensus forecast of the Reserve Bank of Australia (RBA) cash rate for 2015 by
private sector economists published by Bloomberg, a 50 basis point change (2014: 50 basis point change) is
deemed to be reasonably likely and is used for reporting interest rate risk.
62
UNSW • Annual Report 2015
73
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
35 Financial risk management (continued)
(a)
Market risk (continued)
(iv) Summarised sensitivity analysis
The following table summarises the sensitivity of the Group's and the parent entity's financial assets and
financial liabilities to foreign exchange risk, price risk and interest rate risk.
Consolidated
31 December 2015
Foreign exchange risk
Price risk
Interest rate risk
-11.7% USD +11.7% USD
-12%
+12%
-0.5%
+0.5%
Carrying Result Equity Result Equity Result Equity Result Equity Result Equity Result Equity
amount $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Financial assets
Cash at bank and on hand
Deposit at call and
investments originally
maturing within three months
Sundry debtors
Unlisted unit trusts
Listed equities
Unlisted equities
Forward foreign exchange
contracts
90,221
477
-
127,518
-
-
36,441
271
-
438,091
-
-
6
-
11,402
-
544 (1,652)
(377)
-
-
-
-
-
-
(451)
-
451
-
(638)
-
-
-
-
-
-
638
-
-
-
-
-
-
-
-
-
-
-
-
- (52,571)
- 52,571
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,368
-
-
-
-
-
2,093
-
-
-
-
-
-
-
-
-
(214)
(1,368)
Financial liabilities
Sundry creditors
44,262
(23)
-
19
-
-
-
-
-
-
-
-
-
Accrued expenses
37,135
(32)
-
25
-
-
-
-
-
-
-
-
-
(129)
-
164
-
-
-
-
-
-
(1,088)
-
1,710
-
- (53,939)
Forward foreign exchange
contracts
461
Total increase/(decrease)
Consolidated
31 December 2014
Foreign exchange risk
- 53,939 (1,089)
Price risk
-
-
-
-
1,089
-
Interest rate risk
-8.5% USD
+8.5% USD
-7.7%
+7.7%
-0.5%
+0.5%
Carrying Result Equity Result Equity Result Equity Result Equity Result Equity Result Equity
amount $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Financial assets
Cash at bank and on hand
56,371
Deposit at call and
investment originally maturing
within three months
45,128
-
-
Sundry debtors
25,954
87
-
435,162
-
-
9
-
Unlisted equities
6,987
-
Forward foreign exchange
contracts
1,450
1,870
Unlisted unit trusts
Listed equities
50
-
(42)
-
-
-
-
-
(282)
-
282
-
-
-
-
-
-
-
(226)
-
226
-
(73)
-
-
-
-
-
-
-
-
-
-
-
- (33,507)
- 33,507
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
538
-
-
-
-
-
-
-
-
-
-
-
-
-
- (1,578)
(538)
Financial liabilities
Sundry creditors
33,896
(85)
-
72
-
-
-
-
-
-
-
-
-
Accrued expenses
51,484
-
-
-
-
-
-
-
-
-
-
-
-
-
285
-
-
-
-
-
-
- (34,045)
Forward foreign exchange
contracts
Total increase/(decrease)
466
(338)
1,584
- (1,336)
- 34,045
(508)
-
-
-
-
508
-
63
74
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
35 Financial risk management (continued)
(a)
Market risk (continued)
Parent
31 December 2015
Foreign exchange risk
Price risk
Interest rate risk
-11.7% USD +11.7% USD
-12%
+12%
-0.5%
+0.5%
Carrying Result Equity Result Equity Result Equity Result Equity Result Equity Result Equity
amount $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Financial assets
Cash at bank and on hand
59,415
Deposit at call and
investments originally
maturing within three months
Sundry debtors
Unlisted unit trusts
Unlisted equities
Forward foreign exchange
contracts
448
-
69,518
-
-
29,471
271
-
430,215
-
-
9,198
-
544 (1,652)
(354)
-
-
-
-
-
-
(297)
-
297
-
(348)
-
-
-
-
-
-
348
-
-
-
-
-
-
-
-
-
-
-
-
- (51,626)
- 51,626
-
-
-
-
-
-
-
-
-
1,104
-
-
-
-
-
2,093
-
-
-
-
-
-
-
-
-
(214)
(1,104)
Financial liabilities
Sundry creditors
38,407
(23)
-
19
-
-
-
-
-
-
-
-
-
Accrued expenses
30,872
(32)
-
25
-
-
-
-
-
-
-
-
-
-
-
-
Forward foreign exchange
contacts
446
Total increase/(decrease)
Parent
31 December 2014
(59)
-
75
-
-
(1,047)
-
1,644
-
- (52,730)
Foreign exchange risk
- 52,730
(645)
Price risk
-
-
-
-
645
-
Interest rate risk
-8.5% USD
+8.5% USD
-7.7%
+7.7%
-0.5%
+0.5%
Carrying Result Equity Result Equity Result Equity Result Equity Result Equity Result Equity
amount $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Financial assets
Cash at bank and on hand
Deposit at call and
investments originally
maturing within three months
Sundry debtors
33,582
43
-
(36)
-
-
-
-
-
(168)
-
168
-
5,128
-
-
-
-
-
-
-
-
(26)
-
26
-
20,424
63
-
(53)
-
-
-
-
-
-
-
-
-
426,323
-
-
-
-
- (32,827)
- 32,827
-
-
-
-
Unlisted equities
4,853
-
-
-
-
-
-
374
-
-
-
-
Forward foreign exchange
contracts
1,450
1,833
-
-
-
-
-
-
-
-
-
Unlisted unit trusts
- (1,546)
(374)
Financial liabilities
Sundry creditors
29,233
(83)
-
70
-
-
-
-
-
-
-
-
-
Accrued expenses
46,595
-
-
-
-
-
-
-
-
-
-
-
-
-
285
-
-
-
-
-
-
- (33,201)
Forward foreign exchange
contracts
Total increase/(decrease)
466
(338)
1,518
- (1,280)
- 33,201
(194)
-
-
-
-
194
-
64
UNSW • Annual Report 2015
75
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
35 Financial risk management (continued)
(b)
Credit risk
Credit risk is the risk that a counterparty will cause a financial loss for the Group by not fulfilling its contractual
obligations.
The Group and the parent entity are exposed to credit risk arising from its dealings with financial institutions for
holdings of cash and cash equivalents, derivative financial instruments, fixed interest investments and deposits,
interest bearing investments classified as held to maturity and classified as available for sale. Non-financial
institution credit risk arises from credit exposures to customers, including outstanding receivables and
committed transactions.
Credit exposures arising from the UNSW's investment activities other than cash are outside the scope of
UNSW Treasury Policy. Exposures to individual cash investments and classes of cash investments with
financial institutions are included in the calculation of UNSW's maximum credit exposures.
Credit risk arising from cash and cash equivalents, derivative financial instruments and deposits with financial
institutions is managed by UNSW Treasury on a Group basis. The maximum permitted credit exposure to any
financial institution is determined on that financial institution’s current external credit rating issued by one of the
credit rating agencies, Standard and Poor’s (S&P), Moody's Investors Service (Moody's) or Fitch Ratings
(Fitch). Counterparties holding ratings from more than one rating agency will have their limit determined by
reference to the lowest rating held.
The Group's practise is to spread the net credit exposure among major financial institutions with short-term
ratings of A2/P2/F2 or above. The net exposure and the credit ratings of financial institution counterparties are
continuously monitored and the aggregate value of transactions is spread among approved counterparties. The
counterparties to the financial instruments are major Australian and international financial institutions.
The carrying amounts of financial assets recognised in the statement of financial position are disclosed in more
detail in notes 15, 16 and 18. This amount best represents the consolidated entity’s maximum exposure to
credit risk at the reporting date. In respect to those financial assets and the credit risk embodied within them,
the consolidated entity holds no significant collateral as security and there are no other significant credit
enhancements in respect of these assets. The credit quality of all financial assets that are neither past due nor
impaired is in accordance with the Treasury Policy and is consistently monitored in order to identify any
potential adverse changes in the credit quality. There are no significant financial assets that have had
renegotiated terms that would otherwise, without that renegotiation, have been past due or impaired.
(c)
Liquidity risk
Liquidity risk refers to the risk that an entity will encounter difficulty in meeting obligations associated with
financial liabilities that are settled by delivering cash or another financial asset.
Prudent liquidity risk management includes the continuing availability of Commonwealth government funding,
maintaining sufficient cash and marketable securities to meet short term needs, and the ability to close out
market positions. Daily monitoring of cash flow is carried out by UNSW Treasury to ensure there is adequate
liquidity to meet the Group’s expected obligations over the near term.
The Group and the parent entity held cash and cash equivalents of $217,739,000 and $128,933,000,
respectively as at 31 December 2015 (2014: $101,499,000 and $38,710,000 respectively), which include
deposits at call of $127,518,000 and $69,518,000, respectively (2014: $45,128,000 and $5,128,000
respectively), that are expected to readily generate cash inflows for managing liquidity risk.
The average interest rate of cash at bank was 2.13% (2014: 2.41%) per annum.
