annual report 2011 - auckland university of technology · and the hon sir paul reeves, chancellor...

ANNUALREPORT2011

AucklAnd university of technology

manu täwhiowhio >>In many cultures the bird is a symbol of navigation.Manu Täwhiowhio or ‘bird satellite’ stands proudly at the entrance to AUT , symbolic of our role as navigator for our students, equipping them with the skills and values that will guide them toward successful careers.

welcome to auckland university of technology

[[

E ngä mana, e ngä reo, e ngä hau e whäTënä koutou katoa.

Nau mai piki mai, haere mai ki Te Wänanga Aronui o Tamaki Makau Rau.

Piki mai ki tënei Whare WänangaHaere mai ki te whiriwhiri ngä körero ka hiki tonu te möhiotangaKia tutuki ai koe ki ngä whäinga o ngä whänau me ngä iwi whänui o te ao.Tënä koutou katoa.

To the many communities of the world, greetings.

Welcome to AUT .

Come to AUT to participate in discussion and higher learning opportunities. Achieve your goals, those of your family and those of the local and international community.

Tënä koutou katoa.

To fosTer excellence, equiTy and eThics

in learning, Teaching, research and scholarship,

and in so doing serve our regional, naTional

and inTernaTional communiTies.

te whakatipu tino pükekotanga, tauriteritenga me ngä mahi tika o roto i te akomanga, whakaako, rangahau me ngä pou mätauranga me te mea hoki ka manaakitia o tätau rohe, me ngä häpori o te motu me era o täwahi.

2011 ann ual report 1

tHe Year: 2011 Acting Chancellor’sForeword................................ 2

TheCouncilofAucklandUniversity

ofTechnology....................................................... 3

Vice-Chancellor’sReport........................................ 4

OfficersofAucklandUniversity

ofTechnology....................................................... 7

FinancialReview...................................................... 8

StatementofManagement

Responsibility...................................................... 9

IndependentAuditor’sReport..............................10

outCoMeS FraMeWorK OutcomesFramework..........................................14

Whytheseimpacts?..............................................15

Evidenceofimpact................................................16

StateMent oF SerVICe perForManCe LearningandTeaching..........................................18

ResearchandDevelopment..................................23

Engagement...........................................................27

Staff.......................................................................30

Sustainability........................................................32

eQual opportunItIeS EqualOpportunities..............................................36

F InanCIal StateMentS IncomeStatement.................................................38

StatementofComprehensiveIncome.................39

BalanceSheet........................................................40

StatementofChangesinEquity...........................41

StatementofCashFlows......................................42

NotestotheConsolidated

FinancialStatements.........................................43

StateMent oF reSourCeS Library...................................................................88

InformationTechnologyServices.........................89

LandandBuildings................................................90

DIreCtorY IndustryAdvisoryCommittees............................94

ProfessionalStaff.................................................97

ResearchInstitutes...............................................99

K eY FaCtS anD FIGureS KeyFactsandFigures........................................ 102

contents

2 2011 annual repo rt

withstudentsandsecondaryschoolsacrossAucklandandtheNorthIslandtoraiseaspirationsfortertiaryeducation;wepartneredwithbusinesstoprovideexperientiallearningopportunitiesforourstudents;andwecontinuedtodeveloptheAUTMillenniumCampus.InOctober,theNationalTrainingCentreforhighperformancesportwasofficiallyopenedbyDrJacquesRogge,PresidentoftheInternationalOlympicCommittee,attheAUTMillenniumCampus.Furtherdevelopmentwillincludeexpandedhealthandmedicalfacilities,apurpose-builtrehabilitationgymandtheexpansionoftheexistinglodgetoincreaseaccommodationcapacity.

AUTCouncilmemberscommendtheUniversity’sresponsetoFebruary’sdevastatingearthquakeinChristchurch.OurparamedicalstudentsprovidedassistanceinChristchurch;theFacultyofBusinessandLawprovidedstudyspacefordisplaceddoctoralstudentsfromLincolnandCanterbury;andtheFacultyofHealthandEnvironmentalSciencesofferedsupporttoaffecteddistricthealthboards.Staffandstudentstookpartinthenationalcommemorationon1March.AuSM,AUT’sstudents’association,organisedfundraisingfortheRedCrossappealduringOrientationandstaffwereabletodonatetoappealsthroughpayroll.SomestaffalsoacceptedtheUniversity’sofferofuptofivedays’specialleavetoassistaffectedfamilymembers.AlongwiththeotherNewZealanduniversities,AUTaccepteduniversitystudentsfromtheCanterburyregionthatwishedtostudyelsewhereforpartorallof2011.

IwishtothankallCouncilmembersfortheirdedicationandexpertise.IknowtheirguidanceandadviceisvaluedbytheVice-ChancellorandhisExecutiveManagementTeam,whomanagetheUniversitysoeffectively.IhopethisAnnualReportdemonstratesthecontributionthatAUTmakesacrosssomanyfieldsandgivesyouasenseoftheexcitementwefeelaboutwhatwewillachieveforNewZealand.

Lex HenryActingChancellor

IbeginthisforewordbyacknowledgingTheRtRevdandTheHonSirPaulReeves,ChancellorofAucklandUniversityofTechnology,whodiedon14August2011.IwelcomethisopportunitytopaytributetoSirPaul’ssterlingleadershipoversix verysuccessfulyearsfortheUniversity.IworkedwithSirPaulonCouncilfromthebeginningofmytermin2008andhiscommitmenttoandvisionforAUTandwhatitseekstocontributetoAucklandandNewZealandwasborneoutinnumerousways.HeactivelyengagedwithgovernmentabouttheneedforuniversityprovisioninManukauandwasever-mindfulofAUT’soriginsasaneducationalinstituteofferingopportunitiestothosewhowereunder-representedintertiaryeducation.Mostrecently,SirPaultookaleadingroleintheearlydevelopmentofAUT’snewStrategic Plan 2012-2016andhisenthusiasmforAUT’sfuturecontributionwasboundless.HisdesiretocontinueasChancellor,evenashisillhealthbecameapparentandhereluctantlycutdownhispublicroles,wasatestamenttohiscommitmenttoAUT.HisleadershipandvisionaresorelymissedbyCouncilmembers,theExecutiveManagementTeamandthewiderAUTcommunity.Keitakumanukura,keitakupikikötuku,nohoihoräitönahäneaneatanga.

ThisAnnualReportsetsoutAUT’sperformancefor2011.Itcontainsinformationabouttheservicesweprovide,thegraduatesandresearchweproduceandthepositiveimpactwemakeforourstudents,staffandwiderstakeholders.Mostobviously,thisincludesthefutureprofessionalswedevelopandtheknowledgeandinnovationwecontributeforthebenefitofbusiness,industryandourcommunities.Wearealsoagentsofsocialjusticeandmobility,attractorsofinternationaltalentintotheAucklandregionandcontributorstotheeconomic,socialandculturalvitalityofNewZealand.

IwouldliketofocusonjustoneaspectofAUT’sactivitiesin2011,thoserelatingtoitspartnerships.Workingincollaborationwithothers,particularlyinthecurrentfiscallyconstrainedenvironment,allowsustoachievemorethanwemightotherwiseachieveonourown.In2011AUTrenewedanddevelopeditsarticulationagreementswithotheruniversitiesintheAsia-Pacificregion;wefurtheredmanyofourstrategicresearchpartnershipsandundertookconsultancyandcommercialisationactivitieswithbusinessandindustry;weengaged

Acting cHAnceLLor’s foreword


For the year ended 31 December 2011

chancellor the rt revd and the Hon sir Paul reeves ONZ,GCMG,GCVO,QSO,KSt.J,MA,LTh Co-optedmember.Deceased14August2011.

Acting chancellor Lex Henry LLB AppointedbytheMinisterofEducation

secretary to council dr Andrea Vujnovich LLB(Hons),MSc(Hons),PhDAuckland GeneralCounselandDirectorofGovernance

Members dr Pat Alley MBChB,FRACS,DipProfEthics AppointedbyAucklandUniversityofTechnologyCouncil (afterconsultationwiththeCouncilofTradeUnions)

greg campbell BCom(Hons) AppointedbytheMinisterofEducation

dr Alan cocker MA(Hons),PhDAuckland ElectedbytheacademicstaffofAucklandUniversityofTechnology

filomena davies BA(Hons),NZLSC,ALIANZA ElectedbythegeneralstaffofAucklandUniversityofTechnology

dr Henry duncan BSc,MS,PhDUCLA,DipTchg AppointedfromthenominationsofAucklandUniversityofTechnology AcademicBoard

Kizito essuman AppointedbytheAucklandStudentMovementatAucklandUniversityofTechnology

Pauline Kingi CNZM,BA,LLB,LLM,DipCrim AppointedbyAucklandUniversityofTechnologyCouncil(afterconsultation with,andfromthenominationsof,theAucklandDistrictMäoriCouncil)

Lyn Lim LLB(Hons) AppointedbytheMinisterofEducation

John Maasland MA,FIOD AppointedbyAucklandUniversityofTechnologyCouncil (afterconsultationwiththeCentralOrganisationofEmployers)

derek Mccormack MSc,DipTchg Vice-ChancellorofAucklandUniversityofTechnology

Veronica ng Lam BHSc(Podiatry) AppointedbytheAucklandStudentMovementatAucklandUniversityofTechnology

Paul Phillips BE,MBA Co-optedmember

James schofield BCom,MSc(Econ),FCA Co-optedmember

stephen stehlin BA AppointedbyAucklandUniversityofTechnologyCouncil (afterconsultationwithPacificIslandorganisationsandcommunitiesofNewZealand)

Judith thompson BSocSc,MMgt AppointedbytheMinisterofEducation

tHe counciL of AucKLAnduniVersity of tecHnoLogy


Vice-cHAnceLLor’s rePort

introduction2011wasayearofsignificantdevelopmentandachievementforAucklandUniversityofTechnology(AUT).Ourenrolmentprofilecontinuedtoshiftfurthertowardsdegreeandpostgraduatequalifications,wecelebratedtheresearchsuccessesofanumberofstaff,andendedtheyearinagoodfinancialposition.

However,thecommunityofAUTalsoexperiencedprofoundsadness.Thedeath,inAugust,ofourChancellorofthepastsixyears,SirPaulReeveswasahugelossfortheUniversity.SirPaulwasaninspirationalleaderandamanofgreatwisdom,manaandcompassion.Heissorelymissed.

our AcHieVeMentsReflectingastrongperformance,AUTachievedalltargetsassociatedwiththe$50millionSuspensoryLoanprovidedbyGovernmentin2008.AUTreceivedconfirmationoftheearlyconversionofthisloantoequityin2011.TheassociatedKPIsaddressedperformanceacrossarangeofresearchandfinancialareas,andthepositiveoutcomeisareflectionoftheUniversity’sdevelopment.

Academic performanceTheNewZealandUniversitiesAcademicAudit Unit(NZUAAU)undertookanacademicauditof AUTin2011.Thelastauditwasin2007.Theauditreportmademanysignificantcommendationsandaffirmations,includinganacknowledgementoftheUniversity’sresponsivenesstoopportunities,anditsagilityandleadershipinfurtheringitsmission.Thereportcommendedourlearningandteachingapproaches,affirmeddevelopmentofourresearchandcommendedourcommunityengagementstrategies.ItalsonotedtheUniversity’sstrengthsinpreparingstudentsforprofessionalpracticeandemployment,andthevalueplacedonthesebystudentsandemployers.Drawingondatafroma2010surveyofAustralasianuniversities,thereportnotedthatstudentshadratedAUTparticularlyhighlywithregardtoclassinteraction,activelearningandwork-relatedlearning.

ThereweresignificantdevelopmentsineachofthefivefacultiesoftheUniversity.

• TheBusinessSchoolwasawardedinternationalAACSB1accreditation(placingitwithinthetopfivepercentofbusinessschoolsworldwide)andwasrankedintheworld’stop200,inAccountingandFinance,ontheQSWorldUniversityRankings®.TheFacultyofBusinessandLawtaught4,788EFTS.

• TheFacultyofAppliedHumanitiescompletedacomprehensivereviewofitsmissionandpurposein2011,culminatinginareconceptualisationofitsroleandfunctionsandanamechangetobecometheFacultyofCultureandSocietyfromthestartof2012.TheFacultytaught3,554EFTS.

• TheFacultyforMäoriDevelopment,TeAraPoutamaachievedinternationalrecognitionthroughthelaunchoftheInternationalCentreforLanguageRevitalisationattheUnitedNations,inNewYorkCity–acentrewhichcouldbreathelifeintomanyoftheworld’sendangeredlanguages.TheFacultytaught219EFTS.

• TheFacultyofHealthandEnvironmentalSciencesshowedcontinuedleadershipandsuccess,earningsignificantresearchfunding–approximatelythreequartersoftheUniversity’stotal.TheMiddlemore-basedKoAwatea2(innovativehealthcare)partnershipwaslaunchedin2011.AUTPhysiotherapy,OccupationalTherapyandMidwiferystudentsundertookpartoftheirprogrammesthereandjointresearchprojectsgotunderwaywiththeDistrictHealthBoard.TheFacultytaught4,900EFTS.

• TheFacultyofDesignandCreativeTechnologiesstudents,graduatesandacademicstaffreceivedanextraordinarynumberofawardsin2011, including:1stand2ndplacesintheinternationalCannesYoungCreatives(advertising)competition;twoMiromodaMäoriFashionDesignAwards;winningtheBestBookDesignaward;andwinning11medalsattheBestDesignAwards–fourofthemgold.TheFacultytaught4,692EFTS.

ThequalityoftheoverallstudentexperienceisfundamentaltotheUniversity’ssuccessandAUTachievedverypleasingresultsinanumberofinternationalstudentbenchmarkingexercisesin2011.

ResearchWetakeprideinthenationalandinternationalawardsachievedbystaffin2011.ParticularmentionmustbemadeofProfessorStephenHenry,whowasawardedtheRoyalSocietyofNewZealand’sprestigiousRJScottMedal.ProfessorNikolaKasabovandProfessorAhmedAl-JumailybothreceivedMarieCurieFellowshipsfundedthroughtheEuropeanCommissionFramework7researchprogrammeandDrPaulCullen,aseniorlecturerinVisualArts,receiveda2012FulbrightNewZealandSeniorScholarAward.

1 AACSBInternationalistheAssociationtoAdvanceCollegiateSchoolsofBusiness2 KoAwateaisajointventurepartnershipbetweenCountiesManukauDistrictHealthBoard,AUT,theUniversityofAucklandandManukau InstituteofTechnology


In2011,theUniversityhaditsmostsuccessfulyeareverwithapplicationstotheMarsdenFundandtheFacultyofHealthandEnvironmentalSciencescontinueditssuccessatsecuringcontractswiththeHealthResearchCouncil.ThereweresignificantincreasesintheUniversity’sexternalresearchincomeandthenumberofresearchdegreecompletions,whilethemajorleapinthenumberofresearchoutputsthatoccurredin2010wasmaintained.

TheAustralasianbidtohosttheinternationalSquareKilometreArray(SKA)wassubmittedinSeptember.Oneofthe21stcentury’smostambitiousscienceprojects,theSKAwillconsistofaseriesofradiotelescopesspreadoverawidearea,creatingagiantradiotelescopewithadiscoverypotential10,000timesgreaterthanthebestexistinginstruments.AUThasledNewZealand’scontributiontothejointAustralasianbid.Thesite–eitherSouthernAfricaorAustralia/NewZealand–willbedecidedinApril2012.Whatevertheoutcome,AUT’sInstituteforRadioAstronomyandSpaceResearchhasdemonstratedsomeoftheopportunitiesthatradioastronomyoffersNewZealand.

StudentsOurAugustandDecembergraduationceremoniessawfirst-handwhattheexperienceatAUTmeantforthemorethan4,500graduates,theirwhänauandfriends.Itwasaprivilegetoseetheexcitementandprideofthegraduatesastheyreceivedtheirparchments.

WehavecontinuedbuildingourrelationshipwithAuSM(AucklandStudentMovementatAUT)inpreparationfortheintroductionofvoluntarystudentunionmembershipeffectivefrom1January2012.StudentswillcontinuetohaveavenuesforstudentadvocacyandsupportandarepresentativestudentvoiceinUniversitydecision-making.

EngagementAUT’sManukauCampusishelpingtomakeuniversityeducationaccessibletothepeopleofSouthAuckland.Thenewcampuscompleteditssecondyearofoperationin2011withsignificantenrolmentgrowth,andaveryhighlevelofstudentsatisfaction.ThiscontinuestobeaveryhighpriorityfortheUniversityasameansofaddressinghighereducationneedintheManukauregion.TheUniversitywelcomedPrimeMinisterJohnKeyforavisittothecampusinJuly.

InMay,wewereproudtohostAUTMäoriExpo2011,alarge-scalecelebrationofMäoriachievementinpolitics,sports,educationandtheartswhichwasattendedbyover25,000students,whänauandmembersofthepublic.Itwasadayofinspiration,empowermentandcelebrationofMäoriachievements.In2011,AUTalsopartneredwithAucklandschoolstodeliveraseriesofinnovativeengagementprojects.TheseincludedaleadershipandtertiarypreparationprogrammeforMäoristudents,aprogrammetore-engageyoungmeninlearning,andahealthscienceprogrammewhichtransitionssecondarystudentsintohealthsciencedegreesandultimatelythehealthcareworkforce

InNovember,theNationalTrainingCentreatAUTMillenniumCampuswasopenedbythePresidentoftheInternationalOlympicCommittee,DrJacquesRogge.TheNationalTrainingCentreisasuccessfulcollaborationbetweenresearchersatAUT’sSchoolofSportandRecreation,andHighPerformanceSportNewZealand.DrRoggeratesitasbeingoneofthetopthreecentresofthistypeintheworld.

InternationalIn2011,AUTmaintainedenrolmentlevelsinaverytightandcompetitiveinternationalmarket,enrollingmorethan3,000internationalstudentsfrom85countries.Thesestudentsbringarichdimensiontoourcampuslifeandtheirpresenceunderscoresourgrowinginternationalreputation.AlongwiththeUniversityofAuckland,AUTremainsoneofthetwotertiaryinstitutionsinNewZealandwiththelargestenrolmentsofinternationalstudentsatundergraduateandpostgraduatelevels.

TheUniversity’sexistingpartnershipinChinacontinuedtodevelopandanewarticulationagreementincomputingwasfinalisedwithChinaJiliangUniversity.Inaddition,newdevelopmentworkcommencedinBrazil,UruguayandArgentina,toleverageLatinAmerica’smoreactiveengagementintheAsiaPacificregion.TheMiddleEastalsoremainsasignificantgrowthareaforAUTwithongoingcurriculumdevelopmentanddeliveryintheUnitedArabEmiratesandQatar.

StaffInAugustanindependentsurveyfirm,JRA,carriedout ‘Our People Staff Survey’toestablishabase-lineofthelevelofstaffengagement,identifyanychangesneededtoimproveengagement,andallowustomonitorprogressinthefuture.OneofthemostpleasingfindingswasthestrongsenseofcommitmenttotheUniversityanditsmissiondisplayedbyAUTstaffmembers.


At72.5%,AUTstaffhaveanaboveaveragelevelofengagementwiththeUniversitycomparedtobenchmarkorganisations.OurstaffalsoexperienceastrongsenseofpersonalachievementintheirworkandarepositiveaboutlearninganddevelopmentopportunitieswithinAUT.

Facultyanddivisionleadershavefinalisedactionplansfocussingonourstrengths,opportunitiesforimprovementandpossiblechangesthataddressareasofconcern.Inadditiontoplansineachfacultyanddivision,IhavegivenmypersonalsupporttotwoUniversity-wideinitiatives:

• AnewleadershipprogrammetobeimplementedthroughPeopleandOrganisationin2012thatwillfocusonimprovingmanagers’skillsincoaching,performanceimprovement,andchangeleadership.

• CreatingopportunitiesforgreatercollaborationandcommunicationbetweendifferentpartsofAUT.

FacilitiesMajorbuildingworkbeganontheCityCampusin2011.TheWGLearningPrecinctwillprovideanadditional20,000squaremetresandwillaccommodatelecturetheatres,flexibleformalandinformallearningspaces,amediacentre,aperformancetheatreandcafes.Aswellasrespondingtostudents’learningneeds,theprecinctwillintegratethecampuswithitscitysurroundings.Thisworkwillbecompletedinearly2013.

FurthergovernmentfundingandcapitalinvestmentisneededtosupportcontinuedgrowthatAUT,particularlywithregardtobuildingacriticalmassatManukauCampusoverthenextdecade.

Enrolments2011wasthefirstyearinrecenttimesthatAUTenrolledfewerdomesticstudentsthaninthepreviousyear.Afterrecordapplicationsin2010,newprocessesandamoreguardedapproachtoadmissionswereadoptedtoavoidbreachingthehardenrolmentcapsetbytheTertiaryEducationCommission(TEC).Theapproachturnedouttobeoverlycautiousandslow(problemsthathavesincebeenaddressed)–alikelyfactorinthelowerEFTSresults.Itispossiblethattherewerealsodemographicandotherexternaleffectsonenrolmentlevels,asotheruniversitiesreportasimilarexperiencetoAUT’s.

InkeepingwithAUT’sstrategicdirection,themajorityofthedeclineinEFTSwasatpre-degreelevelwhich,in2011,constituted15%ofAUT’soverallprovision.Enrolmentsinresearchdegreescontinuedtogrowin2011,up3%from2010.

ItisworthnotingthatananalysisofMinistryofEducationdatashowsthatAUT’sgrowthanddevelopmenthavecombinedtogiveustheleadingincreasesovertheeightyearperiod,2003–2010,inbothundergraduateandpostgraduatedegreeEFTS–byactualnumbersaswellaspercentages.Forbachelor’sdegreeEFTS,AUTcontributednearlyall(87%)ofthetotaluniversitysectorincreasesince2003.ForpostgraduateEFTS,AUTisfirstequalwiththeUniversityofOtagoforincreasesinthenumberofmastersanddoctorateEFTSsince2003.

tHe future – Aut’s StRAtEgIc PlAn 2012-2016Asauniversityforthechangingworldourprimaryfocusistheeducationofourstudents,theirlearningexperienceandtheirsuccess.ThedevelopmentofourStrategic Plan 2012-2016hasinvolvedsignificantconsultationthroughthesupportandguidanceoftheCouncilandseniormanagementandconsiderableconsultationwithstaffandstudents.

Thefivestrategicthemesare:learningandteaching;researchandscholarship;staff;engagementwithcommunities;andcontinuousimprovement.

concLusionsAUTisanincreasinglypowerfulforceforlearninganddiscoverythatpromotesthewellbeingofpeopleandtheirenvironments,andprovidesthemwithopportunitiestoexpandandachievetheiraspirations.

OurprogressisinlargepartduetothediligenceandexpertiseofourCouncil,andIwouldliketoacknowledgeandthankCouncilmembersfortheirsupportandcommitmentoverthepast12months.

OurperformanceisalsoduetothesuccessofourstudentsandthepositiverelationshipthatwehavewithAuSM.InparticularIwouldliketoacknowledgetheoutstandingcontributionmadebytheretiringPresidentofAuSM,VeronicaNgLam.

Finally,IwouldliketothankallofthestafffortheircontributionsandcommitmenttoAUT,uponwhichtheUniversity’ssuccessisfounded.

derek MccormackVice-Chancellor



Vice-chancellor derek MccormackMSc,DipTchg

deputy Vice-chancellor Professor robert AllenBA(Econ),PhDEdinburgh

Pro Vice-chancellors and deans

ProVice-Chancellor(International)Dean,FacultyofAppliedHumanities

Professor nigel HemmingtonBSc(Hons),PhDSurrey,FCIM,FICPD,FIH,CharteredMarketer

Dean,FacultyofBusinessandLaw dr geoff Perry BA,MA,MPhil(Hons),PhDAuckland,DipCom,PGDipSocSci(Dstn),DipTchg

Dean,FacultyofDesignand CreativeTechnologies

desna JuryMEd(Hons),DipTchg,FDINZ,FRSA

ProVice-Chancellor(NorthShore)Dean,FacultyofHealthandEnvironmentalSciences

ProfessorMaxAbbottBA,BSc,MA(Hons),PhDCanterbury,DipClinPsych,TColDip(Dstn), MNZCCP,MRSNZ

ProVice-Chancellor(MäoriAdvancement)ProVice-Chancellor(LearningandTeaching)andDean,TeAraPoutama(FacultyofMäoriDevelopment)

AssociateProfessorPare KeihaQSO,MBA,MComLaw,MSc,PhDAuckland,FRSA,MInstD,MRSNZ

ProVice-Chancellor(Research) Professor richard BedfordQSO,MA(Hons),PhDAustralian National University,FRSNZ

ProVice-Chancellor(InnovationandEnterprise)

Professor John raineBE(Hons),PhDCanterbury, CEng,FIMechE,FIPENZ,MSAE,MASPACI

ProVice-Chancellor Professor Philip sallisBA,PhDCity(UK),FNZCS,MRSNZ,MACM,MIEEE

ProVice-Chancellor Professor ian shirleyMA(Hons),PhDMassey

general Managers

CorporateServices richard HallOBE,MNZM,MAFinanceandEstates JudithMcKayBA,BCom,CA,MInstD,MNZSCTUniversityRelations VivienBridgwaterDipTchg

general counsel dr Andrea VujnovichLLB(Hons),MSc(Hons),PhDAuckland

internal Auditor Alastair BurrowsCFIIA,AIIA(NZ)

Bankers AnZ national Bank Limited

Auditor Audit new Zealand on behalf of the Auditor-general

officers of AucKLAnduniVersity of tecHnoLogy


finAnciAL reViewFor the year ended 31 December 2011

Key finAnciAL indicAtors un i v ersi ty 2011 2011 2010

Actual Budget Actual

operations $000s $000s $000s

total revenue 298,455 294,355 287,391

total expenses before finance costs 285,860 275,735 265,496

surplus before finance costs 12,595 18,620 21,895

finance costs

Interestonborrowings 1,171 1,174 1,072

Financechargesonfinanceleases 2,203 2,446 2,476

total finance costs 3,374 3,620 3,548

total expenses 289,234 279,355 269,044

net surplus 9,221 15,000 18,347

cash flows

Operatingcashreceipts 306,670 295,300 291,724

Operatingcashpayments 251,360 248,346 232,780

net cash flows 55,310 46,954 58,944

Property, plant & equipment – net book value 495,198 488,745 464,525

debt

Bankborrowings 40,594 44,700 33,550

Financeleases–current 5,320 5,905 5,079

Financeleases–term 35,115 36,892 36,851

total debt 81,029 87,497 75,480

equity 364,078 374,491 354,850

operating ratios

Netsurplus/revenue 3.1% 5.1% 6.4%

Cashratio 122% 119% 125%

Interestcoverratio 3.7 5.1 6.2

capital ratios

Debtcoverratio 1.5 1.9 1.3

Debt/debt+equity 18% 19% 18%



IntermsoftheEducationAct1989andtheCrownEntitiesAct2004wecertifythat:

WehavebeenresponsibleforthepreparationofthesestatementsofserviceperformanceandthesefinancialstatementsforAucklandUniversityofTechnologyandGroupandthejudgementsusedtherein;and

Wehavebeenresponsibleforestablishingandmaintainingasystemofinternalcontroldesignedtoprovidereasonableassuranceastotheintegrityandreliabilityofperformancereportingandfinancialreporting;and

WeareoftheopinionthatthesestatementsofserviceperformanceandthesefinancialstatementsfairlyreflectthefinancialpositionforAucklandUniversityofTechnologyandGroupat31December2011andtheresultsoftheoperationsfortheyearended31December2011.

