UNIVERSITY OF OTAGO ANNUAL REPORT 2007 university of otago annual report
1 university of otago annual report 2007
UNIVERSITY OF OTAGO CONTACTS
university of otago Leith Street, Dunedin New Zealand Mail PO Box 56, Dunedin 9054, New Zealand Tel 64 3 479 1100 Fax 64 3 479 8692 Email [email protected] Web www.otago.ac.nz christchurch University of Otago, Christchurch 2 Riccarton Avenue Christchurch, New Zealand Mail PO Box 4345, Christchurch 8140, New Zealand Tel 64 3 364 0530 Fax 64 3 364 0525 Email [email protected] wellington University of Otago, Wellington Mein Street, Newtown Wellington South, New Zealand Mail PO Box 7343, Wellington South 6242, New Zealand Tel 64 4 385 5541 Fax 64 4 389 5725 Email [email protected] University of Otago Stadium Centre Westpac Stadium, Waterloo Quay, Wellington Mail PO Box 400, Wellington 6140, New Zealand Tel 64 4 460 9800 Fax 64 4 460 9801 Email [email protected] auckland University of Otago Auckland Centre University of Otago House Levels 3 & 4, 385 Queen Street Auckland, New Zealand Mail PO Box 5543, Wellesley Street, Auckland 1141, New Zealand Tel 64 9 373 9700 Fax 64 9 373 9701 Email [email protected] invercargill College of Education, Southland Campus 100 Nelson Street, Invercargill New Zealand Mail PO Box 886, Invercargill 9840, New Zealand Tel 64 3 211 6724 Fax 64 3 216 1399 Email [email protected]
Published May 2008 ISSN 1171-2708
2 vision
A research-led University with an international reputation for excellence.
ko te aronga
He Whare Wänanga e Aronui ana ki te Rangahau, e Rongonui ana i ngä Töpito o te Ao i te Ao i töna Ikeiketanga.
mission
The University of Otago will advance, preserve and promote knowledge, critical thinking and intellectual independence to enhance the understanding, development and well-being of individuals and society. It will achieve this by building on foundations of broad research and teaching capabilities, unique campus learning environments, its nationwide presence and mana, and international links.
ko te uaratanga
Ko tä Te Whare Wänanga o Otägo he whanake, he pupuri, he whakatairanga hoki i te mätauranga, i te ihomatua tätari kaupapa, i te whakaaroaro motuhake o te tangata, e nui ake ai te möhio, te marama, te hiatotanga, otirä, te oranga o te tangata, o te iwi hoki. E tutuki ai tënei mä te rangahau me te tika märika o te whakaako, mä te whai wänanga ahurei, mä te whakaü i töna mana, me öna toronga puta noa i te motu, i te ao.
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CONTENTS
page
Vision and Mission 3 Locations 5 Council of the University 6 Executive Group 7 University Governance 8 Organisation Chart 9 Chancellor’s Introduction 10 Vice-Chancellor’s Review 12 Achieving Research Excellence 12 Achieving Excellence in Research-informed Teaching 13 Ensuring Outstanding Campus Environments and Student Experience 14 Contributing to the National Good and to International Progress 15 Strengthening External Engagement 16 Building and Sustaining Capability 16 Key Events 18 Research and Postgraduate Teaching 20 Research Achievements 22 Advancement 23 Commercialisation 24 Postgraduate Teaching 24 Cost of Outputs 25 Teaching and Learning 26 Academic Developments 26 Enrolment 27 Internationalisation 29 Developing Teaching and Learning 29 Cost of Outputs 31 Community Service 32 Library Services 34 The Arts 34 New Zealand Marine Studies Centre 34 Alumni 35 Cost of Outputs 35 Statement of Service Performance 36 Statement of Resources 50 Human Resources 50 Library Resources 50 Information Technology 50 Land, Buildings and Capital Development 51 Equal Opportunities 52 Financial Review 56 Statement of Responsibility 57 Statement of Accounting Policies 58 Statement of Financial Performance 66 Statement of Movements in Equity 67 Balance Sheet 68 Statement of Cash Flows 69 Reconciliation of the Net Surplus from Operations 70 Statement of Commitments and Contingencies 71 Notes to the Financial Statements 72 Report of the Auditor-General 103 Summary Facts and Figures 105 Graphs 116
4 auckland University of Otago House Course Information and Recruitment Distance Education Teaching & Conference Multimedia Facilities
wellington University of Otago, Wellington Research and Clinical Training Bachelor of Health Sciences (Radiation Therapy) Postgraduate Courses Distance Education University of Otago Stadium Centre Course Information and Recruitment Teaching & Conference Multimedia Facilities Distance Education
christchurch University of Otago, Christchurch Research and Clinical Training Postgraduate Courses Distance Education
dunedin University of Otago Main Campus Divisions of ~ Health Sciences ~ Humanities ~ Commerce (School of Business) ~ Sciences Administration
INVERCARGILL College of Education, Southland Campus
new zealand
5 5 university of otago annual report 2007
council of the university
mr l j brown mr j f ward professor d c g skegg ms j a flood mr e w ellison [secretary to THE council, and registrar]
dr j d palmer ms k m smith dr m j duxson professor s j todd professor a m wheatley
JUDGE e o k blaikie miss l p isaacs mr m j m sidey ms m a morgan mr s j mclauchlan
ms k a smith ms r l c heal miss h m z lanham mr p w h chin mrs k e grant
6 officers of the university executive group Chancellor Vice-Chancellor Lindsay J Brown BCom(Otago) Professor D C G Skegg OBE BMedSc MB ChB(Otago) DPhil(Oxon) FFPHM FAFPHM FRSNZ Pro-Chancellor John F Ward BCom(Otago) CA Deputy Vice-Chancellor (Academic & International) Professor D Gareth Jones CNZM BSc(Hons) MB BS(Lond) Vice-Chancellor DSc(W Aust) MD (Otago) CBiol FIBiol Professor D C G Skegg OBE BMedSc MB ChB(Otago) DPhil(Oxon) FFPHM FAFPHM FRSNZ Deputy Vice-Chancellor (Research) Professor K Geoffrey White BSc PhD(Otago) FNZPsS FAPS Secretary to the Council, and Registrar FRSNZ Jan A Flood DipPhEd(Otago) Chief Operating Officer A John Patrick BCom(Otago) CA CMA council Pro-Vice-Chancellor (Commerce) Appointed by the Minister of Education Professor George L Benwell BSurv PhD(Melb) MPhil(City) Edward W Ellison MNZCS MISAust James D Palmer BA(Hons) LLB(Hons)(Otago) LLM((Harv) Pro-Vice-Chancellor (Health Sciences) DPhil(Oxon) Professor Don M Roberton MB ChB MD(Otago) FRACP FRCPA Kereyn M Smith DipPhEd (Otago) John F Ward BCom(Otago) CA Pro-Vice-Chancellor (Humanities) Professor Alistair G Fox MA(Cant) PhD(W Ont) Ex Officio Vice-Chancellor Pro-Vice-Chancellor (Sciences) Professor D C G Skegg OBE BMedSc MB ChB(Otago) Professor Vernon A Squire Polar Medal BSc(Hons)(Wales) DPhil(Oxon) FFPHM FAFPHM FRSNZ PhD(Cantab) DSc(Wales) FRSNZ FIMA CMath FNZMS Elected by the academic staff Dr Marilyn J Duxson BSc(Hons) MSc (Melbourne) Pro-Vice-Chancellor (International) PhD (University College London) Professor Sarah J Todd BA(Massey) MCom PhD(Otago) Professor Sarah J Todd BA(Massey) MCom PhD(Otago) Director of Human Resources Professor Antony M Wheatley BSc(Hons) (NUI) PhD(Dub) Kevin J Seales BCom(Cant) MHRINZ Elected by the Court of Convocation Secretary to the Council, and Registrar Judge Edward O K Blaikie LLB(Otago) Jan A Flood DipPhEd(Otago) Miss Lorraine P Isaacs MA(Otago & Hawaii) Mr Michael J M Sidey BCom(Otago) ACA Elected by the general staff Ms Margaret A Morgan MA (Otago) DipArch/RecMgmt (Monash) Appointed after consultation with central organisation of employers Mr Stuart J McLauchlan BCom(Otago) CA Appointed after consultation with central organisation of workers Ms Kristine A Smith BA(Otago) RPN Appointed by the Students’ Association Ms Renée L C Heal BA(Hons)(Otago) Miss Honor M Z Lanham Appointed by the Dunedin City Council Mr Peter W H Chin CNZM LLB(Otago) Co-opted Lindsay J Brown BCom(Otago) Mrs Kathleen E Grant BA LLB DipArts DipLaw(Otago)
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UNIVERSITY GOVERNANCE
Legal status UNIVERSITY AUTONOMY AND The University was established in 1869 by the ACADEMIC FREEDOM University of Otago Ordinance of the Provincial The Education Act 1989 provides statutory Council, the University of Otago Amendment Act recognition of, and protection for, the institutional 1961 and the Education Act 1989. It is governed autonomy of the University and the academic by a Council, which appoints the Vice-Chancellor, freedom of its staff and students. In accordance with who is the chief executive and employer of all other the Act, the Council and the Vice-Chancellor have staff. a duty to act to preserve and enhance university Statutory role autonomy and academic freedom. Defining characteristics of universities in New GOVERNANCE DOCUMENTS Zealand, specified in the Education Act 1989, The University Charter sets out the vision and mission include that their teaching is primarily informed of the University, its core values, special character by research, they are repositories of knowledge and the high-level intent of its contributions to the and expertise, and they accept a role as critic and wider community, nationally and internationally. conscience of society. The University strategic plan, Strategic Direction to The University Council 2012, provides a framework for the development of The Council is constituted and empowered the University. according to legislation. Council is chaired by the The University Profile demonstrates how the Chancellor, and comprises elected, appointed and University will give effect to its Charter, the means co-opted members representing key stakeholders by which it will contribute to the Government’s including alumni, students and staff. strategies and priorities for tertiary education, Committees of Council and how it will monitor its performance in these Specific committees report directly to Council matters. on matters including financial management and performance, audit, capital development, ethics, risk management and statutory compliance. It also has a Treaty of Waitangi committee with equal Ngäi Tahu membership and may, from time to time, establish special working parties to examine particular issues. The Senate Senate reports directly to Council, advising it primarily on academic matters as the Academic Board of the University. Senate is convened by the Vice-Chancellor and its membership is drawn mainly from the heads of academic departments, but also includes other senior academics and representatives of other teaching staff and students. It is, in turn, advised by a number of committees and boards.
8 organisation chart
Council
Vice-Chancellor
Deputy Vice-Chancellor Deputy Vice-Chancellor Chief Operating Officer (Research) (Academic and International)
Secretary Director of Director to the Council, Human of and Registrar Resources Development
Pro-Vice-Chancellor Pro-Vice-Chancellor Pro-Vice-Chancellor Pro-Vice-Chancellor Pro-Vice-Chancellor (Commerce) (Health Sciences) (Humanities) (Sciences) (International)
School of Business
Departments (8)
Faculty of School of Faculty of School of Faculty of Faculty of School of School of Science School of Medicine Physiotherapy Dentistry Pharmacy Arts and Law Mäori, Physical Surveying Social Sciences Pacific and Education Indigenous Studies
Departments Departments Departments (4) (13) (12) Centre (1)
Otago University Dunedin University School of of School of of Medical Otago, Medicine Otago, Sciences Christchurch We llington
Departments Departments Departments Departments (5) (10) (6) (9)
9 university of otago annual report 2007
CHANCELLOR’S INTRODUCTION
I am honoured to present the 2007 Annual Report of Graduations are always highlights of the University the University of Otago. year. In 2007 we held 11, which is a record for us in any year. This included three ceremonies previously Within the limitations of the continued underfunding held by the Dunedin College of Education, including of the University sector in New Zealand, the two firsts for the University – the first time on a marae University of Otago community can be very proud (Murihiku) and the first held in Invercargill city. A of its achievements in 2007 under the outstanding very special ceremony held in Marama Hall was the leadership of our Vice-Chancellor, Professor David awarding of an honorary degree (Doctor of Laws) Skegg. There were many highlights, but two that to Her Excellency, Mary McAleese, the President of deserve special mention were the excellent outcome Ireland. During the year, we were also delighted to in the Performance-Based Research Funding round award five other honorary doctorates, the recipients (which ranked Otago as New Zealand’s top University being Mary Ronnie (Doctor of Literature), Patricia in terms of research quality), and the successful Payne (Doctor of Music), John Hall-Jones (Doctor completion of the $50 million Leading Thinkers of Laws), John Gavin (Doctor of Science) and Robert fundraising campaign. These are commented on in Webster (Doctor of Science). more detail in the Vice-Chancellor’s Review. It was a pleasure to hold two Council meetings On the negative side, the “Undie 500” which saw at campuses outside of Dunedin, the first in May many University of Canterbury students descend on in Invercargill and the second in September in Dunedin for a weekend in August, led to a night of Wellington, coinciding with the official opening of lawlessness by a number of Otago and Canterbury the expanded and redeveloped Wellington campus. students and non-students that we hope will never be repeated. Those involved did not portray the On behalf of Council I extend our grateful thanks to responsible standards of behaviour that the vast staff, students, funders, alumni, supporters and other majority of our students demonstrate. Indeed, with stakeholders for their valued contributions to the this one notable exception, University and community University’s operations and achievements. authorities are unanimous in their view that 2007 saw I am most appreciative of the valuable contributions a significant reduction in rowdy behaviour. of our Councillors, including their participation The successful merger with the Dunedin College in Council meetings, graduations, committees of Education took place at 1 January 2007, and the of Council, working parties, boards of University teacher training and educational research services are companies, informal discussions and as representatives now provided through one entity, the University of of Council at various events. I continue to be Otago College of Education. This merger increased privileged to head such an enthusiastic, committed the University’s roll to its highest ever, and added and cohesive Council, bringing together diverse skills Invercargill as a fourth campus to those at Dunedin, for the overall good of this University of which we are Christchurch and Wellington. all so fond and proud. Financial performance for the year was again satisfactory, with the University recording a net Lindsay Brown surplus of $26.35 million. The consolidated surplus CHANCELLOR for the University and its associated Trusts and companies was $32.12 million, although this does include approximately $5 million of donations which are not available to be applied towards operating expenditure. These donations are, however, required under accounting standards to be reported as income. It is important to recognise that all surpluses are retained within the University and enable it to progress its investment in quality facilities for students and staff, particularly those identified in our Critical Space Plan.
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VICE-CHANCELLOR’S REVIEW
It is pleasing to be able to report on another year excellence”. We know that teaching at a university of excellent progress at the University of Otago. level is most effective and inspiring when the teachers Among many achievements in research, teaching are themselves active in extending knowledge. and community service, a highlight was Otago’s top Moreover, the research conducted in universities is ranking in the Government’s research assessment vital for the economic and social development of the exercise (the Performance-Based Research Fund). nation. The University also exceeded the target of its flagship The University of Otago is one of New Zealand’s two advancement programme, the Leading Thinkers largest research organisations. A report published by initiative. the Ministry of Research, Science and Technology in In March 2006 the University Council approved our 2006 concluded that Otago is New Zealand’s most key planning document, Strategic Direction to 2012. research-intensive university. As in last year’s Annual Report, I will review the year In May 2007 the Tertiary Education Commission under the headings of the six strategic imperatives announced the results of its assessment of research that have been identified by the University of quality, as part of the Performance-Based Research Otago. Fund. The University of Otago achieved the highest ranking for research quality. Close behind Otago were the Universities of Auckland and Canterbury, ACHIEVING RESEARCH EXCELLENCE followed by Victoria, Waikato, Massey, Lincoln The advancement of knowledge is a prime function and AUT. Otago had the highest ranked staff in of any university that is worth the name. Our more subject areas than any other institution. University’s declared vision is to be “a research- These included Biomedical, Clinical Medicine, led University with an international reputation for Earth Sciences, Economics, Education, English
12 Language and Literature, History and Classics, and the Government has now made a welcome move Law, Philosophy, Public Health, Religious Studies to introduce tax credits for R&D. It is to be hoped and Theology, and Sport and Exercise Science. The that this scheme will lead to a genuine increase in the University of Otago also had more first or second- amount of research conducted, but the Government ranked subject areas than any other university. also needs to allocate much more money to bodies such as the Marsden Fund and the Health Research This was a gratifying result, which reflected our Council. Without this investment, New Zealand focus on research excellence and research-informed cannot expect to achieve the knowledge economy teaching in all parts of the University. and the social progress that are vital for our future. The externally-funded research income of the Four Otago professors (Sally Brooker, James Flynn, University increased by 8.1% from $67.5 million in Allan Herbison and Clive Ronson) received the 2006 to $73.0 million in 2007. For the third year in accolade of being elected as Fellows of the Royal a row, University of Otago researchers were awarded Society of New Zealand in 2007. The University’s the largest share of the prestigious Marsden Fund, Distinguished Research Medal was awarded to which supports “blue skies” research in all fields. Professor Keith Hunter, a marine scientist who The University of Otago also gained more than heads the Department of Chemistry. The Carl Smith half of the total available funding from the Health Medal for outstanding research performance by an Research Council, which was more than twice the early career staff member was awarded to Dr Peter amount received by any other institution. Dearden, who has conducted important research in Despite these achievements, we were disappointed developmental genetics. and perplexed that the Tertiary Education One of the most exciting trends at Otago has been Commission again failed to select Otago as the the steady increase in the number of postgraduate host for any of its Centres of Research Excellence research students. There were 1,074 doctoral (CoREs). Our proposals had received outstanding enrolments in 2007, which represented a 14.9% reports from international referees, and several increase on the previous year. In September we held a aspects of the selection process caused us concern. ball at Larnach Castle, to celebrate the fact that more Actually, the whole exercise sent a disheartening than 1,000 people were studying for the PhD degree at message to New Zealand scientists in general. There our three main campuses. The first University of New were 26 new applications for CoREs, including 10 Zealand PhD earned through Otago was conferred in from Otago. Yet the Government agreed to fund only 1927; the number enrolled in 2007 was nearly equal to one new centre, while one of the existing CoREs is half the total number of PhD degrees that have been to be disestablished. One wonders whether decision- awarded in the intervening 80 years. There could be makers in Government realised how much time and no more eloquent illustration of the transformation money had gone into carefully developing proposals of Otago into a major research university. that each involved multiple institutions.
Sadly the CoRE process could be regarded as symbolic of the overall picture with regard to ACHIEVING EXCELLENCE IN research funding in New Zealand. Our scientists RESEARCH-INFORMED TEACHING and scholars spend enormous amounts of time in seeking support for their research, but their In January 2007 the new University of Otago College efforts are often frustrated by the abysmal level of of Education was launched following the merger investment in this country. Not only is our GDP per between the former Dunedin College of Education capita relatively low, but the percentage of that GDP and the University’s Faculty of Education. The invested in research is well below the OECD average. Dean of the College of Education is Professor Helen A report published by the OECD in 2007 concluded May. She is supported by excellent colleagues who that New Zealand’s total research and development will be promoting the development of a research- (R&D) intensity (the ratio of gross expenditure led environment for studies in education and on R&D to GDP) is at 1.14%, which is about half for the optimal training of teachers. One of the the OECD average of 2.25%. The level of research consequences of the merger is that the University of investment by the private sector is particularly low, Otago now has a campus in Southland.
13 university of otago annual report 2007
Partly as a result of the College merger, the reputation, but also because of the outstanding University enrolled the largest number of students campus life it offers. The University is determined in its history (20,665) in 2007. These corresponded to ensure that the physical and social environment to 18,158 equivalent full-time students (EFTS), a at all of its campuses is conducive to sound learning 4.1% increase from the previous year. A substantial and personal development. increase in domestic students was partly offset by a The most important capital project completed reduction in the number of international students. in 2007 was the extension and redevelopment This was largely due to a further reduction in the of the main building at the University of Otago, number of students from China; the number from Wellington. This facility, which provides greatly all other countries combined actually increased in improved teaching and library space, was opened 2007. Students came to the University of Otago from by the Prime Minister in September. There were nearly 90 countries, and it was pleasing to note an continued improvements to facilities at the increase in the proportion of postgraduates among University of Otago, Christchurch. In Dunedin, international students. the most significant development was the purchase Several new course developments are outlined of a hotel complex on an extensive site close to the elsewhere in this report. The University continued University, which has now been developed as New to put considerable emphasis on the quality of Zealand’s first residential college for postgraduate teaching and learning, with the Higher Education students. Abbey College will provide over 80 beds Development Centre playing an important role. in refurbished accommodation of a high quality, Many students improve their study and learning with room types and sizes available for both single skills through the support of our Student Learning students and couples. The complex is fully-catered Centre. Otago has also taken a number of steps to and many of the rooms have en suite bathroom support e-learning. facilities. There are large common rooms and a reading room, and even an indoor heated swimming Teaching Excellence Awards were presented to pool, spa and sauna. Donna Buckingham (Law), Associate Professor Katharine Dickinson (Botany), and Associate The University Council approved several new Professor Pat Langhorne (Physics). Two of these staff projects, including construction of the Hunter also received National Tertiary Teaching Excellence Centre which will provide superb facilities for Awards. health sciences teaching, as well as a cafeteria and other space for students in the southern part of the In our annual surveys of graduates and students, campus to meet and interact. more than 90% of respondents recorded overall satisfaction with the quality of teaching they have Many factors combine to underpin the unique had. It is also heartening to receive continual Otago experience, including the pastoral care feedback from employers about the quality of provided by our residential colleges, the provision Otago graduates. Otago students have been highly of first-rate student support services, the many successful in receiving scholarships for postgraduate activities provided by the Otago University Students’ study overseas. In the case of both the Rhodes Association (OUSA), and our beneficial relationship Scholarships and the Woolf Fisher Scholarships in with the Dunedin City Council and other local 2007, two of the three awards available nationally bodies. In recent years the exceptional relationship were won by Otago students. between the University and its local community was threatened at times by disorderly behaviour on the part of a small minority of students. Following ENSURING OUTSTANDING CAMPUS the recommendations of two working parties, ENVIRONMENTS AND STUDENT which included representatives from the OUSA, EXPERIENCE two new measures were introduced in 2007. First, a Code of Student Conduct was adopted. Secondly, Only 21% of first-year students at the University a Campus Watch service was introduced. By of Otago come from Dunedin. The University August 2007 Campus Watch was fully operational, attracts students from all over New Zealand and with 41 people employed in five teams. Their role internationally, not only because of its academic is essentially pastoral, and their presence in the
14 campus area provides valuable support for students and the Robert Lord Trust. In March 2007 there was in the transition from residential colleges to flatting. a Mozart Fellows’ Reunion Concert, in which the Both initiatives have undoubtedly contributed to music of 10 eminent New Zealand composers was a significant reduction in rowdyism, which has featured. been appreciated by other students as well as the Chairs that have been newly endowed through the surrounding community. Leading Thinkers initiative will also assist national and international progress in several fields. At a function at our Auckland Centre in October, the CONTRIBUTING TO THE NATIONAL Prime Minister announced the endowment of a new GOOD AND TO INTERNATIONAL Chair in Peace and Conflict Studies. The person PROGRESS appointed will lead a centre that will be dedicated Universities should be judged not only by their to reflection on the nature of conflict, its resolution performance in isolation, but also by their and the creation of peaceful environments. It will contribution to the community in the widest bring together academics, students and visitors sense. The University of Otago has made a special from a wide range of disciplines, with one of its key commitment to contribute to the regional and aims being the full and effective involvement of national good, and also to international progress – indigenous peoples. with special attention to the needs of the developing Among other newly endowed centres announced world. Distance learning programmes provide during the year were two in the field of law, one opportunities in fields where Otago has nationally aimed to make the legal system more accessible, unique expertise, particularly in the health sciences. affordable and effective for the public, and the other The University also provides adult and continuing to lead research and public discussion on the legal education courses, and it hosts many conferences challenges from emerging technologies. and open lectures. Staff of the University are encouraged to provide community service in a The University places particular importance on its prodigious range of roles. relationship with Mäori. Apart from our obligations under the Treaty of Waitangi, we recognise that The Hocken Library houses nationally important the future prosperity and welfare of New Zealand heritage collections, including books and depends on attracting an increasing proportion of manuscripts, newspapers and journals, maps and Mäori and Pacific students to complete University plans, paintings and drawings, photographs and qualifications. During 2007 the University’s first music. The unifying themes are the history and Mäori Strategic Framework was adopted. This culture of New Zealand, the Pacific and Antarctica, framework was developed with wide consultation with a particular emphasis on southern New following a stocktake carried out in 2005. The Zealand. In 2007 the University celebrated the framework has six specific goals. They include strong centenary of the signing of the original Deed of accountable leadership, growth and development Trust by our famous benefactor, Dr T M Hocken. As of Mäori staff and students across the University, part of the celebrations, the Otago University Press encouraging high quality research that contributes published a book entitled Treasures from the Hocken to Mäori development aspirations and the Collections. The contents of the Hocken Library knowledge economy, and continuing commitment have grown more than a hundred-fold during its to partnerships with Ngäi Tahu and other iwi. first century. While the University’s primary Treaty-based The University continues to contribute to the partnership is with Ngäi Tahu, it has also developed cultural life of New Zealand through its renowned special links with several other iwi. In 2007 the arts fellowships: the Robert Burns Fellowship in University signed an agreement with a Te Arawa Literature, the Frances Hodgkins Fellowship in health provider called the Tipu Ora Charitable Fine Arts, the Mozart Fellowship in Music, and the Trust. This agreement, which was signed at the Caroline Plummer Fellowship in Dance. Following Tamatekapua Meeting House at Ohinemutu, secures the merger with the Dunedin College of Education, the future of an initiative that involves Otago dental it also now supports a residency for children’s students travelling to Rotorua each year to provide writers, in association with Creative New Zealand
15 university of otago annual report 2007
free treatment for members of the local Mäori relevance, and to collaborate with colleagues in community. Members of the Treaty of Waitangi other universities and in Crown research institutes. Committee also visited Te Puia Springs to renew A good example is the National Energy Research our Memorandum of Understanding with Ngäti Institute, which is hosted by the University of Otago Porou Hauora. This provides for collaboration in and convened by Professor Gerry Carrington. This the teaching of Otago students, especially from the institute is working to improve research on secure, Divisions of Health Sciences and Sciences. Many of sustainable energy through more collaboration our undergraduate and postgraduate students have among researchers, and better linkages to industry, benefited from the training opportunities provided Government and energy consumers. by Ngäti Porou. Professors appointed to new Leading Thinkers chairs The number of Mäori students enrolling at the are also assisting external engagement. For example, University increased even more markedly than the University’s Centre for Science Communication in previous years – from 1,368 in 2006 to 1,535 in was launched in 2007 with the appointment of two 2007 (an increase of 12.2%). Mäori students now professors: Lloyd Davis (to the Stuart Chair) and account for 7.4% of total enrolments and 8.5% of Jean Fleming. The Eamon Cleary Professor of Irish domestic enrolments. It is also worth noting that Studies, Peter Kuch, has not only been developing an the proportion of Mäori students remaining at exciting teaching programme, but also developing University and completing their qualifications is strong community links. In October 2007 he higher at Otago than at New Zealand universities directed New Zealand’s first Irish Film Festival, in general. This must partly reflect the support which had a successful season in both Dunedin and provided by our Mäori Centre and other services. Auckland. The University is also strengthening its links with institutions in Ireland, and in October The number of Pacific Peoples students also it conferred an honorary degree on the President increased, from 545 in 2006 to 584 in 2007. These of Ireland, Mary McAleese. The Dunedin City students benefit from the advice and support of Professor of Entrepreneurship, Brendan Gray, is the Pacific Islands Centre. Pacific students still working to encourage a culture of entrepreneurship account for only 2.8% of total enrolments, and throughout the School of Business, other University we are receiving advice from our Pacific Peoples departments and the business community. Reference Group about further progress in this area. We are committed not only to increasing the An enhanced entrepreneurial spirit is a key element recruitment, retention and achievement of Pacific of a “better-connected” University. The University students, but also to supporting the development is becoming involved with a greater variety of of higher education in the Pacific. As part of this partners, particularly in applied research and commitment, we are providing scholarships for commercialisation. The University’s Enterprise academic staff from the National University of Office comprises a strong and vibrant group, Samoa to come to Otago to study for higher degrees. including staff in Wellington and Auckland. During 2007 a delegation from Otago visited the Progress is also being made in optimising the National University of Samoa, while also hosting an interface between the Enterprise Office and the alumni function in Apia. University’s commercialisation company, Otago Innovation Limited.
