A GLOBAL UNIVERSITY OF TECHNOLOGY AND DESIGN
2013 ANNUAL REPORT Published by: RMIT University Engagement Building 22, Level 2 330 Swanston Street Melbourne
GPO Box 2476 Melbourne VIC 3001 Australia
Tel. +61 3 9925 2000 ABN: 49 781 030 034 CRICOS Provider No: 00122A
Project manager and writer: Pauline Charleston Design layout and production: Michelle Aquino, Vince Lowe Cover image: Swanston Academic Building, Luke Joiner
RMIT University’s 2013 Annual Report and previous reports are available online at: www.rmit.edu.au/about/annualreport
13551 0314 CONTENTS
Letter of Transmittal 2 FINANCIAL STATEMENTS ORGANISATIONAL OVERVIEW Certification of TAFE Key Performance Indicators 38 Mission, Vision, Goals and Values 4 Attestation on Compliance with Risk Management Standard 38 Chancellor’s Statement 5 Declarations 39 Vice-Chancellor’s Statement 6 Independent Auditor’s Report 40 About RMIT 7 Independent Auditor’s Report on Senior Officers 8 TAFE Key Performance Indicators 41 Academic Schools and Research Institutes 10 Income Statement 42 Organisational Chart 11 Statement of Comprehensive Income 43 Statistical Snapshot 12 Statement of Changes in Equity 44 Financial Performance 13 Statement of Financial Position 45 REPORT OF OPERATIONS Statement of Cash Flows 46 Global 15 Contents to the Notes to the Financial Statements 47 Urban 19 Notes to the Financial Statements 48 Connected 21 Balance Sheet for the Years 2013 to 2010 inclusive 98 Students and Staff 23 Income Statement for the Years 2013 to Sustainability and Resource Usage 26 2010 inclusive 99 UNIVERSITY GOVERNANCE Governance 27 Council Members 28 Council Committees 29 RMIT Subsidiaries 30 Statutory Reporting 31 Risk Management and Internal Audit 32 Objects of the University 32 Consultancies 33 DISCLOSURE INDEX 35
RMIT UNIVERSITY 2013 ANNUAL REPORT | 3 ORGANISATIONAL OVERVIEW
MISSION, VISION, GOALS AND VALUES
Mission of RMIT University Goals The University brings knowledge within reach through education and To achieve our vision, we will be: research to enrich and transform the futures of individuals, cities, 1. Global in attitude, action and presence, offering our students industries and nations. a global passport to learning and work. 2. Urban in orientation and creativity, shaping sustainable cities and drawing inspiration from the challenges and opportunities RMIT’s Vision to 2015 they provide. RMIT will be a global university of technology and design. As a 3. Connected through active partnerships with professions, industries university of technology and design, RMIT will focus on creating and organisations to support the quality, reach and impact of our solutions that transform the future for the benefit of people and their education and research. environments. We will collaborate with partners to ensure the global impact of our education and research, and we will reach out through our presence in cities across the world to make a difference.
Core Values
Creative Passionate — RMIT creates opportunities for students and staff to explore, — Building enthusiasm and a sense of achievement in our students test and fulfil their potential. and staff is a high priority. — Imaginative curriculum and research solutions are sought, — Excellence in teaching, scholarship, research and service is applied and rewarded. rewarded and supported. — RMIT fosters a creative and inventive culture which values — Cultural and social diversity is encouraged and celebrated. achievement. ommitted to ma ing a di erence Connected — Our graduates are creative, skilled, highly employable and — Students’ aspirations, experience and needs are central to purposeful. evaluating our performance and shaping improvement. — Knowledge and skills developed in our students and staff serve — Industry and community are active partners in our education the needs of and bring benefits to individuals, cities, industries and research. and nations. — Global networks formed around knowledge, industries and — Our staff are constructive and agile in meeting the needs of cities underpin our operations. individuals, cities, industries and nations. — Collaboration and team work is encouraged and a sense of belonging for students and staff is supported.
Fair — Learning opportunities support a diverse range of students, including those who may be disadvantaged. — Respect for Indigenous cultures is reflected in our work. — Intellectual freedom and tolerance are nurtured and debate encouraged. — A physically, culturally and socially safe work and study environment is provided for all staff and students. — Ethical, honest and open dealings characterise relationships with students, staff and partners.
RMIT UNIVERSITY 2013 ANNUAL REPORT | 4 MISSION, VISION, CHANCELLOR’S GOALS AND VALUES STATEMENT
RMIT drafted a five year strategic plan in 2010 to achieve its goal of becoming a world-class global university of technology and design. The 2013 year saw strong progress as we lived up to our reputation as a modern global, urban, and connected university.
