2009 - university of otago · southland college of education, southland campus 100 nelson street,...

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2009ANNUAL REPORT

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2009annual report

university of otago annual report 2009

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unIVerSItY oF otaGo ContaCtS

university of otago

Leith Street, DunedinNew ZealandMail PO Box 56, Dunedin 9054, New ZealandTel 64 3 479 1100Fax 64 3 479 8692Email [email protected] www.otago.ac.nz

christchurch

University of Otago, Christchurch2 Riccarton AvenueChristchurch, New ZealandMail PO Box 4345, Christchurch 8140, New ZealandTel 64 3 364 0530Fax 64 3 364 0525Email [email protected]

wellington

University of Otago, WellingtonMein Street, NewtownWellington South, New ZealandMail PO Box 7343, Wellington South 6242, New ZealandTel 64 4 385 5541Fax 64 4 389 5725Email [email protected]

University of Otago Wellington CentreLevel 9, Revera House, 48 Mulgrave Street Thorndon, Wellington, New ZealandMail PO Box 400, Wellington 6140, New ZealandTel 64 4 460 9800Fax 64 4 460 9801Email [email protected]

auckland

University of Otago Auckland CentreUniversity of Otago House385 Queen StreetAuckland, New ZealandMail PO Box 5543, Wellesley Street, Auckland 1141, New ZealandTel 64 9 373 9700Fax 64 9 373 9701Email [email protected]

southland

College of Education, Southland Campus100 Nelson Street, InvercargillNew ZealandMail PO Box 886, Invercargill 9840, New ZealandTel 64 3 211 6724Fax 64 3 216 1399Email [email protected]

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VISIon

A research-led University with an

international reputation for excellence.

ko te aronga

He Whare Wänanga e Aronui ana ki te

Rangahau, e Rongonui ana i ngä Töpito

o te Ao i te Ao i töna Ikeiketanga.

mISSIon

The University of Otago will advance,

preserve and promote knowledge,

critical thinking and intellectual

independence to enhance the

understanding, development and well-

being of individuals and society. It will

achieve this by building on foundations

of broad research and teaching

capabilities, unique campus learning

environments, its nationwide presence

and mana, and international links.

Ko tä Te Whare Wänanga o Otägo he

whanake, he pupuri, he whakatairanga

hoki i te mätauranga, i te ihomatua

tätari kaupapa, i te whakaaroaro

motuhake o te tangata, e nui ake ai te

möhio, te marama, te hiatotanga, otirä,

te oranga o te tangata, o te iwi hoki. E

tutuki ai tënei mä te rangahau me te

tika märika o te whakaako, mä te whai

wänanga ahurei, mä te whakaü i töna

mana, me öna toronga puta noa i te

motu, i te ao.


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ContentS PAgE

Vision and Mission 3University governance 6Organisation Chart 7Council of the University 8Executive group 9Chancellor’s Introduction 11Vice-Chancellor’s Review 13 Achieving Research Excellence 13 Achieving Excellence in Research-informed Teaching 14 Ensuring Outstanding Campus Environments and Student Experience 15 Contributing to the National good and to International Progress 16 Strengthening External Engagement 18 Building and Sustaining Capability 18 Conclusion 19Significant Events 20Research and Postgraduate Teaching 23 Research Funding 23 Research Achievements 24 Development 26 Commercialisation 26 Postgraduate Teaching 27 Cost of Outputs 29Teaching, Learning and Assessment 31 Enrolment 32 Internationalisation 32 Developing Teaching and Learning 33 Cost of Outputs 35Community Service 37 The Arts 39 Library Services 39 New Zealand Marine Studies Centre 40 National Poisons Centre 41 Alumni 41 Cost of Outputs 41Statement of Service Performance 43Statement of Resources 57 Land, Buildings and Capital Development 57 Library Resources 57 Information Technology 58 Human Resources 58 Equal Opportunities 59Financial Review 64Statement of Responsibility 65Statement of Accounting Policies 66Statement of Financial Performance 74Statement of Comprehensive Income 75Statement of Changes in Equity 75Statement of Financial Position 76Statement of Cash Flows 77Reconciliation of the Net Surplus from Operations 78 Statement of Commitments and Contingencies 79 Notes to the Financial Statements 80Report of the Auditor-general 111Summary Facts and Figures 113graphs 122


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unIVerSItY GoVernanCe

legal status

The University was established by the University of Otago Ordinance of the Provincial Council in 1869, the

University of Otago Amendment Act 1961 and the Education Act 1989. It is governed by a Council, which

appoints the Vice-Chancellor, who is the chief executive and employer of all other staff.

statutory role

Defining characteristics of universities in New Zealand, specified in the Education Act 1989, include that their

teaching is primarily informed by research, they are repositories of knowledge and expertise, and they accept a

role as critic and conscience of society.

the university council

The Council is constituted and empowered according to legislation. Council is chaired by the Chancellor, and

comprises elected, appointed and co-opted members representing key stakeholders including alumni, students

and staff.

committees of council

Specific committees report directly to Council on matters including financial management and performance,

audit, capital development, ethics, risk management and statutory compliance. It also has a Treaty of Waitangi

committee with equal Ngäi Tahu membership and may, from time to time, establish special working parties to

examine particular issues.

the senate

Senate reports directly to Council, advising it primarily on academic matters as the Academic Board of the

University. Senate is convened by the Vice-Chancellor and its membership is drawn mainly from the heads of

academic departments, but it also includes other senior academics and representatives of other teaching staff

and students. It is, in turn, advised by a number of committees and boards.

university autonomy and academic freedom

The Education Act 1989 provides statutory recognition of, and protection for, the institutional autonomy of the

University and the academic freedom of its staff and students. In accordance with the Act, the Council and the

Vice-Chancellor have a duty to act to preserve and enhance university autonomy and academic freedom.

governance documents

The University Charter sets out the vision and mission of the University, its core values, special character and

the high-level intent of its contributions to the wider community, nationally and internationally.

The University strategic plan, Strategic Direction to 2012, provides a framework for the development of the

University.

The University Investment Plan outlines how the University will give effect to its Charter, the means by which it

will contribute to the Government’s strategies and priorities for tertiary education, and how it will monitor its

performance in these matters.

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orGanISatIon CHart

Science

Council

Vice-Chancellor

Deputy Vice-Chancellor(Academic and International)

Deputy Vice-Chancellor(Research and Enterprise)

Pro-Vice-Chancellor(Commerce)

Pro-Vice-Chancellor(Health Sciences)

Pro-Vice-Chancellor(Humanities)

Pro-Vice-Chancellor(Sciences)

School of Business

Departments(8)

Faculty ofMedicine

School ofPhysiotherapy

Faculty ofDentistry

School ofPharmacy

Faculty ofArts and

Social Sciences

School ofMäori,

Pacific andIndigenous

Studies

School ofPhysical

Education

School ofSurveying

Departments(12)

Departments(12)

Departments(3)

OtagoSchool ofMedicalSciences

Universityof Otago,

Christchurch

DunedinSchool ofMedicine

Universityof Otago,Wellington

Departments(5)

Departments(11)

Departments(6)

Departments(9)

Chief Operating Officer

Director ofDevelopment andAlumni Relations

Faculty ofLaw

DirectorHuman

Resources

Secretaryto Council

and Registrar

Pro-Vice-Chancellor(International)

College ofEducation

Director ofMäori

Development


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appointed by the minister of education

Mr Edward W Ellison

Mr James D Every-Palmer BA(Hons) LLB(Hons)(Otago) LLM((Harv)DPhil(Oxon)

Ms Kereyn M Smith DipPhEd (Otago)

Mr John F Ward – (Chancellor) BCom(Otago) FCA

ex officio

Professor Sir David C g Skegg – (Vice-Chancellor)KNZM OBE BMedSc MB ChB(Otago) DPhil(Oxon) FFPHM FAFPHM FRSNZ

elected by the academic staff

Professor Judith A Bennett BA BEd(Qld) MA(Hawaii) PhD(ANU) DipEdDC(PNG)

Dr Marilyn J Duxson MSc (Melbourne) PhD (University College London)

Dr Craig J Marshall BSc(Hons) PhD(Otago)

elected by the court of convocation

Judge E Oke K Blaikie LLB(Otago)

Miss Lorraine P Isaacs MA(Otago & Hawaii)

Mr Michael J M Sidey BCom(Otago) ACA

elected by the general staff

Ms Margaret A Morgan MA (Otago) DipArch/RecMgmt (Monash)

appointed after consultation with central organisation of employers

Mr Stuart J McLauchlan BCom(Otago) FCA(PP)

appointed after consultation with central organisation of workers

Mr Roger H Tobin BSc(Well)

appointed by the students’ association

Mr Edwin J S Darlow

Mr Simon S Wilson BA PGDipArts(Otago)

appointed by the dunedin city council

Mr Peter W H Chin CNZM LLB(Otago)

co-opted

Mrs Kathleen E grant BA LLB PGDipArts PGDipLaw(Otago)

tHe CounCIl oF tHe unIVerSItY oF otaGo 2009

Professor D C G Skegg Mrs K E GrantMr P W H Chin Ms J A FloodMr S J McLauchlan Mr M J M SideyMs K M Smith Mr R H TobinMr E J S Darlow

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vice-chancellor

Professor Sir David C g Skegg K_NZM OBE BMedSc MB ChB(Otago) DPhil(Oxon) FFPHM FAFPHM FRSNZ

deputy vice-chancellor (academic & international)

Professor D gareth Jones CNZM BSc(Hons) MB BS(Lond) DSc(W Aust) MD (Otago) CBiol FSB

deputy vice-chancellor (research & enterprise)

Professor Harlene Hayne ONZM BA (Colorado College) MS PhD(Rutgers) FRSNZ

chief operating officer

Mr A John Patrick BCom(Otago) FCA CMA

pro-vice-chancellor (commerce)

Professor george L Benwell BSurv PhD(Melb) MPhil(City) MNZCS MISAust

pro-vice-chancellor (health sciences)

Professor Don M Roberton MB ChB MD(Otago) FRACP FRCPA

pro-vice-chancellor (humanities)

Professor Majella M Franzmann BA(Hons) PhD(Qld) DipTeach(Mt gravatt) AMusA FAHA FSA

pro-vice-chancellor (sciences)

Professor Vernon A Squire Polar Medal BSc(Hons)(Wales) PhD(Cantab) DSc(Wales) FRSNZ FIMA CMath FNZMS

pro-vice-chancellor (international)

Professor Sarah J Todd BA(Massey) MCom PhD(Otago)

director of human resources

Mr Kevin J Seales BCom(Cant) MHRINZ

secretary to the council, and registrar

Ms Jan A Flood DipPhEd(Otago)

eXeCutIVe Group

Dr J D Every-Palmer Dr M J DuxsonJudge E O K Blaikie Mr S S WilsonMs M A Morgan Professor J A Bennett Dr C J MarshallMiss L P Isaacs Mr J F Ward


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CHanCellor’S IntroDuCtIon

It is my privilege and pleasure to present the 2009 Annual Report of the University of Otago.

The University continues to thrive under the outstanding leadership of Professor Sir David Skegg, who was

awarded the richly deserved re-designated honour of KNZM by the Governor-General in August.

Funding continues to be a major issue for universities and it was pleasing, therefore, that the financial result for

the University was again satisfactory in what is becoming an increasingly constrained funding environment. It is

vital that we continue to attain a result that allows the University to maintain and enhance its infrastructure for

current and future generations of students and staff.

The Vice-Chancellor has provided a comprehensive overview of the University’s considerable achievements

during 2009 and alluded to a number of looming pressures. Rather than duplicate his remarks, I would like to

comment on some of the most positive features of the year for the University Council.

Graduation ceremonies are always a highlight and 10 ceremonies were held in 2009. We were pleased to

confer five honorary doctorates to recipients, each distinguished in their own fields. They were Paul Oestreicher

(Doctor of Divinity), Barbara Anderson and Shirley Murray (Doctors of Literature) and Michael Cullen and

Trevor Scott (Doctors of Law).

One of the most enjoyable aspects of Council membership is the opportunity to see what is happening at

the academic and operational heart of the University. Among other visits and presentations, members were

delighted to visit the New Zealand Marine Students Centre at Portobello, crossing the Otago Harbour on the

University’s new marine research vessel Polaris II; to visit Hayward College, one of the University’s residential

colleges that, along with the other University-owned and affiliated colleges, provides accommodation and

pastoral care for over 3,200 students; and to meet with the Executive of the Otago University Students’

Association and visit their state-of-the-art Aquatic Centre on the edge of the Otago Harbour.

Presentations and briefings during the development of a Campus Master Plan for the University’s campuses

at Dunedin, Christchurch and Wellington, which is to be presented to the University and wider community

in 2010, provided a preview to a blueprint for a vibrant and aesthetic physical environment for the University

communities.

In keeping with past practice of holding a Council meeting each year outside Dunedin at one of the University’s

other campuses, the Council met at the University of Otago, Wellington, in September. This also provided an

opportunity for members of the Council to meet with staff from the Wellington campus.

On behalf of Council, I thank all staff, students, alumni, supporters and other stakeholders for their contributions

to the operations and achievements of the University.

Finally, I thank all my fellow members of the University Council for their valuable contributions and the time

and effort that they give to their duties as Councillors. I make special acknowledgement of Mr Edward Ellison, a

member of the University Council for the past 10 years who retired from the Council in November 2009. Mr

Ellison, a leader among Ngäi Tahu, has been pivotal in the University’s forging of closer links with Ngäi Tahu and

other iwi.

John wardCHANCELLOR


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VICe-CHanCellor’S reVIeW

In 2009 the University of Otago celebrated its 140th anniversary as New Zealand’s first university. It was an

excellent year in many respects: our scientists and scholars were awarded the largest share of the Marsden Fund

for the fifth year in a row; the quality of education provided was recognised by both national awards to teachers

and prestigious scholarships received by our graduates; and much progress was made in developing a master

plan for our campuses in Dunedin, Christchurch, and Wellington.

This Annual Report provides detailed information about research, teaching and learning, and community service,

as well as about our resources and financial performance. In this review I will mention some of the highlights,

using as headings the six imperatives identified in our Strategic Direction to 2012.

achieving research eXcellence

The advancement of knowledge is one of the prime functions of a university. Otago is New Zealand’s most

research-intensive university, and it received the highest ranking for research quality in the Performance-Based

Research Fund (PBRF).

The quality of our researchers was underlined by their success in gaining competitive research funds during

2009. The Marsden Fund is New Zealand’s most prestigious source of funding for fundamental research in all

fields of science and the humanities. Applications are received from the eight universities, as well as a larger

number of Crown research institutes and other research organisations. Although Otago is far from being the

largest university in New Zealand, our researchers have consistently gained the largest share of the funding

available.

When we reviewed our strategic direction in 2005, there was a wide consensus that Otago should take

decisive steps to strengthen its research culture and ethos. Several factors underlie the considerable progress

made since then. First, all of our academic leaders, including the Vice-Chancellor and Deputy Vice-Chancellors,

are themselves active in research. Secondly, we have recognised the crucial importance of early-to-mid-career

researchers. As well as acknowledging their achievements, Professor Harlene Hayne (Deputy Vice-Chancellor,

Research and Enterprise) and her predecessor, Professor Geoff White, have sought advice from emerging

researchers about our policies and practices. Thirdly, we have invested in the future by appointing stellar

researchers to chairs in each of the academic divisions of the University.

This transformation of the University was greatly assisted by the Leading Thinkers Initiative, in which more

than $50 million was raised from donors and the Government, in the form of matching funds, to endow chairs

in many fields. Several of the professors appointed to Leading Thinkers chairs have established new research

centres at the University of Otago. During 2009, the following centres (all led from these newly endowed

positions) came into operation: the Centre for International Health, the Centre for Irish and Scottish Studies,

the Centre for Law and Policy in Emerging Technologies, the Centre for Research on Children and Families,

the Centre for Theology and Public Issues, the Legal Issues Centre, and the New Zealand Centre for Peace

and Conflict Studies. One of the most pleasing aspects is the extent to which new professors have forged

collaborative links across the entire University. For example, the Centre for International Health has developed a

network of researchers from all four academic divisions, with strong involvement of staff at the Christchurch and

Wellington campuses.

The main factor limiting our research endeavours is the low level of investment in research in New Zealand. In

the May Budget the Government provided some welcome increases in funding to the Health Research Council,


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the Marsden Fund, and the PBRF. Nevertheless, public and especially private investment in research in New

Zealand both fall far short of the OECD average. Our economic and social progress will be hampered until

this problem is addressed more decisively. Perhaps the most encouraging development in recent years was

the Government decision to fund international PhD students on the same basis as domestic students. This has

been one of the factors underpinning our steady rise in postgraduate research students. Indeed, the number

of doctoral enrolments (1,270 candidates by the end of the year) has increased by more than 50% since 2005.

Both domestic and international PhD students assist in the advancement of knowledge that contributes to the

economy, to health care, and to the social and cultural life of the nation. Moreover, many of these people will

settle in New Zealand, providing a long-term boost to our intellectual capital.

achieving eXcellence in research-informed teaching

It is a regrettable fact that many universities which are distinguished for their research neglect their commitment

to high-quality teaching and learning. In the United States, for example, there is frequent comment about the

unsatisfactory experience of undergraduates at some eminent universities where much of the teaching is farmed

out to graduate students and postdoctoral fellows, so that the professors can get on with their research. This is

definitely not the case at the University of Otago. Our staff regard teaching as a vocation, not a chore, and even

first-year students have the opportunity to be taught by academics who are world leaders in their field.

In a university where research and teaching are treated as equally important, it is often found that the strongest

research departments also excel in teaching. While the research culture at Otago has strengthened considerably

in recent years, I can state with conviction that far greater attention is given to the quality of teaching and

learning than was the case 15 or 20 years ago. Our Higher Education Development Centre and the Student

Learning Centre both play a key role in promoting excellent teaching and learning.

A senior lecturer in the Faculty of Law, Selene Mize, received the Prime Minister’s Supreme Award in this

year’s national Tertiary Teaching Excellence Awards. Since the inception of the national scheme, only one other

institution has equalled the number of awards for teaching excellence received by University of Otago staff.

The quality of our graduates has been underlined by their success in gaining competitive scholarships. In

November alone we heard that, among New Zealand’s eight universities, Otago students won two of the three

Rhodes Scholarships to Oxford, two of the three Rutherford Scholarships to Cambridge, one of the three

Woolf Fisher Scholarships, and an international Fulbright Science and Technology Award.

In 2009 the University enrolled a total of 21,507 students, corresponding to 19,172 equivalent full-time students

(EFTS). These were the highest numbers in the history of the University. Only 20% of first-year students are

from Dunedin, while twice as many come from the North Island. The number of international students increased

for the first time in several years, with 2,472 students enrolled from 98 different countries. The largest numbers

of international students came from the USA, Malaysia, China and Germany, respectively.

In keeping with our strategic plan, postgraduate enrolments increased at a greater rate than undergraduate

enrolments. Postgraduate students made up 16.2% of all domestic enrolments and 13.1% of international

enrolments. The University has maintained its commitment to distance education in areas where we have special

expertise and, at the postgraduate level, approximately half of all coursework is undertaken by distance study.

Our strategic plan includes an aim to maintain, or increase at a manageable rate, the student roll. Under the new

system of tertiary funding in New Zealand, we are now also required to negotiate an Investment Plan which

specifies the number of students to be enrolled. Because of its reputation, there is great competition for places

at the University of Otago. So far our first-year numbers have effectively been capped by the number of beds

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available in the 14 residential colleges. At the beginning of each year, there is always a long waiting list for these

colleges and students who are unsuccessful often enrol at another university. Academic achievement at school

is one of the main criteria used by the colleges in selecting students. Many courses have specified limits on

enrolments, and we are continually reviewing whether further measures are necessary.

As well as selecting students who are likely to benefit from university study, we want to ensure that those

admitted make appropriate use of the opportunity. In 2009 the Senate approved changes to our Academic

Progress Policy. Students will now be placed on conditional enrolment after one year if they fail more than half

of the points for which they are enrolled. Conditional enrolment means that, as well as receiving advice and

support, such students will be suspended for two years if they again fail more than half of the points for which

they are enrolled.

ensuring outstanding campus environments and student eXperience

Students and staff are attracted to the University of Otago not only by its reputation for education and research,

but also by its renowned campus life. Our health sciences campuses in Christchurch and Wellington are

effectively like graduate schools, while nearly all of our undergraduates spend at least part of their course at the

Dunedin campus. A residential campus in a university town can provide a rounded education that could never

be emulated by larger universities in big cities.

The rise in our student roll, together with greatly increased research activity, has put considerable pressure on

facilities at the Dunedin, Christchurch and Wellington campuses. The University Council has approved continuing

investment in buildings and adaptions, in keeping with our Critical Space Plan which it approved in 2005. In 2009

the redevelopment of the Owheo Building for the Department of Computer Science and the renovation of the

Law Library were completed. The recladding of the Microbiology Building continued, while a major new building

for the Department of Psychology was completed in time for the beginning of the 2010 academic year. Other

projects under way included the refurbishment and expansion of the Bill Robertson Library, construction of

a second server room for the University’s central computer systems, and a new dental simulation laboratory

for the Faculty of Dentistry. The previous development at the Wellington campus received the New Zealand

Institute of Architects’ 2009 Award for interior architecture.

The University Council also approved plans for the first of our buildings next to the Forsyth Barr Stadium at

University Plaza. This flagship building will provide facilities for the University’s Foundation Studies programme

and for the Unipol Gymnasium. The building will provide the west wall of the stadium, and will open on to the

University Plaza. In addition to the teaching and learning facilities and the gymnasium and recreation space, there

will be a physiotherapy clinic and a café open to the public as well as students. We will be very fortunate to

have a major learning and recreational facility next to a world-class covered stadium on the edge of our campus.

This complex at the University Plaza, which is due for completion by August 2011, will be unparalleled in the

Southern Hemisphere.

During 2009 an enormous amount of work was put into the development of a Campus Master Plan, which

will guide the development of the Dunedin, Christchurch and Wellington campuses over the next 20 years. A

comprehensive plan of this type has not been produced since 1980. An international consulting firm (DEGW)

was commissioned to lead this project, with a final report due for release in the first half of 2010.

The quality of the campus experience for students and staff depends not only on buildings and grounds, but also

on the social environment. Otago students benefit from a host of cultural and sporting activities, many of which

are organised or sponsored by the Otago University Students’ Association (OUSA).


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As the University of Otago grew rapidly in the 1980s and 1990s, a small minority of students began to adopt

antisocial patterns of behaviour that were becoming a threat to the enjoyment of other students and to the

reputation of the University. In 2007 a Code of Student Conduct and a Campus Watch service were introduced.

These have produced a steady improvement in behaviour, with continued progress in 2009. Nevertheless, there

were two serious lapses, at the time of the Toga Parade during Orientation Week and the Undie 500 weekend

(when students came down from Canterbury University) later in the year. A number of students were excluded

from the University following these incidents. It is expected that there will be no Toga Parade or Undie 500

during 2010.

Regrettably, the OUSA Executive sought a declaration by the High Court that the Code of Student Conduct

was invalid. After a full Court hearing, Justice Gendall rejected all of the OUSA claims and confirmed that the

University is entitled to discipline students for off-campus behaviour that affects the reputation of the University.

While it is important that the University can discipline and, where appropriate, exclude students for serious

breaches of the Code of Student Conduct, it is also essential to address the underlying cause. This is almost

always excessive alcohol consumption, which is a major problem among young people throughout New

Zealand. In October the University Council agreed to ban alcohol advertising and sponsorship from all

campuses and at University-organised events wherever they are held. This is the first such measure to be taken

by a New Zealand university, and it has received support from students as well as the wider community.

contriButing to the national good and to international progress

Perhaps our greatest contribution to New Zealand and to international development in 2009 was the

graduation of over 5,000 people with degrees and diplomas (26% of which were postgraduate qualifications).

These graduates will take up positions in a wide variety of professions, as well as the business community. Other

major contributions stem from the findings of research on matters as diverse as economics, tourism, child

development, environmental challenges, and public health.

As recorded elsewhere in this Annual Report, more than 90% of academic staff report involvement in

community service such as working on Government advisory boards and committees, presenting to school and

community groups, and providing continuing education courses.

The University of Otago is strongly committed to the Treaty of Waitangi. The Treaty of Waitangi Committee,

which has equal representation from tangata whenua (Ngäi Tahu) and the University, continued to oversee

the implementation of our Mäori Strategic Framework. Exciting developments are occurring in many parts

of the University. In addition to the Treaty-based partnership with Ngäi Tahu, the University has developed

special relationships with several North Island iwi. In 2009 we hosted a visit from leaders of Ngati Whatua in

Northland and Auckland.

One of our priorities is to increase the recruitment, retention and achievement of Mäori students. In 2009 the

University enrolled 1,619 Mäori students, the largest number in our history. Mäori students comprised 8.5% of

the domestic roll. A record number of Mäori students (353) also completed qualifications successfully during the

year.