Lex Henry derek Mccormack ActingChancellor Vice-Chancellor

26March2012

stAteMent of MAnAgeMentresPonsiBiLity

10 2011 annual rep o rt

indePendent Auditor’s rePort

To the readers of Auckland University of Technology and group’s financial statements and statement of service performancefor the year ended 31 December 2011

TheAuditor-GeneralistheauditorofAucklandUniversityofTechnology(theUniversity)andgroup.TheAuditor-Generalhasappointedme,LeonPieterse,usingthestaffandresourcesofAuditNewZealand,tocarryouttheauditofthefinancialstatementsandstatementofserviceperformanceoftheUniversityandgrouponherbehalf.

Wehaveaudited:

• thefinancialstatementsoftheUniversityandgrouponpages37to85,thatcomprisethebalancesheetasat31December2011,theincomestatement,statementofcomprehensiveincome,statementofchangesinequityandstatementofcashflowsfortheyearendedonthatdateandthenotestothefinancialstatementsthatincludeaccountingpoliciesandotherexplanatoryinformation;and

• thestatementofserviceperformanceoftheUniversityandgrouponpages17to34.

oPinionInouropinion:

• thefinancialstatementsoftheUniversityand grouponpages37to85:

–complywithgenerallyacceptedaccounting practiceinNewZealand;and

– fairlyreflecttheUniversityandgroup’s:

• financialpositionasat31December 2011;and

• financialperformanceandcashflowsfor theyearendedonthatdate;

• thestatementofserviceperformanceoftheUniversityandgrouponpages17to34fairlyreflectstheUniversityandgroup’sserviceperformanceachievementsmeasuredagainsttheperformancetargetsadoptedfortheyearended31December2011.

Ourauditwascompletedon26March2012. Thisisthedateatwhichouropinionisexpressed.

Thebasisofouropinionisexplainedbelow.Inaddition,weoutlinetheresponsibilitiesoftheCouncilandourresponsibilities,andweexplainourindependence.

BAsis of oPinionWecarriedoutourauditinaccordancewiththe Auditor-General’sAuditingStandards,whichincorporatetheInternationalStandardsonAuditing(NewZealand).Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandcarryoutouraudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsandstatementofserviceperformancearefreefrommaterialmisstatement.

Materialmisstatementsaredifferencesoromissionsofamountsanddisclosuresthatwouldaffectareader’soverallunderstandingofthefinancialstatementsandstatementofserviceperformance.Ifwehadfoundmaterialmisstatementsthatwerenotcorrected,wewouldhavereferredtotheminouropinion.

Anauditinvolvescarryingoutprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatementsandstatementofserviceperformance.Theproceduresselecteddependonourjudgement,includingourassessmentofrisksofmaterialmisstatementofthefinancialstatementsandstatementofserviceperformance,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheUniversityandgroup’spreparationofthefinancialstatementsandstatementofserviceperformancethatfairlyreflectthematterstowhichtheyrelate.Weconsiderinternalcontrolinordertodesignauditproceduresthatareappropriateinthecircumstancesbutnotforthepurposeofexpressinganopinionontheeffectivenessof theUniversityandgroup’sinternalcontrol.

an audit also involves evaluating:

• theappropriatenessofaccountingpoliciesusedandwhethertheyhavebeenconsistentlyapplied;

• thereasonablenessofthesignificantaccountingestimatesandjudgementsmadebytheCouncil;

• theadequacyofalldisclosuresinthefinancialstatementsandstatementofserviceperformance;and

• theoverallpresentationofthefinancial statementsandstatementofserviceperformance.

Wedidnotexamineeverytransaction,nordoweguaranteecompleteaccuracyofthefinancial statementsandstatementofserviceperformance.

2011 annual report 11

Leon PieterseAuditNewZealandOnbehalfoftheAuditor-GeneralAuckland,NewZealand

Wehaveobtainedalltheinformationandexplanationswehaverequiredandwebelievewehaveobtainedsufficientandappropriateauditevidencetoprovideabasisforourauditopinion.

resPonsiBiLities of tHe counciL TheCouncilisresponsibleforpreparingfinancialstatementsthat:

• complywithgenerallyacceptedaccountingpracticeinNewZealand;and

• fairlyreflecttheUniversityandgroup’sfinancialposition,financialperformanceandcashflows.

TheCouncilisalsoresponsibleforpreparingastatementofserviceperformancethatfairlyreflectstheUniversityandgroup’sserviceperformanceachievements.

TheCouncilisresponsibleforsuchinternalcontrolasitdeterminesisnecessarytoenablethepreparationoffinancialstatementsandastatementofserviceperformancethatarefreefrommaterialmisstatement,whetherduetofraudorerror.

TheCouncil’sresponsibilitiesarisefromtheEducationAct1989andtheCrownEntities Act2004.

resPonsiBiLities of tHe Auditor Weareresponsibleforexpressinganindependentopiniononthefinancialstatementsandstatementofserviceperformanceandreportingthatopiniontoyoubasedonouraudit.Ourresponsibilityarisesfromsection15ofthePublicAuditAct2001andtheCrownEntitiesAct2004.

indePendenceWhencarryingouttheaudit,wefollowedtheindependencerequirementsoftheAuditor-General,whichincorporatetheindependencerequirementsoftheNewZealandInstituteofCharteredAccountants.

Otherthantheaudit,theperformance-basedresearchfundingexternalresearchincomeengagementandtheauditsofthegroupsubsidiaries,wehavenorelationshipwithorinterestsintheUniversityoranyofitssubsidiaries.

MAtters reLAting to tHe eLectronic PresentAtion of tHe Audited finAnciAL stAteMents And stAteMent of serVice PerforMAnce ThisauditreportrelatestothefinancialstatementsandstatementofserviceperformanceofAucklandUniversityofTechnology(theUniversity)andgroupfortheyearended31December2011includedontheUniversityandgroup’swebsite.TheUniversity’sCouncilisresponsibleforthemaintenanceandintegrityofUniversityandgroup’swebsite.WehavenotbeenengagedtoreportontheintegrityofUniversityandgroup’swebsite.Weacceptnoresponsibilityforanychangesthatmayhaveoccurredtothefinancialstatementsandstatementofserviceperformancesincetheywereinitiallypresentedonthewebsite. Theauditreportrefersonlytothefinancialstatementsandstatementofserviceperformancenamedabove.Itdoesnotprovideanopiniononanyotherinformationwhichmayhavebeenhyperlinkedtoorfromthefinancialstatementsandstatementofserviceperformance.Ifreadersofthisreportareconcernedwiththeinherentrisksarisingfromelectronicdatacommunicationtheyshouldrefertothepublishedhardcopyoftheauditedfinancialstatementsandstatementofserviceperformanceaswellastherelatedauditreportdated26March2012toconfirmtheinformationincludedintheauditedfinancialstatementsandstatementofserviceperformancepresentedonthiswebsite.LegislationinNewZealandgoverningthepreparationanddisseminationoffinancialinformationmaydifferfromlegislationinotherjurisdictions.


outcoMes frAMeworK


AucklandUniversityofTechnology,individuallyandcollectivelywithNewZealand’ssevenotheruniversities,contributessignificantlytowardshelpingNewZealandachieveitseconomicandsocio-culturalgoals.ThefollowingschematicidentifiesthethreeprimaryoutcomesAUTseekstoachieveinconjunctionwiththeotheruniversities(seethelightpurplebox).ItalsodepictshowtheUniversity’sresources,processesandactivities,includingGovernmentinvestment,feedintotheseoverarchingoutcomes.TheschematicprovidesastructureforreportingontheUniversity’smedium-termgoalsandannualperformancethroughtheStatementofServicePerformance(seepages17-34).AUT’sOutcomesFrameworkreflectsthebroadthematicareasofitsStrategic Plan 2007-2011;in2011,italsounderpinnedthedevelopmentoftheUniversity’snewStrategic Plan 2012-2016.AUTplanstomakethreekeyimpacts(seethedarkpurplebox)throughtworelatedsetsofactivities–thosedirectedspecificallyatmeetingtheprioritiesidentifiedintheTertiary Education Strategy (TES) 2010-2015andthosethattheUniversityundertakestomeetitsownmissionandroles.

Outcomes

Intermediate

impacts

Outputs

Enablers

Learning and teaching

Graduates successfully

completing qualifications

Strategic theme 1

Research and development

Research outputs

Research degree

completions

Knowledge transfer

Commercialisation

Strategic theme 2

Community engagement

Raising aspirations for

higher education

Leading public debate

Local, national and

international partnerships

Strategic theme 3

Graduates who are

advanced

practitioners, highly

sought after and

who will make an

impact

Research that is

valued for

advancing and

applying knowledge

and professional

practice

Increased

participation in

higher education for

New Zealanders, in

particular Māori and

Pasifika

Contributing to

the sustainable use and

enhancement of the

environment

Contributing to rewarding

and fulfilled lives for

individuals and a more

engaged and inclusive

society

Contributing to New

Zealand’s economic

development

Strategic theme 5

Systems and

processes

Resources and

infrastructureReputation

Sustainability

Staff

Strategic theme 4

Community and

business engagement

programmes

Curriculum

Research and

development

programmes

TES Priority

Improved

educational and

financial

performance

TES Priorities

More young

people with Level

4 qualifications

Increased Māori

student success

Increased

Pasifika student

achievement

Greater transition

from school to

tertiary education

Strengthened

research

outcomes


wHy tHese iMPActs?iMPAct one u graduates who are advanced practitioners, highly sought

after and who will make an impact

RecentOECDreportshavedemonstratedtheimportanceofuniversity-leveleducation,toboththeindividualswhoparticipateinitandtotheregionalandnationaleconomiesinwhichitisdelivered3.Theevidenceclearlyidentifiesthatpublicandprivatereturnsaregreaterforundergraduateandpostgraduatedegreeprogrammesthanforpre-universitypost-secondaryprogrammes.Highereducationleadstoincreasedincomelevelsandcareerpossibilities,aswellasbetterjobsecurityforindividuals;italsobuildsthenecessaryproductiveskillsbasetodriveeconomicgrowthandimprovehealthandsocialoutcomes.

iMPAct two u research that is valued for advancing and applying knowledge and professional practice

ResearchgreatlybenefitsNewZealandersifitisvalued,takenupandapplied.Disseminatingknowledgeenhancesopportunitiestotranslateitintonewproductsorservices,oruseresearchfindingsforpolicyformulationorprofessionalpractice.AsNewZealand’sonlyuniversityoftechnology,AUThasalwayshadanappliedandpractice-basedemphasistoitsresearch;itengageswithanincreasingnumberofprivatesectorresearchclients,largeandsmall,acrosstherangeofindustriesandcontinuouslydevelopsandstrengthensitslinkageswiththeinternationalresearchcommunity.Suchpartnership’sallowAUTtoleveragefunding,shareexpertiseandresources,andachievemutually-beneficialgoals.

iMPAct tHree u increased participation in higher education for new Zealanders, in particular Mäori and Pasifika

SuccessiveNewZealandgovernmentshaveaimedtoincreasethenumberofyoungpeopleinhighereducation;theyrecognisethatawell-educatedcitizenryisthefoundationofsocialequity,engagementandinclusion,anddeterminesanation’ssuccessfulparticipationintheglobalknowledgeeconomy.AUThasshownthehighestgrowthofanyNewZealanduniversityintermsofitsdegreeenrolmentsoverthelastdecadeandremainscommittedtobroadeningaccessforthosewhohavebeenhistoricallyunder-representedintertiaryeducation.Auckland’sMäoriandPasifikacommunitiesaregrowingquicklyandhaveyoungeraverageages;theirimprovededucationaloutcomesarecriticalforAucklandandNewZealandastheywillrepresentalargerproportionofNewZealand’sfutureworkforce.

3 SeeEducationataGlance:OECDIndicatorspublishedannuallybytheOECD,Paris


eVidence of iMPAct examples from 2011

impact one – graduates impact two – research impact three – Participation

SchoolofCommunicationsgraduateswonnineseparateawardsin2011includinganAsiaNewZealandFoundationmediascholarship;thecovetedSupremeAwardatthePublicRelationsInstituteofNewZealand;theSallyLogan-MilneYoungPractitioneroftheYearaward;andthenational2011FairfaxMediayoungprintLionsaward.EachawardisnoteworthybuttogethertheyprovidegoodevidenceofthesuccessofAUT’sCommunicationsprogrammesinpreparingstudentsfortheirprofessionalcareers.

In2011,AUTgraduatesalsowonprizesin:design(theindustrialdesigncategoryofthe2011Australasianstudentdesignawards);medicallaboratoryscience(theNZInstituteofMedicalLaboratorySciencePrize,theDiagnosticMedlabPrize,theBeckmanCoulterPrizeforoutstandinggraduateinHaematology);appliedscience(theFletcherTrustAwardforbestresearchproject,theMacartneyPrizeformostoutstandingBAppScigraduateinfoodscience);andadvertising(NZPoststudentmarketersoftheyear).

AUTalumnusMarkD’ArcyjoinedFacebookin2011asitsdirectorofglobalcreativesolutions.

SeventeenprivatesectorclientsdirectlyfundedAUTresearchin2011includingorganisationsintheareasof:sports(RugbyWorldCup,FootballNewZealand,ASICS);healthcare(BayerHealthCare,FisherandPaykelHealthcare,NewZealandSocietyofPhysiotherapists,LivingHealthyLtd,CavitABI);foodandbeverages(Fonterra,FrucorBeveragesLtd);manufacturing(NationalAluminiumLtd);andcivilcontracting(FultonHogan).

Newcommercialresearchfundingin2011(valuedat$100,000ormore)includedaTechnologyTransferVoucherprojectwithFultonHogantodevelopaRoadTextureDepthMonitor,ASICS’fundingoftheAUTPodiatryClinic,andworktomonitorandmodelswimperformanceforHighPerformanceSportNZ.AUTalsoreceivedfundingforseveralTechnologyforIndustryFellowshipsandwascommissionedtodevelopaninteractivedigitalartgalleryguidefortheAucklandArtGallery.

BasedonA*rankedjournalsinfinanceandaccounting(themostinfluentialjournalsinthefield),AUT’sAccountingandFinancedepartmentswererankedtenthinAustraliaandNewZealand.

AUTismakingarealcontributiontoAuckland’snetworkoftertiaryeducationprovision,particularlythroughthenewManukauCampus.2011markedthecompletionofthesecondfullyearatManukauCampus.Enrolmentsatthecampusexceededthe2011targetof464andtheCampuswasparticularlysuccessfulatattractingMäoriandPasifikastudents.

AUTcontinueditstrendofincreasingtheproportionofstudentsagedunder25(63%in2011).WhileMäoriandPasifikaproportionsofthestudentbodyremainedstaticin2011,therewasstronggrowthintheproportionofMäoristudentsinhighereducation,up5%to87%in2011.TheproportionofPasifikastudentsinhighereducationrose4%to70%in2011.

InitialfindingsfromtheevaluationofAgents of Change,AUT’sstudentengagementprogramme,showeditwaseffectiveinpreparingNewZealandsecondarystudentsfortheirfutureandraisingaspirationsfortertiarystudy.


stAteMent of serVice PerforMAnce

AucklandUniversityofTechnology’sStrategic Plan 2007-2011outlinestheUniversity’sstrategicdirectionforafiveyearperiod.Itincludeshigh-levelinformationontheorganisation’spurposeandrole,aswellasthenatureandscopeofitsoperationsanditsfitwiththeGovernment’slong-termobjectives.FivekeythemesguidetheUniversity’sdevelopment–LearningandTeaching,ResearchandDevelopment,Engagement,StaffandSustainability.Fromthese,asetofassociatedobjectivesandCriticalSuccessFactorsdefinetheimpactsandoutcomestheUniversitystrivesfor.SomeareexternallyfocussedwhileothersrelatetoaspectsoftheUniversity’soperations.AUT’seffectivenessisthenmeasuredbyaseriesofkeyperformanceindicators(KPIs).ThesearerecordedintheUniversity’sInvestment Plan 2011-2013.BasedonAUT’sstrongperformanceinmeetingthegoalsoftheStrategic Plan 2007-2011,andinadvanceoffinalisingitsnewStrategic Plan 2012-2016,theUniversitysetsomeambitioustargetsforitsKPIsfortheperiod2011-2013.2011isthefirstyearthattheUniversitywillbereportingagainstthissetofindicators.

ThefollowingStatementofServicePerformancecontainsinformationontheUniversity’sobjectives,CriticalSuccessFactorsandKPIsinordertodocumenttheservicesprovidedbyAUTtomeetstakeholderneedsandtoensuretheintentoftheStrategic Planisfulfilled.ForanoverallviewoftheperformanceoftheUniversity,theStatementofServicePerformancesectionmustbereadinconjunctionwiththesectionentitled ‘The Year: 2011’.


LeArning And teAcHing strAtegic tHeMe u Auckland university of technology will provide excellent education that inspires students to reach their full potential.

criticAL success fActors 1, 2 And 5 uto be the best place to learn u to consolidate our higher education contribution u to sustain the quality and relevance of our curriculum

oBJectiVes uto ensure our graduates are knowledgeable, sought after and inspirational uto enhance curriculum flexibility and increase student choice uto build and broaden discipline strengthsuto encourage students to progress to, and be successful in, higher education programmes uto ensure that the learning experience is of high quality

AucklandUniversityofTechnologyoffersanactive,flexibleandwork-integratedlearningexperience;onethatinspirescreativity,curiosityandresourcefulnessinourgraduates.Corelearningandteaching,researchandcommunityengagementactivitiesareinterrelatedsothateachinformsandenrichestheother,resultingingraduateswhoareequippedwiththeskillsandknowledgetomakeapositiveimpactonandfortheircommunities.

TheAcademicAuditpanelvisitedAUTinJune2011,holdinginterviewswithvariousstaff,studentandotherstakeholdergroups.ThesubsequentreportdescribedAUT’slearningandteachingframeworkas“comprehensiveandambitious”,andcommendedtheUniversityforitsstrongemphasisonlearningspacesandadvancedtechnologiestoenhancethestudentlearningexperience.TheAuditpanelalsocommendedtheuseofAnnualProgrammeReportsaspartoftheUniversity’squalityassuranceandenhancementgoals.AUTwaspraisedforitscommitmenttoattractingandsupportingstudentsfromtraditionallyunder-representedgroupsandforitssupportofstudentsthroughtheFirst-YearExperienceprogrammeandtheStudentMentorProgrammes.

AUT’sBusinessSchoolgainedaccreditationfromtheinternationallyprestigiousAssociationtoAdvanceCollegiateSchoolsofBusiness(AACSB).Thisisanoutstandingachievement;AACSBaccreditationistheinternationalhallmarkofexcellence,placingtheschoolinthetopfivepercentinternationally.AACSBInternationalexpressedaparticularinterestintheschool’sbusinessinternships,auniqueworkplacementprogrammethatprovidesstudentswithhands-onbusinessexperience.

OtherbenchmarkingexercisesalsocommendedthelearningandteachingenvironmentatAUT.TheAustralasian Survey of Student Engagement (AUSSE) surveyedAUTstudentsandinvestigatedareassuchasactivelearning,academicchallenge,higherorderthinkingandcareerreadiness.AUTachievedconsistentlyaboveaverageresultswhencomparedwithbothotherNewZealanduniversities,anduniversitiesfromtheAustralianTechnologyNetwork.AUTalsoparticipatedinthe2011 International Student Barometer (ISB)survey.Onceagain,theUniversityachievedpleasingresults;participantsrecognisedAUT’sholisticapproachtolearningandteaching,andon-arrival,learning,livingandsupportservicesallratedhighly.Theseachievementsaretimely,asteachingandstudentsupportreceivegreaterscrutinythaneverbefore.

Improvingtheacademicreadinessoffirst-yearstudentsenteringAUTwasakeyfocusfor2011.TheUniversityundertookaprojectontertiaryreadinessofstudents,establishingaprotocolforidentifyinghigh-priorityorat-riskstudentsbasedonapplicationdata.Thisenabledtailoredandproactiveservicesandpersonalassistancewheretheneedwasgreatest.ThisworkbuiltontheUniversity’sin-depthorientationandtransitionprogrammes.

Inadditiontoacademicsuccess,AUT’sexperientiallearningprogrammepreparesstudentsforafulfillingandrewardingcareer.AswasnotedbytheAACSBreviewers,theprofessionallyorientedcurriculumisadistinctiveandvaluablefeatureofundergraduatestudyatAUT.Throughco-operativeeducation,clinicalplacementsandinternships,studentsgainreal-worldexperienceandcrucialtraininginmodernworkplaceskillssuchasteamwork,businessawarenessandcommunication.


ProjectsalignedwithAUT’sLearningandTeachingEnabledbyTechnology(LATENT)strategyin2011includedatrialofdigitalrecordingsoflearningcontenttopromotestudentengagement,exploringtheuseofi-Padsinteachingandlearning,andtheprovisionofaprototypeblendedlearningspacetosupportthedevelopmentofthenewWGLearningPrecinct.

Duringtheyear,AUT’sInstitutionalResearchUnitpublishedtheresultsofits2010Postgraduate Research Experience Survey.ExcellentandefficientresearchsupervisionisanessentialcomponentoftheteachingenvironmentandAUThascommittedtogatherfeedbackfrompostgraduatestudentsonaregularbasis,inordertocontinuouslyimprovesupervisorypractices.Overall,77%ofrespondentsindicatedtheyweresatisfiedwiththeirresearchexperienceatAUT.Studentsweremostsatisfiedwiththewaytheirsupervisortreatedthemasanadultlearnerandcolleague(94%)andtheirsupervisor’senthusiasmfortheirresearcharea(93%).

Akeyfactorunderpinningalltheseresultsin2011wasAUT’senthusiasticandinspirationalstaff,bothacademicandadministrative.TheannualVice-Chancellor’sAwardsforExcellenceinTeachingrecognisetheoutstandingcontributionofteachingstafftotheUniversity.The2011winnerswereRouxelledeVilliers,FacultyofBusiness&Law;LexieMatheson,AppliedHumanities;DrRoyNates,Design&CreativeTechnologies;andAssociateProfessorDavidRobie,Design&CreativeTechnologies.Allwerecommendedfortheirsustainedcommitmenttoexcellentteaching,theirinnovativeandstudent-centredpractices,andtheirpositiveinfluenceontheircolleagues.

GraduationisalwaysahighlightoftheyearatAUT;achancetocelebratethesuccessofstudentsandthewiderUniversitycommunity.Thisyear,morethan4,500graduatesattendedtheceremoniesheldinAugustandDecember.Thisincluded40doctoralstudents,evidenceofthecontinuinggrowthofAUT’sresearchprogramme.

PerforMAnce MeAsures

Key performance indicators Target Actual Actual Actual EFTS 2011 2011 2010 2009

1.1.1 Domesticstudents 15,618 15,057 15,489 14,833

1.1.2 Internationalstudents 2,400 2,369 2,445 2,257

Notachieved

ThedomesticEFTStargetof15,618wasnotreachedin2011.StudentnumbersatAUTwerethehighestinitshistoryin2010andledtoconcernsaboutbreachingtheGovernment’slimitonenrolments.Anew,centrallymanagedadmissionssystemwasintroducedin2011toensuretheUniversitystayedwithinthedomesticenrolmentslevelssetbytheTertiaryEducationCommission(TEC).Thisproducedanovercautiousapproachtoadmissionssofeweroffersofplaceweremadethanwaswarranted.ThemajorityofthedeclineinEFTSwasatpre-degreelevel(down4%from2010).UndergraduateEFTSincreasedto75%ofallfundedEFTS(up4%from2010)andpostgraduateEFTSremainedstableat12%ofallfundedEFTS.Overall,thistrendofdecliningpre-degreeEFTSisconsistentwiththeUniversity’scommitmenttoincreasestudyatdegreelevelandabove.

The2011targetof2,400Internationalstudentswasnarrowlymissed.Aswithdomesticstudents,themajorityofthedeclinewasatpre-degreelevel(down2%to11%in2011).

1.1 Tomeetenrolmenttargets.


PerforMAnce MeAsures (continued)

Key performance indicators Target ytd Actual Actual 2011 2011 2010 2009

1.2.1 AucklandUniversity 84% 82.1% 81.4% 81.0% ofTechnologyaverage

1.2.2 Agedunder25years 84% 81.4% 80.8% 80.2% (level4andabove)

1.2.3 Mäori(level4andabove) 78% 78.5% 76.8% 76.8%

1.2.4 Pasifika(level4andabove) 68% 68.9% 68.0% 65.4%

1.2.5 International5 85% 83.4% 83.7% 84.0%

Partiallyachieved(basedonprovisionalresults)

2011provisionalresultsarecalculatedusingtheTECWorkspace.Finalresultsfor2011willnotbeavailableuntilaftersubmissionoftheUniversity’sAprilSingleDataReturn(SDR).AUT’s2010provisionalaveragecoursecompletionresultsimprovedbyonepercentagepointwhenthefinal2010resultswerereleasedbytheTECin2011.

All2011provisionalresultsfordomesticstudentsimprovedon2010performance.Positively,AUThasexceededitstargetsforMäoriandPasifikaatlevels4andabove;Mäoriresultsinparticulararepleasing,up1.7percentagepointsonthepreviousyear.ItisnotpossibleatthisstagetodeterminewhetherAUTwillmeetits2011targetsforoverallcoursecompletionandforstudentsagedunder25years.