The tables below analyse the Group’s and the parent entity's financial liabilities into relevant maturity groupings
based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in
the table are the contractual undiscounted cash flows, which may not reconcile to the statement of financial
position. For forward foreign exchange contracts the cash flows have been estimated using spot rates
applicable at the reporting date.
65
76
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
35 Financial risk management (continued)
(c)
Liquidity risk (continued)
Within 1 year
1 - 5 years
5+ years
Total
2015
2014
2015
2014
2015
2014
2015
2014
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Consolidated
Sundry creditors
44,262
33,896
-
-
-
-
44,262
33,896
Accrued expenses
37,135
51,484
-
-
-
-
37,135
51,484
285
943
-
-
-
-
285
943
3,202
3,108
13,796
13,395
47,684
51,288
64,682
67,791
- (inflow)
(42,255)
(36,144)
(541)
(1,250)
-
-
(42,796)
(37,394)
- outflow
42,412
35,314
506
1,200
-
-
42,918
36,514
85,041
88,601
13,761
13,345
47,684
51,288
146,486
153,234
Monies held from associated parties
Financing arrangement
Forward foreign exchange contracts
Total financial liabilities
Within 1 year
1 - 5 years
5+ years
Total
2015
2014
2015
2014
2015
2014
2015
2014
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Parent
Sundry creditors
38,407
29,233
-
-
-
-
38,407
29,233
Accrued expenses
30,872
46,595
-
-
-
-
30,872
46,595
202
862
-
-
-
-
202
862
3,202
3,108
13,796
13,395
47,684
51,288
64,682
67,791
- (inflow)
(41,586)
(35,729)
(541)
(1,250)
-
-
(42,127)
(36,979)
- outflow
41,729
34,921
506
1,200
-
-
42,235
36,121
72,826
78,990
13,761
13,345
47,684
51,288
134,271
143,623
Monies held from associated parties
Financing arrangement
Forward foreign exchange contracts
Total financial liabilities
36 Fair value measurements
(a)
Fair value measurements
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or
for disclosure purposes.
The Group measures and recognises the following assets and liabilities at fair value on a recurring basis:

Derivative financial instruments

Available-for-sale financial assets

Investment properties

Land and buildings (campus land, campus buildings, off-campus properties and leasehold
improvements)

Works of art

Rare books
Fair value measurement of non-financial assets is based on the highest and best use of the asset.
66
UNSW • Annual Report 2015
77
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
36 Fair value measurements (continued)
(b)
Fair value hierarchy
The Group categorises assets and liabilities measured at fair value into a hierarchy based on the level of inputs
used in measurements.
Level 1
Level 2
Level 3
quoted prices (unadjusted) in active markets for identical assets or liabilities
inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly
inputs for the asset or liability that are not based on observable market data
(unobservable inputs)
(i) Recognised fair value measurements
Fair value measurements recognised in the balance sheet are categorised into the following levels at 31
December 2015.
Fair value measurements at 31 December 2015
Consolidated
Recurring fair value measurements
Financial assets
Available-for-sale financial assets
Note
Total
Level 1
Level 2
Level 3
$'000
$'000
$'000
$'000
18
438,091
-
438,091
6
6
-
-
11,402
-
2,204
9,198
142
142
-
-
544
450,185
148
544
440,839
9,198
8,851
-
8,851
-
Campus land
278,416
-
278,416
-
Off-campus properties
209,404
-
209,404
-
1,413,890
-
-
1,413,890
Unlisted unit trusts
Listed equities
Unlisted equities
Other
Derivatives financial instruments
Forward foreign exchange contracts
Total financial assets
Non-financial assets
Investment properties
Land and buildings
18
19
-
20
Campus buildings
12,238
-
-
12,238
Works of art
20
5,099
-
5,099
-
Rare books
Total non-financial assets
20
11,949
1,939,847
-
11,949
513,719
1,426,128
461
461
-
461
461
-
Leasehold improvements
Financial liabilities
Derivatives financial instruments
Forward foreign exchange contracts
Total liabilities
26
67
78
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
36 Fair value measurements (continued)
(b)
Fair value hierarchy (continued)
Fair value measurements at 31 December 2014
Consolidated
Recurring fair value measurements
Financial assets
Available-for-sale financial assets
Note
Total
Level 1
Level 2
Level 3
$'000
$'000
$'000
$'000
18
Unlisted unit trusts
435,162
-
435,162
9
9
-
-
6,987
-
2,134
4,853
Listed equities
Unlisted equities
Derivative financial instruments
Forward foreign exchange contracts
Total financial assets
-
18
1,450
-
1,450
-
443,608
9
438,746
4,853
8,247
-
8,247
-
Campus land
271,304
-
271,304
-
Off-campus buildings
182,133
-
182,133
-
1,242,178
-
-
1,242,178
Non-financial assets
Investment properties
Land and buildings
19
20
Campus buildings
13,112
-
-
13,112
Works of art
20
5,161
-
5,161
-
Rare books
20
11,895
-
11,895
-
1,734,030
-
478,740
1,255,290
Leasehold improvements
Total non-financial assets
Financial liabilities
Derivative financial instruments
Forward foreign exchange contracts
Total liabilities
26
466
-
466
-
466
-
466
-
Fair value measurements at 31 December 2015
Parent
Recurring fair value measurements
Financial assets
Available-for-sale financial assets
Note
Unlisted equities
Forward foreign exchange contracts
Total financial assets
Level 1
Level 2
Level 3
$'000
$'000
$'000
18
Unlisted unit trusts
Other
Derivative financial instruments
Total
$'000
430,215
-
430,215
-
9,198
-
-
9,198
142
142
-
-
18
544
-
544
-
440,099
142
430,759
9,198
68
UNSW • Annual Report 2015
79
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
36 Fair value measurements (continued)
(b)
Fair value hierarchy (continued)
Parent
Non-financial assets
Investment properties
Land and buildings
Note
19
Total
Level 1
Level 2
Level 3
$'000
$'000
$'000
$'000
8,851
-
8,851
-
Campus land
278,416
-
278,416
-
Off-campus buildings
209,404
-
209,404
-
1,408,691
-
-
1,408,691
20
Campus buildings
12,163
-
-
12,163
Works of art
20
5,094
-
5,094
-
Rare books
20
11,949
-
11,949
-
1,934,568
-
513,714
1,420,854
Leasehold improvements
Total non-financial assets
Financial liabilities
Derivative financial instruments
26
Forward foreign exchange contracts
Total liabilities
Fair value measurements at 31 December 2014
Parent
Recurring fair value measurements
Financial assets
Available-for-sale financial assets
Note
-
446
-
-
446
-
Total
Level 1
Level 2
Level 3
$'000
$'000
$'000
$'000
18
Unlisted unit trusts
Unlisted equities
Derivative financial instruments
Forward foreign exchange contracts
Total financial assets
446
446
426,323
-
426,323
-
4,853
-
-
4,853
18
1,450
-
1,450
-
432,626
-
427,773
4,853
8,247
-
8,247
-
Campus land
271,304
-
271,304
-
Off-campus buildings
182,133
-
182,133
-
1,240,192
-
-
1,240,192
Non-financial assets
Investment properties
Land and buildings
19
20
Campus buildings
12,988
-
-
12,988
Works of art
20
5,156
-
5,156
-
Rare books
20
11,895
-
11,895
-
1,731,915
-
478,735
1,253,180
Leasehold improvements
Total non-financial assets
Financial liabilities
Derivative financial instruments
Forward foreign exchange contracts
Total liabilities
26
466
-
466
-
466
-
466
-
There were no transfers between fair value hierarchy levels during the year.
UNSW's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the
reporting period.
69
80
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
36 Fair value measurements (continued)
(b)
Fair value hierarchy (continued)
(ii) Disclosed fair values
The Group has a number of assets and liabilities which are not measured at fair value, but for which fair values
are disclosed in the notes.
The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and
available-for-sale listed securities) are based on quoted market prices on the Australian Securities Exchange
for identical assets or liabilities, at the balance sheet date, unless otherwise stated. The quoted market price
used for financial assets held by the Group is the current bid price, which is the most representative of fair value
in the circumstances. These instruments are included in level 1.
The carrying value less any impairment provision of short term financial assets, current receivables and
payables are assumed to approximate their fair values due to their short term nature.
The fair value of current borrowings approximates the carrying amount, as the impact of discounting is not
significant (level 2). The carrying amounts of non-current borrowings at balance sheet date are approximate to
their fair value. The fair values of the financing arrangement are based on cash flows discounted at the
borrowing rate of 6% (level 2).
(c)
Valuation techniques used to derive level 2 and level 3 fair values
(i) Recurring fair value measurements
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) are determined using valuation techniques. These valuation techniques maximise the use of
observable market data where it is available and rely as little as possible on entity specific estimates. If all
significant inputs required to fair value an instrument are observable, the instrument is included in level 2. This
is the case for unlisted unit trusts.
If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for some unlisted equities.
The Group uses a variety of methods and makes assumptions that are based on market conditions existing at
each balance date. Specific valuation techniques used to value financial instruments include:




the use of quoted market prices or dealer quotes for similar instruments;
quoted market bid prices declared by fund managers are used to estimate fair value for unlisted unit
trusts;
the fair value of forward foreign exchange contracts is determined using forward exchange rates at the
balance sheet date; and
other techniques, such as discounted cash flow analysis, are used to determined fair value for the
remaining financial instruments.
