ANNUAL REPORT 2019 Ten Year Vision Statement

2015 Our purpose is to enrich each UTS student’s learning experience. As a key strategic partner 2016 of the University, ActivateUTS is first and foremost a student-centric organisation that 2017 also caters for the whole UTS community,

2018 with a particular focus on the provision of co-curricular programs that complement and

2019 enhance graduate attributes.

2020

2021 ‘ActivateUTS creates a

2022 vibrant, exciting culture that is dedicated to 2023 enhancing the UTS 2024 community experience.’ 2 ActivateUTS Annual Report 2019 3

ActivateUTS Annual Report 2019 Contents

Chairman’s Report 4

President’s Report 6

CEO Report 8

Marketing and Communications 10

ActivateSocial 14

UTS Sport 18

ActivateFit.Gym 21

ActivateUTS Commercial 22 (ActivateEat+Drink, Aerial UTS Function Centre & ActivateRetail)

People & Culture 26

Financial Report 28 4 ActivateUTS Annual Report 2019 5

In 2019 ActivateUTS continued the programs impact student attrition and achievement of its excellent strong delivery of its objectives of: and performance more generally. outcomes yet again during 2019. Insights from this research will The Board would also like to • Valuing accessibility, diversity enable ActivateUTS to ensure that acknowledge all the student and sustainability, and providing its programs and activities are leadership teams and members of safe and inclusive environments focused on providing the greatest the ActivateUTS clubs and societies that maximise the experience of impact where needed the most. for the strong contributions that they our community. make; they are a truly outstanding Another significant outcome worthy and high achieving group. Finally, I • Being an organisation that was of mention was the expansion of want to acknowledge the high levels innovative and dynamic, that ActivateUTS commercial services of commitment and the excellent strives for best practice, with a to match the developing campus. advice provided by the ActivateUTS firm commitment to continuous The opening of The Terrace and Board members, who it has been an improvement. Upper Terrace were not only an absolute delight to work with during expansion of offering but more the year yet again. • Developing key graduate importantly, a significant uplift in attributes, ultimately enhancing the quality and sustainability of In closing, the Board thanks UTS the employability of UTS ActivateUTS food and beverage for its ongoing strong support graduates. services. While only operating for and effective engagement with the last quarter of 2019, they are ActivateUTS. In particular, the • Providing products and services both significant successes. high levels of advocacy from the that are relevant, valuable, Vice-Chancellor, Professor Attila sustainable and enriching to A continuing challenge for Brungs and the Provost, Professor meet the needs of the ever- ActivateUTS has been obtaining the Andrew Parfitt, and the unwavering changing UTS community. full potential of the UTS Haberfield commitment and engagement Club. During the year, a strategic from our UTS connection point, • Providing visible, adaptive refocus took place to reposition the Deputy Vice-Chancellor (Education and contemporary spaces offerings as more of a restaurant and Students), Professor Shirley that maximise their usage and than a club, and in the second half Alexander, are greatly appreciated. functionality. of the year to moved to table service All the UTS senior executives and for the main dining area. These staff make regular contributions • Providing a rewarding and changes took time to settle into to ActivateUTS activities and inclusive workplace that values place and significant retraining and strategies, and it would not be Chairman’s and enriches our workforce. positioning of staffing but started possible to achieve the high to have positive impacts late in outcomes that it does without 2019 continued the strong, strategic the year. Unfortunately, the smoke this highly positive and engaging performance of ActivateUTS in and hot weather somewhat offset environment. Report strengthening student engagement, these benefits. The foundations social and sporting activities, for a consistently more successful I commend this Annual Report to working steadily towards the performance are now in place the University community. ActivateUTS is a key strategic a broad view of the community achievement of our Corporate and we look forward to improved partner of the University catering it serves; including past, present Plan 2019. To provide further, outcomes in 2020. Emeritus Professor Peter Booth for the whole UTS community. and future students, university research-informed, insights into Chair Its primary focus is as a student- academic and professional staff, how to do this into the future, On behalf of the Board I would like ActivateUTS Board centred organisation, enhancing ActivateUTS workforce (staff and ActivateUTS commissioned further to acknowledge the CEO, Elizabeth the student experience through volunteers, board members and research by the UTS team led Morgan-Brett, her executive the provision of programs club administrators), members by Professor Simon Darcy and team and all the dedicated and that complement the learning, and patrons of UTS Haberfield Associate Professor Carmen Foley, hardworking ActivateUTS staff for development and social outcomes Rowing Club, as well as the precinct of the UTS Business School, with a their ongoing commitment to the of the University. ActivateUTS takes community and broader public. particular focus on how ActivateUTS mission and goals of ActivateUTS 6 ActivateUTS Annual Report 2019 7 President’s

vital and necessary behind-the- By actively increasing presence in effective high-level discussions scenes efforts and support from on campus, it was truly an all- and decisions being made. Report ActivateUTS, working to ensure that encompassing and successful year UTS athletes are able to compete for ActivateUTS in engaging its Final Word and produce their best results. membership and UTS community. ActivateUTS are market leaders in Members and the Directors and the Board the provision of student services Community across universities in Australia. The ActivateUTS Board is comprised ActivateUTS’ performance was ActivateUTS raised the bar in 2019 of both UTS staff and student made possible through the when engaging students and directors. This balance aims to significant and ongoing support and members of the UTS community. account for the wide-ranging positive relationship with UTS and ActivateUTS successfully engaged views and interests of the UTS its Senior Executives. new UTS students at O’Day and the community. Staff and student Board start of semester parties, facilitated directors worked collaboratively in Thank you to the ActivateUTS cultural and social dialogue in the ActivateUTS Board Mentoring Board of Directors, both former and events such as Harmony Day and program; discussing Board matters, current, for providing mentorship Clubs Day and further spurred the sharing viewpoints, and exploring and support over the years, my UTS community to participate in possibility for new initiatives that fellow directors and I have learned activity-based events including benefited the UTS community. a wealth of knowledge from you. City2Surf and Tough Mudder by To the Chair of the Board, Emeritus subsidising ticket costs, coupled One of the initiatives that the Professor Peter Booth, thank you with the provision of free or Board of ActivateUTS unanimously for your guidance and insight that subsidised event-specific services, endorsed and executed was enabled the student Board Directors Clubs and Societies Sport food and drink. the New Member Engagement to carry out their duties. Thank you Award, worth $4,250. The award to CEO, Elizabeth Morgan-Brett, for ActivateUTS has long recognised ActivateUTS bolstered its With the opening of The Terrace, aimed to promote engagement the strong and continued support that the services clubs and commitment to sport at UTS in ActivateUTS upheld its ongoing in the number of new members and the willingness to be open to societies provided for students and 2019. The UTS High Performance commitment to the UTS community signing up to clubs and societies. new ideas and initiatives brought members of the UTS community Program (HPP) was implemented to and to environmental sustainability, It also served to acknowledge and forward by ActivateUTS’ Student are at the heart of its constitutional complement the existing Elite and with subsidies for all UTS students reward the clubs and societies that Board Directors. Thank you to values. ActivateUTS reflected Emerging Athlete Program (EAP), and staff, as well as providing a went the extra mile in engaging Vice-President Jessica Massih and this recognition by increasing the enabling and ensuring that UTS discount for anyone using re-usable new members. First place was fellow Student Board Directors offerings of events and activities, student athletes were given the containers or cups. awarded $3,000, second place were Rebecca Chea, Lachlan McFall, along with boosting grants and best opportunities and support to rewarded with $1,000 and $250 was Sabrina Ulis and Rohan Indra for all awards given to compete at the ActivateUTS supported students awarded to third place. From this of your dedication and commitment clubs and societies highest of levels. as they pursued academic and initiative, it was evident that there towards duties. The UTS campus saw to better enable occupational success. The Late- was a marked improvement in the great change in 2019 and promote what Several UTS Night Reviver program allowed for number of new members from 2018 As an outgoing Director and and ActivateUTS were they do. Further to athletes ActivateUTS staff and volunteers to 2019. President, I consider myself at the forefront of the this, in reviewing participated in the to provide refreshments to those privileged to have had the evolution. It was a year and revamping the World University students on campus putting in long The Student Board Directors opportunity to serve the UTS of considerable ActivateUTS’ Club Games and hours of study, late into the night bring a flavour of enthusiasm and Community, I appreciate the growth and success. Executive Training performed with and, during the exam periods. dedication that is best reflected in opportunity to work towards the Program (ACED), strong results. In their initiatives as well as their strong mission of ActivateUTS—to enrich the organisation provided club the UniSport Nationals, UTS placed Furthermore, ActivateUTS continued presence on campus. The student the UTS student experience. and society leaders with the added third in the Overall Champion the successful Job Truth series which Board directors made themselves knowledge to improve services for University and won the Overall offered students with niche degrees accessible by volunteering on O’Day Sincerely, their 6,957 UTS student members. Per Capita Champion University an opportunity to listen and speak and Clubs Day, providing help and rankings. These impressive results with a panel of industry experts, support to students and gaining Thomas Miletich reflected the hard work and effort providing students with insight to knowledge on student views, President put in by UTS athletes, and the further develop their careers. concerns or suggestions, resulting ActivateUTS 2019 8 ActivateUTS Annual Report 2019 9 4.6% 27.6% 4% SOCIAL & ORIENTATION NEWLY CULTURAL ENGAGEMENT INTRODUCED MEMBERSHIP ACTIVATEUTS ACTIVITIES

UTS ELITE ATHLETES REPRESENTED AUSTRALIA AT 3,000+ 2019 WORLD UNIVERSITY GAMES CEO ACTIVATEFIT.GYM Report STUDENT MEMBERS

ActivateUTS’ Graduate Attribute The top 3 skills identified were research was delivered to the teamwork & collaboration skills, ActivateUTS received $5.465M in the striving towards our 10-year vision. c. ActivateFit.Gym provided a UTS and the broader University leadership & people management Student Services and Amenities Fee With a sustainable and committed first-class facility for over 3,000 community in 2019 skills, and organising & coordinating (SSAF) and University funding for the workforce, ActivateUTS was able to student members. and the findings skills. In 2019 ActivateUTS continued provision of programs and activities deliver the outcomes detailed in this demonstrated that to review, refresh and deliver that enriched the UTS community. Annual Report. d. UTS Sport finished third overall involvement in activities These skills were developed by 99%, programs, events and activities ActivateUTS contributed a further in Australian Intervarsity Sport facilitated by ActivateUTS 98% and 97% of student leaders that provided students with $2.831M directly to SSAF endorsed ActivateUTS monitored and and a record 11 UTS student is contributing respectively (Foley et.al 2019). The the opportunity to develop key programs, events and activities. appropriately responded to athletes represented Australia significantly to graduate full research report was provided to graduate attributes and in doing so, This resulted in: the changing campus and and UTS at the 2019 World attribute development, the Senior Executive Management effectively supported the University surrounding environment, University Games in Italy. both directly and group (SEM) in 2019 and circulated with graduate success. a. 4.61% increase in social and providing our commercial and indirectly (Foley et al. widely across the broader University cultural club membership; student engagement departments ActivateUTS sincerely thanks 2019). The findings community. This has inspired similar with the resources they need to the University for their covered student leaders and regular research to be conducted in many b. 27.6% increase in orientation achieve their targets: acknowledgement and support members of ActivateUTS sporting other Student Service Delivery engagement; and of the co-curricular activities and social clubs. organisations in Australia. a. ActivateSocial sourced space for and programs our organisation c. 4% increase in activities directly 130 clubs and societies on and off delivers, ultimately enhancing the run by ActivateUTS, outside of campus, which was increasingly graduate attributes of the UTS club programs, activities and challenging for performance- student population and delivering ACTIVATEUTS STUDENT LEADERS’ events. based clubs and societies, with on our mission of enriching the TOP 3 SKILL DEVELOPMENT over 3,700 bookings in 2019. UTS community. ActivateUTS encouraged a culture built on our core values b. ActivateUTS successfully Elizabeth Morgan-Brett EMBA OLY by respecting and supporting delivered two new trading outlets Chief Executive Officer % % % each member, collaborating in on campus in 2019; The Terrace ActivateUTS accordance with our primary and Upper Terrace. Revenue 99 98 97 purpose, supporting diversity, generated from ActivateUTS DEVELOPED TEAMWORK & DEVELOPED LEADERSHIP & DEVELOPED ORGANISING & attracting and retaining the right trading outlets was returned COLLABORATION PEOPLE MANAGEMENT COORDINATING SKILLS SKILLS SKILLS people who were committed to to the campus community via continuous improvement and programs, services and activities. 10 ActivateUTS Annual Report 2019 11

Marketing and 50 Communications % 2019

Marketing and Communications’ MORE DATA 50% LESS PRINTING CUSTOMER vision is to deliver consistently CAPTURING = BETTER = SUSTAINABLE SATISFACTION effective campaigns that engage ENGAGEMENT PRACTICE = OUR PRIORITY audiences and meet the strategic objectives of ActivateUTS.