TheprovisionalfigureforInternationalstudentsiscalculatedusingAUT’sinternaldatasourcesandisthereforenotdirectlycomparabletoothercoursecompletionrates.The2011resultforInternationalstudentsissubjecttochangeandwillbefinalisedafterthesubmissionoftheAprilSDR.

1.2 Tomaintainorimprovethesuccessfulcoursecompletionratesofourstudents.4

4 Performancemeasures1.2,1.3,1.5and1.6areallTECeducationalperformanceindicatorsandprovideonemeasureoflearningandteaching performanceatAUT5 ResultsforInternationalstudentsarenotavailableontheTECWorkspace(whereallotherprovisional2011dataisheld).FiguresforInternational studentsarecalculatedusingtheUniversity’sDecember2011SDRfileandexcludemoduleswithanend-dateof2012


Key performance indicator Target Actual Actual Actual 2011 2011 2010 2009

1.4.1 Percentageofstudentsin ≥90% 92% 91% 93% employmentorfurtherstudy

Achieved

1.4 Toensureatleast90%ofAUTgraduatesareinemploymentorfurtherstudysixmonthsaftergraduating.

Key performance indicators Target ytd Actual Actual 2011 2011 2010 2009

1.3.1 AucklandUniversityof 67% 64.2% 62.7% 66.4% Technologyaverage

1.3.2 Agedunder25years 64% 59.2% 59.8% 62.4% (level4andabove)

1.3.3 Mäori(level4andabove) 60% 57.4% 52.8% 59.0%

1.3.4 Pasifika(level4andabove) 50% 47.3% 45.6% 43.1%

1.3.5 International6 77% 65.1% 71.6% 76.0%

Notachieved(basedonprovisionalresults)

2011provisionalresultsarecalculatedusingtheTECWorkspace.FinalresultswillnotbeavailableuntilaftersubmissionoftheUniversity’sAprilSDR.AUT’s2010provisionalaveragequalificationcompletionresultsimprovedbyfourpercentagepointswhenthefinalresultswerereleasedbytheTECin2011.QualificationcompletionratesinparticulararesubjecttochangeduetotheUniversity’sSummerSchoolprovisionandco-operativeeducationmoduleswhichoftentakeplaceoverthesummerperiod.

AUT’sprovisional2011performanceshowsimprovedqualificationcompletionratesforallgroupsapartfromthoseagedunder25whichremainedstatic.AUTcontinuestoraiseconcernswithTECregardingthemethodusedtocalculatequalificationcompletion;thestrongenrolmentgrowthexperiencedin2009and2010islikelytoimpactnegativelyontheUniversity’squalificationcompletionratesin2010and2011.

TheprovisionalfigureforInternationalstudentsiscalculatedusingAUT’sinternaldatasourcesandisthereforenotdirectlycomparabletootherqualificationcompletionrates.The2011resultforInternationalstudentsissubjecttochangeandwillbefinalisedafterthesubmissionoftheAprilSDR.

1.3 Tomaintainorimprovethequalificationcompletionratesofourstudents.

6 ResultsforInternationalstudentsarenotavailableontheTECWorkspace(whereallotherprovisional2011dataisheld).FiguresforInternational studentsarecalculatedusingtheUniversity’sDecember2011SDRfileandexcludemoduleswithanend-dateof2012



Key performance indicator Target ytd Actual Actual 2011 2011 2010 2009


Achieved(basedonprovisionalresults)

2011provisionalresultsarecalculatedusingtheTECWorkspace.Thefinalresultwillnotbeavailableuntilmid-2012,aftersubmissionoftheUniversity’sAprilSDR.AUT’s2010provisionalaverageprogressionrateimprovedbytwopercentagepointswhenthefinalresultswerereleasedbytheTECin2011.

TheUniversity’sprovisional2011progressionrateof80.1%exceededthe2011targetandsignificantlyimprovedon2010performance.

1.6 Tomaintainorimprovetheprogressionratefromfoundationleveltoundergraduatelevelcourses.

Key performance indicators Target Actual Actual Actual 2011 2011 2010 2009

1.7.1 Percentageofstudents ≥80% 84% 83% 84% whowouldrecommendAUT toothers

1.7.2 Percentageofstudents ≥80% 79% 80% 81% whowouldrecommendtheir programmeofstudytoothers

Partiallyachieved

AUT’sinternalmeasurementofstudentsatisfactionviatheAnnual Programme Survey(APS)reflectedtheUniversity’sperformanceonexternalbenchmarkingtoolssuchasAUSSEandtheISB;84%ofAUT’sstudentswouldrecommendtheUniversitytoothers.The2011targetof80%ormoreofstudentsrecommendingtheirprogrammeofstudywasnarrowlymissedalthoughthefigureremainedhighat79%andwasnotsignificantlydifferentfromthepreviousyear.AUTwillcontinuetodevelopcustomised,faculty-specificProgrammeActionReportswhichfocusonpriorityareasidentifiedintheAPS.Thereportsareusedtodevelopfacultyordepartmentalactionplansandthestudentexperienceofthoseprogrammesisthentrackedinsubsequentsurveystoensureactionshavebeeneffective.Inthisrespect,thefeedbackprovidedbystudentsplaysacriticalroleinAUT’scommitmenttocontinuousqualityassuranceandimprovement.

1.7 Toensureatleast80%ofstudentsaresatisfiedwithAUT.


Key performance indicator Target ytd Actual Actual 2011 2011 2010 2009


Notachieved(basedonprovisionalresults)

2011provisionalresultsarecalculatedusingtheTECWorkspace.FinalresultswillnotbeavailableuntilaftersubmissionoftheUniversity’sAprilSDR.AUT’s2010provisionalaveragestudentretentionrateimprovedbyonepercentagepointwhenthefinalresultswerereleasedbytheTECin2011.

The2011provisionalstudentretentionrateof79.0%remainedatasimilarleveltopreviousyears.

1.5 Tomaintainorimprovethestudentretentionrate.


reseArcH And deVeLoPMent strAtegic tHeMe u Auckland university of technology will conduct excellent research, advancing knowledge and practice in its areas of expertise and supporting its higher education programmes.

criticAL success fActors 2, 3 And 4 uto consolidate our higher education contribution u to enhance our research contribution u to enhance our international reputation

oBJectiVes uto increase research activity uto enhance our research reputationuto ensure research activity is sustainable

TheUniversityhasmadeimpressivestridesindevelopingitsresearchcapabilitiesoverthelastdecade,althoughfurthergrowthisrequired.Preparationsforthe2012Performance-BasedResearchFund(PBRF)qualityevaluationroundwereunderwaythroughout2011.AUTcurrentlyreceivesapproximately$7millionayearfromPBRF,just5%ofthetotalfund.Toincreasethisshare,improvementinresearchqualityandoutcomeswouldneedtooutpacethatoftheexperienced,research-intensiveuniversities.Thisisachallenginggoal,butonetheUniversityhasembracedthroughaseriesofpolicyandproceduralchanges,increasedallocationofresources,andincentivesforacademicstaff.

Researchrevenueincreasedby17%in2011butnarrowlymissedthetargeted$11million.Thiswasadisappointingresultbutnotentirelysurprisinggiventhecurrentfiscally-constrainedenvironment.PositiveexamplesofourgrowingresearchcapacityincludeAUT’sexcellentresultsintheHealthResearchCouncil’s(HRC)fundinground.ProfessorValeryFeigin,ProfessorJaneKoziol-McLainandAssociateProfessorDeniseTaylorweresuccessfulingaininghealthresearchfundingtotallingapproximately$2.52million.AUTreceivedanadditional$829,000inHRCfellowshipfundingtodevelopcareersforemerginghealthresearchers.TwoAUTresearchersalsoreceived2011MarsdenFundgrants,eachvaluedatover$300,000.TheMarsdenFundsupportsleading-edgeresearchandisregardedasahallmarkofexcellence.DrIreneRyanwilluseherfundingtostudytherolesportplaysinmale-dominatedleadershipculturesandDrJiamouLiuwillfurtherhisresearchongametheorytounderstandhowcomputersystemsprioritiseconflictingrequestsfrommultipletasks.TheMinistryofHealthawardeda$2.6millioncontracttoProfessorMaxAbbottandhisteam,toundertakeanationalgamblingstudywithalongitudinalfollow-upcomponent.

During2011,AUT’scommercialisationteammanaged30projects,14ofwhichreceivedearlystagecommercialisationfundingorMinistryofScienceandInnovation(MSI)Pre-Seedfunding.Growthinindustry-engagedresearchisalsoastrategicpriorityandnewpartnershipswereestablishedin2011withAucklandArtGallery,FultonHogan,HighPerformanceSportNewZealand,andASICS,whonowsponsorAUT’spodiatryclinic.TheUniversityalsoheavilypromotedthestudentinternshipsfundedbytheMSI,andwasaprominentpresenceatindustryshowcaseevents.Twelvenewprojectshaveresultedfromtheseevents,worthatotalofalmost$0.5million.

TheVice-Chancellor’sawardsforresearchexcellencecelebratetheUniversity’sdevelopingareasofstrength.In2011,ProfessorElaineRushreceivedtheawardforresearchexcellenceforherworkwithProject Energize,whichhasdemonstrablyimprovedphysicalactivityandnutritionforthousandsofchildrenintheWaikatoregion.Emergingresearcherawardsweregivento:DrJiamouLiuforworkincomputerscienceandmathematics;NicolaKayes,specialisinginclient-centredapproachestorehabilitation,particularlyphysicalactivityforpeoplewithmultiplesclerosis;andDrBeomCheol(Peter)Kim,forraisingtheresearchprofileofthehospitalitydepartmentthroughpostgraduatesupervision.ProfessorJohnBitchenerreceivedanawardforexcellenceinpostgraduatesupervision.EstablishedResearchTeamawardswerepresentedtotheCentreforPhysicalActivityandNutritionandtheInstituteofBiomedicalTechnologies.TheGenderandDiversityResearchGroup,basedintheFacultyofBusinessandLaw,receivedtheawardforEmergingResearchTeam.




Increasethenumberofquality 1,277 1,619 1,627 1,103 assuredresearchoutputs

Achieved

At1,619,totalqualityassuredresearchoutputsfor2011substantiallyexceededthetargetof1,277althoughwereslightlybehindthe2010result.The2011targetwassetinmid-2010basedonincrementalgrowthfromthe2009result.AUThasplacedsignificantresourcesintogrowingitsresearchcapabilityoverthepastthreeyearsandboththe2010and2011resultsprovideevidenceoftheUniversity’sachievementinthisarea.Itislikelythatthe2012Performance-BasedResearchFundqualityevaluationroundhasprovidedadditionalimpetustopublishresearchoutputs.

2.1 Increasethenumberofqualityassuredresearchoutputs.

Specialistandinter-disciplinarypostgraduateeducationisincreasinglyimportantintheknowledgeeconomy.In2011,12%ofAUT’sstudentpopulationwereenrolledinpostgraduateprogrammes.BasedonfindingsfromthePostgraduate Research Experiencesurvey,70%ofdoctoralrespondentshadnopreviousenrolmentatAUT,suggestingthattheUniversity’sresearchprofileandreputationisgrowing.

ProfessorJohnRaine,ProVice-Chancellor(InnovationandEnterprise),chairedanindependentreviewfortheMSIwhichresultedinthepubliclyreleasedreportPowering Innovation – Improving access to and update of R&D in the high value manufacturing and services sector.Thereporthadanumberofrecommendationsformaximisingtheeconomicandsocialbenefitsofthesector,including:increasingconnectionsbetweenresearchorganisationsandbusinesses;promotinggreatercommercialisationofnewideas;andmorefocussedGovernmentinvestment.


Improvetheratioofoutputsto 1.40:1 1.62:1 1.70:1 1.19:1 facultyacademicstaff

Achieved

Aratioof1.62qualityassuredoutputsperacademicstaffmemberinthefacultiesexceededthe2011targetof1.40:1.The2011targetwassetinmid-2010basedonincrementalgrowthfromthe2009result(1.19:1).Thisexplainswhythe2011targetislowerthanwhatwasactuallyachievedin2010.AUThadbetterthanexpectedresultsin2010so,whilethe2011resultisslightlybelowthatachievedin2010,AUThasimproveditsoverallperformanceoverthepastthreeyearswithregardtoresearchoutputs.Giventhattherewereanadditional42academicFTEinthefacultiesin2011,theresultprovidesgoodevidenceofthewideningofAUT’sresearchactivity.

2.2 Improvetheratioofoutputstofacultyacademicstaff.



2.3.1 Totalexternalresearch $11.0M $10.8M $9.2M $8.4M revenue

2.3.2 Externalresearchrevenue $3.3M $3.6M $3.2M $2.4M fromresearchwithindustry

Partiallyachieved

Althoughthe2011targetforexternalresearchrevenuewasnarrowlymissed,AUT’sexternalresearchrevenuecontinuestoincrease,up17%to$10.8millionin2011.Theprevailingeconomicclimatehasledtoconstrainedfundingpoolsand,insomecases,theterminationoffundingstreams.AUT’ssuccessingarneringprestigiousgrantsfromtheMarsdenFundandHRCin2011istobecommendedinthishighlycompetitiveenvironment.Sourcesofresearchrevenuewerealsodiversifiedin2011,particularlywithrespecttoresearchwithindustry.Thirty-threepercentoftotalresearchrevenuewasderivedfromsuchresearch,withpartnersasdiverseasFisherandPaykelHealthcare,RugbyWorldCup,FonterraandFultonHogan.

2.3 Increaseexternalresearchrevenue.


Increasetheproportionofstudents 12% 12% 11% 11% (EFTS)inpostgraduatestudy

Achieved

2.4 Increasetheproportionofstudents(EFTS)inpostgraduatestudy.


Increasethenumberof 264 246 212 218 researchdegreecompletions

Notachieved

Althoughthe2011targetof264researchdegreecompletions(RDCs)wasnotmet,goodgrowthof16%wasseenfromthepreviousyear.Thisexceedsplannedgrowthof10%perannumintheInvestment Plan 2011-2013,butthe2010resultshavehadaflow-oneffectin2011.TheUniversitymonitorsbothindividualprogressandprogrammeissueswithregardtoresearchdegrees.Researchstudentsarerequiredtosubmitsix-monthlyreportstotheirsupervisorsdetailingtheprogressoftheirresearchwork.Ifanyproblemsareidentified,theseareraisedbythesupervisorwiththeAssociateDean(Postgraduate)beforesubmissionofthereportstothefacultypostgraduateboard.AUTwillcontinuetoinvestinbuildingpostgraduatecapabilitiesoverthenextfewyears.

2.5 Increasethenumberofresearchdegreecompletions.




TheUniversitycelebratednumerousresearchachievementsin2011,asstaffmembersgarnerednationalandinternationalawards.ProfessorNikolaKasabovbecamethefirstAUTacademictogainagloballyprestigiousMarieCuriefellowship,andwasfollowedlaterintheyearbyProfessorAhmedAl-Jumaily.TheMarieCuriefellowshipsarefundedbytheEuropeanCommission’sFramework7researchprogramme;ProfessorKasabovusedhisfellowshiptospendseveralmonthsinEuropefurtheringhisresearchintoneuro-computing.ProfessorAl-Jumaily’sfellowshipwillbeusedtoadvancehisworkinrespiratoryengineeringwithinternationalcolleagues.ProfessorStephenHenrywasawardedtheRoyalSocietyofNewZealand’sprestigiousRJScottmedalforengineeringscienceandtechnology.ProfessorHenryisdirectorofAUT’sBiotechnologyResearchInstituteandreceivedthemedalinrecognitionofhispioneeringresearchintocellsurfacemodificationtechnology.SeveralstaffmemberswerealsorecognisedfortheircontributiontoNewZealandsociety.HohepaSpooner,TeAraPoutama,receivedanAppleDistinguishedEducators(ADE)award,forhisinnovativeuseofAppleproductsineducation.Oneoffewerthan20NewZealandrecipients,MrSpoonerledthedevelopmentofdigitalresourcesfortheteachingandlearningoftereoMäori.ProfessorElaineRushwasafinalistinNextmagazine’sWomanoftheYearawards,inrecognitionofherresearchonestablishinghealthylifestylesinchildren.

Achieved

2.6 ToenhancetheUniversity’sresearchreputation:staffcontributionstoresearchandinnovationarerecognisedwithnationalandinternationalawards.

AUTwasaprominentmemberoftheTEC-fundedindustryshowcaseeventsin2011,whichsoughttofacilitatealliancesbetweenresearchinstitutionsandbusinesses.Theeventswerehighlysuccessfulforbothparties;AUTnegotiated12partnershipsasaresult,worthalmost$0.5millionintotal.TheUniversityalsoestablishedascheduleofregularcommunicationwithAucklandbusinesses,promotingresearchopportunities,celebratingachievementsandseekingnewpartners.AUTsoughttobuildonitsinitialsuccessintheTechnologyTransferVoucherinitiative,usingadditionalMSIfundingtooffera‘FreeExpertforaDay’schemetobusinessesinterestedininvestinginresearch.Sevenvoucherproposalsarecurrentlyunderdevelopment,includingfivethatresulteddirectlyfromthisscheme.During2011,AUT’scommercialisationteammanaged30projectsandprovidedmarketingandbusinessdevelopmentadvicetoresearchgroupsaroundtheUniversity,includingtheTextileandDesignLaboratory,IndustrialInformationandControlCentre,FoodScienceResearchCentreandCoLab.Twospin-outcompanieswereestablishedin2011,withAUTEnterprisesLtdnegotiatingequityshareholdingsbasedonuniversityintellectualproperty.Finallyin2011,theInstituteofBiomedicalTechnologiesbecameafoundationmemberofthenationalCentreforMedicalDeviceTechnologies(CMDT),inpartnershipwiththeUniversityofAucklandandIndustrialResearchLtd.TheCMDTisaninnovationhubforthedevelopmentofmedicaldevicesandhealthtechnologies.

Achieved

2.7 Increasecommercialisationactivitiesorevents.


engAgeMent strAtegic tHeMe u Auckland university of technology will actively engage with the communities we serve and contribute to their social and economic development.

criticAL success fActors 4 And 6 uto enhance our international reputation uto ensure that the staff and student profile better reflects the population we serve

oBJectiVes uto strengthen and build strategic relationships and partnerships that advance education, research, and economic and social development uto honour the commitment to the treaty of waitangi by being the university of choice for Mäoriuto encourage access and success in university education for students from the diverse communities within the Auckland region

Universitieshelptoshapetheircommunitiesthroughintellectualleadershipandpartnershipsthatdrivesocial,culturalandeconomicdevelopment.Asauniversitythatpromotesopportunity,AUTembracesitsresponsibilitytocreatechange,bothforindividualsandforsociety.Thiscommitmentunderliesallitsactivities;frominternationalagreementstoresearchpartnershipsandfromstudentrecruitmentinitiativestocommunityevents,theUniversityseeksmutuallybeneficialpartnershipsthatwillresultinsharedsuccess.

TheAcademicAuditreportmadeanumberofcommendationswithregardtoTeTiritioWaitangi,Pacificpeoplesandwidercommunityengagementactivities.TheentireAUTcommunitywascommendedfor“theembeddedethosofsupportfortheaspirationsofMäoriandforthemannerinwhichkaupapaMäoriisintegratedwithinstitutionalactivity”.ThepanelalsopraisedtheeffortstakentoensureresearchactivityandcurriculuminitiativesreflectedtheneedsandaspirationsofMäori;thecommitmenttoPacificresearchwasalsocommended,aswasAUT’s“responsivenesstoexistingandemergingcommunitiesofengagement”.

ThebiennialMäoriExpotookplaceinMay;onceagainthisexceptionaleventcelebratedtheverybestofMäoricultureandachievement,andguidedyoungMäoritowardsparticipationinhighereducation.TheExpowassupportedbyaseriesofotherinitiatives,includingKoAwatea,apartnershipbetweenAUTandtheCountiesManukauDistrictHealthBoard,theUniversityofAucklandandManukauInstituteofTechnology.ThisprojectaimstoaddressSouthAuckland’sfuturehealthworkforceneeds,andcomplementsAUT’shealthscienceprovisionatManukauCampus,andtheRangatahiproject,whichmentorsyoungMäorithroughschool,universityandintocareersashealthprofessionals.

Initssecondyearofoperation,ManukauCampusremainedakeymechanismbywhichAUTbroadenedaccesstoandparticipationinhighereducation.TheCampusexceededenrolmenttargetsfor2011andisemergingasafocalpointforthelocalcommunity.TheannualPlantationBusinessChallengewasheldattheCampusin2011;thisbusinesscasecompetitionforPasifikasecondarystudentsdevelopsentrepreneurialskillsandwasdeliveredinpartnershipwithManukauInstituteofTechnologyandthePacificBusinessTrust.PlantationBusinessChallengewasoneofaseriesofprojectsfundedbytheTECtoincreaseaspirationforhighereducationamongstsecondarystudents.Manyoftheseprojectsfocussedonstudentsfromtraditionallyunder-representedgroups.TheTECfundingendedinDecember2011andtheUniversityisinvestigatingalternativefundingopportunitiestoensuretheprojects’long-termsustainability.

TheAUTMillenniumCampusonAuckland’sNorthShorecontinuestobethefulcrumforAUT’sinvolvementinsportsscienceresearchandelitesport.TheNationalTrainingCentreforhighperformanceathletesisthefirststageofa$29millionexpansionoftheCampus.Thisworld-classtrainingandresearchcentrehousesasportssciencelaboratory;astrength,conditioningandrecoverycentre;sportsmedicineservices;andtheheadquartersofHighPerformanceSportNewZealand.Thecentreisbeingusedbymanyeliteathletesintheirpreparationforthe2012OlympicGamesinLondon.


7 Participationiscalculatedusingtheprimaryself-selectedethnicityforeachstudent.ThisisdifferentfromhowparticipationiscalculatedbyTECwhich usesallethnicidentitiesselectedbyastudent;thatis,thesamestudentcanbecountedmultipletimesiftheyselectmorethanoneethnicidentity


AsingleAucklandCounciloffersopportunitiesforgreaterregionalcollaborationandcohesionbetweenmajorstakeholders.AUThasworkedcloselywiththeCounciloverthelastyear,sharingexpertise,promotingaregion-widetertiaryeducationstrategy,andidentifyinganumberofsharedinitiativesforthefuture.AUTCommercialisationandtheFacultyofDesignandCreativeTechnologieshavealsobeeninvolvedindiscussionsonthedevelopmentofahigh-techinnovationprecinctinWynyardQuarter.EngagementwiththisprojectwouldprovideopportunitiestostrengthentheUniversity’slinkswithothernationalandlocalgovernmentagencies,includingAucklandTourism,EventsandEconomicDevelopment(ATEED),theMinistryofScienceandInnovation(MSI)andIndustrialResearchLtd.

CommercialisationisakeyaspectofAUT’sengagementstrategy,bothnationallyandinternationally.TheBusinessInnovationCentrecurrentlyhosts17start-upcompaniesinvaryingstagesofdevelopment.Thisyear,AUTwasalsochosenasapreferreduniversitypartnerfortheMSI’sTechnologyTransferVoucherscheme.Thispilotschemeprovidesfundingtosupportresearchanddevelopmentpartnershipsbetweenbusinessesandresearchagencies.AUTwascloselyinvolvedasafounderandshareholderinKiwinet,anetworkofcommercialisationorganisationsfromsixuniversitiesandthreecrownresearchinstituteswithacombinedresearchexpenditureofmorethan$500million.Kiwinet,whichencompassesalargeproportionofNewZealand’ssciencecapability,willincreasethescaleandimpactofcommercialisationinNewZealandbyfacilitatingacollaborativeandcapablecommercialisationecosystem.Severalinternationalcommercialisationprojectswereadvancedin2011;representativesofAUTCommercialisationandtheGeoinformaticsResearchCentre(GRC)travelledtoIndiainMaytoparticipateinanation-wideprojecttoprovideagro-meteorologicalinformationtofarmersthroughthemobilephonenetwork.ThisvisitwasfollowedbyaMemorandumofUnderstandingbetweentheGRCandIndia’sTataConsultancyServices,whichwillfurtheramutualinterestinagro-meteorologicalresearch,andthedevelopmentofrelatedtechnologies.

Finally,AUTdevelopedanewInternationalisationStrategyin2011,whichoutlinedaimsandprocessesforinternationalengagementactivities.AUThasbeenhighlysuccessfulinattractingstudentsfromabroad,collaboratingwithinstitutionsoverseasandbringingourexpertisetobearonglobalchallenges.


3.1.1 Mäoriparticipation 9% 9% 10% 10%

3.1.2 Pasifikaparticipation 11% 12% 12% 11%

Achieved

3.1 ToensuretheproportionofMäoriandPasifikastudentsbetterreflectthedemographicmixoftheregion.7

Throughout2011,seniorrepresentativesofAUTworkedwiththenewAucklandCounciltodetermineeducation,skillsandeconomicdevelopmentprioritiesfortheregion.AUTwasalsoheavilyinvolvedinthecreationofKiwinet,andwasafoundingmemberoftheMSI’sTechnologyTransferVoucherscheme.Bothinitiativesaredesignedtofosterresearchpartnershipsbetweenthepublicandprivatesectors,withresultantbenefitsforbothpartiesandtheeconomyasawhole.NinenewpartnershipswereestablishedduringtheyearwithuniversitiesinthePacific,AsiaandEurope.Amongthese,thePacificMediaCentreincreaseditspresenceinthePacificregionformalisingarelationshipwiththeUniversityoftheSouthPacificinRarotonga.TheFacultyofDesignandCreativeTechnologiessignedMemorandaofUnderstandingwithGermany’sLeibnizUniversityofHanoverandUniversitiTunHusseinOnninMalaysia.TheSchoolofEducationagreedtoprovideteachingtrainingforThailand’sNationalTeacherIn-serviceCentre(NIDTEP)andtheUniversityformalisedanarticulationagreementinhospitalityandtourismwithSouthKorea’sNamseoulUniversity.