STRENGTHENING EXTERNAL ENGAGEMENT BUILDING AND SUSTAINING CAPABILITY The University places a particular emphasis on building relationships with key national bodies, as In order to achieve its goals, the University needs well as with regional and international communities. to secure adequate and diversified funding, and to Clearly this imperative is closely related to the invest in the staff and the physical and information previous one. technology resources required to achieve excellence. Otago researchers are making increasing efforts to The Annual Report shows that the University is in apply their expertise to problems of high national a sound financial position. In 2007 the operating
16 Irish President Mary McAleese shares a light-hearted moment with Vice-Chancellor Professor David Skegg (left) and Chancellor Lindsay Brown.
surplus was $26.4 million, which was 12.4% above scholars. Thanks to the generosity of philanthropists budget. The University exceeded all of the financial (including several of our alumni) and Trusts, we guidelines provided by the Tertiary Education have been able to establish 27 new projects. Most Commission, although we have not yet met the of these are professorial chairs, with many being in University’s own surplus target of a five-year moving fields which will stimulate new academic directions. average of at least 2% of equity. It is recognised that They also include a new research vessel, Polaris II, we need to achieve higher operating surpluses, which is being used by over 20 researchers from so that we can make more rapid progress on our seven departments. Critical Space Plan and other capital improvements. In conclusion, I believe that the University of Otago The University has a pressing need for expanded is in good heart. There is a shared vision of the and improved facilities, both for teaching (as in the importance of high quality research and research- School of Dentistry) and for research. informed teaching. We have taken steps to minimise The Government announced the introduction of a bureaucracy and to foster a collegial approach to new system for funding tertiary education from 2008. decision-making. The main challenges we face at During 2007 we had constructive negotiations with present are the inadequacy of research funding in officials from the Tertiary Education Commission, New Zealand and our need for additional space for as we developed a plan for Government investment. research and teaching. Fortunately there is a good alignment between the I would like to thank my colleagues on the academic Government’s priorities for tertiary education and and general staff for their commitment and loyalty the strategic direction of this University. to the University of Otago. My special thanks are due We were delighted to announce that our Leading to the Deputy Vice-Chancellors, the Chief Operating Thinkers initiative had exceeded its target more Officer and other members of my Advisory Group. than six months ahead of schedule. The aim of this I am also very grateful to the Chancellor and the advancement programme was to raise $50 million other members of the University Council for their (including $25 million provided as matching guidance and support throughout 2007. funds by the Government, under its Partnerships for Excellence scheme) to enable the University Professor David Skegg to attract or retain outstanding researchers and VICE-CHANCELLOR
17 university of otago annual report 2007
key events 2007 senior appointments Richard Barker to the Chair in Statistics. Amanda Barusch as Professor of Social Work and Community Development. Douglas Booth as Dean of the School of Physical Education. Peter Crampton as Dean and Head of Campus at the University of Otago, Wellington. Lloyd Davis to the Stuart Chair in Science Communication. Brian Darlow to the Cure Kids Chair in Paediatric Research. Jean Fleming as a Professor of Science Communication. Majella Franzmann as Pro-Vice-Chancellor (Humanities). Jörg Frauendiener to the Chair in Applied Mathematics. Neil Gemmell to the AgResearch Chair in Reproduction and Genomics. Brendan Gray to the DCC Chair in Entrepreneurship. Brent Hall as Dean of the School of Surveying. Philip Hill to the McAuley Chair in International Health. Angela McCarthy as Professor of Scottish and Irish History. Liam McIlvanney to the Stuart Chair in Scottish Studies. Virginia Nicholls as Director of Marketing and Communications. Lisa Smith as Professor of Education.
emeritus professors The following professors were granted the status of emeritus professor: Professor David Jones (Department of Microbiology and Immunology and Dean of the Otago School of Medical Sciences) and Professor Alan MacGregor (Department of Accountancy and Business Law and Dean of the School of Business).
professorial promotions The following staff were appointed to full professor: Dave Craw (Geology), Kevin Dawkins (Law) and Henry Johnson (Music). Kelvin Lynn (Medicine, Christchurch) was appointed a clinical professor. The following staff were appointed to associate professor: Michael Albert (Computer Science), Michael Baker (Public Health, Wellington), Allan Blackman (Chemistry), Donna Buckingham (Law), John Clark (Mathematics and Statistics), Alison Cree (Zoology), Rohana De Silva (Dentistry), David Duval (Tourism), Richard Edwards (Public Health, Wellington), Elizabeth Franz (Psychology), Ian Jamieson (Zoology), John Knight (Marketing), Pat Langhorne (Physics), Dorothy Oorschot (Anatomy and Structural Biology), Jorge Paredes (Languages and Cultures), Murray Rae (Theology and Religious Studies), David Reith (Women’s and Children’s Health), Abigail Smith (Marine Science), Richard Troughton (Medicine, Christchurch), Peter Whigham (Information Science), Stephen Wing (Marine Science). Robert Kennedy (Anaesthesia, Christchurch) was appointed clinical associate professor. Christopher Charles (Medicine, Christchurch), Mary Cullinan (Dentistry) and Robert Hancox (Preventive and Social Medicine) were appointed research associate professors.
18 obituaries Emeritus Professor Alan Clarke (74). Dean of the Christchurch School of Medicine (1986 – 93), University of Otago Provost (1975 – 79) and the Ralph Barnett Professor of Surgery in Dunedin (1970 – 85). Sir Thomas Davis (90). Former Cook Islands Prime Minister and High Commissioner to New Zealand. An Otago alumnus, he was the first Cook Islander to qualify as a doctor in New Zealand. He was awarded an honorary Doctor of Laws degree in 2005. Professor Jean-Pierre Dufour (54). Professor of Food Science at Otago in 1995 and head of the Department of Food/Clothing and Textile Sciences from 2001. Emeritus Professor James (Jim) Hood (69). Former Deputy Dean of the School of Dentistry (1994 – 2006). Thomas Kay Stuart Sidey (99). Former University Chancellor (1970 – 76), Pro-Chancellor (1959 – 70) and member of the University Council (1947 – 83). Professor John (Sandy) Smith (69). He joined the Department of Microbiology in 1967 and served as its head from 1996 – 2004.
honorary degrees Honorary degrees were conferred on: Emeritus Professor John Gavin (HonDSc), Dr John Hall-Jones (HonLLD), Her Excellency Mary McAleese (HonLLD), Patricia Payne (HonMusD), Mary Ronnie (HonLittD) and Dr Robert Webster (HonDSc).
honours Associate Professor David Gerrard (Dunedin School of Medicine) was made a Companion of the New Zealand Order of Merit for services to sports medicine. Dr Rosemary Beresford (Pharmacy), Emeritus Professor Martin Ferguson (Dentistry) and Dr Robert Miller (Anatomy and Structural Biology) were made Officers of the New Zealand Order of Merit. Associate Professor Peter Schwartz (Pathology) was made a Member of the New Zealand Order of Merit.
19 university of otago annual report 2007
research and postgraduate teaching
English language and literature, history, law, philosophy, public health, and sport and exercise science. The Departments of Philosophy and Psychology warrant particular mention. Philosophy received the highest quality score for any discipline in New Zealand and Psychology had 12 staff identified as world-class researchers, the highest Already recognised as New Zealand’s most research- number of any department in the country. intensive university1 the University of Otago was, In spite of this, the University was unsuccessful in in 2007, ranked as this country’s top university its bid to host a new Centre of Research Excellence. for research quality in the Tertiary Education Otago put forward 10 proposals in the CoRE Commission’s Performance-Based Research Fund funding round; four were short-listed but none was (PBRF) quality evaluation. accepted. While this was disappointing, the process The PBRF evaluation examined the quality of has enabled the University to make major research research performance by all eligible academic and strengths more visible – 10 major research centres research staff in New Zealand universities and other were formally established – and has reinforced tertiary organisations. Otago’s outstanding success national and international collaborations. reflects the University’s commitment to research Significantly greater success achieved in other major excellence across all disciplines, and the strong external funding rounds. Otago researchers won research culture fostered in its departments and some $10.5 million, more than a quarter of the schools. Marsden Fund pool, to support 20 leading-edge Otago was ranked first in more subject areas than research projects (including three Fast Start grants). any other institution, including biomedical, clinical Projects range from the origins of the solar system medicine, earth sciences, economics, education, (Dr Claudine Stirling, Chemistry) to a potential
1 Ministry of Research, Science and Technology, Research and Development in New Zealand (Wellington, 2006)
20 HIV therapy (Dr Elizabeth Poole, Biochemistry); the Throughout 2007 the University continued to build history of inter-racial marriage in New Zealand (Dr on areas of research excellence, especially those Angela Wanhalla, History) to the role the hormone in which it is a national or international leader, MIS may play in boyhood (Associate Professor Ian and particularly in areas that will contribute to McLennan, Anatomy and Structural Biology). the national good. Seven research objectives were identified as areas of focus in 2007: A further $28.6 million (more than 50% of available funding) was gained from the Health Investing in outstanding staff Research Council for research projects to improve the health of New Zealanders. This comprised 20 Instilling a strong research culture contracts, including two new research programmes Developing and sustaining key areas of – one focuses on injury prevention and reducing international research strength disability (Injury Prevention Research Centre, led by Professor John Langley), and the other on viruses Achieving a productive balance between (Departments of Microbiology and Immunology, teaching and research and Biochemistry, led by Professor Andrew Attracting and nurturing high-calibre research Mercer) – and the extension of five existing HRC students programmes: Promoting research and partnership with Therapeutics and diagnostic markers of cancer, Mäori, including Ngäi Tahu led by Professor Antony Braithwaite, Pathology Promoting research as a community benefit. Longitudinal studies of mental health and psychosocial well-being, Professor David A total of 13 major research centres have now been Fergusson, Christchurch established:
Mental health clinical research, Professor Peter Brain Health and Repair Research Centre Joyce, Christchurch Cardioendocrine Research Centre Lifestyle and nutritional approaches to reduce Centre for Neuroendocrinology obesity, type 2 diabetes and its complications, Professor Jim Mann, Human Nutrition Centre for Nutrition, Activity and Health Behavioural and cellular mechanisms of Mental Health and Addiction Research Centre hyperactivity and movement disorders, New Zealand Centre for Sustainable Cities Professor Jeffery Wickens, Anatomy and Structural Biology. Jack Dodd Centre for Quantum Technology Centre for Translational Cancer Research Two new programmes also received funding from the Foundation for Research, Science and National Centre for Lifecourse Research Technology – $6.4 million for the development of Oceans and Climate Change Research Centre new technologies developed within the Jack Dodd Centre for Quantum Technology, and just under $1 Otago Energy Research Centre million for work within the Department of Anatomy Sir John Walsh Institute for Oral Health and Structural Biology on the development of new therapies for age-related brain disorders. Webster Centre for Infectious Diseases.
FoRST’s International Investment Opportunity Three new research themes were established in Fund granted $1.75 million to Professor Richard 2007: Cannon’s team (Dentistry) to develop a new membrane protein expression technology platform Polar Environments – to foster and will underpin the spin-out of a biotechnology interdisciplinary collaboration in polar studies company. Rehabilitation and Disability – to encourage A further $3.5 million in grants from the Lottery research to enhance the effectiveness of Grants Board were received for 41 new or ongoing rehabilitative care and to optimise the quality health research projects. A total of 122 University of of life for those with injury and disabilities Otago Research Grant applications were successful The Kidney in Health and Disease – to for the 2007 year and a further 132 were approved investigate innovative ways to prevent and treat for 2008. kidney disease.
21 university of otago annual report 2007
Other significant research developments included: RESEARCH ACHIEVEMENTS
The establishment of the National Energy Research is the driving force behind academic Research Institute (NERI) with a $1.5 million activity at the University of Otago and 2007 was a grant from the TEC. Its aim is to address year of many highlights for staff and students, only fundamental questions about New Zealand’s a few of which can be mentioned here. future energy supplies and to examine ways of The University’s highest honour, the Distinguished curbing carbon emissions. Research Medal, was awarded to leading marine A co-operative venture with the Allan Wilson chemist Professor Keith Hunter. His research Centre for Molecular Ecology, led by Otago’s interests include the effects of trace metals on the Department of Anatomy and Structural growth of phytoplankton, and the marine chemistry Biology, in the purchase of a $2 million state- of carbon dioxide. of-the-art Mega DNA sequencer. This should Otago’s commitment to fostering research was significantly enhance the country’s research further demonstrated by the awarding of five Early capabilities, particularly in the horticultural, Career Awards for Distinction in Research. The agricultural and biomedical industries, as well recipients were: Dr Phil Ainslie (Physiology), Dr as in ecological and evolutionary research. Warwick Bowen (Physics), Dr Anna Carr (Tourism), The high-speed Kiwi Advanced Research Dr Anne Louise-Heath (Human Nutrition) and and Education Network (KAREN) became Dr Rebecca Roberts (Pathology, Christchurch). operational on the Otago campus, enabling Roberts also gained a Charles Hercus Health Otago researchers now to share information Research Fellowship to investigate the genetics of with scientists and academics around the world. inflammatory bowel disease. As winners of Early Career Awards, these researchers became members Further information about individual research projects of Otago’s O-Zone group, formed in 2007 to advocate can be found in He Kitenga, the University of Otago’s improved practices and policies relating to research research highlights publication 2007. in the University. www.otago.ac.nz/research/he_kitenga/index.html
2007 Distinguished Research Medal winner marine chemist Professor Keith Hunter.
22 Dr Peter Dearden (Biochemistry) received the ADVANCEMENT University’s 2007 Rowheath Trust Award and Carl The major advancement activity in 2007 was again Smith Medal for outstanding research performance the Leading Thinkers initiative. This programme is by an early-career staff member. He also received the distinctive in its focus on long-term investment in QMB Invitrogen Life Science Award for his research the human capital of the University and attracted into how body shapes of insects and animals have funds from the Government to match those of developed and evolved through genetic adaptation. private donors, up to $25 million. Research excellence was again highlighted by the Four more chairs were endowed, bringing the total success of Otago researchers in the 2007 MacDiarmid number of Leading Thinkers projects to 27 and the Young Scientists of the Year Awards. PhD students capital sum to almost $52 million – exceeding the Natalie Harfoot (Physiology) and Gabrielle $50 million target and doing so over six months David (Chemistry) were winner and runner-up ahead of deadline. respectively in the Science and our Society category, while Wellington-based postdoctoral researcher The Child Health Research Foundation donated $1 Shieak Tzeng was placed first equal in the Advancing million to fund the Cure Kids Chair in Paediatric Human Health and Well-being category. Research, which will enhance research in neonatal medicine and general paediatrics through work Other staff to receive significant recognition during led by Professor Brian Darlow at the University of the year included: Otago, Christchurch. Professor Ailsa Goulding (Medical and Surgical The Howard Paterson Chair in Theology and Public Sciences) – the New Zealand Association of Issues will direct New Zealand’s first research centre Scientists’ Marsden Medal tackling social issues such as poverty, social welfare Professor Philippa Howden-Chapman (Public and the environment from a theological perspective. Health, Wellington) – the Energy Efficiency Significant support for this chair has been received and Conservation Authority’s EnergySmart from the Paterson Charitable Trust, the Presbyterian Outstanding Contribution to Sustainable Synod of Otago and Southland, and Mr Ian and Mrs Energy Award Annette Tulloch. Professor Rosalind Gibson (Human Nutrition) Another New Zealand first will be created with the – Fellow of the American Institute of Nutrition Chair in Peace and Conflict Studies, funded by the Aotearoa New Zealand Peace and Conflict Studies Professor Sally Brooker (Chemistry), Professor Centre Trust. The professor will also be the first Allan Herbison (Physiology) and Professor director in a proposed Centre for Peace and Conflict Clive Ronson (Microbiology and Immunology) Studies, intended to enhance the well-being and – Fellows of the Royal Society of New Zealand. reputation of New Zealand and the Pacific region, Emeritus Professor James Flynn (Political and which will have a particular New Zealand Studies): Fellow of the Royal Society of New flavour through the acknowledgement of indigenous Zealand; Distinguished Associate of The peace-keeping traditions. Psychometrics Centre of Cambridge University; The New Zealand Law Foundation Chair in International Society for Intelligence Research Emerging Technologies will provide research (ISIR) Distinguished Scientist of the Year. leadership on legal, regulatory and policy issues Professor Carolyn Burns (Zoology) – arising from emerging technologies, and will foster International Society of Limnology’s balanced public discussion. This builds on work Naumann-Thienemann Medal already carried out in the University, in partnership with the New Zealand Law Foundation, on the Robert Siebers (Wellington, Asthma Research Human Genome Project. Group) – Fellow of the Institute of Biology, London (FIBiol) Six outstanding new appointments to Leading Thinkers chairs during 2007 emphasised the Professor David Fergusson (Christchurch) – momentum generated by, and the positive effect of, Honorary Fellow of the Royal Australasian the initiative on the University as a whole. Building College of Physicians on Leading Thinkers’ success, the University Professor Cliff Abraham (Psychology) – James has now begun looking at future advancement Cook Research Fellowship. opportunities.
23 university of otago annual report 2007
COMMERCIALISATION POSTGRADUATE TEACHING Otago Innovation Ltd, the University’s Postgraduate students contribute significantly to commercialisation company, further developed a Otago’s research strength and, as such, the growth of number of projects during the year and consolidated postgraduate student numbers, particularly research a number of existing investments. postgraduates, has been identified as a priority. It was, therefore, very pleasing that in 2007 – and for A biomarker for bone growth identified by the first time in the University’s 138-year history – researchers at Otago’s Christchurch campus was more than 1,000 PhD students were enrolled in one licensed to San Diego based company Biosite Inc. academic year. A formal ball was held at Larnach Biosite continues to develop the technology and Castle to mark this milestone. plans to sell commercially the biomarker in coming years. The year ended with 1,074 doctoral enrolments – a 14.9% increase on 2006 – including 30 in the Antipodean Pharmaceuticals Inc has completed new Doctor of Clinical Dentistry (DClinDent) a number of phase-two clinical trials and the programme. The University also achieved 1,048 results are expected early in 2008. This is seen as a enrolments at master’s level, and 1,435 enrolments in significant commercial milestone for this company. postgraduate diplomas and postgraduate certificates. Photonic Innovations continues to make progress In all, postgraduate enrolments comprised 17.2% of towards the release of its first product and is lending total enrolments. its expertise to the wider University community Postgraduate completions reached an all-time high through participation in University research for the University, with 425 students (including projects and collaborations. 146 doctoral students) completing postgraduate A number of projects are reaching maturity in the degrees, and a further 787 completing postgraduate portfolio and significant transactions are expected in diplomas and postgraduate certificates. 2008. BLIS Technologies has signed agreements with The University’s commitment to postgraduate Nestle and DSM for the development of products students was demonstrated by the purchase of a based on BLIS bacteria. Pacific Edge Biotechnology former hotel complex on the edge of campus for the recently completed a $5 million capital raising establishment of Abbey College, New Zealand’s first and the money will be used to undertake a human residential college for graduate students. It provides clinical trial of a bladder cancer diagnostic. 75 rooms and will be open for the 2008 academic During 2007, Otago Innovation presented the year. inaugural Proof of Concept Grant, which is awarded Two highly successful postgraduate supervisory to a research team with a promising commercial workshops were held in 2007 and were attended idea. It was awarded to the Free Radical Research by 64 academic supervisors. Dr Jamin Halberstadt Group in Christchurch. (Psychology) was named OUSA Postgraduate
DOCTORAL ENROLMENTS 1,100
1,000
900
800 PhD students 700
600
500
400 2003 2004 2005 2006 2007
24 Supervisor of the Year and Dr Rachel Brown (Human Thirteen Otago PhD students received Top Achiever Nutrition) OUSA New Postgraduate Supervisor of Doctoral Scholarships. Deidre Cleland and Reed the Year. Roberts (Chemistry) were both awarded Woolf Fisher Scholarships to pursue PhDs at Cambridge The University continued its distinguished record University. Wynton Moore (Physics) gained an of Rhodes Scholarships with the selection of International Fulbright Science and Technology Julia Matheson (Medicine) and Jesse Wall (Law), Scholarhship, and Deborah Jordan (Chemistry) and bringing Otago’s tally of recipients of the prestigious Joshua Ramsay (Microbiology and Immunology) scholarship to 54. received Elman Poole Travelling Fellowships.
Cost of Outputs research and postgraduate teaching
Commerce Health Sciences Humanities
This Year Budget Last Year This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 $000 $000 $000
Postgraduate thesis supervision 3,465 3,479 3,432 13,759 13,386 13,862 6,796 6,434 6,135
Teaching-related research 2,996 2,992 2,929 6,408 6,306 6,620 7,149 6,724 6,253
Project-based research - University funded 3,240 2,922 2,660 44,132 45,455 37,985 3,251 3,360 4,255 - Externally funded 1,245 1,202 961 67,024 63,041 57,409 10,622 9,821 8,242
Total cost of output 10,946 10,595 9,982 131,323 128,178 115,876 27,858 26,339 24,885
Sciences Service Divisions Total
This Year Budget Last Year This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 $000 $000 $000
Postgraduate thesis supervision 9,954 9,917 10,266 9,373 9,767 8,010 43,347 42,983 41,705
Teaching-related research 5,398 5,367 5,292 0 0 0 21,951 21,389 21,094
Project-based research - University funded 13,295 12,458 10,821 20 0 31 63,938 64,185 55,752 - Externally funded 12,346 12,779 12,167 0 0 0 91,277 86,843 78,779
Total cost of output 40,993 40,521 38,546 9,393 9,767 8,041 220,513 215,400 197,330
25 university of otago annual report 2007
TEACHING, LEARNING AND ASSESSMENT
The University of Otago is committed to providing Education to form the University of Otago College programmes that meet changing student, national of Education, including a Southland campus and and international needs, to maintaining and Central Otago resource centre. enhancing the quality of teaching and programme With the merger, the University inherited delivery, and to the achievement of excellent responsibility for the Dunedin College’s suite of learning outcomes. teaching programmes, in addition to its own. Even before the merger took effect, work had begun on reorganising teacher education and education ACADEMIC DEVELOPMENTS studies programmes to be offered by the merged In 2007, the University offered 184 different college. These changes comprise the phasing-out degree, diploma and certificate programmes. These of some 17 qualifications (including several at the included a number of new qualifications – a Doctor subdegree level), the retention of nine (some with of Clinical Dentistry, Bachelor of Oral Health (which changes) and the introduction of a small number superseded diploma programmes in Dental Therapy of additional qualifications. The first of these – a and Dental Hygiene), a Postgraduate Diploma in Bachelor of Teaching and Doctor of Education – were Medical Technology and Postgraduate Certificate in approved in late 2007 for introduction in 2008. Rehabilitation. A number of new endorsements and A revised Health Sciences first-year programme majors were also introduced. was introduced in 2007. This programme of seven The University’s merger with the Dunedin College of papers, providing a foundation for studies in the Education became effective on 1 January 2007. The Health Sciences’ professional courses, has a much College combined with the University’s Faculty of stronger emphasis on biological-science approaches
26 relevant to human health. Planning was begun for keeping with the University’s aim of using distance new second- and third-year medicine programmes, teaching primarily at the postgraduate level, in areas with a particular emphasis on strong clinical skills, where it has nationally unique expertise, more than to be introduced in 2008. A new Master of Science 90% of the distance portfolio was postgraduate and Communication was approved in 2007 and this, more than 70% in the health sciences. Almost 50% too, will be introduced in 2008. of the overall portfolio came from the Wellington and Christchurch campuses. Acting on the Changes to the structure of the Bachelor of recommendations of a distance learning review, a Commerce were also introduced. From 2007, all decision was taken in 2007 to create a new position students enrolling in a BCom are required to pass of Director of Distance Learning to provide a greater a core of seven papers (six at the 100-level and one academic leadership and oversight for developments at the 200-level). Together with this change, the in this area. The position will be effective from Bachelor of Tourism degree was discontinued, with 2008. tourism instead becoming a major subject for the BCom degree. The Postgraduate Certificate and Run in January and February 2007, the eighth Postgraduate Diploma in Primary Rural Health Otago Summer School offered 68 papers, of which Care, and Postgraduate Diploma in Clinical 20 were new. One was taught in Auckland, seven Pathology were also discontinued. were distance-taught and eight papers were taught by visiting international academics especially A new academic points system was introduced at the contracted for Summer School. A pleasing increase start of the year, bringing Otago into line with other occurred in the percentage of students transferring New Zealand universities. Papers previously worth from other institutions to Otago for Summer six points are now worth 18; thus a typical full-time School: 6.3% (2006: 5.9%) and 12.7% of the student one-year course previously worth 40 points is now body was international students. In late November, worth 120, a general three-year degree comprises the Summer School was reviewed as part of the 360 points and a four-year degree 480 points. This University’s ongoing review cycle; the report will be change affects all University papers at all levels. received in early 2008. The Academic Progress Policy became fully effective, monitoring the progress of, and helping, students who are not performing well. Students ENROLMENT who have passed less than half of their course for The University achieved its highest enrolment ever two consecutive years are now placed on conditional in 2007, with 18,158 EFTS, a 4.1% increase from the enrolment and allocated a designated adviser. 17,449 EFTS enrolled in 2006. This total of 18,158 Increased government funding for medical EFTS was generated by 20,665 individual students and dental programmes, announced in 2006, (2006: 19,853). became available in 2007 and the results have The 2007 increase was largely due to the merger been significant. They included the development with the Dunedin College of Education, although of the Hunter Centre (a new teaching facility for the University also experienced strong growth in undergraduate health sciences students), staff the health sciences. recruitment, improvements to clinical-skills teaching and the further development of rural An apparent 14.7 % increase in first-year enrolments general practice teaching programmes. During was also largely the result of the College merger, which 2007, the Government also announced it would impacted on the composition of the University roll fund a further 40 places nationally for commencing in other areas. Through the merger, the University medical students, of which 20 places were allocated gained a group of students who are more likely to to Otago. be undergraduate, female and to originate from the local Otago and Southland region. The Department of Finance and Quantitative Analysis (School of Business) was successful With the impact of the merger excluded, the in securing Chartered Financial Analyst (CFA) underlying trend for domestic first-year students Partnership status, making it the only New was static (in which a small growth in the core sub- Zealand-based CFA partner and only the second group of school-leavers going directly to university in Australasia. It joins a select group of around study was offset by a decline in the number of 30 university departments worldwide currently commencing mature students) with a further fall in holding CFA partner status. commencing international enrolments. In 2007 Otago offered more than 120 qualifications, Nearly two thirds of all first-year students and more majors and endorsements by distance learning. In than 60% of domestic first-year students came to
27 university of otago annual report 2007
the University from outside its home catchment. For the second year in succession, the University Students from the North Island comprised more experienced a decline in enrolments from its two than 40% of the domestic first-year intake. largest overseas markets, China and the United States, which together accounted for 38.7% of Total domestic undergraduate enrolments rose Otago’s total international enrolments. With by 6.1% and domestic postgraduate enrolments Chinese enrolments dropping at the greater rate, the increased by 4.7% for the second year in succession. United States became the largest single nationality Postgraduate enrolments continued to comprise within the University’s international student mix 16.1% of domestic enrolments and grew to 12.3% of with 549 enrolments. international enrolments. A key feature of the 2007 student profile was a 14.9% increase in doctoral Solid overall growth in enrolments from other enrolments, which, at 1,074, surpassed the 1,000 countries was insufficient to offset the overall impact mark for the first time. International PhD students of decline from China and the United States, and paid domestic tuition fees from the beginning of total international numbers, therefore, dropped by 2007. 4.3% in head-count terms. The University attracted international enrolments from 86 countries (up The number of Mäori and Pacific Peoples students from 80 in 2006), including 21 from which the continued to grow in absolute terms. Their University drew 20 or more enrolments. Behind the representation in percentage terms also increased USA and China, the largest of these was Malaysia, slightly to 7.4% of total enrolments (and 8.5% of from which enrolments grew by 16.7% to 279. domestic enrolments) for Mäori, and remained Germany, Japan, South Korea and Canada were the static for Pacific Peoples students at 2.8% of total other most significant markets. enrolments.