The University is a partner in Te Tapuae o Rehua, a company which combines resources from Ngäi Tahu and the

major tertiary organisations in the South Island. Arising from this collaboration, and with support and funding

from the Ministry of Health, the University launched a new one-year foundation programme to prepare Mäori

young people for university courses leading to health professions. The programme is called Tu Kahika, and the

first student cohort was recruited in the latter part of the year to begin their studies in February 2010.

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The number of Pacific students at Otago increased by 9.3% compared with 2008. Again the number enrolled

(644) was a record, as was the number (134) who successfully completed qualifications. A Pacific Peoples’

Reference Group advised the University on all aspects of our relations with Pacific peoples in New Zealand and

in island countries. In September Dr Faafetai Sopoaga was appointed as the first Associate Dean (Pacific) in the

Division of Health Sciences. Her role includes co-ordinating efforts to support current and prospective Pacific

students seeking to enter the health workforce.

Dr Sopoaga and Dr Kim Ma’ia’i (Director of the Student Health Services) were among the health professionals

who went to Samoa to render assistance following the devastating tsunami. The University maintained its close

relationship with the National University of Samoa. A special grant was provided to enable the delivery of a

paper in Public Health by University of Otago staff in Apia.

Research in all four academic divisions addresses the needs of less developed countries. This includes work

on development economics in the Division of Commerce, development studies involving the Department

of Geography, work on trace elements in Africa by the Department of Human Nutrition, and research on

infectious diseases by the Centre for International Health. Towards the end of 2009, a generous endowment

by a Dunedin businessman provided for the establishment of a second professorial chair in the Centre for

International Health.

Dr Kim Ma’ia’i, Director of Student Health Services (left), and Dr Faafetai Sopoaga, Division of Health Sciences Associate Dean (Pacific), who helped with relief work following the Samoan tsunami. They are pictured with Pacific Islands Centre Manager Tofilau Nina Kirifi-Alai (right).


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strengthening eXternal engagement

The location of Otago’s main campus in the university city of Dunedin confers outstanding advantages, but

it also separates much of the University geographically from the major centres of population and decision-

making. It is, therefore, important for us to work hard to engage effectively with national bodies. As mentioned

previously, many of our academic staff serve on Government and professional advisory boards. The University

collaborates closely with many health organisations, including especially the District Health Boards in Wellington,

Canterbury, and Otago. There are also a myriad of collaborative initiatives with other universities and Crown

research institutes. For example, in order to promote joint scientific research projects involving the University

and AgResearch, the two institutions have established a collaborative research fund. In 2009 seven projects were

selected from a strong field of 21 submissions, to receive funding worth $500,000 in total.

At the local level, the University maintained close and productive relationships with the Dunedin City Council

and the Otago Polytechnic. Under the auspices of the Tertiary Sector Steering Group, several committees are

working on projects that involve these three bodies.

As part of our commitment to internationalisation, the University has memoranda of understanding with about

100 universities around the world. In addition to supporting collaboration in research and education, most of

these provide for student exchange programmes. During 2009 Otago was also involved in discussions with a

small number of research-intensive, campus-based universities which are considering the establishment of a small

network that would promote much closer engagement. Further developments are expected during 2010.

Building and sustaining capaBility

In order to be successful, the University needs to secure sufficient resources and use these effectively and

efficiently. Staff are our most important asset. A distinguished University President in the USA recently wrote

that everything he knew about colleges and universities had told him “that you build institutional strength on the

quality of the faculty; nothing can substitute for it”.

We put great emphasis on attracting and retaining academic and general staff of the highest quality. It is also

crucial that all staff are able to fulfil their potential. During the year a Working Party on Gender Equity, chaired

by Professor Gareth Jones, made a number of recommendations for improving opportunities for women staff.

Following one of these recommendations, it was agreed to establish a Gender Equity Advisory Committee.

Another important development during 2009 was the adoption of a more generous Parental Leave Policy.

Commercialisation activities are important, not only for patenting, licensing, and spinning out new companies,

but also for generating research opportunities and funding. The University of Otago has two important

interfaces between researchers and industry: the Enterprise Office and our commercialisation company, Otago

Innovation Limited (OIL). In December I invited Brett Cornwell, from the Texas A&M University System, who

first reviewed our commercialisation activities in 2006, to return to the University and assess what progress has

been made. He was highly complimentary about our commercialisation activities, while also making a number of

recommendations for achieving further success.

The University of Otago had a satisfactory financial performance during 2009. The University’s operating surplus

for the year was $21.2 million, a return of 3.9% on revenue and 2.0% on net assets. While this amount was 14%

lower than the surplus achieved in 2008, it was a little higher than our budgeted surplus of $19.6 million. The

diversified investment portfolio of our Trusts achieved a very satisfactory operating surplus, due to the partial

recovery of equity and bond prices during the year. For this reason, the University Group, which includes not

19

only the University but also the Trusts and the various companies wholly or partially owned by the University,

produced a satisfactory operating surplus of $31.1 million for the year.

These results were achieved only by constraining expenditure in nearly all of our activities. It is vital that we

maintain adequate operating surpluses in order to fund the infrastructure that is urgently needed, but this is

becoming increasingly difficult – especially in the current financial environment. Indeed, the most serious problem

we face, in common with the other New Zealand universities, is the relatively low levels of Government funding

for tuition and research. The extent of this problem can be illustrated by comparing the funding received by

the University of Otago and the University of Western Australia, with which we have been working closely. If

one takes account of all sources of funding, including Government tuition subsidies, student fees, and research

income, the University of Otago attracts approximately NZ$28,000 per EFTS. This is a larger amount than at any

of the other universities in New Zealand, except for Lincoln which is a very small institution (with only about

2,500 EFTS). In contrast, the University of Western Australia receives a total of NZ$50,500 per EFTS.

Unless this gap can be narrowed, it is hard to see how New Zealand universities can continue to attract and

retain staff and students of the highest calibre. Decisions in the Government’s Budget in May 2009 determined

that our situation will become more difficult in 2010, and much more difficult in 2011. We were especially

perplexed by the decision to cancel a contribution to university salaries known as the “tripartite adjustment

fund”. For reasons which are quite accidental, this will affect Otago more than any other institution. Funding for

scholarships was also markedly reduced.

No one expects universities to be immune from the financial crisis that has affected New Zealand and other

countries. Nevertheless, we hope that the Government will recognise that investments in education and

research produce large benefits for the economy as well as society. A KPMG study published in Australia in April

2009 concluded that investment in higher education, taking account of all costs and benefits, produces a real

economic rate of return of 14 – 15%, which is more than double the benchmark set for good investment at

the long-term bond rate of 6 – 7%. Of course, higher education also produces many benefits that could not be

measured by an economic rate of return.

conclusion

Despite the challenging financial situation, I believe that the University of Otago is in good heart. I would like to

thank all of my colleagues on the academic and general staff for their loyalty and commitment. I am also grateful

to the members of the Executive Group for their excellent contributions. Special thanks are due to Professor

Gareth Jones, who completed his term as Deputy Vice-Chancellor (Academic and International) at the end of

2009. Through his wisdom, expertise, and deep understanding of universities, Professor Jones made important

contributions to many of the achievements of the University of Otago over the last five years.

Finally I would like to record my thanks to the University Council. Under the able chairmanship of the new

Chancellor, Mr John Ward, the Council has continued to provide excellent governance and I am very grateful for

their guidance and support.

david skeggVICE-CHANCELLOR


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SIGnIFICant eVentS 2009

senior appointments

Dr Madhav Bhatia as Professor of Pathology, University of Otago, Christchurch

Dr Jennie Connor as Professor of Preventive and Social Medicine

Professor Kim Economides as the inaugural Professor of Legal Issues

Professor Richard Edwards to the Chair in Public Health, University of Otago, Wellington

Dr Mauro Farella as Professor of Orthodontics

Dr Colin Gavaghan as Director of the Centre for Law and Policy in Emerging Technologies

Dr Astrid an Huef as Professor of Pure Mathematics

Professor Keith Hunter as Pro-Vice-Chancellor, Sciences

Professor Jules Kieser as Director of the Sir John Walsh Research Institute

Dr John McCall as Professor of Surgery

Professor Andrew Mercer to the Chair in Viral Pathogenesis

Dr Indrawati Oey as Professor of Food Science

Professor Vernon Squire as Deputy Vice-Chancellor (Academic and International)

Dr Hank Weiss as Director of the Injury Prevention Research Unit

Dr Brian Young as the Director (Research) in the University’s Research and Enterprise office.

emeritus professors

the following professors were granted the status of emeritus professor:

Richard Sibson (Geology), Derek Holton (Mathematics and Statistics) and John Langley (Preventive and Social

Medicine).

professorial promotions

the following staff were appointed to professor:

Annette Beautrais (Psychological Medicine, Christchurch), Murray Barclay (Department of Medicine,

Christchurch), Judith Bennett (History), Philip Bremer (Food Science), Sunny Collings (Public Health, Wellington),

Michael Colombo (Psychology), Peter Herbison (Preventive and Social Medicine), Martin Kennedy (Pathology,

Christchurch), Iain Lamont (Biochemistry), Robert McGee (Preventive and Social Medicine), James McQuillan

(Chemistry), Henrik Moller (Zoology), Alexander Trapeznik (History) and Graham Wallis (Zoology).

the following staff were appointed to associate professor:

David Purton (Oral Rehabilitation, Dentistry), Blair Blakie (Physics), Jenny Bryant-Tokalau (Te Tumu), Christopher

Button (Physical Education), Gerard Closs (Zoology), Patricia Cragg (Physiology), Peter Dearden (Biochemistry),

Leigh Hale (Physiotherapy), Jonathan Hall (Classics), Janine Hayward (Politics), Brendan Hokowhitu (Te Tumu),

Sarah Hook (Pharmacy), David Hutchinson (Physics), Peter Larsen (Surgery and Anaesthesia, Wellington),

Brendan McCane (Computer Science), Holger Regenbrecht (Information Science), Poia Rewi (Te Tumu),

Louise Signal (Public Health, Wellington), Martin Tolich (Anthropology, Gender and Sociology), Hazel Tucker

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(Tourism), Joanne Baxter (Preventive and Social Medicine), Lutz Beckert (Medicine, Christchurch), Nigel Dickson

(Preventive and Social Medicine), Richard Gearry, (Medicine, Christchurch), Lisa Stamp (Medicine, Christchurch),

Michael Sullivan (Paediatrics, Christchurch).

Patrick Dawes (Medical and Surgical Sciences), David Jardine (Medicine, Christchurch) and David Lewis (Surgery,

Christchurch) were promoted to clinical associate professor.

Mark Hampton (Pathology, Christchurch), Gregory Jones (Medical and Surgical Sciences), Margreet Vissers

(Pathology , Christchurch), Nicholas Wilson (Public Health, Wellington), Nigel Dickson (Preventive and Social

Medicine / Women’s and Children’s Health) were promoted to research associate professor.

honorary degrees

Honorary degrees were conferred on the Reverend Canon Paul Oestreicher (Doctor of Divinity); fiction

writer Barbara Anderson and New Zealand hymn writer Shirley Erena Murray (Doctor of Literature); former

University of Otago academic and Deputy Prime Minister Hon Dr Michael Cullen and Otago businessman and

community benefactor Trevor Scott (Doctor of Laws).

honours

Knight Companion of the New Zealand Order of Merit (KNZM): Professor David Skegg; Companion of the

New Zealand Order of Merit (CNZM): Emeritus Professor Jocelyn Harris; Officer of the New Zealand Order

of Merit (ONZM): Professor Harlene Hayne, Associate Professor Bridget Robinson, Professor K Geoffrey White;

Member of the New Zealand Order of Merit (MNZM): Professor Terry Crooks, Dr Pat Farry, Lester Flockton;

Companion of the Queen’s Service Order (QSO): Professor Philippa Howden-Chapman, Bruce Aitken; The

Queen’s Service Medal (QSM): Ashley Day.

oBituaries

Emeritus Professor Sir Donald Beaven (85). Former Professor of Medicine and academic department head at

the University’s Christchurch School of Medicine.

Associate Professor Oliver Davidson (50). Head of the Department of Psychological Medicine, Dunedin School

of Medicine.

Dr Pat Farry (65). General Practice and Rural Health, and founding Director of the University’s Te Waipounamu

Rural Health Unit.

Emeritus Professor John Johnston (92). Faculty of Dentistry.

Emeritus Professor Martin Kean (80). Former Professor of Orthodontics and Dean of the Faculty of Dentistry.

Emeritus Professor Hewat (Hew) McLeod (76). Department of History.

Emeritus Professor John Parr (87). A pioneering ophthalmologist at the Dunedin School of Medicine.

David Symon (88). The founding Master of University College.

Emeritus Professor Richard Sutton (70). Former Professor and Dean of the Otago Law Faculty.

James (Jim) Valentine (87). Former University Council member and Chancellor.


22

23

research and postgraduate teaching

The University of Otago continues to foster excellence in research and research-informed teaching. High quality

research underpins activity across all four of the University’s academic divisions and, in 2009, there were a

number of significant achievements, a few of which are highlighted below.

In February the University hosted the fourth MacDiarmid Institute Conference on Advanced Materials and

Nanotechnology. In addition to speakers from other New Zealand universities and Crown Research Institutes,

delegates from 17 different countries came together to produce a programme that reflected an interdisciplinary

and cross-sector approach to nanotechnology. Professor Sir Harry Kroto, who won the Nobel Prize in

Chemistry in 1996 for the discovery of a new form of carbon, was the keynote speaker.

genetics Otago was officially launched in August. genetics Otago is a network of researchers who are devoted

to promoting and supporting cutting-edge research and teaching in the field of genetics. At the time of the

launch, the membership of genetics Otago included more than 100 individuals from the Divisions of Health

Sciences, Sciences, and Humanities as well as from Crown Research Institutes, including AgResearch. The Chief

Science Advisor to the Prime Minister, Professor Sir Peter gluckman, was a guest speaker at the launch.

Findings of some of the University’s most innovative health research programmes were presented at a special

Health Sciences Research forum, The Human Hive, hosted on the Wellington campus in September. More than

100 researchers from the University’s Dunedin, Christchurch and Wellington campuses presented the results

of research designed to address the community health needs of New Zealand’s most vulnerable and at-risk

individuals.

University of Otago Research Centres and Themes continued to feature prominently in national and

international research programmes and collaborations. The Christchurch Cardioendocrine Research Centre

entered into a partnership with the National University Hospital of Singapore to participate in a dual-nation

heart-failure study. The Oceans and Climate Change Research Centre was involved in the International Ocean

Drilling Programme, and Otago Energy Research Centre researchers worked with a local community to reduce

its energy consumption. The Formulation and Delivery of Bioactives Research Theme attracted researchers from

around the world to its 11th Conference while, in Wellington, the New Zealand Centre for Sustainable Cities

gained prominence for its research into home insulation.

research funding

The strength of the University’s research culture was reflected in a high degree of success in major external

funding rounds.

For the fifth successive year University of Otago researchers won the largest share of the highly competitive

Marsden Funding round, receiving more than $18 million for 26 projects. These projects range from unsolved

questions of gravity, to the implications of excessive weight gain during pregnancy, with funding gained by both

emerging and senior researchers.

Otago researchers also gained more than $30 million in the Health Research Council (HRC) funding round

for projects aimed at improving the health and well-being of New Zealanders. Among them were three new

programmes – a community healthy housing intervention programme (Wellington), a programme on oxidative

stress in health and disease (Christchurch), and a new phase in the long-running Dunedin Multidisciplinary

Health and Development Study looking at ageing and risk factors for chronic disease. A feasibility study looking

at workers’ exposure to health and safety risks was also funded.


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Two international health-research collaborations, led by Otago’s researchers, also received funding from

the HRC through its International Investment Opportunities Fund. One, led by Professor Warren Tate

(Biochemistry) will explore a novel drug target against HIV-1. The other, led by Professor Richard Cannon (Oral

Sciences), will develop ABCB5 inhibitors in the fight against melanoma. Dr Andrew Clarkson (Psychology)

received a four-year Sir Charles Hercus Research Fellowship from the HRC valued at $500,000 to pursue new

therapies for improving the brain’s recovery after strokes.

A number of other University of Otago researchers also gained significant funding for brain-health related

studies from the Neurological Foundation of New Zealand (total: $447,685). Projects investigating aspects

of diet or drugs on human health received funding totalling $82,700 from the Otago Medical Research

Foundation’s Laurenson Awards.

The AgResearch, University of Otago Collaborative Research Fund announced a funding boost of $500,000 to

support seven new joint research projects in the areas of human and animal health. The fund, established two

years ago, demonstrates the strong spirit of collaboration between the two organisations.

Significant Foundation for Research, Science and Technology funding was received for projects investigating New

Zealand energy cultures, and the critcal links between tourism and aviation in New Zealand. A project led by

the Alexander McMillan Professor of Childhood Studies, gordon Harold, was awarded $424,000 from the UK’s

Nuffield Foundation in collaboration with researchers at Cardiff University. In this research, Professor Harold will

examine ways to maximise the outcome of children caught up in hostile family conflicts.

research achievements

The University’s highest honour, the Distinguished Research Medal, was awarded to Professor Cliff Abraham

(Psychology) in recognition of his internationally-recognised research on the neural mechanisms of memory.

Professor Cliff Abraham was awarded the University’s 2009 Distinguished Research Medal.

25

The University of Otago maintains a strong commitment to fostering the careers of emerging researchers.

In recognition of their research achievements, four Early Career Awards for Distinction in Research were

presented in 2009. The recipients of these awards were Dr Rebecca Campbell (Physiology), Dr Lisa Stamp

(Medicine, Christchurch), Dr Angela Wanhalla (History) and Dr Sarah Young (Microbiology and Immunology).

In June, members of the O-Zone group – a University initiative to recognise and support outstanding early- to

mid-career researchers – organised an event to promote dialogue between more than 100 staff from across

the four academic divisions. During the year, members of O-Zone also met with a number of individuals and

organisations to discuss some of the special concerns of early- and mid-career researchers, including Professor

Sir Peter gluckman (Chief Science Advisor to the Prime Minister), Dr Wayne Mapp (Minister for Research,

Science and Technology) and Dr Diane McCarthy (CEO, Royal Society of New Zealand).

Dr Chris Brickell (gender Studies) was presented with the 2009 Rowheath Trust Award and Carl Smith Medal,

which also recognises outstanding research performance by an early career staff member. Dr. Brickell’s book,

Mates & Lovers: A History of Gay New Zealand, was awarded the 2009 New Zealand Society of Authors’ Best

First Book of Non-Fiction Award.

Otago’s research excellence was further highlighted by the recognition that staff received from the national and

international academic community, including:

Professor Sally Brooker (Chemistry) who was awarded the New Zealand Institute of Chemistry

Maurice Wilkins Centre Prize for excellence in chemical research

Professor Brett Delahunt (Pathology, Wellington) who received the Distinguished Fellowship and gold

Medal of the Royal College of Pathologists of Australasia for his sustained outstanding contributions to

pathology research and practice

Dr Rogelio guedea (Languages and Cultures) who won Spain’s highest poetry award, the Premio

Adonáis de Poesía or Adonais Prize for Poetry

Associate Professor Parry guilford (Cancer genetics Laboratory) who was awarded a two-year James

Cook Research Fellowship

Professor Allan Herbison (Physiology) who won the HRC’s Liley Medal for his ground-breaking

research into how the brain controls fertility

Professor Janet Hoek (Marketing) who was made a fellow of the Australian and New Zealand

Marketing Academy

Dr Hugh Slotten (Media, Film and Communication) who won the Charles A Lindbergh Chair in

Aerospace History at the Smithsonian National Air and Space Museum in Washington

Professor Murray Thomson (Oral Sciences) who received Australasia’s premier award for dental

science, the Alan Docking Award for distinguished work in dental research

Emeritus Professor John Barsby (Classics), Dr Philip Boyd (NIWA/Chemistry), Professor Terence

Dennis (Music), Professor Andrew Mercer (Microbiology and Immunology) and Professor Hamish

Spencer (Zoology) who were elected Fellows of the Royal Society of New Zealand

Dr Shieak Tzeng (Surgery, Wellington) and Dr Jonathan Clearwater (Psychology) who both won AMP

scholarships.


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development

The Leading Thinkers partner contributions with $25 million government matching funds were finalised in 2008

and several of these endowed chairs were filled in 2009. Seven new professors arrived on campus in 2009

and, with their arrival, the following centres, established through the Leading Thinkers initiative, also became

operational:

Liam McIlvanney, Stuart Professor of Scottish Studies, joined with Professor Peter Kuch, the Eamon

Cleary Professor of Irish Studies, to establish the Centre for Irish and Scottish Studies

gordon Harold, Alexander McMillan Professor of Childhood Studies – Centre for Research on

Children and Families

Philip Hill, McAuley Professor of International Health - Centre for International Health

Andrew Bradstock, Howard Paterson Professor of Theology and Public Issues – Centre for Theology

and Public Issues

Kevin Clements, Professor of Peace and Conflict Studies – New Zealand Centre for Peace and

Conflict Studies

Professor Kim Economides – Legal Issues Centre

Colin gavaghan, New Zealand Law Foundation Associate Professor in Emerging Technologies – Centre

for Law and Policy in Emerging Technologies.

By the end of the year, only the T D Scott Chair in Urology was yet to be filled.

A Memorandum of Understanding, signed between the University and Rowing New Zealand (RNZ), heralded

the establishment of a High Performance Centre based at the University Rowing Club facility. RNZ will promote

the University of Otago as its preferred academic and training venue for developing athletes. The University will

benefit from access to high-performance athletes for research in sports science and medicine.

commercialisation

Otago Innovation Limited, the University’s commercialisation company, continued to develop its project

portfolio in 2009.

Immune Solutions Limited began development of its oral-delivery technology Liporale™ for use in human

vaccines. Initial developments will be for an improved tuberculosis vaccine and a novel chlamydia vaccine.

Immune Solutions’ product candidate Human Liporale™ – BCg vaccine is listed as one of the 21 next-

generation candidates on Stop TB Partnership’s global compilation of 2009 Tuberculosis Vaccine Candidates.

Also in the tuberculosis field, Professor Steve Chambers (Pathology, Christchurch) and Dr Mona Syhre (now

based in germany) continued their work investigating a breath test for diagnosing tuberculosis. Professor Philip

Hill (Preventive and Social Medicine) joined the expert team to support clinical field work in Bandung, Indonesia.

The clinical results are due to be completed in June 2010; capital investment will be used to develop the breath-

test device. This project shows significant potential to advance the global fight against tuberculosis.

HCN, the leading provider of clinical and practice-management software for Australia, has been selected by

Otago Innovation Limited to distribute the TOXINZ (poison database) to hospitals and medical centres in

Australia. This venture strengthens the reputation of the University of Otago National Poisons Centre and

provides additional critical care options for Australian general practitioners and specialists.

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Professor Warren Tate and Dr Tony Cardno (Biochemistry) developed a drug-discovery screening assay to

investigate a previously unexploited weakness in HIV biology and are seeking drugs to attack it. In partnership

with the Walter and Eliza Hall Institute (WEHI) in Melbourne, they have been granted funding from the HRC

through the International Investment Opportunity Fund, to screen for new HIV drug candidates. The WEHI’s

High Throughput Screening facility is ideal for exploring the effectiveness of the assay and this may lead to a

potential new drug to combat HIV-1.

The 2009 Otago Innovation Proof of Concept grant attracted high-calibre applications. For the third successsive

year a University of Otago, Christchurch staff member won the award for research with commercial potential –

Pathology researcher Professor Steve Brennan and his anticoagulant drug candidate.

postgraduate teaching

One defining feature of a research-intensive university such as Otago is a high proportion of postgraduate

students. In 2009, the University of Otago continued to enhance its scholarship portfolio and other support for

postgraduate students. The number of postgraduate students continued to grow.

Doctoral enrolments set another record with 1,270 candidates at the end of the year (2008: 1,152). This figure

included 1,206 PhD candidates (2008: 1,103), 20 Doctor of Education candidates (2008: 12) and 44 Doctor of

Clinical Dentistry candidates (2008: 36).

There were 1,119 enrolments at master’s level (2008: 1,084) and 1,614 in postgraduate diplomas and

certificates (2008: 1,635).

Several new postgraduate programmes were introduced including a Postgraduate Diploma in Surgical Anatomy

and the addition of several new Postgraduate Diploma in Arts subjects. A new professional doctorate in Music

will begin in 2010.

A record number of 163 PhDs were completed in 2009 (2008: 148). The total number of doctorates completed

in 2009 was 176 (PhD:163; DClinDent: 12; MD: 1).

The importance of providing quality support to postgraduate students is well recognised by the University. In

2009 a pilot project, Otago University Research (OUR) Communities, was established to create supportive

academic and social environments led by, and for, research students.

Student services on the Christchurch and Wellington campuses were enhanced with the appointment of on-site

learning advisors to support postgraduate students and a new postgraduate professional training programme was

introduced in the Division of Humanities to help prepare students for academic positions.