Achieved

3.2 Tocreatenewlocal,nationalandinternationalpartnershipsthatenhancetheUniversity’sprofile.



AUTfunctionsasacriticandconscienceofsociety;thissectionsummarisessomeofmanyinstancesin2011wheremembersoftheUniversitysharedtheirexpertisewithawideraudience.InOctober,theGovernmentannouncedaseriesofreformstothecriminaljusticesystem,inresponsetoanAUTinvestigationintotheexperiencesofchildwitnesses.Thecourtwilladoptamoreinquisitorialsystemwhendealingwithchildwitnesses,seektoexpeditethetrialprocess,andprovideasafeandnon-threateningenvironmenttotestifyin.ThereformsweredrivenbyresearchundertakenbytheInstituteofPublicPolicy’sDrsKirstenHannaandEmmaDavies,whichraisedconcernsthatchildrenweretraumatisedbytheprevailingadversarialsystem.ProfessorElaineRushreceivednationalrecognitionforherworkon Project Energize,whichrespondedtoconcernsabouttheincreasedincidenceofchildhoodobesity.ProfessorValeryFeiginreceivedmediaattentionforhisresearchintotheefficacyofsupplementscontainingenzogenol,apinebarkextract,forimprovingmemoryandcognitivefunctionforsufferersoftraumaticbraininjury.Moregenerally,duringtheperiodfromlateFebruarytotheendofMay,mediamonitoringshowedthatAUTstaffweresoughtforexpertcommentoncurrenteventsorissuesofnotemorethan220times.WhileProfessorPaulMoon,fromTeAraPoutama,wasAUT’smostprolificcommentatorin2011,AUTstaffmemberscommentedonawiderangeofissues,includingtheenvironment,health,racerelationsandlocalgovernment.

Achieved

3.3 Tobeengagedinpublicdebateandenquiry.


stAff strAtegic tHeMe u Auckland university of technology will attract, develop and retain excellent staff.

criticAL success fActor 7 uto ensure our people are inspired by, and contribute to, the achievement of our mission

oBJectiVes uto ensure the university provides a challenging, stimulating and rewarding work environment for all staff uto promote the development of well-rounded careers for all staff

HighlevelsofstaffengagementareanimportantdeterminantforachievingAUT’sstrategicgoals.Throughout2011,theUniversityhasincreaseditseffortstomeasuretheengagementofstaff,improvesafetyandsecurityofstaffwhileatwork,recognisegoodperformanceandcelebratesuccessthroughouttheinstitution.

Theinauguralstaffengagementsurveyinmid-2011highlightedtheUniversity’sstrengthsasanemployerandidentifiedsomeareasfordevelopment.Broadly,theresultswereverypositive;AUThadaboveaveragelevelsofstaffengagementwhencomparedtootherlarge-scaleorganisationsinthepublic,privateandeducationsectors.StaffreportedexperiencingastrongsenseofpersonalachievementfromtheirjobsandfeelingpositiveabouttheopportunitiestheyhaveatAUT.ThisstrongsenseofbelongingandpridewasalsonotedbytheAcademicAuditpanelintheirreviewandisreflectedinthestaffturnoverratein2011;4.5%foracademicstaffand6.6%foradministrativestaff.Thesurveyalsorevealedthekeydriversofengagementforstaff:asenseofcommonpurpose;confidenceinleadersandleadership;andafocusonlearningandcontinuousimprovement.TheUniversityhasadoptedacomprehensiveresponsetothesurvey,withaparticularfocusonthesecrucialaspects.Eachfacultyanddivisionhasadetailedplantoincreasestaffengagement,basedonthespecificissuesidentifiedforthatarea.Inaddition,university-wideinitiativeswillaimtoimprovecoaching,performancemanagementandleadershipskills,andtofostergreatercollaborationandco-operationopportunities.Thestudywillberepeatedin2013.

Increasingtheresearchcapabilityandimpactofacademicstaffcontinuedtobeafocusin2011.TheAcademicWorkExecutiveGroupreleasedthenewAcademicContributionFrameworkwhichestablishestheUniversity’sexpectationsofacademicstaffinthreeareas:learningandteaching,researchandscholarship,andacademicleadershipandservice.Theframeworkalsorecognisesthatstaffworkloadsmustallowforabalanceofallthreeactivities.ThepolicywassubsequentlyendorsedbytheTertiaryEducationUnion.Afurther116academicstaffmembersvoluntarilytransferredontoemploymentconditionsthatareconducivetoconductingresearchin2011.Thiswasintendedtobethefinalyearofthisinitiative,butcontinuingdemandhasledtoitsextensionforanotheryear.TheDoctoralStudyAwardsareanothersought-afterinitiativedesignedtoincreaseresearchcapacity;recipientsarereleasedfromteachingdutiesforonesemestertofocusontheirdoctoralstudy.Therewere14successfulapplicantsin2011,andinthethreeyearsoftheawardstodate,16recipientshaveeithergraduatedorarenowunderexamination.TheUniversityalsolaunchedasuccessfulshort-termpostdoctoralfellowshipsprogrammein2011.Thefellowshipsproviderecentdoctoralgraduateswiththeopportunitytoestablisharesearchcareer,gainexperiencewithpeer-reviewprocessesandreceiveguidancefromanexperiencedmentor.

Thecontributionandexpertiseofresearchstaffgainednationalandinternationalrecognitionin2011.InadditiontoresearchawardspreviouslynotedintheResearchandDevelopmentsectionofthisreport,DrPaulCullen,fromtheFacultyofDesignandCreativeTechnologies,wasawardedaFulbrightSeniorScholarshiptoresearchcollaborativeandnon-galleryartpracticesatAuburnUniversityinAlabama;ProfessorJohnRaine,ProVice-Chancellor(InnovationandEnterprise)wasappointedastheprincipalmoderatorforthe2012Performance-BasedResearchFundqualityevaluationround,andTagaloateleProfessorPeggyFairbairn-DunlopwillchairthePacificResearchExpertAdvisoryGroup.Anothertenstaffhavebeenappointedaspanellists,inrecognitionoftheirstandingintheirdiscipline.Ninestaffwerepromotedtoprofessorshipsinthe2011academicpromotionsround.



TheUniversityremainscommittedtomaintainingasafeplaceofworkandstudyforstaffandstudents,includingestablishingsafetysystemsattheManukauandAUTMillenniumCampuses.Thefocusofoccupationalhealthandsafetyworkin2011wasparticipationandaccountability,involvingmanagement,staffandcontractorsinordertomaintaincurrentlevelsofcompliance,improvethesafetycultureandreducethenumberandseverityofinjuries.AccidentCompensationCorporationmeasuresAUTfavourablyagainstindustrypeergroups;theUniversity’sIncidentRate(numberofincidentspermillionhoursworked)reducedfrom48to17overthefiveyearperiodfrom2007andtheCompensationClaimsRateremainedsteadyoverthesameperiod(13in2007to12in2011).EmergencymanagementprocedureswerereviewedfollowingthedevastatingChristchurchearthquakes.ThenewEmergencyManagementPlanwasadoptedinOctober2011andisdesignedtocontrolandmitigatetheeffectofacrisisontheUniversity.Thiscomprehensiveplanoutlinestheproceduresfordirectingtheimmediateresponse,co-ordinatingsupportforstaffandstudentsandrestoringessentialinfrastructure,andthetimelyrestorationofusualbusiness.


4.1.1 Ensureexpenditureofstaff 1.50% 1.52% 1.62% 1.10% development(academicand allied)equals1–1.5%of grosssalaries

4.1.2 Ensureaveragestaff turnoverisnohigherthan: 6%foracademicstaff ≤6% 4.5% 4.3% 6.0% 14%foradministrativestaff ≤14% 6.6% 6.7% 9.1%

Achieved

4.1 Toensurethedevelopmentandretentionofstaff.


sustAinABiLitystrAtegic tHeMe u Auckland university of technology will ensure its sustainability through good management and strong performance and reputation.

criticAL success fActors 8, 9 And 10 uto improve the physical infrastructure of the campus uto be a high performing organisation uto ensure financial viability

oBJectiVes uto ensure financial sustainability uto enhance the effectiveness and efficiency of the university’s operations uto be a good steward of the university’s assets

Amajorfinancialhighlightfortheyearwasthesuccessfulconversionofthe$50millionSuspensoryLoanintoequity.TheloanwasgrantedbytheCrownin2008andwasintendedtosupportinfrastructureinitiatives,reducedebt,andassistAUTwithdevelopingresearchcapability.TheUniversitymetallitsdevelopmenttargetstwoyearsearlierthananticipated,enablingfullconversionoftheloanin2011ratherthan2013.ThisisasignificantachievementandistestamenttothedriveanddeterminationofmanystaffacrosstheUniversity.Inthisconstrainedfinancialclimate,AUTisinvestigatingpotentialoptionsfordiversifyingitsrevenuebase,includingleveragingofnon-coreassetsandjointventuressuchasthesuccessfulAUTMillenniumCampus.

Commitmenttosustainabilitypervadesallaspectsofuniversitylife,extendingbeyondfinancialconsiderationstoencompassbuildingdesign,curriculumdevelopments,environmentalandhealthissues,andrelationshipswithourstaff,studentsandcommunities.Akeystrategicfocusfor2011continuedtobethedevelopmentoftheManukauCampus,thesuccessofwhichreliesonaflexible,innovativeapproachtoteachingandlearning,maximisingresources,andasolidpartnershipwiththeCountiesManukaucommunity.Todate,theUniversityhascreatedadaptablelearningspacesattheManukauCampusthatsupportbothteacher-ledandself-directedstudy.Goodusehasbeenmadeoftechnologiestosupportlearning,includingtwo-wayvideoconferencinglinkstotheNorthShoreandCityCampuses,wirelessaccessoncampusandtheadoptionofnewapproachestosupportstudentaccesstocomputersandbroadband.AUThasalsoexploredthebenefitsofalternativetimetablesandopeningaccesstothecampustomeettheneedsoflocalfamiliesandbusinesses.AUTintendstodevelopthecampusfor5,000EFTSby2020.Thiswillrequireamajorbuildingprogrammethatwillbeoutlinedinthecampusplantobepreparedin2012.

Workhasprogressedthroughout2011onAUT’slargest-evercapitalproject;theWGLearningPrecinctisonscheduleforoccupationbyearly2013.Thenewprecinctincorporatessustainablebuildingmethods,includingsolarheating,naturalventilationanddaylight,low-energylighting,sustainablyharvestedtimberandlong-lifematerials.Thedesignoftheprecinctalsoreflectsthechangingnatureofteachingandlearninginthe21stcentury.Studentsareseekingmorecollaborativeandimmersiveexperiencesandthedemandsofinterdisciplinaryresearcharestimulatingnewacademicrelationshipsandinteractions.Asaresult,learningcanhappenanywhereandwillincreasinglytakeplaceinvirtualspacesaswellasphysical.WGLearningPrecinctwillthereforehaveflexiblelearningspacesthatcanbereallocatedandreconfigured,largelobbiesforuseassocialstudyareas,andwillbeequippedwiththelatesttechnologiestoenergiseandinspirestudentsandstaff.

AUT’sinnovativeandfuture-focussedapproachtobuildingdesignwasagainrecognisedbythePropertyCouncilofNewZealandinthe2011PropertyIndustryAwards.AUTreceivedmeritawardsforthreebuildingsintheeducationandartscategory:thenewSchoolofEducationBuildingandthenewAFLectureTheatresandConferenceCentre,bothontheNorthShoreCampus;andtheretrofitoftheMCTeachingandLibraryBuildingatManukauCampus.TheMCretrofitalsoreceivedameritawardintheheritageandadaptivereusescategory.

OnWorldSmoke-freeDay2011,AUTannouncedthatitscampuseswillbetotallysmokefreefrom1February2012.Asmoke-freepolicyisconsistentwithAUT’spositionasamajorproviderofhealtheducationandresearchandwillcreateahealthierenvironmentforstudents,staffandvisitors.TheUniversityisprovidingarangeofsupportservicestostaffandstudentswhowishtostopsmoking.



Key performance indicators TEC 2011 Target Actual

tec financial covenants

1. MaximumCommercialDebt $70,000 Maximum $40,594 Borrowings($000s)

2. MaximumAggregateFinancings $110,000 Maximum $81,029 ($000s)

3a. MinimumNetSurplusRatio 3.0% Minimum 3.09%

3b. MinimumOperatingCashInflows/ 111% Minimum 122% OperatingCashOutflows

3c. DebttoDebtPlusEquity 25% Maximum 18%

3d. InterestCoverRatio 2.00 Minimum 3.73

3e. DebtCoverRatio 3.25 Maximum 1.47

Achieved

5.1 TomeettheratiosrequiredundertheUniversity’sConditionsofFunding.


5.2.1 Totalstaffcostsasa <60% 61% 59% 62% proportionoftotalrevenue

Notachieved

Totalstaffcostsincreasedby$14millionin2011,up8.3%from2010.Staffcostsincludedanunbudgetedprovisionof$1.9millionforresearchandstudyleave,whichwillenablecontinuedsupportofstrategicprioritiesregardingresearchcapabilityandcapacitybuilding.Ifthisprovisionwasexcluded,staffcostswouldhavetotalled60%ofrevenue.

5.2 Tomaintainaneffectiveandefficientoperatingenvironment.

Key performance indicator Budget Budget Actual Actual 2012 2011 2011 2010

5.3.1 Todevelopandimplementa fiveyearcapitalplan($000s)

Major new buildings

CityCampus

WGPrecinct 45,915 35,000 32,850 7,294

Other – – – 134

NorthShoreCampus

EducationBuilding – – – 2,945

ManukauCampus

Refurbishment 1,382 3,100 1,984 3,366

AUTMillenniumCampus 814 – 5,838 –

total major new buildings 48,111 38,100 40,672 13,739

5.3 ToensureprogressismadeagainsttheCapitalAssetManagementPlan.



Key performance indicator Budget Budget Actual Actual 2012 2011 2011 2010

5.3.1 Todevelopandimplementa fiveyearcapitalplan($000s)

other capital

Plannedmaintenance/ 4,000 4,149 2,951 1,748 minorcapitalworks

Library 6,000 5,551 5,238 4,732

Informationtechnology 7,906 5,781 3,319 2,441

Plantandequipment 6,833 4,899 5,245 2,954

Other – 120 – –

total other capital 24,739 20,500 16,753 11,875

total capital plan 72,850 58,600 57,425 25,614

Achieved

TheUniversityhasdevelopedatenyearCampus Asset Management Plan 2010-2020whichisderivedfromandsupportsthestrategicdirectionoftheUniversityfortheperiod.ThefiveyearcapitalplanisasubsetofthetenyearPlan.ThePlanwillensureapositivelegacyforAUT’sstakeholders,bothpresentandfuturegenerations.ThecurrentmajorprojectistheWGPrecinct,abuildingof20,000squaremetres,whichwilltransformtheCityCampusonitscompletioninFebruary2013.SignificantresourcescontinuetobedirectedtowardsrefurbishingManukauCampus,toconvertthepreviousofficebuildingsintomodernlearningandteachingspaces.During2011,landadjacenttotheAUTMillenniumCampusbecameavailableandwasacquiredtoallowforfutureexpansionoftheCampus.Furtherresourcewasappliedtofit-outthenewextensiontotheexistingbuilding.Thiswillcontinuein2012.TheUniversityplanstocontinuetoinvestinitsLibrary,ITandequipmentandtomaintainaprogrammeofplannedmaintenanceoverthenextfiveyears.

5.3 ToensureprogressismadeagainsttheCapitalAssetManagementPlan.

continued


equALoPPortunities


equAL oPPortunitiesThroughitsTertiary Education Strategy 2010-2015,theGovernmentcontinuestoprioritiseparticipationandsuccessofMäori,Pasifikaandstudentswithadisabilityintertiaryeducation.AUTretainsitscommitmentstothesegroupsbutwideneditsequalopportunitiespracticein2011tobettersupportthediversecommunitiesthatworkandstudyattheUniversity.SomeexamplesfromtheyearincludethedevelopmentofanAUTgenderequitystudytoadvanceunderstandingofthecareerpathwaysoffemaleacademicstaffandtoidentifyissuesandbarriersfacedbythemduringthepromotionprocess.TheUniversityalsohostedanumberofinternationalconferencesfocussedonsharingbestpracticeandresearcharoundequityanddiversity.TheseincludedtheEDI(EqualityDiversityandInclusion),EOPHEA(EqualOpportunityPractitionersinHigherEducationAustralasia)andRefugeeEducationConferences.

AUTwaspleasedtobeselectedasafinalistintheEqualEmploymentOpportunities(EEO)TrustWorkLifeAwardsin2011.AUT’snominationsincludedtheHäpaiprogrammethatseekstobuildtheMäoriacademicworkforceatAUT,andthePasifikaLearningVillagesprogrammewhichsupportsPasifikastudentstoenterthehealthworkforce.AssociateProfessorPareKeihawasalsonominatedasaninnovatorinthisarea.AllnominationsareatestamenttothecalibreofworkundertakentosupportequalopportunitiesatAUT.

studentsImprovingMäoriandPasifikasuccessremainedafocusin2011.TheUniversityiscommittedtoliftingcompletionandretentionscoresforMäoriandPasifikastudentsasmeasuredbytheTEC’seducationalperformanceindicators.AUTrecognisesthelimitsofsuchmetricsandcontinuestoadvocateforaholisticviewofwhatisconsideredstudentsuccessandachievement.

TheAgents of ChangeandRangatahiprogrammescontinuedtotakeabroadapproachtoliftingaspirationfor,andtransitioninto,tertiaryeducation,aswellasprovidingappropriatepastoralandacademicsupporttoaidprogressionandcompletion.Studentsuccessisfosteredbyinvolvingfamilies,schoolsandcommunitynetworksinthestudentjourneyatAUT.

Resultsfromthe2011Annual Programme SurveyshowedthatMäoriandPasifikastudentsratedtheirexperienceatAUThigherthanotherethnicgroups.Eighty-threepercentofbothMäoriandPasifikastudentsweresatisfiedwithAUTwhichsurpassestheoverallstudentsatisfactionrateof79%fortheUniversityandalignswith2010scoresforMäoriandPasifika.

stAffAUTremainscommittedtoincreasingthenumberofMäoriandPasifikastaff,particularlyinacademicpositions.TheUniversityrecognisesthatthemarketforMäoriandPasifikaacademicsiscompetitivesohasfocussedinrecentyearsongrowingapooloftalentfromwithinitsownMäoriandPasifikastudentcohort.

In2011,theUniversity’sstaffnetworkscontinuedtocontributetotheUniversity’ssenseofcommunity.NgaWhänauMäorikiHorotiu(theMäoriStaffNetwork),thePasifikaStaffNetwork,WomenonCampus,theAsianStaffNetwork,OUT@AUTStaffNetworkandtheAUTStaffDisabilitiesNetworkwereallsupportedfinanciallybytheUniversityin2011;thenetworkshostedeventsandprofessionaldevelopmentworkshopsfortheirmembersandparticipatedintheconsultationprocessfortheUniversity’snewStrategic Plan 2012-2016.


finAnciAL stAteMents



university consolidated 2011 2011 2010 2011 2010 Actual Budget Actual Actual Actual $000s $000s $000s $000s $000s

Note

reVenue

Governmentoperationalfunding 2 141,620 140,668 138,709 141,620 138,709

Studenttuitionfees 3 116,437 117,653 112,849 116,437 112,849

Researchgrants 4 10,766 12,340 9,215 10,858 9,270

Otherincome 5 29,632 23,694 26,618 30,293 26,961

totAL reVenue 298,455 294,355 287,391 299,208 287,789

eXPenses

Personnelcosts 6 182,286 174,748 168,268 182,286 168,268

Suppliesandothercosts 7 70,436 70,626 64,906 71,060 65,150

Depreciation,amortisation 8 33,138 30,361 32,322 33,138 32,322andimpairment

total expenses before finance costs 285,860 275,735 265,496 286,484 265,740

Operatingsurplusbeforefinancecosts 12,595 18,620 21,895 12,724 22,049

Financecosts 9 3,374 3,620 3,548 3,374 3,548

operating surplus 9,221 15,000 18,347 9,350 18,501

Shareofassociate’ssurplus 14 – – – 11 45

Shareofjointly-controlled 15 – – – 726 2,266entity’ssurplus

net surPLus 9,221 15,000 18,347 10,087 20,812

TheaccompanyingnotesformpartoftheseFinancialStatements.

incoMe stAteMent




Note

net surPLus 9,221 15,000 18,347 10,087 20,812

otHer coMPreHensiVe incoMe

Netgain/(loss)onavailable-for-sale 26 (2) (4) (4) (2) (4)financialassets

Netgain/(loss)oncashflow 26 9 300 (371) 9 (371)hedges

Netgain/(loss)onlandand 26 – – 242 – 242buildingsrevaluation

total other comprehensive income 7 296 (133) 7 (133)

totAL coMPreHensiVe incoMe 9,228 15,296 18,214 10,094 20,679


stAteMent of coMPreHensiVeincoMe


As at 31 December 2011


Note

current Assets Cashandcashequivalents 10 2,821 1,879 3,706 3,891 4,662Short-terminvestments – – 129 – 129Tradeandotherreceivables 11 4,358 8,547 23,474 4,523 23,550Inventories 214 171 204 214 204Prepayments 1,938 1,059 1,771 1,938 1,771Derivativefinancialinstruments 23 52 – 14 52 14

total current assets 9,383 11,656 29,298 10,618 30,330

non-current Assets Available-for-salefinancialassets 12 135 185 157 135 157Investmentinsubsidiaries 13 100 100 100 – –Investmentinassociate 14 417 417 417 526 535Investmentinjointly-controlled 15 18,300 18,300 18,300 21,147 20,421entityProperty,plantandequipment 16 495,198 488,745 464,525 495,198 464,525Intangibleassets 17 3,220 3,549 3,442 3,220 3,442

total non-current assets 517,370 511,296 486,941 520,226 489,080

totAL Assets 526,753 522,952 516,239 530,844 519,410

current LiABiLities Tradeandotherpayables 18 28,944 20,636 26,185 28,969 26,156Incomeinadvance 19 32,201 24,725 42,778 32,201 42,778Employeeentitlements 20 14,307 12,333 13,565 14,307 13,565Provisions 21 488 90 82 488 82Financeleaseborrowings 22 5,320 5,905 5,079 5,320 5,079Derivativefinancialinstruments 23 18 30 176 18 176

total current liabilities 81,278 63,719 87,865 81,303 87,836

non-current LiABiLities Borrowings 24 40,594 44,700 33,550 40,594 33,550Employeeentitlements 20 4,529 2,375 2,214 4,529 2,214Provisions 21 808 720 706 808 706Financeleaseborrowings 22 35,115 36,892 36,851 35,115 36,851Derivativefinancialinstruments 23 351 55 203 351 203

total non-current liabilities 81,397 84,742 73,524 81,397 73,524

totAL LiABiLities 162,675 148,461 161,389 162,700 161,360

equity Generalequity 25 247,062 255,879 237,841 251,128 241,041Revaluationreserves 26 117,016 118,612 117,009 117,016 117,009

total equity 364,078 374,491 354,850 368,144 358,050

totAL LiABiLities And equity 526,753 522,952 516,239 530,844 519,410


BALAnce sHeet




totAL equity At tHe 354,850 359,195 336,636 358,050 337,371Beginning of tHe yeAr

coMPreHensiVe incoMe

NetSurplus 9,221 15,000 18,347 10,087 20,812

OtherComprehensiveIncome 7 296 (133) 7 (133)

total comprehensive income 9,228 15,296 18,214 10,094 20,679

totAL equity At tHe 364,078 374,491 354,850 368,144 358,050end of tHe yeAr


stAteMent of cHAnges in equity




Note

cAsH fLows froMoPerAting ActiVities

Receiptsfromgovernmentgrants 141,379 139,560 140,072 141,379 140,072

Receiptsfromstudenttuitionfees 122,911 117,791 112,162 122,911 112,162

Receiptsfromservice-providedactivities 31,696 29,059 24,270 31,696 24,270

Interestreceived 510 199 373 537 389

Dividendreceived 262 25 22 262 22

Receiptsfromotherrevenue 9,912 8,666 13,292 10,523 13,619

Paymentstoemployees (179,229) (174,748) (166,031) (179,229) (166,031)

Paymentstosuppliers (65,210) (67,788) (63,201) (65,733) (63,618)

Interestpaid (3,374) (3,810) (3,548) (3,374) (3,548)

NetGSTreceived/(paid)8 (3,547) (2,000) 1,533 (3,548) 1,512

net cAsH fLows froM 29 55,310 46,954 58,944 55,424 58,849oPerAting ActiVities

cAsH fLows froMinVesting ActiVities

Proceedsfromsaleofproperty, 93 – 50 93 50plantandequipment

Purchasesofproperty, (56,545) (55,501) (25,614) (56,545) (25,614)plantandequipment

Purchasesofintangibleassets (1,029) (3,099) (1,430) (1,029) (1,430)

Receiptonmaturity/(placement) 129 – (129) 129 (129)ofshort-terminvestments

Disposal/(acquisition)ofinvestments 20 – (7,500) 20 (7,500)

net cAsH fLows froM (57,332) (58,600) (34,623) (57,332) (34,623) inVesting ActiVities

cAsH fLows froMfinAncing ActiVities

Proceedsfrom/(repaymentof) 7,044 16,779 (15,150) 7,044 (15,150)borrowings

Repaymentoffinancelease (5,907) (5,079) (6,282) (5,907) (6,282)borrowings

net cAsH fLows froM 1,137 11,700 (21,432) 1,137 (21,432)finAncing ActiVities

Netincrease/(decrease) (885) 54 2,889 (771) 2,794incashandcashequivalents

Cashandcashequivalents 3,706 1,825 817 4,662 1,868atbeginningoftheyear

cAsH And cAsH equiVALents 2,821 1,879 3,706 3,891 4,662 At end of tHe yeAr


stAteMent of cAsH fLows

8 TheGSTcomponentofoperatingactivitiesreflectsthenetGSTpaidto,andreceivedfrom,theInlandRevenueDepartment.TheGST componenthasbeenpresentedonanetbasis,asthegrossamountsdonotprovidemeaningfulinformationforfinancialstatementpurposes


notes to tHe consoLidAtedfinAnciAL stAteMents


note 1: suMMAry of significAnt Accounting PoLicies

TheprincipalaccountingpoliciesappliedinthepreparationoftheseFinancialStatementsaresetoutbelow.TheFinancialStatementscompriseFinancialStatementsforAucklandUniversityofTechnology(theUniversity)asanindividualentity,andfortheconsolidatedentityconsistingoftheUniversity,itssubsidiaries,interestinanassociateandjointventureinterests(theConsolidatedGroup).