HOME AREA OF STUDENTS
Dunedin Otago/Southland Remainder of South Island North Island Overseas
UNIVERSITY ENROLMENTS 18,500
18,000
17,500
Equivalent 17,000 full-time students (EFTS) 16,500
16,000
15,500
15,000 2003 2004 2005 2006 2007
28 2007 Teaching Excellence Awards winners (from left): Associate Professor Katharine Dickinson, Associate Professor Pat Langhorne and Donna Buckingham.
While they are counted as domestic students for Bahrain students graduated in December and the statistical and funding purposes, the University first students from Saudi Arabia, under the King attracts a steady stream of students from Australia. Abdullah Scholarship Programme, commenced In 2007 the University enrolled 48 first-year students study at the University of Otago Language Centre. from Australia (2006: 55), some 58% of whom were To ensure the partnerships Otago enters into at an Australian citizens, and 40% New Zealand citizens institutional level are mutually beneficial and active, returning from Australia. The total number of the University has focussed on refining the number enrolments of students from Australian home areas of partnerships and student exchange agreements, was 249 (2006: 231). and subjecting them to more rigorous checks before renewal. While several new exchange agreements were initiated, mainly to complement growth in INTERNATIONALISATION areas such as Otago’s Spanish language programme, Otago’s commitment to internationalisation, the number of exchange agreements has remained evident in its Strategic Direction, was reinforced in steady at 89 in 31 countries. 2007 with the commencement of the University’s first Pro-Vice-Chancellor (International), Professor Sarah Todd. DEVELOPING TEACHING AND LEARNING The Vice-Chancellor led a senior delegation to China early in the year with the aim of raising Otago’s Quality teaching is vital to the successful delivery of profile in that country as a top research university. academic programmes and the University recognises The Mayor of Dunedin accompanied the delegation this with its annual Teaching Excellence Awards. to Shanghai to build on the strong sister-city These are the counterpart to the Distinguished relationship and memorandum of understanding Research Medal and celebrate outstanding with the Shanghai Education Commission. contributions in fostering learning. In 2007 awards were presented to Donna Buckingham (Law), As canvassed above, international student numbers Associate Professor Katharine Dickinson (Botany) declined further in 2007, but there was growth in and Associate Professor Pat Langhorne (Physics). the number of international PhD students and Ms Buckingham and Associate Professor Dickinson single-semester Study Abroad students from the also gained National Tertiary Teaching Excellence United States. The University’s first cohort of
29 university of otago annual report 2007
Awards. Biochemistry lecturer Tony Zaharic was The University has made a considerable commitment the overall winner of the Otago University Students’ to advancing the ways in which things “e” can Association’s Teaching Awards. advance and support teaching and learning. A strategy and action plan was developed for the Otago’s high standard of teaching was further integration of information and communications recognised in the annual graduates’ and students’ technology (ICT) into academic activity. A Tertiary surveys with more than 90% of respondents Education Commission e-Learning Collaborative recording overall satisfaction with the quality of Development Fund project on information literacy teaching. was completed and Ministry of Education funding The Higher Education Development Centre supported research into staff development for continued to play an important role in maintaining e-learning. Funding was also received for research and improving teaching standards. Sixty into enquiry-based teaching and learning in professional development workshops were held and undergraduate education. attended by some 900 staff. Leadership development A pilot project was established to research the programmes were expanded to include workshops impact of recorded lectures on teaching and for new and future academic leaders, and the learning – a cautious approach was recommended. women’s professional development programme was Work continued on the implementation of “clicker redeveloped. technologies” (or audience response systems) and Six academic staff women attended the inaugural an evaluation of their benefits. The roll-out of the New Zealand Women in Leadership programmes. wireless network gathered momentum and strategies This new initiative is supported by the New Zealand were developed to use the University network to link Vice-Chancellors’ Committee. lecture theatres so that classes and other events can be “simulcast” to larger audiences. Support for students wishing to improve their study and learning skills was ongoing. The Student The use of e-books and other electronic materials Learning Centre ran 197 workshops attended by increased within the University Library. In 2007 the more than 5,000 participants and provided one- Library’s on-site collections comprised 2,905,195 to-one consultations to a further 500 students. items (2006: 2,871,114), as well as 6,964 print Several workshops were held on the University’s subscriptions and 72,224 electronic serials. The Wellington and Christchurch campuses, as well as Library supported teaching and learning across the in the residential colleges. Other important learning divisions with workshops and interactive online support services were provided for specific groups tutorials, enabling students to make more effective through Te Hu˚a Mätaura˚a (the University’s use of the collections, and instructional programmes Mãori Centre), the Pacific Islands Centre and the to develop information skills. Disabilities Information and Support Office.
ELECTRONIC SERIALS IN UNIVERSITY LIBRARY 90,000
80,000
70,000
Electronic 60,000 serials received 50,000
40,000
30,000
20,000 2003 2004 2005 2006 2007
30 Cost of Outputs teaching, learning and assessment
Commerce Health Sciences Humanities
This Year Budget Last Year This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 $000 $000 $000
Campus-based teaching and learning 18,683 19,043 18,915 55,835 57,839 63,096 37,183 35,611 23,740
Distance teaching and learning 0 0 0 0 0 0 0 0 385
Total cost of output 18,683 19,043 18,915 55,835 57,839 63,096 37,183 35,611 24,125
Sciences Service Divisions Total
This Year Budget Last Year This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 $000 $000 $000
Campus-based teaching and learning 32,565 34,047 34,951 2,532 2,431 2,620 146,798 148,971 143,322
Distance teaching and learning 0 0 775 0 0 0 0 0 1,160
Total cost of output 32,565 34,047 35,726 2,532 2,431 2,620 146,798 148,971 144,482
31 university of otago annual report 2007
COMMUNITY SERVICE
The University seeks to make significant While it is difficult to quantify fully this aspect of contributions to national goals and objectives, and University activity, an annual survey of randomly- to the national good and international progress. selected academic staff does give a picture of the It is committed to community engagement, extent to which staff are involved. Of those surveyed particularly in areas of community education and in 2007, 89.2% reported involvement in community where community service is a natural complement service activities. It is estimated that service typically to general academic developments. absorbs 6 – 10% of an academic staff member’s professional time. This role includes: As a result, many of Otago’s staff are held in high Sharing the academic and professional expertise esteem within the wider community. Professor of staff through activities ranging from Philip Bagshaw, a member of the academic staff service on government advisory boards and at the University of Otago, Christchurch and a committees, to presentations to school and general surgeon at Christchurch Hospital, was community groups, professional development, announced New Zealander of the Year by North and and through the media in areas of academic South magazine in recognition of his work in the expertise establishment of the Canterbury Charity Hospital. Providing adult and continuing education It provides free elective surgery for those who are courses, hosting conferences and open lectures unable to get treatment through the public health system and who cannot afford private surgery. Making available to the public other resources such as the University Libraries, Hocken Others recognised for their work included Professor Collections, the National Poisons Centre and Brett Delahunt (University of Otago, Wellington) the New Zealand Marine Studies Centre who became the first New Zealander to be elected President of the Australasian Division of the Contributing to the arts through fellowships International Academy of Pathology; Professor and performances Colin Townsend (Zoology) won a British Ecological Maintaining ongoing contact with Otago Society’s Exceptional Lifetime Achievement Award; alumni. Professor John Smillie (Law) was made an Inaugural
32 Fellow of the New Zealand Academy of the The School of Business joined with the Bank of New Humanities and Dr Mike Boyes (Physical Education) Zealand in a five-year initiative to offer a series of won the Sport and Recreation New Zealand Supreme seminars to the business community. The second Award for his contribution to outdoor recreation and Otago Workshop in International Trade was held education. Associate Professor John Broughton (Ngäi in March, again attracting a strong field of trade Tahu Mäori Health Research Unit) and Suzanne economists from around the world. Pitama (Mäori/Indigenous Health Institute, The 42nd Otago Foreign Policy School was held in Christchurch) received Leaders in Indigenous June with the theme Environmental Governance and Medical Education (LIME) awards. State Autonomy in a Changing Climate, and again The value of community service by University attracted a top line-up of international speakers. academics in 2007 was estimated at $23.4 million Almost 200 open lectures were held in 2007. Sixteen (2006: $23.8 million). of these comprised the Winter Lecture Series that The University again hosted a large number of ran from May to September in Auckland and conferences and other events. One of the first was Wellington and canvassed a wide range of subjects. the annual Hands on Science School attended In Dunedin, the Patricia Coleman lecture on by 230 secondary school students from around Climate Change – given by Australian of the Year, New Zealand. Arts@Otago, a similar on-campus Professor Tim Flannery – was the largest public programme for year-13 students interested in the lecture in 2007, attracting an audience of more than humanities, was held for the first time in July. 1,000. Professor Flannery also addressed a meeting of business leaders and gave a special lecture to The Division of Sciences also piloted a Science in secondary school students. Schools Day for Ngäti Porou students on the North Island’s east coast. This was very successful and will A total of 152 short courses, workshops and public be expanded in 2008. seminars were offered, including 12 courses in the 11th Public Health Summer School held on the Highlights of the extensive conference calendar Wellington campus. Under a formal agreement included: Supramolecular Chemistry and with the University of the Third Age, the University Nanoscience, attended by more than 75 national jointly offered a further 14 courses. and international delegates; a one-day symposium examining the Treaty of Waitangi’s impact on New The University’s quality assurance processes for Adult Zealand law; and the Australian and New Zealand and Community Education (ACE) were audited by Marketing Academy conference attended by some 450 the New Zealand Universities Academic Audit Unit international marketing experts from 25 countries. and received positive assessment. The University continues to be active in the Tertiary Education A Novartis Foundation Symposium on Gene and Commission’s ACE Network in Dunedin. Environment Interactions was held on the Dunedin campus in November. This was the first such A memorandum of agreement was signed with the symposium to be held in the Southern Hemisphere, Tipu Ora Charitable Trust securing the future of in recognition of the significance of the University’s an initiative by which Otago dental students have Dunedin Multidisciplinary Study. provided free care to members of the Te Arawa Mäori Community for one week every year since 2000.
Australian of the Year, Professor Tim Flannery, gave a special lecture to secondary school students during his visit to the University of Otago.
33 university of otago annual report 2007
LIBRARY SERVICES THE ARTS One of the more visible means by which the The University’s contribution to the cultural life of University serves the community is through its New Zealand is underpinned by its four major arts special collections. fellowships. In 2007, they were held by Laurence Fearnley (Robert Burns Fellow, literature), Ben Hocken Collections, Uare Taoka o Häkena Cauchi (Frances Hodgkins Fellow, fine arts), During the year the Hocken Collections were again Katrina Rank (Caroline Plummer Fellow, dance) used by many different community groups, including and Neville Copland (Mozart Fellow, music). As part schools, students of other tertiary institutions, of the Dunedin Heritage Festival, a Mozart Fellows visiting academics, local historians, Mäori, Reunion Concert was held in March to honour the genealogists, government departments, contract significant contribution fellows have made to New researchers, publishers, film production companies Zealand music. A further fellowship for writers and broadcasters. The reading rooms received 9,712 of children’s literature was inherited through the reader visits (2006: 9,964), of which 55% were from merger with the Dunedin College of Education. In members of the public, and staff responded to 1,259 2007, the University of Otago College of Education written requests (2006: 1,429) and 1,034 telephone Writer in Residence was held by Vincent Ford. enquiries (2006: 965). One exhibition was held at The University became a cornerstone sponsor with the Auckland Centre and nine were mounted in the the Caselberg Trust, assisting with the refurbishment Hocken’s own gallery. Loans of works of art to other of Charles Brasch’s holiday house at Broad Bay as galleries (Te Papa, National Library, Auckland Art a short-term residence for arts fellows and other Gallery) totalled 110 (2006: 71). University visitors. 2007 marked the centenary of the signing of the In October, the inaugural Irish Film Festival was deed by which the Hocken Collections are held in held in cinemas in Dunedin and Auckland. Entitled trust for the people of New Zealand. As part of the “Enjoying Varieties of Irishness”, the festival 100th anniversary programme, three public Hocken comprised eight full-length, recently-produced Lectures were given – by Emeritus Professors Erik films about contemporary Ireland and was directed Olssen and Judith Binney, and by Professor Helen by Professor Peter Kuch, who holds the Eamon Leach. At the end of October a celebratory book was Cleary Chair in Irish Studies. launched nationally. Kä Taoka Häkena: Treasures from the Hocken Collections, by Hocken Librarian The University became the major sponsor for the Stuart Strachan and former pictorial collections Festivals of Shakespeare in Schools programme. curator Linda Tyler, has been well received. More than 5,000 secondary school students took part in the nationwide programme and the University Four new honorary Fellows of the Hocken Library has committed its sponsorship for another year. were named as part of these centenary celebrations. They were University historians Dr Dorothy Page, Continuing a long-established practice, the Emeritus Professor Erik Olssen, Dr Roger Collins University’s Departments of Theatre Studies and and Dunedin businessman Ian Farquhar. Music staged a total of 121 public performances throughout the year (2006: 146). The regular series In August, the University Library’s digital of lunchtime concerts and dramatic performances collections went online, providing remote access to makes a strong contribution to the cultural life of some of Hocken’s most significant pictorial images. the city of Dunedin, as well as providing valuable At the year’s end Lottery Environment and Heritage experience for students. granted $200,000 to improve access to Janet Frame’s papers, the records of the Royal New Zealand Plunket Society and the Photographs Collection. NEW ZEALAND MARINE STUDIES Central Library, Special Collections CENTRE Nearly 2,800 people visited the Special Collections, The New Zealand Marine Studies Centre, including 145 readers (scholars, students and general incorporating the Westpac Aquarium, runs marine public) using 255 items. Five exhibitions were education programmes throughout the year for mounted. schools, tertiary institutions and interest groups. It is open daily to the public and interprets the The Printer in Residence programme for 2007 was local marine environment, conservation issues and completed in September. The project was Twelve current research through live displays, interactive Poems by Hone Tuwhare, with seven of the poems exhibits and knowledgeable staff. Its mission is to interpreted by seven Dunedin printmakers. foster understanding, appreciation and responsible
34 management of New Zealand’s unique marine ALUMNI environment. Alumni are important members of the University In 2007 there were 25,577 visitors to the facility community. News about graduate successes, as well (2006: 25,886) including: as University developments and events of interest, was communicated via the University of Otago 16,551 casual visitors to the aquarium Magazine, which was published three times during 5,186 school students (365 classes) attending the year. curriculum-linked educational programmes Sixteen alumni social functions were held 3,840 people participating in group marine throughout New Zealand and the rest of the world – experiences, tours and workshops (399 classes/ in Queenstown, Invercargill, Oamaru, Timaru, tours). Christchurch, Wellington, Palmerston North, Auckland, Melbourne, Sydney, Brisbane, Apia, A further 5,434 people participated in marine science Kuala Lumpur, Singapore and London (2006: programmes held in other locations in Dunedin and 18). A number of residential colleges and medical Nelson/Marlborough. year groups also held alumni events and reunions throughout the year, with the assistance of the 2007 was the second year of a Gifted and Talented Alumni and Development Office. programme (funded through the Ministry of Education Talent Development Initiative) for year-10 The most significant reunion was held at Queen’s students from Dunedin schools, rural schools across Birthday Weekend to mark the centenary of the the South Island and a primary cluster group (years Dental School. More than 500 people attended the 7 and 8). Preliminary results were presented at the event, which included a clinical excellence day, International Conference of Science and Technology memorabilia displays, a centenary lecture, research Education in Perth in July and the programme has symposia and a number of social events. been extended to include a four-day programme on With continued support to its Annual Appeal, the board the research vessel Polaris II. Alumni and Development Office was able to award Community activities were hosted during Annual Appeal Scholarships to 11 first-year students school holiday periods as well as in association beginning their studies in 2007. Contributions were with Seaweek, and Dunedin’s Chocolate and also made to the University Library and research. Rhododendron festivals. The Big Squid Exhibit was a major attraction and construction began on a new deep-sea exhibit to be opened in 2008.
Cost of Outputs community service
Commerce Health Sciences Humanities
This Year Budget Last Year This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 $000 $000 $000
Total cost of output 2,396 2,358 2,693 8,685 8,418 9,618 6,546 6,033 5,053
Sciences Service Divisions Total
This Year Budget Last Year This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 $000 $000 $000
Total cost of output 5,729 5,783 6,415 0 0 0 23,356 22,592 23,779
35 university of otago annual report 2007
Statement of Service Performance for the year ended 31 December 2007
Contribution to New Zealand and the Tertiary Sector Objective 1: To enhance the University’s standing as a premier research institution. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual
i. Increasing research funding from outside $66.8 million 0.6% increase ≥ 105.0% 8.7% increase sources by at least 5% per annum. ($67.2m) of 2005 ($72.6m)
ii. Increasing the number of University- 127 171 ≥ 181 194 (122 PhDs funded postgraduate scholarships and (114 PhD and and 72 masters’) awards offered and taken up by at 57 masters’) least 20 per annum.
iii. Increasing the quantity of publications 3,749 4,279 ≥ 105.0% 4,078 of scholarly books, monographs and of 2006 articles in refereed journals by at least 5% per annum.
iv. Becoming the host institution for one or 0 0 ≥ 1 the University more national Centres of Research was unsuccessful Excellence (CoREs). in its bid to become a host institution in the last CoRE round
v. Increasing the number of research-degree 329 363 ≥ previous 381 completions. year
Objective 2: To recognise, support and achieve excellence in teaching. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual
i. At least 90% of departments and 97% 100% ≥ 90.0% 100% programmes sampled in the annual Student Opinion and Graduate Opinion Surveys receive a positive mean rating on the Good Teaching, Appropriate Assessment and Overall Satisfaction scales.
ii. At least maintaining the total funding $250,000 $250,000 ≥ previous $250,000 provided through Innovation in Teaching year Grants, Research into University Teaching Grants and Internationalisation of the Curriculum Grants.
iii. At least 90% of respondents to the Graduate 81.6% 89.6% ≥ 90.0% 85.8% Opinion Survey reporting overall satisfaction with the quality of doctoral and master’s thesis supervision.
36 Objective 3: To develop in students the skills, attributes and knowledge to enhance their capacity to make a positive contribution to society and their employment prospects. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. At least 90% of respondents in the Graduate Opinion Survey reporting some, moderate or extensive development of the following skills and attributes through their studies:
oral communication skills; 88.6% 90.3% ≥ 90.0% 87.5% written communication skills; 94.3% 89.1% ≥ 90.0% 96.5% the skills to plan their own work; 93.4% 90.4% ≥ 90.0% 95.1% the ability to solve problems; 94.6% 92.9% ≥ 90.0% 96.8% self-confidence; 90.7% 87.8% ≥ 90.0% 88.9% flexibility and adaptability. 91.0% 89.7% ≥ 90.0% 95.1%
Objective 4: To support internationalisation and student interaction in an international environment. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. A diversified international student 11.9% of total 10.7% of total ≤12.0% of total 9.2% of total population constituting no more EFTS and EFTS and EFTS and EFTS and than 12% of total University EFTS, 32.2% from 31.1% from ≤ 25.0% from 18.7% from with no more than 25% of the one country one country one country one country international cohort from one country. ii. Increasing the number of domestic 173 170 220 179 students participating in international exchanges. iii. Achieving or exceeding the following 2,104 1,875 1,805 1,674 international EFTS enrolment target.
Objective 5: To share the University’s expertise and resources with the community and foster the creation and presentation of works of art, literature and music. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. At least 80% of University academic staff 90.2% 93.2% ≥ 80.0% 89.2% involved in community service activities. ii. Holding at least 150 open lectures, public 172 210 ≥ 150 363 seminars, and adult and community education courses per annum. iii. Providing at least 100 performing arts 123 146 ≥ 100 121 activities open to the public per annum. iv. Awarding the following annual fellowships: all awarded all awarded all awarded all awarded the Robert Burns Fellowship (for literature); the Frances Hodgkins Fellowship (for visual arts); the Mozart Fellowship (for musical composition); the Caroline Plummer Fellowship in Dance (from 2005).
37 university of otago annual report 2007
Objective 6: To preserve and enhance the unique qualities of the Otago campus lifestyle and Otago learning experience. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. At least 90% of respondents to the annual Student Opinion Survey providing a positive assessment of the following:
the general campus environment; 96.8% 97.9% ≥ 90.0% 98.5% living accommodation provided by the University; 88.3% 90.5% ≥ 90.0% 94.2% the quality of sporting and recreational facilities; 90.0% 90.0% ≥ 90.0% 91.9% University lecture rooms, tutorial rooms, and laboratories; 94.0% 93.8% ≥ 90.0% 96.8% Accommodation Services; 89.9% 93.7% ≥ 90.0% 94.5% Student Health and Counselling; 91.8% 82.3% ≥ 90.0% 87.9% the Careers Advisory Service; 89.5% 91.8% ≥ 90.0% 89.7% the Student Learning Centre; 95.2% 97.2% ≥ 90.0% 95.6% the International Office; 83.0% 84.8% ≥ 90.0% 90.3% the Disabilities Office; 97.0% 95.6% ≥ 90.0% 93.2% personal safety on campus; 95.2% 95.9% ≥ 90.0% 96.2% Recreation Services; 92.4% 94.9% ≥ 90.0% 95.1% the Unipol Gym. 88.9% 88.9% ≥ 90.0% 90.8% ii. At least 90% of respondents to the annual Student Opinion Survey providing a positive assessment of the helpfulness of:
Student Information Centre staff; 95.4% 96.9% ≥ 90.0% 97.1% Library staff; 95.9% 97.5% ≥ 90.0% 97.3% computing resource room supervisors; 94.8% 95.4% ≥ 90.0% 96.7% administrative staff in academic departments; 93.6% 95.6% ≥ 90.0% 96.1% administrative staff in academic divisions. 94.4% 96.4% ≥ 90.0% 96.5%
38 approach to Fulfilling Treaty of Waitangi Obligations Objective 7: To develop and maintain policies and practices which acknowledge partnership with iwi. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Developing a new Memorandum of under review new MoU with MoU new MoU with Understanding with Ngäi Tahu in 2005 Ngäi Tahu completed Ngäi Tahu signed. and working towards appropriate developed Memorandum of agreements with other iwi. Agreement signed with Tipu Ora Trust (Te Arawa)* ii. Taking account of Treaty and partnership achieved achieved achieved achieved issues in the development of new academic programmes and in reviews of existing academic programmes. iii. Seeking advice from Ngäi Tahu and other advice sought advice sought advice sought advice sought iwi, as appropriate, on the exercising of kawa and tikanga within their takiwä. iv. Developing a Mäori Strategic Framework under under approved approved for the University. development development * Memoranda of Understanding with Ngäti Porou Hauora and Ngäti Whätua have also been continued and further agreements are under development.
Objective 8: To strengthen links with ngä iwi Mäori in research and to promote and support research in Mäori language, culture, education, science, health and history. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. At least maintaining the number of research 389 375 ≥ previous 444 projects being undertaken in association year with Mäori. ii. To offer at least 12 scholarships per annum 8 8 ≥ 12 12 for Mäori students completing undergraduate study and progressing to postgraduate study. iii. To increase targeted funding support to assist $11,440 $15,295 $12,530 $13,140 Mäori doctoral students to attend conferences.
39 university of otago annual report 2007
Objective 9: To increase Mäori student recruitment, retention and achievement at all levels and to provide appropriate academic, cultural and social support. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Increasing enrolment of Mäori students. 1,329 1,368 1,400 1,535 ii. Increasing the percentage of Mäori students 69.3% 65.6% > previous 73.8% passing at least two thirds of their academic year credits in their first year of study. iii. Increasing the number of Mäori students 244 254 > previous 323 completing qualifications. year
iv. At least 90% of Mäori respondents to the 96.4% 92.7% ≥ 90.0% 95.7% annual Student Opinion Survey providing a positive assessment of the support provided by the Mäori Centre.
v. To offer from 2006, at least 20 scholarships 0 23 ≥ 20 30 per annum for Mäori students commencing undergraduate study.
Objective 10: To support the recruitment and development of Mäori staff. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. The use of te reo Mäori to advertise positions 3 positions 2 positions use as 4 positions where appropriate. appropriate ii. Providing support as appropriate for Mäori support support support support staff undertaking tertiary study. provided provided provided provided
40 approach to Meeting the Needs of Pacific Peoples Objective 11: To increase Pacific student recruitment, retention and achievement at all levels and to provide appropriate academic, cultural and social support. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Increasing the number of Pacific Peoples 537 545 560 584 students enrolled. ii. Increasing the percentage of first-year 53.3% 54.9% > previous 54.6% Pacific Peoples students passing at least year two thirds of their academic credits in their first year of study. iii. Increasing the number of Pacific Peoples 93 93 > previous 109 students completing qualifications. year iv. At least 90% of Pacific Islands respondents 80.5% 80.9% ≥ 90.0% 100% to the annual Student Opinion Survey providing a positive assessment of the support provided by the Pacific Islands Centre. v. To offer, from 2006, at least five scholarships 0 undergraduate 7 undergraduate ≥ 5 undergraduate 20 undergraduate per annum for Pacific Peoples students 3 postgraduate 4 postgraduate 8 postgraduate 2 postgraduate commencing undergraduate study, and four per annum for those progressing to postgraduate study.
