0 cover 24/5/05 3:54 PM Page 1 ANNUAL REPORT 2004 ANNUAL REPORT 2004 We are a leading New Zealand research university, with an ethos of problem solving and internationally recognised excellence. Composite Contents 1 MISSION STATEMENT 3 REPORT FROM THE CHANCELLOR 5 REPORT FROM THE VICE-CHANCELLOR 8 YEAR IN REVIEW 17 2004 COUNCIL 18 2004 OFFICERS OF THE UNIVERSITY 19 DIRECTORY 20 FINANCIAL REVIEW 2004 22 SUMMARY FACTS AND FIGURES 23 STATEMENT OF RESPONSIBILITY 24 AUDIT REPORT 26 STATEMENT OF ACCOUNTING POLICIES 31 STATEMENT OF FINANCIAL PERFORMANCE 32 STATEMENT OF MOVEMENTS IN EQUITY 33 STATEMENT OF FINANCIAL POSITION 34 STATEMENT OF CASH FLOWS 36 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 50 MASSEY UNIVERSITY MISSION 50 STATEMENT OF SERVICE PERFORMANCE 135 APPENDICES: 136 STUDENTS 140 STAFF 145 RESEARCH AND OTHER CONTRACT FUNDING Massey University is driven by a spirit of community relevance and engagement, while maintaining intellectual independence. MASSEY UNIVERSITY Mission Statement Massey University is committed to meeting the needs of New Zealand and New Zealanders, enhancing access to university study for diverse populations, preparing students for life-long learning, and meeting international standards of excellence in research and teaching. Massey University is an integrated multi-campus institution of higher learning that creates new knowledge and understanding; synthesises, applies and disseminates knowledge; develops advanced learning and scholarly abilities for a national and international student body; and promotes free and rational inquiry. We offer high-quality learning experiences that empower people and their communities to prosper in an increasingly knowledge-dependent and technologically advanced world. Massey University is driven by a spirit of community relevance and engagement, while maintaining intellectual independence. We will use our multi-campus structure to meet the needs of our constituent regional communities, while our fl exible delivery and distance (extramural) education capabilities give a national and international reach to our educational programmes. Massey University recognises and respects the signifi cance of mana whenua within its regions and the range of Mäori organisations contributing to Mäori development and advancement. We have demonstrated our commitment to Mäori development by providing Mäori academic leadership, research opportunities and educational qualifi cations that assist in the achievement of Mäori aspirations. Our integrated academic structures and organisational arrangements enable and support interdisciplinary and cross-disciplinary research and academic programmes. We pride ourselves on the relevance of our programmes; on our openness to students of diverse backgrounds spanning age, geographic location, educational background, ethnicity and culture; on the support we provide for our students; and on the relationship we have built with our alumni. 1 REPORT FROM THE Chancellor Refl ecting on the 2004 year a wide range of outcomes spring to mind. As detailed elsewhere in this report the level of domestic student enrolments was slightly reduced, both against budget and when compared with the previous year. While this was partially the result of earlier decisions to reduce the number of programmes offered (particularly sub degree), it also refl ected the general stability in domestic enrolments being experienced throughout the New Zealand university sector. This refl ects the general University commitment to the retention of focus on academic and research quality, but meant that universities collectively received only a small (approximate 16%) portion of the growth in tertiary funding provided by the Government during the year. We have welcomed the gradual shift in funding from predominantly a volume driven formula to a more value focused approach. While this produced a slight increase in funding from Massey we were disappointed at the overly simplistic comparisons which were highlighted when the performance base research funding (PBRF) outcomes were reported. Clearly there was a lack of consistency in the approach taken amongst universities which regrettably disguised the high level of achievement within Massey. While domestic comparisons between universities are important, it was perhaps more satisfying to record the high ranking that Massey University received amongst several international surveys released during the year which constantly recognized Massey’s high level of positioning both internationally and within New Zealand. This focus on excellence will continue to be a major theme for 2005 with increased undergraduate enrolment standards, proportionately higher postgraduate enrolments, and further focus on research led teaching being prime examples of this strategy. International student participation remains strong and above budget despite the policy of enrolment limits being introduced at the commencement of the year. It is interesting to note that during the year Massey joined the ranks of three other New Zealand universities at which the level of international fee contribution exceeded that received from domestic students. Another satisfactory fi nancial surplus of $14.8m was achieved for the year. Even allowing for the abnormal contribution from the sale of surplus property, the actual result was in line with 3 that budgeted and again confi rms the effective level of fi scal management maintained within the University. A high level of short term fi nancial investments was maintained throughout the year, which will largely be utilized to fund a broad range of capital investments being undertaken during 2005. Further teaching and research capability is being invested in the Albany campus, but the major focus during 2005 will be experienced within the Palmerston North campus where new student facilities, halls of residence, and revamped science facilities will be completed. Planning is expected to be completed for similar focused investment within the Wellington campus during 2005. Massey, with its three major campuses and extensive extramural programme, retains a unique position within the New Zealand university scene. Each campus is developing a specialist positioning which over time will result in a largely complementary role being defi ned. Massey is well aware of its unique contribution to distance learning and during 2005 will be reviewing areas where its role can be further developed and improved. In conclusion I acknowledge the considerable contribution made to Massey’s success by its staff and extensive range of friends and partner organizations, but perhaps above all I acknowledge the contribution that students make to the University and wish all who graduated in 2004 best wishes for their ongoing career or personal self development. Nigel Gould Chancellor Massey University 4 REPORT FROM THE Vice-Chancellor A distinctive quality of Massey University is its future-focused approach and commitment to teaching and research training in a research-led environment, particularly in domains essential to economic, cultural and social progress. The University’s track record in exploration and discovery is a by-word: We are committed to maintaining a strong research-oriented culture and to nurturing domains of excellence and future relevance in which our research stars and the emerging stars amongst our postgraduate students, can succeed, shine and fl ourish. We are committed to strengthening our extramural programmes that are an important means of access to both initial and further tertiary study for a diversity of New Zealanders – many of whom are mature and in employment, both here and abroad. Such success does not come without careful planning and investment. For example, we must ensure that our academic staff members have the time, support and equipment they need to achieve success – for themselves and for their research students. As part of this commitment, the University is home to New Zealand’s fastest research computer, the Double Helix, and to New Zealand’s most powerful nuclear magnetic spectrometer. We are also the host of the Allan Wilson Centre for Molecular Ecology and Evolution, a government-funded Centre of Excellence that is, among many other achievements, extending our knowledge of the role of DNA in evolution. As a forward-thinking and ambitious university, we are pleased when our investments in research and postgraduate study are fruitful. In particular we note that we now hold the number one position amongst New Zealand tertiary institutions for the highest reported number of research postgraduate degree completions. This confi rms that Massey postgraduate degrees are highly sought after. It also means that each person graduating from Massey University with a completed research degree represents a further contribution to New Zealand’s stock of knowledge - an important human resource for this country. Two independent reviews of the world’s best universities were commissioned in 2004 by The Times Higher Education Supplement and by Shanghai Jiao Tong University. Both reviews ranked only three New Zealand universities in their lists of the world’s best and it was pleasing to note that Massey was one of those three. During 2004 the University began a process of re-focusing to consolidate and grow our distinctive domains of excellence and future focus. This process includes the further strengthening of core areas of academic focus including recruitment of high quality staff in key areas of our fl exible modes of delivery, research training and