We have achieved Summary ActivateSocial UTS Sport The Terrace our vision when UTS is synonymous with The Marketing and Communications The restructure of the Marketing In addition to annual projects, new With the opening of the new excellence in the delivery team underwent a transformation and Communications team resulted campaigns were implemented for on-campus café, The Terrace, the of sporting and wellbeing in 2019, in people, processes and in an improvement in its ability to Women in Sport, High Performance Marketing and Communications programs, as easily as the focus. This transformation resulted provide support to ActivateSocial Sports, and Dance Workout. team created an entire new brand University is recognised for in the implementation of updated in both resource allocation as well Marketing and Communications and suite of assets. In addition, for its sports management and and detailed brand guidelines, as the ability to identify synergies have also reduced the number of the launch of the café, the Marketing sports science curricula. improved engagement with clients across campaigns run by other printed booklets and collateral and Communications team across ActivateUTS, innovative ActivateUTS teams. In addition to by almost 50% from the previous implemented multiple campaigns new campaigns and a re-focus on leading the marketing strategy for year to encourage traffic to the targeting various customer delivering content and experiences key events and club activities, the ActivateUTS website. This is also in segments and facilitated customer to meet student demand. Marketing and Communications line with ActivateUTS’ broader goal feedback via a pre-launch trial team delivered a fresh approach to to reduce waste and encourage with real customers and ongoing Brand Identity Update engaging students which resulted in sustainable practices throughout collection of feedback data. an improvement in conversion from the organisation. This year also saw Following consultation with internal event registration to attendance, a closer working collaboration with Haberfield Rowers Club stakeholders, a new consolidated and increased club memberships. a number of UTS departments such & Restaurant brand guideline was implemented. Year on year, the number of as Jumbunna and MCU, resulting in These new guidelines were created events where ActivateUTS has more awareness of UTS Sport and The Marketing and Communications to facilitate greater awareness of captured data has grown, and club its offerings to prospective athlete team supported the rebrand of ActivateUTS and greater recognition memberships have also increased. students. Support of these initiatives the UTS Haberfield Club, which of the ActivateUTS brand. A direct resulted in UTS Sport exceeding was led by the external agency, result of this brand project is the their Elite Athlete Program Zulu8. As part of this rebrand, a removal of 12 sub-brands and application targets. suite of new collateral and building replacing these sub-brands with the signage was rolled out, along with a ActivateUTS brand and identity. communications campaign to advise members of the change. Research to understand the Haberfield market was also undertaken with Deloitte, and insights from this research are expected to inform marketing strategy in 2020. 12 ActivateUTS Annual Report 2019 13

Marketing and Communications Digital Projects Digital Strategy and Roadmap In 2019 the Marketing and Communications team In 2019 the Marketing and Communications team implemented Clarizen, a project management tool to completed a comprehensive review of current manage project requests and allocate resources. This digital requirements. This involved workshops tool enabled the team to track project process and with each ActivateUTS team and documentation of provide informed estimates to clients on project delivery current processes, identification of platforms used ActivateUTS on-campus event ➞

➞ timelines. In 2019, the Marketing and Communications to complete these processes, identification of ActivateRetail products team completed the following for each client: opportunities for digitalisation and feedback on the current digital strategy. Departments/Business Units Projects Hours ActivateSocial 229 1088 The result of this review was the development of an UTS Sport 149 1341 updated digital strategy that focuses on: ActivateUTS Commercial 119 1054 1. Enriching the student experience ActivateUTS Corporate 84 871 2. Facilitating a holistic view of a student 3. Refined processes Capture of Customer Data 4. Collaboration across ActivateUTS teams and with UTS teams The implementation of the new ActivateUTS website 5. Business growth facilitated the capture of customer data including the below statistics, which has helped measure campaigns Importantly, this new strategy considers the student and provide insight into opportunities for improvement: experience and will enable centralised reporting, a holistic view of the student, and reduction in manual Growth 2019 data entry. from 2018

*1 Social Club memberships 12,672 +11.5% The key initiatives of this new strategy are: New user accounts 14,410 +29.6% Website event registrations 13,909 N/A*2 1. Digital governance Website page views 1,117,986 +13.3% 2. Website rebuild 3. CRM platform Website users 131,567 +30.8% 4. Tactical enhancements to existing systems The Loft & Underground ActivateRetail *1Sport Club Memberships are not taken through the ActivateUTS Website 5. Mobile app *2Data not recorded in 2018 6. Data driven marketing The Loft rolled out its successful monthly Bands Next A new online catalogue was launched for Retail, Door event, averaging about $5,000 worth in sales per supporting an awareness campaign for retail offerings. These initiatives will be delivered over the next five years. event. In addition to this regular event, Marketing and Data collected from this webpage will also inform the Communications also collaborated more closely with future development of an online shop. In addition, UTS’ internal communications team, 2ser and Hidden customer research was conducted via online surveys 2018 City Secrets to promote The Loft as a space for both and focus groups. This research will help inform the WEBSITE .3% students and the local community to casually hang out retail strategy for 2020 and enable the retail team to PAGE VIEWS 2019 1,117,986 +13 or hold a small event. This promotion resulted in an have a better understanding of student demands. increase in enquiries received by the Loft, leading to 2018 increased revenue from function bookings. Aerial UTS Function Centre WEBSITE .8% USERS 2019 131,567 +30 ActivateFit.Gym Marketing and Communications supported Aerial’s expansion of their vertical offering to undertake 2018 The promotion of the 3 Day Sale in 2019 saw a 12% management of The Terrace and Haberfield functions NEW USER .6% increase in revenue—which resulted in the most and catering offerings. Support was provided through ACCOUNTS 2019 14,410 +29 successful year yet for ActivateFit.Gym. In addition to specialised photo content for the promotion of their this, Marketing and Communications assisted with the meetings and events services, as well as the creation of a 2018 rollout of the monthly ongoing promotion of the 14 for consistent look and identity across ActivateUTS’ catering SOCIAL CLUB .5% 14 campaign. The campaign saw on average 150 sign and functions marketing collateral. MEMBERSHIPS 2019 12,672 +11 ups per month with a steady 25–30% conversion rate. 14 ActivateUTS Annual Report 2019 15

ActivateSocial % % ActivateSocial’s vision is to 49 55 56 CLUB INCREASED INCREASED create the most inclusive, safe EXECUTIVES POSTGRADUATE INTERNATIONAL COMPLETED STUDENT STUDENT and engaging campus culture in ACED PROGRAM ATTENDANCE AT ATTENDANCE AT the Australian higher education EVENTS EVENTS sector; one where students choose

UTS because it is ‘the’ university ActivateUTS Club Club Mentoring Discover Sydney community they aspire to belong to. Executive Program Program Program

The ActivateUTS Club Executive In 2019 more clubs than ever before Discover Sydney is targeted (ACED) Program is an optional introduced mentoring programs. towards international students, program that enables a students’ The programs run by clubs are a bringing those with similar interests club executive tenure to be fantastic opportunity for students to together through various events Summary recognised on their Australian learn more about what is happening around Sydney and establishing Higher Education Graduation on campus, meet new friends and networks and a community on The implementation of a digital strategy Student leaders reported development Statement (AHEGS) and is receive study support. Clubs that campus. In 2019, ActivateSocial allowed for data collection and analysis to in a range of graduate attributes in the completed by the end of the ran mentoring programs included assigned a dedicated staff member assist in refining our processes to ensure online survey. The top 3 skills identified calendar year. 49 Club Executives Women in Business, TechSoc, to coordinate the program to ActivateSocial is tailoring our offerings were teamwork & collaboration skills, completed the 2019 ACED Program, Society of Communications, assist students with easing into to the University’s leadership & people management a 14% increase from the previous Business Society and the Law University life. strategic goals in skills, and organising & coordinating year. Following feedback from Student Society which ran three We have achieved our vision addition to students’ skills. These skills were developed by the 2018 program participants, programs throughout the year. 26 Discover Sydney events were when we have created a campus interests and needs. 99%, 98% and 97% of student leaders ACED was further refined in run throughout 2019, engaging that is a deliberate destination, respectively. In summary, ActivateUTS 2019 to provide Executives with over 440 UTS students. 2019 saw an like ‘work’ and ‘home’, a physical In January 2019, is contributing to UTS’ strategic goals more relevant sessions and more increase of postgraduate student space where students feel the final report by providing opportunities for practice- accessible times. In order to engagement in the program from ‘anything is possible’ and regarding ActivateUTS’ oriented learning and developing cross- provide additional sessions, the 36% in 2018 to 44% in 2019. ActivateUTS is there to facilitate contribution towards cultural skills. ActivateUTS also supports ActivateSocial Clubs Team reached that sense of achievement. UTS students’ UTS students as they develop stronger out to externals and University Both the Club Mentoring Program graduate attributes, professional identities. Departments to assist in running and the Discover Sydney Program prepared by the UTS Business School, was the sessions. assisted ActivateSocial in providing published. The research findings indicate and facilitating a social campus that UTS student involvement in an activity culture to support new students facilitated by ActivateUTS contributes easing into University life. It is also significantly to graduate attribute hoped that in 2020, the longitudinal development, both directly and indirectly. study being completed by UTS The findings cover student leaders and Business School reveals the link regular members of ActivateUTS sporting between involvement in clubs and and social clubs. societies and reduced attrition rates at UTS. 16 ActivateUTS Annual Report 2019 17

ActivateSocial

2019 CLUB OF THE YEAR ➞ UTS Cyber Security Society

➞ .6% .4% 2019 VOLUNTEER OF THE YEAR 95 75 Matthew Choy 13,057 ACTIVATEUTS CLUB MEMBERSHIPS PURCHASED UTS STUDENTS LOCAL STUDENTS