Objective 12: To promote and support research, teaching and learning in areas relevant to the needs and interests of pacific Peoples. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Introducing a series of adult and community programme programme programme programme education courses on Pacific cultures. implemented ongoing ongoing ongoing* ii. Increasing targeted funding support to $6,351 $4,798 $12,530 $6,213 assist Pacific Peoples doctoral students to attend conferences. * The fourth annual Pacific Voices symposium was held and a community education course, The Samoan Identity, was formally approved for offering in the 2008 Summer School.
Objective 13: To support the recruitment and development of Pacific Peoples staff. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. The use of relevant Pacific languages in none none use as none advertisements. appropriate ii. Providing support as appropriate for Pacific support support support support staff undertaking tertiary study. provided provided provided provided
41 university of otago annual report 2007
approach to Meeting the Needs of Learners Objective 14: To achieve target outputs for student enrolments and performance. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Achieving or exceeding the following total 17,739 17,449 18,279 18,287 EFTS enrolment target. ii. Maintaining an average pass rate and progression rate for papers within 2% of the average for the previous three years: Pass rate and average pass rate for the 87.5% 88.0% (87.6%) plus/minus 88.1% (87.9%) previous three years; (3-year average 2.0% of rolling 89.2%) average Progression rate and average progression 86.4% 86.4% (86.1%) plus/minus 87.3% (86.7%) rate for the previous three years. (3-year average 2.0% of rolling 86.0%) average iii. Increasing the number of students 4,585 4,493 > previous 4,743 successfully completing qualifications. year iv. At least maintaining the percentage of 80.3% (3-year 81.3% (81.3%) plus/minus 83.1% (80.9%) first-year students passing at least two average: 82.3%) 2.0% of rolling thirds of their academic credits in their average first year of study within 2% of the average for the previous three years.
Objective 15: To develop lifelong learning skills and foster intellectual independence in students. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. At least 90% of respondents to the Graduate Opinion Survey reporting some, moderate or extensive development of:
a willingness to learn; 93.5% 92.4% ≥ 90.0% 97.8% independent judgement through their studies. 93.9% 93.3% ≥ 90.0% 93.6% ii. The development of intellectual independence addressed in all addressed in all addressed in all addressed in all in students addressed in the development of developments developments developments developments all new programmes, and in the review of and reviews and reviews and reviews and reviews existing departments and programmes. iii. Achieving or exceeding, subject to the 38 32 39 64 (25 of which provision of adequate Government resulted from the funding, the following target for EFTS merger with enrolments in adult and community Dunedin College education courses. of Education)
42 Objective 16: To maintain and strengthen commitment to Equal Educational Opportunities. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. At least maintaining student attendance in 1,977 2,489 ≥ previous 5,482 the Learning Assistance Support Programme. year ii. Offering at least five undergraduate 3 0 (Under ≥ 5 scholarship scholarships per annum for students who review) suspended are first in their family to attend university. iii. Maintaining subsidised support for the $84,056 of $108,500 of ≥ previous $125,100 University childcare facilities. support support year of support provided provided provided
Objective 17: To increase the participation and achievement of disabled students at all levels, and to provide appropriate academic and social support. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Enrolling at least 650 students with a 814 840 ≥ 650 834 disability affecting study in each of the next three years. ii. Providing learning assistance and/or access 451 526 ≥ 450 484 to special equipment for at least 450 students with a disability affecting study in each of the next three years. iii. At least 90% of students with a disability 88.6% 93.9% ≥ 90.0% 93.2% affecting study responding to the annual Student Opinion Survey providing a positive assessment of support from the Disabilities Office.
43 university of otago annual report 2007
approach to Ensuring a Staff Profile Consistent with Mission and Purpose Objective 18: To recognise, reinforce and promote interdependence between research, teaching and professional practice. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. The interdependence between research addressed in all addressed in all addressed in all addressed in all and teaching addressed in the development developments developments developments developments of all new programmes, and in the review and reviews and reviews and reviews and reviews of existing departments and programmes. ii. The appointment and promotion of achieved achieved achieved achieved academic staff according to criteria that emphasise research output and teaching, where appropriate, and professional practice. iii. Professional accreditation of all relevant maintained maintained maintained maintained programmes maintained.
Objective 19: To provide an environment that supports the academic, professional, creative and career development of staff. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual
i. At least 1.5% of the University salary budget 2.6% 2.5% ≥ 1.5% 2.6% provided for staff training and development.
ii. Fee subsidies ranging from 25% to 100% 240 247 ≥ 250 246 provided for at least 250 eligible staff undertaking approved tertiary study.
Objective 20: To provide staff with opportunities to interact in an international environment. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual
i. At least maintaining the number of staff 71 research 90 and 821 ≥ previous 109 and 912 undertaking research and study leave, staff and study leave, year exchanges and attending conferences of and staff national and international standing. exchanges; 782 conference attendees ii. Providing unrestricted staff access to the access access access access World Wide Web for work-related purposes. provided provided provided provided
44 Objective 21: To maintain and strengthen commitment to Equal Employment Opportunities. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Increasing the number of female academics 147 166 180 196 holding professorial, associate professorial and senior lecturer appointments. ii. Continuing the University mentoring continued continued continued continued programmes for general and academic staff women. iii. Continuing the University Women’s reactivated continued continued continued Professional Development Programme and the Women in Leadership Programme.
co-operation and Collaboration Objective 22: To foster links and encourage collaboration with appropriate institutions and organisations nationally and internationally. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. At least maintaining the number of formal 119 132 ≥ 119 169 agreements and contracts for collaboration with other organisations, including Crown Research Institutes and arrangements for joint research and/or teaching with other tertiary education institutions. ii. At least maintaining the number of 436 525 ≥ previous 526 academic visitors to the University. year
Objective 23: To develop commercial activities and partnerships that complement academic research. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Increasing the royalty and intellectual $1.2 million $1.2 million ≥ previous $1.1 million property sales revenues of Otago Innovation three year Limited (OIL) as measured by a three-year average rolling average.
Objective 24: To advise and work with local and national government. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. At least 50% of academic staff providing 62.2% 61.2% ≥ 50.0% 52.9% services to public sector departments, statutory authorities, agencies, boards, committees, enquiries and to non- governmental organisations. ii. At least 20% of academic staff serving on 24.4% 28.2% ≥ 20.0% 18.6% government advisory boards and committees.
45 university of otago annual report 2007
governance and Management Objective 25: To obtain sufficient funding for current University needs and future development. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual
i. An operating surplus such that the moving 1.6% of net 1.7% of net ≥ 2% of net 1.6% of net five-year average is at least 2% of net assets assets assets assets assets (excluding extraordinary items).
ii. A liquid ratio of no worse than 1:1. 1.2:1 1.2:1 ≥ 1:1 2.7:1 iii. Net interest paid no greater than one 0.4% 0.5% ≤ 33.3% 0.5% third of the operating surplus.
Objective 26: To maintain systems for institutional quality improvement. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Reviewing and evaluating all departments 5 departments 15 departments 12 departments 10 departments and undergraduate teaching programmes and 3 and 3 and 3 and 3 once every 5 to 7 years by a panel programmes programmes programmes programmes of internal and external experts. reviewed reviewed reviewed reviewed ii. Conducting annual Graduate and Student surveys surveys surveys surveys Opinion Surveys on a portion of current conducted conducted conducted conducted students and recent graduates. iii. Completing a review of all new qualifications 14 new 10 new graduating 18 new within three years of the graduation of the qualifications qualifications year reviews qualifications first cohort of students. reviewed reviewed completed reviewed
Objective 27: To provide a culture in which staff have the opportunity to participate in policy development. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Staff representation on the University staff staff staff staff Council, Senate and the committees of represented represented represented represented those bodies.
ii. Regular meetings of Senate. 8 meetings 5 meetings ≥ 9 7 meetings meetings iii. Seeking staff feedback for University staff feedback staff feedback staff feedback staff feedback reviews and major policy developments. sought for all sought for all sought for all sought for all reviews and reviews and reviews and reviews and developments developments developments developments
46 Objective 28: To provide a culture in which students participate in policy development and quality improvement. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Student membership of the University students students students students Council, Senate and Residential College appointed appointed appointed appointed Councils, and on appropriate committees and working parties of those bodies. ii. Seeking student feedback on teaching and student survey student survey student survey student survey service quality via the annual Student and evaluations and evaluations and evaluations and evaluations Opinion Survey and student evaluations of completed completed completed completed teaching. iii. Student or recent-graduate membership on membership on membership on membership on membership on all programme and academic departmental all panels all panels all panels all panels review panels. iv. Continuing a University-wide class system system system system representative system. maintained maintained maintained maintained
Objective 29: To maintain tangata whenua/iwi participation in University governance. Performance Indicators 2005 Actual 2006 Actual 2007 Target 2007 Actual i. Continuing Te Runanga o Ngäi Tahu membership membership membership membership membership on the University Council. maintained maintained maintained maintained ii. Holding regular meetings of the Treaty 3 meetings 4 meetings 3 meetings 3 meetings of Waitangi Committee.
Note The University undertakes regular reviews of departments, schools, faculties and programmes. Review panels comprise a mixture of internal and external representatives, and normally report to the Deputy Vice-Chancellor (Academic and International), who then consults with the Vice-Chancellor. The University’s review guidelines recommend that the quality and adequacy of the structure, management and physical resources of the departments, schools, faculties and programmes are investigated. In addition to this, review panels undertake a critical and constructive evaluation of research, research supervision, community service, and teaching and learning. Implicit in these guidelines is the requirement that all courses and programmes reviewed continue to meet the standards required by the University Council and Committee on University Academic Programmes (CUAP), a committee of the New Zealand Vice-Chancellors’ Committee (NZVCC). Research The University has in place mechanisms for monitoring and improving the quality of research, scholarship and postgraduate education. The development of research is actively supported by the University through facilitation of standard provisions for research time, study leave and support staff. Additional initiatives include: the identification of recognised research themes within the University and the provision of special support in these areas; early career staff (those in their first three years of appointment) receiving special consideration in the awarding of internal research funding. The quality of research is also reflected in the work accepted for publication in scholarly books and learned journals. A list of publications is collated and checked to ensure that all publications satisfy guidelines specified by Senate. This vetting process, which takes place after the annual external audit cycle, typically results in the rejection of a small percentage of publications. The University’s success in attracting external research funding is also a key indicator of the standard of research.
47 university of otago annual report 2007
Mechanisms for monitoring and improving the quality of postgraduate education include regular evaluations by students on the quality of teaching and supervision. This information assists in improving existing courses, developing new courses, and monitoring and improving the standard of thesis supervision. Teaching and Learning The University has in place mechanisms for monitoring and improving the quality of teaching in all courses. The mechanisms include student evaluations of teaching, which are used to review teaching effectiveness, and may also be used in considering the tenure or promotion of academic staff. Courses and programmes are surveyed on a four-year cycle, with student and graduate feedback being sought on such topics as assessment practices, teaching standards and the workplace relevance of the skills being imparted. In evaluations of this nature, small fluctuations are not necessarily statistically significant. The results of these surveys provide benchmark data for performance measurement and improvement. New papers and amendments to existing regulations may only be introduced following approval by the University Council. New programmes and major amendments to existing programmes require additional approval by the CUAP through the NZVCC. The NZVCC holds statutory authority to approve new programmes and also requires a follow-up review of any new qualification once the first cohort of students has graduated. Where appropriate, reviews may be jointly initiated by the University and an external body responsible for professional accreditation. Independent accreditation reviews may also be undertaken. Community Service The University is continuing to develop mechanisms for monitoring and improving the quality of community service. The University conducts an annual survey of staff involvement in community service activities. The 2007 survey found 89.2% of academic staff who responded were involved in community service activities, and that these staff spent an average of 8.4% of their work time on community service activities. The activities in which they were involved ranged from service on Government Advisory Boards and committees to presentations made to school and community groups on areas of professional expertise. The information gathered in this survey also assists the University in placing a financial value on its community service output.
48 49 university of otago annual report 2007
STATEMENT OF RESOURCES
Human Resources The total number of staff employed by the University increased by 6.2% to 3,453 in full-time equivalent (FTE) terms (2006: 3,250), reversing the slight decline recorded in 2005-2006. As was the case with student enrolments, the merger with the College of Education was a key contributor to this growth. Within academic ranks, the number of professors grew by 5.5%, associate professors by 7.7%, senior lecturers by 1.3% and lecturers by 1.7%. The number of research-only staff on academic contracts also rose, by 3.6%, while the number of other academic staff fell by 12.5%. The College merger and launch of the Campus Watch initiative were the biggest contributors to growth in the general staff cohort. While staff numbers increased, the combination of a buoyant general employment market and the lead times required for academic appointments caused delays in appointments to some positions.
Summary Staff Profile 2007 2006 2005 2004 Full-time Equivalent (FTE) Academic Staff Females 614 586 579 573 Males 811 821 838 843 Total 1,425 1,407 1,417 1,416
Full-time Equivalent (FTE) General Staff Females 1,331 1,189 1,247 1,232 Males 697 654 642 611 Total 2,028 1,843 1,889 1,843
Total Staff 3,453 3,250 3,307 3,259
Library Resources The Library continued to develop its on-site and online resource capacity. The total number of items held by the Library rose by 34,081 to 2,905,195, an increase of 1.2%. The Library added to its holdings of books, increasing the collection from 958,607 to 975,752 and its holding of serials from 494,732 to 502,252. In addition it now holds 230,947 microfilms (2006: 227,467) and 1,196,244 other non-book items (2006: 1,190,299). The total number of serials received rose by 1.8% to 79,188. Over 90% of serials are now received in electronic rather than print form, compared to just 71.5% five years ago.
Information Technology The strong growth of electronic communications seen in recent years continued in 2007. The volume of off-campus computer and telecommunications network traffic rose from 42,432,129 megabytes in 2006 to 109,357,140 megabytes in 2007, an increase of 158%. The roll-out of wireless networks across the University’s campus sites that commenced in 2006 continued apace in 2007, with priority given to ensuring wireless availability in University libraries and other areas that are heavily used for study purposes by students. Design work was undertaken for a second server room which, when complete, will provide the University with an industry-standard back-up for its core hardware and systems.
50 Land, Buildings and Capital Development The College of Education merger was the primary contributor to an increase of 3.1 hectares in the total land controlled by the University in 2007, although other strategic purchases during the year also contributed. University-controlled land now totals 25,619 hectares, the vast majority of which is endowment land let on long-term leases.
2007 2006 2005 2004 Land (ha) (ha) (ha) (ha)
Land owned by the University 26.1 22.9 22.9 22.9 Land in Crown title for the University 8.5 8.5 8.5 8.5 Endowment leasehold 25,585.3 25,585.3 25,585.3 25,585.3
Total Land Controlled by the University 25,619.9 25,616.7 25,616.7 25,616.7
The University’s net assignable floor space increased by 21,769 square metres in 2007 to reach 203,235 m2. This increase was due to the facilities that passed into University control as a consequence of the College merger, along with the completion of several projects that added space in other areas.
Net Assignable Floor Space 2007 2006 2005 2004
Humanities 21,903 14,094 12,999 12,818 Science 37,627 37,626 37,633 37,640 Health Sciences 64,485 61,243 61,203 60,948 Commerce 9,019 9,056 9,085 9,286 Administration & other 49,387 42,936 17,940 18,072 Corporate 4,492 4,446 4,445 4,458 Information Services 16,320 12,065 36,819 36,819
Total 203,233 181,466 180,124 180,041
The most notable of these was the extension and redevelopment of the University of Otago, Wellington complex. Completed at a cost of $18.4 million, this facility was officially opened by the Prime Minster in September 2007. Work also continued on improvements to the University of Otago Christchurch facility.
The University of Otago, Wellington redevelopment was officially opened in September.
51 university of otago annual report 2007
Developments in Dunedin included a number of strategic land and building purchases in the campus area. The most significant of these were the acquisition of the Abbey Lodge complex and of 279-281 Great King Street. Abbey Lodge will open for the 2008 academic year as Abbey College, the country’s first postgraduate residential college. An extensively redeveloped 279-281 Great King Street facility will open in mid 2008 as the Hunter Centre, a base for teaching in the health sciences. Agreement was also reached in 2007 to purchase the Radionet House complex which, once redeveloped, will become a new base for Music at Otago. The other major capital projects undertaken or commenced in 2007 were the re-modelling and upgrading of facilities in the College of Education and – late in the year – the construction of the Zoology aquarium and associated laboratories. Approval was also given during 2007 to commence work in 2008 on several other major capital projects. These included the construction of a second building to complete new facilities for the Psychology Department, a redevelopment of the Bill Roberston Library (which serves the needs of both the College of Education and Otago Polytechnic), and the re-cladding of the Microbiology building.
EQUAL OPPORTUNITIES The University Charter identifies partnerships with tangata whenua and equity in employment and educational opportunity as core values of this institution. The University contributes to the achievements of tangata whenua through a Treaty-based partnership, primarily with Ngäi Tahu. The partnership is underpinned by a Memorandum of Understanding (MoU) and recognises Ngäi Tahu rangatiratanga and mana within the takiwä of Ngäi Tahu. A revised MoU was signed by Ngäi Tahu and the University of Otago in 2007. In addition to this MoU, an MoU with Ngäti Porou Hauora was renewed in 2007. An agreement with Tipu Ora Trust (Te Arawa) was also signed, and agreement-in-principle reached for an MoU with Te Runanga o Ngäti Toa. A further significant development in the University’s contribution to Mäori came with the adoption of the Mäori Strategic Framework in late 2007. This framework provides a linkage between the aspirations expressed in memoranda and agreements with Ngäi Tahu and other iwi, and the overall strategic goals and objectives of the University. The University also recognises a commitment to Pacific Peoples, which extends both to those who are resident in New Zealand, and those in the wider Pacific. The Pacific Peoples Reference Group, a joint University-community group which was formed in 2006 to advise on developments in this area, continued to meet and provide guidance to the University in 2007. Equal Educational Opportunities The University is committed to eliminating unnecessary barriers to the admission and progress of students. A key component of its strategy in this area is the provision of support and recruitment initiatives for students from groups which may be under-represented within the institution and who may be disadvantaged in terms of their ability to attend the institution. Mäori students, Pacific Peoples students and students with disabilities are three such groups that the University gives particular focus to. Mäori The University’s Auckland-based Mäori liaison officer, who provides a full-time service visiting schools and marae to advise and assist young Mäori in planning for future participation in tertiary education, continued to play a key role in Mäori student recruitment in 2007, as did targeted scholarships and awards. The number of Mäori students increased by 12.2% in 2007, from 1,368 to 1,535, and Mäori students now comprise 8.5% of the University’s domestic student population, compared to 7.6% in 2006.
52 Te Hu˚a Mätaura˚a (the Mäori Centre) continued to provide study, cultural and social services and support for Mäori at Otago, and the academic performance of Mäori at the University continued to improve in 2007, with 73.8% passing at least two thirds of the academic credits for which they had enrolled. The University continued to give special recognition to the academic achievement of its Mäori students by way of regular pre-graduation ceremonies for graduates, their whanau, and University staff. Continuing a tradition established by the Dunedin College of Education, the University also held its first full graduation ceremony on a marae in 2007. Held at Murihiku Marae in Invercargill, this ceremony was for graduates in the bilingual teacher education programme that is run from the University’s Southland campus.
Iwi to which Students are Affiliated 2007 2006 First Any First Any Affliation Affiliation Affliation Affiliation
Käti Mamoe 10 53 10 49 Ngäi Tahu 329 383 286 335 Ngäi Te Rangi 14 29 11 22 Ngäpuhi 180 235 154 216 Ngäti Awa 39 54 38 48 Ngäti Kahungunu Ki Heretaunga 30 38 31 41 Ngäti Kahungunu Ki Te Wairoa 35 65 31 56 Ngäti Kahungunu Ki Wairarapa 19 25 15 21 Ngäti Maniapoto 48 67 40 52 Ngäti Pikiao 11 23 11 24 Ngäti Porou 127 172 118 153
Ngäti Raukawa (Horowhenua - Manawatu) 34 52 35 49
Ngäti Raukawa (Waikato - King Country) 14 22 11 21 Ngäti Ruanui 13 28 9 20 Ngäti Tüwharetoa 38 76 34 63 Ngäti Whakaue 15 36 16 34 Ngati Whatua 13 28 17 30 Te äti Awa (Taranaki) 45 68 31 50 Te äti Hau-Nui-A-Päparangi 12 24 9 19 Te Rarawa 27 46 23 40 Tühoe 28 54 28 48 Waikato 25 43 14 26 Whakatöhea 22 34 18 28 Other/unknown 407 797 378 693
Total 1,535 n/a 1,366 n/a
Pacific Peoples Acting on the advice of its Pacific Peoples’ Reference Group, the University gave a greater community focus to its Pacific student recruitment in 2007, pending the appointment of a full-time Pacific community liaison officer. There were 584 Pacific Islands students enrolled in 2007, an increase of 7.2% over 2006. A key development for Pacific students in 2007 was an expansion of the University’s Pacific Islands Centre, which included both additional staff and relocation into a new and larger building. The expansion of this centre will play a key role in enabling the University to support better its Pacific students, whose academic performance lags behind that of the general student population.
53 university of otago annual report 2007
Services Provided by Pacific Islands Centre 2007 2006
Registered with the centre 360 360 Extra tutorials 42 34 Career advisory services seminar 4 4 Students receiving course advice 250 230 Pacific postgraduate seminars 24 16 Student gatherings 14 14 Community meetings/consultation 17 12 Community functions attended 87 24 Students receiving counselling 80 125
Disabilities Support The University takes a proactive approach to the recruitment and support of students with disabilities. Its Disabilities Information and Support service takes a lead role in this area, working in conjunction with both academic and administrative departments. In 2007 the University enrolled 834 students with a disability affecting study, a slight decrease on 2006. Provision of support in the form of learning assistance and/or special equipment requiring a specific financial commitment was provided to 484 students with disabilities in 2007 (2006: 526). A total of 422 students received learning support in the form of note-taking, interpreting, tutoring, or assistance with examinations, research, transcription or reading (2006: 475). Alternative examination arrangements were put in place for 276 students, and 147 received assistance with parking arrangements, photocopying, equipment loan, remote dial-in to campus or access to remote library services (2006: 274 and 171 respectively).
Learning Assistance Support for Students with Disabilities 2007 2006 2005
Note-taking 223 265 173 Tutoring 112 94 80 Transcription/typing 4 3 0 Reader 0 0 1 Assistant 0 11 9 Examination arrangements 276 274 256 Scanning 0 1 3 Other 94 0 0
Equal Employment Opportunities In 2007 the number of women in senior academic positions (senior lecturer and above) increased by 18.1% to 196 FTE. Women now comprise 30.1% of staff at these levels, compared to 26.4% in 2006. Overall, women comprised 43.1% of all academic and research staff in 2007, compared to 41.6% in 2006. The University’s progress towards achieving gender equity among senior academic staff included promotions to and new appointments at the professorial and associate-professorial levels. Women appointed to the positions of Pro-Vice-Chancellor (International), Dean of Education and Dean of Medical Sciences in late 2006 all took up their positions at the start of 2007. A woman was also appointed in 2007 to take up the position of Pro-Vice Chancellor (Humanities) from the start of 2008. The proportion of men employed as general staff decreased slightly from 35.5% to 34.4%. While the majority of general staff are female, women remain under-represented at the senior levels within the general and management staff, although the University made a female appointment to the position of Director of Marketing and Communications in 2007. The University showed strong support for the new national Women in Leadership Programme by sending six senior women to the programme and by hosting a special dinner for the course at the University of Otago,
54 Wellington. The University’s internal Women’s Professional Development Programme continued in 2007 with six workshops on varied topics designed to meet the needs of those women already established as leaders, as well as those aspiring to leadership. Mentoring programmes were also run for both academic and general staff women. A successful new initiative was the introduction of a peer learning group for senior general staff women. Throughout 2007 work progressed on improving the breadth and quality of the University’s EEO information. The University continued to provide a Treaty of Waitangi Education Programme for staff in 2007. The number of staff attending the University’s Treaty workshops increased slightly to 172, while the number attending the Introduction to the Mäori Language course rose from 73 to 87. Awhi Mai Awhi Atu, an organisation formed in late 2006 to “affirm, support and strengthen the role of Mäori staff in the University”, continued to operate in 2007. Other Staff Support Initiatives The Employee Assistance Programme continued in 2007, providing confidential, short-term counselling at no cost to the individual. Staff training courses on occupational health and safety issues continued to be offered. Support for childcare was provided through the Otago University Childcare Association, with the University providing funds to subsidise the service, which is available to students and staff.
55 university of otago annual report 2007
FINANCIAL REVIEW 2007
The University Group, which includes the University, University of Otago Holdings Limited and the Trusts, produced an operating surplus of $32.1 million for the year. This was 1.5% higher than budget, but 13.7% less than the 2006 result. The University’s operating surplus for the year was $26.4 million. This was $2.9 million (12.4%) above the budget and $9.7 million (58.3%) better than last year. The net costs of all the University’s academic divisions were below budget for the year, due to good growth in income and lower-than-expected costs. Shortage of space for new staff and postgraduate students was cited by several academic departments as the reason they did not fully spend their operating budgets. The University has approved a number of building projects in a Critical Space Plan as a major initiative to resolve these issues. The University’s surplus represented a return of 5.5% on revenue of $477.7 million and 2.5% on equity of $1.043 billion. While the surplus was comfortably above the Tertiary Education Commission’s guidelines of 3% and 1.2% respectively, it fell short of the University’s own surplus target of a five-year moving average of at least 2% of equity. The average achieved from 2003 to 2007 was 1.5%, a not unexpected outcome given that the target was only increased to 2% in 2006 and it was expected to take some time to achieve. The University Trusts provided an operating surplus of $5.4 million for the year, which was $3.5 million (39.5%) below budget. The latter part of 2007 was a difficult period for Trust investments, with a significant downturn in the value of local and global equities having a negative impact on Trust returns. The net return on investments for the year, including unrealised gains and losses, was 3.1%, compared with 13.1% in 2006. The average net return over the last 10 years has been 9.8%. University of Otago Holdings Limited produced a surplus of $0.4 million for the year, which was an improvement on the deficit of $1.2 million last year and compares favourably with the budgeted deficit of $0.7 million. The major contributor to this result was the sale of the New Zealand Centre for Reproductive Medicine Limited, in which University of Otago Holdings Limited had a 50% interest. Total cash flow for the Group for the year was a surplus of $9.7 million compared to a budgeted surplus of $22.0 million. The decline from budget was due to greater cash outflows for investing activities (up $30.5 million) partially offset by better than budgeted cash flows from operating activities (up $17.4 million). The increase in cash inflows from operating activities, up from $77.2 million in 2006 to $103.6 million, was particularly pleasing. The University continued to invest heavily in infrastructure and equipment, with $70.6 million of cash provided for this purpose. This was $8.2 million more than the investment made in 2006, with property purchases and building works accounting for most of the increase. Major projects included the purchase of a Dunedin hotel complex and its conversion into a postgraduate residential college (Abbey College), the construction of a new teaching, research and student services building for Health Sciences (the Hunter Centre), the completion of a new building on the University of Otago Wellington Campus and significant conversion work at the University of Otago College of Education site which was acquired as a result of the merger with the Dunedin College of Education. Total assets for the group were $1.371 billion, with the University accounting for $1.158 billion of this. Group liabilities totalled $115 million, leaving equity of $1.256 billion. Conclusion The financial outcome for the year was better than expected, with both the University and the Group exceeding all of the financial guidelines provided by the Tertiary Education Commission. The University produced an operating surplus above last year’s and slightly ahead of budget, even after allowing for a large increase in depreciation. This flowed through into a strong cash performance for the year and created a solid financial position at year end. This outcome was timely given the high value of projects on the University’s Critical Space Plan; projects which are planned for completion between now and 2011. There is also a growing number of other building projects on the horizon. Major upgrades to several existing buildings and the construction of new space will be required if the quality of the student experience and the research capability of the University are to be enhanced. Higher operating surpluses will be an essential source of funding for these projects.
