AnnualReport our commitment to innovation and excellence Annual Report 2 CONTENTS Overview Financial Statements Chancellor’s review 4 Statement of responsibility 44 Vice-Chancellor’s report 6 Statement of comprehensive income 45 Key facts and figures 8 Statement of financial position 47 University governance 12 Statement of cash flows 48 Statement of changes in equity 50 Notes to the Financial Statements 52 Teaching and learning The innovation culture 18 Report of the Auditor General 87 Faculties, Institutes, UniServices 22 Statement of resources 90 Glossary 91 Statement of Service Performance Statement of service performance 30 Statement of costs of outputs 41 Compulsory student services fees 41 Annual Report 2016 | 3 4 CHANCELLOR’S REVIEW Research universities such as the University • Emeritus Professor Michael Corballis significant contributions to understanding of Auckland make a unique contribution (Psychology) was awarded the Rutherford the diversity, biology and evolution of marine to their communities, their cities and their Medal for his foundational research on the macroalgae. countries because only they both create nature and evolution of the human mind, • Distinguished Professor Viviane Robinson new knowledge and provide education including cerebral asymmetries, handedness, (Learning, Development and Professional at the highest levels. This means that mental imagery, language, and mental time Practice) was awarded the Mason Durie their graduates are equipped with the travel. This medal is the highest honour Medal for her contribution to educational ability to solve problems and create new awarded by the Royal Society of New Zealand research through identifying the differential opportunities, and that their staff are and acknowledges a lifetime of significant impact of types of school leadership practice continually exposed to (mostly) young, scholarly research. on the achievement of learners, which has enquiring minds and the leaders of the • Associate Professor Iain Anderson (Auckland materially changed national and international future. It is thus in the national interest that Bioengineering Institute and Engineering educational policy and practice. research universities be supported to excel Science) received the Pickering Medal for • Professor Stuart McNaughton (Curriculum both in teaching and in research. the development and commercialisation of and Pedagogy) was awarded the Dame Like other New Zealand universities, the applications for artificial muscle technology. Joan Metge Medal for his contributions to University of Auckland operates on quite • Professor Merryn Tawhai (Auckland building research capacity in educational modest funding levels. For example, our income Bioengineering Institute) won the MacDiarmid sciences, advancing literacy and language per student is only about 70 percent of that Medal for her research in computational development, and for his evidence-based of equivalent universities (the Group of Eight) physiology of the respiratory system, having impact on educational policy both nationally in Australia. However, we use our resources pioneered development of anatomically and internationally. very efficiently and have outstanding staff and detailed models that span cell-to-organ • Emeritus Professor Alastair Scott (Statistics) students who perform to a very high level. In function and provided new understanding of received the Jones Medal for a career in 2016, as in previous years, the performance of lung physiology and disease. our staff and students was recognised through a statistics spanning over 50 years, where he number of significant honours and awards: • Associate Professor Stéphane Coen (Physics) contributed through path-breaking research in was awarded the Hector Medal for his survey sampling and biostatistics and through • Associate Professors Tracey McIntosh (Social outstanding contributions in understanding, service to the wider statistical profession in Sciences) and Martin East (Curriculum and generating, and manipulating temporal academia, government and society. Pedagogy) won National Tertiary Teaching cavity solitons, and in identifying their role in • Distinguished Professor Jane Harding (Liggins Excellence Awards, making this the 13th time microresonator Kerr frequency combs. University of Auckland staff have won such Institute) was awarded the Health Research awards since the scheme was established 14 • Professor Wendy Nelson (Biological Sciences Council's Beaven Medal for her ground- years ago. and NIWA) received the Hutton Medal for her We use our resources very efficiently and have outstanding staff and students who perform to a very high level breaking research into treating babies with low if we are to ensure that the University can parts of it will be leased back for several years blood sugar levels. achieve its potential in contributing to New while we complete replacement facilities on Zealand and to the international community. the City/Grafton/Newmarket Campuses). Our • Ten of our leading researchers were among Although the basic operation of the University ability to advance the capital programme in 19 academics elected as Fellows of the Royal can be run from traditional revenue sources, the way we wish has been limited somewhat Society of New Zealand, recognising their philanthropy allows our staff and students to by the need to address seismic and asbestos academic excellence and leadership. achieve ambitious undertakings that would issues, but these simply must be dealt • Our students have likewise been successful not otherwise be possible. As Chancellor, I am with if we are to provide a safe and healthy in a wide variety of endeavours, the highlight grateful to the more than 4,000 donors who environment for all members of the University perhaps being Eliza McCartney's bronze medal have already contributed to the campaign and community. for pole vault at the Rio Olympics. to the many more we hope will join us in the Finally, I wish to acknowledge the future. The challenge for the University Council and contributions of my predecessor, Dr Ian management is to help create the environment A key role for the Council is assessing, Parton. His association with the University and resources that will sustain and support approving and monitoring business cases spans more than 50 years as a student, further outstanding academic and personal for major capital expenditure to ensure that graduate, engineering professional, senior achievements of this kind. To that end, the University is able to provide a campus alumnus, Council member and Chancellor. in 2016 we launched the new University environment of genuinely international quality. We are grateful for the leadership that he has campaign “For All Our Futures” with the aim During 2016, we opened the magnificent new provided to the University as Chancellor during of raising $300 million to support student Science Building 302, and the 264-bed Carlaw these recent, and very successful, years. scholarships, academic positions and our Park Stage II student accommodation. We also research and teaching activities. This will made good progress on a number of other be the largest campaign of its kind by any projects, including preparation for the new Scott St John organisation in New Zealand but we must Engineering Building 405, and the sale of the Chancellor succeed in generating this kind of support Tāmaki Campus was completed (although Annual Report 2016 | 5 6 VICE- CHANCELLOR’S REPORT The 2016 year was one in which the However, faculty leaders have responded rankings, we ranked first in New Zealand in 35 of University of Auckland continued to perform well to this situation and we are hopeful that the 38 subjects we teach. very well in what is a highly constrained we will see a recovery over time. For that Completions of both taught masters (791 environment. That performance was due reason, and because we are committed to versus 763) and research masters (845 versus in no small part to the tremendous efforts the comprehensive nature of the University, 749) were ahead of budget while doctorates of our staff, our students and our many we will again "buffer" both faculties in 2017, were below budget (365 versus 396). The supporters. providing a higher level of budget than would improvement in research masters completions be justified by student numbers alone, in order Overall, revenue (unrestricted) was up on the is mainly a consequence of increased to give them time to recover EFTS through the previous year by $20.4 million. The operating enrolments in a limited range of professional creation of new programmes and attraction of surplus, at 4 per cent, was also well ahead of masters degrees; elsewhere there is an additional students into existing programmes. budget (3 per cent), reflecting good control of increasing trend for students in some disciplines costs together with some non-cash gains on The proportion of high-achieving domestic to proceed directly to the doctoral programme sale revenues. students (grade point average greater than or from an honours degree. equal to 5) entering the University increased Total domestic Equivalent Full Time Students Research and contract revenues of $243 million again in 2016 (as it has done in every year (EFTS) were 28,855, which was down on were generated in 2016. Overall, the picture since we limited entry to all programmes) to both the 2016 target (29,787) and the 2015 remains one of a constrained environment for 58 per cent, up from 55 per cent in 2015. There actual (29,340)