24.3% 85.4% 15.2%

INTERNATIONAL UNDERGRADUATE POSTGRADUATE STUDENTS

O’Day 2019 City2Surf International Food Day 2019 Club Memberships 2019 Club of the Year 2019 Volunteer of the Year Held on Thursday 28th February Team UTS for City2Surf 2019 saw After reviewing the 2018 13,057 memberships (7,274 unique The UTS Cyber Security Society 2019, O’Day was a major success. the largest team since 2015 with International Food Day event, memberships) were purchased in was founded in June 2017 and Matthew Choy began volunteering Almost 5,000 Students pre- over 380 participants from the UTS ActivateSocial decided an after-dusk 2019, a 14.9% increase from 2018. quickly recruited 104 members in to develop his self-confidence, registered for O’Day and all Community. Team UTS took out session would be added for 2019 Of the total memberships, 95.6% their first year. In 2019 they grew improve his communication 3,500 backpacks were redeemed 1st place in the Corporate Teams to cater for students taking part in of members were UTS Students, their memberships to 280, with an skills and be more involved in his before 2pm on the event day. category by a margin of 15 minutes! Ramadan. The After-Dusk session 75.4% were local students, additional 100 students and public communities. Matthew now has ActivateSocial estimate over For the first time ever, ActivateSocial was held on Thursday 30th May, 24.3% were international, 84.5% also engaging with the society. a great passion to be involved in 10,000 students through the door. was able to secure a third marquee from 5pm to 7pm. This was the first were Undergraduate and 15.2% every opportunity that comes his on Bondi Beach for Team UTS time trialling the After-Dusk session Postgraduate. The society created an immensely way, both within UTS and the wider Summerfest 2019 members to enjoy the post-race and it was extremely successful with positive environment for their community. celebrations. over 700 plates of food handed out. 2019 Student members that fostered learning, Despite a venue change at short Engagement Across development and exploration In 2019, Matthew volunteered on notice, Summerfest 2019 was a Respect.Now.Always. Ride to UTS & Walk to UTS Events and Activities and provided regular workshops, campus with ActivateUTS, BUiLD, sold out event. The Underground Days seminars to further fuel self- UTS Careers and was also a Club and Towers Marketplace were In 2019 ActivateSocial continued to 2019 saw a total increase of 4.6% development in the area of Cyber Executive. Matthew not only transformed into an underground work closely with the University’s Previously, Ride and Walk to to 54,470 points of engagement. Security. volunteered within the University jungle. The venue reached peak Respect.Now.Always. (RNA) team UTS Days have seen mostly staff For events with registration but also with organisations such capacity between 6:30pm and to ensure that events are free of participation, until 2019 with both taken through the ActivateUTS In collaboration with FEIT, the as Starlight Foundation, Salvation 7:30pm. Performing artists did not sexual harassment and assault. events seeing a large increase in website 95.9% of registrants were Society delivered a credit-point Army, Defence Care and well-known disappoint with a jubilant crowd Incorporating the RNA program into student participation. Especially for UTS Students, 58.1% were local recognised Ethical Hacking Summer events such as Vivid and the Sydney in front of the main stage for the the department’s large-scale events Walk to UTS Day with 52 students students, 41.7% were International, Studio Subject to develop and fast Royal Easter Show. main headliners. not only assists the University with registered in 2019, in comparison 76.1% undergraduate and 23.8% track professional skills relating to educating students in this space but to only 8 students in 2018. Moving Postgraduate. security penetration testing. also ensures students feel safe when the event from a breakfast to attending ActivateUTS events. an afternoon tea made it more accessible for students. 18 ActivateUTS Annual Report 2019 19

UTS Sport UTS Elite Athlete Program

The UTS Elite and Emerging Athlete 11 students were selected to Program (UTS EAP) supported a represent UTS and Australia at UTS Sport’s vision is to be the total of 318 athletes in 2019, an the World University Games, leaders of University Sport in 18% increase from 2018 numbers. under the guidance of Chef de 293 were awarded in the February Mission and ActivateUTS CEO Australia; where sport includes elite, intake, and 25 in the Mid-Year intake. Elizabeth Morgan-Brett. 127 191 competitive, social, recreation and Of the 318, 127 were considered 318 Elite, and 191 Emerging level • Edward Goddard, Gabriella health, and where sport seamlessly athletes. O’Grady, Jye Perrott, Mason integrates with teaching, learning, Cohen & Sean Fitzsimmons The UTS EAP Housing Scholarships (Athletics) research and external engagement. were also awarded for the seventh • Nicholas Jeffree & Olivia time, to Genevieve Longman O’Rourke (Diving) 127: ELETE ATHLETES and Alice Williams, both in the • Antonia Zhang (Table Tennis) Australian Women’s Water Polo • Andy Pham (Taekwondo / 191: EMERGING LEVEL team. Both recipients received free Poomsae) ATHLETES We have achieved our vision accommodation at UTS Housing • Alice Williams & Genevieve when UTS is synonymous with for one year. Longman (Water Polo) excellence in the delivery of sporting and wellbeing programs, as easily as the University is recognised for its sports management and UTS Blues Sporting Awards of Excellence sports science curricula. The UTS Blues Sporting Awards of Excellence were held on the 27th November at Aerial UTS Function Centre.

HALF BLUE AWARD WINNERS FULL BLUE AWARD WINNERS SPORTS TEAM OF THE YEAR

Mason Cohen Athletics Gabriella O’Grady Athletics UTS Women’s 3x3 Basketball Team Jye Perrott Athletics Kristy Edwards Athletics Saskia Horley Cricket Baxter Holt Cricket SPORTS RECOGNITION AWARD Nicholas Jeffree Diving Jonathan Aspropotamitis Football Summary UTS High Performance Programs Richard Ridley UTS Handball Club Olivia O’Rourke Diving Tass Mourdoukoutass Football Bryany Parker Football Amy Parmenter Netball UTS Sport, comprising of Team UTS In 2019 UTS focused on entering several high performance teams in SERVICE TO SPORT AWARD Mathieu Cordier Football Brandon Quinn Rugby 7s and the UTS Elite Athlete Program competitions both locally and internationally. Henrik Goerges Handball Lachlan Anderson Rugby 7s Steve Lynch UTS Northside Futsal (UTS EAP), has provided the UTS Kelly Singleton Netball Ben O’Donnell Rugby 7s Club community with a wide range of • AON Women’s 7s • Futsal World Cup, Orlando Claire O’Brien Netball Daniel Alvaro Rugby League health and sporting opportunities at — in the inaugural season for UTS, — the Men’s and Women’s Futsal Grace Reid Rowing Ben Tudhope Para Snowboarding SPORTS CLUB OF THE YEAR both a social and competitive level. the team finished 6th overall. teams were given the opportunity Nick Lavery Rowing Genevieve Longman Water Polo to compete at the World Cup in UTS Balmain Water Polo Club Adelaide Scott Rowing In 2019 there was a focus on • FISU 3x3 World Cup the USA after winning the 2018 Joey Walton Rugby Union ROSS MILBOURNE ELITE ATHLETE building high performance sporting — the UTS Women’s 3x3 Nationals. Both teams finished SPORTSWOMAN OF THE YEAR John Cooley Sailing TRAVEL AWARD opportunities, as well as more Basketball team won Nationals, 3rd. Shaun Champion Swimming Gabriella O’Grady Athletics general social sporting programs. which gave them the chance to Genevieve Longman Water Polo Tomas Elliott Swimming The UTS EAP grew for the 8th year compete at the World Cup where Sebom Lee Swimming SPORTSMAN OF THE YEAR in a row, UTS excelled in intervarsity they made the quarter finals. SPORTS MANAGER OF THE YEAR Andy Pham Taekwondo sport, and UTS Sports Clubs Ben Tudhope Para Snowboarding Alice Williams Water Polo Joshua Wilson Surfing maintained the number of student members from previous years. 20 ActivateUTS Annual Report 2019 21

UTS Sport

Intervarsity Competitions

In 2019, UTS came third in the National University Championships, only behind Sydney University and the University of Queensland. As well as this, UTS finished with 26 teams in the top 3 in Australia, a record number. Of these teams, 9 teams won bronze, 9 silver, and 8 finished the year with National titles in the following sports: 26 UTS TEAMS Sports Programs FINISHED • Rugby 7s Men • Rowing Men In 2019, UTS Sport implemented a TOP 3 • Water Polo Men number of new programs, with the ActivateFit.Gym IN AUSTRALIA • 3x3 Basketball Women aim of engaging a different group of • Surfing Men student to usual. • Distance Running Men • Snowboard Women • The UTS Dance Workout program ActivateFit.Gym will be recognised was extremely successful, as the leading health and fitness UTS also won the Ann Mitchell Per engaging 128 students and Capita Trophy for Nationals Division 12 staff members. provider in the Sydney CBD, 1, an excellent result considering catering to UTS students, staff, UTS is one of the larger universities • The UTS Run Group engaged 126 competing. students and 8 staff members. corporate and public members.

In total, there were 558 students • The UTS Women In Sport engaged with intervarsity sport program engaged 131 students, ActivateFit.Gym had over 165,617 14 for 14 Campaign across 2019. in various sports sessions led by visits to the club throughout the UTS Sports Club representatives. year, including UTS students, staff, The 14 for 14 campaign was UTS Sport Clubs alumni, and the general public. Of introduced, offering new members There were also several social sport these, 1,142 students purchased a the chance to sign up for 14 days In 2019 UTS Sport managed competitions that were able to 1, 3, 6 or 12 month for $14 prior to purchasing a full 36 sports clubs, with the UTS be run around the Teaching and membership. membership. This was extremely ActivateFit.Gym will 8 Swimming and Squash Clubs Learning Timetable, Mixed Futsal, successful, with 1,089 individuals provide premium level closing down at the beginning Mixed Netball and 3x3 Basketball. This number signing up in the second half of NATIONAL facilities and services, of the year. Two 3x3 basketball gala days doesn’t include the year. exceptional customer TITLES and two World Cup Futsal gala the Health and focus and an inspiring and The UTS Sport Clubs network days were also held on weekends Wellbeing Initiative UFit welcoming environment. had 5,698 club members in 2019. throughout the year. in conjunction Of these, 2,514, or 44% were UTS with UTS Housing, ActivateFit.Gym also ran UFit, students. Post-graduate students retained which continued a free fitness program for novice their weekly booking for badminton for the third year and saw a further gym users, aimed at encouraging and UTS Housing also used the 1,995 students opt for a healthier UTS students to become 5,698 stadium on a regular basis. lifestyle with complimentary gym familiar with exercising in a gym membership as part of their UTS environment. 43 students took UTS SPORT 902 UTS students were engaged in Housing package. part in this program in 2019. CLUB MEMBERS social sporting programs in 2019. 22 ActivateUTS Annual Report 2019 23