A J Patrick chief operating officer
56 STATEMENT OF RESPONSIBILITY
2007 financial statements
1. The Council and management of the University of Otago accept responsibility for the preparation of the annual financial statements and the statement of service performance and the judgements used in them;
2. The Council and management of the University of Otago accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting; and
3. In the opinion of the Council and management of the University of Otago, the annual financial statements and the statement of service performance for the financial year ending 31 December 2007 fairly reflect the financial position and operations of the University of Otago.
chancellor
vice-chancellor
chief operating officer
30 APRIL 2008
57 university of otago annual report 2007
STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2007
THE REPORTING ENTITY
The University of Otago was founded in 1869 by the Ordinance of the Otago Provincial Council and is New Zealand’s oldest University. In 1874 the University of Otago became an affiliated college of the University of New Zealand, which was established by statute in 1870. However, in 1961 the University of New Zealand was disestablished and the University of Otago acquired its present legal status and was granted the power to confer degrees by the University of Otago Amendment Act 1961. The financial statements presented here are for the reporting entity University of Otago (Parent), Group companies and controlled Trusts. The group companies are: ~ University of Otago Holdings Limited. Holding company. 100% owned by the University. ~ Otago Innovation Limited. Company to hold and develop the commercial interests of the University. 100% owned by University of Otago Holdings Limited. ~ University of Otago Foundation Studies Limited. Operates the foundation year programme and an English language school. 100% owned by University of Otago Holdings Limited. ~ University of Otago Press Limited. Not trading. 100% owned by University of Otago Holdings Limited. ~ University Union Limited. Owner of the University Union building. 50% owned by University of Otago Holdings Limited. ~ New Zealand Centre for Reproductive Medicine Limited. No longer trading – business assets sold. 50% owned by University of Otago Holdings Limited. ~ Unihealth Limited. Not trading. 50% owned by University of Otago Holdings Limited. ~ LCo New Zealand Limited. Owns and operates a library system serving four Universities. 31% owned by University of Otago Holdings Limited. ~ Unipol Recreation Limited. Provides gymnasium and recreational services to University of Otago and Otago Polytechnic students and staff. 40% owned by University of Otago Holdings Limited. ~ BPAC NZ Limited. This company works with the School of Pharmacy to provide best-practice advocacy services to primary, secondary and tertiary health providers in the area of medication prescribing. 25% owned by University of Otago Holdings Limited. ~ Upstart Trustee Company Limited. 33% owned by University of Otago Holdings Limited. ~ Immune Solutions Limited. This company is working with the Department of Microbiology to develop oral vaccines for the treatment of tuberculosis in animals, particularly possums. 100% owned by Otago Innovation Limited. ~ Isotrace NZ Limited. No longer trading. 100% owned by Otago Innovation Limited. ~ Delta S Technology Limited. Developer of heat-pump technology for industrial uses. 44.7% owned by Otago Innovation Limited. ~ Photonic Innovation Limited. Developer of revolutionary laser technology. 50% owned by Otago Innovation Limited. ~ Medialab Limited. Provides technical consulting advice to the telecommunications industry. 50% owned by Otago Innovation Limited. The controlled Trusts include the University of Otago Foundation Trust, the Hocken Trust and several other Trusts established for the benefit of the University of Otago. The University is the beneficiary of all the Trusts and in most cases acts as Trustee or appoints the Trustees. The primary objective of the University and Group is to provide goods and services for the community for social benefit rather than make a financial return. Accordingly, the University has designated itself and the Group as public benefit entities for the purposes of New Zealand equivalents to the International Financial Reporting Standards (NZ IFRS).
58 The financial statements of the University and Group are for the year ended 31 December 2007. The financial statements were authorised for issue by Council on 30 April 2008. The University is organised into divisions. There are four teaching and research divisions – Commerce, Health Sciences, Humanities, Sciences – and nine service divisions – Information Technology Services, Property Services, Financial Services, Marketing and Communications, Academic Services, Student Services, Human Resources, Research and Accommodation Services.
BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS The accompanying financial statements are presented in accordance with Section 220 of the Education Act 1989, the Crown Entities Act 2004, and New Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with NZ IAS 1 13(1)(d), 105 (a) and other applicable Financial Reporting Standards, as appropriate for public benefit entities. This is the first set of financial statements prepared using NZ IFRS and comparatives for the year ended 31 December 2006 have been restated to NZ IFRS accordingly. Reconciliations of equity and net surplus/ (deficit) for the year ended 31 December 2006 under NZ IFRS to the balances reported in the 31 December 2006 financial statements are detailed in notes 24 and 25. The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing an opening NZ IFRS statement of financial position as at 1 January 2006 for the purposes of the transition to NZ IFRS. The accounting principles followed by the Group are those recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis, with the exception that certain property plant and equipment have been revalued. The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the University of Otago is New Zealand dollars. The financial statements include: ~ Statement of Financial Performance, ~ Statement of Movements in Equity, ~ Balance Sheet, ~ Statement of Cash Flows, and ~ Statement of Commitments and Contingencies. The financial statements include the operations of the University of Otago, its subsidiary and associate companies and its controlled Trusts. The subsidiary companies and trusts have been included in the consolidated accounts by line aggregation of assets, liabilities, revenues, expenses and cash flows. Associate companies have been consolidated on an equity accounting basis, which shows the share of the surpluses/ deficit in the University’s statement of financial performance and the share of post-acquisition increases/ decreases in net assets in the University’s Balance Sheet. All significant inter-entity transactions have been eliminated on consolidation.
59 university of otago annual report 2007
ACCOUNTING POLICIES The following accounting policies, which materially affect the measurement of financial performance and financial position, have been applied. 1. revenues Government grants and student fees Government grants and student fees are recognised as income on entitlement. Research funds Income received for research which will provide reciprocal benefits to the research funding provider is recognised in the Statement of Financial Performance as “externally-funded research” income when research expenditure is incurred. Those research funds which are not expended at year end are included in the Balance Sheet as “funds received in advance” to recognise the future obligation to complete the research. (Refer also to Note 13.) Income for research which provides no reciprocal benefits to the research funding provider is recognised in the Statement of Financial Performance as “externally-funded research” income when received. pledged donations Pledged donations are recognised in the Statement of Financial Performance as “Trust donations” when the pledge agreement is signed. When payments are made they are recorded against the asset. Pledged donations are recorded at their face value. (Refer Note 8 and Note 27.) Other Where physical assets are acquired for nil consideration the fair value of the asset received is recognised as revenue. Dividends are recognised when the right to receive payment has been established. 2. budgets The budgets reported in these financial statements have been updated to reflect actual EFTS enrolments and funding at 31 March 2007, together with adjustments for any significant changes in revenue and costs that became evident after the original budget was prepared. This revised budget was approved by University Council on 10 July 2007. While this does not comply with the Crown Entities Act, as the University should report against its original budget, it is a more meaningful comparison for readers due to major funding changes awarded to the University between the adoption of the original budget and the revised budget. Budget Original Actual Review Budget ($000) ($000) ($000) Operating surplus 26,351 23,439 6,828
3. foreign currencies Transactions and balances in foreign currencies are converted at the New Zealand rate of exchange ruling at the date of the transaction and balance date respectively. Foreign exchange gains and losses have been recognised in the Statement of Financial Performance. 4. trade and other receivables Accounts receivable are valued at estimated realisable value. Amounts not considered recoverable are written off in the period in which they are identified.
60 5. property, plant and equipment The University’s land and buildings are revalued when there has been a significant movement in the market value or depreciated replacement cost. They were revalued on 31 December 2006 in accordance with NZ IAS 16 “property, plant and equipment” and the New Zealand Property Institute’s Valuation Standard 3, “Valuations for Financial Reporting”. The basis of valuation was as follows: ~ Land was valued at market value; ~ Specialised buildings and improvements were valued at depreciated replacement cost; and ~ Non-specialised buildings and improvements were valued at market value.
The valuation was completed by a registered valuer employed by the University and has been reviewed by an independent registered valuer (Chapman Consulting Otago Limited) and confirmed as appropriate for financial reporting purposes. (Refer also to Note 10.) All Crown-owned land and buildings (if any) used by the University are included as part of the University’s assets. Although legal title has not been transferred, the University has assumed all the normal risks and rewards of ownership. Capital work in progress is valued at cost and is not depreciated. Library books and periodicals, with the exception of rare books and special library collections, have been valued at cost less accumulated depreciation. Library electronic resources in the form of annual subscriptions are written off at the time of purchase. Rare books and special library collections were valued as at 31 December 1994 by expert University Library staff, based on the net current value of items following the generally accepted methodology employed by the Alexander Turnbull Library. Any additions to the collection have been valued at cost. (Refer also to Note 19.) The Hocken Library Collections were revalued at 1 January 2006 by an independent registered valuer (Peter Webb Galleries). The University is electing to adopt optional exemption section 13 (b) of NZ IFRS 1 and is recognising the revalued amounts as fair value, and using this as the deemed cost. Any additions since 1 January 2006 have been valued at cost. (Note 20.) University artworks were valued at 1 January 2006 by an independent registered valuer (Peter Webb Galleries). The University is electing to adopt optional exemption section 13 (b) of NZ IFRS 1 and is recognising the valued amounts as fair value, and using this as the deemed cost. Any additions since 1 January 2006 have been valued at cost. Plant, motor vehicles, equipment and furniture are recorded at cost less accumulated depreciation and impairment losses. Asset purchases of less than $2,000 are expensed at cost on acquisition, with the exception of furniture and computers which are capitalised regardless of cost.
61 university of otago annual report 2007
The useful life of each asset class and the depreciation rates used in the preparation of these statements are as follows: Asset Class Useful Life Depreciation Rate ( Y e a r s )
Buildings and Components Site improvements 50 to 100 1.0% to 2.0% Structure including walls 40 to 250 0.4% to 2.5% Roof 25 to 100 1.0% to 4.0% Plumbing 40 to 60 1.7% to 2.5% Lifts 40 to 50 2.0% to 2.5% Heating and ventilation 30 to 60 1.7% to 3.3% Fume cupboards 15 6.7% Floor coverings and chattels 10 to 40 2.5% to 10.0% Fit out 30 to 75 1.3% to 3.3% Fire protection 50 to 60 1.7% to 2.0% Electrical 40 to 50 2.0% to 2.5% Data network 15 6.7% Motor vehicles and trailers 3 to 10 10.0% to 33.3% Furniture and fittings 5 to 10 10.0% to 20.0% Plant and equipment 4 to 37 2.7% to 25.0% Computers and photocopiers 4 to 10 10.0% to 25.0% Library collections 3 to 10 10.0% to 33.3%
Depreciation of all assets, except for land, artworks, rare books and special library collections is provided for on a straight-line basis at rates that will write off their cost, less any residual value, over their estimated useful lives. Land, artworks, rare books and special library collections are not depreciated. 6. intangible assets Acquired computer software is capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs that are directly associated with the development of software for internal use by the University of Otago are recognised as an intangible asset. Amortisation The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful economic life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the Statement of Financial Performance. (Note 11.) The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows: Computer software 3 to 25 years 4% to 33.3%. 7. inventory Inventories have been valued at the lower of cost and net realisable value. Cost is determined on a first-in first-out basis, or by the weighted average method. Obsolete inventories have been written off. 8. goods and Services Tax (GST) The financial statements are prepared on a basis which excludes GST. Accounts receivable and accounts payable are GST inclusive. GST owing to the Inland Revenue Department as at 31 December 2007 is included in accounts payable. The net GST paid to, or received from, the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST.
62 9. employee entitlements Annual leave for academic and general staff has been accrued. In addition an accrual has been made for retirement gratuities and sick leave for both academic and general staff and long service leave for general staff. Retirement gratuities, long service and sick leave have been accrued on the following basis: • Long service leave which has vested to the employee (an entitlement has been established) has been measured at nominal value using remuneration rates current at reporting date. This is included as a current liability. • Retirement gratuities which have vested to the employee (an entitlement has been established) have been measured at nominal value using remuneration rates current at the time of entitlement. This is included as a current liability. • Retirement gratuities and long service leave which have not yet vested in the employee (no entitlement has been established) have been measured using the present value measurement basis which discounts expected future cash outflows. This is treated as a non-current liability. • Sick leave has been measured using the present value measurement basis which discounts expected future cash outflows. This is treated as a non-current liability. • Employee entitlements relating to the sale of intellectual property have been valued using the value of the intellectual property at balance date as the basis for the entitlement. 10. finance leases Finance leases, which effectively transfer to the University of Otago and Group companies all the risks and benefits incidental to ownership of the leased item, are capitalised. The leased assets and corresponding lease liabilities are disclosed and the leased assets are depreciated over the period that benefits are received from their use. 11. operating leases An operating lease is a lease that does not transfer substantially all the risk and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight- line basis over the lease term. 12. Other financial assets The University classifies its other financial assets into the following four categories: financial assets at fair value through the Statement of Financial Performance, loans and receivables, held to maturity investments and available for sale. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at reporting date. Financial assets are initially measured at fair value plus transactions costs. • Financial assets at fair value through the Statement of Financial Performance A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management. These include investments in quoted shares. After initial recognition they are measured at fair values. Gains or losses on measurement are recognised in the Statement of Financial Performance. • Loans and receivables These are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. These include shareholders’ advances, loans and short-term deposits. After initial recognition they are measured at amortised cost using the effective interest method. Gains and losses where the asset is impaired or derecognised are recognised in the Statement of Financial Performance. • Held to maturity investments These are assets with fixed or determinable payments and fixed maturities that the University has the positive intention and ability to hold to maturity. The University and Group have no investments in this category.
63 university of otago annual report 2007
• Available for sale assets These are those non-derivative financial assets that are designated as available for sale or are not classified as financial assets at fair value through the Statement of Financial Performance, loans and receivables or held to maturity investments. The University and Group have no assets in this category. University investments in its subsidiaries are carried at cost. Investments in associate companies are valued at cost plus the share of retained profits. 13. accounting for derivative financial instruments and hedging activities The University uses derivative financial instruments to hedge exposure to foreign exchange risks arising from financing activities. The University does not hold or issue derivative financial instruments for trading purposes. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and subsequently remeasured at fair value. 14. statement of cash flows “Cash and cash equivalents” includes cash-in-hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. “Operating activities” include cash received from all income sources and record the cash payments made for the supply of goods and services. “Investing activities” are those activities relating to the acquisition and disposal of non-current assets. “Financing activities” comprise activities that change the debt structure of the University. 15. taxation The University, its subsidiaries and Trusts are exempt from the payment of income tax as they are treated by Inland Revenue Department as charitable organisations. Accordingly, no charge for income tax applies or has been provided for. 16. acc Partnership Programme The University of Otago belongs to the ACC Partnership Programme whereby the University accepts the management and financial responsibility of work-related illnesses and accidents of employees. Under the ACC Partnership Programme, the University is effectively providing accident insurance to employees and this is accounted for as an insurance contract. The value of this liability represents the expected future payments in relation to accidents and illnesses occurring up to the Balance Sheet date for which the University has responsibility under the terms of the Partnership Programme. The liability for claims reported prior to balance date has been determined by assuming that the future experience for each current claim is consistent with historical claim information since the commencement of the programme. The liability for injuries or illnesses that have occurred up to balance date, but not yet reported or not fully reported, has been determined by reference to historical information of the time it takes to report injury or illness. The value of the liability is measured at the present value of the future payments for which the University has responsibility using a risk free discount rate. The value of the liability includes a risk margin that represents the inherent uncertainty of the present value of the expected future payments. 17. superannuation schemes Defined contribution schemes Obligations for contributions to defined contribution superannuation schemes are recognised as an expense in the statement of financial performance. Defined-benefit schemes The University belongs to the Government Superannuation Fund which is a Defined-Benefit Plan Contribution Scheme. The University has no underwriting responsibilities as any shortfall is met by the Government. As such, the scheme is accounted for as a defined contribution plan. Further information on this scheme is disclosed in Note 14.
64 18. critical accounting estimates and assumptions In preparing these financial statements the University has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. 19. changes in accounting estimates During the financial year the University reviewed its estimate of useful life for periodical publications. These have previously been estimated to have a 10-year useful life. The University now believes that a five- year useful life is a more appropriate estimate. The effect on the current year is to reduce the University’s fixed assets by $13.389 million and the University surplus by the same amount. The future effect of this change is considered to be immaterial on the University. 20. Transition to NZ IFRS The University’s transition date is 1 January 2006. The University prepared its opening NZ IFRS Balance Sheet at that date. The reporting date of these financial statements is 31 December 2007. The University’s NZ IFRS adoption date is 1 January 2006. In preparing these financial statements in accordance with NZ IFRS 1, the University has applied the mandatory exceptions and certain optional exemptions from full retrospective application of NZ IFRS. Exemptions from full retrospective application was elected by the University of Otago. Standards or interpretations issued but not yet effective NZ IFRS 8 – operating segments was approved by the Accounting Standards Review Board in December 2006 and is applicable for accounting periods beginning on or after 1 January 2009, although early adoption is encouraged. The standard requires additonal disclosures about the Group’s operating segments. However, the Group will adopt a Public Benefit Entity exemption on the standard. Consequently, it will not impact the financial statements. NZ IAS 1 amendents require certain additional disclosures including a statement of comprehensive income. This will result in revised disclosures. There are no other standards or interpretations issued, but not yet effective that the University has not yet applied. The University has elected to apply the following optional exemptions from full retrospective application: • Fair value as deemed cost exemption The University has elected to measure its art collection and the Hocken Library Collection at fair value as at 1 January 2006, and to use that fair value as the deemed cost at that date. • Designation of financial assets and financial liabilities exemption The University and Group have designated investments held by the University Trusts at fair value on transition to NZ IFRS.
CHANGES IN ACCOUNTING POLICIES All accounting policies have been applied on a basis consistent with the previous year.
65 university of otago annual report 2007
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 DECEMBER 2007
Consolidated University
This Year Budget Last Year This Year Budget Last Year Note $000 $000 $000 $000 $000 $000
INCOME
Government grants 1 219,401 218,156 174,292 218,522 217,292 173,448 Domestic tuition fees 71,613 71,677 65,963 71,164 71,287 65,658 International tuition fees 33,870 34,275 34,352 30,528 31,374 31,689 Investment income 2 13,556 16,600 17,971 6,685 5,573 5,052 Externally-funded research 72,974 70,038 67,509 72,649 69,808 67,202 Distributions from Trust funds 4,579 4,702 4,657 Consulting and commercial income 48,599 46,790 60,486 48,978 46,495 59,780 Sale of intellectual property 425 117 302 413 11 50 Trust donations 6,180 5,023 14,160 Other income 24,335 19,226 2,187 24,208 20,730 2,127
Total income 490,953 481,902 437,222 477,726 467,272 409,663
EXPENDITURE
Salaries – academic 146,404 151,504 131,413 144,059 149,158 129,094 Salaries – general 112,900 112,270 93,967 110,886 110,223 91,863 Staff-related costs 13,759 17,621 12,456 13,701 17,580 12,401 Consumables and general 79,461 65,332 73,202 76,778 63,648 70,986 Depreciation and amortisation 3 59,676 46,473 39,506 59,317 46,172 39,213 Occupancy costs 28,978 38,831 33,997 28,978 38,831 33,996 Scholarships 17,656 18,221 15,460 17,656 18,221 15,460
Total expenditure 3 458,834 450,252 400,001 451,375 443,833 393,013
Net surplus 32,119 31,650 37,221 26,351 23,439 16,650
The Statement of Accounting Policies and the Notes to the Financial Statements form part of and are to be read in conjunction with this statement.
66 STATEMENT OF MOVEMENTS IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2007
Consolidated University
This Year Budget Last Year This Year Budget Last Year Note $000 $000 $000 $000 $000 $000
Opening balance of equity 1,157,256 1,157,296 962,724 949,701 949,701 775,703
Net surplus for the period 32,119 31,650 37,221 26,351 23,439 16,650
Increase (decrease) in property 148,543 148,543 revaluation reserve
Total recognised revenues and expenses for the period 32,119 31,650 185,764 26,351 23,439 165,193
Net assets arising from the merger 4 56,806 57,163 56,806 57,163 with the Dunedin College of Education
Capital contribution from 9,691 9,691 7,605 9,691 9,691 7,605 Government to University of Otago Foundation Trust Leading Thinkers Initiative
Capital contribution from 1,200 1,200 Government to University of Otago/ Dunedin College of Education merger costs
Minority interest (37)
Closing balance of equity 1,255,872 1,255,800 1,157,256 1,042,549 1,039,994 949,701
The Statement of Accounting Policies and the Notes to the Financial Statements form part of and are to be read in conjunction with this statement.
67 university of otago annual report 2007
BALANCE SHEET AS AT 31 DECEMBER 2007
Consolidated University
This Year Budget Last Year This Year Budget Last Year Note $000 $000 $000 $000 $000 $000
ASSETS Current assets Cash and cash equivalents 5 27,683 39,983 18,338 17,684 11,809 8,267 Other financial assets 6 54,235 36,312 27,000 62,463 51,460 29,546 Trade and other receivables and 7 36,199 33,647 31,379 32,072 31,224 26,721 prepayments Inventory 716 680 686 715 680 686
Total current assets 118,833 110,622 77,403 112,934 95,173 65,220
Non-current assets Trade and other receivables 8 6,715 11,150 6,726 Investments in associates 9 4,002 4,824 4,421 Other financial assets 6 102,960 91,412 92,350 11,976 10,234 11,542 Property, plant and equipment 10 1,126,274 1,153,309 1,069,930 1,021,158 1,048,307 964,709 Intangible assets – internally 11 1,341 1,546 1,341 1,546 generated Intangible assets – externally 11 11,050 8,964 11,050 8,964 generated
Total non-current assets 1,252,342 1,260,695 1,183,937 1,045,525 1,058,541 986,761
Total assets 1,371,175 1,371,317 1,261,340 1,158,459 1,153,714 1,051,981
LIABILITIES Current liabilities Bank overdraft 5 369 369 Trade and other payables and 12 31,841 29,727 28,028 33,722 29,131 27,606 accruals Funds received in advance 13 31,098 27,998 24,817 30,048 27,049 23,615 Employee entitlements 14 30,424 33,931 27,961 30,200 33,751 27,781
Total current liabilities 93,363 91,656 81,175 93,970 89,931 79,371
Non-current liabilities Employee entitlements 14 21,690 23,539 22,409 21,690 23,539 22,409 Loans and leases 15 250 322 500 250 250 500
Total non-current liabilities 21,940 23,861 22,909 21,940 23,789 22,909
EQUITY General reserve 16 698,280 672,929 599,664 484,957 472,964 392,109 Property revaluation reserve 16 557,592 582,871 557,592 557,592 567,030 557,592
Total equity 1,255,872 1,255,800 1,157,256 1,042,549 1,039,994 949,701
Total liabilities and equity 1,371,175 1,371,317 1,261,340 1,158,459 1,153,714 1,051,981
The Statement of Accounting Policies and the Notes to the Financial Statements form part of and are to be read in conjunction with this statement.
68 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2007
Consolidated University
Note This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000
OPERATING ACTIVITIES Cash was provided from: Government grant 218,899 218,428 175,420 217,843 217,564 174,576 Revenue from fees 108,923 110,101 100,354 105,190 106,703 97,065 Revenue from services 151,206 136,133 142,793 150,400 137,388 137,697 Investment income 17,230 13,865 15,511 5,989 5,519 5,086 496,258 478,527 434,078 479,422 467,174 414,424 Cash was applied to: Employees and suppliers 392,633 392,326 356,849 387,170 385,867 350,789 392,633 392,326 356,849 387,170 385,867 350,789
Net cash flows from operating activities 103,625 86,201 77,229 92,252 81,307 63,635
INVESTING ACTIVITIES Cash was provided from: Investments 230 2,641 359 196 300 67 Investments– subsidiaries and associates 319 2,259 Sale of property, plant and equipment 2 172 172 551 2,641 531 2,455 300 239 Cash was applied to: Investments 40,130 10,151 22,303 30,691 21,092 9,507 Investments – subsidiaries and associates 1,320 1,351 1,320 1,351 Property, plant and equipment acquired 70,726 72,248 62,768 70,624 72,168 62,401 112,176 83,750 85,071 102,635 94,611 71,908
Net cash flows from investing activities (111,625) (81,109) (84,540) (100,180) (94,311) (71,669)
FINANCING ACTIVITIES Cash was provided from: Loans raised 9,700 9,686 9,555 9,700 9,691 9,555 College of Education merger 4 8,014 7,490 8,014 7,490 Reduce current assets 12 17,714 17,188 9,555 17,714 17,181 9,555 Cash was applied to: Reduce liabilities 266 40 266 266 40 266
Net cash flows from financing activities 17,714 16,922 9,515 17,714 16,915 9,555
Total cash flows 9,714 22,014 2,204 9,786 3,911 1,521
Opening balance 17,969 17,969 15,765 7,898 7,898 6,377
Closing balance 27,683 39,983 17,969 17,684 11,809 7,898
Represented by: Cash and cash equivalents 5 27,683 39,983 17,969 17,684 11,809 7,898
Total 27,683 39,983 17,969 17,684 11,809 7,898
The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.
The Statement of Accounting Policies and the Notes to the Financial Statements form part of and are to be read in conjunction with this statement.