All of resulting fair value estimates are included in level 2 except for some unlisted equities, explained in (d)
below.
The level in the fair value hierarchy is determined on the basis of the lowest level input that is significant to the
measurement in its entirety.
Campus land, campus buildings, off-campus properties, leasehold improvements, investment properties, works
of art and rare books are valued independently each year. At the end of each reporting period, the Group
updates their assessment of the fair value of each item, taking into account the most recent independent
valuations.
The best evidence of fair value is current prices in an active market for similar properties. Where such
information is not available, the valuer considers information from a variety of sources including:


current prices in an active market for properties of a different nature or recent prices of similar properties
in less active markets, adjusted to reflect those differences; and
multiples derived from prices in observed transactions involving comparable buildings in similar locations
(e.g. price per square metre).
70
UNSW • Annual Report 2015
81
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
36 Fair value measurements (continued)
(c)
Valuation techniques used to derive level 2 and level 3 fair values (continued)
All resulting fair value estimates for properties are included in level 2 except for campus buildings and leasehold
improvements.
Campus buildings and leasehold improvements are valued using the depreciated replacement cost (DRC)
approach. These buildings are considered specialised assets for which there is no active secondary market. As
such, the resulting fair value estimates are included in level 3.
(d)
Fair value measurements using significant unobservable inputs (level 3)
The following table is a reconciliation of level 3 items for the periods ended 31 December 2015 and 2014.
Consolidated
Level 3 Fair Value Measurements 2015
Opening balance at 1 January
Additions
Transfers from Work in progress
Campus
buildings
Leasehold
improvements
Unlisted
equities
$'000
$'000
$'000
1,242,178
Total
$'000
13,112
4,853
1,260,143
-
60
-
60
226,508
58
-
226,566
-
12
-
12
Revaluation
45,055
335
-
45,390
Depreciation
(99,851)
-
(101,190)
Foreign exchange differences
Net gains in other comprehensive income
Closing balance at 31 December
(1,339)
-
-
4,345
4,345
1,413,890
12,238
9,198
1,435,326
4,009
Level 3 Fair Value Measurements 2014
Opening balance
-
-
4,009
Net gains in other comprehensive income
-
-
844
844
Transfers from level 2
1,242,178
13,112
-
1,255,290
Closing balance
1,242,178
13,112
4,853
1,260,143
1,240,192
12,988
4,853
1,258,033
222,591
58
-
222,649
Revaluation
45,055
335
-
45,390
Depreciation
(99,147)
-
(100,365)
Parent
Level 3 Fair Value Measurements 2015
Opening balance 1 January
Transfers from Work in progress
(1,218)
-
-
4,345
4,345
1,408,691
12,163
9,198
1,430,052
Opening balance
-
-
4,009
4,009
Adoption of AASB13
-
-
844
844
Transfers from level 2
1,240,192
12,988
-
1,253,180
Closing balance
1,240,192
12,988
4,853
1,258,033
Net gains in other comprehensive income
Closing balance at 31 December
Level 3 Fair Value Measurement 2014
(i) Transfers between levels 2 and 3 and changes in valuation techniques
There have been no transfers between levels in 2015.
71
82
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
36 Fair value measurements (continued)
(d)
Fair value measurements using significant unobservable inputs (level 3) (continued)
(ii) Valuation inputs and relationships to fair value
The following table summarises the quantitative information about the significant unobservable inputs used in
level 3 fair value measurements. See (c) above for the valuation techniques adopted.
Description
Consolidated
2015
$'000
$'000
Fair value
Fair value
Unlisted
equities
1There
Parent
2015
11,402
Unobservable
inputs1
9,198 Discount rate
Range
of inputs
30%
Relationship of unobservable
inputs to fair value
The higher the discount rate, the
lower the value
were no significant inter-relationships between unobservable inputs that materially affect fair value.
(iii) Valuation processes
UNSW engages qualified external valuers to provide a valuation of the Group's unlisted equities at the end of
every financial year.
72
UNSW • Annual Report 2015
83
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans
All employees of the Group are entitled to benefits from the Group's superannuation plan on retirement, disability or
death. The Group's superannuation plan has defined benefits sections and defined contribution sections. The defined
benefit sections provide lump sum benefits based on years of service and final average salary. The defined
contribution section receives fixed contributions and the Group's legal or constructive obligation is limited to these
contributions.
The following sets out details in respect of the parent entity defined benefit section only.
(a)
Fund specific disclosure
(i) Nature of the benefits provided by the fund
State schemes (SSS, SANCS, SASS)
The Schemes are closed to new members and provide active members with defined benefits. The Pooled Fund
holds in trust, the investments of the closed NSW public sector superannuation schemes.
- State Superannuation Scheme (SSS)
- State Authorities Non-Contributory Superannuation Scheme (SANCS)
- State Authorities Superannuation Scheme (SASS)
The above schemes are all defined benefit schemes or at least a component of the final benefit is derived from
a multiple of a members salary and years of membership. All schemes are closed to new members.
The Professorial Superannuation Fund
The Fund is closed to new members and provides active members with a combination of accumulation benefits
and defined benefits based on professorial salary levels. Pensioner members receive pension payments from
the Fund based on professorial salary levels.
(ii) Description of the regulatory framework
State schemes (SSS, SANCS, SASS)
The schemes in the Pooled Fund are established and governed by the following NSW legislation:
- Superannuation Act 1916
- State Authorities Superannuation Act 1987
- Police Regulation (Superannuation) Act 1906
- State Authorities Non-Contributory Superannuation Scheme Act 1987and their associated regulations.
The schemes in the Pooled Fund are exempt public sector superannuation schemes under the Commonwealth
Superannuation Industry (Supervision) Act 1993 (SIS). The SIS legislation treats exempt public sector
superannuation funds as complying funds for concessional taxation and superannuation guarantee purposes.
Under a Heads of Government agreement, the New South Wales Government undertakes to ensure that the
Pooled Fund will conform to the principles of Commonwealth's retirement incomes policy relating to
preservation, vesting and reporting to members and that those members' benefits are adequately protected.
The New South Wales Government prudentially monitors and audits the Pooled Fund and the Trustee Board
activities in a manner consistent with the prudential controls of SIS legislation. These provisions are in addition
to the other legislative obligations on the Trustee Board and internal processes that monitor the Trustee Board's
adherence to the principles of the Commonwealth's retirement incomes policy.
An actuarial investigation of the Pooled Fund is performed every three years. The last actuarial investigation
was performed as at 30 June 2015.
Professorial Superannuation Fund
The Fund is subject to the provisions of the Superannuation Industry (Supervision) Act 1993, the Income Tax
Assessment Act 1997, and various other legislation and regulation applicable to Australian superannuation
funds. Any surplus Fund assets are subject to a limit of the asset ceiling. Under Superannuation Guarantee
laws, employers are required to make a minimum contribution of 9.5% of gross Ordinary Times Earnings into a
fund for active members or to provide a minimum level of defined benefit.
73
84
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans (continued)
(iii) Description of other entities' responsibilities for the governance of the funds
State Schemes (SSS, SANCS, SASS)
The Fund's Trustee is responsible for the governance of the Fund. The Trustee has a legal obligation to act
solely in the best interests of fund beneficiaries. The Trustee has the following roles:
- Administration of the Fund and payment to the beneficiaries from Fund assets when required in accordance
with the Fund rules;
- Management and investment of the Fund assets; and
- Compliance with other applicable regulations.
Professorial Superannuation Fund
The Fund's Trustee is responsible for the prudential operation of the Fund and is required to act in the best
interest of all members.
(iv) Description of risks
State Schemes (SSS, SANCS, SASS)
There are a number of risks to which the Fund exposes the entity. The more significant risks relating to defined
benefits are:
- Investment risk - The risk that investment returns will be lower than assumed and the Group will need to
increase contributions to offset this shortfall.
- Longevity risk - The risk that pensioners live longer than assumed.
- Pension indexation risk - The risk that pensions will increase at a rate greater than assumed, increasing future
pensions.
- Salary growth risk - The risk that wages or salaries (on which future benefit amounts for active members will
be based) will rise more rapidly than assumed, increasing defined benefit amounts and thereby requiring
additional employer contributions.
- Legislation risk - The risk that legislative changes could be made which increases the cost of providing the
defined benefits.
The defined benefit fund assets are invested with independent fund managers and have a diversified asset mix.
Each Fund has no significant concentration of investment risk or liquidity risk. The Trustees of the Fund are not
aware of any asset and liability matching strategies currently adopted by the plans to manage risk.
Professorial Superannuation Fund
Whilst the Fund remains an ongoing arrangement the main risk to the Group is the need to make additional
contributions to the Fund resulting from adverse investment experience, members and their spouses living
longer than expected, salary increases being greater than expected and Fund expenses being greater than
expected and allowed for in the recommended contribution rate.
(v) Description of any plan amendments, curtailments and settlements
State Schemes (SSS, SANCS, SASS)
There were no amendments, curtailments or settlements during the year.
Professorial Superannuation Fund
There were no amendments, curtailments or settlements during the year.
(vi) Funding arrangements
State Schemes (SSS, SANCS, SASS)
Funding arrangements are reviewed at least every three years following the release of the triennial actuarial
review and were last reviewed following completion of the triennial review as at 30 June 2015. Contribution
rates are set after discussions between the Group, SAS Trustee Corporation (STC) and NSW Treasury.