The University’s strategic agenda is bold in ambition, demands Universities everywhere are being subjected to forces of change constancy of purpose and careful execution, but allows for which can be threatening or merely bewildering. Online teaching and adaptation to the changing circumstances of national and global learning, shifts in higher education public policy, increasing regulatory economies, government policies, the needs of students and their burden, exchange rate and international student movements, families, and the views of academic staff. competition from other countries, and sharp changes in skill needs Given its 127-year history, this institution knows well the challenges and career options, combine to challenge the thinking of university of achieving and sustaining real best-in-class outcomes. And the executives and Councils. While remaining alert to unexpected shifts, 2013 academic year saw excellent progress along our strategic and despite these challenges, at RMIT we believe we are well placed roadmap as so many of our staff and students set new levels in to take advantage of this reshaping of the university landscape to the teaching, research and recognition. benefit of our students and their families. In terms of operational metrics, this past year saw healthy I would like to thank my colleagues on Council, which continued increases in enrolments and revenues. Our annual revenues now restructuring during the year resulting in an ongoing number of approach $1 billion. Consistent with our financial budget, operating 12 members of Council and associated changes to our various margins were steady and cash flows strong, which supported committees. increased investments in our campus infrastructure including Dr Jane Gilmour, Fran Thorn and Helmut Pekarek retired from research facilities and buildings, and in leading-edge technologies Council at the end of the year, having played important roles in that encourage learning and community engagement through governing the institution during demanding times and, more recently, networking and collaboration. Our academic and administrative towards exceptional progress and pleasing outcomes. I thank them staff continue to be prudent fiscal managers. for their contributions and dedication to our University. With 82,000 students, of whom 24 per cent are offshore, Finally, I would like to thank the Vice Chancellor, Professor Margaret RMIT University is Australia’s largest and most internationalised Gardner AO, and members of her executive. The University continues tertiary institution. Our global strategy is reflected in our five to execute its academic and commercial plan with impressive results campuses in Melbourne and Vietnam, our partner programs in underpinning a wonderful reputation. Given our currently strong Singapore, Hong Kong, mainland China, Indonesia, Sri Lanka, momentum, the talent within our organisation, and the goodwill of our Spain, Belgium and Germany, and our new Centre established staff, students and the wider community, we have every reason to in Barcelona in June 2013. look forward to the future with confidence. In pursuing a reputation for research excellence, the University completed an especially successful year reflected in higher numbers of research grants, fellowships, awards and lifts in our evaluations and rankings. The recruitment of leading researchers continued successfully, as did the University’s investment in Dr Ziggy Switkowski state-of-the-art facilities. Chancellor
RMIT UNIVERSITY 2013 ANNUAL REPORT | 5 VICE CHANCELLOR’S STATEMENT
RMIT’s Strategic Plan, Transforming the Future, focuses on the University’s contribution as a global university of technology and design.
During 2013, RMIT’s global presences and reach were all extended. Work continued on delivering the University’s $800 million capital RMIT received the Premier’s Award for International Education Provider development program. In Vietnam, Academic Building 2 was opened, of the Year and the award for Excellence in International Education doubling the teaching space available on the Saigon South campus. (University) at the inaugural Victorian International Education Awards. The Swanston Academic Building, designed by RMIT alumnus Carey This is recognition of RMIT’s global quality. With the University having Lyon, was officially opened in April by Jacques Nasser AO – also an 11,000 international students in Australia and 18,000 offshore RMIT alumnus. This building has helped transform the education (including 7,000 at RMIT Vietnam), RMIT is the most internationalised received by students at the Melbourne CBD campus, and both the of all Australian universities. Swanston Academic Building and the RMIT Design Hub have been recognised nationally and internationally with a range of architectural, The University opened a new centre in Barcelona to focus on construction and sustainability awards. postgraduate education, research and industry collaboration, commenced a new educational partnership in Indonesia with The Design Hub hosted its first major exhibition, Dream the World Universitas Pelita Harapan, and was the first Australian institution Awake, a major retrospective of the work of Walter Van Beirendonck to receive funding from the EU to support a new research training supported by the generous philanthropy of Naomi Milgrom AO. RMIT network across