ActivateUTS Commercial ActivateEat+Drink PLASTIC ActivateUTS Commercial’s vision is to deliver an Catering Bars excellent product and superior customer service The Terrace successfully opened in The Loft and The Underground FREE September 2019. A completely new performed well in 2019, with an COMPOSTABLE CUPS AND CONTAINERS to our community, whether they are internal or menu, an attractive, sleek industrial increase in sales of 4% and an external customers, students or staff. refit, and a prime space opening increase in surplus of 37%. The Bars onto Alumni Green positioned continued to support student clubs The Terrace as the premier café and societies and regularly hosted restaurant on-campus. The Terrace club events throughout the year. proved a popular spot for students and staff with a corresponding Comedy and Trivia evenings increase in lunch time customers continued in 2019 with students

and morning coffee trade. This returning each week to participate. 2019 new venue also offers catering ActivateUTS partnered with 2ser to services to the UTS community and promote Bands Next Door which is is available for private bookings. held fortnightly during semester and SUSTAINABLE STRONG The Upper Terrace opened in attracted UTS students and external ACTION AND PARTNERSHIP November 2019 to correspond with patrons. Bands Next Door provides BUSINESS WITH THE the opening of the new UTS Library a venue for young Sydney musicians MODEL UNIVERSITY in Building 2. to make a start. UTS student bands are sought out and encouraged to The Terrace implemented a perform by ActivateUTS Bars and % Summary sustainability model aligned with Social teams. the UTS initiative Plastic Free 2020 37 Commercial outlets delivered ActivateUTS Commercial worked and partnered with eco-friendly Weekly events were promoted on INCREASE IN SURPLUS AT THE BARS a 5% increase in sales and a 2% closely with the University during suppliers who share ActivateUTS ActivateUTS website, Facebook increase in surplus compared with 2019 on the Retail Masterplan which commitment to the environment. and Instagram and both bars saw the previous year. culminated in the successful launch Landfill waste has been significantly the benefits of these campaigns The high-quality sustainable This was driven of The Terrace, the premier café on reduced with the introduction of with growing attendance and products and services and by steady growth campus. This was quickly followed Vegware compostable cups and participation from students events delivered by ActivateUTS from the Aerial UTS by the opening of The Upper containers. throughout 2019. Commercial served the specific Function Centre, Terrace which services the new UTS needs of the UTS community and Bars and Retail. Library in Building 2. The Terrace has supported key The Respect.Now.Always. campaign enhanced the overall campus Sales increased by initiatives across campus including was supported in The Loft and The experience. ActivateUTS food and 7% at The Terrace All outlets provided support to Ride to UTS Day, Walk to UTS Day, Underground with information bar outlets provide a welcoming and Upper Terrace, ActivateUTS Clubs and Societies school visits and sustainability displayed within the venues. Staff environment for the UTS however, the gain and on-campus student events. initiatives. ActivateUTS catering uniforms showcased the UTS community to meet, socialise, in sales was not provided the free food offered to ‘Wanna Spoon’ project. and engage. reflected by an students at orientation events such LEADING increase in surplus, as Summerfest and Winterfest due to increased costs in labour and supported Student Clubs with SUPPORTER and training, and due to continued barbeques and catering. OF UTS STUDENT AND delays in opening. LOCAL MUSICIANS 24 ActivateUTS Annual Report 2019 25

ActivateUTS Commercial

Aerial UTS Function Centre 6.2% 7.5% INCREASE INCREASE IN SALES & IN SALES & INCOME INCOME AT AERIAL AT RETAIL NSW FINALIST MEETINGS AND EVENTS .5% % AUSTRALIA 8 20 AWARDS BEST INCREASE INCREASE IN SURPLUS IN SURPLUS VENUE AT AERIAL AT RETAIL (500 delegates and under)

Aerial UTS Function Centre ActivateRetail

Aerial continued to perform Additionally, the venue hosted ActivateRetail continued to provide efficiently, showing a 6.2% increase CampusLink, which is a three- a high level of customer service in sales and income, and an 8.5% day conference and trade show which was reflected in Mystery Shop increase in the surplus compared organised through the Tertiary scores of over 80% throughout to 2018. Accessory Group (TAG). The the year. This was also reflected in event hosted diverse industry increased sales of 7.5% compared to The venue was once again professionals responsible for 2018, and increased surplus of 20% recognised for its contribution to the delivery of student services compared to the prior year. the meetings and events industry and experiences on Australian by becoming finalist in the NSW campuses. This was the first New UTS branded memorabilia State category for the Meetings CampusLink hosted at a University was developed and introduced in and Events Australia Awards (MEA) campus since 2007. conjunction with UTS Marketing for Best Venue—500 delegates and and Communications Unit which under award. In October 2019 the Aerial team contributed to the sales increase by consolidated resources and meeting customer needs. The venue hosted significant events centralised the sales management for ActivateUTS including the for functions and events across The business continued to identify Annual Dinner and Blues Awards. Aerial, Haberfield Rowers Club and and reduce aged stock, resulting in Both events recognise and reward Restaurant and The Terrace. This an overall stock reduction of 20% the considerable contribution provided a simplified service for all when comparing December 2019 to students at UTS make through their clients and created an opportunity December 2018. involvement in ActivateUTS clubs to cross promote across the and societies and through their ActivateUTS Commercial portfolio. sporting achievements. 26 ActivateUTS Annual Report 2019 27

Workplace Health & Safely Staff Engagement

The Workplace Health & Safely (WHS) committee The ActivateUTS Staff Engagement Survey was People & Culture commenced in June 2019 with the focus being the conducted again in 2019 and provided valuable implementation of a safety management system to feedback for the betterment of the company. provide a systematic approach to managing the health and safety of the ActivateUTS workforce, supporting Across 2019, ActivateUTS staff had access to learning People and Culture’s vision is to attract legal compliance and improving the safety culture and and development opportunities and all managers and retain the best and brightest performance of the organisation. participated in a Leadership program to identify and assess their leadership styles along with the use of a 360 employees to ActivateUTS with a focus The other focus was to enhance overall staff wellbeing degree tool for direct reports and peers to comment on. on those who are committed to the by providing meaningful work, addressing workplace factors that may negatively affect wellbeing, and A range of qualification/registrations were completed organisation’s vision and its value of providing opportunities for staff to learn about and as follows: service excellence. apply healthy lifestyles choices at work. • RSA ActivateUTS participated in developing the UTS • First Aid Mental Health & Wellbeing strategy for students and • Licensee & Advanced Licensee staff. The focus of the workshops was identifying the • Manual Handling 2019 Achievements key needs for students and staff, what ActivateUTS is • Fire Warden currently doing in this space, and the key considerations • WHS ■ Gender Equity ■ Staff Turnover for implementing the strategy. • Food Safety Supervisor • Excel & Advanced Excel The Equal Opportunity for Women in the Workplace Following a good result in 2018, ActivateUTS has had Agency (EOWA) report for 2019, showed a very positive further reductions in voluntary staff turnover. The below Other conferences/training attended: trend towards the ActivateUTS gender equities with figures outline the rates compared with the Industry upward trends in women in management and senior numbers: • TAG Conference management areas. Some pleasing statistics from the • Cultural Awareness in the Workplace—Online report included: Industry program from SBS (Non-profit Sector) 16% • CFO Live—Financial Review a. The gender composition of the workforce ActivateUTS • Hospitality Leaders Conference overall is 54.5% females and 45.5% males Permanent 7.2% • Gain to Train and TRX Course—Gym • Business Writing b. The gender composition of managers is 66.7% • Global Cities After Dark Conference females and 33.3% males Industry (Hospitality) 50.74% • Listen Out Loud Event • Risk Management c. 72.7% of employees awarded promotions ActivateUTS Casual 29.7% • ASCA Level 1 were women and 27.3% were men • World of Business Ideas Conference • LSI Management Development Program d. 40.0% of all manager promotions were awarded to women e. 82.4% of all non-manager promotions were awarded to women

a. GENDER COMPOSITION OF b. GENDER COMPOSITION OF c. GENDER COMPOSITION OF d. GENDER COMPOSITION OF e. GENDER COMPOSITION OF WORKFORCE MANAGERS PROMOTIONS MANAGER PROMOTIONS NON-MANAGER PROMOTIONS FEMALES 54.5% FEMALES 66.7% FEMALES 72.7% FEMALES 40% FEMALES 82.4% MALES 45.5% MALES 33.3% MALES 27.3% MALES 60% MALES 17.6% 28 ActivateUTS Annual Report 2019 29

Directors’ Report For year ended 29 December 2019

1. Directors

The directors present their report together with the financial report of ActivateUTS (“the Company”) and of the Group, being the Company and its controlled entity, for the financial year ended 29 December 2019 and the auditor’s report thereon.

Emeritus Professor Peter Booth Ms Rohan Indra Financial Report Chair Student Director BEc (Sydney), GradDipEd (SydTeachColl), MEc (UNE), Appointed 7 October 2017 PhD (Griff), FCPA, FCA Resigned 6 October 2019 For year ended 29 December 2019 Appointed 1 March 2017 Ms Sabrina Ester Ulis Associate Professor Prabhu Sivabalan Student Director BBus (Hons) PhD Appointed 7 October 2017 University Staff Resigned 6 October 2019 Appointed 1 August 2014 Mr Lachlan Glenn McFall Ms Fiona Thomas Student Director BSC, MHRM&IR, GCCM Appointed 9 October 2018 University Staff Contents Appointed 3 January 2017 Ms Rebecca Chea Student Director Professor Anita Stuhmcke Appointed 9 October 2018 Directors’ Report 29 BA/LLB(Hons) MJuris(Hons) PhD University Staff Ms Deni-elle Colleen Hastings Lead Auditor’s Independence Declaration 32 Appointed 1 January 2017 Student Director Appointed 9 October 2018 Statements of Financial Position 33 Mr John Paul Chalmers Resigned 4 November 2019 BA Statements of Profit or Loss and 34 University Staff Mr Jinang Liu Other Comprehensive Income Appointed 7 October 2018 Student Director Appointed 4 November 2019 Statements of Changes in Members’ Funds 35 Ms Elizabeth Morgan-Brett Executive Masters in Business Mr Mohit Sewani Statements of Cash Flows 36 Administration Student Director Appointed 27 February 2012 Appointed 4 November 2019 Notes to the Financial Statements 37 Mr Thomas Miletich Ms Carisa Leela Mehra Directors’ Declaration 51 Student Director Student Director Appointed 23 March 2017 to 6 October 2017 Appointed 4 November 2019 Independent Auditor’s Report 52 Re-appointed 7 October 2017 Resigned 6 October 2019 Ms Rachael Chloe Chomik Student Director Ms Jessica Massih Appointed 4 November 2019 Student Director Appointed 7 October 2017 Resigned 6 October 2018 Re-appointed 9 October 2018 30 ActivateUTS Annual Report 2019 31

Directors’ Report cont. 3. Objectives and strategy 6. Events subsequent to reporting date