69 university of otago annual report 2007
RECONCILIATION OF THE NET SURPLUS FROM OPERATIONS WITH THE NET CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000
Net Surplus 32,119 31,650 37,221 26,351 23,439 16,650
Plus (less) non-cash items Non-cash consideration for (649) 56 intellectual property Adjustment to staff entitlements (719) 2,560 (719) 2,560 Adjustment to investments 5,383 1,128 1,128 College of Education merger (2,080) 653 (2,080) 653 Increase (decrease) in realised capital gains 94 (4,193) 94 Non-cash pledged donations 1,135 (855) (2,571) Non-cash donation to Hocken Collections (822) (1,024) Share of associates surpluses 454 (296) Depreciation and property, plant 59,676 46,473 39,506 59,317 46,172 39,213 and equipment written off Loss on disposal of property, plant 909 (39) 107 909 (39) 107 and equipment Other non-cash items (318) (250) (385)
Total non-cash items 63,712 45,037 35,184 57,521 46,786 43,008
Plus (less) movements in other working capital items: Decrease (increase) in trade and other (6,076) 1,564 (1,687) (5,457) 2,800 (1,938) receivables Decrease (increase) in prepayments 2,764 (431) 2,793 (433) Decrease (increase) in inventory (29) 6 35 (29) 6 35 Increase (decrease) in trade and other 2,358 4,179 430 2,350 4,508 177 payables Increase (decrease) in employee 2,295 7,100 2,298 7,100 entitlements Increase (decrease) in funds received 6,482 (2,904) 6,046 6,425 (2,899) 5,703 in advance
Total movements in other working 7,794 9,514 4,824 8,380 11,082 3,977 capital items
Net cash flows from operating activities 103,625 86,201 77,229 92,252 81,307 63,635
The Statement of Accounting Policies and the Notes to the Financial Statements form part of and are to be read in conjunction with this statement.
70 STATEMENT OF COMMITMENTS AND CONTINGENCIES AS AT 31 DECEMBER 2007
University and Consolidated
This Year Last Year $000 $000
COMMITMENTS As at 31 December 2007, $12.651 million of capital works, equipment and software projects were committed for 2008: Capital works 11,855 8,919 Equipment and other 796 1,025
12,651 9,944
Non-cancellable property operating leases: Not later than 1 year 1,989 2,457 Later than one year and not later than two years 1,300 1,485 Later than two years and not later than five years 2,410 1,953 Later than five years 2,710 476
Total commitment 8,409 6,371
Total commitments 21,060 16,315
University and Consolidated
This Year Last Year $000 $000
CONTINGENT LIABILITIES The University provided a guarantee to the Bank of New Zealand for a bond given by the bank to the Dunedin City Council, over the siting of some temporary buildings. 50 50
There were several personal grievance claims by employees against the University. 103
The University has a contingent liability with respect to the suspensory loan it has received from the Crown. This suspensory loan has been recognised as a crown contribution within equity on receipt. In the event of the University not achieving the required objectives, the loans are repayable to the Crown. The balance that is still subject to achieving required objectives for the Leading Thinkers loan is 25,000 15,309 The balance that is still subject to achieving required objectives for the College of Education merger loan is 1,200 1,200
There are no contingent assets.
71 university of otago annual report 2007
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2007
Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 note 1 GOVERNMENT GRANTS
Vote Education 172,274 170,549 148,814 171,395 169,685 147,970 Vote Education – PBRF 45,380 45,422 22,832 45,380 45,422 22,832 Vote Health 1,747 2,185 2,646 1,747 2,185 2,646
Total Government grants 219,401 218,156 174,292 218,522 217,292 173,448
Vote Education includes funding received from Government by way of the operational bulk grant, which is based on equivalent full-time student (EFTS) numbers and the funding category values of these EFTS and specific purpose supplementary grants. Vote Education – PBRF is funding received from Government by way of the Performance-Based Research Fund. Vote Health is EFTS funding for postgraduate health education that is clinically based and is funded by the Ministry of Health, through the Clinical Training Agency.
note 2 INVESTMENT INCOME
Bank term deposits 8,185 6,923 5,892 7,225 5,573 5,052 Loans and receivables Interest from Government and public stock 889 679 705 Interest from corporate bonds and notes 4,209 3,768 2,678 Income from associate companies 129 199 240 Dividends from New Zealand company equities 3,634 1,499 1,524 Dividends from Australian company equities 633 510 409 Realised gains on sale of equities 1,218 766 1,738 Fair value through profit and loss Unrealised gains/(losses) on revaluations (3,029) 2,207 4,193 (290) of investments Foreign exchange gains/(losses) (2,312) 49 592 (250)
Total investment income 13,556 16,600 17,971 6,685 5,573 5,052
72 Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 note 3 REQUIRED DISCLOSURES
Statement of Financial Performance Total expenditure includes: Fees to Principal auditor - Audit fees for Financial Statement audit 181 133 140 125 105 105 - Audit fees for NZ IFRS transition 36 16 - Fees for other services*1 46 12 11 46 12 11 Fees paid to lay Council members (see below) 94 102 71 94 102 71 Interest expense 135 153 135 85 Bad debts written off 204 149 147 101 52 153 Directors’ remuneration 71 72 72 Depreciation (see Note 10) Depreciation – property, plant & equipment 44,777 44,882 39,506 44,418 44,581 37,914 Amortisation – intangible assets 1,509 1,591 1,509 1,591 1,299 Write down of property, plant & equipment 13,390 13,390
Total depreciation, amortisation 59,676 46,473 39,506 59,317 46,172 39,213 and write down
Loss on disposal of fixed assets 909 (39) 107 909 (39) 107 Lease payments 4,819 4,878 3,849 4,344 4,376 3,849 *1 Relates to the audit of the Vice-Chancellor’s declaration on the Performance-Based Research Fund External Research Income and the audit of the University’s compliance with the requirements of the United State’s Department of Education in respect of the Federal Family Education Loan Programme.
The following fees were earned by members of the Council during the year:
Council Member This Year Last Year $ $ B A Aitken 11,400 E O K Blaikie 2,110 L J Brown 23,887 19,500 P W H Chin 3,070 2,805 P Y Y Chong 4,590 E W Ellison 4,540 3,825 K E Grant 8,060 R L C Heal 4,605 L P Isaacs 10,105 4,335 H M Z Lanham 4,285 S J McLauchlan 8,570 4,335 J D Palmer 2,750 2,040 M J M Sidey 3,710 3,315 K A Smith 3,325 4,845 K M Smith 4,030 3,315 S Sutton 3,315 J F Ward 10,850 3,315
Total earned 93,897 70,935
Note: Council members who are also employees do not receive attendance fees.
73 university of otago annual report 2007
The following Directors fees were earned by members of the Council who are directors of companies in the group:
Council Member This Year Last Year $ $ L Brown 24,000 20,000 S McLauchlan 6,000 6,000
Total earned 30,000 26,000
note 4 MERGER WITH THE COLLEGE OF EDUCATION
The net assets arising from the merger with the Dunedin College of Education are regarded as a contribution on behalf of one of the University’s existing equity participants. It is the University’s view that the Crown is not the legal owner of the University.
On 31 December 2006 the Dunedin College of Education was disestablished by Order in Council pursuant to s164 of the Education Act 1989 and vested in the University of Otago. No consideration was paid by the University of Otago.
The merger had the following impact on the assets and liabilities of the University.
As at 1.1.07 $000
Cash and cash equivalents 56 Other financial assets 7,960 Advances 1,850 Receivables 1,083 Inventories 27
Total current assets 10,976
Accounts payable 3,191
Total current liabilities 3,191
Working capital 7,785
Land and buildings 46,993 Vehicles 168 Furniture and equipment 542 Library and art collections 1,318
Total non-current assets 49,021
Net assets 56,806
74 Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 note 5 CASH AND CASH EQUIVALENTS
Cash at bank and in hand 1,464 2,545 5,649 253 Bank overdraft (369) (369) Bank on-call deposits 4,219 5,924 6,527 3,684 5,924 6,267 Short-term deposits maturing 3 22,000 31,514 6,162 14,000 5,632 2,000 months or less from date of acquisition
Total cash and cash equivalents 27,683 39,983 17,969 17,684 11,809 7,898
note 6 OTHER FINANCIAL ASSETS
Current portion Loans and receivables Short-term deposits with maturities 42,000 28,368 21,644 32,000 21,368 11,000 of greater than 3 months from date of acquisition Shareholder advances 1,490 1,120 1,120 Other loans 4,193 4,342 2,237 3,723 3,722 1,867 Loan from University to Foundation Trust 25,250 25,250 15,559 Corporate bonds and notes 8,042 3,602 3,119
Total current portion 54,235 36,312 27,000 62,463 51,460 29,546
Non-current portion Loans and receivables Term deposit 7,000 Shareholder advances 2,813 1,120 3,378 Other loans 2,259 868 1,351 2,828 3,308 2,859 Shares in subsidiary 5,755 4,936 4,435 Corporate bonds and notes 56,438 45,984 36,418
Fair value through profit and loss Shares in listed equities 44,263 44,560 47,581 580 870 870
Total non-current portion 102,960 91,412 92,350 11,976 10,234 11,542
Total other financial assets 157,195 127,724 119,350 74,439 61,694 41,088
75 university of otago annual report 2007
The maturity profile for other investments is as follows:
Consolidated University Weighted avg Weighted avg effective effective This Year interest rate Last Year This Year interest rate Last Year $000 $000 $000 $000
3 months or less
Loans and receivables Short-term deposits with maturities of greater than 3 months from date of acquisition (average maturity 232 days) 42,000 7.91% 21,644 32,000 8.08% 11,000 Shareholder advances 1,490 0.00% 1,120 Other loans 4,193 0.00% 2,237 3,723 0.00% 1,867 Loan from University to Foundation Trust 25,250 0.00% 15,559 3 to 12 months Loans and receivables Corporate bonds and notes 8,042 7.56% 3,119 0.00%
Total current portion 54,235 27,000 62,463 29,546
1 to 5 years Loans and receivables Short-term deposits with maturities of greater than 3 months from date of acquisition 7,000 Other loans 83 0.00% 81 83 0.00% 331 Corporate bonds and notes 47,554 7.24% 32,635 0.00% More than 5 years Loans and receivables Shareholder advances 2,813 0.00% 3,378 Other loans 2,176 0.00% 1,270 2,745 0.00% 2,528 Shares in subsidiary 5,755 4,435 Corporate bonds and notes 8,884 8.07% 3,783 0.00% Shares in listed companies – carried at fair value 44,263 47,581 580 870
Total term portion 102,960 92,350 11,976 11,542
Total loans and receivables 157,195 119,350 74,439 41,088
Investments Investments held by the Trusts include New Zealand Government Securities, State-Owned Enterprises stock, local authority stock, bank bonds, commercial bonds and listed equities. The fair values of these investments are based on quoted market prices at balance date.
The Group owns 8,345,000 shares in BLIS Technologies Limited (BLIS). At 31 December 2007 the carrying amount was adjusted from the 31 December 2006 market price of $0.07 per share to the market price at 31 December 2007 of $0.076 per share, resulting in a write-up in fair value of $50,000.
76 The Group owns 11,644,051 shares in Pacific Edge Biotechnology Limited. At 31 December 2007, 11,644,051 shares were adjusted from $0.15 per share to the market value of $0.10 per share, resulting in a decrease in fair value of $582,202.
The Group owns 4,641,200 shares in listed company Syft Technologies Limited. At 31 December 2007 the carrying amount was adjusted from the 31 December 2006 market price of $0.25 per share to the market price at 31 December 2007 of $0.10 per share, resulting in a write-down in fair value of $696,000.
The Group owns 1,805,760 shares in Antipodean Biological Inc, and has included this investment at $1.400 million.
Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 note 7 TRADE AND OTHER RECEIVABLES AND PREPAYMENTS
Trade debtors 20,574 20,699 16,915 17,183 20,291 13,360 Other debtors 10,237 6,722 9,020 9,288 4,704 7,558 Related parties 248 7 365 Prepayments 5,388 6,226 5,444 5,353 6,222 5,438
Total trade and other receivables and prepayments 36,199 33,647 31,379 32,072 31,224 26,721
TRADE AND OTHER RECEIVABLES Current 21,140 18,491 17,122 13,839 2 to 3 months 6,442 5,800 6,368 5,800 > 3 months 3,229 1,644 3,229 1,644
Carrying amount 30,811 25,935 26,719 21,283
Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000
note 8 TRADE AND OTHER RECEIVABLES NON-CURRENT 6,715 11,150 6,726
77 university of otago annual report 2007
Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 note 9 INVESTMENTS IN ASSOCIATES
Unipol Recreation Limited Unlisted ordinary shares 767 767 627 Share of increase (decrease) in the net assets 138 122 140
Total investment 905 889 767
Unihealth Limited Unlisted ordinary shares 3 3 3 Share of increase (decrease) in the net assets 0
Total investment 3 3 3
University Union Limited Unlisted ordinary shares 1,737 1,737 1,737 Share of increase (decrease) in the net assets 255 178 165
Total investment 1,992 1,915 1,902
New Zealand Centre for Reproductive Medicine Limited Unlisted ordinary shares 262 262 262 Share of increase (decrease) in the net assets 48 818 650
Total investment 310 1,080 912
LCoNZ Limited Unlisted ordinary shares 647 647 647 Share of increase (decrease) in the net assets 145 188 122
Total investment 792 835 769
BPAC NZ Limited Unlisted ordinary shares Share of increase (decrease) in the net assets 102 68
Total investment 102 68
Total investments in associates 4,002 4,824 4,421
78
(11) Total 60,819 (3,353) (6,982) 317,128 655,178 115,126 977,407 832,620 148,543 322,667 (30,477) 1,149,748 1,149,748 1,261,510
4 (791) (532) 12,351 12,943 (1,874) 131,229 131,229 119,609 119,609 141,710 131,229 Equipment
9 65 209 9,101 9,101 9,027 9,027 9,101 9,310 & Special Rare Books Collections
178 289 289 204
1,594 2,061 2,061 2,061 2,265 Hocken Collections
7,437 6,242 69,353 69,353 ibrary 73,992 73,992 81,429 73,992 (1,603) Books
326
9,280 9,280 9,280 9,280 9,280 9,606 Artworks l
1,670 2,102 11,979 11,979 15,751 13,649 13,649 13,649 Furniture
(15)
5,539 6,845 59,863 59,863 58,952 58,952 58,952 (1,417) 64,365 (6,450) Computers
791
(62) 42,716 28,613 76,370 18,864 703,731 559,478 102,610 602,194 703,731 684,867 780,039 (30,477) Buildings
551 and 9,282 5,569 L 45,933 95,700 96,251 147,753 147,753 147,753 157,035
UIPMENT Q , PLANT AND E
ROPERTY Cost Balance at 1 January 2006
P PARENT
Items cost at Items valuation at Revaluations Revaluations – write back accum.Depn Additions Disposals Transfers between categories Impairment Balance at 1 January 2007 Items valuation at Items cost at Balance December at 31 2006
Revaluations Revaluations – write back accum.Depn Disposals Transfers between categories Additions Impairment Balance December at 31 2007
note 10 note 79 university of otago annual report 2007
37,914 Total 44,418 13,390 (2,495) (6,883) 793,360 964,709 185,039 185,039 184,485 240,352 (30,477) 1,021,158
8,911 (439) 9,488 41,085 44,233 46,348 78,524 95,362 86,996 86,996 (1,122) Equipment
9,101 9,310 9,027 & Special Rare Books Collections
289
2,061 2,265 Hocken Collections
6,471 6,868 33,312 ibrary 31,480 13,389 18,660 62,769 42,512 42,512 36,041 Books
9,280 9,280 9,606 Artworks l
1,155 1,157 5,818 7,831 7,831 6,763 5,303 6,676 8,988 Furniture
5,797 6,128 11,516 11,937 11,252 47,700 47,700 52,428 48,347 (1,400) (6,444) Computers
1 27
15,580 20,777 14,897 20,805 703,731 587,297 759,234 (30,477) Buildings
)
and L 96,251 147,753 157,035
continued (
UIPMENT Q , PLANT AND E ROPERTY Accumulated depreciation and impairment losses Balance at 1 January 2006 Revaluations Revaluations – write back accum. Depn
P Disposals Depreciation Transfers between categories Impairment Balance December at 31 2006 Balance at 1 January 2007 Depreciation Revaluations – write back accum. Depn Disposals Transfers between categories Loss sale on Impairment Balance December at 31 2007 Carrying amounts At 1 January 2006 DecemberAt 31 2006 and 1 January 2007 DecemberAt 31 2007
80
(11) Total 62,033 (6,982) (4,658) 655,178 116,050 832,620 428,581 148,543 424,256 (30,477) 1,083,759 1,256,876 1,256,876 1,368,257
4 (791) (532) 12,351 12,943 (1,874) 119,882 119,882 131,502 131,502 141,983 131,502 Equipment
9 65 209 9,101 9,101 9,027 9,027 9,101 9,310 & Special Rare Books Collections
1,024 1,594 1,026 107,152 106,126 106,126 103,508 103,508 Hocken 106,126 Collections
7,437 6,246 74,176 74,176 69,533 69,533 ibrary 74,176 81,613 (1,603) Books
326
9,280 9,280 9,280 9,280 9,280 9,606
Artworks l
1,673 2,102 13,920 13,920 12,247 12,247 13,920 16,022 Furniture
(15)
6,947 5,900 61,054 61,054 61,604 61,604 61,054 65,264 (2,722) (6,450) Computers
791
(62) 19,097 28,613 76,370 42,949 559,478 102,610 703,964 602,427 684,867 703,964 780,272 (30,477) Buildings
551 and 9,282 5,569 L 45,933 95,700 96,251 147,753 147,753 147,753 157,035
CONSOLIDATED Items valuation at
Cost Balance at 1 January 2006 Items cost at
Revaluations Revaluations – write back accum. Depn Additions Disposals Transfers between categories Impairment Balance December at 31 2006 Balance at 1 January 2007 Items cost at Items valuation at
Revaluations Revaluations – write back accum. Depn Disposals Additions Transfers between categories Impairment Balance December at 31 2007
81 university of otago annual report 2007
Total 13,390 44,777 38,206 (3,129) (6,879) 897,663 186,947 186,096 241,985 186,946 (30,477) 1,069,933 1,126,275
8,952 9,523 (436) 41,163 87,235 78,719 46,352 87,235 44,270 95,632 (1,126) Equipment
9,101 9,310 9,027 & Special Rare Books Collections
107,152 106,126 103,508 Hocken Collections
6,873 6,480 31,487 ibrary 33,325 18,662 13,389 36,208 42,688 62,950 42,688 Books
9,280 9,280 9,606 Artworks l
1,161 1,164 5,317 6,930 6,766 5,826 8,094 9,255 8,094 Furniture
6,419 6,001 49,269 12,051 12,335 53,216 48,827 12,228 48,827 (2,030) (6,443) Computers
1 27 103
102 14,970 15,609 20,801 20,932 587,457 759,341 703,862 (30,477) Buildings
and L 96,251 147,753 157,035
) continued (
Accumulated depreciation and impairment losses Balance at 1 January 2006 Revaluations Revaluations – write back accum. Depn
CONSOLIDATED
Disposals Depreciation Transfers between categories Impairment Balance December at 31 2006 Balance at 1 January 2007 Depreciation Revaluations – write back accum. Depn Disposals Transfers between categories Loss sale on Carrying amounts At 1 January 2006 Impairment At 31 DecemberAt 31 2006 and 1 January 2007 Buildings cost at includes in work progress million $16.393 (2006 $18.864 million). At 31 DecemberAt 31 2007 Balance December at 31 2007
82 note 11 INTANGIBLE ASSETS – PARENT
Cost/ Accumulated This Year Last Year Valuation Amortisation Book Value Book Value $000 $000 $000 $000
COST
Software – internally generated 2,040 699 1,341 1,546 Software – externally generated 12,939 5,279 11,050 8,964
Intangible assets at cost 14,979 5,978 12,391 10,510
Opening Additions Amortisation Net Closing Book Disposals Book Value Value $000 $000 $000 $000 $000
INTANGIBLE ASSET MOVEMENTS
Software – internally generated 1,546 205 1,341 Software – externally generated 8,964 3,389 1,304 11,050
Total 10,510 3,389 1,509 12,391
Cost/ Accumulated This Year Last Year Valuation Amortisation Book Value Book Value $000 $000 $000 $000
INTANGIBLE ASSETS – CONSOLIDATED
COST
Software - internally generated 2,040 699 1,341 1,546 Software - externally generated 12,939 5,279 11,050 8,964
Intangible assets at cost 14,979 5,978 12,391 10,510
83 university of otago annual report 2007
Opening Additions Amortisation Net Closing Book Disposals Book Value Value $000 $000 $000 $000 $000
INTANGIBLE ASSET MOVEMENTS
Software - internally-generated 1,546 205 1,341 Software - externally-generated 8,964 3,389 1,304 11,050
Total 10,510 3,389 1,509 12,391
Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 note 12 ACCOUNTS PAYABLE and ACCRUALS
Trade creditors 8,127 6,439 6,859 7,467 6,036 6,012 Other creditors 14,171 13,650 9,850 13,231 10,886 10,275 Related parties 390 3,603 2,721 390 Accruals 9,543 9,638 10,929 9,421 9,488 10,929
Total accounts payable and accruals 31,841 29,727 28,028 33,722 29,131 27,606
Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 note 13 FUNDS RECEIVED IN ADVANCE
Research funding 24,421 22,343 17,947 24,421 22,343 17,947 Student fees 4,836 4,214 5,295 3,846 3,306 4,093 Other 1,841 1,441 1,575 1,781 1,400 1,575
Total funds received in advance 31,098 27,998 24,817 30,048 27,049 23,615
84 Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 note 14 EMPLOYEE ENTITLEMENTS
Current portion of employee entitlements:
Annual leave 21,445 20,130 21,258 19,950 Long service leave 924 797 924 797 Retirement gratuities 6,952 6,016 6,952 6,016 Staff intellectual property entitlements 1,066 1,012 1,066 1,012 Other entitlements 37 6 6
Total current portion 30,424 33,931 27,961 30,200 33,751 27,781
Non-current portion of the employee entitlements:
Long service leave 747 702 747 702 Retirement gratuities 19,551 20,458 19,551 20,458 Sick leave 1,392 1,249 1,392 1,249
Total non-current portion 21,690 23,539 22,409 21,690 23,539 22,409
Calculation of sick leave, long service leave and retirement gratuities An actuarial assessment of the accrued sick leave, long service leave and retirement gratuities of the University of Otago in respect of current employees was carried out as at 31 December 2007. A range of discount rates from 5.76% to 7.33% and a salary growth rate of 2.75% have been applied in the calculation of the non-current sick leave, long service leave and retirement gratuity entitlements. Discount rates are those assessed as the interest rates (before tax) attaching to Government Stock with terms to maturity that match, as closely as possible, the terms of the related liabilities. The salary growth rate is based on the projected long term annual rate of inflation.
Sick leave for University of Otago Holdings Limited Group has not been accrued as it is immaterial.
Consolidated University
This Year Last Year This Year Last Year $000 $000 $000 $000
Employer contributions to multi-employer 2,202 2,046 2,202 2,046 defined-benefit plans
85 university of otago annual report 2007
Consolidated University
This Year Budget Last Year This Year Budget Last Year $000 $000 $000 $000 $000 $000 note 15 LOANS AND LEASES
Non-current loans and leases 250 322 500 250 250 500
Total loans and leases 250 322 500 250 250 500
Funds have been advanced to the University from the Dunedin City Council which the University has then on-advanced to the University of Otago Foundation Trust to fund various projects. The loan is interest free and will be progressively forgiven if certain conditions are met.
Maturity analysis This Year Last Year 1-5 years 250 500
Total loans 250 500
The weighted average effective interest rate of all loans is 0%.
The carrying amount (fair value) of the above loans has been estimated to be the face value of the loans.
Consolidated Parent
Actual 2007 Actual 2006 Actual 2007 Actual 2006 $000 $000 $000 $000 note 16 EQUITY General reserve
As at 1 January 599,664 553,675 392,109 366,654
Surplus for year 32,119 37,221 26,351 16,650
Net assets arising from the merger with the 56,806 56,806 Dunedin College of Education Minority interest (37) Capital contribution from Government to 9,691 7,605 9,691 7,605 University of Otago Foundation Trust Leading Thinkers Initiative
Capital contribution from Government to 1,200 1,200 University of Otago/Dunedin College of Education merger
As at 31 December 698,280 599,664 484,957 392,109
86 Consolidated Parent
Actual 2007 Actual 2006 Actual 2007 Actual 2006 $000 $000 $000 $000
Property revaluation reserve As at 1 January 557,592 409,049 557,592 409,049
Revaluation 148,543 148,543
As at 31 December 557,592 557,592 557,592 557,592
Total equity 1,255,872 1,157,256 1,042,549 949,701
note 17 FINANCIAL INSTRUMENTS
The Group is party to financial instrument arrangements as part of its everyday operations. The main risks arising from the University and Group’s financial instruments are foreign exchange risk and credit risk.
To manage and limit the effects of those risks, the University Council has approved policy guidelines and authorised the use of various financial instruments. Compliance is monitored monthly and deviations from the target are reported to the foreign exchange committee. The financial instruments being utilised at balance date are outlined below.
The principal or contract amounts of derivative financial instruments outstanding at balance date are as follows:
Group University Fair Fair Value Value $000 $000
Forward foreign exchange contracts 8,789 8,789
Foreign exchange risk The Group has transactional currency exposures arising from sales and purchases in currencies other than NZ dollars. The University regularly monitors its exposure to overseas currency fluctuations. Wherever possible, the University transacts in NZ dollars, including the setting of fees for international students. The University purchases library items and scientific equipment from overseas, giving rise to and exposure to currency fluctuations, but in the case of ordering major items of equipment (over $50,000) policy requires the University to hedge the purchase when the committed payment date is known. Hedge accounting is not applied. The Group has a foreign exchange risk management committee which oversees this risk by applying the foreign exchange policy which is approved by Council.
At 31 December 2007, the University held the following amounts of foreign currency within its current and call deposit accounts.
This Year Last Year $000 $000 Currency US dollars 783 35 Australian dollars 73 2 EURO 680 Great British pounds 1
In January, the majority of the above funds were used to pay overseas creditors.
87 university of otago annual report 2007
Sensitivity analysis At 31 December 2007, if the NZ dollar had weakened/strengthened by 5% against the US dollar, Australian dollar, Euro or GB pound, with all other variables held constant, the surplus/deficit for the year would have been $110,694 (2006: $2,463) higher/lower. This movement is attributable to the foreign exchange gains on translation of foreign denominated bank accounts held.
At 31 December 2007, if the NZ dollar had weakened/strengthened by 5% against the Australian dollar, with all other variables held constant, the surplus/deficit for the year would have been $820,396 (2006: $726,942) higher/lower. The movement is attributable to the foreign exchange gains on translation of foreign equities held in the Group.
Credit risk Credit risk is the risk that a third party will default on its obligation to the Group, causing the Group to incur a loss.
In the normal course of business, credit risk arises from debtors, deposits with banks and derivative financial instruments assests.
Trade receivables constitute a minimal concentration of credit risk due to the large number of customers included in the Group’s customer base.
The Group consults with professional investment advisors and has an investment policy which is regularly reviewed. The Group places its investments with institutions that have a high credit rating. It also reduces its exposure to risk by limiting the amount that can be invested in any one institution. The Group believes that this policy reduces the risk of any loss which could arise from its investment activities.
Short-term despsits are only placed with the main New Zealand trading banks approved under the investment policy. Not more than one third of all cash deposits can be held with any one approved bank.