Funding positions are reviewed annually and funding arrangements may be adjusted as required after each
annual review.
Refer to note 1a(i) for information on changes to Government funding for the State Schemes.
Professorial Superannuation Fund
In the latest actuarial review as at 31 December 2015 it was recommended that the Parent will make nil
contributions to all defined benefit and pensioner members until 31 December 2016, subject to a further review
in 2016.
74
UNSW • Annual Report 2015
85
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans (continued)
(vii) Expected contributions
The Parent expects to make contributions estimated at $80,692,000 towards the SSS, SANCS and SASS
Schemes to maintain a one year asset buffer level in the Scheme's reserves in the next financial year. The
Parent expects to make a further $3,988,000 (2014: $4,561,000) contribution to the defined benefit plans.
(viii) Maturity profile
The weighted average duration of the State Schemes defined benefit obligation is 11.1 years to 12.8 years.
The weighted average duration of the Professorial Superannuation Fund defined benefit obligation is 8 years.
The expected maturity analysis of undiscounted benefit payments is as follows:
Defined benefit obligations - 31 December
2015 (State Super)
Defined benefit obligations - 31 December
2014 (State Super)
Defined benefit obligations - 31 December
2015 (PSF)
Defined benefit obligations - 31 December
2014 (PSF)
(b)
Less than 1
year
Between 1
and 2 years
Between 2
and 5 years
Over 5
years
Total
$'000
$'000
$'000
$'000
$'000
80,692
81,570
240,809
1,354,782
1,757,853
79,559
80,692
242,697
1,449,028
1,851,976
4,636
4,506
12,494
20,547
42,183
4,233
4,042
10,914
14,051
33,240
Categories of plan assets
State Schemes (SSS, SANCS, SASS)
All Pooled Fund assets are invested by STC at arm's length through independent fund managers and assets
are not separately invested for each entity. As such, the disclosures below relate to total assets of the Pooled
Fund.
The analysis of the plan assets as at 31 December 2015 is as follows:
$'000
Total
Quoted prices
in active markets
for identical assets
Level 1
Significant
observable
inputs
Level 2
Unobservable
inputs
Level 3
Assets category
Short term securities
2,978,554
2,943,012
35,542
-
Australian fixed interest
2,650,946
27,895
2,623,051
-
International fixed interest
Australian equities
828,608
828,683
-
9,512,077
9,057,851
(75)
446,022
8,204
1,002,792
12,451,510
9,268,278
2,180,440
Property
3,438,598
1,036,559
701,343
1,700,696
Alternatives
7,790,660
557,505
3,108,946
4,124,209
39,650,953
22,891,025
9,924,027
6,835,901
International equities
Total
Level 1 - quoted prices in active markets for identical assets or liabilities. The assets in this level are listed shares and listed
unit trusts.
Level 2 - inputs other than quoted prices observable for the asset or liability, either directly or indirectly. The assets in this
level are cash, notes, government, semi-government and corporate bonds, unlisted trusts where quoted prices are available
in active markets for identical assets or liabilities.
Level 3 - inputs for the asset or liability that are not based on observable market data. The assets in this level are unlisted
property, unlisted shares, unlisted infrastructure, distressed debt and hedge funds.
The fair value of the Pooled Fund assets includes $179,000,000 (2014: $243,000,000) in NSW Government
bonds.
75
86
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans (continued)
(b)
Categories of plan assets (continued)
Professorial Superannuation Fund
The analysis of the plan assets as at 31 December 2015 is as follows:
$'000
Total
Asset category
Cash and Cash Equivalents
Quoted prices
in active markets
for identical assets
Level 1
Significant
observable
inputs
Level 2
Unobservable
inputs
Level 3
1,848
1,848
-
-
Equity instruments
22,377
22,377
-
-
Debt securities
16,834
16,834
-
-
Total
41,059
41,059
-
-
Level 1 - quoted prices in active markets for identical assets or liabilities. The Fund's assets are invested in various portfolios
where unit price changes occur on a daily basis. On this basis, it is not unreasonable to assume the Fund's assets are traded
in an active market.
The fair value of the plan assets does not include amounts relating to any of the controlling entity's own
financial instruments and any property occupied by, or other assets used by, the controlling entity.
(c)
Actuarial assumptions and sensitivity
(i) Significant actuarial assumptions
The principal assumptions used for the purposes of the actuarial valuations were as follows (expressed as
weighted averages):
2015
2014
%
State schemes (SSS, SANCS, SASS)
Discount rate
Expected rate(s) of salary inflation
Professorial Superannuation Fund
Discount rate
Expected rate(s) of salary inflation
%
2.90
3.00 to 3.50
2.70
3.00
2.83
2.70 to 4.00
2.60
3.00
76
UNSW • Annual Report 2015
87
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans (continued)
(c)
Actuarial assumptions and sensitivity (continued)
(ii) Sensitivity analysis
The sensitivity of the defined benefit obligation to change in the significant assumptions is as follows:
State schemes (SSS, SANCS, SASS)
Discount rate
Expected rate of salary inflation
Professorial Superannuation Fund
Discount rate
Expected rate of salary inflation
Change in
assumption
1.00%
0.50%
Increase in
assumption
-9.95%
0.19%
Decrease in
assumption
11.92%
-0.18%
Change in
assumption
0.50%
0.50%
Increase in
assumption
-4.42%
4.75%
Decrease in
assumption
4.75%
-4.42%
The above sensitivity analyses are based on a change in an assumption while holding all the other assumptions
constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same
method has been applied as when calculating the defined benefit liability recognised in the statement of
financial position.
(d)
Statement of financial position amounts
Amounts recognised in the
statement of financial
position - 2015
Liabilities
Deferred non-government
benefits for superannuation
Deferred government benefits
for superannuation
Note
$'000
$'000
SSS
PSF
Total
-
-
9,578
9,578
25
59,745
10,069
1,415,871
-
1,485,685
59,745
10,069
1,415,871
9,578
1,495,263
(58,010)
(10,249)
(1,306,748)
16
1,735
Net liability reconciliation 2015
Defined benefit obligation
Fair value of plan assets
Total net liability/(asset)
$'000
-
Net liability/(asset)
recognised in the statement
of financial position
Net liability/deferred benefits
for superannuation
Reimbursement right1
$'000
SANCS
25
Deferred benefits for
superannuation
Assets
Deferred government
contribution for
superannuation1
$'000
SASS
(180)
105,631
16,638
(45,886)
(6,569)
109,123
1,506,933
(91,062)
25
59,745
10,069
1,415,871
16
(58,010)
(10,249)
(1,306,748)
1,735
(180)
109,123
-
(1,375,007)
9,578
120,256
50,636
1,679,838
(41,058)
9,578
9,578
(184,575)
1,495,263
(1,375,007)
120,256
77
88
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans (continued)
(d)
Statement of financial position amounts (continued)
Present value obligations 2015
Opening defined benefit
obligation
Current service cost
Interest expense/(income)
Note
Remeasurements
Actuarial losses/(gains)
arising from changes in
demographic assumptions
Actuarial losses/(gains)
arising from changes in
financial assumptions
Actuarial losses/(gains)
arising from changes in
experience assumptions
$'000
$'000
$'000
$'000
SANCS
SSS
PSF
Total
98,813
17,917
1,516,619
48,009
3,098
701
1,076
294
5,169
2,684
479
41,728
1,245
46,136
2,102
(192)
52,344
4,689
58,943
(47)
6,367
Contributions
From plan participants
Benefits paid
1,205
(8,591)
Closing defined benefit
obligation
Fair value of plan assets 2015
Opening fair value of plan
assets
Remeasurements
Actual return on plan assets
less interest income
Interest income
Contributions
Employers
Plan participants
Benefits paid
Reimbursement rights 2015
Opening value of
reimbursement right
Expected return on
reimbursement rights
Remeasurements
Contributions from employer
Other
(599)
(1,673)
(12,330)
(23,995)
905
(69,413)
(407)
1,432
(4,626)
(12,780)
(16,795)
2,110
(84,303)
16,637
1,506,934
50,636
1,679,838
77,727
7,670
64,999
43,836
194,232
1,338
19
129
768
2,254
1,698
194
1,956
1,080
4,928
(27,490)
358
92,486
-
65,354
-
905
-
2,110
(8,591)
(1,673)
(69,413)
(4,626)
(84,303)
45,887
6,568
91,062
41,058
184,575
20,229
10,564
1,347,805
-
1,378,598
3,786
939
37,681
-
42,406
7,046
(702)
14,651
-
20,995
27,714
(325)
(92,425)
-
(65,036)
(227)
(964)
-
(1,956)
(765)
16
4
1,681,358
105,631
1,205
Closing fair value of plans
assets
Closing value of
reimbursement right 1
$'000
SASS
58,010
10,249
1,306,748
-
1,375,007
78
UNSW • Annual Report 2015
89
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans (continued)
(d)
Statement of financial position amounts (continued)
Amounts recognised in the
statement of financial
position - 2014
Liabilities
Deferred non-government
benefits for superannuation
Deferred government benefits
for superannuation
Note
Present value obligations 2014
Opening defined benefit
obligation