The broad objectives of the Company are to provide The outbreak of COVID-19 and the subsequent recreational, sporting, social and cultural programs and quarantine measures imposed by the Australian and activities for students and provide subsidies for student other governments as well as the travel and trade 2. Directors’ meetings clubs and societies. They also include providing food and restrictions imposed by Australia and other countries beverage and retail services to the student and campus in early 2020 have caused disruption to businesses and The number of directors’ meetings and number of meetings attended by each of the directors of the Company community. The long-term objectives encompass the economic activity. The Group considers this to be a non- during the financial year are: planning for and providing services infrastructure to adjusting post balance sheet event and accordingly the facilitate the delivery of programs and services; and financial effects of COVID-19 have not been reflected in BOARD MEETINGS AUDIT & RISK FINANCE COMMITTEE to ensure programs and services continue to remain the Group’s financial statements at 29 December 2019. relevant to the student and campus community. Director A B A B A B As the situation remains fluid (due to evolving changes Strategy employed to achieve the objectives of the in government policy and evolving business and Emeritus Professor Peter Booth 8 10 1 3 – – Company is based on fiscal responsibility with a priority customer reactions thereto) as at the date these financial Associate Professor 7 10 – – 8 10 towards achieving budgeted surpluses, thus enabling statements are authorised for issue, the directors of the Prabhu Sivabalan the organisation to continue to invest in capital and Group considered that the financial effects of COVID-19 Ms Fiona Thomas 6 10 – – – – expand funding for student services, while maintaining on the Group’s consolidated financial statements cannot an appropriate level of autonomy. The Company has also be reasonably estimated for future financial periods. Ms Elizabeth Morgan-Brett 8 10 – – 8 10 stringently adhered to the regulations of the Student However, the Directors consider that the general Services and Amenities Fee (SSAF) legislation. economic impacts arising from COVID-19 are expected Professor Anita Stuhmcke 7 10 3 3 – – to have a negative impact on substantially all of the Ms Jessica Massih 9 10 1 2 6 8 The Board identifies strategic direction in the delivery Group’s operations. Accordingly, the economic effects of student and campus services through an annual arising from the COVID-19 outbreak are expected to Mr Thomas Miletich 8 8 1 2 6 8 corporate plan that identifies a number of financial and materially affect the results of the Group for the year operational key performance indicators (KPIs). These 2020. As at report date, the Group has instituted major Mr Rohan Indra 6 8 2 2 – – KPIs are regularly reviewed by management to gauge the cost reductions mainly resulting from employee wages Ms Sabrina Ester Ulis 6 8 – – 6 8 performance of operations and ensure that the measures and operating expenses as the Group’s venues including adopted continue to be relevant in the changing university bars, ActivateFit and the UTS Haberfield Club Mr John Paul Chalmers 9 10 – – – – economic environment in which the Company operates. are now shut with no indications of reopening until further notice, with the Club kiosk and The Terrace being Ms Deni-Elle Colleen Hastings 4 8 – – – – 4. Principal objectives and performance open on a takeaway basis. Mr Lachlan Glenn McFall 7 10 – – 5 10 The principal activities of the Group during the No other matter or circumstance has occurred Ms Rebecca Chea 9 10 – – 7 8 course of the financial year were the provision of subsequent to year end that has significantly affected, or various member services to students and staff at the may significantly affect, the operations of the Group, the Ms Rachael hloe Chomik 2 2 – – 2 2 University of Technology Sydney, New South Wales. results of those operations or the state of affairs of the Mr Jinang Liu 2 2 – – 2 2 entity in subsequent financial years. There were no significant changes in the nature of Mr Mohit Sewani 2 2 – – 1 2 the activities of the Group during the year. 7. Lead auditor’s independence Ms Carisa Leela Mehra 2 2 – – 2 2 declaration The Group’s loss after tax for the year amounted to $17,787 (2018: $202,696 profit after tax). The Lead auditor’s independence declaration is set out A – Number of meetings attended on page 32 and forms part of the directors’ report for B – Number of meetings held during the time the director held office during the year 5. Membership the financial year ended 29 December 2019.

The Company is a company limited by guarantee This report is made with a resolution of the directors. and without share capital. In accordance with the constitution of the Company, every member of the Company undertakes to contribute an amount limited to $5 (2018: $5) per member in the event of the winding up of the Company during the period of membership or within one year thereafter. The Company has only one member, being the University of Technology Sydney. Emeritus Professor Peter Booth The total amount that the member of the Company is Dated at Sydney, 20 May 2020 liable to contribute if the Company is wound up is $5 (2018: $5). 32 ActivateUTS Annual Report 2019 33

Deloitte Touche Tohmatsu ABN 74 490 121 060 Grosvenor Place 225 George Street Sydney, NSW, 2000 Statements of Financial Position Australia as at 29 December 2019 Phone: +61 2 9322 7000 www.deloitte.com.au

CONSOLIDATED COMPANY

2019 2018 2019 2018 NOTE $ $ $ $ The Board of Directors ActivateUTS Tower Building 1 Assets University of Technology Cash and cash equivalents 5 5,659,105 7,505,959 5,265,605 6,880,559 Level 16, 15-79 Broadway

Ultimo NSW 2007 Trade and other receivables 5 1,329,930 579,375 1,307,087 596,468 Inventories 6 276,159 346,472 224,147 281,124

20 May 2020 Prepayments 155,360 157,901 150,187 151,392 Total current assets 7,420,554 8,589,707 6,947,026 7,909,543

Dear Board Members Trade and other receivables 5 – – 528,680 528,680 ActivateUTS Property, plant and equipment 7 12,749,538 11,640,052 12,669,245 11,543,726 In accordance with section Subdivision 60-C of the Australian Charities and Not-for-profits Commission Act Assets held for sale 7 52,020 – – – 2012, I am pleased to provide the following declaration of independence to the directors of ActivateUTS. Intangible assets 8 885,579 768,561 885,579 768,561 As lead audit partner for the audit of the financial statements of ActivateUTS for the financial year ended 29 Right-of-use assets 9 963,722 657,542 963,722 657,542 December 2019, I declare that to the best of my knowledge and belief, there have been no contraventions of: Total non-current assets 14,650,859 13,066,155 15,047,226 13,498,509

(i) the auditor independence requirements as set out in the Australian Charities and Not-for-profits Total assets 22,071,413 21,655,862 21,994,252 21,408,052 Commission Act 2012 in relation to the audit; and

(ii) any applicable code of professional conduct in relation to the audit. Liabilities

Trade and other payables 10 1,376,033 1,271,974 1,041,321 998,982 Yours sincerely, Employee benefits 11 371,457 343,851 324,414 302,200 Revenue received in advance 62,000 125,038 2,821 48,031 Lease liabilities — right-of-use assets 12 98,107 46,568 98,107 46,568 DELOITTE TOUCHE TOHMATSU Total current liabilities 1,907,597 1,787,431 1,466,663 1,395,781

Employee benefits 11 82,826 36,199 69,559 36,199

Lease liabilities — right-of-use assets 12 888,777 622,232 888,777 622,232

Cheryl Kennedy Total non-current liabilities 971,603 658,431 958,336 658,431 Partner Total liabilities 2,879,200 2,445,862 2,424,999 2,054,212 Chartered Accountant Net assets 19,192,213 19,210,000 19,569,253 19,353,840

Members’ funds

Liability limited by a scheme approved under Professional Standards Legislation. General funds 19,192,213 19,210,000 19,569,253 19,353,840

Member of Deloitte Asia Pacific Limited and the Deloitte Network. Total members’ funds 19,192,213 19,210,000 19,569,253 19,353,840 5 The notes on pages 37—50 are an integral part of these financial statements. 34 ActivateUTS Annual Report 2019 35

Statements of Profit or Loss and Statement of Changes in Other Comprehensive Income Members’ Funds for the year ended 29 December 2019 for the year ended 29 December 2019

CONSOLIDATED COMPANY CONSOLIDATED

2019 2018 2019 2018 GENERAL FUNDS TOTAL NOTE $ $ $ $ $ $

Revenue 13 19,034,939 17,890,644 16,035,591 14,722,624 Balance at 31 December 2017 18,936,438 18,936,438 Change in inventories of finished goods (78,192) 68,522 (67,881) 50,576 Total comprehensive income for the year Raw materials and consumables used (2,741,089) (2,699,064) (1,703,493) (1,657,932) Profit for the year 202,696 202,696 Board expenses (76,396) (75,328) (74,635) (70,817) Impact from AASB 1058 application 70,866 70,866 Personnel expenses 14 (8,914,271) (8,099,298) (7,217,824) (6,416,069) Other comprehensive income – – Cleaning expenses (528,442) (565,474) (407,668) (438,497)

Events and function expenses (717,747) (695,102) (703,332) (668,102) Balance at 30 December 2018 19,210,000 19,210,000 Grant expenses (2,099,220) (1,976,140) (2,099,220) (1,976,140) Balance at 30 December 2018 19,210,000 19,210,000 Loss on disposal of assets (43,673) (1,825) (43,673) (1,825)

Insurance expenses (84,898) (48,547) (84,898) (48,547) Total comprehensive income for the year Professional services expenses (119,992) (176,999) (108,663) (165,998) Profit for the year (17,787) (17,787) Promotions and publications expenses (319,168) (252,763) (319,168) (252,763) Other comprehensive income – – Property expenses (444,459) (498,057) (328,693) (384,521) Balance at 29 December 2019 19,192,213 19,192,213 Rent and rates expenses (11,282) (6,324) – (1,134)

Repairs and maintenance expenses (386,624) (294,296) (319,129) (247,805) COMPANY Depreciation and amortisation (1,442,123) (1,395,643) (1,392,585) (1,351,267) expense GENERAL FUNDS TOTAL $ $ Other expenses (1,142,117) (1,059,729) (1,042,631) (971,036) Results from operating activities (114,754) 114,577 122,098 120,749 Balance at 31 December 2017 19,081,413 19,081,413

Total comprehensive income for the year Interest income 128,999 115,142 125,347 107,835 Profit for the year 201,561 201,561 Interest expense (32,032) (27,023) (32,032) (27,023) Impact from AASB 1058 application 70,866 70,866 (Loss) / profit before income tax (17,787) 202,696 215,413 201,561 Other comprehensive income – –

Income tax expense 15 – – – – Balance at 30 December 2018 19,353,840 19,353,840 (Loss) / profit for the year (17,787) 202,696 215,413 201,561 Balance at 30 December 2018 19,353,840 19,353,840

Other comprehensive income – – – – Total comprehensive income for the year Total comprehensive (loss) / income Profit for the year 215,413 215,413 (17,787) 202,696 215,413 201,561 for the year Other comprehensive income – –

Balance at 29 December 2019 19,569,253 19,569,253

The notes on pages 37—50 are an integral part of these financial statements. The notes on pages 37—50 are an integral part of these financial statements. 36 ActivateUTS Annual Report 2019 37

Statements of Cash Flows Notes to the Financial Statements for the year ended 29 December 2019 for the year ended 29 December 2019

CONSOLIDATED COMPANY 1. Reporting entity (d) Use of estimates and judgements

2019 2018 2019 2018 ActivateUTS ( the Company ) is a reporting entity The preparation of consolidated financial statements in NOTE $ $ $ $ and a company limited by guarantee the University conformity with AASBs requires management to make of Technology Sydney, Level 16 Tower Building 1, 15 judgements, estimates and assumptions that affect the Broadway, Ultimo NSW 2007. The consolidated financial application of accounting policies and the reported Cash flows from operating activities statements of the Company as at and for the year amounts of assets, liabilities, income and expenses. ended 29 December 2019 comprise the Company and Actual results may differ from these estimates. Cash receipts from customers 20,282,380 19,635,418 16,950,216 16,212,131 its subsidiary (together referred to as the Group and individually as Group entities). Estimates and underlying assumptions are reviewed on Cash paid to suppliers and employees (19,450,797) (18,179,076) (15,968,606) (14,612,386) an ongoing basis. Revisions to accounting estimates are The Company is a not for profit entity, and the principal recognised in the period in which the estimate is revised Cash from operations 831,583 1,456,342 981,610 1,599,745 activities of the Group during the course of the financial and in any future periods affected. year were the provision of various member services to Interest received 128,999 115,142 125,347 107,835 students and staff at University of Technology Sydney, Information about critical judgements in applying New South Wales. accounting policies that have the most significant effect Net cash flows provided by on the amounts recognised in the financial statements 960,582 1,571,484 1,106,957 1,707,580 operating activities 2. Basis of preparation and assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment (a) Statement of compliance within the next financial year, are included in the notes to Cash flows from investing activities the consolidated financial statements. Proceeds from sale of property, The consolidated financial statements are tier 2 general 30,298 – 30,298 – plant and equipment purpose financial statements which have been prepared (e) New or amended Accounting Standards and in accordance with Australian Accounting Standards— Interpretations adopted Acquisition of property, plant (2,710,624) (1,170,595) (2,625,099) (1,170,595) and equipment and intangible assets Reduced Disclosure Regime (AASBs) adopted by the Australian Accounting Standards Board (AASB), the The Group has adopted all of the new or amended Net cash flows used in (2,680,326) (1,170,595) (2,594,801) (1,170,595) investing activities Australian Charities and Not-for-profits Commission Act Accounting Standards and Interpretations issued by the 2012, the Corporations Act 2001 and the Registered Australian Accounting Standards Board (‘AASB’) that are Clubs Amendment Act 2006. mandatory for the current reporting period.