Dr Alan Davison, lecturer and co-ordinator of research in the Department of Music, was named 2009 OUSA

Supervisor of the Year while Dr Kelly Hare (Zoology) was named Best New Supervisor of the Year.

2009 was another strong year of achievement for Otago postgraduate students. Physiology MSc student Mickey

(Jui-Lin) Fan won the master’s level prize in the MacDiarmid Young Scientists of the Year Awards for research

into links between blood flow to the brain and breathing patterns.

The University continued its distinguished record of Rhodes Scholarships with Thomas Hills (Medicine) and Alice

Irving (Law, Community and Family Studies) gaining two of only three scholarships awarded in New Zealand.

Nathalie Saurat (Biochemistry) was awarded a Woolf Fisher Scholarship and Jonathan Squire (Physics) gained an

International Fulbright Science and Technology Award.


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Twelve students received Top Achiever Doctoral Scholarships, and 2008 MacDiarmid Young Scientist of the Year

Dr Rebecca McLeod (Chemistry) and Dr Fiona Jack (Psychology) were awarded postdoctoral fellowships by the

Foundation for Research, Science and Technology.

Dr Katja Schweikert, PhD students Rebecca Lodge, Nicolas Hay and MSc student Robert Win gained Te Tipu

Pütaiao Fellowships from the Foundation for Research, Science and Technology. Julian Peat (Applied Science) and

Naomi White (Psychology) received Rutherford Foundation Scholarships.

graduates Anna Bradley, Stephen gray and Simon Peart received Fulbright Scholarships and Steven Sutton

was awarded a Commonwealth Scholarship to pursue a PhD in History at Cambridge University. Tracy Josephs

(Biochemistry) and Rebekah Scott (Neuroscience) received the University’s Elman Poole Travelling Scholarships,

while Rachel Swindells (Music) was awarded the first Elman Poole Residential Fellowship at Knox College.

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Cost of outputs

research and postgraduate teaching

commerce health sciences humanities

This Year Budget Last Year This Year Budget Last Year This Year Budget Last Year

$000 $000 $000 $000 $000 $000 $000 $000 $000

Postgraduate thesis supervision 4,298 3,012 3,039 13,879 15,823 12,508 10.805 10,660 7,483

Teaching-related research 1,095 2,880 2,765 6,669 7,491 6,106 5,000 5,841 5,989

Project-based research

- University funded 3,868 3,291 3,576 54,194 47,922 47,113 3,432 2,849 3,409

- Externally funded 1,003 1,207 1,190 70,425 74,712 70,855 9,758 9,095 8,644

total cost of output 10,264 10,390 10,570 145,167 145,948 136,582 28,995 28,445 25,525

sciences service divisions total


$000 $000 $000 $000 $000 $000 $000 $000 $000

Postgraduate thesis supervision 8,787 10,259 9,715 11,789 13,176 11,888 49,558 52,930 44,633

Teaching-related research 4,855 5,484 5,516 0 0 0 17,619 21,696 20,376

Project-based research

- University funded 19,117 15,446 15,800 85 50 52 80,696 69,558 69,950

- Externally funded 19,221 19,538 16,739 0 0 0 100,407 104,552 97,428



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teaching, learning and assessment

The University of Otago is committed to promoting excellence in research-informed teaching, to providing

programmes that meet the changing needs of students and society, to enhancing the quality of teaching and

programme delivery, and to fostering intellectual independence and achieving excellent learning outcomes.

In 2009, 190 degree, diploma and certificate programmes were offered. New qualifications included a

Bachelor of Education Studies and associated Graduate Diploma in Education and Teaching, a Bachelor of

Dental Technology with Honours, and a Postgraduate Diploma in Surgical Anatomy. Other changes included

the introduction of Biostatistics as a Master of Science subject, Development Studies as a Master of Arts and

Postgraduate Diploma in Arts subject and TESOL (Teaching English to Speakers of Other Languages) as an

endorsement for the Bachelor of Education.

Changes to the Academic Progress Policy were approved to come into effect from Semester One, 2010, the

most significant change being that students will be placed on conditional enrolment after one year (instead of

two years) of failing more than half of the points for which they enrolled. The University will impose a two-

year suspension when a student on conditional enrolment fails more than half of the points in which they are

enrolled.

Distance education contributed to the University’s progress at all levels of teaching and learning, particularly

at the postgraduate level where approximately half of all coursework is undertaken by distance study. A small

number of distance education programmes continued to run internationally, enhancing the University’s profile

and fostering wider international networks. A professional development programme, designed to build staff

capability in distance teaching, was developed and introduced by the Higher Education Development Centre

(HEDC) and the Distance Learning Office.

The ninth Otago Summer School, run in January and February, offered 77 papers, of which 28 were new

and 41 were available only in Summer School. Most papers (66) were taught in Dunedin; however, two were

taught in Auckland, two in Wellington and seven were distance papers. Fourteen papers were taught by visiting

international academics especially contracted for Summer School. The percentage of students transferring from

other institutions to Otago for Summer School remained steady at 6.7%. International students comprised 8.5%

of the total Summer School student body (1,821).

In May, the Government announced funding to increase the number of medical doctors being trained in New

Zealand. This will initially translate to a further 24 places for commencing domestic medical students at Otago in

2010, bringing the total commencing intake of domestic trainee doctors to 234.

The University also received Government support for a pilot programme, Tü Kahika, to help Mäori students

prepare for health sciences study. This programme, which aims to increase Mäori representation in the health

professions, will see students enrol in the University’s Foundation Year programme in 2010 in preparation for

entry to Health Sciences First Year or other health studies in 2011.

The School of Business retained its international EQUIS accreditation, a stringent European standard held by

only 118 business schools in 34 countries, and which identifies business schools as having world-class staff,

resources and facilities. The School of Pharmacy underwent a programme accreditation review by the Pharmacy

Councils of New Zealand and Australia. The report will be released in 2010.


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enrolment

Otago achieved another record year for enrolments in 2009, with a final total of 19,172 EFTS, comprising

18,903 University EFTS and a further 269 EFTS for its Foundation Studies subsidiary. These equivalent full-time

figures were generated by 21,507 individual students, again the highest in Otago’s history.

The University component of this growth represented an overall increase of 3.9% over 2008 in EFTS terms.

The key contributor to the 2009 result was a 722 EFTS (4.3%) rise in domestic student enrolments (including

international students with domestic status for Government funding purposes), the benefit of which was slightly

offset by a 14 EFTS (1.0%) decline in full-fee international enrolments.

Within the domestic student population, the proportion of those coming to the University from outside Otago/

Southland continued to increase. Such students now comprise 64.3% of domestic first-year students (2008:

63.7%), including 44.2% of domestic first years who have come to Otago from the North Island (2008: 43.8%).

Domestic postgraduate enrolments increased at a greater rate than undergraduate enrolments, up 4.8% over

2008. Postgraduates made up 16.2% of all domestic enrolments and grew to 13.1% of international enrolments.

The most significant areas of postgraduate increase were in doctoral enrolments, which rose by 10.2% to 1,270,

and enrolments in masters’ programmes (both taught and research-based), which increased by 3.2% to reach

1,119.

Undergraduate growth occurred at bachelors’ and honours levels of study. Conversely, but in keeping with

the University’s strategic direction, the proportion of students studying towards undergraduate diplomas and

certificates was relatively flat.

After a slight drop in 2008 of 0.8%, the number of Mäori students attending the University grew by 6.4% in

2009 to 1,619. As a result, the percentage of Mäori students within the domestic student population increased

to 8.5% (2008: 8.3%) and 7.5% of the entire student population (2008: 7.3%). The number of Pacific students

continued to grow, up significantly (9.3%) from 589 in 2008 to 644 in 2009.

The number of students recruited from Australia declined. In 2009, the University enrolled 32 first-year students

from Australia (2008: 40), some 56% of whom were Australian citizens, and 44% New Zealand citizens returning

from Australia. The total number of enrolments from Australia was 218 (2008: 234).

internationalisation

The number of international full-fee-paying students declined slightly in 2009, but the numbers of international

students overall increased when those eligible for domestic fees status are included (e.g. PhD students, exchange

students).

The United States remained the most important single source of students within the University’s international

mix, with 524 enrolments; Malaysia was the second biggest source of students with 383 students. Together, the

United States and Malaysia accounted for 36.7% of international enrolments in 2009 (2008: 33.6%). Solid growth

was also achieved from Canada, India, Hong Kong, Oman, Denmark and Sweden.

The University attracted international enrolments from 98 countries in all (2008: 93), including 20 from which

the University drew 20 or more enrolments. Behind the United States, Malaysia and China, the largest of these

were Germany, Canada, South Korea, Japan, India, Saudi Arabia and Brunei. Study Abroad numbers (largely from

the United States, coming for single-semester study) increased after a dip in 2008. The rise in exchange students

was attributable to more University of Otago students taking the opportunity to spend one or two semesters

at a partner university, meaning that Otago could then accept more in-bound students.

33

A change in government policy, signalled in the 2009 Budget, saw French and German postgraduate students

lose their domestic fees eligibility. In the past, Otago has received a number of students under this policy,

particularly from Germany, many of whom stayed on to undertake PhD study at Otago. The full impact of this

policy will not become evident until 2011, as those already accepted for study when the change was announced

are still able to access domestic fees status.

The International Office, together with Academic Services, led a project to implement a web-based customer-

service tool with an automated “self-learning” knowledge base, to ensure prospective students’ and other

stakeholders’ queries are answered immediately and accurately. For the International Office, in particular, the

impetus for this initiative was an acknowledgement that prospective students and recruitment agents reside in

different time zones and are looking for “real-time” responses to their questions.

Internationalisation of the Curriculum Initiative Grants were awarded for a variety of projects, including support

of an Otago paper in Public Health at the National University of Samoa (NUS), the first time such a programme

has been implemented. The University of Otago House on the NUS campus was also opened to Otago staff

as an accommodation base when undertaking research in Samoa or there on other University business, and is a

highly visible symbol of the strong relationship between the two institutions.

Membership of the New Zealand Centre at Peking University (PKU), in Beijing, is helping build a higher profile

for Otago, and also providing a base for activities such as guest lectures to be offered by academics visiting

China, as well as the opportunity to showcase the University and New Zealand to some of China’s top students.

Relationships with China were also strengthened with the signing of a memorandum of understanding between

Otago and Shanghai Jiao Tong University, one of the most highly ranked universities in China.

developing teaching and learning

Quality teaching is vital for the successful delivery of all academic programmes and the University celebrates

this with its annual Teaching Excellence Awards. These are the counterpart to the Distinguished Research Medal

and celebrate outstanding contributions in fostering learning. In 2009 awards were presented to Dr Rob Aitken

2009 Teaching Excellence Award winners: Associate Professor Allan Blackman (Chemistry), Ms Selene Mize (Law) and Dr Rob Aitken (Marketing).


34

(Marketing), Associate Professor Allan Blackman (Chemistry) and Ms Selene Mize (Law). Ms Mize also won the

Prime Minister’s Supreme Award at the National Tertiary Teaching Excellence Awards. Senior teaching fellow

Tony Zaharic (Biochemistry) was named OUSA Teacher of the Year.

The HEDC provided 72 professional development workshops covering aspects of teaching, research and Treaty

of Waitangi education, with 1,141 academic staff, tutors and demonstrators participating. Workshops were

also offered to help teachers integrate technology with their teaching, and a regular Learning with Technology

series was introduced. A total of 2,454 teaching and course evaluations were undertaken, and the Postgraduate

Certificate in Tertiary Teaching was again offered, attracting 19 participants.

A Women in Leadership at Otago programme was introduced and the Academic Women’s Mentoring

Programme had a record year with 32 new staff receiving mentoring.

Learning development and support became permanently established on the Christchurch and Wellington

campuses with the appointment of learning advisors. In Dunedin, the successful Peer Assisted Study Sessions

(PASS) programme was further rolled out in more first-year courses. Learning support for postgraduate

students was increased with a pilot peer support programme and an extended range of workshops. The

Student Learning Centre ran 257 workshops and provided one-to-one consultations to 631 students.

Educational Media continued to provide significant expertise and support for teachers who were awarded

CALT (Committee for the Advancement of Learning and Teaching) Innovation in Teaching or e-Learning

Enhancement Grants. CALT Conversations was introduced, designed to share experiences of developing and

implementing CALT grant projects, and a number of new areas of research were funded.

The library system, which provides essential information resources, services and expertise to the University,

increased its collections to a total of 3,062,249 items (2008: 3,053,936), with the most significant growth in the

heavily-used electronic collections.

E-books are now a substantial component of the resources available to Otago users and, by the end of 2009,

the library was providing access to 348,633 e-book titles. Much of the 2009 increase was the result of a new

model of automated e-book purchasing, driven by demand. Access to e-journals also increased by 53% over

2008.

35

Cost of outputs

teaching, learning and assessment



$000 $000 $000 $000 $000 $000 $000 $000 $000

Teaching and learning 19,516 20,817 19,213 75,094 83,393 67,204 40,114 42,323 40,937




$000 $000 $000 $000 $000 $000 $000 $000 $000

Teaching and learning 34,014 37,695 34,453 3,047 3,055 2,840 171,785 187,283 164,647



36

37

Community Service

The University of Otago seeks to make significant contributions to national goals and objectives, and is strongly

committed to community engagement, particularly in areas where this is a natural complement to general

academic and research developments.

This community service role includes:

Undertaking and promoting research which is of community benefit

Sharing the academic and professional expertise of staff through activities such as service on

government advisory boards and committees, presentations to school and community groups,

professional development, and through the media in areas of academic expertise

Providing continuing education courses, hosting conferences and open lectures

Making available to the public other resources such as the University Libraries, Hocken Collections,

the National Poisons Centre and the New Zealand Marine Studies Centre

Contributing to the arts through fellowships and performances

Maintaining an ongoing relationship with Otago alumni.

Although difficult to fully quantify, an annual survey of randomly-selected academic staff does give a picture

of the extent to which staff are involved in this aspect of University activity. Of those surveyed in 2009, 92.0%

reported involvement in community service (2008: 94.9%). It is estimated that service typically absorbs 6–10%

of an academic staff member’s professional time (2009: 7.0%).

The value of community service by University academics in 2009 was estimated at $21.0 million (2008: $17.6

million).

Through these activities, many Otago staff are held in high esteem among their peers and within the wider

community. Those recognised for their work in 2009 included:

Professor Tony Binns, who holds the Ron Lister Chair in Geography, was elected president of the New

Zealand Geographical Society

Dr Cheryl Brunton (Public Health and General Practice, Christchurch) was named Public Health

Champion for 2009 by the New Zealand Public Health Association

Emeritus Professor Gerry Carrington (Physics) was recognised by the Energy Efficiency and

Conservation Authority for his outstanding contributions to sustainable energy

Professor Katharine Dickinson (Botany) received the New Zealand Ecological Society’s Te Tohu Taiao

Award for Ecological Excellence

Professor Donald Evans (Bioethics) was made President of the International Bioethics Committee of

the United Nations Educational Scientific and Cultural Organisation, becoming the first person from

the Southern Hemisphere to hold the position

Professor Philippa Howden-Chapman (Public Health, Wellington) was co-recipient of the New

Zealand Psychological Society’s annual Public Interest Award


38

Professor Robert Love (Oral Diagnostic and Surgical Sciences) became Chair of the New Zealand

Dental Council

Professor Ian McAndrew (Management) was appointed to the International Education Appeals

Authority

Professor Don Roberton (Pro-Vice-Chancellor, Health Sciences) was appointed to the new Health

Workforce of New Zealand Board

Professor Barry Taylor (Women’s and Children’s Health) was awarded the Montgomery Spencer

Oration for 2009 by the Royal Australasian College of Physicians recognising lifetime achievement in

contributing to child health.

Throughout 2009 the University hosted a large number of conferences and other events. Economists from

Europe, Asia, North America and Australasia gathered at the School of Business in March for the fourth annual

Otago Workshop in International Trade. Tariff liberalisation, bilateral trade negotiations, export strategies

and China’s growth and development were among the topics discussed. The workshop was hosted by the

Department of Economics and co-sponsored by the Ministry of Foreign Affairs and Trade.

More than 70 experts in infectious disease research from New Zealand and overseas attended a two-day

symposium in April, hosted by the University’s Webster Centre for Infectious Diseases. And, in June, several

of the world’s leading voices in the global food crisis debate gathered in Dunedin for the 44th Foreign Policy

School. Entitled Dimensions of the Global Food Crisis, the school focused on both the broader implications of the

crisis, as well as New Zealand’s regional responsibility in terms of food security and environmental sustainability.

It was again well attended, with more than 150 participants.

Hands-On Science celebrated its 20th anniversary with a near record attendance of 240 secondary school

students from around the country. Its aim is to introduce young people to science and encourage them to take

up a science career. An Adopt a Scientist Programme, linking University scientists with primary and intermediate

schools in Dunedin and Otago, was launched. Two further science wänanga were held in Tolaga Bay for Year-11

and Year-12 students and the first science wänanga was held in Invercargill for Year-10 students.

An annual Health Research Open Day, organised jointly by the University of Otago, Christchurch and the

Canterbury Medical Research Foundation, again attracted a large crowd. Also from the University of Otago,

Christchurch, the Director of the National Addiction Centre, Professor Doug Sellman, began a 37-lecture

national tour entitled Ten Things the Alcohol Industry Won’t Tell You About Alcohol. His aim is to help promote a

solution to the country’s binge-drinking culture.

The School of Business continued its Get Smart business advice service, operated in conjunction with the

Otago Chamber of Commerce, and the Community Accounting Initiative in which senior accounting students

provided accounting advice and assistance to small not-for-profit community organisations. Three seminars

were presented in the BNZ Business Seminar series. The Department of Information Science held its third

Otago Innovation Technology Challenge for Dunedin Year-13 school students, with a similar event also hosted in

Wellington for the first time.

A total of 208 open lectures were held in 2009. Twelve of these comprised the Winter Lecture Series that was

offered over seven weeks from late July to September in Auckland and Wellington, canvassing a wide range of

subjects. The 2009 School of Business Distinguished Speaker was entrepreneur Mr Andrew Bagnall. Professor

39

Tom Brooking (History) gave the Michael King Memorial Lecture and Dr Fenella France, textile scientist, gave the

Patricia Coleman Lecture.

A further 109 short courses, workshops, colloquia and seminars were offered, including 23 courses in the

13th Public Health Summer School held at the University of Otago, Wellington. Under a long-standing formal

agreement with the University of the Third Age, the University jointly offered 12 short courses. (The agreement

was renewed in March for a further two years.)

Four bridging and continuing education courses were offered during the Summer School period – Bridging

Chemistry, JumpStart Physics, Hands-On Science (see page 38) and the Dunedin Rare Book School.

the arts

The University’s contribution to the cultural life of New Zealand is underpinned by its arts fellowships. In 2009

they were held by Michael Harlow (Robert Burns Fellow, literature), Eddie Clemens (Frances Hodgkins Fellow,

fine arts), Chris Watson (Mozart Fellow, music) and Sean Curham (Caroline Plummer Fellow, dance). Joanna

Orwin was the University of Otago College of Education Writer in Residence.

Otago University Press published 16 books in 2009, as well as reprints of two classic Otago titles: James Herries

Beattie’s Traditional Lifeways of the Southern Mäori (edited by Atholl Anderson) and Neville Peat’s The Catlins and

the Southern Scenic Route. The inaugural Seresin Landfall Residency was awarded to C K Stead, the winner of the

Landfall Essay Competition 2009 was Wellington writer Ashleigh Young and the Kathleen Grattan Award 2009

went to Auckland poet Leigh Davis.

Continuing a long-established practice, the University’s Departments of Music and Theatre Studies staged a

total of 112 performances during the year (2008: 138). The regular series of lunchtime concerts and dramatic

performances makes a strong contribution to the cultural life of Dunedin, as well as providing valuable

experience for students.

The Division of Humanities continued to sponsor the University of Otago Sheilah Winn Festival of Shakespeare

in Schools and, in November, received an award from the National Business Review for sponsorhip of the arts.

liBrary services

The library’s position as a contributor to the national good was strengthened by improved website access to

online information resources and online exhibitions, including a selection of unique resources from the Hocken

Collections and Special Collections. The implementation of a research archive “OUR Archive” provided open

access to a growing collection of University research outputs.

hocken collections, uare taoka o h-akena

The Hocken Collections were again well used with 10,026 researchers using more than 30,000 items. Some

2,000 written and telephone enquiries were answered and more than 500 orders involving 2,636 image

reproductions were completed. There were significantly increased attendances at events, with 1,216 participants

in 96 exhibition floor talks, tours and classes. Material was lent to other institutions with 100 items lent from

archives and 45 pictorial works lent to 13 exhibitions. A further 265 archive collections and 1,078 pictorial items

were added to the collections.

Seven exhibitions were held in the Hocken Gallery. The 2009 Hocken lecture was given by Dr Peter Simpson,

titled Patron and Painter : Charles Brasch and Colin McCahon, marking the 100th anniversary of Charles Brasch’s

birth and the significance of his contribution to the Hocken Collections.


40

central library, special collections

More than 3,000 people viewed the four Special Collections exhibitions in 2009 and 493 books were issued

for use in the reading room. Among these exhibitions, one on banned books, titled Heresy, Sedition, Obscenity:

The Book Challenged which opened at the de Beer Gallery on 30 October, attracted considerable interest and

featured widely in the local and national media.

The 2009 Printer in Residence was Tara McLeod, who hand-set and printed poems by Riemke Ensing, which

were illustrated by Inge Doesburg, for the 100th anniversary celebration of Charles Brasch’s birthday.

new Zealand marine studies centre

The NZ Marine Studies Centre (NZMSC), incorporating the Westpac Aquarium, runs several community

programmes, including school visits for early childhood to secondary school students, a gifted and talented

programme for southern secondary school pupils, off-site programmes in the Nelson/Marlborough/Tasman

district and the Dunedin’s Royal Albatross Centre, travelling exhibitions and workshops for special interest

groups and teacher professional development.

In 2009 27,907 people visited the NZMSC, comprising 18, 201 casual visitors to the aquarium (an 18%

increase over 2008), 5,797 school students attending curriculum-linked educational programmes and 3,909

people participating in group marine experiences, tours and workshops. A further 3,107 people participated in

programmes run in other locations in Dunedin and Nelson/Marlborough. Activities were also run in association

with Seaweek, Conservation Week, the Dunedin Chocolate Festival and the Rhododendron Festival.

The NZMSC renewed its Ministry of Education Learning Experience Outside the Classroom contract (2009-

2012) to deliver programmes to primary and secondary schools from Otago, Southland and Canterbury. The

aquarium received a perfect score in its Qualmark assessment.

Seven exhibitions were held in the Hocken Gallery.

41

Cost of outputs

community service



$000 $000 $000 $000 $000 $000 $000 $000 $000




$000 $000 $000 $000 $000 $000 $000 $000 $000

total cost of output 4,681 4,752 4,129 0 0 0 21,014 20,807 17,639

national poisons centre

The National Poisons Centre is a service unit within the Department of Preventive and Social Medicine,

operating 24 hours a day, 365 days a year. It received 35,981 enquiries over the 12-month period from both

health professionals and the general public about acute poisoning or the toxic effects of chemicals. More than

95% of these enquiries were by telephone and represented a 4.21% increase over the previous year.

The centre maintains an internet poisoning-management database (TOXINZ) containing more than 190,000

toxic compounds. In 2009, the database received more than 46,000 enquiries from New Zealand hospitals.

TOXINZ is also used internationally by other poisons centres. In addition, the centre provides poison-prevention

information to the general public by way of advice, resources, public displays/seminars and its website.

alumni

Otago values the relationship with its alumni community and, in 2009, maintained contact via the University of

Otago Magazine, published in February, June and October.

The Office of Development and Alumni Relations organised 10 alumni social events at venues in New Zealand

and around the world – in Nelson, Melbourne, Hamilton, Tauranga, San Francisco, London, Sydney, Wellington

(Pacificana), Gisborne and Napier. The office also helped with events hosted by several residential colleges,

medical and dental group reunions, and the 125th jubilee of the University Rugby Football Club. The administration

of the Alumni Annual Appeal and the awarding of 12 Alumni Scholarships were also notable activities.

The University’s connection with its alumni community was further enhanced with the launch of “Your Otago

Link” in December. This secure website enables alumni to communicate directly with the University and each

other. Key features of “Your Otago Link” include its ability to provide a permanent Otago email address for

alumni, and access to University, college and departmental news.