Current service cost
Interest expense
Remeasurements
Actuarial losses/(gains)
arising from changes in
financial assumptions
Actuarial losses/(gains)
arising from changes in
experience assumptions
$'000
$'000
SSS
PSF
Total
-
-
4,173
4,173
25
21,086
10,247
1,451,619
-
1,482,952
21,086
10,247
1,451,619
4,173
1,487,125
(20,229)
(10,564)
(1,347,805)
16
857
Net liability reconciliation 2014
Defined benefit obligation
Fair value of plan assets
Total net liability/(asset)
$'000
-
Net liability/(asset)
recognised in the statement
of financial position
Net liability
Reimbursement right1
$'000
SANCS
25
Deferred benefits for
superannuation
Assets
Deferred government
contributions for
superannuation1
$'000
SASS
(317)
98,813
17,917
(77,727)
(7,670)
103,814
1,516,619
(65,000)
25
21,086
10,247
1,451,619
16
(20,229)
(10,564)
(1,347,805)
857
(317)
-
(1,378,598)
4,173
108,527
48,009
1,681,358
(43,836)
4,173
-
(194,233)
1,487,125
(1,378,598)
103,814
4,173
108,527
1,464,794
93,503
17,694
1,305,202
48,395
3,266
745
1,260
929
6,200
3,746
712
54,268
1,326
60,052
5,399
1,399
221,854
1,720
230,372
2,897
697
1,041
3,103
Contributions
From plan participant
Benefits paid
(11,264)
(3,330)
Closing defined benefit
obligation
98,813
17,917
1,266
-
(1,532)
1,422
(65,855)
1,516,619
(5,402)
48,009
2,688
(85,851)
1,681,358
79
90
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans (continued)
(d)
Statement of financial position amounts (continued)
Fair value of plan assets 2014
Opening fair value of plan
assets
Note
Remeasurements
Actual return on plan assets
less interest income
Interest income
Contributions
Employers
Plan participants
Benefits paid
Closing value of plans
assets
Reimbursement rights 2014
Opening value of
reimbursement right
Expected return on
reimbursement rights
Remeasurements
Contributions from employer
Recognition of new
reimbursement rights
Closing value of
reimbursement right1
16
$'000
$'000
$'000
$'000
$'000
SASS
SANCS
SSS
PSF
Total
78,447
9,246
121,758
41,882
251,333
3,499
212
2,786
1,886
8,383
3,159
376
3,759
1,643
8,937
2,620
1,166
1,129
3,827
8,742
1,266
-
1,423
-
2,689
(11,264)
(3,330)
(65,855)
(5,402)
(85,851)
77,727
7,670
65,000
43,836
194,233
14,515
-
1,099,624
-
1,114,139
3,561
1,040
48,088
-
52,689
4,556
1,789
201,144
-
207,489
(2,403)
(1,073)
(1,051)
-
(4,527)
-
8,808
-
-
8,808
20,229
10,564
1,347,805
-
1,378,598
1$1,375,007,000 (2014: $1,378,598,000) of the net liabilities of the superannuation funds is payable by the Commonwealth
and NSW Governments under the new funding arrangement as detailed in the MOU (see note 1(a)(i)). This is based on the
net liabilities of SASS of $59,745,000 (2014: $21,086,000), the net liabilities of SSS of $1,415,871,000 (2014:
$1,451,619,000) and the net liabilities of SANCS of $10,069,000 (2014: $10,247,000) less the net liabilities of the
superannuation funds of UNSW Canberra at ADFA and other unfunded superannuation costs totalling $108,722,000 (2014:
$104,354,000) and $1,956,000 (2014: nil) respectively.
The financial impact on funds guaranteed by the Commonwealth Government is in respect of the parent entity
defined benefits only. This results in a difference between the closing value of the net liability arising from
defined benefit obligations and reimbursement right per note 37 and the closing value per note 25 and note 16
respectively. The difference is $2,523,000 (2014: $2,439,000) and is attributable to the funds guaranteed by the
Commonwealth Government in respect of UNSW Global's defined benefits.
The amount of $25,535,000 contributed by the Commonwealth Government in 2004 for UNSW Canberra at
ADFA is managed as part of the pool of general investments of the Group. These funds are included as part of
available-for-sale financial assets disclosed in the balance sheet, refer to note 18.
If a net surplus exists in a Fund, the Group may be able to take advantage of it in the form of a reduction in the
required contribution rate, depending on the advice of the Fund's actuary.
Where a net deficiency exists, the Group is responsible for any difference between the employer's share of fund
assets and the defined benefit obligation, except for instances in SASS, SANCS and SSS (as described above),
where the difference will ultimately be borne by the Commonwealth and NSW Governments.
80
UNSW • Annual Report 2015
91
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans (continued)
(e)
Amounts recognised in other statements
Amounts recognised in the Income statement - 2015
The amounts recognised in the income statement are restricted to the Professorial Superannuation Fund, and
the UNSW Canberra at ADFA component of the three superannuation schemes.
Amounts recognised in the
Income statement - 2015
Current service cost
Interest expense
Interest income
Other
Note
$'000
$'000
$'000
$'000
SANCS
SSS
PSF
Total
277
57
231
294
859
228
35
3,109
1,245
4,617
(207)
(44)
(173)
(1,080)
(1,504)
61
854
298
(224)
109
(32)
4,021
(61)
459
-
4,887
(317)
74
77
3,960
459
4,570
-
Less: employer contributions
Total expense recognised in
deferred superannuation
expense
$'000
SASS
8
-
915
Amounts recognised in other comprehensive income - 2015
The amounts recognised in the statement of comprehensive income are restricted to the Professorial
Superannuation Fund, and the UNSW Canberra at ADFA component of the three superannuation schemes.
The amounts are included in retained earnings.
Actuarial losses (gains) arising
from changes in demographic
assumptions
Actuarial gains/(losses) arising
from changes in financial
assumptions
Actuarial gains/(losses) arising
from experience adjustments
Actual return on plan assets less
interest income
Other
Total amounts recognised in the
Statement of comprehensive
income
191
102
28(b)
(12)
3,409
1
(1,012)
4,689
(407)
1,432
8,277
(1,418)
(38)
(815)
(255)
(55)
(343)
765
165
110
-
1,040
803
61
1,349
4,946
7,159
(768)
681
(1,421)
81
92
UNSW • Annual Report 2015
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans (continued)
(e)
Amounts recognised in other statements (continued)
Amounts recognised in the Income statement - 2014
The amounts recognised in the income statement are restricted to the Professorial Superannuation Fund, and
the UNSW Canberra at ADFA component of the three superannuation schemes.
Amounts recognised in the
Income statement - 2014
Current service cost
Interest expense
Interest income
Note
Less: employer contributions
Total expense recognised in
deferred superannuation
expense
$'000
$'000
$'000
$'000
$'000
SASS
SANCS
SSS
PSF
Total
273
59
103
929
297
50
3,988
1,326
5,661
(278)
(68)
(411)
(1,643)
(2,400)
292
(217)
41
(92)
3,680
(79)
612
(3,827)
4,625
(4,215)
75
(51)
3,601
(3,215)
8
1,364
410
Amounts recognised in other comprehensive income - 2014
The amounts recognised in the statement of comprehensive income are restricted to the Professorial
Superannuation Fund, and the UNSW Canberra at ADFA component of the three superannuation schemes.
The amounts are included in retained earnings.
$'000
$'000
$'000
$'000
$'000
SASS
Actuarial gains/(losses) arising
from changes in financial
assumptions
Actuarial gains/(losses) arising
from experience adjustments
Actual return on plan assets less
interest income
Total amounts recognised in the
Statement of comprehensive
income
28(b)
SANCS
517
136
257
30
(533)
(71)
241
95
SSS
17,597
PSF
Total
1,720
19,970
(759)
1,041
569
(445)
(1,886)
16,393
875
(2,935)
17,604
82
UNSW • Annual Report 2015
93
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
37 Defined benefit plans (continued)
(f)
Financial impact on other funds
UniSuper
The parent entity also contributes to the UniSuper Defined Benefit Division (DBD), formerly known as the
Superannuation Scheme for Australian Universities (SSAU), for academic staff appointed since 1 March 1988
and for all other staff from 1 July 1991. DBD is a defined benefit plan under Superannuation Law but is
considered to be a defined contribution plan under AASB 119 Employee Benefits.
As at 30 June 2015, the assets of the DBD in aggregate were estimated to be $1,479,000,000 above vested
benefits, after allowing for various reserves (30 June 2014: $271,000,000 above vested benefits). The vested
benefits are benefits which are not conditional upon continued membership (or any factor other than leaving the
service of the participating institution) and include the value of indexed pensions being provided by the DBD.
As at 30 June 2015, the assets of the DBD in aggregate were estimated to be $3,377,000,000 above accrued
benefits, after allowing for various reserves (30 June 2014: $2,071,000,000 above accrued benefits). The
accrued benefits have been calculated as the present value of expected future benefit payments to members
and indexed pensioners which arise from membership of UniSuper up to the reporting date.
The vested benefit and accrued benefit liabilities were determined by the Fund’s actuary using the actuarial
demographic assumptions outlined in their report on the actuarial investigation of the DBD as at 1 July 2015.
