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Annual Report Australian College of Theology 1 2 5 Y E A R S O F E Q U I P P I N G T H E B O D Y O F C H R I S T F O R T H E W O R K O F T H E G O S P E L 2018 ANNUAL REPORT + 6 1 2 9 2 6 2 7 8 9 0 M a y 2 0 1 9 w w w . a c t h e o l o g y . e d u . a u D r M a r t i n S u t h e r l a n d i n f o @ a c t h e o l o g y . e d u . a u D E A N a n d C E O Australian College of Theology Limited ABN 88 869 962 393 A Company Limited by Guarantee Annual Report For the Year Ended 31 December 2018 Australian College of Theology Limited ABN 88 869 962 393 The Australian College of Theology Limited (ACT or the Company) is an Australian government approved Higher Education Provider, fostering and leading a robust consortium of independent affiliated colleges in the systematic study of theology and other disciplines related to Christian ministry. The ACT’s chief purpose is to equip people faithfully to serve God’s church and God’s world in support of the Gospel’s message in society and culture. To this end, the ACT delivers programs, processes and services necessary to deliver learning and teaching, research and scholarship up to the highest level, in collaboration with its affiliated colleges and other stakeholders, supported by external specialist advisers. This report covers key performance measures and major developments during 2018. Further detail on standing policies and operations of the ACT may be found on the ACT website at http://www.actheology.edu.au/ 1 Australian College of Theology Limited ABN 88 869 962 393 Contents Page SECTION A: Report of Operations Chair's Report 3 Dean's Report 4 ACT Governance and Staff 6 Courses and Enrolment 8 Outcomes 11 Research 17 Compliance and Reporting 18 Auditor's Independence Declaration under Subdivision 60-40 of the Australian Charities and Not- for-Profits Commission Act 2012 25 Directors' Declaration 26 Independent Audit Report 27 SECTION C: Financial Report Statement of Profit or Loss and Other Comprehensive Income 29 Statement of Financial Position 30 Statement of Changes in Equity 31 Statement of Cash Flows 32 Notes to the Financial Statements 33 2 Chair’s Report The past twelve months has seen significant change for the Australian College of Theology. Your Board of Directors has embraced the change in light of the ACT’s longstanding vision for theological education which “equips people to faithfully serve God’s church and God’s world”. Mid-2018 saw the resignation of two long standing Directors, Richard Cardew and Peter Young. Richard served the ACT for over ten years including terms as Chair of the Board of Directors for four years, Chair of the Academic Board, a member of the Audit and Risk Management Committee and Chair of the new Dean Selection Committee. Over this time, the number of affiliated colleges, students and curriculum offerings grew significantly. Richard always gave generously of his time and his knowledge of higher education policy and the university sector. Peter served the ACT for over seven years and was Chair of the Audit & Risk Management Committee for over five years. He brought a very deep knowledge of accounting and risk management practice and contributed significantly to the development of the ACT’s strategic direction and implementation of that strategic direction. The Board thanks both Richard and Peter for their contributions over many years and gives thanks to God for their service and commitment to theological education in Australia. In July 2018, I was appointed interim Chair for twelve months and asked by the Board to oversee a Board renewal process. After a period of consultation with members and other stakeholders, the ACT appointed four new Directors in September 2018: Professor Anne Abraham, Professor Phil Dolan, Rev Dr Theresa Lau, and Senior Professor Roger Lewis. Details of their background and experience is set out in the Directors' Report to the ACT’s 2018 Financial Statements. The ACT’s March 2016 application for recognition as an Australian University of Specialisation remains under assessment and consideration by the Tertiary Education Quality and Standards Agency. Whatever the outcome of the application, the ACT’s objects remain as set out in its constitution: to foster and direct the systematic study of theology and other disciplines related to Christian ministry by teaching and research in a manner and at a level comparable to the standards of Australian universities. In pursuit of these objects, the Board has adopted an updated strategy for the five years 2018-2022 based around four priorities: enabling affiliated colleges to realise their potential in higher education; fostering and enhancing a world class culture of research and scholarship; promoting the study of theology and related disciplines through the collaborative model; and sustaining the ACT in its role fostering and leading a robust consortium. These priorities were discussed at the annual Consortium Conference in June 2018 with a particular focus on issues of safeguarding (including a session on the implications of Royal Commission into Institutional Responses to Child Sexual Abuse for theological education), diversity and resourcing affiliated college Boards. This year’s Consortium Conference will focus on religious freedom and theological education and the changing regulatory environment for higher education providers. The Board is grateful for the leadership of Dr Martin Sutherland as Dean and CEO of the ACT and I commend to your reading his report on the operations of the ACT and the consortium it fosters and leads, as well as the ACT’s 2018 Financial Statements. Greg Hammond Chair, Board of Directors 3 From the Dean This Annual Report covers the activities of the Australian College of Theology in 2018. ACT has continued to offer first class teaching and research in a rapidly changing tertiary environment. Key statistics (see below) show that 2018 was a challenging year for some of ACT’s affiliated colleges. Whilst graduations were again strong, overall enrolments were down, especially in undergraduate, three-year programmes. Shorter, Diploma programmes remained strong. These trends are not unique to ACT. All fields of tertiary education are beginning to respond to an increased call for flexibility and shorter-term qualifications. These structural challenges aside, the accompanying Directors’ Report and Financial Statements for 2018, records another pleasing financial performance. ACT has been able to maintain a strong surplus, with increased efficiency and careful control of expenditure. The ACT remains securely positioned to hold its place in a challenging tertiary environment, with resources to invest in new initiatives as they emerge. The ACT lodged an application for recognition as an Australian University of Specialisation (AUS) in March 2016. The application remains unresolved. A draft report on ACT’s application was received in July 2017. In light of ACTs response, a second draft report was issued by the Tertiary Education Quality and Standards Authority (TEQSA) in September 2018. New issues were raised and a further detailed response has been lodged. No final finding on the application has yet been made. Fundamental to the AUS vision is recognition of ACT’s research culture. Research and publication are key ways by which a Christian Higher Education Provider pursues its calling. ACT continues to invest in research, partnering with affiliated colleges and faculty to enable and encourage new work. The section of this report which highlights research and scholarship gives an account of the research culture at ACT. Further details of publications will be in the 2018 Research Report which will be made available on the ACT website. The major internal project for 2018 was a thorough revision of ACT’s curriculum to better align it with the structure and expectations of the Australian Qualifications Framework (AQF). The various academic committees of ACT have made substantial progress in this complex exercise. The result will be a sharper, more clearly delineated and flexible set of programmes which will be implemented in 2020. The project has been undertaken in connection with our self-accrediting processes. The revised curriculum has been accredited for seven years from 2020. ACT is well served by its Board of Directors. Each brings their best to the task and offers significant time to the governance of our affairs. The staff in the ACT office are similarly dedicated. I have been especially grateful for the support of the Associate Dean Rev Dr Graeme Chatfield and the senior team. The way we manage this unusual and sometimes complex institution in a constantly changing environment is always under review. The staff have responded with innovative ideas and an impressive capacity to adapt to new requirements. ACT draws together a wide range of providers. Our affiliated colleges vary by denominational link, history, style, size and location. Each has its own sense of mission and calling. Some focus on training for traditional ministries, others for cross- cultural mission, still others are exploring options for the wider training of Christian professionals. ACT’s commitment is to enable the best flourishing possible of each college in the Higher Education (HE) environment. This means keeping up with new regulations and the shifting ground of tertiary funding. With a number of changes to legislation already in place or signaled, all Higher Education Providers must be alert and responsive to the requirements of the sector and their stakeholders.
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