(a) Basis of preparation

Reporting entity

AucklandUniversityofTechnologyisauniversityundertheAucklandUniversityofTechnology(Establishment)Order1999andisdomiciledinNewZealand.TheprimaryobjectiveoftheUniversityistoprovidetertiaryeducationservicesforthebenefitofthecommunityratherthanmakingafinancialreturn.Forthepurposesoffinancialreporting,theUniversityandtheConsolidatedGroupareconsideredtobepublicbenefitentities.

TheFinancialStatementsoftheUniversityandtheConsolidatedGrouparefortheyearended31December2011.TheFinancialStatementsareauthorisedforissuebytheCouncilofAucklandUniversityofTechnologyon26March2012.

Statement of compliance

TheFinancialStatementsoftheUniversityandtheConsolidatedGrouphavebeenpreparedinaccordancewiththerequirementsoftheCrownEntitiesAct2004,asreferredtoinsection203oftheEducationAct1989.

TheFinancialStatementshavebeenpreparedinaccordancewithgenerallyacceptedaccountingpracticeinNewZealand.TheycomplywithNewZealandEquivalentstoInternationalFinancialReportingStandards(NZIFRS)andotherapplicableFinancialReportingStandards,asappropriateforpublicbenefitentities.

NeworrevisedStandardsandInterpretationsthathavebeenapprovedbutarenotyeteffectivehavenotbeenadoptedbytheUniversityandtheConsolidatedGroupforthereportingperiodended31December2011.TheadoptionoftheseStandardsandInterpretationsisnotexpectedtohaveamaterialrecognitionormeasurementimpactontheseFinancialStatements.

Measurement base

TheFinancialStatementshavebeenpreparedonanaccrualsbasisandarebasedonthehistoricalcostconventionasmodifiedbytherevaluationofcertainassetsandliabilitiesasidentifiedinthesummaryofsignificantaccountingpolicies.Theseincludetherevaluationofavailable-for-salefinancialassets,financialassetsandliabilities(includingderivativeinstruments)atfairvaluethroughprofitorlossandcertainclassesofproperty,plantandequipment.

Functional and presentation currency

TheFinancialStatementsarepresentedinNewZealanddollarsandallvaluesareroundedtothenearestthousanddollars,unlessotherwisestated.ThefunctionalcurrencyoftheUniversityanditssubsidiariesisNewZealanddollars.

Changes in accounting policies

Therehavebeennochangesinaccountingpoliciesduringthefinancialyear.

Adoption of the revised NZ IAS 24 Related Party Disclosure

TherevisedNZIAS24RelatedPartyDisclosures(Revised2009)hasbeenadoptedfortheyearended31December2011.TheeffectofadoptingtherevisedNZIAS24is:

• moreinformationisrequiredtobedisclosedabouttransactionsbetweentheUniversityandgovernmentrelatedentities;

and

• commitmentswithrelatedpartiesnowrequiredisclosure.


Standards, amendments, and interpretations issued that are not yet effective and have not been early adoptedStandards,amendments,andinterpretationsissuedbutnotyeteffectiveandwhichhavenotbeenearlyadopted,andarerelevanttotheUniversityandtheConsolidatedGroup,are:

• NZIFRS9FinancialInstrumentswillreplaceNZIAS39FinancialInstruments:RecognitionandMeasurementthroughthefollowingthreemainphases:Phase1ClassificationandMeasurement,Phase2ImpairmentMethodology,andPhase3HedgeAccounting.Phase1ClassificationandMeasurementoffinancialassetshasbeencompletedandhasbeenpublishedinthenewfinancialinstrumentstandardNZIFRS9.NZIFRS9usesasingleapproachtodeterminewhetherafinancialassetismeasuredatamortisedcostorfairvalue,replacingthemanydifferentrulesinNZIAS39.TheapproachinNZIFRS9isbasedonhowanentitymanagesitsfinancialassets(itsbusinessmodel)andthecontractualcashflowcharacteristicsofthefinancialassets.ThefinancialliabilityrequirementsarethesameasthoseofNZIAS39,exceptwhenanentityelectstodesignateafinancialliabilityatfairvaluethroughthesurplusordeficit.Thenewstandardisrequiredtobeadoptedfortheyearended31December2014.TheUniversityandtheConsolidatedGrouphavenotyetassessedtheeffectofthenewstandardandexpectitwillnotbeearlyadopted.

• FRS-44NewZealandAdditionalDisclosuresandAmendmentstoNZIFRStoharmonisewithIFRSandAustralianAccountingStandards(HarmonisationAmendments)issuedinMay2011withthepurposeofharmonisingAustraliaandNewZealand’saccountingstandardswithsourceIFRSandtoeliminatemanyofthedifferencesbetweentheaccountingstandardsineachjurisdiction.Theamendmentsmustbeadoptedfortheyearended31December2012.TheUniversityandtheConsolidatedGrouphavenotyetassessedtheeffectsofFRS-44andtheHarmonisationAmendments.

AstheExternalReportingBoardisconsultingonanewaccountingstandardsframeworkforpublicbenefitentities,itisexpectedthatnonewNZIFRSnoramendmentstoexistingNZIFRSwithamandatoryeffectivedateforannualreportingperiodscommencingonorafter1January2012willbeapplicabletopublicbenefitentities.Thismeansthatthefinancialreportingrequirementsforpublicbenefitentitiesareexpectedtobeeffectivelyfrozenintheshortterm.Accordingly,nodisclosurehasbeenmadeaboutneworamendedNZIFRSthatexcludepublicbenefitentitiesfromtheirscope.

(b) Basis of consolidation

TheconsolidatedFinancialStatementscomprisetheFinancialStatementsoftheUniversity,itssubsidiaries,interestinanassociateandjointventureinterests.

SubsidiariesSubsidiariesareallthoseentitiesoverwhichtheUniversityhasthepowertogovernthefinancialandoperatingpolicies,generallyaccompanyingashareholdingofmorethanonehalfofthevotingrights.SubsidiariesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheUniversity.Theyaredeconsolidatedfromthedatethatcontrolceases.

Inter-companytransactions,balancesandunrealisedgainsontransactionsbetweenconsolidatedentitiesareeliminated.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceoftheimpairmentoftheassettransferred.

Investmentsinsubsidiariesarecarriedatcostintheparententityfinancialstatements.

AssociatesAssociatesareentitiesoverwhichtheUniversityhassignificantinfluencebutnotcontrol,generallyaccompanyingashareholdingbetween20%and50%ofthevotingrights.Investmentsinmaterialassociatesareaccountedforintheparententityfinancialstatementsusingthecostmethodandintheconsolidatedfinancialstatementsusingtheequitymethodofaccounting,afterinitiallybeingrecognisedatcost.

Joint VenturesAjointventureisacontractualarrangementwherebytheUniversityandotherpartiesundertakeeconomicactivitiesthataresubjecttojointcontrol.TheUniversityhasinterestsinjointventureswhichcompriseajointly-controlledentityandjointly-controlledassets.

Jointly-controlled entityInterestinajointly-controlledentitywherebytheventurershaveacontractualarrangementthatestablishesjointcontrolovertheeconomicactivitiesoftheentity.TheUniversityrecognisesitsinterestinthejointly-controlledentityusingtheequitymethodofconsolidation.

Undertheequitymethod,theinvestmentinthejointly-controlledentityiscarriedatcostintheparententityfinancialstatements.Intheconsolidatedfinancialstatements,theinvestmentisinitiallyrecognisedatcostandsubsequentlyadjustedforchangesintheUniversity’sshareofnetassetsofthejointventure,lessanyimpairmentinthevalueofinvestment.TheUniversity’sshareoftheresultsofthejointventureisrecognisedintheIncomeStatement.

ThefinancialstatementsofthejointventurearepreparedforthesamereportingperiodastheUniversity.AdjustmentsaremadewherenecessarytobringtheaccountingpoliciesinlinewiththoseoftheUniversity.


Jointly-controlled assets

Interestinjointlycontrolledassets,wherebytheventurershaveacontractualarrangementthatinvolvesjointcontrolandownershipofassetsdedicatedtothepurposesofthejointventure.TheUniversityrecognisesitsshareofthejointlycontrolledassetsinthefinancialstatements,classifiedaccordingtotheirnature.Liabilitiesandexpensesincurreddirectlyinrespectofinterestsinjointlycontrolledassetsareaccountedforonanaccrualbasis.IncomefromthesaleoruseoftheUniversity’sshareoftheoutputofthejointventureanditsshareofjointventureexpensesarerecognisedwhenitisprobablethattheeconomicbenefitsassociatedwiththetransactionswillflowto/fromtheUniversityandtheamountcanbemeasuredreliably.

(c) revenue recognition

Revenuecomprisesthefairvalueofthesaleofgoodsandservices,netofGoodsandServicesTax,rebatesanddiscountsandaftereliminatingsaleswithintheConsolidatedGroup.Revenueisrecognisedasfollows:

• Governmentgrants–onentitlement;

• Studenttuitionfees–onacoursepercentageofcompletionbasis.Thepercentageofcompletionismeasuredbyreferencetothedaysofthecoursecompletedasaproportionofthetotalcoursedays;

• Researchgrantswhichwillprovidereciprocalbenefitstotheresearchfundingprovider–onthepercentageofcompletionmethod.Thestageofcompletionismeasuredbyreferencetototalexpenditureincurredtodatecomparedwiththefundingprovided.LiabilitiesarerecognisedintheBalanceSheetasafutureobligationtocompletetheresearchinrespectofthegrantswhichareunearnedatthebalancedate.Researchgrantswhichprovidenoreciprocalbenefitstotheresearchfundingproviderarerecognisedasincomewhenthegrantsarereceived;

• Subsidies,donationsandbequests–whentherighttoreceivethefundorassethasbeenestablished;

• Revenuefromthesaleofgoods–whenthegoodshavebeendeliveredandthesignificantrisksandrewardsofownershiphavebeentransferredtothecustomerandcanbemeasuredreliably;

• Revenuefromrenderingaservice–uponthedeliveryoftheservice;

• Interestincome–onatime-proportionbasisusingtheeffectiveinterestmethod;

• Dividendincome–whentherighttoreceivepaymenthasbeenestablished.

(d) Property, plant and equipment

Eachclassofproperty,plantandequipmentisvaluedathistoricalcostorfairvalueless,whereapplicable,anyaccumulateddepreciationandimpairmentlosses.

Land and buildings

Crown-ownedlandandbuildingsthatareusedbytheUniversityareincludedaspartoftheUniversity’sproperty,plantandequipment.TheUniversityhassoleandunrestricteduseoftheselandandbuildingsandhasassumedownershipoftheseassetsbymeansofaleasefromtheMinistryofEducationforaperiodofthirtythreeyearsfrom1November1994,withrightsofrenewalfortwofurtherperiodsofthirtythreeyearseach.

Followinginitialrecognitionatcost,alllandandbuildings,whetherownedbytheCrownorpurchasedandbuiltoutoftheUniversity’sreserves,areshownatfairvalue.Revaluationoflandandbuildingsiscarriedoutatleasteverythreeyearsbyindependentvaluerstoensurethatthecarryingamountsoftheseassetsdonotdiffermateriallyfromtheirfairvalueatthebalancedate.

AnyrevaluationsurplusarisingonrevaluationiscreditedtotheassetrevaluationreserveincludedintheequitysectionoftheBalanceSheet.Decreasesthatoffsetpreviousincreasesofthesameassetclassarechargedagainsttheassetrevaluationreservedirectlyinequity;allotherdecreasesarechargedtotheIncomeStatement.

Library collection

Thelibrarycollectionisvaluedathistoricalcostlessaccumulateddepreciationand,whereapplicable,anyimpairmentlosses.

Work in progress

Workinprogressisvaluedonthebasisofexpenditureincurreduptobalancedateandisnotdepreciated.Financingcostshavenotbeencapitalisedduringtheconstructionofassets.Thetotalcostofaprojectistransferredtotherelevantassetclassoncompletionandisthendepreciated.

Depreciation

Property,plantandequipmentaredepreciatedusingthestraight-linemethod(exceptformotorvehicles,whichusesthediminishingvaluemethod)toallocatecostorrevaluedamounttoresidualvalueovertheirestimatedusefullives,asfollows:


Buildings 20-50yearsstraight-line

Librarycollection 5-10yearsstraight-line

Plantandequipment 5-20yearsstraight-line

Specialtyelectronics 6yearsstraight-line

Furnitureandfittings 5yearsstraight-line

Leaseholdimprovements 5yearsstraight-line

Officeequipment 5yearsstraight-line

Computersandelectronicequipment 3yearsstraight-line

Motorvehicles 20%diminishingvalue

Residualvaluesandusefullivesarereviewedandadjusted,ifappropriate,ateachbalancedate.Anychangesareaccountedforprospectivelyasachangeinaccountingestimate.Anasset’scarryingamountiswrittendownimmediatelytoitsrecoverableamountifitscarryingamountisgreaterthanitsestimatedrecoverableamount(seeNote(f)).Gainsandlossesondisposalsaredeterminedbycomparingproceedswithcarryingamounts.TheseareincludedintheIncomeStatement.

Land,worksofartandworkinprogressarenotdepreciated.

(e) intangible assets

Computer software

Computersoftwarelicencesarecapitalisedonthebasisofthecostsincurredtoacquireandtobringthesoftwaretouse.Thesecostsareamortisedonastraight-linebasisovertheirestimatedusefullives,beingthreeyears.

Costsassociatedwithmaintainingcomputersoftwarearerecognisedasanexpensewhenincurred.CoststhataredirectlyassociatedwiththedevelopmentofidentifiableanduniquesoftwarecontrolledbytheUniversity,andthatwillprobablygenerateeconomicbenefitsexceedingcostsbeyondoneyear,arerecognisedasintangibleassets.Directcostsincludesoftwaredevelopment,employeecostsandanappropriateportionofrelevantoverheads.Computersoftwaredevelopmentcostsrecognisedasassetsareamortisedonastraight-linebasisovertheirestimatedusefullives,beingthreeyears.

Programme development

Costsincurredondevelopmentofnewacademicprogrammesarecapitalisedtotheextentthatsuchcostsareexpectedtoberecovered.Capitalcostsareamortisedfromthecommencementofaparticularprogrammeonastraight-linebasisovertheperiodoftheirexpectedbenefit,beingthreeyears.

Intellectual property

Intellectualpropertyisvaluedatcostofacquisitionandisamortisedonastraightlinebasisovertheperiodofitsexpectedbenefits,beingfiveyears.

(f) impairment

Financial assets

AteachbalancedatetheUniversityassesseswhetherthereisanyobjectiveevidencethatafinancialassetorgroupoffinancialassetsisimpaired.ImpairmentlossesarerecognisedintheIncomeStatement.

Non-financial assets

Non-financialassetsthathaveanindefiniteusefullife,orarenotyetavailableforuse,arenotsubjecttoamortisationandaretestedannuallyforimpairment.Non-financialassetsthathaveafiniteusefullifearesubjecttoamortisationordepreciationandarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverable.Animpairmentlossisrecognisedastheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellanditsvalueinuse.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cash-generatingunits).ImpairmentlossesarerecognisedintheIncomeStatement.

(g) cash and cash equivalents

Cashandcashequivalentsincludecashonhand,depositsheldatcallwithbanks,othershort-term,highlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorlessthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalues,andbankoverdrafts.BankoverdraftsareshownwithinborrowingsincurrentliabilitiesontheBalanceSheet.


(h) short-term investments

Short-termdepositswithfinancialinstitutionsthathavematuritiesofgreaterthanthreemonths,butlessthanoneyear,areclassifiedasshort-terminvestmentsandareincludedwithininvestingactivitiesintheStatementofCashFlows.Interestonshort-terminvestmentsisrecognisedonanaccrualsbasisoverthelifeoftheinvestment.

(i) trade and other receivables

Tradeandotherreceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcost,lessanyprovisionforimpairment.

Collectabilityofreceivablesisreviewedonanongoingbasis.Receivableswhichareknowntobeuncollectablearewrittenoff.AprovisionforimpairmentofreceivablesisestablishedwhenthereisobjectiveevidencethattheUniversitywillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofreceivables.

(j) inventories

Inventoriesavailableforresalearevaluedatthelowerofcostandnetrealisablevalue,withadjustmentforslowmovingandobsoleteinventories.Costisdeterminedonafirst-infirst-outbasis.Allconsumablesarechargeddirectlytoexpenditure.Noinventoriesarepledgedassecurityforliabilitiesatthebalancedate.

(k) investments and other financial assets

TheUniversityclassifiesitsinvestmentsintothefollowingcategories:financialassetsatfairvaluethroughprofitorloss,loansandreceivables,held-to-maturityinvestments,andavailable-for-salefinancialassets.Theclassificationdependsonthepurposeforwhichtheinvestmentswereacquired.TheUniversitydeterminestheclassificationofitsinvestmentsatinitialrecognitionandre-evaluatesthisdesignationateachbalancedate.

Financial assets at fair value through profit or loss

Thiscategoryhastwosubcategories:financialassetsheldfortrading,andthosedesignatedatfairvaluethroughprofitorlossoninitialrecognition.Afinancialassetisclassifiedinthiscategoryifacquiredprincipallyforthepurposeofsellingintheshort-termorifsodesignatedbytheUniversity.

ThepolicyoftheUniversityistodesignateafinancialassetatfairvaluethroughprofitandlossifthereexiststhepossibilityitwillbesoldintheshort-termandtheassetissubjecttofrequentchangesinfairvalue.Assetsinthiscategoryareclassifiedascurrentassetsiftheyareeitherheldfortradingorareexpectedtoberealisedwithin12monthsofthebalancedate.Derivativesthatarenotdesignatedashedgesarecategorisedasfinancialassetsheldfortrading.

Loans and receivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.TheyarisewhentheUniversityprovidesmoney,goodsorservicesdirectlytoadebtorwithnointentionofsellingthereceivable.Theyareincludedincurrentassets,exceptforthosewithmaturitiesgreaterthan12monthsafterthebalancedatewhichareclassifiedasnon-currentassets.LoansandreceivablesareincludedinreceivablesintheBalanceSheet.

Held-to-maturity investments

Held-to-maturityinvestmentsarenon-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturitiesthattheUniversityhasthepositiveintentionandabilitytoholdtomaturity.

Available-for-sale financial assets

Available-for-salefinancialassets,comprisingprincipallymarketableequitysecurities,arenon-derivativesthatareeitherdesignatedinthiscategoryornotclassifiedinanyoftheothercategories.Theyareincludedinnon-currentassetsunlesstheUniversityintendstodisposeoftheinvestmentwithin12monthsofthebalancedate.

Purchasesandsalesofinvestmentsarerecognisedontrade-date,thedateonwhichtheUniversitycommitstopurchaseorselltheasset.Allinvestmentsareinitiallyrecognisedatfairvalueplustransactioncostsforallfinancialassetsnotcarriedatfairvaluethroughprofitorloss.FinancialassetscarriedatfairvaluethroughprofitorlossareinitiallyrecognisedatfairvalueandtransactioncostsareexpensedintheIncomeStatement.InvestmentsarederecognisedwhentherightstoreceivecashflowsfromtheinvestmentshaveexpiredorhavebeentransferredandtheUniversityhastransferredsubstantiallyallrisksandrewardsofownership.

Available-for-salefinancialassetsandfinancialassetsatfairvaluethroughprofitorlossaresubsequentlycarriedatfairvalueoratcostincaseswherethefairvaluecannotbereliablymeasured.Loansandreceivablesandheld-tomaturityinvestmentsarecarriedatamortisedcostusingtheeffectiveinterestmethod.


RealisedandunrealisedgainsandlossesarisingfromchangesinthefairvalueofthefinancialassetsatfairvaluethroughprofitorlosscategoryareincludedintheIncomeStatementintheperiodinwhichtheyarise.Unrealisedgainsandlossesarisingfromchangesinthefairvalueofnon-monetarysecuritiesclassifiedasavailable-for-salearerecognisedinequityintheavailable-for-salerevaluationreserve.

Whensecuritiesclassifiedasavailable-for-salearesoldorimpaired,theaccumulatedfairvalueadjustmentsareincludedintheIncomeStatementasgainsandlossesfrominvestmentsecurities.

Thefairvaluesofquotedinvestmentsarebasedoncurrentbidprices.Ifthemarketforafinancialassetisnotactive(andforunlistedsecurities),theUniversityestablishesfairvaluebyusingappropriatevaluationtechniques.Theseincludereferencetothefairvalueofrecentarm’slengthtransactions,involvingthesameinstrumentsorotherinstrumentsthataresubstantiallythesame,discountedcashflowanalysis,andoptionpricingmodelsrefinedtoreflecttheissuer’sspecificcircumstance.Wherethefairvaluecannotbereliablydeterminedtheinvestmentsaremeasuredatcost.

TheUniversityassessesateachbalancedatewhetherthereisobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.Inthecaseofequitysecuritiesclassifiedasavailable-for-sale,asignificantorprolongeddeclineinthefairvalueofthesecuritybelowitscostisconsideredanindicatorthatthesecuritiesareimpaired.Ifanysuchevidenceexistsforavailable-for-salefinancialassets,thecumulativeloss,measuredasthedifferencebetweentheacquisitioncostandthecurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinprofitorloss,isremovedfromequityandrecognisedintheIncomeStatement.ImpairmentlossesrecognisedintheIncomeStatementonequityinstrumentsarenotreversedthroughtheIncomeStatement.

(l) Leases

Finance leasesLeaseswheretheUniversityassumessubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases,whetherornottitleiseventuallytransferred.

Financeleasesarecapitalisedatthelowerofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsatinceptionofthelease,lessaccumulateddepreciationandimpairmentlosses.Thecorrespondingliabilitytothelessor,netoffinancecharges,isincludedintheBalanceSheetasafinanceleaseobligation.

Leasepaymentsareapportionedbetweenfinancechargesandreductionofthefinanceleaseobligationsoastoachieveaconstantrateofinterestontheremainingbalanceoftheliability.FinancechargesareincludedintheIncomeStatementasfinancecosts.

Capitalisedleasedassetsaredepreciatedovertheestimatedusefullifeoftheassetortheleaseterm,whicheverisshorter.

Foraleaseoflandandbuildingsinwhichtheminimumleasepaymentscannotbeallocatedreliablybetweenthelandandthebuildingelementsinproportiontotherelativefairvaluesoftheleaseholdinterestsinthelandelementandbuildingselementoftheleaseattheinceptionofthelease,theentireleaseisclassifiedasafinancelease,unlessitisclearthatbothelementsareoperatingleases,inwhichcasetheentireleaseisclassifiedasanoperatinglease.

Operating leasesLeaseswherethelessorretainssubstantiallyalltherisksandrewardsofownershipareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelessor)arechargedtotheIncomeStatementonastraight-linebasisovertheperiodofthelease.

(m) foreign currency translation

TransactionsinforeigncurrenciesaretranslatedtoNewZealanddollarsattheforeignexchangeraterulingatthedateofthetransaction.MonetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthebalancedatearetranslatedtoNewZealanddollarsattheforeignexchangeraterulingatthatdate.AllforeignexchangedifferencesarisingontranslationarerecognisedintheIncomeStatement.

(n) derivative financial instruments and hedge accounting

TheUniversityusesderivativefinancialinstruments,suchasinterestrateswapsandforwardforeignexchangecontractstohedgeitsinterestraterisksandforeigncurrencyrisksrespectively.Inaccordancewithitstreasurypolicy,theUniversitydoesnotholdorissuederivativefinancialinstrumentsfortradingpurposes.However,derivativesthatdonotqualifyforhedgeaccountingareaccountedforastradinginstruments.Derivativefinancialinstrumentsareinitiallyrecognisedatfairvalueonthedateaderivativecontractisenteredintoandaresubsequentlyremeasuredattheirfairvalue.Thefairvaluesofinterestrateswapsandforwardforeignexchangecontractsaredeterminedbyreferencetomarketvaluesforsimilarinstruments.


Forthepurposesofhedgeaccounting,alltheUniversity’shedginginstrumentsaredesignatedascashflowhedges.Acashflowhedgeisdefinedasthatwhichmitigatestheexposuretovariabilityincashflowsattributabletoaparticularriskassociatedwitharecognisedassetorliability,firmcommitment,orhighlyprobableforecasttransaction,whichcouldaffectprofitorloss.Acashflowhedgeprotectsagainsttheriskcausedbyvariableprices,costs,ratesorterms,whichcauseuncertaintyinthefuture.

TheUniversitydocuments,attheinceptionofthetransaction,therelationshipbetweenhedginginstrumentsandhedgeditems,aswellasitsriskmanagementobjectiveandstrategyforundertakingvarioushedgetransactions.TheUniversityalsodocumentsitsassessment,bothathedgeinceptionandonanongoingbasis,ofwhetherthederivativesthatareusedinhedgingtransactionsarehighlyeffectiveinoffsettingchangesinfairvalueorcashflowsofhedgeditems.

TheportionofthegainorlossonthehedginginstrumentthatisdeterminedtobeaneffectivehedgeisrecogniseddirectlyinOtherComprehensiveIncomewithintheStatementofComprehensiveIncomeandtheineffectiveportionisrecognisedimmediatelyintheIncomeStatement.

ThegainorlossaccumulatedinequityisrecognisedintheIncomeStatementwhenthehedgedcashflowsaresettled.

ChangesinthefairvalueofanyderivativeinstrumentthatdonotqualifyforhedgeaccountingarerecognisedimmediatelyintheIncomeStatement.

(o) goods and services tax (gst)

AucklandUniversityofTechnologyisaregistered‘person’asdefinedbytheGoodsandServicesAct1985.TheFinancialStatementshavebeenpreparedonaGSTexclusivebasiswiththeexceptionofaccountsreceivableandaccountspayable,whicharestatedGSTinclusive.WhenGSTisnotrecoverableoninputtaxthenitisrecognisedaspartoftherelatedassetorexpense.

ThenetGSTrecoverablefrom,orpayableto,theInlandRevenueDepartmentatbalancedateisincludedaspartoftheaccountsreceivableoraccountspayableintheBalanceSheet.

ThenetGSTpaidto,orreceivedfrom,theInlandRevenueDepartment,includingtheGSTrelatingtoinvestingandfinancingactivities,isclassifiedasanoperatingcashflowintheStatementofCashFlows.

CommitmentsandcontingenciesaredisclosedexclusiveofGST.