Assets have been included at their net market value; that is, after allowing for realisation costs. Clause 34 was
initiated following the 31 December 2008, 30 June 2011, 30 June 2012 and 30 June 2013 actuarial
investigations.
Following the end of the monitoring period commenced in relation to the 31 December 2008 actuarial
investigation, the UniSuper Limited Board made a decision not to reduce accrued benefits. Instead, they
decided to reduce the rate at which benefits accrue in respect of the DBD membership after 1 January 2015.
Following the end of the monitoring period commenced in relation to the 30 June 2011 actuarial investigation,
the Fund’s actuary advised that the Trustee is not required to take any further action under Clause 34 in relation
to that monitoring period, and that monitoring period is now ceased.
Other superannuation schemes
The Group also contributes to the Commonwealth Superannuation Scheme. This superannuation scheme is
fully funded. The Commonwealth Government has ultimate funding risk when members retire.
83
94
UNSW • Annual Report 2015
95
(a)
Surplus/(deficit) for the reporting period
Total revenue including accrued revenue
Less expenses including accrued
expenses
Surplus/(deficit) from the previous year
Revenue for the period
Net accrual adjustments
Financial assistance received in CASH
during the reporting period (total cash
received from the Australian Government
for the program)
Parent
2(a)
Note
Education - CGS and Other Education Grants
262,725
(262,725)
-
269,050
(269,050)
-
262,725
(839)
269,050
263,564
775
$'000
2014
268,275
$'000
2015
Commonwealth
Grant Scheme1
38 Acquittal of Australian Government financial assistance
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
-
(1,151)
1,151
-
1,151
(3)
1,154
$'000
2015
-
(1,039)
1,039
-
1,039
-
1,039
$'000
2014
Indigenous Support
Program
84
785
(4,739)
5,524
1,687
3,837
-
3,837
$'000
2015
1,687
(5,120)
6,807
1,363
5,444
525
4,919
$'000
2014
Partnership and
Participation
Program2
52
(135)
187
(2)
189
-
189
$'000
2015
(2)
(235)
233
31
202
-
202
$'000
2014
Disability Support
Program
25
(75)
100
-
100
-
100
$'000
2015
-
(303)
303
-
303
16
287
$'000
2014
Promotion of
Excellence in learning
and Teaching
96
(a)
957
732
(732)
-
-
Surplus/(deficit) from the previous year
Total revenue including accrued revenue
Less expenses including accrued
expenses
Surplus/(deficit) for the reporting period
85
(225)
2Includes
1Includes
the basic CGS grant amount and CGS Enabling Loading.
Equity Support Program.
Revenue for the period
-
2(a)
(225)
-
$'000
-
$'000
2014
Net accrual adjustments
Note
2015
Australian Maths &
Science Partnership
Program
Financial assistance received in CASH
during the reporting period (total cash
received from the Australian Government
for the program)
Parent
Education - CGS and Other Education Grants (continued)
38 Acquittal of Australian Government financial assistance (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
Other
(70)
(638)
568
46
522
-
522
$'000
2015
46
(480)
526
4
522
-
522
$'000
2014
792
(275,788)
276,580
1,731
274,849
772
272,365
2,355
270,010
(523)
270,533
$'000
2014
1,731
(270,634)
Total
274,077
$'000
2015
97
(b)
Cash Payable/(Receivable) at the end of the year
2(b)
157,711
(1,826)
161,156
(1,665)
155,885
159,491
Revenue earned
155,761
161,317
Cash available for the period
$'000
124
$'000
(1,826)
Note
2014
HECS-HELP
2015
Cash Payable/(Receivable) at the beginning of the
year
Financial assistance received in cash during the
reporting period
Parent
Higher education loan programs (excl OS-HELP)
38 Acquittal of Australian Government financial assistance (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
86
(856)
39,453
38,597
39,414
(817)
$'000
(817)
37,279
36,462
36,660
(198)
$'000
2014
FEE-HELP
2015
(2)
(5)
2,939
2,934
2,936
$'000
(2)
2,875
2,873
3,160
(287)
$'000
2014
SA-HELP
2015
Total
(2,526)
203,548
201,022
203,667
(2,645)
$'000
2015
2014
(2,645)
197,865
195,220
195,581
(361)
$'000
98
(c)
2,711
26,608
(24,557)
2,051
2,051
26,559
(26,087)
472
3Includes
Grandfathered Scholarships and National Priority Scholarships.
Surplus/(deficit) for the reporting period
Revenue for the period
Total revenue including accrued revenue
Less expenses including accrued
expenses
-
Surplus/(deficit) from the previous year
23,897
-
$'000
24,508
$'000
2014
23,897
2(c)
Note
2015
Australian
Postgraduate
Awards
24,508
Net accrual adjustments
Financial assistance received in CASH
during the reporting period (total cash
received from the Australian Government
for the program)
Parent
Scholarships
38 Acquittal of Australian Government financial assistance (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
(24)
(1,981)
1,957
(12)
1,969
-
1,969
$'000
2015
(12)
(1,480)
1,468
(494)
1,962
-
1,962
$'000
2014
International
Postgraduate
Research
Scholarships
-
(56)
56
46
10
(109)
119
$'000
2015
87
46
(61)
107
-
107
-
107
$'000
2014
Commonwealth
Education Cost
Scholarships3
-
(28)
28
72
(44)
(115)
71
$'000
2015
72
4
68
-
68
-
68
$'000
2014
Commonwealth
Accommodation
Scholarships
-
(5)
5
-
5
(29)
34
$'000
2015
-
(28)
28
-
28
-
28
$'000
2014
Indigenous
Access
Scholarships
Total
448
(28,157)
28,605
2,157
26,448
(253)
26,701
$'000
2015
2014
2,157
(26,122)
28,279
2,217
26,062
-
26,062
$'000
99
(d)
Surplus/(deficit) for the reporting period
Total revenue including accrued revenue
Less expenses including accrued
expenses
Surplus/(deficit) from the previous year
Revenue for the period
Net accrual adjustments
Financial assistance received in CASH
during the reporting period (total cash
received from Australian Government for
the program)
Parent
Education Research
2(d)
Note
-
(33)
-
(32,381) (30,976)
837
347
870
30,976
32,381
523
-
523
30,976
-
$'000
32,381
30,976
-
$'000
32,381
$'000
347
(37)
384
-
384
-
384
$'000
2014
2015
2015
2014
JRE Engineering
Cadetships
Joint Research
Engagement
38 Acquittal of Australian Government financial assistance (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
-
(63,419)
63,419
-
63,419
-
63,419
$'000
2015
88
-
(63,032)
63,032
-
63,032
-
63,032
$'000
2014
Research Training
Scheme
20,699
-
20,699
-
20,699
$'000
2014
-
-
(22,034) (20,699)
22,034
-
22,034
-
22,034
$'000
2015
Research
Infrastructure
Block Grants
15,219
-
15,219
-
15,219
$'000
2014
136,139
347
135,792
-
135,792
2014
$'000
130,310
-
130,310
-
130,310
Total
$'000
2015
-
-
837
347
(17,435) (15,219) (135,302) (129,963)
17,435
-
17,435
-
17,435
$'000
2015
Sustainable
Research
Excellence in
Universities
100
(e)
(14,972)
1,743
(1,708)
35
89
16,715
1,743
Total revenue including accrued revenue
Less expenses including accrued
expenses
Surplus/(deficit) for the reporting period
Revenue for the period
5,865
10,850
10,850
-
$'000
-
$'000
2014
1,743
2(e)
Note
2015
Education Investment
Fund
Surplus/(deficit) from the previous year
Financial assistance received in CASH
during the reporting period (total cash
received from the Australian Government
for the program)
Parent
Other Capital Funding
38 Acquittal of Australian Government financial assistance (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
-
-
Total
35
(1,708)
1,743
1,743
$'000
2015
2014
1,743
(14,972)
16,715
5,865
10,850
10,850
$'000
101
(f)
27,419
16,748
16,989
Surplus/(deficit) for the reporting period
Early Career Researcher Award.