Cash flows from financing activities ASIC Class order 10/654 Inclusion of parent entity The accounting policies set out below have been Interest paid (32,032) – (32,032) – financial statements in financial reports has been applied consistently to all periods presented in these applied to permit the inclusion of parent entity financial consolidated financial statements and have been Repayments of lease liabilities (95,078) (46,568) (95,078) (46,568) statements in the consolidated financial report. applied consistently by Group entities.

Net cash flows used in The consolidated financial statements were approved by (f) Going concern (127,110) (46,568) (127,110) (46,568) financing activities the Board of Directors on 20 May 2020. As disclosed in Note 19, as at the date of this report the Net increase/(decrease) in cash and (b) Basis of measurement outbreak of COVID-19 and the subsequent quarantine (1,846,854) 354,321 (1,614,954) 490,417 cash equivalents measures imposed by the Australian government have Cash and cash equivalents at The consolidated financial statements have been resulted in University campus restrictions, including the 7,505,959 7,151,638 6,880,559 6,390,142 beginning of year prepared on the historical cost basis. closure of ActivateUTS venues. These measures have impacted the Group‘s ability to trade until such time that Cash and cash equivalents 4 5,659,105 7,505,959 5,265,605 6,880,559 at end of year (c) Functional and presentation currency the restrictions are lifted.

These consolidated financial statements are presented Whilst the Directors have prepared a cash flow forecast in Australian dollars, which is the Group’s functional for the year ended 31 December 2020, at this time it is currency. difficult to reliably estimate the magnitude of the

The notes on pages 37—50 are an integral part of these financial statements. 38 ActivateUTS Annual Report 2019 39

Notes to the Financial Statements cont.

2. Significant accounting policies (continued) The Group derecognises a financial asset when the Cash and cash equivalents (ii) Subsequent costs (f) Going concern (continued) contractual rights to the cash flows from the asset expire, Cash and cash equivalents comprise cash balances Subsequent expenditure is capitalised only when it is or it transfers the rights to receive the contractual cash and call deposits with maturities of three months or probable that the future economic benefits associated financial impact of COVID19. The Group had cash assets flows on the financial asset in a transaction in which less from the acquisition date that are subject to an with the expenditure will flow to the Group. Ongoing of $5,659,105 (2018: $7,505,959) which are sufficient to substantially all the risks and rewards of ownership of insignificant risk of changes in their fair value, and repairs and maintenance are expensed as incurred. extinguish liabilities of $2,879,200 (2018: $2,445,862) the financial asset are transferred. A financial liability are used by the Group in the management of its as at 29 December 2019, and the Group has instituted is derecognised when it is extinguished, discharged, short-term commitments. (iii) Depreciation major cost reductions mainly resulting from employee cancelled or expires. Items of property, plant and equipment are wages and operating expenses. As at 31 March 2020 Impairment of financial assets depreciated from the date that they are installed the Group had cash assets of $4.2m, and the Group Classification of financial assets The Group has applied the simplified approach to and are ready for use. has received an undertaking from the University of measuring expected credit losses, which uses a lifetime Technology, Sydney to provide funding of $2,500,000 Initial measurement of financial assets expected loss allowance. To measure the expected Depreciation is calculated to write off the cost of during the year. Financial assets are measured at initial recognition at credit losses, trade receivables have been grouped property, plant and equipment less their estimated their fair value plus, for financial assets not subsequently based on days overdue. residual values using the straight-line basis over their Having regard to these factors, notwithstanding the measured at fair value through profit or loss, transaction estimated useful lives. Depreciation is generally uncertainty surrounding when restrictions may be costs that are directly attributable to the acquisition Other financial liabilities recognised in profit or loss, unless the amount is lifted, the directors are of the opinion that the basis of of the financial asset. Trade receivables that do not included in the carrying amount of another asset. preparation upon which the financial report is presented have a significant financing component are not initially Other financial liabilities, including borrowings, are is appropriate in the circumstances. measured at fair value, rather they are initially measured initially measured at fair value, net of transaction costs. The estimated useful lives for the current and at their transaction price. Other financial liabilities (which include trade and comparative years of significant items of property, plant 3. Significant accounting policies other payables, and other payables) are subsequently and equipment are as follows: Subsequent Initial measurement of financial assets measured at amortised cost using the effective interest The accounting policies set out below have been Subsequent to initial recognition, financial assets are method, with interest expense recognised on an • Plant and equipment 2—10 years applied consistently to all periods presented in these either measured at: effective yield basis. consolidated financial statements, and have been • Leasehold improvements 8—40 years applied consistently by Group entities. • Amortised cost (c) Property, plant and equipment Depreciation methods, useful lives and residual values (a) Basis of consolidation • Fair value through profit or loss (i) Recognition and measurement are reviewed at each reporting date and adjusted if Items of property, plant and equipment are measured appropriate. (i) Subsidiary Except for financial assets that are designated at initial at cost less accumulated depreciation and accumulated Subsidiaries are entities controlled by the Company. recognition as fair value through profit or loss, a financial impairment losses. (d) Inventories The result and cash flows of the sole subsidiary are asset is classified on the basis of both: included in the consolidated financial statements of Cost includes expenditure that is directly attributable to Inventories are measured at the lower of cost and net the Group from the date that control commences until • the Group’s business model for managing the the acquisition of the asset. The cost of self-constructed realisable value. The cost of inventories is based on the date that control ceases. The subsidiary’s financial financial asset; and assets includes the cost of materials and direct labour, the first-in first-out principle, and includes expenditure position is consolidated with that of the Company at the any other costs directly attributable to bringing the incurred in acquiring the inventories and bringing them reporting date. • the contractual cash flow characteristics of the assets to a working condition for their intended use, to their existing location and condition. financial asset the costs of dismantling and removing the items (ii) Transactions eliminated on consolidation and restoring the site on which they are located and Net realisable value is the estimated selling price in Intra-group balances and transactions, and any (i) Amortised cost and effective interest method capitalised borrowing costs. Purchased software that is the ordinary course of business, less the estimated unrealised income and expenses arising from intra- The effective interest method is a method of calculating integral to the functionality of the related equipment is costs of completion and estimated costs necessary group transactions, are eliminated in preparing the the amortised cost of a debt instrument and of allocating capitalised as part of that equipment. to make the sale. consolidated financial statements. interest income over the relevant period. When parts of an item property, plant and equipment (e) Impairment (b) Financial instruments (ii) Financial assets at fair value through profit or loss have different useful lives, they are accounted for as (FVTPL) separate items (major components) of property, plant (i) Non-financial assets Financial assets and financial liabilities are recognised Financial assets at FVTPL are measured at fair value at and equipment. The carrying amounts of the Group’s non-financial initially on the date at which the Group becomes a party the end of each reporting period, with any fair value assets, other than inventories, are reviewed at each to the contractual provisions of the instrument. gains or losses recognised in profit or loss. The net gain Any gain or loss on disposal of an item of property, plant reporting date to determine whether there is any or loss recognised in profit or loss includes any dividend and equipment (calculated as the difference between indication of impairment. If any such indication exists, or interest earned on the financial asset and is included the net proceeds from disposal and the carrying amount then the asset’s recoverable amount is estimated. An in the ‘other gains and losses’ line. of the item) is recognised in profit or loss. impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. 40 ActivateUTS Annual Report 2019 41

Notes to the Financial Statements cont.