(p) taxation

TheUniversityanditssubsidiariesareexemptfromthepaymentofincometaxastheyaretreatedbytheInlandRevenueDepartmentascharitableorganisationsforthepurposesoftheIncomeTaxAct.Accordingly,noprovisionforincometaxhasbeenmade.

(q) Budget figures

ThebudgetfiguresarethoseapprovedbytheCounciloftheAucklandUniversityofTechnologybeforethebeginningofeachfinancialyear.TheyhavebeenpreparedinaccordancewithgenerallyacceptedaccountingpracticeandareconsistentwiththeaccountingpoliciesadoptedbytheCounciloftheUniversityforthepreparationoftheFinancialStatements.

(r) creditors and other payables

Creditorsandotherpayablesareinitiallymeasuredatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

(s) employee entitlements

Employeeentitlementstosalariesandwages,annualleave,sickleave,longserviceleave,retirementleaveandothersimilarbenefitsarerecognisedintheIncomeStatementwhentheyaccruetoemployees.Employeeentitlementstobesettledwithintwelvemonthsarereportedattheamountexpectedtobepaid.Theliabilityforlong-termemployeeentitlementsisreportedasthepresentvalueoftheestimatedfuturecashoutflows.

Annual leaveLiabilitiesforannualleavearemeasuredattheamountofunusedentitlementaccumulatedatbalancedateatrelevantcurrentratesofpay.

Sick leaveLiabilitiesforsickleavearerecognisedtotheextentthatabsencesinthecomingyearareexpectedtobegreaterthanthesickleaveentitlementsearnedinthecomingyear.Theamountiscalculatedbasedontheunusedsickleaveentitlementthatcanbecarriedforwardatbalancedatetotheextentitwillbeusedbyemployeestocoverthosefutureabsences.


Long service leave and retirement leaveLiabilityforlongserviceleaveandretirementleavearecalculatedonanactuarialbasisandarebasedon:likelyfutureentitlementsaccruingtostaff,basedonyearsofservice,yearstoentitlement,thelikelihoodthatstaffwillreachthepointofentitlementandcontractualentitlementsinformation,andthepresentvalueoftheestimatedfuturecashflows.ExpectedfuturepaymentsarediscountedusingmarketyieldsonNewZealandgovernmentbondsatbalancedatewithtermstomaturitythatmatch,ascloselyaspossible,theestimatedfuturecashoutflowsforentitlements.Theinflationfactorisbasedontheexpectedlong-termincreaseinremunerationforemployees.

Research and study leaveLiabilitiesforresearchandstudyleaveismeasuredasthevalueoftheunusedguaranteedentitlementaccumulatedatbalancedatethattheUniversityanticipatesemployeeswilluseinthefutureperiods.

Superannuation Schemes

Defined contribution schemesObligationsforcontributionstoKiwiSaverandtwooftheNationalProvidentFund(NPF)Superannuationschemes,namelytheLumpSumNationalschemeandthePensionNationalscheme,areaccountedforasdefinedcontributionschemesandarerecognisedasanexpenseintheIncomeStatementasincurred.

Defined benefit schemesTheUniversitybelongstotheGovernmentSuperannuationFund(GSF)schemewhichisadefinedbenefitschememanagedbytheGovernmentSuperannuationFundAuthority.TheUniversityhasnounderwritingresponsibilitiesasanyshortfallismetbytheGovernment.Assuch,theGSFschemeisaccountedforasadefinedcontributionscheme.

(t) interest-bearing borrowings

Interest-bearingborrowingsareinitiallyrecognisedatcost,beingthefairvalueoftheconsiderationreceivednetoftransactioncostsassociatedwiththeborrowing.

Subsequenttoinitialrecognition,interest-bearingborrowingsaremeasuredatamortisedcostusingtheeffectiveinterestmethod.Amortisedcostiscalculatedbytakingintoaccountanytransactioncostsandanydiscountorpremiumonsettlement.

GainsorlossesarerecognisedintheIncomeStatementwhentheliabilitiesarederecognisedaswellasthroughtheamortisationprocess.

(u) Borrowing costs

TheUniversityandtheConsolidatedGrouphaveelectedtodefertheadoptionoftherevisedNZIAS23BorrowingCosts(Revised2007)inaccordancewiththetransitionalprovisionsofNZIAS23thatareapplicabletopublicbenefitentities.

Consequently,allborrowingcostsarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

(v) Provisions

ProvisionsarerecognisedwhentheUniversityhasapresentlegalorconstructiveobligationasaresultofpastevents,whenitismorelikelythannotthatanoutflowofresourceswillberequiredtosettletheobligation,andwhentheamounthasbeenreliablyestimated.Provisionsarenotrecognisedforfutureoperatinglosses.

Wherethereareanumberofsimilarobligations,thelikelihoodthatanoutflowwillberequiredinsettlementisdeterminedbyconsideringtheclassofobligationsasawhole.Aprovisionisrecognisedevenifthelikelihoodofanoutflowwithrespecttoanyoneitemincludedinthesameclassofobligationsisnegligible.

Provisionsaremeasuredatthepresentvalueoftheexpendituresexpectedtoberequiredtosettletheobligationusingadiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheobligation.TheincreaseintheprovisionduetopassageoftimeisrecognisedintheIncomeStatement.

(w) equity

Equityismeasuredasthedifferencebetweentotalassetsandtotalliabilities.Equityisdisaggregatedandclassifiedintoanumberofcomponents.Thecomponentsofequityare:

General equityGeneralequitycomprisesEquityandSuspensoryLoansfromtheCrownwithequityconversionfeatures.

Revaluation reservesRevaluationreservescomprise:assetrevaluationreservewhichrelatestotherevaluationoflandandbuildingstofairvalue;available-for-salefinancialassetsrevaluationreservewhichrelatestotherevaluationofmarketableequitysecuritiestofairvalue;andcashflowhedgereservewhichrelatestothegainorlossonthehedginginstrumentthatisdeterminedtobeaneffectivecashflowhedgeandthechangeinthefairvalueofthehedginginstrumentthroughothercomprehensiveincome.


(x) critical accounting estimates and assumptions

InpreparingtheseFinancialStatements,theUniversityandtheConsolidatedGrouphavemadeestimatesandassumptionsconcerningthefuture.Theseestimatesandassumptionsmaydifferfromthesubsequentactualresults.Estimatesandassumptionsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow:

Revaluation of land and buildingsNote16providesinformationabouttheestimatesandassumptionsexercisedinthemeasurementofrevaluedlandandbuildings.TheUniversityreliesontheservicesofindependentvaluerstoassessthecarryingvaluesoflandandbuildings.

Long service leave and retirement leaveNote20providesananalysisoftheexposureinrelationtoestimatesanduncertaintiessurroundinglongserviceleaveandretirementleaveliabilities.Assumptionsmadeincludediscountrates,salaryinflationandthenumberofstaffwhowillreachthepointofentitlement.

Reinstatement provisionNote21representstheUniversity’sestimatedliabilitytoreinstateleasedbuildingstotheiroriginalstateattheexpiryoftheleaseterms.

Depreciation and amortisationAteachbalancedate,theUniversityreviewstheusefullivesandresidualvaluesofitsproperty,plantandequipment,andintangibleassets.Assessingtheappropriatenessofusefullifeandresidualvalueestimatesofproperty,plantandequipment,andintangibleassetsrequirestheUniversitytoconsideranumberoffactorssuchasthephysicalconditionoftheasset,expectedperiodofuseoftheassetbytheUniversity,andexpecteddisposalproceedsfromthefuturesaleoftheasset.Anincorrectestimateoftheusefullifeorresidualvaluewillimpactonthedepreciableoramortisableamountofanasset,thereforeimpactingonthedepreciationoramortisationexpenserecognisedintheIncomeStatement,andonthecarryingamountoftheassetintheBalanceSheet.

Thecarryingamountsofproperty,plantandequipmentaredisclosedinNote16andintangibleassetsinNote17.

Changes to accounting estimates on depreciation charges

TheUniversityandtheConsolidatedGrouphaverevisedtheestimatedusefullivesofcertainproperty,plantandequipmentwitheffectfrom1January2011.BasedontheinformationgainedfromtheUniversity’spropertyexperts,managementbelievesthatpartofthebuildingstructuresandcomponentswillhaveestimatedusefullivesoffiftyyearsfordepreciationpurposes;anddefinedplantequipmentsuchasgymequipment,willhaveestimatedusefullivesoffiveyearsfordepreciationpurposes.Theoriginalestimatedusefullivesweresixtyyearsforbuildingstructuresandcomponents,andtenyearsfortheplantandequipment.

Therevisionswereaccountedforprospectivelyasachangeinaccountingestimatesand,asaresult,thedepreciationchargesforthefinancialyearended31December2011havebeenincreasedby$0.7million.

(y) critical judgements in applying accounting policies

TheUniversityhasmadethefollowingcriticaljudgementsinapplyingaccountingpoliciesfortheyearended31December2011:

Crown-owned land and buildingsPropertyinthelegalnameoftheCrownthatisoccupiedbytheUniversityisrecognisedasanassetintheBalanceSheet.TheUniversityconsidersthatithasassumedallthenormalrisksandrewardsofownershipofthispropertydespitelegalownershipnotbeingtransferred.AccordinglyitwouldbemisleadingtoexcludetheseassetsfromtheFinancialStatements.

TheUniversityhassecuredtheuseofthepropertybymeansofaleasefromtheMinistryofEducationforaperiodofthirtythreeyearsfrom1November1994,withrightsofrenewalfortwofurtherperiodsofthirtythreeyearseach.

Research LeaveSomeacademicstaffareentitledtoguaranteedresearchandstudyleaveincertaincircumstances.Thesubstanceofthisleaveistoenablestafftotakeleavefromteachingdutiesinordertoundertakeresearchactivity,whilstcontinuingtoearntheirsalaryandotheremployeeentitlements.TheUniversityisoftheviewthatguaranteedresearchandstudyleaveisthevalueofthefuturebenefitthatacademicstaffhaveearnedinreturnfortheirserviceinthecurrentandpriorperiods.Accordingly,aliabilityhasbeenrecognisedforsuchleave.


university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s

StudentAchievementComponent(SAC) 122,070 103,725 122,070 103,725TertiaryEducationOrganisationalCapability(TEOC) – 12,618 – 12,618Performance-BasedResearchFunding(PBRF)-Note(A) 7,301 7,145 7,301 7,145Tripartitefunding 4,490 6,963 4,490 6,963PrioritiesforFocus 1,208 1,581 1,208 1,581EncouragingandSupportingInnovation(ESI) 1,417 1,335 1,417 1,335MangereRefugeeCentre 1,530 1,530 1,530 1,530Tertiarystudentswithdisabilities 442 432 442 432MäoriandPacificPeoples 836 657 836 657TOPS/ETSA 831 761 831 761Earlychildhoodeducation-Note(B) 414 430 414 430Othergovernmentfunding(excl.researchcontracts) 1,081 1,532 1,081 1,532

totAL goVernMent oPerAtionAL funding 141,620 138,709 141,620 138,709

TEOCfundingwasdisestablishedon31December2010andthecomponentofTEOCfundingwastransferredintoSACfundingfrom1January2011.Therearenounfulfilledconditionsorothercontingenciesattachedtogovernmentgrantsrecognisedasincome.

note 2: goVernMent oPerAtionAL funding

university consolidated 2011 2010 2011 2010 Actual Actual Actual Actualnote (A): PBrf funding $000s $000s $000s $000s

ProvisionalPBRFfundingreceived 7,107 7,386 7,107 7,386PrioryearPBRFfinalwash-up 194 (241) 194 (241)

total PBrf funding 7,301 7,145 7,301 7,145

incomeEarlychildhoodeducationbulkfunding 408 419 408 419Supportgrantforprovisionallyregisteredteachers 6 11 6 11

total early childhood education funding received 414 430 414 430

Otherincome* 217 190 217 190

total income 631 620 631 620

expenditureOperatingexpenses (669) (694) (669) (694)Supportgrantexpenses (7) (9) (7) (9)

total expenditure (676) (703) (676) (703)

net deficit (45) (83) (45) (83)

Valueofsupportgrantsreceived 6 11 6 11Amountspentonsupportingprovisionally 7 9 7 9registeredteachers

Supportgrantswereappliedto:Teachingresourcesandequipment – 1 _ 1Training,coachingandsupport 7 8 7 8

totAL 7 9 7 9

Numberofsupportgrantsreceived 18 37 18 37

*OtherincomerepresentsearlychildhoodeducationfeesreceivedfromparentswhichhavebeenreflectedaspartofthetradingincomeinNote5.

note (B): early childhood education



Domesticfees 69,387 67,758 69,387 67,758

Internationalfees 47,050 45,091 47,050 45,091

totAL student tuition fees 116,437 112,849 116,437 112,849

note 3: student tuition fees


Researchgrantsreceived 11,655 11,139 11,747 11,194

Researchgrantscarriedforward (889) (1,924) (889) (1,924)

totAL reseArcH grAnts 10,766 9,215 10,858 9,270

Researchgrantscarriedforwardrepresentthefutureobligationstocompleteresearchinrespectofgrantswhichareunearnedatthebalancedate.

note 4: reseArcH grAnts


Tradingincome 14,093 12,835 14,093 12,835

Accommodationincome 5,002 4,376 5,002 4,376

Interestincome 510 373 540 388

Incomefromavailable-for-salefinancialassets 242 4 242 4

Incomefrominvestmentinassociate 20 18 – –

Donationreceived 26 29 26 29

Gainondisposalofproperty,plant&equipment 14 – 14 –

Gainonforeigncurrencytranslation 116 – 116 –

Gainonderivativefinancialinstruments 52 14 52 14

Otheroperatingincome 9,557 8,969 10,208 9,315

totAL otHer incoMe 29,632 26,618 30,293 26,961

note 5: otHer incoMe



Consumables/facultycosts 23,942 22,739 23,942 22,739

Occupancy/propertycosts 12,048 10,376 12,048 10,376

Operatingleasecosts-buildings 8,982 8,087 8,982 8,087

Operatingleasecosts-equipment 1,731 942 1,731 942

Administrationexpenses 9,795 7,859 9,795 7,859

Feestoprincipalauditor:

Financialstatementsaudit(NoteA) 147 149 154 158

Performance-BasedResearchFundaudit 8 8 8 8

Provisionforbaddebts:

Changeinprovisionfordoubtfuldebts (243) 560 (243) 560

Baddebtswrittenoff 311 445 311 445

Councilfees(Note28) 123 110 123 110

Lossondisposalofproperty,plantandequipment – 17 – 17

Lossonforeigncurrencytranslation – 54 – 54

Otheroperatingcosts 13,592 13,560 14,209 13,795

totAL suPPLies And otHer costs 70,436 64,906 71,060 65,150

Note(A)–Includesauditfeesof$9,430(2010:$9,040)forAucklandUniversityofTechnologyFoundationpaidonbehalfbyAucklandUniversityofTechnology.

note 7: suPPLies And otHer costs


Academic:

Salariesandwages 101,014 95,177 101,014 95,177

Definedcontributionschemeemployercontributions 520 466 520 466

Employeeentitlements 2,585 796 2,585 796

Otherstaffrelatedcosts 5,916 4,927 5,916 4,927

110,035 101,366 110,035 101,366

Administration:

Salariesandwages 67,198 62,317 67,198 62,317

Definedcontributionschemeemployercontributions 346 305 346 305

Employeeentitlements 805 459 805 459

Otherstaffrelatedcosts 3,902 3,821 3,902 3,821

72,251 66,902 72,251 66,902

totAL PersonneL costs 182,286 168,268 182,286 168,268

EmployercontributionstodefinedcontributionschemesincludecontributionstoKiwiSaver,theNationalProvidentFundSuperannuationschemesandtheGovernmentSuperannuationFundscheme.

note 6: PersonneL costs



Depreciation(Note16) 28,851 26,913 28,851 26,913

Amortisation(Note17) 1,423 2,568 1,423 2,568

Impairment(Note16&17) 2,864 2,841 2,864 2,841

totAL dePreciAtion, AMortisAtion 33,138 32,322 33,138 32,322And iMPAirMent

note 8: dePreciAtion, AMortisAtion And iMPAirMent


Interestonborrowings 1,171 1,072 1,171 1,072

Financechargesonfinanceleases 2,203 2,476 2,203 2,476

totAL finAnce costs 3,374 3,548 3,374 3,548

note 9: finAnce costs


Cashatbankandinhand 1,078 2,995 2,148 3,951

Short-termbankdeposits 1,743 711 1,743 711

totAL cAsH And cAsH equiVALents 2,821 3,706 3,891 4,662As Per tHe stAteMent of cAsH fLows

Short-termbankdepositsaremadeforvaryingperiodsoftime,fromonedaytothreemonths,dependingonimmediatecashrequirements,andearninterestattherespectiveshort-termdepositrates.Thecarryingvalueofshort-termdepositswithmaturitydatesofthreemonthsorlessapproximatestheirfairvalue.

Thetotalvalueofcashandcashequivalentsthatcanonlybeusedforspecifiedpurposesasoutlinedbydonorsis$1,070,000(2010:$956,000).

Theweightedaverageeffectiveinterestrateforcashandcashequivalentswas3.08%(2010:3.20%).

note 10: cAsH And cAsH equiVALents



trade debtors:

Openingprovisions 601 525 601 525

Additionalprovisionsmadeduringtheyear – 311 – 311

Releaseofprovisionsduringtheyear (77) – (77) –

Amountofprovisionsutilisedduringtheyear (33) (235) (33) (235)

closing provisions for impairment of trade debtors 491 601 491 601

student debtors:

Openingprovisions 745 261 745 261

Additionalprovisionsmadeduringtheyear 145 694 145 694

Amountofprovisionsutilisedduringtheyear (278) (210) (278) (210)

closing provisions for impairment of student debtors 612 745 612 745


Tradedebtors 2,040 3,275 2,157 3,351

Lessprovisionforimpairmentoftradedebtors (491) (601) (491) (601)

1,549 2,674 1,666 2,750

Studentdebtors 1,697 19,957 1,697 19,957

Lessprovisionforimpairmentofstudentdebtors (612) (745) (612) (745)

1,085 19,212 1,085 19,212

Relatedparties(Note27) 95 11 95 6

Accruedrevenue 914 1,141 918 1,141

TertiaryEducationCommission – – – –

Otherdebtors 715 436 759 441

totAL trAde And otHer receiVABLes 4,358 23,474 4,523 23,550

Tradedebtorsandstudentdebtorsarenon-interestbearingandreceiptisnormallyon30-dayterms,thereforethecarryingvalueoftradeandotherreceivablesapproximatestheirfairvalue.

Movementsintheprovisionforimpairmentoftradedebtorsandstudentdebtorsareasfollows:

note 11: trAde And otHer receiVABLes


university consolidated

Gross Impairment Net Gross Impairment Net $000s $000s $000s $000s $000s $000s

trade debtors:

2011 –Under30days 1,492 – 1,492 1,609 – 1,609

31–60days 156 (99) 57 156 (99) 57

61–90days 62 (62) – 62 (62) –

Over90days 330 (330) – 330 (330) –

total trade debtors 2,040 (491) 1,549 2,157 (491) 1,666

2010 –Under30days 2,052 – 2,052 2,128 – 2,128

31–60days 408 – 408 408 – 408

61–90days 257 (43) 214 257 (43) 214

Over90days 558 (558) – 558 (558) –

total trade debtors 3,275 (601) 2,674 3,351 (601) 2,750

student debtors:

2011 – Under30days 426 – 426 426 – 426

31–60days 326 – 326 326 – 326

61–90days 49 – 49 49 – 49

Over90days 896 (612) 284 896 (612) 284

total student debtors 1,697 (612) 1,085 1,697 (612) 1,085

2010 – Under30days 18,419 – 18,419 18,419 – 18,419

31–60days 102 – 102 102 – 102

61–90days 117 – 117 117 – 117

Over90days 1,319 (745) 574 1,319 (745) 574

total student debtors 19,957 (745) 19,212 19,957 (745) 19,212

note 11: trAde And otHer receiVABLes (continued)

Theageingprofileoftradedebtorsandstudentdebtorsatthebalancedateisasfollows:


name of entity country of nature of ownership interest incorporation business 2011 2010

AucklandUniversityof NewZealand Promoteacademic 100% 100%TechnologyFoundation excellenceatAuckland UniversityofTechnology bycharitablemeans.

AUTEnterprisesLimited NewZealand Commercialisationof 100% 100% researchandprovision ofconsultingservices.

university

2011 2010 Actual Actual $000s $000s

investment in subsidiaries:

AucklandUniversityofTechnologyFoundation – –

AUTEnterprisesLimited 100 100

totAL inVestMent in suBsidiAries 100 100

note 13: inVestMent in suBsidiAries


Listed securities (at fair value):

IndependentNews&MediaPlc 2 4 2 4

2 4 2 4

unlisted securities (at cost, less impairment):

NewZealandVice-Chancellors’Committee 100 100 100 100

PolytechnicsInternationalNewZealandLimited 33 33 33 33

NewZealandTertiaryEducationConsortiumLimited – 20 – 20

133 153 133 153

totAL AVAiLABLe-for-sALe finAnciAL Assets 135 157 135 157

Duringtheyear,theshareholdersofNewZealandTertiaryEducationConsortiumLimitedgaveapprovalfortheCompanytogointoavoluntarysolventliquidationandtodistributealltheremainingequitybacktotheshareholders.Asaresult,thesharecapitalinvestmentinNewZealandTertiaryEducationConsortiumLimitedhasbeenvaluedatnil,afterthedistribution.

Listed securitiesThefairvaluesoflistedsecuritiesaredeterminedbyreferencetopublishedcurrentbidpricequotationsinanactivemarket.

unlisted securitiesUnlistedsecuritiesarecarriedatcostlessanyimpairmentasthefairvalueofunlistedsecuritiescannotbereliablydeterminedusingastandardisedvaluationtechniqueandthereisnoactivemarketforsuchsecurities.

note 12: AVAiLABLe-for-sALe finAnciAL Assets


note 14: inVestMent in AssociAte

InvestmentinassociateisaccountedforintheFinancialStatementsusingtheequitymethodofaccounting.Informationrelatingtotheassociateissetoutbelow:

name of entity country of nature of ownership interest incorporation business 2011 2010

LCoNewZealandLimited NewZealand Provideslibrary 20% 20% solutionstomembers oftheConsortium.

Lco new ZeALAnd LiMitedLCoNewZealandLimitedisanunlistedcompanywhichhasthesamebalancedateasAucklandUniversityofTechnology.Thereisnopublishedpricequotationtodeterminethefairvalueofthisinvestment.

TheinvestmentintheassociateiscarriedatcostinAucklandUniversityofTechnology’sBalanceSheet.

university


investment in associate:

LCoNewZealandLimited 417 417

totAL inVestMent in AssociAte 417 417

Therewerenoimpairmentlossesrelatingtotheinvestmentintheassociateandnocapitalcommitmentsnorothercommitmentsrelatingtotheassociate.

AucklandUniversityofTechnology’sshareoftheresultofLCoNewZealandLimitedisasfollows:

consolidated 2011 2010 Actual Actual $000s $000s

share of associate’s balance sheet:

Assets 796 586

Liabilities (270) (51)

net assets 526 535

share of associate’s revenue and profit:

Revenue 291 289

Netsurplus 11 45

Movement in carrying amount of investment in associate:

Balanceatthebeginningoftheyear 535 508

Shareofassociate’snetsurplus 11 45

Dividendreceived (20) (18)

carrying amount at the end of the year 526 535


note 15: inVestMent in JointLy-controLLed entity

AucklandUniversityofTechnologyhasa50%interestinAUT/MillenniumOwnershipTrust,ajointly-controlledentityestablishedbytheUniversityandtheNorthShoreBaysCommunityFitnessCentreTrust,topromotecommunityfitnessandwell-beingandtosupportelitesport.

AUT/MillenniumOwnershipTrusthasthesamebalancedateastheUniversity.

Theinvestmentinthejointly-controlledentityiscarriedatcostintheUniversity’sBalanceSheet.

university 2011 2010 Actual Actual $000s $000s

investment in jointly-controlled entity:

AUT/MillenniumOwnershipTrust 18,300 18,300

totAL inVestMent in JointLy-controLLed entity 18,300 18,300

AucklandUniversityofTechnology’sshareoftheresultofAUT/MillenniumOwnershipTrustisasfollows:

consolidated 2011 2010 Actual Actual $000s $000s

share of jointly-controlled entity’s balance sheet:

Assets 27,684 20,169

Liabilities (6,881) (91)

net assets 20,803 20,078

share of jointly-controlled entity’s revenue and surplus:

Revenue 1,307 821

Netsurplus 726 2,266

Movement in carrying amount of investment in jointly-controlled entity:

Balanceatthebeginningoftheyear 20,421 10,655

Capitalcontribution–cash – 7,500

Shareofjointly-controlledentity’snetsurplus 726 2,266

carrying amount at the end of the year 21,147 20,421

note 16: ProPerty, PLAnt And equiPMent

revaluation of land and buildingsAlllandandbuildings,whetherCrown-ownedorAUT-owned,werelastrevaluedbySeagarsandPartners,RegisteredValuers,at31December2010toafairvalueof$379,261,000usingthedepreciatedreplacementcostmethod.

Adesktoprevaluationoflandandbuildingswascompletedasat31December2011bySeagarsandPartners,RegisteredValuers.Thepercentagechangebetweenthevaluer’sdesktoprevaluationandthecarryingnetbookvalueisnotsignificantlydifferent,andthereforenochangehasbeenmadetotheassetrevaluationreserve.

non-cash transactionsDuringtheyear,theUniversityacquired$4.4millionofcomputersandelectronicequipmentunderfinanceleases(2010:$5.1million).