16,989
18,578
Less expenses including accrued expenses
4Includes
44,167
(27,178)
42,695
(24,117)
Total revenue including accrued revenue
Revenue for the period
25,706
2(f)(i)
(1,530)
Surplus/(deficit) from the previous year
28,949
(1,412)
$'000
27,118
$'000
Net accrual adjustments
Note
2014
Projects
2015
Financial assistance received in CASH during the
reporting period (total cash received from the
Australian Government for the program)
Parent
(i) Discovery
Australian Research Council Grants
38 Acquittal of Australian Government financial assistance (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
90
16,030
(21,129)
37,159
16,522
20,637
56
20,581
$'000
16,522
(23,215)
39,737
13,030
26,707
386
26,321
$'000
2014
Fellowships4
2015
799
(347)
1,146
767
379
-
379
$'000
2015
767
(698)
1,465
716
749
(133)
882
$'000
2014
Indigenous
Researchers
Development
Total
35,407
(45,593)
81,000
34,278
46,722
(1,356)
48,078
$'000
2015
34,278
(51,091)
85,369
30,494
54,875
(1,277)
56,152
$'000
2014
102
(f)
709
697
1,406
(415)
991
3,163
(701)
2,462
Total revenue including accrued revenue
Surplus/(deficit) for the reporting period
Less expenses including accrued expenses
Revenue for the period
991
(875)
2,172
2(f)(ii)
1,584
837
Surplus/(deficit) from the previous year
Net accrual adjustments
$'000
2014
1,335
$'000
Note
Parent
Financial assistance received in CASH during the
reporting period (total cash received from the
Australian Government for the program)
2015
Industrial
Transformation
Research Program
(ii) Linkages
Australian Research Council Grants (continued)
38 Acquittal of Australian Government financial assistance (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
91
7,552
(5,735)
13,287
8,039
5,248
(627)
5,875
$'000
8,039
(2,480)
10,519
6,638
3,881
(1,531)
5,412
$'000
2014
Infrastructure
2015
7,609
(9,206)
16,815
7,779
9,036
(1,199)
10,235
$'000
7,779
(11,484)
19,263
8,734
10,529
111
10,418
$'000
2014
Projects
2015
Total
17,623
(15,642)
33,265
16,809
16,456
(989)
17,445
$'000
2015
16,809
(14,379)
31,188
16,069
15,119
(2,295)
17,414
$'000
2014
103
(f)
92
4,412
508
4,920
(4,412)
508
508
4,905
(3,722)
1,183
Total revenue including accrued revenue
Less expenses including accrued expenses
Surplus/(deficit) for the reporting period
2(f)(iii)
4,397
Revenue for the period
Surplus/(deficit) from the previous year
9,480
(5,068)
9,534
(5,137)
Net accrual adjustments
$'000
Financial assistance received in CASH during the
reporting period (total cash received from the
Australian Government for the program)
$'000
Note
Parent
2014
Centres
2015
(iii) Networks and Centres
Australian Research Council Grants (continued)
38 Acquittal of Australian Government financial assistance (continued)
For the year ended 31 December 2015
Notes
to the
financial statements
31
December
2015
The University
of New South
Wales
Notes
to the financial
statements
Total
1,183
(3,722)
4,905
508
4,397
(5,137)
9,534
$'000
2015
2014
508
(4,412)
4,920
508
4,412
(5,068)
9,480
$'000
Notes to the financial statements
31 December 2015
The University of New South Wales
Notes to the financial statements
For the year ended 31 December 2015
38 Acquittal of Australian Government financial assistance (continued)
(g)
OS-HELP
Parent
Note
Cash received during the reporting period
Cash spent during the reporting period
Net cash received
Cash surplus/(deficit) from the previous period
2(h)
Cash surplus/(deficit) for the reporting period
(h)
2015
2014
$'000
4,736
(4,328)
$'000
7,062
(4,165)
408
2,566
2,897
(331)
2,974
2,566
Superannuation supplementation
Parent
Note
Cash received during the reporting period
University contribution in respect of current employees
2(h)
Cash available
Cash available for current period
Contributions to specified defined benefit funds
16 / 37
2015
2014
$'000
48,074
3,403
$'000
51,477
4,452
51,477
(51,477)
4,452
(4,452)
-
Cash surplus/(deficit) for this period
(i)
4,452
-
Student Services and Amenities Fee
Parent
Note
Unspent/(overspent) revenue from previous period
SA-HELP revenue earned
Student Services and Amenities Fee
2(b)
4
Total revenue expendable in period
Student services expenses during period
Unspent/(overspent) student services revenue
2015
2014
$'000
$'000
2,939
4,514
2,875
4,467
7,453
(7,453)
7,342
(7,342)
-
-
THE AUDITED FINANCIAL STATEMENTS
END OF THE
STATEMENTS
93
104
UNSW • Annual Report 2015
Supplementary Information
For the year ended 31 December 2015 (Parent entity only)
Budget and Actual Performance (Parent entity only)
Budget
2015
Actual
2015
Budget
2016
$’000
$’000
$’000
Australian Government grants
656,632
698,850
658,556
HELP - Australian Government payments
202,954
203,548
205,005
State and Local Government financial assistance
25,163
26,303
24,121
HECS-HELP - Student payments
48,860
31,197
52,280
561,458
522,857
608,033
17,612
36,864
25,031
1,717
4,701
1,860
Consultancy and contracts
45,586
60,246
47,135
Other revenue
29,084
69,906
61,297
1,589,066
1,654,472
1,683,318
-
49
-
Revenue from continuing operations
Australian Government financial assistance
Fees and charges
Investment revenue and income
Royalties, trademarks and licences
Total revenue from continuing operations
Gains on disposal of assets
Other investment income
-
5,521
-
Other income
14,368
11,769
5,272
Total other income from continuing operations
14,368
17,339
5,272
1,603,434
1,671,811
1,688,590
Employee related expenses
966,317
906,447
997,507
Depreciation and amortisation
146,383
141,546
155,118
32,041
32,968
33,230
3,130
2,483
2,440
800
13,287
1,000
13
370
-
-
4,570
-
492,740
495,337
520,917
1,641,424
1,597,008
1,710,212
(37,990)
74,803
(21,622)
Total revenue and income from continuing operations
Expenses from continuing operations
Repairs and maintenance
Borrowing costs
Impairment of assets
Loss on disposal of assets
Deferred employment benefits for superannuation
Other expenses
Total expenses from continuing operations
Net result before income tax from continuing operations
UNSW • Annual Report 2015
105
Supplementary Information
For the year ended 31 December 2015 (Parent entity only)
Investment performance (Parent entity only)
UNSW’s investments are allocated to the following investment Pools:
• Pool L and Pool E: long-term investment funds with an investment horizon of more than two years. The Pools
have the same asset allocation, the components of which were managed during the year by the same external
fund managers other than cash which was managed internally by UNSW Treasury and Investment Services;
• Pool B: short-term investment funds with an investment horizon up to three years and a capital preservation
investment objective. 50% of the Pool is invested in cash managed internally by UNSW Treasury and
Investment Services with the balance managed by external fund managers;
• Pool S: the UNSW’s liquidity and working capital reserve with an investment horizon of less than two years.
Pool S is managed internally by UNSW Treasury and Investment Services; and
• Pool P: principally student accommodation and residential properties (95%) and significant venture initiatives
(5%). Student accommodation investments are held for strategic purposes and are managed by UNSW’s
Strategic Property Group. These properties are not classified as investment properties under current
accounting standards.
In accordance with the Annual Report (Statutory Bodies) Act 1984 and its regulation 2010, the performance
of Pool L, E, B and S are measured in the table below against NSW Treasury Corporation Facilities. It is not
appropriate for Pool P’s performance to be benchmarked in this way as it is a project fund and its investment
criteria and horizon differ markedly from any of the NSW Treasury Corporation’s facilities.
Fund Manager
(i) Return for
12 months to
31/12/2015
(ii) Treasury
Corporation
Facility
Performance for
12 months to
31/12/2015
(i) Return for
12 months to
31/12/2014
(ii) Treasury
Corporation
Facility
Performance for
12 months to
31/12/2014
%
%
%
%
106
Pool L & E
Internal/External
2.85
4.21
19.16
19.54
Pool B
Internal/External
3.01
2.47
N/A
N/A
Pool S
Internal
2.95
2.47
4.35
3.12
(i) The investment returns for Pool L and Pool E are calculated as the change in market value of investments from the beginning of the year
to the end of the year. The return for Pool B is calculated as the change in market value of investments from the beginning of the year
to the end of the year and the weighted average yield achieved on the cash investments. The return for Pool S is the weighted average
yield achieved.
(ii)
The weighted average of the performance of the NSW Treasury Corporation medium term (25%) and long term facilities (75%) is
employed for the Pool L and Pool E comparison. This weighting reflects the strategic asset allocation of the Pools. The long term
investment performance shown above does not include refunds from the ATO in respect of franking credits. Franking credits contribute
approximately 0.5% in additional return. The NSW Treasury Corporation Cash facility return is used for the Pool B comparison reflecting
the capital preservation investment objective.
UNSW • Annual Report 2015
Supplementary Information
For the year ended 31 December 2015 (Parent entity only)
Account payment performance (Parent entity only)
Total accounts paid on time
Total amount paid
Target (i) %
Actual (i) %
$’000
$’000
January - March
70
77
154,204
207,652
April - June
70
79
165,902
211,292
July - September
70
78
209,699
245,756
October - December
70
68
220,032
277,014
70
89
214,637
232,609
2014
2015
January - March
April - June
70
91
185,020
203,767
July - September
70
92
186,861
219,257
October - December
70
93
227,443
266,217
(i) The % is based on the number of transactions processed and not on monetary terms.
UNSW • Annual Report 2015
107
Supplementary Information
For the year ended 31 December 2015 (Parent entity only)
Land Appendix (Parent entity only)
In accordance with Section 41B 1(d) of the Public Finance and Audit Act, below is the unaudited Land Appendix
to the Financial Statements of the University of New South Wales, referred to as ‘UNSW’, for the year ended 31
December 2015.
Land Value
Land Value
2014
2015
Land Use
$’000
$’000
311,994
302,774
T
Teaching, Research and other University
purposes
A
Student Accommodation
32,514
31,301
LR
Leased to residential tenants
52,131
45,347
LC
Leased to commercial tenants
38,976
33,857
435,615
413,279
The total value of land owned or occupied is higher than the land value recognised within the categories “Land”
and “Off-campus properties” in the Statement of Financial Position. The value of the Land disclosed in the
Statement of Financial Position has been adjusted for impairment.