Europe, with over $5 million awarded to the Gallery continued to host a range of international exhibitions, including Architecture, Design and Art Practice Training Research Network. Music, Melbourne & Me, a celebration of 40 years of Mushroom Records. And more than 1,400 of our alumni attended a special In 2013, RMIT launched its innovative Careers Toolkit – one of the showing at the National Gallery of Victoria of Melbourne Now, which most comprehensive suites of online career resources in Australia – included works of 120 RMIT alumni and staff. in Melbourne, Singapore and Vietnam to support our students in the global job market. While achieving these outcomes, RMIT has continued its record of strong financial performance. The Group’s surplus was $67.4 million Our graduates continue to be highly sought after by employers, with on revenue of $1.012 billion. EBITDA (Earnings Before Interest, Taxes, the 2013 QS World University Rankings placing the University 87th in Depreciation and Amortisation) was 13.9 per cent. the world in employer reputation. Our students also continued to be highly mobile internationally, with more than 1,500 Australian-based In 2013, RMIT graduated 270 PhDs and a total of 24,456 students. students taking part in international mobility programs in 2013, and Vibrant and dedicated staff alongside creative and committed students 22 per cent of domestic completing students having undertaken an have worked to produce many successes and to transform the future international study experience as part of their degree. of their communities, not only in Australia but also in Saigon, Hanoi, Hong Kong, Singapore, Shanghai and Kuala Lumpur. Doctoral students In research, RMIT won a total of $15.16 million during 2013 in studied and worked in locations including Australia, Hyderabad, competitive peer-assessed research income through Australian Bangalore and Ghent. Research Council grants, placing RMIT in the top three universities in Victoria in terms of research funding. The University also launched I am confident that the University will continue to build on its strong its $10 million Green Engines Research Facility in Bundoora, opened and distinctive contributions to Victoria, Australia and the world. the Australia-India Research Centre for Automation Software Engineering in Bangalore, and received two Victorian Postdoctoral Research Fellowships.
Professor Margaret Gardner AO Vice-Chancellor and President
RMIT UNIVERSITY 2013 ANNUAL REPORT | 6 Published by: RMIT University Engagement Building 22, Level 2 330 Swanston Street Melbourne
GPO Box 2476 Melbourne VIC 3001 Australia
Tel. +61 3 9925 2000 ABN: 49 781 030 034 CRICOS Provider No: 00122A
Project manager and writer: Pauline Charleston Design layout and production: Michelle Aquino, Vince Lowe Cover image: Swanston Academic Building, Luke Joiner
RMIT University’s 2013 Annual Report and previous reports are available online at: www.rmit.edu.au/about/annualreport
13551 0314 SENIOR OFFICERS
Vice-Chancellor and President Deputy Vice-Chancellor Academic Chief Operating Officer and Professor Margaret Gardner AO and Vice-President Vice-President Resources BEcon(Hons), PhD (Syd), DUniv (Griffith), FAIM, Professor Gill Palmer Mr Steve Somogyi GAICD BSocSc(Hons) (Birm, UK), MSc(Industrial MSc (Melb), SM (MIT), FIAA, FAICD, F Fin Professor Gardner is Vice-Chancellor and Admin) (LSE), PhD (London City), GAICD Steve Somogyi was appointed to this role President of RMIT University and all of its Professor Palmer has previously worked in the in 2006, having previously had extensive controlled entities. She also chairs the UK at the London School of Economics, Cass experience in the financial services and health Boards of RMIT Vietnam, RMIT Vietnam Business School, the British Government’s care industries, including three years as Holdings and RMIT Spain. Commission on Industrial Relations and her executive member of the Australian Prudential Professor Gardner has had a prominent own business consultancy. In Australia from Regulation Authority and many years in senior academic career, having held leadership 1984, she has held senior roles at the University executive roles with National Mutual. positions at Griffith University and the of Wollongong, Queensland University of Mr Somogyi is a Fellow of the Institute of University of Queensland. Technology and Monash University. Actuaries of Australia, the Australian Institute of She is President of the Board of Museums She has published in organisational sociology Company Directors and the Financial Services Victoria, Chair of the Office for Learning and and employment relations, been President of Institute of Australia. Teaching’s Strategic Advisory Committee, the Australian and New Zealand Academy of He is a commissioner on the Safety, and a director of Universities Australia, Open Management and the Association of Industrial Rehabilitation and Compensation Commission, Universities Australia, the Fulbright Commission Relations Academics of Australia and New a director of ANZ Wealth companies, Advisory Board and the Committee for Zealand, and is currently on the European Guild Group companies and Spatial Vision Economic Development Australia (CEDA). Quality Improvement System Committee Innovations, and a trustee of RMIT Foundation. and the International Advisory Committee of Singapore Institute of Management.