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Tradecreditors 3,489 3,168 3,489 3,168

Creditorsaccruals 19,206 12,448 19,372 12,567

Sundrycreditors 2,649 3,392 2,649 3,349

GSTpayable 1,390 4,937 1,393 4,940

Withholdingtaxpayable 1,780 1,668 1,780 1,668

Relatedparty(Note27) 430 331 286 223

TertiaryEducationCommission – 241 – 241

totAL trAde And otHer PAyABLes 28,944 26,185 28,969 26,156

Tradeandotherpayablesarenon-interestbearingandarenormallysettledon30-dayterms,thereforethecarryingvalueoftradeandotherpayablesapproximatestheirfairvalue.

note 18: trAde And otHer PAyABLes


Studentsfeesinadvance 19,661 31,314 19,661 31,314

Trustfunds 2 2 2 2

Researchfundingreceivedinadvance 9,250 8,657 9,250 8,657

Otherincomeinadvance 3,288 2,805 3,288 2,805

totAL incoMe in AdVAnce 32,201 42,778 32,201 42,778

note 19: incoMe in AdVAnce



Annualleave 10,245 9,184 10,245 9,184

Accruedsalarypayments 2,122 1,806 2,122 1,806

Sickleave 450 440 450 440

Otheremployeeentitlements 1,490 2,135 1,490 2,135

total employee entitlements – current 14,307 13,565 14,307 13,565

Longserviceleave 793 757 793 757

Retirementleave 1,783 1,457 1,783 1,457

Researchandstudyleave 1,953 – 1,953 –

total employee entitlements – non-current 4,529 2,214 4,529 2,214

totAL eMPLoyee entitLeMents 18,836 15,779 18,836 15,779

Thepresentvalueofthelongserviceleaveandretirementleaveobligationsdependsonanumberoffactorsthataredeterminedonanactuarialbasisusinganumberofassumptions.Twokeyassumptionsusedincalculatingthisliabilityincludethediscountrateof3.81%andthesalaryinflationfactorof3.0%.Anychangesintheseassumptionswillimpactonthecarryingamountoftheliability.

Indeterminingtheappropriatediscountrate,theUniversityconsideredtheinterestratesonNewZealandgovernmentbondswithtermstomaturitysimilartothoseoftheestimatedfuturecashoutflows.Theinflationfactorhasbeenbasedontheexpectedlong-termincreaseinremunerationforemployees.

Since2000whenAucklandUniversityofTechnologyobtaineduniversitystatus,certainlecturershavebeengrantedpositionswithenhancedresearchconditions.Upontheiragreementtocarryforwardandaccumulatetwoweeksannualprofessionaldevelopmenttimeandtheannualindividualentitlementforthefinancialsupportofprofessionaldevelopmentactivities,staffmembersareguaranteedresearchandstudyleaveofnotlessthantheaccumulatedprofessionaldevelopmenttimeandtheaccumulatedannualindividualentitlementsforthefinancialsupportofprofessionaldevelopmentactivities.

note 20: eMPLoyee entitLeMents


reinstatement provision for leased buildings:

Openingbalance 788 669 788 669

Provisionmadeduringtheyear 508 119 508 119

cLosing BALAnce 1,296 788 1,296 788

Comprising:

Current 488 82 488 82

Non-current 808 706 808 706

totAL ProVisions 1,296 788 1,296 788

ThereinstatementprovisionrepresentstheUniversity’sestimatedliabilitytoreinstateleasedbuildingstotheiroriginalstateattheexpiryoftheleaseterm.Theprovisioniscalculatedonthenetpresentvalueoftheestimatedliabilityatleaseexpiry.

note 21: ProVisions



Notlaterthanoneyear 7,404 7,324 7,404 7,324

Laterthanoneyearandnotlaterthanfiveyears 17,801 17,977 17,801 17,977

Laterthanfiveyears 32,895 36,641 32,895 36,641

total minimum finance leases: 58,100 61,942 58,100 61,942

Futurefinancecharges (17,665) (20,012) (17,665) (20,012)

total present value of minimum finance 40,435 41,930 40,435 41,930leases payments

Present value of minimum finance leases:



Laterthanfiveyears 24,814 26,862 24,814 26,862

total minimum finance leases borrowings 40,435 41,930 40,435 41,930

Comprising:

Current 5,320 5,079 5,320 5,079

Non-current 35,115 36,851 35,115 36,851

totAL Present VALue of MiniMuM 40,435 41,930 40,435 41,930finAnce LeAses Borrowings

AucklandUniversityofTechnologyhasenteredintofinanceleasesforvariousproperties,computersandelectronicequipment.Thenetcarryingamountoftheleaseditemswithineachclassofproperty,plantandequipmentisshowninNote16.

ThefinanceleasescanberenewedattheUniversity’soption,withrentssetbyreferencetocurrentmarketratesforitemsofequivalentageandcondition.TheUniversityhastheoptiontopurchaseassetsattheendoftheleaseterms.TherearenorestrictionsplacedontheUniversitybyanyofthefinanceleasingarrangements.

TheUniversityleasesapproximately18,332squaremetres(2010:18,332squaremetres)ofaccommodationspaceinAucklandtoprovideresidentialaccommodationforstudents.

TheUniversityleases6,464computersanditemsofelectronicequipmentforteaching,researchandadministrativepurposes(2010:6,411computersanditemsofelectronicequipment).

note 22: finAnce LeAses Borrowings



current asset portion

ForwardForeignExchangeContract–Non-hedges 52 14 52 14

totAL deriVAtiVe finAnciAL instruMent 52 14 52 14Assets

current liability portion

Interestrateswap–Cashflowhedges (18) (176) (18) (176)

non-current liability portion

Interestrateswap–Cashflowhedges (351) (203) (351) (203)

totAL deriVAtiVe finAnciAL instruMent (369) (379) (369) (379)LiABiLities

fair value

Interest rate swapsThefairvaluesofinterestrateswapshavebeendeterminedbycalculatingtheexpectedcashflowsunderthetermsoftheswapsanddiscountingthesevaluestopresentvalue.Theinputsintothevaluationmodelarefromindependentlysourcedmarketparameterssuchasinterestrateyieldcurves.Mostmarketparametersareimpliedfrominstrumentprices.

Forward foreign exchange contractsThefairvaluesofforwardforeignexchangecontractshavebeendeterminedusingadiscountedcashflowsvaluationtechniquebasedonquotedmarketprices.Theinputsintothevaluationmodelarefromindependentlysourcedmarketparameterssuchascurrencyrates.Mostmarketparametersareimpliedfrominstrumentprices.

Thefairvaluesofinterestrateswapshavebeendeterminedusingadiscountedcashflowsvaluationtechniquebasedonquotedmarketprices.

notional Principal Amount

Interest rate swapsThenotionalprincipalamountsofinterestrateswapcontractsasat31December2011totalled$14.0million(2010:$19.0million).At31December2011,thefixedinterestratesofinterestrateswapsvariedfrom4.46%to4.49%(2010:4.46%to6.98%).

Forward foreign exchange contractsThenotionalprincipalamountsofforwardforeignexchangecontractsinNewZealanddollarstotalled$2.49million(2010:$0.41million).TheforeigncurrencyprincipalamountswereUnitedStatesdollars$2.0million(2010:Australiandollars$0.33million).

note 23: deriVAtiVe finAnciAL instruMents



opening balance 33,550 48,700 33,550 48,700

Netborrowings/(repayments) 7,044 (15,150) 7,044 (15,150)

cLosing BALAnce 40,594 33,550 40,594 33,550

fair valueThecarryingamountsofborrowingsrepayablewithinoneyearapproximatetheirfairvalue,astheimpactofdiscountingisnotsignificant.

note 24: Borrowings

AucklandUniversityofTechnologyrenewedthemulti-facilityagreement(andtheaccompanyingnegativepledgedeed)withtheANZNationalBankLimitedon10October2011.Therenewedfacilityisforamaximumamountof$70millionasfollows:(a) from(andincluding)1Marcheachyearto(andincluding)31Julyeachyear,$40million;(b) (subjectto(c)below)from(andincluding)1Augusteachyearto(andincluding)thelastdayofFebruary

eachyear,$70million;and(c) from(andincluding)1August2014to(andincluding)31December2014,$60million.

At31December2011,$40.59million(2010:$33.55million)hadbeendrawndownonthisfacility.TheUniversityusesthefacilityasaflexiblefinancefacility,seekingtominimisedebtascashflowspermit.Theweightedaverageinterestrateontheoutstandingloanfortheyearwas4.07%(2010:4.28%).


equity:

Balanceatthebeginningoftheyear 187,841 149,161 191,041 149,896

Netsurplusfortheyear 9,221 18,347 10,087 20,812

Transfersfromsuspensoryloans 50,000 20,333 50,000 20,333

Balance at the end of the year 247,062 187,841 251,128 191,041

suspensory Loan:


Converttoequity(Note37) (50,000) (20,333) (50,000) (20,333)

Balance at the end of the year – 50,000 – 50,000

totAL generAL equity 247,062 237,841 251,128 241,041

Duringthefinancialyear,thesuspensoryloanamountof$50millionwasconvertedintoequityuponreceivingtheConversionConfirmationNoticefromtheCrownasdetailedinNote37.

note 25: generAL equity



Assets revaluation reserve:


Changesduetorevaluationof:

Crown-ownedland – 4,277 – 4,277

Crown-ownedbuildings – (2,088) – (2,088)

AUT-ownedland – (7,606) – (7,606)

AUT-ownedbuildings – 5,659 – 5,659

Balance at the end of the year 117,424 117,424 117,424 117,424

Available-for-sale financial assets

revaluation reserve:

Balanceatthebeginningoftheyear (37) (33) (37) (33)

Netfairvaluegains/(losses)intheyear (2) (4) (2) (4)

Balance at the end of the year (39) (37) (39) (37)

cash flow hedge reserve:

Balanceatthebeginningoftheyear (378) (7) (378) (7)

Netfairvaluegains/(losses)intheyear 9 (371) 9 (371)

Balance at the end of the year (369) (378) (369) (378)

totAL reVALuAtion reserVes 117,016 117,009 117,016 117,009

note 26: reVALuAtion reserVes

note 27: reLAted PArty trAnsActions

significant transactions with government-related entitiesThegovernmentinfluencestherolesoftheUniversityaswellasbeingamajorsourceofrevenue.TheUniversityhasreceivedfundingandgrantsfromtheTertiaryEducationCommissiontotalling$141.62million(2010:$138.70million)toprovideeducationandresearchservicesfortheyearended31December2011.TheUniversityalsoleases,atanannualrentalamountof$100plusGSTifdemanded,landandbuildingslegallyownedbytheCrown.FurtherinformationontheaccountingforCrown-ownedlandandbuildingsisdisclosedinNote1(y).

collectively, but not individually, significant transactions with government-related entitiesInconductingitsactivities,theUniversityisrequiredtopayvarioustaxesandlevies(suchasGST,PAYE,andACClevies)totheCrownandentitiesrelatedtotheCrown.Thepaymentofthesetaxesandlevies,otherthanincometax,isbasedonthestandardtermsandconditionsthatapplytoalltaxandlevypayers.TheUniversityisexemptfrompayingincometax.TheUniversitypurchasesgoodsandservicesfromentitiesrelatedtotheCrownanditalsoprovidesservicestoentitiesrelatedtotheCrown.Thepurchaseandtheprovisionofgoodsandservicestogovernment-relatedentitiesfortheyearended31December2011aresmallwhencomparedtotheUniversity’stotalexpenditureandrevenueandhaveallbeenconductedonanarms’lengthbasis.ThepurchaseofgoodsandservicesincludedthepurchaseofelectricityfromMeridianEnergy,airtravelfromAirNewZealand,postalservicesfromNewZealandPost,andstudentplacementservicesfromvariousDistrictHealthBoards,SchoolsandPolytechnics.Theprovisionofservicestogovernment-relatedentitiesmainlyrelatedtotheprovisionofeducationalcourses.


note 27: reLAted PArty trAnsActions (continued)

related party transactions with subsidiaries, interest in an associate, and jointly-controlled entityAucklandUniversityofTechnologyistheultimateparentofthegroup.ThegroupcomprisestheUniversity,itssubsidiaries,interestinanassociateandjointventureinterestsasdisclosedintheFinancialStatements.Duringtheyear,thefollowingtransactionswerecarriedoutwithrelatedparties:


suBsidiAry coMPAnies

Auckland university of technology foundation

Donationreceivedonbehalf – 1

Grantsandscholarshipsreceivedonbehalf 77 20

Grantsandscholarshipspaidtosubsidiary 77 –

Grantsandscholarshipsreceivedfromsubsidiary – 5

Creditorpaymentonbehalf 3 1

Accountsreceivable – 5

Accountspayable – –

Aut enterprises Limited

Operatingrevenuereceivedonbehalf 230 70

DevelopmentFundpaidtoSubsidiary 100 188

Operatingexpensespaidonbehalf 194 185

ManagementservicesprovidedtoSubsidiary 100 80

Accountspayable 144 108

AssociAte coMPAny

Lco new Zealand Limited

Purchaseofservices 396 311

Accountspayable 286 223

JointLy-controLLed entity

Aut/Millennium ownership trust

Capitalcontribution–cash – 7,500

Reimbursementofcapitalexpenditure 567 –

Operatingexpensespaidonbehalf 69 10

Accountsreceivable 95 6

Allrelatedpartytransactionsareonmarkettermsandconditions.

Key management personnel university consolidated 2011 2010 2011 2010 Actual Actual Actual Actual $000s $000s $000s $000s

Salariesandothershort-termemployeeentitlements 4,404 3,762 4,404 3,762

Post-employmententitlements – – – –

Otherlong-termbenefits – – – –

Terminationbenefits – – – –

totAL Key MAnAgeMent 4,404 3,762 4,404 3,762PersonneL coMPensAtion


note 27: reLAted PArty trAnsActions (continued)

Key management personnel (continued)KeymanagementpersonnelincludetheChancellor,Vice-Chancellor,MembersofCouncil,andotherseniormanagementpersonnelreportingdirectlytotheVice-Chancellor.

ThereareclosefamilymembersofkeymanagementpersonnelemployedbytheUniversity.ThetermsandconditionsofthosearrangementsarenomorefavourablethantheUniversitywouldhaveadoptediftherewerenosuchrelationship.

TheVice-ChancellorandProViceChancellor(NorthShore)areTrusteesofAUT/MillenniumOwnershipTrust(ajointly-controlledentityoftheUniversity).TheirfeesinrelationtothosepositionsarepaiddirectlytotheUniversity.

councillorsDuringtheyear,thefollowingCouncillorsandkeymanagementpersonnelweremembersoforganisationsthathaveenteredintotransactionswithAucklandUniversityofTechnologyaspartofitsnormaloperations. Accounts Accounts Purchases Sales payable receivable Actual Actual Actual Actual2011 $000s $000s $000s $000s

g campbell VodafoneNZLimited(Director) 803 58 63 –

P dunphy AccidentCompensationCorporation(Director) 681 72 – –NewZealandPost(Director) 296 – 12 –

L Henry CranleighMerchantBankers(Chairman) – – – –Trans-TasmanBusinessCircle(DeputyChairman) 50 4 – –MedtechLimited(Director) 9 – 1 –MinterEllisonRuddWatts(SpecialCounsellor) 105 – 3 –

J Maasland TheRadioNetworkLimited(Chairman) 2 – – –APNNews&Media(Director) 13 – 1 –AucklandRegionalChamberofCommerceand 3 – – –IndustryLimited(Director)

V Bridgwater AucklandTourismEventsandEconomic 17 24 17 –DevelopmentLimited(Director)

2010

P dunphy NewZealandPost(Director) 277 16 22 –AccidentCompensationCorporation(Director) 802 75 – 9

L Henry CranleighMerchantBank(Chairman) 10 – – –TransTasmanBusinessCircle(DeputyChairman) 43 – – –MedtechLimited(Director) 14 – – –

n glavish Health&DisabilityCommission(Chairman) 1 – – –AucklandDistrictHealthBoard(GeneralManager) 1,073 60 – –

J Maasland APNNews&Media(Director) 9 – 2 –

J Martin MinterEllisonRuddWatts(Consultant) 122 – – –

Alltransactionsweremadeonnormalcommercialtermsandconditions.Outstandingbalancesatbalancedateareunsecuredandinterestfree.Noprovisionhasbeenrequiredoranyexpenserecognisedforimpairmentofaccountsreceivablefromrelatedparties(2010:$nil).


note 28: counciLLors’ fees

ThefollowingfeeswereearnedbymembersoftheCouncilofAucklandUniversityofTechnology.


council Member

UAiono – 7

PAlley 3 1

GCampbell 4 –

ACocker 6 5

FDavies 6 7

HDuncan 5 6

PDunphy – 2

KEssuman 3 –

NGlavish – 1

LHenry* 8 8

JHill – 7

PKingi 9 5

LLim 4 –

JMaasland 5 3

JMartin 7 7

VNgLam 7 7

JO’Hara – 3

PPhillips 12 6

PReeves 25 25

DSchofield – 6

JSchofield 11 4

SStephen 3 –

JThompson 5 –

totAL counciLLors’ fees 123 110

*LHenryisaTrusteeofAUT/MillenniumOwnershipTrust(ajointly-controlledentityoftheUniversity)andreceivedfeesof$10,000(2010:$10,000)inrelationtothatposition.



Netsurplusfromoperations 9,221 18,347 10,087 20,812

Adjustments for items not involving cash

Depreciation,amortisationandimpairment 33,138 32,322 33,138 32,322

Increase/(decrease)inemployeeentitlements 2,315 168 2,315 168–termportion

Increase/(decrease)inreinstatementprovision 508 119 508 119

(Gain)/lossonforeigncurrencytranslation (116) 54 (116) 54

(Gain)/lossonderivativefinancialinstruments (52) (14) (52) (14)–non-hedged

Shareofassociate’snetsurplus – – (11) (45)

Shareofjointly-controlledentity’snetsurplus – – (726) (2,266)

total items not involving cash 35,793 32,649 35,056 30,338

Movements in working capital

(Increase)/decreaseintradeandotherreceivables 19,116 (15,921) 18,996 (15,946)

(Increase)/decreaseinprepayments (167) 23 (167) 23

(Increase)/decreaseininventories (10) (44) (10) (44)

Increase/(decrease)intradeandotherpayables 2,759 5,121 2,844 4,879

Increase/(decrease)inincomeinadvance (10,577) 18,246 (10,577) 18,246

Increase/(decrease)incurrentemployeeentitlements 742 2,069 742 2,069

total movements in working capital 11,863 9,494 11,828 9,227

Increase/(decrease)incapitalaccruals (1,553) (1,563) (1,533) (1,545)

(Gain)/lossondisposalofproperty,plant (14) 17 (14) 17andequipment

Add/(less) items classified as investing activities (1,567) (1,546) (1,547) (1,528)

net cAsH fLow froM oPerAting ActiVities 55,310 58,944 55,424 58,849

note 29: reconciLiAtion of net surPLus to net cAsH fLow froM oPerAting ActiVities


Capitalexpenditurecontractedforatbalancedate 50,378 75,541 50,378 75,541butnotyetincurredforproperty,plantandequipment(NoteA)

totAL cAPitAL coMMitMents 50,378 75,541 50,378 75,541

Note(A)–InNovember2010,theUniversityenteredintoaconstructioncontractfor$74.5millionwithFletcherConstructionCompanyLimitedaspartoftheconstructionofa20,000squaremetreprecinctonthecitycampus.

note 30: cAPitAL coMMitMents





Laterthanfiveyears 823 1,167 823 1,167

totAL non-cAnceLLABLe oPerAting LeAses 22,695 22,681 22,695 22,681

AucklandUniversityofTechnologyleasesproperty,plantandequipmentinthenormalcourseofitsbusiness.Themajorityoftheseleaseshaveanon-cancellabletermof36months.TheUniversityhastheoptiontopurchasetheassetattheendoftheleaseterm.

TheUniversityleases29,923squaremetres(2010:26,431squaremetres)ofofficespaceinAucklandforteaching,research,andadministrativepurposes.ThemajorityoftheseleasescanberenewedattheUniversity’soption,withrentssetbyreferencetocurrentmarketratesforitemsofequivalentageandcondition.

note 32: finAnciAL instruMent

financial instrument categoriesTheaccountingpoliciesforfinancialinstrumentshavebeenappliedtotheitemsbelow:


finAnciAL Assets

Loans and receivablesCashandcashequivalents 2,821 3,706 3,891 4,662Short-terminvestments – 129 – 129Tradeandotherreceivables 4,358 23,474 4,523 23,550Investmentscarriedatcost 133 153 133 153

totAL LoAns And receiVABLes 7,312 27,462 8,547 28,494

fair value through other comprehensive incomeListedsecurities 2 4 2 4

derivatives not designated as hedgesForwardforeignexchangecontracts 52 14 52 14

finAnciAL LiABiLities

derivatives designated as cash flow hedgesInterestrateswap 369 379 369 379

financial liabilities measured at amortised costsTradeandotherpayables 28,944 26,185 28,969 26,156Borrowings 40,594 33,550 40,594 33,550

totAL finAnciAL LiABiLities 69,538 59,735 69,563 59,706MeAsured At AMortised costs

note 31: oPerAting LeAses coMMitMents – As Lessee

Commitmentsforfutureaggregateminimumleasepaymentsinrelationtonon-cancellableoperatingleasescontractedatthebalancedatebutnotrecognisedasliabilitiesareasfollows:


Valuation technique Quoted Significant market Observable non-observable Total price inputs inputuniversity 2011 $000s $000s $000s $000s

financial assets Forwardforeignexchangecontracts–non-hedged 53 – 52 –

Listedsecurities 2 2 – –

financial liabilities Interestrateswap–cashflowhedges 369 – 369 –

consolidated 2011




university 2010




consolidated 2010




note 32: finAnciAL instruMent (continued)

fair value hierarchy disclosuresForthoseinstrumentsrecognisedatfairvalueontheBalanceSheet,fairvaluesaredeterminedaccordingtothefollowinghierarchy:

1. Quotedmarketprice–financialinstrumentswithquotedpricesforidenticalinstrumentsinactivemarkets.

2. Valuationtechniqueusingobservableinputs–financialinstrumentswithquotedpricesforsimilarinstrumentsinactivemarketsorquotedpricesforidenticalorsimilarinstrumentsininactivemarketsandfinancialinstrumentsvaluedusingmodelswhereallsignificantinputsareobservable.

3. Valuationtechniqueswithsignificantnon-observableinputs–financialinstrumentsvaluedusingmodelswhereoneormoresignificantinputsarenotobservable.

ThefollowingtableanalysesthebasisofthevaluationofclassesoffinancialinstrumentsmeasuredatfairvalueontheBalanceSheet:


note 33: finAnciAL instruMent risKs

AucklandUniversityofTechnology’sactivitiesexposeittoavarietyoffinancialrisksincludingmarketrisk(interestraterisk,currencyriskandpricerisk),creditriskandliquidityrisk.TheUniversity’sTreasuryManagementPolicyandoverallriskmanagementprogrammefocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotentialadverseeffectsonthefinancialperformanceoftheUniversity.TheUniversityusesderivativefinancialinstrumentssuchasinterestrateswapsandforwardforeignexchangecontractstohedgecertainriskexposures.

FinancialriskmanagementiscarriedoutundertheTreasuryManagementPolicyapprovedbytheCounciloftheUniversity.TheCouncilprovideswrittenprinciplesforoverallriskmanagement,aswellaspoliciescoveringspecificareassuchasinterestraterisk,creditrisk,useofderivativefinancialinstrumentsandnon-derivativefinancialinstruments,andinvestmentofexcessliquidity.

TreasuryManagementPolicydoesnotallowanytransactionsthatarespeculativeinnaturetobeenteredinto.

Market risk

Interest rate riskInterestrateriskistheriskthatthefairvalueorfuturecashflowsoftheUniversity’sfinancialinstrumentswillfluctuateduetochangesinmarketinterestrates.AucklandUniversityofTechnologyisexposedtointerestrateriskfromitsinterest-earningfinancialassetsandinterest-bearingliabilities.

TheUniversityisriskaverseandseekstominimiseexposurearisingfromitstreasuryactivities.Itdoesnotundertakeunnecessaryinvestmentorborrowingactivity,norisitspeculativeintheactivityitundertakes.

TheUniversitymanagesitsinterestrateriskonborrowingsbyusingfloating-to-fixedinterestrateswaps.SuchinterestrateswapshavetheeconomiceffectofconvertingborrowingsatfloatingratesandswappingthemintofixedratesthataregenerallylowerthanthoseavailableiftheUniversityborrowedatfixedratesdirectly.Undertheinterestrateswaps,theUniversityagreeswithotherpartiestoexchange,atspecifiedintervals,thedifferencebetweenfixedcontractratesandfloating-rateinterestamountscalculatedbyreferencetotheagreednotionalprincipalamounts.

Currency riskCurrencyriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuateduetochangesinforeignexchangerates.AucklandUniversityofTechnologyhastransactionalcurrencyexposure.Suchexposurearisesfromthepurchaseofgoodsandservicesincurrenciesotherthanthelocalcurrency.

ItistheUniversity’sTreasuryManagementPolicytomanageforeigncurrencyrisksarisingfromcontractualcommitmentsandliabilitiesthatareabovespecifiedamountsbyenteringintoforwardforeignexchangecontractsorsupplierguaranteedNewZealandDollarpurchasepricecontractstohedgetheforeigncurrencyriskexposure.

Price riskAucklandUniversityofTechnologyisexposedtoequitysecuritiespricerisk.ThisarisesfrominvestmentsheldbytheUniversityandclassifiedintheBalanceSheeteitherasavailable-for-salefinancialassetsoratfairvaluethroughprofitorloss.

TheUniversitydoesnotmanagethepriceriskarisingfrominvestmentsinequitysecurities.Thepriceriskfortheequitysecuritiesisimmaterialintermsofthepossibleimpactonprofitorlossortotalequity.Ithasthereforenotbeenincludedinthesensitivityanalysis.


note 33: finAnciAL instruMent risKs (continued)

credit risk

CreditriskistheriskthatathirdpartywilldefaultonitsobligationstotheUniversity,therebycausingtheUniversitytoincuraloss.TheUniversity’sTreasuryManagementPolicylimitstheamountofcreditexposuretoanyonefinancialinstitutionororganisation.TheUniversityonlyinvestsfundswithentitiesthathaveaStandardandPoor’screditratingofatleast‘A-2’forshort-termand‘A’forlong-terminvestments.

TheUniversityhasnocollateralorothercreditenhancementsforfinancialinstrumentsthatgiverisetocreditrisk.