3. Significant accounting policies (continued) (iii) Short-term employee benefits of equipment and facilities in the furthering of those or termination option. When the lease liability is (e) Impairment (continued) Short-term employee benefit obligations are measured activities. From time to time grants are made by the remeasured in this way, a corresponding adjustment is (i) Non-financial assets (continued) on an undiscounted basis and are expensed as the University of Technology Sydney (the university) as made to the carrying amount of the right-of-use asset, related service is provided. A liability is recognised for contribution to the supply of infrastructure and facilities or is recorded in profit or loss if the carrying amount The recoverable amount of an asset or CGU is the the amount expected to be paid under short-term cash specific to the use of ActivateUTS and associated entities. of the right-of-use asset has been reduced to zero. greater of its value in use and its fair value less costs to bonus or profit-sharing plans if the Group has a present Lease payments of a variable or contingent nature are sell. Depreciated replacement cost is used to determine legal or constructive obligation to pay this amount as a (i) Lease payments expensed when incurred. value in use. Depreciated replacement cost is the current result of past service provided by the employee and the replacement cost of the item less, where applicable, obligation can be estimated reliably. Group as a lessee Group as lessor accumulated depreciation to date, calculated on the At inception of a contract, the Group assesses whether Rental income from operating leases is recognised on basis of such cost. For the purpose of impairment (g) Revenue a contract is, or contains, a lease based on whether a straight line basis over the term of the relevant lease. testing, assets that cannot be tested individually are the contract conveys the right to control the use of grouped together into the smallest group of assets that (i) Goods sold and services rendered an identified asset for a period of time in exchange (j) Interest income generates cash inflows from continuing use that are Revenue from the sale of goods comprises revenue for consideration. The Group has elected to apply largely independent of the cash inflows of other assets earned from the provision of food, beverage and the practical expedient to account for each lease Interest income on funds invested is recognised or CGUs. other goods. It is measured at the fair value of the component and any non-lease components as a single as it accrues in profit or loss, using the effective consideration received or receivable and is recognised lease component. interest method. Impairment losses are recognised in profit or loss. in profit or loss as performance obligation is satisfied Impairment losses recognised in respect of CGUs are over time as the customers simultaneously receive and Right-of-use assets (k) Tax allocated to reduce the carrying amounts of the assets consume the benefit. The Group recognises a right-of-use asset and a lease in the unit (group of units) on a pro rata basis. liability at the lease commencement date. The right- The Company is not liable for tax as it is a tax exempt Revenue from services rendered comprises revenue of-use asset is initially measured based on the initial charitable entity and as such incurs no liability to pay Impairment losses recognised in prior periods are from gaming facilities together with other services to amount of the lease liability adjusted for any lease tax, however not all entities in the Group are exempt. assessed at each reporting date for any indications members and patrons of the Group. It is measured at the payments made at or before the commencement date, Tax expense comprises current and deferred tax. that the loss has decreased or no longer exists. fair value of the consideration received or receivable and plus any initial direct costs incurred and an estimate Current tax and deferred tax are recognised in profit An impairment loss is reversed if there has been is recognised in profit or loss as performance obligation of costs to dismantle and remove the underlying or loss except to the extent that it relates to a business a change in the estimates used to determine the is satisfied over time as the customers simultaneously asset less any lease incentives received. The assets combination, or items recognised directly in members recoverable amount. An impairment loss is reversed receive and consume the benefit. are depreciated to the earlier of the end of the useful funds or in other comprehensive income. only to the extent that the asset’s carrying amount life of the right-of-use asset or the lease term using does not exceed the carrying amount that would have No revenue is recognised if there are significant the straight-line method as this most closely reflects (i) Current tax been determined, net of depreciation or amortisation, uncertainties regarding recovery of the consideration the expected pattern of consumption of the future Current tax is the expected tax payable or receivable if no impairment loss had been recognised. due, the costs incurred or to be incurred cannot be economic benefits. on the taxable income or loss for the year, using tax measured reliably, there is a risk of return of the goods rates enacted or substantively enacted at the reporting (f) Employee benefit or there is continuing management involvement with The lease term includes periods covered by an option date, and any adjustment to tax payable in respect of the goods. to extend if the Group is reasonably certain to exercise previous years. (i) Defined contribution plans that option. In addition, the right-of-use assets are A defined contribution plan is a post-employment (ii) University allocated Student Services Amenities Fees periodically reduced by impairment losses, if any, (ii) Deferred tax benefit plan under which an entity pays fixed The fee is measured at the fair value of the consideration and adjusted for certain remeasurements of the Deferred tax is recognised in respect of temporary contributions into a separate entity and will have no received and is recognised in profit or loss on receipt. lease liability. differences between the carrying amounts of assets legal or constructive obligation to pay further amounts. and liabilities for financial reporting purposes and the Obligations for contributions to defined contribution (iii) Fees—university contribution Lease liabilities—right-of-use assets amounts used for taxation purposes. Deferred tax is plans are recognised as an employee benefit expense Contributions from the University of Technology Sydney The lease liability is initially measured at the present not recognised for temporary differences on the initial in profit or loss in the periods during which services are are measured at the fair value of the consideration value of the lease payments that are not paid at the recognition of assets or liabilities in a transaction that rendered by employees. received and recognised in profit or loss on receipt. commencement date, discounted using the interest is not a business combination and that affects neither rate implicit in the lease or, if that rate cannot be readily accounting nor taxable profit or loss. (ii) Other long-term employee benefits (iv) Other revenue determined, the Group’s incremental borrowing rate. The Group’s net obligation in respect of long-term Other revenue comprises rent and room hire, Generally, the Group uses its incremental borrowing Deferred tax is measured at the tax rates that are employee benefits is the amount of future benefit that sponsorships and student program contributions. rate as the discount rate. The lease liability is measured expected to be applied to temporary differences employees have earned in return for their service in the at amortised cost using the effective interest method. when they reverse, based on the laws that have been current and prior periods plus related on-costs; that (h) Grant expenses It is remeasured when there is a change in future enacted or substantively enacted by the reporting date. benefit is discounted to determine its present value, lease payments arising from a change in an index or Deferred tax assets and liabilities are offset if there is a and the fair value of any related assets is deducted. Grants are made to Clubs, Societies and individual rate, if there is a change in the Group’s estimate of the legally enforceable right to offset current tax liabilities The discount rate is the yield at the reporting date students to assist with the pursuit of their sporting and amount expected to be payable under a residual value and assets, and they relate to income taxes levied by on government bonds that have maturity dates cultural activities. In addition, they are also provided, guarantee, or if the Group changes its assessment the same tax authority on the same taxable entity, or on approximating the terms of the Group’s obligations. where financial assistance is required, for the provision of whether it will exercise a purchase, extension different tax entities, but they intend to settle current tax 42 ActivateUTS Annual Report 2019 43

Notes to the Financial Statements cont.

3. Significant accounting policies (continued) • the intention to complete the intangible asset and CONSOLIDATED COMPANY (k) Tax (continued) use or sell it; (ii) Deferred tax (continued) 2019 2018 2019 2018 • the ability to use or sell the intangible asset; $ $ $ $ liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. • how the intangible asset will generate probable 4. Cash and cash equivalents future economic benefits; A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the • the availability of adequate technical, financial and Bank balances 1,341,346 1,507,772 960,846 915,203 extent that it is probable that future taxable profits will other resources to complete the development and be available against which they can be utilised. Deferred to use or sell the intangible asset; and Call deposits 4,286,986 5,953,767 4,286,986 5,953,767 tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that • the ability to measure reliably the expenditure Cash on hand 30,773 44,420 17,773 11,589 the related tax benefit will be realised. attributable to the intangible asset during its Cash and cash equivalents in development. 5,659,105 7,505,959 5,265,605 6,880,559 the statement of cash flows The Income tax Assessment Act 1997 (amended) provides that under the concept of mutuality, the The amount initially recognised for internally generated controlled entity, UTS Haberfield Club, is only liable for intangible assets is the sum of the expenditure incurred 5. Trade and other receivables income tax on income derived from non-members and from the date when the intangible asset first meets the from outside entities. recognition criteria listed above. Where no internally generated intangible asset can be recognised, Current development expenditure is recognised in profit or (l) Goods and services tax Trade receivables 1,189,565 455,116 1,169,961 453,981 loss in the period in which it is incurred. Revenue, expenses and assets are recognised net of the Due from UTS Haberfield Club – – 426 41,157 amount of goods and services tax (GST), except where Subsequent to initial recognition, internally generated the amount of GST incurred is not recoverable from the intangible assets are reported at cost less accumulated Other receivables 140,365 124,259 136,700 101,330 taxation authority. In these circumstances, the GST is amortisation and accumulated impairment losses, on recognised as part of the cost of acquisition of the asset the same basis as intangible assets that are acquired or as part of the expense. separately. 1,329,930 579,375 1,307,087 596,468

Receivables and payables are stated with the amount of The following estimated useful lives are used in the Non-Current GST included. The net amount of GST recoverable from, calculation of amortisation: or payable to, the ATO is included as a current asset or Due from UTS Haberfield Club – – 528,680 528,680 liability in the statement of financial position. • ActivateUTS website 7 years – – 528,680 528,680 Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows The movement in the allowance for impairment in respect of trade and arising from investing and financing activities which are other receivables during the year was as follows: recoverable from, or payable to, the ATO are classified as operating cash flows. Impairment

(m) Intangible assets Balance at beginning of year 92,759 97,417 17,120 34,931

Expenditure on research activities is recognised as an Allowance for expected credit losses (7,156) (17,811) (7,156) (17,811) expense in the period in which it is incurred. Balance at end of year 85,603 79,606 9,964 17,120 An internally generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the 6. Inventories following conditions have been demonstrated:

• the technical feasibility of completing the intangible Finished goods — at cost 276,159 346,472 224,147 281,124 asset so that it will be available for use or sale; 44 ActivateUTS Annual Report 2019 45

Notes to the Financial Statements cont.

7. Property, plant and equipment

Leasehold Plant and Work in CONSOLIDATED COMPANY CONSOLIDATED Artworks Total Improvements Equipment Progress 2019 2018 2019 2018 $ $ $ $ $ $ $ $ $

Gross carrying amount Balance at 30 December 2018 13,801,532 5,094,340 407,705 98,128 19,401,705 8. Intangible assets

Additions 186,126 576,855 1,752,570 – 2,515,551 ActivateUTS website — at cost 546,384 546,384 546,384 546,384 Internal transfers 1,630,680 176,821 (1,807,501) – – Less: accumulated amortisation (138,097) (60,042) (138,097) (60,042) Disposals (1,213,312) (336,913) – – (1,550,225) Balance at 29 December 2019 14,405,026 5,511,103 352,774 98,128 20,367,031 Work in progress 477,292 282,219 477,292 282,219

885,579 768,561 885,579 768,561 Depreciation Balance at 30 December 2018 4,771,928 2,989,725 – – 7,761,653 Disposals (1,213,312) (262,946) – – (1,476,258) 9. Right-of-use assets Depreciation expense 756,612 523,466 – – 1,280,078 Right-of-use assets 1,077,172 688,345 1,077,172 688,345 Balance at 29 December 2019 4,315,228 3,250,245 – – 7,565,473 Less: Accumulated amortisation (113,450) (30,803) (113,450) (30,803) Carrying amounts As at 30 December 2018 9,029,604 2,104,615 407,705 98,128 11,640,052 963,722 657,542 963,722 657,542 As at 29 December 2019 (i) 10,089,798 2,260,858 352,774 98,128 12,801,558 10. Trade and other payables Leasehold Plant and Work in COMPANY Artworks Total Improvements Equipment Progress Current $ $ $ $ $ Trade payables 386,900 282,588 234,602 190,888 Gross carrying amount Other payables and accrued expenses 971,541 955,853 789,127 774,561 Balance at 30 December 2018 13,801,532 4,794,790 407,705 98,128 19,102,155 Additions 186,126 491,330 1,752,570 – 2,430,026 Due to UTS Rowing Club 17,592 33,533 17,592 33,533

Internal transfers 1,630,680 176,821 (1,807,501) – – 1,376,033 1,271,974 1,041,321 998,982 Disposals (1,213,312) (336,913) – – (1,550,225) Balance at 29 December 2019 14,405,026 5,126,028 352,774 98,128 19,981,956 11. Employee benefits Depreciation Current Balance at 30 December 2018 4,771,928 2,786,501 – – 7,558,429 Disposals (1,213,312) (262,946) – – (1,476,258) Liability for annual leave 305,623 282,898 258,580 241,248

Depreciation expense 756,612 473,928 – – 1,230,540 Liability for long service leave 65,834 60,953 65,834 60,952 Balance at 29 December 2019 4,315,228 2,997,483 – – 7,312,711 371,457 343,851 324,414 302,200 Carrying amounts As at 30 December 2018 9,029,604 2,008,289 407,705 98,128 11,543,726 Non-current As at 29 December 2019 10,089,798 2,128,545 352,774 98,128 12,669,245 Liability for long service leave 82,826 36,199 69,559 36,199

(i) The directors have determined that the Club will no longer engage in gaming activities and therefore have decided that the Club’s poker machines will be sold. The written down value of plant and equipment includes the amount of $52,020 in relation to the poker machines which are held for sale. 46 ActivateUTS Annual Report 2019 47

Notes to the Financial Statements cont.