Pro Vice-Chancellor Business and Pro Vice-Chancellor Design and Social Pro Vice-Chancellor Science, Engineering Vice-President Context and Vice-President and Health and Vice-President Professor Ian Palmer Professor Barbara de la Harpe Professor Peter Coloe BA(Hons) (ANU), PhD (Monash), FASSA BSc(Hons) (RAU), GradDipEd, PhD (Curtin) BSc(Hons), PhD (Monash), FASM Professor Palmer’s leadership of the College Professor de la Harpe has more than 20 years’ Professor Coloe was appointed to this role in of Business is informed by a distinguished experience in academic leadership roles. She 2008. He served on Council from 1999 to 2008 academic career in Australia and overseas. has an international reputation and significant and chaired the Academic Board from 2000 to standing for her research and publication in 2008. A prolific researcher and a sought-after A previous President of the Australian and New the field of higher education. She is recognised research supervisor, Professor Coloe has more Zealand Academy of Management (ANZAM) as an authority in higher education curriculum than 160 publications and has been awarded and foundation Chair of the Business Academic and pedagogy, having made an original and three worldwide patents. Research Directors Network, Professor Palmer distinguished contribution to learning and was elected in 2008 to the US Academy of Professor Coloe has served as an advisor to teaching practice. Management’s Organizational Development and the Federal Government’s Biosecurity Australia Change Division as Representative-at-Large. Her contribution has been recognised through risk assessment panel and the Victorian He was also appointed Chair of the Research numerous awards including the Walter D Neal Government’s biotechnology task force. Quality Framework Panel 10 for Economics, Award for excellence in educational research, He is a Fellow of the Australian Society for Commerce and Management, and to life an Australian College of Education prize for Microbiology, a member of the International membership of ANZAM. excellence in teaching, and a Citation for Union of Microbiological Services, an ARC Outstanding Contributions to Student Learning. and NHMRC grants referee and serves on Professor Palmer is the current Treasurer of the She is an ARC and OLT reviewer and serves on Microbiology Australia’s Editorial Board. Australian Business Deans Council. the Agideas Academic Advisory Board.
RMIT UNIVERSITY 2013 ANNUAL REPORT | 8 Deputy Vice-Chancellor Research and Deputy Vice-Chancellor International Director TAFE and Vice-President Innovation and Vice-President and Development and Vice-President Mr Keith Cowlishaw Professor David Adams Mr John Barnes BAppSc(Applied Chemistry) (RMIT) BSc(Hons), PhD (UNSW) BA (Monash), BEd (Deakin), GradDip BA Keith Cowlishaw has a broad industry Professor Adams’ research and teaching (Swinburne), GradDip CSP (ACSA), MBA (RMIT) background in the textile industry. Prior to background is in biomedical sciences with John Barnes has had extensive involvement joining RMIT in 2005, he held a number of a focus on membrane physiology and in tertiary education, particularly in vocational senior marketing and business management pharmacology. His research has been education. Prior to joining RMIT in 2012, he held positions with DuPont, JGL Investments and supported by national research funding for over senior management positions in TAFE institutes ICI Fibres. He has had extensive experience 20 years, resulting in 170 refereed publications, for 16 years, most recently as General Manager, working in overseas markets with a particular and he has been awarded an ARC Australian Business Development at Kangan Institute of focus on Asia-Pacific countries. Professorial Fellowship (2010–14). TAFE. He was appointed to the role of DVC I&D At RMIT, Mr Cowlishaw has held the positions Professor Adams has served on numerous in July 2013. of Head of School, Fashion and Textiles, and NHMRC grant review panels and as a member Mr Barnes has extensive experience in Head of School, Design TAFE. He is especially of its Assigners Academy. He is a member of developing industry-based vocational interested in developing sustainable industry the ARC Executive Advisory Committee for education, both in Australia and internationally. linkages through the connectivity of vocational Biological Sciences and Biotechnology, MS He is committed to strong educational education. He is currently completing a PhD Research Australia’s Research Management outcomes in responding effectively to industry, exploring the relationship between industry Council, the Australian Academy of Science’s student and government needs. policy and innovation. National Committee for Biomedical Sciences, He is currently completing a Doctor of and the editorial boards of four international Education (Research) with the University of scientific journals. Melbourne.