Sensitivity analysis At 31 December 2007, if interest rates on investements had fluctuated by plus or minus 0.5%, the surplus for the year would have been $900,130 (2006: $649,050) higher/lower. This movement is attributable to interest-earning deposits held.
Interest rate risk The Group has minimal exposure to interest rate risk from loans.
The loan from the Dunedin City Council is repayable upon demand. Interest is only payable if requested within 10 days at the end of each quarter. This has not been requested and is not expected to be requested in the future.
Price risk Price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices. The University and Group is exposed to equity security prices on its equity investment. This price risk arised due to market movements in listed securities. The University holds listed equity instruments which are publicly traded and included in the NZX50 equity index. If the NZX50 index at 31 December 2007 had fluctuated by plus or minus 5% and equity instruments moved proportionately, the effect would have been to increase/decrease the fair value by $2,038,267.
88 note 18 CHANGES IN ACCOUNTING ESTIMATES
During the financial year the University reviewed its estimate of useful life for periodical publications. These have previously been estimated to have a 10-year useful life. The University now believes that a five-year useful life is a more appropriate estimate. The effect on the current year is to reduce the University’s fixed assets by $13.389 million and the University surplus by the same amount.
The future effect of this change is considered to be immaterial on the University.
note 19 RARE BOOKS AND SPECIAL LIBRARY COLLECTIONS
The University holds a number of gifted collections of books, manuscripts and artworks within the Central, Medical and Dental Libraries. The collections were valued at 31 December 1994, based on net current value, by expert University staff following the generally-accepted methodology employed by the Alexander Turnbull Library. The total valuation of the Rare Books and Special Collections is $9.310 million (2006 $9.101 million). Additions at cost in 2007 were $0.209 million (2006 $0.074 million) (see Note 10).
note 20 HOCKEN COLLECTIONS
This Year Last Year $000 $000
Opening balance 106,126 103,508 Donated Hocken additions 1,026 1,024 Transfers from University general collection 1,594
107,152 106,126
being: Assets held in Trust 104,887 104,065 Assets owned by the University 2,265 2,061
107,152 106,126
The University holds in trust a national archival collection of books and artworks known as the Hocken Collections. Items included in the collections are acquired by gift, bequest and purchase. Items are also accepted on deposit where ownership is retained by the depositor.
In addition to the items held in trust, items purchased by the University are housed at the Hocken Library. In prior years these assets have been accounted for as part of the University’s library collections. However, in 2006 these were reclassified as Hocken Collections assets.
In 2006 the Hocken Collections was valued by Peter Webb Galleries Limited and, as a result, the book value of the assets was increased by $16.130 million (comprising assets held in trust $15.841 million and University-owned items $289,000).
The University has included the valuation of the owned and deposited items in the total above as it believes that the Hocken Library is in-substance the owner of all items in the collection. The total collections includes deposited items valued at $23.399 million (2006 $23.167 million).
89 university of otago annual report 2007
note 21 COSTING OF OUTPUTS
Definitions The University’s outputs as defined by University Council are:
~ Teaching, Learning and Assessment ~ Research (includes Postgraduate Teaching) ~ Community Service
Teaching is defined as the transfer of knowledge (to students), learning is the acquisition of knowledge (by students), and assessment the means by which this acquisition is tested. A key characteristic of University teaching is the fact that it is delivered by staff active in research, and it is thus directly informed by research and scholarship. This section of the Statement of Service Performance considers only that teaching delivered to formally enrolled students. This teaching is normally delivered as a self-contained course counting towards a degree, diploma or certificate qualification, and may include teaching delivered by way of lecture, laboratory, tutorial, fieldwork, self-study and electronic means.
Research is defined as the generation of knowledge. Research may take many forms across different disciplines, but common features are a systematic and disciplined methodology and a commitment to the publication of outcomes and peer review. Research may be funded through competitively awarded grants - internal or external - or as part of the general activities of an academic staff member.
Postgraduate Teaching is advanced teaching in which students receive instruction in research methodology, training in the use of research techniques, and gain experience in undertaking original research.
Community Service is defined as the transfer and application of knowledge for the benefit of the wider community, and is closely linked to the University’s recognised role as a critic and conscience of society. It includes the delivery of continuing education courses to members of the community, service on Government and other public sector boards and advisory groups, presentations to non-University groups, involvement in community issues and projects, and staff comment in the media on areas of professional expertise. It also includes service to the wider academic community through service in professional organisations and on the editorial boards of publications.
Methodology The costing model adopted to calculate the value of each output uses the following methodology:
~ The University’s gross costs less internal recoveries have been allocated to the outputs to provide the total costs of outputs for each teaching and research division. Wherever possible, costs are attributed directly to the relevant output. Costs not attributed directly within the teaching and research divisions have been allocated to the outputs based on the estimated time spent on each activity within the output by each teaching department.
~ The estimated staff time spent on teaching, research and community service is based on the results of questionnaires completed by all academic departments.
~ The costs of the service divisions are charged direct to the outputs, wherever possible, on the basis of userpays. The balance of costs not charged in this manner are allocated to the teaching and research divisions (see Note 22) and then allocated to the outputs within each of these divisions. This is completed using the net cost of services.
90 note 22 COST DRIVERS
Where possible, the full costs of services provided by units in the service divisions are charged direct to users and their outputs on the basis of userpays. The balance of costs not charged in this manner are allocated to the outputs of the University (see Note 21) using the following cost drivers:
Equivalent full-time students: Used for Student Services (including Careers Office, Student Health and Counselling, Recreation Services, Disabilities Office, Union Student Services), Teaching Facilities, ITS Helpdesk, Student Administration, Student Finance Services, Vice-Chancellor’s Office and the Planning, Support and Funding Office.
Staff appointments and terminations: Used for Human Resources Client Services.
Full-time equivalent staff: Used for Human Resources Directorate, Professional Development and Equity, and Health and Safety.
Academic full-time equivalent staff: Used for Deputy Vice-Chancellor – Research Office.
Staff numbers (head count): Used for Academic Division including: Higher Education Development Centre, Academic Committees, Quality Advancement and Human Resources Management Information System.
Space in square metres: Used for Property Services including: Contracting, Project Development and Design, Operations, Technical Services and the Property Management Unit.
Cost of services expenditure: Used for Financial Services including: Financial Accounting, Treasury Services, Financial Systems and Data Management, the Procurement Office and Projects and Asset Management.
90% equivalent full-time students Used for Marketing and Communications (including Marketing Services, and 10% equally to teaching and Alumni, Schools Liaison, Communications, Wellington Centre and research divisions: Auckland Campus), Internal Audit, Corporate and Secretary to Council.
65% equivalent full-time students and 35% Used for Information Technology Services (including Computing equally to teaching and research divisions: Services, User Services, IT Policy, Administrative Technology Services, Helpdesk, Technical Services, and e-Learning Support), Risk Management Committee, Library, Operations Divisional Office and University Press.
Mäori students (head count): Used for Mäori Centre.
Pacific Islands students (head count): Used for Pacific Islands Centre.
2/3 international students and 1/3 equally to teaching and research divisions: Used for International Office.
14% commercial activity income and 86% externally-funded research grants: Used for Research and Enterprise Office.
91 university of otago annual report 2007
note 23 RELATED PARTY INFORMATION
Crown /Government The Government influences the role of the University and Group as well as being a major source of revenue. While the University and Group enters into numerous transactions with Government departments and other Crown agencies, they are on an arm’s length basis and, where those parties are acting in the course of their normal dealings, are not considered to be related party transactions.
Inter-Group The University has executed transactions with University of Otago Holdings Limited (UOHL). These consist of loans and advances which are interest-free, except for a short-term advance for which interest is payable at the University’s borrowing rate plus 1% (interest received in 2007 $103,000 (2006: $205,000)), and payments received for accounting and secretarial services ($25,000 in 2007 (2006: $25,000)). UOHL also has a current account with the University ($1.931 million credit in 2007 (2006: $8,000 debit)), which is interest-free. The University wrote down a term loan to UOHL by $166,000 (2006: $879,000), as it was agreed the loan is to match the value of Otago Innovation Limited’s (OIL) shareholdings in BLIS and PEBL. The University invested $1.320 million of equity into UOHL.
During the year the University entered into transactions with University of Otago Foundation Studies Limited (FSL), a fully-owned subsidiary of University of Otago Holdings Limited. The transactions were made on commercial terms and conditions. The University incurred commissions expenditure to FSL of $98,368 (2006: $153,493) and was paid $387,000 for rent (2006:$400,722) and $38,000 (2006: $18,000) for administration services by FSL. FSL also owed the University $92,597 for creditors paid on its behalf (2006: $65,620).
During the year the University entered into transactions with University Union Limited (UUL), an associate company of University of Otago Holdings Limited. The transactions were made on commercial terms and conditions. The University paid UUL $324,000 for rent (2006: $312,320). University Union Limited paid the University of Otago ground rent of $99,320 (2006: $99,320).
The University entered into transactions with OIL, the total value of goods and services being $196,000 ( 2006: $384,000). All transactions were on commercial terms and conditions. OIL owed the University $2,000 (2006: $84,000) at balance date. The University forgave loans to OIL during the year of $348,000 (2006: $166,000).
During the year, the University entered into transactions with Immune Solutions Limited, a wholly-owned subsidiary of OIL. Immune Solutions Limited purchased goods and services from the University to the value of $33,000 (2006: $35,566). All transactions were on commercial terms and conditions. At balance date, the amount owing to the University was $3,000 (2006: $3,479).
During the year, the University entered into transactions with Iso-trace Limited, a wholly-owned subsidiary of OIL. Iso- trace Limited purchased goods and services from the University to the value of $86,000 (2006: $127,241). All transactions were on commercial terms and conditions. At balance date, the amount owing to the University was nil (2006: $15,794). The University purchased goods and services from Iso-trace Limited to the value of $875,000 (2006 $66,000). At balance date the amount owing to Iso-trace was $929,000 (2006 $9,000).
The University entered into transactions with its Trusts. These were made on commercial terms and conditions. The Trusts paid the University investment management fees of $416,718 (2006: $346,519) and distributed $4,579,171 to the University (2006: $4,657,583). The Trust has a nil current account with the University as at 31 December 2007 (2006: $554,913).
92 Key management personnel During the year key management personnel which includes the Chancellor, Councillors, Vice-Chancellor and other senior management personnel, as part of a normal customer relationship, may have been involved in minor transactions with the University of Otago on an arm’s length basis.
Close family members of Councillors and key management personnel are employed by the University. The terms and conditions of those arrangements are no more favourable than the University would have adopted if there were no relationship to Councillors or key management personnel.
Actual 2007 Actual 2006 $000 $000
Key management remuneration: Salary and short-term benefits 2,057 1,837 Superannuation 92 82
2,149 1,919
Related Parties Transactions
Councillors Year: 2007 Year: 2006
Purchased Purchased Owed by Owed to Purchased Purchased Owed by Owed to by University from University University by University from University University during year University at Balance at Balance during year University at Balance at Balance during year Date Date during year Date Date Value of Transactions (GST Inclusive) Value of Transactions (GST Inclusive)
Mr L J Brown University of Otago Holdings Ltd (C)* 230,000 8,000 Technology Holdings Ltd (C) 20,080 Mornington PHO Trust (C) 2,690 34,610 88 University of Otago Foundation Trust (C) 2,414,711 162,756 2,452,542 90,454 140,424 Contract Cultivation Ltd (D) Dunedin International Airport Ltd (D) 4,670 4,890 Awakino Station Ltd (D) Panmure Orchards Ltd (D) Otago Innovation Limited (C) 196,259 4,191 384,356 80,832 Otago Medical Research Foundation (Councillor) 159,036 33,626 180,732 23,612 Mercy Hospital Dunedin Ltd (D) 79,360 10,454 25,720 18,957 2,205 Deloitte (Consultant – Ceased 31/5/06) 5,412 296,489 3,375 E M Irvine Family Trust (Trustee) 32,560 Ashburn Hall Charitable Trust (Trustee) Iso-trace NZ Ltd (D) 58,480 27,874 1,292
Mr P W H Chin Gambling Commission (C) 12,364 6,182 11,239 Dunedin City Council (Mayor of Dunedin) ^ 2,374,990 82,158 43,517 14,821 2,451,507 27,521 9,279 15,242 Chinese Poll Tax Heritage Trust (Trustee) Alexander McMillan Trust (Trustee)
Dr M J Duxson Maori Point Vinyard Ltd (D) 210
Mr E W Ellison Kai Tahu Ki Otago Ltd (C) 270 Kai Tahu Ki Otago Charitable Trust (C) Weller Ltd (D) (S) 450 Erihana Farm Ltd (D) (S)
93 university of otago annual report 2007
Councillors Year: 2007 Year: 2006
Purchased Purchased Owed by Owed to Purchased Purchased Owed by Owed to by University from University University by University from University University during year University at Balance at Balance during year University at Balance at Balance during year Date Date during year Date Date Value of Transactions (GST Inclusive) Value of Transactions (GST Inclusive)
Tatawai Ancillary Trust (Trustee) Moana House (D) Methodist Putea Komiti (C) Kaitakawaenga to Otago Regional Council 4,167 88 Advisor to CEO – Department of Corrections 1,999 Repatriation Advisory Panel to Te Papa Tongarewa (C) 64,988 61,614 Pae-Arahi (Cultural Adviser) to ACC (Contract) QE II Trust (D) Ngäi Tahu Te Papa Steering Group (Advisory role) Ngäi Tahu Hazardous & New Organism Committee (C) Ministerial Advisory Committee - Sustainable Programme of Water Action (Member) Te Runanga o Otakou (Executive Member)
Mrs K E Grant Gallaway Cook Allan (Associate) 156,890 563 364 Sports Otago (Trustee) 100
Ms R L C Heal Planet Media Dunedin Ltd (D) 146,560 25,607 515 99,290 25,018 35,578 45 University Union Ltd (D) 341,960 85,765 27,934 351,360 19,647 Unipol Recreation Ltd (D) 40,784 914 365 Electronic Voting Systems Ltd (D) 30 Student Job Search – Otago (C) 82
Miss L P Isaacs Hills Radio Trust (Trustee) 1,000 Aoraki Polytech – Dunedin campus 556 - (Advisory Committee for Television & Radio)
Ms H M Z Lanham University Union Ltd (D) 341,960 85,765 27,934
Mr S J McLauchlan Highlanders Franchise Ltd (C) 330 1,200 Institute of Directors Otago & Southland (C) 310 NZ Sports Hall of Fame (C) 10 108 Dunedin Casinos Ltd ( D ) 1,003 Scenic Circle Hotels Ltd ( D ) 1,380 1,610 GSM Trustees Limited (D) (S) GSM Ltd (D) SJM Forest Ltd (D) (S) Wagstaff Holdings Limited (D) Stafford Equities Limited (D) (S) Dunedin International Airport Ltd ( D ) 4,670 4,890 AD Instruments PTY Limited (D) 267,470 84,692 2,988 1,251 Reliance Trading Co Ltd ( D ) Wavell Resources Ltd ( D ) Cargill Hotel 2002 Ltd (D) 13,890 12,040 507 University of Otago Foundation Studies Ltd (D) 98,368 1,124,544 92,597 153,493 418,722 153,493 65,620 Rosebery Holdings Ltd (D) (S) Dunedin Casino Management Ltd (D) (S) GSM McLauchlan & Co (Partner) Aurora Energy Ltd (D) Citibus Ltd (D) 26,130 City Forests Ltd (D) Delta Ltd (D) 113,430 Dunedin City Holdings (D) Otago Festival of the Arts (Trustee) University of Otago Rugby Club (Committee) 150 64,093 2,991
94 Councillors Year: 2007 Year: 2006
Purchased Purchased Owed by Owed to Purchased Purchased Owed by Owed to by University from University University by University from University University during year University at Balance at Balance during year University at Balance at Balance during year Date Date during year Date Date Value of Transactions (GST Inclusive) Value of Transactions (GST Inclusive)
Otago Community Hospice Trust (Trustee) 920 Otago Employers’ Assn (Trustee) 4,260 Scott Technology Ltd ( C ) 50 City Road Ltd (D)
Dr J D Palmer Russell McVeagh (Partner) 11,610 174 74,100 5,810
Mr M J M Sidey Forsyth Barr Ltd (Vice-Chairman) (S) 2,640 298 1,080 6,694 Salvation Army Advisory Board ( D ) 150 98 NZ Academy of Sport-South Island (D) 4,080 366,265 2,790 5,710 309,281 (2,149) Halberg Trust (Trustee) St Andrew’s College Foundation (Trustee)
Professor D C G Skegg Directors Cancer Research Trust (C ) University of Otago Holdings Ltd (D)* 230,000 8,000 University of Otago Foundation Studies Ltd (D) 98,368 1,124,544 92,597 153,493 418,722 153,493 65,620 Alexander Mc Millan Trust (Trustee) A.A.W. Jones Charitable Trust (Trustee) New Zealand Food Safety Academy (Member) 2,430 BSE Expert Science Panel ( C )
Ms K A Smith Association of Staff in Tertiary Education (Employee) 14,670
Ms K M Smith NZ Academy of Sport – South Island (CEO) 4,080 366,265 2,790 5,710 309,281 0 (2,149) Centre of Excellence Inc. (D) 100 225 International Federation of Netball Associations (D) Centre of Excellence Trust (Trustee) Skeggs Foundation (Trustee)
Mr Stephen J Sutton University Book Shop (Otago) (D) 251,310 48,911 6,265 108
Professor S J Todd NZTEC Consortia (AUT, Waikato, Victoria & Otago) - contract curriculum with Oman (D)
Mr J F Ward H & J Smith Holdings Limited (C) Simner Investments Limited (C) (S) Amtex Corporation Limited (C) (S) Southland Building Society (Deputy Chairman) Venture Southland (D) 805 Otago Cricket Association (D) 180 69 Carisbrook Trust (Trustee)
C = Chairman; D = Director; S = Shareholder
* The University wrote down a term loan to UOHL by $166,000 (2006: $879,000), as it was agreed the loan is to match the value of OIL’s shareholdings in BLIS and PEBL. The University invested a further $1,320,000 (2006: $325,000) into equity and converted $2,488,000 from debt to equity into UOHL.
^ Funds have been advanced to the University from the Dunedin City Council which the University has then on-advanced to the University of Otago Foundation Trust to fund various projects. Refer to Note 15. The University also has a contingent liability of $50,000 to the Dunedin City Council, refer to the Statement of Commitments and Contingencies.
95 university of otago annual report 2007
note 24 CHANGES IN CAPITAL FROM NZ GAAP TO NZ IFRS
The following tables show the changes in capital, resulting from the transition from previous NZ GAAP to NZ IFRS as at 1 January 2006 and 31 December 2006.
Consolidated University
Note Previous Effect on NZ IFRS Previous Effect on NZ IFRS NZ GAAP Transition NZ GAAP Transition to NZ IFRS to NZ IFRS 1-Jan-06 1-Jan-06 1-Jan-06 1-Jan-06 1-Jan-06 1-Jan-06 $000 $000 $000 $000 $000 $000
ASSETS
Current assets Cash and cash equivalents 26 (e) 1,779 13,984 15,763 914 5,463 6,377 Other financial assets 26 (e) 32,704 32,704 18,704 18,704 Bank short-term investments 26 (e) 38,984 (38,984) 16,463 (16,463) Accounts receivable and 26 (c) 27,154 2,455 29,609 25,592 25,592 prepayments Inventory 724 724 721 721
Total current assets 68,641 10,159 78,800 43,690 7,704 51,394
Non-current assets Accounts receivable 26 (c) 7,234 7,234 Investments in associates 26 (f) 3,940 3,940 Other financial assets 26 (d) & 26 (f) 68,670 (8,851) 59,819 22,040 (7,704) 14,336 Property, plant and equipment 26 (a) 880,998 16,666 897,664 792,535 825 793,360 Intangible assets – internally- 26 (a) 1,630 1,630 1,630 1,630 generated Intangible assets – other 26 (a) 6,983 6,983 6,983 6,983
Total non-current assets 949,668 27,602 977,270 814,575 1,734 816,309
Total assets 1,018,309 37,761 1,056,070 858,265 9,438 867,703
96 Consolidated University
Note Previous Effect on NZ IFRS Previous Effect on NZ IFRS NZ GAAP Transition NZ GAAP Transition to NZ IFRS to NZ IFRS 1-Jan-06 1-Jan-06 1-Jan-06 1-Jan-06 1-Jan-06 1-Jan-06 $000 $000 $000 $000 $000 $000 LIABILITIES
Current liabilities Accounts payable and accruals 27,430 27,430 27,134 27,134 Funds received in advance 18,774 18,774 17,912 17,912 Loans repayable within one year Employee entitlements 27,093 27,093 26,905 26,905
Total current liabilities 73,297 73,297 71,951 71,951
Non-current liabilities Employee entitlements 20,049 20,049 20,049 20,049 Loans and leases 26 (i) 7,704 (7,704) 7,704 (7,704) Bank loan
Total non-current liabilities 27,753 (7,704) 20,049 27,753 (7,704) 20,049
CAPITAL
General reserve 26 (b) & 26 (i) 508,210 45,465 553,675 349,512 17,142 366,654 Property revaluation reserve 26 (b) & 26 (i) 409,049 409,049 409,049 409,049
Total capital 917,259 45,465 962,724 758,561 17,142 775,703
Total liabilities and capital 1,018,309 37,761 1,056,070 858,265 9,438 867,703
97 university of otago annual report 2007
Previous Effect on NZ IFRS Previous Effect on NZ IFRS NZ GAAP Transition NZ GAAP Transition to NZ IFRS to NZ IFRS 31-Dec-06 31-Dec-06 31-Dec-06 31-Dec-06 31-Dec-06 31-Dec-06 $000 $000 $000 $000 $000 $000
ASSETS
Current assets Cash and cash equivalents 26 (e) 5,649 12,689 18,338 8,267 8,267 Other financial assets 26 (e) 27,000 27,000 29,546 29,546 Other short-term investments 26 (e) 30,689 (30,689) 19,267 (19,267) Accounts receivable and 26 (c) 27,844 3,535 31,379 26,907 (186) 26,721 prepayments Inventory 686 686 686 686
Total current assets 64,868 12,535 77,403 46,860 18,360 65,220
Non-current assets Accounts receivable 26 (c) 6,726 6,726 Investments in associates 26 (f) 4,421 4,421 Other financial assets 26 (d) & 26 (f) 96,786 (4,436) 92,350 29,902 (18,360) 11,542 Property, plant and equipment 26 (a) 1,080,440 (10,510) 1,069,930 975,219 (10,510) 964,709 Intangible assets – internally- 26 (a) 1,546 1,546 1,546 1,546 generated Intangible assets - externally- 26 (a) 8,964 8,964 8,964 8,964 generated
Total non-current assets 1,177,226 6,711 1,183,937 1,005,121 (18,360) 986,761
Total assets 1,242,094 19,246 1,261,340 1,051,981 1,051,981
98 Consolidated University
Previous Effect on NZ IFRS Previous Effect on NZ IFRS NZ GAAP Transition NZ GAAP Transition to NZ IFRS to NZ IFRS 31-Dec-06 31-Dec-06 31-Dec-06 31-Dec-06 31-Dec-06 31-Dec-06 $000 $000 $000 $000 $000 $000
LIABILITIES
Current liabilities Bank overdraft 369 369 369 369 Accounts payable and accruals 28,028 28,028 27,606 27,606 Funds received in advance 24,817 24,817 23,615 23,615 Loans repayable within one year Employee entitlements 27,961 27,961 27,781 27,781
Total current liabilities 81,175 81,175 79,371 79,371
Non-current liabilities Employee entitlements 22,409 22,409 22,409 22,409 Loans and leases 26 (i) 17,009 (16,509) 500 17,009 (16,509) 500 Bank loan
Total non-current liabilities 39,418 (16,509) 22,909 39,418 (16,509) 22,909
CAPITAL
General reserve 26 (b) & 26 (i) 538,630 61,034 599,664 366,162 25,947 392,109 Property revaluation reserve 26 (b) & 26 (i) 582,871 (25,279) 557,592 567,030 (9,438) 557,592
Total capital 1,121,501 35,755 1,157,256 933,192 16,509 949,701
Total liabilities and capital 1,242,094 19,246 1,261,340 1,051,981 1,051,981
99 university of otago annual report 2007
note 25 CHANGES IN SURPLUS FROM NZ GAAP TO NZ IFRS
The following tables show the changes in surplus, resulting from the transition from previous NZ GAAP to NZ IFRS as at 31 December 2006.
Consolidated University
Previous Effect on NZ IFRS Previous Effect on NZ IFRS NZ GAAP Transition NZ GAAP Transition to NZ IFRS to NZ IFRS 31-Dec-06 31-Dec-06 31-Dec-06 31-Dec-06 31-Dec-06 31-Dec-06 $000 $000 $000 $000 $000 $000
INCOME
Government grants 174,292 174,292 173,448 173,448 Domestic tuition fees 65,963 65,963 65,658 65,658 International tuition fees 34,352 34,352 31,689 31,689 Investment income 26 (d) 13,778 4,193 17,971 5,052 5,052 Externally-funded research 67,509 67,509 67,202 67,202 Distributions from Trust funds 4,657 4,657 Consulting and commercial income 60,486 60,486 59,780 59,780 Sale of intellectual property 302 302 50 50 Trust donations 26 (c) 11,589 2,571 14,160 Other income 2,187 2,187 2,127 2,127
Total income 430,458 6,764 437,222 409,663 409,663
EXPENDITURE
Salaries – academic 131,413 131,413 129,094 129,094 Salaries – general 93,967 93,967 91,863 91,863 Staff-related costs 12,456 12,456 12,401 12,401 Consumables and general 73,202 73,202 70,986 70,986 Depreciation 39,506 39,506 39,213 39,213 Occupancy costs 33,997 33,997 33,996 33,996 Scholarships 15,460 15,460 15,460 15,460
Total expenditure 400,001 400,001 393,013 393,013
Net surplus 30,457 6,764 37,221 16,650 16,650
100 note 26 EXPLANATORY NOTES – NZ IFRS TRANSITION
(a) Intangible assets Computer software Computer software was classified as part of property, plant and equipment under previous NZ GAAP. The net book value of computer software reclassified as an intangible asset on transition to NZ IFRS is $8.613 million and $10.510 million at 31 December 2006.
(b) Deemed cost The University of Otago has applied the deemed cost exemption that is available under NZ IFRS1, for the Hocken Library Collections ($16.130 million) and artworks ($9.149 million). This exemption allows the University of Otago to measure an item of property, plant and equipment at its fair value, and use that fair value as its deemed cost on transition to NZ IFRS. The effect of this change is to revalue the Hocken Library Collections at 1 January 2006 and University artworks at 1 January 2006. Both valuations were undertaken by an independent registered valuer.
(c) Pledged donations Pledged donations are recognised in the Statement of Financial Performance as “Trust donations” when the pledge agreement is signed. Pledged donations are recorded at their face value.
(d) Trust investments Investments held by controlled Trusts are valued at market value. These were previously valued at cost.
(e) Cash and cash equivalents and bank short-term investments Bank short-term deposits were reclassified into cash and cash equivalents and other financial assets on transition.