42

43

contriBution to new Zealand and the tertiary sector

objective 1: to enhance the university’s standing as a premier research institution.

performance indicators 2007 actual 2008 target 2009 target 2009 actual

i. Increasing research funding from outside 3-year rolling 3-year rolling ≥105.0% of 3-year rolling sources by at least 5% per annum as average of average of 2008 average of measured by a 3-year rolling average. $68.9 million $75.5 million ≥ $81.9 million (108.5%)

ii. Increasing the number of University-funded 194 (122 PhDs 226 (162 PhDs ≥234 204 (152 PhDs postgraduate scholarships and awards offered and 72 masters’) and 64 masters’) and 52 masters’) and taken up by at least 20 per annum.

iii. Increasing the quantity of publications of 3-year rolling 3-year rolling ≥previous year 3-year rolling scholarly books, monographs and articles in average of average of average of refereed journals as measured by a 3-year 4,076 4,104 4,222 rolling average.

iv. Increasing the proportion of Student 7.5% 7.8% 8.4% 8.1% Achievement Component (SAC)1 research postgraduate EFTS within total SAC EFTS.

v. Increasing the number of research degree 381 388 ≥ ≥previous year 418 completions.

The University’s determination to further strengthen its research culture was demonstrated by an improved performance over 2008 in respect of four out of five research indicators. Barriers to achieving the targeted increase in postgraduate research growth included strong external competition for top quality research degree students, and internal facility and supervision constraints in a number of departments that already have a high proportion of such students. It is also important to note that although the number of scholarships and awards taken up by postgraduates fell in 2009, a record number of scholarships were offered.

Publications data reported above includes conference contributions, intellectual property and creative works such as compositions, exhibitions and performances.

objective 2: to recognise, support and achieve excellence in teaching.

performance indicators 2007 actual 2008 actual 2009 target 2009 actual

i. At least 90% of departments and programmes 100% 100% ≥ ≥90.0% 100% sampled in the annual Student Opinion and Graduate Opinion Survey receive a positive mean rating on the Good Teaching, Appropriate Assessment and Overall Satisfaction scales.

ii. At least maintaining the total funding provided $250,000 $250,000 ≥ ≥previous year $250,000 through Innovation in Teaching Grants, eLearning Enhancement Grants, Research into University Teaching Grants and Internationalisation of the Curriculum Grants.

iii. At least 90% of respondents to the Graduate 85.8% 92.3% ≥ ≥90.0% 88.5% Opinion Survey reporting overall satisfaction with the quality of doctoral and masters’ thesis supervision.

Student and graduate satisfaction with teaching remained very high. The decline in overall satisfaction with the quality of doctoral and masters’ thesis supervision may be attributed, at least in part, to the natural variations in annual survey responses.

Statement of Service performance for the year ended 31 december 2009

1 Student Achievement Component EFTS are those eligible for government funding via Vote Education.


44

objective 3: to develop in students the skills, attributes and knowledge to enhance their capacity to make a positive contribution to society and their employment prospects.


i. At least 90% of respondents in the Graduate Opinion Survey reporting some, moderate or extensive development of the following skills and attributes through their studies:

oral communication skills; 87.5% 89.9% ≥ ≥90.0% 88.5%

written communication skills; 96.5% 96.2% ≥ ≥90.0% 95.3%

the skills to plan their own work; 95.1% 95.1% ≥ ≥90.0% 95.0%

analytical skills; 98.0% 96.3% ≥ ≥90.0% 96.9%

self-confidence; 88.9% 90.6% ≥ ≥90.0% 89.8%

team work skills; 79.0% 82.3% ≥ ≥90.0% 82.4%

flexibility and adaptability. 95.1% 93.0% ≥ ≥90.0% 91.6%

ii. Maintaining professional accreditation of all maintained maintained maintained maintained relevant programmes.

The University recorded a strong result for the development of key graduate attributes in 2009, meeting its target in four of seven areas and falling just 0.2% short in a fifth area. The major re-accreditations for 2009 were for the School of Business, which maintained its accreditation with the Association to Advance Collegiate Schools of Business (AACSB) and was accredited for a further five years with the European Quality Improvement System (EQUIS).

objective 4: to support internationalisation and student interaction in an international environment.


i. Enrolling a diversified international student 9.2% of total 7.9% of total ≥12.0% of total 7.5% of total population constituting no more than 12% of EFTS and 18.7% EFTS and 15.4% EFTS and 25.0% EFTS1 and 16.5% total University EFTS, with no more than 25% from one from one from one from one of the international cohort from one country. country country country country ≤

ii. Increasing the number of domestic students 179 169 200 174 participating in international exchanges:

iii. Achieving or exceeding the following 1,674 1,440 1,416 1,4261 international EFTS enrolment target:

The University met its targets for a diversified international population, and enrolled international students from 98 different countries (up from 93 in 2008). 1 It is important to note that the EFTS figures in indicators i. and iii. above relate to full-fee-paying international enrolments only. If those international students who are granted domestic status for fees and Government funding are included, the percentages and totals are as follows: international students as a percentage of total University EFTS: 2007: 2,050 EFTS (11.3%); 2008: 1,889 EFTS (10.4%); 2009: 1,938 EFTS (10.3%).

45

objective 5: to share the university’s expertise and resources with the community and foster the creation and presentation of works of art, literature and music.


i. At least 80% of University academic staff 89.2% 94.9% ≥ ≥80.0% 92.0% involved in community service activities.

ii. Holding at least 250 open lectures, public 363 307 ≥ ≥250 317 seminars, and adult and community education courses per annum.

iii. Providing at least 100 performing arts 121 138 ≥ ≥100 112 activities open to the public per annum.

iv. Awarding the following annual fellowships: all awarded all awarded all awarded all awarded the Robert Burns Fellowship (for literature); the Frances Hodgkins Fellowship (for visual arts); the Mozart Fellowship (for musical composition); the Caroline Plummer Fellowship in Dance.

The University met all of its targets in this area by a comfortable margin. The measure for staff involvement in community service is derived from an annual survey of a sample of staff, and is therefore subject to some natural year-to-year variance.

objective 6: to preserve and enhance the unique qualities of the otago campus lifestyle and otago learning experience.


i. At least 90% of respondents to the annual Student Opinion Survey providing a positive assessment of the following:

the general campus environment; 98.5% 98.6% ≥ 90.0% 99.1%

campus facilities; 94.3% 94.1% ≥ 90.0% 95.8%

residential colleges; 95.0% 96.1% ≥ 90.0% 96.6%

information technology and teaching facilities; 92.7% 96.8% ≥ 90.0% 96.8%

university libraries; 94.8% 94.5% ≥ 90.0% 97.0%

administrative and support services. 94.0% 95.4% ≥ 90.0% 96.6%

Student satisfaction with the campus lifestyle and key campus services reached extremely high levels, with the 90% satisfaction threshold exceeded in all six areas. The development of a new long-term campus master plan for the University, which was a major project during 2009, will be launched in 2010.


46

approach to fulfilling treaty of waitangi oBligations

objective 7: to develop and maintain policies and practices which acknowledge partnership with iwi.


i. Maintaining a Memorandum of New MoU with Ngäi Tahu MoU Ngäi Tahu MoU Ngäi Tahu MoU Understanding (MoU) with Ngäi Tahu Ngäi Tahu signed. in place and being in place and remained in place. and developing appropriate agreements Agreement signed implemented. progress made Advances made in with other iwi. with Tipu Ora New agreement on further new joint initiatives and Trust (Te Arawa) with Ngäti Toa agreements agreed projects developed and established with signed in 2008. Ngäi Tahu and Continued dialogue other iwi with Te Atiawa regarding potential relationship

In addition to developing new agreements and maintaining its Ngäi Tahu Memorandum of Understanding, the University maintained its existing agreements with Ngäti Whatua, Ngäti Toa, Ngäti Porou Hauora and – through the Tipu Ora Trust – Te Arawa. Treaty and partnership issues are required to be examined under the terms of reference for all academic developments and reviews, while advice on kawa and tikanga can either be sought centrally via the University’s Office of Mäori Development, or directly by academic units that have strong iwi relationships in place.

objective 8: to strengthen links with ng-a iwi m-aori in research and to promote and support research in m-aori language, culture, education, science, health and history.


i. At least maintaining the number of research 444 532 ≥ previous year 509 projects being undertaken in association with Mäori.

ii. Increasing Mäori postgraduate EFTS 160 171 > previous year 182 enrolments.

iii. Increasing the number of Mäori 10 16 > previous year 21 completing research degrees.

Despite a slight drop in the number of research projects undertaken in association with Mäori, the University made strong progress in strengthening research links with ngä iwi Mäori. In particular, it was pleasing to note a 6.4% increase in Mäori postgraduate EFTS and a 31.3% increase in the number of Mäori completing research degrees.

47

objective 9: to increase m-aori student recruitment, retention and achievement.


i. Increasing Mäori EFTS as a proportion of total 8.4% 8.3% ≥ 8.6% 8.5% domestic student EFTS.

ii. Increasing the percentage of Mäori students 73.8% 68.0% > previous year 66.6% passing at least two thirds of their academic credits in their first year of study.

iii. Increasing the number of Mäori students 323 332 > previous year 353 completing qualifications.

Both the proportion and total number of Mäori students increased, more than recovering the small amount of ground lost in 2008. While it was disappointing to see a slight drop in the percentage of Mäori students passing at least two thirds of their academic credits in their first year of study, it was pleasing to see an increase in Mäori students completing qualifications.


48

approach to meeting the needs of pacific peoples

objective 10: to increase pacific student recruitment, retention and achievement.


i. Increasing the number of Pacific 584 589 620 644 students enrolled.

ii. Increasing the percentage of first 54.6% 50.0% > previous year 50.4% year Pacific students passing at least two thirds of their academic credits in their first year of study.

iii. Increasing the number of Pacific 109 121 > previous year 134 students completing qualifications.

The University met the performance targets for all indicators related to Pacific students, with the increase in Pacific student numbers continuing an unbroken run of growth stretching back to 1998. This growth is also flowing through to the number of Pacific students completing qualifications. It is important to note that the University’s Pacific student population includes significant numbers of international as well as domestic students.

objective 11: to promote and support research, teaching and learning in areas relevant to the needs and interests of pacific peoples.


i. Holding regular meetings of the Pacific 3 meetings 2 meetings regular meetings 3 meetings Peoples Reference group.

ii. Increasing Pacific postgraduate EFTS 64 77 > previous year 75 enrolments.

iii. Increasing the number of Pacific students 5 11 > previous year 12 completing research degrees.

The Pacific Peoples Reference Group comprises a mix of University representatives and senior members of the Pacific community from Dunedin, Christchurch, Wellington and Auckland, and advises the Vice-Chancellor on matters relating to Pacific developments at Otago.

49

approach to meeting the needs of learners

objective 12: to achieve target outputs for student enrolments and performance.


i. Achieving or exceeding the following total 18,287 18,330 18,603 19,017 EFTS enrolment target:

ii. Increasing the proportion of Student 15.7% 15.8% ≥ 17.1% 15.8% Achievement Component (SAC) postgraduate EFTS within total SAC EFTS.

iii. Maintaining an average pass rate for papers 88.1% (87.9%) 88.1% (88.0%) plus/minus 2.0% 87.7% (88.1%) within 2% of the average for the previous of rolling average three years.

iv. At least maintaining the percentage of first 83.1% (80.9%) 80.8% (81.6%) plus/minus 2.0% 80.3% (81.7%) year students passing at least two thirds of of rolling average their academic credits in their first year of study within 2% of the average for the previous three years.

v. Increasing the number of students successfully 4,743 4,613 > previous year 4,757 completing qualifications.

The University met four of its five performance targets in this area, and failed to meet the fifth – around postgraduate EFTS – only because of stronger than expected undergraduate growth driven by the global economic crisis and national recession. While the University did not achieve its targeted increase in the proportion of SAC postgraduate EFTS, it did achieve solid growth in this area, including a 10.2% increase in doctoral enrolments.

The total EFTS recorded above includes all University EFTS and domestic Foundation Studies EFTS. International Foundation Studies EFTS are excluded, to remain consistent with the target.

objective 13: to develop lifelong learning skills and foster intellectual independence in students.


i. At least 90% of respondents to the graduate 97.8% 96.6% ≥ 90.0% 97.3% Opinion Survey reporting some, moderate or extensive development of a willingness to learn;

independent judgement through their studies. 93.6% 95.2% ≥ 90.0% 95.5%

ii. The development of intellectual independence Addressed in all Addressed in all Addressed in all Addressed in all in students addressed in the development of all developments developments developments developments new programmes, and in the review of existing and reviews and reviews and reviews and reviews departments and programmes.

Targets were achieved for all performance indicators in this area.


50

objective 14: to maintain and strengthen commitment to equal educational opportunities.


i. At least maintaining student attendance in the 5,482 7,121 > previous year 9,057 Learning Assistance Support Programme.

ii. Maintaining subsidised support for the $125,100 $156,765 ≥ previous year $156,765 University childcare facilities. of support of support of support provided provided provided

Targets were fully achieved in this area, with the sharp increase in use of the learning assistance programme reflecting ongoing efforts by the University to expand and promote this programme. Support for childcare continued to be provided through the Otago University Childcare Association, with the University providing funds to cover the rental cost of premises for the association’s four pre-school care facilities along with an annual lump-sum grant.

objective 15: to increase the participation and achievement of students with disabilities at all levels, and to provide appropriate academic and social support.


i. Providing learning assistance and/or access to 484 533 ≥ 450 527 special equipment for at least 450 students with a disability affecting study in each of the next 3 years.

ii. At least 90% of students with a disability 93.2% 92.3% ≥ 90.0% 90.9% affecting study responding to the annual Student Opinion Survey providing a positive assessment of support provided by the University.

Targets were fully achieved in this area. It is interesting to note that while the number of students reporting a disability increased in 2009, the number requiring and receiving support dropped by 1.1%. The provision of special equipment, note-taking, assistance with examinations, tutoring, and transcription or typing remained the most common forms of support provided.

51

c0-0peration and collaBoration

objective 16: to foster links and encourage collaboration with appropriate institutions and organisations nationally and internationally.


i. To maintain appropriate formal 169 212 Existing agreements reviewed and 386 agreements for collaboration either renewed or discontinued with other organisations, including as appropriate. New agreements Crown Research Institutes and entered into as appropriate. arrangements for joint research and/or teaching with other tertiary education institutions.

ii. Hosting at least 500 academic 526 658 ≥ 500 752 visitors to the University per annum.

The performance targets for external linkages and collaboration were comfortably achieved. The formal agreements span a very wide range of types and areas, ranging from long-term agreements with other universities and research organisations through to more focused agreements for specific activities. The rapid increase in reported academic visitor numbers is due, in part, to improved information gathering in this area.

objective 17: to develop activities that commercialise university research.


i. Increasing the royalty and intellectual property $1.1 million $0.1 million ≥ previous three $0.4 million sales revenues of Otago Innovation Limited year average as measured by a 3-year rolling average.

The performance target with respect to developing activities that commercialise University research was achieved.

objective 18: to advise and work with local and national government.


i. At least 50% of academic staff providing 52.9% 73.0% ≥ 50.0% 73.6% services to public sector departments, statutory authorities, agencies, boards, committees, enquiries and to non-governmental organisations.

ii. At least 20% of academic staff serving on 18.6% 25.5% ≥ 20.0% 24.0% government advisory boards and committees.

The University met all of its targets in this area by a good margin. The measure for staff involvement in community service is derived from an annual survey of a sample of staff, and is therefore subject to some natural year-to-year variance.


52

governance and management

objective 19: to obtain sufficient funding for current university needs and future development.


i. An operating surplus such that the moving 1.6% of net 2.3% of net 2.0% of net 2.3% of net 5-year average is at least 2% of net assets assets assets assets assets (excluding extraordinary items).

ii. A liquid ratio of no worse than 1:1. 2.7:1 2.3:1 ≥ 1:1 1.7:1

iii. Net interest paid no greater than one third 0.5% 1.2% ≤ 33.3% 0.8% of the operating surplus.

The financial performance for 2009 was strong with all the key University targets being met or exceeded. It was particularly pleasing to achieve a 2.3% return on net assets over the last five years. The operating surplus is an important source of funding for the significant building programme planned for the next three to five years.

objective 20: to maintain systems for institutional quality improvement.


i. Reviewing and evaluating all departments and 10 departments 13 departments 14 departments 12 departments undergraduate teaching programmes once and 3 and 5 and no and 1 programme every 5 to 7 years by a panel of internal and programmes programmes programme reviewed external experts. reviewed reviewed reviews

ii. Conducting annual graduate and Student surveys surveys surveys surveys Opinion Surveys on a portion of current conducted conducted conducted conducted students and recent graduates.

iii. Completing a review of all new 18 new 11 new graduating 16 new qualifications within 3 years of the qualifications qualifications year reviews qualifications graduation of the first cohort reviewed reviewed completed reviewed of students.

The University operates a programme of reviews, with review panels reporting to the Deputy Vice-Chancellor (Academic and International), who then consults with the Vice-Chancellor. Follow-up on the implementation is undertaken at regular intervals. The Graduate and Student Opinion surveys are conducted annually, with feedback sought on a wide range of topics related to the student experience and graduate outcomes. High response rates are achieved according to the international norms for such surveys, and results are presented to the appropriate academic and service units to support benchmarking and improvement. The completion of special reviews of new qualifications is a requirement of the Committee on University Academic Programmes (CUAP), which is the committee of the New Zealand Vice-Chancellors’ Committee (NZVCC) with statutory responsibility for approving new qualifications for all New Zealand universities.

53

objective 21: to provide an environment that supports the academic, professional, creative and career development of staff.


i. At least 1.5% of the University salary budget 2.6% 2.3% ≥ 1.5% 2.1% provided for staff training and development.

ii. At least maintaining the number of academic 109 126 ≥ previous year 115 staff undertaking research and study leave.

iii. At least maintaining the number of academic 912 970 ≥ previous year 1,184 staff attending conferences of national and international standing.

The 1.5% target for staff training and development represents a minimum requirement for university budgets, although the University actively encourages a higher level of investment in staff development as resources permit, and the 2009 result reflects this approach. The number of academic staff undertaking research and study leave dropped by 8.7% in 2009. However, there was an increase in the number of staff attending conferences of national and international standing.

objective 22: to maintain and strengthen commitment to equal employment opportunities.


i. Increasing the number of female 196 FTE staff 211 FTE staff 216 221 FTE staff academics holding professorial, associate professorial and senior lecturer appointments.

ii. Continuing the University mentoring continued continued continued continued programmes for female general and Academic Staff.

iii. Continuing the University Women’s continued continued continued continued Professional Development Programme and the Women in Leadership Programme.

The University exceeded its targeted increase for female staff in senior academic roles, with 4.7% growth over 2008. The actual number of FTE female staff in each position in 2009 was as follows: 21 professors (2008: 19); 31 associate professors (2008: 24); 169 senior lecturers (2008: 168). Over the past five years, the University has increased its number of female professors by 18.3%, its number of female associate professors by 103.7%, and its number of female senior lecturers by 49.6%. The 2009 figures exclude academic promotions announced in late-2009 (which take effect from February 2010).


54

objective 23: to provide a culture in which staff have the opportunity to participate in university policy development.


i. Staff representation on the University staff represented staff represented staff represented staff represented Council, Senate and the committees of those bodies.

ii. Seeking staff feedback for University staff feedback staff feedback staff feedback staff feedback reviews and major policy developments. sought sought sought sought

Staff are represented on the University Council by four members (three elected by the academic staff and one by the general staff). Senate membership includes 41 heads of departments and a further 34 academic staff nominated by the Pro-Vice-Chancellors of the University’s four academic divisions. It is standard practice to include staff membership on the key committees of Council and Senate and to seek staff input into all reviews and policy developments.

objective 24: to provide a culture in which students participate in policy development and quality improvement.


i. Maintaining student membership of the students students students students University Council, Senate and College appointed appointed appointed appointed Councils, and on appropriate committees and working parties of those bodies.

ii. Seeking student feedback on teaching and survey and survey and survey and survey and service quality via the annual Student evaluations evaluations evaluations evaluations Opinion Survey and student evaluations undertaken undertaken undertaken undertaken of teaching.

iii. Student or recent-graduate membership membership membership membership membership on all programme and academic on all panels on all panels on all panels on all panels departmental review panels.

iv. Continuing a University-wide class system system system system representative system. maintained maintained maintained maintained

Students are represented on the University Council by two members and on the Senate by four members, with those members appointed by the Otago University Students’ Association (OUSA). Student membership on Residential College Councils is by appointment from the student body of each college, usually via that college’s student association, while the class-representative system is operated by OUSA with University support.

55

objective 25: to maintain tangata whenua/iwi participation in university governance.


i. Continuing Te Runanga o Ngäi Tahu membership membership membership membership membership on the University Council. maintained maintained maintained maintained

ii. Holding regular meetings of the Treaty of 3 meetings 3 meetings regular meetings 3 meetings Waitangi Committee.

The University consults with Te Runanga o Ngäi Tahu to ensure that the Ministerial appointment process maintains iwi representation on the Council. The Treaty of Waitangi Committee is chaired by the Chancellor, and comprises equal representation from the University and Ngäi Tahu.

note

The University undertakes regular reviews of departments, schools, faculties and programmes. Review panels comprise a mixture of

internal and external representatives, and normally report to the Deputy Vice-Chancellor (Academic and International), who then

consults with the Vice-Chancellor. The University’s review guidelines recommend that the quality and adequacy of the structure,

management and physical resources of the departments, schools, faculties and programmes are investigated. In addition to this, review

panels undertake a critical and constructive evaluation of research, research supervision, community service, and teaching and learning.

Implicit in these guidelines is the requirement that all courses and programmes reviewed continue to meet the standards required

by the University Council and Committee on University Academic Programmes (CUAP), a committee of the New Zealand Vice-

Chancellors’ Committee (NZVCC).

research

The University has mechanisms for monitoring and improving the quality of research, scholarship and postgraduate education.

The development of research is actively supported by the University through facilitation of standard provisions for research time,

study leave and support staff. Additional initiatives include: the identification of recognised research themes within the University and

the provision of special support in these areas; early career staff (those in their first three years of appointment) receiving special

consideration in the awarding of internal research funding.

The quality of research is also reflected in the work accepted for publication in scholarly books and learned journals. A list of

publications is collated and checked to ensure that all publications satisfy guidelines specified by the Senate. This vetting process,

which takes place after the annual external audit cycle, typically results in the rejection of a small percentage of publications.

The University’s success in attracting external research funding is also a key indicator of the standard of research.

Mechanisms for monitoring and improving the quality of postgraduate education include regular evaluations by students on the

quality of teaching and supervision. This information assists in improving existing courses, developing new courses, and monitoring

and improving the standard of thesis supervision.

teaching and learning

The University has mechanisms for monitoring and improving the quality of teaching in all courses. These include student evaluations

of teaching, which are used to review teaching effectiveness, and may also be used in considering the confirmation or promotion of

academic staff.

Courses and programmes are surveyed on a four-year cycle, with student and graduate feedback being sought on such topics as

assessment practices, teaching standards and the workplace relevance of the skills being imparted. In evaluations of this nature,


56

small fluctuations are not necessarily statistically significant. The results of these surveys provide benchmark data for performance

measurement and improvement.

New papers and minor amendments to existing regulations may only be introduced following approval by the University Senate

and Council. New programmes and major amendments to existing programmes require additional approval by CUAP through the

NZVCC. The NZVCC holds statutory authority to approve new programmes and also requires a follow-up review of any new

qualification once the first cohort of students has graduated.

Where appropriate, reviews may be jointly initiated by the University and an external body responsible for professional

accreditation. Independent accreditation reviews may also be undertaken.

community service

The University is continuing to develop mechanisms for monitoring and improving the quality of community service.

The University conducts an annual survey of staff involvement in community service activities. The 2009 survey found that 92.0% of

academic staff who responded were involved in community service activities and that these staff spent an average of 7.0% of their

work time on community service activities. The activities in which they were involved ranged from service on government advisory

boards and committees to presentations made to school and community groups on areas of professional expertise. The information

gathered in this survey also assists the University in placing a financial value on its community service output.

57

Statement of resources 2009

land, Buildings and capital development

The purchase of land for University developments adjacent to Dunedin’s new stadium and other strategic

acquisitions around the eastern fringe of the main Dunedin campus were the major contributors to a 1.9

hectare increase in University-owned land. University-controlled land now totals 25,624 hectares, the vast

majority of which is endowment land let on long-term leases.

The University’s net assignable floor space increased by 5,835 m² (2.8%) in 2009 to reach 211,383 m². The

largest increases in floor space were for health sciences and sciences, and for administration and other purposes.

One of the most significant strategic projects undertaken by the University in 2009 was the development of a

new Campus Master Plan to provide a framework for development decisions over a 20-year time horizon. This

work was substantially complete by the end of 2009, with the plan due to be finalised and released in the first

half of 2010.

Further information about land purchases and capital developments undertaken during 2009 are outlined

elsewhere in this Annual Report.

liBrary resources

The library system continued to operate as an essential source of information and expertise for the University

and wider community, providing extensive collections, access services, instruction and infrastructure in support

of scholarship, creativity and learning. Collaboration between academic and library staff underpinned the further

development of both physical and online collections.

During 2009 the library’s on-site collections increased by 8,313 items and the on-site collections comprised a

total of 3,062,249 items with 6,813 print subscriptions.