University Secretary and Vice-President President RMIT Vietnam and President RMIT Europe and Dr Julie Wells Vice-President RMIT University Vice-President RMIT University BA, DipEd (University of WA), BA(Hons) Professor Joyce Kirk Professor Colin Fudge (Murdoch University), PhD (Monash) BA (Syd), MA (UCan), MLitt (UNE), PhD (UTS), BArch(Hons), MA (Town and Regional Planning) Dr Wells was appointed University Secretary in FALIA (Sheffield), DSc (Bristol), FRIBA, MRTPI, FRSA 2009, heading the Office of Governance and Professor Kirk was appointed President RMIT Professor Fudge was appointed President RMIT Planning which provides integrated support Vietnam in 2012. Her expertise lies in university Europe in 2013. From 2008 to 2013 he held the for university governance and for strategic, leadership and management with a focus on role of PVC Design and Social Context. academic and business planning. She was policy development and implementation, quality Prior to that, he worked for the two universities in previously Executive Director, Policy and assurance and the student experience. Bristol and the University of Cardiff (UK), Chalmers Planning, and has served as Principal Policy Previous positions include PVC Students at University and KTH Royal Institute of Technology Advisor to the Vice-Chancellor. RMIT, where she led significant policy, service (Sweden), the UK and Swedish governments, the Dr Wells has extensive experience in tertiary and ICT initiatives, and Dean of the Faculty of Victorian government and European Commission. education administration and management, Humanities and Social Sciences at UTS, where Professor Fudge has contributed through and in public policy. Her background includes she was also elected Chair of the Academic interdisciplinary research on public policy and public teaching and administrative roles in schools, Board. health, sustainable cities, demographic change, TAFEs and universities, providing advice and Before joining RMIT Vietnam she completed and urban design. This has been recognised support to federal and state parliamentarians, consultancies on pathways, academic through the awarding of the Royal Professorship and leading the policy and research unit in management, promotion policies and of Environmental Science by the Swedish Academy NTEU’s national office. She was a founding governance for universities in three Australian of Sciences and an Honorary Fellowship of the Board Member of the Council for the states. She is a TEQSA registered expert and a Royal Institute of British Architects. Humanities, Arts and Social Sciences. reviewer for the HK Council for Accreditation of Academic and Vocational Qualifications.
RMIT UNIVERSITY 2013 ANNUAL REPORT | 9 ACADEMIC SCHOOLS AND RESEARCH INSTITUTES
As at 31 December 2013, RMIT University offered programs of study in 23 schools across three academic colleges.
College of Business Research Institutes RMIT University has four Research Institutes which unite researchers School Head of School from across the University within multidisciplinary teams. These Accounting Professor Garry Carnegie Institutes, together with other research groups in the University, are Business IT and Logistics Professor Caroline Chan concerned with addressing the problems and needs of industry and communities world-wide. Business TAFE Ms Vicki Molloy Economics, Finance and Marketing Professor Timothy Fry Institute Director Graduate School of Business and Law Professor Mark Farrell Design Research Institute Professor Mark Burry Associate Professor Management Global Cities Research Institute Professor Paul James Rosalie Holian Health Innovations Research Institute Professor Peter McIntyre Platform Technologies Research Institute Professor Xinghuo Yu College of Design and Social Context
School Head of School Architecture and Design Professor Richard Blythe Art Professor Jeremy Diggle Professor Robert Education Strathdee Associate Professor Fashion and Textiles Robyn Healy Global, Urban and Social Studies Professor David Hayward Media and Communication Professor Martyn Hook Property, Construction and Project Professor Ron Wakefield Management
College of Science, Engineering and Health
School Head of School Aerospace, Mechanical and Professor Manufacturing Engineering Aleksandar Subic Applied Sciences Professor Andrew Smith Civil, Environmental and Professor Chun Qing Li Chemical Engineering Computer Science and Professor Information Technology Athman Bouguettaya Electrical and Computer Engineering Professor Ian Burnett Engineering TAFE Mr Peter Ryan Health Sciences Professor Charlie Xue Life and Physical Sciences Ms Cheryl Underwood Mathematical and Geospatial Sciences Professor John Hearne Medical Sciences Professor David Pow
RMIT UNIVERSITY 2013 ANNUAL REPORT | 10 ORGANISATIONAL CHART
This organisational chart provides University Secretary and Vice-President a graphical representation of the Dr Julie Wells management structure of RMIT Oversight of the Governance and Planning office University as at 31 December 2013. • Chancellery • Global Quality and Regulation Up-to-date versions of the • Policy and Planning • University Secretariat organisational chart are available Deputy Vice-Chancellor Research and Innovation and Vice-President on RMIT’s website. Professor David Adams Research development • Research Office • Graduate Research • RMIT Research Institutes
Deputy Vice-Chancellor International and Development and Vice-President Mr John Barnes International and business development and communications • Advancement • International Relations • Engagement • RMIT International College • International