108
UNSW • Annual Report 2015
2015
Statutory
Report
UNSW • Annual Report 2015
109
Statutory Report 2015
Access to Information and Privacy
Government Information (Public Access) Act 2009 (NSW)
Under section 125 of the Government Information (Public Access) Act 2009 (NSW) (“the Act”) and clause 7
of the Government Information (Public Access) Regulation 2009 (NSW), the University is required to report
annually on its obligations under the Act. The required statistical information on 2015 access applications to the
University follows.
Review of proactive release program
Under section 7 of the GIPA Act, the University must review its program for the release of government
information to identify the kinds of information that can be made publicly available.
The University’s program for the proactive release of information involves making much of the information that it
holds freely available via the University’s website, including:
• the UNSW 2025 Strategic Plan, including details of the consultation process conducted throughout 2015;
• details of the governance and management of the University, including the University Council, Academic
Board and Management Board;
• the latest UNSW Annual Report (plus access to previous Annual Reports) including detailed financial reports;
• a range of publications that document the activities of the University including UNSWorld (biannual alumni and
community magazine) and Uniken (quarterly magazine for staff, students and visitors that reports on issues
affecting the tertiary education sector and the latest developments in UNSW’s research and teaching);
• the UNSW Handbook, that contains the rules and procedures relating to the University’s undergraduate and
postgraduate programs,; and
• listing and full text access to UNSW policies, procedures and guidelines.
During the reporting period, we reviewed this program by assessing the information requested under both
formal access applications and informal requests to determine if such information could be made available to
the public by proactive release.
As a result of this review, it was determined that the University’s current program for the proactive release of
information is sufficient given the existing requests for information by the public.
Number of access applications received
During the reporting period, our agency received a total of sixteen formal access applications (including two
withdrawn applications).
Number of refused applications for Schedule 1 information
During the reporting period, the University did not refuse any formal access applications because the
information requested was information referred to in Schedule 1 to the GIPA Act.
Privacy
The University’s Privacy Management Plan outlines how the University complies with the Privacy and Personal
Information Protection Act 1998 (NSW) (“the PPIP Act”) and the Health Records and Information Privacy Act
2002 (NSW). One internal review was completed under Part 5 of the PPIP Act during the reporting period.
110
UNSW • Annual Report 2015
Statutory Report 2015
2015 GIPAA access applications
Table A: Number of applications by type of applicant and outcome*
Access
granted
in full
Access
granted
in part
Access
refused
in full
Information Information Refuse to
Refuse to
Application
not held
already
deal with
confirm/
withdrawn
available
application deny
whether
information
is held
Media
3
2
1
3
0
0
0
0
Members of
Parliament
0
0
0
0
0
0
0
0
Private sector
business
0
0
0
0
0
0
0
0
Not for profit
organisations or
community groups
0
0
0
0
0
0
0
0
Members of the
public (application
by legal
representative)
0
0
0
0
0
0
0
0
Members of the
public (other)
7
1
4
3
3
0
0
2
*More than one decision can be made in respect of a particular access application.
Table B: Number of applications by type of application and outcome
Access
granted
in full
Access
granted
in part
Access
refused
in full
Information Information Refuse to
Refuse to
Application
not held
already
deal with
confirm/
withdrawn
available
application deny
whether
information
is held
Personal
information
applications*
5
1
0
1
1
0
0
0
Access
applications (other
than personal
information
applications)
5
2
4
5
2
0
0
2
Access
applications that
are partly personal
information
applications and
partly other
0
0
1
0
0
0
0
0
*A personal information application is an access application for personal information (as defined in clause 4 of Schedule 4 to the Act) about the
applicant (the applicant being an individual).
UNSW • Annual Report 2015
111
Statutory Report 2015
Table C: Invalid applications
Reason for invalidity
Number of applications
Application does not comply with formal requirements (section 41 of the Act)
0
Application is for excluded information of the agency (section 43 of the Act)
0
Application contravenes restraint order (section 110 of the Act)
0
Total number of invalid applications received
0
Invalid applications that subsequently became valid applications
0
Table D: Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule
1 of the Act
Number of times
consideration used*
Overriding secrecy laws
0
Cabinet information
0
Executive Council information
0
Contempt
0
Legal professional privilege
0
Excluded information
0
Documents affecting law enforcement and public safety
0
Transport safety
0
Adoption
0
Care and protection of children
0
Ministerial code of conduct
0
Aboriginal and environmental heritage
0
*More than one public interest consideration may apply in relation to a particular access application and, if so, each such consideration is to be
recorded (but only once per application). This also applies in relation to Table E.
Table E: Other public interest considerations against disclosure: matters listed in table to section 14 of the Act
Number of occasions when
application not successful
Responsible and effective government
5
Law enforcement and security
0
Individual rights, judicial processes and natural justice
6
Business interests of agencies and other persons
3
Environment, culture, economy and general matters
0
Secrecy provisions
0
Exempt documents under interstate Freedom of Information legislation
0
Table F: Timeliness
Number of applications
112
Decided within the statutory timeframe (20 days plus any extensions)
12
Decided after 35 days (by agreement with applicant)
1
Not decided within time (deemed refusal)
1
Total
14
UNSW • Annual Report 2015
Statutory Report 2015
Table G: Number of applications reviewed under Part 5 of the Act (by type of review and outcome)
Decision varied
Decision upheld
Total
Internal review
1
1
2
Review by Information Commissioner * #
1
2
3
Internal review following recommendation
under section 93 of Act
0
1
1
Review by NCAT ^
0
0
0
Total
2
3
5
*The Information Commissioner does not have the authority to vary decisions, but can make recommendation to the original decision-maker. The
data in this case indicates that a recommendation to vary or uphold the original decision has been made.
# One applications for review by the Information Commissioner is pending at time of publication.
^ One application for review by the NCAT is pending at time of publication.
Table H: Applications for review under Part 5 of the Act (by type of applicant)
Number of applications
for review
Applications by access applicants
4
Applications by persons to whom information the subject of access application
relates (see section 54 of the Act)
0
Disclosure Requirements
Numbers and remuneration of senior executives
2014
2015
Male
Female
Male
Female
Vice-Chancellor
1
0
1
0
Deputy Vice-Chancellor
and Vice-President
2
0
2
0
Vice-President or Dean
4
1
4
1
Average total remuneration package of senior executives
2015
2014
$ 443,732
$ 486,567
Total remuneration package includes base salary, superannuation and performance pay (if applicable).
Percentage of total employee related expenditure that relates to senior executives
2015
2014
0.37%
0.41%
UNSW • Annual Report 2015
113
Statutory Report 2015
Statistical Information on EEO target groups
A. Trends in the Representation of EEO Groups
% of Total Staff
General Staff
Women
Benchmark
or Target
2012
2013
2014
2015
50%
62.60%
62.42%
62.62%
63.45%
Aboriginal people and Torres Strait Islanders
2%
1.15%
1.26%
1.17%
1.28%
People whose first language was not English
19%
27.84%
27.78%
27.93%
28.63%
People with a disability
12%
3.54%
3.41%
3.65%
3.37%
7%
0.49%
0.54%
0.56%
0.54%
People with a disability requiring work-related
adjustment
% of Total Staff
Academic Staff
Women
Benchmark
or Target
2012
2013
2014
2015
50%
35.31%
37.68%
37.46%
38.28%
Aboriginal people and Torres Strait Islanders
2%
0.60%
0.51%
0.53%
0.56%
People whose first language was not English
19%
24.69%
22.82%
24.12%
23.65%
People with a disability
12%
2.86%
2.47%
2.70%
2.67%
7%
0.56%
0.59%
0.64%
0.64%
People with a disability requiring work-related
adjustment
B. Trends in the Distribution of EEO Groups
Distribution Index
General Staff
Aboriginal people and Torres Strait Islanders
Benchmark
or Target
2012
2013
2014
2015
100
90
85
88
86
People whose first language was not English
100
99
99
99
99
People with a disability
100
96
98
100
101
People with a disability requiring work-related
adjustment
100
n/a
n/a
n/a
n/a
People with a disability requiring work-related
adjustment
100
n/a
n/a
n/a
n/a
Distribution Index
Benchmark
or Target
2012
2013
2014
2015
Aboriginal people and Torres Strait Islanders
100
98
98
100
102
People whose first language was not English
100
99
107
104
105
Academic Staff
People with a disability
100
112
118
120
123
People with a disability requiring work-related
adjustment
100
118
123
125
127
People with a disability requiring work-related
adjustment
100
128
118
123
125
Notes: 1. Staff numbers are as at 31 March 2015. 2. Figures exclude casual staff. 3. A Distribution Index of 100 indicates that the centre of the distribution of the EEO
group across salary levels is equivalent to that of other staff. Values less than 100 mean that the EEO group tends to be more concentrated at lower salary levels than is
the case for other staff. The more pronounced this tendency is, the lower the index will be. In some cases the index may be more than 100, indicating that the EEO group
is less concentrated at lower salary levels. The Distribution Index is automatically calculated by the software provided by the Office of Employment Equity and Diversity.
4. The Distribution Index is not calculated where EEO group or non-EEO group numbers are less than 20.
114
UNSW • Annual Report 2015
Notes
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