The University community also enjoyed desktop access to an increasing component of the Library’s collections.

As well as growing to 111,919 electronic serials, online collections benefitted from a further expansion in the

number of e-books, which reached 348,633. Over 94% of serials are now received in electronic rather than

print form, compared to just 71.5% seven years ago.

University staff and students continued to make good use of the on-site collections with 533,119 items loaned

during the year. Databases, e-journals, e-books and other electronic materials were heavily used both on-campus

and off-campus, with access available 24 hours a day, seven days a week.

The library maintained a programme of discipline-based and resource-specific information-skills sessions for

students. These are designed to develop effective search techniques and competencies in evaluating quality

sources of information.

Changes to the physical infrastructure of the various libraries which comprise the University’s overall library

system included the addition of more group study rooms and a major refurbishment of the Sir Robert Stout

Law Library. A major redevelopment of the Bill Robertson Library, which serves the needs of the University’s

College of Education and the Otago Polytechnic, also commenced.

The number of seating places across the library system increased by 0.5% to 3,698, a ratio of almost 1 seat per

5 EFTS.


58

information technology

The strong growth of electronic communications seen in recent years continued in 2009. The volume of

off-campus computer and telecommunications network traffic rose from 154,474,845 megabytes in 2008 to

291,222,821 megabytes in 2009, an increase of 88.5%.

Expansion of the wireless network continued and the popularity of the service is demonstrated by the fact that

15,000 students used it in 2009. The largest number of students using the network in a single day was 5,800.

Otago won the 2009 Tertiary ICT Innovation Award for the interlinking of lecture theatres across multiple

campus sites. The University also had a second entry in the final four – for the Otago Maps application, which

provides access to a campus map via a mobile phone.

The “Your Otago Link” NetCommunity website for Alumni was launched in October 2009. The service provides

an email address for life for the 90,000 existing alumni. The first new graduates to receive their Otago email

addresses were those graduating at the five ceremonies held in December.

Other developments in 2009 included the implementation of antiplagiarism software and the commencement

of a major project to assess future options for our student management system.

human resources

Although the comparative figures for FTE staff show an apparent 1.5% decline between 2008 and 2009, this is

due in large measure to system enhancements that have enabled the actual hours worked by part-time staff to

be reported more accurately in human resources statistical reports.

This has had a disproportionate impact on FTE figures in categories such as research support staff and general

services staff, where a relatively high proportion of staff are part-time and fixed-term employees, and makes the

usual year-on-year analysis of the University’s FTE staff profile problematic for 2009.

While not as useful, a valid comparative analysis of the headcount totals for staff is possible for 2009. This shows

an overall increase of 2.6% in the number of staff employed, with the greatest percentage increase (3.4%) being

for academic staff.

The previously tight recruitment environment eased during 2009, with the average number of applications per

vacancy rising as labour market conditions changed in response to global and national recession.

The annual salary round negotiations were concluded in a satisfactory manner. Unfortunately, the Government

has signalled its intention to discontinue elements of the tripartite funding system for salaries from 2011.

The most significant change to staff employment conditions in 2009 was the adoption of enhanced provisions

for parental leave. These and other initiatives related to staffing are outlined in the following Equal Opportunities

section.

59

summary staff profile 2009 2008 2007 2006 2005

full-time equivalent (fte) teaching & research staff

Females 476 485 458 391 381

Males 699 695 687 653 667

total 1,175 1,180 1,145 1,044 1,048

full-time equivalent (fte) research-only staff

Females 240 228 206 341 360

Males 172 179 164 216 211

total 412 407 370 557 571

full-time equivalent (fte) general staff

Females 1,373 1,414 1,331 1,043 1,086

Males 723 736 697 606 602

total 2,096 2,150 2,028 1,649 1,688

total staff (fte) 3,683 3,737 3,543 3,250 3,307

eQual opportunities

Partnerships with tangata whenua and equity in employment and educational opportunity are core values of the

University.

The University contributes to the achievements of tangata whenua through a Treaty-based partnership, with

Ngäi Tahu. The partnership is underpinned by a memorandum of understanding (MoU) and recognises Ngäi

Tahu rangatiratanga and mana within the takiwä of Ngäi Tahu. Additional agreements are also in place with Ngäti

Whatua, Ngäti Porou Hauora, Ngäti Toa and – through the Tipu Ora Trust – Te Arawa. Ongoing dialogue is also

being maintained with Te Atiawa over a potential future agreement.

A link between the aspirations expressed in memoranda and agreements with Ngäi Tahu and other iwi, and the

overall strategic goals and objectives of the University, is provided by the Mäori Strategic Framework. This was

progressed in 2009 through the implementation of an action plan and a mid-point review of the action plan was

initiated late in the year.

Additional capacity was added to the Office of Mäori Development, which has central leadership for Mäori

development at the University and the implementation of the Mäori Strategic Framework.

The University also recognises a special commitment to Pacific Peoples, which extends both to those who are

resident in New Zealand and those in the wider Pacific. The Pacific Peoples Reference Group, a joint University-

community group which was formed in 2006 to advise on developments in this area, continued to meet and

provide guidance to the University in 2009. The first steps towards developing a wider Pacific Peoples Strategic

Framework were undertaken in 2009 and the Division of Heath Sciences strengthened its capability to advance

in this area through establishment of a new Associate Dean (Pacific) position.


60

iwi t

o w

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2

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357

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286

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287

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113

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124

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53

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61

equal educational opportunities

The University is committed to eliminating unnecessary barriers to the admission and progress of students. A

key component of its strategy in this area is the provision of support and recruitment initiatives for students

from groups which may be under-represented within the institution and who may be disadvantaged in terms of

their ability to attend the institution.

Mäori students, Pacific Peoples’ students and students with disabilities are three such groups that the University

gives particular focus to.

m-aori

The number of Mäori students enrolled at Otago increased, from 1,524 to 1,619 in 2009, and represents the

highest Mäori student roll in the history of the University. Mäori students now comprise 8.5% of the University’s

domestic student population.

The University’s Auckland-based Mäori liaison officer continued to provide a full-time service visiting schools

and marae. The University’s package of targeted scholarships and awards were extended in 2009 with new

scholarships offered in conjunction with the University’s iwi partners. Te Hu˚a Mätaura˚a (the Mäori Centre)

continued to provide study, cultural and social services, and support for Mäori at Otago.

In 2009, 66.6% of Mäori at the University passed at least two thirds of the academic credits for which they

had enrolled. A record number of Mäori students – 353 – successfully completed qualifications. The University

continued to give special recognition to the academic achievement of its Mäori students by way of regular pre-

graduation ceremonies, and by holding a full marae-based graduation for those completing the bilingual teacher

education programme delivered at the University’s Southland campus.

Two of the most significant initiatives introduced in 2009 were done so with the support of both education

and health-sector agencies, to address the under-representation of Mäori in tertiary-level sciences and health

sciences study through targeted interventions prior to the commencement of University study.

The first of these initiatives is an expansion of the community wänanga programme that was piloted in

partnership with Ngati Porou and schools in the Tolaga Bay area in 2008. This programme, which engages young

Mäori in research-based sciences study from their early secondary school years, continued in Tolaga Bay in 2009.

A further strand was commenced in conjunction with Ngäi Tahu rünanga in Murihiku (Southland), and plans

were developed to start further strands in new areas in the future.

The second major development was Tu Kahika, a new one-year foundation programme to prepare Mäori for the

highly competitive Health Sciences First Year programme. Tu Kahika was launched in September 2009, with the

first student cohort recruited in the final quarter of the year to begin their studies in February 2010.

pacific peoples

2009 was the 11th successive year of growth in Pacific student numbers at Otago, with the 644 Pacific students

enrolled representing an increase of 9.3% over 2008. A record number of Pacific students – 134 – also

successfully completed qualifications.

The University’s Pacific Islands Centre increased its role as a hub for targeted support and services for Pacific

students, with almost all Pacific students being registered with the centre. It also remained active in outreach

activities in Pacific communities. These activities included a special study-support programme for Pacific students

in Dunedin secondary schools.


62

A full-time Pacific Community Liaison Officer continued to increase the greater community focus of the

University’s Pacific student recruitment, and a package of targeted scholarships also played an ongoing role

in supporting Pacific student recruitment. Acting on the advice of its Pacific Peoples’ Reference Group, the

University also introduced eight new achievement awards, recognising the top Pacific first-year student and top

Pacific final-year student in each academic division.

services provided by the pacific islands centre 2009 2008 2007 2006 2005

Registered with the centre 645 430 360 360 507

Extra tutorials 65 47 42 34 27

Career Advisory Services seminar 12 5 4 4 3

Students receiving course advice 420 370 250 230 245

Pacific postgraduate seminars 12 28 24 16 11

Student gatherings 24 18 14 14 10

Community meetings/consultation 25 22 17 12 4

Community functions attended 92 102 87 24 47

Students receiving counselling 85 85 80 125 13

disabilities support

The University takes a proactive approach to the recruitment and support of students with disabilities, with its

Disabilities Information and Support Service taking a lead role in this area, working in conjunction with both

academic and administrative departments.

In 2009, the University enrolled 881 students with a disability affecting study, a slight increase on 2008. Provision

of support in the form of learning assistance and/or special equipment requiring a specific financial commitment

was provided to 527 students with disabilities in 2009 (2008: 533). 701 students received learning support in

the form of note-taking, assistance with examinations, tutoring, transcription or typing (2008: 624).

learning assistance support for students

with disabilities 2009 2008 2007 2006 2005

Note-taking 296 210 223 265 173

Tutoring 131 127 112 94 80

Transcription/typing 3 5 4 3 0

Reader 0 4 0 0 1

Assistant 0 7 0 11 9

Examination arrangements 271 282 276 274 256

Scanning 0 0 0 1 3

Other 62 116 94 0 0

equal employment opportunities

In 2009 the number of women in senior academic positions (senior lecturer and above) increased by 5.1% to

224 FTE staff. Women now comprise 32.3% of staff at these levels, compared to 31.5% in 2008, and 24.7% as

recently as 2005.

63

Overall, women comprised 45.1% of all academic and research staff in 2009, compared to 44.9% in 2008. While

the majority of general staff are female, women continue to be under-represented at the senior levels within the

general and management staff.

The University continued to support the national universities’ Women in Leadership Programme by sending

six senior women to the programme, as well as providing speakers, and also commenced an internal Women

in Leadership programme to meet the needs of both general and academic staff women. The mentoring

programme for academic women continued and a peer-learning group was provided for general staff women.

Acting on the recommendations of a 2008 review, the University strengthened its parental-leave provisions,

extending the paid-leave period to 12 weeks, making partner leave paid rather than unpaid, and encouraging

more flexible approaches in this area. The recommendations of a Gender Equity Working Party were endorsed

for implementation in 2010.

The University continued to provide a Treaty of Waitangi Education Programme for staff in 2009, and also

introduced a new staff-development course on Pacific Peoples’ culture. Awhi Mai Awhi Atu, an organisation

formed to “affirm, support and strengthen the role of Mäori staff in the University”, continued to grow in

strength. As well as providing support for staff, it has also been effective in making submissions to the University

on behalf of Mäori staff.

The University also moved to address a gap in respect of staff equity information by including a new equity form

for staff to complete on their online staff profile. Over half of all staff had completed this form by the end of the

year.

other staff support initiatives

The Employee Assistance Programme continued in 2009, providing confidential, short-term counselling at no

cost to individuals. The programme of staff training courses on occupational health and safety issues continued

to operate, covering a wide range of topics.

Support for childcare continued to be provided through the Otago University Childcare Association, with the

University covering the rental cost of premises for the association’s four pre-school care facilities and delivering

further support via an annual lump-sum grant. The association, which celebrated 40 years of operation in 2009,

provided childcare for approximately 120 University families, but lengthy waiting lists indicated considerable

unmet demand for childcare services around the University. The University and the association are aiming to

secure additional facilities in close proximity to the main campus to address this.


64

Financial review 2009

The University Group, which includes the University of Otago, the University of Otago Foundation Trust, the

Dunedin City Accommodation Trust and University of Otago Holdings Limited, produced an operating surplus

of $31.098 million for the year. This surplus was $6.071 million (24.3%) better than the budget and $12.580

million (67.9%) higher than the 2008 result.

The Group surplus represented a return of 5.6% on revenue of $557.449 million and 2.4% on net assets of

$1.311 billion. This was comfortably above the minimum Tertiary Education Commission’s guidelines of 3.0% and

1.2% respectively.

The University’s operating surplus for the year was $21.236 million, a return of 3.9% on revenue and 2.0%

on net assets. The surplus was $1.667 million (8.5%) above the budget of $19.569 million, but $3.443 million

(14.0%) less than the $24.679 million surplus achieved in 2008. The five-year moving average surplus was

$21.567 million, which represents a 2.3% return on net assets. This exceeded the University’s own financial

performance target of 2.0%.

It is pleasing to report that all of the University’s teaching and research divisions produced favourable operating

results for the year, a good outcome given a record enrolment of 18,903 equivalent full-time students.

The Trusts collectively provided an operating surplus of $11.388 million for the year. This was $6.707 million

better than the budget and $16.160 million better than the deficit of $4.772 million recorded in very difficult

investment conditions in 2008. The improvement was largely caused by the partial recovery of equity and bond

prices during the year as well as an increase in donation income. The diversified investment portfolio of the

Trusts has produced an average return of 7.6% per annum over the last 10 years, a good achievement given the

recent turmoil in world financial markets.

The companies owned by University of Otago Holdings Limited produced a deficit of $1.223 million for the

year. This was $2.449 million worse than budget due to a deficit result from Otago Innovation Limited, the

company tasked with commercialising the University’s intellectual property. The world-wide recessionary

conditions of the last year produced very difficult trading conditions for this company and the consequential

shortage of venture capital caused the postponement of a number of planned revaluations of investments.

Total cash flow for the Group was an outflow of $2.281 million, which was significantly better than the budgeted

outflow of $8.899 million. The improved result was due to strong net cash inflows from operating partially

offset by greater than budgeted cash outflows from investing activities. This is a satisfying outcome given that the

University’s capital expenditure is currently at record levels, due to its five-year plan to upgrade space and deal

with critical space shortages.

The Group’s equity is now $1.311 billion, which is 90.0% of the total assets of $1.457 billion. This shows the

current low level of debt and demonstrates that the Group is in a strong financial position.

conclusion

The operating result for the year was better than expected with both the University and the Group exceeding

the guidelines provided by the Tertiary Education Commission.

The Group’s operating cash flow for the year was strong, although total cash flow was – as expected – negative

due to the University’s large capital expenditure programme. Nevertheless, the University’s financial position at

year end was solid with a satisfactory level of cash on hand and no debt. While this strong liquidity and capacity

to borrow is a good platform for the future, it will be essential to maintain targeted levels of operating surpluses

if the University is to provide the necessary infrastructure to achieve its desired outcomes. This will not be easy

in a post-recessionary environment that will be characterised by constrained Government funding.

John patrick

CHIEF OPERATING OFFICER

65

Statement of responsibility

2009 financial statements

The Council and management of the University of Otago accept responsibility for the preparation of the annual

financial statements and the Statement of Service Performance and the judgements used in them;

The Council and management of the University of Otago accept responsibility for establishing and maintaining a

system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial

reporting; and

In the opinion of the Council and management of the University of Otago, the annual financial statements and

the Statement of Service Performance for the financial year ending 31 December 2009 fairly reflect the financial

position and operations of the University of Otago.

Chancellor

vice-Chancellor

Chief operating officer

13 April 2010


66

the reporting entity

The University of Otago was founded in 1869 by an Ordinance of the Otago Provincial Council and is New

Zealand’s oldest University. In 1874 the University of Otago became an affiliated college of the University of

New Zealand, which was established by statute in 1870. However, in 1961 the University of New Zealand was

disestablished and the University of Otago acquired its present legal status and was granted the power to confer

degrees by the University of Otago Amendment Act 1961.

The financial statements presented here are for the reporting entity University of Otago (Parent), and the

Group consisting of the Associate and Subsidiary companies, controlled Trusts and the Dunedin City Tertiary

Accommodation Trust.

The Group Associate and Subsidiary companies are:

~ University of Otago Holdings Limited. Holding company. 100% owned by the University.

~ Otago Innovation Limited. Company to hold and develop the commercial interests of the University. 100%

owned by University of Otago Holdings Limited.

~ University of Otago Foundation Studies Limited. Operates the foundation year programme and an English

language school. 100% owned by University of Otago Holdings Limited.

~ New Zealand genomics Limited. 100% owned by University of Otago Holdings Limited – was set up in

collaboration with the University of Auckland, Massey University and AgResearch with the objective of

creating a national infrastructure for making advanced genomic technologies accessible and affordable for

New Zealand scientists, while also being accessible to commercial organisations.The company did not trade

during the year.

~ University Union Limited. Owner of the University Union building. 50% owned by University of Otago

Holdings Limited.

~ New Zealand Centre for Reproductive Medicine Limited. No longer trading – business assets sold. 50%


~ Unihealth Limited. Not trading. 50% owned by University of Otago Holdings Limited.

~ LCo New Zealand Limited. Owns and operates a software system for libraries serving four universities. 31%


~ Unipol Recreation Limited. Provides gymnasium and recreational services to University of Otago and Otago

Polytechnic students and staff. 40% owned by University of Otago Holdings Limited.

~ BPAC NZ Limited. This company works with the Division of Health Sciences to provide best practice

advocacy services to primary, secondary and tertiary health providers in the area of medication prescribing.

20% owned by University of Otago Holdings Limited.

~ Upstart Incubation Trustee Company Limited. 33% owned by University of Otago Holdings Limited. Non-

operational. Has no assets or liabilities.

~ Immune Solutions Limited. This company is working with the Department of Microbiology to develop

oral vaccines for the treatment of tuberculosis in animals, particularly possums. 100% owned by Otago

Innovation Limited.

~ Delta S Technology Limited. Developer of heat pump technology for industrial uses. 44.7% owned by Otago

Innovation Limited.

~ Photonic Innovations Limited. Developer of revolutionary laser technology. 50% owned by Otago Innovation

Limited.

Statement of accounting policies for the year ended 31 december 2009

67

~ Comone Limited. Not trading. 40% owned by Otago Innovation Limited.

The controlled Trusts include the University of Otago Foundation Trust and the Hocken Collections established

for the benefit of the University of Otago. The University is the beneficiary of all the Trusts and appoints the

Trustees.

The Dunedin City Tertiary Accommodation Trust owns and operates City College and is jointly controlled by

the University of Otago and the Otago Polytechnic

The primary objective of the University and Group is to provide goods and services for the community for

social benefit rather than make a financial return. Accordingly, the University has designated itself and the Group

as public benefit entities for the purposes of New Zealand equivalents to the International Financial Reporting

standards (NZ IFRS).

The financial statements of the University and Group are for the year ended 31 December 2009. The financial

statements were authorised for issue by Council on 13 April 2010.

The University is organised into divisions.

There are four teaching and research divisions (Commerce, Health Sciences, Humanities, Sciences) and

nine service divisions (Information Technology Services, Property Services, Financial Services, Marketing and

Communications, Academic Services, Student Services, Human Resources, Research and Enterprise, and

Accommodation Services).

Basis of preparation of the financial statements

The accompanying financial statements are presented in accordance with Section 220 of the Education Act

1989, the Crown Entities Act 2004 and New Zealand Generally Accepted Accounting Practice (NZ GAAP).

They comply with NZ IAS 1 13(1)(d), 105 (a) and other applicable Financial Reporting Standards, as appropriate

for public benefit entities.

The accounting policies set out below have been applied consistently to all periods presented in these financial

statements.

The accounting principles followed by the Group are those recognised as appropriate for the measurement

and reporting of financial performance and financial position on a historical cost basis, with the exception that

certain property, plant and equipment have been revalued.

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest

thousand dollars ($000). The functional currency of the University of Otago is New Zealand dollars.

The financial statements include:

~ Statement of Financial Performance

~ Statement of Comprehensive Income

~ Statement of Changes in Equity

~ Statement of Financial Position

~ Statement of Cash Flows and

~ Statement of Commitments and Contingencies.


68

The financial statements include the operations of the University of Otago, its subsidiary and associate

companies, and its controlled Trusts. The subsidiary companies and Trusts have been included in the consolidated

accounts by line aggregation of assets, liabilities, revenues, expenses and cashflows. Associate companies and the

Dunedin City Tertiary Accommodation Trust have been consolidated on an equity accounting basis, which shows

the share of the surpluses/deficits in the University’s statement of financial performance and the share of post-

acquisition increases/decreases in net assets in the University’s Balance Sheet.

All significant inter-entity transactions have been eliminated on consolidation.

accounting policies

The following accounting policies, which materially affect the measurement of financial performance and financial

position, have been applied.

1. revenues

government grants and student fees

Government grants and student fees are recognised as income on entitlement.

research funds

Income received for research which will provide reciprocal benefits to the research-funding provider is

recognised in the Statement of Financial Performance as Externally Funded Research income when research

expenditure is incurred. Those research funds which are not expended at year end are included in the

Statement of Financial Position as Funds Received in Advance to recognise the future obligations to complete

the research. (Refer also to Note 12)

Income for research which provides no reciprocal benefits to the research-funding provider is recognised in the

Statement of Financial Performance as Externally Funded Research income when received.

pledged donations

Pledged donations are recognised in the Statement of Financial Performance as Trust Donations when the

pledge agreement is signed. When payments are made they are recorded against the asset. Pledged donations

are recorded at their face value. (Refer Note 20)

other

Where physical assets are acquired for nil consideration the fair value of the asset received is recognised as

revenue.

Dividends are recognised when the right to receive payment has been established.

2. Budgets

The budgets reported in these Financial Statements are those approved by University Council on 9 December

2008.

3. foreign currencies

Transactions and balances in foreign currencies are converted at the New Zealand rate of exchange ruling

at the date of the transaction and balance date respectively. Foreign exchange gains and losses have been

recognised in the Statement of Financial Performance.

69

4. trade and other receivaBles

Accounts receivable are valued at estimated realisable value. Amounts not considered recoverable are written

off in the period in which they are identified.

5. property, plant and eQuipment

The University’s land and buildings are revalued when there has been a significant movement in the market

value or depreciated replacement cost. They were revalued on 31 December 2006 in accordance with NZ IAS

16 Property, Plant and Equipment and the New Zealand Property Institute’s Valuation Standard 3, Valuations for

Financial Reporting. The basis of valuation was as follows:

~ Land was valued at market value

~ Specialised buildings and improvements were valued at depreciated replacement cost and

~ Non-specialised buildings and improvements were valued at market value.

The valuation was completed by a registered valuer employed by the University and has been reviewed by an

independent registered valuer (Chapman Consulting Otago Limited) and confirmed as appropriate for financial

reporting purposes. (Refer also to Note 9)

All Crown-owned land and buildings (if any) used by the University are included as part of the University’s

assets. Although legal title has not been transferred, the University has assumed all the normal risks and rewards

of ownership.

Capital work in progress is valued at cost and is not depreciated.

Library books and periodicals, with the exception of rare books and special library collections, have been valued

at cost less accumulated depreciation. Library electronic resources in the form of annual subscriptions are

written off at the time of purchase.

Rare books and special library collections were valued as at 31 December 1994 by expert University Library

staff, based on the net current value of items following the generally accepted methodology employed by the

Alexander Turnbull Library. Any additions to the collection have been valued at cost. (Refer also to Note 17)

The Hocken Library Collections were revalued at 1 January 2006 by an independent registered valuer (Peter

Webb Galleries). The University elected to adopt optional exemption section 13 (b) of NZ IFRS 1 and has

recognised the revalued amounts as fair value, and used this as the deemed cost. Any additions since 1 January

2006 have been valued at cost. (Refer Note 18)

University artworks were valued at 1 January 2006 by an independent registered valuer (Peter Webb Galleries).

The University elected to adopt optional exemption section 13 (b) of NZ IFRS 1 and has recognised the valued

amounts as fair value, and used this as the deemed cost. Any additions since 1 January 2006 have been valued

at cost.

Plant, motor vehicles, equipment and furniture are recorded at cost less accumulated depreciation and

impairment losses. Asset purchases of less than $2,000 are expensed at cost on acquisition, with the exception

of furniture and computers which are capitalised regardless of cost.


70

The useful life of each asset class and the depreciation rates used in the preparation of these statements are as

follows:

asset class useful life depreciation rate

(years)

Buildings and Components

Site improvements 50 to 100 1.0% to 2.0%

Structure including walls 40 to 250 0.4% to 2.5%

Roof 25 to 100 1.0% to 4.0%

Plumbing 40 to 60 1.7% to 2.5%

Lifts 40 to 50 2.0% to 2.5%

Heating and ventilation 30 to 60 1.7% to 3.3%

Fume cupboards 15 6.7%

Floor coverings and chattels 10 to 40 2.5% to 10.0%

Fit out 30 to 75 1.3% to 3.3%

Fire protection 50 to 60 1.7% to 2.0%

Electrical 40 to 50 2.0% to 2.5%

Data network 15 6.7%

Motor vehicles and trailers 3 to 10 10.0% to 33.3%

Furniture and fittings 5 to 10 10.0% to 20.0%

Plant and equipment 4 to 37 2.7% to 25.0%

Computers and photocopiers 4 to 10 10.0% to 25.0%

Library collections 3 to 10 10.0% to 33.3%

Depreciation of all assets, except for land, artworks, rare books and special library collections, is provided for on

a straight-line basis at rates that will write off their cost, less any residual value, over their estimated useful lives.