Themaximumcreditexposureforeachclassoffinancialinstrumentisasfollows:


Cashandcashequivalents 2,821 3,706 3,891 4,662

Short-terminvestments – 129 – 129

Tradeandotherreceivables 4,358 23,474 4,523 23,550

totAL credit risK 7,179 27,309 8,414 28,341

ThecreditqualityoffinancialassetsthatareneitherpastduenorimpairedcanbeassessedbyreferencetoStandardandPoor’screditratings(ifavailable)ortohistoricalinformationaboutcounterpartydefaultrates:


counterPArties witH credit rAtings

cash and cash equivalents:

AA- 2,821 3,706 3,891 4,662

total cash and cash equivalents 2,821 3,706 3,891 4,662

short-term investments:

AA- – 129 – 129

total short-term investments – 129 – 129

derivative financial instrument assets:

AA- 52 14 52 14

total derivative financial instrument assets 52 14 52 14

TradeandotherreceivablesarisemainlyfromtheUniversity’soperatingactivities,thereforetherearenoproceduresinplacetomonitororreportthecreditqualityoftradeandotherreceivableswithreferencetointernalorexternalcreditratings.TheUniversityisnotexposedtoanymaterialconcentrationsofcreditrisk.Tradeandotherreceivablebalancesaremonitoredonanongoingbasistoensurethattheexposuretobaddebtsisnotsignificant.



Liquidity risk

Management of liquidity riskLiquidityriskistheriskthattheUniversitywillencounterdifficultyraisingliquidfundstomeetcommitmentsastheyfalldue.Prudentliquidityriskmanagementimpliesmaintainingsufficientcashandtheavailabilityoffundingthroughanadequateamountofunutilisedcommittedcreditfacilities.

TheUniversitymanagesliquidityriskbycontinuouslymonitoringforecastandactualcashflowsandmatchingthematurityprofilesoffinancialassetsandliabilities.ToprovideflexibilityinthemanagementoftheUniversity’sliquidity,theUniversityhasestablishedamulti-facilityagreement(andtheaccompanyingnegativepledgedeed)withtheANZNationalBankLimited(fordetailsrefertoNote24).

Contractual maturity analysis of financial liabilitiesThetablebelowanalysestheUniversity’sfinancialliabilitiesintorelevantmaturitygroupingsbasedontheremainingperiodatbalancedatetothecontractualmaturitydate.Futureinterestpaymentsonfloatingratedebtarebasedonthefloatingrateontheinstrumentatbalancedate.Theamountsdisclosedarethecontractualundiscountedcashflows.

Carrying Contractual Lessthan 1-5 Morethan Amount Cashflows 1year years 5years $000s $000s $000s $000s $000s

uniVersity 2011

Tradeandotherpayables 28,944 28,944 28,944 – –

Netsettledderivativeliabilities 369 369 18 351 –

Financeleases 40,435 58,100 7,404 17,801 32,895

Borrowings 40,594 45,442 1,642 43,800 –

totAL 110,342 132,855 38,008 61,952 32,895

consoLidAted 2011



Financeleases 40,435 58,100 7,404 17,801 32,895

Borrowings 40,594 45,442 1,642 43,800 –

totAL 110,367 132,880 38,033 61,952 32,895

uniVersity 2010



Financeleases 41,930 61,942 7,324 17,977 36,641

Borrowings 33,550 34,982 1,422 33,560 –

totAL 102,044 123,488 35,107 51,740 36,641

consoLidAted 2010



Financeleases 41,930 61,942 7,324 17,977 36,641

Borrowings 33,550 34,982 1,422 33,560 –

totAL 102,015 123,459 35,078 51,740 36,641



Contractual maturity analysis of financial assetsThetablebelowanalysestheUniversity’sfinancialassetsintorelevantmaturitygroupingsbasedontheremainingperiodatthebalancedatetothecontractualmaturitydate.

Carrying Contractual Lessthan 1-5 Morethan Amount Cashflows 1year years 5years $000s $000s $000s $000s $000s

uniVersity 2011

Cashandcashequivalents 2,821 2,821 2,821 – –

Short-terminvestments – – – – –

Tradeandotherreceivables 4,358 4,358 4,358 – –

Netsettledderivativeassets 52 52 52 – –

totAL 7,231 7,231 7,231 - -

consoLidAted 2011


Short-terminvestments – – – – –



totAL 8,466 8,466 8,466 – –

uniVersity 2010


Short-terminvestments 129 129 129 – –



totAL 27,323 27,323 27,323 – –

consoLidAted 2010


Short-terminvestments 129 129 129 – –



totAL 28,355 28,355 28,355 – –



sensitivity analysis

Thetablesbelowillustratethepotentialprofitandlossandequity(excludingretainedsurplus)impactforreasonablypossiblemarketmovementsininterestrates,withallothervariablesheldconstant,basedontheUniversity’sfinancialinstrumentexposuresatbalancedate.


+100 bps –100 bps +100 bps –100 bps

Other Other Other Other Profit equity Profit equity Profit equity Profit equity $000s $000s $000s $000s $000s $000s $000s $000s

2011

interest rAte risK

financial assets

Cashandcashequivalents 28 – (28) – 39 – (39) –

Short-terminvestments – – – – – – – –

financial liabilities

Interestrateswaps – 35 – (35) – 35 – (35)

Borrowings (266) – 266 – (266) – 266 –

total sensitivity to (238) 35 238 (35) (227) 35 227 (35)interest rate risk


+10% –10% +10% –10%


2011

currency risK

financial assets

Cashandcashequivalents (2) – 6 – (2) – 6 –

Forwardforeignexchange (179) – 336 – (179) – 336 –contracts

total sensitivity to (181) – 342 – (181) – 342 –currency risk

equity Price risK

other financial assets

Listedsecurities – 1 – (1) – 1 – (1)

total sensitivity to – 1 – (1) – 1 – (1)equity price risk



+100 bps –100 bps +100 bps –100 bps


2010

interest rAte risK

financial assets

Cashandcashequivalents 37 – (37) – 47 – (47) –

Short-terminvestments 1 – (1) – 1 – (1) –

financial liabilities

Interestrateswaps – 47 – (47) – 47 – (47)

Borrowings (146) – 146 – (146) – 146 –

total sensitivity to (108) 47 108 (47) (98) 47 98 (47)interest rate risk


+10% –10% +10% –10%


2010

currency risK

financial assets

Cashandcashequivalents (169) – 611 – (169) – 611 –

Forwardforeignexchange (39) – 46 – (39) – 46 –contracts

total sensitivity to (208) – 657 – (208) – 657 –currency risk

equity Price risK

other financial assets

Listedsecurities – 1 – (1) – 1 – (1)

total sensitivity to – 1 – (1) – 1 – (1)equity price risk



note 34: cAPitAL MAnAgeMent

TheUniversity’scapitalisitsequity,whichcomprisesretainedsurplusesandreserves.Equityisrepresentedbynetassets.TheUniversitymanagesitsrevenue,expenses,assets,liabilities,andgeneralfinancialdealingsprudently.TheUniversity’sequityislargelymanagedasaresultofmanagingincome,expenses,assetsandliabilities.

TheobjectiveofmanagingtheUniversity’sequityistoensuretheUniversityeffectivelyachievesthegoalsandobjectivesforwhichithasbeenestablished,whilstremainingagoingconcern.

note 35: segMentAL inforMAtion

AucklandUniversityofTechnologyoperatespredominantlyinoneindustry,tertiaryeducation,andinonegeographicalarea,Auckland,NewZealand.

note 36: eXcePtionAL risKs of oPerAting

ThereareanumberoffactorsthatcouldadverselyaffectAucklandUniversityofTechnology’soperatingsurplus.Mostnotably,internationalstudentrevenuecouldbeaffectedbyasignificantchangetoNewZealand’s,orforeigngovernments’,immigrationorvisitors’permitspolicies.Sixteenpercent(2010:15%)oftotalrevenueisderivedfromInternationalstudentfees.

note 37: contingencies

contingent assets

Asat31December2011,acontractor’sperformancebondinthesumof$1,000,000andacontractor’sbondinlieuofretentionsinthesumof$1,500,000,jointlyissuedbytheFletcherConstructionCompanyLimited(Contractor)andtheFletcherTrust&InvestmentCompanyLimited(Sureties),areheldbytheUniversity.

TheseBondsareheldtoensuretheContractorcomplieswithitsobligationsundertheContractDocumentsbetweentheContractorandtheUniversityinrespectoftheconstructionofthe20,000squaremetreWGPrecinct.TheseBondscanbedrawnbytheUniversityincircumstancesshouldtheContractorfailtomeetitsperformanceobligationsunderthecontractdocuments.



$50 million suspensory Loan


Converttoequity (50,000) – (50,000) –

Balance at the end of the year – 50,000 – 50,000


Balanceatthebeginningoftheyear – 8,333 – 8,333

Converttoequity(seenotebelow) – (8,333) – (8,333)

Balance at the end of the year – – – –


Balanceatthebeginningoftheyear – 12,000 – 12,000

Converttoequity(seenotebelow) – (12,000) – (12,000)

Balance at the end of the year – – – –

totAL susPensory LoAns – 50,000 – 50,000

$50 million Suspensory Loan TheUniversityreceivedaConversionConfirmationNoticedated23August2011fromtheCrown.ThisconfirmedthattheUniversityhadmetalltheSpecificObjectiveandPerformanceTargetspecifiedinSchedule2oftheAgreementregardinga$50millionSuspensoryLoanConvertibleintoEquitybetweentheCrownandtheAucklandUniversityofTechnologydated29May2008(“Agreement”).Subjecttotheconversionconditioninclause9.1.1oftheAgreement,thesuspensoryloanamountof$50millionwasconvertedintoequityfromthedateofConversionConfirmationNotice.

$25 million Suspensory Loan In2010,theUniversityreceivedtheEquityConversionConfirmationNoticedated8April2010fromtheCrown.ThisconfirmedthattheUniversityhadmettheconversioncondition6.1.2underthesuspensoryloanagreementandtheremainingsuspensoryloanamountof$8.33millionwasconvertedintoequityfromthatdate.

$12 million Suspensory Loan In2010,theUniversityreceivedtheEquityConversionConfirmationNoticedated16July2010fromtheCrown.ThisconfirmedthattheUniversityhadmettheconversionconditions9.4.1and9.4.2underthesuspensoryloanagreementandthesuspensoryloanamountof$12millionwasconvertedintoequityfromthatdate.

note 37: contingencies (continued)

contingent liabilities

Suspensory loans from CrownIn2008,theUniversityreceivedthreesuspensoryloansfromtheCrowntothevalueof$50million,$25millionand$12million.Theseloanswererecognisedascontingentliabilities.ThesesuspensoryloanshavebeenrecognisedastheCrown’sequityinjectionwithingeneralequityuntiltheoptiontoconvertexpiresat30November2013,30June2010and30June2014respectively.

Duringthefinancialyear,$50million(2010:$20.33million)hasbeenconvertedtoequityfollowingtheUniversitymeetingtheconversionconditionsnotedbelow.Asaresult,allthesuspensoryloansfromtheCrownhavenowbeenconvertedtoequity.


note 38: eXPLAnAtion of VAriAnces AgAinst Budget

Explanationsformajorvariancesagainstbudgetinformationareasfollows:

income statement

Government operational fundingGovernmentoperationalfundingwas$0.9millionaheadofbudgetasaresultofthefollowingunbudgetedactivities;$0.2millionprioryearPBRFwashup,$0.2millionadditionaltrainingcontractsand$0.5millionofothergovernmentgrantsrelatedtoareassuchasPrioritiesforFocus.

Student tuition feesStudenttuitionfeeswere$1.2millionbelowbudgetdrivenbya5%shortfallindomesticenrolments,partiallyoffsetbya5%increaseinInternationalenrolments.

Research grantsResearchgrantsreceivedduringtheyearwere$11.6millionwhichwas$1.1millionabovebudget.Ofthese,$0.9millionwascarriedforward,beingtheresearchgrantsunearnedatbalancedate.

Other incomeOtherincomewas$6.0millionabovebudget.Thesignificantitemswere$0.8millionunbudgetedinterestanddividendincome,$0.7millionfromincreasedenrolmentsinInternationalHouse,$0.7millioninsurancerecoveryrelatedtothewidelyreportedfraudintheBusinessInnovationCentreand$0.4millionfromadditionalshort-courses.ThebalancewasmiscellaneousrecoveriesfromavarietyofsourcesacrosstheUniversity.

Personnel costsTotalpersonnelcostswere$7.5millionabovebudget.Ofthis$1.9millionwasaccruedresearchandstudyleave.Thebalanceof$5.6millionreflecteda5.7%increaseinfull-timeequivalentstaff(FTE).

Depreciation, amortisation and impairmentDepreciationwas$2.8millionabovebudgetprimarilyduetoanadjustmentofdepreciationratestomoreaccuratelyrecognisetheestimatedusefullivesofbuilding,plantandequipment.

Balance sheet

Trade debtors and other receivablesTradedebtorsandotherreceivableswere$4.2millionbelowbudget.Thiswasmainlyduetoadecreaseinstudentdebtors,reflectingdeferredinvoicingofstudentsuntilJanuary2012forthe2012enrolmentyear.Forthe2011enrolmentyear,asubstantialamountofinvoicingwasdoneinDecember2010.

Property, plant and equipmentProperty,plantandequipmentwas$6.4millionabovebudget,mainlyduetotheunbudgeted$4.6millionpurchaseoflandatApolloDrive,MairangiBay,toenablefutureexpansionoftheAUTMillenniumCampus.

Trade and other payablesTradeandotherpayableswere$7.0millionabovebudget.Thiswasmainlyduetoanincreaseincreditoraccruals,offsetbydecreasesinGSTpayableandwithholdingtaxpayable.

Income in advanceIncomeinadvancewas$7.5millionabovebudget.The2011budgetof$24.7millionwasbasedonthe2009actualincomeinadvanceof$24.5million.Changesinenrolmentpatternsandinvoicingproceduresoverthelasttwoyearshaveproducedsignificantmovementsintheincomeinadvancebalancesatbalancedate.

Employee entitlementsEmployeeentitlementswere$4.1millionabovebudget.Thesignificantitemswerea$1.9millionprovisionforresearch&studyleave,a$1.1millionannualleaveaccrual,a$0.8millionrestructuringprovisionanda$0.3millionsalaryaccrual.

Bank borrowingsBankborrowingsof$40.6millionwere$4.1millionbelowthebudgetof$44.7millionatyearend.Thiswasduetoabovebudgetreceiptsfromgovernmentgrants($1.8million)andstudentfees($5.9million),andlowercapitalexpenditure($1.3million),offsetbya$3.2millionincreaseinemployeepaymentsanda$1.5millionincreaseinGST.

Finance lease borrowingsFinanceleaseborrowingsat$40.4millionwere$2.4millionlessthanthebudgetof$42.8million,mainlyduetoahigherproportionofnewequipmentbeingpurchasedoutrightinsteadofbywayoffinanceleases.

statement of cash flows

Theexplanationfor“Bankborrowings”aboveexplainstheCashFlowvariances.


note 39: interest in JointLy controLLed Assets

TheUniversityhasajointventureinterestinKoAwateaEducationCentre,situatedatMiddlemoreHospital.ThejointventureisbetweenCountiesManukauDistrictHealthBoard(39.4%),ManukauInstituteofTechnology(31%),UniversityofAuckland(16.4%)andAucklandUniversityofTechnology(13.2%),withCountiesManukauDistrictHealthBoardasmanagerandoperatorofthejointventure.

ownership interest

Jointly controlled assets nature of joint venture 2011 2010

KoAwateaEducationCentre Partnershipwithhealthcareprofessionalsand 13.2% – educationalinstitutestoimproveefficiencyand achieveeffectiveapplicationofhealthcare.

TheUniversity’sshareofthejointlycontrolledassetswhichareincludedintheFinancialStatementsisasfollows: university


Property,plantandequipment 287 –

totAL JointLy controLLed Assets 287 –

Therewerenomaterialcapitalexpenditurecommitmentsorcontingentliabilitiesinrelationtothejointlycontrolledassets.

note 40: eVents After tHe rePorting Period

Therehavebeennosignificanteventsafterthereportingperiod.

note 41: coMPArAtiVe figures

Certaincomparativefiguresintheprioryearhavebeenreclassifiedtoconformwiththisyear’spresentation.


stAteMent of resources


2011 2010LeArning And teAcHing/reseArcH And deVeLoPMent

e-resources e-journaltitles 111,261 105,462e-booktitles 74,734 57,295e-Reserveitems(AUTonline) 3,702 3,047Researchrepositoryitems(ScholarlyCommons) 1,805 966

Print resources (titles) Books 214,188 207,406Journals(serials) 2,367 2,360Multimedia(AVitems) 17,570 17,308

engAgeMent

online access – full-text downloads e-journalfull-textdownloads 1,691,095 1,928,639e-bookfull-textdownloads 58,562 33,514e-Reservefull-textdownloads 37,443 32,415Researchrepositoryfull-textdownloads 436,868 578,090

online access – page views Researchrepositorypageviews 265,103 193,523Libraryguidespageviews 591,629 592,277Librarywebsitepageviews 1,720,777 1,675,553

Physical access Turnstilecounts(visitstoLibrary) 1,508,200 1,517,197Openinghours(perweek)9 86 86

Loans Printandmultimedia 305,294 335,537Coursereserve(highdemand) 56,294 55,877Interloanitemssuppliedandreceived 9,047 10,508

information services Informationliteracyworkshops(participants) 17,213 14,583Informationliteracyworkshops(groups) 650 612Researchconsultations 3,886 3,729LibraryHelpDeskenquiries 11,786 14,971

stAff TotalLibrarystaff(FTE) 62.7 57.7

sustAinABiLity

expenditure — $000s Operatingexpenditure–excludingdepreciation 5,520 5,345Depreciationandassetimpairment10 9,230 5,689

Totaloperatingexpenditure 14,750 11,034Capitalexpenditure—informationresources 5,232 4,799

total Library expenditure 19,982 15,833

TotalLibraryexpenditure($)perEFTS(MoE 1,025 796andInternational)andFTE

LiBrAry

9 Weeklyopeninghoursincreaseto98hoursforthelastfourweeksofeachsemester10 Theincreaseindepreciationandassetimpairmentiscausedbychangestothedefinitionoftheusefullifeofe-resourcesandserials.Thisresultedina $1.99millionimpairmentcostswriteoffofe-resourcesandserialsolderthanfiveyears


2011 2010

LeArning And teAcHing

computers and student users

Totalnumberofcomputers(includinglaptops) 6,852 6,810

Numberofcomputersinclassroomsandopen-accesslaboratories 5,323 4,586

TotalEFTS:computerratio 3.5:1 4.1:1

computer facilities and support

Availableopen-accesslaboratoryhours11 2,709,384 1,987,879

Totalnumberofopen-accesshoursused 593,544 623,139

Percentageopen-accessusage 21.9% 31.3%

Numberofstudentlog-onstothewirelessnetwork(peak)12 2,090 1,221

Numberofstudentlog-onstothewirelessnetwork(busiestday)13 3,373 1,942

Totalservicedeskenquiries 74,658 75,077

Percentageincidentresolutionwithinfourhours–students14 94.4% –

reseArcH And deVeLoPMent

KARENnetwork(averagetraffic) 23.8Mb –

KARENnetwork(maximumtrafficbothways) 447Mb –

TotalAUTtraffictoGoogleScholar 27,456 Mb 7,839Mb

URLhitstoGoogleScholar 3,071,382 1,370,670

coMMunity engAgeMent

NumberofpageviewsonAUTwebsitefromexternalusers 8,352,049 6,229,581

NumberofdistinctusersforAUTonline 27,025 28,097

Numberofpageviews(events/activities)forAUTonline 506,929 339,549

stAff

StaffsatisfactionwithInformationTechnologyServices(ITS)15 94.1% –

Percentageincidentresolutionwithinfourhours–staff 77.2% –

sustAinABiLity

expenditure — $000s

OperatingexpenditureforITS–excludingdepreciation 11,961 12,050

Depreciation 1,961 1,397

Operatingexpenditureforcomputerleasesinotherdivisions 3,030 3,549

TotaloperatingITSexpenditureforUniversity 16,952 16,996

Capitalexpenditure 1,732 1,558

total its expenditure 18,684 18,554

Percentageincrease/(decrease)totalITSexpenditure <1% 5%

ITSoperatingexpenditureaspercentageoftotal 5.9% 6.3%

Universityexpenditure

ITSsalaries/totalITSoperatingexpenditure 41% 36%

TotalITSstaff(FTE)16 90 82

TotalITSexpenditureperEFTS(MoEandInternational)andFTE($) 959 933

inforMAtion tecHnoLogyserVices

11 Theincreaseinopen-accesshoursfor2011istheresultofalargernumberoflabsprovidingaccessfor24hoursaday/7daysaweek12 Thisistheaveragelog-insinthepeakmonthforusagein2011whichwasOctober13 Thisisthetotalstudentlog-insonthebusiestdaywhichwas4Octoberin2011and11Mayin201014 TheInformationTechnologyServicesreportwasreviewedin2011toalignwithbestpracticereportingandreflectAUT’sstrategicpriorities. Someinformationpresentedinthe2011reportwasnotpreviouslycollectedandcannotbereportedfor2010(thisisindicatedwithadash)15 Thisfigureisbasedonthestaffresponseto“OverallsatisfactionwithITsupport”fromthe2011staffengagementsurvey16 DuetomoreprecisereportingofFTEbyfacultyandadministrationarea,the2010figurefortotalITSstaffhasbeenrestated(previouslyreportedas85FTE)


2011 2010 gross Value Gross Value LAnd Area ha $000s Areaha $000s

crown owned land 16.9 39,202 16.9 39,203

Aut owned landCityCampus 1.0 19,298 1.0 19,298ManukauCampus 7.8 28,022 7.8 28,022AUTMillenniumCampus 1.3 4,552 total land 27.0 91,074 25.7 86,523

2011 2010 net Book NetBook gross Value Gross Value BuiLdings Area m2 $000s Aream2 $000s

crown owned buildingsCityCampus 12,063 20,627 12,062 19,289NorthShoreCampus17 18,947 26,951 19,223 29,622total crown owned buildings 31,010 47,578 31,285 48,911

Aut owned buildingscity campusArtandDesignBuilding 9,266 21,835 9,266 22,053BusinessBuilding 10,681 34,391 10,681 34,705DadleyBuilding 2,975 2,222 2,975 2,296HotelandRestaurantStudiesBuilding 7,887 26,800 7,887 27,096NgäWaiOHorotiuMarae 559 1,624 559 1,640ScienceandTechnologyBuilding 10,012 23,038 10,012 22,869SymondsStreetBuilding 10,320 10,786 10,320 10,987TeAraPoutamaandHikuwaiBuildings 7,896 15,528 7,896 15,714WellesleyLearningCentre(TeAmorangi) 16,500 34,955 16,500 35,13446WakefieldStreet 3,221 2,064 3,221 2,111Otherbuildings18 – 7,766 515 13,501Siteimprovementsandinfrastructure – 1,471 – 1,469Workinprogress – 45,619 – 8,528total city campus 79,317 228,099 79,832 198,103

north shore campusAABuilding 3,320 1,917 3,320 2,135ADBuildingLevel1Extension 553 252 553 232AEBuilding19 515 24 – –AFLectureTheatreComplex 2,059 9,648 1,272 9,812AkorangaLearningCentre 2,677 6,089 2,677 6,126AkorangaAdministrationBuilding 1,129 2,710 1,129 2,741EducationBuilding 817 2,719 817 2,762SportandRecreationCentre 5,930 9,419 5,930 9,481Otherbuildings20 – 4,048 – 2,940Siteimprovementsandinfrastructure – 1,059 – 1,014Workinprogress – 613 – 238total north shore campus 17,000 38,498 15,698 37,481

LAnd And BuiLdings

17 ThegrossareaofCrownownedbuildingsonNorthShoreCampuswasoverstatedin2010.The2011figureincludestheportionofAFLectureTheatre ComplexthatisCrownowned;theremainingportionhasbeencorrectlyallocatedtotheAFLectureTheatreComplexunderAUTownedbuildings18 The2011netbookvaluefor‘Otherbuildings’relatestotherefurbishmentofbuildingsforwhichthegrossfloorareaisincludedunder‘Crownownedbuildings’. The2010netbookvaluefor‘Otherbuildings’onCityCampushasreducedfromwhatwasreportedinthepreviousAnnualReport($17.455million).$2.94 millionisnowshownunder‘Otherbuildings’and$1.01millionisnowshownunder‘Siteimprovementsandinfrastructure’,bothonNorthShoreCampus19 ThegrossareaofAEBuildingwasincorrectlyallocatedto‘Otherbuildings’ontheCityCampusin201020 Thenetbookvaluefor‘Otherbuildings’relatestotherefurbishmentofbuildingsforwhichthegrossfloorareaisincludedunder‘Crownownedbuildings’


2011 2010 net Book NetBook gross Value Gross Value Area m2 $000s Aream2 $000s

Aut owned buildings (continued)

Manukau campus

ManukauCampusbuildings 8,075 18,368 8,075 16,904

Workinprogress – 245 – 361

TotalManukauCampus 8,075 18,613 8,075 17,265

total Aut owned buildings 104,392 285,210 103,605 252,849

total land and buildings 423,862 388,283

Contractualleases(various)21 53,362 46,999

MangereRefugeeCentre 1,312 1,312

university total gross area 190,076 183,201

Less:Nonleasablearea 33,575 31,030

net usable area 156,501 152,171

2011 2010utilised as follows gross taught Area m2 Gross Taught Aream2

usable efts per per Usable EFTSper per Area m2 faculty efts Aream2 Faculty EFTS

faculties

FacultyofAppliedHumanities 15,316 3,554 4.3 15,524 3,816 4.1

FacultyofBusinessandLaw 10,875 4,788 2.3 10,511 4,837 2.2

FacultyofDesignandCreativeTechnologies 35,667 4,692 7.6 34,445 4,777 7.2

FacultyofHealthandEnvironmentalSciences 28,468 4,900 5.8 25,878 4,951 5.2

TeAraPoutama 1,030 219 4.7 1,106 230 4.8

AUTInternationalHouse 1,780 287 6.2 1,658 229 7.2

total faculties 93,136 18,44022 89,122 18,84023

Administration

Administrationservices 33,964 35,596

Carparks 10,712 9,387

Studentaccommodation 15,232 15,759

Indevelopment/vacant24 3,457 2,307

totAL 156,501 152,171

21 Grossareaofcontractualleasesincreasedin2011tomeettheUniversity’sneedformoreofficespacepriortothecompletionoftheWGLearning Precinctin201322 The2011figuredoesnotinclude78EFTSthatarenotassignedtoanyfaculty23 The2010figuredoesnotinclude112EFTSthatarenotassignedtoanyfaculty24 Thegrossusableareaindevelopmentorvacantincreasedin2011duetodevelopmentoftheWGLearningPrecinct