(f) Investments in associates Investments in associates are required to be shown separately under IFRS. These were $3.940 million on transition and $4.421 million at 31 December 2007.
(g) Other Other changes on transition were due to reclassifications and are not considered material.
(h) Statement of cash flows There were no material adjustments to the statement of cash flows resulting from the introduction of IFRS.
(i) Equity Prior to the conversion to NZ IFRS the funding received from the Crown with respect to the Leading Thinkers Initiative and College of Education merger was treated as a liability until such times as conditions were met as per the contractual agreements. Once these conditions had been met, the liability contributions were converted to contributions from the Crown. Sector-wide technical guidance has been received that indicates that under NZ IFRS this type of liability should be treated as a contribution from the Crown on receipt rather than as a liability. As such Loans and Leases have been reduced by $26.2 million for the Leading Thinkers Initiative and College of Education merger. Equity has been increased by $26.2 million for the increase in Crown contributions.
101 university of otago annual report 2007
note 27 PLEDGED DONATIONS
Donations are recognised upon the pledge being made and the contract documents being signed. The fair value will be the face value. All of the pledges have been made and the University expects that these pledges will be honoured.
Total pledged donations outstanding long term are $6.715 million. The net present value of these pledges at an interest rate of 6.95% is $5.363 million. This Year $000
Analysis of pledged donations
Less than one year 2,445 More than one year but less than five years 5,775 Greater than five years 940
9,160
note 28 CAPITAL MANAGEMENT
The University’s capital is its equity, which comprises general funds and revaluation reserves. Equity is represented by net assets.
The University manages its revenues, expenses, assets, liabilities and general financial dealings prudently. The University’s equity is largely managed as a by-product of managing income, expenses, assets and liabilities.
The objective of managing the University’s equity is to ensure the University effectively achieves its goals and objectives for which it has been established, whilst remaining a going concern.
note 29 EVENTS AFTER THE BALANCE SHEET DATE
There were no significant events after balance date.
102 AUDIT REPORT
TO THE READERS OF UNIVERSITY OF OTAGO AND GROUP’S FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2007 The Auditor-General is the auditor of University of Otago (the University) and Group. The Auditor-General has appointed me, Julian Tan, using the staff and resources of Audit New Zealand to carry out the audit of the financial statements and statement of service performance of the University and Group, on his behalf, for the year ended 31 December 2007.
Unqualified Opinion In our opinion: • the financial statements of the University and Group on pages 25, 31, 35, and 58 to 102: • comply with generally accepted accounting practice in New Zealand; and • fairly reflect: ~ the University and Group’s financial position as at 31 December 2007; and ~ the results of their operations and cash flows for the year ended on that date. • the performance information of the University and Group on pages 36 to 48 fairly reflects the service performance achievements measured against the performance targets adopted for the year ended on that date. The audit was completed on April 30 2008, and is the date at which our opinion is expressed. The basis of our opinion, which draws attention to the budget figures being from an updated budget, is explained below. In addition, we outline the responsibilities of the Council and the Auditor, and explain our independence.
Basis of Opinion We carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards. We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance did not have material misstatements whether caused by fraud or error. Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion. Audit procedures generally include: • determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data; • verifying samples of transactions and account balances; • performing analyses to identify anomalies in the reported data; • reviewing significant estimates and judgements made by the Council; • confirming year-end balances; • determining whether accounting policies are appropriate and consistently applied; and • determining whether all financial statement disclosures are adequate. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance.
103 university of otago annual report 2007
We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.
Budget Figures As outlined in note 2 on page 60, the budget figures included in the financial statements for the University and Group are from an updated budget approved by the Council in July 2007. This does not comply with section 154(3)(c) of the Crown Entities Act 2004, which requires the University and Group’s financial statements to include the forecast financial statements prepared at the start of the financial year.
Responsibilities of the Council and the Auditor The Council is responsible for preparing financial statements in accordance with generally accepted accounting practice in New Zealand. Those financial statements must fairly reflect the financial position of the University and Group as at 31 December 2007. They must also fairly reflect the results of their operations and cash flows for the year ended on that date. The Council is also responsible for preparing performance information that fairly reflects the service performance achievements for the year ended 31 December 2007. The Council’s responsibilities arise from the Education Act 1989 and the Crown Entities Act 2004. We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.
Independence When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand. In addition to the audit, we have completed an audit of the Vice-Chancellor’s declaration on the Performance-Based Research Fund External Research Income and reported on the University’s compliance with the requirements of the United States Department of Education in respect of the Federal Family Education Loan Programme. These engagements are compatible with those independence requirements. Other than the audit and these assignments, we have no relationship with or interests in the University or any of its subsidiaries.
Julian Tan Audit New Zealand On behalf of the Auditor-General Christchurch, New Zealand
matters relating to the electronic presentation of the audited financial statements
This audit report relates to the financial statements of the University of Otago and Group for the year ended 31 December 2007 included on the University’s web site. The University’s Council is responsible for the maintenance and integrity of the University’s web site. We have not been engaged to report on the integrity of the University’s web site. We accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the web site.
The audit report refers only to the financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and related audit report dated 30 April 2008 to confirm the information included in the audited financial statements presented on this web site.
Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
104 SUMMARY FACTS AND FIGURES The Summary Facts and Figures data includes the impact of the merger with the Dunedin College of Education. Caution should therefore be advised when analysing changes between 2007 and previous years.
student enrolments 2007 2006 2005 2004 2003
Equivalent Full-time Students (EFTS) Commerce 3,406 3,568 3,636 3,712 3,460 Health Sciences 5,122 4,690 4,618 4,246 4,059 Humanities 5,481 4,918 5,076 5,111 4,917 Sciences 4,085 4,241 4,371 4,344 4,196 Other University* 64 32 38 36 4
Subtotal 18,158 17,449 17,739 17,448 16632
Other Group EFTS** 129 131 91 94 134
Total EFTS 18,287 17,580 17,830 17,543 16,766
* Other University EFTS comprise continuing education EFTS not allocated to departments within the four academic divisions. ** Other Group EFTS comprise domestic EFTS enrolled in the Foundation Studies programme of the University subsidiary Foundation Studies Limited.
EFTS by Type (University Only) Domestic undergraduate 13,837 13,045 13,220 13,151 12,943 Domestic postgraduate 2,647 2,529 2,415 2,314 2,239 Total Domestic 16,484 15,574 15,635 15,465 15,182 International undergraduate 1,468 1,679 1,863 1,733 1,238 International postgraduate 206 196 241 250 212 Total International 1,674 1,875 2,104 1,983 1,450
Total EFTS 18,158 17,449 17,739 17,448 16,632
Enrolment by Qualification Type (Heads) Doctoral 1,074 935 829 755 723 Master’s 1,048 1,052 1,108 1,060 994 Bachelor’s honours 750 736 769 771 763 Bachelor’s ordinary 13,136 12,868 12,939 12,711 12,186 Postgraduate diplomas and certificates 1,435 1,507 1,378 1,353 1,345 Graduate diplomas and certificates 494 204 392 314 298 Undergraduate diplomas and certificates 265 216 239 318 344 Intermediates 1,084 965 991 1,003 909 Miscellaneous 1,246 1,235 1,326 1,291 1,186 Subdegree 133 135 86 98 96
Total Enrolments 20,665 19,853 20,057 19,674 18,844
105 university of otago annual report 2007
2007 2006 2005 2004 2003
Full-time & Part-time Students Full-time 14,481 13,936 14,055 13,937 13,235 Part-time 6,184 5,917 6,002 5,770 5,692
Total 20,665 19,853 20,057 19,707 18,927
Female & Male Students Female 11,886 11,154 11,314 11,019 10,561 Male 8,779 8,699 8,743 8,688 8,366
Total 20,665 19,853 20,057 19,707 18,927
First-year & Returning Students First-year 4,371 3,812 3,966 4,112 4,020 Returning 16,294 16,041 16,091 15,595 14,907
Total 20,665 19,853 20,057 19,707 18,927
Ethnicity of Students European/Pakeha 73.6% 73.4% 73.8% 75.6% 77.8% Mäori 7.4% 6.9% 6.6% 6.7% 6.9% Asian 16.8% 17.7% 17.2% 16.3% 14.4% Pacific Islanders 2.8% 2.8% 2.7% 2.6% 2.5% Other/unknown 7.0% 6.7% 6.5% 7.2% 6.4%
Note: Students are able to report affiliation to more than one ethnic category. As a result, the total number of responses for all ethnic groups is greater than the total number of students enrolled, and the sum of the ethnic percentages is greater than 100%.
Home Area of Students Dunedin 5,218 4,915 5,022 4,028 4,733 Otago/Southland 2,195 1,910 1,987 2,219 2,113 Remainder of South Island 3,295 3,101 3,130 3,109 2,911 North Island 7,293 7,146 7,029 7,224 6,609 Overseas (including NZ citizens overseas) 2,658 2,768 2,851 2,908 2,295 Unknown 6 13 38 219 266
Total 20,665 19,853 20,057 19,707 18,927
Note: The majority of NZ citizens overseas included (102 in 2007) listed their home area as Australia. Conversely, 242 of the 380 Australian citizens who enrolled in 2007 were normally resident in New Zealand prior to commencing University study, and so listed a New Zealand home area.
International Students Undergraduate 2,019 2,272 2,395 2,277 1,745 Postgraduate 527 387 325 327 273
Total 2,546 2,660 2,720 2,604 2,018
106 2007 2006 2005 2004 2003
International Students by Home Country USA 549 561 626 688 525 China 436 625 700 616 359 Malaysia 279 239 228 175 118 Germany 161 174 167 158 110 Japan 97 85 59 50 52 Korea (South) 89 82 74 50 40 Canada 79 73 83 79 62 Hong Kong 65 72 85 82 82 Saudi Arabia 60 59 42 37 39 United Kingdom 56 54 44 42 48 Singapore 54 53 48 39 38 Brunei 46 43 41 32 22 France 46 49 36 26 20 India 42 29 24 38 18 Thailand 39 43 45 44 45 Taiwan 30 34 30 28 27 Fiji 28 27 41 43 47 Samoa 23 20 16 22 22 Vietnam 23 19 18 17 11 Norway 21 24 30 58 48 Seychelles 20 24 30 28 23 Other 303 271 253 252 262
Total 2,546 2,660 2,720 2,604 2,018
Note: Australian,Tokelauan and Cook Islands’ students – whether resident in their home country or New Zealand prior to commencing study – are not counted as international students, and so are not included in the above figures.
Students’ Accommodation Status Own home (including renting) 3,231 2 ,95 0 3,035 2,935 2,594 At parents’ home 1,409 1, 282 1,284 1,259 1,187 College 3,012 3,022 2,874 2,892 2,821 Private board 330 287 310 283 330 Sharing (flatting) 11,456 11,067 11,332 10,986 10,569 Other 558 49 9 543 441 512 Unknown 669 74 3 679 780 914
Total 20,665 19,853 20,057 19,576 18,927
Home Area of First-year Students Dunedin 920 767 788 699 807 Otago/Southland 695 435 454 484 471 Remainder of South Island 803 644 712 710 666 North Island 1,672 1,647 1,583 1,647 1,602 Overseas (including NZ citizens overseas) 281 319 429 572 411 Unknown 0 0 0 0 63
Total 4,371 3,812 3,966 4,112 4,020
Note: The majority of first-year NZ citizens overseas (19 in 2007) listed their home area as Australia. Conversely, 46 of the 74 first-year Australian citizens who enrolled in 2007 were normally resident in New Zealand prior to commencing University study, and so listed a New Zealand home area.
107 university of otago annual report 2007
2007 2006 2005 2004 2003
Highest Entrance Qualification of First-year Students NCEA (Level 3) or equivalent* 2,750 2,417 2,252 0 0 University bursary/university scholarship 100 124 351 2,555 2,601 Higher School Certificate 0 0 0 190 202 University Entrance 142 66 69 80 83 Ad eundem entrance level 373 401 461 564 335 Ad eundem with credit 305 46 70 47 79 Ad eundem graduate 85 51 53 38 57 Ad eundem 8 8 22 30 7 Special admission 443 436 490 459 506 Provisional/ discretionary entrance 143 139 145 70 139 Unknown 22 124 53 79 11
Total 4,371 3,812 3,966 4,112 4,020
* Includes students who would have previously entered with A or B Bursary.
108 academic attainment 2007 2006 2005 2004 2003 number of graduates Commerce ~ undergraduate diplomas & certificates 0 2 2 5 0 ~ undergraduate degrees 752 821 715 669 641 ~ postgraduate diplomas & certificates 37 42 66 39 47 ~ postgraduate degrees 65 63 82 54 62
Total Commerce Graduates 854 928 865 767 750
Health Sciences ~ undergraduate diplomas & certificates 32 33 25 41 30 ~ undergraduate degrees 604 609 550 526 511 ~ postgraduate diplomas & certificates 517 469 460 440 444 ~ postgraduate degrees 130 111 105 98 61
Total Health Sciences Graduates 1,283 1,222 1,140 1,104 1,046
Humanities ~ undergraduate diplomas & certificates 151 23 20 19 18 ~ undergraduate degrees 1,196 1,037 973 901 893 ~ postgraduate diplomas & certificates 69 86 115 110 84 ~ postgraduate degrees 96 108 81 80 151
Total Humanities Graduates 1,512 1,254 1,189 1,110 1,146
Sciences ~ undergraduate diplomas & certificates 10 18 21 20 26 ~ undergraduate degrees 1,041 1,014 864 827 799 ~ postgraduate diplomas & certificates 162 140 123 130 122 ~ postgraduate degrees 134 135 148 130 99
Total Sciences Graduates 1,347 1,307 1,156 1,107 1,046
Interdivisional (Diploma for Graduates) ~ undergraduate diplomas & certificates 132 173 184 199 199 ~ postgraduate diplomas & certificates 2 0 0 0 0
Total Interdivisional Graduates 134 173 184 199 199
Total University ~ undergraduate diplomas & certificates 325 249 252 471 273 ~ undergraduate degrees 3,593 3,481 3,102 2,923 2,844 ~ postgraduate diplomas & certificates 787 737 764 532 697 ~ postgraduate degrees 425 417 416 362 373
Grand Total University Graduates 5,130 4,884 4,534 4,288 4,187
109 university of otago annual report 2007
2007 2006 2005 2004 2003
Degrees, Diplomas and Certificates Completed per 100 EFTS Enrolled Commerce 25.1 26.0 23.8 20.7 21.7 Health Sciences 25.0 26.1 24.7 26.0 25.8 Humanities 27.6 25.5 23.4 21.7 23.3 Sciences 33.0 30.8 26.5 25.5 24.9
Total 27.6 27.8 25.4 24.4 25.0
Examination Pass, Progression and Attrition Rates Commerce Entered 21,297 22,593 23,321 23,407 23,165 Sat 21,064 22,168 23,004 22,791 22,760 Passed 18,093 18,986 19,713 19,472 19,191 Pass rate 85.9% 85.7% 85.7% 85.4% 84.3% Progression rate 85.0% 84.0% 84.5% 83.2% 82.8% Attrition rate 1.1% 1.9% 1.4% 2.6% 1.7%
Health Sciences Entered 23,697 23,175 19,794 20,544 16,629 Sat 23,520 22,915 19,591 20,352 16,539 Passed 21,298 20,851 18,025 18,642 15,379 Pass rate 90.6% 91.0% 92.0% 91.6% 93.0% Progression rate 89.9% 90.0% 91.1% 90.7% 92.5% Attrition rate 0.7% 1.1% 1.0% 0.9% 0.5%
Humanities Entered 35,972 28,687 29,680 29,144 28,247 Sat 35,898 28,583 29,578 28,962 28,096 Passed 31,950 25,253 25,846 25,351 24,324 Pass rate 89.0% 88.4% 87.4% 87.5% 86.6% Progression rate 88.8% 88.0% 87.1% 87.0% 86.1% Attrition rate 0.2% 0.4% 0.3% 0.6% 0.5%
Sciences Entered 22,077 23,404 25,743 25,447 26,194 Sat 21,807 22,691 25,203 24,613 25,323 Passed 18,845 19,710 21,674 21,236 22,367 Pass rate 86.4% 86.9% 86.0% 83.9% 88.3% Progression rate 85.4% 84.2% 84.2% 80.9% 85.4% Attrition rate 1.2% 3.1% 2.1% 3.6% 3.3%
Other (Foundation Studies) Entered 706 779 555 553 490 Sat 510 556 454 365 411 Passed 354 382 350 297 326 Pass rate 69.4% 68.7% 77.1% 81.4% 79.3% Progression rate 50.1% 49.0% 63.1% 53.7% 66.5% Attrition rate 27.8% 28.6% 18.2% 34.0% 16.1%
110 2007 2006 2005 2004 2003
Total Entered 103,749 97,000 99,093 99,095 94,725 Sat 102,799 95,268 97830 97,083 93,129 Passed 90,540 83,798 85,608 84,998 81,587 Pass rate 88.1% 88.0% 87.5% 87.6% 87.6% Progression rate 87.3% 86.4% 86.4% 85.8% 86.1% Attrition rate 0.9% 1.8% 1.3% 2.0% 1.7%
Destination of Graduates Employment full-time 67.7% 68.0% 65.1% 61.9% 64.1% Employment part-time 16.2% 15.7% 15.4% 17.6% 17.2% Study full-time 21.2% 21.8% 22.3% 26.8% 22.8% Study part-time 9.8% 9.7% 9.6% 9.5% 8.7% Seeking employment 14.0% 14.5% 15.6% 23.6% 27.1%
Note: Graduate destination data is based on a standard annual survey carried out by all universities. Respondents may select more than one status, so the total response may exceed 100%.
STUDENT SUPPORT SERVICES
Financial Advice Service Number using service or applying to: Student Assistance Fund 60 38 53 51 112 Number of Student Assistance Grants 55 34 46 35 61 Net value of Student Assistance Grants $24,975 $5,500 $5,744 $3,890 $9,376
Note: The increase in students accessing assistance grants in 2007 was due to the grandparenting of subsidised childcare arrangements for teacher education students at the College of Education.
Postgraduate Scholarships and Awards Scholarships and awards offered 248 223 165 179 180 Scholarships and awards accepted 206 183 130 151 149 Acceptance rate 83% 82% 79% 84% 83%
STAFF PROFILE Full-time Equivalent (FTE) Academic & Research-Only Staff Female Vice-Chancellor/senior academic managers 1 1 1 1 1 Professors 24 24 18 15 14 Readers/associate professors 26 18 15 14 12 Senior lecturers 145 133 113 108 107 Lecturers 114 107 109 110 99 Other teaching and teaching/research staff 98 118 126 115 117 Research-only staff 206 185 197 209 141
Total Females 614 586 579 573 490
111 university of otago annual report 2007
2007 2006 2005 2004 2003 Male Vice-Chancellor/senior academic managers 7 7 6 6 6 Professors 131 124 122 109 100 Readers/associate professors 95 91 86 85 81 Senior lecturers 222 241 235 242 241 Lecturers 122 122 122 119 115 Other teaching and teaching/research staff 70 74 102 107 123 Research-only staff 164 162 165 177 14
Total Males 811 821 838 843 815
Total FTE Academic & Research Staff 1,425 1,407 1,417 1,416 1,305
Full-time Equivalent (FTE) General Staff Female Senior managers 3 2 1 0 1 General services, student and community staff 922 763 810 843 739 Librarians and library assistants 105 89 92 106 104 Research support staff 174 146 162 113 143 Technicians 127 189 182 170 207
Total Females 1,331 1,189 1,247 1,232 1,194
Male Senior managers 13 12 10 12 5 General services, student and community staff 473 451 434 401 369 Librarians and library assistants 24 24 24 25 24 Research support staff 44 54 46 37 73 Technicians 143 113 128 136 146
Total Males 697 654 642 611 616
Total FTE General Staff 2,028 1,843 1,889 1,843 1,810
Total Staff 3,453 3,250 3,307 3,259 3,114
Student-Academic Staff Ratios Commerce 24.7 24.5 24.2 25.6 22.4 Health Sciences 10.1 10.5 11.1 10.2 9.9 Humanities 16.5 21.5 20.5 20.8 20.8 Sciences 15.3 16.2 16.5 14.9 14.6 Overall 14.6 16.1 16.4 15.9 15.3
112 2007 2006 2005 2004 2003
research activities (revised for previous years)
Research Outputs Produced Commerce 453 478 397 356 302 Health Sciences 2,265 2,536 2,405 2,074 1,656 Humanities 827 806 802 614 568 Sciences 1,171 1,118 1,026 928 749 Other 23 34 19 29 39
Less Adjustment for Multi-Authored Outputs 638 693 900 1,165 999
Net Publications 4,078 4,279 3,749 2,836 2,315
Note: Publications are shown in the year they are reported in the University’s Research Outputs Report. Actual date of publication or dissemination may differ. Figures for the current year are provisional, subject to final vetting. The adjustment for multi-authored outputs for 2007 is also estimated, subject to final vetting. The sum of divisional research outputs is greater than the net outputs as many are jointly authored.
land and building
Land (hectares) Land owned by the University 26.1 22.9 22.9 22.9 22.4 Land in Crown Title for the University 8.5 8.5 8.5 8.5 8.5 Endowment leasehold 25,585.3 25,585.3 25,585.3 25,585.3 25,585.3
Total Land Controlled by the University 25,619.9 25,616.7 25,616.7 25,616.7 25,616.2
Note: Endowment land is tied up in long-term pastoral leases.
University of Otago Net Assignable Space (floor space in square metres) Commerce 9,019 9,056 9,085 9,286 9,273 Health Sciences 64,485 61,243 61,203 60,948 59,633 Humanities 21,903 14,094 12,999 12,818 12,335 Sciences 37,627 37,626 37,633 37,640 37,703 Administration and other 49,387 42,936 42,671 18,072 18,907 Corporate 4,492 4,446 4,445 4,458 4,452 Information Services 16,320 12,065 12,088 36,819 36,981
Total Net Assignable Space 203,233 181,466 180,124 180,041 179,284
Note: University-owned flats and residential colleges total a further 54,000 sq m, Unipol and Clubs & Societies 4,270 sq m (approx).
113 university of otago annual report 2007
2007 2006 2005 2004 2003
LIBRARY
Library Collection Books (volumes) 975,752 958,607 920,264 894,303 867,067 Serials (volumes) 502,252 494,732 510,234 501,382 490,351 Microfilms 230,947 227,476 224,987 222,093 218,419 Non-book materials 1,196,244 1,190,299 1,183,331 1,171,637 1,124,754
Total 2,905,195 2,871,114 2,838,816 2,789,415 2,700,591
Print serials received 6,964 7,234 7,786 8,020 9,496 Electronic serials received 72,224 70,536 61,093 61,970 22,042
Total 79,188 77,770 68,879 69,990 31,538
User Services Loans ~ Books 386,308 302,719 304,741 309,257 287,044 ~ Periodicals 5,453 5,804 6,389 7,694 7,571 ~ Reserve collection 203,352 245,822 274,706 308,905 338,172 ~ Equipment 27,118 35,332 40,977 54,641 68,485
Total 622,231 589,677 626,813 680,497 701,272
Interloans ~ Items received 10,188 10,866 11,694 15,523 19,774 ~ Items supplied 11,078 12,181 13,099 16,217 18,773
Space Seating places available 3,533 3,403 3,379 3,389 3,389
INFORMATION TECHNOLOGY SERVICES
Volume of Computer and Telecommunications Traffic Off-campus network traffic (megabytes) 109,357,140 42,432,129 31,397,634 23,143,498 19,312,468
ITS Training and Support Services Enquiries received by ITS Helpdesk 47,889 39,870 37,454 36,579 36,680 Seating places in student computer laboratories 713 443 443 443 435
114 2007 2006 2005 2004 2003 key financial indicators
Value of Output per EFTS Teaching, learning and assessment $8,084 $11,067 $6,883 $7,337 $7,915 Research and postgraduate teaching $12,144 $8,103 $10,041 $8,875 $8,137 Community service $1,286 $1,354 $1,438 $1,054 $1,189
2007 2006 2005 2004 2003 Consolidated Consolidated Consolidated Consolidated Consolidated
Financial Indicators Current ratio 1.3 0.8 0.9 1.0 0.7 (Current assets: current liabilities) Liquid ratio 2.9 1.7 1.9 1.8 1.4 (Current assets which will result in cashflow: current liabilities which will result in cashflow) Level of debt 1.7% 3.5% 3.0% 1.7% 2.1% (Debt to equity) Increase in net assets 12% 22.3% 2.3% 33.7% 1.2% Return on total assets 2.3% 2.5% 2.1% 3.0% 0.9% Return on revenue 6.5% 7.1% 5.3% 7.8% 2.0% Revenue per EFTS n/a n/a n/a $23,478 $21,771 Expenditure per EFTS n/a n/a n/a $22,524 $20,814 Operating surplus per EFTS n/a n/a n/a $954 $957 Total assets per EFTS n/a n/a n/a $60,289 $48,383
115 university of otago annual report 2007
LIQUID RATIO 3.0 University 2.5 Consolidated
2.0
1.5
1.0
0.5
0 2003 2004 2005 2006 2007
Current assets which will result in cashflow: current liabilities which will result in cashflow
CURRENT RATIO 1.4 University 1.2 Consolidated 1.0 0.8
0.6 0.4
0.2
0 2003 2004 2005 2006 2007
Current assets: current liabilities
RETURN ON REVENUE 8 University 7 Consolidated 6 5 % 4 3 2 1 0 2003 2004 2005 2006 2007
Operating surplus as a % of total income
116 RETURN ON TOTAL ASSETS 3
2.5 University Consolidated 2
% 1.5
1
0.5
0 2003 2004 2005 2006 2007
Operating surplus as a % of total assets
LEVEL OF DEBT (DEBT TO EQUITY) 5.0 University 4.5 Consolidated 4.0 3.5 3.0 % 2.5 2.0 1.5 1.0 0.5 0 2003 2004 2005 2006 2007
Total debt as a % of net assets
REVENUE PER EFTS 30,000
25,000
20,000
$ 15,000
10,000
5,000
0 2003 2004 2005 2006 2007
Total University revenue divided by total University EFTS
117 university of otago annual report 2007
EXPENDITURE PER EFTS 26,000
24,000
22,000
$ 20,000
18,000
16,000
14,000 2003 2004 2005 2006 2007
Total University expenditure divided by total University EFTS
OPERATING SURPLUS PER EFTS 1,600
1,400
1,200 1,000
$ 800
600
400 200
0 2003 2004 2005 2006 2007
University operating surplus divided by total University EFTS
TOTAL ASSETS PER EFTS 70,000
60,000
50,000
40,000 $ 30,000
20,000
10,000 0 2003 2004 2005 2006 2007
Total University assets divided by total University EFTS
118 RETURN ON EQUITY 3.5 University 3.0 Consolidated 2.5 2.0 % 1.5
1.0
0.5
0 2003 2004 2005 2006 2007
Operating surplus as a % of total equity
TOTAL EFTS 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2003 2004 2005 2006 2007
Total domestic and international EFTS
119 university of otago annual report 2007
120 ANNUAL REPORT 2007