Land, artworks, rare books and special library collections are not depreciated.

6. intangiBle assets

Acquired computer software is capitalised on the basis of the costs incurred to acquire and bring to use the

specific software.

Costs associated with maintaining computer software are recognised as an expense when incurred. Costs

that are directly associated with the development of software for internal use by the University of Otago are

recognised as an intangible asset.

amortisation

The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful

economic life. Amortisation begins when the asset is available for use and ceases at the date that the asset is

derecognised. The amortisation charge for each period is recognised in the Statement of Financial Performance.

(Refer Note 10)

The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as

follows:

Computer software 3 to 25 years 4% to 33.3%.

71

7. inventory

Inventories have been valued at the lower of cost and net realisable value. Cost is determined on a first-in first-

out basis, or by the weighted average method. Obsolete inventories have been written off.

8. goods and services taX (gst)

The financial statements are prepared on a basis which excludes GST. Accounts receivable and accounts payable

are GST inclusive. GST owing to the Inland Revenue Department as at 31 December 2009 is included in

accounts payable.

The net GST paid to, or received from the IRD, is classified as an operating cash flow in the statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

9. employee entitlements

Annual leave for academic and general staff has been accrued. In addition, an accrual has been made for

retirement gratuities and sick leave for both academic and general staff and long service leave for general staff.

Retirement gratuities, long service and sick leave have been accrued on the following basis:

~ Long service leave which has vested to the employee (an entitlement has been established) has been

measured at nominal value using remuneration rates current at reporting date. This is included as a Current

Liability.

~ Retirement gratuities which have vested to the employee (an entitlement has been established) have been

measured at nominal value using remuneration rates current at the time of entitlement. This is included as a

Current Liability.

~ Retirement gratuities and long service leave which have not yet vested in the employee (no entitlement

has been established) have been measured using the present value measurement basis which discounts

expected future cash outflows. This is treated as a Non-Current Liability.

~ Sick leave has been measured using the present value measurement basis which discounts expected future

cash outflows. This is treated as a Non-Current Liability.

~ Employee entitlements relating to the sale of intellectual property have been valued using the value of the

intellectual property at balance date as the basis for the entitlement.

10. finance leases

Finance leases, which effectively transfer to the University of Otago and Group companies all the risks and

benefits incidental to ownership of the leased item, are capitalised. The leased assets and corresponding lease

liabilities are disclosed, and the leased assets are depreciated over the period that benefits are received from

their use.

11. operating leases

An operating lease is a lease that does not transfer substantially all the risk and rewards incidental to ownership

of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over

the lease term.


72

12. other financial assets

The University classifies its Other Financial Assets into the following four categories: financial assets at fair

value through the Statement of Financial Performance; loans and receivables; held-to-maturity investments;

and available for sale assets. The classification depends on the purpose for which the investments were

acquired. Management determines the classification of its investments at initial recognition and re-evaluates this

designation at reporting date. Financial assets are initially measured at fair value plus transition costs.

financial assets at fair value through the statement of financial performance:

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. These include investments in quoted shares. After initial recognition they

are measured at fair values. Gains or losses on measurement are recognised in the Statement of Financial

Performance.

loans and receivables:

These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active

market. These include shareholders’ advances, loans and short-term deposits. After initial recognition, they are

measured at amortised cost using the effective-interest method. Gains and losses where the asset is impaired or

derecognised are recognised in the Statement of Financial Performance.

held to maturity investments:

These are assets with fixed or determinable payments and fixed maturities that the University has the positive

intention and ability to hold to maturity. The University and Group have no investments in this category.

available for sale assets:

These are those non-derivative financial assets that are designated as available for sale or are not classified as

financial assets at fair value through the Statement of Financial Performance, loans and receivables or held-to-

maturity investments. The University and Group have no assets in this category.

University investments in its subsidiaries are carried at cost. Investments in associate companies are valued at

cost plus the share of retained profits.

13. accounting for derivative financial instruments and hedging activities

The University uses derivative financial instruments to hedge exposure to foreign exchange risks arising from

financing activities. The University does not hold or issue derivative financial instruments for trading purposes.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and subsequently

remeasured at fair value.

14. statement of cash flows

Cash & Cash Equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid

investments with original maturities of three months or less, and bank overdrafts.

Operating Activities include cash received from all income sources and record the cash payments made for the

supply of goods and services.

Investing Activities are those activities relating to the acquisition and disposal of non-current assets.

Financing Activities comprise activities that change the debt structure of the University.

73

15. taXation

The University, its subsidiaries and Trusts are exempt from the payment of income tax as they are treated by the

Inland Revenue Department as charitable organisations. Accordingly, no charge for income tax applies or has

been provided for.

16. acc partnership programme

The University of Otago belongs to the ACC Partnership Programme whereby the University accepts the

management and financial responsibility of work-related illnesses and accidents of employees. Under the ACC

Partnership Programme, the University is effectively providing accident insurance to employees and this is

accounted for as an insurance contract. The value of this liability represents the expected future payments

in relation to accidents and illnesses occurring up to the Statement of Financial Position date for which the

University has responsibility under the terms of the Partnership Programme.

The liability for claims reported prior to balance date has been determined by assuming that the future

experience for each current claim is consistent with historical claim information since the commencement of

the programme. The liability for injuries or illnesses that have occurred up to balance date, but not yet reported

or not fully reported, has been determined by reference to historical information of the time it takes to report

injury or illness.

The value of the liability is measured at the present value of the future payments for which the University has

responsibility using a risk-free discount rate. The value of the liability includes a risk margin that represents the

inherent uncertainty of the present value of the expected future payments.

17. superannuation schemes

Defined Contribution Schemes: Obligations for contributions to defined contribution superannuation schemes

are recognised as an expense in the statement of financial performance.

Defined Benefit Schemes: The University belongs to the Government Superannuation Fund which is a Defined

Benefit Plan Contribution Scheme. The University has no underwriting responsibilities as any shortfall is met by

the Government. As such, the scheme is accounted for as a defined contribution plan. Further information on

this scheme is disclosed in Note 13.

18. critical accounting estimates and assumptions

In preparing these financial statements the University has made estimates and assumptions concerning the

future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgements

are continually evaluated and are based on historical experience and other factors, including expectations or

future events that are believed to be reasonable under the circumstances.

changes in accounting policies

All accounting policies have been applied on a basis consistent with the previous year.


74

Statement of Financial performance for the year ended 31 december 2009

consolidated university

This Year Budget Last Year This Year Budget Last Year

Note $000 $000 $000 $000 $000 $000

income

Government Grants 1 247,508 241,393 233,795 246,633 240,358 232,900

Domestic Tuition Fees 83,096 81,530 76,459 82,681 80,998 75,993

International Tuition Fees 37,645 36,118 34,218 32,528 31,988 29,978

Investment Income 2 17,267 17,671 8,397 6,685 6,942 11,235

Externally Funded Research 86,426 92,212 87,115 86,219 91,885 86,875

Distributions from Trust Funds 3,421 5,337 4,285

Consulting and Commercial Income 64,877 56,052 55,447 65,384 57,642 55,819

Sale of Intellectual Property 230 1,250 105 205 1,250 79

Trust Donations 3,577 2,312

Other Income 16,873 18,070 21,947 15,171 14,989 20,556

total income 557,499 544,296 519,795 538,927 531,389 517,720

EXPENDITURE

Salaries – Academic 178,291 186,958 166,659 175,105 184,098 163,854

Salaries – General 128,407 124,676 118,885 126,360 123,069 116,932

Staff Related Costs 15,898 16,885 22,688 15,803 16,513 22,592

Consumables and General 93,786 87,116 89,478 90,532 83,904 86,200

Depreciation & Amortisation 3 47,897 48,700 47,591 47,775 48,598 47,487

Occupancy Costs 41,280 32,583 34,853 41,280 33,287 34,853

Scholarships 20,842 22,351 21,123 20,836 22,351 21,123

total expenditure 3 526,401 519,269 501,277 517,691 511,820 493,041

net surplus 31,098 25,027 18,518 21,236 19,569 24,679

THE STATEMENT OF ACCOUNTING POLICIES AND THE NOTES TO THE FINANCIAL STATEMENTS FORM PART OF, AND ARE TO BE READ IN CONJUNCTION WITH, THIS STATEMENT.

75

Statement of Comprehensive Income for the year ended 31 december 2009


This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000

Net Surplus for the Year 31,098 25,027 18,518 21,236 19,569 24,679

other comprehensive income

Revaluation of Fixed Assets 50,583 50,583

Total Other Comprehensive Income 50,583 50,583

total comprehensive income 31,098 75,610 18,518 21,236 70,152 24,679

Statement of Changes in equity for the year ended 31 december 2009 consolidated university


Note $000 $000 $000 $000 $000 $000

Opening Balance of Equity 1,279,787 1,278,272 1,255,871 1,066,792 1,068,249 1,042,549

Total Comprehensive Income for the Year 31,098 75,610 18,518 21,236 70,152 24,679

total recognised revenues and expenses

for the period 31,098 75,610 18,518 21,236 70,152 24,679

Foreign Exchange Contracts Revaluation (436) (436)

Dunedin City Tertiary Accommodation 4 6,258

Trust Opening Position at 1 January 2008

Transfer of External Trusts to Loan Balance (424)

Dividends Paid (37)

closing Balance of equity 1,310,885 1,353,845 1,279,787 1,088,028 1,138,401 1,066,792



76

Statement of Financial position as at 31 december 2009 consolidated university

This Year Budget Last Year This Year Budget Last Year Note $000 $000 $000 $000 $000 $000

assets

Current Assets Cash and Cash Equivalents 5 25,940 18,048 28,221 12,895 5,694 13,519 Other Financial Assets 6 49,042 73,934 60,021 52,726 54,728 56,697 Trade & Other Receivables 7 28,590 33,719 33,226 26,309 31,543 31,947 and Prepayments Inventory 793 1,010 804 793 1,010 804

total current assets 104,365 126,711 122,272 92,723 92,975 102,967 non-current assets Investments in Associates 8 4,388 5,761 4,363 Other Financial Assets 6 112,076 91,579 92,803 16,847 17,453 14,624 Property, Plant & Equipment 9 1,225,058 1,260,771 1,180,344 1,109,909 1,155,547 1,066,824 Intangible Assets – Internally 10 2,208 2,534 2,208 2,534 Generated Intangible Assets – Externally 10 9,223 11 9,294 9,179 9,283 Generated

total non-current assets 1,352,953 1,358,122 1,289,338 1,138,143 1,173,000 1,093,265 total assets 1,457,318 1,484,833 1,411,610 1,230,866 1,265,975 1,196,232 liaBilities

current liabilities Trade & Other Payables 11 40,803 33,727 35,901 40,015 33,604 36,056 and Accruals Funds Received in Advance 12 40,842 35,558 34,272 38,849 34,100 32,476 Employee Entitlements 13 35,098 34,429 31,408 34,916 34,257 31,274

total current liabilities 116,743 103,714 101,581 113,780 101,961 99,806 Non-Current Liabilities Loans and Leases 14 632 1,661 608 Employee Entitlements 13 29,058 25,613 29,634 29,058 25,613 29,634 total non-current liabilities 29,690 27,274 30,242 29,058 25,613 29,634 eQuity General Reserve 15 753,293 736,232 722,195 530,436 520,788 509,200 Property Revaluation Reserve 15 557,592 617,613 557,592 557,592 617,613 557,592

total equity 1,310,885 1,353,845 1,279,787 1,088,028 1,138,401 1,066,792

total liaBilities & eQuity 1,457,318 1,484,833 1,411,610 1,230,866 1,265,975 1,196,232

THE STATEMENT OF ACCOUNTING POLICIES AND NOTES TO THE FINANCIAL STATEMENTS FORM PART OF, AND ARE TO BE READ IN CONJUNCTION WITH, THIS STATEMENT.

77

Statement of Cash Flows for the year ended 31 december 2009 consolidated university

This Year Budget Last Year This Year Budget Last Year Note $000 $000 $000 $000 $000 $000

operating activities

Cash was provided from: Government Grant 248,208 241,383 233,905 247,317 240,348 233,012 Revenue from Fees 121,905 117,817 111,837 116,143 112,979 106,616 Revenue from Services 179,184 173,381 166,606 179,887 175,949 168,883 Investment Income 12,890 16,084 19,291 5,415 7,258 8,985 562,187 548,665 531,639 548,762 536,534 517,496 Cash was applied to: Employees and Suppliers 470,130 468,108 441,189 461,977 460,934 435,754 470,130 468,108 441,189 461,977 460,934 435,754 net cash flows from operating activities 92,057 80,557 90,450 86,785 75,600 81,742 investing activities Cash was provided from: Investments 21,196 2,000 3,310 4,000 2,000 1,190 Investments – Subsidiaries & Associates 1,231 156 1,231 Sale of Property, Plant & Equipment 40 21 21,236 2,000 4,562 4,156 2,000 2,421 Cash was applied to: Investments 25,605 6,000 6,835 Investments – Subsidiaries & Associates 182 1,280 1,500 1,942 1,280 1,500 Property, Plant & Equipment Acquired 89,399 84,322 87,249 89,263 84,172 87,046 115,186 91,602 95,584 91,205 85,452 88,546 net cash flows from investing activities (93,950) (89,602) (91,022) (87,049) (83,452) (86,125) financing activities Cash was provided from: Loans Raised 350 417 350 222 Reduce Current Assets 753 836 350 753 1,253 350 222 Cash was applied to: Reduce Liabilities 738 607 143 710 540 4 738 607 143 710 540 4 net cash flows from financing activities (388) 146 1,110 (360) (540) 218 total cash flows (2,281) (8,899) 538 (624) (8,392) (4,165) Opening Balance 28,221 26,947 27,683 13,519 14,086 17,684

closing Balance 25,940 18,048 28,221 12,895 5,694 13,519 represented by: Cash and Cash Equivalents 5 25,940 18,048 28,221 12,895 5,694 13,519 total 25,940 18,048 28,221 12,895 5,694 13,519

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department.



78

reconciliation of the net Surplus from operations with the net cash flows from operating activities



$000 $000 $000 $000 $000 $000

net surplus 31,098 25,027 18,518 21,236 19,569 24,679

Plus (Less) Non-cash Items

Non-cash Consideration for (783)

Intellectual Property

Adjustment to Staff Entitlements (576) 1,337 7,944 (576) 1,337 7,944

Adjustment to Investments (1,827) (1,432) 13,721 (2,125) 120

Dunedin City Tertiary Accommodation Trust (379) (438)

Increase (Decrease) in Unrealised (3,950)

Capital Gains

Increase (Decrease) in Loans From 53

External Trust Funds

Non-Cash Pledged Donations 1,905 2,025 2,445

Non-Cash Donation to Hocken Collections (1,269) (1,644)

Share of Associates Surpluses (124) (441) (75)

Depreciation and Property, Plant & 47,897 48,700 47,591 47,775 48,598 47,487

Equipment Written Off

Loss on Disposal of Property, Plant (498) (30) (124) (498) (30) (124)

& Equipment

Other Non-Cash Items (296) (31) (234) (295)

total non-cash items 40,936 49,345 69,186 44,281 49,905 55,427

Plus (Less) Movements in Other Working Capital Items:

Decrease (Increase) in Trade & 5,495 873 (581) 5,880 1,071 (729)

Other Receivables

Decrease (Increase) in Prepayments 369 123 (1,969) 369 123 (1,993)

Decrease (Increase) in Inventory 11 (27) (89) 11 (27) (89)

Increase (Decrease) in Trade & Other Payables 4,609 (516) 498 5,714 (645) 278

Increase (Decrease) in Employee Entitlements 2,970 1,530 1,718 2,922 1,530 1,740

Increase (Decrease) in Funds Received 6,569 4,202 3,169 6,372 4,074 2,429

in Advance

total movements in other working 20,023 6,185 2,746 21,268 6,126 1,636

capital items

net cash flows from operating activities 92,057 80,557 90,450 86,785 75,600 81,742


79

Statement of Commitments and Contingencies as at 31 december 2009

university and consolidated This Year Last Year

$000 $000

commitments As at 31 December 2009, $18.249 million of capital works and equipment were committed for 2010: Capital Works 16,307 28,084 Equipment and Other 1,942 1,490 18,249 29,574 Non Cancellable Property Operating Leases Not Later than One Year 2,890 3,054 Later than One Year and not Later than Two Years 2,542 2,344 Later than Two Years and not Later than Five Years 4,604 5,117 Later than Five Years 3,902 6,028 Total Commitment 13,938 16,543 total commitments 32,187 46,117 The University plans to construct buildings and associated infrastructure at the new Dunedin Forsyth Barr Stadium site. This will bring together teaching and learning, sport and recreation, student health and research on health and development. university and consolidated

This Year Last Year $000 $000

contingent liaBilities The University provided a guarantee to the Bank of New Zealand for a bond given by the bank to the Dunedin City Council, over the siting of some temporary buildings. 50 50 There were several personal grievance claims by employees against 35 15 the University. The University has a contingent liability with respect to the suspensory loans it has received from the Crown. These suspensory loans have been recognised as a Crown contribution within equity on receipt. In the event of the University not achieving the required objectives, the loans are repayable to the Crown. The balance that is still subject to achieving required objectives for the Leading Thinkers loan is 25,000 25,000

The balance that is still subject to achieving required objectives for the College of Education merger loan is 1,200 1,200

There are no Contingent Assets.


80

notes to and Forming part of the Financial Statements for the year ended 31 december 2009



government grants

Vote Education 194,633 188,692 183,696 193,758 187,657 182,801

Vote Education – PBRF 50,923 50,550 47,670 50,923 50,550 47,670

Vote Health 1,952 2,151 2,429 1,952 2,151 2,429

total government grants 247,508 241,393 233,795 246,633 240,358 232,900

Vote Education includes funding received from Government by way of the tertiary education institute base investment and the student achievement component (the latter is based on forecast equivalent full-time student (EFTS) numbers and the funding category values of these EFTS). Vote Education – PBRF is funding received from Government by way of the Performance-Based Research Fund. Vote Health is EFTS funding for health education that is clinically-based and is funded by the Ministry of Health, through the Clinical Training Agency.



$000 $000 $000 $000 $000 $000

investment income

Interest from Bank Term Deposits 4,814 7,543 9,921 3,962 6,693 8,779

Loans and Receivables

Interest from Government and Public Stock 1,130 1,016 1,356

Interest from Corporate Bonds and Notes 3,953 5,071 4,744

Income from Associate Companies 314 470 55

Dividends from New Zealand Company Equities 1,386 1,528 1,493 303 249 533

Dividends from Australian Company Equities 551 611 724

Realised Gains/(Losses) on Sale of Equities (379) 1,243

Realised Foreign Exchange Gains/(Losses) 207 1,958 1957

Unrealised Gains/(Losses) on Revaluations 4,967 1,432 (14,146) 2,125 (120)

of Investments

Unrealised Foreign Exchange Gains/(Losses) 324 1,049 295 86

total investment income 17,267 17,671 8,397 6,685 6,942 11,235

Note 1

Note 2

81

Note 3



$000 $000 $000 $000 $000 $000

reQuired disclosures

statement of financial performance

Total Expenditure includes:

Fees to Principal Auditor (Audit NZ)

- Audit Fees for Financial Statement Audit 225 194 268 150 130 192

- Audit Fees for NZ IFRS Transition 13 8

- Fees for Other Services *1 11 13 18 11 13 18

total fees to principal auditor 236 207 299 161 143 218

Fees Paid to Lay Council Members (see below) 97 102 101 97 102 101

Interest Expense 107 310 292 130 310 292

Bad Debts Written Off 114 53 126 106 53 126

Directors Remuneration 80 72 71

Depreciation/Amortisation

Depreciation – Property, Plant & Equipment 45,974 46,684 45,971 45,870 46,590 45,867

Amortisation – Intangible Assets 1,923 2,016 1,620 1,905 2,008 1,620

(see Note 10)

total depreciation/amortisation 47,897 48,700 47,591 47,775 48,598 47,487

Loss on Disposal of Fixed Assets (498) (30) (124) (498) (30) (124)

Lease Payments 5,593 4,589 5,667 5,593 4,589 5,240

*1 Relates to the audit of the Vice-Chancellor’s declaration on the Performance-Based Research Fund External Research Income component.


82

The following fees were earned by members of the Council during the year :

council member this year last year

$ $

E O K Blaikie 3,200 2,240

L J Brown 25,350

P W H Chin 3,520 4,800

E J S Darlow 5,760

E W Ellison 2,560 2,560

J D Every-Palmer 1,600 1,920

K E Grant 12,800 11,200

L P Isaacs 9,600 10,240

S J McLauchlan 13,200 8,960

M J M Sidey 5,120 4,160

K A Smith 320

K M Smith 4,480 5,120

R H Tobin 5,760 2,880

M D Tucker 5,440

J F Ward 25,350 10,400

S S Wilson 4,480 5,440

total earned 97,430 101,030

Note: Council members who are also employees do not receive attendance fees.

The following Directors’ fees were earned by members of the Council who are directors of companies in the group:

council member this year last year

$ $

L J Brown 20,000

S J McLauchlan 6,000 6,000

J F Ward 3,247

total earned 9,247 26,000

83

Note 5

Note 4 dunedin city tertiary accommodation trust


This Year Last Year This Year Last Year $000 $000 $000 $000

Dunedin City Tertiary Accommodation Trust *1

Investment at Deemed Cost 6,258 6,258

Share of Increase (Decrease) in the Net Assets 817 438

total investment 7,075 6,696

The University of Otago has a 67% interest in Dunedin City Tertiary Accommodation Trust. The interest is stated at cost in the University accounts (acquired for nil value) and is equity accounted for in the consolidated accounts. The total investment is included in the consolidated property, plant and equipment.

*1 These figures have been adjusted to align the accounting policies of the University of Otago and the Dunedin City Tertiary Accommodation Trust. The main difference between the Dunedin City Tertiary Accommodation Trust accounts and the University of Otago’s accounts is that the University has revalued property, plant and equipment. Independent valuer Macpherson Valuation Limited completed a valuation as at 1 December 2007. This resulted in a $7.402 million increase in value.

.



$000 $000 $000 $000 $000 $000

cash and cash eQuivalents

Cash at Bank and In Hand 4,156 1,051 2,485 4,030 200 832

Bank On-call Deposits 16,034 265 15,245 8,865 9,687

Short-term Deposits Maturing 3 Months or

Less from Date of Acquisition 5,750 16,732 10,491 5,494 3,000

total cash and cash equivalents 25,940 18,048 28,221 12,895 5,694 13,519


84



$000 $000 $000 $000 $000 $000

other financial assets

current portion


Loans to Subsidiaries 370 370 370

Loans to Associates 370 370 370

Other Loans 356 358 327 356 358 327

Loan from University to Foundation Trust 25,000 25,000 25,000

Pledged Donations 1,620 1,500 2,025

Fair Value through Profit and Loss

Short-term Deposits with Maturities of Greater 37,258 63,000 41,417 27,000 29,000 31,000

than 3 Months from Date of Acquisition

Govt, LA & SOE Stock & Corporate Bonds 9,438 8,706 15,882

total current portion 49,042 73,934 60,021 52,726 54,728 56,697

non-current portion


Loans to Subsidiaries 3,684 3,816 2,835

Loans to Associates 35

Other Loans 4,713 4,891 4,382 4,713 4,891 4,383

Pledged Donations 3,190 3,190 4,690


Bank Term Deposits 4,000

Govt, LA & SOE Stock & Corporate Bonds 49,712 42,617 50,267

Shares in Listed Equities 54,426 40,881 29,464 1,624 580 580

Shares in Subsidiaries

Shares in Subsidiaries 6,826 8,166 6,826

total non-current portion 112,076 91,579 92,803 16,847 17,453 14,624

total other financial assets 161,118 165,513 152,824 69,573 72,181 71,321

Note 6

85

The maturity profile for other investments is as follows:

consolidated university Weighted avg Weighted avg effective effective interest rate interest rate

This Year Last Year This Year Last Year

$000 $000 $000 $000

Less than 1 Year


Loans to Subsidiaries 370 0.00% 370

Loans to Associates 370 0.00% 370

Other Loans 356 0.00% 327 356 0.00% 327

Loan from University to Foundation Trust 25,000 0.00% 25,000

Pledged Donations 1,620 0.00% 2,025


Short-term Deposits with Maturities of Greater 37,258 4.84% 41,417 27,000 4.44% 31,000

than 3 Months from Date of Acquisition

(Average Maturity 92 days)

Govt, LA & SOE Stock & Corporate Bonds 9,438 6.35% 15,882

total current portion 49,042 60,021 52,726 56,697

1 to 5 years


Loans to Associates 35 0.00%

Other Loans 1,387 0.00% 1,279 1,387 0.00% 1,279

Pledged Donations 2,680 0.00% 3,750


Short-term Deposits 0.00% 4,000

Corporate Bonds Govt, LA & SOE stock 42,506 7.73% 41,690

more than 5 years


Loans to Subsidiaries 3,684 0.00% 2,835

Other Loans 3,326 0.00% 3,103 3,326 0.00% 3,104

Shares in Subsidiaries 6,826 0.00% 6,826

Pledged Donations 510 0.00% 940


Corporate Bonds Govt, LA & SOE stock 7,206 6.79% 8,577

Shares in Listed companies – Carried at Fair 54,426 0.00% 29,464 1,624 0.00% 580

Value through Statement of Financial

Performance

total term portion 112,076 92,803 16,847 14,624

total loans and receivables 161,118 152,824 69,573 71,321


86

investments

Investments held by the Trusts include New Zealand Government Securities, State-Owned Enterprises stock, local authority stock,

bank bonds, commercial bonds and listed equities. The fair values of these investments are based on quoted market prices at

balance date.