CONSOLIDATED COMPANY CONSOLIDATED COMPANY

2019 2018 2019 2018 2019 2018 2019 2018 $ $ $ $ $ $ $ $

12. Lease liabilities — right-of-use assets 15. Income tax expense

Current Numerical reconciliation between tax expense and pre-tax accounting profit Proportion of net taxable income Lease liabilities — right-of-use assets 98,107 46,568 98,107 46,568 1,221,854 1,809,883 – – to non-members Less: Proportion of expenses attributable Non-current (1,294,443) (1,798,364) – – to non-members Lease liabilities — right-of-use assets 888,777 622,232 888,777 622,232 (72,589) 11,519 – –

The Company leases the land on which its controlled entity operates under non-cancellable operating leases. These leases with Inner West Council and Roads and Maritime Services include term end environmental Add: Other taxable income 23,316 36,024 – – remediation clauses. At this time, the directors consider the risk of significant expenses arising as a result of Less: Other deductible expenses (138,756) (135,178) – – the remediation clauses to be remote. Net income subject to tax (188,029) (87,635) – – Reconciliation of lease liabilities (current and non-current) at the beginning and end of financial year are set out below: Income tax expense using the Company’s (51,708) (26,291) – – statutory income tax rate of 27.5% (2018: 30%) Balance as at 1 Jan 2019 668,800 Additions 381,130 Unrecognised tax losses reversed 51,708 26,291 – – Repayment of the lease (95,078) – – – – Interest 32,032 986,884 Estimated deferred tax assets have not been recognised in respect of the following items:

Unrecognised deferred tax assets 13. Revenue Deductible temporary differences 8,810 13,023 – –

Sale of goods 9,591,281 9,401,969 6,456,674 6,130,055 Tax losses 253,489 220,125 – –

ActivateUTS allocated SSAF* collected by UTS 5,460,636 5,411,099 5,460,636 5,411,099 262,299 233,148 – –

Rendering of services 1,573,672 1,512,264 1,477,250 1,392,155 The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax Fees — University contribution 910,219 211,876 910,219 211,876 assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the entity can utilise the benefits from. Other revenue 1,499,131 1,353,436 1,730,812 1,577,439

Total revenue 19,034,939 17,890,644 16,035,591 14,722,624 16. Operating leases *Student Services & Amenities Fees Leases as lessor 14. Personal expenses Non-cancellable operating lease rentals are receivable as follows:

Wages and salaries 6,903,354 6,442,154 5,461,563 5,052,690 Less than one year 119,320 150,671 119,320 150,671

Other associated personnel expenses 1,253,546 1,081,816 1,105,392 920,402 Between two to five years 101,578 220,898 101,578 220,898 Contributions to defined contribution 220,898 371,569 220,898 371,569 683,137 591,124 555,663 461,136 superannuation funds Movement in liability for annual leave 22,725 (1,047) 17,332 (3,411) Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount Movement in liability for long service leave 51,509 (14,748) 38,242 (14,748) of the leased asset and recognised on a straight-line basis over the lease term.

8,914,271 8,099,298 7,178,192 6,416,069 48 ActivateUTS Annual Report 2019 49

Notes to the Financial Statements cont.

CONSOLIDATED COMPANY CONSOLIDATED COMPANY

2019 2018 2019 2018 2019 2018 2019 2018 $ $ $ $ $ $ $ $

17. Capital and other commitments 19. Related parties (continued) Balances with related parties As at 29 December 2019, the Group had no capital commitments (2018: Nil). Aggregate amounts receivable from or payable to, each class of related party at reporting date:

18. Contingent assets and contingent liabilities Current receivables Entity that exerts significant influence 977,657 195,138 977,657 195,138 There are no contingent assets in existence at the reporting date. The Group and the Company has the following contingent liabilities at the reporting date: Non-current receivables Bank guarantees 25,000 25,000 25,000 25,000 Controlled entity – – 528,680 528,680

The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable Current receivables that a future sacrifice of economic benefits will be required, or the amount is not capable of reliable measurement. Controlled entity – – 426 41,157

19. Related parties Current payables Entity that exerts significant influence 45,465 31,557 45,465 31,557 Key management personnel compensation The compensation received by non-executive key management personnel included in other expenses is as follows: Transactions with related parties

Director honoraria 10,500 10,500 10,500 10,500 (i) University of Technology Sydney Throughout the year, revenue is derived from and expenses incurred from the University of Technology Sydney. The compensation received by executive key management personnel is as follows: These transactions are on the same terms and conditions as those entered into by any other entity or individual. Short and long term employee benefits 523,439 266,249 523,439 266,249 Aggregate amounts brought to account from transactions with the University of Technology Sydney are:

Key management personnel transactions and balances Staff fees contribution revenue – 20,001 – 20,001 From time to time, key management personnel of the Company, or their related entities, may purchase goods and services from the Company. These purchases are on the same terms and conditions as those entered into by third Management fee — Ross Milbourne sports hall 175,506 191,875 175,506 191,875 parties and are trivial or domestic in nature. Total fees — university contribution 175,506 211,876 175,506 211,876

Apart from the details disclosed in this note, no other key management personnel has transacted with the ActivateUTS allocated SSAF collected by UTS 5,460,636 5,411,099 5,460,636 5,411,099 Company since the end of the previous financial year and there were no outstanding balances involving key management personnel’s interests existing at year-end. Functions revenue 1,611,616 1,214,030 1,611,616 1,214,030

Other related party transactions Head licence agreement The Company has related party relationships with: ActivateUTS operates under a Head licence Agreement (HLA), which is a legal agreement between ActivateUTS (licensee) and the University of Technology Sydney (licensor) that confirms the spaces and uses of ActivateUTS on • The University of Technology Sydney (entity that exerts significant influence as the sole member the university campus. The HLA was in effect until 31 May 2018, and ActivateUTS extended the licence for a period of the Company) of 5 years (rolling).

• UTS Haberfield Club Limited (controlled entity) Within the HLA are clauses that outline the responsibilities of both parties, should there be a need to relocate ActivateUTS spaces and facilities. The licensor must pay the actual and reasonable fit out costs of the licensee and any approved sub licensees of the licensee to the extent that such costs relate directly to the relocation. Further, the licensor must compensate the licensee for the depreciated value of the asset that would be written off as a loss as a consequence of the licensee’s relocation. 50 ActivateUTS Annual Report 2019 51

Notes to the Financial Statements cont. Directors’ Declaration 19. Related parties (continued) for the year ended 29 December 2019 Transactions with related parties (continued)

In the opinion of the directors of ActivateUTS (the Company): (ii) UTS Haberfield Club Limited UTS Haberfield Club operates the Club premises at Dobroyd Parade, Haberfield under a licence agreement with (a) The financial statements and notes that are set out on pages 33 to 50 are in accordance with the ActivateUTS. ActivateUTS leases the land from Inner West Council and Roads and Maritime Services and has Australian Charities and Not-for-profits Commission Act 2012 including: constructed the premises occupied by the Club (see Note 11). The licence fee, which is variable based on the performance of the Club, is included in the management fee income (2018: $Nil). (i) Giving a true and fair view of the Company’s and the Group’s financial position as at 29 December 2019 and of their performance for the financial year ended on that date; and Aggregate amounts brought to account from transactions with the subsidiary are:

2019 2018 (ii) Complying with Australian Accounting Standards—Reduced Disclosure Requirements and $ $ the Australian Charities and Not-for-profits Commission Regulations 2013; and

Management fee income from UTS Haberfield 237,243 231,072 (b) There are reasonable grounds to believe that the Company will be able to pay its debts as and Club Limited when they become due and payable.

20. Events after the reporting period Signed in accordance with a resolution of directors.

The outbreak of COVID-19 and the subsequent quarantine measures imposed by the Australian and other governments as well as the travel and trade restrictions imposed by Australia and other countries in early 2020 have caused disruption to businesses and economic activity. The Group considers this to be a non-adjusting post balance sheet event and accordingly the financial effects of COVID-19 have not been reflected in the Group’s financial statements at 29 December 2019

Emeritus Professor Peter Booth As the situation remains fluid (due to evolving changes in government policy and evolving business and customer Dated at Sydney this 20 May 2020 reactions thereto) as at the date these financial statements are authorised for issue, the directors of the Group considered that the financial effects of COVID-19 on the Group’s consolidated financial statements cannot be reasonably estimated for future financial periods. However, the Director’s consider that the general economic impacts arising from COVID-19 are expected to have a negative impact on the operations of substantially all of the Group’s operations. The economic effects arising from the COVID-19 outbreak are expected to materially affect the results of the Group for the year 2020. As at report date, the Group has instituted major cost reductions mainly resulting from employee wages and operating expenses as the Group’s venues including university bars, ActivateFit and the UTS Haberfield Club are now shut with no indications of reopening until further notice, with the Club kiosk and The Terrace being open on a takeaway basis.

No other matter or circumstance has occurred subsequent to year end that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the entity in subsequent financial years. 52 ActivateUTS Annual Report 2019 53

eloitte ouche ohmatsu Grosvenor lace Geore treet ydney, W, ustralia

hone www.deloitte.com.au Responsibilities of the directors for the Financial Report

The directors of the Entity are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the ACNC Act and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due Independent Auditor’s Report to the Members of ActivateUTS to fraud or error.

pinion In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the We have audited the financial report of ctivate the “Entity”) and its subsidiary (the “Group”) which going concern basis of accounting unless the directors either intend to liquidate the Group or to cease comprises the statements of financial position as at ecember , the statements of profit or loss operations, or has no realistic alternative but to do so. and other comprehensive income, the statements of chanes in members funds and the statements of cash flows for the year then ended, and notes to the financial statements, includin a summary of Auditor’s Responsibilities for the Audit of the Financial Report significant accounting policies and the directors’ declaration. Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free n our opinion, the accompanyin financial report of the Group is in accordance with ivision of the from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes Australian harities and otforprofits oission Act the ct, includin our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement i ivin a true and fair view of the ntity and Group’s financial position as at ecember when it exists. Misstatements can arise from fraud or error and are considered material if, individually or and of their financial performance for the year then ended and in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. ii complyin with ustralian ccountin tandards – educed isclosure equirements and ivision of the Australian harities and otforprofits oission Reulation . As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: asis for pinion • Identify and assess the risks of material misstatement of the financial report, whether due to We conducted our audit in accordance with ustralian uditin tandards. ur responsibilities under those fraud or error, design and perform audit procedures responsive to those risks, and obtain audit standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not of our report. We are independent of the Group in accordance with the ethical requirements of the detecting a material misstatement resulting from fraud is higher than for one resulting from error, Accounting Professional and Ethical Standards Board’s APES 110 ode of thics for rofessional as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override Accountants the ode that are relevant to our audit of the financial report in ustralia. We have also of internal control. fulfilled our other ethical responsibilities in accordance with the ode. • Obtain an understanding of internal control relevant to the audit in order to design audit We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for procedures that are appropriate in the circumstances, but not for the purpose of expressing an our opinion. opinion on the effectiveness of the Group’s internal control.

ther nforation • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. The directors are responsible for the other information. The other information comprises the Director’s Report which we obtained prior to the date of this auditor’s report, and also includes additional information • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting which will be included in the Group’s annual report (but does not include the financial report and our and, based on the audit evidence obtained, whether a material uncertainty exists related to events auditor’s report thereon), which is expected to be made available to us after that date. or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s ur opinion on the financial report does not cover the other information and we do not express any form report to the related disclosures in the financial report or, if such disclosures are inadequate, to of assurance conclusion thereon. modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to n connection with our audit of the financial report, our responsibility is to read the other information and, continue as a going concern. in doin so, consider whether the other information is materially inconsistent with the financial report or our nowlede obtained in the audit, or otherwise appears to be materially misstated. f, based on the • Evaluate the overall presentation, structure and content of the financial report, including the wor we have performed, we conclude that there is a material misstatement of this other information, we disclosures, and whether the financial report represents the underlying transactions and events are required to report that fact. We have nothin to report in this reard. in a manner that achieves fair presentation.

When we read the additional other information, if we conclude that there is a material misstatement • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or therein, we are required to communicate the matter to the directors and use our professional udement business activities within the Group to express an opinion on the financial report. We are to determine the appropriate action. responsible for the direction, supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.

iability limited by a scheme approved under rofessional tandards eislation.

ember of eloitte sia acific imited and the eloitte etwor. 28

e communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

DETTE TE TATS

heryl ennedy Partner hartered Accountants Sydney, 1 ay 00

ActivateUTS

Level 16, UTS Tower Building 15 Broadway, Ultimo, NSW, 2007

P.O. Box 3210 Broadway, 2007

+61 2 9514 1444 activateuts.com.au

ABN: 53 107 038 684

activateuts.com.au