The Group owns 7,481,433 shares in BLIS Technologies Limited (BLIS). At 31 December 2009 the carrying amount was adjusted

from the 31 December 2008 market price of $0.06 per share to the market price at 31 December 2009 of $0.12 per share,

resulting in a write-up in fair value of $448,886.

The Group owns 10,798,637 shares in Pacific Edge Biotechnology Limited (PEBL). At 31 December 2009, the carrying amount

was adjusted from the 31 December 2008 market price of $0.10 per share to the market price of $0.28 per share, resulting in a

write up in fair value of $1,943,755.

The Group owns 4,641,200 shares in listed company Syft Technologies Limited. At 31 December 2009 the carrying amount was

adjusted from the 31 December 2008 market price of $0.10 per share to the market price of $nil per share, resulting in a write-

down in fair value of $464,120.



$000 $000 $000 $000 $000 $000

trade and other receivaBles and prepayments

Trade Receivables 14,666 18,998 16,576 14,200 17,544 16,565

Other Receivables 9,153 9,697 10,940 7,191 9,011 9,672

Related Parties 204 12 1,072 354 12 1,072

Prepayments 4,567 5,012 4,638 4,564 4,976 4,638

total trade & other receivables

and prepayments 28,590 33,719 33,226 26,309 31,543 31,947

trade and other receivaBles

Current 15,113 16,659 12,933 17,386

2 to 3 Months 6,145 7,517 6,094 6,656

> 3 Months 2,765 4,412 2,718 3,267

carrying amount 24,023 28,588 21,745 27,309

Note 7

87



$000 $000 $000 $000 $000 $000

investments in associates

unipol recreation limited

Investment at Deemed Cost 905 905 905

Share of Increase (Decrease) in the Net Assets 389 234 179

total investment 1,294 1,139 1,084

unihealth limited


Share of Increase (Decrease) in the Net Assets

total investment 3 3 3

university union limited

Investment at Deemed Cost 1,992 1,992 1,942

Share of Increase (Decrease) in the Net Assets 220 234 166

total investment 2,212 2,226 2,108

new Zealand centre for reproductive medicine limited


Share of Increase (Decrease) in the Net Assets (213) (30) (174)


lconZ limited


Share of Increase (Decrease) in the Net assets (10) 131 9


Bpac nZ limited

Investment at Deemed Cost 8

Share of Increase (Decrease) in the Net Assets

total investment 8

Note 8


88



$000 $000 $000 $000 $000 $000

photonic innovations limited

Investment at Deemed Cost 200 200

Share of Increase (Decrease) in the Net Assets 663 (198)

total investment 863 2

harmonic aotearoa limited

Investment at Deemed Cost 290 290

Share of Increase (Decrease) in the Net Assets (6) (100)


delta s technologies limited

Unlisted Ordinary Shares 48 48

Share of Increase (Decrease) in the Net Assets (13) (9)


total investments in associates 4,388 5,761 4,363

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92

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93

Note 10 intangiBle assets – PARENT

Externally Internally Total Generated Generated $000 $000 $000

cost

Balance at 1 January 2008 15,147 3,515 18,662

Additions 1,046 1,046

Disposals

Transfers Between Categories

Other Adjustments

Impairment

Balance at 31 December 2008 16,193 3,515 19,708



Disposals (115) (115)


Other Adjustments (26) (26)

Impairment


accumulated depreciation & impairment losses

Balance at 1 January 2008 5,572 699 6,271

Depreciation 1,338 282 1,620

Disposals


Other Adjustments

Impairment

Balance at 31 December 2008 6,910 981 7,891



Disposals (78) (78)



Impairment


carrying amounts

At 1 January 2008 9,575 2,816 12,391

At 31 December 2008 & 1 January 2009 9,283 2,534 11,817

At 31 December 2009 9,179 2,208 11,387


94

intangiBle assets – consolidated

Externally Internally Total Generated Generated $000 $000 $000

cost



Disposals (2) (2)


Other Adjustments

Impairment




Disposals (120) (120)



Impairment


accumulated depreciation & impairment losses



Disposals (3) (3)


Other Adjustments

Impairment

Balance at 31 December 2008 7,035 981 8,016



Disposals (83) (83)



Impairment


carrying amounts

At 1 January 2008 9,582 2,816 12,398

At 31 December 2008 & 1 January 2009 9,294 2,534 11,828

At 31 December 2009 9,223 2,208 11,431

95

Note 11

Note 12



$000 $000 $000 $000 $000 $000

trade & other payaBles and accruals

Trade Payables 13,132 5,203 11,110 12,975 4,721 10,241

Other Payables 15,932 13,453 12,282 15,384 13,882 13,388

Related Parties 2,477 3,928 3,302 2,627 3,928 3,302

Accruals 9,262 11,143 9,207 9,029 11,073 9,125

total trade & other payables and accruals 40,803 33,727 35,901 40,015 33,604 36,056



$000 $000 $000 $000

trade and other payaBles

Current 25,544 26,236 24,989 27,034

2 to 3 Months 5,753 (83) 5,753 (83)

> 3 Months 244 541 244 (20)

carrying amount 31,541 26,694 30,986 26,931



funds received in advance

Research Funding 29,289 27,078 25,590 29,289 27,078 25,590

Student Fees 7,553 6,628 6,567 5,560 5,170 4,771

Other 4,000 1,852 2,115 4,000 1,852 2,115

total funds received in advance 40,842 35,558 34,272 38,849 34,100 32,476


96

consolidated university This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000

employee entitlements

Current Portion of Employee Entitlements:

Annual Leave 25,208 24,188 23,053 25,026 24,016 22,919

Long Service Leave 754 1,103 719 754 1,103 719

Retirement Gratuities 8,016 8,366 7,236 8,016 8,366 7,236

Staff Intellectual Property Entitlements 1,120 772 400 1,120 772 400

total current portion 35,098 34,429 31,408 34,916 34,257 31,274

Non-Current Portion of the Employee Entitlements:

Long Service Leave 902 772 927 902 772 927

Retirement Gratuities 27,000 22,868 27,519 27,000 22,868 27,519

Sick Leave 1,156 1,438 1,188 1,156 1,438 1,188

Staff Intellectual Property Entitlements 535 535

total non-current portion 29,058 25,613 29,634 29,058 25,613 29,634

calculation of sick leave, long-service leave and retirement gratuities

An actuarial assessment of the accrued sick leave, long service leave and retirement gratuities of the University of Otago in

respect of current employees was carried out as at 31 December 2009. A range of discount rates from 4.05% to 6.94% and a

salary growth rate of 2.75% have been applied in the calculation of the non-current sick leave, long service leave and retirement

gratuity entitlements. Discount rates are those assessed as the interest rates (before tax) attaching to Government Stock with

terms to maturity that match, as closely as possible, the terms of the related liabilities. The salary growth rate is based on the

projected long term annual rate of inflation.

Sick leave for University of Otago Holdings Limited Group has not been accrued as it is immaterial.



$000 $000 $000 $000

Employer Contributions to Multi-Employer

Defined Benefit Plans 2,581 2,027 2,581 2,027

Note 13

97

Note 14



$000 $000 $000 $000

loans and leases

Non-Current Loans & Leases 632 608

total loans and leases 632 608

Non-current loans represent funds held on behalf of two external trusts where the University of Otago is not the sole

beneficiary. The funds from these trusts have been invested in the University of Otago Foundation Trust and investment income is

allocated to these funds monthly.



$000 $000 $000 $000

non-current

Maturity Analysis

1 to 5 Years

>5 Years 632 608

total loans 632 608

The weighted average effective interest rate of all loans is 0%.

The carrying amount (fair value) of the above loans has been estimated to be the face value of the loans.


98



$000 $000 $000 $000

eQuity

general reserve

As at 1 January 722,195 698,279 509,200 484,957

Surplus for Year 31,098 18,518 21,236 24,679

Foreign Exchange Contracts Revaluation (436) (436)

Dunedin City Tertiary Accommodation Trust

Opening Position at 1 January 2009 6,258

Transfer of External Trusts to Loan Balance (424)

as at 31 december 753,293 722,195 530,436 509,200

property revaluation reserve

As at 1 January 557,592 557,592 557,592 557,592

as at 31 december 557,592 557,592 557,592 557,592

total equity 1,310,885 1,279,787 1,088,028 1,066,792

Note 15

99

Note 16 financial instruments

The Group is party to financial instrument arrangements as part of its everyday operations. The main risks arising from the

University and Group’s financial instruments are foreign exchange risk, credit risk, interest rate risk, price risk and liquidity risk.

To manage and limit the effects of those risks, the University Council has approved policy guidelines and authorised the use of

various financial instruments. Compliance is monitored monthly and deviations from the target are reported to the Finance and

Budget Committee, the Investment Committee or the Foreign Exchange Risk Management Committee. The financial instruments

being utilised at balance date are outlined below.

The principal or contract amounts of derivative financial instruments outstanding at balance date are as follows:


This Year Last Year This Year Last Year $000 $000 $000 $000 Fair Value Fair Value Fair Value Fair Value

Forward foreign exchange contracts 8,831 13,256 8,831 13,256

foreign exchange risk

The Group has transactional currency exposures arising from sales and purchases in currencies other than NZ dollars. The

University regularly monitors its exposure to overseas currency fluctuations. Wherever possible, the University transacts in NZ

dollars including the setting of fees for international students. The University purchases library items and scientific equipment

from overseas, giving rise to and exposure to currency fluctuations, but in the case of ordering major items of equipment (over

$50,000) policy requires the University to hedge the purchase when the committed payment date is known. Hedge accounting

is not applied. The Group has a Foreign Exchange Risk Management Committee which oversees this risk by applying the foreign

exchange policy which is approved by Council.

At 31 December 2009, the University held the following amounts of foreign currency within its current and call deposit accounts.


currency This Year Last Year This Year Last Year $000 $000 $000 $000expressed in original currency value

US Dollars 5,694 241 2,790 241

Australian Dollars 68 2,959 14 9

Euro 2 34 2 34

Great British Pounds 179 136 179 136

In January, the majority of the above funds were used to pay overseas creditors.

Sensitivity Analysis

At 31 December 2009, if the NZD had weakened / strengthened by 5% against the US dollar, Australian dollar, Euro or GB

pound, with all other variables held constant, the surplus / deficit for the year would have been $556,364 / $643,191 (2008:

$280,274 / $325,417) higher / lower. This movement is attributable to the foreign exchange gains on translation of foreign

denominated bank accounts held in the Group.


100

At 31 December 2009, if the NZD had weakened / strengthened by 5% against the Australian dollar, or US dollar with all other

variables held constant, the surplus / deficit for the year would have been $1,200,713 / $1,359,060, (2008: $536,516 / $604,836)

higher / lower. This movement is attributable to the foreign exchange gains on translation of foreign equities held in the Group.

credit risk

Credit risk is the risk that a third party will default on its obligation to the Group, causing the Group to incur a loss.

In the normal course of business, credit risk arises from debtors, deposits with banks and derivative financial instruments assets.

Trade receivables constitute a minimal concentration of credit risk due to the large number of customers included in the Group’s

customer base.

The Group consults with professional investment advisors and has an investment policy which is regularly reviewed. The Group

places its investments with institutions that have a high credit rating. It also reduces its exposure to risk by limiting the amount that

can be invested in any one institution. The Group believes that this policy reduces the risk of any loss which could arise from its

investment activities.

Short-term deposits are only placed with the major New Zealand trading banks approved under the investment policy. Not more

than one third of all cash deposits can be held with any one approved bank.

interest rate risk

The Group has minimal exposure to interest rate risk from loans.


At 31 December 2009, if interest rates on investments had weakened / strengthened by plus or minus 0.5%, the surplus for the

year would have been $900,441 (2008: $996,035) higher / lower. This movement is attributable to interest-earning deposits held.

price risk

Price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices. The University and

Group are exposed to equity security prices on its equity investments. These prices move in line with market movements in listed

securities. The University and Group holds listed equity instruments which are publicly traded on the NZX and ASX exchanges.


If the NZX50 and the ASX100 index at 31 December 2009 had fluctuated by plus or minus 5% and equity instruments moved

proportionately, the effect would have been to increase / decrease the fair value by $3,055,132 / $2,395,135.

liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty raising liquid funds to meet commitments as they fall due.

Management of Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of

committed credit facilities and the ability to close out market positions. Flexibility in funding is maintained by keeping committed

credit lines available. The University and the Group have a maximum amount that can be drawn down against their overdraft

facility of $30 million (2008: $30 million). There are no restrictions on the use of this facility.

The University and the Group manages liquidity risk by continuously monitoring forecast and actual cash flow requirements and

matching the maturity profiles of financial assets and liabilities.

101

rare Books and special liBrary collections

The University holds a number of gifted collections of books, manuscripts, and artworks within the Central, Medical and Dental

Libraries. The collections were valued at 31 December 1994, based on net current value, by expert University staff following the

generally accepted methodology employed by the Alexander Turnbull Library. The total valuation of the Rare Books and Special

Collections is $9.363 million (2008: $9.345 million). Additions at cost in 2009 were $18k (2008: $35k). (see Note 9)

hocken collections



$000 $000 $000 $000

Opening Balance 109,068 107,152 2,537 2,265

Donated Hocken Additions 1,429 1,916 160 272

total 110,497 109,068 2,697 2,537

being:

Assets Held in Trust 107,800 106,531

Assets Owned by the University 2,697 2,537 2,697 2,537

total 110,497 109,068 2,697 2,537

The University holds in Trust a national archival collection of books and artworks known as the Hocken Collections. Items

included in the collections are acquired by gift, bequest and purchase. Items are also accepted on deposit where ownership is

retained by the depositor.

The University has included the valuation of the owned and deposited items in the total above as it believes that the Hocken

Library is in-substance the owner of all items in the collections. The total collections includes deposited items valued at $23.942

million (2008: $23.707 million).

Note 17

Note 18


102

related party information

crown / government

The Government influences the role of the University and Group as well as being a major source of revenue. While the

University and Group enters into numerous transactions with Government departments and other Crown agencies, they are on

an arm’s length basis and, where those parties are acting in the course of their normal dealings, are not considered to be related

party transactions.

inter-group

university of otago holdings limited (uohl)

a. During the year term loans to UOHL from the University of Otago increased by $1.080 million (2008 decrease of $255k).

It has been agreed that the movement in these loans are to match the movement in the value of OIL’s shareholdings in BLIS

and PEBL (which were revalued by the same amount). The purpose of the term loans is to fund UOHL’s ownership of various

investments. Term loan balances at year end for UOHL were $3.639 million (2008: $2.559 million).

b. During the year the current loan to UOHL from the University of Otago did not change. This loan has been used to fund a

shareholder advance to Unipol Recreation Limited. This loan balance at year end was $370k (2008: $370k).

c. During the year the University of Otago provided no additional equity funding for UOHL (2008: $1.072 million).

d. UOHL paid the University of Otago $25k for accounting and secretarial services (2008: $25k).

e. UOHL has a current account with the University of Otago. Since 1 January 2008 this account has been interest-bearing, with

interest charged to the University at the average rate achieved by the University on its bank call and term deposits. Interest

received on this current account amounted to $23k (2008: $137k). The balance at year end was $36k (2008: $1.095 million).

university of otago foundation studies limited (fsl)

a. FSL enters into transactions with the University of Otago, which are made on normal commercial terms and conditions.

During the year FSL purchased goods and services from the University to the value of $1.123 million (2008: $1.059 million),

including building rentals. At year end the amount owing to the University was $91k (2008: $375k).

b. FSL provided goods and services to the University of Otago to the value of $1.045 million (2008: $1.064 million). This included

payments of Vote Education funding ($875k) and commissions associated with student recruitment ($149k). At year end the

amount owing by the University was $3k (2008: $165k).

otago innovation limited (oil)

a. OIL enters into transactions with the University of Otago, which are made on normal commercial terms and conditions.

During the year OIL purchased goods and services from the University to the value of $223k (2008: $297k). At year end the

amount owing to the University was $13k (2008: $3k).

b. During the year the loan to OIL from the University decreased by $232k. This loan was used to finance 50% of OIL’s

investment in Syft Technologies Limited. It has been agreed that the movement in the loan should match the relative

movement in the value of OIL’s shareholdings in SYFT. The loan balance at year end for OIL was $45k (2008: $277k).

c. Immune Solutions Limited enters into transactions with the University of Otago, which are made on normal commercial terms

and conditions. During the year Immune Solutions Limited purchased goods and services from the University to the value of

$30k (2008: $35k). At year end the amount owing to the University was $2k (2008: $2k).

unipol recreation limited (url)

a. The University of Otago manages the Unipol recreation facility under terms specified in a Management Agreement between

itself and URL. The current agreement is for a period of five years commencing 1 January 2009.

As part of the agreement any operating surplus generated by the operation of the Recreation Centre shall be paid to URL

at year end. Correspondingly, if at the end of the financial year it is determined that the Recreation Centre has generated an

operating deficit, that deficit shall be paid by URL to the University of Otago. The surplus transferred for the year was $662k

(2008:$491k).

b. The University of Otago carried out secretarial and accounting services for URL and received a fee of $7k (2008: $7k) for this

work.

Note 19

103

c. The University of Otago leases space in the Unipol building at an annual rental of $36k. The lease is for three years

commencing 1 January 2007. The lease allows for two renewals of three years each.

d. The University of Otago invests URL’s cash reserves in trading bank call and term deposits. Interest paid to URL for the year

was $106k (2008: $154k). The balance held at year end was $2.664 million (2008: $2.142 million).

e. University of Otago Holdings Limited has made a shareholder’s advance to URL. At year end the balance was $370k (2008:

$370k). This advance is interest free and repayable on demand.

university union limited (uul)

a. During the year the University entered into transactions with UUL, an associate company of University of Otago Holdings

Limited. The transactions were made on commercial terms and conditions. The University paid UUL $362k for rent (2008:

$305k). UUL paid the University of Otago ground rent of $99k (2008: $99k).

university of otago trusts

a. During the year, the University entered into transactions with its Trusts. These were made on commercial terms and conditions.

The University received investment management fees of $454k (2008: $467k) and received distributions of $3.421 million

(2008: $4.285 million). The University has a current account with the Trusts. The balance at year end was $5k (2008: $533k)

and a current loan of $25million (2008: $25 million).

key management personnel

During the year key management personnel, which includes the Chancellor, Councillors, Vice-Chancellor and other senior

management personnel, as part of a normal customer relationship, may have been involved in minor transactions with the

University of Otago on an arm’s-length basis.

Close family members of Councillors and key management personnel are employed by the University. The terms and conditions

of those arrangements are no more favourable than the University would have agreed had there been no relationships to

Councillors or key management personnel.



$000 $000 $000 $000

Key Management Remuneration:

Salary and Short-Term Benefits 3,224 3,006 2,181 2,132

Superannuation 122 101 116 101

Councillors fees 97 101 97 101

total 3,443 3,208 2,394 2,334


104

related parties transactions

councillors year: 2009 year: 2008

Purchased Purchased Owed by Owed to Purchased Purchased Owed by Owed to by University from University University by University from University University during year University at Balance at Balance during year University at Balance at Balance during year Date Date during year Date Date Value of Transactions (GST Inclusive) Value of Transactions (GST Inclusive)

associate professor J a Bennett

Graduate Studies Committee (Social Work) (C)

University of Otago (Council Member)

Judge e o k Blaikie


mr l J Brown

Ashburn Hall Charitable Trust (Trustee)

Awakino Station Ltd (D)

Contract Cultivation Ltd (D)

Deloitte (Consultant – ceased 31/5/06) 2,469 255

Dunedin International Airport Ltd (D) 5,420

E M Irvine Family Trust (Trustee)

Iso-trace NZ Ltd (D) 945,584

Mercy Hospital Dunedin Ltd (D) 41,959 19,903 332 400

Mornington PHO Trust (C) 538 3,033

Otago Innovation Limited (C) 297,000 277,000 2,870

Otago Medical Research Foundation (Councillor) 100 243,967 88,237

Panmure Orchards Ltd (D)

Technology Holdings Ltd (C)


University of Otago Foundation Trust (C) 3,020,875 533,000 25,000,000

University of Otago Holdings Ltd (C)*

Zelko New Zealand Ltd (C )

mr p w h chin

Alexander McMillan Trust (Trustee)

Chinese Poll Tax Heritage Trust (Trustee)

Dunedin City Council (Mayor of Dunedin) 2,986,357 212,751 42,158 4,124 16,336,968 68,769 25,904 5,738

Gambling Commission (C)


mr e J s darlow

Critical Publications Ltd (D)

Otago University Students’ Association 3,017,753 357,935 312 22,956

(President)

105


Purchased Purchased Owed by Owed to Purchased Purchased Owed by Owed to by University from University University by University from University University during year University at Balance at Balance during year University at Balance at Balance during year Date Date during year Date Date

Value of Transactions (GST Inclusive) Value of Transactions (GST Inclusive)

Planet Media Dunedin Ltd (D) 140,429 24,940 18,169 4,699

Student Job Search (D)

Unipol Recreation Ltd (D)

University Bookshop Ltd (D) 1,407 4,698


University Sport NZ (D)

University Union Limited (D) 407,250 111,375

dr m J duxson

Maori Point Vineyard Ltd (D) 1,565


mr e w ellison

Advisor to CEO - Department of Corrections 2,136 2,250 1,238

Dunedin City Council -

Maori Participation Working Party (Member)

Erihana Farm Ltd (D) (S)

Kai Tahu Ki Otago Ltd (C)

Kaitakawaenga to Otago Regional Council 14,682 25,316 563

Ministerial Advisory Committee re

“Sustainable Programme of Water Action” (Member)

Methodist Putea Komiti (C) 2,154

Moana House (D)

Ngäi Tahu Hazardous & New Organism Committee (C)

Ngäi Tahu Te Papa Steering Group (Advisory role)

Pae-Arahi (Cultural Adviser) to ACC (Contract)

QE II Trust (D)

Repatriation Advisory Panel to Te Papa Tongarewa (C) 710 100 334

Tatawai Ancillary Trust (Trustee)

Te Runanga o Otakou (Executive Member)


Waitaki Water Allocation Board (D)

Weller Ltd (D) (S)

dr J d every-palmer

Russell McVeagh (Partner) 251 2,321 225 152



106




mrs k e grant

Alpine Deer Group Limited (D)

Dunedin Diocesan Trust Board (Trustee)

Dunedin International Airport Ltd (D) 6,716 5,420

Gallaway Cook Allan (Associate) 280,663 1,096 194,584 934 893

Hazlett & Sons Ltd (D)

Numerous private trusts administered

by Gallaway Cook Allan (Trustee)

Sport Otago (Trustee) 160 3,038

Stuart Residence Halls Council Inc.

(Member of Executive)


Warbirds over Wanaka Community Trusts (Trustee)

miss l p isaacs

Aoraki Polytech - Dunedin campus

(Advisory Committee for Television & Radio) 636 624

Hills Radio Trust (Trustee) 371 1,169


University Of Otago Foundation Trust 3,931,093 4,547 25,000,000 3,020,875 533,000 25,000,000

dr c J marshall

Tertiary Education Union Otago (Committee Member)


mr s J mclauchlan

50 City Road Ltd (D)

AD Instruments PTY Limited (D) 202,757 754 310,798 332

Aurora Energy Ltd (D)

Cargill Hotel 2002 Ltd (C) 13,134 17,957 2,880

Citibus Ltd (D) 13,534 1,519 34,668 478 1,658

City Forests Ltd (D)

Coronation Property Pool Limited (D) (S)

Delta Ltd (D) 71,966 151,377 1,067

Dunedin Casino Management Ltd (D) (S)

Dunedin Casinos Ltd (D) 5,963

Dunedin City Holdings (D)

Dunedin International Airport Ltd (D) 6,716 5,420

GSM Ltd (D)

107




GSM McLauchlan & Co (Partner)

GSM Trustees Limited (D) (S)

Highlanders Franchise Ltd (C)

Highlanders Trust (C)

Institute of Directors Otago & Southland (C)

Lund South Ltd (D) 2,760,198 109,010 129,188

NZCA Ltd (D)

NZ Sports Hall of Fame (C)

Otago Community Hospice Trust (C) 7,710 5,338

Otago Festival of the Arts (Trustee)

Otago Southland Employers Assn (Trustee) 2,700 52 4,634

Reliance Trading Co Ltd (D)

Rosebery Holdings Ltd (D) (S)

Scenic Circle Hotels Ltd (D) 593 2,843 4,206

Scott Technology Ltd (C)

SJM Forest Ltd (D) (S)

Stafford Equities Limited (D) (S)

University of Otago Foundation Studies Ltd (D) 1,175,625 1,263,375 3,375 102,375 1,191,375 1,197,000 185,625 421,875

University of Otago (Pro-Chancellor)

University of Otago Rugby Club (Committee) 281 10,093 8,754 55,288

USC Investments Ltd (D)

Wagstaff Holdings Limited (D)

Wavell Resources Ltd (D)

ms m a morgan


mr m J m sidey

Forsyth Barr Ltd (Vice-Chairman) (S) 29,289 200 3,240 400

Halberg Trust (Trustee)

Last Ocean Trust (Trustee)

NZ Academy of Sport-South Island (D) 5,040 121,056 5,760 156,249

Salvation Army Advisory Board (D)

St Andrew’s College Foundation (Trustee)


University of Otago Holdings Ltd (D)*


108




professor d c g skegg

A A W Jones Charitable Trust (Trustee)

Alexander Mc Millan Trust (Trustee)

BSE Expert Science Panel (C)

Directors Cancer Research Trust (C)

New Zealand Food Safety Academy (Member) 52,053 2,365 20,813 6,728

University of Otago (Vice-Chancellor)

University of Otago Foundation Studies Ltd (D) 1,175,625 1,263,375 3,375 102,375 1,191,375 1,197,000 185,625 421,875

University of Otago Foundation Trust 3,931,093 4,547 25,000,000 3,020,875 533,000 25,000,000

University of Otago Holdings Ltd (D)*

ms k a smith

Association of Staff in Tertiary Education (Employee) 27,989

ms k m smith

Centre of Excellence Inc. (D)

Centre of Excellence Trust (Trustee)

International Federation of Netball Associations (D)

NZ Academy of Sport - South Island (CEO) 5,040 121,056 5,760 156,249

Skeggs Foundation (Trustee)


mr r h tobin

Logan Park High School (Deputy Principal) 6,520 6,174 1,392 3,766 110


mr m d tucker

Otago University Students’ Association (Executive) 3,063,314 120,064 2,938 27,535


University Union Ltd 343,125 111,375

mr J f ward

Amtex Corporation Limited (C) (S)

Carisbrook Trust (Trustee)

H & J Smith Holdings Limited (C) 353

Otago Innovation Limited (D) 511,875 45,000 13,000

Simner Investments Limited (C) (S)

Skeggs Group Ltd (D)

Southland Building Society (Deputy Chairman)

University of Otago (Chancellor)

109




University of Otago Foundation Trust (C) 3,931,093 4,547 25,000,000

University of Otago Holdings Ltd (C)*

Venture Southland (D)

Wilson Holdings Ltd (D)

professor a m wheatley


mr s s wilson

Critical Publications Ltd (D)

Otago University Students’ Association (President) 3,063,314 120,064 2,938 27,535

Planet Media Dunedin Ltd (D) 141,863 21,131 21,966 1,832

Student Job Search (D) 1,497 26

Unipol Recreation Ltd (D) 13,110


University Union Limited (D) 343,125 111,375

C = Chairman; D = Director; S = Shareholder

* Refer Inter-Group Transactions above. (note 19)

pledged donations

Donations are recognised upon the pledge being made and the contract documents signed. The fair value will be the face value.

All of the pledges have been made and the University expects that these pledges will be honoured.

Total pledged donations outstanding are $4.810 million (2008: $6.715 million). The Net Present Value of these pledges at an

interest rate of 5% (2008: 5%) is $4.320 million (2008: $5.979 million).



$000 $000 $000 $000 $000 $000

Analysis of Pledged Donations:

Less than 1 Year 1,620 1,500 2,025

More than 1 Year but Less than 5 Years 2,680 2,680 3,750

Greater than 5 Years 510 510 940

total pledged donations 4,810 4,690 6,715

Note 20


110

CAPITALMANAGEMENT

The University’s capital is its equity, which comprises general funds and revaluation reserves. Equity is represented by net assets.

The University manages its revenues, expenses, assets, liabilities and general financial dealings prudently. The University’s equity is

largely managed as a by-product of managing income, expenses, assets and liabilities.

The objective of managing the University’s equity is to ensure the University effectively achieves its goals and objectives for which

it has been established, whilst remaining a going concern.

standards or interpretations issued But not yet effective

The University of Otago has elected to not yet apply the following new standards or interpretations that have been issued, but

are not yet effective.

NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments: Recognition and Measurement. The new

standard is required to be adopted for the year ended 31 December 2013. The entity has not yet assessed the impact of the new

standard and expects it will not be early adopted.

There are no other standards or interpretations issued, but not yet effective, that the University of Otago has not yet applied.

events after the Balance sheet date

There were no significant events after balance date.

Note 21

Note 22

Note 23

111

audit report

to the readers of the university of otago and group’s financial statements and performance information for the year ended 31 decemBer 2009

The Auditor-General is the auditor of the University of Otago (the University) and group. The Auditor-General has appointed me, Julian Tan, using the staff and resources of Audit New Zealand, to carry out the audit on her behalf. The audit covers the financial statements and statement of service performance included in the annual report of the University and group for the year ended 31 December 2009.

unQualified opinion

In our opinion:

• thefinancialstatementsoftheUniversityandgrouponpages66to110:

° comply with generally accepted accounting practice in New Zealand; and

° fairly reflect:

· the University and group’s financial position as at 31 December 2009; and

· the results of their operations and cash flows for the year ended on that date.

• theperformanceinformationoftheUniversityandgrouponpages43to56fairlyreflectstheirserviceperformance achievements measured against the performance targets adopted for the year ended on that date.

The audit was completed on 13 April 2010, and this is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Council and the Auditor, and explain our independence.

Basis of opinion

We carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards.

We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance did not have material misstatements whether caused by fraud or error.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:

• determiningwhethersignificantfinancialandmanagementcontrolsareworkingandcanbereliedontoproduce complete and accurate data;

• verifyingsamplesoftransactionsandaccountbalances;

• performinganalysestoidentifyanomaliesinthereporteddata;

• reviewingsignificantestimatesandjudgementsmadebytheCouncil;

• confirmingyear-endbalances;

• determiningwhetheraccountingpoliciesareappropriateandconsistentlyapplied;and

• determiningwhetherallfinancialstatementandstatementofserviceperformancedisclosuresareadequate.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and

statement of service performance.


112

We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.

responsiBilities of the council and the auditor

The Council is responsible for preparing financial statements in accordance with generally accepted accounting practice in New Zealand. Those financial statements must fairly reflect the financial position of the University and group as at 31 December 2009. They must also fairly reflect the results of their operations and cash flows for the year ended on that date. The Council is also responsible for preparing performance information that fairly reflects the service performance achievements for the year ended 31 December 2009. The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004.

We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.

independence

When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the New Zealand Institute of Chartered Accountants.

In addition to the audit, we carried out an engagement reporting on the Vice-Chancellor’s annual declaration on the Performance-Based Research Fund external research income. This engagement is compatible with those independence requirements.

Other than the audit and this engagement, we have no relationship with or interests in the University or any of

its subsidiaries.

Julian tan

Audit New ZealandOn behalf of the Auditor GeneralDunedin, New Zealand

matters relating to the electronic presentation of the audited financial statements and performance information

This audit report relates to the financial statements and performance information of University of Otago and

group for the year ended 31 December 2009 included on the University’s website. The University’s Council

is responsible for the maintenance and integrity of the website. We have not been engaged to report on the

integrity of the website. We accept no responsibility for any changes that may have occurred to the financial

statements and performance information since they were initially presented on the website.

The audit report refers only to the financial statements and performance information named above. It does

not provide an opinion on any other information which may have been hyperlinked to or from the financial

statements and performance information. If readers of this report are concerned with the inherent risks arising

from electronic data communication they should refer to the published hard copy of the audited financial

statements and performance information as well as the related audit report dated 13 April 2010 to confirm

the information included in the audited financial statements and performance information presented on this

website.

Legislation in New Zealand governing the preparation and dissemination of financial information may differ from

legislation in other jurisdictions.

113

Summary Facts and FiguresThe 2007 summary facts and figures data include the impact of the merger with the Dunedin College of Education. 2009 figures include international Foundation Studies students for the first time. Caution is therefore advised when analysing changes between years.

student enrolments 2009 2008 2007 2006 2005

equivalent full-time students (efts)

Commerce 3,586 3,471 3,406 3,568 3,636

Health Sciences 5,310 5,150 5,122 4,690 4,618

Humanities 5,646 5,449 5,481 4,918 5,076

Sciences 4,318 4,094 4,085 4,241 4,371

Other University* 43 31 64 32 38

subtotal 18,903 18,195 18,158 17,449 17,739

Other Group EFTS** 269 134 129 131 91

total 19,172 18,330 18,287 17,580 17,830

* Other University EFTS comprise continuing education EFTS not allocated to departments within the four academic divisions.

** Other Group EFTS comprise EFTS enrolled in the Foundation Studies programme of the University subsidiary Foundation

Studies Limited. Prior to 2009 the Foundation Studies programme figure was for domestic EFTS only. In 2009 international

Foundation Studies EFTS of 158 were included.

efts by type (university only)

Domestic 16,965 16,306 16,108 15,247 15,408

International 1,938 1,889 2,050 2,202 2,331

total 18,903 18,195 18,158 17,449 17,739

enrolment By Qualification type – first programme only

Doctoral 1,264 1,158 1,074 935 829

Masters 1,093 1,056 1,048 1,052 1,108

Bachelors Honours 774 723 750 736 769

Bachelors Ordinary 13,774 13,347 13,136 12,868 12,939

Postgraduate Diplomas and Certificates 1,567 1,566 1,435 1,507 1,378

Graduate Diplomas and Certificates 358 317 494 204 392

Undergraduate Diplomas and Certificates 126 133 265 216 239

Intermediates 953 981 1,084 965 991

Miscellaneous 1,319 1,334 1,246 1,235 1,326

Sub-degree 279 137 133 135 86

total 21,507 20,752 20,665 19,853 20,057


114

2009 2008 2007 2006 2005

full-time & part-time students

Full-time 15,394 14,574 14,481 13,936 14,055

Part-time 6,113 6,178 6,184 5,917 6,002

total 21,507 20,752 20,665 19,853 20,057

female & male students

Female 12,197 11,810 11,886 11,154 11,314

Male 9,310 8,942 8,779 8,699 8,743

total 21,507 20,752 20,665 19,853 20,057

first-year & returning students

First-year 4,453 4,167 4,371 3,812 3,966

Returning 17,054 16,585 16,294 16,041 16,091

total 21,507 20,752 20,665 19,853 20,057

ethnicity of students

European/Päkeha 75.7% 76.8% 73.6% 73.4% 73.8%

Mäori 7.5% 7.3% 7.4% 6.9% 6.6%

Asian 16.9% 16.0% 16.8% 17.7% 17.2%

Pacific Islanders 3.0% 2.8% 2.8% 2.8% 2.7%

Other/Unknown 5.3% 4.4% 7.0% 6.7% 6.5%

Students who reported more than one ethnic group are counted once in each group reported. This means that the total number of responses for all ethnic groups can be greater than the total number of students who stated their ethnicities. Therefore, totals may be greater than 100%.

home area of students

Dunedin 5,380 5,214 5,218 4,915 5,022

Otago/Southland 2,162 2,123 2,195 1,910 1,987

Remainder of South Island 3,380 3,322 3,295 3,101 3,130

North Island 7,667 7,480 7,293 7,146 7,029

Overseas (including NZ Citizens Overseas) 2,674 2,446 2,658 2,768 2,851

Unknown 244 167 6 13 38

total 21,507 20,752 20,665 19,853 20,057

Note: The majority of NZ Citizens Overseas included (101 in 2009) listed their home area as Australia. Conversely, 251 of the 361 Australian Citizens who enrolled in 2009 were normally resident in New Zealand prior to commencing University study, and so listed a New Zealand home area.

115

2009 2008 2007 2006 2005

international students

Undergraduate 1,829 1,764 2,019 2,272 2,395

Postgraduate 643 588 527 387 325

total 2,472 2,352 2,546 2,660 2,720

international students by home country

USA 524 487 549 561 626

Malaysia 383 303 279 239 228

China 237 301 436 625 700

Germany 138 161 161 174 167

Canada 112 94 79 73 83

Korea (South) 86 96 89 82 74

Japan 82 84 97 85 59

India 69 53 42 29 24

Saudi Arabia 63 62 60 59 42

Brunei 60 59 46 43 41

Hong Kong 57 50 65 72 85

France 49 47 46 49 36

England 44 46 48 46 30

Thailand 36 35 39 43 45

Singapore 35 39 54 53 48

Taiwan 26 26 30 34 30

Oman 25 19 17 11 8

Fiji 24 28 28 27 41

Denmark 23 14 9 9 16

Vietnam 22 21 23 19 18

Netherlands 18 17 9 11 8

Sweden 17 14 17 18 25

Samoa 17 18 23 20 17

Bahrain 17 3 11 12 12

Other 308 277 273 268 258

total 2,472 2,352 2,546 2,660 2,720

Note: Australian,Tokelauan and Cook Islands’ students – whether resident in their home country or New Zealand prior to commencing study – are not counted as international students, and so are not included in the above figures.


116

2009 2008 2007 2006 2005

students’ accommodation status

Own home (including renting) 3,128 3,185 3,231 2,950 3,035

At parents’ home 1,385 1,422 1,409 1,282 1,284

Residential College 3,240 3,201 3,012 3,022 2,874

Private board 326 283 330 287 310

Sharing (flatting) 11,741 11,430 11,456 11,067 11,332

Other 546 553 558 499 543

Unknown 1,141 678 669 743 679

total 21,507 20,752 20,665 19,853 20,057

Home Area of First-Year Students

Dunedin 891 873 920 767 788

Otago/Southland 549 556 695 435 454

Remainder of South Island 758 768 803 644 712

North Island 1,780 1,726 1,672 1,647 1,583

Overseas (including NZ Citizens Overseas) 424 227 281 319 429

Unknown 51 17 0 0 0

total 4,453 4,167 4,371 3,812 3,966

Note: The majority of first-year NZ Citizens Overseas (14 in 2009) listed their home area as Australia. Conversely, 41 of the 61 first-year Australian Citizens who enrolled in 2009 were normally resident in New Zealand prior to commencing University study, and so listed a New Zealand home area.

117

academic attainment

2009 2008 2007 2006 2005

numBer of graduates

~ undergraduate diplomas & certificates 312 328 325 249 252

~ undergraduate degrees 3,411 3,383 3,593 3,481 3,102

~ postgraduate diplomas & certificates 851 806 787 737 764

~ postgraduate degrees 480 436 425 417 416

total university 5,054 4,953 5,130 4,884 4,534

~ Commerce Graduates 724 814 854 928 865

~ Health Sciences Graduates 1,379 1,325 1,283 1,222 1,140

~ Humanities Graduates 1,518 1,457 1,512 1,254 1,189

~ Sciences Graduates 1,292 1,204 1,347 1,307 1,156

~ Interdivisional Graduates 141 153 134 173 184

total university 5,054 4,953 5,130 4,884 4,534

degrees, diplomas and certificates completed per 100 efts enrolled

Commerce 20.2 23.5 25.1 26.0 23.8

Health Sciences 26.0 25.7 25.0 26.1 24.7

Humanities 26.9 26.7 27.6 25.5 23.4

Sciences 29.9 29.4 33.0 30.8 26.5

total 26.7 27.2 27.6 27.8 25.4

examination pass rates

Commerce 85.0% 85.4% 85.9% 85.7% 85.7%

Health Sciences 90.6% 91.3% 90.6% 91.0% 92.0%

Humanities 88.9% 88.9% 89.0% 88.4% 87.4%

Sciences 86.8% 86.3% 86.4% 86.9% 86.0%

Other (Foundation Studies) 77.3% 70.4% 69.4% 77.1% 77.1%

total pass rate 87.7% 88.1% 88.1% 88.0% 87.5%


118

staff profile

2009 2008 2007 2006 2005

full-time equivalent (fte) teaching and research staff

female

Vice-Chancellor/Senior Academic Managers 3 2 1 0 1

Professors 21 19 21 20 18

Readers/Associate Professors 31 24 17 13 15

Senior Lecturers 169 168 157 133 113

Lecturers 118 130 114 107 109

Other Teaching & Teaching/Research staff 134 142 148 118 126

Research-only staff 240 228 206 195 197

total females 716 713 664 586 579

male

Vice-Chancellor/Senior Academic Managers 5 6 7 7 6

Professors 149 137 131 124 122

Readers/Associate Professors 102 99 95 91 86

Senior Lecturers 213 221 222 241 235

Lecturers 109 121 122 122 122

Other Teaching & Teaching/Research staff 121 112 110 74 102

Research-only staff 172 179 164 162 165

total males 871 874 851 821 838

total academic & research-only staff 1,587 1,588 1,515 1,407 1,417

full-time equivalent (fte) general staff

female

Senior Managers 10 12 3 1 1

General Services, Student and Community staff 987 986 922 764 810

Librarians & Library Assistants 94 95 105 89 92

Research Support staff and Technicians 283 322 301 335 344

total females 1,373 1,414 1,331 1,189 1,247

119

2009 2008 2007 2006 2005

male

Senior Managers 23 19 13 12 10

General Services, Student and Community staff 504 500 473 451 434

Librarians & Library Assistants 17 21 24 24 24

Research Support staff and Technicians 179 195 187 167 174

total males 723 736 697 654 642

total general staff 2,096 2,150 2,028 1,843 1,889

total staff (fte) 3,683 3,737 3,543 3,250 3,306

Note: Changes to the way in which various types of general staff are categorised for reporting purposes account for some of the apparent variations in FTE staff numbers within the different categories. Significant changes have been made to the way in which the actual hours worked by part-time staff are calculated in human resources statistical reports. These changes, which took effect in 2009, have the overall effect of reducing reported FTE staff numbers, and are such that valid comparisons cannot be made between 2009 FTE staffing data and that for previous years.

student-academic staff ratios

Commerce 27.1 26.1 24.7 24.5 24.2

Health Sciences 11.5 11.7 10.1 10.5 11.1

Humanities 17.0 16.6 16.5 21.5 20.5

Sciences 16.5 15.4 15.3 16.2 16.5

Overall 15.9 15.5 14.6 16.1 16.4

research activities (revised for previous years)

research outputs produced

Commerce 309 345 355 459 375

Health Sciences 2,312 2,089 1,794 1,985 1,998

Humanities 899 836 846 809 776

Sciences 1,049 877 946 965 912

Other 5 1 3 2 2

total publications 4,574 4,148 3,944 4,220 4,063

Note: Publications are shown in the year they are reported in the University’s Research Outputs Report. Actual date of publication or dissemination may differ.

Figures for the current year are provisional, subject to final vetting. Figures for previous years are updated as appropriate to account for the impact of vetting.


120

land & Buildings

2009 2008 2007 2006 2005

land (hectares)

Land owned by the University 30 29 26 23 23

Land in Crown title for the University 9 8 9 9 9

Endowment Leasehold 25,585 25,585 25,585 25,585 25,585

total land controlled by the university 25,624 25,622 25,620 25,617 25,617

Note: Endowment land is tied up in long-term pastoral leases.

university of otago net assignable space (floor space in square metres)

Commerce 9,079 9,021 9,019 9,056 9,085

Health Sciences 66,229 65,902 64,485 61,243 61,203

Humanities 19,773 21,167 21,903 14,094 12,999

Sciences 39,013 38,046 37,627 37,626 37,633

Administration & Other 58,416 50,494 49,387 42,936 42,671

Corporate 2,923 4,439 4,492 4,446 4,445

Information Services 15,950 16,479 16,320 12,065 12,088

total 211,383 205,548 203,233 181,466 180,124

Note: University-owned flats and Residential Colleges total a further 55,700 sq m, Unipol and Clubs & Societies 4370 sq m (approx).

liBrary

library collection

Books (volumes) 1,094,165 1,091,174 975,752 958,607 920,264

Serials (volumes) 525,512 517,738 502,252 494,732 510,234

Microfilms 224,052 229,582 230,947 227,476 224,987

Non-book materials 1,218,520 1,215,442 1,196,244 1,190,299 1,183,331

total 3,062,249 3,053,936 2,905,195 2,871,114 2,838,816

Print Serials received 6,813 7,143 6,964 7,234 7,786

Electronic Serials received 111,919 73,359 72,224 70,536 61,093

total 118,732 80,502 79,188 77,770 68,879

space

Seating places available 3,698 3,681 3,553 3,403 3,379

Note: From 2008 Library collection figures include the Bill Robertson Library.

121

2009 2008 2007 2006 2005

information technology services

volume of computer and telecommunications traffic

Off-campus network traffic (Megabytes) 291,222,821 154,474,845 109,357,140 42,432,129 31,397,634

its training and support services

Enquiries received by ITS Helpdesk 60,502 51,500 47,889 39,870 37,454

Seating places in student computer laboratories 702 615 713 443 443

key financial indicators

value of output per efts

Teaching, Learning & Assessment $9,088 $9,049 $8,068 $11,067 $6,883

Research & Postgraduate Teaching $13,134 $12,772 $12,119 $8,103 $10,041

Community Service $1,112 $969 $1,284 $1,354 $1,438

2009 2008 2007 2006 2005

Consolidated Consolidated Consolidated Consolidated Consolidated

financial indicators

Current Ratio 0.9 1.2 1.3 0.8 0.9

(Current Assets: Current Liabilities)

Liquid Ratio 1.9 2.6 2.9 1.7 1.9

(Current Assets which will result in cashflow:

Current Liabilities which will result in cashflow)

Level of Debt (Debt to Equity) 2.3% 2.3% 1.7% 3.5% 3.0%

Increase in Net Assets 2.4% 2.0% 12.0% 22.3% 2.3%

Return on Total Assets 2.1% 1.3% 2.3% 2.5% 2.1%

Return on Revenue 5.5% 3.6% 6.5% 7.1% 5.3%


122

UniversityConsolidated

0

1.5

2.0

2005 2006 2007 2008 2009

1.0

0.5

2.5

3.0

LIQUID RATIO

02005 2006 2007 2008 2009

RETURN ON TOTAL ASSETS

0.5

1

1.5

2

2.5

3

%



0

0.2

0.4

0.6

0.8

1.4

2005 2006 2007 2008 2009

CURRENT RATIO

1.0

1.2

0

1

2

3

4

5

6

7

2005 2006 2007 2008 2009

RETURN ON REVENUE


%

8

Current assets: current liabilities

operating surplus as a % of total income

operating surplus as a % of total assets

Current assets which will result in cashflow: current liabilities which will result in cashflow

123


0

1.0

2.5

4.0

5.0

2005 2006 2007 2008 2009

LEVEL OF DEBT (DEBT TO EQUITY)

%

0.5

1.5

3.0

4.5

3.5

2.0

0

5,000

10,000

15,000

20,000

30,000

2005 2006 2007 2008 2009

REVENUE PER EFTS

$

20,000

25,000

18,000

22,000

26,000

2005 2006 2007 2008 2009

EXPENDITURE PER EFTS

$

20,000

16,000

24,000

28,000

0

200

400

600

1,000

1,600

2005 2006 2007 2008 2009

OPERATING SURPLUS PER EFTS

$ 800

1,200

1,400

total debt as a % of net assets

total university revenue divided by total university efts

total university expenditure divided by total university efts

university operating surplus divided by total university efts


124

0

2,000

6,000

8,000

14,000

20,000

2005 2006 2007 2008 2009

TOTAL EFTS

10,000

16,000

18,000

12,000

4,000

0

10,000

20,000

30,000

40,000

50,000

60,000

2005 2006 2007 2008 2009

TOTAL ASSETS PER EFTS

$

70,000

0

0.5

2005 2006 2007 2008 2009

RETURN ON EQUITY


%

1.0

1.5

2.0

2.5

3.0

3.5

total university assets divided by total university efts

operating surplus as a % of total equity

total domestic and international efts

UN

IVE

RS

ITY

OF

OT

AG

OA

NN

UA

L R

EP

OR

T 2

00

9T

E W

HA

RE

WA

NA

NG

A O

OT

AG

O

2009ANNUAL REPORT

2009 - university of otago · southland college of education, southland campus 100 nelson street,...

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